Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 13, 2018 | |
Entity Registrant Name | Mercantil Bank Holding Corp | |
Entity Central Index Key | 1,734,342 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Class A | ||
Entity Common Stock, Shares Outstanding | 24,737,470 | |
Class B | ||
Entity Common Stock, Shares Outstanding | 17,751,053 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 37,507 | $ 44,531 |
Interest earning deposits with banks | 66,072 | 108,914 |
Cash and cash equivalents | 103,579 | 153,445 |
Securities | ||
Available for sale | 1,628,121 | 1,687,157 |
Held to maturity | 86,324 | 89,860 |
Federal Reserve Bank and Federal Home Loan Bank stock | 77,414 | 69,934 |
Loans held for sale | 0 | 5,611 |
Loans, gross | 6,159,279 | 6,066,225 |
Less: Allowance for loan losses | 69,471 | 72,000 |
Loans, net | 6,089,808 | 5,994,225 |
Bank owned life insurance | 204,690 | 200,318 |
Premises and equipment, net | 122,350 | 129,357 |
Deferred tax assets, net | 22,787 | 14,583 |
Goodwill | 19,193 | 19,193 |
Accrued interest receivable and other assets | 81,536 | 73,084 |
Total assets | 8,435,802 | 8,436,767 |
Deposits | ||
Noninterest bearing | 843,768 | 895,710 |
Interest bearing | 1,348,967 | 1,496,749 |
Savings and money market | 1,617,645 | 1,684,080 |
Time | 2,379,123 | 2,246,434 |
Total deposits | 6,189,503 | 6,322,973 |
Advances from the Federal Home Loan Bank and other borrowings | 1,338,000 | 1,173,000 |
Junior subordinated debentures held by trust subsidiaries | 118,110 | 118,110 |
Accounts payable, accrued liabilities and other liabilities | 62,514 | 69,234 |
Total liabilities | 7,708,127 | 7,683,317 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity (Note 1) | ||
Additional paid in capital | 367,505 | 367,505 |
Retained earnings | 379,232 | 387,829 |
Accumulated other comprehensive loss | (23,311) | (6,133) |
Total stockholders' equity | 727,675 | 753,450 |
Total liabilities and stockholders' equity | 8,435,802 | 8,436,767 |
Class A common stock | ||
Stockholders’ equity (Note 1) | ||
Common stock | 2,474 | 2,474 |
Class B common stock | ||
Stockholders’ equity (Note 1) | ||
Common stock | $ 1,775 | $ 1,775 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 24,737,470 | 24,737,470 |
Common stock, shares outstanding (in shares) | 24,737,470 | 24,737,470 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 17,751,053 | 17,751,053 |
Common stock, shares outstanding (in shares) | 17,751,053 | 17,751,053 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income | ||||
Loans | $ 66,776 | $ 58,977 | $ 188,894 | $ 162,847 |
Investment securities | 12,183 | 11,958 | 36,633 | 37,039 |
Interest earning deposits with banks | 666 | 491 | 1,945 | 1,228 |
Total interest income | 79,625 | 71,426 | 227,472 | 201,114 |
Interest expense | ||||
Interest bearing demand deposits | 211 | 100 | 413 | 284 |
Savings and money market deposits | 3,477 | 2,147 | 9,165 | 6,528 |
Time deposits | 11,531 | 7,011 | 30,403 | 18,864 |
Advances from the Federal Home Loan Bank | 6,716 | 4,765 | 19,217 | 13,359 |
Junior subordinated debentures | 2,057 | 1,880 | 6,017 | 5,559 |
Securities sold under agreements to repurchase | 0 | 457 | 2 | 1,662 |
Total interest expense | 23,992 | 16,360 | 65,217 | 46,256 |
Net interest income | 55,633 | 55,066 | 162,255 | 154,858 |
Provision for loan losses | 1,600 | 1,155 | 1,750 | 8,898 |
Net interest income after provision for loan losses | 54,033 | 53,911 | 160,505 | 145,960 |
Noninterest income | ||||
Deposits and service fees | 4,269 | 4,841 | 13,322 | 14,615 |
Brokerage, advisory and fiduciary activities | 4,148 | 5,052 | 12,989 | 15,210 |
Change in cash surrender value of bank owned life insurance | 1,454 | 1,465 | 4,372 | 3,952 |
Cards and trade finance servicing fees | 1,145 | 1,264 | 3,380 | 3,449 |
Gain on early extinguishment of advances from the Federal Home Loan Bank | 0 | 0 | 882 | 0 |
Data processing, rental income and fees for other services to related parties | 523 | 1,024 | 2,017 | 2,576 |
Securities (losses) gains, net | (15) | (1,842) | 1 | (1,687) |
Other noninterest income | 1,426 | 12,286 | 4,918 | 17,951 |
Total noninterest income | 12,950 | 24,090 | 41,881 | 56,066 |
Noninterest expense | ||||
Salaries and employee benefits | 33,967 | 34,148 | 102,940 | 98,122 |
Occupancy and equipment | 4,044 | 4,217 | 11,819 | 12,978 |
Professional and other services fees | 4,268 | 3,273 | 16,099 | 8,674 |
FDIC assessments and insurance | 1,578 | 1,611 | 4,493 | 5,754 |
Telecommunication and data processing | 3,043 | 2,531 | 9,138 | 6,700 |
Depreciation and amortization | 1,997 | 2,321 | 6,083 | 6,787 |
Other operating expenses | 3,145 | 4,121 | 9,753 | 13,020 |
Total noninterest expenses | 52,042 | 52,222 | 160,325 | 152,035 |
Net income before income tax | 14,941 | 25,779 | 42,061 | 49,991 |
Income tax expense | (3,390) | (8,437) | (10,658) | (15,752) |
Net income | 11,551 | 17,342 | 31,403 | 34,239 |
Other comprehensive (loss) income, net of tax | ||||
Net unrealized holding (losses) gains on securities available for sale arising during the period | (4,938) | 1,898 | (25,369) | 9,450 |
Net unrealized holding gains (losses) on cash flow hedges arising during the period | 1,840 | (313) | 8,209 | (2,292) |
Reclassification adjustment for net (gains) losses included in net income | (160) | 1,481 | (18) | 2,118 |
Other comprehensive (loss) income | (3,258) | 3,066 | (17,178) | 9,276 |
Comprehensive income | 8,293 | 20,408 | 14,225 | 43,515 |
Basic and diluted earnings per share: | ||||
Net income available to common shareholders | $ 11,551 | $ 17,342 | $ 31,403 | $ 34,239 |
Basic and diluted weighted average shares outstanding (in shares) | 42,489 | 42,489 | 42,489 | 42,489 |
Basic and diluted income per common share (in dollars per share) | $ 0.27 | $ 0.41 | $ 0.74 | $ 0.81 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A | Class B | Common StockClass A | Common StockClass B | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Shares Outstanding (in shares) at Dec. 31, 2016 | 24,737,470 | 17,751,053 | ||||||
Shares Issued (in shares) at Dec. 31, 2016 | 24,737,470 | 17,751,053 | ||||||
Beginning balance at Dec. 31, 2016 | $ 704,737 | $ 2,474 | $ 1,775 | $ 367,505 | $ 343,678 | $ (10,695) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 34,239 | 34,239 | ||||||
Other comprehensive) income (loss | 9,276 | 9,276 | ||||||
Shares Outstanding (in shares) at Sep. 30, 2017 | 24,737,470 | 17,751,053 | ||||||
Shares Issued (in shares) at Sep. 30, 2017 | 24,737,470 | 17,751,053 | ||||||
Ending balance at Sep. 30, 2017 | 748,252 | $ 2,474 | $ 1,775 | 367,505 | 377,917 | (1,419) | ||
Shares Outstanding (in shares) at Dec. 31, 2017 | 24,737,470 | 17,751,053 | 24,737,470 | 17,751,053 | ||||
Shares Issued (in shares) at Dec. 31, 2017 | 24,737,470 | 17,751,053 | ||||||
Beginning balance at Dec. 31, 2017 | 753,450 | $ 2,474 | $ 1,775 | 367,505 | 387,829 | (6,133) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 31,403 | 31,403 | ||||||
Other comprehensive) income (loss | (17,178) | (17,178) | ||||||
Shares Outstanding (in shares) at Sep. 30, 2018 | 24,737,470 | 17,751,053 | 24,737,470 | 17,751,053 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends (Note 1) | (40,000) | (40,000) | ||||||
Shares Issued (in shares) at Sep. 30, 2018 | 24,737,470 | 17,751,053 | ||||||
Ending balance at Sep. 30, 2018 | $ 727,675 | $ 2,474 | $ 1,775 | $ 367,505 | $ 379,232 | $ (23,311) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 31,403 | $ 34,239 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for loan losses | 1,750 | 8,898 |
Net premium amortization on securities | 12,855 | 14,505 |
Depreciation and amortization | 6,083 | 6,787 |
Increase in cash surrender value of bank owned life insurance | (4,372) | (3,952) |
Net gain on sale of premises and equipment | 0 | (11,321) |
Deferred taxes, securities net gains or losses and others | (3,143) | 2,151 |
Net changes in operating assets and liabilities | ||
Accrued interest receivable and other assets | 2,543 | (17,056) |
Account payable, accrued liabilities and other liabilities | (6,430) | 54,343 |
Net cash provided by operating activities | 40,689 | 88,594 |
Purchases of investment securities: | ||
Available for sale | (166,703) | (183,943) |
Held to maturity securities | 0 | (42,770) |
Federal Reserve Bank and Federal Home Loan Bank stock | (24,055) | (25,744) |
Maturities, sales and calls of investment securities: | ||
Available for sale | 178,981 | 596,006 |
Held to maturity | 3,335 | 116 |
Federal Reserve Bank and Federal Home Loan Bank stock | 16,576 | 22,950 |
Net increase in loans | (153,019) | (413,788) |
Proceeds from loan portfolio sales | 60,856 | 55,691 |
Purchase of bank owned life insurance | 0 | (30,000) |
Purchases of premises and equipment, and others | (5,556) | |
Proceeds from sales of premises and equipment, and others | 26,457 | |
Net proceeds from sale of subsidiary | 7,500 | 0 |
Net cash (used in) provided by investing activities | (82,085) | 4,975 |
Cash flows from financing activities | ||
Net decrease in demand, savings and money market accounts | (266,159) | (403,547) |
Net increase in time deposits | 132,689 | 324,429 |
Net decrease in securities sold under agreements to repurchase | 0 | (15,000) |
Proceeds from Advances from the Federal Home Loan Bank and other banks | 941,000 | 1,089,500 |
Repayments of Advances from the Federal Home Loan Bank and other banks | (776,000) | (1,027,500) |
Dividend paid | (40,000) | 0 |
Net cash used in financing activities | (8,470) | (32,118) |
Net (decrease) increase in cash and cash equivalents | (49,866) | 61,451 |
Cash and cash equivalents | ||
Beginning of period | 153,445 | 134,989 |
End of period | 103,579 | 196,440 |
Supplemental disclosures of cash flow information | ||
Cash paid for Interest | 63,987 | 44,405 |
Cash paid for Income taxes | $ 18,649 | $ 7,931 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Mercantil Bank Holding Corporation (the “Company”), is a Florida corporation incorporated in 1985, which has operated since January 1987. The Company is a bank holding company registered under the Bank Holding Company Act of 1956, as a result of its 100% indirect ownership of Amerant Bank, N.A. (the “Bank”). The Company’s principal office is in the City of Coral Gables, Florida. The Bank is a member of the Federal Reserve Bank of Atlanta (“Federal Reserve Bank”) and the Federal Home Loan Bank of Atlanta (“FHLB”). The Bank has two principal subsidiaries, Amerant Investments, Inc. a securities broker-dealer, and Amerant Trust, N.A. As of December 31, 2017 the Company was a wholly owned subsidiary of Mercantil Servicios Financieros, C.A. (“MSF”). On March 15, 2018, MSF transferred ownership of 100% of the Company Shares to a non-discretionary common law, grantor trust governed by the laws of the State of Florida (the “Distribution Trust”). The Company and MSF are parties to an Amended and Restated Separation and Distribution Agreement dated as of June 12, 2018 that provided for the spin-off (the “Spin-off”) of the Company from MSF. On February 6, 2018, the Company filed amended and restated articles of incorporation with the Secretary of State of the State of Florida. Pursuant to this action, the total number of Class A and Class B common shares (“Company Shares”), which the Company is authorized to issue is 400,000,000 and 100,000,000 , respectively. In addition, e ffective on February 6, 2018, the Company exchanged 100% of the 298,570,328 Class A and 215,188,764 Class B Company Shares outstanding, for 74,212,408 Class A and 53,253,157 Class B Company Shares. This facilitated the distribution of one share of Class A and Class B Company Shares for each outstanding share of MSF Class A and Class B common stock, respectively. See Note 22 to the audited consolidated financial statements as of December 31, 2017, which are included in the Company’s definitive Information Statement filed with the Securities and Exchange Commission (“SEC”) as Exhibit 99.1 to its Current Report on Form 8-K on August 10, 2018 (the “Information Statement”), and within the Company’s preliminary Registration Statement on Form S-1 filed with the SEC on October 5, 2018 (the “Registration Statement”). On March 13, 2018, the Company paid a special, one-time, cash dividend of $40.0 million to MSF, or $0.94 per common share. The Distribution Trust was established by MSF and the Company pursuant to a Distribution Trust Agreement, as amended, with a Texas trust company, unaffiliated with MSF, as trustee. The Distribution Trust held 80.1% of the Company Shares (the “Distributed Shares”) for the benefit of MSF’s Class A and Class B common shareholders of record (“Record Holders”) on April 2, 2018 (“Record Date”). The remaining 19.9% of all Company Shares of each Class held in the Distribution Trust for the benefit of MSF and its subsidiaries are the “Retained Shares.” The Distributed Shares were distributed to MSF shareholders on August 10, 2018 (the “Distribution”). As a result of the Distribution, the Company is a separate company whose common stock has been listed on the Nasdaq Stock Market under the symbols “MBNAA” (for the Company’s Class A common stock) and “MBNAB” (for the Company’s Class B common stock). The Distribution Trust continues to hold the Retained Shares pending their sale or disposition by MSF or, in certain circumstances where there is a change in control of MSF, their contribution by MSF to the Company. MSF, the Company and various individuals as Voting Trustees, entered into a Voting Trust Agreement (the “Voting Trust”) in October 2008 to promote the interests of the Bank and expand its business in the United States, and to provide continued appropriate corporate governance of the Bank upon the occurrence of certain changes or threatened changes in control of MSF not approved by MSF’s board of directors. On July 24, 2018, the Voting Trust was terminated. The Company is now the sole shareholder of Mercantil Florida Bancorp, Inc. and the indirect owner of 100% of the Bank. On August 8, 2018, the Company became subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Securities Act”). On October 23, 2018, the Company completed a 1-for-3 reverse stock split of the Company's issued and outstanding shares of its Class A and Class B common stock (the “Stock Split”). As a result of the Stock Split, every three shares of issued and outstanding Class A common stock were combined into one issued and outstanding share of Class A common stock, and every three shares of issued and outstanding Class B common stock were combined into one issued and outstanding share of Class B common stock, without any change in the par value per share. Fractional shares were issued and no cash was paid by the Company in respect of fractional shares or otherwise in the Stock Split. The Stock Split reduced the number of shares of Class A common stock issued and outstanding from 74,212,408 shares to approximately 24,737,470 shares, and reduced the number of shares of Class B common stock issued and outstanding from 53,253,157 shares to approximately 17,751,053 shares. On October 24, 2018, the Company announced it will be rebranding as “Amerant.” The Company’s principal subsidiaries have adopted this name and logo. The Company will use the Amerant brand and will officially change its corporate name at its annual shareholders’ meeting in 2019. As a result of the rebranding and in connection with the Stock Split, the Company's Class A and Class B common stock began trading on a Stock Split-adjusted basis on October 24, 2018 under the symbols “AMTB” (for the Company’s Class A common stock) and “AMTBB” (for the Company’s Class B common stock). All references made to share or per share amounts in these unaudited interim consolidated financial statements for the periods presented and applicable disclosures have been retroactively adjusted to reflect the Stock Split. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and footnotes required for a fair statement of financial position, results of operations and cash flows in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). These unaudited interim consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. These adjustments are of a normal, recurring nature. Interim period operating results may not be indicative of the operating results for a full year or any other period. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of December 31, 2017 and 2016 and for each of the three years in the period ended December 31, 2017 and the accompanying footnote disclosures for the Company, which are included in the Information Statement and within the Registration Statement. The effects of significant subsequent events, if any, have been recognized or disclosed in these unaudited interim consolidated financial statements. Subsequent events have been evaluated through November 13, 2018 , the date when these consolidated financial statements were available to be issued. For a complete summary of our significant accounting policies, please see Note 1 to the audited consolidated financial statements as of December 31, 2017 and 2016 and for each of the three years in the period ended December 31, 2017, which are included in the Information Statement and within the Registration Statement. Estimates The preparation of financial statements in conformity with U.S. 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 periods. Significant estimates made by management include: (i) the determination of the allowance for loan losses; (ii) the fair values of securities, bank owned life insurance and the reporting unit to which goodwill has been assigned during the annual goodwill impairment test; and (iii) the determination of whether the amount of deferred tax assets will more likely than not be realized. Management believes that these estimates are appropriate. Actual results could differ from these estimates. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Issued and Adopted Removal of Outdated OCC Guidance In May 2018, the Financial Accounting Standards Board (“FASB”) issued amendments which removed outdated guidance related to the Office of the Comptroller of the Currency (“OCC”)’s Banking Circular 202, Accounting for Net Deferred Tax Changes . This guidance, which limited the net deferred tax debits that can be carried on a bank’s statement of condition for regulatory purposes, has been rescinded by the OCC. These amendments became effective immediately upon issuance and had no impact to the Company’s unaudited interim consolidated financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued guidance that allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate pursuant to H.R. 1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal year 2018, known as the Tax Cuts and Jobs Act of 2017 (“the 2017 Tax Act”). This guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for (1) public business entities for reporting periods for which financial statements have not been issued, and (2) for other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company early-adopted this guidance and reclassified the effect of remeasuring net deferred tax assets related to items within AOCI to retained earnings resulting in a $1.1 million increase in retained earnings in 2017. Issued and Not Yet Adopted Emerging Growth Company Section 107 of the JOBS Act provides that, as an “emerging growth company” we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period, for as long as it is available and consistent with bank regulatory requirements. Changes to the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued amendments to the disclosure requirements for fair value measurements. The amendments modify the fair value measurements disclosures with the primary focus to improve effectiveness of disclosures in the notes to the financial statements that is most important to the users. The new guidance modifies the required disclosures related to the valuation techniques and inputs used, uncertainty in measurement, and changes in measurements applied. These amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact this new guidance may have on the Company’s consolidated financial statements and footnote disclosures. Narrow Amendments to Pending New Guidance on Leases In July 2018, the FASB issued amendments to narrow aspects of the new guidance issued in February 2016 for the recognition and measurement of all leases which is not yet effective. These amendments, and the related pending new guidance, are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, for private companies, and for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years, for public companies. Early adoption is permitted. The Company is in the process of determining whether these amendments and the related new pending guidance will have a material effect on its consolidated financial statements, when adopted. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued targeted amendments to the guidance for recognition, presentation and disclosure of hedging activities. These targeted amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments also simplify the application of hedge accounting guidance. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years for public business entities. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is in the process of determining whether the adoption of this guidance will have a material impact on the Company’s consolidated financial statements and disclosures. Statement of Cash Flows Classification of Certain Receipts and Payments In August 2016 , the FASB issued specific guidance for the classification of a number of cash receipts and payments, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims and proceeds from the settlement of bank-owned life insurance policies. The new guidance is effective for years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, for private companies, and for years beginning after December 15, 2017 and interim periods within those fiscal years for public companies. Early adoption is permitted. The Company is in the process of understanding whether this new guidance will have a material impact on its consolidated statement of cash flows when adopted. Accounting for Credit Losses on Financial Instruments In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The standard is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, for private companies, and for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, for public companies. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is in the process of determining whether these changes will have a material impact on its consolidated financial position or results of operations or disclosures. Accounting for Leases In February 2016, the FASB issued guidance for the recognition and measurement of all leases. The new guidance requires lessees to recognize a right-of-use asset and a lease liability for most leases within the scope of the guidance. There were no significant changes to the guidance for lessors. The standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, for private companies, and for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years, for public companies. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition at the beginning of the earliest comparative period presented, and provides for certain practical expedients. The Company is in the process of determining whether this new guidance will have a material impact on its consolidated financial position, results of operations and disclosures, when adopted. Recognition and Measurement of Financial Instruments In January 2016, the FASB issued changes to the guidance on the recognition and measurement of financial instruments. The changes include, among others, the removal of the available-for-sale category for equity securities and updates to certain disclosure requirements. This standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, for private companies, and for fiscal periods beginning December 15, 2017, and interim periods within those fiscal years, for public companies, with limited early adoption permitted. The Company is in the process of determining whether these changes will have a material impact on its consolidated financial position or results of operations or disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued a common revenue standard for recognizing revenue from contracts with customers. This new standard establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended effective date is annual reporting periods beginning after December 15, 2018, and interim periods beginning after December 15, 2019, for private companies, and for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period, for public companies. Earlier adoption continues to be permitted. The Company is in the process of determining whether the new guidance will have a material impact on its consolidated financial position or results of operations. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Amortized cost and approximate fair values of securities available for sale are summarized as follows: September 30, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 837,796 $ 1,008 $ (34,130 ) $ 804,674 Corporate debt securities 369,496 2,332 (3,417 ) 368,411 U.S. government agency debt securities 266,758 210 (6,197 ) 260,771 Municipal bonds 176,825 10 (5,980 ) 170,855 Mutual funds 24,265 — (1,355 ) 22,910 Commercial paper 500 — — 500 $ 1,675,640 $ 3,560 $ (51,079 ) $ 1,628,121 December 31, 2017 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 889,396 $ 1,784 $ (15,514 ) $ 875,666 Corporate debt securities 310,781 3,446 (835 ) 313,392 U.S. government agency debt securities 293,908 870 (3,393 ) 291,385 Municipal bonds 179,524 2,343 (1,471 ) 180,396 Mutual funds 24,262 — (645 ) 23,617 U.S. treasury securities 2,700 2 (1 ) 2,701 $ 1,700,571 $ 8,445 $ (21,859 ) $ 1,687,157 At September 30, 2018 and December 31, 2017 , the Company had no foreign sovereign debt securities. The Company’s investment securities available for sale with unrealized losses that are deemed temporary, aggregated by length of time that individual securities have been in a continuous unrealized loss position, are summarized below: September 30, 2018 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 257,674 $ (8,239 ) $ 487,848 $ (25,891 ) $ 745,522 $ (34,130 ) U.S. government agency debt securities 111,541 (2,144 ) 129,299 (4,053 ) 240,840 (6,197 ) Municipal bonds 88,908 (1,840 ) 76,246 (4,140 ) 165,154 (5,980 ) Corporate debt securities 179,134 (2,475 ) 20,772 (942 ) 199,906 (3,417 ) Mutual funds — — 22,665 (1,355 ) 22,665 (1,355 ) $ 637,257 $ (14,698 ) $ 736,830 $ (36,381 ) $ 1,374,087 $ (51,079 ) December 31, 2017 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 333,232 $ (2,956 ) $ 485,555 $ (12,558 ) $ 818,787 $ (15,514 ) U.S. government agency debt securities 92,138 (728 ) 128,316 (2,665 ) 220,454 (3,393 ) Municipal bonds 4,895 (8 ) 76,003 (1,463 ) 80,898 (1,471 ) Corporate debt securities 94,486 (751 ) 3,694 (84 ) 98,180 (835 ) Mutual funds — — 23,375 (645 ) 23,375 (645 ) U.S. treasury securities — — 2,199 (1 ) 2,199 (1 ) $ 524,751 $ (4,443 ) $ 719,142 $ (17,416 ) $ 1,243,893 $ (21,859 ) At September 30, 2018 and December 31, 2017 debt securities issued by U.S. government-sponsored entities and agencies held by the Company were issued by institutions which the government has affirmed its commitment to support. The Company does not consider these securities to be other-than-temporarily impaired because the decline in fair value is attributable to changes in interest rates and investment securities markets, generally, and not credit quality. The Company does not have the intent to sell these debt securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. Unrealized losses on municipal and corporate debt securities, at September 30, 2018 and December 31, 2017 , are attributable to changes in interest rates and investment securities markets, generally, and as a result, temporary in nature. The Company does not consider these securities to be other-than-temporarily impaired because the issuers of these debt securities are considered to be high quality, and management does not intend to sell these investments and it is more likely than not that it will not be required to sell these investments before their anticipated recovery. Amortized cost and approximate fair values of securities held to maturity, are summarized as follows: September 30, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 83,408 $ — $ (4,204 ) $ 79,204 U.S. Government agency debt securities 2,916 — (117 ) 2,799 $ 86,324 $ — $ (4,321 ) $ 82,003 December 31, 2017 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 86,826 $ 47 $ (441 ) $ 86,432 U.S. Government agency debt securities 3,034 — — 3,034 $ 89,860 $ 47 $ (441 ) $ 89,466 Contractual maturities of securities at September 30, 2018 are as follows: Available for Sale Held to Maturity (in thousands) Amortized Estimated Amortized Estimated Within 1 year $ 44,543 $ 44,234 $ — $ — After 1 year through 5 years 303,053 300,596 — — After 5 years through 10 years 239,839 235,495 — — After 10 years 1,063,940 1,024,886 86,324 82,003 No contractual maturities 24,265 22,910 — — $ 1,675,640 $ 1,628,121 $ 86,324 $ 82,003 At September 30, 2018 and December 31, 2017 , securities available for sale with a fair value of approximately $243 million and $246 million , respectively, were pledged as collateral to secure securities sold under agreements to repurchase and advances from the FHLB. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Loans | Loans The loan portfolio consists of the following loan classes: (in thousands) September 30, December 31, Real estate loans Commercial real estate Non-owner occupied $ 1,792,708 $ 1,713,104 Multi-family residential 847,873 839,709 Land development and construction loans 401,339 406,940 3,041,920 2,959,753 Single-family residential 509,460 512,754 Owner-occupied 710,125 610,386 4,261,505 4,082,893 Commercial loans 1,470,222 1,354,755 Loans to financial institutions and acceptances 310,967 497,626 Consumer loans and overdrafts 116,585 130,951 $ 6,159,279 $ 6,066,225 The amounts above include loans under syndication facilities of approximately $971 million and $989 million at September 30, 2018 and December 31, 2017 , respectively. The following tables summarize international loans by country, net of loans fully collateralized with cash of approximately $23.7 million and $31.9 million at September 30, 2018 and December 31, 2017 , respectively. September 30, 2018 (in thousands) Brazil Venezuela Others (1) Total Real estate loans Single-family residential (2) $ 361 $ 134,090 $ 6,289 $ 140,740 Loans to financial institutions and acceptances 130,866 — 163,750 294,616 Commercial loans 3,365 — 83,902 87,267 Consumer loans and overdrafts (3) 5,022 28,022 6,081 39,125 $ 139,614 $ 162,112 $ 260,022 $ 561,748 __________________ (1) Loans to borrowers in 19 other countries; the total by country does not individually exceed 1% of total assets. (2) Mortgage loans secured by single-family residential properties located in the U.S. (3) Mostly comprised of credit card extensions of credit to customers with deposits with the Bank. Charging privileges are suspended, if the deposits decline below the authorized credit line. December 31, 2017 (in thousands) Brazil Venezuela Chile Others (1) Total Real estate loans Single-family residential (2) $ 219 $ 145,069 $ 179 $ 7,246 $ 152,713 Loans to financial institutions and acceptances 129,372 — 93,000 258,811 481,183 Commercial loans 8,451 — — 60,843 69,294 Consumer loans and overdrafts (3) 3,046 37,609 1,364 10,060 52,079 $ 141,088 $ 182,678 $ 94,543 $ 336,960 $ 755,269 __________________ (1) Loans to borrowers in 18 other countries; the total by country does not individually exceed 1% of total assets. (2) Mortgage loans secured by single-family residential properties located in the U.S. (3) Mostly comprised of credit card extensions of credit secured to customers with deposits with the Bank. Charging privileges are suspended, if the deposits decline below the authorized credit line. The analysis of the loan portfolio delinquencies by class, including nonaccrual loans, as of September 30, 2018 and December 31, 2017 are summarized in the following tables: September 30, 2018 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Non-owner occupied $ 1,792,708 $ 1,792,639 $ 69 $ — $ — $ 69 $ 10,244 $ — Multi-family residential 847,873 847,873 — — — — — — Land development and construction loans 401,339 401,339 — — — — — — 3,041,920 3,041,851 69 — — 69 10,244 — Single-family residential 509,460 502,345 618 1,765 4,732 7,115 7,047 251 Owner-occupied 710,125 708,487 1,094 355 189 1,638 4,808 — 4,261,505 4,252,683 1,781 2,120 4,921 8,822 22,099 251 Commercial loans 1,470,222 1,468,777 371 422 652 1,445 6,461 — Loans to financial institutions and acceptances 310,967 310,967 — — — — — — Consumer loans and overdrafts 116,585 115,066 402 269 848 1,519 57 834 $ 6,159,279 $ 6,147,493 $ 2,554 $ 2,811 $ 6,421 $ 11,786 $ 28,617 $ 1,085 December 31, 2017 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Non-owner occupied $ 1,713,104 $ 1,712,624 $ — $ — $ 480 $ 480 $ 489 $ — Multi-family residential 839,709 839,709 — — — — — — Land development and construction loans 406,940 406,940 — — — — — — 2,959,753 2,959,273 — — 480 480 489 — Single-family residential 512,754 501,393 6,609 2,750 2,002 11,361 5,004 226 Owner-occupied 610,386 602,643 3,000 174 4,569 7,743 12,227 — 4,082,893 4,063,309 9,609 2,924 7,051 19,584 17,720 226 Commercial loans 1,354,755 1,350,667 385 5 3,698 4,088 8,947 — Loans to financial institutions and acceptances 497,626 497,626 — — — — — — Consumer loans and overdrafts 130,951 130,846 57 29 19 105 55 — $ 6,066,225 $ 6,042,448 $ 10,051 $ 2,958 $ 10,768 $ 23,777 $ 26,722 $ 226 At September 30, 2018 and December 31, 2017 , loans with an outstanding principal balance of $1,675 million and $1,476 million , respectively, were pledged as collateral to secure advances from the FHLB. |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The analyses by loan segment of the changes in the allowance for loan losses for the three and nine months periods ended September 30, 2018 and 2017 , and its allocation by impairment methodology and the related investment in loans, net as of September 30, 2018 and 2017 are summarized in the following tables: Three Months Ended September 30, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 28,693 $ 29,784 $ 3,317 $ 8,137 $ 69,931 Provision for (reversal of) loan losses 386 1,016 (482 ) 680 1,600 Loans charged-off Domestic — (526 ) — (66 ) (592 ) International — (1,421 ) — (283 ) (1,704 ) Recoveries — 187 — 49 236 Balances at end of the period $ 29,079 $ 29,040 $ 2,835 $ 8,517 $ 69,471 Nine Months Ended September 30, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 (Reversal of) provision for loan losses (2,249 ) (199 ) (1,527 ) 5,725 1,750 Loans charged-off Domestic — (3,263 ) — (183 ) (3,446 ) International — (1,473 ) — (913 ) (2,386 ) Recoveries 38 1,288 — 227 1,553 Balances at end of the period $ 29,079 $ 29,040 $ 2,835 $ 8,517 $ 69,471 September 30, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Allowance for loan losses by impairment methodology Individually evaluated $ 5,783 $ 969 $ — $ 1,620 $ 8,372 Collectively evaluated 23,296 28,071 2,835 6,897 61,099 $ 29,079 $ 29,040 $ 2,835 $ 8,517 $ 69,471 Investment in loans, net of unearned income Individually evaluated $ 10,965 $ 11,887 $ — $ 4,538 $ 27,390 Collectively evaluated 2,991,808 2,288,635 311,324 540,122 6,131,889 $ 3,002,773 $ 2,300,522 $ 311,324 $ 544,660 $ 6,159,279 Three Months Ended September 30, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 34,840 $ 40,201 $ 3,976 $ 3,689 $ 82,706 Provision for (reversal of) loan losses 2,074 (2,872 ) 414 1,539 1,155 Loans charged-off Domestic — (30 ) — (9 ) (39 ) International — (125 ) — (280 ) (405 ) Recoveries 693 425 — 99 1,217 Balances at end of the period $ 37,607 $ 37,599 $ 4,390 $ 5,038 $ 84,634 Nine Months Ended September 30, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Provision for (reversal of) loan losses 6,130 3,823 (914 ) (141 ) 8,898 Loans charged-off Domestic (97 ) (1,445 ) — (137 ) (1,679 ) International — (6,167 ) — (757 ) (6,924 ) Recoveries 861 491 — 1,236 2,588 Balances at end of the period $ 37,607 $ 37,599 $ 4,390 $ 5,038 $ 84,634 September 30, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Allowance for loan losses by impairment methodology Individually evaluated $ — $ 3,107 $ — $ — $ 3,107 Collectively evaluated 37,607 34,492 4,390 5,038 81,527 $ 37,607 $ 37,599 $ 4,390 $ 5,038 $ 84,634 Investment in loans, net of unearned income Individually evaluated $ 8,744 $ 24,493 $ — $ 1,828 $ 35,065 Collectively evaluated 2,797,265 2,266,440 471,445 546,756 6,081,906 $ 2,806,009 $ 2,290,933 $ 471,445 $ 548,584 $ 6,116,971 The following is a summary of the recorded investment amount of loan sales by portfolio segment: Three Months Ended September 30, Real Estate Commercial Financial Consumer Total 2018 $ 2,000 $ 31,847 $ — $ 3,272 $ 37,119 2017 $ — $ 14,545 $ 7,000 $ 3,131 $ 24,676 Nine Months Ended September 30, Real Estate Commercial Financial Consumer Total 2018 $ 2,000 $ 47,577 $ — $ 11,279 $ 60,856 2017 $ 91 $ 34,202 $ 14,677 $ 10,794 $ 59,764 The following is a summary of impaired loans as of September 30, 2018 and December 31, 2017 : September 30, 2018 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year-To-Date Average Total Unpaid Principal Balance Valuation Allowance Real estate loans Commercial real estate Non-owner occupied $ 10,244 $ — $ 10,244 $ 10,580 $ 10,295 $ 5,783 Multi-family residential — 721 721 727 726 — Land development and construction — — — — — — 10,244 721 10,965 11,307 11,021 5,783 Single-family residential 4,553 282 4,835 4,264 4,842 1,760 Owner-occupied 172 4,788 4,960 5,833 4,954 77 14,969 5,791 20,760 21,404 20,817 7,620 Commercial loans 2,019 4,579 6,598 8,374 7,861 743 Consumer loans and overdrafts 22 10 32 13 156 9 $ 17,010 $ 10,380 $ 27,390 $ 29,791 $ 28,834 $ 8,372 During the three and nine months ended September 30, 2018 , the Company recognized interest income of $11 thousand and $119 thousand , respectively, on impaired loans. December 31, 2017 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Real estate loans Commercial real estate Non-owner occupied $ — $ 327 $ 327 $ 225 $ 327 $ — Multi-family residential — 1,318 1,318 7,898 1,330 — Land development and construction loans — — — 1,359 — — — 1,645 1,645 9,482 1,657 — Single-family residential — 877 877 3,100 871 — Owner-occupied — 10,918 10,918 13,440 12,323 — — 13,440 13,440 26,022 14,851 — Commercial loans 7,173 1,986 9,159 18,211 14,784 2,866 $ 7,173 $ 15,426 $ 22,599 $ 44,233 $ 29,635 $ 2,866 During the three and nine months ended September 30, 2017 , the Company recognized interest income of $24.1 thousand and $1.1 million , respectively, on impaired loans. The recorded investment in loans considered troubled debt restructurings (“TDRs”) completed during the nine months ended September 30, 2018 totaled approximately $12.7 million , which includes $10.2 million in a commercial real estate non-owner occupied loan, $1.9 million in a real estate owner-occupied loan and $0.6 million in a commercial loan. During the nine months ended September 30, 2018 , the Company charged off $1.1 million against the allowance for loan losses as a result of these TDR loans. As of September 30, 2018 , there were no TDRs completed since September 30, 2017 which subsequently defaulted under the modified terms of the loan agreement. As of September 30, 2018 , all TDR loans were primarily real estate and commercial loans under modified terms that did not substantially impact the allowance for loan losses since the recorded investment in these impaired loans corresponded to their realizable value, which approximated their fair values, or higher, prior to their designation as TDR. Credit Risk Quality The Company’s investment in loans by credit quality indicators as of September 30, 2018 and December 31, 2017 are summarized in the following tables: September 30, 2018 Credit Risk Rating Classified (in thousands) Nonclassified Substandard Doubtful Loss Total Real estate loans Commercial real estate Non-owner occupied $ 1,782,188 $ 10,520 $ — $ — $ 1,792,708 Multi-family residential 847,873 — — — 847,873 Land development and construction loans 401,339 — — — 401,339 3,031,400 10,520 — — 3,041,920 Single-family residential 502,096 7,364 — — 509,460 Owner-occupied 703,278 6,847 — — 710,125 4,236,774 24,731 — — 4,261,505 Commercial loans 1,460,907 8,716 599 — 1,470,222 Loans to financial institutions and acceptances 310,967 — — — 310,967 Consumer loans and overdrafts 110,648 5,937 — — 116,585 $ 6,119,296 $ 39,384 $ 599 $ — $ 6,159,279 December 31, 2017 Credit Risk Rating Classified (in thousands) Nonclassified Substandard Doubtful Loss Total Real estate loans Commercial real estate Non-owner occupied $ 1,712,615 $ 489 $ — $ — $ 1,713,104 Multi-family residential 839,709 — — — 839,709 Land development and construction loans 406,940 — — — 406,940 2,959,264 489 — — 2,959,753 Single-family residential 506,885 5,869 — — 512,754 Owner-occupied 596,519 13,867 — — 610,386 4,062,668 20,225 — — 4,082,893 Commercial loans 1,340,643 14,112 — — 1,354,755 Loans to financial institutions and acceptances 497,626 — — — 497,626 Consumer loans and overdrafts 126,838 4,113 — — 130,951 $ 6,027,775 $ 38,450 $ — $ — $ 6,066,225 |
Time Deposits
Time Deposits | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Time Deposits | Time Deposits Time deposits in denominations of $100,000 or more amounted to approximately $1.4 billion and $1.2 billion at September 30, 2018 and December 31, 2017 , respectively. Time deposits in denominations of $250,000 or more amounted to approximately $723 million and $624 million at September 30, 2018 and December 31, 2017 , respectively. Time deposits include brokered time deposits, all in denominations of less than $100,000 . As of September 30, 2018 and December 31, 2017 brokered time deposits amounted to $643 million and $780 million , respectively. |
Advances From the Federal Home
Advances From the Federal Home Loan Bank and Other Borrowings | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Advances From the Federal Home Loan Bank and Other Borrowings | Advances From the Federal Home Loan Bank and Other Borrowings The Company had outstanding advances from the FHLB and other borrowings. These borrowings bear fixed interest rates or variable rates based on 3-month LIBOR as follows: Year of Maturity Interest September 30, 2018 December 31, 2017 (in thousands, except percentages) 2018 0.90% to 2.38% $ 437,000 $ 567,000 2019 1.00% to 3.86% 225,000 155,000 2020 1.50% to 2.74% 306,000 211,000 2021 1.93% to 3.08% 210,000 240,000 2022 and after 2.48% to 3.14% 160,000 — $ 1,338,000 $ 1,173,000 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments At September 30, 2018 and December 31, 2017 the fair values of the Company’s derivative instruments were as follows: September 30, 2018 December 31, 2017 (in thousands) Other Assets Other Liabilities Other Assets Other Liabilities Interest rate swaps designated as cash flow hedges $ 16,627 $ — $ 5,462 $ — Interest rate swaps not designated as hedging instruments: Customers — 760 1,375 — Third party broker 760 — — 1,375 760 760 1,375 1,375 Interest rate caps not designated as hedging instruments: Customers — 1,209 — 195 Third party broker 1,209 — 195 — 1,209 1,209 195 195 $ 18,596 $ 1,969 $ 7,032 $ 1,570 Derivatives Designated as Hedging Instruments At September 30, 2018 and December 31, 2017 the Company’s interest rate swaps designated as cash flow hedges involve the payment of fixed-rate amounts in exchange for the Company receiving variable-rate payments over the life of the agreements without exchange of the underlying notional amount. As of September 30, 2018 and December 31, 2017 , respectively, the Company had 16 and 15 interest rate swap contracts with total notional amounts of $280 million and $255 million , respectively, that were designated as cash flow hedges of floating rate interest payments on the currently outstanding and expected subsequent rollover of FHLB advances. The Company expects the hedge relationships to be highly effective in offsetting the effects of changes in interest rates in the cash flows associated with the advances from the FHLB. No hedge ineffectiveness gains or losses were recognized in the three and nine months ended September 30, 2018 and 2017 . Derivatives Not Designated as Hedging Instruments At September 30, 2018 and December 31, 2017 , the Company had four and one interest rate swap contracts with customers with a total notional amount of $64.6 million and $54.6 million , respectively. These instruments involve a variable-rate payment to the customer in exchange for the Company receiving from the customer a fixed-rate payment over the life of the contract. In addition, at September 30, 2018 and December 31, 2017 , the Company had interest rate swap mirror contracts with a third party broker with similar terms. At September 30, 2018 and December 31, 2017 , the Company had thirteen and seven interest rate cap contracts with customers with a total notional amount of $286.1 million and $162.1 million , respectively. In addition, at September 30, 2018 and December 31, 2017 , the Company had interest rate cap mirror contracts with a third party broker with similar terms. |
Net Gain on Sale of Premises an
Net Gain on Sale of Premises and Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Net Gain on Sale of Premises and Equipment | Net Gain on Sale of Premises and Equipment During the three months ended September 30, 2017, the Company sold one property in New York City (the “New York Building”) with a carrying value of approximately $17.6 million and realized a net gain on sale of approximately $10.5 million . During the nine months ended September 30, 2017, the Company sold the New York Building and another property with a carrying value of approximately $19.1 million and realized net aggregate gains on sale of approximately $11.3 million . There were no significant sales of property and equipment during the same periods in 2018. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company uses an estimated annual effective tax rate method in computing its interim tax provision. This effective tax rate is based on forecast annual consolidated pre-tax income, permanent tax differences and statutory tax rates. Under this method, the tax effect of certain items that do not meet the definition of ordinary income or expense are computed and recognized as discrete items when they occur. The effective combined federal and state tax rates for the nine months ended September 30, 2018 and 2017 were 25.34% and 31.51% , respectively. Effective tax rates differ from the statutory rates mainly due to the impact of forecast permanent non-taxable interest and other income, and the impact of permanent non-deductible discrete expense items incurred during the period, which primarily include the non-deductible Spin-off costs and the effect of corporate state taxes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (“AOCL”) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (“AOCL”) | Accumulated Other Comprehensive Loss (“AOCL”): The components of AOCL are summarized as follows using applicable blended average federal and state tax rates for each period: September 30, 2018 December 31, 2017 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized losses on available for sale securities $ (47,519 ) $ 11,618 $ (35,901 ) $ (13,415 ) $ 2,884 $ (10,531 ) Unrealized gains on interest rate swaps designated as cash flow hedges 16,627 (4,037 ) $ 12,590 5,602 (1,204 ) $ 4,398 Total AOCL $ (30,892 ) $ 7,581 $ (23,311 ) $ (7,813 ) $ 1,680 $ (6,133 ) The components of other comprehensive loss for the periods presented is summarized as follows: Three Months Ended September 30, 2018 2017 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized (losses) gains on available for sale securities: Change in fair value arising during the period $ (6,537 ) $ 1,599 $ (4,938 ) $ 2,945 $ (1,047 ) $ 1,898 Reclassification adjustment for net losses included in net income 15 (4 ) 11 1,842 (653 ) 1,189 (6,522 ) 1,595 (4,927 ) 4,787 (1,700 ) 3,087 Unrealized gains (losses) on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 2,437 (597 ) 1,840 (483 ) 170 (313 ) Reclassification adjustment for net interest (income) expense included in net income (227 ) 56 (171 ) 451 (159 ) 292 2,210 (541 ) 1,669 (32 ) 11 (21 ) Total other comprehensive (loss) income $ (4,312 ) $ 1,054 $ (3,258 ) $ 4,755 $ (1,689 ) $ 3,066 Nine Months Ended September 30, 2018 2017 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized (losses) gains on available for sale securities: Change in fair value arising during the period $ (34,103 ) $ 8,734 $ (25,369 ) $ 14,653 $ (5,203 ) $ 9,450 Reclassification adjustment for net (gains) losses included in net income (1 ) — (1 ) 1,687 (598 ) 1,089 (34,104 ) 8,734 (25,370 ) 16,340 (5,801 ) 10,539 Unrealized gains (losses) on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 11,045 (2,836 ) 8,209 (3,553 ) 1,261 (2,292 ) Reclassification adjustment for net interest (income) expense included in net income (20 ) 3 (17 ) 1,595 (566 ) 1,029 11,025 (2,833 ) 8,192 (1,958 ) 695 (1,263 ) Total other comprehensive (loss) income $ (23,079 ) $ 5,901 $ (17,178 ) $ 14,382 $ (5,106 ) $ 9,276 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its subsidiaries are party to various legal actions arising in the ordinary course of business. In the opinion of management, the outcome of these proceedings will not have a significant effect on the Company’s consolidated financial position or results of operations. The Company occupies various premises under noncancelable lease agreements expiring through the year 2046. Actual rental expenses may include deferred rents that are recognized as rent expense on a straight line basis. Rent expense under these leases was approximately $1.5 million for each of the three months ended September 30, 2018 and 2017 , and $4.5 million and $4.4 million for the nine months ended September 30, 2018 and 2017 , respectively. Financial instruments whose contract amount represents off-balance sheet credit risk at September 30, 2018 are generally short-term and are as follows: (in thousands) Approximate Commitments to extend credit $ 843,850 Credit card facilities 202,873 Standby letters of credit 20,447 Commercial letters of credit 41 $ 1,067,211 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized below: September 30, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 804,674 $ — $ 804,674 Corporate debt securities — 368,411 — 368,411 U.S. government agency debt securities — 260,771 — 260,771 Municipal bonds — 170,855 — 170,855 Mutual funds — 22,910 — 22,910 Commercial paper — 500 — 500 — 1,628,121 — 1,628,121 Bank owned life insurance — 204,690 — 204,690 Derivative instruments — 18,596 — 18,596 $ — $ 1,851,407 $ — $ 1,851,407 Liabilities Derivative instruments $ — $ 1,969 $ — $ 1,969 December 31, 2017 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 875,666 $ — $ 875,666 Corporate debt securities — 313,392 — 313,392 U.S. government agency debt securities — 291,385 — 291,385 Municipal bonds — 180,396 — 180,396 Mutual funds — 23,617 — 23,617 U.S. treasury securities — 2,701 — 2,701 — 1,687,157 — 1,687,157 Bank owned life insurance — 200,318 — 200,318 Derivative instruments — 7,032 — 7,032 $ — $ 1,894,507 $ — $ 1,894,507 Liabilities Derivative instruments $ — $ 1,570 $ — $ 1,570 Level 2 Valuation Techniques The valuation of securities and derivative instruments is performed through a monthly pricing process using data provided by third parties considered leading global providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data from various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The valuation techniques and the inputs used in our consolidated financial statements to measure the fair value of our recurring Level 2 financial instruments consider, among other factors, the following: • Similar securities actively traded which are selected from recent market transactions; • Observable market data which includes spreads in relationship to LIBOR, swap curve, and prepayment speed rates, as applicable; and • The actual interest rate spread and prepayment speed are used to obtain the fair value for each related security. On a quarterly basis, the Company evaluates the reasonableness of the monthly pricing process for the valuation of securities and derivative instruments. This evaluation includes challenging a random sample of the different types of securities in the investment portfolio as of the end of the quarter selected. This challenge consists of obtaining from the Pricing Providers a document explaining the methodology applied to obtain their fair value assessments for each type of investment included in the sample selection. The Company then analyzes in detail the various inputs used in the fair value calculation, both observable and unobservable (e.g., prepayment speeds, yield curve benchmarks, spreads, delinquency rates). Management considers that the consistent application of this methodology allows the Company to understand and evaluate the categorization of its investment portfolio. The methods described above may produce a fair value calculation that may differ from the net realizable value or may not be reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of its financial instruments could result in different estimates of fair value at the reporting date. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis There were no assets or liabilities measured at fair value on a nonrecurring basis at September 30, 2018 . The following table presents the major category of assets measured at fair value on a nonrecurring basis at December 31, 2017 : December 31, 2017 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Impairments Description Loans held for sale $ 5,611 $ — $ — $ — Loans Held for Sale. The Company measures the impairment of loans held for sale based on the amount by which the carrying values of those loans exceed their fair values. The Company primarily uses independent third party quotes to measure any subsequent decline in the value of loans held for sale. As a consequence, the fair value of these loans held for sale are considered a Level 1 valuation. Fair Value of Financial Instruments The fair value of a financial instrument represents the price that would be received from its sale in an orderly transaction between market participants at the measurement date. The best indication of the fair value of a financial instrument is determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. As a result, the Company derives the fair value of the financial instruments held at the reporting period-end, in part, using present value or other valuation techniques. Those techniques are significantly affected by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates included in present value and other techniques. The use of different assumptions could significantly affect the estimated fair values of the Company’s financial instruments. Accordingly, the net realized values could be materially different from the estimates presented below. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Because of their nature and short-term maturities, the carrying values of the following financial instruments were used as a reasonable estimate of their fair value: cash and cash equivalents, interest earning deposits with banks, variable-rate loans with re-pricing terms shorter than twelve months, demand and savings deposits, short-term time deposits and other borrowings. • The fair value of loans held for sale, securities, bank owned life insurance and derivative instruments, are based on quoted market prices, when available. If quoted market prices are unavailable, fair value is estimated using the pricing process described in Note 17 to the audited consolidated financial statements for the three years ended December 31, 2017 and as of December 31, 2017 and 2016 . • The fair value of commitments and letters of credit is based on the assumption that the Company will be required to perform on all such instruments. The commitment amount approximates estimated fair value. • The fair value of fixed-rate loans, advances from the FHLB, and junior subordinated debentures are estimated using a present value technique by discounting the future expected contractual cash flows using the current rates at which similar instruments would be issued with comparable credit ratings and terms at the measurement date. • The fair value of long-term time deposits, including certificates of deposit, is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. The estimated fair value of financial instruments where fair value differs from carrying value are as follows: September 30, 2018 December 31, 2017 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,809,731 $ 2,689,753 $ 2,682,790 $ 2,566,197 Financial liabilities Time deposits 1,736,021 1,724,786 1,466,464 1,461,908 Advances from the Federal Home Loan Bank 1,336,000 1,329,389 1,161,000 1,164,686 Junior subordinated debentures 118,110 100,331 118,110 95,979 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following tables provide a summary of the Company’s financial information as of September 30, 2018 and December 31, 2017 and for the three and nine months periods ended September 30, 2018 and 2017 on a managed basis. The Company’s definition of managed basis starts with the reported U.S. GAAP results and includes funds transfer pricing (“FTP”) compensation and allocations of direct and indirect expenses from overhead, internal support centers, and product support centers. This allows management to assess the comparability of results from period-to-period arising from segment operations. The corresponding income tax impact related to tax-exempt items is recorded within income tax (expense)/benefit. (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Three Months Ended September 30, 2018 Income Statement: Net interest income $ 49,817 $ 1,080 $ 700 $ 4,036 $ 55,633 Provision for (reversal of) loan losses 1,926 (1,090 ) 3 761 1,600 Net interest income after provision for (reversal of) loan losses 47,891 2,170 697 3,275 54,033 Noninterest income 5,520 92 1,840 5,498 12,950 Noninterest expense 40,242 748 3,029 8,023 52,042 Net income (loss) before income tax: Banking 13,169 1,514 (492 ) 750 14,941 Non-banking contribution (1) 753 1 — (754 ) — 13,922 1,515 (492 ) (4 ) 14,941 Income tax (expense) benefit (3,268 ) (357 ) 658 (423 ) (3,390 ) Net income (loss) $ 10,654 $ 1,158 $ 166 $ (427 ) $ 11,551 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Nine Months Ended September 30, 2018 Income Statement: Net interest income $ 143,603 $ 3,779 $ 3,598 $ 11,275 $ 162,255 Provision for (reversal of) loan losses 611 (1,315 ) (443 ) 2,897 1,750 Net interest income after provision for (reversal of) loan losses 142,992 5,094 4,041 8,378 160,505 Noninterest income 16,936 290 7,241 17,414 41,881 Noninterest expense 119,585 3,391 8,823 28,526 160,325 Net income (loss) before income tax: Banking 40,343 1,993 2,459 (2,734 ) 42,061 Non-banking contribution (1) 2,000 1 — (2,001 ) — 42,343 1,994 2,459 (4,735 ) 42,061 Income tax (expense) benefit (9,975 ) (470 ) 1,054 (1,267 ) (10,658 ) Net income (loss) $ 32,368 $ 1,524 $ 3,513 $ (6,002 ) $ 31,403 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total As of September 30, 2018 Loans, net (2) $ 5,843,823 $ 313,735 $ — $ (67,750 ) $ 6,089,808 Deposits $ 5,488,775 $ 14,955 $ 643,102 $ 42,671 $ 6,189,503 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Three Months Ended September 30, 2017 Income Statement: Net interest income $ 47,981 $ 2,181 $ 1,826 $ 3,078 $ 55,066 (Reversal of) provision for loan losses (3,547 ) (1,618 ) (363 ) 6,683 1,155 Net interest income after (reversal of) provision for loan losses 51,528 3,799 2,189 (3,605 ) 53,911 Noninterest income 6,192 120 2,811 14,967 24,090 Noninterest expense 41,184 1,294 3,002 6,742 52,222 Net income before income tax: Banking 16,536 2,625 1,998 4,620 25,779 Non-banking contribution (1) 1,120 17 — (1,137 ) — 17,656 2,642 1,998 3,483 25,779 Income tax (expense) benefit (6,295 ) (942 ) 97 (1,297 ) (8,437 ) Net income $ 11,361 $ 1,700 $ 2,095 $ 2,186 $ 17,342 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Nine Months Ended September 30, 2017 Income Statement: Net interest income $ 133,145 $ 7,084 $ 6,419 $ 8,210 $ 154,858 Provision for (reversal of) loan losses 6,265 (1,260 ) (1,257 ) 5,150 8,898 Net interest income after provision for (reversal of) loan losses 126,880 8,344 7,676 3,060 145,960 Noninterest income 20,337 395 6,924 28,410 56,066 Noninterest expense 119,679 3,811 8,196 20,349 152,035 Net income before income tax: Banking 27,538 4,928 6,404 11,121 49,991 Non-banking contribution (1) 3,469 39 — (3,508 ) — 31,007 4,967 6,404 7,613 49,991 Income tax (expense) benefit (11,025 ) (1,765 ) 38 (3,000 ) (15,752 ) Net income $ 19,982 $ 3,202 $ 6,442 $ 4,613 $ 34,239 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total As of December 31, 2017 Loans, net (2)(3) $ 5,542,545 $ 521,616 $ — $ (64,325 ) $ 5,999,836 Deposits $ 5,454,216 $ 18,670 $ 779,969 $ 70,118 $ 6,322,973 __________________ (1) Non-banking contribution reflects allocations of the net results of the Trust Company and Investment Services subsidiaries to the customers’ primary business unit. (2) Provisions for the periods presented are allocated to each applicable reportable segment. The allowance for loan losses and unearned deferred loan costs and fees are reported entirely within Institutional. (3) Balances include loans held for sale of $5.6 million which are allocated to PAC. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Estimates | Estimates The preparation of financial statements in conformity with U.S. 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 periods. Significant estimates made by management include: (i) the determination of the allowance for loan losses; (ii) the fair values of securities, bank owned life insurance and the reporting unit to which goodwill has been assigned during the annual goodwill impairment test; and (iii) the determination of whether the amount of deferred tax assets will more likely than not be realized. Management believes that these estimates are appropriate. Actual results could differ from these estimates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Issued and Adopted Removal of Outdated OCC Guidance In May 2018, the Financial Accounting Standards Board (“FASB”) issued amendments which removed outdated guidance related to the Office of the Comptroller of the Currency (“OCC”)’s Banking Circular 202, Accounting for Net Deferred Tax Changes . This guidance, which limited the net deferred tax debits that can be carried on a bank’s statement of condition for regulatory purposes, has been rescinded by the OCC. These amendments became effective immediately upon issuance and had no impact to the Company’s unaudited interim consolidated financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued guidance that allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate pursuant to H.R. 1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal year 2018, known as the Tax Cuts and Jobs Act of 2017 (“the 2017 Tax Act”). This guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for (1) public business entities for reporting periods for which financial statements have not been issued, and (2) for other entities for reporting periods for which financial statements have not yet been made available for issuance. The Company early-adopted this guidance and reclassified the effect of remeasuring net deferred tax assets related to items within AOCI to retained earnings resulting in a $1.1 million increase in retained earnings in 2017. Issued and Not Yet Adopted Emerging Growth Company Section 107 of the JOBS Act provides that, as an “emerging growth company” we can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period, for as long as it is available and consistent with bank regulatory requirements. Changes to the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued amendments to the disclosure requirements for fair value measurements. The amendments modify the fair value measurements disclosures with the primary focus to improve effectiveness of disclosures in the notes to the financial statements that is most important to the users. The new guidance modifies the required disclosures related to the valuation techniques and inputs used, uncertainty in measurement, and changes in measurements applied. These amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company is currently assessing the impact this new guidance may have on the Company’s consolidated financial statements and footnote disclosures. Narrow Amendments to Pending New Guidance on Leases In July 2018, the FASB issued amendments to narrow aspects of the new guidance issued in February 2016 for the recognition and measurement of all leases which is not yet effective. These amendments, and the related pending new guidance, are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, for private companies, and for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years, for public companies. Early adoption is permitted. The Company is in the process of determining whether these amendments and the related new pending guidance will have a material effect on its consolidated financial statements, when adopted. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued targeted amendments to the guidance for recognition, presentation and disclosure of hedging activities. These targeted amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments also simplify the application of hedge accounting guidance. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years for public business entities. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is in the process of determining whether the adoption of this guidance will have a material impact on the Company’s consolidated financial statements and disclosures. Statement of Cash Flows Classification of Certain Receipts and Payments In August 2016 , the FASB issued specific guidance for the classification of a number of cash receipts and payments, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims and proceeds from the settlement of bank-owned life insurance policies. The new guidance is effective for years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, for private companies, and for years beginning after December 15, 2017 and interim periods within those fiscal years for public companies. Early adoption is permitted. The Company is in the process of understanding whether this new guidance will have a material impact on its consolidated statement of cash flows when adopted. Accounting for Credit Losses on Financial Instruments In June 2016, the FASB issued new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The standard is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021, for private companies, and for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, for public companies. Early adoption is permitted for fiscal years beginning after December 15, 2018. The Company is in the process of determining whether these changes will have a material impact on its consolidated financial position or results of operations or disclosures. Accounting for Leases In February 2016, the FASB issued guidance for the recognition and measurement of all leases. The new guidance requires lessees to recognize a right-of-use asset and a lease liability for most leases within the scope of the guidance. There were no significant changes to the guidance for lessors. The standard is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, for private companies, and for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years, for public companies. Early adoption is permitted. The new standard must be adopted using a modified retrospective transition at the beginning of the earliest comparative period presented, and provides for certain practical expedients. The Company is in the process of determining whether this new guidance will have a material impact on its consolidated financial position, results of operations and disclosures, when adopted. Recognition and Measurement of Financial Instruments In January 2016, the FASB issued changes to the guidance on the recognition and measurement of financial instruments. The changes include, among others, the removal of the available-for-sale category for equity securities and updates to certain disclosure requirements. This standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, for private companies, and for fiscal periods beginning December 15, 2017, and interim periods within those fiscal years, for public companies, with limited early adoption permitted. The Company is in the process of determining whether these changes will have a material impact on its consolidated financial position or results of operations or disclosures. Revenue from Contracts with Customers In May 2014, the FASB issued a common revenue standard for recognizing revenue from contracts with customers. This new standard establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended effective date is annual reporting periods beginning after December 15, 2018, and interim periods beginning after December 15, 2019, for private companies, and for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period, for public companies. Earlier adoption continues to be permitted. The Company is in the process of determining whether the new guidance will have a material impact on its consolidated financial position or results of operations. |
Fair Value Measurement | The valuation of securities and derivative instruments is performed through a monthly pricing process using data provided by third parties considered leading global providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data from various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The valuation techniques and the inputs used in our consolidated financial statements to measure the fair value of our recurring Level 2 financial instruments consider, among other factors, the following: • Similar securities actively traded which are selected from recent market transactions; • Observable market data which includes spreads in relationship to LIBOR, swap curve, and prepayment speed rates, as applicable; and • The actual interest rate spread and prepayment speed are used to obtain the fair value for each related security. On a quarterly basis, the Company evaluates the reasonableness of the monthly pricing process for the valuation of securities and derivative instruments. This evaluation includes challenging a random sample of the different types of securities in the investment portfolio as of the end of the quarter selected. This challenge consists of obtaining from the Pricing Providers a document explaining the methodology applied to obtain their fair value assessments for each type of investment included in the sample selection. The Company then analyzes in detail the various inputs used in the fair value calculation, both observable and unobservable (e.g., prepayment speeds, yield curve benchmarks, spreads, delinquency rates). Management considers that the consistent application of this methodology allows the Company to understand and evaluate the categorization of its investment portfolio. The methods described above may produce a fair value calculation that may differ from the net realizable value or may not be reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of its financial instruments could result in different estimates of fair value at the reporting date. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of a financial instrument represents the price that would be received from its sale in an orderly transaction between market participants at the measurement date. The best indication of the fair value of a financial instrument is determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. As a result, the Company derives the fair value of the financial instruments held at the reporting period-end, in part, using present value or other valuation techniques. Those techniques are significantly affected by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates included in present value and other techniques. The use of different assumptions could significantly affect the estimated fair values of the Company’s financial instruments. Accordingly, the net realized values could be materially different from the estimates presented below. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Because of their nature and short-term maturities, the carrying values of the following financial instruments were used as a reasonable estimate of their fair value: cash and cash equivalents, interest earning deposits with banks, variable-rate loans with re-pricing terms shorter than twelve months, demand and savings deposits, short-term time deposits and other borrowings. • The fair value of loans held for sale, securities, bank owned life insurance and derivative instruments, are based on quoted market prices, when available. If quoted market prices are unavailable, fair value is estimated using the pricing process described in Note 17 to the audited consolidated financial statements for the three years ended December 31, 2017 and as of December 31, 2017 and 2016 . • The fair value of commitments and letters of credit is based on the assumption that the Company will be required to perform on all such instruments. The commitment amount approximates estimated fair value. • The fair value of fixed-rate loans, advances from the FHLB, and junior subordinated debentures are estimated using a present value technique by discounting the future expected contractual cash flows using the current rates at which similar instruments would be issued with comparable credit ratings and terms at the measurement date. • The fair value of long-term time deposits, including certificates of deposit, is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available for sale securities from amortized cost to fair value | Amortized cost and approximate fair values of securities available for sale are summarized as follows: September 30, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 837,796 $ 1,008 $ (34,130 ) $ 804,674 Corporate debt securities 369,496 2,332 (3,417 ) 368,411 U.S. government agency debt securities 266,758 210 (6,197 ) 260,771 Municipal bonds 176,825 10 (5,980 ) 170,855 Mutual funds 24,265 — (1,355 ) 22,910 Commercial paper 500 — — 500 $ 1,675,640 $ 3,560 $ (51,079 ) $ 1,628,121 December 31, 2017 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 889,396 $ 1,784 $ (15,514 ) $ 875,666 Corporate debt securities 310,781 3,446 (835 ) 313,392 U.S. government agency debt securities 293,908 870 (3,393 ) 291,385 Municipal bonds 179,524 2,343 (1,471 ) 180,396 Mutual funds 24,262 — (645 ) 23,617 U.S. treasury securities 2,700 2 (1 ) 2,701 $ 1,700,571 $ 8,445 $ (21,859 ) $ 1,687,157 |
Schedule of available for sale securities with unrealized losses | The Company’s investment securities available for sale with unrealized losses that are deemed temporary, aggregated by length of time that individual securities have been in a continuous unrealized loss position, are summarized below: September 30, 2018 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 257,674 $ (8,239 ) $ 487,848 $ (25,891 ) $ 745,522 $ (34,130 ) U.S. government agency debt securities 111,541 (2,144 ) 129,299 (4,053 ) 240,840 (6,197 ) Municipal bonds 88,908 (1,840 ) 76,246 (4,140 ) 165,154 (5,980 ) Corporate debt securities 179,134 (2,475 ) 20,772 (942 ) 199,906 (3,417 ) Mutual funds — — 22,665 (1,355 ) 22,665 (1,355 ) $ 637,257 $ (14,698 ) $ 736,830 $ (36,381 ) $ 1,374,087 $ (51,079 ) December 31, 2017 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 333,232 $ (2,956 ) $ 485,555 $ (12,558 ) $ 818,787 $ (15,514 ) U.S. government agency debt securities 92,138 (728 ) 128,316 (2,665 ) 220,454 (3,393 ) Municipal bonds 4,895 (8 ) 76,003 (1,463 ) 80,898 (1,471 ) Corporate debt securities 94,486 (751 ) 3,694 (84 ) 98,180 (835 ) Mutual funds — — 23,375 (645 ) 23,375 (645 ) U.S. treasury securities — — 2,199 (1 ) 2,199 (1 ) $ 524,751 $ (4,443 ) $ 719,142 $ (17,416 ) $ 1,243,893 $ (21,859 ) |
Schedule of held to maturity securities | Amortized cost and approximate fair values of securities held to maturity, are summarized as follows: September 30, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 83,408 $ — $ (4,204 ) $ 79,204 U.S. Government agency debt securities 2,916 — (117 ) 2,799 $ 86,324 $ — $ (4,321 ) $ 82,003 December 31, 2017 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 86,826 $ 47 $ (441 ) $ 86,432 U.S. Government agency debt securities 3,034 — — 3,034 $ 89,860 $ 47 $ (441 ) $ 89,466 |
Schedule of contractual maturities of securities | Contractual maturities of securities at September 30, 2018 are as follows: Available for Sale Held to Maturity (in thousands) Amortized Estimated Amortized Estimated Within 1 year $ 44,543 $ 44,234 $ — $ — After 1 year through 5 years 303,053 300,596 — — After 5 years through 10 years 239,839 235,495 — — After 10 years 1,063,940 1,024,886 86,324 82,003 No contractual maturities 24,265 22,910 — — $ 1,675,640 $ 1,628,121 $ 86,324 $ 82,003 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of loan portfolio by classes and countries | The following tables summarize international loans by country, net of loans fully collateralized with cash of approximately $23.7 million and $31.9 million at September 30, 2018 and December 31, 2017 , respectively. September 30, 2018 (in thousands) Brazil Venezuela Others (1) Total Real estate loans Single-family residential (2) $ 361 $ 134,090 $ 6,289 $ 140,740 Loans to financial institutions and acceptances 130,866 — 163,750 294,616 Commercial loans 3,365 — 83,902 87,267 Consumer loans and overdrafts (3) 5,022 28,022 6,081 39,125 $ 139,614 $ 162,112 $ 260,022 $ 561,748 __________________ (1) Loans to borrowers in 19 other countries; the total by country does not individually exceed 1% of total assets. (2) Mortgage loans secured by single-family residential properties located in the U.S. (3) Mostly comprised of credit card extensions of credit to customers with deposits with the Bank. Charging privileges are suspended, if the deposits decline below the authorized credit line. December 31, 2017 (in thousands) Brazil Venezuela Chile Others (1) Total Real estate loans Single-family residential (2) $ 219 $ 145,069 $ 179 $ 7,246 $ 152,713 Loans to financial institutions and acceptances 129,372 — 93,000 258,811 481,183 Commercial loans 8,451 — — 60,843 69,294 Consumer loans and overdrafts (3) 3,046 37,609 1,364 10,060 52,079 $ 141,088 $ 182,678 $ 94,543 $ 336,960 $ 755,269 __________________ (1) Loans to borrowers in 18 other countries; the total by country does not individually exceed 1% of total assets. (2) Mortgage loans secured by single-family residential properties located in the U.S. (3) Mostly comprised of credit card extensions of credit secured to customers with deposits with the Bank. Charging privileges are suspended, if the deposits decline below the authorized credit line. The loan portfolio consists of the following loan classes: (in thousands) September 30, December 31, Real estate loans Commercial real estate Non-owner occupied $ 1,792,708 $ 1,713,104 Multi-family residential 847,873 839,709 Land development and construction loans 401,339 406,940 3,041,920 2,959,753 Single-family residential 509,460 512,754 Owner-occupied 710,125 610,386 4,261,505 4,082,893 Commercial loans 1,470,222 1,354,755 Loans to financial institutions and acceptances 310,967 497,626 Consumer loans and overdrafts 116,585 130,951 $ 6,159,279 $ 6,066,225 |
Schedule of loan portfolio delinquencies | The analysis of the loan portfolio delinquencies by class, including nonaccrual loans, as of September 30, 2018 and December 31, 2017 are summarized in the following tables: September 30, 2018 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Non-owner occupied $ 1,792,708 $ 1,792,639 $ 69 $ — $ — $ 69 $ 10,244 $ — Multi-family residential 847,873 847,873 — — — — — — Land development and construction loans 401,339 401,339 — — — — — — 3,041,920 3,041,851 69 — — 69 10,244 — Single-family residential 509,460 502,345 618 1,765 4,732 7,115 7,047 251 Owner-occupied 710,125 708,487 1,094 355 189 1,638 4,808 — 4,261,505 4,252,683 1,781 2,120 4,921 8,822 22,099 251 Commercial loans 1,470,222 1,468,777 371 422 652 1,445 6,461 — Loans to financial institutions and acceptances 310,967 310,967 — — — — — — Consumer loans and overdrafts 116,585 115,066 402 269 848 1,519 57 834 $ 6,159,279 $ 6,147,493 $ 2,554 $ 2,811 $ 6,421 $ 11,786 $ 28,617 $ 1,085 December 31, 2017 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Non-owner occupied $ 1,713,104 $ 1,712,624 $ — $ — $ 480 $ 480 $ 489 $ — Multi-family residential 839,709 839,709 — — — — — — Land development and construction loans 406,940 406,940 — — — — — — 2,959,753 2,959,273 — — 480 480 489 — Single-family residential 512,754 501,393 6,609 2,750 2,002 11,361 5,004 226 Owner-occupied 610,386 602,643 3,000 174 4,569 7,743 12,227 — 4,082,893 4,063,309 9,609 2,924 7,051 19,584 17,720 226 Commercial loans 1,354,755 1,350,667 385 5 3,698 4,088 8,947 — Loans to financial institutions and acceptances 497,626 497,626 — — — — — — Consumer loans and overdrafts 130,951 130,846 57 29 19 105 55 — $ 6,066,225 $ 6,042,448 $ 10,051 $ 2,958 $ 10,768 $ 23,777 $ 26,722 $ 226 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of allowance for loan losses | The following is a summary of the recorded investment amount of loan sales by portfolio segment: Three Months Ended September 30, Real Estate Commercial Financial Consumer Total 2018 $ 2,000 $ 31,847 $ — $ 3,272 $ 37,119 2017 $ — $ 14,545 $ 7,000 $ 3,131 $ 24,676 Nine Months Ended September 30, Real Estate Commercial Financial Consumer Total 2018 $ 2,000 $ 47,577 $ — $ 11,279 $ 60,856 2017 $ 91 $ 34,202 $ 14,677 $ 10,794 $ 59,764 The analyses by loan segment of the changes in the allowance for loan losses for the three and nine months periods ended September 30, 2018 and 2017 , and its allocation by impairment methodology and the related investment in loans, net as of September 30, 2018 and 2017 are summarized in the following tables: Three Months Ended September 30, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 28,693 $ 29,784 $ 3,317 $ 8,137 $ 69,931 Provision for (reversal of) loan losses 386 1,016 (482 ) 680 1,600 Loans charged-off Domestic — (526 ) — (66 ) (592 ) International — (1,421 ) — (283 ) (1,704 ) Recoveries — 187 — 49 236 Balances at end of the period $ 29,079 $ 29,040 $ 2,835 $ 8,517 $ 69,471 Nine Months Ended September 30, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 (Reversal of) provision for loan losses (2,249 ) (199 ) (1,527 ) 5,725 1,750 Loans charged-off Domestic — (3,263 ) — (183 ) (3,446 ) International — (1,473 ) — (913 ) (2,386 ) Recoveries 38 1,288 — 227 1,553 Balances at end of the period $ 29,079 $ 29,040 $ 2,835 $ 8,517 $ 69,471 September 30, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Allowance for loan losses by impairment methodology Individually evaluated $ 5,783 $ 969 $ — $ 1,620 $ 8,372 Collectively evaluated 23,296 28,071 2,835 6,897 61,099 $ 29,079 $ 29,040 $ 2,835 $ 8,517 $ 69,471 Investment in loans, net of unearned income Individually evaluated $ 10,965 $ 11,887 $ — $ 4,538 $ 27,390 Collectively evaluated 2,991,808 2,288,635 311,324 540,122 6,131,889 $ 3,002,773 $ 2,300,522 $ 311,324 $ 544,660 $ 6,159,279 Three Months Ended September 30, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 34,840 $ 40,201 $ 3,976 $ 3,689 $ 82,706 Provision for (reversal of) loan losses 2,074 (2,872 ) 414 1,539 1,155 Loans charged-off Domestic — (30 ) — (9 ) (39 ) International — (125 ) — (280 ) (405 ) Recoveries 693 425 — 99 1,217 Balances at end of the period $ 37,607 $ 37,599 $ 4,390 $ 5,038 $ 84,634 Nine Months Ended September 30, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the period $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Provision for (reversal of) loan losses 6,130 3,823 (914 ) (141 ) 8,898 Loans charged-off Domestic (97 ) (1,445 ) — (137 ) (1,679 ) International — (6,167 ) — (757 ) (6,924 ) Recoveries 861 491 — 1,236 2,588 Balances at end of the period $ 37,607 $ 37,599 $ 4,390 $ 5,038 $ 84,634 September 30, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Allowance for loan losses by impairment methodology Individually evaluated $ — $ 3,107 $ — $ — $ 3,107 Collectively evaluated 37,607 34,492 4,390 5,038 81,527 $ 37,607 $ 37,599 $ 4,390 $ 5,038 $ 84,634 Investment in loans, net of unearned income Individually evaluated $ 8,744 $ 24,493 $ — $ 1,828 $ 35,065 Collectively evaluated 2,797,265 2,266,440 471,445 546,756 6,081,906 $ 2,806,009 $ 2,290,933 $ 471,445 $ 548,584 $ 6,116,971 |
Schedule of impaired loans | The following is a summary of impaired loans as of September 30, 2018 and December 31, 2017 : September 30, 2018 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year-To-Date Average Total Unpaid Principal Balance Valuation Allowance Real estate loans Commercial real estate Non-owner occupied $ 10,244 $ — $ 10,244 $ 10,580 $ 10,295 $ 5,783 Multi-family residential — 721 721 727 726 — Land development and construction — — — — — — 10,244 721 10,965 11,307 11,021 5,783 Single-family residential 4,553 282 4,835 4,264 4,842 1,760 Owner-occupied 172 4,788 4,960 5,833 4,954 77 14,969 5,791 20,760 21,404 20,817 7,620 Commercial loans 2,019 4,579 6,598 8,374 7,861 743 Consumer loans and overdrafts 22 10 32 13 156 9 $ 17,010 $ 10,380 $ 27,390 $ 29,791 $ 28,834 $ 8,372 During the three and nine months ended September 30, 2018 , the Company recognized interest income of $11 thousand and $119 thousand , respectively, on impaired loans. December 31, 2017 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Real estate loans Commercial real estate Non-owner occupied $ — $ 327 $ 327 $ 225 $ 327 $ — Multi-family residential — 1,318 1,318 7,898 1,330 — Land development and construction loans — — — 1,359 — — — 1,645 1,645 9,482 1,657 — Single-family residential — 877 877 3,100 871 — Owner-occupied — 10,918 10,918 13,440 12,323 — — 13,440 13,440 26,022 14,851 — Commercial loans 7,173 1,986 9,159 18,211 14,784 2,866 $ 7,173 $ 15,426 $ 22,599 $ 44,233 $ 29,635 $ 2,866 |
Schedule of credit quality indicators | The Company’s investment in loans by credit quality indicators as of September 30, 2018 and December 31, 2017 are summarized in the following tables: September 30, 2018 Credit Risk Rating Classified (in thousands) Nonclassified Substandard Doubtful Loss Total Real estate loans Commercial real estate Non-owner occupied $ 1,782,188 $ 10,520 $ — $ — $ 1,792,708 Multi-family residential 847,873 — — — 847,873 Land development and construction loans 401,339 — — — 401,339 3,031,400 10,520 — — 3,041,920 Single-family residential 502,096 7,364 — — 509,460 Owner-occupied 703,278 6,847 — — 710,125 4,236,774 24,731 — — 4,261,505 Commercial loans 1,460,907 8,716 599 — 1,470,222 Loans to financial institutions and acceptances 310,967 — — — 310,967 Consumer loans and overdrafts 110,648 5,937 — — 116,585 $ 6,119,296 $ 39,384 $ 599 $ — $ 6,159,279 December 31, 2017 Credit Risk Rating Classified (in thousands) Nonclassified Substandard Doubtful Loss Total Real estate loans Commercial real estate Non-owner occupied $ 1,712,615 $ 489 $ — $ — $ 1,713,104 Multi-family residential 839,709 — — — 839,709 Land development and construction loans 406,940 — — — 406,940 2,959,264 489 — — 2,959,753 Single-family residential 506,885 5,869 — — 512,754 Owner-occupied 596,519 13,867 — — 610,386 4,062,668 20,225 — — 4,082,893 Commercial loans 1,340,643 14,112 — — 1,354,755 Loans to financial institutions and acceptances 497,626 — — — 497,626 Consumer loans and overdrafts 126,838 4,113 — — 130,951 $ 6,027,775 $ 38,450 $ — $ — $ 6,066,225 |
Advances From the Federal Hom_2
Advances From the Federal Home Loan Bank and Other Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of outstanding advances from the FHLB | The Company had outstanding advances from the FHLB and other borrowings. These borrowings bear fixed interest rates or variable rates based on 3-month LIBOR as follows: Year of Maturity Interest September 30, 2018 December 31, 2017 (in thousands, except percentages) 2018 0.90% to 2.38% $ 437,000 $ 567,000 2019 1.00% to 3.86% 225,000 155,000 2020 1.50% to 2.74% 306,000 211,000 2021 1.93% to 3.08% 210,000 240,000 2022 and after 2.48% to 3.14% 160,000 — $ 1,338,000 $ 1,173,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | At September 30, 2018 and December 31, 2017 the fair values of the Company’s derivative instruments were as follows: September 30, 2018 December 31, 2017 (in thousands) Other Assets Other Liabilities Other Assets Other Liabilities Interest rate swaps designated as cash flow hedges $ 16,627 $ — $ 5,462 $ — Interest rate swaps not designated as hedging instruments: Customers — 760 1,375 — Third party broker 760 — — 1,375 760 760 1,375 1,375 Interest rate caps not designated as hedging instruments: Customers — 1,209 — 195 Third party broker 1,209 — 195 — 1,209 1,209 195 195 $ 18,596 $ 1,969 $ 7,032 $ 1,570 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (“AOCL”) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Components of AOCL | The components of AOCL are summarized as follows using applicable blended average federal and state tax rates for each period: September 30, 2018 December 31, 2017 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized losses on available for sale securities $ (47,519 ) $ 11,618 $ (35,901 ) $ (13,415 ) $ 2,884 $ (10,531 ) Unrealized gains on interest rate swaps designated as cash flow hedges 16,627 (4,037 ) $ 12,590 5,602 (1,204 ) $ 4,398 Total AOCL $ (30,892 ) $ 7,581 $ (23,311 ) $ (7,813 ) $ 1,680 $ (6,133 ) |
Components of Other Comprehensive Loss | The components of other comprehensive loss for the periods presented is summarized as follows: Three Months Ended September 30, 2018 2017 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized (losses) gains on available for sale securities: Change in fair value arising during the period $ (6,537 ) $ 1,599 $ (4,938 ) $ 2,945 $ (1,047 ) $ 1,898 Reclassification adjustment for net losses included in net income 15 (4 ) 11 1,842 (653 ) 1,189 (6,522 ) 1,595 (4,927 ) 4,787 (1,700 ) 3,087 Unrealized gains (losses) on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 2,437 (597 ) 1,840 (483 ) 170 (313 ) Reclassification adjustment for net interest (income) expense included in net income (227 ) 56 (171 ) 451 (159 ) 292 2,210 (541 ) 1,669 (32 ) 11 (21 ) Total other comprehensive (loss) income $ (4,312 ) $ 1,054 $ (3,258 ) $ 4,755 $ (1,689 ) $ 3,066 Nine Months Ended September 30, 2018 2017 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized (losses) gains on available for sale securities: Change in fair value arising during the period $ (34,103 ) $ 8,734 $ (25,369 ) $ 14,653 $ (5,203 ) $ 9,450 Reclassification adjustment for net (gains) losses included in net income (1 ) — (1 ) 1,687 (598 ) 1,089 (34,104 ) 8,734 (25,370 ) 16,340 (5,801 ) 10,539 Unrealized gains (losses) on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 11,045 (2,836 ) 8,209 (3,553 ) 1,261 (2,292 ) Reclassification adjustment for net interest (income) expense included in net income (20 ) 3 (17 ) 1,595 (566 ) 1,029 11,025 (2,833 ) 8,192 (1,958 ) 695 (1,263 ) Total other comprehensive (loss) income $ (23,079 ) $ 5,901 $ (17,178 ) $ 14,382 $ (5,106 ) $ 9,276 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments Whose Contract Amount Represents Off-Balance Sheet Credit Risk | Financial instruments whose contract amount represents off-balance sheet credit risk at September 30, 2018 are generally short-term and are as follows: (in thousands) Approximate Commitments to extend credit $ 843,850 Credit card facilities 202,873 Standby letters of credit 20,447 Commercial letters of credit 41 $ 1,067,211 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of 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: September 30, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 804,674 $ — $ 804,674 Corporate debt securities — 368,411 — 368,411 U.S. government agency debt securities — 260,771 — 260,771 Municipal bonds — 170,855 — 170,855 Mutual funds — 22,910 — 22,910 Commercial paper — 500 — 500 — 1,628,121 — 1,628,121 Bank owned life insurance — 204,690 — 204,690 Derivative instruments — 18,596 — 18,596 $ — $ 1,851,407 $ — $ 1,851,407 Liabilities Derivative instruments $ — $ 1,969 $ — $ 1,969 December 31, 2017 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 875,666 $ — $ 875,666 Corporate debt securities — 313,392 — 313,392 U.S. government agency debt securities — 291,385 — 291,385 Municipal bonds — 180,396 — 180,396 Mutual funds — 23,617 — 23,617 U.S. treasury securities — 2,701 — 2,701 — 1,687,157 — 1,687,157 Bank owned life insurance — 200,318 — 200,318 Derivative instruments — 7,032 — 7,032 $ — $ 1,894,507 $ — $ 1,894,507 Liabilities Derivative instruments $ — $ 1,570 $ — $ 1,570 |
Summary of Major Categories of Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the major category of assets measured at fair value on a nonrecurring basis at December 31, 2017 : December 31, 2017 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total Impairments Description Loans held for sale $ 5,611 $ — $ — $ — |
Summary of Estimated Fair Value of Financial Instruments Where Fair Value Differs from Carrying Value | The estimated fair value of financial instruments where fair value differs from carrying value are as follows: September 30, 2018 December 31, 2017 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,809,731 $ 2,689,753 $ 2,682,790 $ 2,566,197 Financial liabilities Time deposits 1,736,021 1,724,786 1,466,464 1,461,908 Advances from the Federal Home Loan Bank 1,336,000 1,329,389 1,161,000 1,164,686 Junior subordinated debentures 118,110 100,331 118,110 95,979 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Financial Information on a Managed Basis | The following tables provide a summary of the Company’s financial information as of September 30, 2018 and December 31, 2017 and for the three and nine months periods ended September 30, 2018 and 2017 on a managed basis. The Company’s definition of managed basis starts with the reported U.S. GAAP results and includes funds transfer pricing (“FTP”) compensation and allocations of direct and indirect expenses from overhead, internal support centers, and product support centers. This allows management to assess the comparability of results from period-to-period arising from segment operations. The corresponding income tax impact related to tax-exempt items is recorded within income tax (expense)/benefit. (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Three Months Ended September 30, 2018 Income Statement: Net interest income $ 49,817 $ 1,080 $ 700 $ 4,036 $ 55,633 Provision for (reversal of) loan losses 1,926 (1,090 ) 3 761 1,600 Net interest income after provision for (reversal of) loan losses 47,891 2,170 697 3,275 54,033 Noninterest income 5,520 92 1,840 5,498 12,950 Noninterest expense 40,242 748 3,029 8,023 52,042 Net income (loss) before income tax: Banking 13,169 1,514 (492 ) 750 14,941 Non-banking contribution (1) 753 1 — (754 ) — 13,922 1,515 (492 ) (4 ) 14,941 Income tax (expense) benefit (3,268 ) (357 ) 658 (423 ) (3,390 ) Net income (loss) $ 10,654 $ 1,158 $ 166 $ (427 ) $ 11,551 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Nine Months Ended September 30, 2018 Income Statement: Net interest income $ 143,603 $ 3,779 $ 3,598 $ 11,275 $ 162,255 Provision for (reversal of) loan losses 611 (1,315 ) (443 ) 2,897 1,750 Net interest income after provision for (reversal of) loan losses 142,992 5,094 4,041 8,378 160,505 Noninterest income 16,936 290 7,241 17,414 41,881 Noninterest expense 119,585 3,391 8,823 28,526 160,325 Net income (loss) before income tax: Banking 40,343 1,993 2,459 (2,734 ) 42,061 Non-banking contribution (1) 2,000 1 — (2,001 ) — 42,343 1,994 2,459 (4,735 ) 42,061 Income tax (expense) benefit (9,975 ) (470 ) 1,054 (1,267 ) (10,658 ) Net income (loss) $ 32,368 $ 1,524 $ 3,513 $ (6,002 ) $ 31,403 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total As of September 30, 2018 Loans, net (2) $ 5,843,823 $ 313,735 $ — $ (67,750 ) $ 6,089,808 Deposits $ 5,488,775 $ 14,955 $ 643,102 $ 42,671 $ 6,189,503 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Three Months Ended September 30, 2017 Income Statement: Net interest income $ 47,981 $ 2,181 $ 1,826 $ 3,078 $ 55,066 (Reversal of) provision for loan losses (3,547 ) (1,618 ) (363 ) 6,683 1,155 Net interest income after (reversal of) provision for loan losses 51,528 3,799 2,189 (3,605 ) 53,911 Noninterest income 6,192 120 2,811 14,967 24,090 Noninterest expense 41,184 1,294 3,002 6,742 52,222 Net income before income tax: Banking 16,536 2,625 1,998 4,620 25,779 Non-banking contribution (1) 1,120 17 — (1,137 ) — 17,656 2,642 1,998 3,483 25,779 Income tax (expense) benefit (6,295 ) (942 ) 97 (1,297 ) (8,437 ) Net income $ 11,361 $ 1,700 $ 2,095 $ 2,186 $ 17,342 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total Nine Months Ended September 30, 2017 Income Statement: Net interest income $ 133,145 $ 7,084 $ 6,419 $ 8,210 $ 154,858 Provision for (reversal of) loan losses 6,265 (1,260 ) (1,257 ) 5,150 8,898 Net interest income after provision for (reversal of) loan losses 126,880 8,344 7,676 3,060 145,960 Noninterest income 20,337 395 6,924 28,410 56,066 Noninterest expense 119,679 3,811 8,196 20,349 152,035 Net income before income tax: Banking 27,538 4,928 6,404 11,121 49,991 Non-banking contribution (1) 3,469 39 — (3,508 ) — 31,007 4,967 6,404 7,613 49,991 Income tax (expense) benefit (11,025 ) (1,765 ) 38 (3,000 ) (15,752 ) Net income $ 19,982 $ 3,202 $ 6,442 $ 4,613 $ 34,239 (in thousands) Personal and Commercial Banking ("PAC") Corporate LATAM Treasury Institutional Total As of December 31, 2017 Loans, net (2)(3) $ 5,542,545 $ 521,616 $ — $ (64,325 ) $ 5,999,836 Deposits $ 5,454,216 $ 18,670 $ 779,969 $ 70,118 $ 6,322,973 __________________ (1) Non-banking contribution reflects allocations of the net results of the Trust Company and Investment Services subsidiaries to the customers’ primary business unit. (2) Provisions for the periods presented are allocated to each applicable reportable segment. The allowance for loan losses and unearned deferred loan costs and fees are reported entirely within Institutional. (3) Balances include loans held for sale of $5.6 million which are allocated to PAC. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | Oct. 23, 2018 | Mar. 13, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)subsidiaryshares | Sep. 30, 2017USD ($)shares | Apr. 02, 2018 | Mar. 15, 2018 | Feb. 06, 2018shares | Dec. 31, 2017shares | Dec. 31, 2016shares |
Class of Stock [Line Items] | |||||||||
Number of subsidiaries | subsidiary | 2 | ||||||||
Dividend paid | $ | $ 40,000 | $ 40,000 | $ 0 | ||||||
Cash dividends declared per common share (in dollars per share) | $ / shares | $ 0.94 | ||||||||
Distribution Trust Agreement, percentage of common shareholders equity held by trust | 80.10% | ||||||||
Distribution Trust Agreement, percentage of retained shareholders equity held by trust | 19.90% | ||||||||
Class A | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | ||||||
Common stock, shares issued (in shares) | 24,737,470 | 24,737,470 | 74,212,408 | 24,737,470 | 24,737,470 | ||||
Common stock, shares outstanding (in shares) | 24,737,470 | 24,737,470 | |||||||
Class A | Previously Reported | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares issued (in shares) | 74,212,408 | ||||||||
Common stock, shares outstanding (in shares) | 74,212,408 | ||||||||
Class B | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common stock, shares issued (in shares) | 17,751,053 | 17,751,053 | 53,253,157 | 17,751,053 | 17,751,053 | ||||
Common stock, shares outstanding (in shares) | 17,751,053 | 17,751,053 | |||||||
Class B | Previously Reported | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares issued (in shares) | 53,253,157 | ||||||||
Common stock, shares outstanding (in shares) | 53,253,157 | ||||||||
Subsequent event | |||||||||
Class of Stock [Line Items] | |||||||||
Stock split, conversion ratio | 0.3333 | ||||||||
Mercantil Servicios Financieros, C.A. (MSF) | |||||||||
Class of Stock [Line Items] | |||||||||
Percent of common stock shares outstanding exchanged | 100.00% | ||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class A | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding (in shares) | 298,570,328 | ||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class B | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding (in shares) | 215,188,764 | ||||||||
Amerant Bank, N.A | |||||||||
Class of Stock [Line Items] | |||||||||
Ownership percentage of subsidiary | 100.00% | ||||||||
Mercantil Bank Holding Corporation | Mercantil Servicios Financieros, C.A. (MSF) | |||||||||
Class of Stock [Line Items] | |||||||||
Ownership percentage of subsidiary | 100.00% | ||||||||
Mercantil Bank, N.A. | |||||||||
Class of Stock [Line Items] | |||||||||
Ownership percentage of subsidiary | 100.00% |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Amounts reclassified from AOCI to retained earnings | $ 1.1 |
Securities - Amortized Cost to
Securities - Amortized Cost to Fair Value of Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,675,640 | $ 1,700,571 |
Gross Unrealized Gains | 3,560 | 8,445 |
Gross Unrealized Losses | (51,079) | (21,859) |
Estimated Fair Value | 1,628,121 | 1,687,157 |
U.S. government sponsored enterprise debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 837,796 | 889,396 |
Gross Unrealized Gains | 1,008 | 1,784 |
Gross Unrealized Losses | (34,130) | (15,514) |
Estimated Fair Value | 804,674 | 875,666 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 369,496 | 310,781 |
Gross Unrealized Gains | 2,332 | 3,446 |
Gross Unrealized Losses | (3,417) | (835) |
Estimated Fair Value | 368,411 | 313,392 |
U.S. government agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 266,758 | 293,908 |
Gross Unrealized Gains | 210 | 870 |
Gross Unrealized Losses | (6,197) | (3,393) |
Estimated Fair Value | 260,771 | 291,385 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 176,825 | 179,524 |
Gross Unrealized Gains | 10 | 2,343 |
Gross Unrealized Losses | (5,980) | (1,471) |
Estimated Fair Value | 170,855 | 180,396 |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,265 | 24,262 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,355) | (645) |
Estimated Fair Value | 22,910 | 23,617 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 500 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | $ 500 | |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,700 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (1) | |
Estimated Fair Value | $ 2,701 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale | $ 1,628,121,000 | $ 1,687,157,000 |
Foreign sovereign debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale | 0 | 0 |
Collateral Pledged | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities available for sale with a fair value, pledged as collateral | $ 243,000,000 | $ 246,000,000 |
Securities - Unrealized Loss on
Securities - Unrealized Loss on Available for Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | $ 637,257 | $ 524,751 |
12 Months or More, Estimated Fair Value | 736,830 | 719,142 |
Total, Estimated Fair Value | 1,374,087 | 1,243,893 |
Less Than 12 Months, Unrealized Loss | (14,698) | (4,443) |
12 Months or More, Unrealized Loss | (36,381) | (17,416) |
Total, Unrealized Loss | (51,079) | (21,859) |
U.S. government sponsored enterprise debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 257,674 | 333,232 |
12 Months or More, Estimated Fair Value | 487,848 | 485,555 |
Total, Estimated Fair Value | 745,522 | 818,787 |
Less Than 12 Months, Unrealized Loss | (8,239) | (2,956) |
12 Months or More, Unrealized Loss | (25,891) | (12,558) |
Total, Unrealized Loss | (34,130) | (15,514) |
U.S. government agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 111,541 | 92,138 |
12 Months or More, Estimated Fair Value | 129,299 | 128,316 |
Total, Estimated Fair Value | 240,840 | 220,454 |
Less Than 12 Months, Unrealized Loss | (2,144) | (728) |
12 Months or More, Unrealized Loss | (4,053) | (2,665) |
Total, Unrealized Loss | (6,197) | (3,393) |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 88,908 | 4,895 |
12 Months or More, Estimated Fair Value | 76,246 | 76,003 |
Total, Estimated Fair Value | 165,154 | 80,898 |
Less Than 12 Months, Unrealized Loss | (1,840) | (8) |
12 Months or More, Unrealized Loss | (4,140) | (1,463) |
Total, Unrealized Loss | (5,980) | (1,471) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 179,134 | 94,486 |
12 Months or More, Estimated Fair Value | 20,772 | 3,694 |
Total, Estimated Fair Value | 199,906 | 98,180 |
Less Than 12 Months, Unrealized Loss | (2,475) | (751) |
12 Months or More, Unrealized Loss | (942) | (84) |
Total, Unrealized Loss | (3,417) | (835) |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 0 | 0 |
12 Months or More, Estimated Fair Value | 22,665 | 23,375 |
Total, Estimated Fair Value | 22,665 | 23,375 |
Less Than 12 Months, Unrealized Loss | 0 | 0 |
12 Months or More, Unrealized Loss | (1,355) | (645) |
Total, Unrealized Loss | $ (1,355) | (645) |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 0 | |
12 Months or More, Estimated Fair Value | 2,199 | |
Total, Estimated Fair Value | 2,199 | |
Less Than 12 Months, Unrealized Loss | 0 | |
12 Months or More, Unrealized Loss | (1) | |
Total, Unrealized Loss | $ (1) |
Securities - Held to Maturity S
Securities - Held to Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 86,324 | $ 89,860 |
Gross Unrealized Gains | 0 | 47 |
Gross Unrealized Losses | (4,321) | (441) |
Estimated Fair Value | 82,003 | 89,466 |
U.S. government sponsored enterprise debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 83,408 | 86,826 |
Gross Unrealized Gains | 0 | 47 |
Gross Unrealized Losses | (4,204) | (441) |
Estimated Fair Value | 79,204 | 86,432 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,916 | 3,034 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (117) | 0 |
Estimated Fair Value | $ 2,799 | $ 3,034 |
Securities - Contractual Maturi
Securities - Contractual Maturities on Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available for Sale, Amortized Cost | ||
Within 1 year | $ 44,543 | |
After 1 year through 5 years | 303,053 | |
After 5 years through 10 years | 239,839 | |
After 10 years | 1,063,940 | |
No contractual maturities | 24,265 | |
Amortized Cost | 1,675,640 | $ 1,700,571 |
Available for Sale, Estimated Fair Value | ||
Within 1 year | 44,234 | |
After 1 year through 5 years | 300,596 | |
After 5 years through 10 years | 235,495 | |
After 10 years | 1,024,886 | |
No contractual maturities | 22,910 | |
Estimated Fair Value | 1,628,121 | 1,687,157 |
Held to Maturity, Amortized Cost | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 86,324 | |
No contractual maturities | 0 | |
Amortized Cost | 86,324 | 89,860 |
Held to Maturity, Estimated Fair Value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 82,003 | |
No contractual maturities | 0 | |
Estimated Fair Value | $ 82,003 | $ 89,466 |
Loans - Loan Portfolio by Class
Loans - Loan Portfolio by Classes (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 6,159,279 | $ 6,066,225 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,261,505 | 4,082,893 |
Real estate loans | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,792,708 | 1,713,104 |
Real estate loans | Multi-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 847,873 | 839,709 |
Real estate loans | Land development and construction loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 401,339 | 406,940 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,041,920 | 2,959,753 |
Real estate loans | Single-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 509,460 | 512,754 |
Real estate loans | Owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 710,125 | 610,386 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,470,222 | 1,354,755 |
Loans to financial institutions and acceptances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 310,967 | 497,626 |
Consumer loans and overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 116,585 | $ 130,951 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Syndication facilities included in loans | $ 971 | $ 989 |
Cash collateral on loans | 23.7 | 31.9 |
Loans pledged as collateral | $ 1,675 | $ 1,476 |
Loans - Loan Portfolio by Count
Loans - Loan Portfolio by Countries (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 6,159,279 | $ 6,066,225 |
Others | Assets, total | Geographic concentration risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1.00% | 1.00% |
International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 561,748 | $ 755,269 |
International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 139,614 | 141,088 |
International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 162,112 | 182,678 |
International | Chile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 94,543 | |
International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 260,022 | 336,960 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,261,505 | 4,082,893 |
Real estate loans | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 140,740 | 152,713 |
Real estate loans | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 361 | 219 |
Real estate loans | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 134,090 | 145,069 |
Real estate loans | International | Chile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 179 | |
Real estate loans | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,289 | 7,246 |
Loans to financial institutions and acceptances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 310,967 | 497,626 |
Loans to financial institutions and acceptances | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 294,616 | 481,183 |
Loans to financial institutions and acceptances | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 130,866 | 129,372 |
Loans to financial institutions and acceptances | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | International | Chile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 93,000 | |
Loans to financial institutions and acceptances | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 163,750 | 258,811 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,470,222 | 1,354,755 |
Commercial loans | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 87,267 | 69,294 |
Commercial loans | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,365 | 8,451 |
Commercial loans | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial loans | International | Chile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | |
Commercial loans | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 83,902 | 60,843 |
Consumer loans and overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 116,585 | 130,951 |
Consumer loans and overdrafts | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 39,125 | 52,079 |
Consumer loans and overdrafts | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,022 | 3,046 |
Consumer loans and overdrafts | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 28,022 | 37,609 |
Consumer loans and overdrafts | International | Chile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,364 | |
Consumer loans and overdrafts | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 6,081 | $ 10,060 |
Loans - Loans by Delinquency (D
Loans - Loans by Delinquency (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | $ 6,159,279 | $ 6,066,225 |
Current | 6,147,493 | 6,042,448 |
Past Due | 11,786 | 23,777 |
Total Loans in Nonaccrual Status | 28,617 | 26,722 |
Total Loans 90 Days or More Past Due and Accruing | 1,085 | 226 |
30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,554 | 10,051 |
60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,811 | 2,958 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 6,421 | 10,768 |
Real estate loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 4,261,505 | 4,082,893 |
Current | 4,252,683 | 4,063,309 |
Past Due | 8,822 | 19,584 |
Total Loans in Nonaccrual Status | 22,099 | 17,720 |
Total Loans 90 Days or More Past Due and Accruing | 251 | 226 |
Real estate loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,781 | 9,609 |
Real estate loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,120 | 2,924 |
Real estate loans | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,921 | 7,051 |
Real estate loans | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 1,792,708 | 1,713,104 |
Current | 1,792,639 | 1,712,624 |
Past Due | 69 | 480 |
Total Loans in Nonaccrual Status | 10,244 | 489 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Real estate loans | Non-owner occupied | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 69 | 0 |
Real estate loans | Non-owner occupied | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Non-owner occupied | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 480 |
Real estate loans | Multi-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 847,873 | 839,709 |
Current | 847,873 | 839,709 |
Past Due | 0 | 0 |
Total Loans in Nonaccrual Status | 0 | 0 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Real estate loans | Multi-family residential | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Multi-family residential | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Multi-family residential | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Land development and construction loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 401,339 | 406,940 |
Current | 401,339 | 406,940 |
Past Due | 0 | 0 |
Total Loans in Nonaccrual Status | 0 | 0 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Real estate loans | Land development and construction loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Land development and construction loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Land development and construction loans | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 3,041,920 | 2,959,753 |
Current | 3,041,851 | 2,959,273 |
Past Due | 69 | 480 |
Total Loans in Nonaccrual Status | 10,244 | 489 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Real estate loans | Commercial real estate | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 69 | 0 |
Real estate loans | Commercial real estate | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Real estate loans | Commercial real estate | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 480 |
Real estate loans | Single-family residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 509,460 | 512,754 |
Current | 502,345 | 501,393 |
Past Due | 7,115 | 11,361 |
Total Loans in Nonaccrual Status | 7,047 | 5,004 |
Total Loans 90 Days or More Past Due and Accruing | 251 | 226 |
Real estate loans | Single-family residential | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 618 | 6,609 |
Real estate loans | Single-family residential | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,765 | 2,750 |
Real estate loans | Single-family residential | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 4,732 | 2,002 |
Real estate loans | Owner-occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 710,125 | 610,386 |
Current | 708,487 | 602,643 |
Past Due | 1,638 | 7,743 |
Total Loans in Nonaccrual Status | 4,808 | 12,227 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Real estate loans | Owner-occupied | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,094 | 3,000 |
Real estate loans | Owner-occupied | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 355 | 174 |
Real estate loans | Owner-occupied | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 189 | 4,569 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 1,470,222 | 1,354,755 |
Current | 1,468,777 | 1,350,667 |
Past Due | 1,445 | 4,088 |
Total Loans in Nonaccrual Status | 6,461 | 8,947 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Commercial loans | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 371 | 385 |
Commercial loans | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 422 | 5 |
Commercial loans | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 652 | 3,698 |
Loans to financial institutions and acceptances | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 310,967 | 497,626 |
Current | 310,967 | 497,626 |
Past Due | 0 | 0 |
Total Loans in Nonaccrual Status | 0 | 0 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 |
Loans to financial institutions and acceptances | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans to financial institutions and acceptances | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Loans to financial institutions and acceptances | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 0 | 0 |
Consumer loans and overdrafts | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans, Net of Unearned Income | 116,585 | 130,951 |
Current | 115,066 | 130,846 |
Past Due | 1,519 | 105 |
Total Loans in Nonaccrual Status | 57 | 55 |
Total Loans 90 Days or More Past Due and Accruing | 834 | 0 |
Consumer loans and overdrafts | 30-59 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 402 | 57 |
Consumer loans and overdrafts | 60-89 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 269 | 29 |
Consumer loans and overdrafts | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 848 | $ 19 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowances by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of the period | $ 69,931 | $ 82,706 | $ 72,000 | $ 81,751 |
Provision for (reversal of) loan losses | 1,600 | 1,155 | 1,750 | 8,898 |
Recoveries | 236 | 1,217 | 1,553 | 2,588 |
Balances at end of the period | 69,471 | 84,634 | 69,471 | 84,634 |
Allowance for loan losses by impairment methodology, Individually evaluated | 8,372 | 3,107 | 8,372 | 3,107 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 61,099 | 81,527 | 61,099 | 81,527 |
Investment in loans, net of unearned income, Individually evaluated | 27,390 | 35,065 | 27,390 | 35,065 |
Investment in loans, net of unearned income, Collectively evaluated | 6,131,889 | 6,081,906 | 6,131,889 | 6,081,906 |
Total Loans, Net of Unearned Income | 6,159,279 | 6,116,971 | 6,159,279 | 6,116,971 |
Domestic | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | (592) | (39) | (3,446) | (1,679) |
International | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | (1,704) | (405) | (2,386) | (6,924) |
Real estate loans | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of the period | 28,693 | 34,840 | 31,290 | 30,713 |
Provision for (reversal of) loan losses | 386 | 2,074 | (2,249) | 6,130 |
Recoveries | 0 | 693 | 38 | 861 |
Balances at end of the period | 29,079 | 37,607 | 29,079 | 37,607 |
Allowance for loan losses by impairment methodology, Individually evaluated | 5,783 | 0 | 5,783 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 23,296 | 37,607 | 23,296 | 37,607 |
Investment in loans, net of unearned income, Individually evaluated | 10,965 | 8,744 | 10,965 | 8,744 |
Investment in loans, net of unearned income, Collectively evaluated | 2,991,808 | 2,797,265 | 2,991,808 | 2,797,265 |
Total Loans, Net of Unearned Income | 3,002,773 | 2,806,009 | 3,002,773 | 2,806,009 |
Real estate loans | Domestic | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | 0 | 0 | 0 | (97) |
Real estate loans | International | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | 0 | 0 | 0 | 0 |
Commercial loans | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of the period | 29,784 | 40,201 | 32,687 | 40,897 |
Provision for (reversal of) loan losses | 1,016 | (2,872) | (199) | 3,823 |
Recoveries | 187 | 425 | 1,288 | 491 |
Balances at end of the period | 29,040 | 37,599 | 29,040 | 37,599 |
Allowance for loan losses by impairment methodology, Individually evaluated | 969 | 3,107 | 969 | 3,107 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 28,071 | 34,492 | 28,071 | 34,492 |
Investment in loans, net of unearned income, Individually evaluated | 11,887 | 24,493 | 11,887 | 24,493 |
Investment in loans, net of unearned income, Collectively evaluated | 2,288,635 | 2,266,440 | 2,288,635 | 2,266,440 |
Total Loans, Net of Unearned Income | 2,300,522 | 2,290,933 | 2,300,522 | 2,290,933 |
Commercial loans | Domestic | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | (526) | (30) | (3,263) | (1,445) |
Commercial loans | International | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | (1,421) | (125) | (1,473) | (6,167) |
Loans to financial institutions and acceptances | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of the period | 3,317 | 3,976 | 4,362 | 5,304 |
Provision for (reversal of) loan losses | (482) | 414 | (1,527) | (914) |
Recoveries | 0 | 0 | 0 | 0 |
Balances at end of the period | 2,835 | 4,390 | 2,835 | 4,390 |
Allowance for loan losses by impairment methodology, Individually evaluated | 0 | 0 | 0 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 2,835 | 4,390 | 2,835 | 4,390 |
Investment in loans, net of unearned income, Individually evaluated | 0 | 0 | 0 | 0 |
Investment in loans, net of unearned income, Collectively evaluated | 311,324 | 471,445 | 311,324 | 471,445 |
Total Loans, Net of Unearned Income | 311,324 | 471,445 | 311,324 | 471,445 |
Loans to financial institutions and acceptances | Domestic | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | 0 | 0 | 0 | 0 |
Loans to financial institutions and acceptances | International | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | 0 | 0 | 0 | 0 |
Consumer loans and overdrafts | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balances at beginning of the period | 8,137 | 3,689 | 3,661 | 4,837 |
Provision for (reversal of) loan losses | 680 | 1,539 | 5,725 | (141) |
Recoveries | 49 | 99 | 227 | 1,236 |
Balances at end of the period | 8,517 | 5,038 | 8,517 | 5,038 |
Allowance for loan losses by impairment methodology, Individually evaluated | 1,620 | 0 | 1,620 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 6,897 | 5,038 | 6,897 | 5,038 |
Investment in loans, net of unearned income, Individually evaluated | 4,538 | 1,828 | 4,538 | 1,828 |
Investment in loans, net of unearned income, Collectively evaluated | 540,122 | 546,756 | 540,122 | 546,756 |
Total Loans, Net of Unearned Income | 544,660 | 548,584 | 544,660 | 548,584 |
Consumer loans and overdrafts | Domestic | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | (66) | (9) | (183) | (137) |
Consumer loans and overdrafts | International | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Loans charged-off | $ (283) | $ (280) | $ (913) | $ (757) |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment of Loan Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Impaired [Line Items] | ||||
Amount of loan sales | $ 37,119 | $ 24,676 | $ 60,856 | $ 59,764 |
Real estate loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Amount of loan sales | 2,000 | 0 | 2,000 | 91 |
Commercial loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Amount of loan sales | 31,847 | 14,545 | 47,577 | 34,202 |
Loans to financial institutions and acceptances | ||||
Financing Receivable, Impaired [Line Items] | ||||
Amount of loan sales | 0 | 7,000 | 0 | 14,677 |
Consumer loans and overdrafts | ||||
Financing Receivable, Impaired [Line Items] | ||||
Amount of loan sales | $ 3,272 | $ 3,131 | $ 11,279 | $ 10,794 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | $ 17,010 | $ 7,173 |
Recorded Investment, Without a Valuation Allowance | 10,380 | 15,426 |
Recorded Investment, Total | 27,390 | 22,599 |
Year-To-Date Average | 29,791 | 44,233 |
Total Unpaid Principal Balance | 28,834 | 29,635 |
Valuation Allowance | 8,372 | 2,866 |
Real estate loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 14,969 | 0 |
Recorded Investment, Without a Valuation Allowance | 5,791 | 13,440 |
Recorded Investment, Total | 20,760 | 13,440 |
Year-To-Date Average | 21,404 | 26,022 |
Total Unpaid Principal Balance | 20,817 | 14,851 |
Valuation Allowance | 7,620 | 0 |
Real estate loans | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 10,244 | 0 |
Recorded Investment, Without a Valuation Allowance | 0 | 327 |
Recorded Investment, Total | 10,244 | 327 |
Year-To-Date Average | 10,580 | 225 |
Total Unpaid Principal Balance | 10,295 | 327 |
Valuation Allowance | 5,783 | 0 |
Real estate loans | Multi-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 0 | 0 |
Recorded Investment, Without a Valuation Allowance | 721 | 1,318 |
Recorded Investment, Total | 721 | 1,318 |
Year-To-Date Average | 727 | 7,898 |
Total Unpaid Principal Balance | 726 | 1,330 |
Valuation Allowance | 0 | 0 |
Real estate loans | Land development and construction loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 0 | 0 |
Recorded Investment, Without a Valuation Allowance | 0 | 0 |
Recorded Investment, Total | 0 | 0 |
Year-To-Date Average | 0 | 1,359 |
Total Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Real estate loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 10,244 | 0 |
Recorded Investment, Without a Valuation Allowance | 721 | 1,645 |
Recorded Investment, Total | 10,965 | 1,645 |
Year-To-Date Average | 11,307 | 9,482 |
Total Unpaid Principal Balance | 11,021 | 1,657 |
Valuation Allowance | 5,783 | 0 |
Real estate loans | Single-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 4,553 | 0 |
Recorded Investment, Without a Valuation Allowance | 282 | 877 |
Recorded Investment, Total | 4,835 | 877 |
Year-To-Date Average | 4,264 | 3,100 |
Total Unpaid Principal Balance | 4,842 | 871 |
Valuation Allowance | 1,760 | 0 |
Real estate loans | Owner-occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 172 | 0 |
Recorded Investment, Without a Valuation Allowance | 4,788 | 10,918 |
Recorded Investment, Total | 4,960 | 10,918 |
Year-To-Date Average | 5,833 | 13,440 |
Total Unpaid Principal Balance | 4,954 | 12,323 |
Valuation Allowance | 77 | 0 |
Commercial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 2,019 | 7,173 |
Recorded Investment, Without a Valuation Allowance | 4,579 | 1,986 |
Recorded Investment, Total | 6,598 | 9,159 |
Year-To-Date Average | 8,374 | 18,211 |
Total Unpaid Principal Balance | 7,861 | 14,784 |
Valuation Allowance | 743 | $ 2,866 |
Consumer loans and overdrafts | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 22 | |
Recorded Investment, Without a Valuation Allowance | 10 | |
Recorded Investment, Total | 32 | |
Year-To-Date Average | 13 | |
Total Unpaid Principal Balance | 156 | |
Valuation Allowance | $ 9 |
Allowance for Loan Losses - Nar
Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)loan | Sep. 30, 2017USD ($) | |
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on impaired loans | $ 11,000 | $ 24,100 | $ 119,000 | $ 1,100,000 |
Recorded investment in loans considered troubled debt restructuring | 12,700,000 | |||
Charge off against Allowance for loan losses | $ 1,100,000 | |||
TDR loans completed | loan | 0 | |||
Real estate loans | Non-owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment in loans considered troubled debt restructuring | $ 10,200,000 | |||
Real estate loans | Owner-occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment in loans considered troubled debt restructuring | 1,900,000 | |||
Commercial loans | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment in loans considered troubled debt restructuring | $ 600,000 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Risk Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 6,159,279 | $ 6,066,225 |
Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,119,296 | 6,027,775 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 39,384 | 38,450 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 599 | 0 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,261,505 | 4,082,893 |
Real estate loans | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,236,774 | 4,062,668 |
Real estate loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 24,731 | 20,225 |
Real estate loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,792,708 | 1,713,104 |
Real estate loans | Non-owner occupied | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,782,188 | 1,712,615 |
Real estate loans | Non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,520 | 489 |
Real estate loans | Non-owner occupied | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Non-owner occupied | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 847,873 | 839,709 |
Real estate loans | Multi-family residential | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 847,873 | 839,709 |
Real estate loans | Multi-family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Land development and construction loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 401,339 | 406,940 |
Real estate loans | Land development and construction loans | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 401,339 | 406,940 |
Real estate loans | Land development and construction loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Land development and construction loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Land development and construction loans | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,041,920 | 2,959,753 |
Real estate loans | Commercial real estate | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,031,400 | 2,959,264 |
Real estate loans | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,520 | 489 |
Real estate loans | Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Commercial real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Single-family residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 509,460 | 512,754 |
Real estate loans | Single-family residential | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 502,096 | 506,885 |
Real estate loans | Single-family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,364 | 5,869 |
Real estate loans | Single-family residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Single-family residential | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Owner-occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 710,125 | 610,386 |
Real estate loans | Owner-occupied | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 703,278 | 596,519 |
Real estate loans | Owner-occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,847 | 13,867 |
Real estate loans | Owner-occupied | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Owner-occupied | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,470,222 | 1,354,755 |
Commercial loans | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,460,907 | 1,340,643 |
Commercial loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,716 | 14,112 |
Commercial loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 599 | 0 |
Commercial loans | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 310,967 | 497,626 |
Loans to financial institutions and acceptances | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 310,967 | 497,626 |
Loans to financial institutions and acceptances | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer loans and overdrafts | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 116,585 | 130,951 |
Consumer loans and overdrafts | Nonclassified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 110,648 | 126,838 |
Consumer loans and overdrafts | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,937 | 4,113 |
Consumer loans and overdrafts | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer loans and overdrafts | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Time Deposits (Details)
Time Deposits (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Time deposits, $100,000 or more | $ 1,400 | $ 1,200 |
Time deposits, $250,000 or more | 723 | 624 |
Time deposits, including brokered deposits, less than $100,000 | $ 643 | $ 780 |
Advances From the Federal Hom_3
Advances From the Federal Home Loan Bank and Other Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2,018 | $ 437,000 | $ 567,000 |
2,019 | 225,000 | 155,000 |
2,020 | 306,000 | 211,000 |
2,021 | 210,000 | 240,000 |
2022 and after | 160,000 | 0 |
Advances from Federal Home Loan Banks | $ 1,338,000 | $ 1,173,000 |
3-month LIBOR | Minimum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest Rate 2018 | 0.90% | |
Interest Rate 2019 | 1.00% | |
Interest Rate 2020 | 1.50% | |
Interest Rate 2021 | 1.93% | |
Interest Rate 2022 and after | 2.48% | |
3-month LIBOR | Maximum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Interest Rate 2018 | 2.38% | |
Interest Rate 2019 | 3.86% | |
Interest Rate 2020 | 2.74% | |
Interest Rate 2021 | 3.08% | |
Interest Rate 2022 and after | 3.14% |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 18,596 | $ 7,032 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1,969 | 1,570 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 16,627 | 5,462 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 760 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 760 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 760 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Third Party Broker | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 760 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Third Party Broker | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,209 | 195 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1,209 | 195 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1,209 | 195 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Third Party Broker | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,209 | 195 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Third Party Broker | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)instrument | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)instrument | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)instrument | |
Derivatives, Fair Value [Line Items] | |||||
Hedge ineffectiveness gain (loss) | $ 0 | $ 0 | $ 0 | $ 0 | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of instruments held | instrument | 16 | 16 | 15 | ||
Notional amount | $ 280,000,000 | $ 280,000,000 | $ 255,000,000 | ||
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of instruments held | instrument | 4 | 4 | 1 | ||
Notional amount | $ 64,600,000 | $ 64,600,000 | $ 54,600,000 | ||
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of instruments held | instrument | 13 | 13 | 7 | ||
Notional amount | $ 286,100,000 | $ 286,100,000 | $ 162,100,000 |
Net Gain on Sale of Premises _2
Net Gain on Sale of Premises and Equipment (Details) - Disposed of by Sale $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017USD ($)property | Sep. 30, 2017USD ($)property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of properties disposed | property | 1 | 2 |
Gains on sales of property | $ 10.5 | $ 11.3 |
One Property Sold During The Third Quarter | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Property, at carrying value | 17.6 | 17.6 |
Two Properties Sold Through The Third Quarter | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Property, at carrying value | $ 19.1 | $ 19.1 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 25.34% | 31.51% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (“AOCL”) - Componenets of AOCL (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | $ (30,892) | $ (7,813) |
Tax Effect | 7,581 | 1,680 |
Net of Tax Amount | (23,311) | (6,133) |
Unrealized losses on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | (47,519) | (13,415) |
Tax Effect | 11,618 | 2,884 |
Net of Tax Amount | (35,901) | (10,531) |
Unrealized gains on interest rate swaps designated as cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | 16,627 | 5,602 |
Tax Effect | (4,037) | (1,204) |
Net of Tax Amount | $ 12,590 | $ 4,398 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (“AOCL”) - Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Before Tax Amount | ||||
Total other comprehensive (loss) income, Before Tax Amount | $ (4,312) | $ 4,755 | $ (23,079) | $ 14,382 |
Tax Effect | ||||
Total other comprehensive (loss) income, Tax Effect | 1,054 | (1,689) | 5,901 | (5,106) |
Net of Tax Amount | ||||
Reclassification adjustment for net (gains) losses included in net income, Net of Tax Amount | (160) | 1,481 | (18) | 2,118 |
Other comprehensive (loss) income | (3,258) | 3,066 | (17,178) | 9,276 |
Unrealized (losses) gains on available for sale securities: | ||||
Before Tax Amount | ||||
Change in fair value arising during the period, Before Tax Amount | (6,537) | 2,945 | (34,103) | 14,653 |
Reclassification adjustment for net (gains) losses included in net income, Before Tax Amount | 15 | 1,842 | (1) | 1,687 |
Total other comprehensive (loss) income, Before Tax Amount | (6,522) | 4,787 | (34,104) | 16,340 |
Tax Effect | ||||
Change in fair value arising during the period, Tax Effect | 1,599 | (1,047) | 8,734 | (5,203) |
Reclassification adjustment for net (gains) losses included in net income, Tax Effect | (4) | (653) | 0 | (598) |
Total other comprehensive (loss) income, Tax Effect | 1,595 | (1,700) | 8,734 | (5,801) |
Net of Tax Amount | ||||
Change in fair value arising during the period, Net of Tax Amount | (4,938) | 1,898 | (25,369) | 9,450 |
Reclassification adjustment for net (gains) losses included in net income, Net of Tax Amount | 11 | 1,189 | (1) | 1,089 |
Other comprehensive (loss) income | (4,927) | 3,087 | (25,370) | 10,539 |
Unrealized gains (losses) on interest rate swaps designated as cash flow hedges: | ||||
Before Tax Amount | ||||
Change in fair value arising during the period, Before Tax Amount | 2,437 | (483) | 11,045 | (3,553) |
Reclassification adjustment for net (gains) losses included in net income, Before Tax Amount | (227) | 451 | (20) | 1,595 |
Total other comprehensive (loss) income, Before Tax Amount | 2,210 | (32) | 11,025 | (1,958) |
Tax Effect | ||||
Change in fair value arising during the period, Tax Effect | (597) | 170 | (2,836) | 1,261 |
Reclassification adjustment for net (gains) losses included in net income, Tax Effect | 56 | (159) | 3 | (566) |
Total other comprehensive (loss) income, Tax Effect | (541) | 11 | (2,833) | 695 |
Net of Tax Amount | ||||
Change in fair value arising during the period, Net of Tax Amount | 1,840 | (313) | 8,209 | (2,292) |
Reclassification adjustment for net (gains) losses included in net income, Net of Tax Amount | (171) | 292 | (17) | 1,029 |
Other comprehensive (loss) income | $ 1,669 | $ (21) | $ 8,192 | $ (1,263) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 1.5 | $ 1.5 | $ 4.5 | $ 4.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Off-Balance Sheet Credit Risk (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | $ 1,067,211 |
Commitments to extend credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 843,850 |
Credit card facilities | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 202,873 |
Standby letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 20,447 |
Commercial letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | $ 41 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Securities available for sale | ||
Securities available for sale | $ 1,628,121 | $ 1,687,157 |
Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 1,628,121 | 1,687,157 |
Bank owned life insurance | 204,690 | 200,318 |
Derivative instruments | 18,596 | 7,032 |
Assets, fair value | 1,851,407 | 1,894,507 |
Liabilities | ||
Derivative instruments | 1,969 | 1,570 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Derivative instruments | 0 | 0 |
Assets, fair value | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 1,628,121 | 1,687,157 |
Bank owned life insurance | 204,690 | 200,318 |
Derivative instruments | 18,596 | 7,032 |
Assets, fair value | 1,851,407 | 1,894,507 |
Liabilities | ||
Derivative instruments | 1,969 | 1,570 |
Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Derivative instruments | 0 | 0 |
Assets, fair value | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
U.S. government sponsored enterprise debt securities | ||
Securities available for sale | ||
Securities available for sale | 804,674 | 875,666 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 804,674 | 875,666 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 804,674 | 875,666 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Corporate debt securities | ||
Securities available for sale | ||
Securities available for sale | 368,411 | 313,392 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 368,411 | 313,392 |
Corporate debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 368,411 | 313,392 |
Corporate debt securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. government agency debt securities | ||
Securities available for sale | ||
Securities available for sale | 260,771 | 291,385 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 260,771 | 291,385 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 260,771 | 291,385 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Municipal bonds | ||
Securities available for sale | ||
Securities available for sale | 170,855 | 180,396 |
Municipal bonds | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 170,855 | 180,396 |
Municipal bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Municipal bonds | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 170,855 | 180,396 |
Municipal bonds | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Mutual funds | ||
Securities available for sale | ||
Securities available for sale | 22,910 | 23,617 |
Mutual funds | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 22,910 | 23,617 |
Mutual funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Mutual funds | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 22,910 | 23,617 |
Mutual funds | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Commercial paper | ||
Securities available for sale | ||
Securities available for sale | 500 | |
Commercial paper | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 500 | |
Commercial paper | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
Commercial paper | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 500 | |
Commercial paper | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | $ 0 | |
U.S. treasury securities | ||
Securities available for sale | ||
Securities available for sale | 2,701 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 2,701 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 2,701 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | Sep. 30, 2018USD ($) |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assets (liabilities) measured at fair value | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total Impairments | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale | 5,611 |
Significant Other Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale | 0 |
Significant Other Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Where Fair Value Differes from Carrying Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Financial assets | ||
Loans | $ 2,809,731 | $ 2,682,790 |
Financial liabilities | ||
Time deposits | 1,736,021 | 1,466,464 |
Advances from the Federal Home Loan Bank | 1,336,000 | 1,161,000 |
Junior subordinated debentures | 118,110 | 118,110 |
Estimated Fair Value | ||
Financial assets | ||
Loans | 2,689,753 | 2,566,197 |
Financial liabilities | ||
Time deposits | 1,724,786 | 1,461,908 |
Advances from the Federal Home Loan Bank | 1,329,389 | 1,164,686 |
Junior subordinated debentures | $ 100,331 | $ 95,979 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income Statement: | |||||
Net interest income | $ 55,633 | $ 55,066 | $ 162,255 | $ 154,858 | |
Provision for (reversal of) loan losses | 1,600 | 1,155 | 1,750 | 8,898 | |
Net interest income after provision for loan losses | 54,033 | 53,911 | 160,505 | 145,960 | |
Noninterest income | 12,950 | 24,090 | 41,881 | 56,066 | |
Noninterest expense | 52,042 | 52,222 | 160,325 | 152,035 | |
Net income (loss) before income tax: | |||||
Net income before income tax | 14,941 | 25,779 | 42,061 | 49,991 | |
Income tax expense | (3,390) | (8,437) | (10,658) | (15,752) | |
Net income | 11,551 | 17,342 | 31,403 | 34,239 | |
Balance Sheets | |||||
Loans, net | 6,089,808 | 6,089,808 | $ 5,994,225 | ||
Deposits | 6,189,503 | 6,189,503 | 6,322,973 | ||
Loans held for sale | 0 | 0 | 5,611 | ||
Operating Segments | |||||
Income Statement: | |||||
Net interest income | 55,633 | 55,066 | 162,255 | 154,858 | |
Provision for (reversal of) loan losses | 1,600 | 1,155 | 1,750 | 8,898 | |
Net interest income after provision for loan losses | 54,033 | 53,911 | 160,505 | 145,960 | |
Noninterest income | 12,950 | 24,090 | 41,881 | 56,066 | |
Noninterest expense | 52,042 | 52,222 | 160,325 | 152,035 | |
Net income (loss) before income tax: | |||||
Net income before income tax | 14,941 | 25,779 | 42,061 | 49,991 | |
Balance Sheets | |||||
Loans, net | 5,999,836 | ||||
Segment Reconciling Items | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | 0 | 0 | 0 | 0 | |
Personal and Commercial Banking (PAC) | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | 13,922 | 17,656 | 42,343 | 31,007 | |
Income tax expense | (3,268) | (6,295) | (9,975) | (11,025) | |
Net income | 10,654 | 11,361 | 32,368 | 19,982 | |
Balance Sheets | |||||
Loans, net | 5,843,823 | 5,843,823 | 5,542,545 | ||
Deposits | 5,488,775 | 5,488,775 | 5,454,216 | ||
Loans held for sale | 5,600 | ||||
Personal and Commercial Banking (PAC) | Operating Segments | |||||
Income Statement: | |||||
Net interest income | 49,817 | 47,981 | 143,603 | 133,145 | |
Provision for (reversal of) loan losses | 1,926 | (3,547) | 611 | 6,265 | |
Net interest income after provision for loan losses | 47,891 | 51,528 | 142,992 | 126,880 | |
Noninterest income | 5,520 | 6,192 | 16,936 | 20,337 | |
Noninterest expense | 40,242 | 41,184 | 119,585 | 119,679 | |
Net income (loss) before income tax: | |||||
Net income before income tax | 13,169 | 16,536 | 40,343 | 27,538 | |
Personal and Commercial Banking (PAC) | Segment Reconciling Items | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | 753 | 1,120 | 2,000 | 3,469 | |
Corporate LATAM | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | 1,515 | 2,642 | 1,994 | 4,967 | |
Income tax expense | (357) | (942) | (470) | (1,765) | |
Net income | 1,158 | 1,700 | 1,524 | 3,202 | |
Balance Sheets | |||||
Loans, net | 313,735 | 313,735 | 521,616 | ||
Deposits | 14,955 | 14,955 | 18,670 | ||
Corporate LATAM | Operating Segments | |||||
Income Statement: | |||||
Net interest income | 1,080 | 2,181 | 3,779 | 7,084 | |
Provision for (reversal of) loan losses | (1,090) | (1,618) | (1,315) | (1,260) | |
Net interest income after provision for loan losses | 2,170 | 3,799 | 5,094 | 8,344 | |
Noninterest income | 92 | 120 | 290 | 395 | |
Noninterest expense | 748 | 1,294 | 3,391 | 3,811 | |
Net income (loss) before income tax: | |||||
Net income before income tax | 1,514 | 2,625 | 1,993 | 4,928 | |
Corporate LATAM | Segment Reconciling Items | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | 1 | 17 | 1 | 39 | |
Treasury | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | (492) | 1,998 | 2,459 | 6,404 | |
Income tax expense | 658 | 97 | 1,054 | 38 | |
Net income | 166 | 2,095 | 3,513 | 6,442 | |
Balance Sheets | |||||
Loans, net | 0 | 0 | 0 | ||
Deposits | 643,102 | 643,102 | 779,969 | ||
Treasury | Operating Segments | |||||
Income Statement: | |||||
Net interest income | 700 | 1,826 | 3,598 | 6,419 | |
Provision for (reversal of) loan losses | 3 | (363) | (443) | (1,257) | |
Net interest income after provision for loan losses | 697 | 2,189 | 4,041 | 7,676 | |
Noninterest income | 1,840 | 2,811 | 7,241 | 6,924 | |
Noninterest expense | 3,029 | 3,002 | 8,823 | 8,196 | |
Net income (loss) before income tax: | |||||
Net income before income tax | (492) | 1,998 | 2,459 | 6,404 | |
Treasury | Segment Reconciling Items | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | 0 | 0 | 0 | 0 | |
Institutional | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | (4) | 3,483 | (4,735) | 7,613 | |
Income tax expense | (423) | (1,297) | (1,267) | (3,000) | |
Net income | (427) | 2,186 | (6,002) | 4,613 | |
Balance Sheets | |||||
Loans, net | (67,750) | (67,750) | (64,325) | ||
Deposits | 42,671 | 42,671 | $ 70,118 | ||
Institutional | Operating Segments | |||||
Income Statement: | |||||
Net interest income | 4,036 | 3,078 | 11,275 | 8,210 | |
Provision for (reversal of) loan losses | 761 | 6,683 | 2,897 | 5,150 | |
Net interest income after provision for loan losses | 3,275 | (3,605) | 8,378 | 3,060 | |
Noninterest income | 5,498 | 14,967 | 17,414 | 28,410 | |
Noninterest expense | 8,023 | 6,742 | 28,526 | 20,349 | |
Net income (loss) before income tax: | |||||
Net income before income tax | 750 | 4,620 | (2,734) | 11,121 | |
Institutional | Segment Reconciling Items | |||||
Net income (loss) before income tax: | |||||
Net income before income tax | $ (754) | $ (1,137) | $ (2,001) | $ (3,508) |