0000354647 cvbf:DairyLivestockAndAgribusinessMember 2018-06-30
2019
California | 95-3629339 | |
(State or other jurisdiction of | (I.R.S. Employer | |
Incorporation or organization) | Identification No.) | |
701 North Haven Ave., Suite 350 | ||
Ontario, California | 91764 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, No Par Value | CVBF |
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The Nasdaq Stock Market, LLC |
(909)980-4030
(Registrant’s telephone number,
including area code)
Large accelerated filer | ☒ | |||||||
Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||
Emerging growth company | ☐ |
PART I – | 3 | |||||||
ITEM 1. | 5 | |||||||
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10 | ||||||||
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ITEM 2. | 41 | |||||||
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ITEM 3. | 71 | |||||||
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ITEM 4. | 71 | |||||||
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PART II – | 72 | |||||||
ITEM 1. | 72 | |||||||
ITEM 1A. | 72 | |||||||
ITEM 2. | 73 | |||||||
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ITEM 3. | 73 | |||||||
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ITEM 4. | 73 | |||||||
ITEM 5. | 73 | |||||||
ITEM 6. | 73 | |||||||
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September 30, | December 31, | |||||||
2018 | 2017 | |||||||
Assets | ||||||||
Cash and due from banks | $ | 174,083 | $ | 119,841 | ||||
Interest-earning balances due from Federal Reserve | 20,392 | 24,536 | ||||||
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Total cash and cash equivalents | 194,475 | 144,377 | ||||||
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Interest-earning balances due from depository institutions | 8,812 | 17,952 | ||||||
Investment securitiesavailable-for-sale, at fair value (with amortized cost of $1,850,723 at September 30, 2018, and $2,078,131 at December 31, 2017) | 1,806,231 | 2,080,985 | ||||||
Investment securitiesheld-to-maturity (with fair value of $726,755 at September 30, 2018, and $819,215 at December 31, 2017) | 759,029 | 829,890 | ||||||
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Total investment securities | 2,565,260 | 2,910,875 | ||||||
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Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | ||||||
Loans and lease finance receivables | 7,582,459 | 4,830,631 | ||||||
Allowance for loan losses | (60,007 | ) | (59,585 | ) | ||||
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Net loans and lease finance receivables | 7,522,452 | 4,771,046 | ||||||
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Premises and equipment, net | 59,256 | 46,166 | ||||||
Bank owned life insurance (BOLI) | 219,561 | 146,486 | ||||||
Accrued interest receivable | 30,097 | 22,704 | ||||||
Intangibles | 56,643 | 6,838 | ||||||
Goodwill | 662,888 | 116,564 | ||||||
Other real estate owned (OREO) | 420 | 4,527 | ||||||
Income taxes | 75,432 | 40,046 | ||||||
Other assets | 67,357 | 25,317 | ||||||
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Total assets | $ | 11,480,341 | $ | 8,270,586 | ||||
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Liabilities and Stockholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 5,224,154 | $ | 3,846,436 | ||||
Interest-bearing | 3,885,672 | 2,700,417 | ||||||
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Total deposits | 9,109,826 | 6,546,853 | ||||||
Customer repurchase agreements | 399,477 | 553,773 | ||||||
Other borrowings | 30,000 | - | ||||||
Deferred compensation | 19,159 | 18,223 | ||||||
Junior subordinated debentures | 25,774 | 25,774 | ||||||
Other liabilities | 77,525 | 56,697 | ||||||
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Total liabilities | 9,661,761 | 7,201,320 | ||||||
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Commitments and Contingencies | ||||||||
Stockholders’ Equity | ||||||||
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 140,334,671 at September 30, 2018, and 110,184,922 at December 31, 2017 | 1,299,052 | 573,453 | ||||||
Retained earnings | 552,343 | 494,361 | ||||||
Accumulated other comprehensive (loss) income, net of tax | (32,815 | ) | 1,452 | |||||
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Total stockholders’ equity | 1,818,580 | 1,069,266 | ||||||
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Total liabilities and stockholders’ equity | $ | 11,480,341 | $ | 8,270,586 | ||||
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September 30, 2019 | December 31, 2018 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 222,248 | $ | 144,008 | |||||
Interest-earning balances due from Federal Reserve | 215,300 | 19,940 | |||||||
Total cash and cash equivalents | 437,548 | 163,948 | |||||||
Interest-earning balances due from depository institutions | 5,673 | 7,670 | |||||||
Investment securities available-for-sale, at fair value (with amortized cost of $1,549,406 at September2019, and $1,757,666 at December 31, 2018) | 1,570,406 | 1,734,085 | |||||||
Investment securities held-to-maturity (with fair value of $711,891at September 30, 2019, and $721,537 at December 31, 2018) | 703,953 | 744,440 | |||||||
Total investment securities | 2,274,359 | 2,478,525 | |||||||
Investment in stock of Federal Home Loan Bank (FHLB) | 17,688 | 17,688 | |||||||
Loans and lease finance receivables | 7,494,451 | 7,764,611 | |||||||
Allowance for loan losses | (68,672 | ) | (63,613 | ) | |||||
Net loans and lease finance receivables | 7,425,779 | 7,700,998 | |||||||
Premises and equipment, net | 53,256 | 58,193 | |||||||
Bank owned life insurance (BOLI) | 224,841 | 220,758 | |||||||
Accrued interest receivable | 27,244 | 30,649 | |||||||
Intangibles | 45,446 | 53,784 | |||||||
Goodwill | 663,707 | 666,539 | |||||||
Other real estate owned (OREO) | 9,450 | 420 | |||||||
Income taxes | 44,630 | 62,174 | |||||||
Other assets | 103,141 | 67,807 | |||||||
Total assets | $ | 11,332,762 | $ | 11,529,153 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Liabilities: | |||||||||
Deposits: | |||||||||
Noninterest-bearing | $ | 5,385,104 | $ | 5,204,787 | |||||
Interest-bearing | 3,409,226 | 3,622,703 | |||||||
Total deposits | 8,794,330 | 8,827,490 | |||||||
Customer repurchase agreements | 407,850 | 442,255 | |||||||
Other borrowings | 4,914 | 280,000 | |||||||
Deferred compensation | 22,334 | 20,033 | |||||||
Junior subordinated debentures | 25,774 | 25,774 | |||||||
Other liabilities | 110,667 | 82,411 | |||||||
Total liabilities | 9,365,869 | 9,677,963 | |||||||
Commitments and Contingencies | |||||||||
Stockholders’ Equity | |||||||||
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 140,157,063 at September 30, 2019, and 140,000,017 at December 31, 2018 | 1,298,138 | 1,293,669 | |||||||
Retained earnings | 656,659 | 575,805 | |||||||
Accumulated other comprehensive income (loss), net of tax | 12,096 | (18,284 | ) | ||||||
Total stockholders’ equity | 1,966,893 | 1,851,190 | |||||||
Total liabilities and stockholders’ equity | $ | 11,332,762 | $ | 11,529,153 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest income: | ||||||||||||||||
Loans and leases, including fees | $ | 79,818 | $ | 55,998 | $ | 192,382 | $ | 158,253 | ||||||||
Investment securities: | ||||||||||||||||
Investment securitiesavailable-for-sale | 11,521 | 12,240 | 35,086 | 37,887 | ||||||||||||
Investment securitiesheld-to-maturity | 4,666 | 5,184 | 14,238 | 16,014 | ||||||||||||
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Total investment income | 16,187 | 17,424 | 49,324 | 53,901 | ||||||||||||
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Dividends from FHLB stock | 329 | 318 | 959 | 1,070 | ||||||||||||
Interest-earning deposits with other institutions and federal funds sold | 304 | 130 | 1,475 | 683 | ||||||||||||
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Total interest income | 96,638 | 73,870 | 244,140 | 213,907 | ||||||||||||
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Interest expense: | ||||||||||||||||
Deposits | 2,967 | 1,555 | 6,041 | 4,547 | ||||||||||||
Borrowings and customer repurchase agreements | 606 | 402 | 1,396 | 1,213 | ||||||||||||
Junior subordinated debentures | 245 | 174 | 674 | 492 | ||||||||||||
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Total interest expense | 3,818 | 2,131 | 8,111 | 6,252 | ||||||||||||
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Net interest income before (recapture of) provision for loan losses | 92,820 | 71,739 | 236,029 | 207,655 | ||||||||||||
(Recapture of) provision for loan losses | 500 | (1,500 | ) | (1,500 | ) | (7,000 | ) | |||||||||
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Net interest income after (recapture of) provision for loan losses | 92,320 | 73,239 | 237,529 | 214,655 | ||||||||||||
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Noninterest income: | ||||||||||||||||
Service charges on deposit accounts | 4,295 | 4,085 | 12,431 | 11,794 | ||||||||||||
Trust and investment services | 2,182 | 2,523 | 6,738 | 7,432 | ||||||||||||
Bankcard services | 875 | 927 | 2,637 | 2,563 | ||||||||||||
BOLI income | 936 | 692 | 2,984 | 2,904 | ||||||||||||
Gain on OREO, net | - | 2 | 3,540 | 4 | ||||||||||||
Other | 1,824 | 1,809 | 4,393 | 4,839 | ||||||||||||
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Total noninterest income | 10,112 | 10,038 | 32,723 | 29,536 | ||||||||||||
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Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 26,319 | 21,835 | 69,684 | 65,116 | ||||||||||||
Occupancy and equipment | 5,324 | 4,400 | 13,834 | 12,638 | ||||||||||||
Professional services | 1,154 | 1,091 | 4,374 | 4,191 | ||||||||||||
Software licenses and maintenance | 2,317 | 1,510 | 5,836 | 4,698 | ||||||||||||
Marketing and promotion | 1,134 | 1,055 | 3,638 | 3,484 | ||||||||||||
Amortization of intangible assets | 1,736 | 343 | 2,395 | 991 | ||||||||||||
Acquisition related expenses | 6,645 | 250 | 7,942 | 2,176 | ||||||||||||
Other | 4,251 | 4,222 | 11,377 | 12,402 | ||||||||||||
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Total noninterest expense | 48,880 | 34,706 | 119,080 | 105,696 | ||||||||||||
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Earnings before income taxes | 53,552 | 48,571 | 151,172 | 138,495 | ||||||||||||
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Income taxes | 14,994 | 18,888 | 42,328 | 51,935 | ||||||||||||
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Net earnings | $ | 38,558 | $ | 29,683 | $ | 108,844 | $ | 86,560 | ||||||||
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Other comprehensive income (loss): | ||||||||||||||||
Unrealized (loss) gain on securities arising during the period, before tax | $ | (10,387 | ) | $ | 1,221 | $ | (49,155 | ) | $ | 3,287 | ||||||
Less: Reclassification adjustment for net gain on securities included in net income | - | - | - | (402 | ) | |||||||||||
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Other comprehensive (loss) income, before tax | (10,387 | ) | 1,221 | (49,155 | ) | 2,885 | ||||||||||
Less: Income tax benefit (expense) related to items of other comprehensive income | 3,070 | (513 | ) | 14,532 | (1,212 | ) | ||||||||||
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Other comprehensive (loss) income, net of tax | (7,317 | ) | 708 | (34,623 | ) | 1,673 | ||||||||||
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Comprehensive income | $ | 31,241 | $ | 30,391 | $ | 74,221 | $ | 88,233 | ||||||||
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Basic earnings per common share | $ | 0.30 | $ | 0.27 | $ | 0.94 | $ | 0.79 | ||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.27 | $ | 0.94 | $ | 0.79 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Interest income: | |||||||||||||||||
Loans and leases, including fees | $ | 98,796 | $ | 79,818 | $ | 300,326 | $ | 192,382 | |||||||||
Investment securities: | |||||||||||||||||
Investment securities available-for-sale | 9,222 | 11,521 | 29,985 | 35,086 | |||||||||||||
Investment securities held-to-maturity | 4,298 | 4,666 | 13,249 | 14,238 | |||||||||||||
Total investment income | 13,520 | 16,187 | 43,234 | 49,324 | |||||||||||||
Dividends from FHLB stock | 301 | 329 | 931 | 959 | |||||||||||||
Interest-earning deposits with other institutions | 946 | 304 | 1,140 | 1,475 | |||||||||||||
Total interest income | 113,563 | 96,638 | 345,631 | 244,140 | |||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 4,589 | 2,967 | 12,553 | 6,041 | |||||||||||||
Borrowings and customer repurchase agreements | 568 | 606 | 3,555 | 1,396 | |||||||||||||
Junior subordinated debentures | 247 | 245 | 771 | 674 | |||||||||||||
Total interest expense | 5,404 | 3,818 | 16,879 | 8,111 | |||||||||||||
Net interest income before provision for (recapture of) loan losses | 108,159 | 92,820 | 328,752 | 236,029 | |||||||||||||
Provision for (recapture of) loan losses | 1,500 | 500 | 5,000 | (1,500 | ) | ||||||||||||
Net interest income after provision for (recapture of) loan losses | 106,659 | 92,320 | 323,752 | 237,529 | |||||||||||||
Noninterest income: | |||||||||||||||||
Service charges on deposit accounts | 4,833 | 4,295 | 15,039 | 12,431 | |||||||||||||
Trust and investment services | 2,330 | 2,182 | 6,964 | 6,738 | |||||||||||||
Bankcard services | 637 | 875 | 2,614 | 2,637 | |||||||||||||
BOLI income | 1,797 | 936 | 4,482 | 2,984 | |||||||||||||
Gain on OREO, net | - | - | 129 | 3,540 | |||||||||||||
Gain on sale of building, net | - | - | 4,545 | - | |||||||||||||
Gain on eminent domain condemnation, net | - | - | 5,685 | - | |||||||||||||
Other | 2,297 | 1,824 | 6,944 | 4,393 | |||||||||||||
Total noninterest income | 11,894 | 10,112 | 46,402 | 32,723 | |||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 30,122 | 26,319 | 88,286 | 69,684 | |||||||||||||
Occupancy and equipment | 5,092 | 5,324 | 16,348 | 13,834 | |||||||||||||
Professional services | 1,688 | 1,154 | 5,653 | 4,374 | |||||||||||||
Software licenses and maintenance | 2,450 | 2,317 | 7,414 | 5,836 | |||||||||||||
Marketing and promotion | 1,517 | 1,134 | 4,149 | 3,638 | |||||||||||||
Amortization of intangible assets | 2,648 | 1,736 | 8,338 | 2,395 | |||||||||||||
Acquisition related expenses | 244 | 6,645 | 6,005 | 7,942 | |||||||||||||
Other | 3,774 | 4,251 | 13,474 | 11,377 | |||||||||||||
Total noninterest expense | 47,535 | 48,880 | 149,667 | 119,080 | |||||||||||||
Earnings before income taxes | 71,018 | 53,552 | 220,487 | 151,172 | |||||||||||||
Income taxes | 20,595 | 14,994 | 63,941 | 42,328 | |||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | |||||||||
Other comprehensive income (loss): | |||||||||||||||||
Unrealized gain (loss) on securities arising during the period, before tax | $ | 5,423 | $ | (10,387 | ) | $ | 43,136 | $ | (49,155 | ) | |||||||
Less: Reclassification adjustment for net gain on securities included in net income | (5 | ) | - | (5 | ) | - | |||||||||||
Other comprehensive income (loss), before tax | 5,418 | (10,387 | ) | 43,131 | (49,155 | ) | |||||||||||
Less: Income tax (expense) benefit related to items of other comprehensive income | (1,602 | ) | 3,070 | (12,751 | ) | 14,532 | |||||||||||
Other comprehensive income (loss), net taxof | 3,816 | (7,317 | ) | 30,380 | (34,623 | ) | |||||||||||
Comprehensive income | $ | 54,239 | $ | 31,241 | $ | 186,926 | $ | 74,221 | |||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | |||||||||
Diluted earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 |
Three months ended September 30, 2018 and 2017
Accumulated | ||||||||||||||||||||
Common | Other | |||||||||||||||||||
Shares | Common | Retained | Comprehensive | |||||||||||||||||
Outstanding | Stock | Earnings | Income (Loss) | Total | ||||||||||||||||
Balance, January 1, 2017 | 108,252 | $ | 531,192 | $ | 449,499 | $ | 10,171 | $ | 990,862 | |||||||||||
Cumulative adjustment upon adoption of ASU2016-09 | - | 116 | (66 | ) | - | 50 | ||||||||||||||
Repurchase of common stock | (45 | ) | (997 | ) | - | - | (997 | ) | ||||||||||||
Issuance of common stock for acquisition of Valley Commerce Bancorp | 1,634 | 37,637 | - | - | 37,637 | |||||||||||||||
Exercise of stock options | 270 | 2,537 | - | - | 2,537 | |||||||||||||||
Shares issued pursuant to stock-based compensation plan | 46 | 2,200 | - | - | 2,200 | |||||||||||||||
Cash dividends declared on common stock ($0.40 per share) | - | - | (44,058 | ) | - | (44,058 | ) | |||||||||||||
Net earnings | - | - | 86,560 | - | 86,560 | |||||||||||||||
Other comprehensive income | - | - | - | 1,673 | 1,673 | |||||||||||||||
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Balance, September 30, 2017 | 110,157 | $ | 572,685 | $ | 491,935 | $ | 11,844 | $ | 1,076,464 | |||||||||||
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Balance, January 1, 2018 | 110,185 | $ | 573,453 | $ | 494,361 | $ | 1,452 | $ | 1,069,266 | |||||||||||
Cumulative adjustment upon adoption of ASU2018-02 | - | - | (356 | ) | 356 | - | ||||||||||||||
Repurchase of common stock | (42 | ) | (988 | ) | - | - | (988 | ) | ||||||||||||
Issuance of common stock for acquisition of Community Bank | 29,842 | 722,767 | - | - | 722,767 | |||||||||||||||
Exercise of stock options | 145 | 1,504 | - | - | 1,504 | |||||||||||||||
Shares issued pursuant to stock-based compensation plan | 205 | 2,316 | - | - | 2,316 | |||||||||||||||
Cash dividends declared on common stock ($0.42 per share) | - | - | (50,506 | ) | - | (50,506 | ) | |||||||||||||
Net earnings | - | - | 108,844 | - | 108,844 | |||||||||||||||
Other comprehensive income | - | - | - | (34,623 | ) | (34,623 | ) | |||||||||||||
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Balance, September 30, 2018 | 140,335 | $ | 1,299,052 | $ | 552,343 | $ | (32,815 | ) | $ | 1,818,580 | ||||||||||
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Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance, July 1, 2018 | 110,302 | $ | 575,502 | $ | 533,413 | $ | (25,498 | ) | $ | 1,083,417 | |||||||||||
Repurchase of common stock | (6 | ) | (151 | ) | - | - | (151 | ) | |||||||||||||
Issuance of common stock for acquisition of Community | 29,842 | 722,767 | - | - | 722,767 | ||||||||||||||||
Exercise of stock options | 7 | 87 | - | - | 87 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 190 | 847 | - | - | 847 | ||||||||||||||||
Cash dividends declared on common stock ($0.14 per | - | - | (19,628 | ) | - | (19,628 | ) | ||||||||||||||
Net earnings | - | - | 38,558 | - | 38,558 | ||||||||||||||||
Other comprehensive loss | - | - | - | (7,317 | ) | (7,317 | ) | ||||||||||||||
Balance, September 30, 2018 | 140,335 | $ | 1,299,052 | $ | 552,343 | $ | (32,815 | ) | $ | 1,818,580 | |||||||||||
Balance, July 1, 2019 | 140,142 | $ | 1,296,885 | $ | 631,512 | $ | 8,280 | $ | 1,936,677 | ||||||||||||
Repurchase of common stock | (34 | ) | (723 | ) | - | - | (723 | ) | |||||||||||||
Exercise of stock options | 15 | 155 | - | - | 155 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 34 | 1,821 | - | - | 1,821 | ||||||||||||||||
Cash dividends declared on common stock ($0.18 per | - | - | (25,276 | ) | - | (25,276 | ) | ||||||||||||||
Net earnings | - | - | 50,423 | - | 50,423 | ||||||||||||||||
Other comprehensive income | - | - | - | 3,816 | 3,816 | ||||||||||||||||
Balance, September 30, 2019 | 140,157 | $ | 1,298,138 | $ | 656,659 | $ | 12,096 | $ | 1,966,893 |
For the Nine Months Ended September 30, 2019 | Common Shares Outstanding | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||
Balance, January 1, 2018 | 110,185 | $ | 573,453 | $ | 494,361 | $ | 1,452 | $ | 1,069,266 | ||||||||||||
Cumulative adjustment upon adoption of ASU 2018-02 | - | - | (356 | ) | 356 | - | |||||||||||||||
Repurchase of common stock | (42 | ) | (988 | ) | - | - | (988 | ) | |||||||||||||
Issuance of common stock for acquisition of Community Bank | 29,842 | 722,767 | - | - | 722,767 | ||||||||||||||||
Exercise of stock options | 145 | 1,504 | - | - | 1,504 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 205 | 2,316 | - | - | 2,316 | ||||||||||||||||
Cash dividends declared on common stock ($0.42 per | - | - | (50,506 | ) | - | (50,506 | ) | ||||||||||||||
Net earnings | - | - | 108,844 | - | 108,844 | ||||||||||||||||
Other comprehensive lo s s | - | - | - | (34,623 | ) | (34,623 | ) | ||||||||||||||
Balance, September 30, 2018 | 140,335 | $ | 1,299,052 | $ | 552,343 | $ | (32,815 | ) | $ | 1,818,580 | |||||||||||
Balance, January 1, 2019 | 140,000 | $ | 1,293,669 | $ | 575,805 | $ | (18,284 | ) | $ | 1,851,190 | |||||||||||
Repurchase of common stock | (70 | ) | (1,535 | ) | - | - | (1,535 | ) | |||||||||||||
Exercise of stock options | 160 | 2,212 | - | - | 2,212 | ||||||||||||||||
Shares issued pursuant to stock-based compensation plan | 67 | 3,792 | - | - | 3,792 | ||||||||||||||||
Cash dividends declared on common stock ($0.54 per | - | - | (75,692 | ) | - | (75,692 | ) | ||||||||||||||
Net earnings | - | - | 156,546 | - | 156,546 | ||||||||||||||||
Other comprehensive income | - | - | - | 30,380 | 30,380 | ||||||||||||||||
Balance, September 30, 2019 | 140,157 | $ | 1,298,138 | $ | 656,659 | $ | 12,096 | $ | 1,966,893 |
For the Nine Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
Cash Flows from Operating Activities | ||||||||
Interest and dividends received | $ | 245,842 | $ | 223,172 | ||||
Service charges and other fees received | 26,107 | 26,769 | ||||||
Interest paid | (8,642 | ) | (6,279 | ) | ||||
Net cash paid to vendors, employees and others | (110,799 | ) | (83,610 | ) | ||||
Income taxes | (35,879 | ) | (53,278 | ) | ||||
Payments to FDIC, loss share agreement | (65 | ) | (498 | ) | ||||
|
|
|
|
|
| |||
Net cash provided by operating activities | 116,564 | 106,276 | ||||||
|
|
|
|
|
| |||
Cash Flows from Investing Activities | ||||||||
Proceeds from redemption of FHLB stock | 17,250 | 1,952 | ||||||
Net change in interest-earning balances from depository institutions | 11,934 | 27,806 | ||||||
Proceeds from sale of investment securitiesheld-for-sale | 716,996 | 5,403 | ||||||
Proceeds from repayment of investment securitiesavailable-for-sale | 296,922 | 320,599 | ||||||
Proceeds from maturity of investment securitiesavailable-for-sale | 20,260 | 20,937 | ||||||
Purchases of investment securitiesavailable-for-sale | (98,709 | ) | (280,365 | ) | ||||
Proceeds from repayment and maturity of investment securitiesheld-to-maturity | 67,861 | 96,447 | ||||||
Purchases of investment securitiesheld-to-maturity | - | (36,166 | ) | |||||
Net increase in equity investments | (24,054 | ) | (1,454 | ) | ||||
Net increase in loan and lease finance receivables | (6,806 | ) | (29,713 | ) | ||||
Proceeds from BOLI death benefit | 882 | 2,653 | ||||||
Proceeds from sale of assetheld-for-sale | - | 4,012 | ||||||
Purchase of premises and equipment | (3,483 | ) | (3,129 | ) | ||||
Proceeds from sales of other real estate owned | 8,067 | - | ||||||
Cash acquired from acquisition, net of cash paid | (132,918 | ) | 28,325 | |||||
|
|
|
|
|
| |||
Net cash provided by investing activities | 874,202 | 157,307 | ||||||
|
|
|
|
|
| |||
Cash Flows from Financing Activities | ||||||||
Net increase in other deposits | (241,934 | ) | (23,896 | ) | ||||
Net decrease in time deposits | (65,079 | ) | (39,485 | ) | ||||
Repayment of FHLB advances | (297,571 | ) | - | |||||
Net (decrease) increase in other borrowings | (136,000 | ) | 10,000 | |||||
Net decrease in customer repurchase agreements | (154,296 | ) | (147,959 | ) | ||||
Cash dividends on common stock | (46,304 | ) | (41,626 | ) | ||||
Repurchase of common stock | (988 | ) | (997 | ) | ||||
Proceeds from exercise of stock options | 1,504 | 2,537 | ||||||
|
|
|
|
|
| |||
Net cash used in financing activities | (940,668 | ) | (241,426 | ) | ||||
|
|
|
|
|
| |||
Net increase in cash and cash equivalents | 50,098 | 22,157 | ||||||
Cash and cash equivalents, beginning of period | 144,377 | 121,633 | ||||||
|
|
|
|
|
| |||
Cash and cash equivalents, end of period | $ | 194,475 | $ | 143,790 | ||||
|
|
|
|
|
|
For the Nine Months Ended September 30, | |||||||||
2019 | 2018 | ||||||||
Cash Flows from Operating Activities | |||||||||
Interest and dividends received | $ | 331,953 | 245,842 | ||||||
Service charges and other fees received | 31,441 | 26,107 | |||||||
Interest paid | (16,155 | ) | (8,642 | ) | |||||
Net cash paid to vendors, employees and others | (140,482 | ) | (110,799 | ) | |||||
Income taxes | (59,347 | ) | (35,879 | ) | |||||
Payments to FDIC, loss share agreement | - | (65 | ) | ||||||
Net cash provided by operating activities | 147,410 | 116,564 | |||||||
Cash Flows from Investing Activities | |||||||||
Proceeds from redemption of FHLB stock | - | 17,250 | |||||||
Net change in interest-earning balances from depository institutions | 1,997 | 11,934 | |||||||
Proceeds from sale of investment securities held-for-sale | 152,644 | 716,996 | |||||||
Proceeds from repayment of investment securities available-for-sale | 268,766 | 296,922 | |||||||
Proceeds from maturity of investment securities available-for-sale | 6,059 | 20,260 | |||||||
Purchases of investment securities available-for-sale | (225,416 | ) | (98,709 | ) | |||||
Proceeds from repayment and maturity of investment securities held-to-maturity | 81,001 | 67,861 | |||||||
Purchases of investment securities held-to-maturity | (42,917 | ) | - | ||||||
Net increase in equity investments | (3,511 | ) | (24,054 | ) | |||||
Net decrease (increase) in loan and lease finance receivables | 289,490 | (6,806 | ) | ||||||
Proceeds on eminent domain condemnation, net | 5,685 | - | |||||||
Proceeds from sale of building, net | 5,487 | - | |||||||
Purchase of premises and equipment | (3,061 | ) | (3,483 | ) | |||||
Proceeds from BOLI death benefit | 1,509 | 882 | |||||||
Proceeds from sales of other real estate owned | 523 | 8,067 | |||||||
Cash acquired from acquisition, net of cash paid | - | (132,918 | ) | ||||||
Net cash provided by investing activities | 538,256 | 874,202 | |||||||
Cash Flows from Financing Activities | |||||||||
Net increase (decrease) in other deposits | 37,061 | (241,934 | ) | ||||||
Net decrease in time deposits | (70,221 | ) | (65,079 | ) | |||||
Repayment of FHLB advances | - | (297,571 | ) | ||||||
Net decrease in other borrowings | (275,086 | ) | (136,000 | ) | |||||
Net decrease in customer repurchase agreements | (34,405 | ) | (154,296 | ) | |||||
Cash dividends on common stock | (70,092 | ) | (46,304 | ) | |||||
Repurchase of common stock | (1,535 | ) | (988 | ) | |||||
Proceeds from exercise of stock options | 2,212 | 1,504 | |||||||
Net cash used in financing activities | (412,066 | ) | (940,668 | ) | |||||
Net increase in cash and cash equivalents | 273,600 | 50,098 | |||||||
Cash and cash equivalents, beginning of period | 163,948 | 144,377 | |||||||
Cash and cash equivalents, end of period | $ | 437,548 | $ | 194,475 | |||||
For the Nine Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities | ||||||||
Net earnings | $ | 108,844 | $ | 86,560 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Gain loss on sale of investment securities | - | (402 | ) | |||||
Gain on sale of other real estate owned | (3,540 | ) | - | |||||
Increase in BOLI | (3,053 | ) | (4,416 | ) | ||||
Net amortization of premiums and discounts on investment securities | 10,661 | 13,585 | ||||||
Accretion of PCI discount | (2,137 | ) | (756 | ) | ||||
Recapture of provision for loan losses | (1,500 | ) | (7,000 | ) | ||||
Payments to FDIC, loss share agreement | (65 | ) | (498 | ) | ||||
Stock-based compensation | 2,316 | 2,200 | ||||||
Depreciation and amortization, net | (582 | ) | (433 | ) | ||||
Change in other assets and liabilities | 5,620 | 17,436 | ||||||
|
|
|
|
|
| |||
Total adjustments | 7,720 | 19,716 | ||||||
|
|
|
|
|
| |||
Net cash provided by operating activities | $ | 116,564 | $ | 106,276 | ||||
|
|
|
|
|
| |||
Supplemental Disclosure ofNon-cash Investing Activities | ||||||||
Securities purchased and not settled | $ | - | $ | 1,625 | ||||
Transfer of loans to other real estate owned | $ | 420 | $ | - | ||||
Issuance of common stock for acquisition | $ | 722,767 | $ | 37,637 |
For the Nine Months Ended September 30, | |||||||||
2019 | 2018 | ||||||||
Reconciliation of Net Earnings to Net Cash Provided by Operating Activities | |||||||||
Net earnings | 156,546 | 108,844 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||
Gain on sale of investment securities, net | (5 | ) | - | ||||||
Gain on eminent domain condemnation, net | (5,685 | ) | - | ||||||
Gain on sale of building, net | (4,545 | ) | - | ||||||
Gain on sale of other real estate owned | (105 | ) | (3,540 | ) | |||||
Increase in BOLI | (5,592 | ) | (3,053 | ) | |||||
Net amortization of premiums and discounts on investment securities | 7,593 | 10,661 | |||||||
Accretion of discount for acquired loans, net | (22,369 | ) | (6,889 | ) | |||||
Provision for (recapture of) loan losses | 5,000 | (1,500 | ) | ||||||
Payments to FDIC, loss share agreement | - | (65 | ) | ||||||
Stock-based compensation | 3,792 | 2,316 | |||||||
Depreciation and amortization, net | 16,993 | 4,146 | |||||||
Change in other assets and liabilities | (4,213 | ) | 5,644 | ||||||
Total adjustments | (9,136 | ) | 7,720 | ||||||
Net cash provided by operating activities | $ | 147,410 | | 116,564 | |||||
Supplemental Disclosure of Non-cash Investing Activities | |||||||||
Transfer of loans to other real estate owned | $ | 9,450 | $ | 420 | |||||
Issuance of common stock for acquisition | $ | - | $ | 722,767 |
1. | BUSINESS |
2. | BASIS OF PRESENTATION |
3. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Business Segments — We regularly assess our strategic plans, operations and reporting structures to identify our reportable segments. Changes to our reportable segments are expected to be infrequent. For the years ended December 31, 2016 through June 30, 2018, we operated as two reportable segments: Banking Centers and Dairy & Livestock and Agribusiness. As a result of the Community Bank acquisition, along with changes in personnel, reporting structure, and operations, were-evaluated our segment reporting for the third quarter ended September 30, 2018.
As of September 30, 2018, we operated as one reportable segment. The factors considered in making this determination include the nature of products and offered services, geographic regions in which we operate, the applicable regulatory environment, and the materiality of discrete financial information reviewed by our key decision makers. Through our network of banking centers, we provide relationship-based banking products, services and solutions for small tomid-sized companies, real estate investors,non-profit organizations, professionals and other individuals. Our products include loans for commercial businesses, commercial real estate, multi-family, construction, land, dairy & livestock and agribusiness, consumer and government-guaranteed small business loans. We also provide business deposit products and treasury cash management services, as well as deposit products to the owners and employees of the businesses we serve. The decision to combine our two reportable segments was made to align the segment reporting with the changes in our operations and reporting structure, and to be consistent with the level and materiality of information reviewed by our key decision makers.
In January 2016, the FASB issued ASUNo. 2016-01, “Financial Instruments—Overall (Subtopic825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The guidance in this ASU among other things, (i) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related toavailable-for-sale securities. This amendment is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Entities are required to apply the amendment by means of a cumulative-effect adjustment as of the beginning of the fiscal year of adoption, with the exception of the amendment related to equity securities without readily determinable fair values, which should be applied prospectively to equity investments that exist as of the date of adoption. The Company adopted ASU2016-01 effective January 1, 2018 and it did not have a material impact on the Company’s consolidated financial statements. In accordance with (iv) above, the Company measured the fair value of its loan portfolio at September 30, 2018 using an exit price notion. See Note 9 –Fair Value Information.
In August 2016, the FASB issued ASUNo. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The new guidance clarifies the classification within the statement of cash flows for certain transactions, including debt extinguishment costs,zero-coupon debt, and contingent consideration related to business combinations, insurance proceeds, equity method distributions and beneficial interests in securitizations. The guidance also clarifies that cash flows with aspects of multiple classes of cash flows, or that cannot be separated by source or use, should be classified based on the activity that is likely to be the predominant source or use of cash flows for the item. This guidance is effective for fiscal years beginning after December 15, 2017 and will require application using a retrospective transition method. The Company adopted this ASU retrospectively effective January 1, 2018 and it did not have a material impact on the Company’s consolidated financial statements.
In May 2017, the FASB issued ASUNo. 2017-09, “Compensation – Stock Compensation
Recent Accounting Pronouncements — financial statements.
In July 2018, the FASB issued ASUNo. “LeasesImprovements”Improvements
In addition, there are a numberexercise such options.
In August 2017, the FASB issued ASUNo. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” ASU2017-12 changes the recognition and presentation requirements of hedge accounting and makes certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this ASU better align an entity’s financial reporting and risk management activities for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for bothnon-financial 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. ASUNo. 2017-12 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The Company currently does not designate any derivative financial instruments as qualifying hedging relationships, and therefore, does not utilize hedge accounting. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements.
In June 2018, the FASB issued ASUNo. 2018-07, “Compensation - Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting.” The intention of ASU2018-07 is to expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. These share-based payments will now be measured at grant-date fair value of the equity instrument issued. Upon adoption, only liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established should be re-measured through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU2018-07 is effective for fiscal years beginning after December 15, 2019 and is applied retrospectively. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASUNo. “Fair
4. | BUSINESS COMBINATIONS |
The systems integration of CB and CBB was completed in November 2018. The consolidation of banking centers was completed during the second quarter of 2019, in which 42018. As2018 acquisition date.final CB tax return has not yet been completed, initial accounting for taxes was incomplete assecond quarter of September 30, 2018. These2019.values are estimates and are subject to adjustment for up to one year after the acquisition date or when additional information relative to the closing date fair values becomes available and such information is considered final, whichever is earlier.value of impaired loans. The application of the acquisition method of accounting resulted in the recognition of goodwill of $546.3$547.1 million and a core deposit intangible (“CDI”) of $52.2 million, or 2.26% of core deposits. Goodwill represents the excess purchase price over the fair value of the net assets acquired. Goodwill is not deductible for income tax purposes. August 10, 2018(Dollars in thousands)Merger ConsiderationCash paid $180,719 CVBF common stock issued722,767 $ Assets AcquiredCash and cash equivalents47,802Investment securities716,996FHLB stock17,250Loans2,734,081Accrued interest receivable7,916Premises and equipment14,632BOLI70,904Core deposit intangible52,200Other assets58,130Total assets acquired 3,719,911Liabilities assumed Deposits2,869,986FHLB advances297,571Other borrowings166,000Other liabilities29,192Total liabilities assumed 3,362,749 357,162 Goodwill $ 546,324
For
respectively.
Unaudited Pro Forma Nine Months Ended September 30, | ||||||||
2018 | 2017 | |||||||
(Dollars in thousands) | ||||||||
Total revenues (net interest income plus noninterest income) | $ | 364,846 | $ | 354,990 | ||||
Net Income | $ | 138,274 | $ | 118,419 | ||||
Earnings per share - basic | $ | 0.99 | $ | 0.85 | ||||
Earnings per share - diluted | $ | 0.99 | $ | 0.85 |
Valley Commerce Bancorp Acquisition
On March 10, 2017, the Company completed the acquisition $ $ $ $ $ $ $ $
5. | INVESTMENT SECURITIES |
September 30, 2018 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,570,072 | $ | 1,014 | $ | (38,208 | ) | $ | 1,532,878 | 84.87 | % | |||||||||
CMO/REMIC - residential | 229,832 | 152 | (6,167 | ) | 223,817 | 12.39 | % | |||||||||||||
Municipal bonds | 50,022 | 308 | (1,591 | ) | 48,739 | 2.70 | % | |||||||||||||
Other securities | 797 | - | - | 797 | 0.04 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalavailable-for-sale securities | $ | 1,850,723 | $ | 1,474 | $ | (45,966 | ) | $ | 1,806,231 | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 144,871 | $ | - | $ | (5,129 | ) | $ | 139,742 | 19.09 | % | |||||||||
Residential mortgage-backed securities | 158,769 | - | (5,502 | ) | 153,267 | 20.92 | % | |||||||||||||
CMO | 216,980 | - | (13,960 | ) | 203,020 | 28.58 | % | |||||||||||||
Municipal bonds | 238,409 | 225 | (7,908 | ) | 230,726 | 31.41 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalheld-to-maturity securities | $ | 759,029 | $ | 225 | $ | (32,499) | $ | 726,755 | 100.00 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,127,395 | $ | 20,105 | $ | (1,341 | ) | $ | 1,146,159 | 72.99 | % | ||||||||||
CMO/REMIC - residential | 381,615 | 1,649 | (336 | ) | 382,928 | 24.38 | % | ||||||||||||||
Municipal bonds | 39,564 | 924 | (1 | ) | 40,487 | 2.58 | % | ||||||||||||||
Other securities | 832 | - | - | 832 | 0.05 | % | |||||||||||||||
Total available-for-sale securities | $ | 1,549,406 | $ | 22,678 | $ | (1,678 | ) | | $ | 1,570,406 | 100.00 | % | |||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 123,917 | $ | 3,238 | $ | (170 | ) | $ | 126,985 | 17.60 | % | ||||||||||
Residential mortgage-backed securities | 172,919 | 2,624 | (3 | ) | 175,540 | 24.56 | % | ||||||||||||||
CMO | 204,263 | 76 | (1,467 | ) | 202,872 | 29.02 | % | ||||||||||||||
Municipal bonds | 202,854 | 4,198 | (558 | ) | 206,494 | 28.82 | % | ||||||||||||||
Total held-to-maturity securities | $ | 703,953 | $ | 10,136 | $ | (2,198 | ) | $ | 711,891 | 100.00 | % | ||||||||||
December 31, 2018 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | T otal Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,494,106 | $ | 1,348 | $ | (20,946 | ) | $ | 1,474,508 | 85.03 | % | ||||||||||
CMO/REMIC - residential | 217,223 | 353 | (3,525 | ) | 214,051 | 12.34 | % | ||||||||||||||
Municipal bonds | 45,621 | 332 | (1,143 | ) | 44,810 | 2.59 | % | ||||||||||||||
Other securities | 716 | - | - | 716 | 0.04 | % | |||||||||||||||
Total available-for-sale securities | $ | 1,757,666 | $ | 2,033 | $ | (25,614 | ) | $ | 1,734,085 | 100.00 | % | ||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 138,274 | $ | 572 | $ | (2,622 | ) | $ | 136,224 | 18.57 | % | ||||||||||
Residential mortgage-backed securities | 153,874 | - | (3,140 | ) | 150,734 | 20.67 | % | ||||||||||||||
CMO | 215,336 | - | (12,081 | ) | 203,255 | 28.93 | % | ||||||||||||||
Municipal bonds | 236,956 | 556 | (6,188 | ) | 231,324 | 31.83 | % | ||||||||||||||
Total held-to-maturity securities | $ | 744,440 | $ | 1,128 | $ | (24,031 | ) | $ | 721,537 | 100.00 | % |
December 31, 2017 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,747,780 | $ | 11,231 | $ | (8,102 | ) | $ | 1,750,909 | 84.14 | % | |||||||||
CMO/REMIC-residential | 274,634 | 1,277 | (2,082 | ) | 273,829 | 13.16 | % | |||||||||||||
Municipal bonds | 54,966 | 774 | (244 | ) | 55,496 | 2.66 | % | |||||||||||||
Other securities | 751 | - | - | 751 | 0.04 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalavailable-for-sale securities | $ | 2,078,131 | $ | 13,282 | $ | (10,428 | ) | $ | 2,080,985 | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 159,716 | $ | 854 | $ | (2,134 | ) | $ | 158,436 | 19.25 | % | |||||||||
Residential mortgage-backed securities | 176,427 | 667 | (382 | ) | 176,712 | 21.26 | % | |||||||||||||
CMO | 225,072 | - | (8,641 | ) | 216,431 | 27.12 | % | |||||||||||||
Municipal bonds | 268,675 | 2,751 | (3,790 | ) | 267,636 | 32.37 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalheld-to-maturity securities | $ | 829,890 | $ | 4,272 | $ | (14,947) | $ | 819,215 | 100.00 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||
Taxable | $ | 11,126 | $ | 11,767 | $ | 33,861 | $ | 36,113 | ||||||||
Tax-advantaged | 395 | 473 | 1,225 | 1,774 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest income fromavailable-for-sale securities | 11,521 | 12,240 | 35,086 | 37,887 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Investment securitiesheld-to-maturity: | ||||||||||||||||
Taxable | 2,961 | 3,111 | 8,887 | 9,591 | ||||||||||||
Tax-advantaged | 1,705 | 2,073 | 5,351 | 6,423 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest income fromheld-to-maturity securities | 4,666 | 5,184 | 14,238 | 16,014 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest income from investment securities | $ | 16,187 | $ | 17,424 | $ | 49,324 | $ | 53,901 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||
Taxable | $ | 8,949 | $ | 11,126 | $ | 29,079 | $ | 33,861 | |||||||||
Tax-advantaged | 273 | 395 | 906 | 1,225 | |||||||||||||
Total interest income from available-for-sale securities | 9,222 | 11,521 | 29,985 | 35,086 | |||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||
Taxable | 2,883 | 2,961 | 8,725 | 8,887 | |||||||||||||
Tax-advantaged | 1,415 | 1,705 | 4,524 | 5,351 | |||||||||||||
Total interest income from held-to-maturity securities | 4,298 | 4,666 | 13,249 | 14,238 | |||||||||||||
Total interest income from investment securities | $ | 13,520 | $ | 16,187 | $ | 43,234 | $ | 49,324 | |||||||||
September 30, 2019 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 2 | $ | - | $ | 127,904 | $ | (1,341 | ) | $ | 127,906 | $ | (1,341 | ) | |||||||||||
CMO/REMIC - residential | 122,595 | (156 | ) | 39,498 | (180 | ) | 162,093 | (336 | ) | ||||||||||||||||
Municipal bonds | - | - | 564 | (1 | ) | 564 | (1 | ) | |||||||||||||||||
Total available-for-sale securities | $ | 122,597 | $ | (156 | ) | $ | 167,966 | $ | (1,522 | ) | $ | 290,563 | $ | (1,678 | ) | ||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||
Government agency/GSE | $ | - | $ | - | $ | 19,923 | $ | (170 | ) | $ | 19,923 | $ | (170 | ) | |||||||||||
Residential mortgage-backed securities | 5,021 | (3 | ) | - | - | 5,021 | (3 | ) | |||||||||||||||||
CMO | - | - | 178,297 | (1,467 | ) | 178,297 | (1,467 | ) | |||||||||||||||||
Municipal bonds | 3,037 | (5 | ) | 32,217 | (553 | ) | 35,254 | (558 | ) | ||||||||||||||||
Total held-to-maturity securities | $ | 8,058 | $ | (8 | ) | $ | 230,437 | $ | (2,190 | ) | $ | 238,495 | $ | (2,198 | ) |
September 30, 2018 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,193,435 | $ | (24,475 | ) | $ | 287,707 | $ | (13,733 | ) | $ | 1,481,142 | $ | (38,208 | ) | |||||||||
CMO/REMIC - residential | 139,064 | (3,053 | ) | 60,925 | (3,114 | ) | 199,989 | (6,167 | ) | |||||||||||||||
Municipal bonds | 11,257 | (389 | ) | 12,987 | (1,202 | ) | 24,244 | (1,591 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalavailable-for-sale securities | $ | 1,343,756 | $ | (27,917 | ) | $ | 361,619 | $ | (18,049 | ) | $ | 1,705,375 | $ | (45,966 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||||||
Government agency/GSE | $ | 99,203 | $ | (2,326 | ) | $ | 40,539 | $ | (2,803 | ) | $ | 139,742 | $ | (5,129 | ) | |||||||||
Residential mortgage-backed securities | 101,083 | (3,206 | ) | 52,184 | (2,296 | ) | 153,267 | (5,502 | ) | |||||||||||||||
CMO | - | - | 203,020 | (13,960 | ) | 203,020 | (13,960 | ) | ||||||||||||||||
Municipal bonds | 116,918 | (2,143 | ) | 67,284 | (5,765 | ) | 184,202 | (7,908 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalheld-to-maturity securities | $ | 317,204 | $ | (7,675 | ) | $ | 363,027 | $ | (24,824 | ) | $ | 680,231 | $ | (32,499 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
December 31, 2017 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 414,091 | $ | (1,828 | ) | $ | 303,746 | $ | (6,274 | ) | $ | 717,837 | $ | (8,102 | ) | |||||||||
CMO/REMIC - residential | 95,137 | (487 | ) | 71,223 | (1,595 | ) | 166,360 | (2,082 | ) | |||||||||||||||
Municipal bonds | 946 | (4 | ) | 13,956 | (240 | ) | 14,902 | (244 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalavailable-for-sale securities | $ | 510,174 | $ | (2,319 | ) | $ | 388,925 | $ | (8,109 | ) | $ | 899,099 | $ | (10,428 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||||||
Government agency/GSE | $ | 18,950 | $ | (27 | ) | $ | 43,495 | $ | (2,107 | ) | $ | 62,445 | $ | (2,134 | ) | |||||||||
Residential mortgage-backed securities | 51,297 | (188 | ) | 55,306 | (194 | ) | 106,603 | (382 | ) | |||||||||||||||
CMO | - | - | 216,431 | (8,641 | ) | 216,431 | (8,641 | ) | ||||||||||||||||
Municipal bonds | 32,069 | (492 | ) | 66,217 | (3,298 | ) | 98,286 | (3,790 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalheld-to-maturity securities | $ | 102,316 | $ | (707 | ) | $ | 381,449 | $ | (14,240 | ) | $ | 483,765 | $ | (14,947 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
Residential mortgage-backed securities | $ | 692,311 | $ | (4,864 | ) | $ | 593,367 | $ | (16,082 | ) | $ | 1,285,678 | $ | (20,946 | ) | ||||||||
CMO/REMIC - residential | 36,582 | (365 | ) | 135,062 | (3,160 | ) | 171,644 | (3,525 | ) | ||||||||||||||
Municipal bonds | 9,568 | (188 | ) | 14,181 | (955 | ) | 23,749 | (1,143 | ) | ||||||||||||||
Total available-for-sale securities | $ | 738,461 | $ | (5,417 | ) | $ | 742,610 | $ | (20,197 | ) | $ | 1,481,071 | $ | (25,614 | ) | ||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||
Government agency/GSE | $ | 7,479 | $ | (15 | ) | $ | 54,944 | $ | (2,607 | ) | $ | 62,423 | $ | (2,622 | ) | ||||||||
Residential mortgage-backed securities | 59,871 | (484 | ) | 90,863 | (2,656 | ) | 150,734 | (3,140 | ) | ||||||||||||||
CMO | - | - | 203,254 | (12,081 | ) | 203,254 | (12,081 | ) | |||||||||||||||
Municipal bonds | 70,989 | (778 | ) | 77,723 | (5,410 | ) | 148,712 | (6,188 | ) | ||||||||||||||
Total held-to-maturity securities | $ | 138,339 | $ | (1,277 | ) | $ | 426,784 | $ | (22,754 | ) | $ | 565,123 | $ | (24,031 | ) | ||||||||
September 30, 2019 | |||||||||||||||||
Available-for-sale | Held-to-maturity | ||||||||||||||||
Amortized Cost | Fair Value | Cost | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Due in one year or less | $ | 12,278 | $ | 12,426 | $ | 500 | $ | 500 | |||||||||
Due after one year through five years | 1,345,036 | 1,364,026 | 327,802 | 328,561 | |||||||||||||
Due after five years through ten years | 171,657 | 173,033 | 161,463 | 163,676 | |||||||||||||
Due after ten years | 20,435 | 20,921 | 214,188 | 219,154 | |||||||||||||
Total investment securities | $ | 1,549,406 | $ | 1,570,406 | $ | 703,953 | $ | 711,891 |
September 30, 2018 | ||||||||||||||||
Available-for-sale | Held-to-maturity | |||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Due in one year or less | $ | 19,806 | $ | 19,964 | $ | - | $ | - | ||||||||
Due after one year through five years | 1,676,348 | 1,637,053 | 315,036 | 298,729 | ||||||||||||
Due after five years through ten years | 113,539 | 109,910 | 172,281 | 167,824 | ||||||||||||
Due after ten years | 41,030 | 39,304 | 271,712 | 260,202 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total investment securities | $ | 1,850,723 | $ | 1,806,231 | $ | 759,029 | $ | 726,755 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
6. |
|
FDIC Assisted Acquisition
On
2018. At September 30, 2019 and December 31, 2018, the remaining discount associated with the PCI loans was zero. The loss sharing agreementzero and our total gross PCI loan portfolio represented less than 0.2% of total gross loans and leases at September 30, 2019 and December 31, 2018.
The following table provides a summary of PCIand were reflected in total loans and lease finance receivables by type and by internal risk ratings (credit quality indicators) for the periods indicated.
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Commercial and industrial | $ | 459 | $ | 934 | ||||
SBA | 1,286 | 1,383 | ||||||
Real estate: | ||||||||
Commercial real estate | 14,979 | 27,431 | ||||||
Construction | - | - | ||||||
SFR mortgage | 150 | 162 | ||||||
Dairy & livestock and agribusiness | 200 | 770 | ||||||
Municipal lease finance receivables | - | - | ||||||
Consumer and other loans | 186 | 228 | ||||||
|
|
|
|
|
| |||
Gross PCI loans | 17,260 | 30,908 | ||||||
Less: Purchase accounting discount | - | (2,026 | ) | |||||
|
|
|
|
|
| |||
Gross PCI loans, net of discount | 17,260 | 28,882 | ||||||
Less: Allowance for PCI loan losses | (205 | ) | (367 | ) | ||||
|
|
|
|
|
| |||
Net PCI loans | $ | 17,055 | $ | 28,515 | ||||
|
|
|
|
|
|
Credit Quality Indicators
The following table summarizes gross PCI loans by internal risk ratings for the periods indicated.
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Pass | $ | 15,775 | $ | 26,439 | ||||
Special mention | 1,251 | 1,088 | ||||||
Substandard | 234 | 3,381 | ||||||
Doubtful & loss | - | - | ||||||
|
|
|
|
|
| |||
Total gross PCI loans | $ | 17,260 | $ | 30,908 | ||||
|
|
|
|
|
|
|
The following table provides a summary of the Company’s total loans and lease finance receivables excluding PCI loans, by type.
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Commercial and industrial | $ | 1,021,906 | $ | 513,325 | ||||
SBA | 357,052 | 122,055 | ||||||
Real estate: | ||||||||
Commercial real estate | 5,268,740 | 3,376,713 | ||||||
Construction | 123,274 | 77,982 | ||||||
SFR mortgage | 292,516 | 236,202 | ||||||
Dairy & livestock and agribusiness | 304,598 | 347,289 | ||||||
Municipal lease finance receivables | 67,581 | 70,243 | ||||||
Consumer and other loans | 134,796 | 64,229 | ||||||
|
|
|
|
|
| |||
Gross loans, excluding PCI loans | 7,570,463 | 4,808,038 | ||||||
Less: Deferred loan fees, net | (5,264 | ) | (6,289 | ) | ||||
|
|
|
|
|
| |||
Gross loans, excluding PCI loans, net of deferred loan fees | 7,565,199 | 4,801,749 | ||||||
Less: Allowance for loan losses | (59,802 | ) | (59,218 | ) | ||||
|
|
|
|
|
| |||
Net loans, excluding PCI loans | 7,505,397 | 4,742,531 | ||||||
|
|
|
|
|
| |||
PCI Loans | 17,260 | 30,908 | ||||||
Discount on PCI loans | - | (2,026 | ) | |||||
Less: Allowance for loan losses | (205 | ) | (367 | ) | ||||
|
|
|
|
|
| |||
PCI loans, net | 17,055 | 28,515 | ||||||
|
|
|
|
|
| |||
Total loans and lease finance receivables | $ | 7,522,452 | $ | 4,771,046 | ||||
|
|
|
|
|
|
September 30, 2019 | December 31, 2018 | |||||||||||||||
Total Loans and Leases | Non-PCI Loansand Leases | PCI Loans | Total Loans and Leases | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial and industrial | $ | 921,678 | $ | 1,002,209 | $ | 519 | 1,002,728 | |||||||||
SBA | 319,571 | 350,043 | 1,258 | 351,301 | ||||||||||||
Real estate: | ||||||||||||||||
Commercial real estate | 5,375,668 | 5,394,229 | 14,407 | 5,408,636 | ||||||||||||
Construction | 119,931 | 122,782 | - | 122,782 | ||||||||||||
SFR mortgage | 278,644 | 296,504 | 145 | 296,649 | ||||||||||||
Dairy & livestock and agribusiness | 311,229 | 393,843 | 700 | 394,543 | ||||||||||||
Municipal lease finance receivables | 54,468 | 64,186 | - | 64,186 | ||||||||||||
Consumer and other loans | 117,128 | 128,429 | 185 | 128,614 | ||||||||||||
Gross loans | 7,498,317 | 7,752,225 | 17,214 | 7,769,439 | ||||||||||||
Less: Deferred loan fees, net | (3,866 | ) | (4,828 | ) | - | (4,828 | ) | |||||||||
Gross loans, net of deferred loan fees | 7,494,451 | 7,747,397 | 17,214 | 7,764,611 | ||||||||||||
Less: Allowance for loan losses | (68,672 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | ||||||||
Total loans and lease finance receivables | $ | 7,425,779 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 | ||||||||
2018.
2018.
September 30, 2018 | ||||||||||||||||||||
Pass | Special Mention | Substandard (1) | Doubtful & Loss | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 980,421 | $ | 33,628 | $ | 7,857 | $ | - | $ | 1,021,906 | ||||||||||
SBA | 345,126 | 5,469 | 6,457 | - | 357,052 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | 1,931,062 | 97,990 | 12,079 | - | 2,041,131 | |||||||||||||||
Non-owner occupied | 3,215,070 | 5,582 | 6,957 | - | 3,227,609 | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | 32,081 | - | - | - | 32,081 | |||||||||||||||
Non-speculative | 91,193 | - | - | - | 91,193 | |||||||||||||||
SFR mortgage | 284,852 | 4,047 | 3,617 | - | 292,516 | |||||||||||||||
Dairy & livestock and agribusiness | 268,328 | 26,877 | 9,393 | - | 304,598 | |||||||||||||||
Municipal lease finance receivables | 67,045 | 536 | - | - | 67,581 | |||||||||||||||
Consumer and other loans | 132,637 | 740 | 1,419 | - | 134,796 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total gross loans, excluding PCI loans | $ | 7,347,815 | $ | 174,869 | $ | 47,779 | $ | - | $ | 7,570,463 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 | |||||||||||||||||||||
Pass | Special Mention | Substandard (1) | Doubtful & Loss | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 892,865 | $ | 24,456 | $ | 4,357 | $ | - | $ | 921,678 | |||||||||||
SBA | 296,127 | 13,764 | 9,680 | - | 319,571 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 1,987,168 | 83,305 | 22,618 | - | 2,093,091 | ||||||||||||||||
Non-owner occupied | 3,269,174 | 12,663 | 740 | - | 3,282,577 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | 105,636 | - | - | - | 105,636 | ||||||||||||||||
Non-speculative | 14,295 | - | - | - | 14,295 | ||||||||||||||||
SFR mortgage | 275,069 | 2,053 | 1,522 | - | 278,644 | ||||||||||||||||
Dairy & livestock and agribusiness | 247,554 | 43,585 | 20,090 | - | 311,229 | ||||||||||||||||
Municipal lease finance receivables | 53,998 | 470 | - | - | 54,468 | ||||||||||||||||
Consumer and other loans | 115,242 | 845 | 1,041 | - | 117,128 | ||||||||||||||||
Total gross loans | $ | 7,257,128 | $ | 181,141 | $ | 60,048 | $ | - | $ | 7,498,317 | |||||||||||
(1) | Includes |
December 31, 2017 | ||||||||||||||||||||
Pass | Special Mention | Substandard | Doubtful & Loss | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 483,641 | $ | 19,566 | $ | 10,118 | $ | - | $ | 513,325 | ||||||||||
SBA | 112,835 | 5,358 | 3,862 | - | 122,055 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | 1,009,199 | 76,111 | 10,970 | - | 1,096,280 | |||||||||||||||
Non-owner occupied | 2,257,130 | 16,434 | 6,869 | - | 2,280,433 | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | 60,042 | - | - | - | 60,042 | |||||||||||||||
Non-speculative | 17,940 | - | - | - | 17,940 | |||||||||||||||
SFR mortgage | 229,032 | 3,124 | 4,046 | - | 236,202 | |||||||||||||||
Dairy & livestock and agribusiness | 321,413 | 9,047 | 16,829 | - | 347,289 | |||||||||||||||
Municipal lease finance receivables | 69,644 | 599 | - | - | 70,243 | |||||||||||||||
Consumer and other loans | 61,715 | 1,255 | 1,259 | - | 64,229 | |||||||||||||||
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| ||||||
Total gross loans, excluding PCI loans | $ | 4,622,591 | $ | 131,494 | $ | 53,953 | $ | - | $ | 4,808,038 | ||||||||||
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December 31, 2018 (1) | ||||||||||||||||||||
Pass | Special Mention | Substandard (2) | Doubtful & Loss | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 961,909 | 29,358 | 10,942 | $ | - | 1,002,209 | |||||||||||||
SBA | 336,033 | 7,375 | 6,635 | - | 350,043 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | 2,008,169 | 95,841 | 13,980 | - | 2,117,990 | |||||||||||||||
Non-owner occupied | 3,260,822 | 9,938 | 5,479 | - | 3,276,239 | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | 118,233 | - | - | - | 118,233 | |||||||||||||||
Non-speculative | 4,549 | - | - | - | 4,549 | |||||||||||||||
SFR mortgage | 289,607 | 3,310 | 3,587 | - | 296,504 | |||||||||||||||
Dairy & livestock and agribusiness | 350,044 | 34,586 | 9,213 | - | 393,843 | |||||||||||||||
Municipal lease finance receivables | 63,650 | 536 | - | - | 64,186 | |||||||||||||||
Consumer and other loans | 126,085 | 1,263 | 1,081 | - | 128,429 | |||||||||||||||
Total gross loans | $ | 7,519,101 | $ | 182,207 | 50,917 | $ | - | $ | 7,752,225 |
(1) | Excludes PCI loans of $17.2 million as of December 31, 2018, of which $15.8 million were rated pass, $1.2 million were rated special mention, $224,000 were rated substandard, and 0 were rated doubtful & loss. |
(2) | Includes $19.0 million of classified loans acquired from CB in the third quarter of 2018. |
For the Three Months Ended September 30, 2018 | ||||||||||||||||||||
Ending Balance June 30, 2018 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance September 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 6,970 | $ | - | $ | 44 | $ | 477 | $ | 7,491 | ||||||||||
SBA | 841 | (257 | ) | 5 | 369 | 958 | ||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 42,597 | - | - | (1,056 | ) | 41,541 | ||||||||||||||
Construction | 1,003 | - | 15 | 115 | 1,133 | |||||||||||||||
SFR mortgage | 2,155 | - | - | (30 | ) | 2,125 | ||||||||||||||
Dairy & livestock and agribusiness | 4,351 | - | - | 673 | 5,024 | |||||||||||||||
Municipal lease finance receivables | 808 | - | - | 7 | 815 | |||||||||||||||
Consumer and other loans | 642 | (1 | ) | 118 | (44 | ) | 715 | |||||||||||||
PCI loans | 216 | - | - | (11 | ) | 205 | ||||||||||||||
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|
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| ||||||
Total allowance for loan losses | $ | 59,583 | $ | (258 | ) | $ | 182 | $ | 500 | $ | 60,007 | |||||||||
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For the Three Months Ended September 30, 2017 | ||||||||||||||||||||
Ending Balance June 30, 2017 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance September 30, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 8,060 | $ | (138 | ) | $ | 12 | $ | 129 | $ | 8,063 | |||||||||
SBA | 913 | - | 5 | (54 | ) | 864 | ||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 39,927 | - | - | 943 | 40,870 | |||||||||||||||
Construction | 1,059 | - | 2,055 | (2,181 | ) | 933 | ||||||||||||||
SFR mortgage | 2,369 | - | - | (49 | ) | 2,320 | ||||||||||||||
Dairy & livestock and agribusiness | 5,440 | - | - | (66 | ) | 5,374 | ||||||||||||||
Municipal lease finance receivables | 852 | - | - | 54 | 906 | |||||||||||||||
Consumer and other loans | 922 | (9 | ) | 5 | (48 | ) | 870 | |||||||||||||
PCI loans | 659 | - | - | (228 | ) | 431 | ||||||||||||||
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| ||||||
Total allowance for loan losses | $ | 60,201 | $ | (147 | ) | $ | 2,077 | $ | (1,500 | ) | $ | 60,631 | ||||||||
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For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Ending Balance December 31, 2017 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance September 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 7,280 | $ | - | $ | 81 | $ | 130 | $ | 7,491 | ||||||||||
SBA | 869 | (257 | ) | 15 | 331 | 958 | ||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 41,722 | - | - | (181 | ) | 41,541 | ||||||||||||||
Construction | 984 | - | 1,945 | (1,796 | ) | 1,133 | ||||||||||||||
SFR mortgage | 2,112 | - | - | 13 | 2,125 | |||||||||||||||
Dairy & livestock and agribusiness | 4,647 | - | 19 | 358 | 5,024 | |||||||||||||||
Municipal lease finance receivables | 851 | - | - | (36 | ) | 815 | ||||||||||||||
Consumer and other loans | 753 | (10 | ) | 129 | (157 | ) | 715 | |||||||||||||
PCI loans | 367 | - | - | (162 | ) | 205 | ||||||||||||||
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|
|
|
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|
|
| ||||||
Total allowance for loan losses | $ | 59,585 | $ | (267 | ) | $ | 2,189 | $ | (1,500 | ) | $ | 60,007 | ||||||||
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For the Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Ending Balance December 31, 2016 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance September 30, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial | $ | 8,154 | $ | (138 | ) | $ | 106 | $ | (59 | ) | $ | 8,063 | ||||||||
SBA | 871 | - | 47 | (54 | ) | 864 | ||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 37,443 | - | 154 | 3,273 | 40,870 | |||||||||||||||
Construction | 1,096 | - | 5,774 | (5,937 | ) | 933 | ||||||||||||||
SFR mortgage | 2,287 | - | 64 | (31 | ) | 2,320 | ||||||||||||||
Dairy & livestock and agribusiness | 8,541 | - | 19 | (3,186 | ) | 5,374 | ||||||||||||||
Municipal lease finance receivables | 941 | - | - | (35 | ) | 906 | ||||||||||||||
Consumer and other loans | 988 | (11 | ) | 76 | (183 | ) | 870 | |||||||||||||
PCI loans | 1,219 | - | - | (788 | ) | 431 | ||||||||||||||
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| ||||||
Total allowance for loan losses | $ | 61,540 | $ | (149 | ) | $ | 6,240 | $ | (7,000 | ) | $ | 60,631 | ||||||||
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For the Three Months Ended September 30, 2019 | |||||||||||||||||||||
Ending Balance June 30, 2019 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance September 30, | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial | $ | 7,857 | $ | - | $ | 94 | $ | 287 | $ | 8,238 | |||||||||||
SBA | 1,119 | (65 | ) | - | 412 | 1,466 | |||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 48,287 | - | - | 624 | 48,911 | ||||||||||||||||
Construction | 871 | - | 3 | 55 | 929 | ||||||||||||||||
SFR mortgage | 2,323 | - | 8 | 44 | 2,375 | ||||||||||||||||
Dairy & livestock and agribusiness | 5,341 | - | - | 88 | 5,429 | ||||||||||||||||
Municipal lease finance receivables | 726 | - | - | (64 | ) | 662 | |||||||||||||||
Consumer and other loans | 608 | (3 | ) | 3 | 54 | 662 | |||||||||||||||
Total allowance for loan losses | $ | 67,132 | $ | (68 | ) | $ | 108 | $ | 1,500 | $ | 68,672 |
For the Three Months Ended September 30, 2018 | |||||||||||||||||||||||
Ending Balance June 30, 2018 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance September 30, 2018 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial | 6,970 | $ | - | $ | 44 | $ | 477 | $ | 7,491 | ||||||||||||||
SBA | 841 | (257 | ) | 5 | 369 | 958 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Commercial real estate | 42,597 | - | - | (1,056 | ) | 41,541 | |||||||||||||||||
Construction | 1,003 | - | 15 | 115 | 1,133 | ||||||||||||||||||
SFR mortgage | 2,155 | - | - | (30 | ) | 2,125 | |||||||||||||||||
Dairy & livestock and | 4,351 | - | - | 673 | 5,024 | ||||||||||||||||||
Municipal lease finance | 808 | - | - | 7 | 815 | ||||||||||||||||||
Consumer and other loans | 642 | (1 | ) | 118 | (44 | ) | 715 | ||||||||||||||||
PCI loans | 216 | - | - | (11 | ) | 205 | |||||||||||||||||
Total allowance for loan | $ | 59,583 | $ | (258 | ) | $ | 182 | $ | 500 | $ | 60,007 | ||||||||||||
For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||
Ending Balance December 31, 2018 | Charge-offs | Recoveries | Provision for (Recapture of) Loan Losses | Ending Balance September 30, 2019 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial | $ | 7,528 | $ | (48 | ) | $ | 253 | $ | 505 | $ | 8,238 | ||||||||||||
SBA | 1,078 | (295 | ) | 9 | 674 | 1,466 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Commercial real estate | 45,097 | - | - | 3,814 | 48,911 | ||||||||||||||||||
Construction | 981 | - | 9 | (61 | ) | 929 | |||||||||||||||||
SFR mortgage | 2,197 | - | 191 | (13 | ) | 2,375 | |||||||||||||||||
Dairy & livestock and | 5,225 | (78 | ) | 19 | 263 | 5,429 | |||||||||||||||||
Municipal lease finance receivables | 775 | - | - | (113 | ) | 662 | |||||||||||||||||
Consumer and other loans | 732 | (7 | ) | 6 | (69 | ) | 662 | ||||||||||||||||
Total allowance for loan | $ | 63,613 | $ | (428 | ) | $ | 487 | $ | 5,000 | $ | 68,672 | ||||||||||||
For the Nine Months Ended September 30, 2018 | |||||||||||||||||||||||
Ending Balance December 31, 2017 | Charge-offs | Recoveries | (Recapture of) Provision for Loan Losses | Ending Balance September 30, | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial and industrial | $ | 7,280 | $ | - | $ | 81 | $ | 130 | $ | 7,491 | |||||||||||||
SBA | 869 | (257 | ) | 15 | 331 | 958 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Commercial real estate | 41,722 | - | - | (181 | ) | 41,541 | |||||||||||||||||
Construction | 984 | - | 1,945 | (1,796 | ) | 1,133 | |||||||||||||||||
SFR mortgage | 2,112 | - | - | 13 | 2,125 | ||||||||||||||||||
Dairy & livestock and | 4,647 | - | 19 | 358 | 5,024 | ||||||||||||||||||
Municipal lease finance receivables | 851 | - | - | (36 | ) | 815 | |||||||||||||||||
Consumer and other loans | 753 | (10 | ) | 129 | (157 | ) | 715 | ||||||||||||||||
PCI loans | 367 | - | - | (162 | ) | 205 | |||||||||||||||||
Total allowance for loan losses | $ | 59,585 | $ | (267 | ) | $ | 2,189 | $ | (1,500 | ) | $ | 60,007 |
September 30, 2018 | ||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | |||||||||||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial and industrial | $ | 3,168 | $ | 1,018,738 | $ | - | $ | - | $ | 7,491 | $ | - | ||||||||||||
SBA | 3,593 | 353,459 | - | - | 958 | - | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial real estate | 6,348 | 5,262,392 | - | - | 41,541 | - | ||||||||||||||||||
Construction | - | 123,274 | - | - | 1,133 | - | ||||||||||||||||||
SFR mortgage | 5,492 | 287,024 | - | 13 | 2,112 | - | ||||||||||||||||||
Dairy & livestock and agribusiness | 775 | 303,823 | - | - | 5,024 | - | ||||||||||||||||||
Municipal lease finance receivables | - | 67,581 | - | - | 815 | - | ||||||||||||||||||
Consumer and other loans | 807 | 133,989 | - | 70 | 645 | - | ||||||||||||||||||
PCI loans | - | - | 17,260 | - | - | 205 | ||||||||||||||||||
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Total | $ | 20,183 | $ | 7,550,280 | $ | 17,260 | $ | 83 | $ | 59,719 | $ | 205 | ||||||||||||
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September 30, 2019 | ||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | |||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Commercial and industrial | $ | 1,638 | $ | 920,040 | $ | 254 | $ | 7,984 | ||||||||
SBA | 3,248 | 316,323 | 286 | 1,180 | ||||||||||||
Real estate: | ||||||||||||||||
Commercial real estate | 1,500 | 5,374,168 | - | 48,911 | ||||||||||||
Construction | - | 119,931 | - | 929 | ||||||||||||
SFR mortgage | 3,009 | 275,635 | - | 2,375 | ||||||||||||
Dairy & livestock and agribusiness | - | 311,229 | - | 5,429 | ||||||||||||
Municipal lease finance receivables | - | 54,468 | - | 662 | ||||||||||||
Consumer and other loans | 385 | 116,743 | - | 662 | ||||||||||||
Total | $ | 9,780 | $ | 7,488,537 | $ | 540 | $ | 68,132 | ||||||||
September 30, 2018 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 3,168 | $ | 1,018,738 | $ | - | $ | - | $ | 7,491 | $ | - | |||||||||||||
SBA | 3,593 | 353,459 | - | - | 958 | - | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 6,348 | 5,262,392 | - | - | 41,541 | - | |||||||||||||||||||
Construction | - | 123,274 | - | - | 1,133 | - | |||||||||||||||||||
SFR mortgage | 5,492 | 287,024 | - | 13 | 2,112 | - | |||||||||||||||||||
Dairy & livestock and agribusiness | 775 | 303,823 | - | - | 5,024 | - | |||||||||||||||||||
Municipal lease finance receivables | - | 67,581 | - | - | 815 | - | |||||||||||||||||||
Consumer and other loans | 807 | 133,989 | - | 70 | 645 | - | |||||||||||||||||||
PCI loans | - | - | 17,260 | - | - | 205 | |||||||||||||||||||
Total | $ | 20,183 | $ | 7,550,280 | $ | 17,260 | $ | 83 | $ | 59,719 | $ | 205 | |||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | |||||||||||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | Individually Evaluated for Impairment | Collectively Evaluated for Impairment | Acquired with Deterioriated Credit Quality | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial and industrial | $ | 745 | $ | 527,914 | $ | - | $ | 2 | $ | 8,061 | $ | - | ||||||||||||
SBA | 2,273 | 121,818 | - | 3 | 861 | - | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial real estate | 8,168 | 3,324,349 | - | - | 40,870 | - | ||||||||||||||||||
Construction | - | 74,148 | - | - | 933 | - | ||||||||||||||||||
SFR mortgage | 4,550 | 240,112 | - | - | 2,320 | - | ||||||||||||||||||
Dairy & livestock and agribusiness | 829 | 269,653 | - | - | 5,374 | - | ||||||||||||||||||
Municipal lease finance receivables | - | 71,352 | - | - | 906 | - | ||||||||||||||||||
Consumer and other loans | 743 | 69,672 | - | 83 | 787 | - | ||||||||||||||||||
PCI loans | - | - | 36,548 | - | - | 431 | ||||||||||||||||||
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Total | $ | 17,308 | $ | 4,699,018 | $ | 36,548 | $ | 88 | $ | 60,112 | $ | 431 | ||||||||||||
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Generally, when loans are identified as impaired they are moved to our Special Assets Department.
September 30, 2018 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Total Past Due and Accruing | Nonaccrual (1) (3) | Current | Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial and industrial | $ | 274 | $ | - | $ | 274 | $ | 3,026 | $ | 1,018,606 | $ | 1,021,906 | ||||||||||||
SBA | - | 123 | 123 | 3,005 | 353,924 | 357,052 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | - | - | - | 615 | 2,040,516 | 2,041,131 | ||||||||||||||||||
Non-owner occupied | - | - | - | 5,241 | 3,222,368 | 3,227,609 | ||||||||||||||||||
Construction | ||||||||||||||||||||||||
Speculative (2) | - | - | - | - | 32,081 | 32,081 | ||||||||||||||||||
Non-speculative | - | - | - | - | 91,193 | 91,193 | ||||||||||||||||||
SFR mortgage | - | - | - | 2,961 | 289,555 | 292,516 | ||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 775 | 303,823 | 304,598 | ||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 67,581 | 67,581 | ||||||||||||||||||
Consumer and other loans | 98 | - | 98 | 807 | 133,891 | 134,796 | ||||||||||||||||||
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Total gross loans, excluding PCI loans | $ | 372 | $ | 123 | $ | 495 | $ | 16,430 | $ | 7,553,538 | $ | 7,570,463 | ||||||||||||
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September 30, 2019 | |||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | and Accruing | Nonaccrual (1) (3) (4) | Current | Total Loans and Financing Receivables | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 756 | $ | - | $ | 756 | $ | 1,550 | $ | 919,372 | $ | 921,678 | |||||||||||||
SBA | - | 303 | 303 | 2,706 | 316,562 | 319,571 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | - | - | - | 494 | 2,092,597 | 2,093,091 | |||||||||||||||||||
Non-owner occupied | 368 | - | 368 | 589 | 3,281,620 | 3,282,577 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative (2) | - | - | - | - | 105,636 | 105,636 | |||||||||||||||||||
Non-speculative | - | - | - | - | 14,295 | 14,295 | |||||||||||||||||||
- | - | - | 888 | 277,756 | 278,644 | ||||||||||||||||||||
Dairy & livestock and | - | - | - | - | 311,229 | 311,229 | |||||||||||||||||||
Municipal lease finance | - | - | - | - | 54,468 | 54,468 | |||||||||||||||||||
Consumer and other loans | - | - | - | 385 | 116,743 | 117,128 | |||||||||||||||||||
Total gross loans | $ | 1,124 | $ | 303 | $ | 1,427 | $ | 6,612 | $ | 7,490,278 | $ | 7,498,317 |
(1) | As of September 30, 30-59 days past due, 60-89 days past due, and |
(2) | Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(3) | Includes |
December 31, 2017 | ||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Total Past Due and Accruing | Nonaccrual (1) | Current | Total Loans and Financing Receivables | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Commercial and industrial | $ | 768 | $ | - | $ | 768 | $ | 250 | $ | 512,307 | $ | 513,325 | ||||||||||||
SBA | 403 | - | 403 | 906 | 120,746 | 122,055 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||
Owner occupied | - | - | - | 4,365 | 1,091,915 | 1,096,280 | ||||||||||||||||||
Non-owner occupied | - | - | - | 2,477 | 2,277,956 | 2,280,433 | ||||||||||||||||||
Construction | ||||||||||||||||||||||||
Speculative (2) | - | - | - | - | 60,042 | 60,042 | ||||||||||||||||||
Non-speculative | - | - | - | - | 17,940 | 17,940 | ||||||||||||||||||
SFR mortgage | - | - | - | 1,337 | 234,865 | 236,202 | ||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 829 | 346,460 | 347,289 | ||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 70,243 | 70,243 | ||||||||||||||||||
Consumer and other loans | 1 | - | 1 | 552 | 63,676 | 64,229 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total gross loans, excluding PCI loans | $ | 1,172 | $ | - | $ | 1,172 | $ | 10,716 | $ | 4,796,150 | $ | 4,808,038 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) | Excludes $1.6 million of guaranteed portion of nonaccrual SBA loans that are in process of collection. |
December 31, 2018 (1) | |||||||||||||||||||||||||
30-59 DaysPast Due | 60-89 DaysPast Due | Total Past Due and Accruing | Nonaccrual (2) (4) | Current | Total Loans and Financing Receivables | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 820 | $ | 89 | $ | 909 | $ | 7,490 | $ | 993,810 | $ | 1,002,209 | |||||||||||||
SBA | 1,172 | 135 | 1,307 | 2,892 | 345,844 | 350,043 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 2,439 | 350 | 2,789 | 589 | 2,114,612 | 2,117,990 | |||||||||||||||||||
Non-owner occupied | - | - | - | 5,479 | 3,270,760 | 3,276,239 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative (3) | - | - | - | - | 118,233 | 118,233 | |||||||||||||||||||
Non-speculative | - | - | - | - | 4,549 | 4,549 | |||||||||||||||||||
SFR mortgage | - | 285 | 285 | 2,937 | 293,282 | 296,504 | |||||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 78 | 393,765 | 393,843 | |||||||||||||||||||
Municipal lease finance receivables | - | - | - | - | 64,186 | 64,186 | |||||||||||||||||||
Consumer and other loans | - | - | - | 486 | 127,943 | 128,429 | |||||||||||||||||||
$ | 4,431 | $ | 859 | $ | 5,290 | $ | 19,951 | $ | 7,726,984 | $ | 7,752,225 |
(1) | Excludes PCI loans. |
(2) | As of December 31, 30-59 days past due, $57,000 were60-89 days past due and |
Speculative construction loans are generally for properties where there is no identified buyer or renter. |
(4) | Includes $12.3 million of nonaccrual loans acquired from CB in the third quarter of 2018. |
$561,000.
As of and For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 3,168 | $ | 3,829 | $ | - | $ | 3,439 | $ | 6 | ||||||||||
SBA | 3,593 | 5,779 | - | 4,457 | 34 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | 615 | 726 | - | 644 | - | |||||||||||||||
Non-owner occupied | 5,733 | 6,385 | - | 5,904 | 24 | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | - | - | - | - | - | |||||||||||||||
Non-speculative | - | - | - | - | - | |||||||||||||||
SFR mortgage | 5,479 | 6,449 | - | 5,679 | 59 | |||||||||||||||
Dairy & livestock and agribusiness | 775 | 1,091 | - | 808 | - | |||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 737 | 1,025 | - | 867 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total | 20,100 | 25,284 | - | 21,798 | 123 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
With a related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | |||||||||||||||
SBA | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | - | - | - | - | - | |||||||||||||||
Non-owner occupied | - | - | - | - | - | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | - | - | - | - | - | |||||||||||||||
Non-speculative | - | - | - | - | - | |||||||||||||||
SFR mortgage | 13 | 13 | 13 | 13 | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 70 | 101 | 70 | 85 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total | 83 | 114 | 83 | 98 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total impaired loans | $ | 20,183 | $ | 25,398 | $ | 83 | $ | 21,896 | $ | 123 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and For the Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | $ | 726 | $ | 1,256 | $ | - | $ | 870 | $ | 15 | ||||||||||
SBA | 2,270 | 2,573 | - | 2,489 | 38 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | 4,313 | 4,625 | - | 4,361 | 42 | |||||||||||||||
Non-owner occupied | 3,855 | 5,155 | - | 4,010 | 72 | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | - | - | - | - | - | |||||||||||||||
Non-speculative | - | - | - | - | - | |||||||||||||||
SFR mortgage | 4,550 | 5,345 | - | 4,620 | 109 | |||||||||||||||
Dairy & livestock and agribusiness | 829 | 1,091 | - | 1,035 | 1 | |||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 356 | 571 | - | 381 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total | 16,899 | 20,616 | - | 17,766 | 277 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
With a related allowance recorded: | ||||||||||||||||||||
Commercial and industrial | 19 | 20 | 2 | 42 | 1 | |||||||||||||||
SBA | 3 | 20 | 3 | 7 | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Owner occupied | - | - | - | - | - | |||||||||||||||
Non-owner occupied | - | - | - | - | - | |||||||||||||||
Construction | ||||||||||||||||||||
Speculative | - | - | - | - | - | |||||||||||||||
Non-speculative | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 387 | 394 | 83 | 390 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total | 409 | 434 | 88 | 439 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total impaired loans | $ | 17,308 | $ | 21,050 | $ | 88 | $ | 18,205 | $ | 278 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2017 |
| |||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||||||||
(Dollars in thousands) | ||||||||||||||
With no related allowance recorded: | ||||||||||||||
Commercial and industrial | $ | 440 | $ | 980 | $ | - | ||||||||
SBA | 1,530 | 1,699 | - | |||||||||||
Real estate: | ||||||||||||||
Commercial real estate | ||||||||||||||
Owner occupied | 4,365 | 4,763 | - | |||||||||||
Non-owner occupied | 3,768 | 5,107 | - | |||||||||||
Construction | ||||||||||||||
Speculative | - | - | - | |||||||||||
Non-speculative | - | - | - | |||||||||||
SFR mortgage | 4,040 | 4,692 | - | |||||||||||
Dairy & livestock and agribusiness | 829 | 1,091 | - | |||||||||||
Municipal lease finance receivables | - | - | - | |||||||||||
Consumer and other loans | 174 | 370 | - | |||||||||||
|
|
|
|
|
|
|
|
| ||||||
Total | 15,146 | 18,702 | - | |||||||||||
|
|
|
|
|
|
|
|
| ||||||
With a related allowance recorded: | ||||||||||||||
Commercial and industrial | - | - | - | |||||||||||
SBA | 1 | 18 | 1 | |||||||||||
Real estate: | ||||||||||||||
Commercial real estate | ||||||||||||||
Owner occupied | - | - | - | |||||||||||
Non-owner occupied | - | - | - | |||||||||||
Construction | ||||||||||||||
Speculative | - | - | - | |||||||||||
Non-speculative | - | - | - | |||||||||||
SFR mortgage | - | - | - | |||||||||||
Dairy & livestock and agribusiness | - | - | - | |||||||||||
Municipal lease finance receivables | - | - | - | |||||||||||
Consumer and other loans | 378 | 391 | 74 | |||||||||||
|
|
|
|
|
|
|
|
| ||||||
Total | 379 | 409 | 75 | |||||||||||
|
|
|
|
|
|
|
|
| ||||||
Total impaired loans | $ | 15,525 | $ | 19,111 | $ | 75 | ||||||||
|
|
|
|
|
|
|
|
|
As of and For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 1,382 | $ | 1,537 | $ | - | $ | 1,560 | $ | 4 | |||||||||||
SBA | 2,447 | 3,554 | - | 2,606 | 31 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 494 | 614 | - | 508 | - | ||||||||||||||||
Non-owner occupied | 1,006 | 1,190 | - | 1,052 | 21 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 3,009 | 3,338 | - | 3,059 | 62 | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 385 | 516 | - | 401 | - | ||||||||||||||||
Total | 8,723 | 10,749 | - | 9,186 | 118 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | 256 | 345 | 254 | 829 | - | ||||||||||||||||
SBA | 801 | 816 | 286 | 816 | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | - | - | - | - | - | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | - | - | - | - | - | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | - | - | - | - | - | ||||||||||||||||
Total | 1,057 | 1,161 | 540 | 1,645 | - | ||||||||||||||||
Total impaired loans | $ | 9,780 | $ | 11,910 | $ | 540 | $ | 10,831 | $ | 118 | |||||||||||
As of and For the Nine Months Ended September 30, 2018 (1) | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | $ | 3,168 | $ | 3,829 | $ | - | $ | 3,439 | $ | 6 | |||||||||||
SBA | 3,593 | 5,779 | - | 4,457 | 34 | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | 615 | 726 | - | 644 | - | ||||||||||||||||
Non-owner occupied | 5,733 | 6,385 | - | 5,904 | 24 | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 5,479 | 6,449 | - | 5,679 | 59 | ||||||||||||||||
Dairy & livestock and agribusiness | 775 | 1,091 | - | 808 | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 737 | 1,025 | - | 867 | - | ||||||||||||||||
Total | 20,100 | 25,284 | - | 21,798 | 123 | ||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | ||||||||||||||||
SBA | - | - | - | - | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||
Owner occupied | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | - | - | - | - | - | ||||||||||||||||
Construction | |||||||||||||||||||||
Speculative | - | - | - | - | - | ||||||||||||||||
Non-speculative | - | - | - | - | - | ||||||||||||||||
SFR mortgage | 13 | 13 | 13 | 13 | - | ||||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | ||||||||||||||||
Municipal lease finance receivables | - | - | - | - | - | ||||||||||||||||
Consumer and other loans | 70 | 101 | 70 | 85 | - | ||||||||||||||||
Total | 83 | 114 | 83 | 98 | - | ||||||||||||||||
Total impaired loans | $ | 20,183 | $ | 25,398 | $ | 83 | $ | 21,896 | $ | 123 | |||||||||||
(1) | Excludes PCI loans. |
As of December 31, 2018 (1) | |||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | |||||||||||
(Dollars in thousands) | |||||||||||||
With no related allowance recorded: | |||||||||||||
Commercial and industrial | $ | 7,436 | $ | 11,457 | $ | - | |||||||
SBA | 3,467 | 5,746 | - | ||||||||||
Real estate: | |||||||||||||
Commercial real estate | |||||||||||||
Owner occupied | 589 | 705 | - | ||||||||||
Non-owner occupied | 2,808 | 4,324 | - | ||||||||||
Construction | |||||||||||||
Speculative | - | - | - | ||||||||||
Non-speculative | - | - | - | ||||||||||
SFR mortgage | 5,349 | 6,270 | - | ||||||||||
Dairy & livestock and agribusiness | - | - | - | ||||||||||
Municipal lease finance receivables | - | - | - | ||||||||||
Consumer and other loans | 418 | 526 | - | ||||||||||
Total | 20,067 | 29,028 | - | ||||||||||
With a related allowance recorded: | |||||||||||||
Commercial and industrial | 189 | 191 | 3 | ||||||||||
SBA | - | - | - | ||||||||||
Real estate: | |||||||||||||
Commercial real estate | |||||||||||||
Owner occupied | - | - | - | ||||||||||
Non-owner occupied | 3,143 | 3,144 | 478 | ||||||||||
Construction | |||||||||||||
Speculative | - | - | - | ||||||||||
Non-speculative | - | - | - | ||||||||||
SFR mortgage | - | - | - | ||||||||||
Dairy & livestock and agribusiness | 78 | 78 | 12 | ||||||||||
Municipal lease finance receivables | - | - | - | ||||||||||
Consumer and other loans | 68 | 100 | 68 | ||||||||||
Total | 3,478 | 3,513 | 561 | ||||||||||
Total impaired loans | $ | 23,545 | $ | 32,541 | $ | 561 | |||||||
(1) | Excludes PCI loans. |
$88,000.
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Performing TDRs: | ||||||||||||||||
Beginning balance | $ | 4,530 | $ | 16,574 | $ | 4,809 | $ | 19,233 | ||||||||
New modifications | - | - | 311 | 3,143 | ||||||||||||
Payoffs/payments, net and other | (777 | ) | (10,839 | ) | (1,367 | ) | (13,826 | ) | ||||||||
TDRs returned to accrual status | - | - | - | 329 | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | (3,144 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ending balance | $ | 3,753 | $ | 5,735 | $ | 3,753 | $ | 5,735 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming TDRs: | ||||||||||||||||
Beginning balance | $ | 3,892 | $ | 4,391 | $ | 4,200 | $ | 1,626 | ||||||||
New modifications | 278 | - | 316 | 2,066 | ||||||||||||
Charge-offs | - | - | - | - | ||||||||||||
Payoffs/payments, net and other | (650 | ) | (81 | ) | (996 | ) | (2,197 | ) | ||||||||
TDRs returned to accrual status | - | - | - | (329 | ) | |||||||||||
TDRs placed on nonaccrual status | - | - | - | 3,144 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ending balance | $ | 3,520 | $ | 4,310 | $ | 3,520 | $ | 4,310 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total TDRs | $ | 7,273 | $ | 10,045 | $ | 7,273 | $ | 10,045 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Performing TDRs: | ||||||||||||||||
Beginning balance | $ | 3,219 | $ | 4,530 | $ | 3,594 | $ | 4,809 | ||||||||
New modifications | - | - | - | 311 | ||||||||||||
Payoffs/payments, net and other | (51 | ) | (777 | ) | (426 | ) | (1,367 | ) | ||||||||
TDRs returned to accrual status | - | - | - | - | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | - | ||||||||||||
Ending balance | $ | 3,168 | $ | 3,753 | $ | 3,168 | $ | 3,753 | ||||||||
Nonperforming TDRs: | ||||||||||||||||
Beginning balance | $ | 263 | $ | 3,892 | $ | 3,509 | $ | 4,200 | ||||||||
New modifications | - | 278 | - | 316 | ||||||||||||
Charge-offs | - | - | (78 | ) | - | |||||||||||
Transfer to OREO | - | - | (2,275 | ) | - | |||||||||||
Payoffs/payments, net and other | (14 | ) | (650 | ) | (907 | ) | (996 | ) | ||||||||
TDRs returned to accrual status | - | - | - | - | ||||||||||||
TDRs placed on nonaccrual status | - | - | - | - | ||||||||||||
Ending balance | $ | 249 | $ | 3,520 | $ | 249 | $ | 3,520 | ||||||||
Total TDRs | $ | 3,417 | $ | 7,273 | $ | 3,417 | $ | 7,273 |
(1) | Excludes PCI loans. |
For the Three Months Ended September 30, 2018 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2018 | Financial Effect Resulting From Modifications (2) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Non-owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
SFR mortgage: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Consumer: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 278 | 278 | 272 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total loans | 1 | $ | 278 | $ | 278 | $ | 272 | $ | - | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, 201 8 (2) | |||||||||||||||||||||
Loans | Outstanding Recorded Investment | Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2018 | Financial Effect Resulting From Modifications (3) | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||
Interest rate reduction | - | $ | - | - | - | - | |||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
Non-owner occupied | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
SFR mortgage: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | - | - | - | - | - | ||||||||||||||||
Consumer: | |||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | ||||||||||||||||
Change in amortization period | 1 | 278 | 278 | 272 | - | ||||||||||||||||
Total loans | 1 | $ | 278 | $ | 278 | $ | 272 | $ | - |
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For the Nine Months Ended September 30, 2018 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2018 | Financial Effect Resulting From Modifications (2) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Change in amortization period or maturity | 1 | 38 | 38 | 27 | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Non-owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
SFR mortgage: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 311 | 311 | 304 | - | |||||||||||||||
Dairy & livestock and agribusiness: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Consumer: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 278 | 278 | 272 | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total loans | 3 | $ | 627 | $ | 627 | $ | 603 | $ | - | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2017 | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2017 | Financial Effect Resulting From Modifications (2) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 3,143 | 3,143 | 3,143 | - | |||||||||||||||
Non-owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
SFR mortgage: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 1,984 | 1,984 | 78 | - | |||||||||||||||
Consumer: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 82 | 82 | 76 | - | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total loans | 3 | $ | 5,209 | $ | 5,209 | $ | 3,297 | $ | - | |||||||||||
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|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2018 (2) | ||||||||||||||||||||
Number of Loans | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Outstanding Recorded Investment at September 30, 2018 | Financial Effect Resulting From Modifications (3) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial and industrial: | ||||||||||||||||||||
Interest rate reduction | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Change in amortization period or maturity | 1 | 38 | 38 | 27 | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
Non-owner occupied | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | - | - | - | - | - | |||||||||||||||
SFR mortgage: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 311 | 311 | 304 | - | |||||||||||||||
Consumer: | ||||||||||||||||||||
Interest rate reduction | - | - | - | - | - | |||||||||||||||
Change in amortization period or maturity | 1 | 278 | 278 | 272 | - | |||||||||||||||
Total loans | 3 | $ | 627 | $ | 627 | $ | 603 | $ | - | |||||||||||
(1) | The tables above exclude modified loans that were paid off prior to the end of the period. |
(2) | Excludes PCI loans. |
(3) | Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. |
As of September 30, 2018, there
As
EARNINGS PER SHARE RECONCILIATION |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Net earnings | $ | 38,558 | $ | 29,683 | $ | 108,844 | $ | 86,560 | ||||||||
Less: Net earnings allocated to restricted stock | 96 | 107 | 298 | 325 | ||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||
Net earnings allocated to common shareholders | $ | 38,462 | $ | 29,576 | $ | 108,546 | $ | 86,235 | ||||||||
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|
|
|
|
|
|
|
|
|
| |||||
Weighted average shares outstanding | 126,574 | 109,754 | 115,533 | 109,280 | ||||||||||||
Basic earnings per common share | $ | 0.30 | $ | 0.27 | $ | 0.94 | $ | 0.79 | ||||||||
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|
|
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| |||||
Diluted earnings per common share: | ||||||||||||||||
Net income allocated to common shareholders | 38,462 | 29,576 | 108,546 | 86,235 | ||||||||||||
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|
|
|
|
|
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|
| |||||
Weighted average shares outstanding | 126,574 | 109,754 | 115,533 | 109,280 | ||||||||||||
Incremental shares from assumed exercise of outstanding options | 363 | 365 | 397 | 392 | ||||||||||||
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|
|
|
|
|
|
|
|
| |||||
Diluted weighted average shares outstanding | 126,937 | 110,119 | 115,930 | 109,672 | ||||||||||||
Diluted earnings per common share | $ | 0.30 | $ | 0.27 | $ | 0.94 | $ | 0.79 | ||||||||
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|
|
|
For the Three Months Ended S 30,eptember | For the Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | ||||||||
Less: Net earnings allocated to restricted stock | 116 | 96 | 390 | 298 | ||||||||||||
Net earnings allocated to common shareholders | $ | 50,307 | $ | 38,462 | $ | 156,156 | $ | 108,546 | ||||||||
Weighted average shares outstanding | 139,824 | 126,574 | 139,730 | 115,533 | ||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | ||||||||
Diluted earnings per common share: | ||||||||||||||||
Net income allocated to common shareholders | 50,307 | 38,462 | 156,156 | 108,546 | ||||||||||||
Weighted average shares outstanding | 139,824 | 126,574 | 139,730 | 115,533 | ||||||||||||
Incremental shares from assumed exercise of outstanding options | 151 | 363 | 217 | 397 | ||||||||||||
Diluted weighted average shares outstanding | 139,975 | 126,937 | 139,947 | 115,930 | ||||||||||||
Diluted earnings per common share | $ | 0.36 | $ | 0.30 | $ | 1.12 | $ | 0.94 | ||||||||
8. | FAIR VALUE INFORMATION |
2018.2019. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2 and Level 3).●Level 1– Quoted prices in active markets for identical assets or liabilities in active markets that are accessible at the measurement date.●Level 2– Observable inputs other than Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices in less active markets, or other observable inputs or model derived valuations that can be corroborated by observable market data, either directly or indirectly, for substantially the full term of the financial instrument.●Level 3– Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. These valuation methodologies generally include pricing models, discounted cash flow models, or a determination of fair value that requires significant management judgment or estimation.no0 transfers in and out of Level 1 and Level 2 during the nine months ended September 30, 20182019 and 2017.2018.
Carrying Value at September 30, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Residential mortgage-backed securities | $ | 1,532,878 | $ | - | $ | 1,532,878 | $ | - | ||||||||
CMO/REMIC - residential | 223,817 | - | 223,817 | - | ||||||||||||
Municipal bonds | 48,739 | - | 48,739 | - | ||||||||||||
Other securities | 797 | - | 797 | - | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total investment securities - AFS | 1,806,231 | - | 1,806,231 | - | ||||||||||||
Interest rate swaps | 944 | - | 944 | - | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total assets | $ | 1,807,175 | $ | - | $ | 1,807,175 | $ | - | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 944 | $ | - | $ | 944 | $ | - | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total liabilities | $ | 944 | $ | - | $ | 944 | $ | - | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Carrying Value at December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Residential mortgage-backed securities | $ | 1,750,909 | $ | - | $ | 1,750,909 | $ | - | ||||||||
CMO/REMIC - residential | 273,829 | - | 273,829 | - | ||||||||||||
Municipal bonds | 55,496 | - | 55,496 | - | ||||||||||||
Other securities | 751 | - | 751 | - | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total investment securities - AFS | 2,080,985 | - | 2,080,985 | - | ||||||||||||
Interest rate swaps | 3,211 | - | 3,211 | - | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total assets | $ | 2,084,196 | $ | - | $ | 2,084,196 | $ | - | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 3,211 | $ | - | $ | 3,211 | $ | - | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||
Total liabilities | $ | 3,211 | $ | - | $ | 3,211 | $ | - | ||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Value at | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other (Level 2) | Significant (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Residential mortgage-backed securities | $ | 1,146,159 | $ | - | $ | 1,146,159 | $ | - | ||||||||
CMO/REMIC - residential | 382,928 | - | 382,928 | - | ||||||||||||
Municipal bonds | 40,487 | - | 40,487 | - | ||||||||||||
Other securities | 832 | - | 832 | - | ||||||||||||
1,570,406 | - | 1,570,406 | - | |||||||||||||
Interest rate swaps | 16,180 | - | 16,180 | - | ||||||||||||
Total assets | $ | 1,586,586 | $ | - | $ | 1,586,586 | $ | - | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 16,180 | $ | - | $ | 16,180 | $ | - | ||||||||
Total liabilities | $ | 16,180 | $ | - | $ | 16,180 | $ | - | ||||||||
Carrying Value at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Description of assets | ||||||||||||||||
Investment securities - AFS: | ||||||||||||||||
Residential mortgage-backed securities | $ | 1,474,508 | $ | - | $ | 1,474,508 | $ | - | ||||||||
CMO/REMIC - residential | 214,051 | - | 214,051 | - | ||||||||||||
Municipal bonds | 44,810 | - | 44,810 | - | ||||||||||||
Other securities | 716 | - | 716 | - | ||||||||||||
Total investment securities - AFS | 1,734,085 | - | 1,734,085 | - | ||||||||||||
Interest rate swaps | 1,938 | - | 1,938 | - | ||||||||||||
Total assets | $ | 1,736,023 | $ | - | $ | 1,736,023 | $ | - | ||||||||
Description of liability | ||||||||||||||||
Interest rate swaps | $ | 1,938 | $ | - | $ | 1,938 | $ | - | ||||||||
Total liabilities | $ | 1,938 | $ | - | $ | 1,938 | $ | - |
Carrying Value at September 30, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Nine Months Ended September 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding PCI loans: | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
SBA | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | 13 | - | - | 13 | 13 | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 1 | - | - | 1 | 1 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Assetheld-for-sale | - | - | - | - | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | $ | 14 | $ | - | $ | - | $ | 14 | $ | 14 | ||||||||||
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| |||||||||||
Carrying Value at December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Year Ended December 31, 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding PCI loans: | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
SBA | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 378 | - | - | 378 | 74 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Assetheld-for-sale | - | - | - | - | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total assets | $ | 378 | $ | - | $ | - | $ | 378 | $ | 74 | ||||||||||
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|
Carrying Value at September 30, 2019 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Nine Months Ended September 30, 2019 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding loans: | ||||||||||||||||||||
Commercial and industrial | $ | 256 | $ | - | $ | - | $ | 256 | $ | 254 | ||||||||||
SBA | 938 | - | - | 938 | 516 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | - | - | - | - | - | |||||||||||||||
Other real estate owned | 444 | - | - | 444 | 64 | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 1,638 | $ | - | $ | - | $ | 1,638 | $ | 834 | ||||||||||
Carrying Value at December 31, 2018 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Losses For the Year Ended December 31, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Description of assets | ||||||||||||||||||||
Impaired loans, excluding loans: | ||||||||||||||||||||
Commercial and industrial | $ | 189 | - | $ | - | $ | 189 | $ | 3 | |||||||||||
SBA | - | - | - | - | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 3,143 | - | - | 3,143 | 478 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | - | - | |||||||||||||||
Dairy & livestock and agribusiness | 78 | - | - | 78 | 12 | |||||||||||||||
Consumer and other loans | 68 | - | - | 68 | 68 | |||||||||||||||
Other real estate owned | - | - | - | - | - | |||||||||||||||
Asset held-for-sale | - | - | - | - | - | |||||||||||||||
Total assets | $ | 3,478 | $ | - | $ | - | $ | 3,478 | $ | 561 |
September 30, 2018 | ||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Total cash and cash equivalents | $ | 194,475 | $ | 194,475 | $ | - | $ | - | $ | 194,475 | ||||||||||
Interest-earning balances due from depository institutions | 8,812 | - | 8,723 | - | 8,723 | |||||||||||||||
Investment securitiesavailable-for-sale | 1,806,231 | - | 1,806,231 | - | 1,806,231 | |||||||||||||||
Investment securitiesheld-to-maturity | 759,029 | - | 726,755 | - | 726,755 | |||||||||||||||
Total loans, net of allowance for loan losses (1) | 7,522,452 | - | - | 7,218,542 | 7,218,542 | |||||||||||||||
Swaps | 944 | - | 944 | - | 944 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Interest-bearing | $ | 3,885,672 | $ | - | $ | 3,875,171 | $ | - | $ | 3,875,171 | ||||||||||
Borrowings | 429,477 | - | 429,092 | - | 429,092 | |||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 21,218 | 21,218 | |||||||||||||||
Swaps | 944 | - | 944 | - | 944 | |||||||||||||||
(1) The fair value of loans as of September 30, 2018 was measured using an exit price notion. |
| |||||||||||||||||||
December 31, 2017 | ||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Total cash and due from banks | $ | 144,377 | $ | 144,377 | $ | - | $ | - | $ | 144,377 | ||||||||||
Interest-earning balances due from depository institutions | 17,952 | - | 17,951 | - | 17,951 | |||||||||||||||
FHLB stock | 17,688 | - | 17,688 | - | 17,688 | |||||||||||||||
Investment securitiesavailable-for-sale | 2,080,985 | - | 2,080,985 | - | 2,080,985 | |||||||||||||||
Investment securitiesheld-to-maturity | 829,890 | - | 819,215 | - | 819,215 | |||||||||||||||
Total loans, net of allowance for loan losses | 4,771,046 | - | - | 4,678,402 | 4,678,402 | |||||||||||||||
Swaps | 3,211 | - | 3,211 | - | 3,211 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 3,846,436 | $ | 3,846,436 | $ | - | $ | - | $ | 3,846,436 | ||||||||||
Interest-bearing | 2,700,417 | - | 2,697,781 | - | 2,697,781 | |||||||||||||||
Borrowings | 553,773 | - | 553,416 | - | 553,416 | |||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 18,070 | 18,070 | |||||||||||||||
Swaps | 3,211 | - | 3,211 | - | 3,211 |
September 30, 2019 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 437,548 | $ | 437,548 | $ | - | $ | - | $ | 437,548 | |||||||||||
Interest-earning balances due from depository institutions | 5,673 | - | 5,793 | - | 5,793 | ||||||||||||||||
Investment securities available-for-sale | 1,570,406 | - | 1,570,406 | - | 1,570,406 | ||||||||||||||||
Investment securities held-to-maturity | 703,953 | - | 711,891 | - | 711,891 | ||||||||||||||||
Total loans, net of allowance for loan losses | 7,425,779 | - | - | 7,385,760 | 7,385,760 | ||||||||||||||||
Swaps | 16,180 | - | 16,180 | - | 16,180 | ||||||||||||||||
Liabilities | �� | ||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing | $ | 3,409,226 | $ | - | $ | 3,407,573 | $ | - | $ | 3,407,573 | |||||||||||
Borrowings | 412,764 | - | 412,372 | - | 412,372 | ||||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 20,266 | 20,266 | ||||||||||||||||
Swaps | 16,180 | - | 16,180 | - | 16,180 | ||||||||||||||||
December 31, 2018 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 163,948 | $ | 163,948 | $ | - | $ | - | $ | 163,948 | |||||||||||
Interest-earning balances due from depository institutions | 7,670 | - | 7,339 | - | 7,339 | ||||||||||||||||
Investment securities available-for-sale | 1,734,085 | - | 1,734,085 | - | 1,734,085 | ||||||||||||||||
Investment securities held-to-maturity | 744,440 | - | 721,537 | - | 721,537 | ||||||||||||||||
Total loans, net of allowance for loan losses | 7,700,998 | - | - | 7,514,964 | 7,514,964 | ||||||||||||||||
Swaps | 1,938 | - | 1,938 | - | 1,938 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing | $ | 3,622,703 | $ | - | $ | 3,614,682 | $ | - | $ | 3,614,682 | |||||||||||
Borrowings | 722,255 | - | 721,601 | - | 721,601 | ||||||||||||||||
Junior subordinated debentures | 25,774 | - | - | 21,176 | 21,176 | ||||||||||||||||
Swaps | 1,938 | - | 1,938 | - | 1,938 |
9. | DERIVATIVE FINANCIAL INSTRUMENTS |
September 30, 2018 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 944 | Other liabilities | $ | 944 | ||||||||||
|
|
|
|
|
| |||||||||||
Total derivatives | $ | 944 | $ | 944 | ||||||||||||
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|
|
|
|
| |||||||||||
December 31, 2017 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 3,211 | Other liabilities | $ | 3,211 | ||||||||||
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|
|
|
|
| |||||||||||
Total derivatives | $ | 3,211 | $ | 3,211 | ||||||||||||
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|
|
|
|
|
September 30, 2019 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 16,180 | Other liabilities | $ | 16,180 | ||||||||||
Total derivatives | $ | 16,180 | $ | 16,180 | ||||||||||||
December 31, 2018 | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Interest rate swaps | Other assets | $ | 1,938 | Other liabilities | $ | 1,938 | ||||||||||
Total derivatives | $ | 1,938 | $ | 1,938 | ||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on Derivative Instruments | Amount of Gain Recognized in Income on Derivative Instruments | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Interest rate swaps | Other income | $ | 73 | $ | 198 | $ | 340 | $ | 592 | |||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||||||
Total | $ | 73 | $ | 198 | $ | 340 | $ | 592 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Instruments | Amount of Gain Recognized in Income on Derivative Instruments | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Interest rate swaps | Other income | $ | 378 | $ | 73 | $ | 1,135 | $ | 340 | |||||||||||
Total | $ | 378 | $ | 73 | $ | 1,135 | $ | 340 | ||||||||||||
OTHER COMPREHENSIVE INCOME |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | (10,235 | ) | $ | 3,025 | $ | (7,210 | ) | $ | 2,083 | $ | (875 | ) | $ | 1,208 | |||||||||
Amortization of unrealized gains (losses) on securities transferred fromavailable-for-sale toheld-to-maturity | (152 | ) | 45 | (107 | ) | (862 | ) | 362 | (500 | ) | ||||||||||||||
Net realized gain reclassified into earnings (1) | - | - | - | - | - | - | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net change | $ | (10,387 | ) | $ | 3,070 | $ | (7,317 | ) | $ | 1,221 | $ | (513 | ) | $ | 708 | |||||||||
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|
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| |||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | (47,346 | ) | $ | 13,997 | $ | (33,349 | ) | $ | 6,128 | $ | (2,574 | ) | $ | 3,554 | |||||||||
Amortization of unrealized gains (losses) on securities transferred fromavailable-for-sale toheld-to-maturity | (1,809 | ) | 535 | (1,274 | ) | (2,841 | ) | 1,193 | (1,648 | ) | ||||||||||||||
Net realized gain reclassified into earnings (1) | - | - | - | (402 | ) | 169 | (233 | ) | ||||||||||||||||
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|
|
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| |||||||
Net change | $ | (49,155 | ) | $ | 14,532 | $ | (34,623 | ) | $ | 2,885 | $ | (1,212 | ) | $ | 1,673 | |||||||||
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For the Three Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 5,672 | $ | (1,677 | ) | $ | 3,995 | $ | (10,235 | ) | $ | 3,025 | $ | (7,210 | ) | ||||||||||
Net realized gain reclassified into earnings (1) | (5) | 1 | (4 | ) | - | - | - | ||||||||||||||||||
Amortization of unrealized losses on securities transferred from available-for-sale toheld-to-maturity | (249 | ) | 74 | (175 | ) | (152) | 45 | (107 | ) | ||||||||||||||||
Net change | $ | 5,418 | $ | (1,602 | ) | $ | 3,816 | $ | (10,387) | $ | 3,070 | $ | (7,317 | ) | |||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
Before-tax | Tax effect | After-tax | Before-tax | Tax effect | After-tax | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 44,586 | $ | (13,181 | ) | $ | 31,405 | $ | (47,346 | ) | $ | 13,997 | $ | (33,349 | ) | ||||||||||
Net realized gain reclassified into earnings (1) | (5 | ) | 1 | (4 | ) | - | - | - | |||||||||||||||||
Amortization of unrealized losses on securities transferred from available-for-sale toheld-to-maturity | (1,450 | ) | 429 | (1,021 | ) | (1,809 | ) | 535 | (1,274 | ) | |||||||||||||||
Net change | $ | 43,131 | $ | (12,751 | ) | $ | 30,380 | $ | (49,155 | ) | $ | 14,532 | $ | (34,623 | ) |
(1) | Included in other noninterest income. |
11. | BALANCE SHEET OFFSETTING |
Gross Amounts Consolidated | Gross Amounts Consolidated | Net Amounts of Consolidated | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | |||||||||||||||||||||
Financial |
Collateral | |||||||||||||||||||||||
Balance Sheets | Balance Sheets | Balance Sheets | Instruments | Pledged | Net Amount | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
September 30, 2018 | ||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 944 | $ | - | $ | - | $ | 944 | $ | - | $ | 944 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total | $ | 944 | $ | - | $ | - | $ | 944 | $ | - | $ | 944 | ||||||||||||
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|
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|
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| |||||||
Financial liabilities: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 6,797 | $ | (5,853 | ) | $ | 944 | $ | 5,853 | $ | - | $ | 6,797 | |||||||||||
Repurchase agreements | 399,477 | - | 399,477 | - | (441,848 | ) | (42,371 | ) | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total | $ | 406,274 | $ | (5,853 | ) | $ | 400,421 | $ | 5,853 | $ | (441,848 | ) | $ | (35,574 | ) | |||||||||
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| |||||||
December 31, 2017 | ||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 3,211 | $ | - | $ | - | $ | 3,211 | $ | - | $ | 3,211 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total | $ | 3,211 | $ | - | $ | - | $ | 3,211 | $ | - | $ | 3,211 | ||||||||||||
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| |||||||
Financial liabilities: | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 4,495 | $ | (1,284 | ) | $ | 3,211 | $ | 1,284 | $ | (12,760 | ) | $ | (8,265 | ) | |||||||||
Repurchase agreements | 553,773 | - | 553,773 | - | (573,759 | ) | (19,986 | ) | ||||||||||||||||
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|
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| |||||||
Total | $ | 558,268 | $ | (1,284 | ) | $ | 556,984 | $ | 1,284 | $ | (586,519 | ) | $ | (28,251 | ) | |||||||||
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|
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|
|
|
|
|
Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | Gross Amounts Offset in the Condensed Consolidated Balance Sheets | Net Amounts Presented in the Condensed Consolidated Balance Sheets | Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets | Net Amount | |||||||||||||||||||||
Financial | Collateral Pledged | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 16,180 | $ | - | $ | - | $ | 16,180 | $ | - | $ | 16,180 | |||||||||||||
Total | $ | 16,180 | $ | - | $ | - | $ | 16,180 | $ | - | $ | 16,180 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 16,182 | $ | (2 | ) | $ | 16,180 | $ | 2 | $ | (22,335 | ) | $ | (6,153 | ) | ||||||||||
Repurchase agreements | 407,850 | - | 407,850 | - | (419,465 | ) | (11,615 | ) | |||||||||||||||||
Total | $ | 424,032 | $ | (2 | ) | $ | 424,030 | $ | 2 | $ | (441,800 | ) | $ | (17,768 | ) | ||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 1,938 | $ | - | $ | - | $ | 1,938 | $ | - | $ | 1,938 | |||||||||||||
Total | $ | 1,938 | $ | - | $ | - | $ | 1,938 | $ | - | $ | 1,938 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 4,203 | $ | (2,265 | ) | $ | 1,938 | $ | 2,265 | $ | - | $ | 4,203 | ||||||||||||
Repurchase agreements | 442,255 | - | 442,255 | - | (487,607 | ) | (45,352 | ) | |||||||||||||||||
Total | $ | 446,458 | $ | (2,265 | ) | $ | $ | $ | ) | $ | (41,149 | ) | |||||||||||||
12. |
LEASES |
On January 1, 2018,
Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streamsin-scope of Topic 606 are discussed below.
Trust and Investment Services
Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the monthly market value of the assets under management and the applicable fee rate. Payment is generally received at month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Other services related to real estate and tax return preparation services are also provided to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.
Wealth Management contracts with customers have no clauses that would entitle customers to additional services. Fees are generally earned based on market value of assets under management (AUM) and miscellaneous fees are transaction driven and are charged based on an agreed upon fee schedule. Performance obligation is satisfied upon execution of the transaction and there is no need to allocate transaction price to the performance obligation(s) in the contract. Wealth Management customers can also terminate the contract at will. Based on our review, we did not find provisions in the contracts that will require changes to the current accounting under Topic 606.
For Investment Services, the fees are earned based on services performed for customers as provided through an affiliated broker-dealer. Fees are earned from gross dealer commission based on trade date. Performance obligation is satisfied upon execution of the transaction and there is no need to allocate transaction price to the performance obligation(s) in the contract. Based on our review, we did not find provisions in the contracts that will require changes to the current accounting under Topic 606.
Deposit-related Fees
Service charges on deposit accounts consist of account analysis fees earned on analyzed business checking accounts, monthly service fees, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.
Bankcard Services
The Bank generates revenues from merchant servicing to its clients. A fee schedule is part of the contract and is calculated based on sales of merchants on a monthly basis. There is no future promise or claim to deliver services as merchant fees are based on monthly merchant transactions. The Company’s performance obligations are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Therefore, the new revenue standard has no impact on revenues generated from bankcard services.
As of September 30, 2019 | ||||
(Dollars in thousands) | ||||
Lease Assets and Liabilities | ||||
ROU assets | $ | 17,340 | ||
Total lease liabilities | 20,558 |
For the Three Months Ended | For the Nine Months Ended | |||||||
September 30, 2019 | ||||||||
(Dollars in thousands) | ||||||||
Lease Cost | ||||||||
Operating lease expense (1) | $ | 1,628 | $ | 5,634 | ||||
Total lease expense | $ | 1,628 | $ | 5,634 | ||||
(1) Includes short-term leases and variable lease costs, which are immaterial. | ||||||||
Other Information | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash outflows from operating leases, net | $ | 1,640 | $ | 6,499 | ||||
Lease Term and Discount Rate | ||||||||
As of September 30, 2019 | ||||||||
Weighted average remaining lease term (years) | 4.26 | |||||||
Weighted average discount rate | 3.46% |
As of September 30, 2019 | |||||
(Dollars in thousands) | |||||
Year: | |||||
2019 (excluding the nine months endedSeptember 30, 2019) | $ | 1,973 | |||
2020 | 6,941 | ||||
2021 | 5,178 | ||||
2022 | 4,005 | ||||
2023 | 2,336 | ||||
Thereafter | 3,100 | ||||
Total future lease payments | 23,533 | ||||
Less: Imputed interest | (2,975 | ) | |||
Present value of lease liabilities | $ | 20,558 | |||
13. | REVENUE RECOGNITION |
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
In-scope of Topic 606: | ||||||||||||||||
Service charges on deposit accounts | $ | 4,295 | $ | 4,085 | $ | 12,431 | $ | 11,794 | ||||||||
Trust and investment services | 2,182 | 2,523 | 6,738 | 7,432 | ||||||||||||
Bankcard services | 875 | 927 | 2,637 | 2,563 | ||||||||||||
Gain on OREO, net | - | 2 | 3,540 | 4 | ||||||||||||
Other | 1,824 | 1,267 | 4,393 | 3,895 | ||||||||||||
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| |||||
Noninterest Income(in-scope of Topic 606) | 9,176 | 8,804 | 29,739 | 25,688 | ||||||||||||
Noninterest Income(out-of-scope of Topic 606) | 936 | 1,234 | 2,984 | 3,848 | ||||||||||||
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Total noninterest income | $ | 10,112 | $ | 10,038 | $ | 32,723 | $ | 29,536 | ||||||||
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Contract Balances
A contract asset balance occurs when an entity performs a serviceall subsequent ASUs that modified Topic 606. Refer to Note 3 –
Contract Acquisition Costs
In connection with the adoption
For the Three Months Ended September 30, | For the Nine Months Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest income: | ||||||||||||||||
In-scope of Topic 606: | ||||||||||||||||
Service charges on deposit accounts | $ | 4,833 | $ | 4,295 | $ | 15,039 | $ | 12,431 | ||||||||
Trust and investment services | 2,330 | 2,182 | 6,964 | 6,738 | ||||||||||||
Bankcard services | 637 | 875 | 2,614 | 2,637 | ||||||||||||
Gain on OREO, net | - | - | 129 | 3,540 | ||||||||||||
Other | 2,292 | 1,824 | 6,939 | 4,393 | ||||||||||||
Noninterest Income (in-scope of Topic 606) | 10,092 | 9,176 | 31,685 | 29,739 | ||||||||||||
Noninterest Income (out-of-scope of Topic 606) | 1,802 | 936 | 14,717 | 2,984 | ||||||||||||
Total noninterest income | $ | 11,894 | $ | 10,112 | $ | 46,402 | $ | 32,723 |
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On August 10, 2018, we completed the acquisition of Community Bank (“CB”). Our financial statements for the third quarter include 51 days of CB operations, post-merger. At close, Citizens Business Bank acquired $2.73 billion of loans and assumed $2.87 billion of total deposits, including $1.26 billion of noninterest-bearing deposits.`
Total investment securities were $2.57$2.27 billion at September 30, 2018,2019, a decrease of $345.6$204.2 million, or 11.87%8.24%, from $2.91$2.48 billion at December 31, 2017.2018. At September 30, 2018,2019, investment securities$759.0$704.0 million. At September 30, 2018,2019, investment securities$1.81$1.57 billion, inclusive of alossgain of $44.5$21.0 million. HTM securities declined by $70.9$40.5 million, or 8.54%5.44%, and AFS securities declined by $274.8$163.7 million, or 13.20%9.44%, from December 31, 2017.
2018. Our tax equivalent yield on investments was 2.47% for the quarter ended September 30, 2019, compared to 2.53% for the second quarter of 2019 and 2.49% for the third quarter of 2018.
5.40% for the second quarter of 2019 and 4.99% for the third quarter of 2018. Interest income for yield adjustments related to discount accretion on acquired loans and nonrecurring nonaccrual interest paid was $7.3 million for the quarter ended September 30, 2019, compared to $9.4 million for the second quarter of 2019 and $4.9 million for the third quarter of 2018.
2018.
2018.
2018.
were $37.0 million.
banking centers were consolidated into CBB banking centers.
Business Segments
For the years ended December 31, 2016 through June 30, 2018, we operated as two reportable segments: Banking Centers and Dairy & Livestock and Agribusiness. As a result
For the Three Months Ended | Variance | |||||||||||||||||||||||||||||||||||||||
September 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2018 | 2018 | $ | % | |||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 92,820 | $ | 72,688 | $ | 20,132 | 27.70% | |||||||||||||||||||||||||||||||||
Recapture of (provision for) loan losses | (500 | ) | 1,000 | (1,500 | ) | -150.00% | ||||||||||||||||||||||||||||||||||
Noninterest income | 10,112 | 9,695 | 417 | 4.30% | ||||||||||||||||||||||||||||||||||||
Noninterest expense | (48,880 | ) | (34,254 | ) | (14,626 | ) | -42.70% | |||||||||||||||||||||||||||||||||
Income taxes | (14,994 | ) | (13,756 | ) | (1,238 | ) | -9.00% | |||||||||||||||||||||||||||||||||
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Net earnings | $ | 38,558 | $ | 35,373 | $ | 3,185 | 9.00% | |||||||||||||||||||||||||||||||||
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Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.32 | $ | (0.02) | ||||||||||||||||||||||||||||||||||
Diluted | $ | 0.30 | $ | 0.32 | $ | (0.02) | ||||||||||||||||||||||||||||||||||
Return on average assets | 1.52% | 1.73% | -0.21% | |||||||||||||||||||||||||||||||||||||
Return on average shareholders’ equity | 10.17% | 13.08% | -2.91% | |||||||||||||||||||||||||||||||||||||
Efficiency ratio | 47.49% | 41.58% | 5.91% | |||||||||||||||||||||||||||||||||||||
Noninterest expense to average assets | 1.93% | 1.68% | 0.25% | |||||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||||
September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||
Net interest income | $ | 92,820 | $ | 71,739 | $ | 21,081 | 29.39 | % | $ | 236,029 | $ | 207,655 | $ | 28,374 | 13.66% | |||||||||||||||||||||||||
Recapture of (provision for) loan losses | (500 | ) | 1,500 | (2,000 | ) | -133.33 | % | 1,500 | 7,000 | (5,500 | ) | -78.57% | ||||||||||||||||||||||||||||
Noninterest income | 10,112 | 10,038 | 74 | 0.74 | % | 32,723 | 29,536 | 3,187 | 10.79% | |||||||||||||||||||||||||||||||
Noninterest expense | (48,880 | ) | (34,706 | ) | (14,174 | ) | -40.84 | % | (119,080 | ) | (105,696 | ) | (13,384 | ) | -12.66% | |||||||||||||||||||||||||
Income taxes | (14,994 | ) | (18,888 | ) | 3,894 | 20.62 | % | (42,328 | ) | (51,935 | ) | 9,607 | 18.50% | |||||||||||||||||||||||||||
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Net earnings | $ | 38,558 | $ | 29,683 | $ | 8,875 | 29.90 | % | $ | 108,844 | $ | 86,560 | $ | 22,284 | 25.74% | |||||||||||||||||||||||||
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Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.30 | $ | 0.27 | $ | 0.03 | $ | 0.94 | $ | 0.79 | $ | 0.15 | ||||||||||||||||||||||||||||
Diluted | $ | 0.30 | $ | 0.27 | $ | 0.03 | $ | 0.94 | $ | 0.79 | $ | 0.15 | ||||||||||||||||||||||||||||
Return on average assets | 1.52% | 1.41% | 0.11% | 1.65% | 1.40% | 0.25% | ||||||||||||||||||||||||||||||||||
Return on average shareholders’ equity | 10.17% | 10.93% | -0.76% | 11.86% | 11.01% | 0.85% | ||||||||||||||||||||||||||||||||||
Efficiency ratio | 47.49% | 42.44% | 5.05% | 44.31% | 44.56% | -0.25% | ||||||||||||||||||||||||||||||||||
Noninterest expense to average assets | 1.93% | 1.65% | 0.28% | 1.80% | 1.70% | 0.10% |
2019
2019 $ $ $ ) ) ) ) ) ) $ $ $ $ $ $ $ $ $
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | $ | 15,339 | 16.53% | $ | 328,752 | $ | 236,029 | $ | 92,723 | 39.28% | ||||||||||||||||||
(Provision for) recapture of provision for loan losses | (1,500) | (500) | (1,000) | -200.00% | (5,000) | 1,500 | (6,500) | -433.33% | ||||||||||||||||||||||||
Noninterest income | 11,894 | 10,112 | 1,782 | 17.62% | 46,402 | 32,723 | 13,679 | 41.80% | ||||||||||||||||||||||||
Noninterest expense | (47,535) | (48,880) | 1,345 | 2.75% | (149,667) | (119,080) | (30,587) | -25.69% | ||||||||||||||||||||||||
Income taxes | (20,595) | (14,994) | (5,601) | -37.35% | (63,941) | (42,328) | (21,613) | -51.06% | ||||||||||||||||||||||||
Net earnings | $ | 50,423 | $ | 38,558 | $ | 11,865 | 30.77% | $ | 156,546 | $ | 108,844 | $ | 47,702 | 43.83% | ||||||||||||||||||
Earnings per common share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||
Diluted | $ | 0.36 | $ | 0.30 | $ | 0.06 | $ | 1.12 | $ | 0.94 | $ | 0.18 | ||||||||||||||||||||
Return on average assets | 1.78% | 1.52% | 0.26% | 1.86% | 1.65% | 0.21% | ||||||||||||||||||||||||||
Return on average shareholders’ equity | 10.18% | 10.17% | 0.01% | 10.89% | 11.86% | -0.97% | ||||||||||||||||||||||||||
Efficiency ratio | 39.60% | 47.49% | -7.89% | 39.89% | 44.31% | -4.42% | ||||||||||||||||||||||||||
Noninterest expense to average assets | 1.68% | 1.93% | -0.25% | 1.77% | 1.80% | -0.03% |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net Income | $ | 38,558 | $ | 29,683 | $ | 108,844 | $ | 86,560 | ||||||||
Add: Amortization of intangible assets | 1,736 | 343 | 2,395 | 991 | ||||||||||||
Less: Tax effect of amortization of intangible assets | (486 | ) | (133 | ) | (671 | ) | (372 | ) | ||||||||
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Adjusted net income | $ | 39,808 | $ | 29,893 | $ | 110,568 | $ | 87,179 | ||||||||
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Average stockholders’ equity | $ | 1,503,643 | $ | 1,077,303 | $ | 1,226,848 | $ | 1,051,159 | ||||||||
Less: Average goodwill | (419,418 | ) | (119,164 | ) | (218,625 | ) | (111,687 | ) | ||||||||
Less: Average intangible assets | (34,811 | ) | (7,401 | ) | (16,078 | ) | (6,923 | ) | ||||||||
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Average tangible common equity | $ | 1,049,414 | $ | 950,738 | $ | 992,145 | $ | 932,549 | ||||||||
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Return on average equity, annualized | 10.17% | 10.93% | 11.86% | 11.01% | ||||||||||||
Return on average tangible common equity, annualized | 15.05% | 12.47% | 14.90% | 12.50% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net Income | $ | 50,423 | $ | 38,558 | $ | 156,546 | $ | 108,844 | ||||||||
Add: Amortization of intangible assets | 2,648 | 1,736 | 8,338 | 2,395 | ||||||||||||
Less: Tax effect of amortization of intangible assets (1) | (783) | (513) | (2,465) | (708) | ||||||||||||
Tangible net income | $ | 52,288 | $ | 39,781 | $ | 162,419 | $ | 110,531 | ||||||||
Average stockholders’ equity | $ | 1,965,427 | $ | 1,503,643 | $ | 1,921,981 | $ | 1,226,848 | ||||||||
Less: Average goodwill | (663,707) | (419,418) | (665,470) | (218,625) | ||||||||||||
Less: Average intangible assets | (46,720) | (34,811) | (49,682) | (16,078) | ||||||||||||
Average tangible common equity | $ | 1,255,000 | $ | 1,049,414 | $ | 1,206,829 | $ | 992,145 | ||||||||
Return on average equity, annualized | 10.18 | % | 10.17 | % | 10.89 | % | 11.86 | % | ||||||||
Return on average tangible common equity, annualized | 16.53 | % | 15.04 | % | 17.99 | % | 14.89 | % |
(1) | Tax effected at respective statutory rates. |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,863,399 | $ | 11,126 | 2.39% | $ | 2,124,093 | $ | 11,767 | 2.22% | ||||||||||||||
Tax-advantaged | 55,020 | 395 | 3.86% | 64,839 | 473 | 4.39% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 527,688 | 2,961 | 2.24% | 578,450 | 3,111 | 2.15% | ||||||||||||||||||
Tax-advantaged | 237,933 | 1,705 | 3.47% | 277,920 | 2,073 | 4.04% | ||||||||||||||||||
Investment in FHLB stock | 24,645 | 329 | 5.30% | 17,688 | 318 | 7.03% | ||||||||||||||||||
Interest-earning deposits with other institutions | 63,572 | 304 | 1.90% | 44,758 | 130 | 1.16% | ||||||||||||||||||
Loans (2) | 6,350,240 | 79,818 | 4.99% | 4,710,900 | 55,998 | 4.72% | ||||||||||||||||||
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Total interest-earning assets | 9,122,497 | 96,638 | 4.23% | 7,818,648 | 73,870 | 3.81% | ||||||||||||||||||
Total noninterest-earning assets | 935,028 | 520,728 | ||||||||||||||||||||||
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Total assets | $ | 10,057,525 | $ | 8,339,376 | ||||||||||||||||||||
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INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 2,850,169 | 2,101 | 0.29% | $ | 2,352,971 | 1,261 | 0.21% | ||||||||||||||||
Time deposits | 503,649 | 866 | 0.68% | 398,810 | 294 | 0.29% | ||||||||||||||||||
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Total interest-bearing deposits | 3,353,818 | 2,967 | 0.35% | 2,751,781 | 1,555 | 0.22% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 478,538 | 851 | 0.70% | 551,193 | 576 | 0.41% | ||||||||||||||||||
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Interest-bearing liabilities | 3,832,356 | 3,818 | 0.39% | 3,302,974 | 2,131 | 0.26% | ||||||||||||||||||
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Noninterest-bearing deposits | 4,651,127 | 3,891,381 | ||||||||||||||||||||||
Other liabilities | 70,399 | 67,718 | ||||||||||||||||||||||
Stockholders’ equity | 1,503,643 | 1,077,303 | ||||||||||||||||||||||
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Total liabilities and stockholders’ equity | $ | 10,057,525 | $ | 8,339,376 | ||||||||||||||||||||
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Net interest income | $ | 92,820 | $ | 71,739 | ||||||||||||||||||||
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Net interest spread - tax equivalent | 3.84% | 3.55% | ||||||||||||||||||||||
Net interest margin | 4.04% | 3.65% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.06% | 3.70% |
For the Three Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,505,087 | $ | 8,949 | 2.38% | $ | 1,863,399 | $ | 11,126 | 2.39% | ||||||||||||||
Tax-advantaged | 40,189 | 273 | 3.75% | 55,020 | 395 | 3.86% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 506,203 | 2,883 | 2.28% | 527,688 | 2,961 | 2.24% | ||||||||||||||||||
Tax-advantaged | 205,996 | 1,415 | 3.32% | 237,933 | 1,705 | 3.47% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 301 | 6.75% | 24,645 | 329 | 5.30% | ||||||||||||||||||
Interest-earning deposits with other institutions | 174,119 | 946 | 2.16% | 63,572 | 304 | 1.90% | ||||||||||||||||||
Loans (2) | 7,495,289 | 98,796 | 5.23% | 6,350,240 | 79,818 | 4.99% | ||||||||||||||||||
Total interest-earning assets | 9,944,571 | 113,563 | 4.55% | 9,122,497 | 96,638 | 4.23% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,845 | 935,028 | ||||||||||||||||||||||
Total assets | $ | 11,214,416 | $ | 10,057,525 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 2,991,330 | 3,501 | 0.46% | $ | 2,850,169 | 2,101 | 0.29% | ||||||||||||||||
Time deposits | 473,347 | 1,088 | 0.91% | 503,649 | 866 | 0.68% | ||||||||||||||||||
Total interest-bearing deposits | 3,464,677 | 4,589 | 0.53% | 3,353,818 | 2,967 | 0.35% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 446,087 | 815 | 0.72% | 478,538 | 851 | 0.70% | ||||||||||||||||||
Interest-bearing liabilities | 3,910,764 | 5,404 | 0.55% | 3,832,356 | 3,818 | 0.39% | ||||||||||||||||||
Noninterest-bearing deposits | 5,227,595 | 4,651,127 | ||||||||||||||||||||||
Other liabilities | 110,630 | 70,399 | ||||||||||||||||||||||
Stockholders’ equity | 1,965,427 | 1,503,643 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,214,416 | $ | 10,057,525 | ||||||||||||||||||||
Net interest income | $ | 108,159 | $ | 92,820 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.00% | 3.84% | ||||||||||||||||||||||
Net interest margin | 4.32% | 4.04% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.34% | 4.06% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% |
(2) | Includes loan fees of |
(3) | Includes interest-bearing demand and money market accounts. |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||||
Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||
Taxable | $ | 1,920,942 | $ | 33,861 | 2.36% | $ | 2,161,151 | $ | 36,113 | 2.24% | ||||||||||||||||
Tax-advantaged | 54,517 | 1,225 | 3.99% | 71,528 | 1,774 | 4.84% | ||||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||||
Taxable | 540,952 | 8,887 | 2.19% | 593,357 | 9,591 | 2.16% | ||||||||||||||||||||
Tax-advantaged | 246,270 | 5,351 | 3.50% | 279,947 | 6,423 | 4.14% | ||||||||||||||||||||
Investment in FHLB stock | 20,032 | 959 | 6.40% | 18,167 | 1,070 | 7.77% | ||||||||||||||||||||
Interest-earning deposits with other institutions | 115,200 | 1,475 | 1.71% | 90,125 | 683 | 1.01% | ||||||||||||||||||||
Loans (2) | 5,312,557 | 192,382 | 4.84% | 4,579,054 | 158,253 | 4.62% | ||||||||||||||||||||
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Total interest-earning assets | 8,210,470 | 244,140 | 4.00% | 7,793,329 | 213,907 | 3.72% | ||||||||||||||||||||
Total noninterest-earning assets | 626,966 | 501,209 | ||||||||||||||||||||||||
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Total assets | $ | 8,837,436 | $ | 8,294,538 | ||||||||||||||||||||||
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| |||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||||
Savings deposits (3) | $ | 2,460,390 | 4,667 | 0.25% | $ | 2,345,105 | 3,684 | 0.21% | ||||||||||||||||||
Time deposits | 416,754 | 1,374 | 0.44% | 403,701 | 863 | 0.29% | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total interest-bearing deposits | 2,877,144 | 6,041 | 0.28% | 2,748,806 | 4,547 | 0.22% | ||||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 507,755 | 2,070 | 0.54% | 595,415 | 1,705 | 0.38% | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Interest-bearing liabilities | 3,384,899 | 8,111 | 0.32% | 3,344,221 | 6,252 | 0.25% | ||||||||||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||||
Noninterest-bearing deposits | 4,158,365 | 3,828,235 | ||||||||||||||||||||||||
Other liabilities | 67,324 | 70,923 | ||||||||||||||||||||||||
Stockholders’ equity | 1,226,848 | 1,051,159 | ||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 8,837,436 | $ | 8,294,538 | ||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Net interest income | $ | 236,029 | $ | 207,655 | ||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
Net interest spread - tax equivalent | 3.68% | 3.47% | ||||||||||||||||||||||||
Net interest margin | 3.84% | 3.56% | ||||||||||||||||||||||||
Net interest margin - tax equivalent | 3.87% | 3.62% |
For the Nine Months Ended September 30, | ||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS | ||||||||||||||||||||||||
Investment securities (1) | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||
Taxable | $ | 1,582,902 | $ | 29,079 | 2.45% | $ | 1,920,942 | $ | 33,861 | 2.36% | ||||||||||||||
Tax-advantaged | 42,746 | 906 | 3.87% | 54,517 | 1,225 | 3.99% | ||||||||||||||||||
Held-to-maturity securities: | ||||||||||||||||||||||||
Taxable | 509,247 | 8,725 | 2.29% | 540,952 | 8,887 | 2.19% | ||||||||||||||||||
Tax-advantaged | 216,343 | 4,524 | 3.37% | 246,270 | 5,351 | 3.50% | ||||||||||||||||||
Investment in FHLB stock | 17,688 | 931 | 7.04% | 20,032 | 959 | 6.40% | ||||||||||||||||||
Interest-earning deposits with other institutions | 70,848 | 1,140 | 2.15% | 115,200 | 1,475 | 1.71% | ||||||||||||||||||
Loans (2) | 7,571,502 | 300,326 | 5.30% | 5,312,557 | 192,382 | 4.84% | ||||||||||||||||||
Total interest-earning assets | 10,011,276 | 345,631 | 4.63% | 8,210,470 | 244,140 | 4.00% | ||||||||||||||||||
Total noninterest-earning assets | 1,269,160 | 626,966 | ||||||||||||||||||||||
Total assets | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES | ||||||||||||||||||||||||
Savings deposits (3) | $ | 3,047,444 | 9,159 | 0.40% | $ | 2,460,390 | 4,667 | 0.25% | ||||||||||||||||
Time deposits | 497,370 | 3,394 | 0.91% | 416,754 | 1,374 | 0.44% | ||||||||||||||||||
Total interest-bearing deposits | 3,544,814 | 12,553 | 0.47% | 2,877,144 | 6,041 | 0.28% | ||||||||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 573,633 | 4,326 | 1.00% | 507,755 | 2,070 | 0.54% | ||||||||||||||||||
Interest-bearing liabilities | 4,118,447 | 16,879 | 0.55% | 3,384,899 | 8,111 | 0.32% | ||||||||||||||||||
Noninterest-bearing deposits | 5,136,233 | 4,158,365 | ||||||||||||||||||||||
Other liabilities | 103,775 | 67,324 | ||||||||||||||||||||||
Stockholders’ equity | 1,921,981 | 1,226,848 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 11,280,436 | $ | 8,837,436 | ||||||||||||||||||||
Net interest income | $ | 328,752 | $ | 236,029 | ||||||||||||||||||||
Net interest spread - tax equivalent | 4.08% | 3.68% | ||||||||||||||||||||||
Net interest margin | 4.39% | 3.84% | ||||||||||||||||||||||
Net interest margin - tax equivalent | 4.41% | 3.87% |
(1) | Includes tax equivalent (TE) adjustments utilizing federal statutory rates of 21% |
(2) | Includes loan fees of |
(3) | Includes interest-bearing demand and money market accounts. |
Comparision of Three Months Ended September 30, | ||||||||||||||||
2018 Compared to 2017 | ||||||||||||||||
Increase (Decrease) Due to | ||||||||||||||||
Rate/ | ||||||||||||||||
Volume | Rate | Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Taxable investment securities | $ | (1,417 | ) | $ | 883 | $ | (107 | ) | $ | (641 | ) | |||||
Tax-advantaged investment securities | (70 | ) | (7 | ) | (1 | ) | (78 | ) | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Taxable investment securities | (277 | ) | 139 | (12 | ) | (150 | ) | |||||||||
Tax-advantaged investment securities | (272 | ) | (84 | ) | (12 | ) | (368 | ) | ||||||||
Investment in FHLB stock | 88 | (55 | ) | (22 | ) | 11 | ||||||||||
Interest-earning deposits with other institutions | 55 | 84 | 35 | 174 | ||||||||||||
Loans | 19,531 | 3,182 | 1,107 | 23,820 | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||
Total interest income | 17,638 | 4,142 | 988 | 22,768 | ||||||||||||
|
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|
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|
|
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|
|
| |||||
Interest expense: | ||||||||||||||||
Savings deposits | 259 | 480 | 101 | 840 | ||||||||||||
Time deposits | 76 | 393 | 103 | 572 | ||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (74 | ) | 402 | (53 | ) | 275 | ||||||||||
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|
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|
|
|
|
|
|
| |||||
Total interest expense | 261 | 1,275 | 151 | 1,687 | ||||||||||||
|
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|
|
|
|
|
|
|
|
|
| |||||
Net interest income | $ | 17,377 | $ | 2,867 | $ | 837 | $ | 21,081 | ||||||||
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| |||||
Comparision of Nine Months Ended September 30, | ||||||||||||||||
2018 Compared to 2017 | ||||||||||||||||
Increase (Decrease) Due to | ||||||||||||||||
Rate/ | ||||||||||||||||
Volume | Rate | Volume | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest income: | ||||||||||||||||
Available-for-sale securities: | ||||||||||||||||
Taxable investment securities | $ | (3,883 | ) | $ | 1,831 | $ | (200 | ) | $ | (2,252 | ) | |||||
Tax-advantaged investment securities | (423 | ) | (166 | ) | 40 | (549 | ) | |||||||||
Held-to-maturity securities: | ||||||||||||||||
Taxable investment securities | (824 | ) | 132 | (12 | ) | (704 | ) | |||||||||
Tax-advantaged investment securities | (757 | ) | (357 | ) | 42 | (1,072 | ) | |||||||||
Investment in FHLB stock | 124 | (213 | ) | (22 | ) | (111 | ) | |||||||||
Interest-earning deposits with other institutions | 189 | 472 | 131 | 792 | ||||||||||||
Loans | 25,346 | 7,571 | 1,212 | 34,129 | ||||||||||||
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|
|
|
|
|
|
|
|
|
| |||||
Total interest income | 19,772 | 9,270 | 1,191 | 30,233 | ||||||||||||
|
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|
|
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|
|
| |||||
Interest expense: | ||||||||||||||||
Savings deposits | 181 | 765 | 37 | 983 | ||||||||||||
Time deposits | 29 | 467 | 15 | 511 | ||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (243 | ) | 713 | (105 | ) | 365 | ||||||||||
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|
|
|
|
|
|
|
| |||||
Total interest expense | (33 | ) | 1,945 | (53 | ) | 1,859 | ||||||||||
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|
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|
|
|
|
|
|
|
|
| |||||
Net interest income | $ | 19,805 | $ | 7,325 | $ | 1,244 | $ | 28,374 | ||||||||
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|
Comparision of Three Months Ended September 30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume | Rate | Rate/ Volume | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable investment securities | $ | (2,122 | ) | $ | (46 | ) | $ | (9 | ) | $ | (2,177 | ) | |||||
Tax-advantaged investment securities | (98 | ) | (19 | ) | (5 | ) | (122 | ) | |||||||||
Held-to-maturity securities: | |||||||||||||||||
Taxable investment securities | (120 | ) | 44 | (2 | ) | (78 | ) | ||||||||||
Tax-advantaged investment securities | (215 | ) | (66 | ) | (9 | ) | (290 | ) | |||||||||
Investment in FHLB stock | (93 | ) | 91 | (26 | ) | (28 | ) | ||||||||||
Interest-earning deposits with other institutions | 529 | 41 | 72 | 642 | |||||||||||||
Loans | 14,389 | 3,888 | 701 | 18,978 | |||||||||||||
Total interest income | 12,270 | 3,933 | 722 | 16,925 | |||||||||||||
Interest expense: | |||||||||||||||||
Savings deposits | 104 | 1,235 | 61 | 1,400 | |||||||||||||
Time deposits | (52 | ) | 292 | (18 | ) | 222 | |||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | (56 | ) | 21 | (1 | ) | (36 | ) | ||||||||||
Total interest expense | (4 | ) | 1,548 | 42 | 1,586 | ||||||||||||
Net interest income | $ | 12,274 | $ | 2,385 | $ | 680 | $ | 15,339 | |||||||||
Comparision of Nine Months Ended September��30, 2019 Compared to 2018 Increase (Decrease) Due to | |||||||||||||||||
Volume | Rate | Rate/ Volume | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Interest income: | |||||||||||||||||
Available-for-sale securities: | |||||||||||||||||
Taxable investment securities | $ | (5,894 | ) | $ | 1,346 | $ | (234 | ) | $ | (4,782 | ) | ||||||
Tax-advantaged investment securities | (264 | ) | (70 | ) | 15 | (319 | ) | ||||||||||
Held-to-maturity securities: | |||||||||||||||||
Taxable investment securities | (583 | ) | 447 | (26 | ) | (162 | ) | ||||||||||
Tax-advantaged investment securities | (651 | ) | (201 | ) | 25 | (827 | ) | ||||||||||
Investment in FHLB stock | (114 | ) | 97 | (11 | ) | (28 | ) | ||||||||||
Interest-earning deposits with other institutions | (567 | ) | 378 | (146 | ) | (335 | ) | ||||||||||
Loans | 81,793 | 18,349 | 7,802 | 107,944 | |||||||||||||
Total interest income | 73,720 | 20,346 | 7,425 | 101,491 | |||||||||||||
Interest expense: | |||||||||||||||||
Savings deposits | 1,113 | 2,728 | 651 | 4,492 | |||||||||||||
Time deposits | 266 | 1,470 | 284 | 2,020 | |||||||||||||
FHLB advances, other borrowings, and customer repurchase agreements | 271 | 1,757 | 228 | 2,256 | |||||||||||||
Total interest expense | 1,650 | 5,955 | 1,163 | 8,768 | |||||||||||||
Net interest income | $ | 72,070 | $ | 14,391 | $ | 6,262 | $ | 92,723 | |||||||||
2018
third quarter of 2019, compared to $4.9 million for the third quarter of 2018.
2019.
In general, we stop accruing interest on a loan after its principal or interest becomes 90 days or more past due. When a loan is placed on nonaccrual, all interest previously accrued but not collected is charged against earnings. There was no interest income that was accrued and not reversed on nonaccrual loans at September 30, 2018 and 2017. As of September 30, 2018 and 2017, we had $16.4 million and $11.6 million of nonaccrual loans (excluding PCI loans), respectively.
2018.
2018.
2018.
2018
The 2863 basis points increase in the earning asset yield over the first nine months of 2018,2019, resulted from a 2246 basis point increase in loan yields and a change in the mix of earning assets. Average loans as a percentage of earning assets grew from 58.8% for the first nine months of 2017 to 64.7% for the first nine months of 2018.2018 to 75.6% for the first nine months of 2019. Conversely, average investment securities declined as a percentage of earning assets from 39.9%33.7% in the prior year to 33.7%23.5% for the first nine months of 2018.
2019.
Bank’s prime rate.
2018.
PCI loans acquired in the FDIC-assisted transaction were initially recorded at their fair value and were covered by loss sharing agreements with the FDIC. The loss sharing agreement with the FDIC for single-family residential loans, which would have expired on October 16, 2019, was terminated by the Bank on July 20, 2018. Refer to Note 3 —Summary
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 4,295 | $ | 4,085 | $ | 210 | 5.14% | $ | 12,431 | $ | 11,794 | $ | 637 | 5.40% | ||||||||||||||||||
Trust and investment services | 2,182 | 2,523 | (341 | ) | -13.52% | 6,738 | 7,432 | (694 | ) | -9.34% | ||||||||||||||||||||||
Bankcard services | 875 | 927 | (52 | ) | -5.61% | 2,637 | 2,563 | 74 | 2.89% | |||||||||||||||||||||||
BOLI income | 936 | 692 | 244 | 35.26% | 2,984 | 2,904 | 80 | 2.75% | ||||||||||||||||||||||||
Gain on sale of investment securities, net | - | - | - | - | - | 402 | (402 | ) | -100.00% | |||||||||||||||||||||||
Gain on OREO, net | - | 2 | (2 | ) | -100.00% | 3,540 | 4 | 3,536 | 88400.00% | |||||||||||||||||||||||
Gain on sale of assetheld-for-sale, net | - | 542 | (542 | ) | -100.00% | - | 542 | (542 | ) | -100.00% | ||||||||||||||||||||||
Other | 1,824 | 1,267 | 557 | 43.96% | 4,393 | 3,895 | 498 | 12.79% | ||||||||||||||||||||||||
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| |||||||||
Total noninterest income | $ | 10,112 | $ | 10,038 | $ | 74 | 0.74% | $ | 32,723 | $ | 29,536 | $ | 3,187 | 10.79% | ||||||||||||||||||
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For the Three Months Ended September 30, | Variance | For the Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest income: | ||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 4,833 | $ | 4,295 | $ | 538 | 12.53 | % | $ | 15,039 | $ | 12,431 | $ | 2,608 | 20.98 | % | ||||||||||||||||
Trust and investment services | 2,330 | 2,182 | 148 | 6.78 | % | 6,964 | 6,738 | 226 | 3.35 | % | ||||||||||||||||||||||
Bankcard services | 637 | 875 | (238 | ) | -27.20 | % | 2,614 | 2,637 | (23 | ) | -0.87 | % | ||||||||||||||||||||
BOLI income | 1,797 | 936 | 861 | 91.99 | % | 4,482 | 2,984 | 1,498 | 50.20 | % | ||||||||||||||||||||||
Gain on OREO, net | - | - | - | - | 129 | 3,540 | (3,411 | ) | -96.36 | % | ||||||||||||||||||||||
Gain on sale of building, net | - | - | - | 4,545 | - | 4,545 | - | |||||||||||||||||||||||||
Gain on eminent domain condemnation, net | - | - | - | 5,685 | - | 5,685 | - | |||||||||||||||||||||||||
Other | 2,297 | 1,824 | 473 | 25.93% | 6,944 | 4,393 | 2,551 | 58.07% | ||||||||||||||||||||||||
Total noninterest income | $ | 11,894 | $ | 10,112 | $ | 1,782 | 17.62 | % | $ | 46,402 | $ | 32,723 | $ | 13,679 | 41.80 | % | ||||||||||||||||
2018
2018 was primarily due to growth in service charges on deposits assumed in the acquisition of CB.
201820182019 Compared to the Nine Months of 2017
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, | Variance | September 30, | Variance | |||||||||||||||||||||||||||||
2018 | 2017 | $ | % | 2018 | 2017 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 26,319 | $ | 21,835 | $ | 4,484 | 20.54% | $ | 69,684 | $ | 65,116 | $ | 4,568 | 7.02% | ||||||||||||||||||
Occupancy | 4,168 | 3,514 | 654 | 18.61% | 10,924 | 9,964 | 960 | 9.63% | ||||||||||||||||||||||||
Equipment | 1,156 | 886 | 270 | 30.47% | 2,910 | 2,674 | 236 | 8.83% | ||||||||||||||||||||||||
Professional services | 1,154 | 1,091 | 63 | 5.77% | 4,374 | 4,191 | 183 | 4.37% | ||||||||||||||||||||||||
Software licenses and maintenance | 2,317 | 1,510 | 807 | 53.44% | 5,836 | 4,698 | 1,138 | 24.22% | ||||||||||||||||||||||||
Stationery and supplies | 251 | 254 | (3 | ) | -1.18% | 795 | 917 | (122 | ) | -13.30% | ||||||||||||||||||||||
Telecommunications expense | 622 | 581 | 41 | 7.06% | 1,711 | 1,763 | (52 | ) | -2.95% | |||||||||||||||||||||||
Marketing and promotion | 1,134 | 1,055 | 79 | 7.49% | 3,638 | 3,484 | 154 | 4.42% | ||||||||||||||||||||||||
Amortization of intangible assets | 1,736 | 343 | 1,393 | 406.12% | 2,395 | 991 | 1,404 | 141.68% | ||||||||||||||||||||||||
Regulatory assessments | 896 | 776 | 120 | 15.46% | 2,276 | 2,361 | (85 | ) | -3.60% | |||||||||||||||||||||||
Insurance | 432 | 446 | (14 | ) | -3.14% | 1,278 | 1,349 | (71 | ) | -5.26% | ||||||||||||||||||||||
Loan expense | 274 | 234 | 40 | 17.09% | 678 | 642 | 36 | 5.61% | ||||||||||||||||||||||||
OREO expense | - | 8 | (8 | ) | -100.00% | 7 | 75 | (68 | ) | -90.67% | ||||||||||||||||||||||
Directors’ expenses | 275 | 251 | 24 | 9.56% | 785 | 719 | 66 | 9.18% | ||||||||||||||||||||||||
Acquisition related expenses | 6,645 | 250 | 6,395 | 2558.00% | 7,942 | 2,176 | 5,766 | 264.98% | ||||||||||||||||||||||||
Other | 1,501 | 1,672 | (171 | ) | -10.23% | 3,847 | 4,576 | (729 | ) | -15.93% | ||||||||||||||||||||||
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| |||||||||
Total noninterest expense | $ | 48,880 | $ | 34,706 | $ | 14,174 | 40.84% | $ | 119,080 | $ | 105,696 | $ | 13,384 | 12.66% | ||||||||||||||||||
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| |||||||||
Noninterest expense to average assets | 1.93% | 1.65% | 1.80% | 1.70% | ||||||||||||||||||||||||||||
Noninterest expense to average assets, excluding acquisition related expenses | 1.67% | 1.64% | 1.68% | 1.67% | ||||||||||||||||||||||||||||
Efficiency ratio (1) | 47.49% | 42.44% | 44.31% | 44.56% | ||||||||||||||||||||||||||||
Efficiency ratio, excluding acquisition related expenses (1) | 41.03% | 42.13% | 41.35% | 43.64% |
For the Three Months Ended September 30, | Variance | For the Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 30,122 | $ | 26,319 | $ | 3,803 | 14.45% | $ | 88,286 | $ | 69,684 | $ | 18,602 | 26.69% | ||||||||||||||||||
Occupancy | 3,976 | 4,168 | (192 | ) | -4.61% | 12,771 | 10,924 | 1,847 | 16.91% | |||||||||||||||||||||||
Equipment | 1,116 | 1,156 | (40 | ) | -3.46% | 3,577 | 2,910 | 667 | 22.92% | |||||||||||||||||||||||
Professional services | 1,688 | 1,154 | 534 | 46.27% | 5,653 | 4,374 | 1,279 | 29.24% | ||||||||||||||||||||||||
Software licenses and maintenance | 2,450 | 2,317 | 133 | 5.74% | 7,414 | 5,836 | 1,578 | 27.04% | ||||||||||||||||||||||||
Marketing and promotion | 1,517 | 1,134 | 383 | 33.77% | 4,149 | 3,638 | 511 | 14.05% | ||||||||||||||||||||||||
Amortization of intangible assets | 2,648 | 1,736 | 912 | 52.53% | 8,338 | 2,395 | 5,943 | 248.14% | ||||||||||||||||||||||||
Telecommunications expense | 656 | 622 | 34 | 5.47% | 2,126 | 1,711 | 415 | 24.25% | ||||||||||||||||||||||||
Regulatory assessments | 147 | 896 | (749 | ) | -83.59% | 1,805 | 2,276 | (471 | ) | -20.69% | ||||||||||||||||||||||
Insurance | 430 | 432 | (2 | ) | -0.46% | 1,368 | 1,278 | 90 | 7.04% | |||||||||||||||||||||||
Loan expense | 308 | 274 | 34 | 12.41% | 1,115 | 678 | 437 | 64.45% | ||||||||||||||||||||||||
Directors’ expenses | 314 | 275 | 39 | 14.18% | 921 | 785 | 136 | 17.32% | ||||||||||||||||||||||||
Stationery and supplies | 259 | 251 | 8 | 3.19% | 867 | 795 | 72 | 9.06% | ||||||||||||||||||||||||
Acquisition related expenses | 244 | 6,645 | (6,401 | ) | -96.33% | 6,005 | 7,942 | (1,937 | ) | -24.39% | ||||||||||||||||||||||
Other | 1,660 | 1,501 | 159 | 10.59% | 5,272 | 3,854 | 1,418 | 36.79% | ||||||||||||||||||||||||
Total noninterest expense | $ | 47,535 | $ | 48,880 | $ | (1,345 | ) | -2.75% | $ | 149,667 | $ | 119,080 | $ | 30,587 | 25.69% | |||||||||||||||||
Noninterest expense to average assets | 1.68% | 1.93% | 1.77% | 1.80% | ||||||||||||||||||||||||||||
Efficiency ratio (1) | 39.60% | 47.49% | 39.89% | 44.31% |
(1) | Noninterest expense divided by net interest income before provision for loan losses plus noninterest income. |
2018 $6.4 million. The third quarter of 2019 also reflected a $780,000 decrease in FDIC assessment expense.20182019 Compared to the Third Quarter of 2017measured as a percentage of average assets was 1.68% for the third quarter of 2019, compared to 1.93% for the third quarter of 2018, compared to 1.65% for2018. The decrease is primarily the third quarterresult of 2017. Iflower acquisition related expenses are excluded, noninterest expense as a percentage of average assets was 1.67% for the third quarter of 2018, compared to 1.64% for the third quarter of 2017.iscan be measured by the efficiency ratio and indicates the percentage of net revenue that is used to cover expenses. For the third quarter of 2018, theThe efficiency ratio was 47.49%, compared to 42.44%39.60% for the third quarter of 2017. If acquisition related expenses are excluded, the efficiency ratio was 41.03%2019, compared to 47.49% for the third quarter of 2018, compared to 42.13% for the same quarter of 2017.2018.$14.2$1.3 million, or 40.84%2.75%, increasedecrease in noninterest expense for the third quarter of 2018 was primarily due to a $6.4 million increase2019 reflects both the impact of merger related expense in acquisition related expenses in connection with the acquisition of CB. Salaries and benefit costs for the third quarter of 2018, increased by $4.5which was $6.4 million principallyhigher than the current quarter, and year-over-year increase in salaries and benefit costs of $3.8 million. Higher expense for accelerated vesting of stock grants and bonus compensation of approximately $1 million, related to the amended employment agreement and consulting agreement for the Company’s retiring Chief Executive Officer contributed to the increase in compensation costs. Year-over-year growth of approximately $2 million was primarily due to additional compensation related costsexpenses for the newly hired and former CB employees. Occupancy and equipmentemployees who were retained after the merger. CDI amortization increased by $924,000 due to the addition of 16 banking centers and an administrative office from CB. Software expense increased by $807,000, including $500,000 related to the acquisition of CB. Amortization of core deposit intangible (“CDI”) increased by $1.4 million$912,000 as a result of the core deposits assumed from CB.
2018
2018.
2019.
September 30, 2018 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,570,072 | $ | 1,014 | $ | (38,208 | ) | $ | 1,532,878 | 84.87 | % | |||||||||
CMO/REMIC - residential | 229,832 | 152 | (6,167 | ) | 223,817 | 12.39 | % | |||||||||||||
Municipal bonds | 50,022 | 308 | (1,591 | ) | 48,739 | 2.70 | % | |||||||||||||
Other securities | 797 | - | - | 797 | 0.04 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalavailable-for-sale securities | $ | 1,850,723 | $ | 1,474 | $ | (45,966 | ) | $ | 1,806,231 | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 144,871 | $ | - | $ | (5,129 | ) | $ | 139,742 | 19.09 | % | |||||||||
Residential mortgage-backed securities | 158,769 | - | (5,502 | ) | 153,267 | 20.92 | % | |||||||||||||
CMO | 216,980 | - | (13,960 | ) | 203,020 | 28.58 | % | |||||||||||||
Municipal bonds | 238,409 | 225 | (7,908 | ) | 230,726 | 31.41 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalheld-to-maturity securities | $ | 759,029 | $ | 225 | $ | (32,499 | ) | $ | 726,755 | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,127,395 | $ | 20,105 | $ | (1,341) | $ | 1,146,159 | 72.99% | ||||||||||||
CMO/REMIC - residential | 381,615 | 1,649 | (336) | 382,928 | 24.38% | ||||||||||||||||
Municipal bonds | 39,564 | 924 | (1) | 40,487 | 2.58% | ||||||||||||||||
Other securities | 832 | - | - | 832 | 0.05% | ||||||||||||||||
Total available-for-sale securities | $ | 1,549,406 | $ | 22,678 | $ | (1,678) | $ | 1,570,406 | 100.00% | ||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 123,917 | $ | 3,238 | $ | (170) | $ | 126,985 | 17.60% | ||||||||||||
Residential mortgage-backed securities | 172,919 | 2,624 | (3) | 175,540 | 24.56% | ||||||||||||||||
CMO | 204,263 | 76 | (1,467) | 202,872 | 29.02% | ||||||||||||||||
Municipal bonds | 202,854 | 4,198 | (558) | 206,494 | 28.82% | ||||||||||||||||
Total held-to-maturity securities | $ | 703,953 | $ | 10,136 | $ | (2,198) | $ | 711,891 | 100.00% | ||||||||||||
December 31, 2017 | ||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,747,780 | $ | 11,231 | $ | (8,102 | ) | $ | 1,750,909 | 84.14 | % | |||||||||
CMO/REMIC - residential | 274,634 | 1,277 | (2,082 | ) | 273,829 | 13.16 | % | |||||||||||||
Municipal bonds | 54,966 | 774 | (244 | ) | 55,496 | 2.66 | % | |||||||||||||
Other securities | 751 | - | - | 751 | 0.04 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalavailable-for-sale securities | $ | 2,078,131 | $ | 13,282 | $ | (10,428 | ) | $ | 2,080,985 | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||
Government agency/GSE | $ | 159,716 | $ | 854 | $ | (2,134 | ) | $ | 158,436 | 19.25 | % | |||||||||
Residential mortgage-backed securities | 176,427 | 667 | (382 | ) | 176,712 | 21.26 | % | |||||||||||||
CMO | 225,072 | - | (8,641 | ) | 216,431 | 27.12 | % | |||||||||||||
Municipal bonds | 268,675 | 2,751 | (3,790 | ) | 267,636 | 32.37 | % | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Totalheld-to-maturity securities | $ | 829,890 | $ | 4,272 | $ | (14,947 | ) | $ | 819,215 | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Holding Gain | Gross Unrealized Holding Loss | Fair Value | Total Percent | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,494,106 | $ | 1,348 | $ | (20,946) | $ | 1,474,508 | 85.03% | ||||||||||||
CMO/REMIC - residential | 217,223 | 353 | (3,525) | 214,051 | 12.34% | ||||||||||||||||
Municipal bonds | 45,621 | 332 | (1,143) | 44,810 | 2.59% | ||||||||||||||||
Other securities | 716 | - | - | 716 | 0.04% | ||||||||||||||||
Total available-for-sale securities | $ | 1,757,666 | $ | 2,033 | $ | (25,614) | $ | 1,734,085 | 100.00% | ||||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||
Government agency/GSE | $ | 138,274 | $ | 572 | $ | (2,622) | $ | 136,224 | 18.57% | ||||||||||||
Residential mortgage-backed securities | 153,874 | - | (3,140) | 150,734 | 20.67% | ||||||||||||||||
CMO | 215,336 | - | (12,081) | 203,255 | 28.93% | ||||||||||||||||
Municipal bonds | 236,956 | 556 | (6,188) | 231,324 | 31.83% | ||||||||||||||||
Total held-to-maturity securities | $ | 744,440 | $ | 1,128 | $ | (24,031) | $ | 721,537 | 100.00% | ||||||||||||
September 30, 2018 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 1,193,435 | $ | (24,475 | ) | $ | 287,707 | $ | (13,733 | ) | $ | 1,481,142 | $ | (38,208 | ) | |||||||||
CMO/REMIC - residential | 139,064 | (3,053 | ) | 60,925 | (3,114 | ) | 199,989 | (6,167 | ) | |||||||||||||||
Municipal bonds | 11,257 | (389 | ) | 12,987 | (1,202 | ) | 24,244 | (1,591 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalavailable-for-sale securities | $ | 1,343,756 | $ | (27,917 | ) | $ | 361,619 | $ | (18,049 | ) | $ | 1,705,375 | $ | (45,966 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||||||
Government agency/GSE | $ | 99,203 | $ | (2,326 | ) | $ | 40,539 | $ | (2,803 | ) | $ | 139,742 | $ | (5,129 | ) | |||||||||
Residential mortgage-backed securities | 101,083 | (3,206 | ) | 52,184 | (2,296 | ) | 153,267 | (5,502 | ) | |||||||||||||||
CMO | - | - | 203,020 | (13,960 | ) | 203,020 | (13,960 | ) | ||||||||||||||||
Municipal bonds | 116,918 | (2,143 | ) | 67,284 | (5,765 | ) | 184,202 | (7,908 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalheld-to-maturity securities | $ | 317,204 | $ | (7,675 | ) | $ | 363,027 | $ | (24,824 | ) | $ | 680,231 | $ | (32,499 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
December 31, 2017 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||
Investment securitiesavailable-for-sale: | ||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 414,091 | $ | (1,828 | ) | $ | 303,746 | $ | (6,274 | ) | $ | 717,837 | $ | (8,102 | ) | |||||||||
CMO/REMIC - residential | 95,137 | (487 | ) | 71,223 | (1,595 | ) | 166,360 | (2,082 | ) | |||||||||||||||
Municipal bonds | 946 | (4 | ) | 13,956 | (240 | ) | 14,902 | (244 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalavailable-for-sale securities | $ | 510,174 | $ | (2,319 | ) | $ | 388,925 | $ | (8,109 | ) | $ | 899,099 | $ | (10,428 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Investment securitiesheld-to-maturity: | ||||||||||||||||||||||||
Government agency/GSE | $ | 18,950 | $ | (27 | ) | $ | 43,495 | $ | (2,107 | ) | $ | 62,445 | $ | (2,134 | ) | |||||||||
Residential mortgage-backed securities | 51,297 | (188 | ) | 55,306 | (194 | ) | 106,603 | (382 | ) | |||||||||||||||
CMO | - | - | 216,431 | (8,641 | ) | 216,431 | (8,641 | ) | ||||||||||||||||
Municipal bonds | 32,069 | (492 | ) | 66,217 | (3,298 | ) | 98,286 | (3,790 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Totalheld-to-maturity securities | $ | 102,316 | $ | (707 | ) | $ | 381,449 | $ | (14,240 | ) | $ | 483,765 | $ | (14,947 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 2 | $ | - | $ | 127,904 | $ | (1,341 | ) | $ | 127,906 | $ | (1,341 | ) | |||||||||||
CMO/REMIC - residential | 122,595 | (156 | ) | 39,498 | (180 | ) | 162,093 | (336 | ) | ||||||||||||||||
Municipal bonds | - | - | 564 | (1 | ) | 564 | (1 | ) | |||||||||||||||||
Total available-for-sale securities | $ | 122,597 | $ | (156 | ) | $ | 167,966 | $ | (1,522 | ) | $ | 290,563 | $ | (1,678 | ) | ||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||
Government agency/GSE | $ | - | $ | - | $ | 19,923 | $ | (170 | ) | $ | 19,923 | $ | (170 | ) | |||||||||||
Residential mortgage-backed securities | 5,021 | (3 | ) | - | - | 5,021 | (3 | ) | |||||||||||||||||
CMO | - | - | 178,297 | (1,467 | ) | 178,297 | (1,467 | ) | |||||||||||||||||
Municipal bonds | 3,037 | (5 | ) | 32,217 | (553 | ) | 35,254 | (558 | ) | ||||||||||||||||
Total held-to-maturity securities | $ | 8,058 | $ | (8 | ) | $ | 230,437 | $ | (2,190 | ) | $ | 238,495 | $ | (2,198 | ) | ||||||||||
December 31, 2018 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | Fair Value | Gross Unrealized Holding Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Residential mortgage-backed securities | $ | 692,311 | $ | (4,864 | ) | $ | 593,367 | $ | (16,082 | ) | $ | 1,285,678 | $ | (20,946 | ) | ||||||||||
CMO/REMIC - residential | 36,582 | (365 | ) | 135,062 | (3,160 | ) | 171,644 | (3,525 | ) | ||||||||||||||||
Municipal bonds | 9,568 | (188 | ) | 14,181 | (955 | ) | 23,749 | (1,143 | ) | ||||||||||||||||
Total available-for-sale securities | $ | 738,461 | $ | (5,417 | ) | $ | 742,610 | $ | (20,197 | ) | $ | 1,481,071 | $ | (25,614 | ) | ||||||||||
Investment securities held-to-maturity: | |||||||||||||||||||||||||
Government agency/GSE | $ | 7,479 | $ | (15 | ) | $ | 54,944 | $ | (2,607 | ) | $ | 62,423 | $ | (2,622 | ) | ||||||||||
Residential mortgage-backed securities | 59,871 | (484 | ) | 90,863 | (2,656 | ) | 150,734 | (3,140 | ) | ||||||||||||||||
CMO | - | - | 203,254 | (12,081 | ) | 203,254 | (12,081 | ) | |||||||||||||||||
Municipal bonds | 70,989 | (778 | ) | 77,723 | (5,410 | ) | 148,712 | (6,188 | ) | ||||||||||||||||
Total held-to-maturity securities | $ | 138,339 | $ | (1,277 | ) | $ | 426,784 | $ | (22,754 | ) | $ | 565,123 | $ | (24,031 | ) | ||||||||||
acquired from the recent CB merger.
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Commercial and industrial | $ | 1,021,906 | $ | 513,325 | ||||
SBA | 357,052 | 122,055 | ||||||
Real estate: | ||||||||
Commercial real estate | 5,268,740 | 3,376,713 | ||||||
Construction | 123,274 | 77,982 | ||||||
SFR mortgage | 292,516 | 236,202 | ||||||
Dairy & livestock and agribusiness | 304,598 | 347,289 | ||||||
Municipal lease finance receivables | 67,581 | 70,243 | ||||||
Consumer and other loans | 134,796 | 64,229 | ||||||
|
|
|
|
|
| |||
Gross loans, excluding PCI loans | 7,570,463 | 4,808,038 | ||||||
Less: Deferred loan fees, net | (5,264 | ) | (6,289 | ) | ||||
|
|
|
|
|
| |||
Gross loans, excluding PCI loans, net of deferred loan fees | 7,565,199 | 4,801,749 | ||||||
Less: Allowance for loan losses | (59,802 | ) | (59,218 | ) | ||||
|
|
|
|
|
| |||
Net loans, excluding PCI loans | 7,505,397 | 4,742,531 | ||||||
|
|
|
|
|
| |||
PCI Loans | 17,260 | 30,908 | ||||||
Discount on PCI loans | - | (2,026 | ) | |||||
Less: Allowance for loan losses | (205 | ) | (367 | ) | ||||
|
|
|
|
|
| |||
PCI loans, net | 17,055 | 28,515 | ||||||
|
|
|
|
|
| |||
Total loans and lease finance receivables | $ | 7,522,452 | $ | 4,771,046 | ||||
|
|
|
|
|
|
September 30, 2019 | December 31, 2018 | ||||||||||||||||
Total Loans and Leases | Non-PCI Loansand Leases | PCI Loans | Total Loans and Leases | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Commercial and industrial | $ | 921,678 | $ | 1,002,209 | $ | 519 | $ | 1,002,728 | |||||||||
SBA | 319,571 | 350,043 | 1,258 | 351,301 | |||||||||||||
Real estate: | |||||||||||||||||
Commercial real estate | 5,375,668 | 5,394,229 | 14,407 | 5,408,636 | |||||||||||||
Construction | 119,931 | 122,782 | - | 122,782 | |||||||||||||
SFR mortgage | 278,644 | 296,504 | 145 | 296,649 | |||||||||||||
Dairy & livestock and agribusiness | 311,229 | 393,843 | 700 | 394,543 | |||||||||||||
Municipal lease finance receivables | 54,468 | 64,186 | - | 64,186 | |||||||||||||
Consumer and other loans | 117,128 | 128,429 | 185 | 128,614 | |||||||||||||
Gross loans | 7,498,317 | 7,752,225 | 17,214 | 7,769,439 | |||||||||||||
Less: Deferred loan fees, net | (3,866 | ) | (4,828 | ) | - | (4,828 | ) | ||||||||||
Gross loans, net of deferred loan fees | 7,494,451 | 7,747,397 | 17,214 | 7,764,611 | |||||||||||||
Less: Allowance for loan losses | (68,672 | ) | (63,409 | ) | (204 | ) | (63,613 | ) | |||||||||
Total loans and lease finance receivables | $ | 7,425,779 | $ | 7,683,988 | $ | 17,010 | $ | 7,700,998 | |||||||||
2018.
As of September 30, 2018,2019, the Company had $123.3$119.9 million in construction loans. This represents 1.62%1.60% of total gross loans There were no PCI construction loans at September 30, 2018. At September 30, 2018, construction loans consisted of $62.9 million in SFR construction loans and $60.4 million in commercial construction loans. There were no nonperforming construction loans at September 30, 2018.
PCI Loans from the SJB Acquisition
These PCI loans were acquired from SJB on October 16, 2009 and were subject to a loss sharing agreement with the FDIC. Under the terms of such loss sharing agreement, the FDIC absorbed 80% of losses and shared in 80% of loss recoveries up to $144.0 million in losses with respect to covered assets, after a first loss amount of $26.7 million. The loss sharing agreement covered 5 years for commercial loans and covers 10 years for single-family residential loans from the October 16, 2009 acquisition date and the loss recovery provisions are in effect for 8 and 10 years, respectively, for commercial and single-family residential loans from the acquisition date. The loss sharing agreement for commercial loans expired October 16, 2014. The loss sharing agreement with the FDIC for single-family residential loans, which would have expired on October 16, 2019, was terminated by the Bank on July 20, 2018.
The PCI loan portfolio included unfunded commitments for commercial lines of credit, construction draws and other lending activity. The total commitments outstanding as of the acquisition date are included under the shared-loss agreement. As such, any additional advances up to the total commitment outstanding at the time of acquisition were covered under the loss sharing agreement.
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Commercial and industrial | $ | 459 | $ | 934 | ||||
SBA | 1,286 | 1,383 | ||||||
Real estate: | ||||||||
Commercial real estate | 14,979 | 27,431 | ||||||
Construction | - | - | ||||||
SFR mortgage | 150 | 162 | ||||||
Dairy & livestock and agribusiness | 200 | 770 | ||||||
Municipal lease finance receivables | - | - | ||||||
Consumer and other loans | 186 | 228 | ||||||
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| |||
Gross PCI loans | 17,260 | 30,908 | ||||||
Less: Purchase accounting discount | - | (2,026 | ) | |||||
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| |||
Gross PCI loans, net of discount | 17,260 | 28,882 | ||||||
Less: Allowance for PCI loan losses | (205 | ) | (367 | ) | ||||
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| |||
Net PCI loans | $ | 17,055 | $ | 28,515 | ||||
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Our loan portfolio is from a variety of areas throughout our marketplace. The following is the breakdown of our total Los Angeles County Central Valley Inland Empire Orange County Central Coast San Diego Other California Out of State commercial real estate loans, excluding PCI loans, by region as of September 30, 2018. September 30, 2018 Total Loans Commercial Real Estate
Loans (Dollars in thousands) $ 3,387,019 44.8% $ 2,329,136 44.2% 1,031,876 13.6% 756,165 14.4% 1,098,359 14.5% 894,096 17.0% 970,999 12.8% 621,192 11.8% 426,405 5.6% 333,704 6.3% 224,749 3.0% 111,637 2.1% 147,732 2.0% 63,650 1.2% 283,324 3.7% 159,160 3.0% $ 7,570,463 100.0% $ 5,268,740 100.0% The following is the breakdown of total PCIheld-for-investment2018.
September 30, 2018 | ||||||||||||||||
Total PCI Loans | Commercial Real Estate Loans | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Central Valley | $ | 17,260 | 100.0% | $ | 14,979 | 100.0% | ||||||||||
Los Angeles County | - | - | - | - | ||||||||||||
Central Coast | - | - | - | - | ||||||||||||
Other California | - | - | - | - | ||||||||||||
Out of State | - | - | - | - | ||||||||||||
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$ | 17,260 | 100.0% | $ | 14,979 | 100.0% | |||||||||||
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2019.
September 30, 2019 | ||||||||||||||||
Total Loans | Commercial Real Estate Loans | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Los Angeles County | $ | 3,301,874 | 44.0% | $ | 2,267,332 | 42.2% | ||||||||||
Central Valley | 1,112,079 | 14.8% | 879,344 | 16.3% | ||||||||||||
Orange County | 1,008,152 | 13.5% | 665,360 | 12.4% | ||||||||||||
Inland Empire | 976,892 | 13.0% | 853,110 | 15.9% | ||||||||||||
Central Coast | 420,226 | 5.6% | 343,152 | 6.4% | ||||||||||||
San Diego | 227,235 | 3.0% | 129,115 | 2.4% | ||||||||||||
Other California | 140,005 | 1.9% | 70,640 | 1.3% | ||||||||||||
Out of State | 311,854 | 4.2% | 167,615 | 3.1% | ||||||||||||
$ | 7,498,317 | 100.0% | $ | 5,375,668 | 100.0% | |||||||||||
September 30, 2018 | ||||||||||||||||
Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
SFR mortgage: | ||||||||||||||||
SFR mortgage - Direct | $ | 275,319 | 5.0 | % | 100.0% | $ | 633 | |||||||||
SFR mortgage - Mortgage pools | 17,197 | 0.3 | % | 100.0% | 249 | |||||||||||
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Total SFR mortgage | 292,516 | 5.3 | % | |||||||||||||
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Commercial real estate: | ||||||||||||||||
Multi-family | 490,869 | 8.8 | % | - | 1,501 | |||||||||||
Industrial | 1,920,929 | 34.5 | % | 54.9% | 1,420 | |||||||||||
Office | 909,606 | 16.4 | % | 28.5% | 1,432 | |||||||||||
Retail | 802,184 | 14.4 | % | 10.9% | 1,675 | |||||||||||
Medical | 263,695 | 4.8 | % | 43.6% | 1,806 | |||||||||||
Secured by farmland (2) | 219,603 | 3.9 | % | 98.5% | 1,996 | |||||||||||
Other (3) | 661,854 | 11.9 | % | 47.2% | 1,442 | |||||||||||
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Total commercial real estate | 5,268,740 | 94.7 | % | |||||||||||||
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Total SFR mortgage and commercial real estate loans | $ | 5,561,256 | 100.0 | % | 42.0% | 1,386 | ||||||||||
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September 30, 2019 | |||||||||||||||||
Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Industrial | $ | 1,890,465 | 35.2% | 54.6% | $ | 1,430 | |||||||||||
Office | 921,565 | 17.1% | 26.9% | 1,506 | |||||||||||||
Retail | 800,406 | 14.9% | 13.1% | 1,707 | |||||||||||||
Multi-family | 577,700 | 10.7% | 0.5% | 1,596 | |||||||||||||
Medical | 279,805 | 5.2% | 45.3% | 1,829 | |||||||||||||
Secured by farmland (2) | 245,574 | 4.6% | 100.0% | 2,030 | |||||||||||||
Other (3) | 660,153 | 12.3% | 50.7% | 1,423 | |||||||||||||
Total commercial real estate | $ | 5,375,668 | 100.0% | 39.0% | 1,535 | ||||||||||||
(1) | Represents percentage of reported owner-occupied at origination in each real estate loan category. |
The loans secured by farmland included |
Other loans consist of a variety of loan types, none of which exceeds |
In the table above, SFR mortgage — Direct loans include SFR mortgage loans which are currently generated through an internal program in our Centers. This program is focused on owner-occupied SFR’s with definedloan-to-value,debt-to-income and other credit criteria, such as FICO credit scores, that we believe are appropriate for loans which are primarily intended for retention in our Bank’s loan portfolio. We originated loan volume in the aggregate principal amount
In addition, we previously purchased pools of owner-occupied single-family loans from real estate lenders, SFR mortgage — Mortgage Pools, with a remaining balance totaling $17.2 million at September 30, 2018. These loans were purchased with average FICO scores predominantly ranging from 700 to over 800 and overall originalloan-to-value ratios of 60% to 80%. We have not purchased any mortgage pools since August 2007.
The table below breaks down our PCI real estate portfolio.
September 30, 2018 | ||||||||||||||||
Loan Balance | Percent | Percent Owner- Occupied (1) | Average Loan Balance | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
SFR mortgage | ||||||||||||||||
SFR mortgage - Direct | $ | 150 | 1.0% | 100.0% | $ | 150 | ||||||||||
SFR mortgage - Mortgage pools | - | - | - | - | ||||||||||||
Total SFR mortgage | 150 | 1.0% | ||||||||||||||
Commercial real estate: | ||||||||||||||||
Multi-family | 560 | 3.7% | - | 560 | ||||||||||||
Industrial | 2,607 | 17.2% | �� | 78.8% | 326 | |||||||||||
Office | 1,300 | 8.6% | 100.0% | 325 | ||||||||||||
Retail | 1,444 | 9.6% | 0.6% | 289 | ||||||||||||
Medical | 2,017 | 13.3% | 100.0% | 672 | ||||||||||||
Secured by farmland | 1,178 | 7.8% | 100.0% | 295 | ||||||||||||
Other (2) | 5,873 | 38.8% | 75.7% | 452 | ||||||||||||
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Total commercial real estate | 14,979 | 99.0% | ||||||||||||||
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Total SFR mortgage and commercial real estate loans | $ | 15,129 | 100.0% | 73.7% | 388 | |||||||||||
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Contents
September 30, 2018 | December 31, 2017 | |||||||
(Dollars in thousands) | ||||||||
Nonaccrual loans | $ | 12,910 | $ | 6,516 | ||||
Troubled debt restructured loans (nonperforming) | 3,520 | 4,200 | ||||||
OREO, net | 420 | 4,527 | ||||||
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Total nonperforming assets | $ | 16,850 | $ | 15,243 | ||||
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Troubled debt restructured performing loans | $ | 3,753 | $ | 4,809 | ||||
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Percentage of nonperforming assets to total loans outstanding, net of deferred fees, and OREO | 0.22% | 0.32% | ||||||
Percentage of nonperforming assets to total assets | 0.15% | 0.18% |
September 30, 2019 | December 31, 2018 | |||||||
(Dollars in thousands) | ||||||||
Nonaccrual loans | $ | 6,363 | $ | 16,442 | ||||
Troubled debt restructured loans (nonperforming) | 249 | 3,509 | ||||||
OREO, net | 9,450 | 420 | ||||||
Total nonperforming assets | $ | 16,062 | $ | 20,371 | ||||
Troubled debt restructured performing loans | $ | 3,168 | $ | 3,594 | ||||
Percentage of nonperforming assets to total loans outstanding, net of deferred fees, and OREO | 0.21% | 0.26% | ||||||
Percentage of nonperforming assets to total assets | 0.14% | 0.18% |
(1) | Excludes PCI loans. |
(“TDRs”)
September 30, 2019 | December 31, 2018 | ||||||||||||||||
Balance | Number of Loans | Balance | Number of Loans | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Performing TDRs: | |||||||||||||||||
Commercial and industrial | $ | 88 | 2 | $ | 135 | 2 | |||||||||||
SBA | 542 | 1 | 575 | 1 | |||||||||||||
Real Estate: | |||||||||||||||||
Commercial real estate | 417 | 1 | 472 | 1 | |||||||||||||
Construction | - | - | - | - | |||||||||||||
SFR mortgage | 2,121 | 8 | 2,412 | 9 | |||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | |||||||||||||
Consumer and other | - | - | - | - | |||||||||||||
Total performing TDRs | $ | 3,168 | 12 | $ | 3,594 | 13 | |||||||||||
Nonperforming TDRs: | |||||||||||||||||
Commercial and industrial | $ | 1 | 1 | $ | 21 | 1 | |||||||||||
SBA | - | - | - | - | |||||||||||||
Real Estate: | |||||||||||||||||
Commercial real estate | - | - | 3,143 | 1 | |||||||||||||
Construction | - | - | - | - | |||||||||||||
SFR mortgage | - | - | - | - | |||||||||||||
Dairy & livestock and agribusiness | - | - | 78 | 1 | |||||||||||||
Consumer and other | 248 | 1 | 267 | 1 | |||||||||||||
Total nonperforming TDRs | $ | 249 | 2 | $ | 3,509 | 4 | |||||||||||
Total TDRs | $ | 3,417 | 14 | $ | 7,103 | 17 | |||||||||||
September 30, 2018 | December 31, 2017 | |||||||||||||||
Number of | Number of | |||||||||||||||
Balance | Loans | Balance | Loans | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Performing TDRs: | ||||||||||||||||
Commercial and industrial | $ | 142 | 2 | $ | 190 | 3 | ||||||||||
SBA | 588 | 1 | 625 | 1 | ||||||||||||
Real Estate: | ||||||||||||||||
Commercial real estate | 492 | 1 | 1,291 | 2 | ||||||||||||
Construction | - | - | - | - | ||||||||||||
SFR mortgage | 2,531 | 10 | 2,703 | 10 | ||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | ||||||||||||
Consumer and other | - | - | - | - | ||||||||||||
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Total performing TDRs | $ | 3,753 | 14 | $ | 4,809 | 16 | ||||||||||
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Nonperforming TDRs: | ||||||||||||||||
Commercial and industrial | $ | 27 | 1 | $ | 50 | 1 | ||||||||||
SBA | - | - | 281 | 2 | ||||||||||||
Real Estate: | ||||||||||||||||
Commercial real estate | 3,143 | 1 | 3,791 | 2 | ||||||||||||
Construction | - | - | - | - | ||||||||||||
SFR mortgage | - | - | - | - | ||||||||||||
Dairy & livestock and agribusiness | 78 | 1 | 78 | 1 | ||||||||||||
Consumer and other | 272 | 1 | - | - | ||||||||||||
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Total nonperforming TDRs | $ | 3,520 | 4 | $ | 4,200 | 6 | ||||||||||
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Total TDRs | $ | 7,273 | 18 | $ | 9,009 | 22 | ||||||||||
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September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
Commercial and industrial | $ | 3,026 | $ | 204 | $ | 272 | $ | 250 | $ | 313 | ||||||||||
SBA | 3,005 | 574 | 589 | 906 | 1,611 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 5,856 | 6,517 | 6,746 | 6,842 | 6,728 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | 2,961 | 1,578 | 1,309 | 1,337 | 1,349 | |||||||||||||||
Dairy & livestock and agribusiness | 775 | 800 | 818 | 829 | 829 | |||||||||||||||
Consumer and other loans | 807 | 509 | 438 | 552 | 743 | |||||||||||||||
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Total | $ | 16,430 | $ | 10,182 | $ | 10,172 | $ | 10,716 | $ | 11,573 | ||||||||||
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| ||||||
% of Total gross loans | 0.22% | 0.21% | 0.21% | 0.22% | 0.24% | |||||||||||||||
Past due30-89 days: | ||||||||||||||||||||
Commercial and industrial | $ | 274 | $ | - | $ | - | $ | 768 | $ | 45 | ||||||||||
SBA | 123 | - | - | 403 | - | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | 220 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | 680 | - | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | 98 | 47 | 63 | 1 | 6 | |||||||||||||||
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| ||||||
Total | $ | 495 | $ | 47 | $ | 743 | $ | 1,172 | $ | 271 | ||||||||||
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| ||||||
% of Total gross loans | 0.01% | 0.001% | 0.02% | 0.02% | 0.01% | |||||||||||||||
OREO: | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | |||||||||||||||
Construction | - | - | - | 4,527 | 4,527 | |||||||||||||||
SFR mortgage | 420 | - | - | - | - | |||||||||||||||
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| ||||||
Total | $ | 420 | $ | - | $ | - | $ | 4,527 | $ | 4,527 | ||||||||||
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| ||||||
Total nonperforming, past due, and OREO | $ | 17,345 | $ | 10,229 | $ | 10,915 | $ | 16,415 | $ | 16,371 | ||||||||||
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| ||||||
% of Total gross loans | 0.23% | 0.21% | 0.23% | 0.34% | 0.34% |
September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
Commercial and industrial | $ | 1,550 | $ | 1,993 | $ | 8,388 | $ | 7,490 | $ | 3,026 | ||||||||||
SBA | 2,706 | 5,082 | 4,098 | 2,892 | 3,005 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 1,083 | 1,095 | 1,134 | 6,068 | 5,856 | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | 888 | 2,720 | 2,894 | 2,937 | 2,961 | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | 78 | 775 | |||||||||||||||
Consumer and other loans | 385 | 397 | 477 | 486 | 807 | |||||||||||||||
Total | $ | 6,612 | $ | 11,287 | $ | 16,991 | $ | 19,951 | $ | 16,430 | ||||||||||
% of Total gross loans | 0.09% | 0.15% | 0.22% | 0.26% | 0.22% | |||||||||||||||
Past due 30-89 days: | ||||||||||||||||||||
Commercial and industrial | $ | 756 | $ | 310 | $ | 369 | $ | 909 | $ | 274 | ||||||||||
SBA | 303 | - | 601 | 1,307 | 123 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 368 | - | 124 | 2,789 | - | |||||||||||||||
Construction | - | - | - | - | - | |||||||||||||||
SFR mortgage | - | - | - | 285 | - | |||||||||||||||
Dairy & livestock and agribusiness | - | - | - | - | - | |||||||||||||||
Consumer and other loans | - | 22 | 101 | - | 98 | |||||||||||||||
Total | $ | 1,427 | $ | 332 | $ | 1,195 | $ | 5,290 | $ | 495 | ||||||||||
% of Total gross loans | 0.02% | 0.004% | 0.02% | 0.07% | 0.01% | |||||||||||||||
OREO: | ||||||||||||||||||||
SBA | $ | 444 | $ | - | $ | - | $ | - | $ | - | ||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 2,275 | 2,275 | 2,275 | - | - | |||||||||||||||
SFR mortgage | 6,731 | - | - | 420 | 420 | |||||||||||||||
Total | $ | 9,450 | $ | 2,275 | $ | 2,275 | $ | 420 | $ | 420 | ||||||||||
Total nonperforming, past due, and OREO | $ | 17,489 | $ | 13,894 | $ | 20,461 | $ | 25,661 | $ | 17,345 | ||||||||||
% of Total gross loans | 0.23% | 0.18% | 0.27% | 0.33% | 0.23% |
2019.
Acquired SJB Assets
Loans acquired through the SJB acquisition are accounted for under ASC Topic310-30,Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC310-30”). PCI loans accounted for under ASC310-30 are generally considered accruing and performing loans as the loans accrete interest income over the estimated life
As of and For the | ||||||||
Nine Months Ended | ||||||||
September 30, | ||||||||
2018 | 2017 | |||||||
(Dollars in thousands) | ||||||||
Allowance for loan losses at beginning of period | $ | 59,585 | $ | 61,540 | ||||
Charge-offs: | ||||||||
Commercial and industrial | - | (138 | ) | |||||
SBA | (257 | ) | - | |||||
Commercial real estate | - | - | ||||||
Construction | - | - | ||||||
SFR mortgage | - | - | ||||||
Dairy & livestock and agribusiness | - | - | ||||||
Consumer and other loans | (10 | ) | (11 | ) | ||||
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|
|
|
| |||
Total charge-offs | (267 | ) | (149 | ) | ||||
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|
| |||
Recoveries: | ||||||||
Commercial and industrial | 81 | 106 | ||||||
SBA | 15 | 47 | ||||||
Commercial real estate | - | 154 | ||||||
Construction | 1,945 | 5,774 | ||||||
SFR mortgage | - | 64 | ||||||
Dairy & livestock and agribusiness | 19 | 19 | ||||||
Consumer and other loans | 129 | 76 | ||||||
|
|
|
|
|
| |||
Total recoveries | 2,189 | 6,240 | ||||||
|
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|
|
| |||
Net recoveries | 1,922 | 6,091 | ||||||
Recapture of provision for loan losses | (1,500 | ) | (7,000 | ) | ||||
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|
|
| |||
Allowance for loan losses at end of period | $ | 60,007 | $ | 60,631 | ||||
|
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|
|
|
| |||
Summary of reserve for unfunded loan commitments: | ||||||||
Reserve for unfunded loan commitments at beginning of period | $ | 6,306 | $ | 6,706 | ||||
Estimated fair value of reserve for unfunded loan commitment assumed from Community Bank | 2,903 | - | ||||||
Provision for unfunded loan commitments | - | - | ||||||
|
|
|
|
|
| |||
Reserve for unfunded loan commitments at end of period | $ | 9,209 | $ | 6,706 | ||||
|
|
|
|
|
| |||
Reserve for unfunded loan commitments to total unfunded loan commitments | 0.54% | 0.66% | ||||||
Amount of total loans at end of period (1) | $ | 7,582,459 | $ | 4,746,424 | ||||
Average total loans outstanding (1) | $ | 5,312,558 | $ | 4,579,054 | ||||
Net recoveries to average total loans | 0.04% | 0.13% | ||||||
Net recoveries to total loans at end of period | 0.03% | 0.13% | ||||||
Allowance for loan losses to average total loans | 1.13% | 1.32% | ||||||
Allowance for loan losses to total loans at end of period | 0.79% | 1.28% | ||||||
Net recoveries to allowance for loan losses | 3.20% | 10.05% | ||||||
Net recoveries to recapture of provision for loan losses | 128.13% | 87.01% |
As of and For the Nine Months Ended September 30, | ||||
2019 | 2018 | |||
(Dollars in thousands) | ||||
Allowance for loan losses at beginning of period | $ 63,613 | $ 59,585 | ||
Charge-offs: | ||||
Commercial and industrial | (48) | - | ||
SBA | (295) | (257) | ||
Commercial real estate | - | - | ||
Construction | - | - | ||
SFR mortgage | - | - | ||
Dairy & livestock and agribusiness | (78) | - | ||
Consumer and other loans | (7) | (10) | ||
Total charge-offs | (428) | (267) | ||
Recoveries: | ||||
Commercial and industrial | 253 | 81 | ||
SBA | 9 | 15 | ||
Commercial real estate | - | - | ||
Construction | 9 | 1,945 | ||
SFR mortgage | 191 | - | ||
Dairy & livestock and agribusiness | 19 | 19 | ||
Consumer and other loans | 6 | 129 | ||
Total recoveries | 487 | 2,189 | ||
Net recoveries | 59 | 1,922 | ||
Provision for (recapture of) loan losses | 5,000 | (1,500) | ||
Allowance for loan losses at end of period | $ 68,672 | $ 60,007 | ||
Summary of reserve for unfunded loan commitments: | ||||
Reserve for unfunded loan commitments at beginning of period | $ 8,959 | $ 6,306 | ||
Estimated fair value of reserve for unfunded loan commitment assumed from Community Bank | - | 2,903 | ||
Provision for unfunded loan commitments | - | - | ||
Reserve for unfunded loan commitments at end of period | $ 8,959 | $ 9,209 | ||
Reserve for unfunded loan commitments to total unfunded loan commitments | 0.55% | 0.54% | ||
Amount of total loans at end of period (1) | $ 7,494,451 | $ 7,582,459 | ||
Average total loans outstanding (1) | $ 7,571,502 | $ 5,312,558 | ||
Net recoveries to average total loans | 0.00% | 0.04% | ||
Net recoveries to total loans at end of period | 0.00% | 0.03% | ||
Allowance for loan losses to average total loans | 0.91% | 1.13% | ||
Allowance for loan losses to total loans at end of period | 0.92% | 0.79% | ||
Net recoveries to allowance for loan losses | 0.09% | 3.20% | ||
Net recoveries to provision for (recapture of) loan losses | 1.18% | -128.13% |
(1) | Includes PCI loans and is net of deferred loan origination fees, costs and discounts. |
portfolios that exceeded remaining unaccreted fair value credit discounts.
September 30, 2018 | December 31, 2017 | |||||||||||||||
Balance | Percent | Balance | Percent | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Noninterest-bearing deposits | $ | 5,224,154 | 57.35 | % | $ | 3,846,436 | 58.75 | % | ||||||||
Interest-bearing deposits | ||||||||||||||||
Investment checking | 455,388 | 5.00 | % | 433,971 | 6.63 | % | ||||||||||
Money market | 2,407,331 | 26.43 | % | 1,517,050 | 23.17 | % | ||||||||||
Savings | 411,055 | 4.50 | % | 364,049 | 5.56 | % | ||||||||||
Time deposits | 611,898 | 6.72 | % | 385,347 | 5.89 | % | ||||||||||
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|
|
|
|
|
|
|
|
|
|
| |||||
Total deposits | $ | 9,109,826 | 100.00 | % | $ | 6,546,853 | 100.00 | % | ||||||||
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|
September 30, 2019 | December 31, 2018 | ||||||||||||||||
Balance | Percent | Balance | Percent | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Noninterest-bearing deposits | $ | 5,385,104 | 61.23% | $ | 5,204,787 | 58.96% | |||||||||||
Interest-bearing deposits | |||||||||||||||||
Investment checking | 433,615 | 4.93% | 460,972 | 5.22% | |||||||||||||
Money market | 2,110,780 | 24.00% | 2,236,018 | 25.33% | |||||||||||||
Savings | 403,108 | 4.59% | 393,769 | 4.46% | |||||||||||||
Time deposits | 461,723 | 5.25% | 531,944 | 6.03% | |||||||||||||
Total deposits | $ | 8,794,330 | 100.00% | $ | 8,827,490 | 100.00% | |||||||||||
2018.
2018.
Maturity by Period | ||||||||||||||||||||
Less Than | One Year | Four Years | Over | |||||||||||||||||
One | Through | Through | Five | |||||||||||||||||
Total | Year | Three Years | Five Years | Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Deposits (1) | $ | 9,109,826 | $ | 8,932,859 | $ | 159,357 | $ | 8,922 | $ | 8,688 | ||||||||||
Customer repurchase agreements (1) | 399,477 | 399,477 | - | - | - | |||||||||||||||
Junior subordinated debentures (1) | 25,774 | - | - | - | 25,774 | |||||||||||||||
Deferred compensation | 19,159 | 1,104 | 1,340 | 1,109 | 15,606 | |||||||||||||||
Operating leases | 26,351 | 9,521 | 10,973 | 4,400 | 1,457 | |||||||||||||||
Affordable housing investment | 9,104 | 3,834 | 4,328 | 881 | 61 | |||||||||||||||
Advertising agreements | 1,150 | 1,150 | - | - | - | |||||||||||||||
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| ||||||
Total | $ | 9,590,841 | $ | 9,347,945 | $ | 175,998 | $ | 15,312 | $ | 51,586 | ||||||||||
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Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year Through Three Years | Four Years Through Five Years | Over Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Deposits (1) | $ | 8,794,330 | $ | 8,674,968 | $ | 107,752 | $ | 3,251 | $ | 8,359 | ||||||||||
Customer repurchase agreements (1) | 407,850 | 407,850 | - | - | - | |||||||||||||||
Junior subordinated debentures (1) | 25,774 | - | - | - | 25,774 | |||||||||||||||
Deferred compensation | 23,305 | 723 | 1,356 | 807 | 20,419 | |||||||||||||||
Operating leases | 23,533 | 7,349 | 9,905 | 4,297 | 1,982 | |||||||||||||||
Affordable housing investment | 6,242 | 4,167 | 1,984 | 55 | 36 | |||||||||||||||
Total | $ | 9,281,034 | $ | 9,095,057 | $ | 120,997 | $ | 8,410 | $ | 56,570 | ||||||||||
(1) | Amounts exclude accrued interest. |
2018.
Maturity by Period | ||||||||||||||||||||
Less Than | One Year | Four Years | After | |||||||||||||||||
One | to Three | to Five | Five | |||||||||||||||||
Total | Year | Years | Years | Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||
Commercial and industrial | $ | 956,748 | $ | 664,476 | $ | 222,850 | $ | 16,406 | $ | 53,016 | ||||||||||
SBA | 1,047 | 12 | 4 | - | 1,031 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 237,567 | 56,264 | 83,670 | 85,572 | 12,061 | |||||||||||||||
Construction | 117,147 | 65,230 | 46,593 | - | 5,324 | |||||||||||||||
SFR Mortgage | 3,496 | 88 | 1,782 | - | 1,626 | |||||||||||||||
Dairy & livestock and agribusiness (1) | 170,736 | 147,384 | 23,002 | 350 | - | |||||||||||||||
Consumer and other loans | 167,254 | 20,680 | 10,068 | 4,947 | 131,559 | |||||||||||||||
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| ||||||
Total commitment to extend credit | 1,653,995 | 954,134 | 387,969 | 107,275 | 204,617 | |||||||||||||||
Obligations under letters of credit | 54,443 | 45,025 | 8,834 | 200 | 384 | |||||||||||||||
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| ||||||
Total | $ | 1,708,438 | $ | 999,159 | $ | 396,803 | $ | 107,475 | $ | 205,001 | ||||||||||
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|
Maturity by Period | ||||||||||||||||||||
Total | Less Than One Year | One Year to Three Years | Four Years to Five Years | After Five Years | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commitment to extend credit: | ||||||||||||||||||||
Commercial and industrial | $ | 951,334 | $ | 695,927 | $ | 160,214 | $ | 7,333 | $ | 87,860 | ||||||||||
SBA | 410 | 60 | 4 | - | 346 | |||||||||||||||
Real estate: | ||||||||||||||||||||
Commercial real estate | 253,648 | 48,533 | 86,165 | 100,747 | 18,203 | |||||||||||||||
Construction | 80,342 | 63,445 | 13,697 | - | 3,200 | |||||||||||||||
SFR Mortgage | 6,998 | 5,006 | - | - | 1,992 | |||||||||||||||
Dairy & livestock and agribusiness (1) | 151,947 | 81,488 | 70,254 | 205 | - | |||||||||||||||
Consumer and other loans | 139,059 | 17,430 | 7,036 | 4,894 | 109,699 | |||||||||||||||
Total commitment to extend credit | 1,583,738 | 911,889 | 337,370 | 113,179 | 221,300 | |||||||||||||||
Obligations under letters of credit | 50,244 | 41,383 | 8,613 | 248 | - | |||||||||||||||
Total | $ | 1,633,982 | $ | 953,272 | $ | 345,983 | $ | 113,427 | $ | 221,300 | ||||||||||
(1) | Total commitments to extend credit to agribusiness were |
portfolio, and $4.5 million for various stock based compensation items. This was offset by $75.7 million in cash dividends declared by the Company during the first nine months of 2019.
On August 11, 2016, our Board of Directors authorized an increase in the Company’s common stockapproved a program to repurchase program originally announced in 2008up to 10,000,000 shares of CVB common stock in the open market or approximately 9.3% of the Company’s outstanding sharesin privately negotiated transactions, at the time of authorization,times and adopted a10b5-1.at prices considered appropriate by us, depending upon prevailing market conditions and other corporate and legal considerations. There is no expiration date for this repurchase program. On March 30,Up to 9,577,917 of such shares may be repurchased from time to time under the Company’s current
2018.
September 30, 2018 | December 31, 2017 | |||||||||||
Adequately | Well | CVB Financial | Citizens | CVB Financial | Citizens | |||||||
Capitalized | Capitalized | Corp. | Business | Corp. | Business | |||||||
Capital Ratios | Ratios | Ratios | Consolidated | Bank | Consolidated | Bank | ||||||
Tier 1 leverage capital ratio | 4.00% | 5.00% | 12.52% | 12.40% | 11.88% | 11.77% | ||||||
Common equity Tier I capital ratio | 4.50% | 6.50% | 12.94% | 13.10% | 16.43% | 16.71% | ||||||
Tier 1 risk-based capital ratio | 6.00% | 8.00% | 13.22% | 13.10% | 16.87% | 16.71% | ||||||
Total risk-based capital ratio | 8.00% | 10.00% | 14.00% | 13.88% | 18.01% | 17.86% |
September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Capital Ratios | Adequately Capitalized Ratios | Well Capitalized Ratios | CVB Financial Corp. Consolidated | Citizens Business Bank | CVB Financial Corp. Consolidated | Citizens Business Bank | ||||||||||||||||||
Tier 1 leverage capital ratio | 4.00% | 5.00% | 12.23% | 12.09% | 10.98% | 10.90% | ||||||||||||||||||
Common equity Tier I capital ratio | 4.50% | 6.50% | 14.64% | 14.75% | 13.04% | 13.22% | ||||||||||||||||||
Tier 1 risk-based capital ratio | 6.00% | 8.00% | 14.93% | 14.75% | 13.32% | 13.22% | ||||||||||||||||||
Total risk-based capital ratio | 8.00% | 10.00% | 15.83% | 15.65% | 14.13% | 14.03% |
Equity | Tier 1 | Total | Leverage | |||||
Tier 1 Ratio | Capital Ratio | Capital Ratio | Ratio | |||||
Regulatory minimum ratio | 4.5% | 6.0% | 8.0% | 4.0% | ||||
Plus: Capital conservation buffer requirement | 2.5% | 2.5% | 2.5% | - | ||||
Regulatory minimum ratio plus capital conservation buffer | 7.0% | 8.5% | 10.5% | 4.0% |
We anticipate that the Company and the Bank will meet these requirements well in advance of the ultimate fullphase-in date. However, it
Equity Tier 1 Ratio | Tier 1 Capital Ratio | Total Capital Ratio | Leverage Ratio | |||||||||||||
Regulatory minimum ratio | 4.5% | 6.0% | 8.0% | 4.0% | ||||||||||||
Plus: Capital conservation buffer requirement | 2.5% | 2.5% | 2.5% | - | ||||||||||||
Regulatory minimum ratio plus capital conservation buffer | 7.0% | 8.5% | 10.5% | 4.0% |
2018.
For the Nine Months Ended | ||||||||
2018 | 2017 | |||||||
(Dollars in thousands) | ||||||||
Average cash and cash equivalents | $ | 237,817 | $ | 188,848 | ||||
Percentage of total average assets | 2.69% | 2.28% | ||||||
Net cash provided by operating activities | $ | 116,564 | $ | 106,276 | ||||
Net cash provided by investing activities | 874,202 | 157,307 | ||||||
Net cash used in financing activities | (940,668 | ) | (241,426 | ) | ||||
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|
| |||
Net increase in cash and cash equivalents | $ | 50,098 | $ | 22,157 | ||||
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|
|
For the Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
(Dollars in thousands) | ||||||||
Average cash and cash equivalents | $ | 237,244 | $ | 237,817 | ||||
Percentage of total average assets | 2.10% | 2.69% | ||||||
Net cash provided by operating activities | $ | 147,410 | $ | 116,564 | ||||
Net cash provided by investing activities | 538,256 | 874,202 | ||||||
Net cash used in financing activities | (412,066) | (940,668) | ||||||
Net increase in cash and cash equivalents | $ | 273,600 | $ | 50,098 | ||||
2018.
2018.
Estimated Net Interest Income Sensitivity (1) | ||||||||
September 30, 2018 | December 31, 2017 | |||||||
Interest Rate Scenario | 24-month Period | 24-month Period | ||||||
| 12-month Period | (Cumulative) | 12-month Period | (Cumulative) | ||||
+ 200 basis points | 4.44% | 8.37% | 3.17% | 6.35% | ||||
- 100 basis points | -3.60% | -6.21% | -2.70% | -5.53% |
Estimated Net Interest Income Sensitivity (1) | ||||||||||||||||||||
September 30, 2019 | December 31, 2018 | |||||||||||||||||||
Interest Rate Scenario | 12-month Period | 24-month Period(Cumulative) | Interest Rate Scenario | 12-month Period | 24-month Period(Cumulative) | |||||||||||||||
+ 200 basis points | 4.50% | 8.70% | + 200 basis points | 3.80% | 7.40% | |||||||||||||||
- 100 basis points | -2.30% | -5.00% | - 200 basis points | -5.29% | -10.26% |
(1) | Percentage change from base. |
Instantaneous Rate Change | September 30, 2018 | December 31, 2017 | ||||||||
100 bp decrease in interest rates | -8.8% | -9.8% | ||||||||
100 bp increase in interest rates | 6.4% | 4.2% | ||||||||
200 bp increase in interest rates | 10.9% | 7.1% | ||||||||
300 bp increase in interest rates | 12.1% | 6.0% | ||||||||
400 bp increase in interest rates | 12.7% | 4.2% |
Instantaneous Rate Change | September 30, 2019 | December 31, 2018 | ||||||||||
100 bp decrease in interest rates | -19.6% | -10.2% | ||||||||||
100 bp increase in interest rates | 13.3% | 5.8% | ||||||||||
200 bp increase in interest rates | 23.3% | 10.3% | ||||||||||
300 bp increase in interest rates | 31.0% | 13.8% | ||||||||||
400 bp increase in interest rates | 37.1% | 16.6% |
|
|
The Company is a defendant and cross-complainant in an action entitled Edward A. Dunaganet alv. Citizens Business Bank, as successor to American Security Bank (ASB), Case No. CVDS1408287, filed in the Superior Court for San Bernardino County. The complaint was initially filed in May, 2014 against ASB, which was acquired during the same month by CBB, and a Second Amended Complaint (SAC) was filed on September 9, 2015, naming CBB as the primary defendant. The case arises out of a number of defaulted commercial real estate loans originally made by ASB to the Dunagans and various entities owned by the Dunagans (Dunagan Parties), and the SAC includes claims by the Dunagans (1) contesting their liabilities under their personal guarantees for deficiencies on certain of the defaulted loans, (2) attacking the validity of ASB’s foreclosures on certain properties owned by the Dunagan Parties, and (3) claiming emotional distress caused by ASB’s allegedly wrongful actions in connection with such foreclosures. The Dunagans sought compensatory damages in excess of $2 million plus punitive damages. ASB/CBB filed a cross-complaint against the Dunagans alleging breach of guaranty and demanding additional damages. A bench trial on the respective claims by the Dunagans and ASB/CBB took place in late July and early August, 2018.
On November 7, 2018, subsequent to the end of the third quarter of 2018, the Court issued a minute order finding in favor of the Dunagans and against ASB on all three claims made by the plaintiffs enumerated above, denying ASB’s claims under the cross-complaint, and awarding damages and attorney’s fees and costs to the Dunagans in an aggregate amount of approximately $1.35 million. The Company intends to appeal this decision. The Company also believes that the bankers professional liability insurance policy previously obtained by ASB (which provides for a $5 million per claim limit subject to a $100,000 deductible) may cover all or a substantial portion of any final monetary award. In any event, the Company believes that this ruling and any monetary award ultimately payable by CBB are not expected to have a material adverse impact on the Company’s results of operations, financial condition or cash flows.
Period | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Average Price Paid Per Share | Maximum Number of Shares Available for Repurchase Under the Plans or Programs | |||||||||
July 1 - 31, 2019 | - | $ | - | 9,577,917 | ||||||||
August 1 - 31, 2019 | 584 | 20.03 | 9,577,333 | |||||||||
September 1 - 30, 2019 | 321 | 20.03 | 9,577,012 | |||||||||
Total | 905 | 20.03 | 9,577,012 | |||||||||
|
Not Applicable
|
Not Applicable
|
None
|
| ||||
Exhibit No. | Description of Exhibits | |||
| ||||
10.1 | ||||
| 10.2 | |||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH | XBRL Taxonomy Extension Schema Document | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, has been formatted in Inline XBRL. |
† | Indicates a management contract or compensation plan. |
(1) | Incorporated herein by reference to Exhibit 10.1 to our Form |
(2) | Incorporated herein by reference to Exhibit 10.2 to our Form 8-K filed with the SEC on July 19, 2019. |
CVB FINANCIAL CORP. | ||||
(Registrant) | ||||
Date: November | ||||
| ||||
/s/ E. Allen Nicholson | ||||
E. Allen Nicholson | ||||
Executive Vice President and Chief Financial Officer | ||||
(Principal Financial Officer) |
79