Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-24939 | |
Entity Registrant Name | EAST WEST BANCORP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4703316 | |
Entity Address, Address Line One | 135 North Los Robles Ave. | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | Pasadena | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91101 | |
City Area Code | 626 | |
Local Phone Number | 768-6000 | |
Title of each class | Common Stock, par value $0.001 per share | |
Trading Symbol | EWBC | |
Name of each exchange on which registered | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 141,877,607 | |
Entity Central Index Key | 0001069157 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheet - Un
Consolidated Balance Sheet - Unaudited - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 626,716 | $ 592,117 |
Interest-bearing cash with banks | 5,371,089 | 3,425,854 |
Cash and cash equivalents | 5,997,805 | 4,017,971 |
Interest-bearing deposits with banks | 830,279 | 809,728 |
Assets purchased under resale agreements (“resale agreements”) | 2,299,184 | 1,460,000 |
Securities: | ||
Available-for-sale (“AFS”) debt securities, at fair value (amortized cost of $8,411,142 in 2021 and $5,470,523 in 2020; includes assets pledged as collateral of $618,081 in 2021 and $588,484 in 2020) | 8,399,460 | 5,544,658 |
Restricted equity securities, at cost | 76,931 | 83,046 |
Loans held-for-sale | 1,819 | 1,788 |
Loans held-for-investment (net of allowance for loan losses of $585,724 in 2021 and $619,983 in 2020; includes assets pledged as collateral of $24,233,905 in 2021 and $23,263,517 in 2020) | 39,485,775 | 37,770,972 |
Investments in qualified affordable housing partnerships, net | 287,432 | 213,555 |
Investments in tax credit and other investments, net | 364,187 | 266,525 |
Premises and equipment (net of accumulated depreciation of $133,972 in 2021 and $127,884 in 2020) | 99,290 | 103,251 |
Goodwill | 465,697 | 465,697 |
Operating lease right-of-use assets | 102,609 | 95,460 |
Other assets | 1,444,408 | 1,324,262 |
TOTAL | 59,854,876 | 52,156,913 |
LIABILITIES | ||
Noninterest-bearing | 21,816,721 | 16,298,301 |
Interest-bearing | 30,765,854 | 28,564,451 |
Total deposits | 52,582,575 | 44,862,752 |
Short-term borrowings | 0 | 21,009 |
Federal Home Loan Bank (“FHLB”) advances | 248,464 | 652,612 |
Assets sold under repurchase agreements (“repurchase agreements”) | 300,000 | 300,000 |
Long-term debt and finance lease liabilities | 151,997 | 151,739 |
Operating lease liabilities | 110,105 | 102,830 |
Accrued expenses and other liabilities | 914,187 | 796,796 |
Total liabilities | 54,307,328 | 46,887,738 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 167,754,406 and 167,240,600 shares issued in 2021 and 2020, respectively | 168 | 167 |
Additional paid-in capital | 1,876,079 | 1,858,352 |
Retained earnings | 4,335,327 | 4,000,414 |
Treasury stock, at cost 25,876,901 shares in 2021 and 25,675,371 shares in 2020 | (649,337) | (634,083) |
Accumulated other comprehensive (loss) income (“AOCI”), net of tax | (14,689) | 44,325 |
Total stockholders’ equity | 5,547,548 | 5,269,175 |
TOTAL | $ 59,854,876 | $ 52,156,913 |
Consolidated Balance Sheet - _2
Consolidated Balance Sheet - Unaudited (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
AFS debt securities, amortized cost | $ 8,411,142 | $ 5,470,523 |
Available for sale debt investment securities pledged as collateral, fair value | 618,081 | 588,484 |
Allowance for loan losses, beginning of period | 585,724 | 619,983 |
Loans held-for-investment pledged as collateral | 24,233,905 | 23,263,517 |
Premises and equipment, accumulated depreciation | $ 133,972 | $ 127,884 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 167,754,406 | 167,240,600 |
Treasury stock, shares (in shares) | 25,876,901 | 25,675,371 |
Consolidated Statement of Incom
Consolidated Statement of Income - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans receivable, including fees | $ 352,453 | $ 367,393 | $ 694,461 | $ 779,262 |
AFS debt securities | 34,690 | 21,004 | 63,790 | 41,146 |
Resale agreements | 8,021 | 5,514 | 14,120 | 11,139 |
Restricted equity securities | 541 | 301 | 1,088 | 747 |
Interest-bearing cash and deposits with banks | 3,628 | 4,564 | 7,260 | 15,672 |
Total interest and dividend income | 399,333 | 398,776 | 780,719 | 847,966 |
INTEREST EXPENSE | ||||
Deposits | 17,998 | 46,399 | 39,820 | 122,802 |
Short-term borrowings | 0 | 265 | 42 | 821 |
FHLB advances | 2,099 | 3,343 | 5,168 | 7,509 |
Repurchase agreements | 1,991 | 3,540 | 3,969 | 7,531 |
Long-term debt and finance lease liabilities | 772 | 1,454 | 1,552 | 2,821 |
Total interest expense | 22,860 | 55,001 | 50,551 | 141,484 |
Net interest income before provision for credit losses | 376,473 | 343,775 | 730,168 | 706,482 |
(Reversal of) provision for credit losses | (15,000) | 102,443 | (15,000) | 176,313 |
Net interest income after provision for credit losses | 391,473 | 241,332 | 745,168 | 530,169 |
NONINTEREST INCOME | ||||
Lending fees | 21,092 | 21,946 | 39,449 | 37,719 |
Deposit account fees | 17,342 | 10,872 | 32,725 | 21,319 |
Interest rate contracts and other derivative (loss) income | (3,172) | 6,107 | 13,825 | 13,180 |
Foreign exchange income | 13,007 | 4,562 | 22,533 | 12,381 |
Wealth management fees | 7,951 | 3,091 | 14,862 | 8,444 |
Net gains on sales of loans | 1,491 | 132 | 3,272 | 1,082 |
Gains on sales of AFS debt securities | 632 | 9,640 | 824 | 11,169 |
Other investment income (expense) | 7,596 | (1,964) | 8,521 | 1,414 |
Other income | 2,492 | 1,321 | 5,286 | 4,505 |
Total noninterest income | 68,431 | 55,707 | 141,297 | 111,213 |
NONINTEREST EXPENSE | ||||
Compensation and employee benefits | 105,426 | 96,955 | 213,234 | 198,915 |
Occupancy and equipment expense | 15,377 | 16,217 | 31,299 | 33,293 |
Deposit insurance premiums and regulatory assessments | 4,274 | 3,700 | 8,150 | 7,127 |
Deposit account expense | 3,817 | 3,353 | 7,709 | 6,916 |
Data processing | 4,035 | 4,480 | 8,513 | 8,306 |
Computer software expense | 7,521 | 7,301 | 14,680 | 13,467 |
Consulting expense | 1,868 | 1,413 | 3,343 | 2,630 |
Legal expense | 1,975 | 1,530 | 3,477 | 4,727 |
Other operating expense | 17,939 | 19,248 | 37,546 | 40,367 |
Amortization of tax credit and other investments | 27,291 | 21,829 | 52,649 | 40,611 |
Repurchase agreements’ extinguishment costs | 0 | 8,740 | 0 | 8,740 |
Total noninterest expense | 189,523 | 184,766 | 380,600 | 365,099 |
INCOME BEFORE INCOME TAXES | 270,381 | 112,273 | 505,865 | 276,283 |
INCOME TAX EXPENSE | 45,639 | 12,921 | 76,129 | 32,107 |
NET INCOME | $ 224,742 | $ 99,352 | $ 429,736 | $ 244,176 |
EARNINGS PER SHARE (“EPS”) | ||||
BASIC (in dollars per share) | $ 1.58 | $ 0.70 | $ 3.03 | $ 1.71 |
DILUTED (in dollars per share) | $ 1.57 | $ 0.70 | $ 3.01 | $ 1.70 |
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING | ||||
BASIC (in shares) | 141,868 | 141,486 | 141,758 | 143,150 |
DILUTED (in shares) | 143,040 | 141,827 | 142,963 | 143,560 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 224,742 | $ 99,352 | $ 429,736 | $ 244,176 |
Other comprehensive income (loss), net of tax: | ||||
Net changes in unrealized gains (losses) on AFS debt securities | 73,049 | 17,816 | (60,399) | 45,269 |
Net changes in unrealized gains (losses) on cash flow hedges | 68 | (1,333) | 500 | (1,333) |
Foreign currency translation adjustments | 2,234 | (230) | 885 | (2,394) |
Other comprehensive income (loss) | 75,351 | 16,253 | (59,014) | 41,542 |
COMPREHENSIVE INCOME | $ 300,093 | $ 115,605 | $ 370,722 | $ 285,718 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | [1] | Common Stock | Common Stock and Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period Of Adoption, Adjustment | [1] | Treasury Stock | AOCI, Net of Tax |
Beginning balance (in shares) at Dec. 31, 2019 | 145,625,385 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 5,017,617 | $ (97,967) | $ 1,826,512 | $ 3,689,377 | $ (97,967) | $ (479,864) | $ (18,408) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 244,176 | 244,176 | ||||||||
Other comprehensive income | 41,542 | 41,542 | ||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 332,694 | |||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 7,778 | 15,403 | (7,625) | |||||||
Repurchase of common stock pursuant to the Stock Repurchase Program (in shares) | (4,471,682) | |||||||||
Repurchase of common stock pursuant to the Stock Repurchase Program | (145,966) | (145,966) | ||||||||
Cash dividends on common stock | (79,937) | (79,937) | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 141,486,397 | |||||||||
Ending balance at Jun. 30, 2020 | 4,987,243 | 1,841,915 | 3,755,649 | (633,455) | 23,134 | |||||
Beginning balance (in shares) at Mar. 31, 2020 | 141,435,099 | |||||||||
Beginning balance at Mar. 31, 2020 | 4,902,985 | 1,833,784 | 3,695,759 | (633,439) | 6,881 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 99,352 | 99,352 | ||||||||
Other comprehensive income | 16,253 | 16,253 | ||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 51,298 | |||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 8,115 | 8,131 | (16) | |||||||
Cash dividends on common stock | (39,462) | (39,462) | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 141,486,397 | |||||||||
Ending balance at Jun. 30, 2020 | 4,987,243 | 1,841,915 | 3,755,649 | (633,455) | 23,134 | |||||
Beginning balance (in shares) at Dec. 31, 2020 | 141,565,229 | |||||||||
Beginning balance at Dec. 31, 2020 | 5,269,175 | 1,858,519 | 4,000,414 | (634,083) | 44,325 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 429,736 | 429,736 | ||||||||
Other comprehensive income | (59,014) | (59,014) | ||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 312,276 | |||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 2,474 | 17,728 | (15,254) | |||||||
Cash dividends on common stock | (94,823) | (94,823) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 141,877,505 | |||||||||
Ending balance at Jun. 30, 2021 | 5,547,548 | 1,876,247 | 4,335,327 | (649,337) | (14,689) | |||||
Beginning balance (in shares) at Mar. 31, 2021 | 141,843,036 | |||||||||
Beginning balance at Mar. 31, 2021 | 5,285,027 | 1,866,101 | 4,158,032 | (649,066) | (90,040) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 224,742 | 224,742 | ||||||||
Other comprehensive income | 75,351 | 75,351 | ||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 34,469 | |||||||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 9,875 | 10,146 | (271) | |||||||
Cash dividends on common stock | (47,447) | (47,447) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 141,877,505 | |||||||||
Ending balance at Jun. 30, 2021 | $ 5,547,548 | $ 1,876,247 | $ 4,335,327 | $ (649,337) | $ (14,689) | |||||
[1] | Represents the impact of the adoption of Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326) on January 1, 2020. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity - Unaudited (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.330 | $ 0.275 | $ 0.660 | $ 0.550 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 429,736 | $ 244,176 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 70,402 | 68,926 |
Amortization of premiums and accretion of discount, net | 11,310 | (18,901) |
Stock compensation costs | 16,025 | 14,280 |
Deferred income tax benefit | 2,571 | (111) |
(Reversal of) provision for credit losses | (15,000) | 176,313 |
Net gains on sales of loans | (3,272) | (1,082) |
Gains on sales of AFS debt securities | (824) | (11,169) |
Loans held-for-sale: | ||
Originations and purchases | (8,703) | (21,791) |
Proceeds from sales and paydowns/payoffs of loans originally classified as held-for-sale | 10,353 | 18,386 |
Proceeds from distributions received from equity method investees | 3,564 | 1,107 |
Net change in accrued interest receivable and other assets | (73,809) | (456,374) |
Net change in accrued expenses and other liabilities | (44,113) | 257,397 |
Other net operating activities | 5,571 | (241) |
Total adjustments | (25,925) | 26,740 |
Net cash provided by operating activities | 403,811 | 270,916 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in qualified affordable housing partnerships, tax credit and other investments | (92,780) | (68,884) |
Interest-bearing deposits with banks | (20,534) | (335,497) |
Resale agreements: | ||
Proceeds from paydowns and maturities | 506,353 | 350,000 |
Purchases | (1,345,537) | (500,000) |
AFS debt securities: | ||
Proceeds from sales | 164,898 | 484,380 |
Proceeds from repayments, maturities and redemptions | 877,123 | 848,633 |
Purchases | (4,015,212) | (1,834,087) |
Loans held-for-investment: | ||
Proceeds from sales of loans originally classified as held-for-investment | 248,540 | 144,015 |
Purchases | (542,839) | (145,695) |
Other changes in loans held-for-investment, net | (1,389,832) | (2,475,089) |
Proceeds from distributions received from equity method investees | 4,983 | 1,948 |
Other net investing activities | 2,388 | (337) |
Net cash used in investing activities | (5,602,449) | (3,530,613) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase in deposits | 7,708,661 | 3,355,168 |
Net (decrease) increase in short-term borrowings | (21,143) | 225,834 |
FHLB advances: | ||
Proceeds | 0 | 10,100 |
Repayment | (405,000) | (100,099) |
Repayment of repurchase agreements | 0 | (150,000) |
Repurchase agreements’ extinguishment cost | 0 | (8,740) |
Long-term debt and lease liabilities: | ||
Proceeds from long-term debt | 0 | 1,437,269 |
Repayment of long-term debt and lease liabilities | (613) | (9,320) |
Common stock: | ||
Repurchase of common stocks pursuant to the Stock Repurchase Program | 0 | (145,966) |
Proceeds from issuance pursuant to various stock compensation plans and agreements | 1,180 | 1,170 |
Stocks tendered for payment of withholding taxes | (15,254) | (7,625) |
Cash dividends paid | (95,060) | (80,271) |
Net cash provided by financing activities | 7,172,771 | 4,527,520 |
Effect of exchange rate changes on cash and cash equivalents | 5,701 | 4,530 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,979,834 | 1,272,353 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 4,017,971 | 3,261,149 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 5,997,805 | 4,533,502 |
Cash paid during the period for: | ||
Interest | 52,228 | 145,723 |
Income taxes, net | 114,202 | 5,609 |
Noncash investing and financing activities: | ||
Loans transferred from held-for-investment to held-for-sale | 247,636 | 143,283 |
Loans transferred to other real estate owned (“OREO”) and other foreclosed assets | $ 13,025 | $ 19,504 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Quarterly Report on Form 10-Q (“this Form 10-Q”) include the accounts of East West, East West Bank and East West’s subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of June 30, 2021, East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation , the Trusts are not included on the Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements are presented in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. They reflect all adjustments that, in the opinion of management, are necessary for fair presentation of the interim Consolidated Financial Statements. Certain items on the Consolidated Financial Statements and notes for the prior periods have been reclassified to conform to the current period presentation. The current period’s results of operations are not necessarily indicative of results that may be expected for any future interim period or for the year as a whole. Events subsequent to the Consolidated Balance Sheet date have been evaluated through the date the Consolidated Financial Statements are issued for inclusion in the accompanying Consolidated Financial Statements. The unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission on February 26, 2021 (the “Company’s 2020 Form 10-K”). |
Current Accounting Developments
Current Accounting Developments | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Current Accounting Developments | Current Accounting Developments New Accounting Pronouncements Adopted Standard Required Date of Adoption Description Effect on Financial Statements Standards Adopted in 2021 ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequent related ASU 2021-01, Reference Rate Reform (Topic 848): Scope Effective for all entities from the dates of issuance through December 31, 2022. In March 2020, the FASB issued an ASU related to contracts or hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other reference rates that are expected to be discontinued due to reference rate reform. This ASU provides temporary optional expedients and exceptions regarding the accounting requirements related to the modification of certain contracts, hedging relationships and other transactions that are affected by the reference rate reform. The guidance permits the Company to make a one-time election to sell and/or transfer qualifying held-to-maturity securities, and not to apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationships and the assessment of hedge effectiveness during the transition period. This one-time election may be made at any time after March 12, 2020, but no later than December 31, 2022. In January 2021, the FASB issued ASU 2021-01 as subsequent amendments, which expanded the scope of Topic 848 to include all affected derivatives and clarified certain optional expedients and exceptions regarding the hedge accounting for derivative contracts affected by the discounting transition. The amendments of this guidance could be elected retrospectively or prospectively to new modifications made on or after the date of issuance of this ASU, January 7, 2021. The Company adopted this guidance on a prospective basis in January 2021. At the time of adoption, the guidance did not have a material impact on the Company’s Consolidated Financial Statements. The Company will continue to track the exposure as of each reporting period and to assess the impact as the reference rate transition occurs through the cessation of LIBOR. ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2021 Early adoption is permitted on January 1, 2020. This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance. This includes removing exceptions to: 1) the incremental approach for intraperiod tax allocation, 2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) the ability not to recognize a deferred tax liability when a foreign equity method investment becomes a subsidiary, and 4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, this ASU simplifies the accounting for income taxes related to franchise taxes, the tax basis of goodwill and the method for recognizing an enacted change in tax laws. This ASU also specifies that an entity is not required to allocate the consolidated amount of tax expense to a legal entity that is not subject to tax in its separate financial statements. This ASU also makes improvements in the accounting for income taxes related to employee stock ownership plans and equity method investments in qualified affordable housing projects. This guidance should be applied on either a retrospective, modified retrospective or prospective basis depending on the amendments. The Company adopted this guidance in January 2021 using the transition guidance prescribed by this ASU. At the time of adoption, this guidance did not have a material impact on the Company’s Consolidated Financial Statements. |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Fair Value of Financial Instruments | Fair Value Measurement and Fair Value of Financial Instruments Fair Value Determination Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value of financial instruments, the Company uses various methods including market and income approaches. Based on these approaches, the Company utilizes certain assumptions that market participants would use in pricing an asset or a liability. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy described below is based on the quality and reliability of the information used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets and the lowest priority to prices derived from data lacking transparency. The fair value of the Company’s assets and liabilities is classified and disclosed in one of the following three categories: • Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets. • Level 2 — Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. • Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. The classification of assets and liabilities within the hierarchy is based on whether inputs to the valuation methodology used are observable or unobservable, and the significance of those inputs in the fair value measurement. The Company’s assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurements. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following section describes the valuation methodologies used by the Company to measure financial assets and liabilities on a recurring basis, as well as the general classification of these instruments pursuant to the fair value hierarchy. Available-for-Sale Debt Securities — The fair value of AFS debt securities is generally determined by independent external pricing service providers who have experience in valuing these securities or by taking the average quoted market prices obtained from independent external brokers. The valuations provided by the third-party pricing service providers are based on observable market inputs, which include benchmark yields, reported trades, issuer spreads, benchmark securities, bids, offers, prepayment expectation and reference data obtained from market research publications. Inputs used by the third-party pricing service providers in valuing collateralized mortgage obligations and other securitization structures also include new issue data, monthly payment information, whole loan collateral performance, tranche evaluation and “To Be Announced” prices. In valuing securities issued by state and political subdivisions, inputs used by third-party pricing service providers also include material event notices. On a monthly basis, the Company validates the valuations provided by third-party pricing service providers to ensure that the fair value determination is consistent with the applicable accounting guidance and the financial instruments are properly classified in the fair value hierarchy. To perform this validation, the Company evaluates the fair values of securities by comparing the fair values provided by the third-party pricing service providers to prices from other available independent sources for the same securities. When significant variances in prices are identified, the Company further compares inputs used by different sources to ascertain the reliability of these sources. On a quarterly basis, the Company reviews the documentation received from the third-party pricing service providers regarding the valuation inputs and methodology used for each category of securities. When available, the Company uses quoted market prices to determine the fair value of AFS debt securities that are classified as Level 1. Level 1 AFS debt securities are comprised of U.S. Treasury securities. When pricing is unavailable from third-party pricing service providers for certain securities, the Company requests market quotes from various independent external brokers and utilizes the average quoted market prices. In addition, the Company obtains market quotes from other official published sources. As these valuations are based on observable inputs in the current marketplace, they are classified as Level 2. The Company periodically communicates with the independent external brokers to validate their pricing methodology. Information such as pricing sources, pricing assumptions, data inputs and valuation technique are reviewed periodically. Equity Securities — Equity securities consisted of mutual funds as of both June 30, 2021 and December 31, 2020. The Company invested in these mutual funds for Community Reinvestment Act (“CRA”) purposes. The Company uses net asset value (“NAV”) information to determine the fair value of these equity securities. When NAV is available periodically and the equity securities can be put back to the transfer agents at the publicly available NAV, the fair value of the equity securities is classified as Level 1. When NAV is available periodically but the equity securities may not be readily marketable at its periodic NAV in the secondary market, the fair value of these equity securities is classified as Level 2. Interest Rate Contracts — The Company enters into interest rate swap and option contracts that are not designated as hedging instruments with its borrowers to lock in attractive intermediate and long-term interest rates, resulting in the customer obtaining a synthetic fixed-rate loan. To economically hedge against the interest rate risks in the products offered to its customers, the Company enters into mirrored offsetting interest rate contracts with third-party financial institutions. The Company also enters into interest rate swap contracts with institutional counterparties to hedge against certain variable interest rate borrowings. These interest rate swap contracts with institutional counterparties were designated as cash flow hedges. The fair value of the interest rate swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments). The fair value of the interest rate options, which consist of floors and caps, is determined using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates fall below (rise above) the strike rate of the floors (caps). In addition, to comply with the provisions of ASC 820, Fair Value Measurement , the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements of its derivatives. The credit valuation adjustments associated with the Company’s derivatives utilize model-derived credit spreads, which are Level 3 inputs. The Company classifies these derivative instruments as Level 2 due to the observable nature of the significant inputs utilized. Foreign Exchange Contracts — The Company enters into foreign exchange contracts to accommodate the business needs of its customers. The Company entered into offsetting foreign exchange contracts with third-party financial institutions to manage its exposure with respect to a majority of these foreign exchange contracts. The Company also utilizes foreign exchange contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in certain foreign currency on-balance sheet assets and liabilities, primarily foreign currency denominated deposits that it offers to its customers. The fair value of foreign exchange contracts is determined at each reporting period based on changes in the foreign exchange rates. These are over-the-counter contracts where quoted market prices are not readily available. Valuation is measured using conventional valuation methodologies with observable market data. Due to the short-term nature of the majority of these contracts, the counterparties’ credit risks are considered nominal and result in no adjustments to the valuation of the foreign exchange contracts. Due to the observable nature of the inputs used in deriving the fair value of these contracts, the valuation of foreign exchange contracts are classified as Level 2. As of June 30, 2021 and December 31, 2020, the Bank held foreign currency non-deliverable forward contracts to hedge its net investment in its China subsidiary, East West Bank (China) Limited, a non-U.S. dollar (“USD”) functional currency subsidiary in China. These foreign currency non-deliverable forward contracts were designated as net investment hedges. The fair value of foreign currency non-deliverable forward contracts is determined by comparing the contracted foreign exchange rate to the current market foreign exchange rate. Key inputs of the current market exchange rate include spot rates and forward rates of the contractual currencies. Foreign exchange forward curves are used to determine which forward rate pertains to a specific maturity. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Credit Contracts — The Company may periodically enter into credit risk participation agreements (“RPAs”) to manage the credit exposure on interest rate contracts associated with the syndicated loans. The Company may enter into protection sold or protection purchased RPAs with institutional counterparties. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. The majority of the inputs used to value the RPAs are observable; accordingly, RPAs fall within Level 2. Equity Contracts — As part of the loan origination process, the Company periodically obtains warrants to purchase preferred and/or common stock of technology and life sciences companies to which it provides loans. As of June 30, 2021, the warrants included on the Consolidated Financial Statements were from private companies. As of December 31, 2020, the warrants included on the Consolidated Financial Statements were from both public and private companies. The Company values these warrants based on the Black-Scholes option pricing model. For warrants from public companies, the model uses the underlying stock price, stated strike price, warrant expiration date, risk-free interest rate based on a duration-matched U.S. Treasury rate, and market-observable company-specific option volatility as inputs to value the warrants. Due to the observable nature of the inputs used in deriving the estimated fair value, warrants from public companies are classified as Level 2. For warrants from private companies, the model uses inputs such as the offering price observed in the most recent round of funding, stated strike price, warrant expiration date, risk-free interest rate based on duration-matched U.S. Treasury rate and option volatility. The Company applies proxy volatilities based on the industry sectors of the private companies. The model values are then adjusted for a general lack of liquidity due to the private nature of the underlying companies. Since both option volatility and liquidity discount assumptions are subject to management’s judgment, measurement uncertainty is inherent in the valuation of private companies’ warrants. Due to the unobservable nature of the option volatility and liquidity discount assumptions used in deriving the estimated fair value, warrants from private companies are classified as Level 3. On a quarterly basis, the changes in the fair value of warrants from private companies are reviewed for reasonableness, and a measurement of uncertainty analysis on the option volatility and liquidity discount assumptions is performed. Commodity Contracts — The Company enters into energy commodity contracts in the form of swaps and options with its oil and gas loan customers to allow them to hedge against the risk of fluctuation in energy commodity prices. The fair value of the commodity option contracts is determined using the Black-Scholes model and assumptions that include expectations of future commodity price and volatility. The future commodity contract price is derived from observable inputs such as the market price of the commodity. Commodity swaps are structured as an exchange of fixed cash flows for floating cash flows. The fair value of the commodity swaps is determined using the market standard methodology of netting the discounted future fixed cash payments (or receipts) and the discounted expected variable cash receipts (or payments) based on the market prices of the commodity. The fixed cash flows are predetermined based on the known volumes and fixed price as specified in the swap agreement. The floating cash flows are correlated with the change of forward commodity prices, which is derived from market corroborated futures settlement prices. As a result, the Company classifies these derivative instruments as Level 2 due to the observable nature of the significant inputs utilized. The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 836,940 $ — $ — $ 836,940 U.S. government agency and U.S. government-sponsored enterprise debt securities — 1,224,511 — 1,224,511 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 1,188,640 — 1,188,640 Residential mortgage-backed securities — 2,368,552 — 2,368,552 Municipal securities — 454,923 — 454,923 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 364,172 — 364,172 Residential mortgage-backed securities — 772,474 — 772,474 Corporate debt securities — 552,715 — 552,715 Foreign government bonds — 283,175 — 283,175 Asset-backed securities — 61,829 — 61,829 Collateralized loan obligations (“CLOs”) — 291,529 — 291,529 Total AFS debt securities $ 836,940 $ 7,562,520 $ — $ 8,399,460 Investments in tax credit and other investments: Equity securities (1) $ 22,345 $ 4,474 $ — $ 26,819 Total investments in tax credit and other investments $ 22,345 $ 4,474 $ — $ 26,819 Derivative assets: Interest rate contracts $ — $ 329,953 $ — $ 329,953 Foreign exchange contracts — 29,867 — 29,867 Credit contracts — 3 — 3 Equity contracts — — 223 223 Commodity contracts — 228,536 — 228,536 Gross derivative assets $ — $ 588,359 $ 223 $ 588,582 Netting adjustments (2) $ — $ (93,091) $ — $ (93,091) Net derivative assets $ — $ 495,268 $ 223 $ 495,491 Derivative liabilities: Interest rate contracts $ — $ 228,952 $ — $ 228,952 Foreign exchange contracts — 20,555 — 20,555 Credit contracts — 87 — 87 Commodity contracts — 199,327 — 199,327 Gross derivative liabilities $ — $ 448,921 $ — $ 448,921 Netting adjustments (2) $ — $ (253,309) $ — $ (253,309) Net derivative liabilities $ — $ 195,612 $ — $ 195,612 ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 50,761 $ — $ — $ 50,761 U.S. government agency and U.S. government-sponsored enterprise debt securities — 814,319 — 814,319 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 1,153,770 — 1,153,770 Residential mortgage-backed securities — 1,660,894 — 1,660,894 Municipal securities — 396,073 — 396,073 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 239,842 — 239,842 Residential mortgage-backed securities — 289,775 — 289,775 Corporate debt securities — 405,968 — 405,968 Foreign government bonds — 182,531 — 182,531 Asset-backed securities — 63,231 — 63,231 CLOs — 287,494 — 287,494 Total AFS debt securities $ 50,761 $ 5,493,897 $ — $ 5,544,658 Investments in tax credit and other investments: Equity securities (1) $ 22,548 $ 8,724 $ — $ 31,272 Total investments in tax credit and other investments $ 22,548 $ 8,724 $ — $ 31,272 Derivative assets: Interest rate contracts $ — $ 489,132 $ — $ 489,132 Foreign exchange contracts — 30,300 — 30,300 Credit contracts — 13 — 13 Equity contracts — 585 273 858 Commodity contracts — 82,451 — 82,451 Gross derivative assets $ — $ 602,481 $ 273 $ 602,754 Netting adjustments (2) $ — $ (101,512) $ — $ (101,512) Net derivative assets $ — $ 500,969 $ 273 $ 501,242 Derivative liabilities: Interest rate contracts $ — $ 317,698 $ — $ 317,698 Foreign exchange contracts — 22,759 — 22,759 Credit contracts — 206 — 206 Commodity contracts — 84,165 — 84,165 Gross derivative liabilities $ — $ 424,828 $ — $ 424,828 Netting adjustments (2) $ — $ (184,697) $ — $ (184,697) Net derivative liabilities $ — $ 240,131 $ — $ 240,131 (1) Equity securities consist of mutual funds with readily determinable fair values. The Company invested in these mutual funds for CRA purposes. (2) Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information. For the three and six months ended June 30, 2021 and 2020, Level 3 fair value measurements that were measured on a recurring basis consisted of warrants issued by private companies. The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Equity Contracts Beginning balance $ 272 $ 713 $ 273 $ 421 Total gains included in earnings (1) 47 7,976 46 8,268 Settlements (96) — (96) — Transfers out of Level 3 (2) — (8,373) — (8,373) Ending balance $ 223 $ 316 $ 223 $ 316 (1) Includes unrealized (losses) gains of $(27) thousand and $8.0 million for the three months ended June 30, 2021 and 2020, respectively, and $(29) thousand and $8.3 million for the six months ended June 30, 2021 and 2020, respectively. The realized/unrealized gains (losses) of equity contracts are included in Lending fees on the Consolidated Statement of Income. (2) During the three and six months ended June 30, 2020, the Company transferred $8.4 million of equity contracts measured on a recurring basis out of Level 3 into Level 2 after the corresponding issuer of the equity contracts, which was previously a private company, completed its initial public offering and became a public company. The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of June 30, 2021 and December 31, 2020, respectively. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Valuation Unobservable Range of Inputs Weighted- Average of Inputs (1) June 30, 2021 Derivative assets: Equity contracts $ 223 Black-Scholes option pricing model Equity volatility 41% — 53% 47% Liquidity discount 47% 47% December 31, 2020 Derivative assets: Equity contracts $ 273 Black-Scholes option pricing model Equity volatility 46% — 61% 53% Liquidity discount 47% 47% (1) Weighted-average of inputs is calculated based on the fair value of equity contracts as of June 30, 2021 and December 31, 2020. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets measured at fair value on a nonrecurring basis include certain individually evaluated loans held-for-investment, investments in qualified affordable housing partnerships, tax credit and other investments, OREO, loans held-for-sale, and other nonperforming assets. Nonrecurring fair value adjustments result from impairment on certain individually evaluated loans held-for-investment and investments in qualified affordable housing partnerships, tax credit and other investments, write-downs of OREO and other nonperforming assets, or from the application of lower of cost or fair value on loans held-for-sale. Individually Evaluated Loans Held-For-Investment — Individually evaluated loans held-for-investment are classified as Level 3 assets. The following two methods are used to derive the fair value of individually evaluated loans held-for-investment: • Discounted cash flow valuation techniques that consist of developing an expected stream of cash flows over the life of the loans, and then calculating the present value of the loans by discounting the expected cash flows at a designated discount rate. • When the repayment of an individually evaluated loan is dependent on the sale of the collateral, the fair value of the loan is determined based on the fair value of the underlying collateral, which may take the form of real estate, inventory, equipment, contracts or guarantees. The fair value of the underlying collateral is generally based on third-party appraisals, or an internal valuation if a third-party appraisal is not required by regulations, or unavailable. An internal valuation utilizes one or more valuation techniques such as the income, market and/or cost approaches. Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net — The Company conducts due diligence on its investments in qualified affordable housing partnerships, tax credit and other investments prior to the initial investment date and through the placed-in-service date. After these investments are either acquired or placed into service, the Company continues its periodic monitoring process to ensure realizable book values and that there is no significant tax credit recapture risk. This monitoring process includes the quarterly review of the financial statements, the annual review of tax returns of the investment entity, the annual review of the financial statements of the guarantor (if any) and a comparison of the actual performance of the investment against the financial projections prepared at the time when the investment was made. The Company assesses its tax credit and other investments for possible other-than-temporary impairment (“OTTI”) on an annual basis or when events or circumstances suggest that the carrying amount of the investments may not be realizable. These circumstances can include, but are not limited to the following factors: • expected future cash flows that are less than the carrying amoun t of the investment; • changes in the economic, market or technological environment that could adversely affect the investee’s operations; and • other factors that raise doubt about the investee’s ability to continue as a going concern, such as negative cash flows from operations and the continuing prospects of the underlying operations of the investment. All available evidence is considered in assessing whether a decline in value is other-than-temporary. Generally, none of the aforementioned factors are individually conclusive and the relative importance placed on individual facts may vary depending on the situation. In accordance with ASC 323-10-35-32, an impairment charge would only be recognized in earnings for a decline in value that is determined to be other-than-temporary. Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment. These OREO properties are recorded at estimated fair value less the costs to sell at the time of foreclosure and at the lower of cost or estimated fair value less the costs to sell subsequent to acquisition. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. OREO properties are classified as Level 3. Other Nonperforming Assets — Other nonperforming assets are recorded at fair value upon transfers from loans to foreclosed assets. Subsequently, foreclosed assets are recorded at the lower of carrying value or fair value. Fair value is based on independent market prices, appraised values of the collateral or management’s estimates of the foreclosed asset. The Company records an impairment when the foreclosed asset’s fair value declines below its carrying value. Other nonperforming assets are classified as Level 3. The following tables present the carrying amounts of assets that were still held and had fair value changes measured on a nonrecurring basis as of June 30, 2021 and December 31, 2020: ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: Commercial and industrial (“C&I”) $ — $ — $ 110,211 $ 110,211 Commercial real estate (“CRE”): CRE — — 53,509 53,509 Multifamily residential — — 2,428 2,428 Construction and land — — 4,191 4,191 Total commercial — — 170,339 170,339 Consumer: Residential mortgage: Single-family residential — — 1,125 1,125 Home equity lines of credit (“HELOCs”) — — 3,605 3,605 Total consumer — — 4,730 4,730 Total loans held-for-investment $ — $ — $ 175,069 $ 175,069 OREO (1) $ — $ — $ 14,914 $ 14,914 ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: C&I $ — $ — $ 143,331 $ 143,331 CRE: CRE — — 42,894 42,894 Total commercial — — 186,225 186,225 Consumer: Residential mortgage: HELOCs — — 1,146 1,146 Other consumer — — 2,491 2,491 Total consumer — — 3,637 3,637 Total loans held-for-investment $ — $ — $ 189,862 $ 189,862 Investments in tax credit and other investments, net $ — $ — $ 3,140 $ 3,140 OREO (1) $ — $ — $ 15,824 $ 15,824 (1) Amounts are included in Other assets on the Consolidated Balance Sheet and represent the carrying value of OREO properties that were written down subsequent to their initial classification as OREO. The following table presents the (decrease) increase in fair value of assets for which a nonrecurring fair value adjustment has been recognized for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Loans held-for-investment: Commercial: C&I $ (6,462) $ (8,846) $ (15,530) $ (30,372) CRE: CRE (275) (271) (7,336) (276) Multifamily residential 2 — (6) — Construction and land (209) — (280) — Total commercial (6,944) (9,117) (23,152) (30,648) Consumer: Residential mortgage: Single-family residential — — (8) — HELOCs 3 (64) (23) (257) Other consumer (2,491) — (2,491) 2,491 Total consumer (2,488) (64) (2,522) 2,234 Total loans held-for-investment $ (9,432) $ (9,181) $ (25,674) $ (28,414) Investments in tax credit and other investments, net $ 877 $ (733) $ 877 $ (583) OREO $ (910) $ — $ (910) $ — Other nonperforming assets $ — $ — $ (3,890) $ — The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of June 30, 2021 and December 31, 2020: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) June 30, 2021 Loans held-for-investment $ 96,038 Discounted cash flows Discount 4% — 20% 9% $ 13,638 Fair value of collateral Discount 20% — 40% 34% $ 65,393 Fair value of property Selling cost 7% — 8% 8% OREO $ 14,914 Fair value of property Selling cost 8% 8% December 31, 2020 Loans held-for-investment $ 104,783 Discounted cash flows Discount 3% — 15% 11% $ 22,207 Fair value of collateral Discount 10% — 26% 15% $ 15,879 Fair value of collateral Contract value NM NM $ 46,993 Fair value of property Selling cost 7% — 26% 10% Investments in tax credit and other investments, net $ 3,140 Individual analysis of each investment Expected future tax benefits and distributions NM NM OREO $ 15,824 Fair value of property Selling cost 8% 8% NM — Not meaningful. (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2021 and December 31, 2020. Disclosures about Fair Value of Financial Instruments The following tables present the fair value estimates for financial instruments as of June 30, 2021 and December 31, 2020, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable and mortgage servicing rights that are included in Other assets , and accrued interest payable that is included in Accrued expenses and other liabilities . These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet. ($ in thousands) June 30, 2021 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 5,997,805 $ 5,997,805 $ — $ — $ 5,997,805 Interest-bearing deposits with banks $ 830,279 $ — $ 830,279 $ — $ 830,279 Resale agreements $ 2,299,184 $ — $ 2,290,097 $ — $ 2,290,097 Restricted equity securities, at cost $ 76,931 $ — $ 76,931 $ — $ 76,931 Loans held-for-sale $ 1,819 $ — $ 1,819 $ — $ 1,819 Loans held-for-investment, net $ 39,485,775 $ — $ — $ 39,414,107 $ 39,414,107 Mortgage servicing rights $ 5,373 $ — $ — $ 8,788 $ 8,788 Accrued interest receivable $ 154,810 $ — $ 154,810 $ — $ 154,810 Financial liabilities: Demand, checking, savings and money market deposits $ 44,151,817 $ — $ 44,151,817 $ — $ 44,151,817 Time deposits $ 8,430,758 $ — $ 8,442,834 $ — $ 8,442,834 FHLB advances $ 248,464 $ — $ 250,871 $ — $ 250,871 Repurchase agreements $ 300,000 $ — $ 314,315 $ — $ 314,315 Long-term debt $ 147,515 $ — $ 150,232 $ — $ 150,232 Accrued interest payable $ 10,279 $ — $ 10,279 $ — $ 10,279 ($ in thousands) December 31, 2020 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 4,017,971 $ 4,017,971 $ — $ — $ 4,017,971 Interest-bearing deposits with banks $ 809,728 $ — $ 809,728 $ — $ 809,728 Resale agreements $ 1,460,000 $ — $ 1,464,635 $ — $ 1,464,635 Restricted equity securities, at cost $ 83,046 $ — $ 83,046 $ — $ 83,046 Loans held-for-sale $ 1,788 $ — $ 1,788 $ — $ 1,788 Loans held-for-investment, net $ 37,770,972 $ — $ — $ 37,803,940 $ 37,803,940 Mortgage servicing rights $ 5,522 $ — $ — $ 8,435 $ 8,435 Accrued interest receivable $ 150,140 $ — $ 150,140 $ — $ 150,140 Financial liabilities: Demand, checking, savings and money market deposits $ 35,862,403 $ — $ 35,862,403 $ — $ 35,862,403 Time deposits $ 9,000,349 $ — $ 9,016,884 $ — $ 9,016,884 Short-term borrowings $ 21,009 $ — $ 21,009 $ — $ 21,009 FHLB advances $ 652,612 $ — $ 659,631 $ — $ 659,631 Repurchase agreements $ 300,000 $ — $ 317,850 $ — $ 317,850 Long-term debt $ 147,376 $ — $ 150,131 $ — $ 150,131 Accrued interest payable $ 11,956 $ — $ 11,956 $ — $ 11,956 |
Assets Purchased under Resale A
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | 6 Months Ended |
Jun. 30, 2021 | |
RESALE AND REPURCHASE AGREEMENTS [Abstract] | |
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements | Assets Purchased under Resale Agreements and Sold under Repurchase Agreements Assets Purchased under Resale Agreements In resale agreements, the Company is exposed to credit risk for both counterparties and the underlying collateral. The Company manages credit exposure from certain transactions by entering into master netting agreements and collateral arrangements with counterparties. The relevant agreements allow for the efficient closeout of the transaction, liquidation and set-off of collateral against the net amount owed by the counterparty following a default. It is also the Company’s policy to take possession, where possible, of the assets underlying resale agreements. As a result of the Company’s credit risk mitigation practices with respect to resale agreements as described above, the Company did not hold any reserves for credit impairment with respect to these agreements as of both June 30, 2021 and December 31, 2020. Securities Purchased under Resale Agreements — Total securities purchased under resale agreements were $1.31 billion and $1.16 billion as of June 30, 2021 and December 31, 2020, respectively. The weighted-average yields were 1.54% and 2.14% for the three months ended June 30, 2021 and 2020, respectively; and 1.55% and 2.32% for the six months ended June 30, 2021 and 2020, respectively. Loans Purchased under Resale Agreements — The Company participated in resale agreements collateralized with loans with multiple counterparties starting in the fourth quarter of 2020. Total loans purchased under resale agreements were $989.2 million and $300.0 million as of June 30, 2021 and December 31, 2020, respectively. The weighted-average yields were 1.47% and 1.64% for the three and six months ended June 30, 2021, respectively. Assets Sold under Repurchase Agreements — As of June 30, 2021, the collateral for the repurchase agreements were comprised of U.S. Treasury securities and U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities. Gross repurchase agreements were $300.0 million as of both June 30, 2021 and December 31, 2020. The weighted-average interest rates were 2.63% and 3.40% for the three months ended June 30, 2021 and 2020, respectively, and 2.65% and 3.76% for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, all repurchase agreements will mature in 2023. Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting : Repurchase and Reverse Repurchase Agreements . Collateral received includes securities and loans that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Securities received or pledged as collateral in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, and are usually delivered to and held by the third-party trustees. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Received Resale agreements $ 2,299,184 $ — $ 2,299,184 $ (2,285,058) (1) $ 14,126 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 300,000 $ — $ 300,000 $ (300,000) (2) $ — ($ in thousands) December 31, 2020 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Net Collateral Received Resale agreements $ 1,460,000 $ — $ 1,460,000 $ (1,458,700) (1) $ 1,300 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 300,000 $ — $ 300,000 $ (300,000) (2) $ — (1) Represents the fair value of securities and loans the Company has received under resale agreements, limited to the amount of the recognized asset due from each counterparty for presentation purposes. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. (2) Represents the fair value of securities the Company has pledged under repurchase agreements, limited to the amount of the recognized liability due to each counterparty for presentation purpose. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to derivatives. Refer to Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS debt securities as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 841,890 $ 1,148 $ (6,098) $ 836,940 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,237,278 5,835 (18,602) 1,224,511 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,177,949 23,374 (12,683) 1,188,640 Residential mortgage-backed securities 2,375,536 18,186 (25,170) 2,368,552 Municipal securities 445,028 11,532 (1,637) 454,923 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 360,704 5,282 (1,814) 364,172 Residential mortgage-backed securities 772,382 2,308 (2,216) 772,474 Corporate debt securities 558,295 8,597 (14,177) 552,715 Foreign government bonds 286,579 512 (3,916) 283,175 Asset-backed securities 61,501 335 (7) 61,829 CLOs 294,000 — (2,471) 291,529 Total AFS debt securities $ 8,411,142 $ 77,109 $ (88,791) $ 8,399,460 ($ in thousands) December 31, 2020 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 50,310 $ 451 $ — $ 50,761 U.S. government agency and U.S. government-sponsored enterprise debt securities 806,814 8,765 (1,260) 814,319 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,125,174 34,306 (5,710) 1,153,770 Residential mortgage-backed securities 1,634,553 27,952 (1,611) 1,660,894 Municipal securities 382,573 13,588 (88) 396,073 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 234,965 6,107 (1,230) 239,842 Residential mortgage-backed securities 288,520 1,761 (506) 289,775 Corporate debt securities 406,323 3,493 (3,848) 405,968 Foreign government bonds 183,828 163 (1,460) 182,531 Asset-backed securities 63,463 10 (242) 63,231 CLOs 294,000 — (6,506) 287,494 Total AFS debt securities $ 5,470,523 $ 96,596 $ (22,461) $ 5,544,658 As of June 30, 2021 and December 31, 2020, the amortized cost of AFS debt securities excluded accrued interest receivables of $30.0 million and $22.3 million, respectively, which are included in Other assets on the Consolidated Balance Sheet. For the Company’s accounting policy related to AFS debt securities’ accrued interest receivable, see Note 1 — Summary of Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2020 Form 10-K. Unrealized Losses The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of June 30, 2021 and December 31, 2020. ($ in thousands) June 30, 2021 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 544,599 $ (6,098) $ — $ — $ 544,599 $ (6,098) U.S. government agency and U.S. government sponsored enterprise debt securities 782,327 (17,402) 23,776 (1,200) 806,103 (18,602) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 491,515 (11,487) 28,399 (1,196) 519,914 (12,683) Residential mortgage-backed securities 1,346,061 (25,170) — — 1,346,061 (25,170) Municipal securities 108,695 (1,637) — — 108,695 (1,637) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 102,043 (1,806) 15,579 (8) 117,622 (1,814) Residential mortgage-backed securities 464,404 (2,216) — — 464,404 (2,216) Corporate debt securities 254,723 (11,277) 57,100 (2,900) 311,823 (14,177) Foreign government bonds 59,189 (3,146) 92,844 (770) 152,033 (3,916) Asset-backed securities 15,948 (7) — — 15,948 (7) CLOs — — 291,529 (2,471) 291,529 (2,471) Total AFS debt securities $ 4,169,504 $ (80,246) $ 509,227 $ (8,545) $ 4,678,731 $ (88,791) ($ in thousands) December 31, 2020 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 352,521 $ (1,260) $ — $ — $ 352,521 $ (1,260) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 292,596 (5,656) 3,543 (54) 296,139 (5,710) Residential mortgage-backed securities 342,561 (1,611) — — 342,561 (1,611) Municipal securities 24,529 (88) — — 24,529 (88) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 58,738 (1,230) 7,920 — 66,658 (1,230) Residential mortgage-backed securities 90,156 (506) — — 90,156 (506) Corporate debt securities 251,674 (3,645) 9,798 (203) 261,472 (3,848) Foreign government bonds 106,828 (1,460) — — 106,828 (1,460) Asset-backed securities — — 34,104 (242) 34,104 (242) CLOs — — 287,494 (6,506) 287,494 (6,506) Total AFS debt securities $ 1,519,603 $ (15,456) $ 342,859 $ (7,005) $ 1,862,462 $ (22,461) As of June 30, 2021, the Company had a total of 253 AFS debt securities in a gross unrealized loss position with no credit impairment that were comprised primarily of 102 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities, 34 U.S. government agency and U.S. government-sponsored enterprise debt securities, and 18 corporate debt securities. In comparison, as of December 31, 2020, the Company had a total of 104 AFS debt securities in a gross unrealized loss position with no credit impairment that were comprised primarily of 46 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities and 17 corporate debt securities. Allowance for Credit Losses Each reporting period, the Company assesses each AFS debt security that is in an unrealized loss position to determine whether the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. For a discussion of the factors and criteria the Company uses in analyzing securities for impairment related to credit losses, see Note 1 — Summary of Significant Accounting Policies — Allowance for Credit Losses on Available-for-Sale Debt Securities to the Consolidated Financial Statements in the Company’s 2020 Form 10-K. The gross unrealized losses presented in the above tables were primarily attributable to yield curve movements and widened liquidity spreads. Securities that were in unrealized loss positions as of June 30, 2021 were mainly comprised of the following: • U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities — The market value decline as of June 30, 2021 was primarily due to interest rate movement. These securities (issued by Fannie Mae, Ginnie Mae and Freddie Mac) are guaranteed or sponsored by agencies of the U.S. government, and the credit profiles are strong (rated Aaa, AA+ and AAA by Moody’s Investors Service (“Moody’s”), Standard and Poor's (“S&P”) and Fitch Ratings (“Fitch”), respectively). The Company expects to receive all contractual cash flows on time and believes the risk of credit losses on these securities is remote. • U.S. government agency and U.S. government-sponsored enterprise debt securities — The market value decline as of June 30, 2021 was primarily due to interest rate movement. The securities consisted o f the debt securities issued by: – Federal Farm Credit Bank, Fannie Mae, Freddie Mac, and U.S. International Development Finance Corporation (rated Aaa, AA+ and AAA by Moody’s, S&P and Fitch, respectively). – FHLB debt obligations (rated Aaa and AA+ by Moody’s and S&P, respectively). These securities are guaranteed or issued by entities sponsored by the U.S. government and the credit profiles are strong. The Company expects to receive all contractual cash flows on time and believes the risk of credit losses on these securities is remote. • Corporate debt securities — The market value decline as of June 30, 2021 was primarily due to interest rate movement and spread widening. Since credit profiles of these securities are strong (rated BBB- or higher by Moody’s, S&P, Kroll Bond Rating Agency and Fitch), and the contractual payments from these bonds have been and are expected to be received on time, the Company believes that the risk of credit losses on these securities is remote. The impact of the Coronavirus Disease 2019 (“COVID-19”) pandemic has been reduced by the government’s aggressive monetary policy, including benchmark rate cuts, and various relief measures that contributed to the gradual and steady recovery of the market to pre-pandemic levels. Overall, the Company believes that the credit support levels of the AFS debt securities are strong and, based on current assessments and macroeconomic forecasts, expects that full contractual cash flows will be received, even if near-term credit performance could suffer from future unpredictable impacts of the COVID-19 pandemic, including new and more contagious variants. As of June 30, 2021 and December 31, 2020, the Company had the intent to hold the AFS debt securities with unrealized losses through the anticipated recovery period and it was more-likely-than-not that the Company will not have to sell these securities before the recovery of their amortized cost. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, there was no allowance for credit losses as of June 30, 2021 and December 31, 2020 provided against these securities. In addition, there was no provision for credit losses recognized for the three and six months ended June 30, 2021 and 2020. Realized Gains and Losses The following table presents the gross realized gains and tax expense related to the sales of AFS debt securities for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Gross realized gains $ 632 $ 9,640 $ 824 $ 11,169 Related tax expense $ 187 $ 2,850 $ 244 $ 3,302 Contractual Maturities of Available-for-Sale Debt Securities The following table presents the contractual maturities of AFS debt securities as of June 30, 2021. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties. ($ in thousands) Amortized Cost Fair Value Due within one year $ 1,379,762 $ 1,353,523 Due after one year through five years 785,678 790,794 Due after five years through ten years 1,483,790 1,491,799 Due after ten years 4,761,912 4,763,344 Total AFS debt securities $ 8,411,142 $ 8,399,460 As of June 30, 2021 and December 31, 2020, AFS debt securities with fair valu es of $618.1 million and $588.5 million, respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law. Restricted Equity Securities The following table presents the restricted equity securities on the Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Federal Reserve Bank of San Francisco (“FRBSF”) stock $ 59,681 $ 59,249 FHLB stock 17,250 23,797 Total restricted equity securities $ 76,931 $ 83,046 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivatives to manage exposure to market risk, primarily interest rate or foreign currency risk, as well as to assist customers with their risk management objectives. The Company’s goal is to manage interest rate sensitivity and volatility so that movements in interest rates do not significantly affect earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange rate risk associated with certain foreign currency-denominated assets and liabilities, as well as the Bank’s investment in East West Bank (China) Limited. The Company recognizes all derivatives on the Consolidated Balance Sheet at fair value. While the Company designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship, other derivatives serve as economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Derivatives to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. The following table presents the total notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments on an aggregate basis as of June 30, 2021 and December 31, 2020. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of June 30, 2021 and December 31, 2020. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet. ($ in thousands) June 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Derivative Derivative Derivative Derivative Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 275,000 $ — $ 1,184 $ 275,000 $ — $ 1,864 Net investment hedges: Foreign exchange contracts 85,176 — 195 84,269 — 235 Total derivatives designated as hedging instruments $ 360,176 $ — $ 1,379 $ 359,269 $ — $ 2,099 Derivatives not designated as hedging instruments: Interest rate contracts $ 17,836,695 $ 329,953 $ 227,768 $ 18,155,678 $ 489,132 $ 315,834 Foreign exchange contracts 3,756,284 29,867 20,360 3,108,488 30,300 22,524 Credit contracts 83,693 3 87 76,992 13 206 Equity contracts — (1) 223 — — (1) 858 — Commodity contracts — (2) 228,536 199,327 — (2) 82,451 84,165 Total derivatives not designated as hedging instruments $ 21,676,672 $ 588,582 $ 447,542 $ 21,341,158 $ 602,754 $ 422,729 Gross derivative assets/liabilities $ 588,582 $ 448,921 $ 602,754 $ 424,828 Less: Master netting agreements (89,723) (89,723) (93,063) (93,063) Less: Cash collateral received/paid (3,368) (163,586) (8,449) (91,634) Net derivative assets/liabilities $ 495,491 $ 195,612 $ 501,242 $ 240,131 (1) The Company held equity contracts in 14 private companies as of June 30, 2021. In comparison, the Company held equity contracts in two public companies and 17 private companies as of December 31, 2020. (2) The notional amount of the Company’s commodity contracts entered with its customers totaled 8,484 thousand barrels of crude oil and 119,921 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2021. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 6,321 thousand barrels of crude oil and 109,635 thousand MMBTUs of natural gas as of December 31, 2020. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions. Derivatives Designated as Hedging Instruments Fair Value Hedges — The Company entered into interest rate swaps designated as fair value hedges to hedge changes in the fair value of certain certificates of deposit due to changes in the benchmark interest rate. The interest rate swaps involved the exchange of variable-rate payments over the life of the agreements without exchanging the underlying notional amounts. During the fourth quarter of 2020, both the hedging interest rate swaps and hedged certificates of deposit were called. As of both June 30, 2021 and December 31, 2020, there were no fair value hedges or hedged certificates of deposit outstanding. There were no gains or losses recognized on the Consolidated Statement of Income related to the derivatives designated as fair value hedges for both the three and six months ended June 30, 2021. In comparison, the net gains recognized on interest rate swaps were $951 thousand and $3.0 million, and the net losses recognized on certificates of deposit were $357 thousand and $1.7 million for the three and six months ended June 30, 2020, respectively, both of which were recorded in interest expense on the Consolidated Statement of Income. Cash Flow Hedges — The Company entered into interest rate swaps that were designated and qualified as cash flow hedges to limit the exposure to the variability in interest payments on certain floating rate borrowings. For cash flow hedges, the entire change in the fair value of the hedging instruments is recognized in AOCI and reclassified to earnings in the same period when the hedged cash flows impact earnings. Reclassified gains and losses on interest rate swaps are recorded in the same line item as the interest payments of the hedged long-term borrowings within Interest expense in the Consolidated Statements of Income. Considering the interest rates, yield curve and notional amounts as of June 30, 2021, the Company expected to reclassify an estimated $605 thousand of after-tax net losses on derivative instruments designated as cash flow hedges from AOCI into earnings during the next 12 months. The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and six months ended June 30, 2021 and 2020. The after-tax impact of cash flow hedges on AOCI is discussed in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q. ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Losses) gains recognized in AOCI $ (106) $ (1,483) $ 320 $ (1,483) (Losses) gains reclassified from AOCI to interest expense $ (201) $ 377 $ (378) $ 377 Net Investment Hedges — ASC 830-20, Foreign Currency Matters — Foreign Currency Transactions and ASC 815, Derivatives and Hedging , allow hedging of the foreign currency risk of a net investment in a foreign operation. The Company enters into foreign currency forward contracts to hedge a portion of the Bank’s investment in East West Bank (China) Limited, a non-USD functional currency subsidiary in China. The hedging instruments designated as net investment hedges involve hedging the risk of changes in the USD equivalent value of a designated monetary amount of the Bank’s net investment in East West Bank (China) Limited, against the risk of adverse changes in the foreign currency exchange rate of the Chinese Renminbi (“RMB”). The Company may de-designate the net investment hedges when the Company expects the hedge will cease to be effective. The following table presents the after-tax (losses) gains recognized in AOCI on net investment hedges for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Losses) gains recognized in AOCI $ (1,643) $ (377) $ (1,543) $ 627 Derivatives Not Designated as Hedging Instruments Interest Rate Contracts — The Company enters into interest rate contracts, which include interest rate swaps and options with its customers to allow the customers to hedge against the risk of rising interest rates on their variable rate loans. To economically hedge against the interest rate risks in the products offered to its customers, the Company enters into mirrored offsetting interest rate contracts with third-party financial institutions, including central clearing organizations. The following tables present the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Written options $ 850,152 $ — $ 650 Purchased options $ 850,152 $ 656 $ — Sold collars and corridors 424,212 3,864 218 Collars and corridors 424,212 214 3,910 Swaps 7,628,895 309,520 25,743 Swaps 7,659,072 15,699 197,247 Total $ 8,903,259 $ 313,384 $ 26,611 Total $ 8,933,436 $ 16,569 $ 201,157 ($ in thousands) December 31, 2020 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Written options $ 957,393 $ — $ 115 Purchased options $ 957,393 $ 101 $ 15 Sold collars and corridors 518,477 7,673 — Collars and corridors 518,477 — 7,717 Swaps 7,586,414 479,634 1,364 Swaps 7,617,524 1,724 306,623 Total $ 9,062,284 $ 487,307 $ 1,479 Total $ 9,093,394 $ 1,825 $ 314,355 Included in the total notional amount of $8.93 billion of interest rate contracts entered into with financial counterparties as of June 30, 2021, was a notional amount of $2.96 billion of interest rate swaps that cleared through London Clearing House (“LCH”). Applying variation margin payments as settlement to LCH cleared derivative transactions resulted in a reduction in derivative asset fair value of $13.4 million and liability fair value of $120.0 million as of June 30, 2021. In comparison, included in the total notional amount of $9.09 billion of interest rate contracts entered into with financial counterparties as of December 31, 2020 was a notional amount of $2.98 billion of interest rate swaps that cleared through LCH. Applying variation margin payments as settlement to LCH cleared derivative transactions resulted in a reduction in derivative asset fair values of $1.3 million and liability fair values of $187.4 million as of December 31, 2020. Foreign Exchange Contracts — The Company enters into foreign exchange contracts with its customers, consisting of forwards, spot, swap and option contracts to accommodate the business needs of its customers. The Company enters into offsetting foreign exchange contracts with third-party financial institutions to manage its foreign exchange exposure with its customers, or enters into bilateral collateral and master netting agreements with certain customer counterparties to manage its credit exposure. The Company also utilizes foreign exchange contracts to mitigate the economic effect of currency fluctuations on certain foreign currency-denominated on-balance sheet assets and liabilities, primarily foreign currency-denominated deposits offered to its customers. A majority of the foreign exchange contracts had original maturities of one year or less as of both June 30, 2021 and December 31, 2020. The following tables present the notional amounts and the gross fair values of foreign exchange derivative contracts outstanding as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spot $ 2,299,644 $ 20,026 $ 16,189 Forwards and spot $ 219,671 $ 1,575 $ 1,083 Swaps 103,086 182 651 Swaps 892,913 8,052 2,405 Written options 118,350 — 31 Purchased options 118,350 31 — Collars 2,135 1 — Collars 2,135 — 1 Total $ 2,523,215 $ 20,209 $ 16,871 Total $ 1,233,069 $ 9,658 $ 3,489 ($ in thousands) December 31, 2020 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spot $ 1,522,888 $ 17,575 $ 17,928 Forwards and spot $ 145,197 $ 1,230 $ 273 Swaps 13,590 872 91 Swaps 1,191,355 10,049 3,658 Written options 117,729 — 574 Purchased options 117,729 574 — Total $ 1,654,207 $ 18,447 $ 18,593 Total $ 1,454,281 $ 11,853 $ 3,931 Credit Contracts — The Company may periodically enter into RPAs with institutional counterparties to manage the credit exposure on interest rate contracts associated with syndicated loans. The Company may enter into protection sold or protection purchased RPAs. Under the RPAs, the Company will disburse or receive a payment if a borrower defaults on the related interest rate contract. Credit risk on RPAs is managed by monitoring the credit worthiness of the borrowers and institutional counterparties, which is part of the normal credit review process. The majority of the reference entities of the protection sold RPAs were investment grade as of June 30, 2021, while all were investment grade as of December 31, 2020. Assuming the underlying borrower referenced in the interest rate contracts defaulted as of June 30, 2021 and December 31, 2020, the maximum exposure of protection sold RPAs would be $5.0 million and $6.0 million, respectively. As of June 30, 2021 and December 31, 2020, the weighted-average remaining maturities of the outstanding protection sold RPAs were 3.7 years and 3.5 years, respectively. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. The following table presents the notional amounts and the gross fair values of RPAs sold and purchased outstanding as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities RPAs - protection sold $ 72,979 $ — $ 87 $ 66,278 $ — $ 206 RPAs - protection purchased 10,714 3 — 10,714 13 — Total RPAs $ 83,693 $ 3 $ 87 $ 76,992 $ 13 $ 206 Equity Contracts — Periodically, as part of the Company’s loan origination process, the Company obtains warrants to purchase preferred and/or common stock of technology and life sciences companies to which it provides loans. Warrants grant the Company the right to buy a certain class of the underlying company’s equity at a certain price before expiration. The Company held warrants in 14 private companies as of June 30, 2021, and held warrants in two public companies and 17 private companies as of December 31, 2020. The total fair value of the warrants held in both public and private companies was $223 thousand and $858 thousand as of June 30, 2021 and December 31, 2020, respectively. Commodity Contracts — The Company enters into energy commodity contracts in the form of swaps and options with its commercial loan customers to allow them to hedge against the risk of energy commodity price fluctuation. To economically hedge against the risk of commodity price fluctuation in the products offered to its customers, the Company enters into offsetting commodity contracts with third-party financial institutions to manage the exposure. The following tables present the notional amounts and fair values of the commodity derivative positions outstanding as of June 30, 2021 and December 31, 2020: ($ and units in thousands) June 30, 2021 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Written options 210 Barrels $ 288 $ 2 Purchased options 210 Barrels $ — $ 241 Collars 2,406 Barrels 28,308 35 Collars 2,406 Barrels 35 27,811 Swaps 5,868 Barrels 92,924 27 Swaps 5,868 Barrels 60 76,813 Total 8,484 $ 121,520 $ 64 Total 8,484 $ 95 $ 104,865 Natural gas: Natural gas: Written options 5,336 MMBTUs $ 3 $ 16 Purchased options 5,336 MMBTUs $ 16 $ 3 Collars 18,178 MMBTUs 9,327 — Collars 23,468 MMBTUs — 7,879 Swaps 96,407 MMBTUs 72,438 25,144 Swaps 103,653 MMBTUs 25,137 61,356 Total 119,921 $ 81,768 $ 25,160 Total 132,457 $ 25,153 $ 69,238 Total $ 203,288 $ 25,224 Total $ 25,248 $ 174,103 ($ and units in thousands) December 31, 2020 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Collars 2,022 Barrels $ 2,344 $ 2,193 Collars 2,022 Barrels $ 2,217 $ 2,402 Swaps 4,299 Barrels 9,282 14,283 Swaps 4,299 Barrels 8,220 7,135 Total 6,321 $ 11,626 $ 16,476 Total 6,321 $ 10,437 $ 9,537 Natural gas: Natural gas: Written options 597 MMBTUs $ — $ 59 Purchased options 597 MMBTUs $ 59 $ — Collars 12,733 MMBTUs 1,063 205 Collars 16,293 MMBTUs 205 813 Swaps 96,305 MMBTUs 32,073 27,238 Swaps 103,973 MMBTUs 26,988 29,837 Total 109,635 $ 33,136 $ 27,502 Total 120,863 $ 27,252 $ 30,650 Total $ 44,762 $ 43,978 Total $ 37,689 $ 40,187 As of June 30, 2021, the notional quantities that cleared through the Chicago Mercantile Exchange (“CME”) totaled 1,097 thousand barrels of crude oil and 26,515 thousand MMBTUs of natural gas. Applying the variation margin payments as settlement to CME-cleared derivative transactions resulted in reductions to the gross derivative asset fair value of $3.8 million and to the liability fair value of $29.2 million as of June 30, 2021, to a net fair value liability of $3.9 million. In comparison, the notional quantities that cleared through CME totaled 1,275 thousand barrels of crude oil and 29,733 thousand MMBTUs of natural gas as of December 31, 2020. Applying the variation margin payments as settlement to CME-cleared derivative transactions resulted in a reduction to the gross derivative asset fair value of $7.9 million and to the liability fair value of $3.7 million, as of December 31, 2020, to a net fair value of zero. The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Classification on Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives not designated as hedging instruments: Interest rate contracts Interest rate contracts and other derivative income $ (5,338) $ (5,361) $ 8,563 $ (12,372) Foreign exchange contracts Foreign exchange income 11,972 6,201 22,215 9,062 Credit contracts Interest rate contracts and other derivative income 150 (75) 195 (98) Equity contracts Lending fees 74 8,070 385 8,379 Commodity contracts Interest rate contracts and other derivative income (188) (71) (19) (47) Net gains $ 6,670 $ 8,764 $ 31,339 $ 4,924 Credit Risk-Related Contingent Features — Certain over-the-counter derivative contracts of the Company contain early termination provisions that may require the Company to settle any outstanding balances upon the occurrence of a specified credit risk-related event. These events, which are defined by the existing derivative contracts, primarily relate to a downgrade in the credit rating of East West Bank to below investment grad e. As of June 30, 2021, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $89.3 million, in which $89.1 million of collateral was posted to cover these positions. As of December 31, 2020, the aggregate fair value amounts of all derivative instruments with credit risk-related contingent features that were in a net liability position totaled $107.4 million, in which $106.8 million of collateral was posted to cover these positions. In the event that the credit rating of East West Bank had been downgraded to below investment grade, minimal additional collateral would have been required to be posted as of June 30, 2021 and December 31, 2020. Offsetting of Derivatives The following tables present the gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements with central counterparties, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability, after the application of netting; therefore, instances of overcollateralization are not shown: ($ in thousands) As of June 30, 2021 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 588,582 $ (89,723) $ (3,368) $ 495,491 $ — $ 495,491 Gross Amounts Recognized (2) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 448,921 $ (89,723) $ (163,586) $ 195,612 $ (155,245) $ 40,367 ($ in thousands) As of December 31, 2020 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 602,754 $ (93,063) $ (8,449) $ 501,242 $ (35) $ 501,207 Gross Amounts Recognized (2) Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 424,828 $ (93,063) $ (91,634) $ 240,131 $ (221,150) $ 18,981 (1) Includes $940 thousand and $1.1 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2021 and December 31, 2020, respectively. (2) Includes $842 thousand and $220 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2021 and December 31, 2020, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements were $9.8 million and $15.8 million as of June 30, 2021 and December 31, 2020, respectively. Of the gross cash collateral received, $3.4 million and $8.4 million were used to offset against derivative assets as of June 30, 2021 and December 31, 2020, respectively. (4) Gross cash collateral pledged under master netting arrangements or similar agreements were $163.9 million and $91.6 million as of June 30, 2021 and December 31, 2020, respectively. Of the gross cash collateral pledged, $163.6 million and $91.6 million were used to offset against derivative liabilities as of June 30, 2021 and December 31, 2020, respectively. (5) Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to resale and repurchase agreements. Refer to Note 4 — Assets Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements in this Form 10-Q for additional information. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for fair value measurement disclosures on derivatives. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The following table presents the composition of the Company’s loans held-for-investment as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Commercial: C&I (1) $ 13,790,461 $ 13,631,726 CRE: CRE 11,711,369 11,174,611 Multifamily residential 3,219,796 3,033,998 Construction and land 460,678 599,692 Total CRE 15,391,843 14,808,301 Total commercial 29,182,304 28,440,027 Consumer: Residential mortgage: Single-family residential 8,869,370 8,185,953 HELOCs 1,872,166 1,601,716 Total residential mortgage 10,741,536 9,787,669 Other consumer 147,659 163,259 Total consumer 10,889,195 9,950,928 Total loans held-for-investment (2) $ 40,071,499 $ 38,390,955 Allowance for loan losses (585,724) (619,983) Loans held-for-investment, net (2) $ 39,485,775 $ 37,770,972 (1) Includes Paycheck Protection Program (“PPP”) loans of $1.43 billion and $1.57 billion as of June 30, 2021 and December 31, 2020, respectively. (2) Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(67.0) million and $(58.8) million as of June 30, 2021 and December 31, 2020, respectively. Net origination fees related to PPP loans were $(25.9) million and $(12.7) million as of June 30, 2021 and December 31, 2020, respectively. L oans held-for-investment accrued interest receivable was $103.6 million and $107.5 million as of June 30, 2021 and December 31, 2020, respectively, and is presented in Other assets on the Consolidated Balance Sheet. For the Company’s accounting policy on accrued interest receivable related to loans held-for-investment, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. Loans totaling $24.23 billion and $23.26 billion as of June 30, 2021 and December 31, 2020, respectively, were pledged to secure borrowings and provide additional borrowing capacity from the FRBSF and the FHLB. Credit Quality Indicators All loans are subject to the Company’s credit review and monitoring process. For the commercial portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the majority of the consumer portfolio, payment performance or delinquency is the driving indicator for the risk ratings. The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of one through 10. Loans risk rated one through five are assigned an internal risk rating of “Pass.” Loans risk rated one are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions. Loans assigned a risk rating of six have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating of “Special Mention.” Loans assigned a risk rating of seven or eight have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating of “Substandard.” Loans assigned a risk rating of nine have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating of “Doubtful.” Loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating of “Loss.” Exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans. The following tables summarize the Company’s loans held-for-investment as of June 30, 2021 and December 31, 2020, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification. June 30, 2021 Term Loans Revolving Loans Revolving Loans Converted to Term Loans Amortized Cost Basis Total Amortized Cost Basis by Origination Year ($ in thousands) 2021 2020 2019 2018 2017 Prior Commercial: C&I: Pass $ 2,473,716 $ 2,133,586 $ 1,062,978 $ 333,190 $ 200,711 $ 261,156 $ 6,706,592 $ 29,175 $ 13,201,104 Criticized (accrual) 63,030 115,148 87,636 13,847 3,184 4,939 218,348 — 506,132 Criticized (nonaccrual) 16,760 814 2,114 20,977 12,748 1,377 28,435 — 83,225 Total C&I 2,553,506 2,249,548 1,152,728 368,014 216,643 267,472 6,953,375 29,175 13,790,461 CRE: CRE: Pass 1,296,562 2,215,380 2,316,293 2,142,042 1,239,195 2,021,101 153,758 24,073 11,408,404 Criticized (accrual) 80,204 13,844 48,131 9,743 33,358 58,905 — — 244,185 Criticized (nonaccrual) 4,500 — — 46,829 5,868 1,583 — — 58,780 Total CRE 1,381,266 2,229,224 2,364,424 2,198,614 1,278,421 2,081,589 153,758 24,073 11,711,369 Multifamily residential: Pass 384,655 760,226 743,769 454,684 338,701 469,340 6,430 — 3,157,805 Criticized (accrual) — — 728 22,337 6,035 29,998 — — 59,098 Criticized (nonaccrual) — — — 1,189 — 1,704 — — 2,893 Total multifamily residential 384,655 760,226 744,497 478,210 344,736 501,042 6,430 — 3,219,796 Construction and land: Pass 54,054 120,898 130,702 111,112 — 1,421 — — 418,187 Criticized (accrual) 3,440 — — — — 19,151 — — 22,591 Criticized (nonaccrual) — — — — — 19,900 — — 19,900 Total construction and land 57,494 120,898 130,702 111,112 — 40,472 — — 460,678 Total CRE 1,823,415 3,110,348 3,239,623 2,787,936 1,623,157 2,623,103 160,188 24,073 15,391,843 Total commercial 4,376,921 5,359,896 4,392,351 3,155,950 1,839,800 2,890,575 7,113,563 53,248 29,182,304 Consumer: Residential mortgage: Single-family residential: Pass (1) 1,526,669 2,319,273 1,567,312 1,273,541 879,004 1,282,396 — — 8,848,195 Criticized (accrual) — 397 156 1,100 — — — — 1,653 Criticized (nonaccrual) (1) 1,125 — 1,420 2,667 2,245 12,065 — — 19,522 Total single-family residential mortgage 1,527,794 2,319,670 1,568,888 1,277,308 881,249 1,294,461 — — 8,869,370 HELOCs: Pass — 1,938 1,501 1,824 4,508 11,385 1,592,348 247,174 1,860,678 Criticized (accrual) — — — 201 — 600 366 — 1,167 Criticized (nonaccrual) — — 618 188 3,533 1,927 — 4,055 10,321 Total HELOCs — 1,938 2,119 2,213 8,041 13,912 1,592,714 251,229 1,872,166 Total residential mortgage 1,527,794 2,321,608 1,571,007 1,279,521 889,290 1,308,373 1,592,714 251,229 10,741,536 Other consumer: Pass 4,096 7,228 — — 1,741 81,906 50,166 — 145,137 Criticized (accrual) 19 — — — — — — — 19 Criticized (nonaccrual) — — — — 2,491 — 12 — 2,503 Total other consumer 4,115 7,228 — — 4,232 81,906 50,178 — 147,659 Total consumer 1,531,909 2,328,836 1,571,007 1,279,521 893,522 1,390,279 1,642,892 251,229 10,889,195 Total $ 5,908,830 $ 7,688,732 $ 5,963,358 $ 4,435,471 $ 2,733,322 $ 4,280,854 $ 8,756,455 $ 304,477 $ 40,071,499 ($ in thousands) December 31, 2020 Term Loans Revolving Loans Revolving Loans Converted to Term Loans Amortized Cost Basis Total Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Commercial: C&I: Pass $ 3,912,147 $ 1,477,740 $ 483,725 $ 245,594 $ 69,482 $ 245,615 $ 6,431,003 $ 29,487 $ 12,894,793 Criticized (accrual) 120,183 74,601 56,785 19,426 1,487 5,872 324,640 — 602,994 Criticized (nonaccrual) 2,125 25,267 22,240 18,787 4,964 1,592 58,964 — 133,939 Total C&I 4,034,455 1,577,608 562,750 283,807 75,933 253,079 6,814,607 29,487 13,631,726 CRE: CRE: Pass 2,296,649 2,402,136 2,310,748 1,328,251 732,694 1,529,681 173,267 19,064 10,792,490 Criticized (accrual) 47,459 63,654 43,447 98,259 2,094 80,662 — — 335,575 Criticized (nonaccrual) — — 42,067 1,115 — 3,364 — — 46,546 Total CRE 2,344,108 2,465,790 2,396,262 1,427,625 734,788 1,613,707 173,267 19,064 11,174,611 Multifamily residential: Pass 783,671 783,589 479,959 411,945 181,213 348,751 5,895 — 2,995,023 Criticized (accrual) — 735 22,330 6,101 264 5,877 — — 35,307 Criticized (nonaccrual) — — 1,475 — — 2,193 — — 3,668 Total multifamily residential 783,671 784,324 503,764 418,046 181,477 356,821 5,895 — 3,033,998 Construction and land: Pass 224,924 172,707 156,712 — 20,897 1,028 — — 576,268 Criticized (accrual) 3,524 — — — — 19,900 — — 23,424 Criticized (nonaccrual) — — — — — — — — — Total construction and land 228,448 172,707 156,712 — 20,897 20,928 — — 599,692 Total CRE 3,356,227 3,422,821 3,056,738 1,845,671 937,162 1,991,456 179,162 19,064 14,808,301 Total commercial 7,390,682 5,000,429 3,619,488 2,129,478 1,013,095 2,244,535 6,993,769 48,551 28,440,027 Consumer: Residential mortgage: Single-family residential: Pass (1) 2,385,853 1,813,200 1,501,660 1,021,707 523,170 921,714 — — 8,167,304 Criticized (accrual) — 1,429 — — 119 1,034 — — 2,582 Criticized (nonaccrual) (1) — 226 812 1,789 1,994 11,246 — — 16,067 Total single-family residential mortgage 2,385,853 1,814,855 1,502,472 1,023,496 525,283 933,994 — — 8,185,953 HELOCs: Pass 1,131 880 2,879 5,363 8,433 13,475 1,328,919 225,810 1,586,890 Criticized (accrual) — — 200 — 996 — 1,328 606 3,130 Criticized (nonaccrual) — 151 285 4,617 164 1,962 — 4,517 11,696 Total HELOCs 1,131 1,031 3,364 9,980 9,593 15,437 1,330,247 230,933 1,601,716 Total residential mortgage 2,386,984 1,815,886 1,505,836 1,033,476 534,876 949,431 1,330,247 230,933 9,787,669 Other consumer: Pass 9,531 — — 1,830 — 83,255 66,136 — 160,752 Criticized (accrual) 16 — — — — — — — 16 Criticized (nonaccrual) — — — 2,491 — — — — 2,491 Total other consumer 9,547 — — 4,321 — 83,255 66,136 — 163,259 Total consumer 2,396,531 1,815,886 1,505,836 1,037,797 534,876 1,032,686 1,396,383 230,933 9,950,928 Total $ 9,787,213 $ 6,816,315 $ 5,125,324 $ 3,167,275 $ 1,547,971 $ 3,277,221 $ 8,390,152 $ 279,484 $ 38,390,955 (1) As of June 30, 2021 and December 31, 2020, $647 thousand and $747 thousand of nonaccrual loans whose payments are guaranteed by the Federal Housing Administration, respectively, were classified with a “Pass” rating. Revolving loans converted to term loans presented in the table above are excluded from the term loans by vintage year columns. During the three and six months ended June 30, 2021, HELOCs totaling $20.9 million and $57.6 million, respectively, were converted to term loans. In comparison, during the three and six months ended June 30, 2020, HELOCs totaling $12.1 million and $43.4 million, respectively, were converted to term loans. During both the three and six months ended June 30, 2021 and 2020, there were no conversions of C&I revolving loans to term loans. There were no conversions of CRE revolving loans to term loans during the three months ended June 30, 2021. Two CRE revolving loans totaling $5.0 million were converted to term loans during the six months ended June 30, 2021. In comparison, there were no conversions of CRE revolving loans to term loans during both the three and six months ended June 30, 2020. Nonaccrual and Past Due Loans Loans that are 90 or more days past due are generally placed on nonaccrual status, unless the loan is well-collateralized and in the process of collection. Loans that are less than 90 days past due but have identified deficiencies, such as when the full collection of principal or interest becomes uncertain, are also placed on nonaccrual status. Payment deferral activities instituted in response to the COVID-19 pandemic could delay the recognition of delinquencies for customers who otherwise would have moved into nonaccrual status. The following tables present the aging analysis of total loans held-for-investment as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 13,677,054 $ 30,148 $ 34 $ 30,182 $ 83,225 $ 13,790,461 CRE: CRE 11,647,942 4,647 — 4,647 58,780 11,711,369 Multifamily residential 3,215,139 1,764 — 1,764 2,893 3,219,796 Construction and land 440,778 — — — 19,900 460,678 Total CRE 15,303,859 6,411 — 6,411 81,573 15,391,843 Total commercial 28,980,913 36,559 34 36,593 164,798 29,182,304 Consumer: Residential mortgage: Single-family residential 8,834,580 12,969 1,653 14,622 20,168 8,869,370 HELOCs 1,858,040 2,643 1,162 3,805 10,321 1,872,166 Total residential mortgage 10,692,620 15,612 2,815 18,427 30,489 10,741,536 Other consumer 144,871 265 20 285 2,503 147,659 Total consumer 10,837,491 15,877 2,835 18,712 32,992 10,889,195 Total $ 39,818,404 $ 52,436 $ 2,869 $ 55,305 $ 197,790 $ 40,071,499 ($ in thousands) December 31, 2020 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 13,488,070 $ 8,993 $ 724 $ 9,717 $ 133,939 $ 13,631,726 CRE: CRE 11,127,690 375 — 375 46,546 11,174,611 Multifamily residential 3,028,512 1,818 — 1,818 3,668 3,033,998 Construction and land 579,792 19,900 — 19,900 — 599,692 Total CRE 14,735,994 22,093 — 22,093 50,214 14,808,301 Total commercial 28,224,064 31,086 724 31,810 184,153 28,440,027 Consumer: Residential mortgage: Single-family residential 8,156,645 9,911 2,583 12,494 16,814 8,185,953 HELOCs 1,583,968 2,922 3,130 6,052 11,696 1,601,716 Total residential mortgage 9,740,613 12,833 5,713 18,546 28,510 9,787,669 Other consumer 160,534 217 17 234 2,491 163,259 Total consumer 9,901,147 13,050 5,730 18,780 31,001 9,950,928 Total $ 38,125,211 $ 44,136 $ 6,454 $ 50,590 $ 215,154 $ 38,390,955 (1) As of June 30, 2021 and December 31, 2020, loans in payment deferral programs offered in response to the COVID-19 pandemic that are performing according to their modified terms are generally not considered delinquent, and are included in the “Current Accruing Loans” column. The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both June 30, 2021 and December 31, 2020. Nonaccrual loans may not have an allowance for credit losses if the loss expectation is zero because the loan balances are supported by the collateral value. ($ in thousands) June 30, 2021 December 31, 2020 Commercial: C&I $ 44,110 $ 62,040 CRE: CRE 58,346 45,537 Multifamily residential 2,428 2,519 Construction and land 19,900 — Total CRE 80,674 48,056 Total commercial 124,784 110,096 Consumer: Residential mortgage: Single-family residential 8,702 6,013 HELOCs 6,871 8,076 Total residential mortgage 15,573 14,089 Other consumer — 2,491 Total consumer 15,573 16,580 Total nonaccrual loans with no related allowance for loan losses $ 140,357 $ 126,676 Foreclosed Assets Foreclosed assets, consisting of OREO and other nonperforming assets, are included in Other assets on the Consolidated Balance Sheet. The Company had $27.9 million in foreclosed assets as of June 30, 2021, compared with $19.7 million as of December 31, 2020. The Company commences the foreclosure process on consumer mortgage loans after a borrower becomes more than 120 days delinquent in accordance with the Consumer Financial Protection Bureau guidelines. The carrying value of consumer real estate loans that were in the process of active or suspended foreclosure was $18.2 million and $4.1 million as of June 30, 2021 and December 31, 2020, respectively. The Company suspended certain mortgage foreclosure activities in connection with our actions to support our customers during the COVID-19 pandemic. In addition, certain other foreclosures are waiting the end of government-mandated foreclosure moratoriums in certain states. Troubled Debt Restructurings Troubled debt restructurings (“TDRs”) are individually evaluated, and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered. Since March 2020, the Company has implemented various commercial and consumer loan modification programs to provide its borrowers relief from the economic impacts of the COVID-19 pandemic. These COVID-related modifications are generally not classified as TDRs due to the relief under the Coronavirus Aid, Relief, and Economic Security Act, as amended by the Consolidated Appropriations Act, 2021, and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised), and therefore are not included in the discussion below. Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those borrowers who would have otherwise moved into past due or nonaccrual status. See Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. The following tables present the additions to TDRs for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Loans Modified as TDRs During the Three Months Ended June 30, 2021 2020 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 4 $ 20,375 $ 20,084 $ 2,162 3 $ 35,260 $ 28,926 $ 872 Total 4 $ 20,375 $ 20,084 $ 2,162 3 $ 35,260 $ 28,926 $ 872 ($ in thousands) Loans Modified as TDRs During the Six Months Ended June 30, 2021 2020 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 5 $ 20,818 $ 20,499 $ 2,318 6 $ 51,708 $ 43,833 $ 1,000 Total 5 $ 20,818 $ 20,499 $ 2,318 6 $ 51,708 $ 43,833 $ 1,000 (1) Includes subsequent payments after modification and reflects the balance as of June 30, 2021 and 2020. (2) Includes charge-offs and specific reserves recorded since the modification date. The following tables present the TDR post-modification outstanding balances for the three and six months ended June 30, 2021 and 2020 by modification type: ($ in thousands) Modification Type During the Three Months Ended June 30, 2021 2020 Principal (1) Principal Interest Interest Rate Reduction Total Principal (1) Principal Interest Interest Rate Reduction Total Commercial: C&I $ 3,373 $ — $ — $ 16,711 $ 20,084 $ 11,766 $ — $ 17,160 $ — $ 28,926 Total $ 3,373 $ — $ — $ 16,711 $ 20,084 $ 11,766 $ — $ 17,160 $ — $ 28,926 ($ in thousands) Modification Type During the Six Months Ended June 30, 2021 2020 Principal (1) Principal Interest Interest Rate Reduction Total Principal (1) Principal and Interest (2) Interest Interest Rate Reduction Total Commercial: C&I $ 3,788 $ — $ — $ 16,711 $ 20,499 $ 15,898 $ 10,775 $ 17,160 $ — $ 43,833 Total $ 3,788 $ — $ — $ 16,711 $ 20,499 $ 15,898 $ 10,775 $ 17,160 $ — $ 43,833 (1) Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only. (2) Includes principal and interest deferments or reductions. After a loan is modified as TDR, the Company continues to monitor its performance under its most recent restructured terms. A TDR may become delinquent and result in payment default (generally 90 days past due) subsequent to restructuring. The following tables present information on loans for which a subsequent payment default occurred during the three and six months ended June 30, 2021 and 2020, respectively, which had been modified as TDR within the previous 12 months of their default, and which were still in default as of June 30, 2021 and 2020. ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2021 2020 Number of Recorded Number of Recorded Commercial: C&I — $ — 1 $ 17,160 Total — $ — 1 $ 17,160 ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2021 2020 Number of Recorded Number of Recorded Commercial: C&I 1 $ 11,431 1 $ 17,160 Total 1 $ 11,431 1 $ 17,160 The amount of additional funds committed to lend to borrowers whose terms have been modified as TDRs was $10.2 million and $3.0 million as of June 30, 2021 and December 31, 2020, respectively. Allowance for Credit Losses The Company has an allowance framework under ASU 2016-13 for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses inherent in the Company’s relevant financial assets. The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense. The process of the allowance for credit losses involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures share risk characteristics with other similar exposures, and as a result are collectively evaluated. The collectively evaluated loans cover performing risk-rated loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis. The individually assessed loans cover loans modified in a TDR and collateral-dependent loans, as well as, risk-rated loans that have been placed on nonaccrual status. Allowance for Collectively Evaluated Loans The allowance for collectively evaluated loans consists of a quantitative component that assesses many different risk factors that we consider in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below. Quantitative Component — The allowance for loan losses is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios applied over the forecasted life of the loans. The forward-looking information is limited to the reasonable and supportable period. These macroeconomic scenarios include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted multiple scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, and downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the loans’ lives extend beyond the reasonable and supportable forecast period, then historical experience, or long-run macroeconomic trends, are considered over the remaining lives of the loans to estimate allowance for loan losses. Qualitative Component — The Company also considers the following qualitative factors in the determination of the collectively evaluated allowance, if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to: • Loan growth trends; • The volume and severity of past due financial assets, and the volume and severity of adversely classified financial assets; • The Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices; • Knowledge of a borrower’s operations; • The quality of the Company’s credit review system; • The experience, ability and depth of the Company’s management, lending associates and other relevant associates; • The effect of other external factors such as the regulatory and legal environments and changes in technology; • Actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and • Risk factors in certain industry sectors not captured by the quantitative models. The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period. For both the three and six months ended June 30, 2021 and 2020, there were no changes to the reasonable and supportable forecast period and reversion to historical loss experience method. The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment: Portfolio Segment Risk Characteristics Macroeconomic Variables C&I Internal risk rating, size and credit spread at origination, and time to maturity Unemployment rate, and two- and ten-year U.S. Treasury spread CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, GDP, and U.S. Treasury rates Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and home price index Other consumer Historical loss experience Immaterial (1) (1) Macroeconomic variables are included in the qualitative estimate. Allowance for Loan Losses for the Commercial Loan Portfolio — The Company’s C&I loan lifetime loss rate model estimates credit losses by estimating a loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. For CRE, multifamily residential, and construction and land loans, projected probability of defaults (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. After the reasonable and supportable period, the forecast of future economic conditions returns to long-run historical economic trends. In order to estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Allowance for Loan Losses for the Consumer Loan Portfolio — For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. After the reasonable and supportable period, the forecast of future economic conditions returns to long-run historical economic trends. For other consumer loans, the Company uses a loss rate approach. In order to estimate the life of a loan for the consumer portfolio, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Qualitative Allowance for Collectively Evaluated Loans — While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk. Allowance for Individually Evaluated Loans When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual or TDR loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; and (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan. Collateral-Dependent Loans — When a loan is collateral-dependent, the allowance is measured on an individual loan basis and is limited to the difference between the recorded value and fair value of the collateral less cost of disposal or sale. As of June 30, 2021, collateral-dependent commercial and consumer loans totaled $107.2 million and $18.8 million, respectively. In comparison, collateral-dependent commercial and consumer loans totaled $97.2 million and $17.3 million as of December 31, 2020, respectively. The Company's commercial collateral-dependent loans were secured by real estate or other collateral. The Company's consumer collateral-dependent loans were all residential mortgage loans, secured by the underlying real estate. As of both June 30, 2021 and December 31, 2020 , the collateral value of the properties securing each of these collateral-dependent loans, net of selling costs, exceeded the recorded value of the individual loans. The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 394,084 $ 146,399 $ 27,407 $ 19,089 $ 15,839 $ 2,670 $ 2,018 $ 607,506 (Reversal of) provision for credit losses on loans (a) (22,586) 19,375 (5,385) (3,243) 609 250 2,209 (8,771) Gross charge-offs (10,572) (4,134) (113) (209) — — (32) (15,060) Gross recoveries 1,338 322 16 6 82 18 3 1,785 Total net (charge-offs) recoveries (9,234) (3,812) (97) (203) 82 18 (29) (13,275) Foreign currency translation adjustment 264 — — — — — — 264 Allowance for loan losses, end of period $ 362,528 $ 161,962 $ 21,925 $ 15,643 $ 16,530 $ 2,938 $ 4,198 $ 585,724 ($ in thousands) Three Months Ended June 30, 2020 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 362,629 $ 132,819 $ 16,530 $ 11,018 $ 26,822 $ 3,881 $ 3,304 $ 557,003 Provision for (reversal of) credit losses on loans (a) 37,862 43,315 7,908 7,526 (1,667) 205 (849) 94,300 Gross charge-offs (20,378) (320) — — — (221) (30) (20,949) Gross recoveries 602 226 620 7 159 2 93 1,709 Total net (charge-offs) recoveries (19,776) (94) 620 7 159 (219) 63 (19,240) Foreign currency translation adjustment 8 — — — — — — 8 Allowance for loan losses, end of period $ 380,723 $ 176,040 $ 25,058 $ 18,551 $ 25,314 $ 3,867 $ 2,518 $ 632,071 ($ in thousands) Six Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 398,040 $ 163,791 $ 27,573 $ 10,239 $ 15,520 $ 2,690 $ 2,130 $ 619,983 (Reversal of) provision for credit losses on loans (a) (18,747) 9,098 (6,776) 5,349 985 272 2,096 (7,723) Gross charge-offs (19,008) (11,329) (130) (280) (134) (45) (33) (30,959) Gross recoveries 2,098 402 1,258 335 159 21 5 4,278 Total net (charge-offs) recoveries (16,910) (10,927) 1,128 55 25 (24) (28) (26,681) Foreign currency translation adjustment 145 — — — — — — 145 Allowance for loan losses, end of |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities | 6 Months Ended |
Jun. 30, 2021 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [Abstract] | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities | Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities The CRA encourages banks to meet the credit needs of their communities, particularly low- and moderate-income individuals and neighborhoods. The Company invests in certain affordable housing projects in the form of ownership interests in limited partnerships or limited liability companies that qualify for CRA consideration and tax credits. These entities are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. To fully utilize the available tax credits, each of these entities must meet the regulatory affordable housing requirements for a minimum 15-year compliance period. In addition to affordable housing projects, the Company also invests in small business investment companies and new market tax credit projects that qualify for CRA consideration, as well as eligible projects that qualify for renewable energy and historic tax credits. Investments in renewable energy tax credits help promote the development of renewable energy sources, and the investments in historic tax credits promote the rehabilitation of historic buildings and economic revitalization of the surrounding areas. Investments in Qualified Affordable Housing Partnerships, Net The Company records its investments in qualified affordable housing partnerships, net, using the proportional amortization method. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the amortization in Income tax expense on the Consolidated Statement of Income. The following table presents the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Investments in qualified affordable housing partnerships, net $ 287,432 $ 213,555 Accrued expenses and other liabilities — Unfunded commitments $ 136,571 $ 77,444 The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Tax credits and other tax benefits recognized $ 10,052 $ 11,772 $ 21,080 $ 22,803 Amortization expense included in income tax expense $ 7,736 $ 9,148 $ 16,448 $ 17,532 Investments in Tax Credit and Other Investments, Net Depending on the ownership percentage and the influence the Company has on the investments in tax credit and other investments, net, the Company applies the equity or cost method of accounting, or the measurement alternative as elected under ASU 2016-01 for equity investments without readily determinable fair value. The following table presents the Company’s investments in tax credit and other investments, net, and related unfunded commitments as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Investments in tax credit and other investments, net $ 364,187 $ 266,525 Accrued expenses and other liabilities — Unfunded commitments $ 195,631 $ 105,282 Amortization of tax credit and other investments totaled $27.3 million and $52.6 million, respectively, for the three and six months ended June 30, 2021, as compared with $21.8 million and $40.6 million, respectively, for the same periods in 2020. The Company held equity securities that are mutual funds with readily determinable fair values of $26.8 million and $31.3 million, as of June 30, 2021 and December 31, 2020, respectively. The Company invested in these mutual funds for CRA purposes. These equity securities were measured at fair value with changes in fair value recorded in net income. The Company recorded unrealized gains of $69 thousand and $720 thousand related to these equity securities for the three months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded unrealized losses of $428 thousand and unrealized gains of $758 thousand, respectively. Equity securities with readily determinable fair value were included in Investments in tax credit and other investments, net on the Consolidated Balance Sheet. The Company held equity securities without readily determinable fair values totaling $29.3 million and $23.7 million as of June 30, 2021 and December 31, 2020, respectively, which were measured using the measurement alternative at cost less impairment and adjusted for observable price changes. For the three and six months ended June 30, 2021 and 2020, there were no adjustments made to these securities. Equity securities without readily determinable fair values were included in Investments in tax credit and other investments, net and Other assets on the Consolidated Balance Sheet. Tax credit investments are evaluated for possible OTTI on an annual basis or when events or changes in circumstances suggest that the carrying amount of the tax credit investments may not be realizable. OTTI charges and impairment recoveries are recorded within Amortization of tax credit and other investments on the Consolidated Statement of Income. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements in this Form 10-Q for a discussion on the Company’s impairment evaluation and monitoring process of tax credit investments. For the three months ended June 30, 2021, the Company recorded impairment recoveries of $877 thousand related to two energy tax credit investments. For the six months ended June 30, 2021, the Company recorded $1.3 million of impairment recoveries related to one historic tax credit and two energy tax credits. In comparison, the Company recorded an impairment recovery of $109 thousand related to one historic tax credit investment for the three months ended June 30, 2020, and impairment recoveries of $259 thousand related to two historic tax credit investments for the six months ended June 30, 2020. No OTTI charges were recorded during the three and six months ended June 30, 2021. In comparison, the Company recorded a $733 thousand OTTI charge related to one historic tax credit and one CRA investment during the three and six months ended June 30, 2020. Variable Interest Entities The Company invests in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, historic rehabilitation, and wind and solar energy projects, of which the majority of such investments are variable interest entities (“VIEs”). As a limited partner in these partnerships, these investments are designed to generate a return primarily through the realization of federal tax credits and tax benefits. An unrelated third party is typically the general partner or managing member who has control over the significant activities of such investments. While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these structures due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity. The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Total goodwill was $465.7 million as of both June 30, 2021 and December 31, 2020. The Company’s annual goodwill impairment testing is performed as of December 31 of each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Goodwill and Other Intangible Assets to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. The Company completed its annual goodwill impairment testing as of December 31, 2020, and determined there was no goodwill impairment. As of June 30, 2021, the Company reviewed the macroeconomic conditions, including the impacts of the COVID-19 pandemic on its business performance and market capitalization, and concluded that goodwill was not impaired. Core Deposit Intangibles The following table presents the gross carrying amount of core deposit intangible assets and accumulated amortization as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Gross balance (1) $ 86,099 $ 86,099 Accumulated amortization (1) (81,164) (79,722) Net carrying balance (1) $ 4,935 $ 6,377 (1) Excludes fully amortized core deposit intangible assets. There were no impairment write-downs on core deposit intangibles during the three and six months ended June 30, 2021 and 2020. Amortization Expense The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the core deposit intangible assets was $710 thousand and $931 thousand for the three months ended June 30, 2021 and 2020, respectively, and $1.4 million and $1.9 million for the six months ended June 30, 2021 and 2020, respectively. The following table presents the estimated future amortization expense of core deposit intangibles as of June 30, 2021: ($ in thousands) Amount Remainder of 2021 $ 1,308 2022 1,864 2023 1,199 2024 553 2025 11 Total $ 4,935 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments to Extend Credit — In the normal course of business, the Company provides customers with loan commitments on predetermined terms. These outstanding commitments to extend credit are not reflected in the accompanying Consolidated Financial Statements. While the Company does not anticipate losses as a result of these transactions, commitments to extend credit are included in determining the appropriate level of the allowance for unfunded credit commitments, and outstanding commercial and standby letters of credit (“SBLCs”). The following table presents the Company’s credit-related commitments as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Expire After Five Years Total Total Loan commitments $ 3,051,435 $ 2,044,785 $ 621,980 $ 170,089 $ 5,888,289 $ 5,690,847 Commercial letters of credit and SBLCs 1,195,372 351,903 170,148 535,953 2,253,376 2,240,813 Total $ 4,246,807 $ 2,396,688 $ 792,128 $ 706,042 $ 8,141,665 $ 7,931,660 Loan commitments are agreements to lend to customers provided there are no violations of any conditions established in the agreement. Commitments generally have fixed expiration dates or other termination clauses and may require maintenance of compensatory balances. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future funding requirements. Commercial letters of credit are issued to facilitate domestic and foreign trade transactions, while SBLCs are generally contingent upon the failure of the customers to perform according to the terms of the underlying contract with the third party. As a result, the total contractual amounts do not necessarily represent future funding requirements. The Company’s historical experience is that SBLCs typically expire without being funded. Additionally, in many cases, the Company holds collateral in various forms against these SBLCs. As part of its risk management activities, the Company monitors the creditworthiness of customers in conjunction with its SBLC exposure. Customers are obligated to reimburse the Company for any payment made on the customers’ behalf. If the customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset existing accounts. As of June 30, 2021, total letters of credit of $2.25 billion consisted of SBLCs of $2.17 billion and commercial letters of credit of $87.4 million. As of December 31, 2020, total letters of credit of $2.24 billion consisted of SBLCs of $2.12 billion and commercial letters of credit of $124.9 million. As of both June 30, 2021 and December 31, 2020, substantially all SBLCs were rated as “Pass” by the Bank’s internal credit risk rating system. The Company applies the same credit underwriting criteria to extend loans, commitments and conditional obligations to customers. Each customer’s creditworthiness is evaluated on a case-by-case basis. Collateral and financial guarantees may be obtained based on management’s assessment of a customer’s credit risk. Collateral may include cash, accounts receivable, inventory, property, plant and equipment, and income-producing commercial property. Estimated exposure to loss from these commitments is included in the allowance for unfunded credit commitments and amounted to $26.2 million and $33.5 million as of June 30, 2021 and December 31, 2020, respectively. Guarantees — From time to time, the Company sells or securitizes single-family and multifamily residential loans with recourse in the ordinary course of business. The Company is obligated to repurchase up to the recourse percentage of the loans if the loans default. The following table presents the carrying amounts of loans sold or securitized with recourse and the maximum potential future payments as of June 30, 2021 and December 31, 2020: Maximum Potential Future Payments Carrying Value June 30, 2021 December 31, 2020 June 30, December 31, 2020 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 41 $ 396 $ 208 $ 8,766 $ 9,411 $ 10,526 $ 9,411 $ 10,526 Multi-family residential loans sold or securitized with recourse — 193 — 14,996 15,189 15,672 24,562 26,619 Total $ 41 $ 589 $ 208 $ 23,762 $ 24,600 $ 26,198 $ 33,973 $ 37,145 The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit commitments and totaled $68 thousand and $88 thousand as of June 30, 2021 and December 31, 2020, respectively. The allowance for unfunded credit commitments is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The Company continues to experience minimal losses from the single-family and multifamily residential loan portfolios sold or securitized with recourse. Litigation — The Company is a party to various legal actions arising in the ordinary course of its business. In accordance with ASC 450, Contingencies, the Company accrues reserves for outstanding lawsuits, claims and proceedings when a loss contingency is probable and can be reasonably estimated. The Company estimates the amount of loss contingencies using current available information from legal proceedings, advice from legal counsel and available insurance coverage. Due to the inherent subjectivity of the assessments and unpredictability of the outcomes of the legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company’s exposure and ultimate losses may be higher, and possibly significantly more, than the amounts accrued. Other Commitments — The Company has commitments to invest in qualified affordable housing partnerships, tax credit and other investments as discussed in Note 8 — Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities to the Consolidated Financial Statements in this Form 10-Q. As of June 30, 2021 and December 31, 2020, these commitments were $332.2 million and $182.7 million, respectively. These commitments are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
Stock Compensation Plans
Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Compensation Plans | Stock Compensation PlansPursuant to the Company’s 2016 Stock Incentive Plan, as amended, the Company may issue stocks, stock options, restricted stock, restricted stock units (“RSUs”), stock purchase warrants, stock appreciation rights, phantom stock and dividend equivalents to eligible employees, non-employee directors, consultants, and other service providers of the Company and its subsidiaries. The Company has granted RSUs as its primary incentive awards. Stock options have not been issued since 2011 and no stock options were outstanding as of both June 30, 2021 and December 31, 2020. The following table presents a summary of the total share-based compensation expense and the related net tax benefits (deficiencies) associated with the Company’s various employee share-based compensation plans for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock compensation costs $ 8,208 $ 7,071 $ 16,025 $ 14,280 Related net tax benefits (deficiencies) for stock compensation plans $ 37 $ (9) $ 1,657 $ (1,575) Restricted Stock Units — RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSUs generally cliff vest after three years of continued employment from the date of the grant, and are authorized to settle predominantly in shares of the Company’s common stock. Certain RSUs are settled in cash. Dividends are accrued during the vesting period and paid at the time of vesting. While a portion of RSUs are time-based vesting awards, others vest subject to the attainment of specified performance goals, referred to as “performance-based RSUs.” Performance-based RSUs are granted annually upon approval by the Company’s Compensation Committee based on the performance in the year prior to the grant date of the award. The number of awards that vest can range from zero to a maximum of 200% of the granted number of awards based on the Company’s achievement of specified performance criteria over a performance period of three years. Compensation costs are calculated using the quoted market price of the Company’s common stock at the grant date. Compensation costs for certain time-based awards that will be settled in cash are adjusted to fair value based on changes in the share price of the Company’s common stock up to the settlement date. For performance-based RSUs, the compensation costs are based on grant date fair value which considers both performance and market conditions, and is subject to subsequent adjustments based on the Company’s outcome in meeting the performance criteria at the end of the performance period. Compensation costs of both time-based and performance-based awards are estimated based on awards ultimately expected to vest, and are recognized net of estimated forfeitures on a straight-line basis from the grant date until the vesting date of each grant. For accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements of the Company’s 2020 Form 10-K for additional information. The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that will be settled in shares for the six months ended June 30, 2021. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date. Time-Based RSUs Performance-Based RSUs Shares Weighted-Average Shares Weighted-Average Outstanding, January 1, 2021 1,345,635 $ 50.22 398,057 $ 53.66 Granted 382,359 71.41 91,960 77.67 Vested (285,513) 67.26 (120,286) 70.13 Forfeited (65,648) 56.26 — — Outstanding, June 30, 2021 1,376,833 $ 52.28 369,731 $ 54.28 The following table presents a summary of the activities for the Company’s time-based RSUs that will be vested in cash for the six months ended June 30, 2021: Shares Outstanding, January 1, 2021 21,802 Granted 15,803 Vested — Forfeited (8,432) Outstanding, June 30, 2021 29,173 |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings Per Share | Stockholders’ Equity and Earnings Per Share The following table presents the basic and diluted EPS calculations for the three and six months ended June 30, 2021 and 2020. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. ($ and shares in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic: Net income $ 224,742 $ 99,352 $ 429,736 $ 244,176 Basic weighted-average number of shares outstanding 141,868 141,486 141,758 143,150 Basic EPS $ 1.58 $ 0.70 $ 3.03 $ 1.71 Diluted: Net income $ 224,742 $ 99,352 $ 429,736 $ 244,176 Basic weighted-average number of shares outstanding 141,868 141,486 141,758 143,150 Diluted potential common shares (1) 1,172 341 1,205 410 Diluted weighted-average number of shares outstanding (1) 143,040 141,827 142,963 143,560 Diluted EPS $ 1.57 $ 0.70 $ 3.01 $ 1.70 (1) Includes dilutive shares from RSUs for the three and six months ended June 30, 2021 and 2020. For the three and six months ended June 30, 2021, two thousand and four thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation. In comparison, 1.2 million and 620 thousand weighted-average shares of anti-dilutive RSUs, respectively, were excluded from the diluted EPS computation for the three and six months ended June 30, 2020. Stock Repurchase Program — In 2020, the Company’s Board of Directors authorized a stock repurchase program to buy back up to $500.0 million of the Company’s common stock, and the Company repurchased 4,471,682 shares at an average price of $32.64 per share, for a total cost of $146.0 million. The Company did not repurchase any shares during the three and six months ended June 30, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the changes in the components of AOCI balances for the three and six months ended June 30, 2021 and 2020: ($ in thousands) AFS Cash Foreign Currency Translation Adjustments (1) Total Balance, April 1, 2020 $ 25,034 $ — $ (18,153) $ 6,881 Net unrealized gains (losses) arising during the period 24,606 (1,063) (230) 23,313 Amounts reclassified from AOCI (6,790) (270) — (7,060) Changes, net of tax 17,816 (1,333) (230) 16,253 Balance, June 30, 2020 $ 42,850 $ (1,333) $ (18,383) $ 23,134 Balance, April 1, 2021 $ (81,201) $ (798) $ (8,041) $ (90,040) Net unrealized gains (losses) arising during the period 73,494 (76) 2,234 75,652 Amounts reclassified from AOCI (445) 144 — (301) Changes, net of tax 73,049 68 2,234 75,351 Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) ($ in thousands) AFS Cash Foreign Currency Translation Adjustments (1) Total Balance, January 1, 2020 $ (2,419) $ — $ (15,989) $ (18,408) Net unrealized gains (losses) arising during the period 53,136 (1,063) (2,394) 49,679 Amounts reclassified from AOCI (7,867) (270) — (8,137) Changes, net of tax 45,269 (1,333) (2,394) 41,542 Balance, June 30, 2020 $ 42,850 $ (1,333) $ (18,383) $ 23,134 Balance, January 1, 2021 $ 52,247 $ (1,230) $ (6,692) $ 44,325 Net unrealized (losses) gains arising during the period (59,819) 229 885 (58,705) Amounts reclassified from AOCI (580) 271 — (309) Changes, net of tax (60,399) 500 885 (59,014) Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) (1) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively. The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, 2021 2020 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax AFS debt securities: Net unrealized gains arising during the period $ 104,283 $ (30,789) $ 73,494 $ 34,970 $ (10,364) $ 24,606 Net realized (gains) reclassified into net income (1) (632) 187 (445) (9,640) 2,850 (6,790) Net change 103,651 (30,602) 73,049 25,330 (7,514) 17,816 Cash flow hedges: Net unrealized losses arising during the period (106) 30 (76) (1,483) 420 (1,063) Net realized losses (gains) reclassified into net income (2) 201 (57) 144 (377) 107 (270) Net change 95 (27) 68 (1,860) 527 (1,333) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 1,584 650 2,234 (379) 149 (230) Net change 1,584 650 2,234 (379) 149 (230) Other comprehensive income $ 105,330 $ (29,979) $ 75,351 $ 23,091 $ (6,838) $ 16,253 ($ in thousands) Six Months Ended June 30, 2021 2020 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax AFS debt securities: Net unrealized (losses) gains arising during the period $ (84,993) $ 25,174 $ (59,819) $ 75,463 $ (22,327) $ 53,136 Net realized (gains) reclassified into net income (1) (824) 244 (580) (11,169) 3,302 (7,867) Net change (85,817) 25,418 (60,399) 64,294 (19,025) 45,269 Cash flow hedges: Net unrealized gains (losses) arising during the period 320 (91) $ 229 (1,483) 420 (1,063) Net realized losses (gains) reclassified into net income (2) 378 (107) 271 (377) 107 (270) Net change 698 (198) 500 (1,860) 527 (1,333) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 275 610 885 (2,145) (249) (2,394) Net change 275 610 885 (2,145) (249) (2,394) Other comprehensive (loss) income $ (84,844) $ 25,830 $ (59,014) $ 60,289 $ (18,747) $ 41,542 (1) For the three and six months ended June 30, 2021 and 2020, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income. (2) For the three and six months ended June 30, 2021 and 2020, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company organizes its operations into three reportable operating segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Other. These segments are defined by the type of customers served, and the related products and services provided. The segments reflect how financial information is currently evaluated by management. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain balance sheet and income statement items. The information presented is not indicative of how the segments would perform if they operated as independent entities due to the interrelationships among the segments. The Consumer and Business Banking segment primarily provides financial products and services to consumer and commercial customers through the Company’s domestic branch network. This segment offers consumer and commercial deposits, mortgage and home equity loans, and other products and services. It also originates commercial loans for small- and medium-sized enterprises through the Company’s branch network. Other products and services provided by this segment include wealth management, treasury management and foreign exchange services. The Commercial Banking segment primarily generates commercial loans and deposits. Commercial loan products include commercial business loans and lines of credit, trade finance loans and letters of credit, CRE loans, construction and land loans, affordable housing loans and letters of credit, asset-based lending and equipment financing. Commercial deposit products and other financial services include treasury management, foreign exchange services and interest rate and commodity risk hedging. The remaining centralized functions, including the corporate treasury activities of the Company and eliminations of inter-segment amounts, have been aggregated and included in the Other segment, which provides broad administrative support to the two core segments, namely the Consumer and Business Banking and the Commercial Banking segments. The Company utilizes an internal reporting process to measure the performance of the three operating segments within the Company. The internal reporting process derives operating segment results by utilizing allocation methodologies for revenues and expenses. Net interest income of each segment represents the difference between actual interest earned on assets and interest incurred on liabilities of the segment, adjusted for funding charges or credits through the Company’s internal funds transfer pricing (“FTP”) process. Noninterest income and noninterest expense directly attributable to a business segment are assigned to that segment. Indirect costs, including technology-related costs and corporate overhead, are allocated based on a segment’s estimated usage using factors including but not limited to, full-time equivalent employees, net interest income, and loan and deposit volume. Charge-offs are recorded to the segment directly associated with the respective loans charged off, and provision for credit losses is recorded to the segments based on the related loans for which allowances are evaluated. The Company’s internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate and indirect expenses incurred by the Other segment are allocated to the Consumer and Business Banking and the Commercial Banking segments, except certain corporate treasury-related expenses and insignificant unallocated expenses. The corporate treasury function within the Other segment is responsible for the Company’s liquidity and interest rate management. The Company’s internal FTP process is also managed by the corporate treasury function within the Other segment. The process is formulated with the goal of encouraging loan and deposit growth that is consistent with the Company’s overall profitability objectives, as well as to provide a reasonable and consistent basis for the measurement of its business segments’ net interest margins and profitability. The FTP process charges a cost to fund loans (“FTP charges for loans”) and allocates credits for funds provided from deposits (“FTP credits for deposits”) using internal FTP rates. FTP charges for loans are determined based on a matched cost of funds, which is tied to the pricing and term characteristics of the loans. FTP credits for deposits are based on matched funding credit rates, which are tied to the implied or stated maturity of the deposits. FTP credits for deposits reflect the long-term value generated by the deposits. The net spread between the total internal FTP charges and credits is recorded as part of net interest income in the Other segment. The FTP process transfers the corporate interest rate risk exposure to the treasury function within the Other segment, where such exposures are centrally managed. The Company’s internal FTP assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions. The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2021 Net interest income before provision for (reversal of) credit losses $ 173,775 $ 192,696 $ 10,002 $ 376,473 Provision for (reversal of) credit losses 2,358 (17,358) — (15,000) Noninterest income 24,454 32,552 11,425 68,431 Noninterest expense 87,650 64,164 37,709 189,523 Segment income (loss) before income taxes 108,221 178,442 (16,282) 270,381 Segment net income $ 77,517 $ 127,785 $ 19,440 $ 224,742 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2020 Net interest income before provision for credit losses $ 124,926 $ 183,796 $ 35,053 $ 343,775 Provision for credit losses 5,590 96,853 — 102,443 Noninterest income 13,943 33,887 7,877 55,707 Noninterest expense 80,164 64,900 39,702 184,766 Segment income before income taxes 53,115 55,930 3,228 112,273 Segment net income $ 38,058 $ 40,178 $ 21,116 $ 99,352 As of June 30, 2020 Segment assets $ 12,666,938 $ 26,984,013 $ 9,756,642 $ 49,407,593 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2021 Net interest income before reversal of credit losses $ 323,674 $ 369,788 $ 36,706 $ 730,168 Reversal of credit losses (1,891) (13,109) — (15,000) Noninterest income 45,282 82,562 13,453 141,297 Noninterest expense 176,936 133,421 70,243 380,600 Segment income (loss) before income taxes 193,911 332,038 (20,084) 505,865 Segment net income $ 138,895 $ 237,865 $ 52,976 $ 429,736 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2020 Net interest income before provision for credit losses $ 277,517 $ 367,297 $ 61,668 $ 706,482 Provision for credit losses 13,378 162,935 — 176,313 Noninterest income 30,345 66,343 14,525 111,213 Noninterest expense 167,128 135,026 62,945 365,099 Segment income before income taxes 127,356 135,679 13,248 276,283 Segment net income $ 91,253 $ 97,309 $ 55,614 $ 244,176 As of June 30, 2020 Segment assets $ 12,666,938 $ 26,984,013 $ 9,756,642 $ 49,407,593 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn July 22, 2021, the Company’s Board of Directors declared third quarter 2021 cash dividends for the Company’s common stock. The common stock cash dividend of $0.33 per share is payable on August 16, 2021 to stockholders of record as of August 2, 2021. |
Current Accounting Developmen_2
Current Accounting Developments (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | East West Bancorp, Inc. (referred to herein on an unconsolidated basis as “East West” and on a consolidated basis as the “Company”) is a registered bank holding company that offers a full range of banking services to individuals and businesses through its subsidiary bank, East West Bank and its subsidiaries (“East West Bank” or the “Bank”). The unaudited interim Consolidated Financial Statements in this Quarterly Report on Form 10-Q (“this Form 10-Q”) include the accounts of East West, East West Bank and East West’s subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. As of June 30, 2021, East West also has six wholly-owned subsidiaries that are statutory business trusts (the “Trusts”). In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation , the Trusts are not included on the Consolidated Financial Statements. |
Basis of Presentation | The unaudited interim Consolidated Financial Statements are presented in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. They reflect all adjustments that, in the opinion of management, are necessary for fair presentation of the interim Consolidated Financial Statements. Certain items on the Consolidated Financial Statements and notes for the prior periods have been reclassified to conform to the current period presentation. |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted Standard Required Date of Adoption Description Effect on Financial Statements Standards Adopted in 2021 ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequent related ASU 2021-01, Reference Rate Reform (Topic 848): Scope Effective for all entities from the dates of issuance through December 31, 2022. In March 2020, the FASB issued an ASU related to contracts or hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other reference rates that are expected to be discontinued due to reference rate reform. This ASU provides temporary optional expedients and exceptions regarding the accounting requirements related to the modification of certain contracts, hedging relationships and other transactions that are affected by the reference rate reform. The guidance permits the Company to make a one-time election to sell and/or transfer qualifying held-to-maturity securities, and not to apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationships and the assessment of hedge effectiveness during the transition period. This one-time election may be made at any time after March 12, 2020, but no later than December 31, 2022. In January 2021, the FASB issued ASU 2021-01 as subsequent amendments, which expanded the scope of Topic 848 to include all affected derivatives and clarified certain optional expedients and exceptions regarding the hedge accounting for derivative contracts affected by the discounting transition. The amendments of this guidance could be elected retrospectively or prospectively to new modifications made on or after the date of issuance of this ASU, January 7, 2021. The Company adopted this guidance on a prospective basis in January 2021. At the time of adoption, the guidance did not have a material impact on the Company’s Consolidated Financial Statements. The Company will continue to track the exposure as of each reporting period and to assess the impact as the reference rate transition occurs through the cessation of LIBOR. ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2021 Early adoption is permitted on January 1, 2020. This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance. This includes removing exceptions to: 1) the incremental approach for intraperiod tax allocation, 2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) the ability not to recognize a deferred tax liability when a foreign equity method investment becomes a subsidiary, and 4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, this ASU simplifies the accounting for income taxes related to franchise taxes, the tax basis of goodwill and the method for recognizing an enacted change in tax laws. This ASU also specifies that an entity is not required to allocate the consolidated amount of tax expense to a legal entity that is not subject to tax in its separate financial statements. This ASU also makes improvements in the accounting for income taxes related to employee stock ownership plans and equity method investments in qualified affordable housing projects. This guidance should be applied on either a retrospective, modified retrospective or prospective basis depending on the amendments. The Company adopted this guidance in January 2021 using the transition guidance prescribed by this ASU. At the time of adoption, this guidance did not have a material impact on the Company’s Consolidated Financial Statements. |
Fair Value Determination | Fair Value Determination Fair value is defined as the price that would be received to sell an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining the fair value of financial instruments, the Company uses various methods including market and income approaches. Based on these approaches, the Company utilizes certain assumptions that market participants would use in pricing an asset or a liability. These inputs can be readily observable, market corroborated or generally unobservable. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy described below is based on the quality and reliability of the information used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets and the lowest priority to prices derived from data lacking transparency. The fair value of the Company’s assets and liabilities is classified and disclosed in one of the following three categories: • Level 1 — Valuation is based on quoted prices for identical instruments traded in active markets. • Level 2 — Valuation is based on quoted prices for similar instruments traded in active markets; quoted prices for identical or similar instruments traded in markets that are not active; and model-derived valuations whose inputs are observable and can be corroborated by market data. • Level 3 — Valuation is based on significant unobservable inputs for determining the fair value of assets or liabilities. These significant unobservable inputs reflect assumptions that market participants may use in pricing the assets or liabilities. The classification of assets and liabilities within the hierarchy is based on whether inputs to the valuation methodology used are observable or unobservable, and the significance of those inputs in the fair value measurement. The Company’s assets and liabilities are classified in their entirety based on the lowest level of input that is significant to their fair value measurements. |
Balance Sheet Offsetting | The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that, in the event of default by the counterparty, provide the Company the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting : Repurchase and Reverse Repurchase Agreements |
Cash Flow Hedges | For cash flow hedges, the entire change in the fair value of the hedging instruments is recognized in AOCI and reclassified to earnings in the same period when the hedged cash flows impact earnings. Reclassified gains and losses on interest rate swaps are recorded in the same line item as the interest payments of the hedged long-term borrowings within Interest expense in the Consolidated Statements of Income. |
Credit Quality Indicators | Credit Quality Indicators All loans are subject to the Company’s credit review and monitoring process. For the commercial portfolio, loans are risk rated based on an analysis of the borrower’s current payment performance or delinquency, repayment sources, financial and liquidity factors, including industry and geographic considerations. For the majority of the consumer portfolio, payment performance or delinquency is the driving indicator for the risk ratings. The Company utilizes internal credit risk ratings to assign each individual loan a risk rating of one through 10. Loans risk rated one through five are assigned an internal risk rating of “Pass.” Loans risk rated one are typically loans fully secured by cash. Pass loans have sufficient sources of repayment to repay the loan in full, in accordance with all terms and conditions. Loans assigned a risk rating of six have potential weaknesses that warrant closer attention by management; these are assigned an internal risk rating of “Special Mention.” Loans assigned a risk rating of seven or eight have well-defined weaknesses that may jeopardize the full and timely repayment of the loan; these are assigned an internal risk rating of “Substandard.” Loans assigned a risk rating of nine have insufficient sources of repayment and a high probability of loss; these are assigned an internal risk rating of “Doubtful.” Loans assigned a risk rating of 10 are uncollectible and of such little value that they are no longer considered bankable assets; these are assigned an internal risk rating of “Loss.” Exposures categorized as criticized consist of special mention, substandard, doubtful and loss categories. The Company reviews the internal risk ratings of its loan portfolio on a regular basis, and adjusts the ratings based on changes in the borrowers’ financial status and the collectability of the loans. |
Allowance for Credit Losses | Allowance for Credit Losses The Company has an allowance framework under ASU 2016-13 for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. The measurement of the allowance for credit losses is based on management’s best estimate of lifetime expected credit losses inherent in the Company’s relevant financial assets. The allowance for credit losses is deducted from the amortized cost basis of a financial asset or a group of financial assets so that the balance sheet reflects the net amount the Company expects to collect. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred fees and costs, and escrow advances. Subsequent changes in expected credit losses are recognized in net income as a provision for, or a reversal of, credit loss expense. The process of the allowance for credit losses involves procedures to consider the unique risk characteristics of the portfolio segments. The majority of the Company’s credit exposures share risk characteristics with other similar exposures, and as a result are collectively evaluated. The collectively evaluated loans cover performing risk-rated loans and unfunded credit commitments. If an exposure does not share risk characteristics with other exposures, the Company generally estimates expected credit losses on an individual basis. The individually assessed loans cover loans modified in a TDR and collateral-dependent loans, as well as, risk-rated loans that have been placed on nonaccrual status. Allowance for Collectively Evaluated Loans The allowance for collectively evaluated loans consists of a quantitative component that assesses many different risk factors that we consider in our models and a qualitative component that considers risk factors external to the models. Each of these components are described below. Quantitative Component — The allowance for loan losses is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio, and an economic outlook over the life of the loan. The Company incorporates forward-looking information using macroeconomic scenarios applied over the forecasted life of the loans. The forward-looking information is limited to the reasonable and supportable period. These macroeconomic scenarios include variables that are considered key drivers of increases and decreases in credit losses. The Company utilizes a probability-weighted multiple scenario forecast approach. These scenarios may consist of a base forecast representing management's view of the most likely outcome, and downside or upside scenarios reflecting possible worsening or improving economic conditions. The quantitative models incorporate a probability-weighted calculation of these macroeconomic scenarios over a reasonable and supportable forecast period. If the loans’ lives extend beyond the reasonable and supportable forecast period, then historical experience, or long-run macroeconomic trends, are considered over the remaining lives of the loans to estimate allowance for loan losses. Qualitative Component — The Company also considers the following qualitative factors in the determination of the collectively evaluated allowance, if these factors have not already been captured by the quantitative model. Such qualitative factors may include, but are not limited to: • Loan growth trends; • The volume and severity of past due financial assets, and the volume and severity of adversely classified financial assets; • The Company’s lending policies and procedures, including changes in lending strategies, underwriting standards, collection, write-off and recovery practices; • Knowledge of a borrower’s operations; • The quality of the Company’s credit review system; • The experience, ability and depth of the Company’s management, lending associates and other relevant associates; • The effect of other external factors such as the regulatory and legal environments and changes in technology; • Actual and expected changes in international, national, regional, and local economic and business conditions in which the Company operates; and • Risk factors in certain industry sectors not captured by the quantitative models. The magnitude of the impact of these factors on the Company’s qualitative assessment of the allowance for credit losses changes from period to period according to changes made by management in its assessment of these factors. The extent to which these factors change may be dependent on whether they are already reflected in quantitative loss estimates during the current period and the extent to which changes in these factors diverge from period to period. For both the three and six months ended June 30, 2021 and 2020, there were no changes to the reasonable and supportable forecast period and reversion to historical loss experience method. The following table provides key credit risk characteristics and macroeconomic variables that the Company uses to estimate the expected credit losses by portfolio segment: Portfolio Segment Risk Characteristics Macroeconomic Variables C&I Internal risk rating, size and credit spread at origination, and time to maturity Unemployment rate, and two- and ten-year U.S. Treasury spread CRE, Multifamily residential, and Construction and land Delinquency status, maturity date, collateral value, property type, and geographic location Unemployment rate, GDP, and U.S. Treasury rates Single-family residential and HELOCs FICO score, delinquency status, maturity date, collateral value, and geographic location Unemployment rate, GDP, and home price index Other consumer Historical loss experience Immaterial (1) (1) Macroeconomic variables are included in the qualitative estimate. Allowance for Loan Losses for the Commercial Loan Portfolio — The Company’s C&I loan lifetime loss rate model estimates credit losses by estimating a loss rate expected over the life of a loan. This loss rate is applied to the amortized cost basis, excluding accrued interest receivable, to determine expected credit losses. The lifetime loss rate model’s reasonable and supportable period spans eight quarters, thereafter immediately reverting to the historical average loss rate, expressed through the loan-level lifetime loss rate. For CRE, multifamily residential, and construction and land loans, projected probability of defaults (“PDs”) and loss given defaults (“LGDs”) are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. After the reasonable and supportable period, the forecast of future economic conditions returns to long-run historical economic trends. In order to estimate the life of a loan under both models, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Allowance for Loan Losses for the Consumer Loan Portfolio — For single-family residential and HELOC loans, projected PDs and LGDs are applied to the estimated exposure at default, considering the term and payment structure of the loan, to generate estimates of expected loss at the loan level. After the reasonable and supportable period, the forecast of future economic conditions returns to long-run historical economic trends. For other consumer loans, the Company uses a loss rate approach. In order to estimate the life of a loan for the consumer portfolio, the contractual term of the loan is adjusted for estimated prepayments based on historical prepayment experience. Qualitative Allowance for Collectively Evaluated Loans — While the Company’s allowance methodologies strive to reflect all relevant credit risk factors, there continues to be uncertainty associated with, but not limited to, potential imprecision in the estimation process due to the inherent time lag of obtaining information and normal variations between expected and actual outcomes. The Company may hold additional qualitative reserves that are designed to provide coverage for losses attributable to such risk. Allowance for Individually Evaluated Loans When a loan no longer shares similar risk characteristics with other loans, such as in the case of certain nonaccrual or TDR loans, the Company estimates the allowance for loan losses on an individual loan basis. The allowance for loan losses for individually evaluated loans is measured as the difference between the recorded value of the loans and their fair value. For loans evaluated individually, the Company uses one of three different asset valuation measurement methods: (1) the fair value of collateral less costs to sell; (2) the present value of expected future cash flows; and (3) the loan's observable market price. If an individually evaluated loan is determined to be collateral dependent, the Company applies the fair value of the collateral less costs to sell method. If an individually evaluated loan is determined not to be collateral dependent, the Company uses the present value of future cash flows or the observable market value of the loan. |
Investments in Qualified Affordable Housing Partnerships, Net and Investments in Tax Credit and Other Investments, Net | The Company records its investments in qualified affordable housing partnerships, net, using the proportional amortization method. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the amortization in Income tax expense on the Consolidated Statement of Income. Tax credit investments are evaluated for possible OTTI on an annual basis or when events or changes in circumstances suggest that the carrying amount of the tax credit investments may not be realizable. OTTI charges and impairment recoveries are recorded within Amortization of tax credit and other investments on the Consolidated Statement of Income. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments |
Variable Interest Entities | Variable Interest Entities The Company invests in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, historic rehabilitation, and wind and solar energy projects, of which the majority of such investments are variable interest entities (“VIEs”). As a limited partner in these partnerships, these investments are designed to generate a return primarily through the realization of federal tax credits and tax benefits. An unrelated third party is typically the general partner or managing member who has control over the significant activities of such investments. While the Company’s interest in some of the investments may exceed 50% of the outstanding equity interests, the Company does not consolidate these structures due to the general partner’s or managing member’s ability to manage the entity, which is indicative of the general partner’s or managing member’s power over the entity. The Company’s maximum exposure to loss in connection with these partnerships consists of the unamortized investment balance and any tax credits claimed that may become subject to recapture. |
Goodwill and Core Deposit Intangibles | The Company’s annual goodwill impairment testing is performed as of December 31 of each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Goodwill and Other Intangible Assets to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. |
Amortization Expense of Core Deposit Intangibles | The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. |
Litigation | Litigation — The Company is a party to various legal actions arising in the ordinary course of its business. In accordance with ASC 450, Contingencies, the Company accrues reserves for outstanding lawsuits, claims and proceedings when a loss contingency is probable and can be reasonably estimated. The Company estimates the amount of loss contingencies using current available information from legal proceedings, advice from legal counsel and available insurance coverage. Due to the inherent subjectivity of the assessments and unpredictability of the outcomes of the legal proceedings, any amounts accrued or included in this aggregate amount may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company’s exposure and ultimate losses may be higher, and possibly significantly more, than the amounts accrued. |
Share-based Compensation | Compensation costs are calculated using the quoted market price of the Company’s common stock at the grant date. Compensation costs for certain time-based awards that will be settled in cash are adjusted to fair value based on changes in the share price of the Company’s common stock up to the settlement date. For performance-based RSUs, the compensation costs are based on grant date fair value which considers both performance and market conditions, and is subject to subsequent adjustments based on the Company’s outcome in meeting the performance criteria at the end of the performance period. Compensation costs of both time-based and performance-based awards are estimated based on awards ultimately expected to vest, and are recognized net of estimated forfeitures on a straight-line basis from the grant date until the vesting date of each grant. For accounting on stock-based compensation plans, see Note 1 — Summary of Significant Accounting Policies — Stock-Based Compensation to the Consolidated Financial Statements of the Company’s 2020 Form 10-K for additional information. |
Current Accounting Developmen_3
Current Accounting Developments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted Standard Required Date of Adoption Description Effect on Financial Statements Standards Adopted in 2021 ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and subsequent related ASU 2021-01, Reference Rate Reform (Topic 848): Scope Effective for all entities from the dates of issuance through December 31, 2022. In March 2020, the FASB issued an ASU related to contracts or hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or other reference rates that are expected to be discontinued due to reference rate reform. This ASU provides temporary optional expedients and exceptions regarding the accounting requirements related to the modification of certain contracts, hedging relationships and other transactions that are affected by the reference rate reform. The guidance permits the Company to make a one-time election to sell and/or transfer qualifying held-to-maturity securities, and not to apply modification accounting or remeasure lease payments in lease contracts if the changes to the contract are related to the discontinuation of the reference rate. If certain criteria are met, the amendments also allow exceptions to the de-designation criteria of the hedging relationships and the assessment of hedge effectiveness during the transition period. This one-time election may be made at any time after March 12, 2020, but no later than December 31, 2022. In January 2021, the FASB issued ASU 2021-01 as subsequent amendments, which expanded the scope of Topic 848 to include all affected derivatives and clarified certain optional expedients and exceptions regarding the hedge accounting for derivative contracts affected by the discounting transition. The amendments of this guidance could be elected retrospectively or prospectively to new modifications made on or after the date of issuance of this ASU, January 7, 2021. The Company adopted this guidance on a prospective basis in January 2021. At the time of adoption, the guidance did not have a material impact on the Company’s Consolidated Financial Statements. The Company will continue to track the exposure as of each reporting period and to assess the impact as the reference rate transition occurs through the cessation of LIBOR. ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2021 Early adoption is permitted on January 1, 2020. This ASU simplifies the accounting for income taxes by removing certain exceptions to the existing guidance. This includes removing exceptions to: 1) the incremental approach for intraperiod tax allocation, 2) the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, 3) the ability not to recognize a deferred tax liability when a foreign equity method investment becomes a subsidiary, and 4) the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, this ASU simplifies the accounting for income taxes related to franchise taxes, the tax basis of goodwill and the method for recognizing an enacted change in tax laws. This ASU also specifies that an entity is not required to allocate the consolidated amount of tax expense to a legal entity that is not subject to tax in its separate financial statements. This ASU also makes improvements in the accounting for income taxes related to employee stock ownership plans and equity method investments in qualified affordable housing projects. This guidance should be applied on either a retrospective, modified retrospective or prospective basis depending on the amendments. The Company adopted this guidance in January 2021 using the transition guidance prescribed by this ASU. At the time of adoption, this guidance did not have a material impact on the Company’s Consolidated Financial Statements. |
Fair Value Measurement and Fa_2
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule of financial assets (liabilities) measured at fair value on a recurring basis | The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 836,940 $ — $ — $ 836,940 U.S. government agency and U.S. government-sponsored enterprise debt securities — 1,224,511 — 1,224,511 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 1,188,640 — 1,188,640 Residential mortgage-backed securities — 2,368,552 — 2,368,552 Municipal securities — 454,923 — 454,923 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 364,172 — 364,172 Residential mortgage-backed securities — 772,474 — 772,474 Corporate debt securities — 552,715 — 552,715 Foreign government bonds — 283,175 — 283,175 Asset-backed securities — 61,829 — 61,829 Collateralized loan obligations (“CLOs”) — 291,529 — 291,529 Total AFS debt securities $ 836,940 $ 7,562,520 $ — $ 8,399,460 Investments in tax credit and other investments: Equity securities (1) $ 22,345 $ 4,474 $ — $ 26,819 Total investments in tax credit and other investments $ 22,345 $ 4,474 $ — $ 26,819 Derivative assets: Interest rate contracts $ — $ 329,953 $ — $ 329,953 Foreign exchange contracts — 29,867 — 29,867 Credit contracts — 3 — 3 Equity contracts — — 223 223 Commodity contracts — 228,536 — 228,536 Gross derivative assets $ — $ 588,359 $ 223 $ 588,582 Netting adjustments (2) $ — $ (93,091) $ — $ (93,091) Net derivative assets $ — $ 495,268 $ 223 $ 495,491 Derivative liabilities: Interest rate contracts $ — $ 228,952 $ — $ 228,952 Foreign exchange contracts — 20,555 — 20,555 Credit contracts — 87 — 87 Commodity contracts — 199,327 — 199,327 Gross derivative liabilities $ — $ 448,921 $ — $ 448,921 Netting adjustments (2) $ — $ (253,309) $ — $ (253,309) Net derivative liabilities $ — $ 195,612 $ — $ 195,612 ($ in thousands) Assets and Liabilities Measured at Fair Value on a Recurring Basis Quoted Prices in Significant Significant Total AFS debt securities: U.S. Treasury securities $ 50,761 $ — $ — $ 50,761 U.S. government agency and U.S. government-sponsored enterprise debt securities — 814,319 — 814,319 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities — 1,153,770 — 1,153,770 Residential mortgage-backed securities — 1,660,894 — 1,660,894 Municipal securities — 396,073 — 396,073 Non-agency mortgage-backed securities: Commercial mortgage-backed securities — 239,842 — 239,842 Residential mortgage-backed securities — 289,775 — 289,775 Corporate debt securities — 405,968 — 405,968 Foreign government bonds — 182,531 — 182,531 Asset-backed securities — 63,231 — 63,231 CLOs — 287,494 — 287,494 Total AFS debt securities $ 50,761 $ 5,493,897 $ — $ 5,544,658 Investments in tax credit and other investments: Equity securities (1) $ 22,548 $ 8,724 $ — $ 31,272 Total investments in tax credit and other investments $ 22,548 $ 8,724 $ — $ 31,272 Derivative assets: Interest rate contracts $ — $ 489,132 $ — $ 489,132 Foreign exchange contracts — 30,300 — 30,300 Credit contracts — 13 — 13 Equity contracts — 585 273 858 Commodity contracts — 82,451 — 82,451 Gross derivative assets $ — $ 602,481 $ 273 $ 602,754 Netting adjustments (2) $ — $ (101,512) $ — $ (101,512) Net derivative assets $ — $ 500,969 $ 273 $ 501,242 Derivative liabilities: Interest rate contracts $ — $ 317,698 $ — $ 317,698 Foreign exchange contracts — 22,759 — 22,759 Credit contracts — 206 — 206 Commodity contracts — 84,165 — 84,165 Gross derivative liabilities $ — $ 424,828 $ — $ 424,828 Netting adjustments (2) $ — $ (184,697) $ — $ (184,697) Net derivative liabilities $ — $ 240,131 $ — $ 240,131 (1) Equity securities consist of mutual funds with readily determinable fair values. The Company invested in these mutual funds for CRA purposes. (2) Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information. |
Schedule of the carrying and fair value estimates per the fair value hierarchy of financial instruments measured on a nonrecurring basis | The following tables present the fair value estimates for financial instruments as of June 30, 2021 and December 31, 2020, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable and mortgage servicing rights that are included in Other assets , and accrued interest payable that is included in Accrued expenses and other liabilities . These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet. ($ in thousands) June 30, 2021 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 5,997,805 $ 5,997,805 $ — $ — $ 5,997,805 Interest-bearing deposits with banks $ 830,279 $ — $ 830,279 $ — $ 830,279 Resale agreements $ 2,299,184 $ — $ 2,290,097 $ — $ 2,290,097 Restricted equity securities, at cost $ 76,931 $ — $ 76,931 $ — $ 76,931 Loans held-for-sale $ 1,819 $ — $ 1,819 $ — $ 1,819 Loans held-for-investment, net $ 39,485,775 $ — $ — $ 39,414,107 $ 39,414,107 Mortgage servicing rights $ 5,373 $ — $ — $ 8,788 $ 8,788 Accrued interest receivable $ 154,810 $ — $ 154,810 $ — $ 154,810 Financial liabilities: Demand, checking, savings and money market deposits $ 44,151,817 $ — $ 44,151,817 $ — $ 44,151,817 Time deposits $ 8,430,758 $ — $ 8,442,834 $ — $ 8,442,834 FHLB advances $ 248,464 $ — $ 250,871 $ — $ 250,871 Repurchase agreements $ 300,000 $ — $ 314,315 $ — $ 314,315 Long-term debt $ 147,515 $ — $ 150,232 $ — $ 150,232 Accrued interest payable $ 10,279 $ — $ 10,279 $ — $ 10,279 ($ in thousands) December 31, 2020 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 4,017,971 $ 4,017,971 $ — $ — $ 4,017,971 Interest-bearing deposits with banks $ 809,728 $ — $ 809,728 $ — $ 809,728 Resale agreements $ 1,460,000 $ — $ 1,464,635 $ — $ 1,464,635 Restricted equity securities, at cost $ 83,046 $ — $ 83,046 $ — $ 83,046 Loans held-for-sale $ 1,788 $ — $ 1,788 $ — $ 1,788 Loans held-for-investment, net $ 37,770,972 $ — $ — $ 37,803,940 $ 37,803,940 Mortgage servicing rights $ 5,522 $ — $ — $ 8,435 $ 8,435 Accrued interest receivable $ 150,140 $ — $ 150,140 $ — $ 150,140 Financial liabilities: Demand, checking, savings and money market deposits $ 35,862,403 $ — $ 35,862,403 $ — $ 35,862,403 Time deposits $ 9,000,349 $ — $ 9,016,884 $ — $ 9,016,884 Short-term borrowings $ 21,009 $ — $ 21,009 $ — $ 21,009 FHLB advances $ 652,612 $ — $ 659,631 $ — $ 659,631 Repurchase agreements $ 300,000 $ — $ 317,850 $ — $ 317,850 Long-term debt $ 147,376 $ — $ 150,131 $ — $ 150,131 Accrued interest payable $ 11,956 $ — $ 11,956 $ — $ 11,956 |
Fair Value, Measurements, Recurring | |
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Reconciliation of the beginning and ending balances for equity warrants measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Equity Contracts Beginning balance $ 272 $ 713 $ 273 $ 421 Total gains included in earnings (1) 47 7,976 46 8,268 Settlements (96) — (96) — Transfers out of Level 3 (2) — (8,373) — (8,373) Ending balance $ 223 $ 316 $ 223 $ 316 (1) Includes unrealized (losses) gains of $(27) thousand and $8.0 million for the three months ended June 30, 2021 and 2020, respectively, and $(29) thousand and $8.3 million for the six months ended June 30, 2021 and 2020, respectively. The realized/unrealized gains (losses) of equity contracts are included in Lending fees on the Consolidated Statement of Income. |
Schedule of quantitative information about significant unobservable inputs used in the valuation of Level 3 fair value measurements | The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of June 30, 2021 and December 31, 2020, respectively. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Valuation Unobservable Range of Inputs Weighted- Average of Inputs (1) June 30, 2021 Derivative assets: Equity contracts $ 223 Black-Scholes option pricing model Equity volatility 41% — 53% 47% Liquidity discount 47% 47% December 31, 2020 Derivative assets: Equity contracts $ 273 Black-Scholes option pricing model Equity volatility 46% — 61% 53% Liquidity discount 47% 47% (1) Weighted-average of inputs is calculated based on the fair value of equity contracts as of June 30, 2021 and December 31, 2020. |
Fair Value, Measurements, Nonrecurring | |
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |
Schedule of quantitative information about significant unobservable inputs used in the valuation of Level 3 fair value measurements | The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of June 30, 2021 and December 31, 2020: ($ in thousands) Fair Value Valuation Unobservable Range of Weighted- Average of Inputs (1) June 30, 2021 Loans held-for-investment $ 96,038 Discounted cash flows Discount 4% — 20% 9% $ 13,638 Fair value of collateral Discount 20% — 40% 34% $ 65,393 Fair value of property Selling cost 7% — 8% 8% OREO $ 14,914 Fair value of property Selling cost 8% 8% December 31, 2020 Loans held-for-investment $ 104,783 Discounted cash flows Discount 3% — 15% 11% $ 22,207 Fair value of collateral Discount 10% — 26% 15% $ 15,879 Fair value of collateral Contract value NM NM $ 46,993 Fair value of property Selling cost 7% — 26% 10% Investments in tax credit and other investments, net $ 3,140 Individual analysis of each investment Expected future tax benefits and distributions NM NM OREO $ 15,824 Fair value of property Selling cost 8% 8% NM — Not meaningful. (1) Weighted-average of inputs is based on the relative fair value of the respective assets as of June 30, 2021 and December 31, 2020. |
Schedule of carrying amounts of assets that were still held and had fair value changes measured on a nonrecurring basis | The following tables present the carrying amounts of assets that were still held and had fair value changes measured on a nonrecurring basis as of June 30, 2021 and December 31, 2020: ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: Commercial and industrial (“C&I”) $ — $ — $ 110,211 $ 110,211 Commercial real estate (“CRE”): CRE — — 53,509 53,509 Multifamily residential — — 2,428 2,428 Construction and land — — 4,191 4,191 Total commercial — — 170,339 170,339 Consumer: Residential mortgage: Single-family residential — — 1,125 1,125 Home equity lines of credit (“HELOCs”) — — 3,605 3,605 Total consumer — — 4,730 4,730 Total loans held-for-investment $ — $ — $ 175,069 $ 175,069 OREO (1) $ — $ — $ 14,914 $ 14,914 ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Quoted Prices in Significant Significant Fair Value Loans held-for-investment: Commercial: C&I $ — $ — $ 143,331 $ 143,331 CRE: CRE — — 42,894 42,894 Total commercial — — 186,225 186,225 Consumer: Residential mortgage: HELOCs — — 1,146 1,146 Other consumer — — 2,491 2,491 Total consumer — — 3,637 3,637 Total loans held-for-investment $ — $ — $ 189,862 $ 189,862 Investments in tax credit and other investments, net $ — $ — $ 3,140 $ 3,140 OREO (1) $ — $ — $ 15,824 $ 15,824 (1) Amounts are included in Other assets on the Consolidated Balance Sheet and represent the carrying value of OREO properties that were written down subsequent to their initial classification as OREO. |
Schedule of increase (decrease) in fair value of assets for which a fair value adjustment has been recognized, nonrecurring basis | The following table presents the (decrease) increase in fair value of assets for which a nonrecurring fair value adjustment has been recognized for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Loans held-for-investment: Commercial: C&I $ (6,462) $ (8,846) $ (15,530) $ (30,372) CRE: CRE (275) (271) (7,336) (276) Multifamily residential 2 — (6) — Construction and land (209) — (280) — Total commercial (6,944) (9,117) (23,152) (30,648) Consumer: Residential mortgage: Single-family residential — — (8) — HELOCs 3 (64) (23) (257) Other consumer (2,491) — (2,491) 2,491 Total consumer (2,488) (64) (2,522) 2,234 Total loans held-for-investment $ (9,432) $ (9,181) $ (25,674) $ (28,414) Investments in tax credit and other investments, net $ 877 $ (733) $ 877 $ (583) OREO $ (910) $ — $ (910) $ — Other nonperforming assets $ — $ — $ (3,890) $ — |
Assets Purchased under Resale_2
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
RESALE AND REPURCHASE AGREEMENTS [Abstract] | |
Schedule of balance sheet offsetting for resale and repurchase agreements | The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Assets Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Received Resale agreements $ 2,299,184 $ — $ 2,299,184 $ (2,285,058) (1) $ 14,126 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 300,000 $ — $ 300,000 $ (300,000) (2) $ — ($ in thousands) December 31, 2020 Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Assets Net Collateral Received Resale agreements $ 1,460,000 $ — $ 1,460,000 $ (1,458,700) (1) $ 1,300 Liabilities Gross Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Collateral Pledged Repurchase agreements $ 300,000 $ — $ 300,000 $ (300,000) (2) $ — (1) Represents the fair value of securities and loans the Company has received under resale agreements, limited to the amount of the recognized asset due from each counterparty for presentation purposes. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. (2) Represents the fair value of securities the Company has pledged under repurchase agreements, limited to the amount of the recognized liability due to each counterparty for presentation purpose. The application of collateral cannot reduce the net position below zero. Therefore, excess collateral, if any, is not reflected above. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains and losses, and fair value by major categories of AFS debt securities | The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of AFS debt securities as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 841,890 $ 1,148 $ (6,098) $ 836,940 U.S. government agency and U.S. government-sponsored enterprise debt securities 1,237,278 5,835 (18,602) 1,224,511 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,177,949 23,374 (12,683) 1,188,640 Residential mortgage-backed securities 2,375,536 18,186 (25,170) 2,368,552 Municipal securities 445,028 11,532 (1,637) 454,923 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 360,704 5,282 (1,814) 364,172 Residential mortgage-backed securities 772,382 2,308 (2,216) 772,474 Corporate debt securities 558,295 8,597 (14,177) 552,715 Foreign government bonds 286,579 512 (3,916) 283,175 Asset-backed securities 61,501 335 (7) 61,829 CLOs 294,000 — (2,471) 291,529 Total AFS debt securities $ 8,411,142 $ 77,109 $ (88,791) $ 8,399,460 ($ in thousands) December 31, 2020 Amortized Gross Gross Fair AFS debt securities: U.S. Treasury securities $ 50,310 $ 451 $ — $ 50,761 U.S. government agency and U.S. government-sponsored enterprise debt securities 806,814 8,765 (1,260) 814,319 U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 1,125,174 34,306 (5,710) 1,153,770 Residential mortgage-backed securities 1,634,553 27,952 (1,611) 1,660,894 Municipal securities 382,573 13,588 (88) 396,073 Non-agency mortgage-backed securities: Commercial mortgage-backed securities 234,965 6,107 (1,230) 239,842 Residential mortgage-backed securities 288,520 1,761 (506) 289,775 Corporate debt securities 406,323 3,493 (3,848) 405,968 Foreign government bonds 183,828 163 (1,460) 182,531 Asset-backed securities 63,463 10 (242) 63,231 CLOs 294,000 — (6,506) 287,494 Total AFS debt securities $ 5,470,523 $ 96,596 $ (22,461) $ 5,544,658 |
Schedule of fair value and associated gross unrealized losses of AFS debt securities | The following tables present the fair value and the associated gross unrealized losses of the Company’s AFS debt securities, aggregated by investment category and the length of time that the securities have been in a continuous unrealized loss position as of June 30, 2021 and December 31, 2020. ($ in thousands) June 30, 2021 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 544,599 $ (6,098) $ — $ — $ 544,599 $ (6,098) U.S. government agency and U.S. government sponsored enterprise debt securities 782,327 (17,402) 23,776 (1,200) 806,103 (18,602) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 491,515 (11,487) 28,399 (1,196) 519,914 (12,683) Residential mortgage-backed securities 1,346,061 (25,170) — — 1,346,061 (25,170) Municipal securities 108,695 (1,637) — — 108,695 (1,637) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 102,043 (1,806) 15,579 (8) 117,622 (1,814) Residential mortgage-backed securities 464,404 (2,216) — — 464,404 (2,216) Corporate debt securities 254,723 (11,277) 57,100 (2,900) 311,823 (14,177) Foreign government bonds 59,189 (3,146) 92,844 (770) 152,033 (3,916) Asset-backed securities 15,948 (7) — — 15,948 (7) CLOs — — 291,529 (2,471) 291,529 (2,471) Total AFS debt securities $ 4,169,504 $ (80,246) $ 509,227 $ (8,545) $ 4,678,731 $ (88,791) ($ in thousands) December 31, 2020 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross AFS debt securities: U.S. Treasury securities $ 352,521 $ (1,260) $ — $ — $ 352,521 $ (1,260) U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 292,596 (5,656) 3,543 (54) 296,139 (5,710) Residential mortgage-backed securities 342,561 (1,611) — — 342,561 (1,611) Municipal securities 24,529 (88) — — 24,529 (88) Non-agency mortgage-backed securities: Commercial mortgage-backed securities 58,738 (1,230) 7,920 — 66,658 (1,230) Residential mortgage-backed securities 90,156 (506) — — 90,156 (506) Corporate debt securities 251,674 (3,645) 9,798 (203) 261,472 (3,848) Foreign government bonds 106,828 (1,460) — — 106,828 (1,460) Asset-backed securities — — 34,104 (242) 34,104 (242) CLOs — — 287,494 (6,506) 287,494 (6,506) Total AFS debt securities $ 1,519,603 $ (15,456) $ 342,859 $ (7,005) $ 1,862,462 $ (22,461) |
Schedule of the proceeds, gross realized gains, and tax expense related to the sales of AFS debt securities | The following table presents the gross realized gains and tax expense related to the sales of AFS debt securities for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Gross realized gains $ 632 $ 9,640 $ 824 $ 11,169 Related tax expense $ 187 $ 2,850 $ 244 $ 3,302 |
Schedule of contractual maturities of AFS debt securities | The following table presents the contractual maturities of AFS debt securities as of June 30, 2021. Expected maturities will differ from contractual maturities on certain securities as the issuers and borrowers of the underlying collateral may have the right to call or prepay obligations with or without prepayment penalties. ($ in thousands) Amortized Cost Fair Value Due within one year $ 1,379,762 $ 1,353,523 Due after one year through five years 785,678 790,794 Due after five years through ten years 1,483,790 1,491,799 Due after ten years 4,761,912 4,763,344 Total AFS debt securities $ 8,411,142 $ 8,399,460 |
Schedule of restricted equity securities | The following table presents the restricted equity securities on the Consolidated Balance Sheet as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Federal Reserve Bank of San Francisco (“FRBSF”) stock $ 59,681 $ 59,249 FHLB stock 17,250 23,797 Total restricted equity securities $ 76,931 $ 83,046 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional and gross fair values of derivatives | The following table presents the total notional amounts and gross fair values of the Company’s derivatives, as well as the balance sheet netting adjustments on an aggregate basis as of June 30, 2021 and December 31, 2020. The derivative assets and liabilities are presented on a gross basis prior to the application of bilateral collateral and master netting agreements, but after the variation margin payments with central clearing organizations have been applied as settlement, as applicable. Total derivative assets and liabilities are adjusted to take into consideration the effects of legally enforceable master netting agreements and cash collateral received or paid as of June 30, 2021 and December 31, 2020. The resulting net derivative asset and liability fair values are included in Other assets and Accrued expenses and other liabilities , respectively, on the Consolidated Balance Sheet. ($ in thousands) June 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Derivative Derivative Derivative Derivative Derivatives designated as hedging instruments: Cash flow hedges: Interest rate contracts $ 275,000 $ — $ 1,184 $ 275,000 $ — $ 1,864 Net investment hedges: Foreign exchange contracts 85,176 — 195 84,269 — 235 Total derivatives designated as hedging instruments $ 360,176 $ — $ 1,379 $ 359,269 $ — $ 2,099 Derivatives not designated as hedging instruments: Interest rate contracts $ 17,836,695 $ 329,953 $ 227,768 $ 18,155,678 $ 489,132 $ 315,834 Foreign exchange contracts 3,756,284 29,867 20,360 3,108,488 30,300 22,524 Credit contracts 83,693 3 87 76,992 13 206 Equity contracts — (1) 223 — — (1) 858 — Commodity contracts — (2) 228,536 199,327 — (2) 82,451 84,165 Total derivatives not designated as hedging instruments $ 21,676,672 $ 588,582 $ 447,542 $ 21,341,158 $ 602,754 $ 422,729 Gross derivative assets/liabilities $ 588,582 $ 448,921 $ 602,754 $ 424,828 Less: Master netting agreements (89,723) (89,723) (93,063) (93,063) Less: Cash collateral received/paid (3,368) (163,586) (8,449) (91,634) Net derivative assets/liabilities $ 495,491 $ 195,612 $ 501,242 $ 240,131 (1) The Company held equity contracts in 14 private companies as of June 30, 2021. In comparison, the Company held equity contracts in two public companies and 17 private companies as of December 31, 2020. (2) The notional amount of the Company’s commodity contracts entered with its customers totaled 8,484 thousand barrels of crude oil and 119,921 thousand units of natural gas, measured in million British thermal units (“MMBTUs”) as of June 30, 2021. In comparison, the notional amount of the Company’s commodity contracts entered with its customers totaled 6,321 thousand barrels of crude oil and 109,635 thousand MMBTUs of natural gas as of December 31, 2020. The Company simultaneously entered into the offsetting commodity contracts with mirrored terms with third-party financial institutions. The following tables present the notional amounts and the gross fair values of interest rate derivative contracts outstanding as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Written options $ 850,152 $ — $ 650 Purchased options $ 850,152 $ 656 $ — Sold collars and corridors 424,212 3,864 218 Collars and corridors 424,212 214 3,910 Swaps 7,628,895 309,520 25,743 Swaps 7,659,072 15,699 197,247 Total $ 8,903,259 $ 313,384 $ 26,611 Total $ 8,933,436 $ 16,569 $ 201,157 ($ in thousands) December 31, 2020 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Written options $ 957,393 $ — $ 115 Purchased options $ 957,393 $ 101 $ 15 Sold collars and corridors 518,477 7,673 — Collars and corridors 518,477 — 7,717 Swaps 7,586,414 479,634 1,364 Swaps 7,617,524 1,724 306,623 Total $ 9,062,284 $ 487,307 $ 1,479 Total $ 9,093,394 $ 1,825 $ 314,355 The following tables present the notional amounts and the gross fair values of foreign exchange derivative contracts outstanding as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spot $ 2,299,644 $ 20,026 $ 16,189 Forwards and spot $ 219,671 $ 1,575 $ 1,083 Swaps 103,086 182 651 Swaps 892,913 8,052 2,405 Written options 118,350 — 31 Purchased options 118,350 31 — Collars 2,135 1 — Collars 2,135 — 1 Total $ 2,523,215 $ 20,209 $ 16,871 Total $ 1,233,069 $ 9,658 $ 3,489 ($ in thousands) December 31, 2020 Customer Counterparty ($ in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Forwards and spot $ 1,522,888 $ 17,575 $ 17,928 Forwards and spot $ 145,197 $ 1,230 $ 273 Swaps 13,590 872 91 Swaps 1,191,355 10,049 3,658 Written options 117,729 — 574 Purchased options 117,729 574 — Total $ 1,654,207 $ 18,447 $ 18,593 Total $ 1,454,281 $ 11,853 $ 3,931 ($ in thousands) June 30, 2021 December 31, 2020 Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities RPAs - protection sold $ 72,979 $ — $ 87 $ 66,278 $ — $ 206 RPAs - protection purchased 10,714 3 — 10,714 13 — Total RPAs $ 83,693 $ 3 $ 87 $ 76,992 $ 13 $ 206 The following tables present the notional amounts and fair values of the commodity derivative positions outstanding as of June 30, 2021 and December 31, 2020: ($ and units in thousands) June 30, 2021 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Written options 210 Barrels $ 288 $ 2 Purchased options 210 Barrels $ — $ 241 Collars 2,406 Barrels 28,308 35 Collars 2,406 Barrels 35 27,811 Swaps 5,868 Barrels 92,924 27 Swaps 5,868 Barrels 60 76,813 Total 8,484 $ 121,520 $ 64 Total 8,484 $ 95 $ 104,865 Natural gas: Natural gas: Written options 5,336 MMBTUs $ 3 $ 16 Purchased options 5,336 MMBTUs $ 16 $ 3 Collars 18,178 MMBTUs 9,327 — Collars 23,468 MMBTUs — 7,879 Swaps 96,407 MMBTUs 72,438 25,144 Swaps 103,653 MMBTUs 25,137 61,356 Total 119,921 $ 81,768 $ 25,160 Total 132,457 $ 25,153 $ 69,238 Total $ 203,288 $ 25,224 Total $ 25,248 $ 174,103 ($ and units in thousands) December 31, 2020 Customer Counterparty ($ and units in thousands) Financial Counterparty Notional Fair Value Notional Fair Value Assets Liabilities Assets Liabilities Crude oil: Crude oil: Collars 2,022 Barrels $ 2,344 $ 2,193 Collars 2,022 Barrels $ 2,217 $ 2,402 Swaps 4,299 Barrels 9,282 14,283 Swaps 4,299 Barrels 8,220 7,135 Total 6,321 $ 11,626 $ 16,476 Total 6,321 $ 10,437 $ 9,537 Natural gas: Natural gas: Written options 597 MMBTUs $ — $ 59 Purchased options 597 MMBTUs $ 59 $ — Collars 12,733 MMBTUs 1,063 205 Collars 16,293 MMBTUs 205 813 Swaps 96,305 MMBTUs 32,073 27,238 Swaps 103,973 MMBTUs 26,988 29,837 Total 109,635 $ 33,136 $ 27,502 Total 120,863 $ 27,252 $ 30,650 Total $ 44,762 $ 43,978 Total $ 37,689 $ 40,187 |
Schedule of pre-tax changes in AOCI from cash flows hedges | The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and six months ended June 30, 2021 and 2020. The after-tax impact of cash flow hedges on AOCI is discussed in Note 13 — Accumulated Other Comprehensive Income (Loss) to the Consolidated Financial Statements in this Form-10-Q. ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Losses) gains recognized in AOCI $ (106) $ (1,483) $ 320 $ (1,483) (Losses) gains reclassified from AOCI to interest expense $ (201) $ 377 $ (378) $ 377 |
Tabular disclosure of gains and losses on derivative instruments qualified and designated in net investment hedges | The following table presents the after-tax (losses) gains recognized in AOCI on net investment hedges for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Losses) gains recognized in AOCI $ (1,643) $ (377) $ (1,543) $ 627 |
Schedule of the net (losses) gains recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments | The following table presents the net gains (losses) recognized on the Company’s Consolidated Statement of Income related to derivatives not designated as hedging instruments for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Classification on Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Derivatives not designated as hedging instruments: Interest rate contracts Interest rate contracts and other derivative income $ (5,338) $ (5,361) $ 8,563 $ (12,372) Foreign exchange contracts Foreign exchange income 11,972 6,201 22,215 9,062 Credit contracts Interest rate contracts and other derivative income 150 (75) 195 (98) Equity contracts Lending fees 74 8,070 385 8,379 Commodity contracts Interest rate contracts and other derivative income (188) (71) (19) (47) Net gains $ 6,670 $ 8,764 $ 31,339 $ 4,924 |
Schedule of gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the consolidated balance sheet, as well as the cash and non-cash collateral associated with master netting arrangements | The following tables present the gross derivative fair values, the balance sheet netting adjustments and the resulting net fair values recorded on the Consolidated Balance Sheet, as well as the cash and noncash collateral associated with master netting arrangements. The gross amounts of derivative assets and liabilities are presented after the application of variation margin payments as settlements with central counterparties, where applicable. The collateral amounts in the following tables are limited to the outstanding balances of the related asset or liability, after the application of netting; therefore, instances of overcollateralization are not shown: ($ in thousands) As of June 30, 2021 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 588,582 $ (89,723) $ (3,368) $ 495,491 $ — $ 495,491 Gross Amounts Recognized (2) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Amount Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 448,921 $ (89,723) $ (163,586) $ 195,612 $ (155,245) $ 40,367 ($ in thousands) As of December 31, 2020 Gross Amounts Recognized (1) Gross Amounts Offset on the Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Received (3) Security Collateral Received (5) Derivative assets $ 602,754 $ (93,063) $ (8,449) $ 501,242 $ (35) $ 501,207 Gross Amounts Recognized (2) Gross Amounts Offset on the Consolidated Balance Sheet Net Amounts Gross Amounts Not Offset on the Net Master Netting Arrangements Cash Collateral Pledged (4) Security Collateral Pledged (5) Derivative liabilities $ 424,828 $ (93,063) $ (91,634) $ 240,131 $ (221,150) $ 18,981 (1) Includes $940 thousand and $1.1 million of gross fair value assets with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2021 and December 31, 2020, respectively. (2) Includes $842 thousand and $220 thousand of gross fair value liabilities with counterparties that were not subject to enforceable master netting arrangements or similar agreements as of June 30, 2021 and December 31, 2020, respectively. (3) Gross cash collateral received under master netting arrangements or similar agreements were $9.8 million and $15.8 million as of June 30, 2021 and December 31, 2020, respectively. Of the gross cash collateral received, $3.4 million and $8.4 million were used to offset against derivative assets as of June 30, 2021 and December 31, 2020, respectively. (4) Gross cash collateral pledged under master netting arrangements or similar agreements were $163.9 million and $91.6 million as of June 30, 2021 and December 31, 2020, respectively. Of the gross cash collateral pledged, $163.6 million and $91.6 million were used to offset against derivative liabilities as of June 30, 2021 and December 31, 2020, respectively. (5) Represents the fair value of security collateral received and pledged limited to derivative assets and liabilities that are subject to enforceable master netting arrangements or similar agreements. GAAP does not permit the netting of noncash collateral on the Consolidated Balance Sheet but requires disclosure of such amounts. |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of composition of loans held-for-investment | The following table presents the composition of the Company’s loans held-for-investment as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Commercial: C&I (1) $ 13,790,461 $ 13,631,726 CRE: CRE 11,711,369 11,174,611 Multifamily residential 3,219,796 3,033,998 Construction and land 460,678 599,692 Total CRE 15,391,843 14,808,301 Total commercial 29,182,304 28,440,027 Consumer: Residential mortgage: Single-family residential 8,869,370 8,185,953 HELOCs 1,872,166 1,601,716 Total residential mortgage 10,741,536 9,787,669 Other consumer 147,659 163,259 Total consumer 10,889,195 9,950,928 Total loans held-for-investment (2) $ 40,071,499 $ 38,390,955 Allowance for loan losses (585,724) (619,983) Loans held-for-investment, net (2) $ 39,485,775 $ 37,770,972 (1) Includes Paycheck Protection Program (“PPP”) loans of $1.43 billion and $1.57 billion as of June 30, 2021 and December 31, 2020, respectively. (2) Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(67.0) million and $(58.8) million as of June 30, 2021 and December 31, 2020, respectively. Net origination fees related to PPP loans were $(25.9) million and $(12.7) million as of June 30, 2021 and December 31, 2020, respectively. |
Schedule of loans held-for-investment by loan portfolio segments, internal risk ratings and vintage year | The following tables summarize the Company’s loans held-for-investment as of June 30, 2021 and December 31, 2020, presented by loan portfolio segments, internal risk ratings and vintage year. The vintage year is the year of origination, renewal or major modification. June 30, 2021 Term Loans Revolving Loans Revolving Loans Converted to Term Loans Amortized Cost Basis Total Amortized Cost Basis by Origination Year ($ in thousands) 2021 2020 2019 2018 2017 Prior Commercial: C&I: Pass $ 2,473,716 $ 2,133,586 $ 1,062,978 $ 333,190 $ 200,711 $ 261,156 $ 6,706,592 $ 29,175 $ 13,201,104 Criticized (accrual) 63,030 115,148 87,636 13,847 3,184 4,939 218,348 — 506,132 Criticized (nonaccrual) 16,760 814 2,114 20,977 12,748 1,377 28,435 — 83,225 Total C&I 2,553,506 2,249,548 1,152,728 368,014 216,643 267,472 6,953,375 29,175 13,790,461 CRE: CRE: Pass 1,296,562 2,215,380 2,316,293 2,142,042 1,239,195 2,021,101 153,758 24,073 11,408,404 Criticized (accrual) 80,204 13,844 48,131 9,743 33,358 58,905 — — 244,185 Criticized (nonaccrual) 4,500 — — 46,829 5,868 1,583 — — 58,780 Total CRE 1,381,266 2,229,224 2,364,424 2,198,614 1,278,421 2,081,589 153,758 24,073 11,711,369 Multifamily residential: Pass 384,655 760,226 743,769 454,684 338,701 469,340 6,430 — 3,157,805 Criticized (accrual) — — 728 22,337 6,035 29,998 — — 59,098 Criticized (nonaccrual) — — — 1,189 — 1,704 — — 2,893 Total multifamily residential 384,655 760,226 744,497 478,210 344,736 501,042 6,430 — 3,219,796 Construction and land: Pass 54,054 120,898 130,702 111,112 — 1,421 — — 418,187 Criticized (accrual) 3,440 — — — — 19,151 — — 22,591 Criticized (nonaccrual) — — — — — 19,900 — — 19,900 Total construction and land 57,494 120,898 130,702 111,112 — 40,472 — — 460,678 Total CRE 1,823,415 3,110,348 3,239,623 2,787,936 1,623,157 2,623,103 160,188 24,073 15,391,843 Total commercial 4,376,921 5,359,896 4,392,351 3,155,950 1,839,800 2,890,575 7,113,563 53,248 29,182,304 Consumer: Residential mortgage: Single-family residential: Pass (1) 1,526,669 2,319,273 1,567,312 1,273,541 879,004 1,282,396 — — 8,848,195 Criticized (accrual) — 397 156 1,100 — — — — 1,653 Criticized (nonaccrual) (1) 1,125 — 1,420 2,667 2,245 12,065 — — 19,522 Total single-family residential mortgage 1,527,794 2,319,670 1,568,888 1,277,308 881,249 1,294,461 — — 8,869,370 HELOCs: Pass — 1,938 1,501 1,824 4,508 11,385 1,592,348 247,174 1,860,678 Criticized (accrual) — — — 201 — 600 366 — 1,167 Criticized (nonaccrual) — — 618 188 3,533 1,927 — 4,055 10,321 Total HELOCs — 1,938 2,119 2,213 8,041 13,912 1,592,714 251,229 1,872,166 Total residential mortgage 1,527,794 2,321,608 1,571,007 1,279,521 889,290 1,308,373 1,592,714 251,229 10,741,536 Other consumer: Pass 4,096 7,228 — — 1,741 81,906 50,166 — 145,137 Criticized (accrual) 19 — — — — — — — 19 Criticized (nonaccrual) — — — — 2,491 — 12 — 2,503 Total other consumer 4,115 7,228 — — 4,232 81,906 50,178 — 147,659 Total consumer 1,531,909 2,328,836 1,571,007 1,279,521 893,522 1,390,279 1,642,892 251,229 10,889,195 Total $ 5,908,830 $ 7,688,732 $ 5,963,358 $ 4,435,471 $ 2,733,322 $ 4,280,854 $ 8,756,455 $ 304,477 $ 40,071,499 ($ in thousands) December 31, 2020 Term Loans Revolving Loans Revolving Loans Converted to Term Loans Amortized Cost Basis Total Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Commercial: C&I: Pass $ 3,912,147 $ 1,477,740 $ 483,725 $ 245,594 $ 69,482 $ 245,615 $ 6,431,003 $ 29,487 $ 12,894,793 Criticized (accrual) 120,183 74,601 56,785 19,426 1,487 5,872 324,640 — 602,994 Criticized (nonaccrual) 2,125 25,267 22,240 18,787 4,964 1,592 58,964 — 133,939 Total C&I 4,034,455 1,577,608 562,750 283,807 75,933 253,079 6,814,607 29,487 13,631,726 CRE: CRE: Pass 2,296,649 2,402,136 2,310,748 1,328,251 732,694 1,529,681 173,267 19,064 10,792,490 Criticized (accrual) 47,459 63,654 43,447 98,259 2,094 80,662 — — 335,575 Criticized (nonaccrual) — — 42,067 1,115 — 3,364 — — 46,546 Total CRE 2,344,108 2,465,790 2,396,262 1,427,625 734,788 1,613,707 173,267 19,064 11,174,611 Multifamily residential: Pass 783,671 783,589 479,959 411,945 181,213 348,751 5,895 — 2,995,023 Criticized (accrual) — 735 22,330 6,101 264 5,877 — — 35,307 Criticized (nonaccrual) — — 1,475 — — 2,193 — — 3,668 Total multifamily residential 783,671 784,324 503,764 418,046 181,477 356,821 5,895 — 3,033,998 Construction and land: Pass 224,924 172,707 156,712 — 20,897 1,028 — — 576,268 Criticized (accrual) 3,524 — — — — 19,900 — — 23,424 Criticized (nonaccrual) — — — — — — — — — Total construction and land 228,448 172,707 156,712 — 20,897 20,928 — — 599,692 Total CRE 3,356,227 3,422,821 3,056,738 1,845,671 937,162 1,991,456 179,162 19,064 14,808,301 Total commercial 7,390,682 5,000,429 3,619,488 2,129,478 1,013,095 2,244,535 6,993,769 48,551 28,440,027 Consumer: Residential mortgage: Single-family residential: Pass (1) 2,385,853 1,813,200 1,501,660 1,021,707 523,170 921,714 — — 8,167,304 Criticized (accrual) — 1,429 — — 119 1,034 — — 2,582 Criticized (nonaccrual) (1) — 226 812 1,789 1,994 11,246 — — 16,067 Total single-family residential mortgage 2,385,853 1,814,855 1,502,472 1,023,496 525,283 933,994 — — 8,185,953 HELOCs: Pass 1,131 880 2,879 5,363 8,433 13,475 1,328,919 225,810 1,586,890 Criticized (accrual) — — 200 — 996 — 1,328 606 3,130 Criticized (nonaccrual) — 151 285 4,617 164 1,962 — 4,517 11,696 Total HELOCs 1,131 1,031 3,364 9,980 9,593 15,437 1,330,247 230,933 1,601,716 Total residential mortgage 2,386,984 1,815,886 1,505,836 1,033,476 534,876 949,431 1,330,247 230,933 9,787,669 Other consumer: Pass 9,531 — — 1,830 — 83,255 66,136 — 160,752 Criticized (accrual) 16 — — — — — — — 16 Criticized (nonaccrual) — — — 2,491 — — — — 2,491 Total other consumer 9,547 — — 4,321 — 83,255 66,136 — 163,259 Total consumer 2,396,531 1,815,886 1,505,836 1,037,797 534,876 1,032,686 1,396,383 230,933 9,950,928 Total $ 9,787,213 $ 6,816,315 $ 5,125,324 $ 3,167,275 $ 1,547,971 $ 3,277,221 $ 8,390,152 $ 279,484 $ 38,390,955 (1) As of June 30, 2021 and December 31, 2020, $647 thousand and $747 thousand of nonaccrual loans whose payments are guaranteed by the Federal Housing Administration, respectively, were classified with a “Pass” rating. |
Schedule of aging analysis of loans | The following tables present the aging analysis of total loans held-for-investment as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 13,677,054 $ 30,148 $ 34 $ 30,182 $ 83,225 $ 13,790,461 CRE: CRE 11,647,942 4,647 — 4,647 58,780 11,711,369 Multifamily residential 3,215,139 1,764 — 1,764 2,893 3,219,796 Construction and land 440,778 — — — 19,900 460,678 Total CRE 15,303,859 6,411 — 6,411 81,573 15,391,843 Total commercial 28,980,913 36,559 34 36,593 164,798 29,182,304 Consumer: Residential mortgage: Single-family residential 8,834,580 12,969 1,653 14,622 20,168 8,869,370 HELOCs 1,858,040 2,643 1,162 3,805 10,321 1,872,166 Total residential mortgage 10,692,620 15,612 2,815 18,427 30,489 10,741,536 Other consumer 144,871 265 20 285 2,503 147,659 Total consumer 10,837,491 15,877 2,835 18,712 32,992 10,889,195 Total $ 39,818,404 $ 52,436 $ 2,869 $ 55,305 $ 197,790 $ 40,071,499 ($ in thousands) December 31, 2020 Current Accruing Loans (1) Accruing Accruing Total Total Total Commercial: C&I $ 13,488,070 $ 8,993 $ 724 $ 9,717 $ 133,939 $ 13,631,726 CRE: CRE 11,127,690 375 — 375 46,546 11,174,611 Multifamily residential 3,028,512 1,818 — 1,818 3,668 3,033,998 Construction and land 579,792 19,900 — 19,900 — 599,692 Total CRE 14,735,994 22,093 — 22,093 50,214 14,808,301 Total commercial 28,224,064 31,086 724 31,810 184,153 28,440,027 Consumer: Residential mortgage: Single-family residential 8,156,645 9,911 2,583 12,494 16,814 8,185,953 HELOCs 1,583,968 2,922 3,130 6,052 11,696 1,601,716 Total residential mortgage 9,740,613 12,833 5,713 18,546 28,510 9,787,669 Other consumer 160,534 217 17 234 2,491 163,259 Total consumer 9,901,147 13,050 5,730 18,780 31,001 9,950,928 Total $ 38,125,211 $ 44,136 $ 6,454 $ 50,590 $ 215,154 $ 38,390,955 (1) As of June 30, 2021 and December 31, 2020, loans in payment deferral programs offered in response to the COVID-19 pandemic that are performing according to their modified terms are generally not considered delinquent, and are included in the “Current Accruing Loans” column. |
Schedule of amortized cost of loans on nonaccrual status with no related allowance for loan losses | The following table presents the amortized cost of loans on nonaccrual status for which there was no related allowance for loan losses as of both June 30, 2021 and December 31, 2020. Nonaccrual loans may not have an allowance for credit losses if the loss expectation is zero because the loan balances are supported by the collateral value. ($ in thousands) June 30, 2021 December 31, 2020 Commercial: C&I $ 44,110 $ 62,040 CRE: CRE 58,346 45,537 Multifamily residential 2,428 2,519 Construction and land 19,900 — Total CRE 80,674 48,056 Total commercial 124,784 110,096 Consumer: Residential mortgage: Single-family residential 8,702 6,013 HELOCs 6,871 8,076 Total residential mortgage 15,573 14,089 Other consumer — 2,491 Total consumer 15,573 16,580 Total nonaccrual loans with no related allowance for loan losses $ 140,357 $ 126,676 |
Summary of additions and post-modification to troubled debt restructurings | The following tables present the additions to TDRs for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Loans Modified as TDRs During the Three Months Ended June 30, 2021 2020 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 4 $ 20,375 $ 20,084 $ 2,162 3 $ 35,260 $ 28,926 $ 872 Total 4 $ 20,375 $ 20,084 $ 2,162 3 $ 35,260 $ 28,926 $ 872 ($ in thousands) Loans Modified as TDRs During the Six Months Ended June 30, 2021 2020 Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Number Pre- Post- Modification Outstanding Recorded Investment (1) Financial Impact (2) Commercial: C&I 5 $ 20,818 $ 20,499 $ 2,318 6 $ 51,708 $ 43,833 $ 1,000 Total 5 $ 20,818 $ 20,499 $ 2,318 6 $ 51,708 $ 43,833 $ 1,000 (1) Includes subsequent payments after modification and reflects the balance as of June 30, 2021 and 2020. (2) Includes charge-offs and specific reserves recorded since the modification date. The following tables present the TDR post-modification outstanding balances for the three and six months ended June 30, 2021 and 2020 by modification type: ($ in thousands) Modification Type During the Three Months Ended June 30, 2021 2020 Principal (1) Principal Interest Interest Rate Reduction Total Principal (1) Principal Interest Interest Rate Reduction Total Commercial: C&I $ 3,373 $ — $ — $ 16,711 $ 20,084 $ 11,766 $ — $ 17,160 $ — $ 28,926 Total $ 3,373 $ — $ — $ 16,711 $ 20,084 $ 11,766 $ — $ 17,160 $ — $ 28,926 ($ in thousands) Modification Type During the Six Months Ended June 30, 2021 2020 Principal (1) Principal Interest Interest Rate Reduction Total Principal (1) Principal and Interest (2) Interest Interest Rate Reduction Total Commercial: C&I $ 3,788 $ — $ — $ 16,711 $ 20,499 $ 15,898 $ 10,775 $ 17,160 $ — $ 43,833 Total $ 3,788 $ — $ — $ 16,711 $ 20,499 $ 15,898 $ 10,775 $ 17,160 $ — $ 43,833 (1) Includes forbearance payments, term extensions and principal deferments that modify the terms of the loan from principal and interest payments to interest payments only. (2) Includes principal and interest deferments or reductions. |
Summary of TDR loans subsequently defaulted | The following tables present information on loans for which a subsequent payment default occurred during the three and six months ended June 30, 2021 and 2020, respectively, which had been modified as TDR within the previous 12 months of their default, and which were still in default as of June 30, 2021 and 2020. ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2021 2020 Number of Recorded Number of Recorded Commercial: C&I — $ — 1 $ 17,160 Total — $ — 1 $ 17,160 ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2021 2020 Number of Recorded Number of Recorded Commercial: C&I 1 $ 11,431 1 $ 17,160 Total 1 $ 11,431 1 $ 17,160 |
Summary of activity in the allowance for credit losses | The following tables summarize the activity in the allowance for loan losses by portfolio segments for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 394,084 $ 146,399 $ 27,407 $ 19,089 $ 15,839 $ 2,670 $ 2,018 $ 607,506 (Reversal of) provision for credit losses on loans (a) (22,586) 19,375 (5,385) (3,243) 609 250 2,209 (8,771) Gross charge-offs (10,572) (4,134) (113) (209) — — (32) (15,060) Gross recoveries 1,338 322 16 6 82 18 3 1,785 Total net (charge-offs) recoveries (9,234) (3,812) (97) (203) 82 18 (29) (13,275) Foreign currency translation adjustment 264 — — — — — — 264 Allowance for loan losses, end of period $ 362,528 $ 161,962 $ 21,925 $ 15,643 $ 16,530 $ 2,938 $ 4,198 $ 585,724 ($ in thousands) Three Months Ended June 30, 2020 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 362,629 $ 132,819 $ 16,530 $ 11,018 $ 26,822 $ 3,881 $ 3,304 $ 557,003 Provision for (reversal of) credit losses on loans (a) 37,862 43,315 7,908 7,526 (1,667) 205 (849) 94,300 Gross charge-offs (20,378) (320) — — — (221) (30) (20,949) Gross recoveries 602 226 620 7 159 2 93 1,709 Total net (charge-offs) recoveries (19,776) (94) 620 7 159 (219) 63 (19,240) Foreign currency translation adjustment 8 — — — — — — 8 Allowance for loan losses, end of period $ 380,723 $ 176,040 $ 25,058 $ 18,551 $ 25,314 $ 3,867 $ 2,518 $ 632,071 ($ in thousands) Six Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 398,040 $ 163,791 $ 27,573 $ 10,239 $ 15,520 $ 2,690 $ 2,130 $ 619,983 (Reversal of) provision for credit losses on loans (a) (18,747) 9,098 (6,776) 5,349 985 272 2,096 (7,723) Gross charge-offs (19,008) (11,329) (130) (280) (134) (45) (33) (30,959) Gross recoveries 2,098 402 1,258 335 159 21 5 4,278 Total net (charge-offs) recoveries (16,910) (10,927) 1,128 55 25 (24) (28) (26,681) Foreign currency translation adjustment 145 — — — — — — 145 Allowance for loan losses, end of period $ 362,528 $ 161,962 $ 21,925 $ 15,643 $ 16,530 $ 2,938 $ 4,198 $ 585,724 ($ in thousands) Six Months Ended June 30, 2020 Commercial Consumer Total C&I CRE Residential Mortgage Other CRE Multifamily Construction Single- HELOCs Allowance for loan losses, beginning of period $ 238,376 $ 40,509 $ 22,826 $ 19,404 $ 28,527 $ 5,265 $ 3,380 $ 358,287 Impact of ASU 2016-13 adoption 74,237 72,169 (8,112) (9,889) (3,670) (1,798) 2,221 125,158 Allowance for loan losses, January 1, 2020 312,613 112,678 14,714 9,515 24,857 3,467 5,601 483,445 Provision for (reversal of) credit losses on loans (a) 98,480 54,750 9,189 9,008 33 617 (3,121) 168,956 Gross charge-offs (32,355) (1,274) — — — (221) (56) (33,906) Gross recoveries 2,177 9,886 1,155 28 424 4 94 13,768 Total net (charge-offs) recoveries (30,178) 8,612 1,155 28 424 (217) 38 (20,138) Foreign currency translation adjustment (192) — — — — — — (192) Allowance for loan losses, end of period $ 380,723 $ 176,040 $ 25,058 $ 18,551 $ 25,314 $ 3,867 $ 2,518 $ 632,071 The following table summarizes the activities in the allowance for unfunded credit commitments for the three and six months ended June 30, 2021 and 2020 : ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Unfunded credit facilities Allowance for unfunded credit commitments, beginning of period $ 32,529 $ 20,829 $ 33,577 $ 11,158 Impact of ASU 2016-13 adoption — — — 10,457 (Reversal of) provision for credit losses on unfunded credit commitments (b) (6,229) 8,143 (7,277) 7,357 Allowance for unfunded credit commitments, end of period 26,300 28,972 26,300 28,972 (Reversal of) provision for credit losses (a) + (b) $ (15,000) $ 102,443 $ (15,000) $ 176,313 |
Schedule of carrying value of loans purchased for the held-for-investment portfolio, loans sold and loans transferred from held-for-investment to held-for-sale at lower of cost or fair value | The following tables provide information about the carrying value of loans transferred, loans sold and purchased for the held-for-investment portfolio, during the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, 2021 Commercial Consumer Total C&I CRE Residential Mortgage CRE Single-Family Loans transferred from held-for-investment to held-for-sale (1) $ 84,745 $ 17,019 $ — $ 101,764 Sales (2)(3)(4) $ 84,503 $ 17,019 $ 2,658 $ 104,180 Purchases (5) $ 66,415 $ — $ 165,163 $ 231,578 ($ in thousands) Three Months Ended June 30, 2020 Commercial Consumer Total C&I CRE Residential Mortgage Multifamily Single-Family Loans transferred from held-for-investment to held-for-sale (1) $ 33,060 $ — $ — $ 33,060 Sales (2)(3)(4) $ 33,060 $ — $ 13,708 $ 46,768 Purchases (5) $ 12,503 $ 7 $ — $ 12,510 Six Months Ended June 30, 2021 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Single-Family Total Loans transferred from held-for-investment to held-for-sale (1) $ 210,585 $ 37,051 $ — $ — $ 247,636 Sales (2)(3)(4) $ 210,382 $ 37,051 $ — $ 10,164 $ 257,597 Purchases (5) $ 245,093 $ — $ 370 $ 296,963 $ 542,426 Six Months Ended June 30, 2020 Commercial Consumer CRE Residential Mortgage ($ in thousands) C&I CRE Multifamily Single-Family Total Loans transferred from held-for-investment to held-for-sale (1) $ 136,033 $ 7,250 $ — $ — $ 143,283 Sales (2)(3)(4) $ 136,033 $ 7,250 $ — $ 18,350 $ 161,633 Purchases (5) $ 143,086 $ — $ 1,520 $ 1,084 $ 145,690 (1) Includes write-downs of $1.3 million to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the three and six months ended June 30, 2021. There were no write-downs for the three and six months ended June 30, 2020. (2) Includes originated loans sold of $67.6 million and $198.6 million for the three and six months ended June 30, 2021, respectively, and $46.8 million and $161.6 million for the three and six months ended June 30, 2020, respectively. Originated loans sold consisted primarily of C&I loans during the three and six months ended June 30, 2021. In comparison, originated loans sold consisted primarily of C&I and single-family residential loans for the three and six months ended June 30, 2020. (3) Includes $36.6 million and $59.0 million of purchased loans sold in the secondary market for the three and six months ended June 30, 2021, respectively. There were no purchased loans sold in the secondary market for the three and six months ended June 30, 2020. (4) Net gains on sales of loans were $1.5 million and $3.3 million for the three and six months ended June 30, 2021, respectively, and $132 thousand and $1.1 million for the three and six months ended June 30, 2020, respectively. (5) C&I loan purchases were comprised primarily of syndicated C&I term loans. |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [Abstract] | |
Schedule of investments in qualified affordable housing partnerships, net and related unfunded commitments | The following table presents the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Investments in qualified affordable housing partnerships, net $ 287,432 $ 213,555 Accrued expenses and other liabilities — Unfunded commitments $ 136,571 $ 77,444 |
Schedule of additional information related to investments in qualified affordable housing partnerships, net | The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Tax credits and other tax benefits recognized $ 10,052 $ 11,772 $ 21,080 $ 22,803 Amortization expense included in income tax expense $ 7,736 $ 9,148 $ 16,448 $ 17,532 |
Schedule of investment in tax credit and other investments, net and related unfunded commitments | The following table presents the Company’s investments in tax credit and other investments, net, and related unfunded commitments as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Investments in tax credit and other investments, net $ 364,187 $ 266,525 Accrued expenses and other liabilities — Unfunded commitments $ 195,631 $ 105,282 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying amount of core deposit intangible assets and accumulated amortization | The following table presents the gross carrying amount of core deposit intangible assets and accumulated amortization as of June 30, 2021 and December 31, 2020: ($ in thousands) June 30, 2021 December 31, 2020 Gross balance (1) $ 86,099 $ 86,099 Accumulated amortization (1) (81,164) (79,722) Net carrying balance (1) $ 4,935 $ 6,377 (1) Excludes fully amortized core deposit intangible assets. |
Schedule of estimated future amortization expense of core deposit intangibles | The following table presents the estimated future amortization expense of core deposit intangibles as of June 30, 2021: ($ in thousands) Amount Remainder of 2021 $ 1,308 2022 1,864 2023 1,199 2024 553 2025 11 Total $ 4,935 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of credit-related commitments | The following table presents the Company’s credit-related commitments as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Expire After Five Years Total Total Loan commitments $ 3,051,435 $ 2,044,785 $ 621,980 $ 170,089 $ 5,888,289 $ 5,690,847 Commercial letters of credit and SBLCs 1,195,372 351,903 170,148 535,953 2,253,376 2,240,813 Total $ 4,246,807 $ 2,396,688 $ 792,128 $ 706,042 $ 8,141,665 $ 7,931,660 |
Schedule of guarantees outstanding | The following table presents the carrying amounts of loans sold or securitized with recourse and the maximum potential future payments as of June 30, 2021 and December 31, 2020: Maximum Potential Future Payments Carrying Value June 30, 2021 December 31, 2020 June 30, December 31, 2020 ($ in thousands) Expire in One Year or Less Expire After One Year Through Three Years Expire After Three Years Through Expire After Five Years Total Total Total Total Single-family residential loans sold or securitized with recourse $ 41 $ 396 $ 208 $ 8,766 $ 9,411 $ 10,526 $ 9,411 $ 10,526 Multi-family residential loans sold or securitized with recourse — 193 — 14,996 15,189 15,672 24,562 26,619 Total $ 41 $ 589 $ 208 $ 23,762 $ 24,600 $ 26,198 $ 33,973 $ 37,145 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of stock compensation expense and related net tax benefit | The following table presents a summary of the total share-based compensation expense and the related net tax benefits (deficiencies) associated with the Company’s various employee share-based compensation plans for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock compensation costs $ 8,208 $ 7,071 $ 16,025 $ 14,280 Related net tax benefits (deficiencies) for stock compensation plans $ 37 $ (9) $ 1,657 $ (1,575) |
Summary of activity for time-based and performance-based restricted stock units | The following table presents a summary of the activities for the Company’s time-based and performance-based RSUs that will be settled in shares for the six months ended June 30, 2021. The number of performance-based RSUs stated below reflects the number of awards granted on the grant date. Time-Based RSUs Performance-Based RSUs Shares Weighted-Average Shares Weighted-Average Outstanding, January 1, 2021 1,345,635 $ 50.22 398,057 $ 53.66 Granted 382,359 71.41 91,960 77.67 Vested (285,513) 67.26 (120,286) 70.13 Forfeited (65,648) 56.26 — — Outstanding, June 30, 2021 1,376,833 $ 52.28 369,731 $ 54.28 |
Summary of time-based RUS's that will be settled in cash | The following table presents a summary of the activities for the Company’s time-based RSUs that will be vested in cash for the six months ended June 30, 2021: Shares Outstanding, January 1, 2021 21,802 Granted 15,803 Vested — Forfeited (8,432) Outstanding, June 30, 2021 29,173 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Stockholders' Equity and Earnings Per Share [Abstract] | |
Schedule of earnings per share calculations | The following table presents the basic and diluted EPS calculations for the three and six months ended June 30, 2021 and 2020. For more information on the calculation of EPS, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Earnings Per Share to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. ($ and shares in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic: Net income $ 224,742 $ 99,352 $ 429,736 $ 244,176 Basic weighted-average number of shares outstanding 141,868 141,486 141,758 143,150 Basic EPS $ 1.58 $ 0.70 $ 3.03 $ 1.71 Diluted: Net income $ 224,742 $ 99,352 $ 429,736 $ 244,176 Basic weighted-average number of shares outstanding 141,868 141,486 141,758 143,150 Diluted potential common shares (1) 1,172 341 1,205 410 Diluted weighted-average number of shares outstanding (1) 143,040 141,827 142,963 143,560 Diluted EPS $ 1.57 $ 0.70 $ 3.01 $ 1.70 (1) Includes dilutive shares from RSUs for the three and six months ended June 30, 2021 and 2020. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of the changes in components of accumulated other comprehensive income (loss) balances | The following table presents the changes in the components of AOCI balances for the three and six months ended June 30, 2021 and 2020: ($ in thousands) AFS Cash Foreign Currency Translation Adjustments (1) Total Balance, April 1, 2020 $ 25,034 $ — $ (18,153) $ 6,881 Net unrealized gains (losses) arising during the period 24,606 (1,063) (230) 23,313 Amounts reclassified from AOCI (6,790) (270) — (7,060) Changes, net of tax 17,816 (1,333) (230) 16,253 Balance, June 30, 2020 $ 42,850 $ (1,333) $ (18,383) $ 23,134 Balance, April 1, 2021 $ (81,201) $ (798) $ (8,041) $ (90,040) Net unrealized gains (losses) arising during the period 73,494 (76) 2,234 75,652 Amounts reclassified from AOCI (445) 144 — (301) Changes, net of tax 73,049 68 2,234 75,351 Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) ($ in thousands) AFS Cash Foreign Currency Translation Adjustments (1) Total Balance, January 1, 2020 $ (2,419) $ — $ (15,989) $ (18,408) Net unrealized gains (losses) arising during the period 53,136 (1,063) (2,394) 49,679 Amounts reclassified from AOCI (7,867) (270) — (8,137) Changes, net of tax 45,269 (1,333) (2,394) 41,542 Balance, June 30, 2020 $ 42,850 $ (1,333) $ (18,383) $ 23,134 Balance, January 1, 2021 $ 52,247 $ (1,230) $ (6,692) $ 44,325 Net unrealized (losses) gains arising during the period (59,819) 229 885 (58,705) Amounts reclassified from AOCI (580) 271 — (309) Changes, net of tax (60,399) 500 885 (59,014) Balance, June 30, 2021 $ (8,152) $ (730) $ (5,807) $ (14,689) (1) Represents foreign currency translation adjustments related to the Company’s net investment in non-U.S. operations, including related hedges. The functional currency and reporting currency of the Company’s foreign subsidiary was RMB and USD, respectively. |
Schedule of components of other comprehensive income (loss), reclassifications to net income and the related tax effects | The following table presents the components of other comprehensive income (loss), reclassifications to net income and the related tax effects for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Three Months Ended June 30, 2021 2020 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax AFS debt securities: Net unrealized gains arising during the period $ 104,283 $ (30,789) $ 73,494 $ 34,970 $ (10,364) $ 24,606 Net realized (gains) reclassified into net income (1) (632) 187 (445) (9,640) 2,850 (6,790) Net change 103,651 (30,602) 73,049 25,330 (7,514) 17,816 Cash flow hedges: Net unrealized losses arising during the period (106) 30 (76) (1,483) 420 (1,063) Net realized losses (gains) reclassified into net income (2) 201 (57) 144 (377) 107 (270) Net change 95 (27) 68 (1,860) 527 (1,333) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 1,584 650 2,234 (379) 149 (230) Net change 1,584 650 2,234 (379) 149 (230) Other comprehensive income $ 105,330 $ (29,979) $ 75,351 $ 23,091 $ (6,838) $ 16,253 ($ in thousands) Six Months Ended June 30, 2021 2020 Before-Tax Tax Effect Net-of-Tax Before-Tax Tax Effect Net-of-Tax AFS debt securities: Net unrealized (losses) gains arising during the period $ (84,993) $ 25,174 $ (59,819) $ 75,463 $ (22,327) $ 53,136 Net realized (gains) reclassified into net income (1) (824) 244 (580) (11,169) 3,302 (7,867) Net change (85,817) 25,418 (60,399) 64,294 (19,025) 45,269 Cash flow hedges: Net unrealized gains (losses) arising during the period 320 (91) $ 229 (1,483) 420 (1,063) Net realized losses (gains) reclassified into net income (2) 378 (107) 271 (377) 107 (270) Net change 698 (198) 500 (1,860) 527 (1,333) Foreign currency translation adjustments, net of hedges: Net unrealized gains (losses) arising during the period 275 610 885 (2,145) (249) (2,394) Net change 275 610 885 (2,145) (249) (2,394) Other comprehensive (loss) income $ (84,844) $ 25,830 $ (59,014) $ 60,289 $ (18,747) $ 41,542 (1) For the three and six months ended June 30, 2021 and 2020, pre-tax amounts were reported in Gains on sales of AFS debt securities on the Consolidated Statement of Income. (2) For the three and six months ended June 30, 2021 and 2020, pre-tax amounts were reported in Interest expense on the Consolidated Statement of Income. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of operating results and other key financial measures for the individual operating segments | The following tables present the operating results and other key financial measures for the individual operating segments as of and for the three and six months ended June 30, 2021 and 2020: ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2021 Net interest income before provision for (reversal of) credit losses $ 173,775 $ 192,696 $ 10,002 $ 376,473 Provision for (reversal of) credit losses 2,358 (17,358) — (15,000) Noninterest income 24,454 32,552 11,425 68,431 Noninterest expense 87,650 64,164 37,709 189,523 Segment income (loss) before income taxes 108,221 178,442 (16,282) 270,381 Segment net income $ 77,517 $ 127,785 $ 19,440 $ 224,742 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 ($ in thousands) Consumer and Commercial Other Total Three Months Ended June 30, 2020 Net interest income before provision for credit losses $ 124,926 $ 183,796 $ 35,053 $ 343,775 Provision for credit losses 5,590 96,853 — 102,443 Noninterest income 13,943 33,887 7,877 55,707 Noninterest expense 80,164 64,900 39,702 184,766 Segment income before income taxes 53,115 55,930 3,228 112,273 Segment net income $ 38,058 $ 40,178 $ 21,116 $ 99,352 As of June 30, 2020 Segment assets $ 12,666,938 $ 26,984,013 $ 9,756,642 $ 49,407,593 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2021 Net interest income before reversal of credit losses $ 323,674 $ 369,788 $ 36,706 $ 730,168 Reversal of credit losses (1,891) (13,109) — (15,000) Noninterest income 45,282 82,562 13,453 141,297 Noninterest expense 176,936 133,421 70,243 380,600 Segment income (loss) before income taxes 193,911 332,038 (20,084) 505,865 Segment net income $ 138,895 $ 237,865 $ 52,976 $ 429,736 As of June 30, 2021 Segment assets $ 14,594,087 $ 27,354,253 $ 17,906,536 $ 59,854,876 ($ in thousands) Consumer and Commercial Other Total Six Months Ended June 30, 2020 Net interest income before provision for credit losses $ 277,517 $ 367,297 $ 61,668 $ 706,482 Provision for credit losses 13,378 162,935 — 176,313 Noninterest income 30,345 66,343 14,525 111,213 Noninterest expense 167,128 135,026 62,945 365,099 Segment income before income taxes 127,356 135,679 13,248 276,283 Segment net income $ 91,253 $ 97,309 $ 55,614 $ 244,176 As of June 30, 2020 Segment assets $ 12,666,938 $ 26,984,013 $ 9,756,642 $ 49,407,593 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2021trust |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned subsidiaries that are statutory business trusts (the Trusts) | 6 |
Fair Value Measurement and Fa_3
Fair Value Measurement and Fair Value of Financial Instruments (Financial Assets and Liabilities Measurement on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-sale debt securities | ||
Fair Value | $ 8,399,460 | $ 5,544,658 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Total investments in tax credit and other investments | 364,187 | 266,525 |
Derivative | ||
Derivative assets - Fair value | 588,582 | 602,754 |
Net derivative assets | 495,491 | 501,242 |
Derivative liabilities - Fair value | 448,921 | 424,828 |
Net derivative liabilities | 195,612 | 240,131 |
U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 836,940 | 50,761 |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,224,511 | 814,319 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,188,640 | 1,153,770 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 2,368,552 | 1,660,894 |
Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 454,923 | 396,073 |
Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 364,172 | 239,842 |
Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 772,474 | 289,775 |
Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 552,715 | 405,968 |
Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 283,175 | 182,531 |
Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 61,829 | 63,231 |
Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 291,529 | 287,494 |
Fair Value, Measurements, Recurring | ||
Available-for-sale debt securities | ||
Fair Value | 8,399,460 | 5,544,658 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 26,819 | 31,272 |
Total investments in tax credit and other investments | 26,819 | 31,272 |
Derivative | ||
Derivative assets - Fair value | 588,582 | 602,754 |
Netting adjustments | (93,091) | (101,512) |
Net derivative assets | 495,491 | 501,242 |
Derivative liabilities - Fair value | 448,921 | 424,828 |
Netting adjustments | (253,309) | (184,697) |
Net derivative liabilities | 195,612 | 240,131 |
Fair Value, Measurements, Recurring | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 329,953 | 489,132 |
Derivative liabilities - Fair value | 228,952 | 317,698 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 29,867 | 30,300 |
Derivative liabilities - Fair value | 20,555 | 22,759 |
Fair Value, Measurements, Recurring | Credit contracts | ||
Derivative | ||
Derivative assets - Fair value | 3 | 13 |
Derivative liabilities - Fair value | 87 | 206 |
Fair Value, Measurements, Recurring | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 223 | 858 |
Fair Value, Measurements, Recurring | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 228,536 | 82,451 |
Derivative liabilities - Fair value | 199,327 | 84,165 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 836,940 | 50,761 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,224,511 | 814,319 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,188,640 | 1,153,770 |
Fair Value, Measurements, Recurring | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 2,368,552 | 1,660,894 |
Fair Value, Measurements, Recurring | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 454,923 | 396,073 |
Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 364,172 | 239,842 |
Fair Value, Measurements, Recurring | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 772,474 | 289,775 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 552,715 | 405,968 |
Fair Value, Measurements, Recurring | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 283,175 | 182,531 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 61,829 | 63,231 |
Fair Value, Measurements, Recurring | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 291,529 | 287,494 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Available-for-sale debt securities | ||
Fair Value | 836,940 | 50,761 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 22,345 | 22,548 |
Total investments in tax credit and other investments | 22,345 | 22,548 |
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Netting adjustments | 0 | 0 |
Net derivative assets | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Netting adjustments | 0 | 0 |
Net derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 836,940 | 50,761 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Available-for-sale debt securities | ||
Fair Value | 7,562,520 | 5,493,897 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 4,474 | 8,724 |
Total investments in tax credit and other investments | 4,474 | 8,724 |
Derivative | ||
Derivative assets - Fair value | 588,359 | 602,481 |
Netting adjustments | (93,091) | (101,512) |
Net derivative assets | 495,268 | 500,969 |
Derivative liabilities - Fair value | 448,921 | 424,828 |
Netting adjustments | (253,309) | (184,697) |
Net derivative liabilities | 195,612 | 240,131 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 329,953 | 489,132 |
Derivative liabilities - Fair value | 228,952 | 317,698 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 29,867 | 30,300 |
Derivative liabilities - Fair value | 20,555 | 22,759 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Credit contracts | ||
Derivative | ||
Derivative assets - Fair value | 3 | 13 |
Derivative liabilities - Fair value | 87 | 206 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 585 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 228,536 | 82,451 |
Derivative liabilities - Fair value | 199,327 | 84,165 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,224,511 | 814,319 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 1,188,640 | 1,153,770 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 2,368,552 | 1,660,894 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 454,923 | 396,073 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 364,172 | 239,842 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 772,474 | 289,775 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 552,715 | 405,968 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 283,175 | 182,531 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 61,829 | 63,231 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | 291,529 | 287,494 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Equity Securities, FV-NI and with Readily Determinable Fair Value [Abstract] | ||
Equity securities | 0 | 0 |
Total investments in tax credit and other investments | 0 | 0 |
Derivative | ||
Derivative assets - Fair value | 223 | 273 |
Netting adjustments | 0 | 0 |
Net derivative assets | 223 | 273 |
Derivative liabilities - Fair value | 0 | 0 |
Netting adjustments | 0 | 0 |
Net derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Credit contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity contracts | ||
Derivative | ||
Derivative assets - Fair value | 223 | 273 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative | ||
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency commercial mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency residential mortgage-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign government bonds | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Asset-backed securities | ||
Available-for-sale debt securities | ||
Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Collateralized loan obligations (“CLOs”) | ||
Available-for-sale debt securities | ||
Fair Value | $ 0 | $ 0 |
Fair Value Measurement and Fa_4
Fair Value Measurement and Fair Value of Financial Instruments (Reconciliation of Assets and Liabilities Measured on Recurring Basis) (Details) - Equity contracts - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lending fees | ||||
Reconciliation of the beginning and ending balances for warrants issued by private companies measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||||
Total unrealized (losses) gains for the period included in earnings | $ (27) | $ 8,000 | $ (29) | $ 8,300 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Reconciliation of the beginning and ending balances for warrants issued by private companies measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ||||
Beginning balance | 272 | 713 | 273 | 421 |
Total (losses) gains included in earnings | 47 | 7,976 | 46 | 8,268 |
Settlements | (96) | 0 | (96) | 0 |
Transfers out of Level 3 | 0 | (8,373) | 0 | (8,373) |
Ending balance | $ 223 | $ 316 | $ 223 | $ 316 |
Fair Value Measurement and Fa_5
Fair Value Measurement and Fair Value of Financial Instruments (Quantitative Information for Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Quantitative information | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | 588,582 | 602,754 |
Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 175,069 | 189,862 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | 223 | 273 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 175,069 | 189,862 |
Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 96,038 | 104,783 |
Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 13,638 | 22,207 |
Significant Unobservable Inputs (Level 3) | Fair value of property, selling cost | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 65,393 | 46,993 |
Significant Unobservable Inputs (Level 3) | Fair value of collateral, contract value | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Loans held-for-investment, fair value disclosure | 15,879 | |
OREO | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Assets, fair value disclosure | 14,914 | 15,824 |
OREO | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Assets, fair value disclosure | 14,914 | 15,824 |
OREO | Significant Unobservable Inputs (Level 3) | Fair value of property, selling cost | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Assets, fair value disclosure | 14,914 | 15,824 |
Investments in tax credit and other investments, net | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Assets, fair value disclosure | 3,140 | |
Investments in tax credit and other investments, net | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Assets, fair value disclosure | 3,140 | |
Investments in tax credit and other investments, net | Significant Unobservable Inputs (Level 3) | Individual analysis of each investment, expected future tax benefits and distributions | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
Assets, fair value disclosure | 3,140 | |
Equity contracts | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | 223 | 858 |
Equity contracts | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Derivative assets - Fair value | $ 223 | $ 273 |
Equity volatility | Equity contracts | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Weighted Average | ||
Quantitative information | ||
Measurement input | 47.00% | 53.00% |
Equity volatility | Equity contracts | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Minimum | ||
Quantitative information | ||
Measurement input | 41.00% | 46.00% |
Equity volatility | Equity contracts | Significant Unobservable Inputs (Level 3) | Black-Scholes option pricing model | Fair Value, Measurements, Recurring | Maximum | ||
Quantitative information | ||
Measurement input | 53.00% | 61.00% |
Liquidity discount | Equity contracts | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Quantitative information | ||
Measurement input | 47.00% | 47.00% |
Liquidity discount | Equity contracts | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | Weighted Average | ||
Quantitative information | ||
Measurement input | 47.00% | 47.00% |
Discount | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 9.00% | 11.00% |
Discount | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 4.00% | 3.00% |
Discount | Significant Unobservable Inputs (Level 3) | Discounted cash flows | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 20.00% | 15.00% |
Discount | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 34.00% | 15.00% |
Discount | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 20.00% | 10.00% |
Discount | Significant Unobservable Inputs (Level 3) | Fair value of collateral, discount | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 40.00% | 26.00% |
Selling cost | Significant Unobservable Inputs (Level 3) | Fair value of property, selling cost | Fair Value, Measurements, Nonrecurring | ||
Quantitative information | ||
OREO, measurement input | 0.08 | 0.08 |
Selling cost | Significant Unobservable Inputs (Level 3) | Fair value of property, selling cost | Fair Value, Measurements, Nonrecurring | Weighted Average | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 8.00% | 10.00% |
OREO, measurement input | 0.08 | 0.08 |
Selling cost | Significant Unobservable Inputs (Level 3) | Fair value of property, selling cost | Fair Value, Measurements, Nonrecurring | Minimum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 7.00% | 7.00% |
Selling cost | Significant Unobservable Inputs (Level 3) | Fair value of property, selling cost | Fair Value, Measurements, Nonrecurring | Maximum | ||
Quantitative information | ||
Loans held-for-investment, measurement input | 8.00% | 26.00% |
Fair Value Measurement and Fa_6
Fair Value Measurement and Fair Value of Financial Instruments (Carrying Amounts of Assets That Were Still Held and Had Fair Value Changes Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | $ 175,069 | $ 189,862 |
Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 170,339 | 186,225 |
Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 4,730 | 3,637 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 175,069 | 189,862 |
Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 170,339 | 186,225 |
Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 4,730 | 3,637 |
Investments in tax credit and other investments, net | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 3,140 | |
Investments in tax credit and other investments, net | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 0 | |
Investments in tax credit and other investments, net | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 0 | |
Investments in tax credit and other investments, net | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 3,140 | |
OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 14,914 | 15,824 |
OREO | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 0 | 0 |
OREO | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 0 | 0 |
OREO | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Assets, fair value disclosure | 14,914 | 15,824 |
Commercial and industrial (“C&I”) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 110,211 | 143,331 |
Commercial and industrial (“C&I”) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial and industrial (“C&I”) | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial and industrial (“C&I”) | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 110,211 | 143,331 |
Commercial real estate (“CRE”) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 53,509 | 42,894 |
Commercial real estate (“CRE”) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial real estate (“CRE”) | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
Commercial real estate (“CRE”) | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 53,509 | 42,894 |
Multifamily residential | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 2,428 | |
Multifamily residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Multifamily residential | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Multifamily residential | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 2,428 | |
Construction and land | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 4,191 | |
Construction and land | Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Construction and land | Significant Other Observable Inputs (Level 2) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Construction and land | Significant Unobservable Inputs (Level 3) | Commercial lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 4,191 | |
Single Family Residential | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,125 | |
Single Family Residential | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Single Family Residential | Significant Other Observable Inputs (Level 2) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Single Family Residential | Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 1,125 | |
HELOCs | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 3,605 | 1,146 |
HELOCs | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
HELOCs | Significant Other Observable Inputs (Level 2) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | 0 |
HELOCs | Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | $ 3,605 | 1,146 |
Other consumer | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 2,491 | |
Other consumer | Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Other consumer | Significant Other Observable Inputs (Level 2) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | 0 | |
Other consumer | Significant Unobservable Inputs (Level 3) | Consumer lending | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-investment, fair value disclosure | $ 2,491 |
Fair Value Measurement and Fa_7
Fair Value Measurement and Fair Value of Financial Instruments (Increase (Decrease) in Fair Value of Assets Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | $ (9,432) | $ (9,181) | $ (25,674) | $ (28,414) |
Investments in tax credit and other investments, net | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 877 | (733) | 877 | (583) |
Other nonperforming assets | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | 0 | (3,890) | 0 |
OREO | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (910) | 0 | (910) | 0 |
Commercial lending | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (6,944) | (9,117) | (23,152) | (30,648) |
Commercial lending | Commercial and industrial (“C&I”) | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (6,462) | (8,846) | (15,530) | (30,372) |
Commercial lending | Commercial real estate (“CRE”) | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (275) | (271) | (7,336) | (276) |
Commercial lending | Multifamily residential | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 2 | 0 | (6) | 0 |
Commercial lending | Construction and land | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (209) | 0 | (280) | 0 |
Consumer lending | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | (2,488) | (64) | (2,522) | 2,234 |
Consumer lending | Single Family Residential | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 0 | 0 | (8) | 0 |
Consumer lending | HELOCs | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | 3 | (64) | (23) | (257) |
Consumer lending | Other consumer | Loans held-for-investment | ||||
Fair Value, Assets Measured on a Nonrecurring Basis | ||||
Increase (decrease) in value of assets | $ (2,491) | $ 0 | $ (2,491) | $ 2,491 |
Fair Value Measurement and Fa_8
Fair Value Measurement and Fair Value of Financial Instruments (Carrying and Fair Value Estimates per the Fair Value Hierarchy of Financial Instruments Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Cash and cash equivalents | $ 5,997,805 | $ 4,017,971 |
Interest-bearing deposits with banks | 830,279 | 809,728 |
Resale agreements | 2,299,184 | 1,460,000 |
Restricted equity securities, at cost | 76,931 | 83,046 |
Loans held-for-sale | 1,800 | |
Loans held-for-investment, net | 39,485,775 | 37,770,972 |
Financial liabilities: | ||
FHLB advances | 248,464 | 652,612 |
Repurchase agreements | 300,000 | 300,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 5,997,805 | 4,017,971 |
Interest-bearing deposits with banks | 830,279 | 809,728 |
Resale agreements | 2,299,184 | 1,460,000 |
Restricted equity securities, at cost | 76,931 | 83,046 |
Loans held-for-sale | 1,819 | 1,788 |
Loans held-for-investment, net | 39,485,775 | 37,770,972 |
Mortgage servicing rights | 5,373 | 5,522 |
Accrued interest receivable | 154,810 | 150,140 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 44,151,817 | 35,862,403 |
Time deposits | 8,430,758 | 9,000,349 |
Short-term borrowings | 21,009 | |
FHLB advances | 248,464 | 652,612 |
Repurchase agreements | 300,000 | 300,000 |
Long-term debt | 147,515 | 147,376 |
Accrued interest payable | 10,279 | 11,956 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 5,997,805 | 4,017,971 |
Interest-bearing deposits with banks | 830,279 | 809,728 |
Resale agreements | 2,290,097 | 1,464,635 |
Restricted equity securities, at cost | 76,931 | 83,046 |
Loans held-for-sale | 1,819 | 1,788 |
Loans held-for-investment, net | 39,414,107 | 37,803,940 |
Mortgage servicing rights | 8,788 | 8,435 |
Accrued interest receivable | 154,810 | 150,140 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 44,151,817 | 35,862,403 |
Time deposits | 8,442,834 | 9,016,884 |
Short-term borrowings | 21,009 | |
FHLB advances | 250,871 | 659,631 |
Repurchase agreements | 314,315 | 317,850 |
Long-term debt | 150,232 | 150,131 |
Accrued interest payable | 10,279 | 11,956 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 5,997,805 | 4,017,971 |
Interest-bearing deposits with banks | 0 | 0 |
Resale agreements | 0 | 0 |
Restricted equity securities, at cost | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits with banks | 830,279 | 809,728 |
Resale agreements | 2,290,097 | 1,464,635 |
Restricted equity securities, at cost | 76,931 | 83,046 |
Loans held-for-sale | 1,819 | 1,788 |
Loans held-for-investment, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Accrued interest receivable | 154,810 | 150,140 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 44,151,817 | 35,862,403 |
Time deposits | 8,442,834 | 9,016,884 |
Short-term borrowings | 21,009 | |
FHLB advances | 250,871 | 659,631 |
Repurchase agreements | 314,315 | 317,850 |
Long-term debt | 150,232 | 150,131 |
Accrued interest payable | 10,279 | 11,956 |
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Interest-bearing deposits with banks | 0 | 0 |
Resale agreements | 0 | 0 |
Restricted equity securities, at cost | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans held-for-investment, net | 39,414,107 | 37,803,940 |
Mortgage servicing rights | 8,788 | 8,435 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Demand, checking, savings and money market deposits | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | $ 0 | $ 0 |
Assets Purchased under Resale_3
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements (Resale Agreements and Repurchase Agreements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Resale agreements | |||||
Gross resale agreements | $ 1,310,000 | $ 1,310,000 | $ 1,160,000 | ||
Loans purchased under agreements to resell, increase | 989,200 | 989,200 | 300,000 | ||
Repurchase agreements | |||||
Gross repurchase agreements | $ 300,000 | $ 300,000 | $ 300,000 | ||
Weighted average interest rates | 2.63% | 3.40% | 2.65% | 3.76% | |
Securities Purchased Under Resale Agreements | |||||
Resale agreements | |||||
Weighted-average yields | 1.54% | 2.14% | 1.55% | 2.32% | |
Loans Purchased Under Resale Agreements | |||||
Resale agreements | |||||
Weighted-average yields | 1.47% | 1.64% |
Assets Purchased under Resale_4
Assets Purchased under Resale Agreements and Sold under Repurchase Agreements (Balance Sheet Offsetting) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets, Resale Agreements | ||
Gross Amounts of Recognized Assets | $ 2,299,184 | $ 1,460,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Assets Purchased under Agreements to Resell Gross Amounts Not Offset [Abstract] | ||
Collateral Received | (2,285,058) | (1,458,700) |
Net Amount | 14,126 | 1,300 |
Liabilities, Repurchase Agreements | ||
Gross Amounts of Recognized Liabilities | 300,000 | 300,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheet | 300,000 | 300,000 |
Assets Sold under Agreements to Repurchase Gross Amounts Not Offset [Abstract] | ||
Collateral Pledged | (300,000) | (300,000) |
Net Amount | 0 | 0 |
Assets purchased under resale agreements (“resale agreements”) | $ 2,299,184 | $ 1,460,000 |
Securities (Schedule of Availab
Securities (Schedule of Available-for-sale Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | $ 8,411,142 | $ 5,470,523 |
Gross Unrealized Gains | 77,109 | 96,596 |
Gross Unrealized Losses | (88,791) | (22,461) |
Fair Value | 8,399,460 | 5,544,658 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 841,890 | 50,310 |
Gross Unrealized Gains | 1,148 | 451 |
Gross Unrealized Losses | (6,098) | 0 |
Fair Value | 836,940 | 50,761 |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 1,237,278 | 806,814 |
Gross Unrealized Gains | 5,835 | 8,765 |
Gross Unrealized Losses | (18,602) | (1,260) |
Fair Value | 1,224,511 | 814,319 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 1,177,949 | 1,125,174 |
Gross Unrealized Gains | 23,374 | 34,306 |
Gross Unrealized Losses | (12,683) | (5,710) |
Fair Value | 1,188,640 | 1,153,770 |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 2,375,536 | 1,634,553 |
Gross Unrealized Gains | 18,186 | 27,952 |
Gross Unrealized Losses | (25,170) | (1,611) |
Fair Value | 2,368,552 | 1,660,894 |
Municipal securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 445,028 | 382,573 |
Gross Unrealized Gains | 11,532 | 13,588 |
Gross Unrealized Losses | (1,637) | (88) |
Fair Value | 454,923 | 396,073 |
Non-agency commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 360,704 | 234,965 |
Gross Unrealized Gains | 5,282 | 6,107 |
Gross Unrealized Losses | (1,814) | (1,230) |
Fair Value | 364,172 | 239,842 |
Non-agency residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 772,382 | 288,520 |
Gross Unrealized Gains | 2,308 | 1,761 |
Gross Unrealized Losses | (2,216) | (506) |
Fair Value | 772,474 | 289,775 |
Corporate debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 558,295 | 406,323 |
Gross Unrealized Gains | 8,597 | 3,493 |
Gross Unrealized Losses | (14,177) | (3,848) |
Fair Value | 552,715 | 405,968 |
Foreign government bonds | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 286,579 | 183,828 |
Gross Unrealized Gains | 512 | 163 |
Gross Unrealized Losses | (3,916) | (1,460) |
Fair Value | 283,175 | 182,531 |
Asset-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 61,501 | 63,463 |
Gross Unrealized Gains | 335 | 10 |
Gross Unrealized Losses | (7) | (242) |
Fair Value | 61,829 | 63,231 |
Collateralized loan obligations (“CLOs”) | ||
Schedule of Available-for-sale Debt Securities | ||
Amortized Cost | 294,000 | 294,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,471) | (6,506) |
Fair Value | $ 291,529 | $ 287,494 |
Securities (Continuous Unrealiz
Securities (Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | $ 4,169,504 | $ 1,519,603 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (80,246) | (15,456) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 509,227 | 342,859 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (8,545) | (7,005) |
Available-for-sale debt securities fair value, Total | 4,678,731 | 1,862,462 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (88,791) | (22,461) |
U.S. Treasury securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 544,599 | 352,521 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (6,098) | (1,260) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 0 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | 0 | 0 |
Available-for-sale debt securities fair value, Total | 544,599 | 352,521 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (6,098) | (1,260) |
U.S. government agency and U.S. government-sponsored enterprise debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 782,327 | |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (17,402) | |
Available-for-sale debt securities, 12 Months or More, Fair Value | 23,776 | |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (1,200) | |
Available-for-sale debt securities fair value, Total | 806,103 | |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (18,602) | |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 491,515 | 292,596 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (11,487) | (5,656) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 28,399 | 3,543 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (1,196) | (54) |
Available-for-sale debt securities fair value, Total | 519,914 | 296,139 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (12,683) | (5,710) |
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 1,346,061 | 342,561 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (25,170) | (1,611) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 0 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | 0 | 0 |
Available-for-sale debt securities fair value, Total | 1,346,061 | 342,561 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (25,170) | (1,611) |
Municipal securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 108,695 | 24,529 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (1,637) | (88) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 0 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | 0 | 0 |
Available-for-sale debt securities fair value, Total | 108,695 | 24,529 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (1,637) | (88) |
Non-agency commercial mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 102,043 | 58,738 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (1,806) | (1,230) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 15,579 | 7,920 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (8) | 0 |
Available-for-sale debt securities fair value, Total | 117,622 | 66,658 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (1,814) | (1,230) |
Non-agency residential mortgage-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 464,404 | 90,156 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (2,216) | (506) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 0 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | 0 | 0 |
Available-for-sale debt securities fair value, Total | 464,404 | 90,156 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (2,216) | (506) |
Corporate debt securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 254,723 | 251,674 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (11,277) | (3,645) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 57,100 | 9,798 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (2,900) | (203) |
Available-for-sale debt securities fair value, Total | 311,823 | 261,472 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (14,177) | (3,848) |
Foreign government bonds | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 59,189 | 106,828 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (3,146) | (1,460) |
Available-for-sale debt securities, 12 Months or More, Fair Value | 92,844 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (770) | 0 |
Available-for-sale debt securities fair value, Total | 152,033 | 106,828 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (3,916) | (1,460) |
Asset-backed securities | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 15,948 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | (7) | 0 |
Available-for-sale debt securities, 12 Months or More, Fair Value | 0 | 34,104 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | 0 | (242) |
Available-for-sale debt securities fair value, Total | 15,948 | 34,104 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | (7) | (242) |
Collateralized loan obligations (“CLOs”) | ||
Schedule of Available-for-sale Debt Securities | ||
Available-for-sale debt securities, Less than 12 Months, Fair Value | 0 | 0 |
Available-for-sale debt securities, Gross Unrealized Loss, Less than 12 Months | 0 | 0 |
Available-for-sale debt securities, 12 Months or More, Fair Value | 291,529 | 287,494 |
Available-for-sale debt securities, Gross Unrealized Loss, 12 Months or More | (2,471) | (6,506) |
Available-for-sale debt securities fair value, Total | 291,529 | 287,494 |
Available-for-sale debt securities, Gross Unrealized Loss, Total | $ (2,471) | $ (6,506) |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Unrealized Loss | |||||
Number of available-for-sale debt securities in an unrealized loss position | security | 253 | 253 | 104 | ||
Available-for-sale debt securities, in gross unrealized loss position | $ 0 | $ 0 | |||
Debt Securities, AFS, allowance for credit loss | $ 0 | 0 | $ 0 | ||
(Reversal of) provision for credit losses | (15,000,000) | $ 102,443,000 | (15,000,000) | $ 176,313,000 | |
AFS debt securities | |||||
Unrealized Loss | |||||
(Reversal of) provision for credit losses | $ 0 | $ 0 | $ 0 | $ 0 | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | |||||
Unrealized Loss | |||||
Number of available-for-sale debt securities in an unrealized loss position | security | 102 | 102 | 46 | ||
U.S. government-sponsored enterprises debt securities | |||||
Unrealized Loss | |||||
Number of available-for-sale debt securities in an unrealized loss position | security | 34 | 34 | |||
Corporate debt securities | |||||
Unrealized Loss | |||||
Number of available-for-sale debt securities in an unrealized loss position | security | 18 | 18 | 17 | ||
AFS debt securities | |||||
Unrealized Loss | |||||
Excluded accrued interest receivables | $ 30,000,000 | $ 30,000,000 | $ 22,300,000 |
Securities (Proceeds, Gross Rea
Securities (Proceeds, Gross Realized Gains and Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 632 | $ 9,640 | $ 824 | $ 11,169 |
Related tax expense | $ 187 | $ 2,850 | $ 244 | $ 3,302 |
Securities (Scheduled Contractu
Securities (Scheduled Contractual Maturities of AFS Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due within one year | $ 1,379,762 | |
Due after one year through five years | 785,678 | |
Due after five years through ten years | 1,483,790 | |
Due after ten years | 4,761,912 | |
Amortized Cost | 8,411,142 | $ 5,470,523 |
Fair Value | ||
Due within one year | 1,353,523 | |
Due after one year through five years | 790,794 | |
Due after five years through ten years | 1,491,799 | |
Due after ten years | 4,763,344 | |
Total available-for-sale debt investment securities | 8,399,460 | 5,544,658 |
Available for sale debt investment securities pledged as collateral, fair value | $ 618,081 | $ 588,484 |
Securities (Restricted Equity S
Securities (Restricted Equity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank of San Francisco (“FRBSF”) stock | $ 59,681 | $ 59,249 |
FHLB stock | 17,250 | 23,797 |
Total restricted equity securities | $ 76,931 | $ 83,046 |
Derivatives (Notional and Fair
Derivatives (Notional and Fair Values) (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)MMBTUBoecompany | Dec. 31, 2020USD ($)MMBTUBoecompany | |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Less: Master netting agreements | (89,723) | (93,063) |
Less: Cash collateral received/paid | (3,368) | (8,449) |
Net derivative assets | 495,491 | 501,242 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 448,921 | 424,828 |
Less: Master netting agreements | (89,723) | (93,063) |
Less: Cash collateral received/paid | (163,586) | (91,634) |
Net derivative liabilities | $ 195,612 | $ 240,131 |
Crude oil | Customer Counterparty | ||
Derivative Liability [Abstract] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,484 | 6,321 |
Natural gas | Customer Counterparty | ||
Derivative Liability [Abstract] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 119,921 | 109,635 |
Derivative instruments designated as hedging instruments | ||
Derivative Instruments | ||
Notional Amount | $ 360,176 | $ 359,269 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 1,379 | 2,099 |
Derivative instruments designated as hedging instruments | Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments | ||
Notional Amount | 275,000 | 275,000 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 1,184 | 1,864 |
Derivative instruments designated as hedging instruments | Net Investment Hedging | Foreign exchange contracts | ||
Derivative Instruments | ||
Notional Amount | 85,176 | 84,269 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 0 | 0 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 195 | 235 |
Derivatives not designated as hedging instruments | ||
Derivative Instruments | ||
Notional Amount | 21,676,672 | 21,341,158 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 588,582 | 602,754 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 447,542 | 422,729 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative Instruments | ||
Notional Amount | 17,836,695 | 18,155,678 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 329,953 | 489,132 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 227,768 | 315,834 |
Derivatives not designated as hedging instruments | Foreign exchange contracts | ||
Derivative Instruments | ||
Notional Amount | 3,756,284 | 3,108,488 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 29,867 | 30,300 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 20,360 | 22,524 |
Derivatives not designated as hedging instruments | Credit contracts | ||
Derivative Instruments | ||
Notional Amount | 83,693 | 76,992 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 3 | 13 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 87 | 206 |
Derivatives not designated as hedging instruments | Equity contracts | ||
Derivative Instruments | ||
Notional Amount | 0 | 0 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 223 | 858 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | 0 | 0 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative Instruments | ||
Notional Amount | 0 | 0 |
Derivative Asset [Abstract] | ||
Derivative assets - Fair value | 228,536 | 82,451 |
Derivative Liability [Abstract] | ||
Derivative liabilities - Fair value | $ 199,327 | $ 84,165 |
Derivatives not designated as hedging instruments | Equity, Public Companies | ||
Derivative Liability [Abstract] | ||
Number of companies that issued the equity (issuers portion only) | company | 2 | |
Derivatives not designated as hedging instruments | Equity, Private Companies | ||
Derivative Liability [Abstract] | ||
Number of companies that issued the equity (issuers portion only) | company | 14 | 17 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)company | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)BoeMMBTUcompany | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)BoeMMBTUcompany | |
Derivative [Line Items] | |||||
Derivative assets - Fair value | $ 588,582 | $ 588,582 | $ 602,754 | ||
Derivative liabilities - Fair value | 448,921 | 448,921 | 424,828 | ||
Credit-risk-related contingent features | |||||
Derivative [Line Items] | |||||
Aggregate fair value of derivative instruments in net liability position | 89,300 | 89,300 | 107,400 | ||
Collateral posted | 89,100 | 89,100 | 106,800 | ||
Derivative instruments designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 0 | 0 | 0 | ||
Notional Amount | 360,176 | 360,176 | 359,269 | ||
Derivative liabilities - Fair value | 1,379 | 1,379 | 2,099 | ||
Derivative instruments designated as hedging instruments | Fair Value Hedging | Interest Expense | |||||
Derivative [Line Items] | |||||
Gains or losses recognized on Consolidated Statement of Income related to the derivatives designated as fair value hedges | $ (357) | $ (1,700) | |||
Derivative instruments designated as hedging instruments | Fair Value Hedging | Interest Expense | Deposits | |||||
Derivative [Line Items] | |||||
Gains or losses recognized on Consolidated Statement of Income related to the derivatives designated as fair value hedges | 0 | 0 | |||
Derivative instruments designated as hedging instruments | Interest rate contracts | Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 0 | 0 | 0 | ||
Net unrealized losses, net of tax, recorded in AOCI expected to be reclassified into earnings during next 12 months | 605 | 605 | |||
Notional Amount | 275,000 | 275,000 | 275,000 | ||
Derivative liabilities - Fair value | 1,184 | 1,184 | 1,864 | ||
Derivative instruments designated as hedging instruments | Interest rate contracts | Fair Value Hedging | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 0 | 0 | 0 | ||
Derivative instruments designated as hedging instruments | Interest rate contracts | Fair Value Hedging | Interest Expense | |||||
Derivative [Line Items] | |||||
Change in unrealized gains or losses on fair value hedging instruments | 0 | $ 951 | 0 | $ 3,000 | |
Derivatives not designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 588,582 | 588,582 | 602,754 | ||
Notional Amount | 21,676,672 | 21,676,672 | 21,341,158 | ||
Derivative liabilities - Fair value | 447,542 | 447,542 | 422,729 | ||
Derivatives not designated as hedging instruments | Foreign exchange contracts | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 29,867 | 29,867 | 30,300 | ||
Notional Amount | 3,756,284 | 3,756,284 | 3,108,488 | ||
Derivative liabilities - Fair value | 20,360 | 20,360 | 22,524 | ||
Derivatives not designated as hedging instruments | Interest rate contracts | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 329,953 | 329,953 | 489,132 | ||
Notional Amount | 17,836,695 | 17,836,695 | 18,155,678 | ||
Derivative liabilities - Fair value | 227,768 | 227,768 | 315,834 | ||
Derivatives not designated as hedging instruments | Interest rate contracts | Financial Counterparty | |||||
Derivative [Line Items] | |||||
Notional Amount | 8,930,000 | 8,930,000 | 9,090,000 | ||
Derivatives not designated as hedging instruments | Interest rate contracts | LCH | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 13,400 | 13,400 | 1,300 | ||
Notional Amount | 2,960,000 | 2,960,000 | 2,980,000 | ||
Derivative liabilities - Fair value | 120,000 | 120,000 | 187,400 | ||
Derivatives not designated as hedging instruments | Credit contracts | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 3 | 3 | 13 | ||
Notional Amount | 83,693 | 83,693 | 76,992 | ||
Derivative liabilities - Fair value | 87 | 87 | 206 | ||
Derivatives not designated as hedging instruments | Credit contracts | RPAs - protection sold | |||||
Derivative [Line Items] | |||||
Maximum exposure of RPAs with protection sold | 5,000 | $ 5,000 | $ 6,000 | ||
Weighted average remaining maturity of outstanding RPAs | 3 years 8 months 12 days | 3 years 6 months | |||
Derivatives not designated as hedging instruments | Equity, Public Companies | |||||
Derivative [Line Items] | |||||
Number of companies that issued the equity (issuers portion only) | company | 2 | ||||
Derivatives not designated as hedging instruments | Equity contracts | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 223 | $ 223 | $ 858 | ||
Notional Amount | 0 | 0 | 0 | ||
Derivative liabilities - Fair value | 0 | 0 | 0 | ||
Derivatives not designated as hedging instruments | Commodity contracts | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 228,536 | 228,536 | 82,451 | ||
Notional Amount | 0 | 0 | 0 | ||
Derivative liabilities - Fair value | 199,327 | 199,327 | 84,165 | ||
Derivatives not designated as hedging instruments | Commodity contracts | Chicago Mercantile Exchange (CME) | |||||
Derivative [Line Items] | |||||
Derivative assets - Fair value | 3,800 | 3,800 | 7,900 | ||
Derivative liabilities - Fair value | 29,200 | 29,200 | 3,700 | ||
Derivative assets (liabilities), at fair value, net | $ 3,900 | $ 3,900 | $ 0 | ||
Derivatives not designated as hedging instruments | Commodity contracts | Chicago Mercantile Exchange (CME) | Oil | |||||
Derivative [Line Items] | |||||
Derivative, nonmonetary notional amount, energy measure | Boe | 1,097 | 1,275 | |||
Derivatives not designated as hedging instruments | Commodity contracts | Chicago Mercantile Exchange (CME) | Natural gas | |||||
Derivative [Line Items] | |||||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 26,515 | 29,733 | |||
Derivatives not designated as hedging instruments | Equity, Private Companies | |||||
Derivative [Line Items] | |||||
Number of companies that issued the equity (issuers portion only) | company | 14 | 14 | 17 | ||
Maximum | Derivatives not designated as hedging instruments | Foreign exchange contracts | |||||
Derivative [Line Items] | |||||
Original maturity (in years) | 1 year | 1 year |
Derivatives (Gains (Losses) in
Derivatives (Gains (Losses) in Cash Flow Hedge and Net Investment Hedge) (Details) - Derivative instruments designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flow Hedging | Interest rate contracts | ||||
Derivative [Line Items] | ||||
(Losses) gains recognized in AOCI | $ (106) | $ (1,483) | $ 320 | $ (1,483) |
(Losses) gains reclassified from AOCI to interest expense | (201) | 377 | (378) | 377 |
Net Investment Hedging | Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
(Losses) gains recognized in AOCI | $ (1,643) | $ (377) | $ (1,543) | $ 627 |
Derivatives (Derivatives Not De
Derivatives (Derivatives Not Designated as Hedging Instruments - Interest Rate Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Derivative liabilities - Fair value | 448,921 | 424,828 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 21,676,672 | 21,341,158 |
Derivative assets - Fair value | 588,582 | 602,754 |
Derivative liabilities - Fair value | 447,542 | 422,729 |
Derivatives not designated as hedging instruments | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 17,836,695 | 18,155,678 |
Derivative assets - Fair value | 329,953 | 489,132 |
Derivative liabilities - Fair value | 227,768 | 315,834 |
Derivatives not designated as hedging instruments | Financial Counterparty | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,930,000 | 9,090,000 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Written options | ||
Derivative [Line Items] | ||
Notional Amount | 850,152 | 957,393 |
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 650 | 115 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Sold collars and corridors | ||
Derivative [Line Items] | ||
Notional Amount | 424,212 | 518,477 |
Derivative assets - Fair value | 3,864 | 7,673 |
Derivative liabilities - Fair value | 218 | 0 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 7,628,895 | 7,586,414 |
Derivative assets - Fair value | 309,520 | 479,634 |
Derivative liabilities - Fair value | 25,743 | 1,364 |
Interest rate contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,903,259 | 9,062,284 |
Derivative assets - Fair value | 313,384 | 487,307 |
Derivative liabilities - Fair value | 26,611 | 1,479 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Purchased options | ||
Derivative [Line Items] | ||
Notional Amount | 850,152 | 957,393 |
Derivative assets - Fair value | 656 | 101 |
Derivative liabilities - Fair value | 0 | 15 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Collars and corridors | ||
Derivative [Line Items] | ||
Notional Amount | 424,212 | 518,477 |
Derivative assets - Fair value | 214 | 0 |
Derivative liabilities - Fair value | 3,910 | 7,717 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Swaps | ||
Derivative [Line Items] | ||
Notional Amount | 7,659,072 | 7,617,524 |
Derivative assets - Fair value | 15,699 | 1,724 |
Derivative liabilities - Fair value | 197,247 | 306,623 |
Interest rate contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,933,436 | 9,093,394 |
Derivative assets - Fair value | 16,569 | 1,825 |
Derivative liabilities - Fair value | $ 201,157 | $ 314,355 |
Derivatives (Derivatives Not _2
Derivatives (Derivatives Not Designated as Hedging Instruments - Foreign Exchange Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross amounts recognized | $ 588,582 | $ 602,754 |
Derivative liabilities - Fair value | 448,921 | 424,828 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 21,676,672 | 21,341,158 |
Gross amounts recognized | 588,582 | 602,754 |
Derivative liabilities - Fair value | 447,542 | 422,729 |
Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 3,756,284 | 3,108,488 |
Gross amounts recognized | 29,867 | 30,300 |
Derivative liabilities - Fair value | 20,360 | 22,524 |
Foreign exchange contracts | Customer Counterparty | Forwards and spot | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,299,644 | 1,522,888 |
Gross amounts recognized | 20,026 | 17,575 |
Derivative liabilities - Fair value | 16,189 | 17,928 |
Foreign exchange contracts | Customer Counterparty | Swaps | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 103,086 | 13,590 |
Gross amounts recognized | 182 | 872 |
Derivative liabilities - Fair value | 651 | 91 |
Foreign exchange contracts | Customer Counterparty | Written options | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 118,350 | 117,729 |
Gross amounts recognized | 0 | 0 |
Derivative liabilities - Fair value | 31 | 574 |
Foreign exchange contracts | Customer Counterparty | Collars | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,135 | |
Gross amounts recognized | 1 | |
Derivative liabilities - Fair value | 0 | |
Foreign exchange contracts | Customer Counterparty | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,523,215 | 1,654,207 |
Gross amounts recognized | 20,209 | 18,447 |
Derivative liabilities - Fair value | 16,871 | 18,593 |
Foreign exchange contracts | Financial Counterparty | Forwards and spot | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 219,671 | 145,197 |
Gross amounts recognized | 1,575 | 1,230 |
Derivative liabilities - Fair value | 1,083 | 273 |
Foreign exchange contracts | Financial Counterparty | Swaps | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 892,913 | 1,191,355 |
Gross amounts recognized | 8,052 | 10,049 |
Derivative liabilities - Fair value | 2,405 | 3,658 |
Foreign exchange contracts | Financial Counterparty | Purchased options | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 118,350 | 117,729 |
Gross amounts recognized | 31 | 574 |
Derivative liabilities - Fair value | 0 | 0 |
Foreign exchange contracts | Financial Counterparty | Collars | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,135 | |
Gross amounts recognized | 0 | |
Derivative liabilities - Fair value | 1 | |
Foreign exchange contracts | Financial Counterparty | Foreign exchange contracts | Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 1,233,069 | 1,454,281 |
Gross amounts recognized | 9,658 | 11,853 |
Derivative liabilities - Fair value | $ 3,489 | $ 3,931 |
Derivatives (Derivatives Not _3
Derivatives (Derivatives Not Designated as Hedging Instruments - Credit Contracts) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Derivative liabilities - Fair value | 448,921 | 424,828 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 21,676,672 | 21,341,158 |
Derivative assets - Fair value | 588,582 | 602,754 |
Derivative liabilities - Fair value | 447,542 | 422,729 |
Credit contracts | Derivatives not designated as hedging instruments | Other credit derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 83,693 | 76,992 |
Derivative assets - Fair value | 3 | 13 |
Derivative liabilities - Fair value | 87 | 206 |
Credit contracts | Derivatives not designated as hedging instruments | Other credit derivatives | RPAs - protection sold | ||
Derivative [Line Items] | ||
Notional Amount | 72,979 | 66,278 |
Derivative assets - Fair value | 0 | 0 |
Derivative liabilities - Fair value | 87 | 206 |
Credit contracts | Derivatives not designated as hedging instruments | Other credit derivatives | RPAs - protection purchased | ||
Derivative [Line Items] | ||
Notional Amount | 10,714 | 10,714 |
Derivative assets - Fair value | 3 | 13 |
Derivative liabilities - Fair value | $ 0 | $ 0 |
Derivatives (Derivatives Not _4
Derivatives (Derivatives Not Designated as Hedging Instruments - Commodity Contracts) (Details) MMBTU in Thousands, Boe in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)MMBTUBoe | Dec. 31, 2020USD ($)BoeMMBTU | |
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Derivative liabilities - Fair value | $ 448,921 | $ 424,828 |
Customer Counterparty | Crude oil | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,484 | 6,321 |
Customer Counterparty | Natural gas | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 119,921 | 109,635 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Derivative liabilities - Fair value | 447,542 | 422,729 |
Derivatives not designated as hedging instruments | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | 228,536 | 82,451 |
Derivative liabilities - Fair value | 199,327 | 84,165 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | 203,288 | 44,762 |
Derivative liabilities - Fair value | $ 25,224 | $ 43,978 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Written options | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 210 | |
Derivative assets - Fair value | $ 288 | |
Derivative liabilities - Fair value | $ 2 | |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 2,406 | 2,022 |
Derivative assets - Fair value | $ 28,308 | $ 2,344 |
Derivative liabilities - Fair value | $ 35 | $ 2,193 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 5,868 | 4,299 |
Derivative assets - Fair value | $ 92,924 | $ 9,282 |
Derivative liabilities - Fair value | $ 27 | $ 14,283 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Crude oil | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,484 | 6,321 |
Derivative assets - Fair value | $ 121,520 | $ 11,626 |
Derivative liabilities - Fair value | $ 64 | $ 16,476 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Written options | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 5,336 | 597 |
Derivative assets - Fair value | $ 3 | $ 0 |
Derivative liabilities - Fair value | $ 16 | $ 59 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 18,178 | 12,733 |
Derivative assets - Fair value | $ 9,327 | $ 1,063 |
Derivative liabilities - Fair value | $ 0 | $ 205 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 96,407 | 96,305 |
Derivative assets - Fair value | $ 72,438 | $ 32,073 |
Derivative liabilities - Fair value | $ 25,144 | $ 27,238 |
Commodity contracts | Derivatives not designated as hedging instruments | Customer Counterparty | Natural gas | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 119,921 | 109,635 |
Derivative assets - Fair value | $ 81,768 | $ 33,136 |
Derivative liabilities - Fair value | 25,160 | 27,502 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative assets - Fair value | 25,248 | 37,689 |
Derivative liabilities - Fair value | $ 174,103 | $ 40,187 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Purchased options | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 210 | |
Derivative assets - Fair value | $ 0 | |
Derivative liabilities - Fair value | $ 241 | |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 2,406 | 2,022 |
Derivative assets - Fair value | $ 35 | $ 2,217 |
Derivative liabilities - Fair value | $ 27,811 | $ 2,402 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 5,868 | 4,299 |
Derivative assets - Fair value | $ 60 | $ 8,220 |
Derivative liabilities - Fair value | $ 76,813 | $ 7,135 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Crude oil | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | Boe | 8,484 | 6,321 |
Derivative assets - Fair value | $ 95 | $ 10,437 |
Derivative liabilities - Fair value | $ 104,865 | $ 9,537 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Purchased options | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 5,336 | 597 |
Derivative assets - Fair value | $ 16 | $ 59 |
Derivative liabilities - Fair value | $ 3 | $ 0 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Collars | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 23,468 | 16,293 |
Derivative assets - Fair value | $ 0 | $ 205 |
Derivative liabilities - Fair value | $ 7,879 | $ 813 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Swaps | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 103,653 | 103,973 |
Derivative assets - Fair value | $ 25,137 | $ 26,988 |
Derivative liabilities - Fair value | $ 61,356 | $ 29,837 |
Commodity contracts | Derivatives not designated as hedging instruments | Financial Counterparty | Natural gas | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount, energy measure | MMBTU | 132,457 | 120,863 |
Derivative assets - Fair value | $ 25,153 | $ 27,252 |
Derivative liabilities - Fair value | $ 69,238 | $ 30,650 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments) (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ 6,670 | $ 8,764 | $ 31,339 | $ 4,924 |
Interest rate contracts | Interest rate contracts and other derivative income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | (5,338) | (5,361) | 8,563 | (12,372) |
Foreign exchange contracts | Foreign exchange income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 11,972 | 6,201 | 22,215 | 9,062 |
Credit contracts | Interest rate contracts and other derivative income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 150 | (75) | 195 | (98) |
Equity contracts | Lending fees | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | 74 | 8,070 | 385 | 8,379 |
Commodity contracts | Interest rate contracts and other derivative income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net gains (losses) recognized for derivative not designated as hedging instruments | $ (188) | $ (71) | $ (19) | $ (47) |
Derivatives (Offsetting of Deri
Derivatives (Offsetting of Derivatives) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative assets | ||
Derivative assets - Fair value | $ 588,582 | $ 602,754 |
Less: Master netting agreements | (89,723) | (93,063) |
Less: Cash collateral received/paid | (3,368) | (8,449) |
Net derivative assets | 495,491 | 501,242 |
Less: Security Collateral Received | 0 | (35) |
Net Amount | 495,491 | 501,207 |
Contracts not subject to master netting arrangements, gross amounts recognized | 940 | 1,100 |
Derivative, cash collateral received, including amount offset by fair value assets, and excess cash amount | 9,800 | 15,800 |
Amount used to offset against derivative assets | (3,368) | (8,449) |
Derivative liabilities | ||
Gross amounts recognized | 448,921 | 424,828 |
Less: Master netting agreements | (89,723) | (93,063) |
Less: Cash collateral received/paid | (163,586) | (91,634) |
Net derivative liabilities | 195,612 | 240,131 |
Less: Security Collateral Pledged | (155,245) | (221,150) |
Net Amount | 40,367 | 18,981 |
Contracts not subject to master netting arrangements, gross amounts recognized | 842 | 220 |
Derivative, cash collateral posted against derivative liabilities, including amount offset the derivative fair value liabilities, and excess cash amount | 163,900 | 91,600 |
Amount used to offset against derivative liabilities | $ (163,586) | $ (91,634) |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Credit Losses (Composition of Loans Held-for-Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | $ 40,071,499 | $ 38,390,955 | ||||
Allowance for loan losses | (585,724) | $ (607,506) | (619,983) | $ (632,071) | $ (557,003) | $ (358,287) |
Loans held-for-investment, net | 39,485,775 | 37,770,972 | ||||
Net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts | (67,000) | (58,800) | ||||
CARES Act, Paycheck Protection Program | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Net origination fees | (25,900) | (12,700) | ||||
Commercial and industrial (“C&I”) | CARES Act, Paycheck Protection Program | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 1,430,000 | 1,570,000 | ||||
Commercial lending | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 29,182,304 | 28,440,027 | ||||
Commercial lending | Commercial and industrial (“C&I”) | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 13,790,461 | 13,631,726 | ||||
Allowance for loan losses | (362,528) | (394,084) | (398,040) | (380,723) | (362,629) | (238,376) |
Commercial lending | Commercial real estate (“CRE”) | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 11,711,369 | 11,174,611 | ||||
Allowance for loan losses | (161,962) | (146,399) | (163,791) | (176,040) | (132,819) | (40,509) |
Commercial lending | Real estate loan | Multifamily residential | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 3,219,796 | 3,033,998 | ||||
Allowance for loan losses | (21,925) | (27,407) | (27,573) | (25,058) | (16,530) | (22,826) |
Commercial lending | Construction and land | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 460,678 | 599,692 | ||||
Allowance for loan losses | (15,643) | (19,089) | (10,239) | (18,551) | (11,018) | (19,404) |
Commercial lending | Total CRE | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 15,391,843 | 14,808,301 | ||||
Consumer lending | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 10,889,195 | 9,950,928 | ||||
Consumer lending | Real estate loan | Single-family residential | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 8,869,370 | 8,185,953 | ||||
Allowance for loan losses | (16,530) | (15,839) | (15,520) | (25,314) | (26,822) | (28,527) |
Consumer lending | HELOCs | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 1,872,166 | 1,601,716 | ||||
Allowance for loan losses | (2,938) | (2,670) | (2,690) | (3,867) | (3,881) | (5,265) |
Consumer lending | Total residential mortgage | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 10,741,536 | 9,787,669 | ||||
Consumer lending | Other consumer | ||||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||||||
Loans held-for-investment | 147,659 | 163,259 | ||||
Allowance for loan losses | $ (4,198) | $ (2,018) | $ (2,130) | $ (2,518) | $ (3,304) | $ (3,380) |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Credit Losses (Composition of Loans Held-for-Investment- Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($)loan | Dec. 31, 2020USD ($) | |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Accrued interest receivable | $ 103,600 | $ 103,600 | $ 107,500 | ||
Loans receivable pledged to secure borrowings and to provide additional borrowing capacity from the FRB and the FHLB | 24,233,905 | 24,233,905 | $ 23,263,517 | ||
HELOCs | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Converted to term loan | 20,900 | $ 12,100 | 57,600 | $ 43,400 | |
Commercial and industrial (“C&I”) | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Converted to term loan | $ 0 | 0 | 0 | 0 | |
Commercial real estate (“CRE”) | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Converted to term loan | $ 0 | $ 5,000 | $ 0 | ||
Financing receivable number converted to term loans | loan | 0 | 2 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Credit Losses (Credit Risk Ratings and/or Vintage Years for Loans Held-for-Investment by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | $ 5,908,830 | $ 9,787,213 |
Fiscal Year before Current Fiscal Year | 7,688,732 | 6,816,315 |
Two Years before Current Fiscal Year | 5,963,358 | 5,125,324 |
Three Years before Current Fiscal Year | 4,435,471 | 3,167,275 |
Four Years before Current Fiscal Year | 2,733,322 | 1,547,971 |
Prior | 4,280,854 | 3,277,221 |
Revolving Loans Amortized Cost Basis | 8,756,455 | 8,390,152 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 304,477 | 279,484 |
Total | 40,071,499 | 38,390,955 |
Federal Housing Administration Loan | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Financing receivable, recorded investment, 90 days past due and still accruing, classified as pass | 647 | 747 |
Commercial lending | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 4,376,921 | 7,390,682 |
Fiscal Year before Current Fiscal Year | 5,359,896 | 5,000,429 |
Two Years before Current Fiscal Year | 4,392,351 | 3,619,488 |
Three Years before Current Fiscal Year | 3,155,950 | 2,129,478 |
Four Years before Current Fiscal Year | 1,839,800 | 1,013,095 |
Prior | 2,890,575 | 2,244,535 |
Revolving Loans Amortized Cost Basis | 7,113,563 | 6,993,769 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 53,248 | 48,551 |
Total | 29,182,304 | 28,440,027 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 2,553,506 | 4,034,455 |
Fiscal Year before Current Fiscal Year | 2,249,548 | 1,577,608 |
Two Years before Current Fiscal Year | 1,152,728 | 562,750 |
Three Years before Current Fiscal Year | 368,014 | 283,807 |
Four Years before Current Fiscal Year | 216,643 | 75,933 |
Prior | 267,472 | 253,079 |
Revolving Loans Amortized Cost Basis | 6,953,375 | 6,814,607 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 29,175 | 29,487 |
Total | 13,790,461 | 13,631,726 |
Commercial lending | Commercial and industrial (“C&I”) | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 2,473,716 | 3,912,147 |
Fiscal Year before Current Fiscal Year | 2,133,586 | 1,477,740 |
Two Years before Current Fiscal Year | 1,062,978 | 483,725 |
Three Years before Current Fiscal Year | 333,190 | 245,594 |
Four Years before Current Fiscal Year | 200,711 | 69,482 |
Prior | 261,156 | 245,615 |
Revolving Loans Amortized Cost Basis | 6,706,592 | 6,431,003 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 29,175 | 29,487 |
Total | 13,201,104 | 12,894,793 |
Commercial lending | Commercial and industrial (“C&I”) | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 63,030 | 120,183 |
Fiscal Year before Current Fiscal Year | 115,148 | 74,601 |
Two Years before Current Fiscal Year | 87,636 | 56,785 |
Three Years before Current Fiscal Year | 13,847 | 19,426 |
Four Years before Current Fiscal Year | 3,184 | 1,487 |
Prior | 4,939 | 5,872 |
Revolving Loans Amortized Cost Basis | 218,348 | 324,640 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 506,132 | 602,994 |
Commercial lending | Commercial and industrial (“C&I”) | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 16,760 | 2,125 |
Fiscal Year before Current Fiscal Year | 814 | 25,267 |
Two Years before Current Fiscal Year | 2,114 | 22,240 |
Three Years before Current Fiscal Year | 20,977 | 18,787 |
Four Years before Current Fiscal Year | 12,748 | 4,964 |
Prior | 1,377 | 1,592 |
Revolving Loans Amortized Cost Basis | 28,435 | 58,964 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 83,225 | 133,939 |
Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,381,266 | 2,344,108 |
Fiscal Year before Current Fiscal Year | 2,229,224 | 2,465,790 |
Two Years before Current Fiscal Year | 2,364,424 | 2,396,262 |
Three Years before Current Fiscal Year | 2,198,614 | 1,427,625 |
Four Years before Current Fiscal Year | 1,278,421 | 734,788 |
Prior | 2,081,589 | 1,613,707 |
Revolving Loans Amortized Cost Basis | 153,758 | 173,267 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 24,073 | 19,064 |
Total | 11,711,369 | 11,174,611 |
Commercial lending | Commercial real estate (“CRE”) | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,296,562 | 2,296,649 |
Fiscal Year before Current Fiscal Year | 2,215,380 | 2,402,136 |
Two Years before Current Fiscal Year | 2,316,293 | 2,310,748 |
Three Years before Current Fiscal Year | 2,142,042 | 1,328,251 |
Four Years before Current Fiscal Year | 1,239,195 | 732,694 |
Prior | 2,021,101 | 1,529,681 |
Revolving Loans Amortized Cost Basis | 153,758 | 173,267 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 24,073 | 19,064 |
Total | 11,408,404 | 10,792,490 |
Commercial lending | Commercial real estate (“CRE”) | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 80,204 | 47,459 |
Fiscal Year before Current Fiscal Year | 13,844 | 63,654 |
Two Years before Current Fiscal Year | 48,131 | 43,447 |
Three Years before Current Fiscal Year | 9,743 | 98,259 |
Four Years before Current Fiscal Year | 33,358 | 2,094 |
Prior | 58,905 | 80,662 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 244,185 | 335,575 |
Commercial lending | Commercial real estate (“CRE”) | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 4,500 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 42,067 |
Three Years before Current Fiscal Year | 46,829 | 1,115 |
Four Years before Current Fiscal Year | 5,868 | 0 |
Prior | 1,583 | 3,364 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 58,780 | 46,546 |
Commercial lending | Real estate loan | Multifamily residential | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 384,655 | 783,671 |
Fiscal Year before Current Fiscal Year | 760,226 | 784,324 |
Two Years before Current Fiscal Year | 744,497 | 503,764 |
Three Years before Current Fiscal Year | 478,210 | 418,046 |
Four Years before Current Fiscal Year | 344,736 | 181,477 |
Prior | 501,042 | 356,821 |
Revolving Loans Amortized Cost Basis | 6,430 | 5,895 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 3,219,796 | 3,033,998 |
Commercial lending | Real estate loan | Multifamily residential | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 384,655 | 783,671 |
Fiscal Year before Current Fiscal Year | 760,226 | 783,589 |
Two Years before Current Fiscal Year | 743,769 | 479,959 |
Three Years before Current Fiscal Year | 454,684 | 411,945 |
Four Years before Current Fiscal Year | 338,701 | 181,213 |
Prior | 469,340 | 348,751 |
Revolving Loans Amortized Cost Basis | 6,430 | 5,895 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 3,157,805 | 2,995,023 |
Commercial lending | Real estate loan | Multifamily residential | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 735 |
Two Years before Current Fiscal Year | 728 | 22,330 |
Three Years before Current Fiscal Year | 22,337 | 6,101 |
Four Years before Current Fiscal Year | 6,035 | 264 |
Prior | 29,998 | 5,877 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 59,098 | 35,307 |
Commercial lending | Real estate loan | Multifamily residential | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 1,475 |
Three Years before Current Fiscal Year | 1,189 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 1,704 | 2,193 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 2,893 | 3,668 |
Commercial lending | Construction and land | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 57,494 | 228,448 |
Fiscal Year before Current Fiscal Year | 120,898 | 172,707 |
Two Years before Current Fiscal Year | 130,702 | 156,712 |
Three Years before Current Fiscal Year | 111,112 | 0 |
Four Years before Current Fiscal Year | 0 | 20,897 |
Prior | 40,472 | 20,928 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 460,678 | 599,692 |
Commercial lending | Construction and land | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 54,054 | 224,924 |
Fiscal Year before Current Fiscal Year | 120,898 | 172,707 |
Two Years before Current Fiscal Year | 130,702 | 156,712 |
Three Years before Current Fiscal Year | 111,112 | 0 |
Four Years before Current Fiscal Year | 0 | 20,897 |
Prior | 1,421 | 1,028 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 418,187 | 576,268 |
Commercial lending | Construction and land | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 3,440 | 3,524 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 19,151 | 19,900 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 22,591 | 23,424 |
Commercial lending | Construction and land | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 19,900 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 19,900 | 0 |
Commercial lending | Total CRE | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,823,415 | 3,356,227 |
Fiscal Year before Current Fiscal Year | 3,110,348 | 3,422,821 |
Two Years before Current Fiscal Year | 3,239,623 | 3,056,738 |
Three Years before Current Fiscal Year | 2,787,936 | 1,845,671 |
Four Years before Current Fiscal Year | 1,623,157 | 937,162 |
Prior | 2,623,103 | 1,991,456 |
Revolving Loans Amortized Cost Basis | 160,188 | 179,162 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 24,073 | 19,064 |
Total | 15,391,843 | 14,808,301 |
Consumer lending | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,531,909 | 2,396,531 |
Fiscal Year before Current Fiscal Year | 2,328,836 | 1,815,886 |
Two Years before Current Fiscal Year | 1,571,007 | 1,505,836 |
Three Years before Current Fiscal Year | 1,279,521 | 1,037,797 |
Four Years before Current Fiscal Year | 893,522 | 534,876 |
Prior | 1,390,279 | 1,032,686 |
Revolving Loans Amortized Cost Basis | 1,642,892 | 1,396,383 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 251,229 | 230,933 |
Total | 10,889,195 | 9,950,928 |
Consumer lending | Real estate loan | Single-family residential | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,527,794 | 2,385,853 |
Fiscal Year before Current Fiscal Year | 2,319,670 | 1,814,855 |
Two Years before Current Fiscal Year | 1,568,888 | 1,502,472 |
Three Years before Current Fiscal Year | 1,277,308 | 1,023,496 |
Four Years before Current Fiscal Year | 881,249 | 525,283 |
Prior | 1,294,461 | 933,994 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 8,869,370 | 8,185,953 |
Consumer lending | Real estate loan | Single-family residential | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,526,669 | 2,385,853 |
Fiscal Year before Current Fiscal Year | 2,319,273 | 1,813,200 |
Two Years before Current Fiscal Year | 1,567,312 | 1,501,660 |
Three Years before Current Fiscal Year | 1,273,541 | 1,021,707 |
Four Years before Current Fiscal Year | 879,004 | 523,170 |
Prior | 1,282,396 | 921,714 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 8,848,195 | 8,167,304 |
Consumer lending | Real estate loan | Single-family residential | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 397 | 1,429 |
Two Years before Current Fiscal Year | 156 | 0 |
Three Years before Current Fiscal Year | 1,100 | 0 |
Four Years before Current Fiscal Year | 0 | 119 |
Prior | 0 | 1,034 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 1,653 | 2,582 |
Consumer lending | Real estate loan | Single-family residential | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,125 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 226 |
Two Years before Current Fiscal Year | 1,420 | 812 |
Three Years before Current Fiscal Year | 2,667 | 1,789 |
Four Years before Current Fiscal Year | 2,245 | 1,994 |
Prior | 12,065 | 11,246 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 19,522 | 16,067 |
Consumer lending | HELOCs | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 1,131 |
Fiscal Year before Current Fiscal Year | 1,938 | 1,031 |
Two Years before Current Fiscal Year | 2,119 | 3,364 |
Three Years before Current Fiscal Year | 2,213 | 9,980 |
Four Years before Current Fiscal Year | 8,041 | 9,593 |
Prior | 13,912 | 15,437 |
Revolving Loans Amortized Cost Basis | 1,592,714 | 1,330,247 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 251,229 | 230,933 |
Total | 1,872,166 | 1,601,716 |
Consumer lending | HELOCs | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 1,131 |
Fiscal Year before Current Fiscal Year | 1,938 | 880 |
Two Years before Current Fiscal Year | 1,501 | 2,879 |
Three Years before Current Fiscal Year | 1,824 | 5,363 |
Four Years before Current Fiscal Year | 4,508 | 8,433 |
Prior | 11,385 | 13,475 |
Revolving Loans Amortized Cost Basis | 1,592,348 | 1,328,919 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 247,174 | 225,810 |
Total | 1,860,678 | 1,586,890 |
Consumer lending | HELOCs | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 200 |
Three Years before Current Fiscal Year | 201 | 0 |
Four Years before Current Fiscal Year | 0 | 996 |
Prior | 600 | 0 |
Revolving Loans Amortized Cost Basis | 366 | 1,328 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 606 |
Total | 1,167 | 3,130 |
Consumer lending | HELOCs | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 151 |
Two Years before Current Fiscal Year | 618 | 285 |
Three Years before Current Fiscal Year | 188 | 4,617 |
Four Years before Current Fiscal Year | 3,533 | 164 |
Prior | 1,927 | 1,962 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 4,055 | 4,517 |
Total | 10,321 | 11,696 |
Consumer lending | Total residential mortgage | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 1,527,794 | 2,386,984 |
Fiscal Year before Current Fiscal Year | 2,321,608 | 1,815,886 |
Two Years before Current Fiscal Year | 1,571,007 | 1,505,836 |
Three Years before Current Fiscal Year | 1,279,521 | 1,033,476 |
Four Years before Current Fiscal Year | 889,290 | 534,876 |
Prior | 1,308,373 | 949,431 |
Revolving Loans Amortized Cost Basis | 1,592,714 | 1,330,247 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 251,229 | 230,933 |
Total | 10,741,536 | 9,787,669 |
Consumer lending | Other consumer | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 4,115 | 9,547 |
Fiscal Year before Current Fiscal Year | 7,228 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 4,321 |
Four Years before Current Fiscal Year | 4,232 | 0 |
Prior | 81,906 | 83,255 |
Revolving Loans Amortized Cost Basis | 50,178 | 66,136 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 147,659 | 163,259 |
Consumer lending | Other consumer | Pass | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 4,096 | 9,531 |
Fiscal Year before Current Fiscal Year | 7,228 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 1,830 |
Four Years before Current Fiscal Year | 1,741 | 0 |
Prior | 81,906 | 83,255 |
Revolving Loans Amortized Cost Basis | 50,166 | 66,136 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 145,137 | 160,752 |
Consumer lending | Other consumer | Criticized (Accrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 19 | 16 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | 19 | 16 |
Consumer lending | Other consumer | Criticized (Nonaccrual) | ||
Financing Receivable, Vintage Year/Credit Quality Indicator [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Fiscal Year before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 2,491 |
Four Years before Current Fiscal Year | 2,491 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 12 | 0 |
Revolving Loans Converted to Term Loans Amortized Cost Basis | 0 | 0 |
Total | $ 2,503 | $ 2,491 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Credit Losses (Aging Analysis on Loans Held-for-Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | $ 197,790 | $ 215,154 |
Total | 40,071,499 | 38,390,955 |
Current Accruing Loans | ||
Nonaccrual and Past Due Loans | ||
Total | 39,818,404 | 38,125,211 |
Total Accruing Past Due Loans | ||
Nonaccrual and Past Due Loans | ||
Total | 55,305 | 50,590 |
Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total | 52,436 | 44,136 |
Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total | 2,869 | 6,454 |
Commercial lending | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 164,798 | 184,153 |
Total | 29,182,304 | 28,440,027 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 83,225 | 133,939 |
Total | 13,790,461 | 13,631,726 |
Commercial lending | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 58,780 | 46,546 |
Total | 11,711,369 | 11,174,611 |
Commercial lending | Real estate loan | Multifamily residential | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 2,893 | 3,668 |
Total | 3,219,796 | 3,033,998 |
Commercial lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 19,900 | 0 |
Total | 460,678 | 599,692 |
Commercial lending | Total CRE | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 81,573 | 50,214 |
Total | 15,391,843 | 14,808,301 |
Commercial lending | Current Accruing Loans | ||
Nonaccrual and Past Due Loans | ||
Total | 28,980,913 | 28,224,064 |
Commercial lending | Current Accruing Loans | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total | 13,677,054 | 13,488,070 |
Commercial lending | Current Accruing Loans | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total | 11,647,942 | 11,127,690 |
Commercial lending | Current Accruing Loans | Real estate loan | Multifamily residential | ||
Nonaccrual and Past Due Loans | ||
Total | 3,215,139 | 3,028,512 |
Commercial lending | Current Accruing Loans | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total | 440,778 | 579,792 |
Commercial lending | Current Accruing Loans | Total CRE | ||
Nonaccrual and Past Due Loans | ||
Total | 15,303,859 | 14,735,994 |
Commercial lending | Total Accruing Past Due Loans | ||
Nonaccrual and Past Due Loans | ||
Total | 36,593 | 31,810 |
Commercial lending | Total Accruing Past Due Loans | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total | 30,182 | 9,717 |
Commercial lending | Total Accruing Past Due Loans | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total | 4,647 | 375 |
Commercial lending | Total Accruing Past Due Loans | Real estate loan | Multifamily residential | ||
Nonaccrual and Past Due Loans | ||
Total | 1,764 | 1,818 |
Commercial lending | Total Accruing Past Due Loans | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total | 0 | 19,900 |
Commercial lending | Total Accruing Past Due Loans | Total CRE | ||
Nonaccrual and Past Due Loans | ||
Total | 6,411 | 22,093 |
Commercial lending | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total | 36,559 | 31,086 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total | 30,148 | 8,993 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total | 4,647 | 375 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Real estate loan | Multifamily residential | ||
Nonaccrual and Past Due Loans | ||
Total | 1,764 | 1,818 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total | 0 | 19,900 |
Commercial lending | Accruing Loans 30-59 Days Past Due | Total CRE | ||
Nonaccrual and Past Due Loans | ||
Total | 6,411 | 22,093 |
Commercial lending | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total | 34 | 724 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Commercial and industrial (“C&I”) | ||
Nonaccrual and Past Due Loans | ||
Total | 34 | 724 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Commercial real estate (“CRE”) | ||
Nonaccrual and Past Due Loans | ||
Total | 0 | 0 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Real estate loan | Multifamily residential | ||
Nonaccrual and Past Due Loans | ||
Total | 0 | 0 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total | 0 | 0 |
Commercial lending | Accruing Loans 60-89 Days Past Due | Total CRE | ||
Nonaccrual and Past Due Loans | ||
Total | 0 | 0 |
Consumer lending | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 32,992 | 31,001 |
Total | 10,889,195 | 9,950,928 |
Consumer lending | Real estate loan | Single-family residential | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 20,168 | 16,814 |
Total | 8,869,370 | 8,185,953 |
Consumer lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 10,321 | 11,696 |
Total | 1,872,166 | 1,601,716 |
Consumer lending | Total residential mortgage | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 30,489 | 28,510 |
Total | 10,741,536 | 9,787,669 |
Consumer lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 2,503 | 2,491 |
Total | 147,659 | 163,259 |
Consumer lending | Current Accruing Loans | ||
Nonaccrual and Past Due Loans | ||
Total | 10,837,491 | 9,901,147 |
Consumer lending | Current Accruing Loans | Real estate loan | Single-family residential | ||
Nonaccrual and Past Due Loans | ||
Total | 8,834,580 | 8,156,645 |
Consumer lending | Current Accruing Loans | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total | 1,858,040 | 1,583,968 |
Consumer lending | Current Accruing Loans | Total residential mortgage | ||
Nonaccrual and Past Due Loans | ||
Total | 10,692,620 | 9,740,613 |
Consumer lending | Current Accruing Loans | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total | 144,871 | 160,534 |
Consumer lending | Total Accruing Past Due Loans | ||
Nonaccrual and Past Due Loans | ||
Total | 18,712 | 18,780 |
Consumer lending | Total Accruing Past Due Loans | Real estate loan | Single-family residential | ||
Nonaccrual and Past Due Loans | ||
Total | 14,622 | 12,494 |
Consumer lending | Total Accruing Past Due Loans | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total | 3,805 | 6,052 |
Consumer lending | Total Accruing Past Due Loans | Total residential mortgage | ||
Nonaccrual and Past Due Loans | ||
Total | 18,427 | 18,546 |
Consumer lending | Total Accruing Past Due Loans | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total | 285 | 234 |
Consumer lending | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total | 15,877 | 13,050 |
Consumer lending | Accruing Loans 30-59 Days Past Due | Real estate loan | Single-family residential | ||
Nonaccrual and Past Due Loans | ||
Total | 12,969 | 9,911 |
Consumer lending | Accruing Loans 30-59 Days Past Due | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total | 2,643 | 2,922 |
Consumer lending | Accruing Loans 30-59 Days Past Due | Total residential mortgage | ||
Nonaccrual and Past Due Loans | ||
Total | 15,612 | 12,833 |
Consumer lending | Accruing Loans 30-59 Days Past Due | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total | 265 | 217 |
Consumer lending | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total | 2,835 | 5,730 |
Consumer lending | Accruing Loans 60-89 Days Past Due | Real estate loan | Single-family residential | ||
Nonaccrual and Past Due Loans | ||
Total | 1,653 | 2,583 |
Consumer lending | Accruing Loans 60-89 Days Past Due | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total | 1,162 | 3,130 |
Consumer lending | Accruing Loans 60-89 Days Past Due | Total residential mortgage | ||
Nonaccrual and Past Due Loans | ||
Total | 2,815 | 5,713 |
Consumer lending | Accruing Loans 60-89 Days Past Due | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total | $ 20 | $ 17 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Credit Losses (Amortized Cost of Loans on Nonaccrual Status) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | $ 140,357 | $ 126,676 |
Commercial lending | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 124,784 | 110,096 |
Commercial lending | Commercial and industrial (“C&I”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 44,110 | 62,040 |
Commercial lending | Commercial real estate (“CRE”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 58,346 | 45,537 |
Commercial lending | Real estate loan | Multifamily residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 2,428 | 2,519 |
Commercial lending | Construction and land | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 19,900 | 0 |
Commercial lending | Total CRE | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 80,674 | 48,056 |
Consumer lending | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 15,573 | 16,580 |
Consumer lending | Real estate loan | Single-family residential | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 8,702 | 6,013 |
Consumer lending | HELOCs | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 6,871 | 8,076 |
Consumer lending | Total residential mortgage | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | 15,573 | 14,089 |
Consumer lending | Other consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans with no related allowance for loan losses | $ 0 | $ 2,491 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Credit Losses (Loans Receivable Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Foreclosed assets | ||
Other assets, foreclosed assets | $ 27.9 | $ 19.7 |
Residential real estate properties | ||
Foreclosed assets | ||
Recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process | $ 18.2 | $ 4.1 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Credit Losses (Additions to TDRs) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Loans Modified as TDRs | ||||
Number of Loans | loan | 4 | 3 | 5 | 6 |
Pre- Modification Outstanding Recorded Investment | $ 20,375 | $ 35,260 | $ 20,818 | $ 51,708 |
Post-Modification Outstanding Recorded Investment | 20,084 | 28,926 | 20,499 | 43,833 |
Financial Impact | 2,162 | 872 | 2,318 | 1,000 |
Principal | ||||
Loans Modified as TDRs | ||||
Post-Modification Outstanding Recorded Investment | 3,373 | 11,766 | 3,788 | 15,898 |
Principal and Interest | ||||
Loans Modified as TDRs | ||||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 10,775 |
Interest Deferments | ||||
Loans Modified as TDRs | ||||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 17,160 | $ 0 | $ 17,160 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Loans Modified as TDRs | ||||
Number of Loans | loan | 4 | 3 | 5 | 6 |
Pre- Modification Outstanding Recorded Investment | $ 20,375 | $ 35,260 | $ 20,818 | $ 51,708 |
Post-Modification Outstanding Recorded Investment | 20,084 | 28,926 | 20,499 | 43,833 |
Financial Impact | 2,162 | 872 | 2,318 | 1,000 |
Commercial lending | Commercial and industrial (“C&I”) | Principal | ||||
Loans Modified as TDRs | ||||
Post-Modification Outstanding Recorded Investment | 3,373 | 11,766 | 3,788 | 15,898 |
Commercial lending | Commercial and industrial (“C&I”) | Principal and Interest | ||||
Loans Modified as TDRs | ||||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 10,775 |
Commercial lending | Commercial and industrial (“C&I”) | Interest Deferments | ||||
Loans Modified as TDRs | ||||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 17,160 | $ 0 | $ 17,160 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Credit Losses (TDR Post-Modifications) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | $ 20,084 | $ 28,926 | $ 20,499 | $ 43,833 | |
Commitment to lend | 10,200 | 10,200 | $ 3,000 | ||
Principal | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 3,373 | 11,766 | 3,788 | 15,898 | |
Principal and Interest | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 10,775 | |
Interest Deferments | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | 17,160 | 0 | 17,160 | |
Interest Rate Reduction | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 16,711 | 0 | 16,711 | 0 | |
Commercial lending | Commercial and industrial (“C&I”) | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 20,084 | 28,926 | 20,499 | 43,833 | |
Commercial lending | Commercial and industrial (“C&I”) | Principal | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 3,373 | 11,766 | 3,788 | 15,898 | |
Commercial lending | Commercial and industrial (“C&I”) | Principal and Interest | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 10,775 | |
Commercial lending | Commercial and industrial (“C&I”) | Interest Deferments | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | 17,160 | 0 | 17,160 | |
Commercial lending | Commercial and industrial (“C&I”) | Interest Rate Reduction | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | $ 16,711 | $ 0 | $ 16,711 | $ 0 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Credit Losses (Loans Modified as TDRs that Subsequently Defaulted) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 17,160 | $ 11,431 | $ 17,160 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 17,160 | $ 11,431 | $ 17,160 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Credit Losses (Summary of Activities in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | $ 607,506 | $ 557,003 | $ 619,983 | $ 358,287 |
(Reversal of) provision for credit losses on loans | (8,771) | 94,300 | (7,723) | 168,956 |
Gross charge-offs | (15,060) | (20,949) | (30,959) | (33,906) |
Gross recoveries | 1,785 | 1,709 | 4,278 | 13,768 |
Total net (charge-offs) recoveries | (13,275) | (19,240) | (26,681) | (20,138) |
Foreign currency translation adjustment | 264 | 8 | 145 | (192) |
Allowance for loan losses, end of period | 585,724 | 632,071 | 585,724 | 632,071 |
Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 125,158 | |||
Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 483,445 | |||
Commercial lending | Commercial and industrial (“C&I”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 394,084 | 362,629 | 398,040 | 238,376 |
(Reversal of) provision for credit losses on loans | (22,586) | 37,862 | (18,747) | 98,480 |
Gross charge-offs | (10,572) | (20,378) | (19,008) | (32,355) |
Gross recoveries | 1,338 | 602 | 2,098 | 2,177 |
Total net (charge-offs) recoveries | (9,234) | (19,776) | (16,910) | (30,178) |
Foreign currency translation adjustment | 264 | 8 | 145 | (192) |
Allowance for loan losses, end of period | 362,528 | 380,723 | 362,528 | 380,723 |
Commercial lending | Commercial and industrial (“C&I”) | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 74,237 | |||
Commercial lending | Commercial and industrial (“C&I”) | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 312,613 | |||
Commercial lending | Commercial real estate (“CRE”) | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 146,399 | 132,819 | 163,791 | 40,509 |
(Reversal of) provision for credit losses on loans | 19,375 | 43,315 | 9,098 | 54,750 |
Gross charge-offs | (4,134) | (320) | (11,329) | (1,274) |
Gross recoveries | 322 | 226 | 402 | 9,886 |
Total net (charge-offs) recoveries | (3,812) | (94) | (10,927) | 8,612 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 161,962 | 176,040 | 161,962 | 176,040 |
Commercial lending | Commercial real estate (“CRE”) | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 72,169 | |||
Commercial lending | Commercial real estate (“CRE”) | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 112,678 | |||
Commercial lending | Residential loan | Multifamily residential | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 27,407 | 16,530 | 27,573 | 22,826 |
(Reversal of) provision for credit losses on loans | (5,385) | 7,908 | (6,776) | 9,189 |
Gross charge-offs | (113) | 0 | (130) | 0 |
Gross recoveries | 16 | 620 | 1,258 | 1,155 |
Total net (charge-offs) recoveries | (97) | 620 | 1,128 | 1,155 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 21,925 | 25,058 | 21,925 | 25,058 |
Commercial lending | Residential loan | Multifamily residential | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | (8,112) | |||
Commercial lending | Residential loan | Multifamily residential | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 14,714 | |||
Commercial lending | Construction and land | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 19,089 | 11,018 | 10,239 | 19,404 |
(Reversal of) provision for credit losses on loans | (3,243) | 7,526 | 5,349 | 9,008 |
Gross charge-offs | (209) | 0 | (280) | 0 |
Gross recoveries | 6 | 7 | 335 | 28 |
Total net (charge-offs) recoveries | (203) | 7 | 55 | 28 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 15,643 | 18,551 | 15,643 | 18,551 |
Commercial lending | Construction and land | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | (9,889) | |||
Commercial lending | Construction and land | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 9,515 | |||
Consumer lending | Residential loan | Single-family residential | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 15,839 | 26,822 | 15,520 | 28,527 |
(Reversal of) provision for credit losses on loans | 609 | (1,667) | 985 | 33 |
Gross charge-offs | 0 | 0 | (134) | 0 |
Gross recoveries | 82 | 159 | 159 | 424 |
Total net (charge-offs) recoveries | 82 | 159 | 25 | 424 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 16,530 | 25,314 | 16,530 | 25,314 |
Consumer lending | Residential loan | Single-family residential | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | (3,670) | |||
Consumer lending | Residential loan | Single-family residential | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 24,857 | |||
Consumer lending | HELOCs | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 2,670 | 3,881 | 2,690 | 5,265 |
(Reversal of) provision for credit losses on loans | 250 | 205 | 272 | 617 |
Gross charge-offs | 0 | (221) | (45) | (221) |
Gross recoveries | 18 | 2 | 21 | 4 |
Total net (charge-offs) recoveries | 18 | (219) | (24) | (217) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | 2,938 | 3,867 | 2,938 | 3,867 |
Consumer lending | HELOCs | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | (1,798) | |||
Consumer lending | HELOCs | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 3,467 | |||
Consumer lending | Other consumer | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 2,018 | 3,304 | 2,130 | 3,380 |
(Reversal of) provision for credit losses on loans | 2,209 | (849) | 2,096 | (3,121) |
Gross charge-offs | (32) | (30) | (33) | (56) |
Gross recoveries | 3 | 93 | 5 | 94 |
Total net (charge-offs) recoveries | (29) | 63 | (28) | 38 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | $ 4,198 | $ 2,518 | $ 4,198 | 2,518 |
Consumer lending | Other consumer | Cumulative Effect, Period Of Adoption, Adjustment | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | 2,221 | |||
Consumer lending | Other consumer | Cumulative Effect, Period of Adoption, Adjusted Balance | ASU 2016-13 | ||||
Allowance for loan losses | ||||
Allowance for loan losses, beginning of period | $ 5,601 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Credit Losses (Summary of Activities in Allowance for loan losses by Portfolio Segments and Unfunded Credit Commitments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | $ 33,500 | |||
(Reversal of) provision for credit losses | $ (15,000) | $ 102,443 | (15,000) | $ 176,313 |
Allowance for unfunded credit commitments, end of period | 26,200 | 26,200 | ||
Unfunded Credit Commitments | ||||
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | 32,529 | 20,829 | 33,577 | 11,158 |
(Reversal of) provision for credit losses | (6,229) | 8,143 | (7,277) | 7,357 |
Allowance for unfunded credit commitments, end of period | 26,300 | 28,972 | 26,300 | 28,972 |
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Allowance for unfunded credit reserves | ||||
Allowance for unfunded credit commitments, beginning of period | $ 0 | $ 0 | $ 0 | $ 10,457 |
Loans Receivable and Allowan_14
Loans Receivable and Allowance for Credit Losses (Allowance for Credit Losses Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable Allowance for Credit Losses | |||||
Financing receivable and off balance sheet credit loss allowance | $ 612,000 | $ 612,000 | $ 653,600 | ||
Decrease in allowance for credit losses | (41,600) | ||||
Provision for (reversal of) credit losses | (15,000) | $ 102,443 | (15,000) | $ 176,313 | |
Commercial lending | |||||
Financing Receivable Allowance for Credit Losses | |||||
Collateral dependent loan | 107,200 | 107,200 | 97,200 | ||
Consumer lending | |||||
Financing Receivable Allowance for Credit Losses | |||||
Collateral dependent loan | $ 18,800 | 18,800 | $ 17,300 | ||
Commercial and consumer lending | |||||
Financing Receivable Allowance for Credit Losses | |||||
Decrease to allowance for loan losses | (34,300) | ||||
Decrease in allowance for unfunded credit commitments | $ (7,300) |
Loans Receivable and Allowan_15
Loans Receivable and Allowance for Credit Losses (Loan Purchases, Sales And Transfers Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | $ 1,800 | |
Real estate loan | Single Family Residential | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | $ 1,800 | |
Commercial and industrial (“C&I”) | Commercial and industrial (“C&I”) | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | 1,500 | |
Single Family Residential | Single Family Residential | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans held-for-sale | $ 326 |
Loans Receivable and Allowan_16
Loans Receivable and Allowance for Credit Losses (Loan Purchases, Sales and Transfers) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | $ 101,764 | $ 33,060 | $ 247,636 | $ 143,283 |
Sales | 104,180 | 46,768 | 257,597 | 161,633 |
Purchases | 231,578 | 12,510 | 542,426 | 145,690 |
Allowance for loan and lease losses, Loans transferred from held-for-investment to held-for-sales, write-offs | 1,300 | 0 | 1,300 | 0 |
Net gains on sales of loans | 1,491 | 132 | 3,272 | 1,082 |
Commercial and industrial (“C&I”) | Originated | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 67,600 | 198,600 | ||
Commercial and industrial (“C&I”) | Single-family residential | Originated | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 46,800 | 161,600 | ||
Loans sold in secondary market | Purchased | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Sales | 36,600 | 0 | 59,000 | 0 |
Commercial lending | Commercial and industrial (“C&I”) | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 84,745 | 33,060 | 210,585 | 136,033 |
Sales | 84,503 | 33,060 | 210,382 | 136,033 |
Purchases | 66,415 | 12,503 | 245,093 | 143,086 |
Commercial lending | Commercial real estate (“CRE”) | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 17,019 | 37,051 | 7,250 | |
Sales | 17,019 | 37,051 | 7,250 | |
Purchases | 0 | 0 | 0 | |
Commercial lending | Real estate loan | Multifamily residential | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | |
Purchases | 7 | 370 | 1,520 | |
Consumer lending | Real estate loan | Single-family residential | ||||
Loans Receivable and Allowance for Credit Losses | ||||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 | 0 | 0 |
Sales | 2,658 | 13,708 | 10,164 | 18,350 |
Purchases | $ 165,163 | $ 0 | $ 296,963 | $ 1,084 |
Investments in Qualified Affo_3
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities (Investments in Qualified Affordable Housing Partnerships, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities [Abstract] | |||||
Minimum compliance period for qualified affordable housing partnerships to fully utilize the tax credits (in years) | 15 years | ||||
Investments in Qualified Affordable Housing Partnerships, Net, And Related Unfunded Commitments [Abstract] | |||||
Investments in qualified affordable housing partnerships, net | $ 287,432 | $ 287,432 | $ 213,555 | ||
Accrued expenses and other liabilities — Unfunded commitments | 136,571 | 136,571 | $ 77,444 | ||
Additional Information related to Investments in Qualified Affordable Housing Partnerships, Net [Abstract] | |||||
Tax credits and other tax benefits recognized | 10,052 | $ 11,772 | 21,080 | $ 22,803 | |
Amortization expense included in income tax expense | $ 7,736 | $ 9,148 | $ 16,448 | $ 17,532 |
Investments in Qualified Affo_4
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities (Investments in Tax Credit and Other Investments, Net) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)credit | Jun. 30, 2020USD ($)credit | Jun. 30, 2021USD ($)credit | Jun. 30, 2020USD ($)credit | Dec. 31, 2020USD ($) | |
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Investments in tax credit and other investments, net | $ 364,187,000 | $ 364,187,000 | $ 266,525,000 | ||
Accrued expenses and other liabilities — Unfunded commitments | 195,631,000 | 195,631,000 | 105,282,000 | ||
Amortization expense of tax credit and other investments | 27,291,000 | $ 21,829,000 | 52,649,000 | $ 40,611,000 | |
Unrealized gains (losses) recognized on equity securities with readily determinable fair values | 69,000 | 720,000 | (428,000) | 758,000 | |
Adjustments to equity securities without readily determinable fair values | 0 | 0 | 0 | 0 | |
Investment in tax credit and other investments | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Pre-tax recoveries | $ 109,000 | ||||
OTTI charges | 0 | 0 | |||
Investment in Tax Credit and Other Investments, Single Credit | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Pre-tax recoveries | $ 1,300,000 | ||||
Number of historic tax credits | credit | 1 | 1 | |||
Investment in Tax Credit and Other Investments, Multiple Credit | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Pre-tax recoveries | $ 877,000 | $ 259,000 | |||
Number of energy tax credits | credit | 2 | 2 | |||
Number of historic tax credits | credit | 2 | ||||
Investment in Tax Credit and Other Investments, OTTI, Single Credit | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
OTTI charges | $ 733,000 | $ 733,000 | |||
Number of historic tax credits | credit | 1 | 1 | |||
Number of CRA investment | credit | 1 | 1 | |||
Tax credit investments | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Equity securities with readily determinable fair values | $ 26,800,000 | $ 26,800,000 | 31,300,000 | ||
Investments in Tax Credit and Other Investments and Other Assets | |||||
Investments in Tax Credit and Other Investments, Net, And Related Unfunded Commitments [Abstract] | |||||
Equity securities without readily determinable fair values | $ 29,300,000 | $ 29,300,000 | $ 23,700,000 |
Investments in Qualified Affo_5
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net and Variable Interest Entities (Variable Interest Entities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments in Tax Credit and Other Investments, Net [Line Items] | ||
Fair Value | $ 8,399,460 | $ 5,544,658 |
Collateralized loan obligations (“CLOs”) | ||
Investments in Tax Credit and Other Investments, Net [Line Items] | ||
Fair Value | 291,529 | 287,494 |
Collateralized loan obligations (“CLOs”) | AFS debt securities | ||
Investments in Tax Credit and Other Investments, Net [Line Items] | ||
Fair Value | $ 291,500 | $ 287,500 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative - Goodwill & Impairment Analysis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 465,697 | $ 465,697 | $ 465,697 | ||
Goodwill impairment | $ 0 | ||||
Core Deposit Intangibles | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment write downs on the core deposit intangibles | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Core Deposit Intangibles) (Details) - Core Deposit Intangibles - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross balance | $ 86,099 | $ 86,099 |
Accumulated amortization | (81,164) | (79,722) |
Net Carrying Balance | $ 4,935 | $ 6,377 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Amortization Expense of Core Deposit Intangibles and Estimated Future Amortization Expense ) (Details) - Core Deposit Intangibles - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense related to the core deposit intangible assets | $ 710 | $ 931 | $ 1,400 | $ 1,900 | |
Estimated future amortization expense | |||||
Remainder of 2021 | 1,308 | 1,308 | |||
2022 | 1,864 | 1,864 | |||
2023 | 1,199 | 1,199 | |||
2024 | 553 | 553 | |||
2025 | 11 | 11 | |||
Net Carrying Balance | $ 4,935 | $ 4,935 | $ 6,377 |
Commitments and Contingencies_2
Commitments and Contingencies (Credit-Related Commitments) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Loan commitments | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | $ 3,051,435 | |
Expire After One Year Through Three Years | 2,044,785 | |
Expire After Three Years Through Five Years | 621,980 | |
Expire After Five Years | 170,089 | |
Total | 5,888,289 | $ 5,690,847 |
Commercial letters of credit and SBLCs | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | 1,195,372 | |
Expire After One Year Through Three Years | 351,903 | |
Expire After Three Years Through Five Years | 170,148 | |
Expire After Five Years | 535,953 | |
Total | 2,253,376 | 2,240,813 |
Commitments to Extend Credit | ||
Commitments to Extend Credit | ||
Expire in One Year or Less | 4,246,807 | |
Expire After One Year Through Three Years | 2,396,688 | |
Expire After Three Years Through Five Years | 792,128 | |
Expire After Five Years | 706,042 | |
Total | $ 8,141,665 | $ 7,931,660 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments to Extend Credit | ||
Letters of credit | $ 2,250,000 | $ 2,240,000 |
Allowance for unfunded credit commitments | 26,200 | 33,500 |
Accrued expenses and other liabilities | ||
Other Commitments | ||
Unfunded commitments for investments in AHP and other tax credit investments | 332,200 | 182,700 |
Single Family and Multi-family Residential Loans | Loans Sold or Securitized with Recourse | Loans Sold or Securitized With Recourse | ||
Commitments to Extend Credit | ||
Allowance for unfunded credit commitments | 68 | 88 |
Standby Letters of Credit | ||
Commitments to Extend Credit | ||
Letters of credit | 2,170,000 | 2,120,000 |
Commercial Letters of Credit | ||
Commitments to Extend Credit | ||
Letters of credit | $ 87,400 | $ 124,900 |
Commitments and Contingencies_4
Commitments and Contingencies (Guarantees Outstanding) (Details) - Loans Sold or Securitized With Recourse - Loans Sold or Securitized with Recourse - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | $ 41 | |
Expire After One Year Through Three Years | 589 | |
Expire After Three Years Through Five Years | 208 | |
Expire After Five Years | 23,762 | |
Total | 24,600 | $ 26,198 |
Carrying Value | 33,973 | 37,145 |
Single Family Residential | ||
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | 41 | |
Expire After One Year Through Three Years | 396 | |
Expire After Three Years Through Five Years | 208 | |
Expire After Five Years | 8,766 | |
Total | 9,411 | 10,526 |
Carrying Value | 9,411 | 10,526 |
Multifamily residential | ||
Guarantor obligation, maximum potential future payment [Abstract] | ||
Expire in One Year or Less | 0 | |
Expire After One Year Through Three Years | 193 | |
Expire After Three Years Through Five Years | 0 | |
Expire After Five Years | 14,996 | |
Total | 15,189 | 15,672 |
Carrying Value | $ 24,562 | $ 26,619 |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options outstanding (in shares) | 0 | 0 |
RSUs | Cliff | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost | $ 19.4 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 1 month 6 days | |
Performance-Based RSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential for awards to vest (as a percent) | 0.00% | |
Performance-Based RSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential for awards to vest (as a percent) | 200.00% | |
Performance-Based RSUs | Cliff | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Time-Based RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation cost | $ 32.3 | |
Weighted average period to recognize unrecognized compensation cost | 2 years 14 days |
Stock Compensation Plans (Summa
Stock Compensation Plans (Summary of Total Share-Based Compensation Expense and Related Net Tax Benefits) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Total Share-based Stock Compensation Expense and Related Net Tax Benefit [Abstract] | ||||
Stock compensation costs | $ 8,208 | $ 7,071 | $ 16,025 | $ 14,280 |
Related net tax benefits (deficiencies) for stock compensation plans | $ 37 | $ (9) | $ 1,657 | $ (1,575) |
Stock Compensation Plans (Sum_2
Stock Compensation Plans (Summary of Activity for Time-Based and Performance-Based RSUs) (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Time-Based RSUs Settled in Shares | |
Shares | |
Outstanding, at beginning of period (in shares) | 1,345,635 |
Granted (in shares) | 382,359 |
Vested (in shares) | (285,513) |
Forfeited (in shares) | (65,648) |
Outstanding, at end of period (in shares) | 1,376,833 |
Weighted-Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 50.22 |
Granted (in dollars per share) | $ / shares | 71.41 |
Vested (in dollars per share) | $ / shares | 67.26 |
Forfeited (in dollars per share) | $ / shares | 56.26 |
Outstanding, at end of period (in dollars per share) | $ / shares | $ 52.28 |
Performance-Based RSUs Settled in Shares | |
Shares | |
Outstanding, at beginning of period (in shares) | 398,057 |
Granted (in shares) | 91,960 |
Vested (in shares) | (120,286) |
Forfeited (in shares) | 0 |
Outstanding, at end of period (in shares) | 369,731 |
Weighted-Average Grant Date Fair Value | |
Outstanding, at beginning of period (in dollars per share) | $ / shares | $ 53.66 |
Granted (in dollars per share) | $ / shares | 77.67 |
Vested (in dollars per share) | $ / shares | 70.13 |
Forfeited (in dollars per share) | $ / shares | 0 |
Outstanding, at end of period (in dollars per share) | $ / shares | $ 54.28 |
Time-Based RSUs Settled in Cash | |
Shares | |
Outstanding, at beginning of period (in shares) | 21,802 |
Granted (in shares) | 15,803 |
Vested (in shares) | 0 |
Forfeited (in shares) | (8,432) |
Outstanding, at end of period (in shares) | 29,173 |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings Per Share (Earnings Per Share Calculation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic: | ||||
Net income | $ 224,742 | $ 99,352 | $ 429,736 | $ 244,176 |
Basic weighted-average number of shares outstanding (in shares) | 141,868 | 141,486 | 141,758 | 143,150 |
Basic EPS (in dollars per share) | $ 1.58 | $ 0.70 | $ 3.03 | $ 1.71 |
Diluted: | ||||
Net income | $ 224,742 | $ 99,352 | $ 429,736 | $ 244,176 |
Basic weighted-average number of shares outstanding (in shares) | 141,868 | 141,486 | 141,758 | 143,150 |
Diluted potential common shares (in shares) | 1,172 | 341 | 1,205 | 410 |
Diluted weighted-average number of shares outstanding (in shares) | 143,040 | 141,827 | 142,963 | 143,560 |
Diluted EPS (in dollars per share) | $ 1.57 | $ 0.70 | $ 3.01 | $ 1.70 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings Per Share (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Stockholders' Equity and Earnings Per Share [Line Items] | |||||
Stock repurchase program, amount authorized | $ 500 | ||||
Repurchased by company (in shares) | 4,471,682 | ||||
Average price (in dollars per share) | $ 32.64 | ||||
Total cost | $ 146 | ||||
RSUs | |||||
Stockholders' Equity and Earnings Per Share [Line Items] | |||||
Weighted-average anti-dilutive shares (in shares) | 2,000 | 1,200,000 | 4,000 | 620,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 5,285,027 | $ 4,902,985 | $ 5,269,175 | $ 5,017,617 |
Other comprehensive income (loss) | 75,351 | 16,253 | (59,014) | 41,542 |
Ending balance | 5,547,548 | 4,987,243 | 5,547,548 | 4,987,243 |
AFS Debt Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (81,201) | 25,034 | 52,247 | (2,419) |
Net unrealized gains (losses) arising during the period | 73,494 | 24,606 | (59,819) | 53,136 |
Amounts reclassified from AOCI | (445) | (6,790) | (580) | (7,867) |
Other comprehensive income (loss) | 73,049 | 17,816 | (60,399) | 45,269 |
Ending balance | (8,152) | 42,850 | (8,152) | 42,850 |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (798) | 0 | (1,230) | 0 |
Net unrealized gains (losses) arising during the period | (76) | (1,063) | 229 | (1,063) |
Amounts reclassified from AOCI | 144 | (270) | 271 | (270) |
Other comprehensive income (loss) | 68 | (1,333) | 500 | (1,333) |
Ending balance | (730) | (1,333) | (730) | (1,333) |
Foreign Currency Translation Adjustments, Net of Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (8,041) | (18,153) | (6,692) | (15,989) |
Net unrealized gains (losses) arising during the period | 2,234 | (230) | 885 | (2,394) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 2,234 | (230) | 885 | (2,394) |
Ending balance | (5,807) | (18,383) | (5,807) | (18,383) |
AOCI, Net of Tax | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (90,040) | 6,881 | 44,325 | (18,408) |
Net unrealized gains (losses) arising during the period | 75,652 | 23,313 | (58,705) | 49,679 |
Amounts reclassified from AOCI | (301) | (7,060) | (309) | (8,137) |
Other comprehensive income (loss) | 75,351 | 16,253 | (59,014) | 41,542 |
Ending balance | $ (14,689) | $ 23,134 | $ (14,689) | $ 23,134 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Before-Tax | ||||
Net change | $ 105,330 | $ 23,091 | $ (84,844) | $ 60,289 |
Tax Effect | ||||
Net change | (29,979) | (6,838) | 25,830 | (18,747) |
Net-of-Tax | ||||
Other comprehensive income (loss) | 75,351 | 16,253 | (59,014) | 41,542 |
AFS Debt Securities | ||||
Before-Tax | ||||
Net unrealized gains (losses) arising during the period | 104,283 | 34,970 | (84,993) | 75,463 |
Net realized losses (gains) reclassified into net income | (632) | (9,640) | (824) | (11,169) |
Net change | 103,651 | 25,330 | (85,817) | 64,294 |
Tax Effect | ||||
Net unrealized gains (losses) arising during the period | (30,789) | (10,364) | 25,174 | (22,327) |
Net realized losses (gains) reclassified into net income | 187 | 2,850 | 244 | 3,302 |
Net change | (30,602) | (7,514) | 25,418 | (19,025) |
Net-of-Tax | ||||
Net unrealized gains (losses) arising during the period | 73,494 | 24,606 | (59,819) | 53,136 |
Net realized losses (gains) reclassified into net income | (445) | (6,790) | (580) | (7,867) |
Other comprehensive income (loss) | 73,049 | 17,816 | (60,399) | 45,269 |
Cash Flow Hedges | ||||
Before-Tax | ||||
Net unrealized gains (losses) arising during the period | (106) | (1,483) | 320 | (1,483) |
Net realized losses (gains) reclassified into net income | 201 | (377) | 378 | (377) |
Net change | 95 | (1,860) | 698 | (1,860) |
Tax Effect | ||||
Net unrealized gains (losses) arising during the period | 30 | 420 | (91) | 420 |
Net realized losses (gains) reclassified into net income | (57) | 107 | (107) | 107 |
Net change | (27) | 527 | (198) | 527 |
Net-of-Tax | ||||
Net unrealized gains (losses) arising during the period | (76) | (1,063) | 229 | (1,063) |
Net realized losses (gains) reclassified into net income | 144 | (270) | 271 | (270) |
Other comprehensive income (loss) | 68 | (1,333) | 500 | (1,333) |
Foreign Currency Translation Adjustments, Net of Hedges | ||||
Before-Tax | ||||
Net unrealized gains (losses) arising during the period | 1,584 | (379) | 275 | (2,145) |
Net change | 1,584 | (379) | 275 | (2,145) |
Tax Effect | ||||
Net unrealized gains (losses) arising during the period | 650 | 149 | 610 | (249) |
Net change | 650 | 149 | 610 | (249) |
Net-of-Tax | ||||
Net unrealized gains (losses) arising during the period | 2,234 | (230) | 885 | (2,394) |
Net realized losses (gains) reclassified into net income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | $ 2,234 | $ (230) | $ 885 | $ (2,394) |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Number of core segments | 2 |
Business Segments (Operating Re
Business Segments (Operating Results and Other Key Financial Measures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information | |||||
Net interest income before provision for (reversal of) credit losses | $ 376,473 | $ 343,775 | $ 730,168 | $ 706,482 | |
Provision for (reversal of) credit losses | (15,000) | 102,443 | (15,000) | 176,313 | |
Noninterest income | 68,431 | 55,707 | 141,297 | 111,213 | |
Noninterest expense | 189,523 | 184,766 | 380,600 | 365,099 | |
Segment income (loss) before income taxes | 270,381 | 112,273 | 505,865 | 276,283 | |
Segment net income | 224,742 | 99,352 | 429,736 | 244,176 | |
Segment assets | 59,854,876 | 49,407,593 | 59,854,876 | 49,407,593 | $ 52,156,913 |
Consumer and Business Banking | |||||
Segment Reporting Information | |||||
Net interest income before provision for (reversal of) credit losses | 173,775 | 124,926 | 323,674 | 277,517 | |
Provision for (reversal of) credit losses | 2,358 | 5,590 | (1,891) | 13,378 | |
Noninterest income | 24,454 | 13,943 | 45,282 | 30,345 | |
Noninterest expense | 87,650 | 80,164 | 176,936 | 167,128 | |
Segment income (loss) before income taxes | 108,221 | 53,115 | 193,911 | 127,356 | |
Segment net income | 77,517 | 38,058 | 138,895 | 91,253 | |
Segment assets | 14,594,087 | 12,666,938 | 14,594,087 | 12,666,938 | |
Commercial Banking | |||||
Segment Reporting Information | |||||
Net interest income before provision for (reversal of) credit losses | 192,696 | 183,796 | 369,788 | 367,297 | |
Provision for (reversal of) credit losses | (17,358) | 96,853 | (13,109) | 162,935 | |
Noninterest income | 32,552 | 33,887 | 82,562 | 66,343 | |
Noninterest expense | 64,164 | 64,900 | 133,421 | 135,026 | |
Segment income (loss) before income taxes | 178,442 | 55,930 | 332,038 | 135,679 | |
Segment net income | 127,785 | 40,178 | 237,865 | 97,309 | |
Segment assets | 27,354,253 | 26,984,013 | 27,354,253 | 26,984,013 | |
Other | |||||
Segment Reporting Information | |||||
Net interest income before provision for (reversal of) credit losses | 10,002 | 35,053 | 36,706 | 61,668 | |
Provision for (reversal of) credit losses | 0 | 0 | 0 | 0 | |
Noninterest income | 11,425 | 7,877 | 13,453 | 14,525 | |
Noninterest expense | 37,709 | 39,702 | 70,243 | 62,945 | |
Segment income (loss) before income taxes | (16,282) | 3,228 | (20,084) | 13,248 | |
Segment net income | 19,440 | 21,116 | 52,976 | 55,614 | |
Segment assets | $ 17,906,536 | $ 9,756,642 | $ 17,906,536 | $ 9,756,642 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 16, 2021$ / shares |
Subsequent Event | |
Subsequent events | |
Dividends payable (in dollars per share) | $ 0.33 |
Uncategorized Items - ewbc-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |