Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-50245 | |
Entity Registrant Name | HOPE BANCORP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4849715 | |
Entity Address, Address Line One | 3200 Wilshire Boulevard, | |
Entity Address, Address Line Two | Suite 1400 | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90010 | |
City Area Code | 213 | |
Local Phone Number | 639-1700 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | HOPE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 120,731,627 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001128361 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements Of Fina
Consolidated Statements Of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 187,817 | $ 172,813 |
Interest earning cash in other banks | 466,227 | 1,756,154 |
Total cash and cash equivalents | 654,044 | 1,928,967 |
Investment securities available for sale (“AFS”), at fair value | 1,914,791 | 2,145,059 |
Amortized Cost | 258,068 | 263,912 |
Equity investments | 44,278 | 43,750 |
Loans held for sale, at lower of cost or fair value | 68,316 | 3,408 |
Loans receivable, net of allowance for credit losses of $156,019 and $158,694 at June 30, 2024 and December 31, 2023, respectively | 13,410,983 | 13,694,925 |
Other real estate owned (“OREO”), net | 0 | 63 |
Federal Home Loan Bank (“FHLB”) stock, at cost | 17,250 | 17,250 |
Premises and equipment, net | 50,919 | 50,611 |
Accrued interest receivable | 57,645 | 61,720 |
Deferred tax assets, net | 143,343 | 135,215 |
Bank owned life insurance (“BOLI”) | 89,917 | 89,061 |
Investments in affordable housing partnerships | 50,057 | 54,474 |
Operating lease right-of-use assets (“ROU”), net | 41,922 | 46,611 |
Goodwill | 464,450 | 464,450 |
Core deposit intangible assets, net | 3,133 | 3,935 |
Servicing assets, net | 8,984 | 9,631 |
Other assets | 96,991 | 118,480 |
Total assets | 17,375,091 | 19,131,522 |
Deposits: | ||
Noninterest bearing | 3,671,192 | 3,914,967 |
Interest bearing: | ||
Money market and NOW accounts | 4,118,651 | 4,169,543 |
Savings deposits | 789,209 | 702,486 |
Time deposits | 6,132,419 | 5,966,757 |
Total deposits | 14,711,471 | 14,753,753 |
FHLB and FRB borrowings | 170,000 | 1,795,726 |
Convertible notes and subordinated debentures, net | 108,918 | 108,269 |
Accrued interest payable | 86,779 | 168,174 |
Operating lease liabilities | 47,104 | 52,670 |
Commitments to fund investments in affordable housing partnerships | 18,345 | 21,017 |
Other liabilities | 121,192 | 110,670 |
Total liabilities | 15,263,809 | 17,010,279 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.001 par value; 300,000,000 and 150,000,000 authorized shares at June 30, 2024 and December 31, 2023, respectively: issued and outstanding 138,114,177 and 120,731,342 shares, respectively, at June 30, 2024, and issued and outstanding 137,509,621 and 120,126,786 shares, respectively, at December 31, 2023 | 138 | 138 |
Additional paid-in capital | 1,440,963 | 1,439,963 |
Retained earnings | 1,167,978 | 1,150,547 |
Treasury stock, at cost; 17,382,835 and 17,382,835 shares at June 30, 2024 and December 31, 2023, respectively | (264,667) | (264,667) |
Accumulated other comprehensive loss, net | (233,130) | (204,738) |
Total stockholders’ equity | 2,111,282 | 2,121,243 |
Total liabilities and stockholders’ equity | $ 17,375,091 | $ 19,131,522 |
Consolidated Statements Of Fi_2
Consolidated Statements Of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Fair Value | $ 237,621 | $ 250,518 |
Total | $ 156,019 | $ 158,694 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 138,114,177 | 137,509,621 |
Common stock, shares outstanding (in shares) | 120,731,342 | 120,126,786 |
Treasury stock, at cost, shares repurchased (in shares) | 17,382,835 | 17,382,835 |
Consolidated Statements Of Inco
Consolidated Statements Of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
INTEREST INCOME: | ||||
Interest and fees on loans | $ 209,683 | $ 225,671 | $ 423,309 | $ 441,606 |
Interest on investment securities | 16,829 | 15,534 | 34,878 | 30,659 |
Interest income from cash and deposits at other banks | 5,284 | 25,295 | 32,467 | 30,217 |
Interest on other investments | 805 | 684 | 1,621 | 1,379 |
Total interest income | 232,601 | 267,184 | 492,275 | 503,861 |
INTEREST EXPENSE: | ||||
Interest on deposits | 122,577 | 109,724 | 246,610 | 202,072 |
Interest Expense, FHLB and FRB borrowings | 1,430 | 23,622 | 19,283 | 30,320 |
Interest on other borrowings and debt | 2,734 | 3,149 | 5,475 | 6,902 |
Total interest expense | 126,741 | 136,495 | 271,368 | 239,294 |
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 105,860 | 130,689 | 220,907 | 264,567 |
Provision for Loan, Lease, and Other Losses | 1,400 | 9,010 | 4,000 | 12,330 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 104,460 | 121,679 | 216,907 | 252,237 |
NONINTEREST INCOME: | ||||
Service fees on deposit accounts | 2,681 | 2,325 | 5,268 | 4,546 |
International service fees | 696 | 854 | 1,730 | 1,942 |
Wire transfer and foreign currency fees | 974 | 850 | 1,786 | 1,623 |
Swap fees | 25 | 674 | 168 | 716 |
Net gains on sales of SBA loans | 1,980 | 1,872 | 1,980 | 4,097 |
Net gains on sales of investment securities AFS | 425 | 0 | 425 | 0 |
Other income and fees | 4,290 | 10,439 | 8,000 | 15,068 |
Total noninterest income | 11,071 | 17,014 | 19,357 | 27,992 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 44,107 | 52,305 | 91,684 | 109,474 |
Occupancy | 6,906 | 6,967 | 13,692 | 14,488 |
Furniture and equipment | 5,475 | 5,393 | 10,815 | 10,451 |
Data processing and communications | 2,997 | 2,917 | 5,987 | 5,739 |
Professional fees | 2,191 | 1,416 | 4,710 | 2,959 |
Amortization of investments in affordable housing partnerships | 2,284 | 1,912 | 4,417 | 3,628 |
FDIC assessments | 3,003 | 4,691 | 5,929 | 6,472 |
FDIC special assessment | (309) | 691 | 0 | |
Earned interest credit expense | 6,139 | 5,090 | 11,973 | 9,517 |
Restructuring-related costs | 576 | 978 | 0 | |
Merger-related costs | 1,589 | 2,633 | 0 | |
Other noninterest expense | 6,029 | 6,532 | 12,317 | 13,229 |
Total noninterest expense | 80,987 | 87,223 | 165,826 | 175,957 |
INCOME BEFORE INCOME TAXES | 34,544 | 51,470 | 70,438 | 104,272 |
INCOME TAX PROVISION | 9,274 | 13,448 | 19,304 | 27,129 |
NET INCOME | $ 25,270 | $ 38,022 | $ 51,134 | $ 77,143 |
EARNINGS PER COMMON SHARE | ||||
Basic (in dollars per share) | $ 0.21 | $ 0.32 | $ 0.42 | $ 0.64 |
Diluted (in dollars per share) | $ 0.21 | $ 0.32 | $ 0.42 | $ 0.64 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 25,270 | $ 38,022 | $ 51,134 | $ 77,143 |
Other comprehensive (loss) income: | ||||
Change in unrealized net holding (losses) gains on securities AFS | (9,381) | (31,071) | (23,115) | 144 |
Change in unrealized net holding (losses) gains on interest rate contracts used in cash flow hedges | (2,750) | 13,653 | (10,936) | 7,715 |
Reclassification adjustments for net gains realized in net income | (3,241) | (3,322) | (6,172) | (5,060) |
Tax effect | 4,520 | 6,113 | 11,831 | (826) |
Other comprehensive (loss) income, net of tax | (10,852) | (14,627) | (28,392) | 1,973 |
Total comprehensive income | $ 14,418 | $ 23,395 | $ 22,742 | $ 79,116 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive loss, net |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 119,495,209 | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 2,019,328 | $ 137 | $ 1,431,003 | $ 1,083,712 | $ (264,667) | $ (230,857) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASU 2022-02 | ASU 2022-02 | 407 | 407 | ||||
Adoption of ASU 2022-02 | ASU 2022-02, tax impact | (120) | (120) | ||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations (in shares) | 519,679 | |||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations | 0 | |||||
Stock-based compensation, net of tax settlements | 2,785 | 2,785 | ||||
Cash dividends declared on common stock | (33,518) | (33,518) | ||||
Comprehensive income: | ||||||
Net income | 77,143 | 77,143 | ||||
Other comprehensive income (loss) | 1,973 | 1,973 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 120,014,888 | |||||
Balance at end of period at Jun. 30, 2023 | 2,067,998 | $ 137 | 1,433,788 | 1,127,624 | (264,667) | (228,884) |
Balance at beginning of period (in shares) at Mar. 31, 2023 | 119,865,732 | |||||
Balance at beginning of period at Mar. 31, 2023 | 2,058,580 | $ 137 | 1,430,977 | 1,106,390 | (264,667) | (214,257) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations (in shares) | 149,156 | |||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations | 0 | |||||
Stock-based compensation, net of tax settlements | 2,811 | 2,811 | ||||
Cash dividends declared on common stock | (16,788) | (16,788) | ||||
Comprehensive income: | ||||||
Net income | 38,022 | 38,022 | ||||
Other comprehensive income (loss) | (14,627) | (14,627) | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 120,014,888 | |||||
Balance at end of period at Jun. 30, 2023 | 2,067,998 | $ 137 | 1,433,788 | 1,127,624 | (264,667) | (228,884) |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 120,126,786 | |||||
Balance at beginning of period at Dec. 31, 2023 | 2,121,243 | $ 138 | 1,439,963 | 1,150,547 | (264,667) | (204,738) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations (in shares) | 604,556 | |||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations | 0 | |||||
Stock-based compensation, net of tax settlements | 1,000 | 1,000 | ||||
Cash dividends declared on common stock | (33,703) | (33,703) | ||||
Comprehensive income: | ||||||
Net income | 51,134 | 51,134 | ||||
Other comprehensive income (loss) | (28,392) | (28,392) | ||||
Balance at end of period (in shares) at Jun. 30, 2024 | 120,731,342 | |||||
Balance at end of period at Jun. 30, 2024 | 2,111,282 | $ 138 | 1,440,963 | 1,167,978 | (264,667) | (233,130) |
Balance at beginning of period (in shares) at Mar. 31, 2024 | 120,610,029 | |||||
Balance at beginning of period at Mar. 31, 2024 | 2,112,270 | $ 138 | 1,439,484 | 1,159,593 | (264,667) | (222,278) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations (in shares) | 121,313 | |||||
Issuance of shares pursuant to various stock plans, net of forfeitures and tax withholding cancellations | 0 | |||||
Stock-based compensation, net of tax settlements | 1,479 | 1,479 | ||||
Cash dividends declared on common stock | (16,885) | (16,885) | ||||
Comprehensive income: | ||||||
Net income | 25,270 | 25,270 | ||||
Other comprehensive income (loss) | (10,852) | (10,852) | ||||
Balance at end of period (in shares) at Jun. 30, 2024 | 120,731,342 | |||||
Balance at end of period at Jun. 30, 2024 | $ 2,111,282 | $ 138 | $ 1,440,963 | $ 1,167,978 | $ (264,667) | $ (233,130) |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared on common stock (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 |
ASU 2022-02 | ||||
Adoption of ASU | ASU 2022-02 | |||
Adoption of ASU 2022-02 | $ 407 | |||
ASU 2022-02, tax impact | ||||
Adoption of ASU | ASU 2022-02, tax impact | |||
Adoption of ASU 2022-02 | $ (120) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net income | $ 25,270 | $ 38,022 | $ 51,134 | $ 77,143 | ||
Adjustments to reconcile net income to net cash from operating activities: | ||||||
Discount accretion, net of depreciation and amortization | 18,085 | 17,802 | ||||
Stock-based compensation expense | 4,424 | 5,734 | ||||
Provision for credit losses | 4,000 | 12,330 | ||||
Distribution Gain (Loss) From Investments | 0 | (5,819) | ||||
Net gains on sales of loans | (2,190) | (4,018) | ||||
Net change in fair value of derivatives | 8,162 | 6,919 | ||||
Gain on debt extinguishment | $ (405) | 0 | (405) | |||
Net change in deferred income taxes | 3,701 | 3,164 | ||||
Proceeds from sales of loans held for sale | 46,372 | 57,348 | ||||
Originations of loans held for sale | (49,577) | (46,732) | ||||
Originations of servicing assets | (749) | (1,849) | ||||
Net change in accrued interest receivable | 4,075 | (6,239) | ||||
Net change in other assets | 10,512 | (484) | ||||
Net change in accrued interest payable | (81,395) | 82,568 | ||||
Net change in other liabilities | 3,815 | 18,794 | ||||
Net cash provided by operating activities | 4,045 | 202,418 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Redemption of interest earning deposits in other financial institutions | 0 | 735 | ||||
Purchase of securities | (80,291) | (180,758) | ||||
Proceeds from matured, called, or paid-down securities | 193,610 | 234,135 | ||||
Proceeds from sales and calls of securities available for sale | 92,587 | 0 | ||||
Purchase of securities | 0 | (5,545) | ||||
Proceeds from matured, called, or paid-down securities | 7,834 | 8,680 | ||||
Purchase of equity investments | (779) | (569) | ||||
Proceeds from sales of other loans held for sale previously classified as held for investment | 21,412 | 206,993 | ||||
Net change in loans receivable | 199,050 | 325,044 | ||||
Proceeds from sales of OREO | 63 | 1,209 | ||||
Purchase of FHLB stock | 0 | (4,650) | ||||
Redemption of FHLB stock | 0 | 6,030 | ||||
Purchase of premises and equipment | (4,647) | (7,719) | ||||
Purchase of BOLI policy | 0 | (11,000) | ||||
Proceeds from BOLI death benefits | 0 | 587 | ||||
Investments in affordable housing partnerships | (2,672) | (2,470) | ||||
Net cash provided by investing activities | 426,167 | 570,702 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Net change in deposits | (42,282) | (119,449) | ||||
Proceeds from FHLB advances | 300,000 | 5,250,000 | ||||
Repayment of FHLB advances | (300,000) | (5,750,000) | ||||
Proceeds from FRB borrowings | 786,100 | 35,896,000 | ||||
Repayment of FRB borrowings | (2,411,826) | (34,001,000) | ||||
Repurchase of convertible notes | 0 | (19,534) | ||||
Repayment of convertible notes | 0 | (197,107) | $ (197,100) | |||
Cash dividends paid on common stock | (33,703) | (33,518) | ||||
Taxes paid in net settlement of restricted stock | (3,424) | (2,949) | ||||
Net cash (used in) provided by financing activities | (1,705,135) | 1,022,443 | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (1,274,923) | 1,795,563 | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | $ 1,928,967 | 1,928,967 | 506,776 | 506,776 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 654,044 | $ 2,302,339 | 654,044 | 2,302,339 | $ 1,928,967 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||
Interest paid | 352,114 | 155,761 | ||||
Income taxes paid | 20,632 | 5,069 | ||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||||||
Transfer from loans receivable to loans held for sale | 81,130 | 237,259 | ||||
Transfer from loans held for sale to loans receivable | 0 | 22,400 | ||||
Lease liabilities arising from obtaining ROU assets | $ 2,058 | $ 6,113 |
Hope Bancorp, Inc.
Hope Bancorp, Inc. | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Hope Bancorp, Inc. | Hope Bancorp, Inc. Hope Bancorp, Inc. (“Hope Bancorp” on a parent-only basis and the “Company” on a consolidated basis), headquartered in Los Angeles, California, is the holding company for Bank of Hope (the “Bank”). At June 30, 2024, the Bank had 48 branches and nine loan production offices in California, New York, Texas, Washington, Illinois, New Jersey, Virginia, Georgia, Alabama, Colorado and Oregon, as well a representative office in Seoul, South Korea. The Company is a corporation organized under the laws of the state of Delaware and a bank holding company registered under the Bank Holding Company Act of 1956, as amended. On March 28, 2024, the Bank entered into a Purchase and Assumption Agreement with PromiseOne Bank, a Georgia state bank, to sell the deposits, other liabilities and certain physical assets of the Bank’s two branches located in Virginia (Annandale and Centreville). The transaction is expected to be completed in the second half of 2024, subject to regulatory approvals and other customary closing conditions. On April 26, 2024, the Company entered into a merger agreement with Territorial Bancorp Inc. (“Territorial”), headquartered in Honolulu, Hawaii. Under the terms of the merger agreement, Territorial will merge with and into the Company, immediately followed by the merger of Territorial’s subsidiary bank, Territorial Savings Bank, with and into the Company’s subsidiary bank, Bank of Hope. Upon completion of the transaction, Territorial shareholders will receive a fixed exchange ratio of 0.8048 shares of the Company’s common stock in exchange for each share of Territorial common stock they own. Based on the closing price of the Company’s common stock on April 26, 2024, this represented a value of $8.82 per share of Territorial common stock, although the actual value will be determined upon the completion of the merger. The transaction is expected to close by year-end 2024, subject to regulatory approvals, the approval of Territorial shareholders, and the satisfaction of other customary closing conditions. Following the completion of the transaction, the legacy Territorial franchise in Hawaii will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements included herein have been prepared without an audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), except for the Consolidated Statement of Financial Condition at December 31, 2023, which was from the audited financial statements included in the Company’s 2023 Annual Report on Form 10-K. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such SEC rules and regulations. The consolidated financial statements include the accounts of Hope Bancorp and its wholly owned subsidiaries, principally the Bank. All intercompany transactions and balances have been eliminated in consolidation. The Company has made all adjustments, that, in the opinion of management, are necessary to fairly present the Company’s financial position at June 30, 2024 and December 31, 2023, and the results of operations for the three and six months ended June 30, 2024 and 2023. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. The results of operations for the interim periods are not necessarily indicative of results to be anticipated for the full year. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. These unaudited consolidated financial statements should be read along with the audited consolidated financial statements and accompanying notes included in the Company’s 2023 Annual Report on Form 10-K. Significant Accounting Policies The Company’s accounting policies are described in Note 1—“Summary of Significant Accounting Policies”, of its audited consolidated financial statements included in its 2023 Annual Report Form 10-K. Significant changes to accounting policies from those disclosed in the Company’s audited consolidated financial statements included in its 2023 Annual Report Form 10-K are presented below. The allowance for unfunded commitments is recognized as a liability (other liabilities in the Consolidated Statements of Financial Condition), with adjustments to the allowance for unfunded commitments recognized through provision for credit losses in the Consolidated Statements of Income. Recently Issued Accounting Pronouncements Not Yet Adopted |
Significant Accounting Policies | Significant Accounting Policies The Company’s accounting policies are described in Note 1—“Summary of Significant Accounting Policies”, of its audited consolidated financial statements included in its 2023 Annual Report Form 10-K. Significant changes to accounting policies from those disclosed in the Company’s audited consolidated financial statements included in its 2023 Annual Report Form 10-K are presented below. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) Earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. Basic EPS does not reflect the possibility of dilution that could result from the issuance of additional shares of common stock upon exercise or conversion of outstanding equity awards or convertible notes. Diluted EPS reflects the potential dilution that could occur if stock options, convertible notes, employee stock purchase program (“ESPP”) shares, or other contracts to issue common stock were exercised or converted to common stock that would then share in earnings. For the three months ended June 30, 2024 and 2023, stock options and restricted share awards of 527,936 and 2,626,620 shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were anti-dilutive. For the six months ended June 30, 2024 and 2023, stock options and restricted share awards of 517,628 and 1,290,587 shares of common stock, respectively, were excluded in computing diluted earnings per common share because they were anti-dilutive. The Company previously issued $217.5 million in convertible senior notes maturing on May 15, 2038, of which $444 thousand remained outstanding at June 30, 2024. The convertible notes can be converted into the Company’s shares of common stock at an initial rate of 45.0760 shares per $1,000 principal amount of the notes (See Note 10—“Convertible Notes and Subordinated Debentures” for additional information regarding convertible notes issued). Under the required if-converted method for calculating dilutive EPS for convertible instruments, the denominator of the diluted EPS calculation is adjusted to reflect the full number of common shares issuable upon conversion, while the numerator is adjusted to add back after-tax interest expense for the period. For the three and six months ended June 30, 2024 and 2023, shares related to the convertible notes issued were not included in the Company’s diluted EPS calculation. In accordance with the terms of the convertible notes and settlement options available to the Company, no shares would have been delivered to investors of the convertible notes based on the Company’s common stock price during the three and six months ended June 30, 2024 and 2023, as the conversion price exceeded the market price of the Company’s stock. The following tables present computations of basic and diluted EPS for the three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, 2024 2023 Net Income Weighted-Average Shares Earnings Net Income Weighted-Average Shares Earnings (Dollars in thousands, except share and per share data) Basic EPS - common stock $ 25,270 120,664,472 $ 0.21 $ 38,022 119,953,174 $ 0.32 Effect of dilutive securities: Stock options and restricted stock 274,957 176,185 Diluted EPS - common stock $ 25,270 120,939,429 $ 0.21 $ 38,022 120,129,359 $ 0.32 Six Months Ended June 30, 2024 2023 Net Income Weighted-Average Shares Earnings Net Income Weighted-Average Shares Earnings (Dollars in thousands, except share and per share data) Basic EPS - common stock $ 51,134 120,425,886 $ 0.42 $ 77,143 119,753,321 $ 0.64 Effect of dilutive securities: Stock options and restricted stock 538,263 426,122 Diluted EPS - common stock $ 51,134 120,964,149 $ 0.42 $ 77,143 120,179,443 $ 0.64 |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Investments | Equity Investments Equity investments with readily determinable fair values at June 30, 2024 and December 31, 2023, consisted of mutual funds in the amounts of $4.3 million and $4.4 million, respectively, and were included in “Equity investments” on the Consolidated Statements of Financial Condition. The changes in fair value for equity investments with readily determinable fair values for the three and six months ended June 30, 2024 and 2023, were recorded in other noninterest income and fees as summarized in the table below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Net change in fair value recorded during the period on equity investments with readily determinable fair value $ (19) $ (69) $ (65) $ — Less: Net change in fair value recorded on equity investments sold during the period — — — — Net change in fair value on equity investments with readily determinable fair values held at the end of the period $ (19) $ (69) $ (65) $ — At June 30, 2024 and December 31, 2023, the Company also had equity investments without readily determinable fair values, which are carried at cost less any determined impairment. The balance of these investments is adjusted for changes in subsequent observable prices. At June 30, 2024, the total balance of equity investments without readily determinable fair values included in “Equity investments” on the Consolidated Statements of Financial Condition was $40.0 million, consisting of $370 thousand in correspondent bank stock, $1.0 million in Community Development Financial Institutions (“CDFI”) investments, and $38.6 million in Community Reinvestment Act (“CRA”) investments. At December 31, 2023, the total balance of equity investments without readily determinable fair values was $39.4 million, consisting of $370 thousand in correspondent bank stock, $1.0 million in CDFI investments, and $38.0 million in CRA investments. |
Securities Available for Sale
Securities Available for Sale | 6 Months Ended |
Jun. 30, 2024 | |
Debt Securities, Available-for-Sale [Abstract] | |
Securities Available for Sale | Investment Securities The following is a summary of investment securities as of the dates indicated: June 30, 2024 December 31, 2023 Amortized Gross Gross Fair Amortized Gross Gross Fair (Dollars in thousands) Debt securities AFS: U.S. Treasury securities $ — $ — $ — $ — $ 103,691 $ 21 $ (35) $ 103,677 U.S. Government agency and U.S. Government sponsored enterprises: Agency securities 4,000 — (104) 3,896 4,000 — (100) 3,900 Collateralized mortgage obligations (“CMO”) 854,271 341 (149,036) 705,576 888,631 367 (141,279) 747,719 Mortgage-backed securities (“MBS”): Residential 478,806 — (85,468) 393,338 499,431 — (79,133) 420,298 Commercial 489,824 14 (56,912) 432,926 445,207 113 (53,432) 391,888 Asset-backed securities 139,300 527 (1) 139,826 150,992 — (1,322) 149,670 Corporate securities 23,278 — (3,688) 19,590 23,302 — (3,868) 19,434 Municipal securities 233,601 724 (14,686) 219,639 314,554 5,698 (11,779) 308,473 Total investment securities AFS $ 2,223,080 $ 1,606 $ (309,895) $ 1,914,791 $ 2,429,808 $ 6,199 $ (290,948) $ 2,145,059 Debt securities HTM: U.S. Government agency and U.S. Government sponsored enterprises: MBS: Residential $ 146,133 $ — $ (11,785) $ 134,348 $ 150,369 $ — $ (6,663) $ 143,706 Commercial 111,935 — (8,662) 103,273 113,543 — (6,731) 106,812 Total investment securities HTM $ 258,068 $ — $ (20,447) $ 237,621 $ 263,912 $ — $ (13,394) $ 250,518 The Company has elected to exclude accrued interest from the amortized cost of its investment debt securities. Accrued interest receivable for investment debt securities at June 30, 2024 and December 31, 2023, totaled $8.9 million and $11.0 million, respectively. At June 30, 2024 and December 31, 2023, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. The table below summarizes the proceeds from and gains and losses on the sales and calls of investment securities AFS, for the periods presented below. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Proceeds from sales and calls of investment securities AFS $ 92,587 $ — $ 92,587 $ — Gains from sales of investment securities AFS $ 1,526 $ — $ 1,526 $ — Losses from sales of investment securities AFS (1,101) — (1,101) — Gains from calls of investment securities AFS — — — — Losses from calls of investment securities AFS — — — — Net gain on sales and calls of investment securities AFS $ 425 $ — $ 425 $ — At June 30, 2024 and December 31, 2023, $216.8 million and $200.2 million in unrealized losses on investment securities AFS, net of taxes, respectively, were included in accumulated other comprehensive loss. For the three and six months ended June 30, 2024, reclassifications out of accumulated other comprehensive loss into earnings as net gains on sales and calls of investment securities AFS was $425 thousand , compared with no reclassifications for the same periods of 2023. The following table presents a breakdown of interest income recorded for investment securities that are taxable and nontaxable. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Interest income on investment securities Taxable $ 15,966 $ 14,466 $ 32,948 $ 28,512 Nontaxable 863 1,068 1,930 2,147 Total $ 16,829 $ 15,534 $ 34,878 $ 30,659 The amortized cost and estimated fair value of investment securities at June 30, 2024, by contractual maturity, are presented in the table below. Collateralized mortgage obligations, mortgage-backed securities, and asset-backed securities are presented by final maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated (Dollars in thousands) Debt securities: Due within one year $ — $ — $ — $ — Due after one year through five years 153,280 144,642 25,003 24,161 Due after five years through ten years 120,690 110,467 8,724 8,249 Due after ten years 1,949,110 1,659,682 224,341 205,211 Total $ 2,223,080 $ 1,914,791 $ 258,068 $ 237,621 Securities with carrying values of approximately $225.3 million and $1.70 billion at June 30, 2024 and December 31, 2023, respectively, were pledged to secure public deposits, for various borrowings, and for other purposes as required or permitted by law. The decrease was primarily due to securities no longer being pledged at the Bank Term Funding Program (“BTFP”) as of June 30, 2024, as the BTFP was no longer extending new advances as of March 2024. The following tables show the Company’s investments’ gross unrealized losses and estimated fair values, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated. The length of time that the individual securities have been in a continuous unrealized loss position is not a factor in determining credit impairment with the adoption of current expected credit losses (“CECL”). June 30, 2024 Less than 12 months 12 months or longer Total Description of Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Treasury securities — $ — $ — — $ — $ — — $ — $ — U.S. Government agency and U.S. Government sponsored enterprises: Agency securities — — — 1 3,896 (104) 1 3,896 (104) CMOs 1 6,191 (22) 115 680,888 (149,014) 116 687,079 (149,036) MBS: Residential 1 2,413 (160) 64 390,925 (85,308) 65 393,338 (85,468) Commercial 14 96,931 (2,587) 56 334,578 (54,325) 70 431,509 (56,912) Asset-backed securities — — — 1 7,549 (1) 1 7,549 (1) Corporate securities — — — 6 19,590 (3,688) 6 19,590 (3,688) Municipal securities 30 94,024 (1,713) 43 93,374 (12,973) 73 187,398 (14,686) Total 46 $ 199,559 $ (4,482) 286 $ 1,530,800 $ (305,413) 332 $ 1,730,359 $ (309,895) December 31, 2023 Less than 12 months 12 months or longer Total Description of Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Treasury securities — $ — $ — 1 $ 3,963 $ (35) 1 $ 3,963 $ (35) U.S. Government agency and U.S. Government sponsored enterprises: Agency securities — — — 1 3,900 (100) 1 3,900 (100) CMOs 3 19,800 (378) 115 717,662 (140,901) 118 737,462 (141,279) MBS: Residential — — — 65 420,298 (79,133) 65 420,298 (79,133) Commercial 6 53,255 (2,129) 53 331,450 (51,303) 59 384,705 (53,432) Asset-backed securities — — — 18 149,670 (1,322) 18 149,670 (1,322) Corporate securities — — — 6 19,434 (3,868) 6 19,434 (3,868) Municipal securities 11 42,760 (263) 42 91,707 (11,516) 53 134,467 (11,779) Total 20 $ 115,815 $ (2,770) 301 $ 1,738,084 $ (288,178) 321 $ 1,853,899 $ (290,948) The Company had agency securities, collateralized mortgage obligations, mortgage-backed, asset-backed, corporate, and municipal securities classified as AFS that were in a continuous loss position for twelve months or longer at June 30, 2024. The collateralized mortgage obligations and mortgage-backed securities were investments in U.S. Government agency and U.S. Government sponsored enterprises and have high credit ratings (“AA” grade or better). The interest on asset-backed, corporate, and municipal securities that were in an unrealized loss position has been paid as agreed, and the Company believes this will continue in the future and that the securities will be paid in full as scheduled. The market value declines for these securities were primarily due to movements in interest rates and are not reflective of management’s expectations of the Company’s ability to fully recover any unrealized losses, which may be at maturity. With the adoption of CECL, the length of time that the fair value of investment securities has been less than amortized cost is not considered when assessing for credit impairment. 82.6% of the Company’s investment portfolio at June 30, 2024, consisted of securities that were issued by U.S. Government agency and U.S. Government sponsored enterprises. Although a government guarantee exists on securities issued by U.S. Government sponsored agencies, these entities are not legally backed by the full faith and credit of the federal government, and the current support is subject to a cap as part of the Housing and Economic Recovery Act of 2008. Nonetheless, at this time the Company does not foresee any set of circumstances in which the government would not fund its commitments on these investments as the issuers are an integral part of the U.S. housing market in providing liquidity and stability. Therefore, the Company concluded that a zero allowance approach for these investments was appropriate. The Company also had one asset-backed security, six corporate securities, and 73 municipal bonds in unrealized loss positions at June 30, 2024. The Company performed an assessment of investments in unrealized loss positions for credit impairment and concluded that no allowance for credit losses was required at June 30, 2024. Allowance for Credit Losses on Securities Available for Sale— The Company evaluates investment securities AFS in unrealized loss positions for impairment related to credit losses on at least a quarterly basis. Investment securities AFS in unrealized loss positions are first assessed as to whether the Company intends to sell, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If one of the criteria is met, the security’s amortized cost basis is written down to fair value through earnings. For securities that do not meet these criteria, the Company evaluates whether the decline in fair value resulted from credit losses or other factors. In evaluating whether a credit loss exists, the Company has set up an initial quantitative filter for impairment triggers. Once the quantitative filter has been triggered, a security is placed on a watch list and an additional assessment is performed to identify whether a credit impairment exists. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income, net of applicable taxes. The Company did not have an allowance for credit losses on investment securities AFS at June 30, 2024 and December 31, 2023. Allowance for Credit Losses on Securities Held to Maturity— |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The following is a summary of loans receivable by segment: June 30, 2024 December 31, 2023 (Dollars in thousands) Loan portfolio composition Commercial real estate (“CRE”) loans $ 8,679,515 $ 8,797,884 Commercial and industrial (“C&I”) loans 3,854,284 4,135,044 Residential mortgage loans 996,601 883,687 Consumer and other loans 36,602 37,004 Total loans receivable, net of deferred costs and fees 13,567,002 13,853,619 Allowance for credit losses (156,019) (158,694) Loans receivable, net of allowance for credit losses $ 13,410,983 $ 13,694,925 Loans receivable is stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, and purchase accounting fair value adjustments. The Company had net deferred fees of $2.7 million and $6.1 million at June 30, 2024 and December 31, 2023, respectively. The loan portfolio consists of four segments: CRE loans, C&I loans, residential mortgage loans, and consumer and other loans. CRE loans are extended for the purchase and refinance of commercial real estate and are generally secured by first deeds of trust and collateralized by multifamily residential or commercial properties. C&I loans are loans provided to businesses for various purposes such as working capital, purchasing inventory, debt refinancing, business acquisitions, international trade finance activities, and other business-related financing needs. CRE and C&I loans also include Small Business Administration (“SBA”) loans. Residential mortgage loans are extended for personal, family, or household use and are secured by a first mortgage or deed of trust. Consumer and other loans consist of home equity, credit card, and other personal loans. The Company had loans receivable of $13.57 billion at June 30, 2024, a decrease of $286.6 million, or 2.1%, from December 31, 2023. The decrease in loans receivable during the six months ended June 30, 2024, was due to the decline in C&I and CRE loans, partially offset by the growth in residential mortgage loans. During the six months ended June 30, 2024, loan payoffs, paydowns and sales exceeded new origination volume, reflecting, in part, an elevated pace of payoffs in a high interest rate environment. The Company had $68.3 million in loans held for sale at June 30, 2024, compared with $3.4 million at December 31, 2023. Loans held for sale at June 30, 2024, consisted of $40.2 million in SBA guaranteed loans, $2.0 million in residential mortgage loans, and $26.2 million in other C&I loans. Loans held for sale are not included in the loans receivable table presented above. The tables below detail the activity in the allowance for credit losses (“ACL”) by portfolio segment for the three and six months ended June 30, 2024 and 2023. CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Three Months Ended June 30, 2024 Balance, beginning of period $ 90,823 $ 55,465 $ 11,942 $ 528 $ 158,758 Provision (credit) for credit loss on loans 5,334 4,449 (8,033) (50) 1,700 Loans charged off (520) (5,972) — (46) (6,538) Recoveries of charge offs 6 2,072 — 21 2,099 Balance, end of period $ 95,643 $ 56,014 $ 3,909 $ 453 $ 156,019 Six Months Ended June 30, 2024 Balance, beginning of period $ 93,940 $ 51,291 $ 12,838 $ 625 $ 158,694 Provision (credit) for credit loss on loans 1,720 12,695 (8,929) (186) 5,300 Loans charged off (558) (10,591) — (109) (11,258) Recoveries of charge offs 541 2,619 — 123 3,283 Balance, end of period $ 95,643 $ 56,014 $ 3,909 $ 453 $ 156,019 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Three Months Ended June 30, 2023 Balance, beginning of period $ 108,835 $ 42,790 $ 11,253 $ 666 $ 163,544 Provision (credit) for credit loss on loans (3,076) 11,013 730 233 8,900 Loans charged off (561) (298) — (120) (979) Recoveries of charge offs 123 1,389 — 19 1,531 Balance, end of period $ 105,321 $ 54,894 $ 11,983 $ 798 $ 172,996 Six Months Ended June 30, 2023 Balance, beginning of period $ 95,884 $ 56,872 $ 8,920 $ 683 $ 162,359 ASU 2022-02 day 1 adoption adjustment 19 (426) — — $ (407) Provision (credit) for credit loss on loans 9,787 (2,487) 3,063 237 10,600 Loans charged off (561) (738) — (175) (1,474) Recoveries of charge offs 192 1,673 — 53 1,918 Balance, end of period $ 105,321 $ 54,894 $ 11,983 $ 798 $ 172,996 The following tables break out the allowance for credit losses and loan balance by measurement methodology at June 30, 2024 and December 31, 2023: June 30, 2024 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Allowance for credit losses: Individually evaluated $ 333 $ 3,221 $ 25 $ 3 $ 3,582 Collectively evaluated 95,310 52,793 3,884 450 152,437 Total $ 95,643 $ 56,014 $ 3,909 $ 453 $ 156,019 Loans outstanding: Individually evaluated $ 27,292 $ 33,456 $ 6,206 $ 49 $ 67,003 Collectively evaluated 8,652,223 3,820,828 990,395 36,553 13,499,999 Total $ 8,679,515 $ 3,854,284 $ 996,601 $ 36,602 $ 13,567,002 December 31, 2023 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Allowance for credit losses: Individually evaluated $ 886 $ 1,721 $ 39 $ 14 $ 2,660 Collectively evaluated 93,054 49,570 12,799 611 156,034 Total $ 93,940 $ 51,291 $ 12,838 $ 625 $ 158,694 Loans outstanding: Individually evaluated $ 33,932 $ 5,013 $ 5,916 $ 343 $ 45,204 Collectively evaluated 8,763,952 4,130,031 877,771 36,661 13,808,415 Total $ 8,797,884 $ 4,135,044 $ 883,687 $ 37,004 $ 13,853,619 At June 30, 2024 and December 31, 2023, reserves for unfunded loan commitments recorded in other liabilities were $2.5 million and $3.8 million, respectively. For the three and six months ended June 30, 2024, the Company recorded reductions to reserves for unfunded commitments of $300 thousand and $1.3 million, respectively. For the three and six months ended June 30, 2023, the Company recorded additions to reserves for unfunded commitments totaling $110 thousand and $1.7 million, respectively. Generally, loans are placed on nonaccrual status if principal and/or interest payments become 90 days or more past due, and/or management deems the collectability of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to customers whose financial conditions have deteriorated are considered for nonaccrual status whether or not the loan is 90 days or more past due. Generally, payments received on nonaccrual loans are recorded as principal reductions. Loans are returned to accrual status only when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Company does not recognize interest income while loans are on nonaccrual status. The tables below represent the amortized cost of nonaccrual loans, as well as loans past due 90 or more days and still on accrual status, by loan segment and broken out by loans with a recorded ACL and those without a recorded ACL, at June 30, 2024 and December 31, 2023. June 30, 2024 Nonaccrual with No ACL Nonaccrual with an ACL Total Nonaccrual (1) Accruing Loans Past Due 90 Days or More (Dollars in thousands) CRE loans $ 21,801 $ 5,491 $ 27,292 $ — C&I loans 20,799 12,657 33,456 128 Residential mortgage loans 2,977 3,229 6,206 — Consumer and other loans — 49 49 145 Total $ 45,577 $ 21,426 $ 67,003 $ 273 December 31, 2023 Nonaccrual with No ACL Nonaccrual with an ACL Total Nonaccrual (1) Accruing Loans Past Due 90 Days or More (Dollars in thousands) CRE loans $ 26,724 $ 7,208 $ 33,932 $ — C&I loans 2,447 2,566 5,013 184 Residential mortgage loans 3,002 2,914 5,916 — Consumer and other loans — 343 343 77 Total $ 32,173 $ 13,031 $ 45,204 $ 261 __________________________________ (1) Total nonaccrual loans exclude the guaranteed portion of SBA loans that are in liquidation totaling $11.2 million and $11.4 million, at June 30, 2024 and December 31, 2023, respectively. The following table presents the amortized cost of collateral-dependent loans at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Real Estate Collateral Other Collateral Total Real Estate Collateral Other Collateral Total (Dollars in thousands) CRE loans $ 24,568 $ — $ 24,568 $ 29,803 $ — $ 29,803 C&I loans 1,243 23,445 24,688 2,447 1,708 4,155 Residential mortgage loans 2,977 — 2,977 3,002 — 3,002 Total $ 28,788 $ 23,445 $ 52,233 $ 35,252 $ 1,708 $ 36,960 Collateral on loans is a significant portion of what secures collateral-dependent loans and significant changes to the fair value of the collateral can potentially impact ACL. During the six months ended June 30, 2024, the Company did not have any significant changes to the extent to which collateral secured its collateral-dependent loans, due to general deterioration or from other factors. Real estate collateral securing CRE and C&I loans consisted of commercial real estate properties including hotel/motel, building, office, gas station/carwash, residential mortgage, restaurant and land properties. Accrued interest receivable on loans totaled $48.0 million at June 30, 2024, and $49.3 million at December 31, 2023. The Company has elected to exclude accrued interest receivable in its estimates of expected credit losses because the Company writes off uncollectible accrued interest receivable in a timely manner. The Company considers writing off accrued interest amounts once the amounts become 90 days past due to be considered within a timely manner. The Company has elected to write off accrued interest receivable by reversing interest income. The following table presents interest income reversals, due to loans being placed on nonaccrual status, by loan segment for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) CRE loans $ 61 $ 214 $ 252 $ 665 C&I loans 1,125 368 1,713 886 Residential mortgage loans 1 18 7 32 Total $ 1,187 $ 600 $ 1,972 $ 1,583 The following table presents the amortized cost of past due loans, including nonaccrual loans past due 30 or more days, by the number of days past due at June 30, 2024 and December 31, 2023, by loan segment: June 30, 2024 December 31, 2023 30-59 Days 60-89 Days 90 Days or More Total 30-59 Days 60-89 Days 90 Days or More Total (Dollars in thousands) CRE loans $ 8,074 $ 523 $ 7,526 $ 16,123 $ 1,999 $ 2,976 $ 10,197 $ 15,172 C&I loans 2,679 1,448 12,465 16,592 934 533 1,717 3,184 Residential mortgage loans 1,243 812 2,485 4,540 1,534 — 2,339 3,873 Consumer and other loans 247 28 144 419 214 48 77 339 Total Past Due $ 12,243 $ 2,811 $ 22,620 $ 37,674 $ 4,681 $ 3,557 $ 14,330 $ 22,568 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. Homogeneous loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans) are not risk rated and credit risk is analyzed largely by the number of days past due. This analysis is performed at least on a quarterly basis. The definitions for risk ratings are as follows: • Pass: Loans that meet a preponderance or more of the Company’s underwriting criteria and evidence an acceptable level of risk. • Special Mention: Loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. • Substandard: Loans that are inadequately protected by the current net worth and paying capacity of the borrower or by the collateral pledged, if any. Loans in this classification have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. • Doubtful: Loans that have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The following table presents the amortized cost basis of loans receivable by segment, risk rating, and year of origination, renewal, or major modification at June 30, 2024 and December 31, 2023. June 30, 2024 Term Loan by Year Revolving Loans Total 2024 2023 2022 2021 2020 Prior (Dollars in thousands) CRE loans Pass $ 393,920 $ 561,786 $ 2,374,638 $ 1,965,556 $ 1,161,504 $ 1,954,773 $ 101,125 $ 8,513,302 Special mention — 19,891 — 2,055 2,923 9,533 — 34,402 Substandard — 970 618 41,977 33,880 54,366 — 131,811 Subtotal $ 393,920 $ 582,647 $ 2,375,256 $ 2,009,588 $ 1,198,307 $ 2,018,672 $ 101,125 $ 8,679,515 Year-to-date gross charge offs $ — $ — $ 166 $ — $ 101 $ 291 $ — $ 558 C&I loans Pass $ 733,122 $ 655,007 $ 971,776 $ 480,021 $ 146,554 $ 108,845 $ 483,881 $ 3,579,206 Special mention — 51,792 20,292 42,496 113 14,516 40,556 169,765 Substandard 10,157 7,690 66,498 3,265 — 1,358 16,345 105,313 Subtotal $ 743,279 $ 714,489 $ 1,058,566 $ 525,782 $ 146,667 $ 124,719 $ 540,782 $ 3,854,284 Year-to-date gross charge offs $ — $ 265 $ 10,213 $ 55 $ — $ 58 $ — $ 10,591 Residential mortgage loans Pass $ 149,265 $ 87,960 $ 357,115 $ 252,284 $ 1,338 $ 142,177 $ — $ 990,139 Special mention — — — — — — — — Substandard — — — 742 1,836 3,884 — 6,462 Subtotal $ 149,265 $ 87,960 $ 357,115 $ 253,026 $ 3,174 $ 146,061 $ — $ 996,601 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other loans Pass $ 6,664 $ 709 $ 414 $ 221 $ 1,503 $ 8,872 $ 18,170 $ 36,553 Special mention — — — — — — — — Substandard — — — — — 49 — 49 Subtotal $ 6,664 $ 709 $ 414 $ 221 $ 1,503 $ 8,921 $ 18,170 $ 36,602 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ 109 $ 109 Total loans Pass $ 1,282,971 $ 1,305,462 $ 3,703,943 $ 2,698,082 $ 1,310,899 $ 2,214,667 $ 603,176 $ 13,119,200 Special mention — 71,683 20,292 44,551 3,036 24,049 40,556 204,167 Substandard 10,157 8,660 67,116 45,984 35,716 59,657 16,345 243,635 Total $ 1,293,128 $ 1,385,805 $ 3,791,351 $ 2,788,617 $ 1,349,651 $ 2,298,373 $ 660,077 $ 13,567,002 Total year-to-date gross charge offs $ — $ 265 $ 10,379 $ 55 $ 101 $ 349 $ 109 $ 11,258 December 31, 2023 Term Loan by Year Revolving Loans Total 2023 2022 2021 2020 2019 Prior (Dollars in thousands) CRE loans Pass $ 623,058 $ 2,429,146 $ 2,045,863 $ 1,239,654 $ 996,483 $ 1,297,295 $ 79,426 $ 8,710,925 Special mention — 2,001 15,452 2,518 5,963 5,196 — 31,130 Substandard — 1,549 7,300 2,711 2,083 42,186 — 55,829 Subtotal $ 623,058 $ 2,432,696 $ 2,068,615 $ 1,244,883 $ 1,004,529 $ 1,344,677 $ 79,426 $ 8,797,884 Year-to-date gross charge offs $ 103 $ 315 $ — $ 233 $ 355 $ 1,941 $ — $ 2,947 C&I loans Pass $ 1,107,219 $ 1,208,795 $ 683,821 $ 203,142 $ 162,815 $ 61,019 $ 479,266 $ 3,906,077 Special mention 9,743 23,413 31,388 8,597 14,614 — 60,107 147,862 Substandard 7,158 53,213 8,480 8,637 290 2,358 969 81,105 Subtotal $ 1,124,120 $ 1,285,421 $ 723,689 $ 220,376 $ 177,719 $ 63,377 $ 540,342 $ 4,135,044 Year-to-date gross charge offs $ 5,011 $ 12,323 $ 16,020 $ 128 $ 182 $ 539 $ — $ 34,203 Residential mortgage loans Pass $ 93,982 $ 365,252 $ 263,977 $ 1,356 $ 29,063 $ 123,885 $ — $ 877,515 Special mention — — — — — — — — Substandard — — 314 1,836 957 3,065 — 6,172 Subtotal $ 93,982 $ 365,252 $ 264,291 $ 3,192 $ 30,020 $ 126,950 $ — $ 883,687 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other loans Pass $ 3,985 $ 944 $ 278 $ 2,068 $ 371 $ 8,221 $ 20,794 $ 36,661 Special mention — — — — — — — — Substandard — — — — — 343 — 343 Subtotal $ 3,985 $ 944 $ 278 $ 2,068 $ 371 $ 8,564 $ 20,794 $ 37,004 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ 370 $ 370 Total loans Pass $ 1,828,244 $ 4,004,137 $ 2,993,939 $ 1,446,220 $ 1,188,732 $ 1,490,420 $ 579,486 $ 13,531,178 Special mention 9,743 25,414 46,840 11,115 20,577 5,196 60,107 178,992 Substandard 7,158 54,762 16,094 13,184 3,330 47,952 969 143,449 Total $ 1,845,145 $ 4,084,313 $ 3,056,873 $ 1,470,519 $ 1,212,639 $ 1,543,568 $ 640,562 $ 13,853,619 Total year-to-date gross charge offs $ 5,114 $ 12,638 $ 16,020 $ 361 $ 537 $ 2,480 $ 370 $ 37,520 For the three and six months ended June 30, 2024 and the twelve months ended December 31, 2023, there were no revolving loans converted to term loans. The Company may reclassify loans held for investment to loans held for sale in the event that the Company plans to sell loans that were originated with the intent to hold to maturity. Loans transferred from held for investment to held for sale are carried at the lower of cost or fair value. The breakdown of loans by segment that were reclassified from held for investment to held for sale for the three and six months ended June 30, 2024 and 2023, is presented in the following table: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Transfer of loans held for investment to held for sale (Dollars in thousands) CRE loans $ 26,755 $ 13,168 $ 26,755 $ 66,776 C&I loans 54,375 61,608 54,375 170,483 Total $ 81,130 $ 74,776 $ 81,130 $ 237,259 The Company calculates its ACL by estimating expected credit losses on a collective basis for loans that share similar risk characteristics. Loans that do not share similar risk characteristics with other loans are evaluated for credit losses on an individual basis. The Company differentiates its loan segments based on shared risk characteristics for which allowance for credit losses is measured on a collective basis. Risk Characteristics CRE loans Property type, location, owner-occupied status C&I loans Delinquency status, risk rating, industry type Residential mortgage loans FICO score, LTV, delinquency status, maturity date, collateral value, location Consumer and other loans Historical losses The Company uses a combination of a modeled and non-modeled approach that incorporates current and future economic conditions to estimate lifetime expected losses on a collective basis. The Company uses Probability of Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”) methodologies with quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively assessed loans. The Company uses a reasonable and supportable period of two years, at which point loss assumptions revert back to historical loss information by means of a one-year reversion period. Included in the quantitative portion of the ACL analysis are inputs such as borrowers’ net operating income, debt coverage ratios, real estate collateral values, as well as factors that are more subjective or require management’s judgment, including key macroeconomic variables from Moody’s forecast scenarios such as GDP, unemployment rates, interest rates, and CRE prices. These key inputs are utilized in the Company’s models to develop PD and LGD assumptions used in the calculation of estimated quantitative losses. The ACL for the Company’s construction, credit card, and certain consumer loans is calculated based on a non-modeled approach that utilizes historical loss rates to estimate losses. A non-modeled approach was chosen for these loans as fewer data points exist, which could result in high levels of estimated loss volatility under a modeled approach. In the aggregate, non-modeled loans represented less than 2% of the Company’s total loan portfolio at June 30, 2024. The Company’s Economic Forecast Committee (“EFC”) reviews economic forecast scenarios that are incorporated in the Company’s ACL. The EFC reviews multiple scenarios provided to the Company by an independent third party and chooses a single scenario that best aligns with management’s expectation of future economic conditions. At June 30, 2024, the Company utilized the June 2024 consensus economic forecast scenario from Moody’s, as it best aligned with management’s expectations of future conditions. The forecast projected GDP growth of 2.3% in 2024, 1.7% for 2025, and 1.9% for 2026, with unemployment projected to be 4.2% for 2024, 4.1% for 2025, and 4.0% in 2026. CRE prices in the consensus scenario were expected to decrease initially, with the CRE price index declining -4.0% for 2024, before rebounding +4.2% for 2025 and +6.7% in 2026. The Company also utilized Moody’s December 2023 consensus economic forecast for the calculation of the December 31, 2023 ACL. In order to quantify the credit risk impact of other trends and changes within the loan portfolio, the Company utilizes qualitative adjustments to the modeled and non-modeled estimated loss approaches. The parameters for making adjustments are established under a Credit Risk Matrix that provides different possible scenarios for each of the factors below. The Credit Risk Matrix and the possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 25 basis points for each loan type pool. This matrix considers the following seven factors, which are patterned after the guidelines provided under the Interagency Policy Statement on the Allowance for Credit Losses, updated to reflect the adoption of CECL: • Changes in lending policies and procedures, including underwriting standards and collection, charge off, and recovery practices; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in the trends of the volume and severity of past due loans, classified loans, nonaccrual loans, and other loan modifications; • Changes in the quality of the loan review system and the degree of oversight by the management and the Board of Directors; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of external factors, such as competition, legal requirements, and regulatory requirements on the level of estimated losses in the loan portfolio. For loans that do not share similar risk characteristics such as nonaccrual loans above $1.0 million, the Company evaluates these loans on an individual basis in accordance with ASC 326. Such nonaccrual loans are considered to have different risk profiles than performing loans and are therefore evaluated individually. The Company elected to collectively assess nonaccrual loans with balances below $1.0 million along with the performing and accrual loans, in order to reduce the operational burden of individually assessing small nonaccrual loans with immaterial balances. For individually assessed loans, the ACL is measured using either 1) the present value of future cash flows discounted at the loan’s effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral, if the loan is collateral-dependent. For the collateral-dependent loans, the Company obtains a new appraisal to determine the fair value of collateral. The appraisals are based on an “as-is” valuation. To ensure that appraised values remain current, the Company either obtains updated appraisals every twelve months from a qualified independent appraiser or an internal evaluation of the collateral is performed by qualified personnel. If the third-party market data indicates that the value of the collateral property has declined since the most recent valuation date, management adjusts the value of the property downward to reflect current market conditions. If the fair value of the collateral is less than the amortized balance of the loan, the Company recognizes an ACL with a corresponding charge to the provision for credit loss on loans. The Company maintains a separate ACL for its off-balance-sheet unfunded loan commitments. The Company uses an estimated funding rate to allocate an allowance to undrawn exposures. This funding rate is used as a credit conversion factor to capture how much undrawn lines of credit can potentially become drawn at any point. The funding rate is determined based on a look-back period of eight quarters. Credit loss is not estimated for off-balance-sheet credit exposures that are unconditionally cancellable by the Company. Loan Modifications to Borrowers Experiencing Financial Difficulty In January 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): TDR and Vintage Disclosures (“ASU 2022-02”), which eliminated the accounting guidance for TDR while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. The Company applied this guidance on a modified retrospective transition method, which resulted in a positive cumulative effect adjustment to retained earnings of $287 thousand, net of tax. Subsequent to the adoption of ASU 2022-02, the new guidance is applied uniformly to the Company’s entire loan portfolio when estimating expected credit losses. A summary of loans modified to borrowers experiencing financial difficulty for the period presented, disaggregated by loan class and type of modification, is shown in the tables below. Three Months Ended June 30, 2024 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ — $ — $ — $ — Interest rate reduction — — — — — Payment delay — — — — — Term extension — 4,848 — — 4,848 Total Loan Modifications $ — $ 4,848 $ — $ — $ 4,848 % of Loan Class — % 0.13 % — % — % 0.04 % Six Months Ended June 30, 2024 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ 9,946 $ — $ — $ 9,946 Interest rate reduction — — — — — Payment delay — — — — — Term extension — 4,848 — — 4,848 Total Loan Modifications $ — $ 14,794 $ — $ — $ 14,794 % of Loan Class — % 0.38 % — % — % 0.11 % Three Months Ended June 30, 2023 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ — $ — $ — $ — Interest rate reduction — — — — — Payment delay — — — — — Term extension — 25,964 — — 25,964 Total Loan Modifications $ — $ 25,964 $ — $ — $ 25,964 % of Loan Class — % 0.54 % — % — % 0.17 % Six Months Ended June 30, 2023 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ — $ — $ — $ — Interest rate reduction — — — — — Payment delay — — — — — Term extension — 25,964 — — 25,964 Total Loan Modifications $ — $ 25,964 $ — $ — $ 25,964 % of Loan Class — % 0.54 % — % — % 0.17 % The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty for the periods presented: Financial Effect Modification & Loan Types Description of Financial Effect Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Principal forgiveness C&I loans Forgiveness of principal totaling: $— million $4.4 million Term extension C&I loans Extended term by a weighted average of: 0.3 years 0.3 years Financial Effect Modification & Loan Types Description of Financial Effect Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Term extension C&I loans Extended term by a weighted average of: 0.3 years 0.3 years The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. All loans that have been modified within the previous 12 months to borrowers experiencing financial difficulty were current at June 30, 2024 and 2023. There were no loan modifications to borrowers experiencing financial difficulty that had payment defaults during the three and six months ended June 30, 2024 and 2023, and that were modified in the 12 months prior to default. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company’s operating leases are real estate leases of bank branch locations, loan production offices, and office spaces with remaining lease terms ranging from 1 to 9 years at June 30, 2024. Certain lease arrangements contain extension options, which are typically around 5 years. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. The table below summarizes supplemental balance sheet information related to operating leases: June 30, 2024 December 31, 2023 (Dollars in thousands) Operating lease ROU assets $ 41,922 $ 46,611 Current portion of long-term lease liabilities 13,934 14,287 Long-term lease liabilities 33,170 38,383 The Company uses its incremental borrowing rate to present value lease payments in order to recognize a ROU asset and the related lease liability. The Company calculates its incremental borrowing rate by adding a spread to the FHLB borrowing interest rate at a given period. During the six months ended June 30, 2024, the Company extended four leases and did not enter into any new lease contracts. Lease extension terms ranged from three The Company wrote off $93 thousand in operating ROU assets resulting from the branch consolidation of one location during the six months ended June 30, 2023. There was no impairment on operating ROU assets during the same period of 2024. The table below summarizes the Company’s net operating lease cost: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Operating lease cost $ 3,611 $ 3,825 $ 7,217 $ 7,666 Variable lease cost 867 820 1,675 1,603 Sublease income (64) (50) (103) (92) Net lease cost $ 4,414 $ 4,595 $ 8,789 $ 9,177 Rent expense for the three and six months ended June 30, 2024, was $4.2 million and $8.3 million, respectively. Rent expense for the three and six months ended June 30, 2023, was $4.3 million and $9.2 million, respectively. The table below summarizes other information related to the Company’s operating leases: At or for the Six Months Ended 2024 2023 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 7,916 $ 8,013 ROU assets obtained in exchange for lease liabilities, net $ 2,058 $ 6,113 Weighted-average remaining lease term - operating leases 3.8 years 4.4 years Weighted-average discount rate - operating leases 2.91 % 2.68 % The table below summarizes the maturity of remaining lease liabilities: June 30, 2024 (Dollars in thousands) 2024 $ 7,697 2025 14,334 2026 13,647 2027 8,123 2028 3,320 2029 and thereafter 2,811 Total lease payments 49,932 Less: imputed interest 2,828 Total lease obligations $ 47,104 At June 30, 2024, the Company had no operating lease commitments that had not yet commenced. The Company did not have any finance leases at June 30, 2024 and December 31, 2023. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2024 | |
Deposits [Abstract] | |
Deposits | Deposits Total deposits of $14.71 billion at June 30, 2024, were down $42.3 million, or 0.3%, from $14.75 billion at December 31, 2023. The aggregate amount of time deposits in denominations of more than $250 thousand at June 30, 2024 and December 31, 2023, was $2.56 billion and $2.24 billion, respectively. Included in time deposits of more than $250 thousand was $300.0 million in California State Treasurer’s deposits at June 30, 2024 and December 31, 2023. The California State Treasurer’s deposits are subject to withdrawal based on the State’s periodic evaluations. The Company is required to pledge eligible collateral of at least 110% of outstanding deposits. At June 30, 2024 and December 31, 2023, securities with fair values of approximately $207.2 million and $218.7 million, respectively, and a $150.0 million letter of credit issued by the FHLB, were pledged as collateral for the California State Treasurer’s deposits. Brokered deposits at June 30, 2024 and December 31, 2023, totaled $1.36 billion and $1.54 billion, respectively. Brokered deposits at June 30, 2024, consisted of $263.9 million in money market and NOW accounts and $1.10 billion in time deposit accounts. Brokered deposits at December 31, 2023, consisted of $164.1 million in money market and NOW accounts and $1.37 billion in time deposit accounts. The aggregate amount of unplanned overdrafts of demand deposits that were reclassified as loans was $4.6 million and $2.0 million at June 30, 2024 and December 31, 2023, respectively. The following is a breakdown of the Company’s deposits at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Balance Percentage (%) Balance Percentage (%) (Dollars in thousands) Noninterest bearing demand deposits $ 3,671,192 25 % $ 3,914,967 27 % Money market and NOW accounts 4,118,651 28 % 4,169,543 28 % Savings deposits 789,209 5 % 702,486 5 % Time deposits 6,132,419 42 % 5,966,757 40 % Total deposits $ 14,711,471 100 % $ 14,753,753 100 % |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings At June 30, 2024, borrowings totaled $170.0 million, compared with $1.80 billion at December 31, 2023. All of the Company’s borrowings at June 30, 2024 and December 31, 2023, had maturities of less than 12 months. The tables below summarize the Company’s borrowing lines at June 30, 2024 and December 31, 2023: June 30, 2024 Total Borrowings Outstanding Available Borrowing Capacity Amount Weighted Average Rate (Dollars in thousands) FHLB $ 4,290,239 $ 100,000 5.61 % $ 4,190,239 FRB Discount Window 513,454 70,000 5.50 % 443,454 Unsecured Federal Funds lines 304,791 — — % 304,791 Total $ 5,108,484 $ 170,000 5.56 % $ 4,938,484 December 31, 2023 Total Borrowings Outstanding Available Borrowing Capacity Amount Weighted Average Rate (Dollars in thousands) FHLB $ 4,167,168 $ 100,000 5.73 % $ 4,067,168 FRB Discount Window 630,369 — — % 630,369 BTFP 1,707,909 1,695,726 4.47 % 12,183 Unsecured Federal Funds lines 312,315 — — % 312,315 Total $ 6,817,761 $ 1,795,726 4.54 % $ 5,022,035 The Company maintains a line of credit with the FHLB of San Francisco as a secondary source of funds. The borrowing capacity with the FHLB is limited to the lower of either 25% of the Bank’s total assets or the Bank’s collateral capacity. The terms of this credit facility require the Company to pledge eligible collateral with the FHLB equal to at least 100% of outstanding advances. At June 30, 2024 and December 31, 2023, loans with a carrying amount of $7.68 billion and $7.60 billion were pledged at the FHLB for outstanding advances and remaining borrowing capacity, respectively. At June 30, 2024, other than FHLB stock, no securities were pledged as collateral at the FHLB. The purchase of FHLB stock is a prerequisite to become a member of the FHLB system, and the Company is required to own a certain amount of FHLB stock based on total asset size and outstanding borrowings. As a member of the FRB system, the Bank may also borrow from the FRB discount window. The maximum amount that the Bank may borrow from the FRB’s discount window is up to 99% of the fair market value of the qualifying loans and securities that are pledged. At June 30, 2024, the outstanding principal balance of the qualifying loans pledged at the FRB discount window was $578.4 million. There were no investment securities pledged at the discount window at June 30, 2024. The Company availed itself of the BTFP, which was created in March 2023 to enhance banking system liquidity by allowing institutions to pledge certain securities at par value and borrow at a rate of ten basis points over the one-year overnight index swap rate. The BTFP was available to federally insured depository institutions in the U.S., with advances having a term of up to one year with no prepayment penalties. In 2023, the BTFP was available to federally insured depository institutions in the U.S. at a fixed rate of ten basis points over the one-year overnight index swap rate, but in 2024, the interest rate was no lower than the interest rate on reserve balances in effect on the day the loan is made. The Company’s outstanding borrowings at December 31, 2023 were not subject to the new rate. The BTFP ceased extending new advances in March 2024. All outstanding borrowings from the BTFP were paid off as of June 30, 2024. The Company also maintains unsecured federal funds borrowing lines with other banks. There were no borrowings outstanding from other banks at June 30, 2024 and December 31, 2023. |
Subordinated Debentures and Con
Subordinated Debentures and Convertible Notes | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
Subordinated Debentures and Convertible Notes | Convertible Notes and Subordinated Debentures Convertible Notes In 2018, the Company issued $217.5 million aggregate principal amount of 2.00% convertible senior notes maturing on May 15, 2038, in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933. The convertible notes are not capital instruments but can be converted into shares of the Company’s common stock at an initial rate of 45.0760 shares per $1,000 principal amount of the notes (equivalent to an initial conversion price of approximately $22.18 per share of common stock, which represented a premium of 22.50% to the closing stock price on the date of the pricing of the notes). Holders of the convertible notes have the option to convert all or a portion of the notes at any time on or after February 15, 2023. The convertible notes can be called by the Company, in part or in whole, on or after May 20, 2023, for 100% of the principal amount in cash. Holders of the convertible notes have the option to put the notes back to the Company on May 15, 2028, or May 15, 2033, for 100% of the principal amount in cash. The convertible notes can be settled in cash, stock, or a combination of stock and cash at the option of the Company. On May 15, 2023, most holders of the Company’s convertible notes elected to exercise their optional put right and the Company paid off $197.1 million principal amount of notes in cash. During 2023, the Company also repurchased its notes in the aggregate principal amount of $19.9 million and recorded a gain on debt extinguishment of $405 thousand. The repurchased notes were immediately cancelled subsequent to the repurchase. These repurchases are separate from the optional put and were made through a third-party broker. No notes were repurchased or paid off in the six months ended June 30, 2024. The carrying value of the convertible notes at June 30, 2024 and December 31, 2023, was $444 thousand. The capitalized issuance costs were fully amortized at both June 30, 2024 and December 31, 2023. Interest expense on the convertible notes for the three and six months ended June 30, 2024, totaled $2 thousand and $4 thousand, respectively. Interest expense on the convertible notes for the three and six months ended June 30, 2023, totaled $598 thousand and $1.9 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments As part of the Company’s overall interest rate risk management, the Company enters into derivative instruments, including interest rate swaps, collars, caps, floors, foreign exchange contracts, risk participation agreements and mortgage banking derivatives. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis. The tables below present the fair value of the Company’s derivative financial instruments at June 30, 2024 and December 31, 2023. The Company’s derivative assets and derivative liabilities are located within “Other assets” and “Other liabilities,” respectively, on the Company’s Consolidated Statements of Financial Condition. June 30, 2024 Notional Fair Value (1) Other Assets Other Liabilities (Dollars in thousands) Derivatives designated as cash flow hedges Interest rate swaps $ 725,000 $ — $ — Interest rate collars 500,000 — (4,306) Forward interest rate swaps 700,000 — (7,478) Total $ 1,925,000 $ — $ (11,784) Derivatives not designated as hedges Interest rate contracts with correspondent banks $ 1,048,236 $ 59,036 $ (122) Interest rate contracts with customers 1,048,236 122 (60,531) Foreign exchange contracts with correspondent banks 12,159 484 — Foreign exchange contracts with customers 224 8 — Risk participation agreement 148,431 — (16) Mortgage banking derivatives 3,952 11 (20) Total $ 2,261,238 $ 59,661 $ (60,689) __________________________________ (1) The fair values of centrally-cleared derivative contracts are presented net of settled-to-market margin. December 31, 2023 Notional Fair Value (1) Other Assets Other Liabilities (Dollars in thousands) Derivatives designated as cash flow hedges Interest rate swaps $ 725,000 $ — $ — Interest rate collars 250,000 — 1,149 Forward interest rate swaps 1,000,000 10,812 — Forward interest rate collars 250,000 148 — Total $ 2,225,000 $ 10,960 $ 1,149 Derivatives not designated as hedges Interest rate contracts with correspondent banks $ 1,096,292 $ 53,185 $ 1,117 Interest rate contracts with customers 1,096,292 1,117 54,505 Foreign exchange contracts with correspondent banks 10,739 4 202 Foreign exchange contracts with customers 1,744 57 — Risk participation agreement 130,365 — 28 Mortgage banking derivatives 1,377 7 17 Total $ 2,336,809 $ 54,370 $ 55,869 __________________________________ (1) The fair values of centrally-cleared derivative contracts are presented net of settled-to-market margin. Derivatives designated as cash flow hedges The Company’s interest rate contracts designated as cash flow hedges were determined to be fully effective during the periods presented and were hedged to financial instruments tied to term SOFR and Federal Funds Rate. The aggregate fair value of the cash flow hedges are recorded in assets or liabilities on the Consolidated Statements of Financial Condition, with changes in fair value recorded in other comprehensive income on the Consolidated Statements of Comprehensive Income. The gain or loss on derivatives is recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified into interest income and interest expense in the period, during which the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to interest rate agreements will be reclassified to interest income and interest expense as interest payments are received or paid on the Company’s derivatives. The Company expects the hedges to remain fully effective throughout the remaining terms. The Company expects to reclassify, during the next 12 months, approximately $5.1 million, net of taxes, from AOCI as an increase to net interest income, net of a decrease of $1.6 million from terminated swaps. During the second quarter of 2024, the Company terminated $300.0 million in notional value of forward-starting received fixed swaps set to mature through July 2027. The swaps were designated as cash flow hedges on the changes in cash flows associated with certain variable rate loans. The termination of the swaps was performed to reduce prolonged exposure to higher interest rates. Prior to the termination of the swaps, the change in value of the swaps was recorded through accumulated other comprehensive income. The terminated swaps were associated with $5.0 million in pre-tax losses in AOCI as of the date of termination, which will be amortized as a reduction to net interest income over the original effective period of the hedge. The table below presents the gains (losses) on derivative instruments designated as cash flow hedges, that were reclassified from AOCI into earnings for the periods indicated: Derivative Instruments Designated as Cash Flow Hedges Location of Gain (Loss) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Interest rate contracts Interest income and fees on loans $ (986) $ — $ (1,986) $ — Interest rate contracts Interest expense on deposits 3,257 2,941 6,740 4,660 Interest rate contracts Interest expense on FHLB and FRB borrowings 1,523 1,187 2,818 2,240 Total $ 3,794 $ 4,128 $ 7,572 $ 6,900 Total cash held as collateral for interest rate contracts designated as cash flow hedges was $0 at June 30, 2024, and $22.9 million at December 31, 2023. Derivatives not designated as hedges The Company’s derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company offers a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Simultaneously, an identical offsetting swap is entered into by the Company with a correspondent bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer interest rate contracts are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The change in fair value is recognized in the Consolidated Statements of Income as other income and fees. The Company offers foreign exchange contracts to customers to purchase and/or sell foreign currencies at set rates in the future. The foreign exchange contracts allow customers to hedge the foreign exchange rate risk of their deposits and loans denominated in foreign currencies. In conjunction with this, the Company also enters into offsetting back-to-back contracts with institutional counterparties to hedge the Company’s foreign exchange rate risk. The Company also enters into certain foreign exchange contracts with institutional counterparties, including non-deliverable forward contracts, to manage its foreign exchange rate risk. These foreign exchange contracts are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. During the three and six months ended June 30, 2024, the changes in fair value on foreign exchange contracts were gains of $370 thousand and $633 thousand, respectively, and were recognized in the Consolidated Statements of Income as other income and fees. During the three and six months ended June 30, 2023, the changes in fair value on foreign exchange contracts were gains of $3 thousand and $9 thousand, respectively, and were recognized in the Consolidated Statements of Income as other income and fees. At June 30, 2024, the Company had risk participation agreements with an outside counterparty for interest rate swaps related to loans in which it is a participant. The risk participation agreements provide credit protection to the financial institution should the borrowers fail to perform on their interest rate derivative contracts. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value of credit derivatives are recognized directly in earnings. The fee received, less the estimate of the loss for credit exposure, is recognized in earnings at the time of the transaction. The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At June 30, 2024 and December 31, 2023, the Company had approximately $4.0 million and $1.4 million, respectively, in interest rate lock commitments and total forward sales commitments for the future delivery of residential mortgage loans. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The following table presents a summary of commitments described below at the dates indicated below: June 30, 2024 December 31, 2023 (Dollars in thousands) Commitments to extend credit $ 2,060,656 $ 2,274,239 Standby letters of credit 137,487 132,132 Other letters of credit 24,925 51,983 Commitments to fund investments in affordable housing partnerships 18,345 21,017 The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, commercial letters of credit, and commitments to fund investments in affordable housing partnerships. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. The Company’s exposure to credit loss in the event of nonperformance on commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as the Company does for extending loan facilities to customers. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on the Company’s credit evaluation of the counterparty. The types of collateral that the Company may hold can vary and may include accounts receivable, inventory, property, plant and equipment, and income-producing properties. The estimated exposure to loss from these commitments is included in the reserve for unfunded loan commitments, which amounted to $2.5 million at June 30, 2024, and $3.8 million at December 31, 2023. In the normal course of business, the Company is involved in various legal claims. The Company has reviewed all legal claims against the Company with counsel and has taken into consideration the views of such counsel as to the potential outcome of the claims. Loss contingencies for all legal claims totaled $500 thousand at June 30, 2024, and $535 thousand at December 31, 2023. It is reasonably possible that the Company may incur losses in excess of the amounts currently accrued. However, at this time, the Company is unable to estimate the range of additional losses that are reasonably possible because of a number of factors, including the fact that certain of these litigation matters are still in their early stages. Management believes that none of these legal claims, individually or in the aggregate, will have a material adverse effect on the results of operations or financial condition of the Company. |
Goodwill, Intangible Assets, an
Goodwill, Intangible Assets, and Servicing Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangible Assets, and Servicing Assets | Goodwill, Intangible Assets, and Servicing Assets Goodwill The carrying amount of the Company’s goodwill at June 30, 2024, and December 31, 2023, was $464.5 million. There was no impairment of goodwill recorded during the three and six months ended June 30, 2024. Goodwill and other intangible assets generated from business combinations and deemed to have indefinite lives are not subject to amortization and instead are tested for impairment annually at the reporting unit level unless a triggering event occurs thereby requiring an updated assessment. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Impairment exists when the carrying value of the goodwill exceeds the fair value of the reporting unit. At December 31, 2023, the Company performed a qualitative assessment to test for impairment and management has concluded that there was no impairment. As the Company operates as single business unit, goodwill impairment was assessed based on the Company as a whole. Intangible Assets Amortization expense related to core deposit intangible assets totaled $401 thousand and $802 thousand for the three and six months ended June 30, 2024, respectively. Amortization expense related to core deposit intangible assets totaled $448 thousand and $896 thousand for the three and six months ended June 30, 2023, respectively. The following table provides information regarding the core deposit intangibles at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Core Deposit Intangibles Related To: Amortization Period Gross Accumulated Carrying Amount Accumulated Carrying Amount (Dollars in thousands) Wilshire Bancorp acquisition 10 years $ 18,138 $ (15,005) $ 3,133 $ (14,203) $ 3,935 Servicing Assets Total servicing assets at June 30, 2024, totaled $9.0 million and comprised $7.2 million in SBA servicing assets and $1.8 million in mortgage related servicing assets. At December 31, 2023, servicing assets totaled $9.6 million and comprised $7.6 million in SBA servicing assets and $2.1 million in mortgage related servicing assets. Management periodically evaluates servicing assets for impairment based upon the fair value of the rights as compared to the carrying amount. Impairment is determined by stratifying rights into groupings based on loan type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. At June 30, 2024 and December 31, 2023, the Company did not have a valuation allowance on its servicing assets. The changes in servicing assets for the three and six months ended June 30, 2024 and 2023, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Balance at beginning of period $ 8,869 $ 11,628 $ 9,631 $ 11,628 Additions through originations of servicing assets 742 884 749 1,849 Amortization (627) (980) (1,396) (1,945) Balance at end of period $ 8,984 $ 11,532 $ 8,984 $ 11,532 Loans serviced for others are not reported as assets. The principal balances of loans serviced for other institutions were $961.1 million at June 30, 2024, and $987.4 million at December 31, 2023. The Company utilizes the discounted cash flow method to calculate the initial excess servicing assets. The inputs used in evaluating servicing assets for impairment at June 30, 2024 and December 31, 2023, are presented below. June 30, 2024 December 31, 2023 SBA Servicing Assets: Weighted-average discount rate 10.03% 11.12% Constant prepayment rate 12.25% 12.17% Mortgage Servicing Assets: Weighted-average discount rate 11.13% 11.00% Constant prepayment rate 5.51% 9.52% |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended June 30, 2024, the Company recorded an income tax provision of $9.3 million on pretax income of $34.5 million, representing an effective tax rate of 26.85%, compared with an income tax provision of $13.4 million on pretax income of $51.5 million, representing an effective tax rate of 26.13% for the three months ended June 30, 2023. For the six months ended June 30, 2024, the Company recorded an income tax provision totaling $19.3 million on pretax income of $70.4 million, representing an effective tax rate of 27.41%, compared with an income tax provision of $27.1 million on pretax income of $104.3 million, representing an effective tax rate of 26.02% for the six months ended June 30, 2023. The Company and its subsidiaries are subject to U.S. federal income tax, as well as state income taxes. The Company had total unrecognized tax benefits of $807 thousand at June 30, 2024, and $469 thousand at December 31, 2023, that relate to uncertainties associated with federal and state income tax matters. Management believes it is reasonably possible that the unrecognized tax benefits may decrease by $269 thousand in the next twelve months due to the expiration of statute of limitations. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities (without regard to certain changes to deferred taxes). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date reflecting assumptions that a market participant would use when pricing an asset or liability. There are three levels of inputs that may be used to measure fair value. The fair value inputs of the instruments are classified and disclosed in one of the following categories pursuant to ASC 820: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. The quoted price shall not be adjusted for any blockage factor (i.e., size of the position relative to trading volume). Level 2 - Pricing inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies, including the use of pricing matrices. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Pricing inputs are unobservable for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The inputs into the determination of fair value require significant management judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company uses the following methods and assumptions in estimating fair value disclosures for financial instruments. Financial assets and liabilities recorded at fair value on a recurring and non-recurring basis are listed as follows: Investment Securities The fair values of investment securities available for sale and held to maturity are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The fair value of the Company’s Level 3 security available for sale was measured using an income approach valuation technique. The primary inputs and assumptions used in the fair value measurement was derived from the security’s underlying collateral, which included discount rate, prepayment speeds, payment delays, and an assessment of the risk of default of the underlying collateral, among other factors. Significant increases or decreases in any of the inputs or assumptions could result in a significant increase or decrease in the fair value measurement. Equity Investments With Readily Determinable Fair Value The fair value of the Company’s equity investments with readily determinable fair value is comprised of mutual funds. The fair value for these investments is obtained from unadjusted quoted prices in active markets on the date of measurement and is therefore classified as Level 1. Interest Rate Contracts The Company offers interest rate contracts to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate contract with the customer. The Company also enters into an offsetting interest rate contract with a correspondent bank. These back-to-back agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. The fair value assets and liabilities of centrally cleared interest rate contracts are net of variation margin settled-to-market. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate contracts is classified as Level 2. Mortgage Banking Derivatives Mortgage banking derivative instruments consist of interest rate lock commitments and forward sale contracts that trade in liquid markets. The fair value is based on the prices available from third party investors. Due to the observable nature of the inputs used in deriving the fair value, the valuation of mortgage banking derivatives is classified as Level 2. Other Derivatives Other derivatives consist of interest rate contracts designated as cash flow hedges, foreign exchange contracts and risk participation agreements. The fair values of these other derivative financial instruments are based upon the estimated amount the Company would receive or pay to terminate the instruments, taking into account current interest rates, foreign exchange rates and, when appropriate, the current credit worthiness of the counterparties. Fair value assets and liabilities of centrally cleared derivatives are net of variation margin settled-to-market. Interest rate contracts designated as cash flow hedges and foreign exchange contracts, which includes non-deliverable forward contracts, are classified within Level 2 due to the observable nature of the inputs used in deriving the fair value of these contracts. Credit derivatives such as risk participation agreements are valued based on credit worthiness of the underlying borrower, which is a significant unobservable input and therefore is classified as Level 3. Collateral-Dependent Loans The fair values of collateral-dependent loans are generally measured for ACL using the practical expedients permitted by ASC 326-20-35-5 including collateral-dependent loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral-dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation, less costs to sell of 8.5%. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and income approach. Adjustment may be made in the appraisal process by the independent appraiser to adjust for differences between the comparable sales and income data available for similar loans and the underlying collateral. For C&I and asset backed loans, independent valuations may include a 20-60% discount for eligible accounts receivable and a 50-70% discount for inventory. These result in a Level 3 classification. OREO OREO is fair valued at the time the loan is foreclosed upon and the asset is transferred to OREO. The value is based primarily on third party appraisals, less costs to sell of up to 8.5% and result in a Level 3 classification of the inputs for determining fair value. OREO is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted to lower of cost or market accordingly, based on the same factors identified above. Loans Held For Sale Loans held for sale are carried at the lower of cost or fair value, as determined by outstanding commitments from investors, or based on recent comparable sales (Level 2 inputs), if available. If Level 2 inputs are not available, carrying values are based on discounted cash flows using current market rates applied to the estimated life and credit risk (Level 3 inputs) or may be assessed based upon the fair value of the collateral, which is obtained from recent real estate appraisals (Level 3 inputs). These appraisals may utilize a single valuation approach or a combination of approaches including the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at the End of June 30, 2024 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Investment securities AFS: U.S. Government agency and U.S. Government sponsored enterprises: Agency securities $ 3,896 $ — $ 3,896 $ — Collateralized mortgage obligations 705,576 — 705,576 — Mortgage-backed securities: Residential 393,338 — 393,338 — Commercial 432,926 — 432,926 — Asset-backed securities 139,826 — 139,826 — Corporate securities 19,590 — 19,590 — Municipal securities 219,639 — 218,824 815 Equity investments with readily determinable fair value 4,298 4,298 — — Interest rate contracts 59,158 — 59,158 — Mortgage banking derivatives 11 — 11 — Other derivatives 492 — 492 — Liabilities: Interest rate contracts 60,653 — 60,653 — Mortgage banking derivatives 20 — 20 — Other derivatives 11,800 — 11,784 16 Fair Value Measurements at the End of December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Investment securities AFS: U.S. Treasury securities $ 103,677 $ 103,677 $ — $ — U.S. Government agency and U.S. Government sponsored enterprises: Agency securities 3,900 — 3,900 — Collateralized mortgage obligations 747,719 — 747,719 — Mortgage-backed securities: Residential 420,298 — 420,298 — Commercial 391,888 — 391,888 — Asset-backed securities 149,670 — 149,670 — Corporate securities 19,434 — 19,434 — Municipal securities 308,473 — 307,615 858 Equity investments with readily determinable fair value 4,363 4,363 — — Interest rate contracts 54,302 — 54,302 — Mortgage banking derivatives 7 — 7 — Other derivatives 11,021 — 11,021 — Liabilities: Interest rate contracts 55,622 — 55,622 — Mortgage banking derivatives 17 — 17 — Other derivatives 1,379 — 1,351 28 There were no transfers between Levels 1, 2, and 3 during the three and six months ended June 30, 2024 and 2023. The table below presents a reconciliation and income statement classification of gains (losses) for the municipal security and risk participation agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Municipal securities: Beginning Balance $ 819 $ 982 $ 858 $ 943 Change in fair value included in other comprehensive income (4) (52) (43) (13) Ending Balance $ 815 $ 930 $ 815 $ 930 Risk participation agreements: Beginning Balance $ 13 $ 35 $ 28 $ 32 Change in fair value included in income 3 (7) (12) (4) Ending Balance $ 16 $ 28 $ 16 $ 28 The Company measures certain assets at fair value on a non-recurring basis including collateral-dependent loans, loans held for sale, and OREO. These fair value adjustments result from individually evaluated ACL recognized during the period, application of the lower of cost or fair value on loans held for sale, and the application of fair value less cost to sell on OREO. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at the End of June 30, 2024 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Collateral-dependent loans receivable at fair value: CRE loans $ 4,162 $ — $ — $ 4,162 C&I loans 3,924 — — 3,924 Loans held for sale, net 26,156 — 26,156 — Fair Value Measurements at the End of December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Collateral-dependent loans receivable at fair value: CRE loans $ 3,475 $ — $ — $ 3,475 C&I loans 2,701 — — 2,701 Loans held for sale, net 2,287 — 2,287 — OREO 63 — — 63 For assets measured at fair value on a non-recurring basis, the total net losses, which include charge offs, recoveries, recorded ACL, valuations, and recognized gains and losses on sales are summarized below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Assets: Collateral-dependent loans receivable at fair value: CRE loans $ (323) $ (642) $ (360) $ (762) C&I loans (2,968) (11,472) (2,968) (11,861) Loans held for sale, net (2,854) — (2,854) — OREO — — — (271) Fair Value of Financial Instruments Carrying amounts and estimated fair values of financial instruments, not previously presented, at June 30, 2024 and December 31, 2023, were as follows: June 30, 2024 Carrying Amount Estimated Fair Value Fair Value Measurement (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 654,044 $ 654,044 Level 1 Investment securities HTM 258,068 237,621 Level 2 Equity investments without readily determinable fair values 39,980 39,980 Level 2 Loans held for sale 68,316 71,014 Level 2 Loans receivable, net 13,410,983 13,000,721 Level 3 Accrued interest receivable 57,645 57,645 Level 2/3 Servicing assets, net 8,984 15,424 Level 3 Customers’ liabilities on acceptances 854 854 Level 2 Financial Liabilities: Noninterest bearing deposits $ 3,671,192 $ 3,671,192 Level 2 Money market, interest bearing demand and savings deposits 4,907,860 4,907,860 Level 2 Time deposits 6,132,419 6,133,189 Level 2 FHLB and FRB borrowings 170,000 170,257 Level 2 Convertible notes 444 423 Level 1 Subordinated debentures 108,474 102,980 Level 3 Accrued interest payable 86,779 86,779 Level 2 Acceptances outstanding 854 854 Level 2 December 31, 2023 Carrying Amount Estimated Fair Value Fair Value Measurement (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 1,928,967 $ 1,928,967 Level 1 Investment securities HTM 263,912 250,518 Level 2 Equity investments without readily determinable fair values 39,387 39,387 Level 2 Loans held for sale 3,408 3,419 Level 2 Loans receivable, net 13,694,925 13,270,444 Level 3 Accrued interest receivable 61,720 61,720 Level 2/3 Servicing assets, net 9,631 14,853 Level 3 Customers’ liabilities on acceptances 471 471 Level 2 Financial Liabilities: Noninterest bearing deposits $ 3,914,967 $ 3,914,967 Level 2 Money market, interest bearing demand and savings deposits 4,872,029 4,872,029 Level 2 Time deposits 5,966,757 5,974,125 Level 2 FHLB and FRB borrowings 1,795,726 1,795,820 Level 2 Convertible notes, net 444 451 Level 1 Subordinated debentures 107,825 99,358 Level 3 Accrued interest payable 168,174 168,174 Level 2 Acceptances outstanding 471 471 Level 2 The Company measures assets and liabilities for its fair value disclosures based on an exit price notion. Although the exit price notion represents the value that would be received to sell an asset or paid to transfer a liability, the actual price received for a sale of assets or paid to transfer liabilities could be different from exit price disclosed. The methods and assumptions used to estimate fair value are described as follows: The carrying amount was the estimated fair value for cash and cash equivalents, savings and other interest bearing demand deposits, equity investments without readily determinable fair values, customers’ and Bank’s liabilities on acceptances, noninterest bearing deposits, short-term debt, secured borrowings, and variable rate loans or deposits that reprice frequently and fully. The fair value of loans was determined through a discounted cash flow analysis, which incorporates probability of default and loss given default rates on an individual loan basis. For fixed rate loans, the discount rate used in a discounted cash flow analysis was based on the SOFR Swap Rate. For variable loans, the discount rate started with the underlying index rate and an adjustment was made on certain loans, which considered factors such as servicing costs, capital charges, duration, asset type incremental costs, and use of projected cash flows. Fair values of residential real estate loans included Fannie Mae and Freddie Mac prepayment speed assumptions or a third-party index based on historical prepayment speeds. Fair value of time deposits was based on discounted cash flow analyses using recent issuance rates over the prior three months and a market rate analysis of recent offering rates for retail products. Wholesale time deposit fair values incorporated brokered time deposit offering rates. The fair value of the Company’s debt was based on current rates for similar financing with a liquidity premium added to assumed market spreads to reflect exit pricing and the marketability/liquidity costs contained with consummating an orderly transaction. Fair value for the Company’s convertible notes was based on the actual last traded price of the notes. The fair value of commitments to fund loans represents fees currently charged to enter into similar agreements with similar remaining maturities and was not presented herein, as the fair value of these financial instruments was not material to the consolidated financial statements. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Total stockholders’ equity at June 30, 2024, was $2.11 billion, compared with $2.12 billion at December 31, 2023. In January 2022, the Company’s Board of Directors approved a share repurchase program that authorized the Company to repurchase up to $50.0 million of its common stock, of which an estimated $35.3 million remained available at June 30, 2024. During the six months ended June 30, 2024, the Company did not repurchase any shares of common stock as part of this program (see Part II, Item 2—“Unregistered Sales of Equity Securities and Use of Proceeds” for additional information). For the three months ended June 30, 2024 and 2023, the Company paid dividends of $0.14 per common share. For the six months ended June 30, 2024 and 2023, the Company paid dividends of $0.28 per common share. The following table presents the changes to accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Balance at beginning of period $ (222,278) $ (214,257) $ (204,738) $ (230,857) Unrealized net (losses) gains on securities available for sale (9,381) (31,071) (23,115) 144 Unrealized net (losses) gains on interest rate contracts used for cash flow hedges (2,750) 13,653 (10,936) 7,715 Reclassification adjustments for net gains realized in net income (3,241) (3,322) (6,172) (5,060) Tax effect 4,520 6,113 11,831 (826) Other comprehensive (loss) income, net of tax (10,852) (14,627) (28,392) 1,973 Balance at end of period $ (233,130) $ (228,884) $ (233,130) $ (228,884) Reclassifications for net gains and losses realized in net income for the three and six months ended June 30, 2024 and 2023, related to net gains on interest rate contracts designated as cash flow hedges and amortization on unrealized losses from transferred investment securities to HTM. Gains and losses on interest rate contracts are recorded in interest expense in the Consolidated Statements of Income. The unrealized holding losses at the date of transfer on securities HTM will continue to be reported, net of taxes, in AOCI as a component of stockholders’ equity and will be amortized over the remaining life of the securities as an adjustment of yield, offsetting the impact on yield of the corresponding discount amortization. For the three and six months ended June 30, 2024, the Company reclassified net gains of $3.8 million and $7.6 million on interest rate contracts designated as cash flow hedges, respectively, from other comprehensive loss to net interest income, compared with $4.1 million and $6.9 million for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2024, the Company recorded a reclassification adjustment of $978 thousand and $1.8 million, respectively, from other comprehensive loss to a reduction of interest income, to amortize transferred unrealized losses to investment securities HTM, compared with $806 thousand and $1.8 million for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2024, the Company reclassified net gains of $425 thousand and $425 thousand on the sale of investment securities, respectively, from other comprehensive loss to noninterest income, compared with $0 and $0 for the three and six months ended June 30, 2023, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In May 2024, the Company’s stockholders approved the 2024 Equity Incentive Plan (the “2024 Plan”), which provides for grants of stock options, stock appreciation rights (“SAR”), restricted stock, performance shares, and performance units to non-employee directors and employees of the Company. Stock options may be either incentive stock options (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or nonqualified stock options (“NQSOs”). The 2024 Plan provides the Company flexibility to (i) attract and retain qualified non-employee directors, executives, and other key employees with appropriate equity-based awards; (ii) motivate high levels of performance; (iii) recognize employees’ contributions to the Company’s success; and (iv) align the interests of the participants with those of the Company’s stockholders. The 2024 Plan reserved for 4,500,000 shares available for grant to participants. At June 30, 2024, there were 4,500,000 remaining shares available for future grants as no shares have been granted under the 2024 plan. The pool of available shares can be partially replenished for future grants to the extent there are forfeitures, expirations or otherwise terminations of existing equity awards without issuance of the shares underlying such awards. The exercise price for shares under an ISO may not be less than 100% of fair market value on the date the award is granted under the Code. Similarly, under the terms of the 2024 Plan, the exercise price for SARs and NQSOs may not be less than 100% of fair market value on the date of grant. Performance units are awarded to participants at the market price of the Company’s common stock on the date of award, after the lapse of the restriction period and the attainment of the performance criteria. All options not exercised generally expire 10 years after the date of grant. The shares of common stock previously available under the 2019 Incentive Compensation Plan (the “2019 Plan”) will no longer be available for future grant. ISOs, SARs, and NQSOs have vesting periods of three With the exception of the shares that are underlying stock options and restricted stock awards, the Board of Directors may choose to settle the awards by paying the equivalent cash value or by delivering the appropriate number of shares. The following is a summary of the Company’s stock option activity under the 2019 Plan for the six months ended June 30, 2024: Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Aggregate Intrinsic Value (Dollars in thousands) Outstanding - January 1, 2024 629,367 $ 16.61 Granted — — Exercised — — Expired (198,136) 15.79 Forfeited — — Outstanding - June 30, 2024 431,231 $ 16.99 2.08 $ — Options exercisable - June 30, 2024 431,231 $ 16.99 2.08 $ — The following is a summary of the Company’s restricted stock and performance unit activity under the 2019 Plan for the six months ended June 30, 2024: Number of Shares Weighted-Average Grant Date Fair Value Outstanding (unvested) - January 1, 2024 2,043,621 $ 12.09 Granted 34,634 15.49 Vested (916,262) 12.58 Forfeited (109,791) 13.82 Outstanding (unvested) - June 30, 2024 1,052,202 $ 11.60 The total fair value of restricted stock and performance units vested during the six months ended June 30, 2024 and 2023, was $10.0 million and $8.0 million, respectively. The total amounts charged against income related to stock-based payment arrangements were $1.7 million and $4.4 million for the three and six months ended June 30, 2024, respectively. For the three and six ended June 30, 2023, $3.4 million and $5.7 million, respectively, of stock-based payment arrangements were charged against income. The income tax benefit recognized was approximately $466 thousand and $1.2 million for the three and six months ended June 30, 2024, respectively, compared with $884 thousand and $1.5 million for the three and six months ended June 30, 2023, respectively. Since all stock option grants were vested at June 30, 2024, there was no unrecognized compensation expense related to non-vested stock option grants. Unrecognized compensation expense related to non-vested restricted stock and performance units at June 30, 2024 was $6.4 million, and is expected to be recognized over a weighted average vesting period of 1.31 years. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2024 | |
Banking Regulation [Abstract] | |
Regulatory Matters | Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a material and adverse effect on the Company’s and the Bank’s business, financial condition and results of operation, such as restrictions on growth or the payment of dividends or other capital distributions or management fees. 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 their assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. At June 30, 2024, the capital ratios for the Company and the Bank were in excess of all regulatory minimum capital ratios with the addition of the conservation buffer. On January 1, 2020, the Company adopted ASU 2016-13 and implemented the CECL methodology. In response to the COVID-19 pandemic, federal regulatory agencies published a final rule that provides the option to delay the cumulative effect of the day 1 impact of CECL adoption on regulatory capital, along with 25% of the change in the adjusted allowance for credit losses (as computed for regulatory capital purposes, which excludes purchased credit deteriorated (“PCD”) loans), for two years, followed by a three-year phase-in period. The Company has elected the five-year transition period consistent with the final rule issued by the federal regulatory agencies. At June 30, 2024 and December 31, 2023, the most recent regulatory notification categorized the Bank as “well-capitalized” under the regulatory framework for prompt corrective action. To generally be categorized as “well-capitalized”, the Bank must maintain a minimum total capital ratio, Tier 1 capital ratio, common equity Tier 1 capital ratio, and leverage ratio as set forth in the following table. There are no conditions or events since the most recent notification from regulators that management believes has changed the institution’s category. The Company’s and the Bank’s levels and ratios are presented in the tables below for the dates indicated and include the effects of the Company’s election to utilize the five-year transition described above: Actual Ratio Required for Capital Adequacy Purposes Ratio Required To Be Well-Capitalized Ratio Required for Minimum Capital Adequacy With Capital Conservation Buffer June 30, 2024 Amount Ratio (Dollars in thousands) Common equity Tier 1 capital Company $ 1,882,623 12.70 % 4.50 % N/A 7.00 % Bank $ 1,961,022 13.23 % 4.50 % 6.50 % 7.00 % Tier 1 capital Company $ 1,987,196 13.40 % 6.00 % N/A 8.50 % Bank $ 1,961,022 13.23 % 6.00 % 8.00 % 8.50 % Total capital Company $ 2,137,513 14.42 % 8.00 % N/A 10.50 % Bank $ 2,111,339 14.25 % 8.00 % 10.00 % 10.50 % Leverage capital Company $ 1,987,196 11.61 % 4.00 % N/A N/A Bank $ 1,961,022 11.46 % 4.00 % 5.00 % N/A Actual Ratio Required for Capital Adequacy Purposes Ratio Required To Be Well-Capitalized Ratio Required for Minimum Capital Adequacy With Capital Conservation Buffer December 31, 2023 Amount Ratio (Dollars in thousands) Common equity Tier 1 capital Company $ 1,869,774 12.28 % 4.50 % N/A 7.00 % Bank $ 1,940,303 12.75 % 4.50 % 6.50 % 7.00 % Tier 1 capital Company $ 1,973,698 12.96 % 6.00 % N/A 8.50 % Bank $ 1,940,303 12.75 % 6.00 % 8.00 % 8.50 % Total capital Company $ 2,120,157 13.92 % 8.00 % N/A 10.50 % Bank $ 2,086,762 13.71 % 8.00 % 10.00 % 10.50 % Leverage capital Company $ 1,973,698 10.11 % 4.00 % N/A N/A Bank $ 1,940,303 9.94 % 4.00 % 5.00 % N/A |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when obligations under the terms of a contract with customers are satisfied. ASU 2014-09 (Topic 606) does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also out of scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, wire transfer and foreign currency fees, and certain OREO related net gains or expenses. However, the recognition of these revenue streams for the Company did not change significantly upon adoption of Topic 606. Noninterest revenue streams within the scope of Topic 606 are discussed below. Service Charges on Deposit Accounts and Wire Transfer Fees Service charges on noninterest and interest bearing deposit accounts consist of monthly service charges, customer analysis charges, non-sufficient funds (“NSF”) charges, and other deposit account related charges. The Company’s performance obligation for account analysis charges and monthly service charges is generally satisfied, and the related revenue is recognized, over the period in which the service is provided. NSF charges, other deposit account related charges, and wire transfer fees are transaction based, and therefore the Company’s performance obligation is satisfied at the point of the transaction, and related revenue recognized at that point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Service charges on deposit accounts and wire transfers are summarized below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Noninterest bearing deposit account income: Monthly service charges $ 244 $ 241 $ 488 $ 486 Customer analysis charges 1,526 1,259 2,949 2,385 NSF charges 805 711 1,619 1,446 Other service charges 75 89 154 180 Total noninterest bearing deposit account income 2,650 2,300 5,210 4,497 Interest bearing deposit account income: Monthly service charges 31 25 58 49 Total service fees on deposit accounts $ 2,681 $ 2,325 $ 5,268 $ 4,546 Wire transfer fee income: Wire transfer fees $ 495 $ 460 $ 758 $ 867 Foreign exchange fees 479 390 1,028 756 Total wire transfer and foreign currency fees $ 974 $ 850 $ 1,786 $ 1,623 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Basic EPS - common stock | $ 25,270 | $ 38,022 | $ 51,134 | $ 77,143 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Basis Of Presentation [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of Hope Bancorp and its wholly owned subsidiaries, principally the Bank. All intercompany transactions and balances have been eliminated in consolidation. The Company has made all adjustments, that, in the opinion of management, are necessary to fairly present the Company’s financial position at June 30, 2024 and December 31, 2023, and the results of operations for the three and six months ended June 30, 2024 and 2023. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. The results of operations for the interim periods are not necessarily indicative of results to be anticipated for the full year. |
Use of estimates | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Pending Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted |
Financing Receivables | The Company calculates its ACL by estimating expected credit losses on a collective basis for loans that share similar risk characteristics. Loans that do not share similar risk characteristics with other loans are evaluated for credit losses on an individual basis. The Company differentiates its loan segments based on shared risk characteristics for which allowance for credit losses is measured on a collective basis. Risk Characteristics CRE loans Property type, location, owner-occupied status C&I loans Delinquency status, risk rating, industry type Residential mortgage loans FICO score, LTV, delinquency status, maturity date, collateral value, location Consumer and other loans Historical losses The Company uses a combination of a modeled and non-modeled approach that incorporates current and future economic conditions to estimate lifetime expected losses on a collective basis. The Company uses Probability of Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”) methodologies with quantitative factors and qualitative considerations in the calculation of the allowance for credit losses for collectively assessed loans. The Company uses a reasonable and supportable period of two years, at which point loss assumptions revert back to historical loss information by means of a one-year reversion period. Included in the quantitative portion of the ACL analysis are inputs such as borrowers’ net operating income, debt coverage ratios, real estate collateral values, as well as factors that are more subjective or require management’s judgment, including key macroeconomic variables from Moody’s forecast scenarios such as GDP, unemployment rates, interest rates, and CRE prices. These key inputs are utilized in the Company’s models to develop PD and LGD assumptions used in the calculation of estimated quantitative losses. The ACL for the Company’s construction, credit card, and certain consumer loans is calculated based on a non-modeled approach that utilizes historical loss rates to estimate losses. A non-modeled approach was chosen for these loans as fewer data points exist, which could result in high levels of estimated loss volatility under a modeled approach. In the aggregate, non-modeled loans represented less than 2% of the Company’s total loan portfolio at June 30, 2024. The Company’s Economic Forecast Committee (“EFC”) reviews economic forecast scenarios that are incorporated in the Company’s ACL. The EFC reviews multiple scenarios provided to the Company by an independent third party and chooses a single scenario that best aligns with management’s expectation of future economic conditions. At June 30, 2024, the Company utilized the June 2024 consensus economic forecast scenario from Moody’s, as it best aligned with management’s expectations of future conditions. The forecast projected GDP growth of 2.3% in 2024, 1.7% for 2025, and 1.9% for 2026, with unemployment projected to be 4.2% for 2024, 4.1% for 2025, and 4.0% in 2026. CRE prices in the consensus scenario were expected to decrease initially, with the CRE price index declining -4.0% for 2024, before rebounding +4.2% for 2025 and +6.7% in 2026. The Company also utilized Moody’s December 2023 consensus economic forecast for the calculation of the December 31, 2023 ACL. In order to quantify the credit risk impact of other trends and changes within the loan portfolio, the Company utilizes qualitative adjustments to the modeled and non-modeled estimated loss approaches. The parameters for making adjustments are established under a Credit Risk Matrix that provides different possible scenarios for each of the factors below. The Credit Risk Matrix and the possible scenarios enable the Bank to qualitatively adjust the Loss Migration Ratio by as much as 25 basis points for each loan type pool. This matrix considers the following seven factors, which are patterned after the guidelines provided under the Interagency Policy Statement on the Allowance for Credit Losses, updated to reflect the adoption of CECL: • Changes in lending policies and procedures, including underwriting standards and collection, charge off, and recovery practices; • Changes in the nature and volume of the loan portfolio; • Changes in the experience, ability, and depth of lending management and staff; • Changes in the trends of the volume and severity of past due loans, classified loans, nonaccrual loans, and other loan modifications; • Changes in the quality of the loan review system and the degree of oversight by the management and the Board of Directors; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of external factors, such as competition, legal requirements, and regulatory requirements on the level of estimated losses in the loan portfolio. For loans that do not share similar risk characteristics such as nonaccrual loans above $1.0 million, the Company evaluates these loans on an individual basis in accordance with ASC 326. Such nonaccrual loans are considered to have different risk profiles than performing loans and are therefore evaluated individually. The Company elected to collectively assess nonaccrual loans with balances below $1.0 million along with the performing and accrual loans, in order to reduce the operational burden of individually assessing small nonaccrual loans with immaterial balances. For individually assessed loans, the ACL is measured using either 1) the present value of future cash flows discounted at the loan’s effective interest rate; 2) the loan’s observable market price; or 3) the fair value of the collateral, if the loan is collateral-dependent. For the collateral-dependent loans, the Company obtains a new appraisal to determine the fair value of collateral. The appraisals are based on an “as-is” valuation. To ensure that appraised values remain current, the Company either obtains updated appraisals every twelve months from a qualified independent appraiser or an internal evaluation of the collateral is performed by qualified personnel. If the third-party market data indicates that the value of the collateral property has declined since the most recent valuation date, management adjusts the value of the property downward to reflect current market conditions. If the fair value of the collateral is less than the amortized balance of the loan, the Company recognizes an ACL with a corresponding charge to the provision for credit loss on loans. The Company maintains a separate ACL for its off-balance-sheet unfunded loan commitments. The Company uses an estimated funding rate to allocate an allowance to undrawn exposures. This funding rate is used as a credit conversion factor to capture how much undrawn lines of credit can potentially become drawn at any point. The funding rate is determined based on a look-back period of eight quarters. Credit loss is not estimated for off-balance-sheet credit exposures that are unconditionally cancellable by the Company. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted EPS | The following tables present computations of basic and diluted EPS for the three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, 2024 2023 Net Income Weighted-Average Shares Earnings Net Income Weighted-Average Shares Earnings (Dollars in thousands, except share and per share data) Basic EPS - common stock $ 25,270 120,664,472 $ 0.21 $ 38,022 119,953,174 $ 0.32 Effect of dilutive securities: Stock options and restricted stock 274,957 176,185 Diluted EPS - common stock $ 25,270 120,939,429 $ 0.21 $ 38,022 120,129,359 $ 0.32 Six Months Ended June 30, 2024 2023 Net Income Weighted-Average Shares Earnings Net Income Weighted-Average Shares Earnings (Dollars in thousands, except share and per share data) Basic EPS - common stock $ 51,134 120,425,886 $ 0.42 $ 77,143 119,753,321 $ 0.64 Effect of dilutive securities: Stock options and restricted stock 538,263 426,122 Diluted EPS - common stock $ 51,134 120,964,149 $ 0.42 $ 77,143 120,179,443 $ 0.64 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule Of Change In Fair Value For Equity Investment Securities | The changes in fair value for equity investments with readily determinable fair values for the three and six months ended June 30, 2024 and 2023, were recorded in other noninterest income and fees as summarized in the table below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Net change in fair value recorded during the period on equity investments with readily determinable fair value $ (19) $ (69) $ (65) $ — Less: Net change in fair value recorded on equity investments sold during the period — — — — Net change in fair value on equity investments with readily determinable fair values held at the end of the period $ (19) $ (69) $ (65) $ — |
Securities Available for Sale (
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Securities, Available-for-Sale [Abstract] | |
Summary of Securities Available for Sale | The following is a summary of investment securities as of the dates indicated: June 30, 2024 December 31, 2023 Amortized Gross Gross Fair Amortized Gross Gross Fair (Dollars in thousands) Debt securities AFS: U.S. Treasury securities $ — $ — $ — $ — $ 103,691 $ 21 $ (35) $ 103,677 U.S. Government agency and U.S. Government sponsored enterprises: Agency securities 4,000 — (104) 3,896 4,000 — (100) 3,900 Collateralized mortgage obligations (“CMO”) 854,271 341 (149,036) 705,576 888,631 367 (141,279) 747,719 Mortgage-backed securities (“MBS”): Residential 478,806 — (85,468) 393,338 499,431 — (79,133) 420,298 Commercial 489,824 14 (56,912) 432,926 445,207 113 (53,432) 391,888 Asset-backed securities 139,300 527 (1) 139,826 150,992 — (1,322) 149,670 Corporate securities 23,278 — (3,688) 19,590 23,302 — (3,868) 19,434 Municipal securities 233,601 724 (14,686) 219,639 314,554 5,698 (11,779) 308,473 Total investment securities AFS $ 2,223,080 $ 1,606 $ (309,895) $ 1,914,791 $ 2,429,808 $ 6,199 $ (290,948) $ 2,145,059 Debt securities HTM: U.S. Government agency and U.S. Government sponsored enterprises: MBS: Residential $ 146,133 $ — $ (11,785) $ 134,348 $ 150,369 $ — $ (6,663) $ 143,706 Commercial 111,935 — (8,662) 103,273 113,543 — (6,731) 106,812 Total investment securities HTM $ 258,068 $ — $ (20,447) $ 237,621 $ 263,912 $ — $ (13,394) $ 250,518 |
Interest Income | The following table presents a breakdown of interest income recorded for investment securities that are taxable and nontaxable. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Interest income on investment securities Taxable $ 15,966 $ 14,466 $ 32,948 $ 28,512 Nontaxable 863 1,068 1,930 2,147 Total $ 16,829 $ 15,534 $ 34,878 $ 30,659 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of investment securities at June 30, 2024, by contractual maturity, are presented in the table below. Collateralized mortgage obligations, mortgage-backed securities, and asset-backed securities are presented by final maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. Available for Sale Held to Maturity Amortized Estimated Amortized Estimated (Dollars in thousands) Debt securities: Due within one year $ — $ — $ — $ — Due after one year through five years 153,280 144,642 25,003 24,161 Due after five years through ten years 120,690 110,467 8,724 8,249 Due after ten years 1,949,110 1,659,682 224,341 205,211 Total $ 2,223,080 $ 1,914,791 $ 258,068 $ 237,621 |
Schedule of Gross Unrealized Losses and Estimated Fair Values of Investments | The following tables show the Company’s investments’ gross unrealized losses and estimated fair values, aggregated by investment category and the length of time that the individual securities have been in a continuous unrealized loss position as of the dates indicated. The length of time that the individual securities have been in a continuous unrealized loss position is not a factor in determining credit impairment with the adoption of current expected credit losses (“CECL”). June 30, 2024 Less than 12 months 12 months or longer Total Description of Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Treasury securities — $ — $ — — $ — $ — — $ — $ — U.S. Government agency and U.S. Government sponsored enterprises: Agency securities — — — 1 3,896 (104) 1 3,896 (104) CMOs 1 6,191 (22) 115 680,888 (149,014) 116 687,079 (149,036) MBS: Residential 1 2,413 (160) 64 390,925 (85,308) 65 393,338 (85,468) Commercial 14 96,931 (2,587) 56 334,578 (54,325) 70 431,509 (56,912) Asset-backed securities — — — 1 7,549 (1) 1 7,549 (1) Corporate securities — — — 6 19,590 (3,688) 6 19,590 (3,688) Municipal securities 30 94,024 (1,713) 43 93,374 (12,973) 73 187,398 (14,686) Total 46 $ 199,559 $ (4,482) 286 $ 1,530,800 $ (305,413) 332 $ 1,730,359 $ (309,895) December 31, 2023 Less than 12 months 12 months or longer Total Description of Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Treasury securities — $ — $ — 1 $ 3,963 $ (35) 1 $ 3,963 $ (35) U.S. Government agency and U.S. Government sponsored enterprises: Agency securities — — — 1 3,900 (100) 1 3,900 (100) CMOs 3 19,800 (378) 115 717,662 (140,901) 118 737,462 (141,279) MBS: Residential — — — 65 420,298 (79,133) 65 420,298 (79,133) Commercial 6 53,255 (2,129) 53 331,450 (51,303) 59 384,705 (53,432) Asset-backed securities — — — 18 149,670 (1,322) 18 149,670 (1,322) Corporate securities — — — 6 19,434 (3,868) 6 19,434 (3,868) Municipal securities 11 42,760 (263) 42 91,707 (11,516) 53 134,467 (11,779) Total 20 $ 115,815 $ (2,770) 301 $ 1,738,084 $ (288,178) 321 $ 1,853,899 $ (290,948) |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Summary of Loans Receivable by Major Category | The following is a summary of loans receivable by segment: June 30, 2024 December 31, 2023 (Dollars in thousands) Loan portfolio composition Commercial real estate (“CRE”) loans $ 8,679,515 $ 8,797,884 Commercial and industrial (“C&I”) loans 3,854,284 4,135,044 Residential mortgage loans 996,601 883,687 Consumer and other loans 36,602 37,004 Total loans receivable, net of deferred costs and fees 13,567,002 13,853,619 Allowance for credit losses (156,019) (158,694) Loans receivable, net of allowance for credit losses $ 13,410,983 $ 13,694,925 |
Allowance for Credit Losses by Portfolio Segment | The tables below detail the activity in the allowance for credit losses (“ACL”) by portfolio segment for the three and six months ended June 30, 2024 and 2023. CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Three Months Ended June 30, 2024 Balance, beginning of period $ 90,823 $ 55,465 $ 11,942 $ 528 $ 158,758 Provision (credit) for credit loss on loans 5,334 4,449 (8,033) (50) 1,700 Loans charged off (520) (5,972) — (46) (6,538) Recoveries of charge offs 6 2,072 — 21 2,099 Balance, end of period $ 95,643 $ 56,014 $ 3,909 $ 453 $ 156,019 Six Months Ended June 30, 2024 Balance, beginning of period $ 93,940 $ 51,291 $ 12,838 $ 625 $ 158,694 Provision (credit) for credit loss on loans 1,720 12,695 (8,929) (186) 5,300 Loans charged off (558) (10,591) — (109) (11,258) Recoveries of charge offs 541 2,619 — 123 3,283 Balance, end of period $ 95,643 $ 56,014 $ 3,909 $ 453 $ 156,019 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Three Months Ended June 30, 2023 Balance, beginning of period $ 108,835 $ 42,790 $ 11,253 $ 666 $ 163,544 Provision (credit) for credit loss on loans (3,076) 11,013 730 233 8,900 Loans charged off (561) (298) — (120) (979) Recoveries of charge offs 123 1,389 — 19 1,531 Balance, end of period $ 105,321 $ 54,894 $ 11,983 $ 798 $ 172,996 Six Months Ended June 30, 2023 Balance, beginning of period $ 95,884 $ 56,872 $ 8,920 $ 683 $ 162,359 ASU 2022-02 day 1 adoption adjustment 19 (426) — — $ (407) Provision (credit) for credit loss on loans 9,787 (2,487) 3,063 237 10,600 Loans charged off (561) (738) — (175) (1,474) Recoveries of charge offs 192 1,673 — 53 1,918 Balance, end of period $ 105,321 $ 54,894 $ 11,983 $ 798 $ 172,996 The following tables break out the allowance for credit losses and loan balance by measurement methodology at June 30, 2024 and December 31, 2023: June 30, 2024 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Allowance for credit losses: Individually evaluated $ 333 $ 3,221 $ 25 $ 3 $ 3,582 Collectively evaluated 95,310 52,793 3,884 450 152,437 Total $ 95,643 $ 56,014 $ 3,909 $ 453 $ 156,019 Loans outstanding: Individually evaluated $ 27,292 $ 33,456 $ 6,206 $ 49 $ 67,003 Collectively evaluated 8,652,223 3,820,828 990,395 36,553 13,499,999 Total $ 8,679,515 $ 3,854,284 $ 996,601 $ 36,602 $ 13,567,002 December 31, 2023 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Allowance for credit losses: Individually evaluated $ 886 $ 1,721 $ 39 $ 14 $ 2,660 Collectively evaluated 93,054 49,570 12,799 611 156,034 Total $ 93,940 $ 51,291 $ 12,838 $ 625 $ 158,694 Loans outstanding: Individually evaluated $ 33,932 $ 5,013 $ 5,916 $ 343 $ 45,204 Collectively evaluated 8,763,952 4,130,031 877,771 36,661 13,808,415 Total $ 8,797,884 $ 4,135,044 $ 883,687 $ 37,004 $ 13,853,619 |
Schedule of Nonaccrual Loans and Loans Past Due 90 or More Days And Still on Accrual Status | The tables below represent the amortized cost of nonaccrual loans, as well as loans past due 90 or more days and still on accrual status, by loan segment and broken out by loans with a recorded ACL and those without a recorded ACL, at June 30, 2024 and December 31, 2023. June 30, 2024 Nonaccrual with No ACL Nonaccrual with an ACL Total Nonaccrual (1) Accruing Loans Past Due 90 Days or More (Dollars in thousands) CRE loans $ 21,801 $ 5,491 $ 27,292 $ — C&I loans 20,799 12,657 33,456 128 Residential mortgage loans 2,977 3,229 6,206 — Consumer and other loans — 49 49 145 Total $ 45,577 $ 21,426 $ 67,003 $ 273 December 31, 2023 Nonaccrual with No ACL Nonaccrual with an ACL Total Nonaccrual (1) Accruing Loans Past Due 90 Days or More (Dollars in thousands) CRE loans $ 26,724 $ 7,208 $ 33,932 $ — C&I loans 2,447 2,566 5,013 184 Residential mortgage loans 3,002 2,914 5,916 — Consumer and other loans — 343 343 77 Total $ 32,173 $ 13,031 $ 45,204 $ 261 __________________________________ (1) |
Amortized Cost Basis of Collateral-Dependent Loans | The following table presents the amortized cost of collateral-dependent loans at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Real Estate Collateral Other Collateral Total Real Estate Collateral Other Collateral Total (Dollars in thousands) CRE loans $ 24,568 $ — $ 24,568 $ 29,803 $ — $ 29,803 C&I loans 1,243 23,445 24,688 2,447 1,708 4,155 Residential mortgage loans 2,977 — 2,977 3,002 — 3,002 Total $ 28,788 $ 23,445 $ 52,233 $ 35,252 $ 1,708 $ 36,960 |
Interest income reversal, nonaccrual, by loan segment | The following table presents interest income reversals, due to loans being placed on nonaccrual status, by loan segment for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) CRE loans $ 61 $ 214 $ 252 $ 665 C&I loans 1,125 368 1,713 886 Residential mortgage loans 1 18 7 32 Total $ 1,187 $ 600 $ 1,972 $ 1,583 |
Aging of Past Due Loans | The following table presents the amortized cost of past due loans, including nonaccrual loans past due 30 or more days, by the number of days past due at June 30, 2024 and December 31, 2023, by loan segment: June 30, 2024 December 31, 2023 30-59 Days 60-89 Days 90 Days or More Total 30-59 Days 60-89 Days 90 Days or More Total (Dollars in thousands) CRE loans $ 8,074 $ 523 $ 7,526 $ 16,123 $ 1,999 $ 2,976 $ 10,197 $ 15,172 C&I loans 2,679 1,448 12,465 16,592 934 533 1,717 3,184 Residential mortgage loans 1,243 812 2,485 4,540 1,534 — 2,339 3,873 Consumer and other loans 247 28 144 419 214 48 77 339 Total Past Due $ 12,243 $ 2,811 $ 22,620 $ 37,674 $ 4,681 $ 3,557 $ 14,330 $ 22,568 |
Financing Receivable Credit Quality Indicators | The following table presents the amortized cost basis of loans receivable by segment, risk rating, and year of origination, renewal, or major modification at June 30, 2024 and December 31, 2023. June 30, 2024 Term Loan by Year Revolving Loans Total 2024 2023 2022 2021 2020 Prior (Dollars in thousands) CRE loans Pass $ 393,920 $ 561,786 $ 2,374,638 $ 1,965,556 $ 1,161,504 $ 1,954,773 $ 101,125 $ 8,513,302 Special mention — 19,891 — 2,055 2,923 9,533 — 34,402 Substandard — 970 618 41,977 33,880 54,366 — 131,811 Subtotal $ 393,920 $ 582,647 $ 2,375,256 $ 2,009,588 $ 1,198,307 $ 2,018,672 $ 101,125 $ 8,679,515 Year-to-date gross charge offs $ — $ — $ 166 $ — $ 101 $ 291 $ — $ 558 C&I loans Pass $ 733,122 $ 655,007 $ 971,776 $ 480,021 $ 146,554 $ 108,845 $ 483,881 $ 3,579,206 Special mention — 51,792 20,292 42,496 113 14,516 40,556 169,765 Substandard 10,157 7,690 66,498 3,265 — 1,358 16,345 105,313 Subtotal $ 743,279 $ 714,489 $ 1,058,566 $ 525,782 $ 146,667 $ 124,719 $ 540,782 $ 3,854,284 Year-to-date gross charge offs $ — $ 265 $ 10,213 $ 55 $ — $ 58 $ — $ 10,591 Residential mortgage loans Pass $ 149,265 $ 87,960 $ 357,115 $ 252,284 $ 1,338 $ 142,177 $ — $ 990,139 Special mention — — — — — — — — Substandard — — — 742 1,836 3,884 — 6,462 Subtotal $ 149,265 $ 87,960 $ 357,115 $ 253,026 $ 3,174 $ 146,061 $ — $ 996,601 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other loans Pass $ 6,664 $ 709 $ 414 $ 221 $ 1,503 $ 8,872 $ 18,170 $ 36,553 Special mention — — — — — — — — Substandard — — — — — 49 — 49 Subtotal $ 6,664 $ 709 $ 414 $ 221 $ 1,503 $ 8,921 $ 18,170 $ 36,602 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ 109 $ 109 Total loans Pass $ 1,282,971 $ 1,305,462 $ 3,703,943 $ 2,698,082 $ 1,310,899 $ 2,214,667 $ 603,176 $ 13,119,200 Special mention — 71,683 20,292 44,551 3,036 24,049 40,556 204,167 Substandard 10,157 8,660 67,116 45,984 35,716 59,657 16,345 243,635 Total $ 1,293,128 $ 1,385,805 $ 3,791,351 $ 2,788,617 $ 1,349,651 $ 2,298,373 $ 660,077 $ 13,567,002 Total year-to-date gross charge offs $ — $ 265 $ 10,379 $ 55 $ 101 $ 349 $ 109 $ 11,258 December 31, 2023 Term Loan by Year Revolving Loans Total 2023 2022 2021 2020 2019 Prior (Dollars in thousands) CRE loans Pass $ 623,058 $ 2,429,146 $ 2,045,863 $ 1,239,654 $ 996,483 $ 1,297,295 $ 79,426 $ 8,710,925 Special mention — 2,001 15,452 2,518 5,963 5,196 — 31,130 Substandard — 1,549 7,300 2,711 2,083 42,186 — 55,829 Subtotal $ 623,058 $ 2,432,696 $ 2,068,615 $ 1,244,883 $ 1,004,529 $ 1,344,677 $ 79,426 $ 8,797,884 Year-to-date gross charge offs $ 103 $ 315 $ — $ 233 $ 355 $ 1,941 $ — $ 2,947 C&I loans Pass $ 1,107,219 $ 1,208,795 $ 683,821 $ 203,142 $ 162,815 $ 61,019 $ 479,266 $ 3,906,077 Special mention 9,743 23,413 31,388 8,597 14,614 — 60,107 147,862 Substandard 7,158 53,213 8,480 8,637 290 2,358 969 81,105 Subtotal $ 1,124,120 $ 1,285,421 $ 723,689 $ 220,376 $ 177,719 $ 63,377 $ 540,342 $ 4,135,044 Year-to-date gross charge offs $ 5,011 $ 12,323 $ 16,020 $ 128 $ 182 $ 539 $ — $ 34,203 Residential mortgage loans Pass $ 93,982 $ 365,252 $ 263,977 $ 1,356 $ 29,063 $ 123,885 $ — $ 877,515 Special mention — — — — — — — — Substandard — — 314 1,836 957 3,065 — 6,172 Subtotal $ 93,982 $ 365,252 $ 264,291 $ 3,192 $ 30,020 $ 126,950 $ — $ 883,687 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer and other loans Pass $ 3,985 $ 944 $ 278 $ 2,068 $ 371 $ 8,221 $ 20,794 $ 36,661 Special mention — — — — — — — — Substandard — — — — — 343 — 343 Subtotal $ 3,985 $ 944 $ 278 $ 2,068 $ 371 $ 8,564 $ 20,794 $ 37,004 Year-to-date gross charge offs $ — $ — $ — $ — $ — $ — $ 370 $ 370 Total loans Pass $ 1,828,244 $ 4,004,137 $ 2,993,939 $ 1,446,220 $ 1,188,732 $ 1,490,420 $ 579,486 $ 13,531,178 Special mention 9,743 25,414 46,840 11,115 20,577 5,196 60,107 178,992 Substandard 7,158 54,762 16,094 13,184 3,330 47,952 969 143,449 Total $ 1,845,145 $ 4,084,313 $ 3,056,873 $ 1,470,519 $ 1,212,639 $ 1,543,568 $ 640,562 $ 13,853,619 Total year-to-date gross charge offs $ 5,114 $ 12,638 $ 16,020 $ 361 $ 537 $ 2,480 $ 370 $ 37,520 For the three and six months ended June 30, 2024 and the twelve months ended December 31, 2023, there were no revolving loans converted to term loans. |
Loans Sold From Loans Held For Investment | The breakdown of loans by segment that were reclassified from held for investment to held for sale for the three and six months ended June 30, 2024 and 2023, is presented in the following table: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Transfer of loans held for investment to held for sale (Dollars in thousands) CRE loans $ 26,755 $ 13,168 $ 26,755 $ 66,776 C&I loans 54,375 61,608 54,375 170,483 Total $ 81,130 $ 74,776 $ 81,130 $ 237,259 |
Summary of Loans Modified | A summary of loans modified to borrowers experiencing financial difficulty for the period presented, disaggregated by loan class and type of modification, is shown in the tables below. Three Months Ended June 30, 2024 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ — $ — $ — $ — Interest rate reduction — — — — — Payment delay — — — — — Term extension — 4,848 — — 4,848 Total Loan Modifications $ — $ 4,848 $ — $ — $ 4,848 % of Loan Class — % 0.13 % — % — % 0.04 % Six Months Ended June 30, 2024 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ 9,946 $ — $ — $ 9,946 Interest rate reduction — — — — — Payment delay — — — — — Term extension — 4,848 — — 4,848 Total Loan Modifications $ — $ 14,794 $ — $ — $ 14,794 % of Loan Class — % 0.38 % — % — % 0.11 % Three Months Ended June 30, 2023 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ — $ — $ — $ — Interest rate reduction — — — — — Payment delay — — — — — Term extension — 25,964 — — 25,964 Total Loan Modifications $ — $ 25,964 $ — $ — $ 25,964 % of Loan Class — % 0.54 % — % — % 0.17 % Six Months Ended June 30, 2023 CRE Loans C&I Loans Residential Mortgage Loans Consumer and Other Loans Total (Dollars in thousands) Principal forgiveness $ — $ — $ — $ — $ — Interest rate reduction — — — — — Payment delay — — — — — Term extension — 25,964 — — 25,964 Total Loan Modifications $ — $ 25,964 $ — $ — $ 25,964 % of Loan Class — % 0.54 % — % — % 0.17 % The following tables describe the financial effect of the loan modifications made to borrowers experiencing financial difficulty for the periods presented: Financial Effect Modification & Loan Types Description of Financial Effect Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Principal forgiveness C&I loans Forgiveness of principal totaling: $— million $4.4 million Term extension C&I loans Extended term by a weighted average of: 0.3 years 0.3 years Financial Effect Modification & Loan Types Description of Financial Effect Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Term extension C&I loans Extended term by a weighted average of: 0.3 years 0.3 years |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Summary of Net Lease Cost and Other Information | The table below summarizes the Company’s net operating lease cost: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Operating lease cost $ 3,611 $ 3,825 $ 7,217 $ 7,666 Variable lease cost 867 820 1,675 1,603 Sublease income (64) (50) (103) (92) Net lease cost $ 4,414 $ 4,595 $ 8,789 $ 9,177 The table below summarizes other information related to the Company’s operating leases: At or for the Six Months Ended 2024 2023 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases $ 7,916 $ 8,013 ROU assets obtained in exchange for lease liabilities, net $ 2,058 $ 6,113 Weighted-average remaining lease term - operating leases 3.8 years 4.4 years Weighted-average discount rate - operating leases 2.91 % 2.68 % |
Summary of Maturity of Remaining Lease Liabilities | The table below summarizes the maturity of remaining lease liabilities: June 30, 2024 (Dollars in thousands) 2024 $ 7,697 2025 14,334 2026 13,647 2027 8,123 2028 3,320 2029 and thereafter 2,811 Total lease payments 49,932 Less: imputed interest 2,828 Total lease obligations $ 47,104 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deposits [Abstract] | |
Schedule of Deposits | The following is a breakdown of the Company’s deposits at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Balance Percentage (%) Balance Percentage (%) (Dollars in thousands) Noninterest bearing demand deposits $ 3,671,192 25 % $ 3,914,967 27 % Money market and NOW accounts 4,118,651 28 % 4,169,543 28 % Savings deposits 789,209 5 % 702,486 5 % Time deposits 6,132,419 42 % 5,966,757 40 % Total deposits $ 14,711,471 100 % $ 14,753,753 100 % |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowing Lines | The tables below summarize the Company’s borrowing lines at June 30, 2024 and December 31, 2023: June 30, 2024 Total Borrowings Outstanding Available Borrowing Capacity Amount Weighted Average Rate (Dollars in thousands) FHLB $ 4,290,239 $ 100,000 5.61 % $ 4,190,239 FRB Discount Window 513,454 70,000 5.50 % 443,454 Unsecured Federal Funds lines 304,791 — — % 304,791 Total $ 5,108,484 $ 170,000 5.56 % $ 4,938,484 December 31, 2023 Total Borrowings Outstanding Available Borrowing Capacity Amount Weighted Average Rate (Dollars in thousands) FHLB $ 4,167,168 $ 100,000 5.73 % $ 4,067,168 FRB Discount Window 630,369 — — % 630,369 BTFP 1,707,909 1,695,726 4.47 % 12,183 Unsecured Federal Funds lines 312,315 — — % 312,315 Total $ 6,817,761 $ 1,795,726 4.54 % $ 5,022,035 |
Subordinated Debentures and C_2
Subordinated Debentures and Convertible Notes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Subordinated Borrowings [Abstract] | |
Convertible Debt | The carrying value of the convertible notes at June 30, 2024 and December 31, 2023, was $444 thousand. The capitalized issuance costs were fully amortized at both June 30, 2024 and December 31, 2023. Interest expense on the convertible notes for the three and six months ended June 30, 2024, totaled $2 thousand and $4 thousand, respectively. Interest expense on the convertible notes for the three and six months ended June 30, 2023, totaled $598 thousand and $1.9 million, respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Fair Value | The tables below present the fair value of the Company’s derivative financial instruments at June 30, 2024 and December 31, 2023. The Company’s derivative assets and derivative liabilities are located within “Other assets” and “Other liabilities,” respectively, on the Company’s Consolidated Statements of Financial Condition. June 30, 2024 Notional Fair Value (1) Other Assets Other Liabilities (Dollars in thousands) Derivatives designated as cash flow hedges Interest rate swaps $ 725,000 $ — $ — Interest rate collars 500,000 — (4,306) Forward interest rate swaps 700,000 — (7,478) Total $ 1,925,000 $ — $ (11,784) Derivatives not designated as hedges Interest rate contracts with correspondent banks $ 1,048,236 $ 59,036 $ (122) Interest rate contracts with customers 1,048,236 122 (60,531) Foreign exchange contracts with correspondent banks 12,159 484 — Foreign exchange contracts with customers 224 8 — Risk participation agreement 148,431 — (16) Mortgage banking derivatives 3,952 11 (20) Total $ 2,261,238 $ 59,661 $ (60,689) __________________________________ (1) The fair values of centrally-cleared derivative contracts are presented net of settled-to-market margin. December 31, 2023 Notional Fair Value (1) Other Assets Other Liabilities (Dollars in thousands) Derivatives designated as cash flow hedges Interest rate swaps $ 725,000 $ — $ — Interest rate collars 250,000 — 1,149 Forward interest rate swaps 1,000,000 10,812 — Forward interest rate collars 250,000 148 — Total $ 2,225,000 $ 10,960 $ 1,149 Derivatives not designated as hedges Interest rate contracts with correspondent banks $ 1,096,292 $ 53,185 $ 1,117 Interest rate contracts with customers 1,096,292 1,117 54,505 Foreign exchange contracts with correspondent banks 10,739 4 202 Foreign exchange contracts with customers 1,744 57 — Risk participation agreement 130,365 — 28 Mortgage banking derivatives 1,377 7 17 Total $ 2,336,809 $ 54,370 $ 55,869 __________________________________ (1) The fair values of centrally-cleared derivative contracts are presented net of settled-to-market margin. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | commitments described below at the dates indicated below: June 30, 2024 December 31, 2023 (Dollars in thousands) Commitments to extend credit $ 2,060,656 $ 2,274,239 Standby letters of credit 137,487 132,132 Other letters of credit 24,925 51,983 Commitments to fund investments in affordable housing partnerships 18,345 21,017 The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit, commercial letters of credit, and commitments to fund investments in affordable housing partnerships. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the Consolidated Statements of Financial Condition. |
Goodwill, Intangible Assets, _2
Goodwill, Intangible Assets, and Servicing Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table provides information regarding the core deposit intangibles at June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Core Deposit Intangibles Related To: Amortization Period Gross Accumulated Carrying Amount Accumulated Carrying Amount (Dollars in thousands) Wilshire Bancorp acquisition 10 years $ 18,138 $ (15,005) $ 3,133 $ (14,203) $ 3,935 |
Schedule of Servicing Assets | The changes in servicing assets for the three and six months ended June 30, 2024 and 2023, were as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Balance at beginning of period $ 8,869 $ 11,628 $ 9,631 $ 11,628 Additions through originations of servicing assets 742 884 749 1,849 Amortization (627) (980) (1,396) (1,945) Balance at end of period $ 8,984 $ 11,532 $ 8,984 $ 11,532 |
Summary of Fair Value Inputs | The inputs used in evaluating servicing assets for impairment at June 30, 2024 and December 31, 2023, are presented below. June 30, 2024 December 31, 2023 SBA Servicing Assets: Weighted-average discount rate 10.03% 11.12% Constant prepayment rate 12.25% 12.17% Mortgage Servicing Assets: Weighted-average discount rate 11.13% 11.00% Constant prepayment rate 5.51% 9.52% |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Value Measurements at the End of June 30, 2024 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Investment securities AFS: U.S. Government agency and U.S. Government sponsored enterprises: Agency securities $ 3,896 $ — $ 3,896 $ — Collateralized mortgage obligations 705,576 — 705,576 — Mortgage-backed securities: Residential 393,338 — 393,338 — Commercial 432,926 — 432,926 — Asset-backed securities 139,826 — 139,826 — Corporate securities 19,590 — 19,590 — Municipal securities 219,639 — 218,824 815 Equity investments with readily determinable fair value 4,298 4,298 — — Interest rate contracts 59,158 — 59,158 — Mortgage banking derivatives 11 — 11 — Other derivatives 492 — 492 — Liabilities: Interest rate contracts 60,653 — 60,653 — Mortgage banking derivatives 20 — 20 — Other derivatives 11,800 — 11,784 16 Fair Value Measurements at the End of December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Investment securities AFS: U.S. Treasury securities $ 103,677 $ 103,677 $ — $ — U.S. Government agency and U.S. Government sponsored enterprises: Agency securities 3,900 — 3,900 — Collateralized mortgage obligations 747,719 — 747,719 — Mortgage-backed securities: Residential 420,298 — 420,298 — Commercial 391,888 — 391,888 — Asset-backed securities 149,670 — 149,670 — Corporate securities 19,434 — 19,434 — Municipal securities 308,473 — 307,615 858 Equity investments with readily determinable fair value 4,363 4,363 — — Interest rate contracts 54,302 — 54,302 — Mortgage banking derivatives 7 — 7 — Other derivatives 11,021 — 11,021 — Liabilities: Interest rate contracts 55,622 — 55,622 — Mortgage banking derivatives 17 — 17 — Other derivatives 1,379 — 1,351 28 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation and income statement classification of gains (losses) for the municipal security and risk participation agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Municipal securities: Beginning Balance $ 819 $ 982 $ 858 $ 943 Change in fair value included in other comprehensive income (4) (52) (43) (13) Ending Balance $ 815 $ 930 $ 815 $ 930 Risk participation agreements: Beginning Balance $ 13 $ 35 $ 28 $ 32 Change in fair value included in income 3 (7) (12) (4) Ending Balance $ 16 $ 28 $ 16 $ 28 |
Assets Measured at Fair Value on a Non-recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at the End of June 30, 2024 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Collateral-dependent loans receivable at fair value: CRE loans $ 4,162 $ — $ — $ 4,162 C&I loans 3,924 — — 3,924 Loans held for sale, net 26,156 — 26,156 — Fair Value Measurements at the End of December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Assets: Collateral-dependent loans receivable at fair value: CRE loans $ 3,475 $ — $ — $ 3,475 C&I loans 2,701 — — 2,701 Loans held for sale, net 2,287 — 2,287 — OREO 63 — — 63 For assets measured at fair value on a non-recurring basis, the total net losses, which include charge offs, recoveries, recorded ACL, valuations, and recognized gains and losses on sales are summarized below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Assets: Collateral-dependent loans receivable at fair value: CRE loans $ (323) $ (642) $ (360) $ (762) C&I loans (2,968) (11,472) (2,968) (11,861) Loans held for sale, net (2,854) — (2,854) — OREO — — — (271) |
Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments, not previously presented, at June 30, 2024 and December 31, 2023, were as follows: June 30, 2024 Carrying Amount Estimated Fair Value Fair Value Measurement (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 654,044 $ 654,044 Level 1 Investment securities HTM 258,068 237,621 Level 2 Equity investments without readily determinable fair values 39,980 39,980 Level 2 Loans held for sale 68,316 71,014 Level 2 Loans receivable, net 13,410,983 13,000,721 Level 3 Accrued interest receivable 57,645 57,645 Level 2/3 Servicing assets, net 8,984 15,424 Level 3 Customers’ liabilities on acceptances 854 854 Level 2 Financial Liabilities: Noninterest bearing deposits $ 3,671,192 $ 3,671,192 Level 2 Money market, interest bearing demand and savings deposits 4,907,860 4,907,860 Level 2 Time deposits 6,132,419 6,133,189 Level 2 FHLB and FRB borrowings 170,000 170,257 Level 2 Convertible notes 444 423 Level 1 Subordinated debentures 108,474 102,980 Level 3 Accrued interest payable 86,779 86,779 Level 2 Acceptances outstanding 854 854 Level 2 December 31, 2023 Carrying Amount Estimated Fair Value Fair Value Measurement (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 1,928,967 $ 1,928,967 Level 1 Investment securities HTM 263,912 250,518 Level 2 Equity investments without readily determinable fair values 39,387 39,387 Level 2 Loans held for sale 3,408 3,419 Level 2 Loans receivable, net 13,694,925 13,270,444 Level 3 Accrued interest receivable 61,720 61,720 Level 2/3 Servicing assets, net 9,631 14,853 Level 3 Customers’ liabilities on acceptances 471 471 Level 2 Financial Liabilities: Noninterest bearing deposits $ 3,914,967 $ 3,914,967 Level 2 Money market, interest bearing demand and savings deposits 4,872,029 4,872,029 Level 2 Time deposits 5,966,757 5,974,125 Level 2 FHLB and FRB borrowings 1,795,726 1,795,820 Level 2 Convertible notes, net 444 451 Level 1 Subordinated debentures 107,825 99,358 Level 3 Accrued interest payable 168,174 168,174 Level 2 Acceptances outstanding 471 471 Level 2 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes to accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Balance at beginning of period $ (222,278) $ (214,257) $ (204,738) $ (230,857) Unrealized net (losses) gains on securities available for sale (9,381) (31,071) (23,115) 144 Unrealized net (losses) gains on interest rate contracts used for cash flow hedges (2,750) 13,653 (10,936) 7,715 Reclassification adjustments for net gains realized in net income (3,241) (3,322) (6,172) (5,060) Tax effect 4,520 6,113 11,831 (826) Other comprehensive (loss) income, net of tax (10,852) (14,627) (28,392) 1,973 Balance at end of period $ (233,130) $ (228,884) $ (233,130) $ (228,884) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity Under the Plan | The following is a summary of the Company’s stock option activity under the 2019 Plan for the six months ended June 30, 2024: Number of Shares Weighted-Average Exercise Price Per Share Weighted-Average Aggregate Intrinsic Value (Dollars in thousands) Outstanding - January 1, 2024 629,367 $ 16.61 Granted — — Exercised — — Expired (198,136) 15.79 Forfeited — — Outstanding - June 30, 2024 431,231 $ 16.99 2.08 $ — Options exercisable - June 30, 2024 431,231 $ 16.99 2.08 $ — |
Summary of Restricted Stock and Performance Unit Activity Under the Plan | The following is a summary of the Company’s restricted stock and performance unit activity under the 2019 Plan for the six months ended June 30, 2024: Number of Shares Weighted-Average Grant Date Fair Value Outstanding (unvested) - January 1, 2024 2,043,621 $ 12.09 Granted 34,634 15.49 Vested (916,262) 12.58 Forfeited (109,791) 13.82 Outstanding (unvested) - June 30, 2024 1,052,202 $ 11.60 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Banking Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and the Bank’s levels and ratios are presented in the tables below for the dates indicated and include the effects of the Company’s election to utilize the five-year transition described above: Actual Ratio Required for Capital Adequacy Purposes Ratio Required To Be Well-Capitalized Ratio Required for Minimum Capital Adequacy With Capital Conservation Buffer June 30, 2024 Amount Ratio (Dollars in thousands) Common equity Tier 1 capital Company $ 1,882,623 12.70 % 4.50 % N/A 7.00 % Bank $ 1,961,022 13.23 % 4.50 % 6.50 % 7.00 % Tier 1 capital Company $ 1,987,196 13.40 % 6.00 % N/A 8.50 % Bank $ 1,961,022 13.23 % 6.00 % 8.00 % 8.50 % Total capital Company $ 2,137,513 14.42 % 8.00 % N/A 10.50 % Bank $ 2,111,339 14.25 % 8.00 % 10.00 % 10.50 % Leverage capital Company $ 1,987,196 11.61 % 4.00 % N/A N/A Bank $ 1,961,022 11.46 % 4.00 % 5.00 % N/A Actual Ratio Required for Capital Adequacy Purposes Ratio Required To Be Well-Capitalized Ratio Required for Minimum Capital Adequacy With Capital Conservation Buffer December 31, 2023 Amount Ratio (Dollars in thousands) Common equity Tier 1 capital Company $ 1,869,774 12.28 % 4.50 % N/A 7.00 % Bank $ 1,940,303 12.75 % 4.50 % 6.50 % 7.00 % Tier 1 capital Company $ 1,973,698 12.96 % 6.00 % N/A 8.50 % Bank $ 1,940,303 12.75 % 6.00 % 8.00 % 8.50 % Total capital Company $ 2,120,157 13.92 % 8.00 % N/A 10.50 % Bank $ 2,086,762 13.71 % 8.00 % 10.00 % 10.50 % Leverage capital Company $ 1,973,698 10.11 % 4.00 % N/A N/A Bank $ 1,940,303 9.94 % 4.00 % 5.00 % N/A |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Service charges on deposit accounts and wire transfers are summarized below: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Noninterest bearing deposit account income: Monthly service charges $ 244 $ 241 $ 488 $ 486 Customer analysis charges 1,526 1,259 2,949 2,385 NSF charges 805 711 1,619 1,446 Other service charges 75 89 154 180 Total noninterest bearing deposit account income 2,650 2,300 5,210 4,497 Interest bearing deposit account income: Monthly service charges 31 25 58 49 Total service fees on deposit accounts $ 2,681 $ 2,325 $ 5,268 $ 4,546 Wire transfer fee income: Wire transfer fees $ 495 $ 460 $ 758 $ 867 Foreign exchange fees 479 390 1,028 756 Total wire transfer and foreign currency fees $ 974 $ 850 $ 1,786 $ 1,623 |
Hope Bancorp, Inc. (Details)
Hope Bancorp, Inc. (Details) | Jun. 30, 2024 branch office | Apr. 29, 2024 shares | Apr. 26, 2024 $ / shares | Mar. 28, 2024 branch |
Business Acquisition [Line Items] | ||||
Entity number of Branches | 48 | |||
Number of loan production offices | office | 9 | |||
Territorial | ||||
Business Acquisition [Line Items] | ||||
Merger agreement, fixed exchange ratio of shares | shares | 0.8048 | |||
Merger agreement, share value | $ / shares | $ 8.82 | |||
PromiseOne Bank | ||||
Business Acquisition [Line Items] | ||||
Entity number of Branches | 2 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jan. 01, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,167,978 | $ 1,150,547 | |
ASU 2022-02 | Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 287 |
Earnings Per Share (Details)
Earnings Per Share (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 07, 2018 | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Jun. 06, 2018 USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Convertible notes, net | $ | $ 444,000 | $ 444,000 | ||||
Net Income (Numerator) | ||||||
Basic EPS - common stock | $ | 25,270,000 | $ 38,022,000 | 51,134,000 | $ 77,143,000 | ||
Diluted EPS - common stock | $ | $ 25,270,000 | $ 38,022,000 | $ 51,134,000 | $ 77,143,000 | ||
Weighted-Average Shares (Denominator) | ||||||
Basic EPS - common stock (in shares) | shares | 120,664,472 | 119,953,174 | 120,425,886 | 119,753,321 | ||
Effect of dilutive securities: | ||||||
Stock options, restricted stock, and ESPP shares (in shares) | shares | 274,957 | 176,185 | 538,263 | 426,122 | ||
Diluted EPS - common stock (shares) | shares | 120,939,429 | 120,129,359 | 120,964,149 | 120,179,443 | ||
Earnings Per Share | ||||||
Basic EPS - common stock (in dollars per share) | $ / shares | $ 0.21 | $ 0.32 | $ 0.42 | $ 0.64 | ||
Diluted EPS - common stock (in dollars per share) | $ / shares | $ 0.21 | $ 0.32 | $ 0.42 | $ 0.64 | ||
Convertible Notes | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Aggregate principal amount issued | $ | $ 217,500,000 | $ 217,500,000 | $ 217,500,000 | |||
Initial conversion rate | 0.0450760 | 0.0450760 | ||||
Stock options and restricted share awards | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||||
Antidilutive shares of common stock | shares | 527,936 | 2,626,620 | 517,628 | 1,290,587 |
Equity Investments - Narrative
Equity Investments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Net Investment Income [Line Items] | |||||
Equity investments with readily determinable fair value | $ 44,278 | $ 44,278 | $ 43,750 | ||
Realized gain (loss) recorded on equity investments sold | 0 | $ 0 | 0 | $ 0 | |
Equity investments without readily determinable fair values | 40,000 | 40,000 | 39,387 | ||
Equity investments without readily determinable fair values, impairment | 0 | $ 0 | 0 | $ 0 | |
Mutual funds | |||||
Net Investment Income [Line Items] | |||||
Equity investments with readily determinable fair value | 4,300 | 4,300 | 4,400 | ||
Correspondent bank stock | |||||
Net Investment Income [Line Items] | |||||
Equity investments without readily determinable fair values | 370 | 370 | 370 | ||
CDFI investments | |||||
Net Investment Income [Line Items] | |||||
Equity investments without readily determinable fair values | 1,000 | 1,000 | 1,000 | ||
CRA investments | |||||
Net Investment Income [Line Items] | |||||
Equity investments without readily determinable fair values | $ 38,600 | $ 38,600 | $ 38,000 |
Equity Investments - Change in
Equity Investments - Change in Fair Value of Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net change in fair value recorded during the period on equity investments with readily determinable fair value | $ (19) | $ (69) | $ (65) | $ 0 |
Less: Net change in fair value recorded on equity investments sold during the period | 0 | 0 | 0 | 0 |
Net change in fair value on equity investments with readily determinable fair values held at the end of the period | $ (19) | $ (69) | $ (65) | $ 0 |
Securities Available for Sale -
Securities Available for Sale - Summary of Securities Available for Sale (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | $ 2,223,080,000 | $ 2,223,080,000 | $ 2,429,808,000 | |||
Gross Unrealized Gains | 1,606,000 | 1,606,000 | 6,199,000 | |||
Gross Unrealized Losses | (309,895,000) | (309,895,000) | (290,948,000) | |||
Fair Value | 1,914,791,000 | 1,914,791,000 | 2,145,059,000 | |||
Amortized Cost | 258,068,000 | 258,068,000 | 263,912,000 | |||
Gross Unrealized Gains | 0 | 0 | 0 | |||
Gross Unrealized Losses | 20,447,000 | 20,447,000 | 13,394,000 | |||
Fair Value | 237,621,000 | 237,621,000 | 250,518,000 | |||
Accrued interest receivable for investment securities available for sale | 8,900,000 | 8,900,000 | 11,000,000 | |||
Unrealized gains on securities available for sale net of taxes | (233,130,000) | (233,130,000) | (204,738,000) | |||
Net gains on sales of securities available for sale | 425,000 | $ 0 | 425,000 | $ 0 | ||
Available-for-sale Securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Unrealized gains on securities available for sale net of taxes | (216,800,000) | (216,800,000) | (200,200,000) | |||
US Treasury Notes Securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 0 | 0 | 103,691,000 | |||
Gross Unrealized Gains | 0 | 0 | 21,000 | |||
Gross Unrealized Losses | 0 | 0 | (35,000) | |||
Fair Value | 0 | 0 | 103,677,000 | |||
Agency Securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 4,000,000 | 4,000,000 | 4,000,000 | |||
Gross Unrealized Gains | 0 | 0 | 0 | |||
Gross Unrealized Losses | (104,000) | (104,000) | (100,000) | |||
Fair Value | 3,896,000 | 3,896,000 | 3,900,000 | |||
Collateralized Mortgage Obligations [Member] | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 854,271,000 | 854,271,000 | 888,631,000 | |||
Gross Unrealized Gains | 341,000 | 341,000 | 367,000 | |||
Gross Unrealized Losses | (149,036,000) | (149,036,000) | (141,279,000) | |||
Fair Value | 705,576,000 | 705,576,000 | 747,719,000 | |||
Mortgage-backed securities: Residential | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 478,806,000 | 478,806,000 | 499,431,000 | |||
Gross Unrealized Gains | 0 | 0 | 0 | |||
Gross Unrealized Losses | (85,468,000) | (85,468,000) | (79,133,000) | |||
Fair Value | 393,338,000 | 393,338,000 | 420,298,000 | |||
Amortized Cost | 146,133,000 | 146,133,000 | 150,369,000 | |||
Gross Unrealized Gains | 0 | 0 | 0 | |||
Gross Unrealized Losses | 11,785,000 | 11,785,000 | 6,663,000 | |||
Fair Value | 134,348,000 | 134,348,000 | 143,706,000 | |||
Mortgage-backed securities: Commercial | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 489,824,000 | 489,824,000 | 445,207,000 | |||
Gross Unrealized Gains | 14,000 | 14,000 | 113,000 | |||
Gross Unrealized Losses | (56,912,000) | (56,912,000) | (53,432,000) | |||
Fair Value | 432,926,000 | 432,926,000 | 391,888,000 | |||
Amortized Cost | 111,935,000 | 111,935,000 | 113,543,000 | |||
Gross Unrealized Gains | 0 | 0 | 0 | |||
Gross Unrealized Losses | 8,662,000 | 8,662,000 | 6,731,000 | |||
Fair Value | 103,273,000 | 103,273,000 | 106,812,000 | |||
Asset-backed Securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 139,300,000 | 139,300,000 | 150,992,000 | |||
Gross Unrealized Gains | 527,000 | 527,000 | 0 | |||
Gross Unrealized Losses | (1,000) | (1,000) | (1,322,000) | |||
Fair Value | 139,826,000 | 139,826,000 | 149,670,000 | |||
Corporate securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 23,278,000 | 23,278,000 | 23,302,000 | |||
Gross Unrealized Gains | 0 | 0 | 0 | |||
Gross Unrealized Losses | (3,688,000) | (3,688,000) | (3,868,000) | |||
Fair Value | 19,590,000 | 19,590,000 | 19,434,000 | |||
Municipal securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Amortized Cost | 233,601,000 | 233,601,000 | 314,554,000 | |||
Gross Unrealized Gains | 724,000 | 724,000 | 5,698,000 | |||
Gross Unrealized Losses | (14,686,000) | (14,686,000) | (11,779,000) | |||
Fair Value | $ 219,639,000 | $ 219,639,000 | $ 308,473,000 | |||
Non-US Government and Agency Securities | Credit concentration risk | Stockholders' equity | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Maximum exposure to any single issuer | 10% | 10% |
Investment Securities - Sales a
Investment Securities - Sales and Calls (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales and calls of investment securities AFS | $ 92,587 | $ 0 | $ 92,587 | $ 0 |
Gains from sales of investment securities AFS | 1,526 | 0 | 1,526 | 0 |
Losses from sales of investment securities AFS | (1,101) | 0 | (1,101) | 0 |
Gains from calls of investment securities AFS | 0 | 0 | 0 | 0 |
Losses from calls of investment securities AFS | 0 | 0 | 0 | 0 |
Net gain on sales and calls of investment securities AFS | $ 425 | $ 0 | $ 425 | $ 0 |
Securities Available for Sale_2
Securities Available for Sale - Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | ||||
Taxable | $ 15,966 | $ 14,466 | $ 32,948 | $ 28,512 |
Nontaxable | 863 | 1,068 | 1,930 | 2,147 |
Total | $ 16,829 | $ 15,534 | $ 34,878 | $ 30,659 |
Securities Available for Sale_3
Securities Available for Sale - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Due within one year | $ 0 | |
Due after one year through five years | 153,280 | |
Due after five years through ten years | 120,690 | |
Due after ten years | 1,949,110 | |
Amortized Cost | 2,223,080 | $ 2,429,808 |
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due within one year | 0 | |
Due after one year through five years | 144,642 | |
Due after five years through ten years | 110,467 | |
Due after ten years | 1,659,682 | |
Total | 1,914,791 | 2,145,059 |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity [Abstract] | ||
Due within one year | 0 | |
Due after one year through five years | 25,003 | |
Due after five years through ten years | 8,724 | |
Due after ten years | 224,341 | |
Total | 258,068 | |
Debt Securities, Held-to-Maturity, Fair Value, Maturity [Abstract] | ||
Due within one year | 0 | |
Due after one year through five years | 24,161 | |
Due after five years through ten years | 8,249 | |
Due after ten years | 205,211 | |
Total | 237,621 | |
Securities, carrying value | $ 225,300 | $ 1,700,000 |
Securities Available for Sale_4
Securities Available for Sale - Aggregate Unrealized Losses and Fair Value (Details) $ in Thousands | Jun. 30, 2024 USD ($) security | Dec. 31, 2023 USD ($) security |
Number of Securities | ||
Less than 12 months | security | 46 | 20 |
12 months or longer | security | 286 | 301 |
Total | security | 332 | 321 |
Fair Value | ||
Less than 12 months | $ 199,559 | $ 115,815 |
12 months or longer | 1,530,800 | 1,738,084 |
Total | 1,730,359 | 1,853,899 |
Gross Unrealized Losses | ||
Less than 12 months | (4,482) | (2,770) |
12 months or longer | (305,413) | (288,178) |
Total | $ (309,895) | $ (290,948) |
Collateralized mortgage obligations | ||
Number of Securities | ||
Less than 12 months | security | 1 | 3 |
12 months or longer | security | 115 | 115 |
Total | security | 116 | 118 |
Fair Value | ||
Less than 12 months | $ 6,191 | $ 19,800 |
12 months or longer | 680,888 | 717,662 |
Total | 687,079 | 737,462 |
Gross Unrealized Losses | ||
Less than 12 months | (22) | (378) |
12 months or longer | (149,014) | (140,901) |
Total | $ (149,036) | $ (141,279) |
Mortgage-backed securities: Residential | ||
Number of Securities | ||
Less than 12 months | security | 1 | 0 |
12 months or longer | security | 64 | 65 |
Total | security | 65 | 65 |
Fair Value | ||
Less than 12 months | $ 2,413 | $ 0 |
12 months or longer | 390,925 | 420,298 |
Total | 393,338 | 420,298 |
Gross Unrealized Losses | ||
Less than 12 months | (160) | 0 |
12 months or longer | (85,308) | (79,133) |
Total | $ (85,468) | $ (79,133) |
Mortgage-backed securities: Commercial | ||
Number of Securities | ||
Less than 12 months | security | 14 | 6 |
12 months or longer | security | 56 | 53 |
Total | security | 70 | 59 |
Fair Value | ||
Less than 12 months | $ 96,931 | $ 53,255 |
12 months or longer | 334,578 | 331,450 |
Total | 431,509 | 384,705 |
Gross Unrealized Losses | ||
Less than 12 months | (2,587) | (2,129) |
12 months or longer | (54,325) | (51,303) |
Total | $ (56,912) | $ (53,432) |
Corporate securities | ||
Number of Securities | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 6 | 6 |
Total | security | 6 | 6 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 19,590 | 19,434 |
Total | 19,590 | 19,434 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (3,688) | (3,868) |
Total | $ (3,688) | $ (3,868) |
Municipal securities | ||
Number of Securities | ||
Less than 12 months | security | 30 | 11 |
12 months or longer | security | 43 | 42 |
Total | security | 73 | 53 |
Fair Value | ||
Less than 12 months | $ 94,024 | $ 42,760 |
12 months or longer | 93,374 | 91,707 |
Total | 187,398 | 134,467 |
Gross Unrealized Losses | ||
Less than 12 months | (1,713) | (263) |
12 months or longer | (12,973) | (11,516) |
Total | $ (14,686) | $ (11,779) |
U.S. Government Agency and U.S. Government Sponsored Enterprises | ||
Gross Unrealized Losses | ||
Percentage of portfolio | 82.60% | |
Asset-backed Securities | ||
Number of Securities | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 1 | 18 |
Total | security | 1 | 18 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 7,549 | 149,670 |
Total | 7,549 | 149,670 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (1) | (1,322) |
Total | $ (1) | $ (1,322) |
US Treasury Notes Securities | ||
Number of Securities | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 0 | 1 |
Total | security | 0 | 1 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 0 | 3,963 |
Total | 0 | 3,963 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | 0 | (35) |
Total | $ 0 | $ (35) |
Agency Securities | ||
Number of Securities | ||
Less than 12 months | security | 0 | 0 |
12 months or longer | security | 1 | 1 |
Total | security | 1 | 1 |
Fair Value | ||
Less than 12 months | $ 0 | $ 0 |
12 months or longer | 3,896 | 3,900 |
Total | 3,896 | 3,900 |
Gross Unrealized Losses | ||
Less than 12 months | 0 | 0 |
12 months or longer | (104) | (100) |
Total | $ (104) | $ (100) |
Held to Maturity (Details)
Held to Maturity (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss, Excluding Accrued Interest | $ 0 | $ 0 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses - Schedule of Loans Receivable By Major Category (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2024 USD ($) segment | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans receivable, net of deferred costs and fees | $ 13,567,002 | $ 13,853,619 | ||||
Total | (156,019) | $ (158,758) | (158,694) | $ (172,996) | $ (163,544) | $ (162,359) |
Loans receivable, net of allowance for credit losses | 13,410,983 | 13,694,925 | ||||
Net deferred fees/costs | $ 2,700 | 6,100 | ||||
Number of portfolio segments | segment | 4 | |||||
Increase (Decrease) in Finance Receivables | $ (286,600) | |||||
Increase (decrease) in financing receivable, percentage | (2.10%) | |||||
Threshold period for loans to be placed on nonaccrual status | 90 days | |||||
CRE loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans receivable, net of deferred costs and fees | $ 8,679,515 | 8,797,884 | ||||
Total | (95,643) | (90,823) | (93,940) | (105,321) | (108,835) | (95,884) |
C&I loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans receivable, net of deferred costs and fees | 3,854,284 | 4,135,044 | ||||
Total | (56,014) | (55,465) | (51,291) | (54,894) | (42,790) | (56,872) |
Residential mortgage loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans receivable, net of deferred costs and fees | 996,601 | 883,687 | ||||
Total | (3,909) | (11,942) | (12,838) | (11,983) | (11,253) | (8,920) |
Consumer and other loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans receivable, net of deferred costs and fees | 36,602 | 37,004 | ||||
Total | $ (453) | $ (528) | $ (625) | $ (798) | $ (666) | $ (683) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | $ 158,758 | $ 163,544 | $ 158,694 | $ 162,359 | $ 162,359 |
Provision (credit) for credit/loan losses | 1,700 | 8,900 | 5,300 | 10,600 | |
Loans charged off | (6,538) | (979) | (11,258) | (1,474) | (37,520) |
Recoveries of charge offs | 2,099 | 1,531 | 3,283 | 1,918 | |
Balance, end of period | 156,019 | 172,996 | 156,019 | 172,996 | 158,694 |
Allowance for credit losses: | |||||
Individually evaluated | 3,582 | 3,582 | 2,660 | ||
Collectively evaluated | 152,437 | 152,437 | 156,034 | ||
Total | 156,019 | 172,996 | 156,019 | 172,996 | 158,694 |
Loans outstanding: | |||||
Individually evaluated | 67,003 | 67,003 | 45,204 | ||
Collectively evaluated | 13,499,999 | 13,499,999 | 13,808,415 | ||
Total | 13,567,002 | 13,567,002 | 13,853,619 | ||
Reserve for unfunded loan commitments recorded in other liabilities | 2,500 | 2,500 | 3,800 | ||
Additions to reserves for unfunded loan commitments recorded in credit related expenses | $ (300) | 110 | $ (1,300) | 1,700 | |
Threshold period for loans to be placed on nonaccrual status | 90 days | ||||
Non-modeled loans as percentage of total loan portfolio (less than) | 2% | 2% | |||
Reasonable and supportable period at which point loss assumptions revert back to historical loss information | 2 years | ||||
ASU 2022-02 | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | $ (407) | ||||
Balance, end of period | (407) | ||||
Allowance for credit losses: | |||||
Total | (407) | ||||
Real estate | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | $ 90,823 | 108,835 | 93,940 | 95,884 | 95,884 |
Provision (credit) for credit/loan losses | 5,334 | (3,076) | 1,720 | 9,787 | |
Loans charged off | (520) | (561) | (558) | (561) | (2,947) |
Recoveries of charge offs | 6 | 123 | 541 | 192 | |
Balance, end of period | 95,643 | 105,321 | 95,643 | 105,321 | 93,940 |
Allowance for credit losses: | |||||
Individually evaluated | 333 | 333 | 886 | ||
Collectively evaluated | 95,310 | 95,310 | 93,054 | ||
Total | 95,643 | 105,321 | 95,643 | 105,321 | 93,940 |
Loans outstanding: | |||||
Individually evaluated | 27,292 | 27,292 | 33,932 | ||
Collectively evaluated | 8,652,223 | 8,652,223 | 8,763,952 | ||
Total | 8,679,515 | 8,679,515 | 8,797,884 | ||
Real estate | ASU 2022-02 | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | 19 | ||||
Balance, end of period | 19 | ||||
Allowance for credit losses: | |||||
Total | 19 | ||||
C&I loans | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | 55,465 | 42,790 | 51,291 | 56,872 | 56,872 |
Provision (credit) for credit/loan losses | 4,449 | 11,013 | 12,695 | (2,487) | |
Loans charged off | (5,972) | (298) | (10,591) | (738) | (34,203) |
Recoveries of charge offs | 2,072 | 1,389 | 2,619 | 1,673 | |
Balance, end of period | 56,014 | 54,894 | 56,014 | 54,894 | 51,291 |
Allowance for credit losses: | |||||
Individually evaluated | 3,221 | 3,221 | 1,721 | ||
Collectively evaluated | 52,793 | 52,793 | 49,570 | ||
Total | 56,014 | 54,894 | 56,014 | 54,894 | 51,291 |
Loans outstanding: | |||||
Individually evaluated | 33,456 | 33,456 | 5,013 | ||
Collectively evaluated | 3,820,828 | 3,820,828 | 4,130,031 | ||
Total | 3,854,284 | 3,854,284 | 4,135,044 | ||
C&I loans | ASU 2022-02 | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | (426) | ||||
Balance, end of period | (426) | ||||
Allowance for credit losses: | |||||
Total | (426) | ||||
Residential mortgage loans | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | 11,942 | 11,253 | 12,838 | 8,920 | 8,920 |
Provision (credit) for credit/loan losses | (8,033) | 730 | (8,929) | 3,063 | |
Loans charged off | 0 | 0 | 0 | 0 | 0 |
Recoveries of charge offs | 0 | 0 | 0 | 0 | |
Balance, end of period | 3,909 | 11,983 | 3,909 | 11,983 | 12,838 |
Allowance for credit losses: | |||||
Individually evaluated | 25 | 25 | 39 | ||
Collectively evaluated | 3,884 | 3,884 | 12,799 | ||
Total | 3,909 | 11,983 | 3,909 | 11,983 | 12,838 |
Loans outstanding: | |||||
Individually evaluated | 6,206 | 6,206 | 5,916 | ||
Collectively evaluated | 990,395 | 990,395 | 877,771 | ||
Total | 996,601 | 996,601 | 883,687 | ||
Residential mortgage loans | ASU 2022-02 | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | 0 | ||||
Balance, end of period | 0 | ||||
Allowance for credit losses: | |||||
Total | 0 | ||||
Consumer and other loans | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | 528 | 666 | 625 | 683 | 683 |
Provision (credit) for credit/loan losses | (50) | 233 | (186) | 237 | |
Loans charged off | (46) | (120) | (109) | (175) | (370) |
Recoveries of charge offs | 21 | 19 | 123 | 53 | |
Balance, end of period | 453 | 798 | 453 | 798 | 625 |
Allowance for credit losses: | |||||
Individually evaluated | 3 | 3 | 14 | ||
Collectively evaluated | 450 | 450 | 611 | ||
Total | 453 | $ 798 | 453 | $ 798 | 625 |
Loans outstanding: | |||||
Individually evaluated | 49 | 49 | 343 | ||
Collectively evaluated | 36,553 | 36,553 | 36,661 | ||
Total | $ 36,602 | 36,602 | 37,004 | ||
Consumer and other loans | ASU 2022-02 | |||||
Allowance for Loan Losses by Portfolio Segment | |||||
Balance, beginning of period | $ 0 | ||||
Balance, end of period | 0 | ||||
Allowance for credit losses: | |||||
Total | $ 0 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses - Nonaccrual Loans and Loans Past Due 90 or More Days and Still on Accrual Status (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Financing Receivable, Nonaccrual [Line Items] | |||
Threshold period for loans to be placed on nonaccrual status | 90 days | ||
Nonaccrual with No ACL | $ 45,577 | $ 32,173 | |
Nonaccrual with an ACL | 21,426 | 13,031 | |
Financing Receivable, Nonaccrual | 67,003 | 45,204 | |
Accruing Loans Past Due 90 Days or More | 273 | 261 | |
Guaranteed portion of SBA loans excluded from Nonaccrual loans | 11,200 | 11,400 | |
CRE loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual with No ACL | 21,801 | $ 26,724 | |
Nonaccrual with an ACL | 5,491 | 7,208 | |
Financing Receivable, Nonaccrual | 27,292 | 33,932 | |
Accruing Loans Past Due 90 Days or More | 0 | $ 0 | |
C&I loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual with No ACL | 20,799 | 2,447 | |
Nonaccrual with an ACL | 12,657 | 2,566 | |
Financing Receivable, Nonaccrual | 33,456 | 5,013 | |
Accruing Loans Past Due 90 Days or More | 128 | 184 | |
Residential mortgage loans | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual with No ACL | 2,977 | 3,002 | |
Nonaccrual with an ACL | 3,229 | 2,914 | |
Financing Receivable, Nonaccrual | 6,206 | 5,916 | |
Accruing Loans Past Due 90 Days or More | 0 | 0 | |
Consumer | |||
Financing Receivable, Nonaccrual [Line Items] | |||
Nonaccrual with No ACL | 0 | 0 | |
Nonaccrual with an ACL | 49 | 343 | |
Financing Receivable, Nonaccrual | 49 | 343 | |
Accruing Loans Past Due 90 Days or More | $ 145 | $ 77 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses - Collateral-Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $ 156,019 | $ 158,758 | $ 158,694 | $ 172,996 | $ 163,544 | $ 162,359 |
Total | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 52,233 | 36,960 | ||||
Real Estate Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 28,788 | 35,252 | ||||
Other Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 23,445 | 1,708 | ||||
Real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 95,643 | 90,823 | 93,940 | 105,321 | 108,835 | 95,884 |
Real estate | Total | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 24,568 | 29,803 | ||||
Real estate | Real Estate Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 24,568 | 29,803 | ||||
Real estate | Other Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 0 | 0 | ||||
C&I loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 56,014 | 55,465 | 51,291 | 54,894 | 42,790 | 56,872 |
C&I loans | Total | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 24,688 | 4,155 | ||||
C&I loans | Real Estate Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 1,243 | 2,447 | ||||
C&I loans | Other Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 23,445 | 1,708 | ||||
Residential mortgage loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 3,909 | 11,942 | 12,838 | 11,983 | 11,253 | 8,920 |
Residential mortgage loans | Total | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 2,977 | 3,002 | ||||
Residential mortgage loans | Real Estate Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 2,977 | 3,002 | ||||
Residential mortgage loans | Other Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 0 | 0 | ||||
Consumer and other loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $ 453 | $ 528 | $ 625 | $ 798 | $ 666 | $ 683 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses - Interest Income Reversals (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income reversals | $ 1,187 | $ 600 | $ 1,972 | $ 1,583 |
Real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income reversals | 61 | 214 | 252 | 665 |
C&I loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income reversals | 1,125 | 368 | 1,713 | 886 |
Residential mortgage loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest income reversals | $ 1 | $ 18 | $ 7 | $ 32 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses - Past Due Financing Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | $ 13,567,002 | $ 13,853,619 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 37,674 | 22,568 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 12,243 | 4,681 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 2,811 | 3,557 |
90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 22,620 | 14,330 |
Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 8,679,515 | 8,797,884 |
Real estate | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 16,123 | 15,172 |
Real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 8,074 | 1,999 |
Real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 523 | 2,976 |
Real estate | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 7,526 | 10,197 |
C&I loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 3,854,284 | 4,135,044 |
C&I loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 16,592 | 3,184 |
C&I loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 2,679 | 934 |
C&I loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 1,448 | 533 |
C&I loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 12,465 | 1,717 |
Residential mortgage loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 996,601 | 883,687 |
Residential mortgage loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 4,540 | 3,873 |
Residential mortgage loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 1,243 | 1,534 |
Residential mortgage loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 812 | 0 |
Residential mortgage loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 2,485 | 2,339 |
Consumer and other loans | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 36,602 | 37,004 |
Consumer and other loans | Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 419 | 339 |
Consumer and other loans | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 247 | 214 |
Consumer and other loans | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | 28 | 48 |
Consumer and other loans | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Amortized cost, past due loans | $ 144 | $ 77 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses - Financing Receivable Credit Quality Indicators (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | $ 1,293,128,000 | $ 1,293,128,000 | $ 1,845,145,000 | ||
Term loan originated in year two | 1,385,805,000 | 1,385,805,000 | 4,084,313,000 | ||
Term loan originated in year three | 3,791,351,000 | 3,791,351,000 | 3,056,873,000 | ||
Term loan originated in year four | 2,788,617,000 | 2,788,617,000 | 1,470,519,000 | ||
Term loan originated in year five | 1,349,651,000 | 1,349,651,000 | 1,212,639,000 | ||
Term loan originated prior to year five | 2,298,373,000 | 2,298,373,000 | 1,543,568,000 | ||
Revolving Loans | 660,077,000 | 660,077,000 | 640,562,000 | ||
Total | 13,567,002,000 | 13,567,002,000 | 13,853,619,000 | ||
Current period gross charge offs, Year One, Originated, Current Fiscal Year | 0 | 5,114,000 | |||
Current period gross charge offs, Year Two, Originated, Fiscal Year before Current Fiscal Year | 265,000 | 12,638,000 | |||
Current period gross charge offs, Year Three, Originated, Two Years before Current Fiscal Year | 10,379,000 | 16,020,000 | |||
Current period gross charge offs, Year Four, Originated, Three Years before Current Fiscal Year | 55,000 | 361,000 | |||
Current period gross charge offs, Year Five, Originated, Four Years before Current Fiscal Year | 101,000 | 537,000 | |||
Current period gross charge offs, Originated, More than Five Years before Current Fiscal Year | 349,000 | 2,480,000 | |||
Current period gross charge offs, Revolving | 109,000 | 370,000 | |||
Allowance for credit loss, writeoff | 6,538,000 | $ 979,000 | 11,258,000 | $ 1,474,000 | 37,520,000 |
Revolving loans converted to term loans | 0 | 0 | 0 | ||
CRE loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 393,920,000 | 393,920,000 | 623,058,000 | ||
Term loan originated in year two | 582,647,000 | 582,647,000 | 2,432,696,000 | ||
Term loan originated in year three | 2,375,256,000 | 2,375,256,000 | 2,068,615,000 | ||
Term loan originated in year four | 2,009,588,000 | 2,009,588,000 | 1,244,883,000 | ||
Term loan originated in year five | 1,198,307,000 | 1,198,307,000 | 1,004,529,000 | ||
Term loan originated prior to year five | 2,018,672,000 | 2,018,672,000 | 1,344,677,000 | ||
Revolving Loans | 101,125,000 | 101,125,000 | 79,426,000 | ||
Total | 8,679,515,000 | 8,679,515,000 | 8,797,884,000 | ||
Current period gross charge offs, Year One, Originated, Current Fiscal Year | 0 | 103,000 | |||
Current period gross charge offs, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 315,000 | |||
Current period gross charge offs, Year Three, Originated, Two Years before Current Fiscal Year | 166,000 | 0 | |||
Current period gross charge offs, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 233,000 | |||
Current period gross charge offs, Year Five, Originated, Four Years before Current Fiscal Year | 101,000 | 355,000 | |||
Current period gross charge offs, Originated, More than Five Years before Current Fiscal Year | 291,000 | 1,941,000 | |||
Current period gross charge offs, Revolving | 0 | 0 | |||
Allowance for credit loss, writeoff | 520,000 | 561,000 | 558,000 | 561,000 | 2,947,000 |
C&I loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 743,279,000 | 743,279,000 | 1,124,120,000 | ||
Term loan originated in year two | 714,489,000 | 714,489,000 | 1,285,421,000 | ||
Term loan originated in year three | 1,058,566,000 | 1,058,566,000 | 723,689,000 | ||
Term loan originated in year four | 525,782,000 | 525,782,000 | 220,376,000 | ||
Term loan originated in year five | 146,667,000 | 146,667,000 | 177,719,000 | ||
Term loan originated prior to year five | 124,719,000 | 124,719,000 | 63,377,000 | ||
Revolving Loans | 540,782,000 | 540,782,000 | 540,342,000 | ||
Total | 3,854,284,000 | 3,854,284,000 | 4,135,044,000 | ||
Current period gross charge offs, Year One, Originated, Current Fiscal Year | 0 | 5,011,000 | |||
Current period gross charge offs, Year Two, Originated, Fiscal Year before Current Fiscal Year | 265,000 | 12,323,000 | |||
Current period gross charge offs, Year Three, Originated, Two Years before Current Fiscal Year | 10,213,000 | 16,020,000 | |||
Current period gross charge offs, Year Four, Originated, Three Years before Current Fiscal Year | 55,000 | 128,000 | |||
Current period gross charge offs, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 182,000 | |||
Current period gross charge offs, Originated, More than Five Years before Current Fiscal Year | 58,000 | 539,000 | |||
Current period gross charge offs, Revolving | 0 | 0 | |||
Allowance for credit loss, writeoff | 5,972,000 | 298,000 | 10,591,000 | 738,000 | 34,203,000 |
Residential mortgage loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 149,265,000 | 149,265,000 | 93,982,000 | ||
Term loan originated in year two | 87,960,000 | 87,960,000 | 365,252,000 | ||
Term loan originated in year three | 357,115,000 | 357,115,000 | 264,291,000 | ||
Term loan originated in year four | 253,026,000 | 253,026,000 | 3,192,000 | ||
Term loan originated in year five | 3,174,000 | 3,174,000 | 30,020,000 | ||
Term loan originated prior to year five | 146,061,000 | 146,061,000 | 126,950,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 996,601,000 | 996,601,000 | 883,687,000 | ||
Current period gross charge offs, Year One, Originated, Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Revolving | 0 | 0 | |||
Allowance for credit loss, writeoff | 0 | 0 | 0 | 0 | 0 |
Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 6,664,000 | 6,664,000 | 3,985,000 | ||
Term loan originated in year two | 709,000 | 709,000 | 944,000 | ||
Term loan originated in year three | 414,000 | 414,000 | 278,000 | ||
Term loan originated in year four | 221,000 | 221,000 | 2,068,000 | ||
Term loan originated in year five | 1,503,000 | 1,503,000 | 371,000 | ||
Term loan originated prior to year five | 8,921,000 | 8,921,000 | 8,564,000 | ||
Revolving Loans | 18,170,000 | 18,170,000 | 20,794,000 | ||
Total | 36,602,000 | 36,602,000 | 37,004,000 | ||
Current period gross charge offs, Year One, Originated, Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | |||
Current period gross charge offs, Revolving | 109,000 | 370,000 | |||
Allowance for credit loss, writeoff | 46,000 | $ 120,000 | 109,000 | $ 175,000 | 370,000 |
Pass | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 1,282,971,000 | 1,282,971,000 | 1,828,244,000 | ||
Term loan originated in year two | 1,305,462,000 | 1,305,462,000 | 4,004,137,000 | ||
Term loan originated in year three | 3,703,943,000 | 3,703,943,000 | 2,993,939,000 | ||
Term loan originated in year four | 2,698,082,000 | 2,698,082,000 | 1,446,220,000 | ||
Term loan originated in year five | 1,310,899,000 | 1,310,899,000 | 1,188,732,000 | ||
Term loan originated prior to year five | 2,214,667,000 | 2,214,667,000 | 1,490,420,000 | ||
Revolving Loans | 603,176,000 | 603,176,000 | 579,486,000 | ||
Total | 13,119,200,000 | 13,119,200,000 | 13,531,178,000 | ||
Pass | CRE loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 393,920,000 | 393,920,000 | 623,058,000 | ||
Term loan originated in year two | 561,786,000 | 561,786,000 | 2,429,146,000 | ||
Term loan originated in year three | 2,374,638,000 | 2,374,638,000 | 2,045,863,000 | ||
Term loan originated in year four | 1,965,556,000 | 1,965,556,000 | 1,239,654,000 | ||
Term loan originated in year five | 1,161,504,000 | 1,161,504,000 | 996,483,000 | ||
Term loan originated prior to year five | 1,954,773,000 | 1,954,773,000 | 1,297,295,000 | ||
Revolving Loans | 101,125,000 | 101,125,000 | 79,426,000 | ||
Total | 8,513,302,000 | 8,513,302,000 | 8,710,925,000 | ||
Pass | C&I loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 733,122,000 | 733,122,000 | 1,107,219,000 | ||
Term loan originated in year two | 655,007,000 | 655,007,000 | 1,208,795,000 | ||
Term loan originated in year three | 971,776,000 | 971,776,000 | 683,821,000 | ||
Term loan originated in year four | 480,021,000 | 480,021,000 | 203,142,000 | ||
Term loan originated in year five | 146,554,000 | 146,554,000 | 162,815,000 | ||
Term loan originated prior to year five | 108,845,000 | 108,845,000 | 61,019,000 | ||
Revolving Loans | 483,881,000 | 483,881,000 | 479,266,000 | ||
Total | 3,579,206,000 | 3,579,206,000 | 3,906,077,000 | ||
Pass | Residential mortgage loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 149,265,000 | 149,265,000 | 93,982,000 | ||
Term loan originated in year two | 87,960,000 | 87,960,000 | 365,252,000 | ||
Term loan originated in year three | 357,115,000 | 357,115,000 | 263,977,000 | ||
Term loan originated in year four | 252,284,000 | 252,284,000 | 1,356,000 | ||
Term loan originated in year five | 1,338,000 | 1,338,000 | 29,063,000 | ||
Term loan originated prior to year five | 142,177,000 | 142,177,000 | 123,885,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 990,139,000 | 990,139,000 | 877,515,000 | ||
Pass | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 6,664,000 | 6,664,000 | 3,985,000 | ||
Term loan originated in year two | 709,000 | 709,000 | 944,000 | ||
Term loan originated in year three | 414,000 | 414,000 | 278,000 | ||
Term loan originated in year four | 221,000 | 221,000 | 2,068,000 | ||
Term loan originated in year five | 1,503,000 | 1,503,000 | 371,000 | ||
Term loan originated prior to year five | 8,872,000 | 8,872,000 | 8,221,000 | ||
Revolving Loans | 18,170,000 | 18,170,000 | 20,794,000 | ||
Total | 36,553,000 | 36,553,000 | 36,661,000 | ||
Special mention | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 9,743,000 | ||
Term loan originated in year two | 71,683,000 | 71,683,000 | 25,414,000 | ||
Term loan originated in year three | 20,292,000 | 20,292,000 | 46,840,000 | ||
Term loan originated in year four | 44,551,000 | 44,551,000 | 11,115,000 | ||
Term loan originated in year five | 3,036,000 | 3,036,000 | 20,577,000 | ||
Term loan originated prior to year five | 24,049,000 | 24,049,000 | 5,196,000 | ||
Revolving Loans | 40,556,000 | 40,556,000 | 60,107,000 | ||
Total | 204,167,000 | 204,167,000 | 178,992,000 | ||
Special mention | CRE loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 0 | ||
Term loan originated in year two | 19,891,000 | 19,891,000 | 2,001,000 | ||
Term loan originated in year three | 0 | 0 | 15,452,000 | ||
Term loan originated in year four | 2,055,000 | 2,055,000 | 2,518,000 | ||
Term loan originated in year five | 2,923,000 | 2,923,000 | 5,963,000 | ||
Term loan originated prior to year five | 9,533,000 | 9,533,000 | 5,196,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 34,402,000 | 34,402,000 | 31,130,000 | ||
Special mention | C&I loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 9,743,000 | ||
Term loan originated in year two | 51,792,000 | 51,792,000 | 23,413,000 | ||
Term loan originated in year three | 20,292,000 | 20,292,000 | 31,388,000 | ||
Term loan originated in year four | 42,496,000 | 42,496,000 | 8,597,000 | ||
Term loan originated in year five | 113,000 | 113,000 | 14,614,000 | ||
Term loan originated prior to year five | 14,516,000 | 14,516,000 | 0 | ||
Revolving Loans | 40,556,000 | 40,556,000 | 60,107,000 | ||
Total | 169,765,000 | 169,765,000 | 147,862,000 | ||
Special mention | Residential mortgage loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 0 | ||
Term loan originated in year two | 0 | 0 | 0 | ||
Term loan originated in year three | 0 | 0 | 0 | ||
Term loan originated in year four | 0 | 0 | 0 | ||
Term loan originated in year five | 0 | 0 | 0 | ||
Term loan originated prior to year five | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Special mention | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 0 | ||
Term loan originated in year two | 0 | 0 | 0 | ||
Term loan originated in year three | 0 | 0 | 0 | ||
Term loan originated in year four | 0 | 0 | 0 | ||
Term loan originated in year five | 0 | 0 | 0 | ||
Term loan originated prior to year five | 0 | 0 | 0 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Substandard | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 10,157,000 | 10,157,000 | 7,158,000 | ||
Term loan originated in year two | 8,660,000 | 8,660,000 | 54,762,000 | ||
Term loan originated in year three | 67,116,000 | 67,116,000 | 16,094,000 | ||
Term loan originated in year four | 45,984,000 | 45,984,000 | 13,184,000 | ||
Term loan originated in year five | 35,716,000 | 35,716,000 | 3,330,000 | ||
Term loan originated prior to year five | 59,657,000 | 59,657,000 | 47,952,000 | ||
Revolving Loans | 16,345,000 | 16,345,000 | 969,000 | ||
Total | 243,635,000 | 243,635,000 | 143,449,000 | ||
Substandard | CRE loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 0 | ||
Term loan originated in year two | 970,000 | 970,000 | 1,549,000 | ||
Term loan originated in year three | 618,000 | 618,000 | 7,300,000 | ||
Term loan originated in year four | 41,977,000 | 41,977,000 | 2,711,000 | ||
Term loan originated in year five | 33,880,000 | 33,880,000 | 2,083,000 | ||
Term loan originated prior to year five | 54,366,000 | 54,366,000 | 42,186,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 131,811,000 | 131,811,000 | 55,829,000 | ||
Substandard | C&I loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 10,157,000 | 10,157,000 | 7,158,000 | ||
Term loan originated in year two | 7,690,000 | 7,690,000 | 53,213,000 | ||
Term loan originated in year three | 66,498,000 | 66,498,000 | 8,480,000 | ||
Term loan originated in year four | 3,265,000 | 3,265,000 | 8,637,000 | ||
Term loan originated in year five | 0 | 0 | 290,000 | ||
Term loan originated prior to year five | 1,358,000 | 1,358,000 | 2,358,000 | ||
Revolving Loans | 16,345,000 | 16,345,000 | 969,000 | ||
Total | 105,313,000 | 105,313,000 | 81,105,000 | ||
Substandard | Residential mortgage loans | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 0 | ||
Term loan originated in year two | 0 | 0 | 0 | ||
Term loan originated in year three | 0 | 0 | 314,000 | ||
Term loan originated in year four | 742,000 | 742,000 | 1,836,000 | ||
Term loan originated in year five | 1,836,000 | 1,836,000 | 957,000 | ||
Term loan originated prior to year five | 3,884,000 | 3,884,000 | 3,065,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | 6,462,000 | 6,462,000 | 6,172,000 | ||
Substandard | Consumer | |||||
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Term loan originated in year one | 0 | 0 | 0 | ||
Term loan originated in year two | 0 | 0 | 0 | ||
Term loan originated in year three | 0 | 0 | 0 | ||
Term loan originated in year four | 0 | 0 | 0 | ||
Term loan originated in year five | 0 | 0 | 0 | ||
Term loan originated prior to year five | 49,000 | 49,000 | 343,000 | ||
Revolving Loans | 0 | 0 | 0 | ||
Total | $ 49,000 | $ 49,000 | $ 343,000 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Credit Losses - Loans Held For Investment - Reclassification to Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Transfer of loans held for investment to held for sale | $ 81,130 | $ 74,776 | $ 81,130 | $ 237,259 |
CRE loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Transfer of loans held for investment to held for sale | 26,755 | 13,168 | 26,755 | 66,776 |
C&I loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Transfer of loans held for investment to held for sale | $ 54,375 | $ 61,608 | $ 54,375 | $ 170,483 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Credit Losses - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Reasonable and supportable period at which point loss assumptions revert back to historical loss information | 2 years | |||||
Reversion period | 1 year | |||||
Non-modeled loans as percentage of total loan portfolio (less than) | 2% | 2% | ||||
Positive or negative qualitative adjustment of the Loss Migration Ratio | 0.25% | 0.25% | ||||
Financing receivable, balance threshold to determine individual evaluation for impairment | $ 1,000 | $ 1,000 | ||||
Retained earnings | 1,167,978 | 1,167,978 | $ 1,150,547 | |||
Accrued interest receivable on loans | 48,000 | 48,000 | 49,300 | |||
Loans held for sale, at lower of cost or fair value | 68,316 | 68,316 | $ 3,408 | |||
Provision for Loan, Lease, and Other Losses | 1,400 | $ 9,010 | 4,000 | $ 12,330 | ||
Cumulative Effect, Period of Adoption, Adjustment | ASU 2022-02 | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Retained earnings | $ 287 | |||||
Commercial Real Estate and Commercial Business Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans held for sale, at lower of cost or fair value | 26,200 | 26,200 | ||||
Residential mortgage loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans held for sale, at lower of cost or fair value | 2,000 | 2,000 | ||||
SBA Guaranteed Loans | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Loans held for sale, at lower of cost or fair value | $ 40,200 | $ 40,200 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Credit Losses - Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 4,848 | $ 25,964 | $ 14,794 | $ 25,964 |
% of Loan Class | 0.04% | 0.17% | 0.11% | 0.17% |
Loan modifications with payment defaults, modified in 12 months prior to default | $ 0 | $ 0 | $ 0 | $ 0 |
Principal forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 9,946 | 0 |
Interest rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Payment delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Term extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 4,848 | 25,964 | 4,848 | 25,964 |
CRE loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
% of Loan Class | 0% | 0% | 0% | 0% |
CRE loans | Principal forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
CRE loans | Interest rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
CRE loans | Payment delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
CRE loans | Term extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
C&I loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 4,848 | $ 25,964 | $ 14,794 | $ 25,964 |
% of Loan Class | 0.13% | 0.54% | 0.38% | 0.54% |
C&I loans | Principal forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 9,946 | $ 0 |
C&I loans | Interest rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
C&I loans | Payment delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
C&I loans | Term extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 4,848 | 25,964 | 4,848 | 25,964 |
Residential mortgage loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
% of Loan Class | 0% | 0% | 0% | 0% |
Residential mortgage loans | Principal forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
Residential mortgage loans | Interest rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Residential mortgage loans | Payment delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Residential mortgage loans | Term extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Consumer and other loans | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
% of Loan Class | 0% | 0% | 0% | 0% |
Consumer and other loans | Principal forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer and other loans | Interest rate reduction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Consumer and other loans | Payment delay | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | 0 | 0 | 0 | 0 |
Consumer and other loans | Term extension | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Total Loan Modifications | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Credit Losses - Principal Forgiveness (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Loan modifications with payment defaults, modified in 12 months prior to default | $ 0 | $ 0 | $ 0 | $ 0 |
C&I loans | Principal forgiveness | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Forgiveness of principal | $ 0 | $ 4.4 | ||
Extended term | 3 months 18 days | 3 months 18 days | 3 months 18 days | 3 months 18 days |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) lease | Jun. 30, 2023 USD ($) branch | Dec. 31, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | |||||
Extension options, term of extension | 5 years | ||||
Rent expense | $ 4,200,000 | $ 4,300,000 | $ 8,300,000 | $ 9,200,000 | |
Operating Lease, Impairment Loss | 0 | $ 0 | $ (93,000) | ||
Number of branches consolidated | branch | 1 | ||||
Number of operating lease commitments not yet commenced | lease | 0 | ||||
Short-term operating lease liability | 13,934,000 | $ 13,934,000 | $ 14,287,000 | ||
Long-term operating lease liability | $ 33,170,000 | $ 33,170,000 | $ 38,383,000 | ||
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term for operating leases | 1 year | 1 year | |||
Extension options, term of extension | 3 years | ||||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Remaining lease term for operating leases | 9 years | 9 years | |||
Extension options, term of extension | 5 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 3,611 | $ 3,825 | $ 7,217 | $ 7,666 |
Variable lease cost | 867 | 820 | 1,675 | 1,603 |
Sublease income | (64) | (50) | (103) | (92) |
Net lease cost | $ 4,414 | $ 4,595 | $ 8,789 | $ 9,177 |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) lease | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash outflows for operating leases | $ 7,916 | $ 8,013 | ||
ROU assets obtained in exchange for lease liabilities, net | $ 2,058 | $ 6,113 | ||
Weighted-average remaining lease term - operating leases | 3 years 9 months 18 days | 3 years 9 months 18 days | 4 years 4 months 24 days | |
Weighted-average discount rate - operating leases | 2.91% | 2.91% | 2.68% | |
Number of operating lease commitments not yet commenced | lease | 0 | |||
Number of leases extended | lease | 4 | |||
Number of new leases | lease | 0 | |||
Long-term operating lease liability | $ 33,170 | $ 33,170 | $ 38,383 | |
Operating Lease, Impairment Loss | $ 0 | $ 0 | $ (93) |
Leases - Maturities of Remainin
Leases - Maturities of Remaining Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 7,697 | |
2025 | 14,334 | |
2026 | 13,647 | |
2027 | 8,123 | |
2028 | 3,320 | |
2029 and thereafter | 2,811 | |
Total lease payments | 49,932 | |
Less: imputed interest | 2,828 | |
Total lease obligations | $ 47,104 | $ 52,670 |
Deposits (Details)
Deposits (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Deposits Disclosure [Line Items] | ||
Time Deposits, $250,000 or More | $ 2,560,000,000 | $ 2,240,000,000 |
Brokered deposits | 1,360,000,000 | 1,540,000,000 |
Noninterest bearing | 3,671,192,000 | 3,914,967,000 |
Money market and NOW accounts | 4,118,651,000 | 4,169,543,000 |
Savings deposits | 789,209,000 | 702,486,000 |
Time deposits | 6,132,419,000 | 5,966,757,000 |
Total deposits | $ 14,711,471,000 | $ 14,753,753,000 |
Percent of total deposit balance, by type | 100% | 100% |
Deposit Liabilities Reclassified as Loans Receivable | $ 4,600,000 | $ 2,000,000 |
Increase (decrease) in deposit liabilities | $ (42,300,000) | |
Increase (decrease) in deposit liabilities, percentage | (0.30%) | |
Money market and NOW accounts | ||
Deposits Disclosure [Line Items] | ||
Brokered deposits | $ 263,900,000 | $ 164,100,000 |
Percent of total deposit balance, by type | 28% | 28% |
Time deposit accounts | ||
Deposits Disclosure [Line Items] | ||
Brokered deposits | $ 1,100,000,000 | $ 1,370,000,000 |
Noninterest Bearing Demand Deposits | ||
Deposits Disclosure [Line Items] | ||
Percent of total deposit balance, by type | 25% | 27% |
Savings Deposits | ||
Deposits Disclosure [Line Items] | ||
Percent of total deposit balance, by type | 5% | 5% |
Bank Time Deposits | ||
Deposits Disclosure [Line Items] | ||
Percent of total deposit balance, by type | 42% | 40% |
California State Treasurer | ||
Deposits Disclosure [Line Items] | ||
Time Deposits, $250,000 or More | $ 300,000,000 | $ 300,000,000 |
Required eligible collateral pledge on outstanding deposits, minimum percentage | 110% | |
Securities pledged as collateral | $ 207,200,000 | $ 218,700,000 |
California State Treasurer | Letter of credit | ||
Deposits Disclosure [Line Items] | ||
Letter of credit pledged as collateral | $ 150,000,000 |
Borrowings - Maturities of FHLB
Borrowings - Maturities of FHLB Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Short-Term Debt [Line Items] | ||
Total Borrowing Capacity | $ 5,108,484 | $ 6,817,761 |
Amount | $ 170,000 | $ 1,795,726 |
Weighted Average Rate | 5.56% | 4.54% |
Available Borrowing Capacity | $ 4,938,484 | $ 5,022,035 |
FRB | ||
Short-Term Debt [Line Items] | ||
Total Borrowing Capacity | 4,167,168 | |
Amount | $ 100,000 | |
Weighted Average Rate | 5.73% | |
Available Borrowing Capacity | $ 4,067,168 | |
FRB Discount Window | ||
Short-Term Debt [Line Items] | ||
Total Borrowing Capacity | 513,454 | 630,369 |
Amount | $ 70,000 | $ 0 |
Weighted Average Rate | 5.50% | 0% |
Available Borrowing Capacity | $ 443,454 | $ 630,369 |
FRB Bank Term Funding Program (“BTFP”) | ||
Short-Term Debt [Line Items] | ||
Total Borrowing Capacity | 1,707,909 | |
Amount | $ 1,695,726 | |
Weighted Average Rate | 4.47% | |
Available Borrowing Capacity | $ 12,183 | |
Unsecured Federal Funds lines | ||
Short-Term Debt [Line Items] | ||
Total Borrowing Capacity | 304,791 | 312,315 |
Amount | $ 0 | $ 0 |
Weighted Average Rate | 0% | 0% |
Available Borrowing Capacity | $ 304,791 | $ 312,315 |
Federal Home Loan Bank Certificates and Obligations (FHLB) | ||
Short-Term Debt [Line Items] | ||
Total Borrowing Capacity | 4,290,239 | |
Amount | $ 100,000 | |
Weighted Average Rate | 5.61% | |
Available Borrowing Capacity | $ 4,190,239 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands | Jun. 30, 2024 USD ($) securities | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | ||
FHLB and FRB borrowings | $ 170,000 | $ 1,795,726 |
Percent of assets | 25% | |
Percent outstanding advances | 100% | |
Unsecured Federal Funds lines | ||
Debt Instrument [Line Items] | ||
FHLB and FRB borrowings | $ 0 | 0 |
Qualifying Loans | ||
Debt Instrument [Line Items] | ||
Asset balance used to determine maximum borrowing capacity from federal reserve bank | $ 578,400 | |
FRB Discount Window | ||
Debt Instrument [Line Items] | ||
Percent of qualifying assets (up to) | 99% | |
Number of securities pledged as collateral | securities | 0 | |
Mortgage Loans on Real Estate | ||
Debt Instrument [Line Items] | ||
Pledged as collateral, FHLB | $ 7,680,000 | $ 7,600,000 |
Subordinated Debentures and C_3
Subordinated Debentures and Convertible Notes - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 07, 2018 $ / shares | Jun. 30, 2024 USD ($) grantorTrust | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) grantorTrust | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 06, 2018 USD ($) | |
Subordinated Borrowing [Line Items] | ||||||||
Repayment of convertible notes | $ 0 | $ 197,107,000 | $ 197,100,000 | |||||
Repayment of Convertible Debt, Principal | $ 19,900,000 | |||||||
Gain on debt extinguishment | $ 405,000 | $ 0 | 405,000 | |||||
Number of wholly owned subsidiary grantor trusts | grantorTrust | 9 | 9 | ||||||
Amount of pooled trust preferred securities issued | $ 126,000,000 | $ 126,000,000 | ||||||
Right to defer consecutive payments of interest, maximum term | 5 years | |||||||
Other assets | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Investment in common trust securities | 3,900,000 | $ 3,900,000 | 3,900,000 | |||||
Carrying Value of Subordinated Debentures | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Carrying value of Debentures | 108,474,000 | 108,474,000 | 107,800,000 | |||||
Remaining discounts on acquired Debentures | 21,400,000 | 21,400,000 | 22,100,000 | |||||
Trust Preferred Securities Subject to Mandatory Redemption | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Amount of pooled trust preferred securities issued | $ 126,000,000 | $ 126,000,000 | ||||||
Percent included in tier one capital, maximum | 25% | 25% | ||||||
Excess of percent threshold included in tier two capital | 25% | 25% | ||||||
Convertible Notes | ||||||||
Subordinated Borrowing [Line Items] | ||||||||
Aggregate principal amount issued | $ 217,500,000 | $ 217,500,000 | $ 217,500,000 | |||||
Interest rate | 2% | |||||||
Initial conversion rate | 0.0450760 | 0.0450760 | ||||||
Initial conversion price (in dollars per share) | $ / shares | $ 22.18 | |||||||
Premium percentage to closing stock price on date of pricing of the notes | 22.50% | |||||||
Call option, percentage of principal amount in cash | 100% | |||||||
Repurchase or put option, percentage of principal amount in cash | 100% | |||||||
Long-term Debt | 444,000 | $ 444,000 | $ 444,000 | |||||
Interest expense on convertible notes | $ 2,000 | $ 598,000 | $ 4,000 | $ 1,900,000 |
Subordinated Debentures and C_4
Subordinated Debentures and Convertible Notes - Summary of Trust Preferred Securities and Debentures (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 126,000,000 | |
Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | 126,000,000 | |
Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 108,474,000 | $ 107,800,000 |
Nara Capital Trust III | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 8.59% | |
Nara Capital Trust III | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 5,000,000 | |
Nara Capital Trust III | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 5,155,000 | |
Nara Statutory Trust IV | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 8.44% | |
Nara Statutory Trust IV | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 5,000,000 | |
Nara Statutory Trust IV | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 5,155,000 | |
Nara Statutory Trust V | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 8.55% | |
Nara Statutory Trust V | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 10,000,000 | |
Nara Statutory Trust V | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 10,310,000 | |
Nara Statutory Trust VI | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 7.25% | |
Nara Statutory Trust VI | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 8,000,000 | |
Nara Statutory Trust VI | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 8,248,000 | |
Center Capital Trust I | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 8.44% | |
Center Capital Trust I | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 18,000,000 | |
Center Capital Trust I | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 15,332,000 | |
Wilshire Trust II | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 7.39% | |
Wilshire Trust II | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 20,000,000 | |
Wilshire Trust II | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 16,808,000 | |
Wilshire Trust III | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 7% | |
Wilshire Trust III | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 15,000,000 | |
Wilshire Trust III | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 12,038,000 | |
Wilshire Trust IV | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 6.98% | |
Wilshire Trust IV | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 25,000,000 | |
Wilshire Trust IV | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 19,406,000 | |
Saehan Capital Trust I | ||
Subordinated Borrowing [Line Items] | ||
Current Rate | 7.21% | |
Saehan Capital Trust I | Trust Preferred Security Amount | ||
Subordinated Borrowing [Line Items] | ||
Trust Preferred Security Amount | $ 20,000,000 | |
Saehan Capital Trust I | Carrying Value of Subordinated Debentures | ||
Subordinated Borrowing [Line Items] | ||
Carrying Value of Subordinated Debentures | $ 16,022,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivative Notional Amounts and Fair Values (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | $ 2,261,238,000 | $ 2,336,809,000 |
Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 1,925,000,000 | 2,225,000,000 |
Interest rate contracts | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 725,000,000 | 725,000,000 |
Interest rate contracts | Correspondent Banks | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 1,048,236,000 | 1,096,292,000 |
Interest rate contracts | Customers | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 1,048,236,000 | 1,096,292,000 |
Interest rate swap, forward starting | Cash Flow Hedge | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 700,000,000 | 1,000,000,000 |
Interest rate swap, forward starting | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 250,000,000 | |
Foreign Exchange Contract | Correspondent Banks | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 12,159,000 | 10,739,000 |
Foreign Exchange Contract | Customers | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 224,000 | 1,744,000 |
Risk participation agreement | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 148,431,000 | 130,365,000 |
Interest Rate Lock Commitments and Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 3,952,000 | 1,377,000 |
Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional Amount | 500,000,000 | 250,000,000 |
Other assets | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit valuation adjustment, Other Assets | 59,661,000 | |
Credit valuation adjustment, Other Liabilities | (54,370,000) | |
Other assets | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 0 | 10,960,000 |
Other assets | Interest rate contracts | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Other assets | Interest rate contracts | Correspondent Banks | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 59,036,000 | 53,185,000 |
Other assets | Interest rate contracts | Customers | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 122,000 | 1,117,000 |
Other assets | Interest rate swap, forward starting | Cash Flow Hedge | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 0 | 10,812,000 |
Other assets | Interest rate swap, forward starting | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 148,000 | |
Other assets | Foreign Exchange Contract | Correspondent Banks | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign exchange contracts | 484,000 | 4,000 |
Other assets | Foreign Exchange Contract | Customers | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign exchange contracts | 8,000 | 57,000 |
Other assets | Risk participation agreement | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit valuation adjustment, Other Assets | 0 | |
Credit valuation adjustment, Other Liabilities | 0 | |
Other assets | Interest Rate Lock Commitments and Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit valuation adjustment, Other Assets | 11,000 | |
Credit valuation adjustment, Other Liabilities | (7,000) | |
Other assets | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Other liabilities | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit valuation adjustment, Other Liabilities | (60,689,000) | (55,869,000) |
Other liabilities | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | (11,784,000) | 1,149,000 |
Other liabilities | Interest rate contracts | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 0 | 0 |
Other liabilities | Interest rate contracts | Correspondent Banks | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | (122,000) | 1,117,000 |
Other liabilities | Interest rate contracts | Customers | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | (60,531,000) | 54,505,000 |
Other liabilities | Interest rate swap, forward starting | Cash Flow Hedge | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | (7,478,000) | 0 |
Other liabilities | Interest rate swap, forward starting | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | 0 | |
Other liabilities | Foreign Exchange Contract | Correspondent Banks | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign exchange contracts | 0 | 202,000 |
Other liabilities | Foreign Exchange Contract | Customers | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign exchange contracts | 0 | 0 |
Other liabilities | Risk participation agreement | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit valuation adjustment, Other Liabilities | (16,000) | (28,000) |
Other liabilities | Interest Rate Lock Commitments and Forward Contracts | Not Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Credit valuation adjustment, Other Liabilities | (20,000) | (17,000) |
Other liabilities | Interest Rate Cap | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Interest rate derivatives | $ (4,306,000) | $ 1,149,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional value, terminated | $ 300,000,000 | ||||
Terminated derivative swaps, pre-tax loss in AOCI | (5,000,000) | ||||
Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 2,261,238,000 | $ 2,261,238,000 | $ 2,336,809,000 | ||
Not Designated as Hedging Instrument | Other liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Credit valuation adjustment | 60,689,000 | 60,689,000 | 55,869,000 | ||
Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 1,925,000,000 | 1,925,000,000 | 2,225,000,000 | ||
Interest Rate Cash Flow Hedge Gain Loss To Be Reclassified To Interest Income During Next 12 Months | 5,100,000 | 5,100,000 | |||
AOCI to be reclassified from terminated swaps within 12 Months | (1,600,000) | ||||
Risk participation agreement | Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 148,431,000 | 148,431,000 | 130,365,000 | ||
Risk participation agreement | Not Designated as Hedging Instrument | Other liabilities | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Credit valuation adjustment | 16,000 | 16,000 | 28,000 | ||
Interest rate contracts | Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 725,000,000 | 725,000,000 | 725,000,000 | ||
Interest rate swap, forward starting | Designated as Hedging Instrument | Cash Flow Hedge | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 700,000,000 | 700,000,000 | 1,000,000,000 | ||
Interest rate swap, forward starting | Designated as Hedging Instrument | Interest Rate Cap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 250,000,000 | ||||
Interest Rate Lock Commitments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional Amount | 4,000,000 | 4,000,000 | 1,400,000 | ||
Foreign Exchange Contract | Not Designated as Hedging Instrument | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gain (loss) on fair value of foreign exchange contracts | 370,000 | $ 3,000 | 633,000 | $ 9,000 | |
Cash Flow Hedge | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative Liability, Subject to Master Netting Arrangement, Collateral, Right to Reclaim Cash Not Offset | $ 0 | $ 0 | $ 22,900,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||||
Interest rate cash flow hedge, gain (loss) reclassified to earnings, net | $ 3,794 | $ 4,128 | $ 7,572 | $ 6,900 |
Interest income and fees on loans | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge, gain (loss) reclassified to earnings, net | (986) | 0 | (1,986) | 0 |
Interest expense on deposits | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge, gain (loss) reclassified to earnings, net | 3,257 | 2,941 | 6,740 | 4,660 |
Interest expense on FHLB and FRB borrowings | ||||
Derivative [Line Items] | ||||
Interest rate cash flow hedge, gain (loss) reclassified to earnings, net | $ 1,523 | $ 1,187 | $ 2,818 | $ 2,240 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Supply Commitment [Line Items] | ||
Loss contingencies for all legal claims | $ 500,000 | $ 535,000 |
Loss contingencies for all legal claims | 500,000 | 535,000 |
Commitments to extend credit | ||
Supply Commitment [Line Items] | ||
Commitments and letters of credit | 2,060,656,000 | 2,274,239,000 |
Standby letters of credit | ||
Supply Commitment [Line Items] | ||
Commitments and letters of credit | 137,487,000 | 132,132,000 |
Other letters of credit | ||
Supply Commitment [Line Items] | ||
Commitments and letters of credit | 24,925,000 | 51,983,000 |
Commitments to fund investments in affordable housing partnerships | ||
Supply Commitment [Line Items] | ||
Commitments and letters of credit | $ 18,345,000 | $ 21,017,000 |
Goodwill, Intangible Assets, _3
Goodwill, Intangible Assets, and Servicing Assets - Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 464,450,000 | $ 464,450,000 | $ 464,450,000 | ||
Goodwill impairment | 0 | 0 | |||
Core Deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense related to core deposit intangible assets | $ 401,000 | $ 448,000 | $ 802,000 | $ 896,000 | |
Wilshire Bancorp acquisition | Core Deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization Period | 10 years | 10 years | |||
Gross Amount | $ 18,138,000 | $ 18,138,000 | 18,138,000 | ||
Accumulated Amortization | (15,005,000) | (15,005,000) | (14,203,000) | ||
Carrying Amount | $ 3,133,000 | $ 3,133,000 | $ 3,935,000 |
Goodwill, Intangible Assets, _4
Goodwill, Intangible Assets, and Servicing Assets - Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||||
Balance at beginning of period | $ 8,869 | $ 9,631 | $ 11,628 | $ 9,631 | $ 11,628 | |
Additions through originations of servicing assets | 742 | 884 | 749 | 1,849 | ||
Amortization | (627) | (980) | (1,396) | (1,945) | ||
Balance at end of period | 8,984 | $ 8,869 | $ 11,532 | 8,984 | $ 11,532 | |
SBA servicing assets | 7,200 | 7,200 | $ 7,600 | |||
Mortgage related servicing assets | 1,800 | 1,800 | 2,100 | |||
Principal balances of loans serviced for other institutions | $ 961,100 | $ 961,100 | $ 987,400 | |||
SBA Servicing Assets: Weighted-average discount rate | 11.12% | 10.03% | ||||
SBA Servicing Assets: Constant prepayment rate | 12.17% | 12.25% | ||||
Mortgage Servicing Assets: Weighted-average discount rate | 11% | 11.13% | ||||
Mortgage Servicing Assets: Constant prepayment rate | 9.52% | 5.51% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 9,274 | $ 13,448 | $ 19,304 | $ 27,129 | |
Pretax income | $ 34,544 | $ 51,470 | $ 70,438 | $ 104,272 | |
Effective income tax rate | 26.85% | 26.13% | 27.41% | 26.02% | |
Unrecognized tax benefits | $ 807 | $ 807 | $ 469 | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 269 | $ 269 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value, Recurring (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Costs to sell percentage | 8.50% | |
Assets: | ||
Equity investments with readily determinable fair value | $ 44,278 | $ 43,750 |
Recurring basis | ||
Assets: | ||
Equity investments with readily determinable fair value | 4,298 | 4,363 |
Recurring basis | Designated as Hedging Instrument | ||
Liabilities: | ||
Derivative liabilities | 11,800 | 1,379 |
Recurring basis | Interest rate contracts | ||
Assets: | ||
Derivative assets | 59,158 | 54,302 |
Liabilities: | ||
Derivative liabilities | 60,653 | 55,622 |
Recurring basis | Mortgage banking derivatives | ||
Assets: | ||
Derivative assets | 11 | 7 |
Liabilities: | ||
Derivative liabilities | 20 | 17 |
Recurring basis | Other derivatives | ||
Assets: | ||
Derivative assets | 492 | 11,021 |
Liabilities: | ||
Derivative liabilities | 11,800 | 1,379 |
Recurring basis | Collateralized Mortgage Obligations [Member] | ||
Assets: | ||
Investment securities AFS: | 705,576 | 747,719 |
Recurring basis | Mortgage-backed securities: Residential | ||
Assets: | ||
Investment securities AFS: | 393,338 | 420,298 |
Recurring basis | Mortgage-backed securities: Commercial | ||
Assets: | ||
Investment securities AFS: | 432,926 | 391,888 |
Recurring basis | Corporate securities | ||
Assets: | ||
Investment securities AFS: | 19,590 | 19,434 |
Recurring basis | Municipal securities | ||
Assets: | ||
Investment securities AFS: | 219,639 | 308,473 |
Recurring basis | Asset-backed Securities | ||
Assets: | ||
Investment securities AFS: | 139,826 | 149,670 |
Recurring basis | US Treasury Notes Securities | ||
Assets: | ||
Investment securities AFS: | 103,677 | |
Recurring basis | Agency Securities | ||
Assets: | ||
Investment securities AFS: | 3,896 | 3,900 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Equity investments with readily determinable fair value | 4,298 | 4,363 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage banking derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized Mortgage Obligations [Member] | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities: Residential | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities: Commercial | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed Securities | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury Notes Securities | ||
Assets: | ||
Investment securities AFS: | 103,677 | |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency Securities | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Equity investments with readily determinable fair value | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Designated as Hedging Instrument | ||
Liabilities: | ||
Derivative liabilities | 1,351 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Assets: | ||
Derivative assets | 59,158 | 54,302 |
Liabilities: | ||
Derivative liabilities | 60,653 | 55,622 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage banking derivatives | ||
Assets: | ||
Derivative assets | 11 | 7 |
Liabilities: | ||
Derivative liabilities | 20 | 17 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Other derivatives | ||
Assets: | ||
Derivative assets | 492 | 11,021 |
Liabilities: | ||
Derivative liabilities | 11,784 | 1,351 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Collateralized Mortgage Obligations [Member] | ||
Assets: | ||
Investment securities AFS: | 705,576 | 747,719 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities: Residential | ||
Assets: | ||
Investment securities AFS: | 393,338 | 420,298 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities: Commercial | ||
Assets: | ||
Investment securities AFS: | 432,926 | 391,888 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Assets: | ||
Investment securities AFS: | 19,590 | 19,434 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Assets: | ||
Investment securities AFS: | 218,824 | 307,615 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset-backed Securities | ||
Assets: | ||
Investment securities AFS: | 139,826 | 149,670 |
Recurring basis | Significant Other Observable Inputs (Level 2) | US Treasury Notes Securities | ||
Assets: | ||
Investment securities AFS: | 0 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency Securities | ||
Assets: | ||
Investment securities AFS: | 3,896 | 3,900 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Equity investments with readily determinable fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage banking derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Other derivatives | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 16 | 28 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Collateralized Mortgage Obligations [Member] | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities: Residential | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Mortgage-backed securities: Commercial | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Corporate securities | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Assets: | ||
Investment securities AFS: | 815 | 858 |
Recurring basis | Significant Unobservable Inputs (Level 3) | Asset-backed Securities | ||
Assets: | ||
Investment securities AFS: | 0 | 0 |
Recurring basis | Significant Unobservable Inputs (Level 3) | US Treasury Notes Securities | ||
Assets: | ||
Investment securities AFS: | 0 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | Agency Securities | ||
Assets: | ||
Investment securities AFS: | $ 0 | $ 0 |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Costs to sell percentage | 8.50% | |
Discount Rate | Accounts Receivable | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 0.20 | |
Discount Rate | Accounts Receivable | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 0.60 | |
Discount Rate | Inventory | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 0.50 | |
Discount Rate | Inventory | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 0.70 |
Fair Value Measurements - Rollf
Fair Value Measurements - Rollforward of Level 3 Assets (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $ 819 | $ 982 | ||
Change in fair value included in other comprehensive income | (4) | (52) | ||
Ending Balance | 815 | 930 | $ 815 | $ 930 |
Other derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 13 | 35 | 28 | 32 |
Change in fair value included in other comprehensive income | 3 | (7) | (12) | (4) |
Ending Balance | 16 | 28 | 16 | 28 |
Municipal Bonds [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 858 | 943 | ||
Change in fair value included in other comprehensive income | (43) | (13) | ||
Ending Balance | $ 815 | $ 930 | $ 815 | $ 930 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value, Non-Recurring (Details) - Non-recurring basis - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
CRE loans | ||
Assets: | ||
Assets | $ 4,162 | $ 3,475 |
C&I loans | ||
Assets: | ||
Assets | 3,924 | 2,701 |
OREO | ||
Assets: | ||
Assets | 63 | |
Loans held for sale, net | ||
Assets: | ||
Assets | 26,156 | 2,287 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | CRE loans | ||
Assets: | ||
Assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | C&I loans | ||
Assets: | ||
Assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OREO | ||
Assets: | ||
Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale, net | ||
Assets: | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | CRE loans | ||
Assets: | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | C&I loans | ||
Assets: | ||
Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | OREO | ||
Assets: | ||
Assets | 0 | |
Significant Other Observable Inputs (Level 2) | Loans held for sale, net | ||
Assets: | ||
Assets | 26,156 | 2,287 |
Significant Unobservable Inputs (Level 3) | CRE loans | ||
Assets: | ||
Assets | 4,162 | 3,475 |
Significant Unobservable Inputs (Level 3) | C&I loans | ||
Assets: | ||
Assets | 3,924 | 2,701 |
Significant Unobservable Inputs (Level 3) | OREO | ||
Assets: | ||
Assets | 63 | |
Significant Unobservable Inputs (Level 3) | Loans held for sale, net | ||
Assets: | ||
Assets | $ 0 | $ 0 |
Fair Value Measurements - Total
Fair Value Measurements - Total Net Gains Losses on Assets Measured at Fair Value on a Non-Recurring Basis (Details) - Change during period - Non-recurring basis - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Loans Receivable | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total gains (losses), fair value | $ (2,854) | $ 0 | $ (2,854) | $ 0 |
Loans Receivable | CRE loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total gains (losses), fair value | (323) | (642) | (360) | (762) |
Loans Receivable | C&I loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total gains (losses), fair value | (2,968) | (11,472) | (2,968) | (11,861) |
OREO | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total gains (losses), fair value | $ 0 | $ 0 | $ 0 | $ (271) |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial Assets: | ||
Equity investments without readily determinable fair values | $ 40,000 | $ 39,387 |
Financial Liabilities: | ||
Amortized Cost | 258,068 | 263,912 |
Fair Value | 237,621 | 250,518 |
Level 1 | Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 654,044 | 1,928,967 |
Financial Liabilities: | ||
Convertible notes | 444 | 444 |
Level 1 | Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 654,044 | 1,928,967 |
Financial Liabilities: | ||
Convertible notes | 423 | 451 |
Level 2/3 | Carrying Amount | ||
Financial Assets: | ||
Accrued interest receivable | 57,645 | 61,720 |
Level 2/3 | Estimated Fair Value | ||
Financial Assets: | ||
Accrued interest receivable | 57,645 | 61,720 |
Level 2 | Carrying Amount | ||
Financial Assets: | ||
Equity investments without readily determinable fair values | 39,980 | |
Loans held for sale | 68,316 | 3,408 |
Customers’ liabilities on acceptances | 854 | 471 |
Financial Liabilities: | ||
Noninterest bearing deposits | 3,671,192 | 3,914,967 |
Money market, interest bearing demand and savings deposits | 4,907,860 | 4,872,029 |
Time deposits | 6,132,419 | 5,966,757 |
FHLB and FRB borrowings, Fair Value Disclosure | 170,000 | |
FHLB and FRB borrowings | 1,795,726 | |
Subordinated debentures | 108,474 | 107,825 |
Accrued interest payable | 86,779 | 168,174 |
Acceptances outstanding | 854 | 471 |
Level 2 | Estimated Fair Value | ||
Financial Assets: | ||
Equity investments without readily determinable fair values | 39,980 | 39,387 |
Loans held for sale | 71,014 | 3,419 |
Customers’ liabilities on acceptances | 854 | 471 |
Financial Liabilities: | ||
Noninterest bearing deposits | 3,671,192 | 3,914,967 |
Money market, interest bearing demand and savings deposits | 4,907,860 | 4,872,029 |
Time deposits | 6,133,189 | 5,974,125 |
FHLB and FRB borrowings, Fair Value Disclosure | 170,257 | |
FHLB and FRB borrowings | 1,795,820 | |
Subordinated debentures | 102,980 | 99,358 |
Accrued interest payable | 86,779 | 168,174 |
Acceptances outstanding | 854 | 471 |
Level 3 | Carrying Amount | ||
Financial Assets: | ||
Loans receivable, net | 13,410,983 | 13,694,925 |
Servicing assets, net | 8,984 | 9,631 |
Level 3 | Estimated Fair Value | ||
Financial Assets: | ||
Loans receivable, net | 13,000,721 | 13,270,444 |
Servicing assets, net | $ 15,424 | $ 14,853 |
Stockholders' Equity - Discussi
Stockholders' Equity - Discussion of Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||||||||
Total stockholders’ equity | $ 2,111,282,000 | $ 2,067,998,000 | $ 2,111,282,000 | $ 2,067,998,000 | $ 2,112,270,000 | $ 2,121,243,000 | $ 2,058,580,000 | $ 2,019,328,000 |
Share repurchase program, authorized amount | 50,000,000 | 50,000,000 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 35,300,000 | 35,300,000 | ||||||
Repurchase of treasury stock | $ 0 | |||||||
Dividends paid (in dollars per share) | $ 0.14 | $ 0.14 | $ 0.28 | $ 0.28 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | $ (3,800,000) | $ 4,100,000 | $ (7,600,000) | $ (6,900,000) | ||||
Reclassification from AOCI, Debt Securities transferred from AFS to HTM amortization of unrealized losses, before tax | $ 978,000 | $ 806,000 | $ 1,800,000 | $ 1,800,000 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 2,112,270,000 | $ 2,058,580,000 | $ 2,121,243,000 | $ 2,019,328,000 |
Unrealized net (losses) gains on securities available for sale | (9,381,000) | (31,071,000) | (23,115,000) | 144,000 |
Unrealized net (losses) gains on interest rate contracts used for cash flow hedges | (2,750,000) | 13,653,000 | (10,936,000) | 7,715,000 |
Reclassification adjustments for net gains realized in net income | (3,241,000) | (3,322,000) | (6,172,000) | (5,060,000) |
Tax effect | 4,520,000 | 6,113,000 | 11,831,000 | (826,000) |
Other comprehensive (loss) income, net of tax | (10,852,000) | (14,627,000) | (28,392,000) | 1,973,000 |
Balance at end of period | 2,111,282,000 | 2,067,998,000 | 2,111,282,000 | 2,067,998,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (3,800,000) | 4,100,000 | (7,600,000) | (6,900,000) |
Reclassification from AOCI, Debt Securities transferred from AFS to HTM amortization of unrealized losses, before tax | 978,000 | 806,000 | 1,800,000 | 1,800,000 |
Net gains on sales of securities available for sale | 425,000 | 0 | 425,000 | 0 |
Accumulated other comprehensive loss, net | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (222,278,000) | (214,257,000) | (204,738,000) | (230,857,000) |
Other comprehensive (loss) income, net of tax | (10,852,000) | (14,627,000) | (28,392,000) | 1,973,000 |
Balance at end of period | $ (233,130,000) | $ (228,884,000) | $ (233,130,000) | $ (228,884,000) |
Stock-Based Compensation - Plan
Stock-Based Compensation - Plan Description (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 23, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated share-based compensation expense | $ 1,700 | $ 3,400 | $ 4,400 | $ 5,700 | |
Tax benefit from compensation expense | $ 466 | $ 884 | $ 1,200 | $ 1,500 | |
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 198,136 | ||||
ISOs, SARs, and NQSOs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Contractual term | 10 years | ||||
ISOs, SARs, and NQSOs | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
ISOs, SARs, and NQSOs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Restricted stock, performance shares and performance units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock, restriction period | 1 year | ||||
Time-based vesting of grants | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock, restriction period | 3 years | ||||
2024 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares initially available for grant to participants (in shares) | 4,500,000 | ||||
Number of shares available for future grant (in shares) | 4,500,000 | 4,500,000 | |||
Contractual term | 10 years | ||||
Purchase price of common stock, percent | 100% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Tax benefit from compensation expense | $ 466 | $ 884 | $ 1,200 | $ 1,500 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding - beginning of period (in shares) | 629,367 | |||
Granted (in shares) | 0 | |||
Exercised (in shares) | 0 | |||
Expired (in shares) | (198,136) | |||
Forfeited (in shares) | 0 | |||
Outstanding - end of period (in shares) | 431,231 | 431,231 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Outstanding - beginning of period, weighted-average exercise price per share (usd per share) | $ 16.61 | |||
Granted - weighted average exercise price (usd per share) | 0 | |||
Exercised - weighted average exercise price (usd per share) | 0 | |||
Expired - weighted-average exercise price per share (usd per share) | 15.79 | |||
Forfeited - weighted average exercise price (usd per share) | 0 | |||
Outstanding - end of period, weighted-average exercise price per share (usd per share) | $ 16.99 | $ 16.99 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Options exercisable - end of period (in shares) | 431,231 | 431,231 | ||
Options exercisable, weighted-average exercise price per share (usd per share) | $ 16.99 | $ 16.99 | ||
Outstanding, weighted-average remaining contractual life (years) | 2 years 29 days | |||
Options exercisable, weighted-average remaining contractual life (years) | 2 years 29 days | |||
Outstanding, aggregate intrinsic value | $ 0 | $ 0 | ||
Options exercisable, aggregate intrinsic value | $ 0 | $ 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock and Performance Unit Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Allocated share-based compensation expense | $ 1,700,000 | $ 3,400,000 | $ 4,400,000 | $ 5,700,000 |
Tax benefit from compensation expense | 466,000 | $ 884,000 | 1,200,000 | 1,500,000 |
Unrecognized compensation expense related to non-vested stock option grants | $ 0 | $ 0 | ||
Restricted stock and performance units | ||||
Number of Shares | ||||
Outstanding - beginning of period (in shares) | 2,043,621 | |||
Granted (in shares) | 34,634 | |||
Vested (in shares) | (916,262) | |||
Forfeited (in shares) | (109,791) | |||
Outstanding - end of period (in shares) | 1,052,202 | 1,052,202 | ||
Weighted-Average Grant Date Fair Value | ||||
Outstanding - beginning of period (in dollars per share) | $ 12.09 | |||
Granted (in dollars per share) | 15.49 | |||
Vested (in dollars per share) | 12.58 | |||
Forfeited (in dollars per share) | 13.82 | |||
Outstanding - end of period (in dollars per share) | $ 11.60 | $ 11.60 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Equity instruments other than options, vested in period | $ 10,000,000 | $ 8,000,000 | ||
Total compensation cost not yet recognized, period for recognition | 1 year 3 months 21 days | |||
Unrecognized compensation expense related to non-vested equity instruments other than options | $ 6,400,000 | $ 6,400,000 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Bank Subsidiary | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 capital, Actual Amount | $ 1,961,022 | $ 1,940,303 |
Common equity Tier 1 capital, Actual Ratio | 0.1323 | 0.1275 |
Total capital (to risk-weighted assets), Amount | ||
Total capital, Actual | $ 2,111,339 | $ 2,086,762 |
Tier I capital (to risk-weighted assets), Amount | ||
Tier 1 capital, Actual | 1,961,022 | 1,940,303 |
Tier I capital (to average assets), Amount | ||
Tier 1 capital, Actual | $ 1,961,022 | $ 1,940,303 |
Total capital and Tier I capital (to risk-weighted assets), Ratio | ||
Total capital (to Risk Weighted Assets), Actual | 0.1425 | 0.1371 |
Total capital (to Risk Weighted Assets), Required For Capital Adequacy Purposes | 0.0800 | 0.0800 |
Tier 1 capital (to Risk Weighted Assets), Actual | 0.1323 | 0.1275 |
Tier 1 capital (to Risk Weighted Assets), Required For Capital Adequacy Purposes | 0.0600 | 0.0600 |
Tier 1 capital (to Risk Weighted Assets), Required To Be Well Capitalized Under Prompt Corrective Action Provisions | 0.0800 | 0.0800 |
Tier I capital (to average assets), Ratio | ||
Tier I Capital (to Average Assets), Actual (Leverage) | 0.1146 | 0.0994 |
Tier I Capital (to Average Assets), Minimum For Capital Adequacy Purposes (Leverage) | 0.0400 | 0.0400 |
Total capital (to Risk Weighted Assets), Required To Be Well Capitalized Under Prompt Corrective Action Provisions | 0.1000 | 0.1000 |
Tier I Capital (to Average Assets), Minimum to be Well Capitalized Under Prompt Corrective Action Provisions (Leverage) | 0.0500 | 0.0500 |
Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 capital, Actual Amount | $ 1,882,623 | $ 1,869,774 |
Common equity Tier 1 capital, Actual Ratio | 0.1270 | 0.1228 |
Total capital (to risk-weighted assets), Amount | ||
Total capital, Actual | $ 2,137,513 | $ 2,120,157 |
Tier I capital (to risk-weighted assets), Amount | ||
Tier 1 capital, Actual | 1,987,196 | 1,973,698 |
Tier I capital (to average assets), Amount | ||
Tier 1 capital, Actual | $ 1,987,196 | $ 1,973,698 |
Total capital and Tier I capital (to risk-weighted assets), Ratio | ||
Total capital (to Risk Weighted Assets), Actual | 0.1442 | 0.1392 |
Total capital (to Risk Weighted Assets), Required For Capital Adequacy Purposes | 0.0800 | 0.0800 |
Total capital (to Risk Weighted assets), Minimum Capital Adequacy With Capital Conservation Buffer | 10.50% | 10.50% |
Tier 1 capital (to Risk Weighted Assets), Actual | 0.1340 | 0.1296 |
Tier 1 capital (to Risk Weighted Assets), Required For Capital Adequacy Purposes | 0.0600 | 0.0600 |
Tier 1 capital (to Risk Weighted Assets), Minimum Capital Adequacy With Capital Conservation Buffer | 8.50% | 8.50% |
Tier I capital (to average assets), Ratio | ||
Tier I Capital (to Average Assets), Actual (Leverage) | 0.1161 | 0.1011 |
Tier I Capital (to Average Assets), Minimum For Capital Adequacy Purposes (Leverage) | 0.0400 | 0.0400 |
Bank | ||
Total capital and Tier I capital (to risk-weighted assets), Ratio | ||
Total capital (to Risk Weighted assets), Minimum Capital Adequacy With Capital Conservation Buffer | 10.50% | 10.50% |
Tier 1 capital (to Risk Weighted Assets), Minimum Capital Adequacy With Capital Conservation Buffer | 8.50% | 8.50% |
Common Equity Tier 1 | Company | ||
Total capital and Tier I capital (to risk-weighted assets), Ratio | ||
Tier 1 capital (to Risk Weighted Assets), Required For Capital Adequacy Purposes | 0.0450 | 0.0450 |
Tier 1 capital (to Risk Weighted Assets), Minimum Capital Adequacy With Capital Conservation Buffer | 7% | 7% |
Common Equity Tier 1 | Bank | ||
Total capital and Tier I capital (to risk-weighted assets), Ratio | ||
Tier 1 capital (to Risk Weighted Assets), Minimum Capital Adequacy With Capital Conservation Buffer | 7% | 7% |
Common equity tier 1 capital | Bank Subsidiary | ||
Total capital and Tier I capital (to risk-weighted assets), Ratio | ||
Tier 1 capital (to Risk Weighted Assets), Required For Capital Adequacy Purposes | 0.0450 | 0.0450 |
Tier 1 capital (to Risk Weighted Assets), Required To Be Well Capitalized Under Prompt Corrective Action Provisions | 0.0650 | 0.0650 |
Revenue Recognition - Service C
Revenue Recognition - Service Charged on Deposit Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | $ 2,681 | $ 2,325 | $ 5,268 | $ 4,546 |
Wire transfer and foreign currency fees | 974 | 850 | 1,786 | 1,623 |
Wire transfer fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Wire transfer and foreign currency fees | 495 | 460 | 758 | 867 |
Foreign exchange fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Wire transfer and foreign currency fees | 479 | 390 | 1,028 | 756 |
Noninterest Bearing Deposits | ||||
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | 2,650 | 2,300 | 5,210 | 4,497 |
Noninterest Bearing Deposits | Monthly service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | 244 | 241 | 488 | 486 |
Noninterest Bearing Deposits | Customer analysis charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | 1,526 | 1,259 | 2,949 | 2,385 |
Noninterest Bearing Deposits | NSF charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | 805 | 711 | 1,619 | 1,446 |
Noninterest Bearing Deposits | Other service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | 75 | 89 | 154 | 180 |
Interest-bearing Deposits | Monthly service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Service fees on deposit accounts | $ 31 | $ 25 | $ 58 | $ 49 |