Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 26, 2019 | Aug. 29, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Mercantil Bank Holding Corp | ||
Entity Central Index Key | 0001734342 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 28,985,996 | ||
Entity Public Float | $ 445 | ||
Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 14,218,597 | ||
Entity Public Float | $ 320 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 25,756 | $ 44,531 |
Interest earning deposits with banks | 59,954 | 108,914 |
Cash and cash equivalents | 85,710 | 153,445 |
Securities | ||
Available for sale | 1,586,051 | 1,687,157 |
Held to maturity | 85,188 | 89,860 |
Federal Reserve Bank and Federal Home Loan Bank stock | 70,189 | 69,934 |
Securities | 1,741,428 | 1,846,951 |
Loans held for sale | 0 | 5,611 |
Loans, gross | 5,920,175 | 6,066,225 |
Less: Allowance for loan losses | 61,762 | 72,000 |
Loans, net | 5,858,413 | 5,994,225 |
Bank owned life insurance | 206,142 | 200,318 |
Premises and equipment, net | 123,503 | 129,357 |
Deferred tax assets, net | 16,310 | 14,583 |
Goodwill | 19,193 | 19,193 |
Accrued interest receivable and other assets | 73,648 | 73,084 |
Total assets | 8,124,347 | 8,436,767 |
Deposits | ||
Noninterest bearing | 768,822 | 895,710 |
Interest bearing | 1,288,030 | 1,496,749 |
Savings and money market | 1,588,703 | 1,684,080 |
Time | 2,387,131 | 2,246,434 |
Total deposits | 6,032,686 | 6,322,973 |
Advances from the Federal Home Loan Bank and other borrowings | 1,166,000 | 1,173,000 |
Junior subordinated debentures held by trust subsidiaries | 118,110 | 118,110 |
Accounts payable, accrued liabilities and other liabilities | 60,133 | 69,234 |
Total liabilities | 7,376,929 | 7,683,317 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Additional paid in capital | 385,367 | 367,505 |
Treasury stock, at cost; 1,420,136 Class B common shares | (17,908) | 0 |
Retained earnings | 393,662 | 387,829 |
Accumulated other comprehensive loss | (18,164) | (6,133) |
Total stockholders' equity | 747,418 | 753,450 |
Total liabilities and stockholders' equity | 8,124,347 | 8,436,767 |
Class A common stock | ||
Stockholders’ equity | ||
Common stock | 2,686 | 2,474 |
Class B common stock | ||
Stockholders’ equity | ||
Common stock | $ 1,775 | $ 1,775 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Feb. 06, 2018 | Dec. 31, 2017 |
Common stock, shares authorized (in shares) | 500,000,000 | ||
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) | 26,851,832 | 74,212,408 | 24,737,470 |
Common stock, shares outstanding (in shares) | 26,851,832 | 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 | 53,253,157 | 17,751,053 |
Common stock, shares outstanding (in shares) | 17,751,053 | 17,751,053 | |
Treasury stock (in shares) | 1,420,136 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | |||
Loans | $ 257,611 | $ 223,765 | $ 188,526 |
Investment securities | 49,207 | 47,913 | 49,495 |
Interest earning deposits with banks | 2,540 | 1,642 | 806 |
Total interest income | 309,358 | 273,320 | 238,827 |
Interest expense | |||
Interest bearing demand deposits | 657 | 394 | 653 |
Savings and money market deposits | 12,911 | 8,856 | 8,306 |
Time deposits | 42,189 | 26,787 | 16,576 |
Advances from the Federal Home Loan Bank | 26,470 | 18,235 | 10,971 |
Junior subordinated debentures | 8,086 | 7,456 | 7,129 |
Securities sold under agreements to repurchase | 6 | 1,882 | 3,259 |
Total interest expense | 90,319 | 63,610 | 46,894 |
Net interest income | 219,039 | 209,710 | 191,933 |
Provision for (reversal of) loan losses | 375 | (3,490) | 22,110 |
Net interest income after provision for loan losses | 218,664 | 213,200 | 169,823 |
Noninterest income | |||
Deposits and service fees | 17,753 | 19,560 | 20,928 |
Brokerage, advisory and fiduciary activities | 16,849 | 20,626 | 20,282 |
Change in cash surrender value of bank owned life insurance | 5,824 | 5,458 | 4,422 |
Cards and trade finance servicing fees | 4,424 | 4,589 | 4,250 |
Data processing, rental income and fees for other services to related parties | 2,517 | 3,593 | 4,409 |
Gain on early extinguishment of advances from the Federal Home Loan Bank | 882 | 0 | 714 |
Securities (losses) gains, net | (999) | (1,601) | 1,031 |
Other noninterest income | 6,625 | 19,260 | 6,234 |
Total noninterest income | 53,875 | 71,485 | 62,270 |
Noninterest expense | |||
Salaries and employee benefits | 141,801 | 131,800 | 129,681 |
Professional and other services fees | 19,119 | 16,399 | 11,937 |
Occupancy and equipment | 16,531 | 17,381 | 18,368 |
Telecommunication and data processing | 12,399 | 9,825 | 8,392 |
Depreciation and amortization | 8,543 | 9,040 | 9,130 |
FDIC assessments and insurance | 6,215 | 7,624 | 7,131 |
Other operating expenses | 10,365 | 15,567 | 13,664 |
Total noninterest expenses | 214,973 | 207,636 | 198,303 |
Net income before income tax | 57,566 | 77,049 | 33,790 |
Income tax expense | (11,733) | (33,992) | (10,211) |
Net income | 45,833 | 43,057 | 23,579 |
Other comprehensive (loss) income, net of tax | |||
Net unrealized holding (losses) gains on securities available for sale arising during the period | (15,265) | 3,577 | (3,839) |
Net unrealized holding gains (losses) on cash flow hedges arising during the period | 2,663 | 152 | 3,598 |
Reclassification adjustment for net losses (gains) included in net income | 571 | 833 | (1,004) |
Other comprehensive (loss) income | (12,031) | 4,562 | (1,245) |
Comprehensive income | $ 33,802 | $ 47,619 | $ 22,334 |
Basic and diluted income per common share (Note 20) (in dollars per share) | $ 1.08 | $ 1.01 | $ 0.55 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Class A | Class B | Common StockClass A | Common StockClass B | Additional Paid in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Shares Outstanding (in shares) at Dec. 31, 2015 | 24,737,470 | 17,751,053 | |||||||
Shares Issued (in shares) at Dec. 31, 2015 | 24,737,470 | 17,751,053 | |||||||
Beginning balance at Dec. 31, 2015 | $ 682,403 | $ 2,474 | $ 1,775 | $ 367,505 | $ 0 | $ 320,099 | $ (9,450) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 23,579 | 23,579 | |||||||
Other comprehensive) income (loss | (1,245) | (1,245) | |||||||
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 | |||||||
Ending balance at Dec. 31, 2016 | 704,737 | $ 2,474 | $ 1,775 | 367,505 | 0 | 343,678 | (10,695) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 43,057 | 43,057 | |||||||
Reclassification of tax law impact on AOCI | 0 | 1,094 | (1,094) | ||||||
Other comprehensive income | 5,656 | 5,656 | |||||||
Other comprehensive) income (loss | 4,562 | ||||||||
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 | 24,737,470 | 17,751,053 | |||||
Ending balance at Dec. 31, 2017 | 753,450 | $ 2,474 | $ 1,775 | 367,505 | 0 | 387,829 | (6,133) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued (in shares) | 1,377,523 | ||||||||
Common stock issued | 17,908 | $ 138 | 17,770 | ||||||
Repurchase of Class B common stock | (17,908) | (17,908) | |||||||
Restricted stock issued (in shares) | 736,839 | ||||||||
Restricted stock issued | 0 | $ 74 | (74) | ||||||
Stock-based compensation expense | 166 | 166 | |||||||
Net income | 45,833 | 45,833 | |||||||
Dividends | (40,000) | (40,000) | |||||||
Other comprehensive) income (loss | (12,031) | (12,031) | |||||||
Shares Outstanding (in shares) at Dec. 31, 2018 | 26,851,832 | 17,751,053 | 26,851,832 | 17,751,053 | |||||
Shares Issued (in shares) at Dec. 31, 2018 | 26,851,832 | 17,751,053 | 26,851,832 | 17,751,053 | |||||
Ending balance at Dec. 31, 2018 | $ 747,418 | $ 2,686 | $ 1,775 | $ 385,367 | $ (17,908) | $ 393,662 | $ (18,164) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 45,833 | $ 43,057 | $ 23,579 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for (reversal of) loan losses | 375 | (3,490) | 22,110 |
Net premium amortization on securities | 16,926 | 19,357 | 27,264 |
Depreciation and amortization | 8,543 | 9,040 | 9,130 |
Stock-based compensation expense | 166 | 0 | 0 |
Increase in cash surrender value of bank owned life insurance | (5,824) | (5,458) | (4,422) |
Net gain on sale of premises and equipment | 0 | (11,319) | (1,956) |
Deferred taxes, securities net gains or losses and others | 2,270 | 14,684 | (3,991) |
Gain on early extinguishment of advances from the FHLB | (882) | 0 | (714) |
Net changes in operating assets and liabilities | |||
Loans held for sale | 0 | (5,705) | (4,730) |
Accrued interest receivable and other assets | 3,655 | (1,257) | (7,937) |
Account payable, accrued liabilities and other liabilities | (8,901) | 14,373 | 16,935 |
Net cash provided by operating activities | 62,161 | 73,282 | 75,268 |
Purchases of investment securities: | |||
Available for sale | (216,237) | (231,675) | (1,084,029) |
Held to maturity securities | 0 | (90,196) | 0 |
Federal Home Loan Bank stock | (27,667) | (41,044) | (53,350) |
Purchases of investment securities | (243,904) | (362,915) | (1,137,379) |
Maturities, sales and calls of investment securities: | |||
Available for sale | 279,959 | 655,305 | 986,041 |
Held to maturity | 4,400 | 315 | 0 |
Federal Home Loan Bank stock | 27,413 | 30,600 | 44,253 |
Maturities, sales and calls of investment securities | 311,772 | 686,220 | 1,030,294 |
Net increase in loans | (33,199) | (393,636) | (259,931) |
Proceeds from loan portfolio sales | 173,473 | 85,767 | 105,164 |
Purchase of bank owned life insurance | 0 | (30,000) | (60,000) |
Purchases of premises and equipment | (10,044) | (8,606) | (8,535) |
Proceeds from sales of premises and equipment and others | 911 | 30,737 | 8,159 |
Net proceeds from sale of subsidiary | 7,500 | 0 | 0 |
Net cash provided by (used in) investing activities | 206,509 | 7,567 | (322,228) |
Cash flows from financing activities | |||
Net decrease in demand, savings and money market accounts | (430,984) | (663,568) | (388,520) |
Net increase in time deposits | 140,697 | 409,175 | 446,211 |
Net decrease in securities sold under agreements to repurchase | 0 | (50,000) | (23,488) |
Proceeds from Advances from the Federal Home Loan Bank and other borrowings | 1,278,000 | 1,771,500 | 2,239,000 |
Repayments of Advances from the Federal Home Loan Bank and other borrowings | (1,284,118) | (1,529,500) | (2,029,536) |
Dividend paid | (40,000) | 0 | 0 |
Proceeds from common stock issued - Class A | 17,908 | 0 | 0 |
Repurchase of common stock - Class B | (17,908) | 0 | 0 |
Net cash (used in) provided by financing activities | (336,405) | (62,393) | 243,667 |
Net (decrease) increase in cash and cash equivalents | (67,735) | 18,456 | (3,293) |
Cash and cash equivalents | |||
Beginning of period | 153,445 | 134,989 | 138,282 |
End of period | 85,710 | 153,445 | 134,989 |
Supplemental disclosures of cash flow information | |||
Cash paid for Interest | 89,283 | 61,590 | 46,109 |
Cash paid for Income taxes | 18,954 | 18,881 | 9,264 |
Noncash investing activities: | |||
Loans transferred to other assets | 925 | 319 | 5,545 |
Loans held for sale exchanged for securities | $ 0 | $ 4,710 | $ 4,659 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | Business, Basis of Presentation and Summary of Significant Accounting Policies a) Business 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 ”) and the Federal Home Loan Bank of Atlanta (“FHLB”). The Bank has two principal subsidiaries, Amerant Investments, Inc., a securities broker-dealer (“Amerant Investments”), and Amerant Trust, N.A., a non-depository trust company (“Amerant Trust”). The Bank has been serving the communities in which it operates for almost 40 years. The Bank is headquartered in the City of Coral Gables, Florida and has 23 Banking Centers, including 15 located in South Florida and 8 in the Greater Houston area, Texas, as well as a loan production office in New York City, New York, and a loan production office recently opened in Dallas, Texas. As the main operating subsidiary of the Company, the Bank offers a wide variety of domestic, international, personal and commercial banking services. Investment, trust, fiduciary and wealth management services are provided through the Bank’s main operating subsidiaries Amerant Investments, Inc. and Amerant Trust, N.A. The Company, Mercantil Servicios Financieros, C.A. (“MSF” or the “former parent”), and various individuals as Voting Trustees, entered into a Voting Trust Agreement (the “Voting Trust”) in October 2008. 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 24, 2018, the Company announced it is 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 upon approval at its annual shareholders’ meeting in 2019. b) Spin-off As of December 31, 2017 the Company was a wholly owned subsidiary of MSF. On March 15, 2018, MSF transferred ownership of 100% of the Company Shares to a non-discretionary common law, grantor trust formed pursuant to a Distribution Agreement among MSF, the Company and an unaffiliated trustee dated as of March 12, 2018, and 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. 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 the Company Shares were held in the Distribution Trust for the benefit of MSF (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 became a separate company and its common stock was listed on the Nasdaq Global Select Market on August 13, 2018. The Distribution Trust held the Retained Shares pending their disposition by MSF. c) Initial Public Offering On December 21, 2018, the Company completed an initial public offering (the “IPO”). See Note 15 to our consolidated financial statements for more information about the IPO. At December 31, 2018, MSF beneficially owned less than 5% of all of the Company’s outstanding shares of common stock and the Board of Governors of the Federal Reserve System determined that MSF no longer controlled the Company for purposes of the Bank Holding Company Act of 1956. In December 2018 in connection with the IPO, the Company repurchased approximately $1.4 million shares of Class B common stock from MSF. In March 2019, following the partial exercise of the over-allotment option by the IPO’s underwriters, and completion of certain private placements of shares of the Company’s Class A common stock, the Company repurchased the remaining shares of Class B common stock held by MSF. See Note 15 to our consolidated financial statements for more information about the private placements and the repurchase of Retained Shares previously held by MSF. d) Subsequent Events The effects of significant subsequent events, if any, have been recognized or disclosed in these consolidated financial statements. e) Basis of Presentation and Summary of Significant Accounting Policies The following is a description of the significant accounting policies and practices followed by the Company in the preparation of the accompanying consolidated financial statements. These policies conform with generally accepted accounting principles in the United States (U.S. GAAP). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. 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 period. Significant estimates made by management include: i) the determination of the allowance for loan losses; (ii) the fair values of securities and the reporting unit to which goodwill has been assigned during the annual goodwill impairment test; (iii) the cash surrender value of bank owned life insurance; and (iv) 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. Income Recognition Interest income is generally recognized on the accrual basis using the interest method. Non-refundable loan origination fees, net of direct costs of originating or acquiring loans, as well as loan purchase premiums and discounts, are deferred and amortized over the term of the related loans as adjustments to interest income using the level yield method. Purchase premiums and discounts on debt securities are amortized as adjustments to interest income over the estimated lives of the securities using the level yield method. Brokerage and advisory activities include brokerage commissions and advisory fees. Brokerage commissions earned are related to the dollar amount of trading volume of customers’ transactions. Commissions and related clearing expenses are recorded on a trade-date basis as securities transactions occur. Advisory fees are derived from investment advisory fees and account administrative services. Investment advisory fees are recorded as earned on a pro rata basis over the term of the contracts, based on a percentage of the average value of assets managed during the period. These fees are assessed and collected at least quarterly. Account administrative fees are charged to customers for the maintenance of their accounts and are earned and collected on a quarterly basis. Fiduciary activities fee income is recognized as earned on a pro rata basis over the term of contracts. Card servicing fees include credit card issuance and credit and debit card interchange fees. Credit card issuance fees are generally recognized over the period in which the cardholders are entitled to use the cards. Interchange fees are recognized when earned. Trade finance servicing fees, which primarily include commissions on letters of credit, are generally recognized over the service period on a straight line basis. Deposits and services fees include service charges on deposit accounts, fees for banking services provided to customers including wire transfers, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for customer accounts or when fixed and determinable per contractual agreements. Data processing, rental income and fees for other services to related parties are recognized as the services are provided in accordance with the terms of the service agreements. Earnings per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Unvested shares of restricted stock are excluded from the basic earnings per share computation. Diluted net income per common share reflects the number of additional common stock that would have been outstanding if the dilutive potential common stock had been issued. Dilutive potential common stock consist of unvested shares of restricted stock outstanding during the period. The dilutive effect of potential common stock is calculated by applying the treasury stock method. The latter assumes dilutive potential common stock are issued and outstanding and the proceeds from the exercise, are used to purchase common stock at the average market price during the period. The difference between the numbers of dilutive potential common stock issued and the number of shares purchased is included as incremental shares in the denominator to compute diluted net income per common stock. Dilutive potential common stock are excluded from the diluted earnings per share computation in the period in which the effect is anti-dilutive. Changes in the number of shares outstanding as a result of stock dividends, stock splits, stock exchanges or reverse stock splits are given effect retroactively for all periods presented to reflect those changes in capital structure. Stock-based Compensation The Company may grant share-based compensation and other related awards to its non-employee directors, officers, employees and certain consultants. Compensation cost is measured based on the estimated far value of the award at the grant date and recognized in earnings on a straight -line basis over the requisite service period or vesting period. The fair value of the unvested shares of restricted stock is based on the market price of the Company’s Class A common stock at the date of the grant. Advertising Expenses Advertising expenses are expensed as incurred and are included in other noninterest expenses. Offering Expenses Specific, non-reimbursable, incremental costs directly attributable to a proposed or actual securities offerings are deferred and charged against the gross proceeds of the offering. Cash and Cash Equivalents The Company has defined as cash equivalents those highly liquid instruments purchased with an original maturity of three months or less and include cash and cash due from banks, federal funds sold and deposits with banks. The Company must comply with federal regulations requiring the maintenance of minimum reserve balances against its deposits. At December 31, 2018 and 2017, these reserve balances amounted to approximately $0.2 million and $1.2 million , respectively. Securities The Company classifies its investments in securities as available for sale and held to maturity. Securities classified as available for sale are carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) in stockholders’ equity on an after-tax basis. Securities classified as held to maturity are securities the Company has both the ability and intent to hold until maturity and are carried at amortized cost. Investments in stock issued by the Federal Reserve and Federal Home Loan Bank of Atlanta (“FHLB”) are stated at their original cost, which approximates their realizable value. Realized gains and losses from sales of securities are recorded on the trade date and are determined using the specific identification method. Securities purchased are recorded on the consolidated balance sheets as of the trade date. Receivables and payables to and from clearing organizations relating to outstanding transactions are included in other assets or other liabilities. At December 31, 2018 and 2017 securities receivables amounted to $3.5 million and $6.5 million , respectively. The Company considers an investment security to be impaired when a decline in fair value below the amortized cost basis is other-than-temporary. When an investment security is considered to be other-than-temporarily impaired, the cost basis of the individual investment security is written down through earnings by an amount that corresponds to the credit component of the other-than-temporary impairment. The amount of the other-than-temporary impairment that corresponds to the noncredit component of the other-than-temporary impairment is recorded in AOCI and is associated with securities which the Company does not intend to sell and it is more likely than not that the Company will not be required to sell the securities prior to the recovery of its fair value. The Company estimates the credit component of other-than-temporary impairment using a discounted cash flow model. The Company estimates the expected cash flows of the underlying collateral using third party vendor models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment rates (based on historical performance and stress test scenarios). Assumptions used can vary widely from security to security and are influenced by such factors as current debt service coverage ratio, historical prepayment rates, expected prepayment rates, and loans’ current interest rates. The Company then uses, as it deems appropriate, a third party vendor to determine how the underlying collateral cash flows will be distributed to each security. The present value of an impaired debt security results from estimating its future cash flows, discounted at the security’s effective interest rate. The Company expects to recover the remaining noncredit related unrealized losses included as a component of AOCI. Loans Held for Sale Loans are transferred into the held for sale classification at the lower of carrying amount or fair value when they are specifically identified for sale and a formal plan exists to sell them. Loans Loans represent extensions of credit which the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff. These extensions of credit consist of commercial real estate loans (including land acquisition, development and construction loans), single-family residential loans, commercial loans, loans to financial institutions and acceptances, and consumer loans. Amounts included in the loan portfolio are stated at the amount of unpaid principal, reduced by unamortized net deferred loan fees and origination costs and an allowance for loan losses. Unamortized net deferred loan fees and origination costs amounted to $7.1 million and $7.4 million at December 31, 2018 and 2017, respectively. A loan is placed in nonaccrual status when management believes that collection in full of the principal amount of the loan or related interest is in doubt. Management considers that collectability is in doubt when any of the following factors are present, among others: (1) there is a reasonable probability of inability to collect principal, interest or both, on a loan for which payments are current or delinquent for less than ninety days; or (2) when a required payment of principal, interest or both is delinquent for ninety days or longer, unless the loan is considered well secured and in the process of collection in accordance with regulatory guidelines. Once a loan to a single borrower has been placed in nonaccrual status, management reviews all loans to the same borrower to determine their appropriate accrual status. When a loan is placed in nonaccrual status, accrual of interest and amortization of net deferred loan fees or costs are discontinued, and any accrued interest receivable is reversed against interest income. Payments received on a loan in nonaccrual status are generally applied to its outstanding principal amount, unless there are no doubts on the full collection of the remaining recorded investment in the loan. When there are no doubts on the full collection of the remaining recorded investment in the loan, and there is sufficient documentation to support the collectability of that amount, payments of interest received may be recorded as interest income. A loan in nonaccrual status is returned to accrual status when none of the conditions noted when first placed in nonaccrual status are currently present, none of its principal and interest is past due, and management believes there are reasonable prospects of the loan performing in accordance with its terms. For this purpose, management generally considers there are reasonable prospects of performance in accordance with the loan terms when at least six months of principal and interest payments or principal curtailments have been received, and current financial information of the borrower demonstrates that performance will continue into the near future. The total outstanding principal amount of a loan is reported as past due thirty days following the date of a missed scheduled payment, based on the contractual terms of the loan. Loans which have been modified because the borrowers were experiencing financial difficulty and the Company, for economic or legal reasons related to the debtors’ financial difficulties, granted a concession to the debtors that it would not have otherwise considered, are accounted for as troubled debt restructurings (“TDR”). Allowance for Loan Losses The allowance for loan losses represents an estimate of the current amount of principal that is probable the Company will be unable to collect given facts and circumstances as of the evaluation date, and includes amounts arising from loans individually and collectively evaluated for impairment. These estimated amounts are recorded through a provision for loan losses charged against income. Management periodically evaluates the adequacy of the allowance for loan losses to maintain it at a level believed reasonable to provide for recognized and unrecognized but inherent losses in the loan portfolio. The Company uses the same methods used to determine the allowance for loan losses, to assess any reserves needed for off-balance sheet credit risks such as unfunded loan commitments and contingent obligations on letters of credit. These reserves for off-balance sheet credit risks are presented in the liabilities section in the consolidated balance sheets. The Company develops and documents its methodology to determine the allowance for loan losses at the portfolio segment level. The Company determines its loan portfolio segments based on the type of loans it carries and their associated risk characteristics. The Company’s loan portfolio segments are: Real Estate, Commercial, Financial Institutions, Consumer and Other. Loans in these portfolio segments have distinguishing borrower needs and differing risks associated with each product type. Real estate loans include commercial loans secured by real estate properties. Commercial loans secured by non-owner occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these real estate loans is derived from cash flows or conversion of productive assets and not from the income generated by the disposition of the property held as collateral. The main repayment source of loans granted to finance land acquisition, development and construction projects is generally derived from the disposition of the properties held as collateral, with the repayment capacity of the borrowers and any guarantors considered as alternative sources of repayment. Commercial loans correspond to facilities established for specific business purposes such as financing working capital and capital improvements projects and asset-based lending, among others. These may be loan commitments, uncommitted lines of credit to qualifying customers, short term (one year or less) or longer term credit facilities, and may be secured, unsecured or partially secured. Terms on commercial loans generally do not exceed five years, and exceptions are documented. Commercial loans secured by owner-occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these commercial real estate loans is derived from cash flows and not from the income generated by the disposition of the property held as collateral. Commercial loans to borrowers in similar businesses or products with similar characteristics or specific credit requirements are generally evaluated under a standardized commercial credit program. Commercial loans outside the scope of those programs are evaluated on a case by case basis, with consideration of any exposure under an existing commercial credit program. Loans to financial institutions and acceptances are facilities granted to fund certain transactions classified according to their risk level, and primarily include trade financing facilities through letters of credits, bankers’ acceptances, pre- and post-export financing, and working capital loans, among others. Loans in this portfolio segment are generally granted for terms not exceeding three years and on an unsecured basis under the limits of an existing credit program, primarily to large financial institutions in Latin America which the Company believes are of high quality. Prior to approval, management also considers cross-border and portfolio limits set forth in its programs and credit policies. Consumer and other loans are retail open-end and closed-end credits extended to individuals for household, family and other personal expenditures. These loans include loans to individuals secured by their personal residence, including first mortgage, home equity and home improvement loans as well as revolving credit card agreements. Because these loans generally consist of a large number of relatively small-balance, homogeneous loans for each type, their risks are generally evaluated collectively. An individual loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including both principal and interest, according to the contractual terms of the loan agreement. The Company generally considers as impaired all loans in nonaccrual status, and other loans classified in accordance with an internal risk grading system exceeding a defined threshold when it is probable that an impairment exists and the amount of the potential impairment is reasonably estimable. To determine when it is probable that an impairment exists, the Company considers the extent to which a loan may be inadequately protected by the current net worth and paying capacity of the borrower or any guarantor, or by the current value of the collateral. When a loan is considered impaired, the potential impairment is measured as the excess of the carrying value of the loan over the present value of expected future cash flows at the measurement date, or the fair value of the collateral in the case where the loan is considered collateral-dependent. If the amount of the present value of the loan’s expected future cash flows exceeds the loan’s carrying amount, the loan is still considered impaired but no impairment is recorded. The present value of an impaired loan results from estimating its future cash flows, discounted at the loan’s effective interest rate. In the case of loans considered collateral-dependent, which are generally certain real estate loans for which repayment is expected to be provided solely by the operation or sale of the underlying collateral, the potential impairment is measured based on the fair value of the asset pledged as collateral. The allowance for loan losses on loans considered TDR is generally determined by discounting the restructured cash flows by the original effective interest rate on the loan. Loans that do not meet the criteria of an individually impaired loan are collectively evaluated for impairment. These loans include large groups of smaller homogeneous loan balances, such as loans in the consumer and other loan portfolio segment, and all other loans that have not been individually identified as impaired. This group of collective loans is evaluated for impairment based on measures of historical losses associated with loans within their respective portfolio segments adjusted by a variety of qualitative factors. These qualitative factors incorporate the most recent data reflecting current economic conditions, industry performance trends or obligor concentrations within each portfolio segment, among other factors. Other adjustments may be made to the allowance for loans collectively evaluated for impairment based on any other pertinent information that management considers may affect the estimation of the allowance for loan losses, including a judgmental assessment of internal and external influences on credit quality that are not fully reflected in historical loss or their risk rating data. The measures of historical losses and the related qualitative adjustments are updated quarterly and semi-annually, respectively, to incorporate the most recent loan loss data reflecting current economic conditions. Loans to borrowers that are domiciled in foreign countries, primarily loans in the Consumer and Financial Institutions portfolio segments, are also evaluated for impairment by assessing the probability of additional losses arising from the Company’s exposure to transfer risk. The Company defines transfer risk exposure as the possibility that a loan obligation cannot be serviced in the currency of payment (U.S. Dollars) because the borrower’s country of origin may not have sufficient available currency of payment or may have put restraints on its availability, such as currency controls. To determine an individual country’s transfer risk probability, the Company assigns numerical values corresponding to the perceived performance of that country in certain macroeconomic, social and political factors generally considered in the banking industry for evaluating a country’s transfer risk. A defined country’s transfer risk probability is assigned to that country based on an average of the individual scores given to those factors, calculated using an interpolation formula. The results of this evaluation are also updated semi-annually. Loans in the Real Estate, Commercial and Financial Institutions portfolio segments are charged off against the allowance for loan losses when they are considered uncollectable. These loans are considered uncollectable when a loss becomes evident to management, which generally occurs when the following conditions are present, among others: (1) a loan or portions of a loan are classified as “loss” in accordance with the internal risk grading system; (2) a collection attorney has provided a written statement indicating that a loan or portions of a loan are considered uncollectible; and (3) the carrying value of a collateral-dependent loan exceeds the appraised value of the asset held as collateral. Consumer and other retail loans are charged off against the allowance for loan losses at the earlier of (1) when management becomes aware that a loss has occurred, or (2) when closed-end retail loans become past due 120 days or open-end retail loans become past due 180 days from the contractual due date. For open and closed-end retail loans secured by residential real estate, any outstanding loan balance in excess of the fair value of the property, less cost to sell, is charged off no later than when the loan is 180 days past due from the contractual due date. Consumer and other retail loans may not be charged off when management can clearly document that a past due loan is well secured and in the process of collection such that collection will occur regardless of delinquency status in accordance with regulatory guidelines applicable to these types of loans. Recoveries on loans represent collections received on amounts that were previously charged off against the allowance for loan losses. Recoveries are credited to the allowance for loan losses when received, to the extent of the amount previously charged off against the allowance for loan losses on the related loan. Any amounts collected in excess of this limit are first recognized as interest income, then as a reduction of collection costs, and then as other income. Transfers of Financial Assets Transfers of financial assets are accounted for as sales or purchases when control over the assets has been surrendered by the transferor. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the transferor, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the transferor does not maintain effective control over the transferred assets. Premises and Equipment, Net Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the remaining term of the lease. Repairs and maintenance are charged to operations as incurred; renewals, betterments and interest during construction are capitalized. Gains or losses on sales of premises and equipment are recorded as other noninterest income or noninterest expense, respectively, at the date of sale. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of recognition and measurement of an impairment loss, when the independent and identifiable cash flow of a single asset may not be determinable, the long-lived asset may be grouped with other assets of like cash flows. Recoverability of an asset or group of assets to be held and used is measured by comparing the carrying amount with future undiscounted net cash flows expected to be generated by the asset or group of assets. If an asset is considered impaired, the impairment recognized is generally measured by the amount by which the carrying amount of the asset or group exceeds its fair value. Bank Owned Life Insurance Bank owned life insurance policies (“BOLI”) are recorded at the cash surrender value of the insurance contracts, which represent the amount that may be realizable under the contracts, at the consolidated balance sheet dates. Changes to the cash surrender value are recorded as other noninterest income in the consolidated statements of operations. Income Taxes Deferred income tax assets and liabilities are determined using the balance sheet method. Under this method, the resulting net deferred tax asset is determined based on the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. The effect of changes in tax laws or rates is recognized in results in the period that includes the legislation enactment date. A valuation allowance is established against the deferred tax asset to the extent that management believes that it is more likely than not that any tax benefit will not be realized. Income tax expense is recognized on the periodic change in deferred tax assets and liabilities at the current statutory rates. The results of operations of the Company and the majority of its wholly owned subsidiaries are included in the consolidated federal income tax return of the Company and its subsidiaries as members of the same consolidated tax group. Under t |
Interest Earning Deposits with
Interest Earning Deposits with Banks | 12 Months Ended |
Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Interest Earning Deposits with Banks | Interest Earning Deposits with Banks At December 31, 2018 and 2017 interest earning deposits with banks are comprised of deposits with the Federal Reserve of approximately $60 million and $109 million , respectively. At December 31, 2018 and 2017, the average interest rate on these deposits was approximately 1.88% and 1.10% , respectively. These deposits mature within one year. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Amortized cost and approximate fair values of securities available for sale are summarized as follows: December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 840,760 $ 2,197 $ (22,178 ) $ 820,779 Corporate debt securities 357,602 139 (5,186 ) 352,555 U.S. government agency debt securities 221,682 187 (4,884 ) 216,985 Municipal bonds 162,438 390 (2,616 ) 160,212 Mutual funds 24,266 — (1,156 ) 23,110 Commercial paper 12,448 — (38 ) 12,410 $ 1,619,196 $ 2,913 $ (36,058 ) $ 1,586,051 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 December 31, 2018 and 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: December 31, 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 $ 90,980 $ (2,995 ) $ 608,486 $ (19,183 ) $ 699,466 $ (22,178 ) Corporate debt securities 243,667 (3,800 ) 75,762 (1,386 ) 319,429 (5,186 ) U.S. government agency debt securities 63,580 (939 ) 133,886 (3,945 ) 197,466 (4,884 ) Municipal bonds 1,449 (6 ) 94,331 (2,610 ) 95,780 (2,616 ) Mutual funds — — 22,865 (1,156 ) 22,865 (1,156 ) Commercial paper 12,410 (38 ) — — 12,410 (38 ) $ 412,086 $ (7,778 ) $ 935,330 $ (28,280 ) $ 1,347,416 $ (36,058 ) 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 December 31, 2018 and 2017 debt securities issued or guaranteed by U.S. government-sponsored entities and agencies held by the Company were issued by institutions which the Company believes to possess little credit risk. 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 December 31, 2018 and 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: December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 82,326 $ — $ (3,889 ) $ 78,437 U.S. Government agency debt securities 2,862 — (49 ) 2,813 $ 85,188 $ — $ (3,938 ) $ 81,250 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 December 31, 2018 are as follows: Available for Sale Held to Maturity (in thousands) Amortized Estimated Amortized Estimated Within 1 year $ 54,477 $ 54,306 $ — $ — After 1 year through 5 years 330,024 325,752 — — After 5 years through 10 years 166,152 163,039 — — After 10 years 1,044,277 1,019,844 85,188 81,250 No contractual maturities 24,266 23,110 — — $ 1,619,196 $ 1,586,051 $ 85,188 $ 81,250 Actual maturities of investment securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. Proceeds from sales and calls of securities available for sale in 2018 and 2017 were approximately $67 million and $393 million , respectively, with gross realized gains of $0.5 million and gross realized losses of $1.4 million in 2018 (gross realized gains of $2.6 million and gross realized losses of $4.2 million in 2017). At December 31, 2018 and 2017 , securities available for sale with a fair value of approximately $50 million and $246 million , respectively, were pledged as collateral. In 2018, these securities were pledged as collateral to secure sweep accounts. In 2017, these securities were pledged as collateral to secure advances from the FHLB and sweep accounts. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | Loans The loan portfolio consists of the following loan classes: (in thousands) December 31, December 31, Real estate loans Commercial real estate Nonowner occupied $ 1,809,356 $ 1,713,104 Multi-family residential 909,439 839,709 Land development and construction loans 326,644 406,940 3,045,439 2,959,753 Single-family residential 533,481 512,754 Owner-occupied 777,022 610,386 4,355,942 4,082,893 Commercial loans 1,380,428 1,354,755 Loans to financial institutions and acceptances 68,965 497,626 Consumer loans and overdrafts 114,840 130,951 $ 5,920,175 $ 6,066,225 The amounts in the table above include loans under syndication facilities for approximately $807 million and $989 million at December 31, 2018 and 2017 , respectively, which include Shared National Credit facilities and agreements to enter into credit agreements among other lenders (club deals), and other agreements. These loans are primarily designed for providing working capital to certain qualified domestic and international commercial entities meeting our credit quality criteria and concentration limits, and approved in accordance with credit policies. While seeking diversification of our loan portfolio, the Company is dependent mostly on the economic conditions that affect South Florida, greater Houston and the greater New York City area, especially the five New York City boroughs. Diversification is managed through policies with limitations for exposure to individual or related debtors and for country risk exposure. The following tables summarize international loans by country, net of loans fully collateralized with cash of approximately $19.5 million and $31.9 million at December 31, 2018 and 2017 , respectively. December 31, 2018 (in thousands) Venezuela Others (1) Total Real estate loans Single-family residential (2) $ 128,971 $ 6,467 $ 135,438 Loans to financial institutions and acceptances — 49,000 49,000 Commercial loans — 73,636 73,636 Consumer loans and overdrafts (3) 28,191 13,494 41,685 $ 157,162 $ 142,597 $ 299,759 __________________ (1) Loans to borrowers in seventeen other countries which do not individually exceed 1% of total assets. (2) Corresponds to 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 for Venezuela residents card holders are suspended when the cardholders’ average deposits decline below the outstanding credit balance. At the beginning of 2018, the Company changed the monitoring of such balances from quarterly to monthly. 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 eighteen other countries which do not individually exceed 1% of total assets. (2) Corresponds to 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 outstanding credit balance. The age analysis of the loan portfolio by class, including nonaccrual loans, as of December 31, 2018 and 2017 are summarized in the following tables: December 31, 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 Nonowner occupied $ 1,809,356 $ 1,809,356 $ — $ — $ — $ — $ — $ — Multi-family residential 909,439 909,439 — — — — — — Land development and construction loans 326,644 326,644 — — — — — — 3,045,439 3,045,439 — — — — — — Single-family residential 533,481 519,730 7,910 2,336 3,505 13,751 6,689 419 Owner-occupied 777,022 773,876 2,800 160 186 3,146 4,983 — 4,355,942 4,339,045 10,710 2,496 3,691 16,897 11,672 419 Commercial loans 1,380,428 1,378,022 704 1,062 640 2,406 4,772 — Loans to financial institutions and acceptances 68,965 68,965 — — — — — — Consumer loans and overdrafts 114,840 113,227 474 243 896 1,613 35 884 $ 5,920,175 $ 5,899,259 $ 11,888 $ 3,801 $ 5,227 $ 20,916 $ 16,479 $ 1,303 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 Nonowner 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 December 31, 2018 and 2017 , loans with an outstanding principal balance of $1,680 million and $1,476 million , respectively, were pledged as collateral to secure advances from the FHLB. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2018 , 2017 and 2016 and its allocation by impairment methodology and the related investment in loans, net as of December 31, 2018 , 2017 and 2016 are summarized in the following tables: December 31, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 (Reversal of) provision for loan losses (2,885 ) 1,099 (3,917 ) 6,078 375 Loans charged-off Domestic (5,839 ) (3,662 ) — (194 ) (9,695 ) International — (1,473 ) — (1,392 ) (2,865 ) Recoveries 212 1,367 — 368 1,947 Balances at end of the year $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 1,282 $ — $ 1,091 $ 2,373 Collectively evaluated 22,778 28,736 445 7,430 59,389 $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Investment in loans, net of unearned income Individually evaluated $ 717 $ 9,652 $ — $ 3,089 $ 13,458 Collectively evaluated 3,037,604 2,254,607 69,003 545,503 5,906,717 $ 3,038,321 $ 2,264,259 $ 69,003 $ 548,592 $ 5,920,175 December 31, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Reversal of provision for loan losses (221 ) (1,027 ) (942 ) (1,300 ) (3,490 ) Loans charged-off Domestic (97 ) (1,979 ) — (424 ) (2,500 ) International — (6,166 ) — (757 ) (6,923 ) Recoveries 895 962 — 1,305 3,162 Balances at end of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 2,866 $ — $ — $ 2,866 Collectively evaluated 31,290 29,821 4,362 3,661 69,134 $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Investment in loans, net of unearned income Individually evaluated $ 1,318 $ 20,907 $ — $ 374 $ 22,599 Collectively evaluated 2,912,786 2,073,351 497,626 559,863 6,043,626 $ 2,914,104 $ 2,094,258 $ 497,626 $ 560,237 $ 6,066,225 December 31, 2016 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 18,331 $ 44,734 $ 9,226 $ 4,752 $ 77,043 Provision for (reversal of) loan losses 8,570 16,153 (3,922 ) 1,309 22,110 Loans charged-off Domestic (94 ) (1,496 ) — (224 ) (1,814 ) International — (19,610 ) — (1,186 ) (20,796 ) Recoveries 3,906 1,116 — 186 5,208 Balances at end of the year $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 6,596 $ — $ — $ 6,596 Collectively evaluated 30,713 34,301 5,304 4,837 75,155 $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Investment in loans, net of unearned income Individually evaluated $ 13,792 $ 51,332 $ — $ 4,205 $ 69,329 Collectively evaluated 2,364,161 2,398,552 416,336 516,383 5,695,432 $ 2,377,953 $ 2,449,884 $ 416,336 $ 520,588 $ 5,764,761 The following is a summary of the recorded investment amount of loan sales by portfolio segment in the years ended December 2018, 2017 and 2016: (in thousands) Real Estate Commercial Financial Consumer Total 2018 $ 20,248 $ 138,244 $ — $ 14,981 $ 173,473 2017 $ 15,040 $ 35,260 $ 40,177 $ — $ 90,477 2016 $ 9,151 $ 72,597 $ 23,500 $ — $ 105,248 The following is a summary of impaired loans as of December 31, 2018 and 2017 : December 31, 2018 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ — $ — $ — $ 7,935 $ — $ — — Multi-family residential — 717 717 724 722 — 32 Land development and construction — — — — — — — — 717 717 8,659 722 — 32 Single-family residential 3,086 306 3,392 4,046 3,427 1,235 108 Owner-occupied 169 4,427 4,596 5,524 4,601 75 14 3,255 5,450 8,705 18,229 8,750 1,310 154 Commercial loans 4,585 148 4,733 7,464 6,009 1,059 952 Consumer loans and overdrafts 9 11 20 15 17 4 — $ 7,849 $ 5,609 $ 13,458 $ 25,708 $ 14,776 $ 2,373 $ 1,106 December 31, 2017 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ — $ 327 $ 327 $ 225 $ 327 $ — $ — Multi-family residential — 1,318 1,318 7,898 1,330 — 54 Land development and construction loans — — — 1,359 — — — — 1,645 1,645 9,482 1,657 — 54 Single-family residential — 877 877 3,100 871 — 1,101 Owner-occupied — 10,918 10,918 13,440 12,323 — 11 — 13,440 13,440 26,022 14,851 — 1,166 Commercial loans 7,173 1,986 9,159 18,211 14,784 2,866 12 Consumer loans and overdrafts — — — — — — — $ 7,173 $ 15,426 $ 22,599 $ 44,233 $ 29,635 $ 2,866 $ 1,178 Troubled Debt Restructurings The following table shows information about loans that were modified and met the definition of TDR during 2018, 2017 and 2016: 2018 2017 2016 (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Commercial real estate Nonowner occupied (1) 1 $ — — $ — 1 $ 208 Single-family residential — — 2 — 1 49 Owner-occupied 1 1,831 1 — 3 846 2 1,831 3 — 5 1,103 Commercial loans 2 622 1 1,473 2 11,172 Consumer loans and overdrafts 1 10 — — — — Total (2) (3) 5 $ 2,463 4 $ 1,473 7 $ 12,275 _________________ (1) In the fourth quarter of 2018, the Company sold one non-performing loan in the Houston area with a carrying value of $10.2 million , and charged off $5.8 million against the allowance for loan losses. This loan had been modified and met the definition of a TDR during the second quarter of 2018. (2) During 2018 and 2017, the Company charged off a total of approximately $6.9 million and $6.0 million , respectively, against the allowance for loan losses as a result of these TDR loans. (3) At December 31, 2018, 2017 and 2016, all TDR loans were primarily real estate and commercial loans under modified terms, including interest payment deferments and others, 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. During 2018, 2017 and 2016, TDR loans that subsequently defaulted within the 12 months of restructuring were as follows: 2018 2017 2016 (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Single-family residential — $ — — $ — 6 $ 3,010 Owner-occupied 1 1,831 1 618 4 2,959 1 1,831 1 618 10 5,969 Commercial loans 1 589 — — — — Consumer loans and overdrafts 1 10 — — — — 3 $ 2,430 1 $ 618 10 $ 5,969 Credit Risk Quality The sufficiency of the allowance for loan losses is reviewed monthly by the Chief Risk Officer and the Chief Financial Officer. These recommendations are reviewed and approved monthly by the Executive Management Committee. The Board of Directors considers the allowance for loan losses as part of its review of the Company’s consolidated financial statements. As of December 31, 2018 and 2017, the Company believes the allowance for loan losses to be sufficient to absorb losses in the loans portfolio in accordance with U.S. GAAP. Loans may be classified but not considered impaired due to one of the following reasons: (1) the Company has established minimum dollar amount thresholds for loan impairment testing, which results in loans under those thresholds being excluded from impairment testing and therefore not included in impaired loans; (2) classified loans may be considered nonimpaired because collection of all amounts due is probable. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related primarily to (i) the risk rating of loans, (ii) the loan payment status, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions in the main geographies where the Company’s borrowers conduct their businesses. The Company considers the views of its regulators as to loan classification and impairment. The Company utilizes a credit risk rating system to identify the risk characteristics of each of its loans, or group of homogeneous loans such as consumer loans. Loans are rated on a quarterly basis (or more frequently when the circumstances require it) on a scale from 1 (worst credit quality) to 10 (best credit quality). Loans are then grouped in five master risk categories for purposes of monitoring rising levels of potential loss risks and to enable the activation of collection or recovery processes as defined in the Company’s Credit Risk Policy. The following is a summary of the master risk categories and their associated loan risk ratings, as well as a description of the general characteristics of the master risk category: Loan Risk Rating Master risk category Nonclassified 4 to 10 Classified 1 to 3 Substandard 3 Doubtful 2 Loss 1 N onclassified This category includes loans considered as Pass and Special Mention. A loan classified as pass is considered of sufficient quality to preclude a lower adverse rating. These loans are generally well protected by the current net worth and paying capacity of the borrower or by the value of any collateral received. Special Mention loans are defined as having potential weaknesses that deserve management’s close attention which, if left uncorrected, could potentially result in further credit deterioration. Special Mention loans may include loans originated with certain credit weaknesses or that developed those weaknesses since their origination. Classified This classification indicates the presence of credit weaknesses which could make loan repayment unlikely, such as partial or total late payments and other contractual defaults. Substandard A loan classified substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. They are characterized by the distinct possibility that the Company will sustain some loss if the credit weaknesses are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets. Doubtful These loans have all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collection in full in a reasonable period of time. As a result, the possibility of loss is extremely high. Loss Loans classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the assets have absolutely no recovery or salvage value, but not to the point where a write-off should be deferred even though partial recoveries may occur in the future. This classification is based upon current facts, not probabilities. As a result, loans in this category should be promptly charged off in the period in which they surface as uncollectible. Loans by Credit Quality Indicators The Company’s loans by credit quality indicators as of December 31, 2018 and 2017 are summarized in the following tables: December 31, 2018 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,802,573 $ 6,561 $ 222 $ — $ — $ 1,809,356 Multi-family residential 909,439 — — — — 909,439 Land development and construction loans 326,644 — — — — 326,644 3,038,656 6,561 222 — — 3,045,439 Single-family residential 526,373 — 7,108 — — 533,481 Owner-occupied 758,552 9,019 9,451 — — 777,022 4,323,581 15,580 16,781 — — 4,355,942 Commercial loans 1,369,434 3,943 6,462 589 — 1,380,428 Loans to financial institutions and acceptances 68,965 — — — — 68,965 Consumer loans and overdrafts 108,778 — 6,062 — — 114,840 $ 5,870,758 $ 19,523 $ 29,305 $ 589 $ — $ 5,920,175 December 31, 2017 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,711,595 $ 1,020 $ 489 $ — $ — $ 1,713,104 Multi-family residential 839,709 — — — — 839,709 Land development and construction loans 406,940 — — — — 406,940 2,958,244 1,020 489 — — 2,959,753 Single-family residential 506,885 — 5,869 — — 512,754 Owner-occupied 592,468 4,051 13,867 — — 610,386 4,057,597 5,071 20,225 — — 4,082,893 Commercial loans 1,334,543 6,100 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 $ 6,016,604 $ 11,171 $ 38,450 $ — $ — $ 6,066,225 Credit Risk Quality Indicators - Consumer Loan Classes The credit risk quality of the Company’s residential real estate and consumer loan portfolios is evaluated by considering the repayment performance of individual borrowers, and then classified on an aggregate or pool basis. Loan secured by real estate in these classes which have been past due 90 days or more, and 120 days (non-real estate secured) or 180 days or more, are classified as Substandard and Loss, respectively. When the Company has documented that past due loans in these classes are well-secured and in the process of collection, then the loans may not be classified. These indicators are updated at least quarterly. Single-family residential loans: December 31, (in thousands, except percentages) 2018 2017 2016 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 518,106 97.12 % $ 499,307 97.38 % $ 455,410 96.80 % 30-59 Days Past Due 7,634 1.43 % 6,025 1.17 % 4,675 0.99 % 60-89 Days Past Due 633 0.12 % 2,193 0.43 % 1,395 0.30 % 90+ Days Past Due 419 0.08 % 225 0.04 % 116 0.02 % 8,686 1.63 % 8,443 1.64 % 6,186 1.31 % Total Accrual Loans $ 526,792 98.75 % $ 507,750 99.02 % $ 461,596 98.11 % Non-Accrual Loans Current $ 1,624 0.30 % $ 2,086 0.41 % $ 2,290 0.49 % 30-59 Days Past Due 276 0.05 % 584 0.11 % — — % 60-89 Days Past Due 1,703 0.32 % 557 0.11 % 38 0.01 % 90+ Days Past Due 3,086 0.58 % 1,777 0.35 % 6,565 1.39 % 5,065 0.95 % 2,918 0.57 % 6,603 1.40 % Total Non-Accrual Loans 6,689 1.25 % 5,004 0.98 % 8,893 1.89 % $ 533,481 100.00 % $ 512,754 100.00 % $ 470,489 100.00 % Consumer loans and overdrafts: December 31, (in thousands, except percentages) 2018 2017 2016 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 113,211 98.58 % $ 130,830 99.91 % $ 120,463 98.40 % 30-59 Days Past Due 466 0.41 % 48 0.04 % 1,076 0.88 % 60-89 Days Past Due 243 0.21 % 18 0.01 % 443 0.36 % 90+ Days Past Due 885 0.77 % — — % 370 0.30 % 1,594 1.39 % 66 0.05 % 1,889 1.54 % Total Accrual Loans $ 114,805 99.97 % $ 130,896 99.96 % $ 122,352 99.94 % Non-Accrual Loans Current $ 16 0.01 % $ 16 0.01 % $ 43 0.03 % 30-59 Days Past Due 8 0.01 % 9 0.01 % 22 0.02 % 60-89 Days Past Due — — % 11 0.01 % — — % 90+ Days Past Due 11 0.01 % 19 0.01 % 9 0.01 % 19 0.02 % 39 0.03 % 31 0.03 % Total Non-Accrual Loans 35 0.03 % 55 0.04 % 74 0.06 % $ 114,840 100.00 % $ 130,951 100.00 % $ 122,426 100.00 % |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment, net include the following: December 31, Estimated (in thousands) 2018 2017 (in years) Land $ 18,307 $ 18,307 NA Buildings and improvements 100,152 93,848 10–30 Equipment leased under an operating lease — 19,626 15 Furniture and equipment 21,579 19,832 3–10 Computer equipment and software 31,225 29,749 3 Leasehold improvements 19,301 18,260 5–10 Work in progress 5,170 6,532 NA $ 195,734 $ 206,154 Less: Accumulated depreciation and amortization (72,231 ) (76,797 ) $ 123,503 $ 129,357 There were no significant sales of properties in 2018. In 2017, the Company sold one property in New York City (the “New York Building”) and a Florida banking center building with a total carrying value of approximately $19.1 million and realized an aggregate gain on sale of approximately $11.3 million . In 2016, the Company sold properties with a carrying value of approximately $1.0 million and realized an aggregate gain on sale of approximately $2.0 million . In 2018, the Company sold all of its interest in an operating subsidiary, which held an aircraft leased solely to MSF under an operating lease. Depreciation and amortization expense was approximately $8.5 million , $9.0 million and $9.1 million in the years ended December 31, 2018, 2017 and 2016, respectively. In 2018, 2017 and 2016 fully-depreciated equipment with an original cost of approximately $0.8 million , $1.4 million and $1.9 million , respectively, were written-off and charged against their respective accumulated depreciation. |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 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 December 31, 2018 and 2017 , respectively. Time deposits in denominations of $250,000 or more amounted to approximately $718 million and $624 million at December 31, 2018 and 2017 , respectively. The average interest rate paid on time deposits was approximately 2.51% in 2018 and 1.26% in 2017 . Time deposits include brokered time deposits, all in denominations of less than $100,000 . As of December 31, 2018 and 2017 brokered time deposits amounted to $642 million and $780 million , respectively. At December 31, 2018 and 2017 time deposits maturities were as follows: (in thousands, except percentages) 2018 2017 Year of Maturity Amount % Amount % 2018 $ — — % $ 1,357,668 60.44 % 2019 1,438,565 60.26 % 331,515 14.76 % 2020 361,255 15.13 % 194,175 8.64 % 2021 168,850 7.07 % 103,781 4.62 % 2022 135,265 5.67 % 106,550 4.74 % 2023 and thereafter 283,196 11.87 % 152,745 6.80 % Total $ 2,387,131 100.00 % $ 2,246,434 100.00 % |
Advances From the Federal Home
Advances From the Federal Home Loan Bank and Other Borrowings | 12 Months Ended |
Dec. 31, 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 At December 31, 2018 and 2017, the Company had outstanding advances from the FHLB and other borrowings as follows: Year of Maturity Interest December 31, 2018 December 31, 2017 (in thousands, except percentages) 2018 0.90% to 2.03% $ — $ 567,000 2019 1.00% to 3.86% 440,000 155,000 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 3.23% 210,000 — $ 1,166,000 $ 1,173,000 At December 31, 2018, advances from the FHLB include $280 million ( $255 million in 2017) which have variable interest rates ranging from 2.40% to 2.82% with maturities in 2019 ( 1.23% to 1.71% with maturities in 2018 and 2019). At December 31, 2018 and 2017, the Company held stock of the FHLB for approximately $57 million . The terms of the Company’s advance agreement with the FHLB require the Company to maintain certain investment securities and loans as collateral for these advances. At December 31, 2018 and 2017, the Company was in compliance with this requirement. There were no other borrowings at December 31, 2018. Other borrowings at December 31, 2017 included $12 million in advances from other banks which matured in January 2018. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments From time to time, the Company enters into derivative financial instruments as part of its interest rate management activities and to facilitate customer transactions. Those instruments may or not be designated and qualify as part of a hedging relationship. The customer derivatives we use for the Company’s account are matched against derivatives from third parties, but are not designated as hedging instruments. At December 31, 2018 and 2017 the fair value of the Company’s derivative instruments was as follows: December 31, 2018 December 31, 2017 (in thousands) Other Assets Other Liabilities Other Assets Other Liabilities Interest rate swaps designated as cash flow hedges $ 9,386 $ 283 $ 5,462 $ — Interest rate swaps not designated as hedging instruments: Customers 1,420 — 1,375 — Third party broker — 1,420 — 1,375 1,420 1,420 1,375 1,375 Interest rate caps not designated as hedging instruments: Customers — 685 — 195 Third party broker 685 — 195 — 685 685 195 195 $ 11,491 $ 2,388 $ 7,032 $ 1,570 Derivatives Designated as Hedging Instruments The Company maintains interest rate swaps contracts which the Company had designated and qualified as cash flow hedges. These interest rate swaps were designed as cash flow hedges to manage the exposure that arises from differences in the amount of the Company’s known or expected cash receipts and the known or expected cash payments related to the Company’s variable-rate borrowings from the FHLB, the value of which are determined by interest rates. At December 31, 2018 and 2017 the Company’s interest rate swaps designated as cash flow hedges involve the Company’s 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. At December 31, 2018 and 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 rollover of variable-rate advances from the FHLB. At December 31, 2018, these advances have a carrying amount of $280 million and maturities of less than one year ( $366 million with maturities ranging from two to nine years at December 31, 2017). The interest rate swaps mature in one to eight years ( three to nine years in 2017). 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 years ended December 31, 2018 and 2017 . In February and March 2019, the Company terminated the interest rate swaps designated as cash flow hedges. The Company will recognize the contracts cumulative net unrealized gains in earnings over the remaining original life of the terminated interest rate swaps. Derivatives Not Designated as Hedging Instruments At December 31, 2018 and 2017 , the Company had eight and one interest rate swap contracts with customers with a total notional amount of $80.4 million and $54.6 million , respectively. These instruments involve the payment of fixed-rate amounts in exchange for the Company receiving variable-rate payments over the life of the contracts. In addition, at December 31, 2018 and 2017 , the Company had interest rate swap mirror contracts with a third party broker with similar terms. These instruments have maturities ranging from 5 to 10 years ( 10 years in 2017) and do not involve the exchange of the underlying notional amount. At December 31, 2018 and 2017 , the Company had sixteen and seven interest rate cap contracts with customers with a total notional amount of $323.7 million and $162.1 million , respectively. In addition, at December 31, 2018 and 2017 , the Company had interest rate cap mirror contracts with various third party brokers with similar terms. These instruments’ maturities range from less than 1 to 5 years (1 and half years to 4 years in 2017). |
Junior Subordinated Debentures
Junior Subordinated Debentures Held by Trust Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures Held by Trust Subsidiaries | Junior Subordinated Debentures Held by Trust Subsidiaries At December 31, 2018 and 2017, the Company owns all of the common capital securities issued by 8 statutory trust subsidiaries (“the Trust Subsidiaries”). These Trust Subsidiaries were first formed by the Company for the purpose of issuing trust preferred securities (“the Trust Preferred Securities”) and investing the proceeds in junior subordinated debentures issued by the Company. The debentures are guaranteed by the Company. The Company records the common capital securities issued by the Trust Subsidiaries in other assets in its consolidated balance sheets using the equity method. The junior subordinated debentures issued to the Trust Subsidiaries, less the common securities of the Trust Subsidiaries, qualify as Tier 1 regulatory capital. The following table provides information of the outstanding Trust Preferred Securities issued by, and the junior subordinated debentures issued to, each of the Trust Subsidiaries as of December 31, 2018 and 2017: (in thousands) Amount of Principal Year of Annual Rate of Trust Year of Commercebank Capital Trust I $ 26,830 $ 28,068 1998 8.90% 2028 Commercebank Statutory Trust II 15,000 15,464 2000 10.60% 2030 Commercebank Capital Trust III 10,000 10,400 2001 10.18% 2031 Commercebank Capital Trust VI 9,250 9,537 2002 3-M LIBOR + 3.35% 2033 Commercebank Capital Trust VII 8,000 8,248 2003 3-M LIBOR + 3.25% 2033 Commercebank Capital Trust VIII 5,000 5,155 2004 3-M LIBOR + 2.85% 2034 Commercebank Capital Trust IX 25,000 25,774 2006 3-M LIBOR + 1.75% 2038 Commercebank Capital Trust X 15,000 15,464 2006 3-M LIBOR + 1.78% 2036 $ 114,080 $ 118,110 The Company and the Trust Subsidiaries have the option to defer payment of interest on the obligations for up to 10 semi-annual periods. In 2018 and 2017, no payment of interest have been deferred on these obligations. The Trust Preferred Securities are subject to mandatory redemption, in whole or in part, upon the maturity or early redemption of the debentures. Early redemption premiums may be payable. |
Incentive Compensation and Bene
Incentive Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Incentive Compensation and Benefit Plans | Incentive Compensation and Benefit Plans a) Stock-based Incentive Compensation Plan On March 12, 2018, MSF, our sole shareholder at that time, approved the Mercantil Bank Holding Corporation 2018 Equity and Incentive Compensation Plan (the “2018 Equity Plan”). The Company has reserved up to 3,333,333 shares of Class A common stock for issuance pursuant the grant of options rights, appreciation rights, restricted stock, restricted stock units and other awards under the 2018 Equity Plan. On December 21, 2018, in connection with the closing of the Company’s IPO, the Company’s directors were granted restricted stock units, and various Company officers and employees were granted restricted Class A common stock awards, under the 2018 Equity Plan. Restricted Stock Awards On December 21, 2018, the Company granted 736,839 shares of restricted Class A common stock to officers and employees. These shares of restricted stock will vest in three approximately equal amounts on each of December 21, 2019, 2020 and 2021. The fair value of the restricted stock granted was based on the market price of the shares of the Company’s Class A common stock at the grant date which was $13.45 . In 2018, the Company recorded $0.2 million of compensation expense related to these restricted stock awards. The total unearned deferred compensation expense of $9.8 million for all unvested restricted stock outstanding at December 31, 2018 will be recognized over a weighted average period of 2 years . Restricted Stock Units On December 21, 2018, the Company granted 86,535 restricted stock units (“RSUs”) to its non-employee directors. Of the 86,535 RSUs, 57,690 RSUs are settled in shares of Class A common stock while the remaining 28,845 RSUs are settled in cash, both upon vesting. These RSUs will vest in three approximately equal amounts on each of December 21, 2019, 2020 and 2021. b) Employee Benefit Plan The Mercantil Bank U.S.A. Retirement Plan (the “401(k) Plan”) is a 401(k) benefit plan covering substantially all employees of the Company. The Company matches 100% of each participant’s contribution up to a maximum of 5% of their annual salary. Contributions by the Company to the Plan are based upon a fixed percentage of participants’ salaries as defined by the Plan. The Plan enables Highly Compensated employees to contribute up to the maximum allowed without further restrictions. All contributions made by the Company to the participants’ accounts are vested immediately. In addition, employees with at least three months of service and who have reached the age of 21 may contribute a percentage of their salaries to the Plan as elected by each participant. The Company contributed to the Plan approximately $5 million and $4 million in 2018 and 2017, respectively, in matching contributions. The Company maintains the Amerant Bank, N.A. Executive Deferred Compensation Plan as a non-qualified plan for eligible highly compensated employees (the “Deferred Compensation Plan”). The Deferred Compensation Plan permits deferrals of compensation above the amounts that can be contributed for retirement under the 401(k) Plan. Under the Deferred Compensation Plan, eligible employees may elect to defer a portion of their annual salary and cash incentive awards and allows them to receive matching contributions up to 5% of their annual salary. All deferrals, employer contributions, earnings, and gains on each participant’s account in the Deferred Compensation Plan are vested immediately. The Spin-off caused an unexpected early distribution for U.S. federal income tax purposes from the Deferred Compensation Plan. The Company partially compensated plan participants, in the aggregate amount of $1.2 million , for the higher tax expense they will incur as a result of the distribution increasing the plan participants’ estimated effective federal income tax rates by recording a contribution to the plan on behalf of its participants. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows: (in thousands) 2018 2017 2016 Current provision Federal $ 7,298 $ 19,194 $ 10,981 State 1,964 1,763 844 Impact of lower rate under the 2017 Tax Act - Remeasurement of net deferred tax assets, other than balances corresponding to items in AOCI — 8,470 — Remeasurement of net deferred tax assets corresponding to items in AOCI — 1,094 — Deferred tax expense (benefit) 2,471 3,471 (1,614 ) $ 11,733 $ 33,992 $ 10,211 On December 22, 2017, the 2017 Tax Act was signed into law. This law significantly changes U.S. tax law by, among other things, lowering corporate federal income tax rates and implementing a territorial tax system. The legislation permanently reduces the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018. As a result of the reduction in the U.S. corporate federal income tax rate, the Company remeasured its ending net deferred tax assets at December 31, 2017 and recognized a total of $9.6 million tax expense in the Company’s consolidated statement of income for the year ended December 31, 2017. A reconciliation of the income tax expense at the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31, 2018, 2017, and 2016 follows: 2018 2017 2016 (in thousands) Amount % Amount % Amount % Tax expense calculated at the statutory federal income tax rate $ 12,089 21.00 % $ 26,967 35.00 % $ 11,827 35.00 % Increases (decreases) resulting from: Impact of the 2017 Tax Act - Remeasurement of net deferred tax assets — — % 9,564 12.41 % — — % Non-taxable interest income (1,507 ) (2.62 )% (1,643 ) (2.13 )% (1,132 ) (3.35 )% Non-taxable BOLI income (1,223 ) (2.12 )% (1,910 ) (2.48 )% (1,547 ) (4.58 )% Non-deductible Spin-off costs 1,711 2.97 % — — % — — % Disallowed interest expense allocable to tax exempt securities and other expenses 627 1.09 % 577 0.75 % 464 1.37 % State and city income taxes, net of federal income tax benefit (131 ) (0.23 )% 1,146 1.49 % 549 1.62 % Other, net 167 0.29 % (709 ) (0.92 )% 50 0.16 % $ 11,733 20.38 % $ 33,992 44.12 % $ 10,211 30.22 % The composition of the net deferred tax asset is as follows: December 31, (in thousands) 2018 2017 Tax effect of temporary differences Provision for loan losses $ 13,581 $ 13,372 Net unrealized losses in other comprehensive income 5,878 1,680 Deferred compensation expense 3,489 3,460 Dividend income 605 946 Interest income on nonaccrual loans 341 599 Goodwill amortization (3,979 ) (3,223 ) Depreciation and amortization (3,934 ) (3,601 ) Other 329 1,350 Net deferred tax assets $ 16,310 $ 14,583 The Company evaluates the deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including its own historical financial performance and that of its operating subsidiaries and projections of future taxable income. This evaluation involves significant judgment by management about assumptions that are subject to change from period to period. Management believes that the weight of all the positive evidence currently available exceeds the negative evidence in support of the realization of the future tax benefits associated with the federal net deferred tax asset. As a result, management has concluded that the federal net deferred tax asset in its entirety will more likely than not be realized. Therefore, a valuation allowance is not considered necessary. If future results differ significantly from the Company’s current projections, a valuation allowance against the net deferred tax asset may be required. At December 31, 2018 and 2017, the Company had accumulated net operating losses (“NOLs”) in the State of Florida of approximately $151.9 million and $143.6 million , respectively. These NOLs are carried forward for a maximum of 20 years based on applicable Florida law. The deferred tax asset related to these NOLs at December 31, 2018 and 2017 is approximately $6.6 million and $6.2 million , respectively. A full valuation allowance has been recorded against the state deferred tax asset related to these NOLs as management believes it is more likely than not that the tax benefit will not be realized. At December 31, 2018 and 2017, the Company had no unrecognized tax benefits or associated interest or penalties that needed to be accrued. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (“AOCL”) | 12 Months Ended |
Dec. 31, 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: December 31, 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 $ (33,145 ) $ 8,104 $ (25,041 ) $ (13,414 ) $ 2,883 $ (10,531 ) Unrealized gains on interest rate swaps designated as cash flow hedges 9,103 (2,226 ) $ 6,877 5,602 (1,204 ) 4,398 Total AOCL $ (24,042 ) $ 5,878 $ (18,164 ) $ (7,812 ) $ 1,679 $ (6,133 ) The components of other comprehensive income (loss) for the three-year period ended December 31, 2018 is summarized as follows: December 31, 2018 (in thousands) Before Tax Tax Net of Tax Unrealized losses on available for sale securities: Change in fair value arising during the period $ (20,730 ) $ 5,465 $ (15,265 ) Reclassification adjustment for net losses included in net income 999 (244 ) 755 (19,731 ) 5,221 (14,510 ) Unrealized gains on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 3,744 (1,081 ) 2,663 Reclassification adjustment for net interest income included in net income (243 ) 59 (184 ) 3,501 (1,022 ) 2,479 Total other comprehensive loss $ (16,230 ) $ 4,199 $ (12,031 ) December 31, 2017 (in thousands) Before Tax Tax Net of Tax Unrealized gains on available for sale securities arising during the period $ 6,875 $ (3,298 ) $ 3,577 Reclassification adjustment for net losses on sale of securities included in net income 1,601 (768 ) 833 Unrealized gains on interest rate swaps designated as cash flow hedges 293 (141 ) 152 Total other comprehensive income $ 8,769 $ (4,207 ) $ 4,562 December 31, 2016 (in thousands) Before Tax Tax Net of Tax Unrealized losses on available for sale securities arising during the period $ (5,952 ) $ 2,113 $ (3,839 ) Reclassification adjustment for net gains on sale of securities included in net income (1,556 ) 552 (1,004 ) Unrealized gains on interest rate swaps designated as cash flow hedges 5,578 (1,980 ) 3,598 Total other comprehensive loss $ (1,930 ) $ 685 $ (1,245 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company was a wholly-owned subsidiary of MSF through August 10, 2018 when The Distributed Shares were distributed to MSF’s shareholders. MSF sold all of its voting Class A common stock in the IPO, and reduced its nonvoting Class B common stock to less than 5% of the Company’s total common stock on December 28, 2018. As a result, at year end 2018, MSF no longer controlled the Company or the Bank. Entities that are part of the MSF group outside the U.S. were related parties during most of 2018. Transactions with related parties are entered into pursuant to the Company’s policies and procedures, and Federal Reserve Regulation W, on substantially the same terms and conditions as transactions with unaffiliated third parties. In addition to loans to related parties and associated interest income, which are described below, included in the consolidated balance sheets and the consolidated statements of operations are amounts with related parties as follows: December 31, (in thousands) 2018 2017 Liabilities Demand deposits, noninterest bearing $ 9,447 $ 24,879 Demand deposits, interest bearing 3,721 21,071 Money market 308 449 Time deposits and accounts payable 1,350 7,636 Total due to related parties $ 14,826 $ 54,035 Years Ended December 31, (in thousands) 2018 2017 2016 Income Data processing and other services $ 2,168 $ 1,532 $ 2,328 Rental income from operating lease 248 1,971 1,976 Service charges 95 90 83 $ 2,511 $ 3,593 $ 4,387 Expenses Interest expense $ 126 $ 85 $ 73 Loss on sale of securities — — 796 Fees and other expenses 623 302 504 749 387 1,373 $ 1,762 $ 3,206 $ 3,014 Securities transactions On December 29, 2018, the Company repurchased Class B common stock from MSF. See Note 15 for more details. In 2016, the Company sold securities guaranteed by the government of Venezuela to a non-U.S. affiliate at their fair value of approximately $11.8 million and realized a loss on the sale of approximately $0.8 million . Such securities had been held by the Company as available for sale. Loan transactions The Company originates loans in the normal course of business to certain related parties. At December 31, 2018 and 2017, these loans amounted to $5.6 million and $4.8 million , respectively. These loans are generally made to persons who participate or have authority to participate (other than in the capacity of a director) in major policymaking functions of the Company or its affiliates, such as principal owners and management of the entity and their immediate families. Interest income on these loans was approximately $0.2 million in 2018 and 2017. In 2016, the Company purchased from the Bank a non-performing loan to a Canadian oil company’s Colombian operation at its fair value at the time of the transaction. Subsequently, the Company sold to a non-U.S. affiliate shares received in a restructuring of the same loan at their estimated fair value of approximately $4.9 million , which was included in other assets in the cash flow statement. The Company realized no gain or loss on sale of such shares. For the years ended December 31, 2018 and 2017, participations in corporate financial institution loans that were sold to non-U.S. affiliates amounted to approximately $10 million and $45 million , respectively. These participated loans were made to unaffiliated borrowers under terms consistent with the Company’s normal lending practices. The Company recorded no gain or loss on these loan participation transactions. There were no participations purchased from affiliates in 2018 and 2017. Services provided and received The Company has provided certain data processing and corporate services to non-U.S. affiliates under the terms of certain services agreements. Fee income for those services are included in data processing and other fees above. MSF has granted us a two-year license under our Amended and Restated Separation and Distribution Agreement dated as of June 12, 2018, commencing on August 18, 2018, to use the “Mercantil” name and marks in connection with our business. All such use must be in accordance with MSF’s current use policies. No fees are payable for the first year of the license. After the first year, the Company is obligated to pay a license fee monthly, at an annual rate equal to the lesser of $400,000 or the fair value of the license as determined by an independent appraisal consistent with Federal Reserve Regulation W. Payments under this license will cease when we terminate the use of the name and mark. We do not expect to pay any license fees to MSF. In 2018, the Company entered into a custody agreement and an information agent agreement with an MSF’s wholly owned Venezuela bank, and MSF, respectively. As a service to its smaller shareholders and to promote shareholder liquidity generally, the Company pays fees to be agreed on a per account fee for serving as custodian and transaction fees for assisting with changes in share ownership, including distribution of any payments from the Company in respect of Company shares that may be repurchased. The agreements provide for monthly fees payable by the Company and have an initial term of one year, subject to renewal for an additional year, and may be terminated earlier. Leasing subsidiary On February 15, 2018, the Company sold its membership interest in G200 Leasing, LLC (“G200 Leasing”) to a non-U.S. affiliate subsidiary of MSF. Prior to the sale, G200 Leasing distributed $19.8 million in cash to the Bank. All of the membership interests in G200 Leasing were sold for $8.5 million , which approximated the fair value of net assets sold. Net assets sold were mainly comprised of approximately $1 million cash held at the Bank and approximately $7.5 million corresponding to the net book value of an aircraft owned by G200 Leasing . The Company recorded no gain or loss on this sale. G200 Leasing had leased its aircraft to MSF. Under the terms of the lease agreement between G200 Leasing and MSF, MSF had sole use of the aircraft and provided for all of its scheduled maintenance, including maintaining sufficient qualified collateral in accordance with U.S. banking regulatory requirements. MSF had time deposits with the Company sufficient to meet those collateral requirements. Income from this lease agreement was included in rental income from the operating lease in the table above. Dividends paid 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, in connection with the Spin-off. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity (a) Amended and Restated Articles of Incorporation On February 6, 2018, the Company filed amended and restated articles of incorporation with the Secretary of State of Florida. Pursuant to the amended and restated articles, the total number of authorized Company shares of all classes is 550,000,000 , consisting of the following classes: Class Number of Par Value Common Stock: Class A 400,000,000 $ 0.10 Class B 100,000,000 0.10 500,000,000 Preferred Stock 50,000,000 0.10 550,000,000 Common Stock Holders of shares of Class A common stock and shares of Class B common stock have identical rights in all respects other than voting rights. Shares of Class B common stock are not convertible into shares of Class A common stock or vice versa. Holders of shares of Class A common stock are entitled to one vote per share on all matters. Holders of Class B common stock are entitled to one-tenth of a vote per share of Class B common stock, voting (i) together with the Class A common stock as a single voting group on proposals to appoint the Company’s independent auditors, if the Company seeks such a vote, (ii) as required by the Florida Business Corporation Act, and (iii) as a single voting group in other circumstances, including a reorganization event that adversely affects the rights of the Class B common stock. Preferred Stock The Board of Directors is authorized to provide for and designate, out of the authorized but unissued shares of Preferred Stock, one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares, the price, dividend rates, rights, preferences, privileges and restrictions, including voting rights, of one or more series of preferred stock form time to time, without any vote or further action by the shareholders. There are currently no outstanding shares of preferred stock. Dividends Dividends shall be payable only when, as and if declared by the Board of Directors from lawful available funds, and may be paid in cash, property, or shares of any class or series or other securities or evidences of indebtedness of the Company or any other issuer, as may be determined by resolution or resolutions of the Board of Directors. Shares of Class B common stock are not entitled to receive dividends or distributions payable in shares of Class A common stock. b) Stock Splits On February 6, 2018, the Company exchanged 100% of the 298,570,328 shares of Class A common stock and 215,188,764 shares of Class B common stock outstanding, for 74,212,408 shares of Class A common stock and 53,253,157 shares of Class B common stock (the “Exchange”). This facilitated the distribution in the Spin-off of one share of Class A and Class B common stock for each outstanding share of MSF Class A and Class B common stock, respectively. 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 24,737,470 shares, and reduced the number of shares of Class B common stock issued and outstanding from 53,253,157 shares to 17,751,053 shares. As a result of the rebranding discussed in Note 1 to these consolidated financial statements, 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 Class A shares) and “AMTBB” (for the Class B shares). The Company’s Class A and Class B shares had previously traded under the symbols “MBNA” and “MBNAA”, respectively. All references made to share or per share amounts in the consolidated financial statements for the periods presented and applicable disclosures have been retroactively adjusted to reflect the Exchange and Stock Split. In addition, as a result of the Exchange and Stock Split, the Company reclassified an amount equal to the reduction in the number of Company Shares at par value to additional paid-in capital on its consolidated financial statements for the periods presented. c) Class A Common Stock Shares of the Company’s Class A common stock issued and outstanding as of December 31, 2018 and 2017 were 26,851,832 and 24,737,470 , respectively. IPO On December 21, 2018, the Company closed the IPO of 6,300,000 shares of its Class A common stock at a public offering price of $13.00 per share. Of the 6,300,000 shares of Class A common stock sold in the offering, the Company sold 1,377,523 shares of Class A common stock and MSF sold all of its 4,922,477 shares of Class A common stock. In addition, the Company granted the underwriters a 30 -day option to purchase up to an additional 945,000 shares of Class A common stock at the public offering price, less the underwriting discount, to cover over-allotment. The net proceeds to the Company from the sale of its shares of Class A common stock in the IPO were approximately $17.9 million . The Company received no proceeds from the sale of its shares of Class A common stock in the IPO by MSF. On January 23, 2019, the Underwriters partially exercised their over-allotment option by purchasing 229,019 shares of the Company’s Class A common stock at the public offering price of $13.00 per shares of Class A common stock. The net proceeds to the Company from this transaction were approximately $3.0 million . MSF agreed to pay all underwriting discounts, commissions and offering expenses with respect to the IPO. Private Placements On February 1, 2019 and February 28, 2019, the Company issued and sold 153,846 and 1,750,000 shares of its Class A common stock, respectively, in private placements exempt from registration under Section 4(a)(2) of the Securities Act and Securities and SEC Rule 506 (the “Private Placements”). The net proceeds to the Company from the Private Placements totaled approximately $26.7 million . Stock Compensation Award On December 21, 2018, in connection with the closing of the Company’s IPO, the Company’s directors were granted restricted stock units, and various Company officers and employees were granted restricted Class A common stock awards, under the 2018 Equity Plan. Under this plan, the Company issued an aggregate of 736,839 shares of restricted stock during 2018. Refer to Note 11 to our consolidated financial statements for additional information about common stock transactions under the 2018 Equity Plan. d) Class B Common Stock and Treasury Stock Shares of the Company’s Class B common stock issued and outstanding as of December 31, 2018 and 2017 were 17,751,053 . On December 27, 2018, following the December 21, 2018 closing of the Company’s IPO, the Company and MSF entered into the Class B Purchase Agreement. Pursuant to the Class B Purchase Agreement, the Company agreed to purchase up to all 3,532,457 shares of its nonvoting Class B common stock from MSF using the net proceeds from the Company’s sale of its Class A common stock. On December 28, 2018, the Company completed the purchase of 1,420,136 shares of Class B common stock from MSF for $12.61 per shares of Class B common stock, representing an aggregate purchase price of approximately $17.9 million . The aforementioned 1,420,136 shares of Class B common stock are held in treasury stock under the cost method. On March 7, 2019, the Company repurchased all of MSF’s 2,112,321 remaining shares of nonvoting Class B common stock at a weighted average price of $13.48 per share with proceeds from the IPO over-allotment exercise and the Private Placements, representing an aggregate purchase price of approximately $28.5 million . The aforementioned 2,112,321 shares of Class B common stock are held in treasury stock under the cost method. e) Dividends 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 $6 million for each of the years ended December 31, 2018, 2017 and 2016, respectively. Future minimum annual lease payments under such leases are as follows: Years Approximate (in thousands) 2019 $ 6,281 2020 6,223 2021 5,930 2022 5,386 2023 5,069 Thereafter 43,071 $ 71,960 The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, credit card facilities and letters of credit. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making loan commitments and letters of credit as it does for on-balance sheet instruments. The Company controls the credit risk of loan commitments and letters of credit through credit approvals, customer limits, and monitoring procedures. Loan commitments are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include cash, accounts receivable, inventory, property and equipment, real estate in varying stages of development and occupancy, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support borrowing arrangements. They generally have one year terms and are renewable annually, if agreed. The credit risk involved in issuing standby letters of credit is generally the same as that involved in extending loan facilities to customers. The Company generally holds deposits, investments and real estate as collateral supporting those commitments. The extent of collateral held for those commitments at December 31, 2018 ranges from unsecured commitments to commitments fully collateralized by cash and securities. Commercial letters of credit are conditional commitments issued by the Company to guarantee payment by a customer to a third party, and are used primarily for importing or exporting goods and are terminated when proper payment is made by the customer. Credit card facilities represent the unused balance of the customers’ available credit card lines, and correspond to the maximum possible credit risk to the Company should customers draw upon their available credit card lines. We have not experienced and do not anticipate that all of our customers will access their entire available line at any given point in time. Financial instruments whose contract amount represents off-balance sheet credit risk at December 31, 2018 are generally short-term and are as follows: (in thousands) Approximate Commitments to extend credit $ 923,424 Credit card facilities 198,500 Standby letters of credit 19,562 Commercial letters of credit 7,670 $ 1,149,156 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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: December 31, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 820,779 $ — $ 820,779 Corporate debt securities — 352,555 — 352,555 U.S. government agency debt securities — 216,985 — 216,985 Municipal bonds — 160,212 — 160,212 Mutual funds — 23,110 — 23,110 Commercial paper — 12,410 — 12,410 — 1,586,051 — 1,586,051 Bank owned life insurance — 206,141 — 206,141 Derivative instruments — 11,491 — 11,491 $ — $ 1,803,683 $ — $ 1,803,683 Liabilities Derivative instruments $ — $ 2,388 $ — $ 2,388 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 generally recognized providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data fro m various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. 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. • The captured spread and prepayment speed is 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 significant assets or liabilities measured at fair value on a nonrecurring basis at December 31, 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. • 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: December 31, 2018 December 31, 2017 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,850,015 $ 2,739,721 $ 2,682,790 $ 2,566,197 Financial liabilities Time deposits 1,745,025 1,740,752 1,466,464 1,461,908 Advances from the Federal Home Loan Bank 1,166,000 1,167,213 1,161,000 1,164,686 Junior subordinated debentures 118,110 99,450 118,110 95,979 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 820,779 $ — $ 820,779 Corporate debt securities — 352,555 — 352,555 U.S. government agency debt securities — 216,985 — 216,985 Municipal bonds — 160,212 — 160,212 Mutual funds — 23,110 — 23,110 Commercial paper — 12,410 — 12,410 — 1,586,051 — 1,586,051 Bank owned life insurance — 206,141 — 206,141 Derivative instruments — 11,491 — 11,491 $ — $ 1,803,683 $ — $ 1,803,683 Liabilities Derivative instruments $ — $ 2,388 $ — $ 2,388 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 generally recognized providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data fro m various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. 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. • The captured spread and prepayment speed is 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 significant assets or liabilities measured at fair value on a nonrecurring basis at December 31, 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. • 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: December 31, 2018 December 31, 2017 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,850,015 $ 2,739,721 $ 2,682,790 $ 2,566,197 Financial liabilities Time deposits 1,745,025 1,740,752 1,466,464 1,461,908 Advances from the Federal Home Loan Bank 1,166,000 1,167,213 1,161,000 1,164,686 Junior subordinated debentures 118,110 99,450 118,110 95,979 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters The Company and the Bank are subject to various regulatory requirements administered by federal banking agencies. The following is a summary of restrictions related to dividend payments and capital adequacy. Dividend Restrictions Dividends payable by the Bank as a national bank subsidiary of the Company, are limited by law and Office of the Comptroller of the Currency (“OCC”) regulations. A dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years, unless the national bank obtains the approval of the OCC. At December 31, 2018 and 2017, the Bank could pay dividends of $82.6 million and $84.4 million , respectively, without prior OCC approval. In addition, the Company and the Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain capital above regulatory minimums and the maintenance of capital in excess of capital conservation buffers required by the Federal Reserve and OCC capital regulations. Capital Adequacy Under the Basel III capital and prompt corrective action rules, the Company and the Bank must meet specific capital guidelines that involve quantitative measures and qualitative judgments about capital components, risk weightings, and other factors. The Basel III rules became effective for the Company and the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule and were fully phased in by January 1, 2019. The Company and the Bank opted to not include the AOCI or AOCL in computing regulatory capital. As of December 31, 2018, management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject, and are well capitalized. In addition, the Company and the Bank must each hold a capital conservation buffer of 2.50% by 2019. The Company’s capital conservation buffer at year end 2018 and 2017 was 5.5% and 5.3% , respectively, and therefore no regulatory restrictions exist under the applicable capital rules on dividends or discretionary bonuses or other payments. The Bank’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums to be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total capital ratio $ 883,746 13.05 % $ 541,564 8.00 % $ 676,955 10.00 % Tier 1 capital ratio 826,114 12.20 % 406,173 6.00 % 541,564 8.00 % Tier 1 leverage ratio 826,114 9.96 % 331,829 4.00 % 414,786 5.00 % Common equity tier 1 (CET1) 826,114 12.20 % 304,630 4.50 % 440,021 6.50 % December 31, 2017 Total capital ratio $ 885,855 12.69 % $ 556,446 8.00 % $ 695,557 10.00 % Tier 1 capital ratio 812,631 11.68 % 417,334 6.00 % 556,446 8.00 % Tier 1 leverage ratio 812,631 9.69 % 335,600 4.00 % 419,500 5.00 % Common equity tier 1 (CET1) 812,631 11.68 % 313,001 4.50 % 452,112 6.50 % The Company’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums To be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total capital ratio $ 916,663 13.54 % $ 541,638 8.00 % $ 677,047 10.00 % Tier 1 capital ratio 859,031 12.69 % 406,228 6.00 % 541,638 8.00 % Tier 1 leverage ratio 859,031 10.34 % 332,190 4.00 % 415,238 5.00 % Common equity tier 1 (CET1) 749,465 11.07 % 304,671 4.50 % 440,080 6.50 % December 31, 2017 Total capital ratio $ 926,049 13.31 % $ 556,578 8.00 % $ 695,722 10.00 % Tier 1 capital ratio 852,825 12.21 % 417,433 6.00 % 556,578 8.00 % Tier 1 leverage ratio 852,825 10.15 % 335,647 4.00 % 419,559 5.00 % Common equity tier 1 (CET1) 753,545 10.68 % 313,075 4.50 % 452,220 6.50 % |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table shows the calculation of basic and diluted earnings per share: (in thousands, except per share data) 2018 2017 2016 Numerator: Net income available to common stockholders $ 45,833 $ 43,057 $ 23,579 Denominator: Basic weighted averages shares outstanding 42,487 42,489 42,489 Dilutive effect of shared-based compensation awards — — — Diluted weighted average shares outstanding 42,487 42,489 42,489 Basic earnings per common share $ 1.08 $ 1.01 $ 0.55 Diluted earnings per common share $ 1.08 $ 1.01 $ 0.55 As of December 31, 2018, 736,839 unvested shares of restricted stock were excluded from the diluted earnings per share computation because they would have an anti-dilutive effect. As of December 31, 2017 and 2016, the Company had no other outstanding or potentially dilutive instruments. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We determine our business segments based upon the products and services they provide, the functions performed, or the type of customers served. The business segment information presented in this section reflects our current organizational structure as currently evaluated by management. There are four reportable business segments: Personal and Commercial Banking (“PAC”), Corporate LATAM, Treasury, and Institutional. Corporate activities, including the activities of the Bank’s trust company and broker-dealer subsidiaries, as well as eliminations of balances and transactions between business segments and other corporate allocations are reported under Institutional. Results of these lines of business are presented on a managed basis. Substantially all revenues are generated within the U.S. The following is a description of each of the Company’s business segments, and the products and services they provide to their respective client bases: Personal and Commercial Banking (“PAC”) PAC delivers the subsidiary Bank’s core services and products to personal and commercial customers in domestic and international markets. Through this segment, both domestic and international customers are introduced to delivery channels, including U.S. retail banking centers, online banking, mobile banking, and an ATM network. Targeting the needs of individuals and businesses, its products and services include consumer and commercial banking products such as checking accounts, savings accounts, time deposits, loans and lines of credit, residential and commercial mortgage lending, and unsecured loans and lines of credit, among others. Corporate LATAM Corporate LATAM serves financial institutions using a tiered approach, and companies in Latin America generally with over $1 billion in annual sales in several large industries. The segment combines the team’s expertise in domestic and international markets under one reporting structure to leverage relationship attraction and retention opportunities throughout all markets served. Results of this segment are primarily driven by changes in short-term interest rates, the credit quality of its loan portfolio and, the impact of the economic environment in borrower performance. Treasury Treasury is responsible for managing interest rate risk and liquidity risk for the Bank’s balance sheet. Treasury management services complement the mix of products, including loan syndications and accounts receivables, channeled through PAC, and help businesses monitor banking transactions and manage their cash flows. Additionally, Treasury manages credit risk in the Bank’s investment portfolio and supports bank-wide initiatives for increasing non-investment portfolio profitability. This process seeks to enhance overall returns for the Bank, while keeping the management of liquidity and interest rate costs within approved limits. Institutional Results and balances of this segment correspond to all other corporate activities not previously discussed, including Funds Transfer Pricing (“FTP”) capital compensation, excess or deficits in the required level of provision for loan losses not born by the business units, the residual amounts of corporate expenses after allocations to other business units, as well as eliminations of balances and transactions between business segments. Segment results The following tables provide a summary of the Company’s financial information as of and for the years ended December 31, 2018 , 2017 and 2016 on a managed basis. The Company’s definition of managed basis starts with the reported U.S. GAAP results and includes funds transfer pricing, or 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) PAC Corporate LATAM Treasury Institutional Total For the year Ended December 31, 2018 Income Statement: Net interest income $ 196,008 $ 5,308 $ 4,527 $ 13,196 $ 219,039 Provision for (reversal of) loan losses 1,303 (3,783 ) (212 ) 3,067 375 Net interest income after provision for (reversal of) loan losses 194,705 9,091 4,739 10,129 218,664 Noninterest income 22,556 365 8,400 22,554 53,875 Noninterest expense 160,491 4,035 11,438 39,009 214,973 Net income (loss) before income tax: Banking 56,770 5,421 1,701 (6,326 ) 57,566 Non-banking contribution (1) 2,552 13 — (2,565 ) — 59,322 5,434 1,701 (8,891 ) 57,566 Income tax (expense) benefit (12,243 ) (1,122 ) 1,546 86 (11,733 ) Net income (loss) $ 47,079 $ 4,312 $ 3,247 $ (8,805 ) $ 45,833 As of December 31, 2018 Loans, net (2) $ 5,845,266 $ 69,755 $ — $ (56,608 ) $ 5,858,413 Deposits $ 5,339,099 $ 16,293 $ 642,106 $ 35,188 $ 6,032,686 (in thousands) PAC Corporate LATAM Treasury Institutional Total For the Year Ended December 31, 2017 Income Statement: Net interest income $ 182,872 $ 9,514 $ 6,649 $ 10,675 $ 209,710 Provision for (reversal of) loan losses 42 (3,879 ) (1,547 ) 1,894 (3,490 ) Net interest income after provision for (reversal of) loan losses 182,830 13,393 8,196 8,781 213,200 Noninterest income 26,468 509 8,920 35,588 71,485 Noninterest expense 161,002 4,894 11,256 30,484 207,636 Net income before income tax: Banking 48,296 9,008 5,860 13,885 77,049 Non-banking contribution (1) 4,788 55 — (4,843 ) — 53,084 9,063 5,860 9,042 77,049 Income tax (expense) benefit (18,784 ) (3,207 ) 1,106 (13,107 ) (33,992 ) Net income (loss) $ 34,300 $ 5,856 $ 6,966 $ (4,065 ) $ 43,057 (in thousands) 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 (In thousands) PAC Corporate LATAM Treasury Institutional Total For the Year ended December 31, 2016 Income Statement: Net interest income $ 157,325 $ 15,302 $ 12,586 $ 6,720 $ 191,933 Provision for (reversal of) loan losses 5,795 13,620 (1,069 ) 3,764 22,110 Net interest income after provision for (reversal of) loan losses 151,530 1,682 13,655 2,956 169,823 Noninterest income 26,461 843 7,808 27,158 62,270 Noninterest expense 156,146 8,295 9,041 24,821 198,303 Net income before income tax: Banking 21,845 (5,770 ) 12,422 5,293 33,790 Non-banking contribution (1) 5,136 (124 ) — (5,012 ) — 26,981 (5,894 ) 12,422 281 33,790 Income tax (expense) benefit (10,068 ) 2,200 (1,473 ) (870 ) (10,211 ) Net income (loss) $ 16,913 $ (3,694 ) $ 10,949 $ (589 ) $ 23,579 __________________ (1) Non-banking contribution reflects allocations of the net results of Amerant Trust and Amerant Investments 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. |
Condensed Unconsolidated Holdin
Condensed Unconsolidated Holding Companies’ Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Unconsolidated Financial Statements | Condensed Unconsolidated Holding Companies’ Financial Statements The separate condensed unconsolidated financial statements of each of the Company and its wholly-owned subsidiary Mercantil Florida Bancorp, Inc. have been prepared using the same basis of accounting that the Company used to prepare its consolidated financial statements described in Note 1, except for its investment in subsidiaries which is accounted for using the equity method. Under the equity method, investments in subsidiaries are initially recorded at cost, and they are periodically adjusted due to changes in the interest of the parent company over the net assets of the subsidiaries. The Company records in the results for the period, its participation in the profit or loss of the subsidiaries, and in AOCL its participation in the “Other comprehensive income account” of the subsidiary. In applying the equity method the Company uses the subsidiaries consolidated financial statements at the end of the period prepared under U.S. GAAP. Condensed financial statements of Mercantil Bank Holding Corporation are presented below: Condensed Balance Sheets: December 31, (in thousands) 2018 2017 Assets Cash and due from banks $ 1,891 $ 1,420 Investments in subsidiaries 746,344 752,409 Other assets 1,720 1,798 $ 749,955 $ 755,627 Liabilities and Stockholders' Equity Other liabilities $ 2,537 $ 2,177 Stockholders' equity 747,418 753,450 $ 749,955 $ 755,627 Condensed Statements of Income: Years ended December 31 (in thousands) 2018 2017 2016 Income: Interest $ 9 $ 3 $ 2 Equity in earnings of subsidiary 53,939 45,008 23,996 Total income 53,948 45,011 23,998 Expenses: Employee compensation and benefit — 350 350 Other expenses 8,018 2,539 250 Total expense 8,018 2,889 600 Net income before income tax benefit 45,930 42,122 23,398 Income tax (expense) benefit (97 ) 935 181 Net income $ 45,833 $ 43,057 $ 23,579 Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 45,833 $ 43,057 $ 23,579 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (53,939 ) (45,008 ) (23,996 ) Net change in other assets and liabilities 438 1,337 (2 ) Net cash used in operating activities (7,668 ) (614 ) (419 ) Cash flows from investing activities Cash received upon Voting Trust termination 639 — — Dividends from subsidiary 47,500 700 400 Net cash provided by investment activities 48,139 700 400 Cash flows from financing activities Dividends paid (40,000 ) — — Common stock issued - Class A 17,908 — — Repurchase of common stock - Class B (17,908 ) — — Net cash used in financing activities (40,000 ) — — Net increase (decrease) in cash and cash equivalents 471 86 (19 ) Cash and cash equivalents Beginning of year 1,420 1,334 1,353 End of year $ 1,891 $ 1,420 $ 1,334 Investment in subsidiaries corresponds to the Company’s direct investment in Florida Bancorp in 2018 and the Company’s beneficial ownership of the Voting Trust in 2017. The Company had determined that it was the sole beneficial owner of the Voting Trust and consolidated the financial statements of the Voting Trust with its own financial statements for regulatory reporting purposes. In 2017, the Voting Trust wholly-owned Mercantil Florida Bancorp, Inc., which in turn wholly-owned the Bank and its subsidiaries. In 2018, the Voting Trust was terminated and ownership of Florida Bancorp, Inc. was assumed by the Company. Condensed financial statements of Mercantil Florida Bancorp, Inc are presented below: Condensed Balance Sheets: December 31, (in thousands) 2018 2017 Assets Cash and due from banks $ 32,922 $ 39,089 Investments in subsidiaries 822,940 821,982 Other assets 9,640 9,775 $ 865,502 $ 870,846 Liabilities and Stockholder’s Equity Junior subordinated debentures held by trust subsidiaries $ 118,110 $ 118,110 Other liabilities 1,048 979 Stockholder’s equity 746,344 751,757 $ 865,502 $ 870,846 Condensed Statements of Income: Years ended December 31 (in thousands) 2018 2017 2016 Income: Interest $ 182 $ 85 $ 33 Equity in earnings of subsidiary 60,609 50,982 31,282 Total income 60,791 51,067 31,315 Expenses: Interest Expense 8,086 7,456 7,129 Provision fr loan losses — — 1,838 Other expenses 414 1,310 1,361 Total expense 8,500 8,766 10,328 Net income before income tax benefit 52,291 42,301 20,987 Income tax benefit 1,661 2,726 3,031 Net income $ 53,952 $ 45,027 $ 24,018 Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 53,952 $ 45,027 $ 24,018 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (60,609 ) (50,982 ) (31,282 ) Net change in other assets and liabilities 490 (4 ) (35 ) Net cash used in operating activities (6,167 ) (5,959 ) (7,299 ) Cash flows from investing activities Dividends received from subsidiary 47,500 6,000 6,000 Dividends paid (47,500 ) (700 ) (400 ) Net cash provided by investing activities — 5,300 5,600 Net decrease in cash and cash equivalents (6,167 ) (659 ) (1,699 ) Cash and cash equivalents Beginning of year 39,089 39,748 41,447 End of year $ 32,922 $ 39,089 $ 39,748 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Subsequent Events | Subsequent Events The effects of significant subsequent events, if any, have been recognized or disclosed in these consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
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 period. Significant estimates made by management include: i) the determination of the allowance for loan losses; (ii) the fair values of securities and the reporting unit to which goodwill has been assigned during the annual goodwill impairment test; (iii) the cash surrender value of bank owned life insurance; and (iv) 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. |
Income Recognition, Interest | Interest income is generally recognized on the accrual basis using the interest method. Non-refundable loan origination fees, net of direct costs of originating or acquiring loans, as well as loan purchase premiums and discounts, are deferred and amortized over the term of the related loans as adjustments to interest income using the level yield method. Purchase premiums and discounts on debt securities are amortized as adjustments to interest income over the estimated lives of the securities using the level yield method. |
Income Recognition, Fees | Brokerage and advisory activities include brokerage commissions and advisory fees. Brokerage commissions earned are related to the dollar amount of trading volume of customers’ transactions. Commissions and related clearing expenses are recorded on a trade-date basis as securities transactions occur. Advisory fees are derived from investment advisory fees and account administrative services. Investment advisory fees are recorded as earned on a pro rata basis over the term of the contracts, based on a percentage of the average value of assets managed during the period. These fees are assessed and collected at least quarterly. Account administrative fees are charged to customers for the maintenance of their accounts and are earned and collected on a quarterly basis. Fiduciary activities fee income is recognized as earned on a pro rata basis over the term of contracts. Card servicing fees include credit card issuance and credit and debit card interchange fees. Credit card issuance fees are generally recognized over the period in which the cardholders are entitled to use the cards. Interchange fees are recognized when earned. Trade finance servicing fees, which primarily include commissions on letters of credit, are generally recognized over the service period on a straight line basis. Deposits and services fees include service charges on deposit accounts, fees for banking services provided to customers including wire transfers, overdrafts and non-sufficient funds. Revenue is generally recognized in accordance with published deposit account agreements for customer accounts or when fixed and determinable per contractual agreements. Data processing, rental income and fees for other services to related parties are recognized as the services are provided in accordance with the terms of the service agreements. |
Earnings Per Share | Earnings per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Unvested shares of restricted stock are excluded from the basic earnings per share computation. Diluted net income per common share reflects the number of additional common stock that would have been outstanding if the dilutive potential common stock had been issued. Dilutive potential common stock consist of unvested shares of restricted stock outstanding during the period. The dilutive effect of potential common stock is calculated by applying the treasury stock method. The latter assumes dilutive potential common stock are issued and outstanding and the proceeds from the exercise, are used to purchase common stock at the average market price during the period. The difference between the numbers of dilutive potential common stock issued and the number of shares purchased is included as incremental shares in the denominator to compute diluted net income per common stock. Dilutive potential common stock are excluded from the diluted earnings per share computation in the period in which the effect is anti-dilutive. Changes in the number of shares outstanding as a result of stock dividends, stock splits, stock exchanges or reverse stock splits are given effect retroactively for all periods presented to reflect those changes in capital structure. |
Stock-based Compensation | Stock-based Compensation The Company may grant share-based compensation and other related awards to its non-employee directors, officers, employees and certain consultants. Compensation cost is measured based on the estimated far value of the award at the grant date and recognized in earnings on a straight -line basis over the requisite service period or vesting period. The fair value of the unvested shares of restricted stock is based on the market price of the Company’s Class A common stock at the date of the grant. |
Advertising Expenses | Advertising Expenses Advertising expenses are expensed as incurred and are included in other noninterest expenses. |
Offering Expenses | Offering Expenses Specific, non-reimbursable, incremental costs directly attributable to a proposed or actual securities offerings are deferred and charged against the gross proceeds of the offering. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company has defined as cash equivalents those highly liquid instruments purchased with an original maturity of three months or less and include cash and cash due from banks, federal funds sold and deposits with banks. The Company must comply with federal regulations requiring the maintenance of minimum reserve balances against its deposits. At December 31, 2018 and 2017, these reserve balances amounted to approximately $0.2 million and $1.2 million , respectively. |
Securities | Securities The Company classifies its investments in securities as available for sale and held to maturity. Securities classified as available for sale are carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) in stockholders’ equity on an after-tax basis. Securities classified as held to maturity are securities the Company has both the ability and intent to hold until maturity and are carried at amortized cost. Investments in stock issued by the Federal Reserve and Federal Home Loan Bank of Atlanta (“FHLB”) are stated at their original cost, which approximates their realizable value. Realized gains and losses from sales of securities are recorded on the trade date and are determined using the specific identification method. Securities purchased are recorded on the consolidated balance sheets as of the trade date. Receivables and payables to and from clearing organizations relating to outstanding transactions are included in other assets or other liabilities. At December 31, 2018 and 2017 securities receivables amounted to $3.5 million and $6.5 million , respectively. The Company considers an investment security to be impaired when a decline in fair value below the amortized cost basis is other-than-temporary. When an investment security is considered to be other-than-temporarily impaired, the cost basis of the individual investment security is written down through earnings by an amount that corresponds to the credit component of the other-than-temporary impairment. The amount of the other-than-temporary impairment that corresponds to the noncredit component of the other-than-temporary impairment is recorded in AOCI and is associated with securities which the Company does not intend to sell and it is more likely than not that the Company will not be required to sell the securities prior to the recovery of its fair value. The Company estimates the credit component of other-than-temporary impairment using a discounted cash flow model. The Company estimates the expected cash flows of the underlying collateral using third party vendor models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment rates (based on historical performance and stress test scenarios). Assumptions used can vary widely from security to security and are influenced by such factors as current debt service coverage ratio, historical prepayment rates, expected prepayment rates, and loans’ current interest rates. The Company then uses, as it deems appropriate, a third party vendor to determine how the underlying collateral cash flows will be distributed to each security. The present value of an impaired debt security results from estimating its future cash flows, discounted at the security’s effective interest rate. The Company expects to recover the remaining noncredit related unrealized losses included as a component of AOCI. |
Loans Held for Sale | Loans Held for Sale Loans are transferred into the held for sale classification at the lower of carrying amount or fair value when they are specifically identified for sale and a formal plan exists to sell them. |
Loans | Loans Loans represent extensions of credit which the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff. These extensions of credit consist of commercial real estate loans (including land acquisition, development and construction loans), single-family residential loans, commercial loans, loans to financial institutions and acceptances, and consumer loans. Amounts included in the loan portfolio are stated at the amount of unpaid principal, reduced by unamortized net deferred loan fees and origination costs and an allowance for loan losses. Unamortized net deferred loan fees and origination costs amounted to $7.1 million and $7.4 million at December 31, 2018 and 2017, respectively. A loan is placed in nonaccrual status when management believes that collection in full of the principal amount of the loan or related interest is in doubt. Management considers that collectability is in doubt when any of the following factors are present, among others: (1) there is a reasonable probability of inability to collect principal, interest or both, on a loan for which payments are current or delinquent for less than ninety days; or (2) when a required payment of principal, interest or both is delinquent for ninety days or longer, unless the loan is considered well secured and in the process of collection in accordance with regulatory guidelines. Once a loan to a single borrower has been placed in nonaccrual status, management reviews all loans to the same borrower to determine their appropriate accrual status. When a loan is placed in nonaccrual status, accrual of interest and amortization of net deferred loan fees or costs are discontinued, and any accrued interest receivable is reversed against interest income. Payments received on a loan in nonaccrual status are generally applied to its outstanding principal amount, unless there are no doubts on the full collection of the remaining recorded investment in the loan. When there are no doubts on the full collection of the remaining recorded investment in the loan, and there is sufficient documentation to support the collectability of that amount, payments of interest received may be recorded as interest income. A loan in nonaccrual status is returned to accrual status when none of the conditions noted when first placed in nonaccrual status are currently present, none of its principal and interest is past due, and management believes there are reasonable prospects of the loan performing in accordance with its terms. For this purpose, management generally considers there are reasonable prospects of performance in accordance with the loan terms when at least six months of principal and interest payments or principal curtailments have been received, and current financial information of the borrower demonstrates that performance will continue into the near future. The total outstanding principal amount of a loan is reported as past due thirty days following the date of a missed scheduled payment, based on the contractual terms of the loan. Loans which have been modified because the borrowers were experiencing financial difficulty and the Company, for economic or legal reasons related to the debtors’ financial difficulties, granted a concession to the debtors that it would not have otherwise considered, are accounted for as troubled debt restructurings (“TDR”). |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses represents an estimate of the current amount of principal that is probable the Company will be unable to collect given facts and circumstances as of the evaluation date, and includes amounts arising from loans individually and collectively evaluated for impairment. These estimated amounts are recorded through a provision for loan losses charged against income. Management periodically evaluates the adequacy of the allowance for loan losses to maintain it at a level believed reasonable to provide for recognized and unrecognized but inherent losses in the loan portfolio. The Company uses the same methods used to determine the allowance for loan losses, to assess any reserves needed for off-balance sheet credit risks such as unfunded loan commitments and contingent obligations on letters of credit. These reserves for off-balance sheet credit risks are presented in the liabilities section in the consolidated balance sheets. The Company develops and documents its methodology to determine the allowance for loan losses at the portfolio segment level. The Company determines its loan portfolio segments based on the type of loans it carries and their associated risk characteristics. The Company’s loan portfolio segments are: Real Estate, Commercial, Financial Institutions, Consumer and Other. Loans in these portfolio segments have distinguishing borrower needs and differing risks associated with each product type. Real estate loans include commercial loans secured by real estate properties. Commercial loans secured by non-owner occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these real estate loans is derived from cash flows or conversion of productive assets and not from the income generated by the disposition of the property held as collateral. The main repayment source of loans granted to finance land acquisition, development and construction projects is generally derived from the disposition of the properties held as collateral, with the repayment capacity of the borrowers and any guarantors considered as alternative sources of repayment. Commercial loans correspond to facilities established for specific business purposes such as financing working capital and capital improvements projects and asset-based lending, among others. These may be loan commitments, uncommitted lines of credit to qualifying customers, short term (one year or less) or longer term credit facilities, and may be secured, unsecured or partially secured. Terms on commercial loans generally do not exceed five years, and exceptions are documented. Commercial loans secured by owner-occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these commercial real estate loans is derived from cash flows and not from the income generated by the disposition of the property held as collateral. Commercial loans to borrowers in similar businesses or products with similar characteristics or specific credit requirements are generally evaluated under a standardized commercial credit program. Commercial loans outside the scope of those programs are evaluated on a case by case basis, with consideration of any exposure under an existing commercial credit program. Loans to financial institutions and acceptances are facilities granted to fund certain transactions classified according to their risk level, and primarily include trade financing facilities through letters of credits, bankers’ acceptances, pre- and post-export financing, and working capital loans, among others. Loans in this portfolio segment are generally granted for terms not exceeding three years and on an unsecured basis under the limits of an existing credit program, primarily to large financial institutions in Latin America which the Company believes are of high quality. Prior to approval, management also considers cross-border and portfolio limits set forth in its programs and credit policies. Consumer and other loans are retail open-end and closed-end credits extended to individuals for household, family and other personal expenditures. These loans include loans to individuals secured by their personal residence, including first mortgage, home equity and home improvement loans as well as revolving credit card agreements. Because these loans generally consist of a large number of relatively small-balance, homogeneous loans for each type, their risks are generally evaluated collectively. An individual loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including both principal and interest, according to the contractual terms of the loan agreement. The Company generally considers as impaired all loans in nonaccrual status, and other loans classified in accordance with an internal risk grading system exceeding a defined threshold when it is probable that an impairment exists and the amount of the potential impairment is reasonably estimable. To determine when it is probable that an impairment exists, the Company considers the extent to which a loan may be inadequately protected by the current net worth and paying capacity of the borrower or any guarantor, or by the current value of the collateral. When a loan is considered impaired, the potential impairment is measured as the excess of the carrying value of the loan over the present value of expected future cash flows at the measurement date, or the fair value of the collateral in the case where the loan is considered collateral-dependent. If the amount of the present value of the loan’s expected future cash flows exceeds the loan’s carrying amount, the loan is still considered impaired but no impairment is recorded. The present value of an impaired loan results from estimating its future cash flows, discounted at the loan’s effective interest rate. In the case of loans considered collateral-dependent, which are generally certain real estate loans for which repayment is expected to be provided solely by the operation or sale of the underlying collateral, the potential impairment is measured based on the fair value of the asset pledged as collateral. The allowance for loan losses on loans considered TDR is generally determined by discounting the restructured cash flows by the original effective interest rate on the loan. Loans that do not meet the criteria of an individually impaired loan are collectively evaluated for impairment. These loans include large groups of smaller homogeneous loan balances, such as loans in the consumer and other loan portfolio segment, and all other loans that have not been individually identified as impaired. This group of collective loans is evaluated for impairment based on measures of historical losses associated with loans within their respective portfolio segments adjusted by a variety of qualitative factors. These qualitative factors incorporate the most recent data reflecting current economic conditions, industry performance trends or obligor concentrations within each portfolio segment, among other factors. Other adjustments may be made to the allowance for loans collectively evaluated for impairment based on any other pertinent information that management considers may affect the estimation of the allowance for loan losses, including a judgmental assessment of internal and external influences on credit quality that are not fully reflected in historical loss or their risk rating data. The measures of historical losses and the related qualitative adjustments are updated quarterly and semi-annually, respectively, to incorporate the most recent loan loss data reflecting current economic conditions. Loans to borrowers that are domiciled in foreign countries, primarily loans in the Consumer and Financial Institutions portfolio segments, are also evaluated for impairment by assessing the probability of additional losses arising from the Company’s exposure to transfer risk. The Company defines transfer risk exposure as the possibility that a loan obligation cannot be serviced in the currency of payment (U.S. Dollars) because the borrower’s country of origin may not have sufficient available currency of payment or may have put restraints on its availability, such as currency controls. To determine an individual country’s transfer risk probability, the Company assigns numerical values corresponding to the perceived performance of that country in certain macroeconomic, social and political factors generally considered in the banking industry for evaluating a country’s transfer risk. A defined country’s transfer risk probability is assigned to that country based on an average of the individual scores given to those factors, calculated using an interpolation formula. The results of this evaluation are also updated semi-annually. Loans in the Real Estate, Commercial and Financial Institutions portfolio segments are charged off against the allowance for loan losses when they are considered uncollectable. These loans are considered uncollectable when a loss becomes evident to management, which generally occurs when the following conditions are present, among others: (1) a loan or portions of a loan are classified as “loss” in accordance with the internal risk grading system; (2) a collection attorney has provided a written statement indicating that a loan or portions of a loan are considered uncollectible; and (3) the carrying value of a collateral-dependent loan exceeds the appraised value of the asset held as collateral. Consumer and other retail loans are charged off against the allowance for loan losses at the earlier of (1) when management becomes aware that a loss has occurred, or (2) when closed-end retail loans become past due 120 days or open-end retail loans become past due 180 days from the contractual due date. For open and closed-end retail loans secured by residential real estate, any outstanding loan balance in excess of the fair value of the property, less cost to sell, is charged off no later than when the loan is 180 days past due from the contractual due date. Consumer and other retail loans may not be charged off when management can clearly document that a past due loan is well secured and in the process of collection such that collection will occur regardless of delinquency status in accordance with regulatory guidelines applicable to these types of loans. Recoveries on loans represent collections received on amounts that were previously charged off against the allowance for loan losses. Recoveries are credited to the allowance for loan losses when received, to the extent of the amount previously charged off against the allowance for loan losses on the related loan. Any amounts collected in excess of this limit are first recognized as interest income, then as a reduction of collection costs, and then as other income. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales or purchases when control over the assets has been surrendered by the transferor. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the transferor, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the transferor does not maintain effective control over the transferred assets. |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the remaining term of the lease. Repairs and maintenance are charged to operations as incurred; renewals, betterments and interest during construction are capitalized. Gains or losses on sales of premises and equipment are recorded as other noninterest income or noninterest expense, respectively, at the date of sale. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of recognition and measurement of an impairment loss, when the independent and identifiable cash flow of a single asset may not be determinable, the long-lived asset may be grouped with other assets of like cash flows. Recoverability of an asset or group of assets to be held and used is measured by comparing the carrying amount with future undiscounted net cash flows expected to be generated by the asset or group of assets. If an asset is considered impaired, the impairment recognized is generally measured by the amount by which the carrying amount of the asset or group exceeds its fair value. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies (“BOLI”) are recorded at the cash surrender value of the insurance contracts, which represent the amount that may be realizable under the contracts, at the consolidated balance sheet dates. Changes to the cash surrender value are recorded as other noninterest income in the consolidated statements of operations. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the balance sheet method. Under this method, the resulting net deferred tax asset is determined based on the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. The effect of changes in tax laws or rates is recognized in results in the period that includes the legislation enactment date. A valuation allowance is established against the deferred tax asset to the extent that management believes that it is more likely than not that any tax benefit will not be realized. Income tax expense is recognized on the periodic change in deferred tax assets and liabilities at the current statutory rates. The results of operations of the Company and the majority of its wholly owned subsidiaries are included in the consolidated federal income tax return of the Company and its subsidiaries as members of the same consolidated tax group. Under the intercompany income tax allocation policy, the Company and the subsidiaries included in the consolidated federal tax group are allocated current and deferred taxes as if they were separate taxpayers. As a result, the subsidiaries included in the consolidated group pay their allocation of income taxes to the Company, or receive payments from the Company to the extent that tax benefits are realized. |
Goodwill | Goodwill Goodwill represents the excess of consideration paid over the fair value of the net assets of a savings bank acquired in 2006. Goodwill is not amortized but is reviewed for potential impairment at the reporting unit level on an annual basis in the fourth quarter, or on an interim basis if events or circumstances indicate a potential impairment. As part of its testing, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount (“Step 0”). If the results of the Step 0 indicate that more likely than not the reporting unit’s fair value is less than its carrying amount, the Company determines the fair value of the reporting unit relative to its carrying amount, including goodwill (“Step 1”). The Company may also elect to bypass the Step 0 and begin with Step 1. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. However, if the carrying amount of the reporting unit exceeds its fair value, an additional procedure must be performed (“Step 2”). In Step 2, the implied fair value of the reporting unit’s goodwill is compared to the carrying amount of goodwill allocated to that reporting unit. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value at the measurement date. At December 31, 2018 and 2017, goodwill was considered not impaired and, therefore, no impairment charges were recorded. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. |
Derivative Instruments | Derivative Instruments Derivative instruments are recognized on the consolidated balance sheet as other assets or other liabilities, at their respective fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship. For derivative instruments that have not been designated and qualified as hedging relationships, the change in their fair value is recognized in current period earnings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is initially recognized as a component of AOCI, and subsequently reclassified into earnings in the same period during which the hedged transactions affect earnings. The ineffective portion of the gain or loss, if any, is recognized immediately in earnings. The Company has designated certain derivatives as cash flow hedges. Management periodically evaluates the effectiveness of these hedges in offsetting the fluctuations in cash flows due to changes in benchmark interest rates. |
Fair Value Measurement | Fair Value Measurement Financial instruments are classified based on a three-level valuation hierarchy required by U.S. GAAP. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities may include debt and equity securities that are traded in an active exchange market, as well as certain U.S. securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets and liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange traded instruments which value is determined by using a pricing model with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. This category generally may include U.S. Government and U.S. Government Sponsored Enterprise mortgage backed debt securities and corporate debt securities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities may include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation of securities and derivative instruments is performed through a monthly pricing process using data provided by generally recognized providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data fro m various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. 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. • The captured spread and prepayment speed is 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Emerging Growth Company Section 107 of the JOBS Act provides that, as an “emerging growth company”, or EGC, the Company 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 EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company intends to take advantage of the benefits of this extended transition period, for as long as it is available and consistent with bank regulatory requirements. The Federal bank regulators have not yet recognized or permitted public companies that are EGCs to delay the adoption of accounting pronouncements until those standards would otherwise apply to private companies. The Federal bank regulators position, unless changed, may cause us to adopt accounting principles earlier than required by the SEC. 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 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 New Guidance on Leases In December 2018, the FASB issued amendments to new guidance issued in February 2016 for the recognition and measurement of all leases which has not yet been adopted by the Company. The amendments in this Update address certain lessor’s issues associated with: (i) sales taxes and other similar taxes collected from lessees, (ii) certain lessor costs and, (iii) recognition of variable payments for contracts with lease and nonlease components. The new guidance on leases issued in February 2016 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. These amendments, and the related pending new guidance, can be adopted using a modified retrospective transition at the beginning of the earliest comparative period presented, and provides for certain practical expedients. The amendments and related new guidance on leases 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 gathering a complete inventory of leases and migrating identified lease data onto a new system platform. Based on a preliminary evaluation, the Company expects to recognize an asset and a corresponding lease liability for an amount currently expected to be less than one percent of the Company’s total consolidated assets at adoption. New Guidance on Accounting for Credit Losses on Financial Instruments In November 2018, the FASB issued amendments to pending new guidance on accounting for current expected credit losses on financial instruments (“CECL”) to, among other things, align the implementation date for private companies’ annual financial statements with the implementation date for their interim financial statements. Prior to the issuance of these amendments, the guidance on accounting for CECL was effective for private companies for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. These amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal to those years, for private companies. In June 2016, the FASB issued the new guidance on CECL. The new guidance introduces an approach based on expected losses to estimate credit losses on various financial instruments, including loans. 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, 2021, and interim periods within fiscal to those years, 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 currently assessing the impact that these changes will have on its consolidated financial statements, when adopted. 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. 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 currently evaluating whether the application of this new guidance will have an impact to the Company’s consolidated financial statements. 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 BOLI. 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 currently assessing whether this new guidance will have a material impact on its consolidated statement of cash flows 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. As of December 31, 2018, the Company classifies $23.1 million as available for sale equity securities. The Company currently expects that its available for sale equity securities consisting of a mutual fund investment will be reclassified out of the available for sale classification and presented separately on the face of the consolidated balance sheet. At adoption, the Company currently expects the cumulative unrealized loss of these securities previously recognized in AOCL will be recorded as an adjustment to the opening balance of retained earnings. Any further changes to the fair value of equity securities, other than equity method investments, will be recorded in net income. At December 31, 2018, the cumulative unrealized gross loss on this available for sale equity investment was $1.2 million . The Company is currently assessing whether other elements of the new guidance 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 currently assessing whether the new guidance will have a material impact on its consolidated financial position or results of operations. |
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. • 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) | 12 Months Ended |
Dec. 31, 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: December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 840,760 $ 2,197 $ (22,178 ) $ 820,779 Corporate debt securities 357,602 139 (5,186 ) 352,555 U.S. government agency debt securities 221,682 187 (4,884 ) 216,985 Municipal bonds 162,438 390 (2,616 ) 160,212 Mutual funds 24,266 — (1,156 ) 23,110 Commercial paper 12,448 — (38 ) 12,410 $ 1,619,196 $ 2,913 $ (36,058 ) $ 1,586,051 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: December 31, 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 $ 90,980 $ (2,995 ) $ 608,486 $ (19,183 ) $ 699,466 $ (22,178 ) Corporate debt securities 243,667 (3,800 ) 75,762 (1,386 ) 319,429 (5,186 ) U.S. government agency debt securities 63,580 (939 ) 133,886 (3,945 ) 197,466 (4,884 ) Municipal bonds 1,449 (6 ) 94,331 (2,610 ) 95,780 (2,616 ) Mutual funds — — 22,865 (1,156 ) 22,865 (1,156 ) Commercial paper 12,410 (38 ) — — 12,410 (38 ) $ 412,086 $ (7,778 ) $ 935,330 $ (28,280 ) $ 1,347,416 $ (36,058 ) 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: December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 82,326 $ — $ (3,889 ) $ 78,437 U.S. Government agency debt securities 2,862 — (49 ) 2,813 $ 85,188 $ — $ (3,938 ) $ 81,250 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 December 31, 2018 are as follows: Available for Sale Held to Maturity (in thousands) Amortized Estimated Amortized Estimated Within 1 year $ 54,477 $ 54,306 $ — $ — After 1 year through 5 years 330,024 325,752 — — After 5 years through 10 years 166,152 163,039 — — After 10 years 1,044,277 1,019,844 85,188 81,250 No contractual maturities 24,266 23,110 — — $ 1,619,196 $ 1,586,051 $ 85,188 $ 81,250 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 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 $19.5 million and $31.9 million at December 31, 2018 and 2017 , respectively. December 31, 2018 (in thousands) Venezuela Others (1) Total Real estate loans Single-family residential (2) $ 128,971 $ 6,467 $ 135,438 Loans to financial institutions and acceptances — 49,000 49,000 Commercial loans — 73,636 73,636 Consumer loans and overdrafts (3) 28,191 13,494 41,685 $ 157,162 $ 142,597 $ 299,759 __________________ (1) Loans to borrowers in seventeen other countries which do not individually exceed 1% of total assets. (2) Corresponds to 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 for Venezuela residents card holders are suspended when the cardholders’ average deposits decline below the outstanding credit balance. At the beginning of 2018, the Company changed the monitoring of such balances from quarterly to monthly. 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 eighteen other countries which do not individually exceed 1% of total assets. (2) Corresponds to 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 outstanding credit balance. The loan portfolio consists of the following loan classes: (in thousands) December 31, December 31, Real estate loans Commercial real estate Nonowner occupied $ 1,809,356 $ 1,713,104 Multi-family residential 909,439 839,709 Land development and construction loans 326,644 406,940 3,045,439 2,959,753 Single-family residential 533,481 512,754 Owner-occupied 777,022 610,386 4,355,942 4,082,893 Commercial loans 1,380,428 1,354,755 Loans to financial institutions and acceptances 68,965 497,626 Consumer loans and overdrafts 114,840 130,951 $ 5,920,175 $ 6,066,225 |
Schedule of loan portfolio delinquencies | The age analysis of the loan portfolio by class, including nonaccrual loans, as of December 31, 2018 and 2017 are summarized in the following tables: December 31, 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 Nonowner occupied $ 1,809,356 $ 1,809,356 $ — $ — $ — $ — $ — $ — Multi-family residential 909,439 909,439 — — — — — — Land development and construction loans 326,644 326,644 — — — — — — 3,045,439 3,045,439 — — — — — — Single-family residential 533,481 519,730 7,910 2,336 3,505 13,751 6,689 419 Owner-occupied 777,022 773,876 2,800 160 186 3,146 4,983 — 4,355,942 4,339,045 10,710 2,496 3,691 16,897 11,672 419 Commercial loans 1,380,428 1,378,022 704 1,062 640 2,406 4,772 — Loans to financial institutions and acceptances 68,965 68,965 — — — — — — Consumer loans and overdrafts 114,840 113,227 474 243 896 1,613 35 884 $ 5,920,175 $ 5,899,259 $ 11,888 $ 3,801 $ 5,227 $ 20,916 $ 16,479 $ 1,303 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 Nonowner 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) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of allowance for loan losses | The analyses by loan segment of the changes in the allowance for loan losses for the years ended December 31, 2018 , 2017 and 2016 and its allocation by impairment methodology and the related investment in loans, net as of December 31, 2018 , 2017 and 2016 are summarized in the following tables: December 31, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 (Reversal of) provision for loan losses (2,885 ) 1,099 (3,917 ) 6,078 375 Loans charged-off Domestic (5,839 ) (3,662 ) — (194 ) (9,695 ) International — (1,473 ) — (1,392 ) (2,865 ) Recoveries 212 1,367 — 368 1,947 Balances at end of the year $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 1,282 $ — $ 1,091 $ 2,373 Collectively evaluated 22,778 28,736 445 7,430 59,389 $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Investment in loans, net of unearned income Individually evaluated $ 717 $ 9,652 $ — $ 3,089 $ 13,458 Collectively evaluated 3,037,604 2,254,607 69,003 545,503 5,906,717 $ 3,038,321 $ 2,264,259 $ 69,003 $ 548,592 $ 5,920,175 December 31, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Reversal of provision for loan losses (221 ) (1,027 ) (942 ) (1,300 ) (3,490 ) Loans charged-off Domestic (97 ) (1,979 ) — (424 ) (2,500 ) International — (6,166 ) — (757 ) (6,923 ) Recoveries 895 962 — 1,305 3,162 Balances at end of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 2,866 $ — $ — $ 2,866 Collectively evaluated 31,290 29,821 4,362 3,661 69,134 $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Investment in loans, net of unearned income Individually evaluated $ 1,318 $ 20,907 $ — $ 374 $ 22,599 Collectively evaluated 2,912,786 2,073,351 497,626 559,863 6,043,626 $ 2,914,104 $ 2,094,258 $ 497,626 $ 560,237 $ 6,066,225 December 31, 2016 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 18,331 $ 44,734 $ 9,226 $ 4,752 $ 77,043 Provision for (reversal of) loan losses 8,570 16,153 (3,922 ) 1,309 22,110 Loans charged-off Domestic (94 ) (1,496 ) — (224 ) (1,814 ) International — (19,610 ) — (1,186 ) (20,796 ) Recoveries 3,906 1,116 — 186 5,208 Balances at end of the year $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 6,596 $ — $ — $ 6,596 Collectively evaluated 30,713 34,301 5,304 4,837 75,155 $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Investment in loans, net of unearned income Individually evaluated $ 13,792 $ 51,332 $ — $ 4,205 $ 69,329 Collectively evaluated 2,364,161 2,398,552 416,336 516,383 5,695,432 $ 2,377,953 $ 2,449,884 $ 416,336 $ 520,588 $ 5,764,761 The following is a summary of the recorded investment amount of loan sales by portfolio segment in the years ended December 2018, 2017 and 2016: (in thousands) Real Estate Commercial Financial Consumer Total 2018 $ 20,248 $ 138,244 $ — $ 14,981 $ 173,473 2017 $ 15,040 $ 35,260 $ 40,177 $ — $ 90,477 2016 $ 9,151 $ 72,597 $ 23,500 $ — $ 105,248 |
Schedule of impaired loans | The following is a summary of impaired loans as of December 31, 2018 and 2017 : December 31, 2018 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ — $ — $ — $ 7,935 $ — $ — — Multi-family residential — 717 717 724 722 — 32 Land development and construction — — — — — — — — 717 717 8,659 722 — 32 Single-family residential 3,086 306 3,392 4,046 3,427 1,235 108 Owner-occupied 169 4,427 4,596 5,524 4,601 75 14 3,255 5,450 8,705 18,229 8,750 1,310 154 Commercial loans 4,585 148 4,733 7,464 6,009 1,059 952 Consumer loans and overdrafts 9 11 20 15 17 4 — $ 7,849 $ 5,609 $ 13,458 $ 25,708 $ 14,776 $ 2,373 $ 1,106 December 31, 2017 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ — $ 327 $ 327 $ 225 $ 327 $ — $ — Multi-family residential — 1,318 1,318 7,898 1,330 — 54 Land development and construction loans — — — 1,359 — — — — 1,645 1,645 9,482 1,657 — 54 Single-family residential — 877 877 3,100 871 — 1,101 Owner-occupied — 10,918 10,918 13,440 12,323 — 11 — 13,440 13,440 26,022 14,851 — 1,166 Commercial loans 7,173 1,986 9,159 18,211 14,784 2,866 12 Consumer loans and overdrafts — — — — — — — $ 7,173 $ 15,426 $ 22,599 $ 44,233 $ 29,635 $ 2,866 $ 1,178 |
Schedule of Troubled Debt Restructurings | The following table shows information about loans that were modified and met the definition of TDR during 2018, 2017 and 2016: 2018 2017 2016 (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Commercial real estate Nonowner occupied (1) 1 $ — — $ — 1 $ 208 Single-family residential — — 2 — 1 49 Owner-occupied 1 1,831 1 — 3 846 2 1,831 3 — 5 1,103 Commercial loans 2 622 1 1,473 2 11,172 Consumer loans and overdrafts 1 10 — — — — Total (2) (3) 5 $ 2,463 4 $ 1,473 7 $ 12,275 _________________ (1) In the fourth quarter of 2018, the Company sold one non-performing loan in the Houston area with a carrying value of $10.2 million , and charged off $5.8 million against the allowance for loan losses. This loan had been modified and met the definition of a TDR during the second quarter of 2018. (2) During 2018 and 2017, the Company charged off a total of approximately $6.9 million and $6.0 million , respectively, against the allowance for loan losses as a result of these TDR loans. (3) At December 31, 2018, 2017 and 2016, all TDR loans were primarily real estate and commercial loans under modified terms, including interest payment deferments and others, 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. During 2018, 2017 and 2016, TDR loans that subsequently defaulted within the 12 months of restructuring were as follows: 2018 2017 2016 (in thousands) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Single-family residential — $ — — $ — 6 $ 3,010 Owner-occupied 1 1,831 1 618 4 2,959 1 1,831 1 618 10 5,969 Commercial loans 1 589 — — — — Consumer loans and overdrafts 1 10 — — — — 3 $ 2,430 1 $ 618 10 $ 5,969 |
Schedule of credit quality indicators | The Company’s loans by credit quality indicators as of December 31, 2018 and 2017 are summarized in the following tables: December 31, 2018 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,802,573 $ 6,561 $ 222 $ — $ — $ 1,809,356 Multi-family residential 909,439 — — — — 909,439 Land development and construction loans 326,644 — — — — 326,644 3,038,656 6,561 222 — — 3,045,439 Single-family residential 526,373 — 7,108 — — 533,481 Owner-occupied 758,552 9,019 9,451 — — 777,022 4,323,581 15,580 16,781 — — 4,355,942 Commercial loans 1,369,434 3,943 6,462 589 — 1,380,428 Loans to financial institutions and acceptances 68,965 — — — — 68,965 Consumer loans and overdrafts 108,778 — 6,062 — — 114,840 $ 5,870,758 $ 19,523 $ 29,305 $ 589 $ — $ 5,920,175 December 31, 2017 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,711,595 $ 1,020 $ 489 $ — $ — $ 1,713,104 Multi-family residential 839,709 — — — — 839,709 Land development and construction loans 406,940 — — — — 406,940 2,958,244 1,020 489 — — 2,959,753 Single-family residential 506,885 — 5,869 — — 512,754 Owner-occupied 592,468 4,051 13,867 — — 610,386 4,057,597 5,071 20,225 — — 4,082,893 Commercial loans 1,334,543 6,100 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 $ 6,016,604 $ 11,171 $ 38,450 $ — $ — $ 6,066,225 The following is a summary of the master risk categories and their associated loan risk ratings, as well as a description of the general characteristics of the master risk category: Loan Risk Rating Master risk category Nonclassified 4 to 10 Classified 1 to 3 Substandard 3 Doubtful 2 Loss 1 |
Schedule of financing receivables, non accrual status | Single-family residential loans: December 31, (in thousands, except percentages) 2018 2017 2016 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 518,106 97.12 % $ 499,307 97.38 % $ 455,410 96.80 % 30-59 Days Past Due 7,634 1.43 % 6,025 1.17 % 4,675 0.99 % 60-89 Days Past Due 633 0.12 % 2,193 0.43 % 1,395 0.30 % 90+ Days Past Due 419 0.08 % 225 0.04 % 116 0.02 % 8,686 1.63 % 8,443 1.64 % 6,186 1.31 % Total Accrual Loans $ 526,792 98.75 % $ 507,750 99.02 % $ 461,596 98.11 % Non-Accrual Loans Current $ 1,624 0.30 % $ 2,086 0.41 % $ 2,290 0.49 % 30-59 Days Past Due 276 0.05 % 584 0.11 % — — % 60-89 Days Past Due 1,703 0.32 % 557 0.11 % 38 0.01 % 90+ Days Past Due 3,086 0.58 % 1,777 0.35 % 6,565 1.39 % 5,065 0.95 % 2,918 0.57 % 6,603 1.40 % Total Non-Accrual Loans 6,689 1.25 % 5,004 0.98 % 8,893 1.89 % $ 533,481 100.00 % $ 512,754 100.00 % $ 470,489 100.00 % Consumer loans and overdrafts: December 31, (in thousands, except percentages) 2018 2017 2016 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 113,211 98.58 % $ 130,830 99.91 % $ 120,463 98.40 % 30-59 Days Past Due 466 0.41 % 48 0.04 % 1,076 0.88 % 60-89 Days Past Due 243 0.21 % 18 0.01 % 443 0.36 % 90+ Days Past Due 885 0.77 % — — % 370 0.30 % 1,594 1.39 % 66 0.05 % 1,889 1.54 % Total Accrual Loans $ 114,805 99.97 % $ 130,896 99.96 % $ 122,352 99.94 % Non-Accrual Loans Current $ 16 0.01 % $ 16 0.01 % $ 43 0.03 % 30-59 Days Past Due 8 0.01 % 9 0.01 % 22 0.02 % 60-89 Days Past Due — — % 11 0.01 % — — % 90+ Days Past Due 11 0.01 % 19 0.01 % 9 0.01 % 19 0.02 % 39 0.03 % 31 0.03 % Total Non-Accrual Loans 35 0.03 % 55 0.04 % 74 0.06 % $ 114,840 100.00 % $ 130,951 100.00 % $ 122,426 100.00 % |
Premises and Equipment, Net Pre
Premises and Equipment, Net Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment, net include the following: December 31, Estimated (in thousands) 2018 2017 (in years) Land $ 18,307 $ 18,307 NA Buildings and improvements 100,152 93,848 10–30 Equipment leased under an operating lease — 19,626 15 Furniture and equipment 21,579 19,832 3–10 Computer equipment and software 31,225 29,749 3 Leasehold improvements 19,301 18,260 5–10 Work in progress 5,170 6,532 NA $ 195,734 $ 206,154 Less: Accumulated depreciation and amortization (72,231 ) (76,797 ) $ 123,503 $ 129,357 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Time Deposit Maturities | At December 31, 2018 and 2017 time deposits maturities were as follows: (in thousands, except percentages) 2018 2017 Year of Maturity Amount % Amount % 2018 $ — — % $ 1,357,668 60.44 % 2019 1,438,565 60.26 % 331,515 14.76 % 2020 361,255 15.13 % 194,175 8.64 % 2021 168,850 7.07 % 103,781 4.62 % 2022 135,265 5.67 % 106,550 4.74 % 2023 and thereafter 283,196 11.87 % 152,745 6.80 % Total $ 2,387,131 100.00 % $ 2,246,434 100.00 % |
Advances From the Federal Hom_2
Advances From the Federal Home Loan Bank and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of outstanding advances from the FHLB | At December 31, 2018 and 2017, the Company had outstanding advances from the FHLB and other borrowings as follows: Year of Maturity Interest December 31, 2018 December 31, 2017 (in thousands, except percentages) 2018 0.90% to 2.03% $ — $ 567,000 2019 1.00% to 3.86% 440,000 155,000 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 3.23% 210,000 — $ 1,166,000 $ 1,173,000 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | At December 31, 2018 and 2017 the fair value of the Company’s derivative instruments was as follows: December 31, 2018 December 31, 2017 (in thousands) Other Assets Other Liabilities Other Assets Other Liabilities Interest rate swaps designated as cash flow hedges $ 9,386 $ 283 $ 5,462 $ — Interest rate swaps not designated as hedging instruments: Customers 1,420 — 1,375 — Third party broker — 1,420 — 1,375 1,420 1,420 1,375 1,375 Interest rate caps not designated as hedging instruments: Customers — 685 — 195 Third party broker 685 — 195 — 685 685 195 195 $ 11,491 $ 2,388 $ 7,032 $ 1,570 |
Junior Subordinated Debenture_2
Junior Subordinated Debentures Held by Trust Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of the Outstanding Trust Preferred Securities | The following table provides information of the outstanding Trust Preferred Securities issued by, and the junior subordinated debentures issued to, each of the Trust Subsidiaries as of December 31, 2018 and 2017: (in thousands) Amount of Principal Year of Annual Rate of Trust Year of Commercebank Capital Trust I $ 26,830 $ 28,068 1998 8.90% 2028 Commercebank Statutory Trust II 15,000 15,464 2000 10.60% 2030 Commercebank Capital Trust III 10,000 10,400 2001 10.18% 2031 Commercebank Capital Trust VI 9,250 9,537 2002 3-M LIBOR + 3.35% 2033 Commercebank Capital Trust VII 8,000 8,248 2003 3-M LIBOR + 3.25% 2033 Commercebank Capital Trust VIII 5,000 5,155 2004 3-M LIBOR + 2.85% 2034 Commercebank Capital Trust IX 25,000 25,774 2006 3-M LIBOR + 1.75% 2038 Commercebank Capital Trust X 15,000 15,464 2006 3-M LIBOR + 1.78% 2036 $ 114,080 $ 118,110 |
Income Taxes Income Tax (Tables
Income Taxes Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows: (in thousands) 2018 2017 2016 Current provision Federal $ 7,298 $ 19,194 $ 10,981 State 1,964 1,763 844 Impact of lower rate under the 2017 Tax Act - Remeasurement of net deferred tax assets, other than balances corresponding to items in AOCI — 8,470 — Remeasurement of net deferred tax assets corresponding to items in AOCI — 1,094 — Deferred tax expense (benefit) 2,471 3,471 (1,614 ) $ 11,733 $ 33,992 $ 10,211 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the income tax expense at the statutory federal income tax rate to the Company’s effective income tax rate for the years ended December 31, 2018, 2017, and 2016 follows: 2018 2017 2016 (in thousands) Amount % Amount % Amount % Tax expense calculated at the statutory federal income tax rate $ 12,089 21.00 % $ 26,967 35.00 % $ 11,827 35.00 % Increases (decreases) resulting from: Impact of the 2017 Tax Act - Remeasurement of net deferred tax assets — — % 9,564 12.41 % — — % Non-taxable interest income (1,507 ) (2.62 )% (1,643 ) (2.13 )% (1,132 ) (3.35 )% Non-taxable BOLI income (1,223 ) (2.12 )% (1,910 ) (2.48 )% (1,547 ) (4.58 )% Non-deductible Spin-off costs 1,711 2.97 % — — % — — % Disallowed interest expense allocable to tax exempt securities and other expenses 627 1.09 % 577 0.75 % 464 1.37 % State and city income taxes, net of federal income tax benefit (131 ) (0.23 )% 1,146 1.49 % 549 1.62 % Other, net 167 0.29 % (709 ) (0.92 )% 50 0.16 % $ 11,733 20.38 % $ 33,992 44.12 % $ 10,211 30.22 % |
Schedule of Deferred Tax Assets | The composition of the net deferred tax asset is as follows: December 31, (in thousands) 2018 2017 Tax effect of temporary differences Provision for loan losses $ 13,581 $ 13,372 Net unrealized losses in other comprehensive income 5,878 1,680 Deferred compensation expense 3,489 3,460 Dividend income 605 946 Interest income on nonaccrual loans 341 599 Goodwill amortization (3,979 ) (3,223 ) Depreciation and amortization (3,934 ) (3,601 ) Other 329 1,350 Net deferred tax assets $ 16,310 $ 14,583 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (“AOCL”) (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 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 $ (33,145 ) $ 8,104 $ (25,041 ) $ (13,414 ) $ 2,883 $ (10,531 ) Unrealized gains on interest rate swaps designated as cash flow hedges 9,103 (2,226 ) $ 6,877 5,602 (1,204 ) 4,398 Total AOCL $ (24,042 ) $ 5,878 $ (18,164 ) $ (7,812 ) $ 1,679 $ (6,133 ) |
Components of Other Comprehensive Loss | The components of other comprehensive income (loss) for the three-year period ended December 31, 2018 is summarized as follows: December 31, 2018 (in thousands) Before Tax Tax Net of Tax Unrealized losses on available for sale securities: Change in fair value arising during the period $ (20,730 ) $ 5,465 $ (15,265 ) Reclassification adjustment for net losses included in net income 999 (244 ) 755 (19,731 ) 5,221 (14,510 ) Unrealized gains on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 3,744 (1,081 ) 2,663 Reclassification adjustment for net interest income included in net income (243 ) 59 (184 ) 3,501 (1,022 ) 2,479 Total other comprehensive loss $ (16,230 ) $ 4,199 $ (12,031 ) December 31, 2017 (in thousands) Before Tax Tax Net of Tax Unrealized gains on available for sale securities arising during the period $ 6,875 $ (3,298 ) $ 3,577 Reclassification adjustment for net losses on sale of securities included in net income 1,601 (768 ) 833 Unrealized gains on interest rate swaps designated as cash flow hedges 293 (141 ) 152 Total other comprehensive income $ 8,769 $ (4,207 ) $ 4,562 December 31, 2016 (in thousands) Before Tax Tax Net of Tax Unrealized losses on available for sale securities arising during the period $ (5,952 ) $ 2,113 $ (3,839 ) Reclassification adjustment for net gains on sale of securities included in net income (1,556 ) 552 (1,004 ) Unrealized gains on interest rate swaps designated as cash flow hedges 5,578 (1,980 ) 3,598 Total other comprehensive loss $ (1,930 ) $ 685 $ (1,245 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Amounts Included in the Consolidated Balance Sheets and the Consolidated Statements of Operations | In addition to loans to related parties and associated interest income, which are described below, included in the consolidated balance sheets and the consolidated statements of operations are amounts with related parties as follows: December 31, (in thousands) 2018 2017 Liabilities Demand deposits, noninterest bearing $ 9,447 $ 24,879 Demand deposits, interest bearing 3,721 21,071 Money market 308 449 Time deposits and accounts payable 1,350 7,636 Total due to related parties $ 14,826 $ 54,035 Years Ended December 31, (in thousands) 2018 2017 2016 Income Data processing and other services $ 2,168 $ 1,532 $ 2,328 Rental income from operating lease 248 1,971 1,976 Service charges 95 90 83 $ 2,511 $ 3,593 $ 4,387 Expenses Interest expense $ 126 $ 85 $ 73 Loss on sale of securities — — 796 Fees and other expenses 623 302 504 749 387 1,373 $ 1,762 $ 3,206 $ 3,014 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | On February 6, 2018, the Company filed amended and restated articles of incorporation with the Secretary of State of Florida. Pursuant to the amended and restated articles, the total number of authorized Company shares of all classes is 550,000,000 , consisting of the following classes: Class Number of Par Value Common Stock: Class A 400,000,000 $ 0.10 Class B 100,000,000 0.10 500,000,000 Preferred Stock 50,000,000 0.10 550,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum annual lease payments under such leases are as follows: Years Approximate (in thousands) 2019 $ 6,281 2020 6,223 2021 5,930 2022 5,386 2023 5,069 Thereafter 43,071 $ 71,960 |
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 December 31, 2018 are generally short-term and are as follows: (in thousands) Approximate Commitments to extend credit $ 923,424 Credit card facilities 198,500 Standby letters of credit 19,562 Commercial letters of credit 7,670 $ 1,149,156 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 820,779 $ — $ 820,779 Corporate debt securities — 352,555 — 352,555 U.S. government agency debt securities — 216,985 — 216,985 Municipal bonds — 160,212 — 160,212 Mutual funds — 23,110 — 23,110 Commercial paper — 12,410 — 12,410 — 1,586,051 — 1,586,051 Bank owned life insurance — 206,141 — 206,141 Derivative instruments — 11,491 — 11,491 $ — $ 1,803,683 $ — $ 1,803,683 Liabilities Derivative instruments $ — $ 2,388 $ — $ 2,388 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 $ — $ — $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
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: December 31, 2018 December 31, 2017 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,850,015 $ 2,739,721 $ 2,682,790 $ 2,566,197 Financial liabilities Time deposits 1,745,025 1,740,752 1,466,464 1,461,908 Advances from the Federal Home Loan Bank 1,166,000 1,167,213 1,161,000 1,164,686 Junior subordinated debentures 118,110 99,450 118,110 95,979 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summary of the Bank's and the Company's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums to be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total capital ratio $ 883,746 13.05 % $ 541,564 8.00 % $ 676,955 10.00 % Tier 1 capital ratio 826,114 12.20 % 406,173 6.00 % 541,564 8.00 % Tier 1 leverage ratio 826,114 9.96 % 331,829 4.00 % 414,786 5.00 % Common equity tier 1 (CET1) 826,114 12.20 % 304,630 4.50 % 440,021 6.50 % December 31, 2017 Total capital ratio $ 885,855 12.69 % $ 556,446 8.00 % $ 695,557 10.00 % Tier 1 capital ratio 812,631 11.68 % 417,334 6.00 % 556,446 8.00 % Tier 1 leverage ratio 812,631 9.69 % 335,600 4.00 % 419,500 5.00 % Common equity tier 1 (CET1) 812,631 11.68 % 313,001 4.50 % 452,112 6.50 % The Company’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums To be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Total capital ratio $ 916,663 13.54 % $ 541,638 8.00 % $ 677,047 10.00 % Tier 1 capital ratio 859,031 12.69 % 406,228 6.00 % 541,638 8.00 % Tier 1 leverage ratio 859,031 10.34 % 332,190 4.00 % 415,238 5.00 % Common equity tier 1 (CET1) 749,465 11.07 % 304,671 4.50 % 440,080 6.50 % December 31, 2017 Total capital ratio $ 926,049 13.31 % $ 556,578 8.00 % $ 695,722 10.00 % Tier 1 capital ratio 852,825 12.21 % 417,433 6.00 % 556,578 8.00 % Tier 1 leverage ratio 852,825 10.15 % 335,647 4.00 % 419,559 5.00 % Common equity tier 1 (CET1) 753,545 10.68 % 313,075 4.50 % 452,220 6.50 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table shows the calculation of basic and diluted earnings per share: (in thousands, except per share data) 2018 2017 2016 Numerator: Net income available to common stockholders $ 45,833 $ 43,057 $ 23,579 Denominator: Basic weighted averages shares outstanding 42,487 42,489 42,489 Dilutive effect of shared-based compensation awards — — — Diluted weighted average shares outstanding 42,487 42,489 42,489 Basic earnings per common share $ 1.08 $ 1.01 $ 0.55 Diluted earnings per common share $ 1.08 $ 1.01 $ 0.55 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 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 and for the years ended December 31, 2018 , 2017 and 2016 on a managed basis. The Company’s definition of managed basis starts with the reported U.S. GAAP results and includes funds transfer pricing, or 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) PAC Corporate LATAM Treasury Institutional Total For the year Ended December 31, 2018 Income Statement: Net interest income $ 196,008 $ 5,308 $ 4,527 $ 13,196 $ 219,039 Provision for (reversal of) loan losses 1,303 (3,783 ) (212 ) 3,067 375 Net interest income after provision for (reversal of) loan losses 194,705 9,091 4,739 10,129 218,664 Noninterest income 22,556 365 8,400 22,554 53,875 Noninterest expense 160,491 4,035 11,438 39,009 214,973 Net income (loss) before income tax: Banking 56,770 5,421 1,701 (6,326 ) 57,566 Non-banking contribution (1) 2,552 13 — (2,565 ) — 59,322 5,434 1,701 (8,891 ) 57,566 Income tax (expense) benefit (12,243 ) (1,122 ) 1,546 86 (11,733 ) Net income (loss) $ 47,079 $ 4,312 $ 3,247 $ (8,805 ) $ 45,833 As of December 31, 2018 Loans, net (2) $ 5,845,266 $ 69,755 $ — $ (56,608 ) $ 5,858,413 Deposits $ 5,339,099 $ 16,293 $ 642,106 $ 35,188 $ 6,032,686 (in thousands) PAC Corporate LATAM Treasury Institutional Total For the Year Ended December 31, 2017 Income Statement: Net interest income $ 182,872 $ 9,514 $ 6,649 $ 10,675 $ 209,710 Provision for (reversal of) loan losses 42 (3,879 ) (1,547 ) 1,894 (3,490 ) Net interest income after provision for (reversal of) loan losses 182,830 13,393 8,196 8,781 213,200 Noninterest income 26,468 509 8,920 35,588 71,485 Noninterest expense 161,002 4,894 11,256 30,484 207,636 Net income before income tax: Banking 48,296 9,008 5,860 13,885 77,049 Non-banking contribution (1) 4,788 55 — (4,843 ) — 53,084 9,063 5,860 9,042 77,049 Income tax (expense) benefit (18,784 ) (3,207 ) 1,106 (13,107 ) (33,992 ) Net income (loss) $ 34,300 $ 5,856 $ 6,966 $ (4,065 ) $ 43,057 (in thousands) 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 (In thousands) PAC Corporate LATAM Treasury Institutional Total For the Year ended December 31, 2016 Income Statement: Net interest income $ 157,325 $ 15,302 $ 12,586 $ 6,720 $ 191,933 Provision for (reversal of) loan losses 5,795 13,620 (1,069 ) 3,764 22,110 Net interest income after provision for (reversal of) loan losses 151,530 1,682 13,655 2,956 169,823 Noninterest income 26,461 843 7,808 27,158 62,270 Noninterest expense 156,146 8,295 9,041 24,821 198,303 Net income before income tax: Banking 21,845 (5,770 ) 12,422 5,293 33,790 Non-banking contribution (1) 5,136 (124 ) — (5,012 ) — 26,981 (5,894 ) 12,422 281 33,790 Income tax (expense) benefit (10,068 ) 2,200 (1,473 ) (870 ) (10,211 ) Net income (loss) $ 16,913 $ (3,694 ) $ 10,949 $ (589 ) $ 23,579 __________________ (1) Non-banking contribution reflects allocations of the net results of Amerant Trust and Amerant Investments 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. |
Condensed Unconsolidated Hold_2
Condensed Unconsolidated Holding Companies’ Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets: December 31, (in thousands) 2018 2017 Assets Cash and due from banks $ 32,922 $ 39,089 Investments in subsidiaries 822,940 821,982 Other assets 9,640 9,775 $ 865,502 $ 870,846 Liabilities and Stockholder’s Equity Junior subordinated debentures held by trust subsidiaries $ 118,110 $ 118,110 Other liabilities 1,048 979 Stockholder’s equity 746,344 751,757 $ 865,502 $ 870,846 Condensed Balance Sheets: December 31, (in thousands) 2018 2017 Assets Cash and due from banks $ 1,891 $ 1,420 Investments in subsidiaries 746,344 752,409 Other assets 1,720 1,798 $ 749,955 $ 755,627 Liabilities and Stockholders' Equity Other liabilities $ 2,537 $ 2,177 Stockholders' equity 747,418 753,450 $ 749,955 $ 755,627 |
Condensed Statements of Income | Condensed Statements of Income: Years ended December 31 (in thousands) 2018 2017 2016 Income: Interest $ 182 $ 85 $ 33 Equity in earnings of subsidiary 60,609 50,982 31,282 Total income 60,791 51,067 31,315 Expenses: Interest Expense 8,086 7,456 7,129 Provision fr loan losses — — 1,838 Other expenses 414 1,310 1,361 Total expense 8,500 8,766 10,328 Net income before income tax benefit 52,291 42,301 20,987 Income tax benefit 1,661 2,726 3,031 Net income $ 53,952 $ 45,027 $ 24,018 Condensed Statements of Income: Years ended December 31 (in thousands) 2018 2017 2016 Income: Interest $ 9 $ 3 $ 2 Equity in earnings of subsidiary 53,939 45,008 23,996 Total income 53,948 45,011 23,998 Expenses: Employee compensation and benefit — 350 350 Other expenses 8,018 2,539 250 Total expense 8,018 2,889 600 Net income before income tax benefit 45,930 42,122 23,398 Income tax (expense) benefit (97 ) 935 181 Net income $ 45,833 $ 43,057 $ 23,579 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 45,833 $ 43,057 $ 23,579 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (53,939 ) (45,008 ) (23,996 ) Net change in other assets and liabilities 438 1,337 (2 ) Net cash used in operating activities (7,668 ) (614 ) (419 ) Cash flows from investing activities Cash received upon Voting Trust termination 639 — — Dividends from subsidiary 47,500 700 400 Net cash provided by investment activities 48,139 700 400 Cash flows from financing activities Dividends paid (40,000 ) — — Common stock issued - Class A 17,908 — — Repurchase of common stock - Class B (17,908 ) — — Net cash used in financing activities (40,000 ) — — Net increase (decrease) in cash and cash equivalents 471 86 (19 ) Cash and cash equivalents Beginning of year 1,420 1,334 1,353 End of year $ 1,891 $ 1,420 $ 1,334 Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 53,952 $ 45,027 $ 24,018 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (60,609 ) (50,982 ) (31,282 ) Net change in other assets and liabilities 490 (4 ) (35 ) Net cash used in operating activities (6,167 ) (5,959 ) (7,299 ) Cash flows from investing activities Dividends received from subsidiary 47,500 6,000 6,000 Dividends paid (47,500 ) (700 ) (400 ) Net cash provided by investing activities — 5,300 5,600 Net decrease in cash and cash equivalents (6,167 ) (659 ) (1,699 ) Cash and cash equivalents Beginning of year 39,089 39,748 41,447 End of year $ 32,922 $ 39,089 $ 39,748 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)banking_centersubsidiaryoffice | Dec. 31, 2017USD ($) | Jul. 24, 2018 | Apr. 02, 2018 | Mar. 15, 2018 | |
Class of Stock [Line Items] | |||||
Number of subsidiaries | subsidiary | 2 | ||||
Number of banking centers | banking_center | 23 | ||||
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% | ||||
Cash reserve balances | $ 200,000 | $ 1,200,000 | |||
Securities receivable | 3,500,000 | 6,500,000 | |||
Unamortized net deferred loan fees and origination costs | 7,100,000 | 7,400,000 | |||
Goodwill impairment charge | 0 | 0 | |||
Reclassification of tax law impact on AOCI | 0 | ||||
Available for sale | 1,586,051,000 | 1,687,157,000 | |||
Gross unrealized losses | 36,058,000 | 21,859,000 | |||
Mutual funds | |||||
Class of Stock [Line Items] | |||||
Available for sale | 23,110,000 | 23,617,000 | |||
Gross unrealized losses | $ 1,156,000 | 645,000 | |||
Accumulated Other Comprehensive Loss | |||||
Class of Stock [Line Items] | |||||
Reclassification of tax law impact on AOCI | $ 1,094,000 | ||||
Mercantil Servicios Financieros, C.A. (MSF) | Maximum | |||||
Class of Stock [Line Items] | |||||
Percent of shares outstanding owned | 5.00% | ||||
Florida | |||||
Class of Stock [Line Items] | |||||
Number of banking centers | banking_center | 15 | ||||
Texas | |||||
Class of Stock [Line Items] | |||||
Number of banking centers | banking_center | 8 | ||||
Number of loan production offices | office | 1,000 | ||||
New York | |||||
Class of Stock [Line Items] | |||||
Number of loan production offices | office | 1,000 | ||||
Amerant Bank, N.A | |||||
Class of Stock [Line Items] | |||||
Ownership percentage of subsidiary | 100.00% | ||||
Mercantil Florida Bancorp, Inc | |||||
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% |
Interest Earning Deposits wit_2
Interest Earning Deposits with Banks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | ||
Interest earning deposits with banks | $ 59,954 | $ 108,914 |
Average interest rate on deposits with banks | 1.88% | 1.10% |
Interest earning deposits with banks, maturity | 1 year |
Securities - Amortized Cost to
Securities - Amortized Cost to Fair Value of Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,619,196 | $ 1,700,571 |
Gross Unrealized Gains | 2,913 | 8,445 |
Gross Unrealized Losses | (36,058) | (21,859) |
Estimated Fair Value | 1,586,051 | 1,687,157 |
U.S. government sponsored enterprise debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 840,760 | 889,396 |
Gross Unrealized Gains | 2,197 | 1,784 |
Gross Unrealized Losses | (22,178) | (15,514) |
Estimated Fair Value | 820,779 | 875,666 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 357,602 | 310,781 |
Gross Unrealized Gains | 139 | 3,446 |
Gross Unrealized Losses | (5,186) | (835) |
Estimated Fair Value | 352,555 | 313,392 |
U.S. government agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 221,682 | 293,908 |
Gross Unrealized Gains | 187 | 870 |
Gross Unrealized Losses | (4,884) | (3,393) |
Estimated Fair Value | 216,985 | 291,385 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 162,438 | 179,524 |
Gross Unrealized Gains | 390 | 2,343 |
Gross Unrealized Losses | (2,616) | (1,471) |
Estimated Fair Value | 160,212 | 180,396 |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,266 | 24,262 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,156) | (645) |
Estimated Fair Value | 23,110 | 23,617 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,448 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (38) | |
Estimated Fair Value | $ 12,410 | |
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 ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale | $ 1,586,051,000 | $ 1,687,157,000 |
Proceeds from sales and calls of securities available-for-sale | 67,000,000 | 393,000,000 |
Gross realized gain | 500,000 | 2,600,000 |
Gross realized loss | 1,400,000 | 4,200,000 |
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 | $ 50,000,000 | $ 246,000,000 |
Securities - Unrealized Loss on
Securities - Unrealized Loss on Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | $ 412,086 | $ 524,751 |
12 Months or More, Estimated Fair Value | 935,330 | 719,142 |
Total, Estimated Fair Value | 1,347,416 | 1,243,893 |
Less Than 12 Months, Unrealized Loss | (7,778) | (4,443) |
12 Months or More, Unrealized Loss | (28,280) | (17,416) |
Total, Unrealized Loss | (36,058) | (21,859) |
U.S. government sponsored enterprise debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 90,980 | 333,232 |
12 Months or More, Estimated Fair Value | 608,486 | 485,555 |
Total, Estimated Fair Value | 699,466 | 818,787 |
Less Than 12 Months, Unrealized Loss | (2,995) | (2,956) |
12 Months or More, Unrealized Loss | (19,183) | (12,558) |
Total, Unrealized Loss | (22,178) | (15,514) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 243,667 | 94,486 |
12 Months or More, Estimated Fair Value | 75,762 | 3,694 |
Total, Estimated Fair Value | 319,429 | 98,180 |
Less Than 12 Months, Unrealized Loss | (3,800) | (751) |
12 Months or More, Unrealized Loss | (1,386) | (84) |
Total, Unrealized Loss | (5,186) | (835) |
U.S. government agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 63,580 | 92,138 |
12 Months or More, Estimated Fair Value | 133,886 | 128,316 |
Total, Estimated Fair Value | 197,466 | 220,454 |
Less Than 12 Months, Unrealized Loss | (939) | (728) |
12 Months or More, Unrealized Loss | (3,945) | (2,665) |
Total, Unrealized Loss | (4,884) | (3,393) |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 1,449 | 4,895 |
12 Months or More, Estimated Fair Value | 94,331 | 76,003 |
Total, Estimated Fair Value | 95,780 | 80,898 |
Less Than 12 Months, Unrealized Loss | (6) | (8) |
12 Months or More, Unrealized Loss | (2,610) | (1,463) |
Total, Unrealized Loss | (2,616) | (1,471) |
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 | 22,865 | 23,375 |
Total, Estimated Fair Value | 22,865 | 23,375 |
Less Than 12 Months, Unrealized Loss | 0 | 0 |
12 Months or More, Unrealized Loss | (1,156) | (645) |
Total, Unrealized Loss | (1,156) | (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) | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 12,410 | |
12 Months or More, Estimated Fair Value | 0 | |
Total, Estimated Fair Value | 12,410 | |
Less Than 12 Months, Unrealized Loss | (38) | |
12 Months or More, Unrealized Loss | 0 | |
Total, Unrealized Loss | $ (38) |
Securities - Held to Maturity S
Securities - Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 85,188 | $ 89,860 |
Gross Unrealized Gains | 0 | 47 |
Gross Unrealized Losses | (3,938) | (441) |
Estimated Fair Value | 81,250 | 89,466 |
U.S. government sponsored enterprise debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 82,326 | 86,826 |
Gross Unrealized Gains | 0 | 47 |
Gross Unrealized Losses | (3,889) | (441) |
Estimated Fair Value | 78,437 | 86,432 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,862 | 3,034 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (49) | 0 |
Estimated Fair Value | $ 2,813 | $ 3,034 |
Securities - Contractual Maturi
Securities - Contractual Maturities on Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available for Sale, Amortized Cost | ||
Within 1 year | $ 54,477 | |
After 1 year through 5 years | 330,024 | |
After 5 years through 10 years | 166,152 | |
After 10 years | 1,044,277 | |
No contractual maturities | 24,266 | |
Amortized Cost | 1,619,196 | $ 1,700,571 |
Available for Sale, Estimated Fair Value | ||
Within 1 year | 54,306 | |
After 1 year through 5 years | 325,752 | |
After 5 years through 10 years | 163,039 | |
After 10 years | 1,019,844 | |
No contractual maturities | 23,110 | |
Estimated Fair Value | 1,586,051 | 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 | 85,188 | |
No contractual maturities | 0 | |
Amortized Cost | 85,188 | 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 | 81,250 | |
No contractual maturities | 0 | |
Estimated Fair Value | $ 81,250 | $ 89,466 |
Loans - Loan Portfolio by Class
Loans - Loan Portfolio by Classes (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 5,920,175 | $ 6,066,225 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,355,942 | 4,082,893 |
Real estate loans | Nonowner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,809,356 | 1,713,104 |
Real estate loans | Multi-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 909,439 | 839,709 |
Real estate loans | Land development and construction loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 326,644 | 406,940 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,045,439 | 2,959,753 |
Real estate loans | Single-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 533,481 | 512,754 |
Real estate loans | Owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 777,022 | 610,386 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,380,428 | 1,354,755 |
Loans to financial institutions and acceptances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 68,965 | 497,626 |
Consumer loans and overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 114,840 | $ 130,951 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Syndication facilities included in loans | $ 807 | $ 989 |
Cash collateral on loans | 19.5 | 31.9 |
Loans pledged as collateral | $ 1,680 | $ 1,476 |
Loans - Loan Portfolio by Count
Loans - Loan Portfolio by Countries (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 5,920,175 | $ 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 | $ 299,759 | $ 755,269 |
International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 141,088 | |
International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 157,162 | 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 | 142,597 | 336,960 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,355,942 | 4,082,893 |
Real estate loans | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 135,438 | 152,713 |
Real estate loans | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 219 | |
Real estate loans | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 128,971 | 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 | 6,467 | 7,246 |
Loans to financial institutions and acceptances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 68,965 | 497,626 |
Loans to financial institutions and acceptances | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 49,000 | 481,183 |
Loans to financial institutions and acceptances | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 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 | 49,000 | 258,811 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,380,428 | 1,354,755 |
Commercial loans | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 73,636 | 69,294 |
Commercial loans | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 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 | 73,636 | 60,843 |
Consumer loans and overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 114,840 | 130,951 |
Consumer loans and overdrafts | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 41,685 | 52,079 |
Consumer loans and overdrafts | International | Brazil | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,046 | |
Consumer loans and overdrafts | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 28,191 | 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 | $ 13,494 | $ 10,060 |
Loans - Loans by Delinquency (D
Loans - Loans by Delinquency (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | $ 5,920,175 | $ 6,066,225 | |
Current | 5,899,259 | 6,042,448 | |
Past Due | 20,916 | 23,777 | |
Total Loans in Nonaccrual Status | 16,479 | 26,722 | |
Total Loans 90 Days or More Past Due and Accruing | 1,303 | 226 | |
30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 11,888 | 10,051 | |
60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,801 | 2,958 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 5,227 | 10,768 | |
Real estate loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 4,355,942 | 4,082,893 | |
Current | 4,339,045 | 4,063,309 | |
Past Due | 16,897 | 19,584 | |
Total Loans in Nonaccrual Status | 11,672 | 17,720 | |
Total Loans 90 Days or More Past Due and Accruing | 419 | 226 | |
Real estate loans | 30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 10,710 | 9,609 | |
Real estate loans | 60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,496 | 2,924 | |
Real estate loans | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,691 | 7,051 | |
Real estate loans | Non-owner occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 1,809,356 | 1,713,104 | |
Current | 1,809,356 | 1,712,624 | |
Past Due | 0 | 480 | |
Total Loans in Nonaccrual Status | 0 | 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 | 0 | 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 | 909,439 | 839,709 | |
Current | 909,439 | 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 | 326,644 | 406,940 | |
Current | 326,644 | 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 | 3,045,439 | 2,959,753 | |
Current | 3,045,439 | 2,959,273 | |
Past Due | 0 | 480 | |
Total Loans in Nonaccrual Status | 0 | 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 | 0 | 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 | 533,481 | 512,754 | |
Current | 519,730 | 501,393 | |
Past Due | 13,751 | 11,361 | |
Total Loans in Nonaccrual Status | 6,689 | 5,004 | $ 8,893 |
Total Loans 90 Days or More Past Due and Accruing | 419 | 226 | |
Real estate loans | Single-family residential | 30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 7,910 | 6,609 | |
Total Loans in Nonaccrual Status | 276 | 584 | 0 |
Real estate loans | Single-family residential | 60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 2,336 | 2,750 | |
Total Loans in Nonaccrual Status | 1,703 | 557 | 38 |
Real estate loans | Single-family residential | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 3,505 | 2,002 | |
Total Loans in Nonaccrual Status | 3,086 | 1,777 | 6,565 |
Real estate loans | Owner-occupied | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 777,022 | 610,386 | |
Current | 773,876 | 602,643 | |
Past Due | 3,146 | 7,743 | |
Total Loans in Nonaccrual Status | 4,983 | 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 | 2,800 | 3,000 | |
Real estate loans | Owner-occupied | 60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 160 | 174 | |
Real estate loans | Owner-occupied | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 186 | 4,569 | |
Commercial loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 1,380,428 | 1,354,755 | |
Current | 1,378,022 | 1,350,667 | |
Past Due | 2,406 | 4,088 | |
Total Loans in Nonaccrual Status | 4,772 | 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 | 704 | 385 | |
Commercial loans | 60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 1,062 | 5 | |
Commercial loans | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 640 | 3,698 | |
Loans to financial institutions and acceptances | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 68,965 | 497,626 | |
Current | 68,965 | 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 | 114,840 | 130,951 | |
Current | 113,227 | 130,846 | |
Past Due | 1,613 | 105 | |
Total Loans in Nonaccrual Status | 35 | 55 | 74 |
Total Loans 90 Days or More Past Due and Accruing | 884 | 0 | |
Consumer loans and overdrafts | 30-59 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 474 | 57 | |
Total Loans in Nonaccrual Status | 8 | 9 | 22 |
Consumer loans and overdrafts | 60-89 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 243 | 29 | |
Total Loans in Nonaccrual Status | 0 | 11 | 0 |
Consumer loans and overdrafts | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due | 896 | 19 | |
Total Loans in Nonaccrual Status | $ 11 | $ 19 | $ 9 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowances by Loan Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balances at beginning of the period | $ 72,000 | $ 81,751 | $ 77,043 |
(Reversal of) provision for loan losses | 375 | (3,490) | 22,110 |
Recoveries | 1,947 | 3,162 | 5,208 |
Balances at end of the period | 61,762 | 72,000 | 81,751 |
Allowance for loan losses by impairment methodology, Individually evaluated | 2,373 | 2,866 | 6,596 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 59,389 | 69,134 | 75,155 |
Investment in loans, net of unearned income, Individually evaluated | 13,458 | 22,599 | 69,329 |
Investment in loans, net of unearned income, Collectively evaluated | 5,906,717 | 6,043,626 | 5,695,432 |
Total Loans, Net of Unearned Income | 5,920,175 | 6,066,225 | 5,764,761 |
Domestic | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | (9,695) | (2,500) | (1,814) |
International | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | (2,865) | (6,923) | (20,796) |
Real estate loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balances at beginning of the period | 31,290 | 30,713 | 18,331 |
(Reversal of) provision for loan losses | (2,885) | (221) | 8,570 |
Recoveries | 212 | 895 | 3,906 |
Balances at end of the period | 22,778 | 31,290 | 30,713 |
Allowance for loan losses by impairment methodology, Individually evaluated | 0 | 0 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 22,778 | 31,290 | 30,713 |
Investment in loans, net of unearned income, Individually evaluated | 717 | 1,318 | 13,792 |
Investment in loans, net of unearned income, Collectively evaluated | 3,037,604 | 2,912,786 | 2,364,161 |
Total Loans, Net of Unearned Income | 3,038,321 | 2,914,104 | 2,377,953 |
Real estate loans | Domestic | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | (5,839) | (97) | (94) |
Real estate loans | International | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | 0 | 0 | 0 |
Commercial loans | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balances at beginning of the period | 32,687 | 40,897 | 44,734 |
(Reversal of) provision for loan losses | 1,099 | (1,027) | 16,153 |
Recoveries | 1,367 | 962 | 1,116 |
Balances at end of the period | 30,018 | 32,687 | 40,897 |
Allowance for loan losses by impairment methodology, Individually evaluated | 1,282 | 2,866 | 6,596 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 28,736 | 29,821 | 34,301 |
Investment in loans, net of unearned income, Individually evaluated | 9,652 | 20,907 | 51,332 |
Investment in loans, net of unearned income, Collectively evaluated | 2,254,607 | 2,073,351 | 2,398,552 |
Total Loans, Net of Unearned Income | 2,264,259 | 2,094,258 | 2,449,884 |
Commercial loans | Domestic | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | (3,662) | (1,979) | (1,496) |
Commercial loans | International | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | (1,473) | (6,166) | (19,610) |
Loans to financial institutions and acceptances | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balances at beginning of the period | 4,362 | 5,304 | 9,226 |
(Reversal of) provision for loan losses | (3,917) | (942) | (3,922) |
Recoveries | 0 | 0 | 0 |
Balances at end of the period | 445 | 4,362 | 5,304 |
Allowance for loan losses by impairment methodology, Individually evaluated | 0 | 0 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 445 | 4,362 | 5,304 |
Investment in loans, net of unearned income, Individually evaluated | 0 | 0 | 0 |
Investment in loans, net of unearned income, Collectively evaluated | 69,003 | 497,626 | 416,336 |
Total Loans, Net of Unearned Income | 69,003 | 497,626 | 416,336 |
Loans to financial institutions and acceptances | Domestic | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | 0 | 0 | 0 |
Loans to financial institutions and acceptances | International | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | 0 | 0 | 0 |
Consumer loans and overdrafts | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balances at beginning of the period | 3,661 | 4,837 | 4,752 |
(Reversal of) provision for loan losses | 6,078 | (1,300) | 1,309 |
Recoveries | 368 | 1,305 | 186 |
Balances at end of the period | 8,521 | 3,661 | 4,837 |
Allowance for loan losses by impairment methodology, Individually evaluated | 1,091 | 0 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 7,430 | 3,661 | 4,837 |
Investment in loans, net of unearned income, Individually evaluated | 3,089 | 374 | 4,205 |
Investment in loans, net of unearned income, Collectively evaluated | 545,503 | 559,863 | 516,383 |
Total Loans, Net of Unearned Income | 548,592 | 560,237 | 520,588 |
Consumer loans and overdrafts | Domestic | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | (194) | (424) | (224) |
Consumer loans and overdrafts | International | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Loans charged-off | $ (1,392) | $ (757) | $ (1,186) |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment of Loan Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | $ 173,473 | $ 90,477 | $ 105,248 |
Real estate loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | 20,248 | 15,040 | 9,151 |
Commercial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | 138,244 | 35,260 | 72,597 |
Loans to financial institutions and acceptances | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | 0 | 40,177 | 23,500 |
Consumer loans and overdrafts | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | $ 14,981 | $ 0 | $ 0 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | $ 7,849 | $ 7,173 |
Recorded Investment, Without a Valuation Allowance | 5,609 | 15,426 |
Recorded Investment, Total | 13,458 | 22,599 |
Year Average | 25,708 | 44,233 |
Total Unpaid Principal Balance | 14,776 | 29,635 |
Valuation Allowance | 2,373 | 2,866 |
Interest Income Recognized | 1,106 | 1,178 |
Real estate loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 3,255 | 0 |
Recorded Investment, Without a Valuation Allowance | 5,450 | 13,440 |
Recorded Investment, Total | 8,705 | 13,440 |
Year Average | 18,229 | 26,022 |
Total Unpaid Principal Balance | 8,750 | 14,851 |
Valuation Allowance | 1,310 | 0 |
Interest Income Recognized | 154 | 1,166 |
Real estate loans | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 0 | 0 |
Recorded Investment, Without a Valuation Allowance | 0 | 327 |
Recorded Investment, Total | 0 | 327 |
Year Average | 7,935 | 225 |
Total Unpaid Principal Balance | 0 | 327 |
Valuation Allowance | 0 | 0 |
Interest Income Recognized | 0 | 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 | 717 | 1,318 |
Recorded Investment, Total | 717 | 1,318 |
Year Average | 724 | 7,898 |
Total Unpaid Principal Balance | 722 | 1,330 |
Valuation Allowance | 0 | 0 |
Interest Income Recognized | 32 | 54 |
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 Average | 0 | 1,359 |
Total Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Real estate loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 0 | 0 |
Recorded Investment, Without a Valuation Allowance | 717 | 1,645 |
Recorded Investment, Total | 717 | 1,645 |
Year Average | 8,659 | 9,482 |
Total Unpaid Principal Balance | 722 | 1,657 |
Valuation Allowance | 0 | 0 |
Interest Income Recognized | 32 | 54 |
Real estate loans | Single-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 3,086 | 0 |
Recorded Investment, Without a Valuation Allowance | 306 | 877 |
Recorded Investment, Total | 3,392 | 877 |
Year Average | 4,046 | 3,100 |
Total Unpaid Principal Balance | 3,427 | 871 |
Valuation Allowance | 1,235 | 0 |
Interest Income Recognized | 108 | 1,101 |
Real estate loans | Owner-occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 169 | 0 |
Recorded Investment, Without a Valuation Allowance | 4,427 | 10,918 |
Recorded Investment, Total | 4,596 | 10,918 |
Year Average | 5,524 | 13,440 |
Total Unpaid Principal Balance | 4,601 | 12,323 |
Valuation Allowance | 75 | 0 |
Interest Income Recognized | 14 | 11 |
Commercial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 4,585 | 7,173 |
Recorded Investment, Without a Valuation Allowance | 148 | 1,986 |
Recorded Investment, Total | 4,733 | 9,159 |
Year Average | 7,464 | 18,211 |
Total Unpaid Principal Balance | 6,009 | 14,784 |
Valuation Allowance | 1,059 | 2,866 |
Interest Income Recognized | 952 | 12 |
Consumer loans and overdrafts | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, With a Valuation Allowance | 9 | 0 |
Recorded Investment, Without a Valuation Allowance | 11 | 0 |
Recorded Investment, Total | 20 | 0 |
Year Average | 15 | 0 |
Total Unpaid Principal Balance | 17 | 0 |
Valuation Allowance | 4 | 0 |
Interest Income Recognized | $ 0 | $ 0 |
Allowance for Loan Losses - TDR
Allowance for Loan Losses - TDR Loans (Details) contract in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 5 | 4 | 7 | |
Recorded Investment | $ 2,463 | $ 1,473 | $ 12,275 | |
Write-down | $ 6,900 | $ 6,000 | ||
Real estate loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 3 | 5 | |
Recorded Investment | $ 1,831 | $ 0 | $ 1,103 | |
Real estate loans | Non-owner occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 1 | |
Recorded Investment | $ 0 | $ 0 | $ 208 | |
Write-down | $ 10,200 | |||
Proceeds from sale | $ 5,800 | |||
Real estate loans | Single-family residential | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 2 | 1 | |
Recorded Investment | $ 0 | $ 0 | $ 49 | |
Real estate loans | Owner-occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 1 | 3 | |
Recorded Investment | $ 1,831 | $ 0 | $ 846 | |
Commercial loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 2 | 1 | 2 | |
Recorded Investment | $ 622 | $ 1,473 | $ 11,172 | |
Consumer loans and overdrafts | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 0 | |
Recorded Investment | $ 10 | $ 0 | $ 0 |
Allowance for Loan Losses - T_2
Allowance for Loan Losses - TDR Loans Subsequently Defaulted (Details) contract in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 3 | 1 | 10 |
Recorded Investment | $ | $ 2,430 | $ 618 | $ 5,969 |
Real estate loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 1 | 10 |
Recorded Investment | $ | $ 1,831 | $ 618 | $ 5,969 |
Real estate loans | Single-family residential | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 6 |
Recorded Investment | $ | $ 0 | $ 0 | $ 3,010 |
Real estate loans | Owner-occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 1 | 4 |
Recorded Investment | $ | $ 1,831 | $ 618 | $ 2,959 |
Commercial loans | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Recorded Investment | $ | $ 589 | $ 0 | $ 0 |
Consumer loans and overdrafts | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Recorded Investment | $ | $ 10 | $ 0 | $ 0 |
Allowance for Loan Losses - Mas
Allowance for Loan Losses - Master Risk Category (Details) | Dec. 31, 2018rating |
Pass | Minimum | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 4 |
Pass | Maximum | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 10 |
Classified | Minimum | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 1 |
Classified | Maximum | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 3 |
Substandard | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 3 |
Doubtful | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 2 |
Loss | |
Financing Receivable, Recorded Investment [Line Items] | |
Loan Risk Rating | 1 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Risk Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 5,920,175 | $ 6,066,225 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,870,758 | 6,016,604 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 19,523 | 11,171 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 29,305 | 38,450 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 589 | 0 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,355,942 | 4,082,893 |
Real estate loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,323,581 | 4,057,597 |
Real estate loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 15,580 | 5,071 |
Real estate loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,781 | 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 | 1,809,356 | 1,713,104 |
Real estate loans | Non-owner occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,802,573 | 1,711,595 |
Real estate loans | Non-owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,561 | 1,020 |
Real estate loans | Non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 222 | 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 | 909,439 | 839,709 |
Real estate loans | Multi-family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 909,439 | 839,709 |
Real estate loans | Multi-family residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
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 | 326,644 | 406,940 |
Real estate loans | Land development and construction loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 326,644 | 406,940 |
Real estate loans | Land development and construction loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
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 | 3,045,439 | 2,959,753 |
Real estate loans | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,038,656 | 2,958,244 |
Real estate loans | Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,561 | 1,020 |
Real estate loans | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 222 | 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 | 533,481 | 512,754 |
Real estate loans | Single-family residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 526,373 | 506,885 |
Real estate loans | Single-family residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Single-family residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,108 | 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 | 777,022 | 610,386 |
Real estate loans | Owner-occupied | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 758,552 | 592,468 |
Real estate loans | Owner-occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,019 | 4,051 |
Real estate loans | Owner-occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,451 | 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 | 1,380,428 | 1,354,755 |
Commercial loans | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,369,434 | 1,334,543 |
Commercial loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,943 | 6,100 |
Commercial loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,462 | 14,112 |
Commercial loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 589 | 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 | 68,965 | 497,626 |
Loans to financial institutions and acceptances | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 68,965 | 497,626 |
Loans to financial institutions and acceptances | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
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 | 114,840 | 130,951 |
Consumer loans and overdrafts | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 108,778 | 126,838 |
Consumer loans and overdrafts | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Consumer loans and overdrafts | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,062 | 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 |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrual and Non-Accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 16,479 | $ 26,722 | |
Real estate loans | |||
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | 11,672 | 17,720 | |
Real estate loans | Single-family residential | |||
Accrual Loans, Loan Balance | |||
Current | 518,106 | 499,307 | $ 455,410 |
Past due, and still accruing | 8,686 | 8,443 | 6,186 |
Total Accrual Loans | $ 526,792 | $ 507,750 | $ 461,596 |
Accrued Loans, % | |||
Current loans, still accruing as a percentage of total loans | 97.12% | 97.38% | 96.80% |
Total past due loans, still accruing as a percentage of total loans | 1.63% | 1.64% | 1.31% |
Current and past due loans still accruing, as a percentage of total loans | 98.75% | 99.02% | 98.11% |
Non-Accrual Loans, Loan Balance | |||
Current | $ 1,624 | $ 2,086 | $ 2,290 |
Loan Balance | 5,065 | 2,918 | 6,603 |
Total Non-Accrual Loans | $ 6,689 | $ 5,004 | $ 8,893 |
Non-Accrual Loans, % | |||
Current nonaccrual loans as a percentage of total loans | 0.30% | 0.41% | 0.49% |
Past due non-accrual loans as a percentage of total loans | 0.95% | 0.57% | 1.40% |
Total non-accrual loans as a percentage of total loans | 1.25% | 0.98% | 1.89% |
Loan Balance | $ 533,481 | $ 512,754 | $ 470,489 |
% | 100.00% | 100.00% | 100.00% |
Real estate loans | Single-family residential | 30-59 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 7,634 | $ 6,025 | $ 4,675 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 1.43% | 1.17% | 0.99% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 276 | $ 584 | $ 0 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.05% | 0.11% | 0.00% |
Real estate loans | Single-family residential | 60-89 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 633 | $ 2,193 | $ 1,395 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.12% | 0.43% | 0.30% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 1,703 | $ 557 | $ 38 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.32% | 0.11% | 0.01% |
Real estate loans | Single-family residential | 90 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 419 | $ 225 | $ 116 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.08% | 0.04% | 0.02% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 3,086 | $ 1,777 | $ 6,565 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.58% | 0.35% | 1.39% |
Consumer loans and overdrafts | |||
Accrual Loans, Loan Balance | |||
Current | $ 113,211 | $ 130,830 | $ 120,463 |
Past due, and still accruing | 1,594 | 66 | 1,889 |
Total Accrual Loans | $ 114,805 | $ 130,896 | $ 122,352 |
Accrued Loans, % | |||
Current loans, still accruing as a percentage of total loans | 98.58% | 99.91% | 98.40% |
Total past due loans, still accruing as a percentage of total loans | 1.39% | 0.05% | 1.54% |
Current and past due loans still accruing, as a percentage of total loans | 99.97% | 99.96% | 99.94% |
Non-Accrual Loans, Loan Balance | |||
Current | $ 16 | $ 16 | $ 43 |
Loan Balance | 19 | 39 | 31 |
Total Non-Accrual Loans | $ 35 | $ 55 | $ 74 |
Non-Accrual Loans, % | |||
Current nonaccrual loans as a percentage of total loans | 0.01% | 0.01% | 0.03% |
Past due non-accrual loans as a percentage of total loans | 0.02% | 0.03% | 0.03% |
Total non-accrual loans as a percentage of total loans | 0.03% | 0.04% | 0.06% |
Loan Balance | $ 114,840 | $ 130,951 | $ 122,426 |
% | 100.00% | 100.00% | 100.00% |
Consumer loans and overdrafts | 30-59 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 466 | $ 48 | $ 1,076 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.41% | 0.04% | 0.88% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 8 | $ 9 | $ 22 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.01% | 0.01% | 0.02% |
Consumer loans and overdrafts | 60-89 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 243 | $ 18 | $ 443 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.21% | 0.01% | 0.36% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 0 | $ 11 | $ 0 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.00% | 0.01% | 0.00% |
Consumer loans and overdrafts | 90 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 885 | $ 0 | $ 370 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.77% | 0.00% | 0.30% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 11 | $ 19 | $ 9 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.01% | 0.01% | 0.01% |
Premises and Equipment, Net - S
Premises and Equipment, Net - Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 195,734 | $ 206,154 |
Less: Accumulated depreciation and amortization | (72,231) | (76,797) |
Premises and equipment, net | 123,503 | 129,357 |
Land | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | 18,307 | 18,307 |
Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 100,152 | 93,848 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 30 years | |
Equipment leased under an operating lease | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 0 | 19,626 |
Furniture and equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 21,579 | 19,832 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 31,225 | 29,749 |
Leasehold improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 19,301 | 18,260 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Work in progress | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 5,170 | $ 6,532 |
Premises and Equipment, Net - N
Premises and Equipment, Net - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation and amortization | $ 8,543 | $ 9,040 | $ 9,130 |
Premises and equipment original cost | $ 800 | 1,400 | 1,900 |
Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, at carrying value | 19,100 | 1,000 | |
Gains on sales of property | $ 11,300 | $ 2,000 | |
Disposed of by Sale | New York | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties disposed | property | 1 | ||
Disposed of by Sale | Florida | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties disposed | property | 1 |
Time Deposits - Narrative (Deta
Time Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Time deposits, $100,000 or more | $ 1,400 | $ 1,200 |
Time deposits, $250,000 or more | $ 718 | $ 624 |
Time deposits, average interest rate | 2.51% | 1.26% |
Time deposits, including brokered deposits, less than $100,000 | $ 642 | $ 780 |
Time Deposits Time Deposits - S
Time Deposits Time Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amount | ||
Maturities in year one | $ 1,438,565 | $ 1,357,668 |
Maturities in year two | 361,255 | 331,515 |
Maturities in year three | 168,850 | 194,175 |
Maturities in year four | 135,265 | 103,781 |
Maturities in year five | 106,550 | |
2023 and thereafter | 283,196 | 152,745 |
Total | $ 2,387,131 | $ 2,246,434 |
% | ||
Maturities in year one | 60.26% | 60.44% |
Maturities in year two | 15.13% | 14.76% |
Maturities in year three | 7.07% | 8.64% |
Maturities in year four | 5.67% | 4.62% |
Maturities in year five | 11.87% | 4.74% |
2023 and thereafter | 6.80% | |
Total | 100.00% | 100.00% |
Advances From the Federal Hom_3
Advances From the Federal Home Loan Bank and Other Borrowings (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Maturities in year one | $ 440,000,000 | $ 567,000,000 |
Maturities in year two | 306,000,000 | 155,000,000 |
Maturities in year three | 210,000,000 | 211,000,000 |
Maturities in year four | 240,000,000 | |
2022 and after | 210,000,000 | 0 |
Advances from Federal Home Loan Banks | 1,166,000,000 | 1,173,000,000 |
Advances from the FHLB | 280,000,000 | 255,000,000 |
Stock held of FHLB | 57,000,000 | 57,000,000 |
Other borrowings | $ 0 | $ 12,000,000 |
3-month LIBOR | Minimum | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
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 by Interest Rate Type, by Maturity [Abstract] | ||
Interest Rate 2018 | 2.03% | |
Interest Rate 2019 | 3.86% | |
Interest Rate 2020 | 2.74% | |
Interest Rate 2021 | 3.08% | |
Interest Rate 2022 and after | 3.23% | |
Floating Rates | Minimum | Maturities in 2019 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Advances from the FHLB, interest rate | 2.40% | |
Floating Rates | Minimum | Maturities in 2018 and 2019 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Advances from the FHLB, interest rate | 1.23% | |
Floating Rates | Maximum | Maturities in 2019 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Advances from the FHLB, interest rate | 2.82% | |
Floating Rates | Maximum | Maturities in 2018 and 2019 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Advances from the FHLB, interest rate | 1.71% |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 11,491 | $ 7,032 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 2,388 | 1,570 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 9,386 | 5,462 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 283 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,420 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1,420 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 1,420 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Third Party Broker | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Third Party Broker | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 1,420 | 1,375 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 685 | 195 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 685 | 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 | 685 | 195 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Third Party Broker | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 685 | 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) | 12 Months Ended | |
Dec. 31, 2018USD ($)instrument | Dec. 31, 2017USD ($)instrument | |
Derivatives, Fair Value [Line Items] | ||
Hedge ineffectiveness gain (loss) | $ 0 | $ 0 |
Derivatives Designated as Hedging Instruments | Federal Home Loan Bank Advances | ||
Derivatives, Fair Value [Line Items] | ||
Federal Home Loan Bank, average floating rate | $ 280,000,000 | $ 366,000,000 |
Derivatives Designated as Hedging Instruments | Federal Home Loan Bank Advances | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 1 year | 9 years |
Derivatives Designated as Hedging Instruments | Federal Home Loan Bank Advances | Minimum | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 2 years | |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | instrument | 16 | 15 |
Notional amount | $ 280,000,000 | $ 255,000,000 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Maximum | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 8 years | 9 years |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Minimum | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 1 year | 3 years |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | instrument | 8 | 1 |
Notional amount | $ 80,400,000 | $ 54,600,000 |
Average remaining maturity | 10 years | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Maximum | Customers | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 10 years | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Minimum | Customers | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 5 years | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | ||
Derivatives, Fair Value [Line Items] | ||
Number of instruments held | instrument | 16 | 7 |
Notional amount | $ 323,700,000 | $ 162,100,000 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Maximum | Customers | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 5 years | 4 years |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Minimum | Customers | ||
Derivatives, Fair Value [Line Items] | ||
Average remaining maturity | 1 year | 1 year 6 months |
Junior Subordinated Debenture_3
Junior Subordinated Debentures Held by Trust Subsidiaries - Narrative (Details) - subsidiary | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
Number of trust subsidiaries in which the company owns all the common capital securities | 8 | 8 |
Junior Subordinated Debenture_4
Junior Subordinated Debentures Held by Trust Subsidiaries - Summary of Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | $ 114,080 | |
Principal Amount of Debenture Issued to Trust | 118,110 | $ 118,110 |
Commercebank Capital Trust I | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2028 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 28,068 | |
Annual Rate of Trust Preferred Securities and Debentures | 8.90% | |
Commercebank Statutory Trust II | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2030 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 15,464 | |
Annual Rate of Trust Preferred Securities and Debentures | 10.60% | |
Commercebank Capital Trust III | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2031 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 10,400 | |
Annual Rate of Trust Preferred Securities and Debentures | 10.18% | |
Commercebank Capital Trust VI | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 9,537 | |
Commercebank Capital Trust VI | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 3.35% | |
Commercebank Capital Trust VII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 8,248 | |
Commercebank Capital Trust VII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 3.25% | |
Commercebank Capital Trust VIII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2034 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 5,155 | |
Commercebank Capital Trust VIII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2034 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 2.85% | |
Commercebank Capital Trust IX | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2038 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 25,774 | |
Commercebank Capital Trust IX | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2038 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.75% | |
Commercebank Capital Trust X | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2036 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 15,464 | |
Commercebank Capital Trust X | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2036 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.78% | |
Commercebank Capital Trust I | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | $ 26,830 | |
Commercebank Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 15,000 | |
Commercebank Capital Trust III | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 10,000 | |
Commercebank Capital Trust VI | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 9,250 | |
Commercebank Capital Trust VII | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 8,000 | |
Commercebank Capital Trust VIII | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 5,000 | |
Commercebank Capital Trust IX | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 25,000 | |
Commercebank Capital Trust X | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | $ 15,000 |
Incentive Compensation and Be_2
Incentive Compensation and Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 21, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 12, 2018 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution, percent of match | 100.00% | |||
Employer matching, maximum annual employee salary, matched | 5.00% | |||
Employee service requirements for plan participation | 3 months | |||
Employee age requirements for plan participation | 21 years | |||
Contributions by employer | $ 5 | $ 4 | ||
Partially compensated plan participants | $ 1.2 | |||
Restricted Stock | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock Units (RSUs) | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock Units (RSUs) | Non-employee Director | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Grants in period (in shares) | 86,535 | |||
Class A common stock | Restricted Stock | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Grants in period (in shares) | 736,839 | |||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 13.45 | |||
Share-based compensation expense | $ 0.2 | |||
Unearned deferred compensation expense | $ 9.8 | |||
Unearned deferred compensation expense, weighted average period | 2 years | |||
Class A common stock | Restricted Stock Units (RSUs) | Non-employee Director | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Grants in period (in shares) | 86,535 | |||
Shares settled in common shares | 57,690 | |||
Shares settled in cash upon vesting | 28,845 | |||
2018 Equity Plan | Class A common stock | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Shares reserved for future issuance (in shares) | 3,333,333 |
Income Taxes - Components (Deta
Income Taxes - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current provision | |||
Federal | $ 7,298 | $ 19,194 | $ 10,981 |
State | 1,964 | 1,763 | 844 |
Impact of lower rate under the 2017 Tax Act - | |||
Remeasurement of net deferred tax assets, other than balances corresponding to items in AOCI | 0 | 8,470 | 0 |
Remeasurement of net deferred tax assets corresponding to items in AOCI | 0 | 1,094 | 0 |
Deferred tax expense (benefit) | 2,471 | 3,471 | (1,614) |
Income tax expense | $ 11,733 | $ 33,992 | $ 10,211 |
Income Taxes Income Taxes - Nar
Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Change in tax rate, income tax expense | $ 9.6 | |
Net operating loss | 143.6 | $ 151.9 |
Deferred tax assets, operating loss carryforwards | $ 6.2 | $ 6.6 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount | |||
Tax expense calculated at the statutory federal income tax rate | $ 12,089 | $ 26,967 | $ 11,827 |
Remeasurement of net deferred tax assets | 0 | 9,564 | 0 |
Non-taxable interest income | (1,507) | (1,643) | (1,132) |
Non-taxable BOLI income | (1,223) | (1,910) | (1,547) |
Non-deductible Spin-off costs | 1,711 | 0 | 0 |
Disallowed interest expense allocable to tax exempt securities and other expenses | 627 | 577 | 464 |
State and city income taxes, net of federal income tax benefit | (131) | 1,146 | 549 |
Other, net | 167 | (709) | 50 |
Income tax expense | $ 11,733 | $ 33,992 | $ 10,211 |
% | |||
Tax expense calculated at the statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Remeasurement of net deferred tax assets | 0.00% | 12.41% | 0.00% |
Non-taxable interest income | (2.62%) | (2.13%) | (3.35%) |
Non-taxable BOLI income | (2.12%) | (2.48%) | (4.58%) |
Non-deductible Spin-off costs | 2.97% | 0.00% | 0.00% |
Disallowed interest expense allocable to tax exempt securities and other expenses | 1.09% | 0.75% | 1.37% |
State and city income taxes, net of federal income tax benefit | (0.23%) | 1.49% | 1.62% |
Other, net | 0.29% | (0.92%) | 0.16% |
Income tax expense | 20.38% | 44.12% | 30.22% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Provision for loan losses | $ 13,581 | $ 13,372 |
Net unrealized losses in other comprehensive income | 5,878 | 1,680 |
Deferred compensation expense | 3,489 | 3,460 |
Dividend income | 605 | 946 |
Interest income on nonaccrual loans | 341 | 599 |
Goodwill amortization | (3,979) | (3,223) |
Depreciation and amortization | (3,934) | (3,601) |
Other | 329 | 1,350 |
Net deferred tax assets | $ 16,310 | $ 14,583 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (“AOCL”) - Componenets of AOCL (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | $ (24,042) | $ (7,812) |
Tax Effect | 5,878 | 1,679 |
Net of Tax Amount | (18,164) | (6,133) |
Unrealized losses on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | (33,145) | (13,414) |
Tax Effect | 8,104 | 2,883 |
Net of Tax Amount | (25,041) | (10,531) |
Unrealized gains on interest rate swaps designated as cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | 9,103 | 5,602 |
Tax Effect | (2,226) | (1,204) |
Net of Tax Amount | $ 6,877 | $ 4,398 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (“AOCL”) - Components of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Before Tax Amount | |||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | $ (16,230) | $ 8,769 | $ (1,930) |
Tax Effect | |||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (4,199) | 4,207 | (685) |
Net of Tax Amount | |||
Reclassification adjustment for net (gains) losses included in net income, Net of Tax Amount | 571 | 833 | (1,004) |
Other comprehensive (loss) income | (12,031) | 4,562 | (1,245) |
Unrealized losses on available for sale securities: | |||
Before Tax Amount | |||
Change in fair value arising during the period, Before Tax Amount | (20,730) | 6,875 | (5,952) |
Reclassification adjustment for net (gains) losses included in net income, Before Tax Amount | 999 | 1,601 | (1,556) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (19,731) | ||
Tax Effect | |||
Change in fair value arising during the period, Tax Effect | 5,465 | (3,298) | 2,113 |
Reclassification adjustment for net (gains) losses included in net income, Tax Effect | (244) | (768) | 552 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (5,221) | ||
Net of Tax Amount | |||
Change in fair value arising during the period, Net of Tax Amount | (15,265) | 3,577 | (3,839) |
Reclassification adjustment for net (gains) losses included in net income, Net of Tax Amount | 755 | 833 | (1,004) |
Other comprehensive (loss) income | (14,510) | ||
Unrealized gains on interest rate swaps designated as cash flow hedges: | |||
Before Tax Amount | |||
Change in fair value arising during the period, Before Tax Amount | 3,744 | 293 | 5,578 |
Reclassification adjustment for net (gains) losses included in net income, Before Tax Amount | (243) | ||
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 3,501 | ||
Tax Effect | |||
Change in fair value arising during the period, Tax Effect | (1,081) | (141) | (1,980) |
Reclassification adjustment for net (gains) losses included in net income, Tax Effect | 59 | ||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1,022 | ||
Net of Tax Amount | |||
Change in fair value arising during the period, Net of Tax Amount | 2,663 | $ 152 | $ 3,598 |
Reclassification adjustment for net (gains) losses included in net income, Net of Tax Amount | (184) | ||
Other comprehensive (loss) income | $ 2,479 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Mar. 13, 2018 | Feb. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 19, 2018 |
Related Party Transaction [Line Items] | ||||||
Available for sale | $ 1,586,051,000 | $ 1,687,157,000 | ||||
Loans issued to related parties | 5,600,000 | 4,800,000 | ||||
Interest income, related party | 200,000 | 200,000 | ||||
Consideration received on transaction | $ 4,900,000 | |||||
Sale of stock, gain (loss) | 0 | |||||
Participating mortgage loans | 10,000,000 | 45,000,000 | ||||
Participating mortgage loans, gain (loss) | 0 | 0 | ||||
Dividend paid | $ 40,000,000 | 40,000,000 | $ 0 | 0 | ||
Dividends, declared (in dollars per share) | $ 0.94 | |||||
Subsidiary of Common Parent | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for license fees | $ 400,000 | |||||
Subsidiary of Common Parent | Mercantil Bank Holding Corporation | ||||||
Related Party Transaction [Line Items] | ||||||
Dividends | $ 19,800,000 | |||||
Sale of membership interest | 8,500,000 | |||||
Cash | 1,000,000 | |||||
Subsidiary of Common Parent | Mercantil Bank Holding Corporation | Aircraft | ||||||
Related Party Transaction [Line Items] | ||||||
Assets | $ 7,500,000 | |||||
Subsidiary of Common Parent | Loss on sale of securities | ||||||
Related Party Transaction [Line Items] | ||||||
Available for sale | 11,800,000 | |||||
Available-for-sale, loss | $ 800,000 | |||||
Maximum | Mercantil Servicios Financieros, C.A. (MSF) | ||||||
Related Party Transaction [Line Items] | ||||||
Percent of shares outstanding owned | 5.00% | |||||
Maximum | Class B common stock | Mercantil Servicios Financieros, C.A. (MSF) | ||||||
Related Party Transaction [Line Items] | ||||||
Percent of shares outstanding owned | 5.00% |
Related Party Transactions - Ba
Related Party Transactions - Balance Sheet Information (Details) - Subsidiary of Common Parent - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Liabilities [Abstract] | ||
Total due to related parties | $ 14,826 | $ 54,035 |
Demand deposits, noninterest bearing | ||
Liabilities [Abstract] | ||
Due to related parties | 9,447 | 24,879 |
Demand deposits, interest bearing | ||
Liabilities [Abstract] | ||
Due to related parties | 3,721 | 21,071 |
Money market | ||
Liabilities [Abstract] | ||
Due to related parties | 308 | 449 |
Time deposits and accounts payable | ||
Liabilities [Abstract] | ||
Due to related parties | $ 1,350 | $ 7,636 |
Related Party Transactions - Su
Related Party Transactions - Summary of Income and Expenses (Details) - Subsidiary of Common Parent - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income | |||
Revenue from related parties | $ 2,511 | $ 3,593 | $ 4,387 |
Expenses | |||
Expenses from transactions with related parties | 749 | 387 | 1,373 |
Revenue (expenses) from related parties | 1,762 | 3,206 | 3,014 |
Data processing and other services | |||
Income | |||
Revenue from related parties | 2,168 | 1,532 | 2,328 |
Rental income from operating lease | |||
Income | |||
Revenue from related parties | 248 | 1,971 | 1,976 |
Service charges | |||
Income | |||
Revenue from related parties | 95 | 90 | 83 |
Interest expense | |||
Expenses | |||
Expenses from transactions with related parties | 126 | 85 | 73 |
Loss on sale of securities | |||
Expenses | |||
Expenses from transactions with related parties | 0 | 0 | 796 |
Fees and other expenses | |||
Expenses | |||
Expenses from transactions with related parties | $ 623 | $ 302 | $ 504 |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) | Mar. 07, 2019USD ($)$ / sharesshares | Feb. 28, 2019shares | Feb. 01, 2019shares | Jan. 23, 2019USD ($)$ / sharesshares | Dec. 28, 2018USD ($)$ / sharesshares | Dec. 21, 2018USD ($)$ / sharesshares | Oct. 23, 2018 | Mar. 13, 2018USD ($)$ / shares | Feb. 28, 2019USD ($) | Dec. 31, 2018shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 27, 2018shares | Feb. 06, 2018shares | Dec. 31, 2015shares |
Class of Stock [Line Items] | ||||||||||||||||
Common and preferred stock, shares authorized (in shares) | 550,000,000 | 550,000,000 | ||||||||||||||
Stock split, conversion ratio | 0.3333 | |||||||||||||||
Consideration received on transaction | $ | $ 4,900,000 | |||||||||||||||
Dividend paid | $ | $ 40,000,000 | $ 40,000,000 | $ 0 | $ 0 | ||||||||||||
Dividends, declared (in dollars per share) | $ / shares | $ 0.94 | |||||||||||||||
2018 Equity Plan | Restricted Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Stock issued during period (in shares) | 736,839 | |||||||||||||||
Class A | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, shares issued (in shares) | 26,851,832 | 26,851,832 | 24,737,470 | 74,212,408 | ||||||||||||
Common stock, shares outstanding (in shares) | 26,851,832 | 26,851,832 | 24,737,470 | |||||||||||||
Class A | Common Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, shares issued (in shares) | 26,851,832 | 26,851,832 | 24,737,470 | 24,737,470 | 24,737,470 | |||||||||||
Common stock, shares outstanding (in shares) | 26,851,832 | 26,851,832 | 24,737,470 | 24,737,470 | 24,737,470 | |||||||||||
Stock issued during period (in shares) | 1,377,523 | |||||||||||||||
Class A | Common Stock | IPO | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction (in shares) | 6,300,000 | |||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 13 | |||||||||||||||
Class A | Common Stock | Private Placement | Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction (in shares) | 1,750,000 | 153,846 | ||||||||||||||
Consideration received on transaction | $ | $ 26,700,000 | |||||||||||||||
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 issued (in shares) | 17,751,053 | 17,751,053 | 17,751,053 | 53,253,157 | ||||||||||||
Common stock, shares outstanding (in shares) | 17,751,053 | 17,751,053 | 17,751,053 | |||||||||||||
Treasury stock (in shares) | 1,420,136 | 1,420,136 | ||||||||||||||
Class B | Common Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, shares issued (in shares) | 17,751,053 | 17,751,053 | 17,751,053 | 17,751,053 | 17,751,053 | |||||||||||
Common stock, shares outstanding (in shares) | 17,751,053 | 17,751,053 | 17,751,053 | 17,751,053 | 17,751,053 | |||||||||||
Number of shares authorized to be repurchased (in shares) | 3,532,457 | |||||||||||||||
Treasury stock, acquired (in shares) | 1,420,136 | 1,400,000 | ||||||||||||||
Treasury stock acquired (in dollars per share) | $ / shares | $ 12.61 | |||||||||||||||
Treasury stock acquired | $ | $ 17,900,000 | |||||||||||||||
Treasury stock (in shares) | 1,420,136 | |||||||||||||||
Class B | Common Stock | Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Treasury stock, acquired (in shares) | 2,112,321 | |||||||||||||||
Treasury stock acquired (in dollars per share) | $ / shares | $ 13.48 | |||||||||||||||
Treasury stock acquired | $ | $ 28,500,000 | |||||||||||||||
Treasury stock (in shares) | 2,112,321 | |||||||||||||||
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 | |||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Percent of common stock, outstanding exchanged (in shares) | 100.00% | |||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class A | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, exchanged (in shares) | 298,570,328 | |||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class A | Common Stock | IPO | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction (in shares) | 4,922,477 | |||||||||||||||
Consideration received on transaction | $ | $ 0 | |||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class B | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Common stock, exchanged (in shares) | 215,188,764 | |||||||||||||||
Mercantil Bank Holding Corporation | Class A | Common Stock | IPO | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction (in shares) | 1,377,523 | |||||||||||||||
Consideration received on transaction | $ | $ 17,900,000 | |||||||||||||||
Underwriters | Class A | Common Stock | IPO | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction (in shares) | 945,000 | |||||||||||||||
Period in force | 30 days | |||||||||||||||
Underwriters | Class A | Common Stock | IPO | Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares issued in transaction (in shares) | 229,019 | |||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 13 | |||||||||||||||
Consideration received on transaction | $ | $ 3,000,000 |
Stockholders_ Equity - Schedule
Stockholders’ Equity - Schedule of Shares (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 500,000,000 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.10 | |
Common and preferred stock, shares authorized (in shares) | 550,000,000 | |
Class A | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Class B | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 6 | $ 6 | $ 6 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2019 | $ 6,281 |
2020 | 6,223 |
2021 | 5,930 |
2022 | 5,386 |
2023 | 5,069 |
Thereafter | 43,071 |
Total future payments, under operating leases | $ 71,960 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Off-Balance Sheet Credit Risk (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | $ 1,149,156 |
Commitments to extend credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 923,424 |
Credit card facilities | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 198,500 |
Standby letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 19,562 |
Commercial letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | $ 7,670 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Securities available for sale | ||
Securities available for sale | $ 1,586,051 | $ 1,687,157 |
Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 1,586,051 | 1,687,157 |
Bank owned life insurance | 206,141 | 200,318 |
Derivative instruments | 11,491 | 7,032 |
Assets, fair value | 1,803,683 | 1,894,507 |
Liabilities | ||
Derivative instruments | 2,388 | 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 | 1,586,051 | 1,687,157 |
Bank owned life insurance | 206,141 | 200,318 |
Derivative instruments | 11,491 | 7,032 |
Assets, fair value | 1,803,683 | 1,894,507 |
Liabilities | ||
Derivative instruments | 2,388 | 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 | 820,779 | 875,666 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 820,779 | 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 | 820,779 | 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 | 352,555 | 313,392 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 352,555 | 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 | 352,555 | 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 | 216,985 | 291,385 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 216,985 | 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 | 216,985 | 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 | 160,212 | 180,396 |
Municipal bonds | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 160,212 | 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 | 160,212 | 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 | 23,110 | 23,617 |
Mutual funds | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 23,110 | 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 | 23,110 | 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 | 12,410 | |
Commercial paper | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 12,410 | |
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 | 12,410 | |
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) $ in Millions | Dec. 31, 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 of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Financial assets | ||
Loans | $ 2,850,015 | $ 2,682,790 |
Financial liabilities | ||
Time deposits | 1,745,025 | 1,466,464 |
Advances from the Federal Home Loan Bank | 1,166,000 | 1,161,000 |
Junior subordinated debentures | 118,110 | 118,110 |
Estimated Fair Value | ||
Financial assets | ||
Loans | 2,739,721 | 2,566,197 |
Financial liabilities | ||
Time deposits | 1,740,752 | 1,461,908 |
Advances from the Federal Home Loan Bank | 1,167,213 | 1,164,686 |
Junior subordinated debentures | $ 99,450 | $ 95,979 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividends | $ 82,600 | $ 84,400 | |
Capital conservation buffer | 5.50% | 5.30% | |
Capital [Abstract] | |||
Total capital | $ 916,663 | $ 926,049 | |
Total capital ratio | 13.54% | 13.31% | |
Total minimums capital required for capital adequacy | $ 541,638 | $ 556,578 | |
Total minimums capital required for capital adequacy, ratio | 8.00% | 8.00% | |
Total capital required to be well capitalized | $ 677,047 | $ 695,722 | |
Total capital required to be well capitalized, ratio | 10.00% | 10.00% | |
Tier One Risk Based Capital [Abstract] | |||
Tier 1 capital | $ 859,031 | $ 852,825 | |
Tier 1 capital ratio | 12.69% | 12.21% | |
Tier 1 minimums capital required for capital adequacy | $ 406,228 | $ 417,433 | |
Tier 1 minimums capital required for capital adequacy, ratio | 6.00% | 6.00% | |
Tier 1 capital required to be well capitalized | $ 541,638 | $ 556,578 | |
Tier 1 capital required to be well capitalized, ratio | 8.00% | 8.00% | |
Tier One Leverage Capital [Abstract] | |||
Tier 1 leverage capital | $ 859,031 | $ 852,825 | |
Tier 1 leverage ratio | 10.34% | 10.15% | |
Tier 1 leverage minimums capital required for capital adequacy | $ 332,190 | $ 335,647 | |
Tier 1 leverage minimums capital required for capital adequacy, ratio | 4.00% | 4.00% | |
Tier 1 leverage capital required to be well capitalized | $ 415,238 | $ 419,559 | |
Tier 1 leverage capital required to be well capitalized, ratio | 5.00% | 5.00% | |
Common Equity Tier One Capital [Abstract] | |||
Common equity tier 1 (CET1), amount | $ 749,465 | $ 753,545 | |
Common equity tier 1 (CET1) , ratio | 11.07% | 10.68% | |
Common equity tier 1 (CET1) minimums capital required for capital adequacy | $ 304,671 | $ 313,075 | |
Common equity tier 1 (CET1) minimums capital required for capital adequacy, ratio | 4.50% | 4.50% | |
Common equity tier 1 (CET1) capital required to be well capitalized | $ 440,080 | $ 452,220 | |
Common equity tier 1 (CET1) capital required to be well capitalized, ratio | 6.50% | 6.50% | |
Forecast | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital conservation buffer | 2.50% | ||
The Bank | |||
Capital [Abstract] | |||
Total capital | $ 883,746 | $ 885,855 | |
Total capital ratio | 13.05% | 12.69% | |
Total minimums capital required for capital adequacy | $ 541,564 | $ 556,446 | |
Total minimums capital required for capital adequacy, ratio | 8.00% | 8.00% | |
Total capital required to be well capitalized | $ 676,955 | $ 695,557 | |
Total capital required to be well capitalized, ratio | 10.00% | 10.00% | |
Tier One Risk Based Capital [Abstract] | |||
Tier 1 capital | $ 826,114 | $ 812,631 | |
Tier 1 capital ratio | 12.20% | 11.68% | |
Tier 1 minimums capital required for capital adequacy | $ 406,173 | $ 417,334 | |
Tier 1 minimums capital required for capital adequacy, ratio | 6.00% | 6.00% | |
Tier 1 capital required to be well capitalized | $ 541,564 | $ 556,446 | |
Tier 1 capital required to be well capitalized, ratio | 8.00% | 8.00% | |
Tier One Leverage Capital [Abstract] | |||
Tier 1 leverage capital | $ 826,114 | $ 812,631 | |
Tier 1 leverage ratio | 9.96% | 9.69% | |
Tier 1 leverage minimums capital required for capital adequacy | $ 331,829 | $ 335,600 | |
Tier 1 leverage minimums capital required for capital adequacy, ratio | 4.00% | 4.00% | |
Tier 1 leverage capital required to be well capitalized | $ 414,786 | $ 419,500 | |
Tier 1 leverage capital required to be well capitalized, ratio | 5.00% | 5.00% | |
Common Equity Tier One Capital [Abstract] | |||
Common equity tier 1 (CET1), amount | $ 826,114 | $ 812,631 | |
Common equity tier 1 (CET1) , ratio | 12.20% | 11.68% | |
Common equity tier 1 (CET1) minimums capital required for capital adequacy | $ 304,630 | $ 313,001 | |
Common equity tier 1 (CET1) minimums capital required for capital adequacy, ratio | 4.50% | 4.50% | |
Common equity tier 1 (CET1) capital required to be well capitalized | $ 440,021 | $ 452,112 | |
Common equity tier 1 (CET1) capital required to be well capitalized, ratio | 6.50% | 6.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders | $ 45,833 | $ 43,057 | $ 23,579 |
Basic weighted averages shares outstanding (in shares) | 42,487,000 | 42,489,000 | 42,489,000 |
Dilutive effect of shared-based compensation awards (in shares) | 0 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 42,487,000 | 42,489,000 | 42,489,000 |
Basic earnings per common share (in dollars per share) | $ 1.08 | $ 1.01 | $ 0.55 |
Diluted earnings per common share (in dollars per share) | $ 1.08 | $ 1.01 | $ 0.55 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation | 0 | 0 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation | 736,839 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Reportable business segments | segment | 4 | ||
Income Statement: | |||
Net interest income | $ 219,039,000 | $ 209,710,000 | $ 191,933,000 |
Provision for (reversal of) loan losses | 375,000 | (3,490,000) | 22,110,000 |
Net interest income after provision for loan losses | 218,664,000 | 213,200,000 | 169,823,000 |
Noninterest income | 53,875,000 | 71,485,000 | 62,270,000 |
Noninterest expense | 214,973,000 | 207,636,000 | 198,303,000 |
Net income (loss) before income tax: | |||
Net income before income tax | 57,566,000 | 77,049,000 | 33,790,000 |
Income tax expense | (11,733,000) | (33,992,000) | (10,211,000) |
Net income | 45,833,000 | 43,057,000 | 23,579,000 |
Balance Sheets | |||
Loans, net | 5,858,413,000 | 5,994,225,000 | |
Loans, net | 5,999,836,000 | ||
Deposits | 6,032,686,000 | 6,322,973,000 | |
Loans held for sale | 0 | 5,611,000 | |
Operating Segments | |||
Income Statement: | |||
Net interest income | 219,039,000 | 209,710,000 | 191,933,000 |
Provision for (reversal of) loan losses | 375,000 | (3,490,000) | 22,110,000 |
Net interest income after provision for loan losses | 218,664,000 | 213,200,000 | 169,823,000 |
Noninterest income | 53,875,000 | 71,485,000 | 62,270,000 |
Noninterest expense | 214,973,000 | 207,636,000 | 198,303,000 |
Net income (loss) before income tax: | |||
Net income before income tax | 57,566,000 | 77,049,000 | 33,790,000 |
Segment Reconciling Items | |||
Net income (loss) before income tax: | |||
Net income before income tax | 0 | 0 | 0 |
Personal and Commercial Banking (PAC) | |||
Net income (loss) before income tax: | |||
Net income before income tax | 59,322,000 | 53,084,000 | 26,981,000 |
Income tax expense | (12,243,000) | (18,784,000) | (10,068,000) |
Net income | 47,079,000 | 34,300,000 | 16,913,000 |
Balance Sheets | |||
Loans, net | 5,845,266,000 | ||
Loans, net | 5,542,545,000 | ||
Deposits | 5,339,099,000 | 5,454,216,000 | |
Loans held for sale | 5,600,000 | ||
Personal and Commercial Banking (PAC) | Operating Segments | |||
Income Statement: | |||
Net interest income | 196,008,000 | 182,872,000 | 157,325,000 |
Provision for (reversal of) loan losses | 1,303,000 | 42,000 | 5,795,000 |
Net interest income after provision for loan losses | 194,705,000 | 182,830,000 | 151,530,000 |
Noninterest income | 22,556,000 | 26,468,000 | 26,461,000 |
Noninterest expense | 160,491,000 | 161,002,000 | 156,146,000 |
Net income (loss) before income tax: | |||
Net income before income tax | 56,770,000 | 48,296,000 | 21,845,000 |
Personal and Commercial Banking (PAC) | Segment Reconciling Items | |||
Net income (loss) before income tax: | |||
Net income before income tax | 2,552,000 | 4,788,000 | 5,136,000 |
Corporate LATAM | |||
Net income (loss) before income tax: | |||
Net income before income tax | 5,434,000 | 9,063,000 | (5,894,000) |
Income tax expense | (1,122,000) | (3,207,000) | 2,200,000 |
Net income | 4,312,000 | 5,856,000 | (3,694,000) |
Balance Sheets | |||
Loans, net | 69,755,000 | ||
Loans, net | 521,616,000 | ||
Deposits | 16,293,000 | 18,670,000 | |
Corporate LATAM | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Minimum revenue in targeted financial institutions | 1,000,000,000 | ||
Income Statement: | |||
Net interest income | 5,308,000 | 9,514,000 | 15,302,000 |
Provision for (reversal of) loan losses | (3,783,000) | (3,879,000) | 13,620,000 |
Net interest income after provision for loan losses | 9,091,000 | 13,393,000 | 1,682,000 |
Noninterest income | 365,000 | 509,000 | 843,000 |
Noninterest expense | 4,035,000 | 4,894,000 | 8,295,000 |
Net income (loss) before income tax: | |||
Net income before income tax | 5,421,000 | 9,008,000 | (5,770,000) |
Corporate LATAM | Segment Reconciling Items | |||
Net income (loss) before income tax: | |||
Net income before income tax | 13,000 | 55,000 | (124,000) |
Treasury | |||
Net income (loss) before income tax: | |||
Net income before income tax | 1,701,000 | 5,860,000 | 12,422,000 |
Income tax expense | 1,546,000 | 1,106,000 | (1,473,000) |
Net income | 3,247,000 | 6,966,000 | 10,949,000 |
Balance Sheets | |||
Loans, net | 0 | ||
Loans, net | 0 | ||
Deposits | 642,106,000 | 779,969,000 | |
Treasury | Operating Segments | |||
Income Statement: | |||
Net interest income | 4,527,000 | 6,649,000 | 12,586,000 |
Provision for (reversal of) loan losses | (212,000) | (1,547,000) | (1,069,000) |
Net interest income after provision for loan losses | 4,739,000 | 8,196,000 | 13,655,000 |
Noninterest income | 8,400,000 | 8,920,000 | 7,808,000 |
Noninterest expense | 11,438,000 | 11,256,000 | 9,041,000 |
Net income (loss) before income tax: | |||
Net income before income tax | 1,701,000 | 5,860,000 | 12,422,000 |
Treasury | Segment Reconciling Items | |||
Net income (loss) before income tax: | |||
Net income before income tax | 0 | 0 | 0 |
Institutional | |||
Net income (loss) before income tax: | |||
Net income before income tax | (8,891,000) | 9,042,000 | 281,000 |
Income tax expense | 86,000 | (13,107,000) | (870,000) |
Net income | (8,805,000) | (4,065,000) | (589,000) |
Balance Sheets | |||
Loans, net | (56,608,000) | ||
Loans, net | (64,325,000) | ||
Deposits | 35,188,000 | 70,118,000 | |
Institutional | Operating Segments | |||
Income Statement: | |||
Net interest income | 13,196,000 | 10,675,000 | 6,720,000 |
Provision for (reversal of) loan losses | 3,067,000 | 1,894,000 | 3,764,000 |
Net interest income after provision for loan losses | 10,129,000 | 8,781,000 | 2,956,000 |
Noninterest income | 22,554,000 | 35,588,000 | 27,158,000 |
Noninterest expense | 39,009,000 | 30,484,000 | 24,821,000 |
Net income (loss) before income tax: | |||
Net income before income tax | (6,326,000) | 13,885,000 | 5,293,000 |
Institutional | Segment Reconciling Items | |||
Net income (loss) before income tax: | |||
Net income before income tax | $ (2,565,000) | $ (4,843,000) | $ (5,012,000) |
Condensed Unconsolidated Hold_3
Condensed Unconsolidated Holding Companies’ Financial Statements - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash and due from banks | $ 25,756 | $ 44,531 | ||
Investments in subsidiaries | 114,080 | |||
Total assets | 8,124,347 | 8,436,767 | ||
Liabilities and Stockholders' Equity | ||||
Junior subordinated debentures held by trust subsidiaries | 118,110 | 118,110 | ||
Stockholders' equity | 747,418 | 753,450 | $ 704,737 | $ 682,403 |
Total liabilities and stockholders' equity | 8,124,347 | 8,436,767 | ||
Mercantil Bank Holding Corporation | Parent Company | Reportable Legal Entities | ||||
Assets | ||||
Cash and due from banks | 1,891 | 1,420 | ||
Investments in subsidiaries | 746,344 | 752,409 | ||
Other assets | 1,720 | 1,798 | ||
Total assets | 749,955 | 755,627 | ||
Liabilities and Stockholders' Equity | ||||
Other liabilities | 2,537 | 2,177 | ||
Stockholders' equity | 747,418 | 753,450 | ||
Total liabilities and stockholders' equity | 749,955 | 755,627 | ||
Mercantil Florida Bancorp, Inc | Subsidiaries | Reportable Legal Entities | ||||
Assets | ||||
Cash and due from banks | 32,922 | 39,089 | ||
Investments in subsidiaries | 822,940 | 821,982 | ||
Other assets | 9,640 | 9,775 | ||
Total assets | 865,502 | 870,846 | ||
Liabilities and Stockholders' Equity | ||||
Junior subordinated debentures held by trust subsidiaries | 118,110 | 118,110 | ||
Other liabilities | 1,048 | 979 | ||
Stockholders' equity | 746,344 | 751,757 | ||
Total liabilities and stockholders' equity | $ 865,502 | $ 870,846 |
Condensed Unconsolidated Hold_4
Condensed Unconsolidated Holding Companies’ Financial Statements - Income Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income | |||
Interest | $ 309,358 | $ 273,320 | $ 238,827 |
Expenses | |||
Employee compensation and benefit | 141,801 | 131,800 | 129,681 |
Interest Expense | 90,319 | 63,610 | 46,894 |
Provision for (reversal of) loan losses | 375 | (3,490) | 22,110 |
Other expenses | 10,365 | 15,567 | 13,664 |
Net income before income tax | 57,566 | 77,049 | 33,790 |
Income tax (expense) benefit | (11,733) | (33,992) | (10,211) |
Net income | 45,833 | 43,057 | 23,579 |
Mercantil Bank Holding Corporation | Parent Company | Reportable Legal Entities | |||
Income | |||
Interest | 9 | 3 | 2 |
Equity in earnings of subsidiary | 53,939 | 45,008 | 23,996 |
Total income | 53,948 | 45,011 | 23,998 |
Expenses | |||
Employee compensation and benefit | 0 | 350 | 350 |
Other expenses | 8,018 | 2,539 | 250 |
Total expense | 8,018 | 2,889 | 600 |
Net income before income tax | 45,930 | 42,122 | 23,398 |
Income tax (expense) benefit | (97) | 935 | 181 |
Net income | 45,833 | 43,057 | 23,579 |
Mercantil Florida Bancorp, Inc | Subsidiaries | Reportable Legal Entities | |||
Income | |||
Interest | 182 | 85 | 33 |
Equity in earnings of subsidiary | 60,609 | 50,982 | 31,282 |
Total income | 60,791 | 51,067 | 31,315 |
Expenses | |||
Interest Expense | 8,086 | 7,456 | 7,129 |
Provision for (reversal of) loan losses | 0 | 0 | 1,838 |
Other expenses | 414 | 1,310 | 1,361 |
Total expense | 8,500 | 8,766 | 10,328 |
Net income before income tax | 52,291 | 42,301 | 20,987 |
Income tax (expense) benefit | 1,661 | 2,726 | 3,031 |
Net income | $ 53,952 | $ 45,027 | $ 24,018 |
Condensed Unconsolidated Hold_5
Condensed Unconsolidated Holding Companies’ Financial Statements - Cash Flow Information (Details) - USD ($) $ in Thousands | Mar. 13, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash flows from operating activities | ||||
Net income | $ 45,833 | $ 43,057 | $ 23,579 | |
Net cash provided by operating activities | 62,161 | 73,282 | 75,268 | |
Cash flows from investing activities | ||||
Net cash provided by (used in) investing activities | 206,509 | 7,567 | (322,228) | |
Dividend paid | $ (40,000) | (40,000) | 0 | 0 |
Proceeds from common stock issued - Class A | 17,908 | 0 | 0 | |
Repurchase of common stock - Class B | (17,908) | 0 | 0 | |
Net cash (used in) provided by financing activities | (336,405) | (62,393) | 243,667 | |
Net (decrease) increase in cash and cash equivalents | (67,735) | 18,456 | (3,293) | |
Cash and cash equivalents | ||||
Beginning of period | 153,445 | 134,989 | 138,282 | |
End of period | 85,710 | 153,445 | 134,989 | |
Mercantil Bank Holding Corporation | Parent Company | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net income | 45,833 | 43,057 | 23,579 | |
Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries | (53,939) | (45,008) | (23,996) | |
Net change in other assets and liabilities | 438 | 1,337 | (2) | |
Net cash provided by operating activities | (7,668) | (614) | (419) | |
Cash flows from investing activities | ||||
Cash received upon Voting Trust termination | 639 | 0 | 0 | |
Dividends received from subsidiary | 47,500 | 700 | 400 | |
Net cash provided by (used in) investing activities | 48,139 | 700 | 400 | |
Dividend paid | (40,000) | 0 | 0 | |
Proceeds from common stock issued - Class A | 17,908 | 0 | 0 | |
Repurchase of common stock - Class B | (17,908) | 0 | 0 | |
Net cash (used in) provided by financing activities | (40,000) | 0 | 0 | |
Net (decrease) increase in cash and cash equivalents | 471 | 86 | (19) | |
Cash and cash equivalents | ||||
Beginning of period | 1,420 | 1,334 | 1,353 | |
End of period | 1,891 | 1,420 | 1,334 | |
Mercantil Florida Bancorp, Inc | Subsidiaries | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net income | 53,952 | 45,027 | 24,018 | |
Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries | (60,609) | (50,982) | (31,282) | |
Net change in other assets and liabilities | 490 | (4) | (35) | |
Net cash provided by operating activities | (6,167) | (5,959) | (7,299) | |
Cash flows from investing activities | ||||
Dividends received from subsidiary | 47,500 | 6,000 | 6,000 | |
Dividends paid | (47,500) | (700) | (400) | |
Net cash provided by (used in) investing activities | 0 | 5,300 | 5,600 | |
Net (decrease) increase in cash and cash equivalents | (6,167) | (659) | (1,699) | |
Cash and cash equivalents | ||||
Beginning of period | 39,089 | 39,748 | 41,447 | |
End of period | $ 32,922 | $ 39,089 | $ 39,748 |