Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | EAST WEST BANCORP INC | ||
Entity Central Index Key | 1,069,157 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 144,544,022 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 8,393,797,096 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 457,181 | $ 460,559 |
Interest-bearing cash with banks | 1,717,411 | 1,417,944 |
Cash and cash equivalents | 2,174,592 | 1,878,503 |
Interest-bearing deposits with banks | 398,422 | 323,148 |
Securities purchased under resale agreements (“resale agreements”) | 1,050,000 | 2,000,000 |
Securities: | ||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $534,327 in 2017 and $767,437 in 2016) | 3,016,752 | 3,335,795 |
Held-to-maturity investment security, at cost (fair value of $144,593 in 2016) | 0 | 143,971 |
Restricted equity securities, at cost | 73,521 | 72,775 |
Loans held-for-sale | 85 | 23,076 |
Loans held-for-investment (net of allowance for loan losses of $287,128 in 2017 and $260,520 in 2016; includes assets pledged as collateral of $18,880,598 in 2017 and $16,441,068 in 2016) | 28,688,590 | 25,242,619 |
Investments in qualified affordable housing partnerships, net | 162,824 | 183,917 |
Investments in tax credit investments, net | 224,551 | 173,280 |
Premises and equipment (net of accumulated depreciation of $111,898 in 2017 and $114,890 in 2016) | 121,209 | 159,923 |
Goodwill | 469,433 | 469,433 |
Branch assets held-for-sale | 91,318 | 0 |
Other assets | 678,952 | 782,400 |
TOTAL | 37,150,249 | 34,788,840 |
Deposits: | ||
Noninterest-bearing | 10,887,306 | 10,183,946 |
Interest-bearing | 20,727,757 | 19,707,037 |
Total deposits | 31,615,063 | 29,890,983 |
Branch liability held-for-sale | 605,111 | 0 |
Short-term borrowings | 0 | 60,050 |
Federal Home Loan Bank (“FHLB”) advances | 323,891 | 321,643 |
Securities sold under repurchase agreements (“repurchase agreements”) | 50,000 | 350,000 |
Long-term debt | 171,577 | 186,327 |
Accrued expenses and other liabilities | 542,656 | 552,096 |
Total liabilities | 33,308,298 | 31,361,099 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued in 2017 and 2016, respectively | 165 | 164 |
Additional paid-in capital | 1,755,330 | 1,727,434 |
Retained earnings | 2,576,302 | 2,187,676 |
Treasury stock, at cost — 20,671,710 shares in 2017 and 20,436,621 shares in 2016 | (452,327) | (439,387) |
Accumulated other comprehensive loss, net of tax | (37,519) | (48,146) |
Total stockholders’ equity | 3,841,951 | 3,427,741 |
TOTAL | $ 37,150,249 | $ 34,788,840 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Available-for-sale investment securities, at fair value (includes assets pledged as collateral of $534,327 in 2017 and $767,437 in 2016) | $ 534,327 | $ 767,437 |
Held-to-maturity investment security, at fair value | 0 | 144,593 |
Loans held-for-investment (net of allowance for loan losses of $287,128 in 2017 and $260,520 in 2016; includes assets pledged as collateral of $18,880,598 in 2017 and $16,441,068 in 2016) | 287,128 | 260,520 |
Loans pledged as collateral | 18,880,598 | 16,441,068 |
Premises and equipment, accumulated depreciation | $ 111,898 | $ 114,890 |
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) | 165,214,770 | 164,604,072 |
Treasury stock, shares (in shares) | 20,671,710 | 20,436,621 |
Consolidated Statement of incom
Consolidated Statement of income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INTEREST AND DIVIDEND INCOME | |||
Loans receivable, including fees | $ 1,198,440 | $ 1,035,377 | $ 968,625 |
Investment securities | 58,670 | 53,399 | 41,375 |
Resale agreements | 32,095 | 30,547 | 19,799 |
Restricted equity securities | 2,524 | 3,427 | 6,077 |
Interest-bearing cash and deposits with banks | 33,390 | 14,731 | 17,939 |
Total interest and dividend income | 1,325,119 | 1,137,481 | 1,053,815 |
INTEREST EXPENSE | |||
Deposits | 116,391 | 84,224 | 73,505 |
Federal funds purchased and other short-term borrowings | 1,003 | 713 | 58 |
FHLB advances | 7,751 | 5,585 | 4,270 |
Repurchase agreements | 9,476 | 9,304 | 20,907 |
Long-term debt | 5,429 | 5,017 | 4,636 |
Total interest expense | 140,050 | 104,843 | 103,376 |
Net interest income before provision for credit losses | 1,185,069 | 1,032,638 | 950,439 |
Provision for credit losses | 46,266 | 27,479 | 14,217 |
Net interest income after provision for credit losses | 1,138,803 | 1,005,159 | 936,222 |
NONINTEREST INCOME | |||
Branch fees | 42,490 | 41,178 | 39,495 |
Letters of credit fees and foreign exchange income | 42,779 | 45,760 | 38,985 |
Ancillary loan fees and other income | 23,333 | 19,352 | 15,029 |
Wealth management fees | 14,632 | 13,240 | 18,268 |
Derivative fees and other income | 17,671 | 16,781 | 16,493 |
Net gains on sales of loans | 8,870 | 6,085 | 24,873 |
Net gains on sales of available-for-sale investment securities | 8,037 | 10,362 | 40,367 |
Net gains on sales of fixed assets | 77,388 | 3,178 | 3,567 |
Net gain on sale of business | 3,807 | 0 | 0 |
Changes in Federal Deposit Insurance Corporation (“FDIC”) indemnification asset and receivable/payable | 0 | 0 | (37,980) |
Other fees and operating income | 19,399 | 26,982 | 24,286 |
Total noninterest income | 258,406 | 182,918 | 183,383 |
NONINTEREST EXPENSE | |||
Compensation and employee benefits | 335,291 | 300,115 | 262,193 |
Occupancy and equipment expense | 64,921 | 61,453 | 61,292 |
Deposit insurance premiums and regulatory assessments | 23,735 | 23,279 | 18,772 |
Legal expense | 11,444 | 2,841 | 16,373 |
Data processing | 12,093 | 11,683 | 10,185 |
Consulting expense | 14,922 | 22,742 | 17,234 |
Deposit related expense | 9,938 | 10,394 | 10,379 |
Computer software expense | 18,183 | 12,914 | 8,660 |
Other operating expense | 76,697 | 78,936 | 68,624 |
Amortization of tax credit and other investments | 87,950 | 83,446 | 36,120 |
Amortization of core deposit intangibles | 6,935 | 8,086 | 9,234 |
Repurchase agreements’ extinguishment costs | 0 | 0 | 21,818 |
Total noninterest expense | 662,109 | 615,889 | 540,884 |
INCOME BEFORE INCOME TAXES | 735,100 | 572,188 | 578,721 |
INCOME TAX EXPENSE | 229,476 | 140,511 | 194,044 |
NET INCOME | $ 505,624 | $ 431,677 | $ 384,677 |
EARNINGS PER SHARE (“EPS”) | |||
BASIC (in dollars per share) | $ 3.50 | $ 3 | $ 2.67 |
DILUTED (in dollars per share) | $ 3.47 | $ 2.97 | $ 2.66 |
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING | |||
BASIC (in shares) | 144,444 | 144,087 | 143,818 |
DILUTED (in shares) | 145,913 | 145,172 | 144,512 |
CASH DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.8 | $ 0.8 | $ 0.8 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 505,624 | $ 431,677 | $ 384,677 |
Other comprehensive income (loss), net of tax: | |||
Net changes in unrealized losses on available-for-sale investment securities | (2,126) | (22,628) | (10,381) |
Foreign currency translation adjustments | 12,753 | (10,577) | (8,797) |
Other comprehensive income (loss) | 10,627 | (33,205) | (19,178) |
COMPREHENSIVE INCOME | $ 516,251 | $ 398,472 | $ 365,499 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Common Stock and Additional Paid-In Capital | Retained Earnings | Treasury Stock | AOCI, net of Tax |
BALANCE (in shares) at Dec. 31, 2014 | 143,582,229 | |||||
Beginning balance at Dec. 31, 2014 | $ 2,856,111 | $ 1,677,931 | $ 1,604,141 | $ (430,198) | $ 4,237 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 384,677 | 384,677 | ||||
Other comprehensive income (loss) | (19,178) | (19,178) | ||||
Stock compensation costs | 16,502 | 16,502 | ||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 327,004 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 1,062 | 7,026 | (5,964) | |||
Cash dividends on common stock | (116,224) | (116,224) | ||||
BALANCE (in shares) at Dec. 31, 2015 | 143,909,233 | |||||
Ending balance at Dec. 31, 2015 | 3,122,950 | 1,701,459 | 1,872,594 | (436,162) | (14,941) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 431,677 | 431,677 | ||||
Other comprehensive income (loss) | (33,205) | (33,205) | ||||
Stock compensation costs | 22,102 | 22,102 | ||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 258,218 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | 812 | 4,037 | (3,225) | |||
Cash dividends on common stock | (116,595) | (116,595) | ||||
BALANCE (in shares) at Dec. 31, 2016 | 144,167,451 | |||||
Ending balance at Dec. 31, 2016 | 3,427,741 | 1,727,598 | 2,187,676 | (439,387) | (48,146) | |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 505,624 | 505,624 | ||||
Other comprehensive income (loss) | 10,627 | 10,627 | ||||
Stock compensation costs | 24,657 | 24,657 | ||||
Net activity of common stock pursuant to various stock compensation plans and agreements (in shares) | 375,609 | |||||
Net activity of common stock pursuant to various stock compensation plans and agreements | (9,700) | 3,240 | (12,940) | |||
Cash dividends on common stock | (116,998) | (116,998) | ||||
BALANCE (in shares) at Dec. 31, 2017 | 144,543,060 | |||||
Ending balance at Dec. 31, 2017 | $ 3,841,951 | $ 1,755,495 | $ 2,576,302 | $ (452,327) | $ (37,519) |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 505,624 | $ 431,677 | $ 384,677 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 149,822 | 137,578 | 88,728 | |
Accretion of discount and amortization of premiums, net | (7,260) | (26,024) | (45,101) | |
Changes in FDIC indemnification asset and receivable/payable | 0 | 0 | 37,980 | |
Stock compensation costs | 24,657 | 22,102 | 16,502 | |
Deferred income tax expense | 33,856 | 26,966 | 261,214 | |
Provision for credit losses | 46,266 | 27,479 | 14,217 | |
Net gains on sales of loans | (8,870) | (6,085) | (24,873) | |
Net gains on sales of available-for-sale investment securities | (8,037) | (10,362) | (40,367) | |
Net gains on sales of premises and equipment | (77,388) | (3,178) | (3,567) | |
Net gains on sales of OREO | (1,024) | (951) | (11,079) | |
Net gain on sale of business | (3,807) | 0 | 0 | |
Originations and purchases of loans held-for-sale | (20,521) | (18,804) | (623) | |
Proceeds from sales and paydowns/payoffs in loans held-for-sale | 21,363 | 23,749 | 3,174 | |
Repurchase agreements’ extinguishment costs | 0 | 0 | 21,818 | |
Net payments to FDIC shared-loss agreements | 0 | 0 | (132,999) | |
Net change in accrued interest receivable and other assets | 46,005 | 23,685 | (117,046) | |
Net change in accrued expenses and other liabilities | (1,966) | 15,353 | 16,785 | |
Other net operating activities | (1,814) | (1,329) | 184 | |
Total adjustments | 191,282 | 210,179 | 84,947 | |
Net cash provided by (used in) operating activities | 696,906 | 641,856 | 469,624 | |
Net (increase) decrease in: | ||||
Loans held-for-investment | (3,514,786) | (1,549,736) | (3,285,436) | |
Interest-bearing deposits with banks | (63,096) | (38,249) | 30,140 | |
Investments in qualified affordable housing partnerships, tax credit and other investments | (161,661) | (87,860) | (95,074) | |
Purchases of: | ||||
Resale agreements | (600,000) | (1,550,000) | (1,675,000) | |
Available-for-sale investment securities | (828,604) | (2,396,199) | (3,547,193) | |
Loans held-for-investment | (534,816) | (1,142,054) | (282,548) | |
Premises and equipment | (13,754) | (12,181) | (6,555) | |
Proceeds from sale of: | ||||
Available-for-sale investment securities | 832,844 | 1,275,645 | 1,669,334 | |
Loans held-for-investment | 566,688 | 661,025 | 1,729,187 | |
Other real estate owned (“OREO”) | 6,999 | 7,408 | 41,050 | |
Premises and equipment | 119,749 | 8,163 | 7,133 | |
Business, net of cash transferred | 3,633 | 0 | 0 | |
Paydowns and maturities of resale agreements | 1,250,000 | 1,500,000 | 1,050,000 | |
Repayments, maturities and redemptions of available-for-sale investment securities | 413,593 | 1,503,127 | 734,934 | |
Other net investing activities | 22,756 | 28,251 | 2,147 | |
Net cash used in investing activities | (2,500,455) | (1,792,660) | (3,627,881) | |
Net increase (decrease) in: | ||||
Deposits | 2,272,500 | 2,452,870 | 3,492,603 | |
Short-term borrowings | (61,560) | 62,506 | 0 | |
Proceeds from: | ||||
FHLB advances | 0 | 0 | 700,000 | |
Issuance of common stock pursuant to various stock compensation plans and agreements | 2,280 | 2,982 | 2,835 | |
Payments for: | ||||
Repayment of FHLB advances | 0 | (700,000) | 0 | |
Repayment of long-term debt | (15,000) | (20,000) | (20,000) | |
Extinguishment of repurchase agreements | 0 | 0 | (566,818) | |
Repurchase of vested shares due to employee tax liability | (12,940) | (3,225) | (5,964) | |
Cash dividends on common stock | (116,820) | (115,828) | (115,641) | |
Other net financing activities | 0 | 1,055 | 3,291 | |
Net cash provided by financing activities | 2,068,460 | 1,680,360 | 3,490,306 | |
Effect of exchange rate changes on cash and cash equivalents | 31,178 | (11,940) | (11,047) | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 296,089 | 517,616 | 321,002 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,878,503 | 1,360,887 | 1,039,885 | |
CASH AND CASH EQUIVALENTS, END OF YEAR | 2,174,592 | 1,878,503 | 1,360,887 | |
Cash paid (received) during the year for: | ||||
Interest paid | 138,766 | 104,251 | 105,831 | |
Income taxes paid (refunded), net | 98,126 | 39,478 | (18,601) | |
Noncash investing and financing activities: | ||||
Loans transferred from held-for-investment to held-for-sale | [1] | 613,088 | 819,100 | 1,747,621 |
Loans transferred from held-for-sale to held-for-investment | 0 | (4,943) | (53,376) | |
Deposits transferred to branch liability held-for-sale | 605,111 | 0 | 0 | |
Investment security transferred from held-to-maturity to available-for-sale | 115,615 | 0 | 0 | |
Held-to-maturity investment security retained from securitization of loans | 0 | 160,135 | 0 | |
Premises and equipment transferred to branch assets held-for-sale | 8,043 | 0 | 0 | |
Loans transferred to OREO | $ 777 | $ 8,083 | $ 9,296 | |
[1] | December 31, 2017 amount includes loans transferred from held-for-investment to branch assets held-for-sale. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 Bank is the Company’s principal asset. As of December 31, 2017 , the Company operates over 130 locations worldwide including its headquarters, main administrative offices, branches and representative offices. In the U.S., the Bank’s corporate headquarters, main administrative offices and branches are located in California, Texas, New York, Washington, Georgia, Massachusetts, and Nevada. In Greater China, East West’s presence includes full service branches in Hong Kong , Shanghai , Shantou and Shenzhen , and representative offices in Beijing , Chongqing , Guangzhou , Taipei and Xiamen . Significant Accounting Policies Basis of Presentation — The accounting and reporting policies of the Company conform with United States Generally Accepted Accounting Principles (“U.S. GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting period, and the related disclosures. Actual results could differ from those estimates. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the 2017 presentation. Principles of Consolidation — The Consolidated Financial Statements include the accounts of East West and its subsidiaries, as well as East West Bank. Intercompany transactions and accounts have been eliminated in consolidation. 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”) 810, Consolidation, the Trusts are not included on the Consolidated Financial Statements. Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank and other financial institutions, and federal funds sold with original maturities up to three months. Interest-bearing Deposits with Banks — Interest-bearing deposits with banks include cash placed with other banks with original maturities greater than three months and less than one year. Resale Agreements and Repurchase Agreements — Resale agreements are recorded at the balances at which the securities are acquired. The Company’s policy is to monitor the market values of the underlying securities collateralizing the related receivable of the resale agreements, including accrued interest, and obtain collateral from or return collateral pledged to counterparties when appropriate. Repurchase agreements are accounted for as collateralized financing transactions and recorded at the balances at which the securities are sold. The Company may have to provide additional collateral to the counterparties, or may receive collateral returned from counterparties, for the repurchase agreements when appropriate. The Company has elected to offset resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and when the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . Securities — The Company’s securities include various debt and marketable equity securities, and restricted equity securities. The Company classifies its debt and marketable equity securities as available-for-sale or held-to-maturity investment securities based on management’s intention on the date of the purchase. Predominantly all of the Company’s investment securities are held in connection with its asset-liability management objectives. Available-for-sale investment securities are carried at fair value on the Consolidated Balance Sheet. Unrealized gains and losses, net of applicable income taxes, are reported in other comprehensive income. The specific identification method is used in computing realized gains and losses on available-for-sale investment securities that were sold. Held-to-maturity debt securities that management has the intent and ability to hold until maturity are carried at amortized cost. Amortization of premiums and accretion of discounts on investment securities are recorded as yield adjustments on such securities using the effective interest method. For each reporting period, all securities that are in an unrealized loss position are analyzed as part of the Company’s ongoing assessment of other-than-temporary impairment (“OTTI”). In determining whether an impairment is other-than-temporary, the Company considers the severity and duration of the decline in fair value, the length of time expected for recovery, the financial condition of the issuer, changes in the securities’ ratings and other qualitative factors, as well as whether the Company either plans to sell the security or it is more likely than not that it will be required to sell the security before recovery of the amortized cost. When the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery of the amortized cost, the credit component of an OTTI of a debt security is recognized as OTTI loss on the Consolidated Statement of Income and the non-credit component is recognized in other comprehensive income. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security prior to recovery of the amortized cost, the full amount of the impairment loss is recognized as OTTI loss on the Consolidated Statement of Income. If there is an other-than-temporary decline in the fair value of any individual available-for-sale marketable equity security, the cost basis is reduced and the Company reclassifies the associated net unrealized loss out of other comprehensive income with a corresponding charge to the Consolidated Statement of Income. Restricted equity securities include Federal Reserve Bank and FHLB stocks. The Federal Reserve Bank stock is required by law to be held as a condition of membership in the Federal Reserve System. The FHLB stock is required to obtain advances from FHLB. They are carried at cost as they do not have a readily determinable fair value. Loans Held-for-Sale — Loans held-for-sale are carried at lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the foreseeable future, subject to periodic review under the Company’s management evaluation processes, including asset/liability management and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from the loans held-for-investment portfolio to the loans held-for-sale portfolio at the lower of cost or fair value. Any write-down in the carrying amount of the loan at the date of transfer is recorded as a charge-off. Loan origination fees on loans held-for-sale, net of certain costs in processing and closing the loans, are deferred until the time of sale and are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. If the loan or a portion of the loan cannot be sold, it is subsequently transferred back to the loans held-for-investment portfolio from the loans held-for-sale portfolio at lower of cost or fair value on the transfer date. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. Loans Held-for-Investment — Loans receivable that the Company has the intent and ability to hold for the foreseeable future or until maturity are stated at their outstanding principal, reduced by an allowance for loan losses and net of deferred loan fees or costs on originated loans, unearned income, and unamortized premiums or discounts on purchased loans. Nonrefundable fees and direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The deferred net loan fees and costs are recognized in interest income as an adjustment to yield over the loan term using the effective interest method or straight-line method. Discounts or premiums on purchased loans are accreted or amortized to interest income using the effective interest method or straight-line method over the remaining period to contractual maturity. Interest on loans is calculated using the simple-interest method on daily balances of the principal amounts outstanding. Generally, loans are placed on nonaccrual status when they become 90 days past due. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. Loans are also placed on nonaccrual status when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes uncertain, regardless of the length of past due status. Once a loan is placed on nonaccrual status, interest accrual is discontinued and all unpaid accrued interest is reversed against interest income. Interest payments received on nonaccrual loans are reflected as a reduction of principal and not as interest income. A loan is returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan. Troubled Debt Restructurings — A loan is classified as a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date with a stated interest rate lower than the current market rate or note splits referred to as A/B note restructurings. Loans with contractual terms that have been modified as a TDR and are current at the time of restructuring may remain on accrual status if there is demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Otherwise, the loans are placed on nonaccrual status and are reported as nonperforming, until the borrower demonstrates a sustained period of performance, generally six months, and the ability to repay the loan according to the contractual terms. If accruing TDRs cease to perform in accordance with their modified contractual terms, they are placed on nonaccrual status and reported as nonperforming TDRs. TDRs are included in the impaired loan quarterly valuation allowance process. Refer to Impaired Loans below for a complete discussion. Impaired Loans — The Company’s loans are grouped into heterogeneous and homogeneous (mostly consumer loans) categories. Impaired loans are identified and evaluated for impairment on an individual basis. The Company’s impaired loans include predominantly non-purchased credit impaired (“non-PCI”) loans held-for-investment on nonaccrual status and any non-PCI loans modified as a TDR, designated either as performing or nonperforming. A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all scheduled payments of principal or interest due in accordance with the original contractual terms of the loan agreement. Factors considered by management in determining and measuring loan impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of and the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as appropriate, at the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent, less cost to sell. When the value of an impaired loan is less than the recorded investment and the loan is classified as nonperforming and uncollectible, the deficiency is charged off against the allowance for loan losses. If the loan is a performing TDR, the deficiency is included in the specific reserves of the allowance for loan losses, as appropriate. Payments received on impaired loans classified as nonperforming are not recognized in interest income, but are applied as a reduction to the principal outstanding. Allowance for Credit Losses — The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded credit reserves. Unfunded credit reserves include reserves provided for unfunded lending commitments, unissued standby letters of credit and recourse obligations for loans sold. The allowance for loan losses is established as management’s estimate of probable losses inherent in the Company’s lending activities. The allowance for loan losses is increased by the provision for loan losses and decreased by net charge-offs when management believes the uncollectability of a loan is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated monthly by management based on management’s periodic review of the collectability of the loans. The allowance for loan losses on non-PCI loans consists of specific reserves and general reserves. The Company’s non-PCI loans fall into heterogeneous and homogeneous categories. Impaired loans are subject to specific reserves. Non-impaired loans are evaluated as part of the general reserves. General reserves are calculated by utilizing both quantitative and qualitative factors. There are different qualitative risks for the loans in each portfolio segment. Predominant risk characteristics of the commercial real estate (“CRE”) and multifamily residential loans, as well as single-family residential loans include the collateral and geographic locations of the properties collateralizing the loans. Predominant risk characteristics of the commercial and industrial (“C&I”) loans include the global cash flows of the borrowers and guarantors, as well as the economic and market conditions. Predominant risk characteristics of home equity lines of credit (“HELOCs”) include the real estate collateral securing the loans. The Company also maintains an allowance for loan losses on purchased credit impaired (“PCI”) loans when there is deterioration in credit quality subsequent to acquisition. Based on the Company’s estimates of cash flows expected to be collected, the Company establishes an allowance for the PCI loans, with a charge to Provision for credit losses on the Consolidated Statement of Income. When determined uncollectible, it is the Company’s policy to promptly charge off the difference of the outstanding loan balance and the fair value of the collateral or the discounted value of expected cash flows. Recoveries are recorded when payment is received on loans that were previously charged off through the allowance for loan losses. Allocation of a portion of the allowance to one segment of the loan portfolio does not preclude its availability to absorb losses in other segments. The allowance for unfunded credit reserves is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding, and the terms and expiration dates of the unfunded credit facilities. The allowance for loan losses is reported separately on the Consolidated Balance Sheet, whereas the allowance for unfunded credit reserves is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The Provision for credit losses is reported on the Consolidated Statement of Income. Purchased Credit Impaired Loans — Acquired loans are recorded at fair value as of acquisition date in accordance with ASC 805, Business Combinations . A purchased loan is deemed to be credit impaired when there is evidence of credit deterioration since its origination and it is probable at the acquisition date that the Company would be unable to collect all contractually required payments and is accounted for under ASC 310-30, Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality . Under ASC 310-30, loans are recorded at fair value at acquisition date, factoring in credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for loan losses is not carried over or recorded as of the acquisition date. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. The excess of total contractual cash flows over the cash flows expected to be received at origination is deemed the “nonaccretable difference.” In estimating the nonaccretable difference, the Company (a) calculates the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimates the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The cash flows expected over the life of the pools are estimated by an internal cash flows model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions such as cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. Subsequent to the acquisition date, any increases in expected cash flows over the expected cash flows at purchase date in excess of fair value that are significant and probable are adjusted through the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows over the expected cash flows at purchase date that are probable are recognized by a charge to the provision for loan losses. Any disposals of loans, including sales of loans, payments in full or foreclosures, result in the removal of the loan from the ASC 310-30 portfolio at the carrying amount. Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net — The Company records the investments in qualified affordable housing partnerships 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 on the Consolidated Statement of Income as a component of Income tax expense. The Company records investments in tax credit and other investments using either the equity method or cost method of accounting. The tax credits are recognized on the Consolidated Financial Statements to the extent they are utilized on the Company’s income tax returns in the year the credit arises under the flow-through method of accounting. The investments are reviewed for impairment on an annual basis or on an interim basis, if an event occurs that would trigger potential impairment. Premises and Equipment, Net — The Company’s premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed based on the straight-line method over the estimated useful lives of the various classes of assets. The ranges of estimated useful lives for the principal classes of assets are as follows: Premises and Equipment Useful Lives Buildings and building improvements 25 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements Term of lease or useful life, whichever is shorter The Company reviews its long-lived assets for impairment annually, or when events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. An asset is considered impaired when the fair value, which is the expected undiscounted cash flows over the remaining useful life, is less than the net book value. The excess of the net book value over its fair value is charged as impairment loss to noninterest expense. Goodwill and Other Intangible Assets — Goodwill represents the excess of the purchase price over the fair value of net assets acquired in an acquisition. Goodwill is not amortized and is reviewed for impairment on an annual basis or on an interim basis, if an event occurs or circumstances change that could reduce the fair value of a reporting unit below its carrying value. Core deposit intangibles, which represent the intangible value of depositor relationships resulting from deposit liabilities assumed in acquisitions, are amortized over the projected useful lives of the deposits, which is typically 7 to 15 years. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment on goodwill and core deposit intangibles is recognized by writing down the asset as a charge to noninterest expense to the extent that the carrying value exceeds the estimated fair value. Derivatives — As part of its asset and liability management strategy, the Company uses derivative financial instruments to mitigate exposure to interest rate and foreign currency risks. Derivatives utilized by the Company include swaps, forwards and option contracts. All derivative instruments are included in Other assets or Accrued Expense and other liabilities on the Consolidated Balance Sheet at fair value. The related cash flows are recognized on the Cash flows from operating activities section on the Consolidated Statement of Cash Flows. The Company uses its accounting hedges based on the exposure being hedged as either fair value hedges or hedges of the net investments in certain foreign operations. Changes in fair value of derivatives designated as fair value hedges are reported in Interest expense on the Consolidated Statement of Income. Changes in fair value of derivatives used as hedges of the net investments in foreign operations, to the extent effective, are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”). The change in fair value attributable to the ineffective portion of the hedging instrument is recognized immediately in Noninterest income on the Consolidated Statement of Income. For all other derivatives, changes in fair value are recognized on the Consolidated Statement of Income. All derivatives designated as fair value hedges and hedges of the net investments in certain foreign operations are linked to specific hedged items or to groups of specific assets and liabilities on the Consolidated Balance Sheet. To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not sought), a derivative must be highly effective in offsetting the risk designated as being hedged. The Company formally documents its hedge relationships at inception, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction at the time the derivative contract is executed. Subsequent to inception, on a quarterly basis, the Company assesses whether the derivatives used in hedging transactions are highly effective in offsetting changes in the fair value of the hedged items. Retroactive effectiveness is also assessed, as well as the continued expectation that the hedge will remain effective prospectively. The Company discontinues hedge accounting prospectively when (i) a derivative is no longer highly effective in offsetting changes in the fair value; (ii) a derivative expires, or is sold, terminated or exercised, or (iii) the Company determines that designation of a derivative as a hedge is no longer appropriate. If a fair value hedge is discontinued, the derivative will continue to be recorded on the Consolidated Balance Sheet at fair value with changes in fair value recognized on the Consolidated Statement of Income. When the hedged net investment is either sold or substantially liquidated, the effective portion of the changes in the fair value of the derivatives are reclassified out of AOCI into Foreign exchange income on the Consolidated Statement of Income. The Company also offers various interest rate and foreign currency derivative products to customers, and enters into derivative transactions in due course. These transactions are not linked to specific assets or liabilities on the Consolidated Balance Sheet or to forecasted transactions in a hedge relationship and, therefore, do not qualify for hedge accounting. The contracts are marked-to-market at the end of each reporting period with changes in fair value recorded on the Consolidated Statement of Income. The Company holds a portfolio of warrants to purchase equity securities from both public and private companies that were obtained as part of the loan origination process. The warrants are accounted for as derivatives and recorded at fair value included in Other assets on the Consolidated Balance Sheet at fair value with changes in fair value at each reporting period recorded on the Consolidated Statement of Income. Fair Value — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, in many cases, requires management to make a number of significant judgments. Based on the observable inputs used in the valuation techniques, the Company classifies its assets and liabilities measured and disclosed at fair value in accordance with a three-level hierarchy (i.e., Level 1, Level 2 and Level 3) established under ASC 820, Fair Value Measurements . The Company records certain financial instruments, such as available-for-sale investment securities, and derivative assets and liabilities, at fair value on a recurring basis. Certain financial instruments, such as impaired loans and loans held-for-sale, are not carried at fair value each period but may require nonrecurring fair value adjustments due to lower-of-cost-or-market accounting or write-downs of individual assets. For additional information on the fair value, see Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements. Stock-Based Compensation — The Company issues stock-based awards to certain employees, officers and directors, and accounts for the related costs in accordance with the provisions of ASC 505, Equity and ASC 718, Compensation — Stock Compensation . Stock-based compensation cost is measured at the grant date based on the fair value of the awards and expensed over the employee’s requisite service period. The Company grants nonqualified stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), which include service conditions for vesting. Additionally, some of the Company’s RSUs contain performance goals and market conditions that are required to be met in order for the awards to vest. The stock option awards vest between three to four years from the grant date. RSAs vest ratably over three years, cliff vest after three years, or vest at a rate of 50% each at the fourth and fifth year of continued employment from the date of the grant. RSUs vest ratably over three years or cliff vest after three or five years of continued employment from the date of the grant. Compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the maximum vesting period of the award. Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting . As a result of its adoption, all excess tax benefits and deficiencies on share-based payment awards are recognized within Income tax expense on the Consolidated Statement of Income. Before 2017, the tax benefits are recorded as increases to Additional paid-in capital on the Consolidated Statement of Changes in Stockholder’s Equity. The fair value of stock options is estimated using the Black-Scholes option pricing model on the grant date. For time-based RSAs and RSUs, the grant-date fair value is measured at the fair value of the Company’s common stock as if the RSAs or RSUs are vested and issued on the date of grant. For performance-based RSAs and RSUs, the grant date fair value considers both performance and market conditions (where applicable). As stock-based compensation expense is estimated based on awards ultimately expected to vest, it is reduced by the expense related to awards expected to be forfeited. Forfeitures are estimated at the time of grant and are reviewed semi-annually for reasonableness. If the estimated forfeitures are revised, a cumulative effect of changes in estimated forfeitures for current and prior periods is recognized in compensation expense in the period of change. Income Taxes — The Company files consolidated federal income tax returns, foreign tax returns, and various combined and separate company state tax returns. The calculation of the Company's income tax provision and related tax accruals requires the use of estimates and judgments. Accrued income tax liabilities (assets) represent the estimated amounts due to (receivable from) the various taxing jurisdictions where the Company has established a business presence. Deferred tax assets and liabilities are recognized for the expected future tax consequences of existing temporary differences between the financial reporting and tax reporting basis of assets and liabilities using enacted tax laws and rates and tax carryforwards. To the extent a deferred tax asset is no longer expected more likely than not to be realized, a valuation allowance is established. See Note 12 — Income Taxes to the Consolidated Financial Statements for a discussion of management’s assessment of evidence considered by the Company in establishing a valuation allowance. The Company established an allowance for potential taxes, interest and penalties related to uncertain tax positions. This contingent reserve is estimated based on facts and circumstances, including the interpretation of existing law, new judicial or regulatory guidance, and the status of tax audits. Earnings Per Share — Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method. In prior years, the Company issued RSAs, which are unvested share-based payment awards that contain non-forfeitable rights to dividends or dividen |
Dispositions and Held-for-Sale
Dispositions and Held-for-Sale | 12 Months Ended |
Dec. 31, 2017 | |
Dispositions And Held-For-Sale Classification [Abstract] | |
Dispositions and Held-for-Sale | Dispositions and Held-for-Sale Dispositions In the first quarter of 2017, the Company completed the sale and leaseback of a commercial property in San Francisco, California for cash consideration of $120.6 million and entered into a leaseback with the buyer for part of the property, consisting of a retail branch and office facilities. The net book value of the property was $31.6 million at the time of the sale, resulting in a pre-tax gain of $85.4 million after considering $3.6 million in selling costs. As the leaseback is an operating lease, $71.7 million of the gain was recognized on the closing date, and $13.7 million was deferred and will be recognized over the term of the lease agreement. The first quarter 2017 diluted EPS impact from the sale of the commercial property was $0.28 per share, net of tax. In the third quarter of 2017, the Company sold the insurance brokerage business of its subsidiary, East West Insurance Services, Inc. (“EWIS”), for $4.3 million , and recorded a pre-tax gain of $3.8 million . The third quarter 2017 diluted EPS impact from the sale of the Company’s insurance brokerage business was $ 0.02 per share, net of tax. EWIS remains a subsidiary of East West and continues to maintain its insurance broker license. Held-for-Sale The Company reports a business as held-for-sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on the assets of a business after it is classified as held-for-sale. On November 11, 2017, the Bank entered into a Purchase and Assumption Agreement to sell all of its eight Desert Community Bank (“DCB”) branches located in the High Desert area of Southern California, and related assets and liabilities to Flagstar Bank, a wholly-owned subsidiary of Flagstar Bancorp, Inc. All regulatory approvals necessary for this transaction have been received, and the sale is expected to be completed in the first quarter of 2018. DCB is reported under the “Retail Banking” operating segment. The Company determined that this transaction met the criteria for held-for-sale as of December 31, 2017 . The branch assets classified as held-for-sale as of December 31, 2017 related to the DCB Purchase and Assumption Agreement were mainly comprised of $78.1 million in loans held-for-sale and $8.0 million in premises and equipment held-for-sale, net. The branch liability held-for-sale was comprised of $605.1 million in deposits held-for-sale as of December 31, 2017 . |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement and Fair Value of Financial Instruments | Fair Value Measurement and Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 noted 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 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 in active markets; quoted prices for identical or similar instruments 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 the inputs to the valuation methodology used for measurement are observable or unobservable, and the significance of those inputs in the fair valuation 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. Level 3 Assets and Liabilities Valuation Process The Company generally determines the fair value of Level 3 assets and liabilities by using internal valuation methodologies, which primarily include discounted cash flows techniques that require both observable and unobservable inputs. Unobservable inputs (such as volatility and liquidity discount) are generally derived from historic performance of similar instruments or determined from previous market trades in similar instruments. Such inputs can be derived from similar portfolios with known historic experience or recent trades where particular unobservable inputs may be implied. The Company compares each unobservable input to historic experience and other third-party data where available. The models developed under internal valuation methodologies are subject to review according to the Company’s risk management policies and procedures, which include model validation. Model validation assesses the adequacy and appropriateness of the model, including reviewing its supporting model documentation and key components such as inputs, logic, processing components and output results. Validation also includes ensuring significant unobservable model inputs are appropriate given observable market transactions or other market data within the same or similar asset classes. The Company has ongoing monitoring procedures in place for Level 3 assets and liabilities that use internal valuation methodologies, which include but are not limited to, the following: • review of valuation results against expectations, including review of significant or unusual value fluctuations; and • quarterly analysis related to market data, where available. The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017 and 2016 : ($ in thousands) Assets (Liabilities) Measured at Fair Value on a Recurring Basis Fair Value Quoted Prices in Significant Significant Available-for-sale investment securities: U.S. Treasury securities $ 640,280 $ 640,280 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 203,392 — 203,392 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 318,957 — 318,957 — Residential mortgage-backed securities 1,190,271 — 1,190,271 — Municipal securities 99,982 — 99,982 — Non-agency residential mortgage-backed securities: Investment grade 9,117 — 9,117 — Corporate debt securities: Investment grade 37,003 — 37,003 — Foreign bonds: Investment grade 486,408 — 486,408 — Other securities 31,342 20,735 10,607 — Total available-for-sale investment securities $ 3,016,752 $ 661,015 $ 2,355,737 $ — Derivative assets: Interest rate swaps and options $ 58,633 $ — $ 58,633 $ — Foreign exchange contracts 5,840 — 5,840 — Credit risk participation agreements (“RPAs”) 1 — 1 — Warrants 1,672 — 993 679 Total derivative assets $ 66,146 $ — $ 65,467 $ 679 Derivative liabilities: Interest rate swaps on certificates of deposit $ (6,799 ) $ — $ (6,799 ) $ — Interest rate swaps and options (57,958 ) — (57,958 ) — Foreign exchange contracts (10,170 ) — (10,170 ) — RPAs (8 ) — (8 ) — Total derivative liabilities $ (74,935 ) $ — $ (74,935 ) $ — Assets (Liabilities) Measured at Fair Value on a Recurring Basis ($ in thousands) Fair Value Quoted Prices in Significant Significant Available-for-sale investment securities: U.S. Treasury securities $ 720,479 $ 720,479 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 274,866 — 274,866 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 266,799 — 266,799 — Residential mortgage-backed securities 1,258,747 — 1,258,747 — Municipal securities 147,654 — 147,654 — Non-agency residential mortgage-backed securities: Investment grade 11,477 — 11,477 — Corporate debt securities: Investment grade 222,377 — 222,377 — Non-investment grade 9,173 — 9,173 — Foreign bonds: Investment grade 383,894 — 383,894 — Other securities 40,329 30,991 9,338 — Total available-for-sale investment securities $ 3,335,795 $ 751,470 $ 2,584,325 $ — Derivative assets: Foreign currency forward contracts $ 4,325 $ — $ 4,325 $ — Interest rate swaps and options 67,578 — 67,578 — Foreign exchange contracts 11,874 — 11,874 — RPAs 3 — 3 — Total derivative assets $ 83,780 $ — $ 83,780 $ — Derivative liabilities: Interest rate swaps on certificates of deposit $ (5,976 ) $ — $ (5,976 ) $ — Interest rate swaps and options (65,131 ) — (65,131 ) — Foreign exchange contracts (11,213 ) — (11,213 ) — RPAs (3 ) — (3 ) — Total derivative liabilities $ (82,323 ) $ — $ (82,323 ) $ — At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. There were no assets or liabilities measured using significant unobservable inputs (Level 3) on a recurring basis as of and during the year ended December 31, 2016 . The following table presents a reconciliation of the beginning and ending balances for the major asset and liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2015 : ($ in thousands) Year Ended December 31, 2017 2015 Other Warrants Corporate Debt Embedded Beginning balance $ — $ — $ 6,528 $ (3,392 ) Transfer of investment security from held-to-maturity to available-for-sale 115,615 — — — Total gains (losses) for the period: Included in earnings (1) 1,156 — 960 (20 ) Included in other comprehensive income (loss) (2) — — 922 — Issuances, sales and settlements: Issuances — 679 — — Sales (116,771 ) — (7,219 ) — Settlements — — (98 ) 3,412 Transfers out of Level 3 — — (1,093 ) — Ending balance $ — $ 679 $ — $ — (1) Net realized gains of other securities and corporate debt securities are included in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. Net realized and unrealized losses of embedded derivative liabilities are included in Other operating expense on the Consolidated Statement of Income. (2) Net unrealized gains of corporate debt securities are included in Net changes in unrealized losses on available-for-sale investment securities on the Consolidated Statement of Comprehensive Income. Transfers into or out of fair value hierarchy classifications are made if the significant inputs used in the financial models measuring the fair value of the assets and liabilities become unobservable or observable in the current marketplace. The Company’s policy, with respect to transfers between levels of the fair value hierarchy, is to recognize transfers into and out of each level as of the end of the reporting period. There were no transfers of assets and liabilities measured on a recurring basis into and out of Level 1, Level 2 and Level 3 during the years ended December 31, 2017 and 2016 . During the third quarter of 2017, the Company transferred a non-agency commercial mortgage-backed security with a net carrying amount of $115.6 million from held-to-maturity to available-for-sale to reflect the Company’s intent to sell the security as part of its active liquidity management. This non-agency commercial mortgage-backed security was sold during the fourth quarter of 2017. During the year ended December 31, 2015, the Company transferred $1.1 million of pooled trust preferred securities measured on a recurring basis out of Level 3 into Level 2 due to increased market liquidity and price observability. There were no transfers of assets and liabilities measured on a recurring basis between Level 1 and Level 2 during the year ended December 31, 2015 . The following table presents quantitative information about significant unobservable inputs used in the valuation of assets measured on a recurring basis classified as Level 3 as of December 31, 2017 . Significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets or liabilities. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets or liabilities would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Measurements (Level 3) Valuation Technique Unobservable Inputs Weighted- Average Derivative assets: Warrants $ 679 Black-Scholes option pricing model Volatility 44% Liquidity discount 47% Assets measured at fair value on a nonrecurring basis include certain non-PCI loans that were impaired, OREO and loans held-for-sale. These fair value adjustments result from impairments recognized during the period on certain non-PCI impaired loans, application of fair value less cost to sell on OREO and application of the lower of cost or fair value on loans held-for-sale. The following tables present the carrying amounts of assets included on the Consolidated Balance Sheet that had fair value changes measured on a nonrecurring basis as of December 31, 2017 and 2016 : ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: Commercial lending: C&I $ 31,404 $ — $ — $ 31,404 CRE 2,667 — — 2,667 Construction and land 3,973 — — 3,973 Consumer lending: Single-family residential 144 — — 144 HELOCs — — — — Total non-PCI impaired loans $ 38,188 $ — $ — $ 38,188 OREO $ 9 $ — $ — $ 9 ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: Commercial lending: C&I $ 52,172 $ — $ — $ 52,172 CRE 14,908 — — 14,908 Consumer lending: Single-family residential 2,464 — — 2,464 HELOCs 610 — — 610 Total non-PCI impaired loans $ 70,154 $ — $ — $ 70,154 OREO $ 345 $ — $ — $ 345 Loans held-for-sale $ 22,703 $ — $ 22,703 $ — The following table presents the fair value adjustments of assets measured on a nonrecurring basis recognized during the years ended and which were included on the Consolidated Balance Sheet as of December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Non-PCI impaired loans: Commercial lending: C&I $ (19,703 ) $ (27,106 ) $ (5,612 ) CRE (272 ) 1,084 (2,629 ) Multifamily residential — — (115 ) Construction and land (147 ) — (118 ) Consumer lending: Single-family residential (11 ) (224 ) (496 ) HELOCs — 34 (59 ) Other consumer (2,491 ) — — Total non-PCI impaired loans $ (22,624 ) $ (26,212 ) $ (9,029 ) OREO $ (1 ) $ (23 ) $ (233 ) Loans held-for-sale $ — $ (5,565 ) $ (1,991 ) The following table presents the quantitative information about the significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of December 31, 2017 and 2016 : ($ in thousands) Fair Value Valuation Unobservable Range of Input(s) Weighted- December 31, 2017 Non-PCI impaired loans $ 22,802 Discounted cash flows Discount 4% — 10% 6 % $ 9,773 Fair value of property Selling cost 8% 8 % $ 3,207 Fair value of collateral Discount 20% — 32% 29 % $ 2,406 Fair value of collateral Contract value NM NM OREO $ 9 Fair value of property Selling cost 8% 8 % December 31, 2016 Non-PCI impaired loans $ 31,835 Discounted cash flows Discount 4% — 8% 5 % $ 14,941 Fair value of property Selling cost 4% — 8% 6 % $ 18,417 Fair value of collateral Discount 0% — 75% 35 % $ 4,961 Fair value of collateral Contract value NM NM OREO $ 345 Fair value of property Selling cost 8% 8 % NM — Not meaningful. The following tables present the fair value estimates for financial instruments as of December 31, 2017 and 2016 , excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in Note 4 — Fair Value Measurement and Fair Value of Financial Instruments . The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable and accrued interest payable, which are included in Other assets . ($ in thousands) December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 2,174,592 $ 2,174,592 $ — $ — $ 2,174,592 Interest-bearing deposits with banks $ 398,422 $ — $ 398,422 $ — $ 398,422 Resale agreements (1) $ 1,050,000 $ — $ 1,035,158 $ — $ 1,035,158 Restricted equity securities $ 73,521 $ — $ 73,521 $ — $ 73,521 Loans held-for-sale $ 85 $ — $ 85 $ — $ 85 Loans held-for-investment, net $ 28,688,590 $ — $ — $ 28,956,349 $ 28,956,349 Branch assets held-for-sale $ 91,318 $ 5,143 $ 10,970 $ 78,132 $ 94,245 Accrued interest receivable $ 121,719 $ — $ 121,719 $ — $ 121,719 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 25,974,314 $ — $ 25,974,314 $ — $ 25,974,314 Time deposits $ 5,640,749 $ — $ 5,626,855 $ — $ 5,626,855 Branch liability held-for-sale $ 605,111 $ — $ — $ 643,937 $ 643,937 FHLB advances $ 323,891 $ — $ 335,901 $ — $ 335,901 Repurchase agreements (1) $ 50,000 $ — $ 104,830 $ — $ 104,830 Long-term debt $ 171,577 $ — $ 171,673 $ — $ 171,673 Accrued interest payable $ 10,724 $ — $ 10,724 $ — $ 10,724 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . As of December 31, 2017 , $400.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. ($ in thousands) December 31, 2016 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 1,878,503 $ 1,878,503 $ — $ — $ 1,878,503 Interest-bearing deposits with banks $ 323,148 $ — $ 323,148 $ — $ 323,148 Resale agreements (1) $ 2,000,000 $ — $ 1,980,457 $ — $ 1,980,457 Held-to-maturity investment security $ 143,971 $ — $ — $ 144,593 $ 144,593 Restricted equity securities $ 72,775 $ — $ 72,775 $ — $ 72,775 Loans held-for-sale $ 23,076 $ — $ 23,076 $ — $ 23,076 Loans held-for-investment, net $ 25,242,619 $ — $ — $ 24,915,143 $ 24,915,143 Accrued interest receivable $ 100,524 $ — $ 100,524 $ — $ 100,524 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 24,275,714 $ — $ 24,275,714 $ — $ 24,275,714 Time deposits $ 5,615,269 $ — $ 5,611,746 $ — $ 5,611,746 Short-term borrowings $ 60,050 $ — $ 60,050 $ — $ 60,050 FHLB advances $ 321,643 $ — $ 334,859 $ — $ 334,859 Repurchase agreements (1) $ 350,000 $ — $ 411,368 $ — $ 411,368 Long-term debt $ 186,327 $ — $ 186,670 $ — $ 186,670 Accrued interest payable $ 9,440 $ — $ 9,440 $ — $ 9,440 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreement . As of December 31, 2016, $100.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. The following is a description of the valuation methodologies and significant assumptions used to measure financial assets and liabilities at fair value, and to estimate fair value for certain financial instruments not recorded at fair value. The description also includes the level of the fair value hierarchy in which the assets or liabilities are classified. Cash and Cash Equivalents — The carrying amount approximates fair value due to the short-term nature of these instruments. As such, the estimated fair value is classified as Level 1. Interest-Bearing Deposits with Banks — The fair value of interest-bearing deposits with banks generally approximates their book value due to their short maturities. In addition, due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Resale Agreements — The fair value of resale agreements is estimated by discounting the cash flows based on expected maturities or repricing dates utilizing estimated market discount rates. In addition, due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Available-for-Sale Investment Securities — When available, the Company uses quoted market prices to determine the fair value of available-for-sale investment securities, which are classified as Level 1. Level 1 available-for-sale investment securities are primarily comprised of U.S. Treasury securities. The fair value of other available-for-sale investment securities is generally determined by independent external pricing service providers who have experience in valuing these securities or by the average quoted market prices obtained from independent external brokers. In obtaining such valuation information from third parties, the Company reviewed the methodologies used to develop the resulting fair value. The available-for-sale investment securities valued using such methods are classified as Level 2. Held-to-Maturity Investment Security — As of December 31, 2017 the Company had no investments that were designated as held-to-maturity investment security. As of December 31, 2016 , the held-to-maturity investment security was comprised of a floating rate non-agency commercial mortgage-backed security. The fair value of this security is estimated by discounting the future expected cash flows utilizing the underlying index and a discount margin. Other unobservable inputs include conditional prepayment rate, constant default rate and loss severity. Due to the significant unobservable inputs used in estimating the fair value, this security is classified as Level 3. Restricted Equity Securities — Restricted equity securities are comprised of Federal Reserve Bank stock and FHLB stock. Ownership of these securities is restricted to member banks and these securities do not have a readily determinable fair value. Purchases and sales of these securities are at par value. The carrying amounts of the Company’s restricted equity securities approximate fair value. These investments are classified as Level 2. Loans Held-for-Sale — The Company’s loans held-for-sale are carried at the lower of cost or fair value. Loans held-for-sale were comprised of single-family residential loans and primarily of other consumer loans as of December 31, 2017 and 2016 , respectively. The fair value of loans held-for-sale is derived from current market prices and comparative current sales. The Company records any fair value adjustments on a nonrecurring basis. Loans held-for-sale are classified as Level 2. Loans Held-for-Investment, net — The fair value of loans held-for-investment other than non-PCI impaired loans is determined using a discounted cash flows approach based on the exit price notion. The discount rate is derived from the associated yield curve plus spreads that reflect the rates in the market for loans with similar financial characteristics. No adjustments have been made for changes in credit within any of the loan portfolios. It is management’s opinion that the allowance for loan losses pertaining to performing and nonperforming loans results in a fair value adjustment of credit for such loans. Due to the unobservable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 3. Non-PCI Impaired Loans — The Company typically adjusts the carrying amount of impaired loans when there is evidence of probable loss and when the expected fair value of the loan is less than its carrying amount. Impaired loans with specific reserves are classified as Level 3 assets. The following two methods are used to derive the fair value of impaired loans: • Discounted cash flows valuation techniques generally consist of developing an estimate of future cash flows that are expected to occur over the life of the loan and then discounting these cash flows. The fair values are estimated using a discounted cash flow model that employs a discount rate that reflects the contractual effective interest rates of the loan, adjusted by credit losses inherent for similar loans. • The Company establishes a specific reserve for an impaired loan based on the fair value of the underlying collateral (which may take the form of real estate, inventory, equipment, contract or guarantee). The fair value of the other underlying collateral is generally based on third party appraisals (or internal evaluation if a third party appraisal is not required by regulations), which utilize one or more valuation techniques (income, market and/or cost approaches). Updated appraisals and evaluations are generally obtained within the last 12 months . All appraisals include an “as is” market value without conditions as of the effective date of the appraisal. In respect of those loans that are collateralized by either real estate, inventory or equipment, the significant unobservable inputs used to determine the fair values of such loans generally include discounts applied to the liquidation cost of the underlying collateral and/or selling cost of the collateral. In respect of those loans that are collateralized by contracts or guarantees, the fair value of these loans are determined based on the fair value of the underlying contract or guarantee. Other Real Estate Owned — The Company’s OREO represents properties acquired through foreclosure, or through full or partial satisfaction of loans held-for-investment, which are recorded at estimated fair value less the cost to sell at the time of foreclosure and at the lower of cost or estimated fair value less the cost to sell subsequent to acquisition. The fair value of OREO properties is based on third party appraisals or accepted written offers. Refer to the Non-PCI Impaired Loans section above for a detailed discussion on the Company’s policies and procedures related to appraisals and evaluations. On a monthly basis, the current fair market value of each OREO property is reviewed to ensure that the current carrying value is appropriate. The significant unobservable input used is the selling cost. OREO properties are classified as Level 3. Accrued Interest Receivable — The carrying amount approximates fair value due to the short-term nature of these instruments. Considering the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Branch Assets Held-for-Sale — This includes loans receivable, premises and equipment, and the cash balances related to DCB that were held-for-sale pursuant to the DCB Purchase and Assumption Agreement. Due to the short-term nature of the cash balances, the carrying value of cash approximates its fair value and hence is classified as Level 1. The fair value of the premises and equipment is determined based on third party appraisals of similar properties, and hence is classified as Level 2. The fair value of the DCB loans held-for-sale is determined based on the terms of the DCB Purchase and Assumption Agreement where the terms are derived from unobservable assumptions over the sale of the combination of loans and deposits and hence is classified as Level 3. Deposits — The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, interest-bearing checking, savings and money market deposits, approximates the carrying amount as these deposits are payable on demand at the measurement date. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. For time deposits, the fair value is based on the discounted value of contractual cash flows using current market rates for instruments with similar maturities. Due to the observable nature of the inputs used in deriving the estimated fair value, time deposits are classified as Level 2. Branch Liability Held-for-Sale — The fair value of the DCB deposits held-for-sale is determined based on the terms of the DCB Purchase and Assumption Agreement where the terms are derived from unobservable assumptions over the sale of the combination of loans and deposits as discussed in Note 2 — Dispositions and Held-for-Sale to the Consolidated Financial Statements, and hence classified as Level 3. Short-Term Borrowing — The carrying amount approximates fair value due to the short-term nature of these instruments. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Federal Home Loan Bank Advances — The fair value of FHLB advances is estimated based on the discounted value of contractual cash flows, using rates currently offered by the FHLB of San Francisco for advances with similar remaining maturities at each reporting date. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Repurchase Agreements — The fair value of the repurchase agreements is calculated by discounting future cash flows based on expected maturities or repricing dates, utilizing estimated market discount rates and taking into consideration the call features of each instrument. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Long-Term Debt — The fair value of long-term debt is estimated by discounting the cash flows through maturity based on current market rates the Company would pay for new issuances. Due to the observable nature of the inputs used in deriving the estimated fair value, long-term debt is classified as Level 2. Accrued Interest Payable — The carrying amount approximates fair value due to the short-term nature of these instruments. Due to the observable nature of the inputs used in deriving the estimated fair value, these instruments are classified as Level 2. Interest Rate Swaps and Options — The Company enters into interest rate swap and option contracts with institutional counterparties to hedge against interest rate swap and option products offered to bank customers. These products allow borrowers to lock in attractive intermediate and long-term interest rates by entering into an interest rate swap or option contract with the Company, resulting in the customer obtaining a synthetic fixed rate loan. The Company also enters into interest rate swap contracts with institutional counterparties to hedge against certificates of deposit issued. This product allows the Company to lock in attractive floating rate funding. 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 variable cash receipts (or payments) are based on the expectation of future interest rates (forward curves) derived from observed market interest rate curves. The fair value of the interest rate options, consisting 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 fell below (rise above) the strike rate of the floors (caps). The variable interest rates used in the calculation of projected receipts on the floors (caps) are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. In addition, to comply with the provisions of ASC 820, 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 Level 3 inputs, model-derived credit spreads. As of December 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of these interest rate contracts and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivative portfolios. As a result, the Company classifies these derivative instruments as Level 2 of the fair value hierarchy due to the observable nature of the significant inputs utilized. Foreign Exchange Contracts — The Company enters into short-term foreign exchange contracts to purchase/sell foreign currencies at set rates in the future. These contracts economically hedge against foreign exchange rate fluctuations. The Company also enters into contracts with institutional counterparties to hedge against foreign exchange products offered to bank customers. These products allow customers to hedge the foreign exchange risk of their deposits and loans denominated in foreign currencies. The Company assumes minimal foreign exchange rate risk because the contracts with the customer and the institutional party mirror each other. The fair value 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. Valuation depends on the type of derivative, and the nature of the underlying rate and contractual terms including period of maturity, price and index upon which the derivative’s value is based. Key inputs include foreign exchange rates (spot and/or forward rates), volatility of currencies and the correlation of such inputs. 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, foreign exchange contracts are classified as Level 2. As of December 31, 2017 , foreign exchange forward contracts used to economically hedge the Company’s net investment in East West Bank (China) Limited, a non-U.S. Dollar functional currency subsidiary in China, are included in this caption. See Foreign Currency Forward Contracts in the section below for details on valuation methodologies and significant assumptions. Credit Risk Participation Agreements — The Company enters into RPAs, under which the Company assumes its pro-rata share |
Securities Purchased under Resa
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2017 | |
RESALE AND REPURCHASE AGREEMENTS | |
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements | Securities Purchased under Resale Agreements and Sold under Repurchase Agreements Resale Agreements Resale agreements are recorded at the balances at which the securities were acquired. The market values of the underlying securities collateralizing the related receivable of the resale agreements, including accrued interest, are monitored. Additional collateral may be requested by the Company from the counterparty when deemed appropriate. Gross resale agreements were $1.45 billion and $2.10 billion as of December 31, 2017 and 2016 , respectively. The weighted-average interest rates were 2.43% and 1.84% as of December 31, 2017 and 2016 , respectively. As of December 31, 2017 , total gross resale agreements that are maturing in the next five years are as follows: 2018 — $450.0 million ; 2019 — $0.0 million ; 2020 — $100.0 million ; 2021 — $0.0 million ; 2022 — $250.0 million ; and thereafter — $650.0 million . Repurchase Agreements Long-term repurchase agreements are accounted for as collateralized financing transactions and recorded at the balances at which the securities are sold. The collateral for the repurchase agreements is primarily comprised of U.S Treasury securities, U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, and U.S. government agency and U.S. government sponsored enterprise debt securities. The Company may have to provide additional collateral for the repurchase agreements, as necessary. Gross repurchase agreements were $450.0 million as of both December 31, 2017 and 2016 . The weighted-average interest rates were 3.65% and 3.15% as of December 31, 2017 and 2016 , respectively. The Company had no charges related to the extinguishment of repurchase agreements for the years ended December 31, 2017 and 2016 . In comparison, the Company recorded $21.8 million of charges related to the extinguishment of $545.0 million of repurchase agreements for the year ended December 31, 2015. As of December 31, 2017 , total gross repurchase agreements that are maturing in the next five years are as follows: 2018 through 2022 — $150.0 million ; and thereafter — $300.0 million . Balance Sheet Offsetting The Company’s resale and repurchase agreements are transacted under legally enforceable master repurchase agreements that provide the Company, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the same counterparty. The Company nets resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and the transactions are eligible for netting under ASC 210-20-45-11. Collateral accepted includes securities that are not recognized on the Consolidated Balance Sheet. Collateral pledged consists of securities that are not netted on the Consolidated Balance Sheet against the related collateralized liability. Collateral accepted or pledged in resale and repurchase agreements with other financial institutions may also be sold or re-pledged by the secured party, but is usually delivered to and held by the third party trustees. The collateral amounts received/posted are limited for presentation purposes to the related recognized asset/liability balance for each counterparty, and accordingly, do not include excess collateral received/pledged. The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of December 31, 2017 and 2016 : ($ in thousands) As of December 31, 2017 Assets Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Financial Collateral Resale agreements $ 1,450,000 $ (400,000 ) $ 1,050,000 $ — $ (1,045,696 ) (2) $ 4,304 Liabilities Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Financial Collateral Repurchase agreements $ 450,000 $ (400,000 ) $ 50,000 $ — $ (50,000 ) (3) $ — ($ In thousands) As of December 31, 2016 Assets Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Amount Financial Collateral Resale agreements $ 2,100,000 $ (100,000 ) $ 2,000,000 $ (150,000 ) (1) $ (1,839,120 ) (2) $ 10,880 Liabilities Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Amount Financial Collateral Repurchase agreements $ 450,000 $ (100,000 ) $ 350,000 $ (150,000 ) (1) $ (200,000 ) (3) $ — (1) Represents financial instruments subject to enforceable master netting arrangements that are not eligible to be offset under ASC 210-20-45-11 but would be eligible for offsetting to the extent that an event of default has occurred. (2) Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. (3) Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty. 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 for additional information. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
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 available-for-sale investment securities, which are carried at fair value, and the held-to-maturity investment security, which is carried at amortized cost, as of December 31, 2017 and 2016 : ($ in thousands) As of December 31, 2017 Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 651,395 $ — $ (11,115 ) $ 640,280 U.S. government agency and U.S. government sponsored enterprise debt securities 206,815 62 (3,485 ) 203,392 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 328,348 141 (9,532 ) 318,957 Residential mortgage-backed securities 1,199,869 3,964 (13,562 ) 1,190,271 Municipal securities 99,636 655 (309 ) 99,982 Non-agency residential mortgage-backed securities: Investment grade (1) 9,136 3 (22 ) 9,117 Corporate debt securities: Investment grade (1) 37,585 164 (746 ) 37,003 Foreign bonds: Investment grade (1) (2) 505,396 24 (19,012 ) 486,408 Other securities 31,887 — (545 ) 31,342 Total available-for-sale investment securities 3,070,067 5,013 (58,328 ) 3,016,752 Held-to-maturity investment security: Non-agency commercial mortgage-backed security — — — — Total investment securities $ 3,070,067 $ 5,013 $ (58,328 ) $ 3,016,752 ($ in thousands) As of December 31, 2016 Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 730,287 $ 21 $ (9,829 ) $ 720,479 U.S. government agency and U.S. government sponsored enterprise debt securities 277,891 224 (3,249 ) 274,866 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 272,672 345 (6,218 ) 266,799 Residential mortgage-backed securities 1,266,372 3,924 (11,549 ) 1,258,747 Municipal securities 148,302 1,252 (1,900 ) 147,654 Non-agency residential mortgage-backed securities: Investment grade (1) 11,592 — (115 ) 11,477 Corporate debt securities: Investment grade (1) 222,190 562 (375 ) 222,377 Non-investment grade (1) 10,191 — (1,018 ) 9,173 Foreign bonds: Investment grade (1) (2) 405,443 30 (21,579 ) 383,894 Other securities 40,501 337 (509 ) 40,329 Total available-for-sale investment securities 3,385,441 6,695 (56,341 ) 3,335,795 Held-to-maturity investment security: Non-agency commercial mortgage-backed security 143,971 622 — 144,593 Total investment securities $ 3,529,412 $ 7,317 $ (56,341 ) $ 3,480,388 (1) Available-for-sale investment securities rated BBB- or higher by Standard & Poor’s (“S&P”) or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. Classifications are based on the lower of the credit ratings by S&P or Moody’s. (2) Fair value of foreign bonds include $456.1 million and $353.6 million of multilateral development bank bonds as of December 31, 2017 and 2016 , respectively. Unrealized Losses The following tables present the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of December 31, 2017 and 2016 : ($ in thousands) As of December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale investment securities: U.S. Treasury securities $ 168,061 $ (1,005 ) $ 472,219 $ (10,110 ) $ 640,280 $ (11,115 ) U.S. government agency and U.S. government sponsored enterprise debt securities 99,935 (623 ) 85,281 (2,862 ) 185,216 (3,485 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 113,775 (2,071 ) 191,827 (7,461 ) 305,602 (9,532 ) Residential mortgage-backed securities 413,621 (4,205 ) 361,809 (9,357 ) 775,430 (13,562 ) Municipal securities 8,490 (123 ) 8,588 (186 ) 17,078 (309 ) Non-agency residential mortgage-backed securities: Investment grade 4,599 (22 ) — — 4,599 (22 ) Corporate debt securities: Investment grade — — 11,905 (746 ) 11,905 (746 ) Foreign bonds: Investment grade 103,149 (1,325 ) 352,239 (17,687 ) 455,388 (19,012 ) Other securities 31,215 (545 ) — — 31,215 (545 ) Total available-for-sale investment securities 942,845 (9,919 ) 1,483,868 (48,409 ) 2,426,713 (58,328 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security — — — — — — Total investment securities $ 942,845 $ (9,919 ) $ 1,483,868 $ (48,409 ) $ 2,426,713 $ (58,328 ) ($ in thousands) As of December 31, 2016 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross Available-for-sale investment securities: U.S. Treasury securities $ 670,268 $ (9,829 ) $ — $ — $ 670,268 $ (9,829 ) U.S. government agency and U.S. government sponsored enterprise debt securities 203,901 (3,249 ) — — 203,901 (3,249 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 202,106 (5,452 ) 29,201 (766 ) 231,307 (6,218 ) Residential mortgage-backed securities 629,324 (9,594 ) 119,603 (1,955 ) 748,927 (11,549 ) Municipal securities 57,655 (1,699 ) 2,692 (201 ) 60,347 (1,900 ) Non-agency residential mortgage-backed securities: Investment grade 5,033 (101 ) 6,444 (14 ) 11,477 (115 ) Corporate debt securities: Investment grade — — 71,667 (375 ) 71,667 (375 ) Non-investment grade — — 9,173 (1,018 ) 9,173 (1,018 ) Foreign bonds: Investment grade 363,618 (21,327 ) 14,258 (252 ) 377,876 (21,579 ) Other securities 30,991 (509 ) — — 30,991 (509 ) Total available-for-sale investment securities 2,162,896 (51,760 ) 253,038 (4,581 ) 2,415,934 (56,341 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security — — — — — — Total investment securities $ 2,162,896 $ (51,760 ) $ 253,038 $ (4,581 ) $ 2,415,934 $ (56,341 ) For each reporting period, the Company examines all individual securities that are in an unrealized loss position for OTTI. For a discussion of the factors and criteria the Company uses in analyzing securities for OTTI, see Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Securities to the Consolidated Financial Statements. The unrealized losses were primarily attributable to the yield curve movement, in addition to widened liquidity and credit spreads. The issuers of these securities have not, to the Company’s knowledge, established any cause for default on these securities. These securities have fluctuated in value since their purchase dates as market interest rates have fluctuated. The Company believes that the gross unrealized losses detailed in the previous tables are temporary and not due to reasons of credit quality. As a result, the Company expects to recover the entire amortized cost basis of these securities. Accordingly, no impairment loss was recorded on the Company’s Consolidated Statement of Income for each of the years ended December 31, 2017 , 2016 and 2015 . As of December 31, 2017 , the Company had 165 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily comprised of 98 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 25 U.S. Treasury securities and 16 investment grade foreign bonds. In comparison, as of December 31, 2016 , the Company had 170 available-for-sale investment securities in a gross unrealized loss position with no credit impairment, primarily comprised of 82 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities, 26 U.S. Treasury securities and 13 investment grade foreign bonds. During the first quarter of 2016, the Company obtained a non-agency commercial mortgage-backed security, through the securitization of multifamily real estate loans, which was classified as held-to-maturity and recorded at amortized cost. During the third quarter of 2017, the Company transferred this non-agency commercial mortgage-backed security with a net carrying amount of $115.6 million from held-to-maturity to available-for-sale. The transfer reflects the Company’s intent to sell the security as part of its active liquidity management. This security was sold during the fourth quarter of 2017. Other-Than-Temporary Impairment The following table presents a rollforward of the amounts related to the OTTI credit losses recognized in earnings for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, ($ in thousands) 2017 2016 2015 Beginning balance $ — $ — $ 112,338 Reduction for securities sold — — (112,338 ) Ending balance $ — $ — $ — No OTTI credit losses were recognized for the years ended December 31, 2017 , 2016 and 2015 . For the year ended December 31, 2015 , the Company realized a gain of $21.7 million from the sale of non-investment grade corporate debt securities with previously recognized OTTI credit losses of $112.3 million . Realized Gains and Losses The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, ($ in thousands) 2017 2016 2015 Proceeds from sales $ 832,844 $ 1,275,645 $ 1,669,334 Gross realized gains $ 8,037 $ 10,487 $ 40,367 Gross realized losses $ — $ 125 $ — Related tax expense $ 3,380 $ 4,357 $ 16,974 Scheduled Maturities of Investment Securities The following table presents the scheduled maturities of available-for-sale investment securities as of December 31, 2017 : ($ in thousands) Amortized Cost Fair Value Due within one year $ 602,560 $ 583,126 Due after one year through five years 772,349 759,970 Due after five years through ten years 220,298 216,390 Due after ten years 1,474,860 1,457,266 Total available-for-sale investment securities $ 3,070,067 $ 3,016,752 Actual maturities of mortgage-backed securities can differ from contractual maturities because borrowers have the right to prepay obligations. In addition, factors such as prepayments and interest rates may affect the yields on the carrying values of mortgage-backed securities. Available-for-sale investment securities with fair value of $534.3 million and $767.4 million as of December 31, 2017 and 2016 , respectively, were pledged to secure public deposits, repurchase agreements, the Federal Reserve Bank’s discount window and for other purposes required or permitted by law. Restricted Equity Securities Restricted equity securities include stock of the Federal Reserve Bank and of the FHLB. Restricted equity securities are carried at cost as these securities do not have a readily determinable fair value. The following table presents the restricted equity securities as of December 31, 2017 and 2016 : December 31, ($ in thousands) 2017 2016 Federal Reserve Bank stock $ 56,271 $ 55,525 FHLB stock 17,250 17,250 Total $ 73,521 $ 72,775 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivatives to manage exposure to market risk, primarily interest rate risk and foreign currency risk and 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 are not significant to earnings or capital. The Company also uses foreign exchange contracts to manage the foreign exchange risk associated with certain foreign currency-denominated assets and liabilities, as well as the Company’s investment in its China subsidiary, 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 consist of economic hedges. For additional information on the Company’s derivatives and hedging activities, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements. The following table presents the total notional and fair value of the Company’s derivatives as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets (1) Derivative Liabilities (1) Derivative Assets (1) Derivative Liabilities (1) Derivatives designated as hedging instruments: Interest rate swaps on certificates of deposit $ 35,811 $ — $ 6,799 $ 48,365 $ — $ 5,976 Foreign currency forward contracts — — — 83,026 4,325 — Total derivatives designated as hedging instruments $ 35,811 $ — $ 6,799 $ 131,391 $ 4,325 $ 5,976 Derivatives not designated as hedging instruments: Interest rate swaps and options $ 9,333,860 $ 58,633 $ 57,958 $ 7,668,482 $ 67,578 $ 65,131 Foreign exchange contracts 770,215 5,840 10,170 767,764 11,874 11,213 RPAs 49,033 1 8 71,414 3 3 Warrants — (2) 1,672 — — — — Total derivatives not designated as hedging instruments $ 10,153,108 $ 66,146 $ 68,136 $ 8,507,660 $ 79,455 $ 76,347 (1) Derivative assets and derivative liabilities are included in Other assets and Accrued expenses and other liabilities, respectively , on the Consolidated Balance Sheet. (2) The Company held four warrants in public companies and 23 warrants in private companies as of December 31, 2017 . Derivatives Designated as Hedging Instruments Interest Rate Swaps on Certificates of Deposit — The Company is exposed to changes in the fair value of certain fixed rate certificates of deposit due to changes in the benchmark interest rate, London Interbank Offered Rate (“LIBOR”). Interest rate swaps designated as fair value hedges involve the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable rate payments over the life of the agreements without the exchange of the underlying notional amount. As of December 31, 2017 and 2016 , the total notional amounts of the interest rate swaps on certificates of deposit were $35.8 million and $48.4 million , respectively. The fair value liabilities of the interest rate swaps were $6.8 million and $6.0 million as of December 31, 2017 and 2016 , respectively. The following table presents the net (losses) gains recognized on the Consolidated Statement of Income related to the derivatives designated as fair value hedges for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 (Losses) gains recorded in interest expense: Recognized on interest rate swaps $ (2,734 ) $ (794 ) $ 3,452 Recognized on certificates of deposit $ 2,271 $ 157 $ (3,190 ) For the years ended December 31, 2017 , 2016 , and 2015 , the Company also recognized net reductions to interest expense of $1.0 million , $3.0 million , and $3.6 million , respectively, primarily related to net settlements of the derivatives. 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. During the fourth quarter of 2015, the Company began entering into foreign currency forward contracts to hedge its 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 Company’s net investment in China, against the risk of adverse changes in the foreign currency exchange rate. The Company recorded the changes in the carrying amount of its China subsidiary in the Foreign currency translation adjustment account within AOCI. Simultaneously, the effective portion of the hedge of this exposure was also recorded in the Foreign currency translation adjustment account and the ineffective portion, if any, was recorded in current earnings. During the first quarter of 2017, the Company discontinued hedge accounting prospectively. The cumulative effective portion of the net investment hedges recorded through the point of dedesignation remained in the Foreign currency translation adjustment account within AOCI, and will be reclassified into earnings only upon the sale or liquidation of the China subsidiary. The Company continues to economically hedge its foreign currency exposure in its China subsidiary through foreign exchange forward contracts, which were included as part of the Derivatives Not Designated as Hedging Instruments — Foreign Exchange Contracts caption as of December 31, 2017 . As of December 31, 2017 , there were no derivative contracts designated as net investment hedges. As of December 31, 2016 , the total notional amount and fair value of the foreign currency forward contracts designated as net investment hedges were $83.0 million and a $4.3 million asset, respectively. The following table presents the (losses) gains recorded in the Foreign currency translation adjustment account within AOCI related to the effective portion of the net investment hedges and the ineffective portion recorded on the Consolidated Statement of Income for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 (Losses) gains recognized in AOCI on net investment hedges (effective portion) $ (648 ) $ 2,908 $ 1,485 (Losses) gains recognized in foreign exchange income (ineffective portion) $ (1,953 ) $ 1,124 $ 880 Derivatives Not Designated as Hedging Instruments Interest Rate Swaps and Options — The Company enters into interest rate derivatives including interest rate swaps and options with its customers to allow them 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 interest rate contracts with institutional counterparties. As of December 31, 2017 , the total notional amounts of interest rate swaps and options, including mirrored transactions with institutional counterparties and the Company’s customers, totaled $4.69 billion for derivatives that were in an asset valuation position and $4.65 billion for derivatives that were in a liability valuation position. As of December 31, 2016 , the total notional amounts of interest rate swaps and options, including mirrored transactions with institutional counterparties and the Company’s customers, totaled $3.86 billion for derivatives that were in an asset valuation position and $3.81 billion for derivatives that were in a liability valuation position. The fair value of interest rate swap and option contracts with institutional counterparties and the Company’s customers amounted to a $58.6 million asset and a $58.0 million liability as of December 31, 2017 . The fair value of interest rate swap and option contracts with institutional counterparties and the Company’s customers amounted to a $67.6 million asset and a $65.1 million liability as of December 31, 2016 . Foreign Exchange Contracts — The Company enters into foreign exchange contracts with its customers, primarily comprised of forward, swap and spot contracts to enable its customers to hedge their transactions in foreign currencies against fluctuations in foreign exchange rates, and also to allow the Company to economically hedge against foreign currency fluctuations in certain foreign currency denominated deposits that it offers to its customers, as well as the Company’s investment in its China subsidiary, East West Bank (China) Limited. For a majority of the foreign exchange transactions entered with its customers, the Company enters into offsetting foreign exchange contracts with institutional counterparties to mitigate the foreign exchange risk. A majority of these contracts have original maturities of one year or less. As of December 31, 2017 and 2016 , the total notional amounts of the foreign exchange contracts were $770.2 million and $767.8 million , respectively. The fair value of the foreign exchange contracts recorded was a $5.8 million asset and a $10.2 million liability as of December 31, 2017 . The fair value of the foreign exchange contracts recorded was an $11.9 million asset and an $11.2 million liability as of December 31, 2016 . Credit Risk Participation Agreements — The Company has entered into RPAs under which the Company assumed its pro-rata share of the credit exposure associated with the borrower’s performance related to interest rate derivative contracts. The Company may or may not be a party to the interest rate derivative contract and enters into such RPAs in instances where the Company is a party to the related loan participation agreement with the borrower. The Company will make or receive payments under the RPAs if the borrower defaults on its obligation to perform under the interest rate derivative contract. The Company manages its credit risk on the RPAs by monitoring the credit worthiness of the borrowers, which is based on the normal credit review process. The notional amount of the RPAs reflects the Company’s pro-rata share of the derivative instrument. As of December 31, 2017 , the notional amount and fair value of the RPAs purchased were $35.2 million and an $8 thousand liability, respectively. As of December 31, 2017 , the notional amount and fair value of the RPAs sold were $13.8 million and a $1 thousand asset, respectively. As of December 31, 2016 , the notional amount and fair value of the RPAs purchased were $48.3 million and a $3 thousand liability, respectively. As of December 31, 2016 , the notional amount and fair value of the RPAs sold were $23.1 million and a $3 thousand asset, respectively. Assuming all underlying borrowers referenced in the interest rate derivative contracts defaulted as of December 31, 2017 and 2016 , the exposures from the RPAs purchased would be $419 thousand and $179 thousand , respectively. As of December 31, 2017 and 2016 , the weighted-average remaining maturities of the outstanding RPAs were 6.0 years and 3.7 years , respectively. Warrants — The Company has obtained warrants to purchase preferred and common stock of technology and life sciences companies, as part of the loan origination process. As of December 31, 2017 , the Company held four warrants in public companies and 23 warrants in private companies. The fair value of the warrants for public and private companies was a $993 thousand asset and a $679 thousand asset, respectively, totaling $ 1.7 million as of December 31, 2017 . Foreign Exchange Options — During 2010, the Company entered into foreign exchange option contracts with major brokerage firms to economically hedge against foreign exchange fluctuations in certain certificates of deposit available to its customers. These certificates of deposit had a term of five years and paid interest based on the performance of the RMB relative to the USD. Under ASC 815, a certificate of deposit that pays interest based on changes in foreign exchange rates is a hybrid instrument with an embedded derivative that must be accounted for separately from the host contract (i.e., certificates of deposit). In accordance with ASC 815, both the embedded derivative instruments and the freestanding foreign exchange option contracts are recorded at fair value. These instruments expired in the second quarter of 2015. 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 years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Location in Consolidated Statement of Income Year Ended December 31, 2017 2016 2015 Derivatives not designated as hedging instruments: Interest rate swaps and options Derivative fees and other income $ (1,772 ) $ 2,557 $ 65 Foreign exchange contracts Foreign exchange income 22,076 12,632 4,235 Foreign exchange options Foreign exchange income — — 236 RPAs Derivative fees and other income (7 ) — — Warrants Ancillary loan fees and other income 1,672 — — Embedded derivative liabilities Other operating expense — — (136 ) Total net gains $ 21,969 $ 15,189 $ 4,400 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 grade. As of December 31, 2017 and 2016 , the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a net liability position was $6.3 million and $7.1 million , respectively, with collateral posted of $6.2 million and $9.1 million , respectively. In the event that East West Bank’s credit rating is downgraded to below investment grade, minimal additional collateral would have been required to be posted as of December 31, 2017 and 2016 . Offsetting of Derivatives The Company has entered into agreements with certain counterparty financial institutions, which include master netting agreements. However, the Company has elected to account for all derivatives with counterparty institutions on a gross basis. The following tables present gross derivatives on the Consolidated Balance Sheet and the respective collateral received or pledged in the form of other financial instruments, which are generally marketable securities and/or cash. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of overcollateralization are not shown: ($ in thousands) As of December 31, 2017 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Derivative Collateral Derivative assets $ 66,146 $ 36,941 $ 29,205 $ — $ 29,205 $ (18,955 ) (1) $ (9,839 ) (2) $ 411 Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Derivative Collateral Derivative liabilities $ 74,935 $ 26,732 $ 48,203 $ — $ 48,203 $ (18,955 ) (1) $ (28,796 ) (3) $ 452 ($ in thousands) As of December 31, 2016 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Derivative Collateral Derivative assets $ 83,780 $ 51,218 $ 32,562 $ — $ 32,562 $ (20,991 ) (1) $ (10,687 ) (2) $ 884 Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on the Consolidated Balance Sheet Net Derivative Collateral Derivative liabilities $ 82,323 $ 24,097 $ 58,226 $ — $ 58,226 $ (20,991 ) (1) $ (36,349 ) (3) $ 886 (1) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable master netting arrangements if the Company has elected to net. (2) Represents cash and securities received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements, including $8.6 million and $8.1 million of cash collateral received as of December 31, 2017 and 2016 , respectively. (3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements, including $10.7 million and $170 thousand of cash collateral posted as of December 31, 2017 and 2016 , respectively. In addition to the amounts included in the tables above, the Company also has balance sheet netting related to resale and repurchase agreements. Refer to Note 4 — Securities Purchased under Resale Agreements and Sold under Repurchase Agreements to the Consolidated Financial Statements for additional information. Refer to Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements for fair value measurement disclosures on derivatives. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans Receivable and Allowance for Credit Losses | Loans Receivable and Allowance for Credit Losses The Company’s held-for-investment loan portfolio includes originated and purchased loans. Originated and purchased loans with no evidence of credit deterioration at their acquisition date are referred to collectively as non-PCI loans. PCI loans are loans acquired with evidence of credit deterioration since their origination and it is probable at the acquisition date that the Company would be unable to collect all contractually required payments. PCI loans are accounted for under ASC Subtopic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . The Company has elected to account for PCI loans on a pool level basis under ASC 310-30 at the time of acquisition. The following table presents the composition of the Company’s non-PCI and PCI loans as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 December 31, 2016 Non-PCI (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI (2) Total (1)(2) Commercial lending: C&I $ 10,685,436 $ 11,795 $ 10,697,231 $ 9,602,176 $ 38,387 $ 9,640,563 CRE 8,659,209 277,688 8,936,897 7,667,661 348,448 8,016,109 Multifamily residential 1,855,128 61,048 1,916,176 1,490,285 95,654 1,585,939 Construction and land 659,326 371 659,697 672,836 1,918 674,754 Total commercial lending 21,859,099 350,902 22,210,001 19,432,958 484,407 19,917,365 Consumer lending: Single-family residential 4,528,911 117,378 4,646,289 3,370,669 139,110 3,509,779 HELOCs 1,768,917 14,007 1,782,924 1,741,852 18,924 1,760,776 Other consumer 336,504 — 336,504 315,215 4 315,219 Total consumer lending 6,634,332 131,385 6,765,717 5,427,736 158,038 5,585,774 Total loans held-for-investment $ 28,493,431 $ 482,287 $ 28,975,718 $ 24,860,694 $ 642,445 $ 25,503,139 Allowance for loan losses (287,070 ) (58 ) (287,128 ) (260,402 ) (118 ) (260,520 ) Loans held-for-investment, net $ 28,206,361 $ 482,229 $ 28,688,590 $ 24,600,292 $ 642,327 $ 25,242,619 (1) Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(34.0) million and $1.2 million as of December 31, 2017 and 2016 , respectively. (2) Includes ASC 310-30 discount of $35.3 million and $49.4 million as of December 31, 2017 and 2016 , respectively. Commercial lending portfolio includes C&I, CRE, multifamily residential, and construction and land loans. Consumer lending portfolio includes single-family residential, HELOC and other consumer loans. C&I loan sector, which is comprised of commercial business and trade finance loans, provides financing to businesses in a wide spectrum of industries. CRE loan sector represents income producing real estate loans where the interest rates may be fixed, variable or hybrid. Included in the CRE loan sector are owner occupied and non-owner occupied loans (where 50% or more of the debt service for the loan is provided by rental income). Construction loans in the construction and land sector mainly provide financing for the construction of hotels, multifamily and residential condominiums, as well as mixed use (residential and retail) structures. Residential loans are comprised of multifamily residential loans in the commercial lending portfolio and single-family residential loans in the consumer lending portfolio. The Company offers a variety of first lien mortgage loan programs, including fixed rate conforming loans as well as adjustable rate mortgage loans with interest rates that adjust annually after the initial fixed periods of one to seven years. The first lien mortgage loans are secured by one-to-four unit residential properties located in its primary lending areas. The HELOC loan portfolio is secured by one-to-four unit residential properties located in its primary lending areas. It is largely comprised of loans originated through a reduced documentation loan program, where a substantial down payment is required, resulting in a low loan-to-value ratio, typically 60% or less at origination. The Company is in a first lien position for many of these reduced documentation HELOCs. These loans have historically experienced low delinquency and default rates. Other consumer loans are mainly comprised of insurance premium financing and credit card loans. All loans originated are subject to the Company’s underwriting guidelines and loan origination standards. Management believes that the Company’s underwriting criteria and procedures adequately consider the unique risks associated with these products. The Company conducts a variety of quality control procedures and periodic audits, including the review of lending and legal requirements, to ensure that it is in compliance with these requirements. As of December 31, 2017 and 2016 , loans of $18.88 billion and $16.44 billion , respectively, were pledged to secure borrowings and to provide additional borrowing capacity from the Federal Reserve Bank and the FHLB. Credit Quality Indicators All loans are subject to the Company’s internal and external credit review and monitoring. Loans are risk rated based on an analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of all repayment sources, the borrower’s current payment performance/delinquency, current financial and liquidity status and all other relevant information. For single-family residential loans, payment performance/delinquency is the driving indicator for the risk ratings. Risk ratings are the overall credit quality indicator for the Company and the credit quality indicator utilized for estimating the appropriate allowance for loan losses. The Company utilizes a risk rating system, which classifies loans within the following categories: Pass, Watch, Special Mention, Substandard, Doubtful and Loss. The risk ratings reflect the relative strength of the repayment sources. Pass and Watch loans are loans that have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Special Mention loans are loans that have potential weaknesses that warrant closer attention by management. Special Mention is a transitory grade. If potential weaknesses are resolved, the loan is upgraded to a Pass or Watch grade. If negative trends in the borrower’s financial status or other information indicate that the repayment sources may become inadequate, the loan is downgraded to a Substandard grade. Substandard loans are loans that have well-defined weaknesses that jeopardize the full and timely repayment of the loan. Substandard loans have a distinct possibility of loss, if the deficiencies are not corrected. Additionally, when management has assessed a potential for loss but a distinct possibility of loss is not recognizable, the loan is still classified as Substandard. Doubtful loans have insufficient sources of repayment and a high probability of loss. Loss loans are loans that are uncollectible and of such little value that they are no longer considered bankable assets. These internal risk ratings are reviewed routinely and adjusted based on changes in the borrowers’ financial status and the loans’ collectability. The following tables present the credit risk ratings for non-PCI loans by portfolio segment as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Loss Total Non- PCI Loans Commercial lending: C&I $ 10,369,516 $ 114,769 $ 180,269 $ 20,882 $ — $ 10,685,436 CRE 8,484,635 65,616 108,958 — — 8,659,209 Multifamily residential 1,839,958 — 15,170 — — 1,855,128 Construction and land 614,441 4,590 40,295 — — 659,326 Total commercial lending 21,308,550 184,975 344,692 20,882 — 21,859,099 Consumer lending: Single-family residential 4,490,672 16,504 21,735 — — 4,528,911 HELOCs 1,744,903 11,900 12,114 — — 1,768,917 Other consumer 333,895 111 2,498 — — 336,504 Total consumer lending 6,569,470 28,515 36,347 — — 6,634,332 Total $ 27,878,020 $ 213,490 $ 381,039 $ 20,882 $ — $ 28,493,431 ($ in thousands) December 31, 2016 Pass/Watch Special Mention Substandard Doubtful Loss Total Non- Commercial lending: C&I $ 9,194,701 $ 164,711 $ 237,599 $ 5,157 $ 8 $ 9,602,176 CRE 7,476,804 29,005 161,852 — — 7,667,661 Multifamily residential 1,462,522 2,268 25,495 — — 1,490,285 Construction and land 659,536 — 13,290 10 — 672,836 Total commercial lending 18,793,563 195,984 438,236 5,167 8 19,432,958 Consumer lending: Single-family residential 3,341,015 10,179 19,475 — — 3,370,669 HELOCs 1,728,254 6,717 6,881 — — 1,741,852 Other consumer 315,151 47 17 — — 315,215 Total consumer lending 5,384,420 16,943 26,373 — — 5,427,736 Total $ 24,177,983 $ 212,927 $ 464,609 $ 5,167 $ 8 $ 24,860,694 The following tables present the credit risk ratings for PCI loans by portfolio segment as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Loss Total PCI Loans Commercial lending: C&I $ 10,712 $ 57 $ 1,026 $ — $ — $ 11,795 CRE 238,605 531 38,552 — — 277,688 Multifamily residential 56,720 — 4,328 — — 61,048 Construction and land 44 — 327 — — 371 Total commercial lending 306,081 588 44,233 — — 350,902 Consumer lending: Single-family residential 113,905 1,543 1,930 — — 117,378 HELOCs 12,642 — 1,365 — — 14,007 Other consumer — — — — — — Total consumer lending 126,547 1,543 3,295 — — 131,385 Total (1) $ 432,628 $ 2,131 $ 47,528 $ — $ — $ 482,287 ($ in thousands) December 31, 2016 Pass/Watch Special Mention Substandard Doubtful Loss Total PCI Commercial lending: C&I $ 33,885 $ 772 $ 3,730 $ — $ — $ 38,387 CRE 293,529 3,239 51,680 — — 348,448 Multifamily residential 86,190 — 9,464 — — 95,654 Construction and land 1,562 — 356 — — 1,918 Total commercial lending 415,166 4,011 65,230 — — 484,407 Consumer lending: Single-family residential 136,245 1,239 1,626 — — 139,110 HELOCs 17,429 316 1,179 — — 18,924 Other consumer 4 — — — — 4 Total consumer lending 153,678 1,555 2,805 — — 158,038 Total (1) $ 568,844 $ 5,566 $ 68,035 $ — $ — $ 642,445 (1) Loans net of ASC 310-30 discount. Nonaccrual and Past Due Loans Non-PCI loans that are 90 or more days past due are generally placed on nonaccrual status. Additionally, non-PCI 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. The following tables present the aging analysis on non-PCI loans as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total Non- PCI Loans Commercial lending: C&I $ 30,964 $ 82 $ 31,046 $ 27,408 $ 41,805 $ 69,213 $ 10,585,177 $ 10,685,436 CRE 3,414 466 3,880 5,430 21,556 26,986 8,628,343 8,659,209 Multifamily residential 4,846 14 4,860 1,418 299 1,717 1,848,551 1,855,128 Construction and land 758 — 758 — 3,973 3,973 654,595 659,326 Total commercial lending 39,982 562 40,544 34,256 67,633 101,889 21,716,666 21,859,099 Consumer lending: Single-family residential 13,269 5,355 18,624 6 5,917 5,923 4,504,364 4,528,911 HELOCs 4,286 4,186 8,472 89 3,917 4,006 1,756,439 1,768,917 Other consumer 14 23 37 — 2,491 2,491 333,976 336,504 Total consumer lending 17,569 9,564 27,133 95 12,325 12,420 6,594,779 6,634,332 Total $ 57,551 $ 10,126 $ 67,677 $ 34,351 $ 79,958 $ 114,309 $ 28,311,445 $ 28,493,431 ($ in thousands) December 31, 2016 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total Non- Commercial lending: C&I $ 45,052 $ 2,279 $ 47,331 $ 60,519 $ 20,737 $ 81,256 $ 9,473,589 $ 9,602,176 CRE 6,233 14,080 20,313 14,872 12,035 26,907 7,620,441 7,667,661 Multifamily residential 3,951 374 4,325 2,790 194 2,984 1,482,976 1,490,285 Construction and land 4,994 — 4,994 433 4,893 5,326 662,516 672,836 Total commercial lending 60,230 16,733 76,963 78,614 37,859 116,473 19,239,522 19,432,958 Consumer lending: Single-family residential 9,595 8,076 17,671 — 4,214 4,214 3,348,784 3,370,669 HELOCs 2,845 2,606 5,451 165 1,965 2,130 1,734,271 1,741,852 Other consumer 482 622 1,104 — — — 314,111 315,215 Total consumer lending 12,922 11,304 24,226 165 6,179 6,344 5,397,166 5,427,736 Total $ 73,152 $ 28,037 $ 101,189 $ 78,779 $ 44,038 $ 122,817 $ 24,636,688 $ 24,860,694 For information on the policy for recording payments received and resuming accrual of interest on non-PCI loans that are placed on nonaccrual status, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements. PCI loans are excluded from the above aging analysis tables as the Company has elected to account for these loans on a pool level basis under ASC 310-30 at the time of acquisition. Refer to the discussion on PCI loans within this note for additional details on interest income recognition. As of December 31, 2017 and 2016 , PCI loans on nonaccrual status totaled $5.3 million and $11.7 million , respectively. Loans in Process of Foreclosure As of December 31, 2017 and 2016 , residential and consumer mortgage loans of $6.6 million and $3.1 million , respectively, were secured by residential real estate properties, for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions, which were not included in OREO. A foreclosed residential real estate property with a carrying amount of $188 thousand was included in total net OREO of $830 thousand as of December 31, 2017 . In comparison, foreclosed residential real estate properties with a carrying amount of $401 thousand were included in total net OREO of $6.7 million as of December 31, 2016 . Troubled Debt Restructurings Potential TDRs are individually evaluated and the type of restructuring is selected based on the loan type and the circumstances of the borrower’s financial difficulty. A TDR is a modification of the terms of a loan when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not have otherwise considered. The following tables present the additions to non-PCI TDRs for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Loans Modified as TDRs During the Year Ended December 31, 2017 Number Pre-Modification Post-Modification (1) Financial (2) Commercial lending: C&I 16 $ 43,884 $ 37,900 $ 11,520 CRE 4 $ 2,675 $ 2,627 $ 157 Multifamily residential 1 $ 3,655 $ 2,969 $ — Consumer lending: HELOCs 1 $ 152 $ 155 $ — ($ in thousands) Loans Modified as TDRs During the Year Ended December 31, 2016 Number Pre-Modification Post-Modification (1) Financial (2) Commercial lending: C&I 18 $ 65,991 $ 40,405 $ 20,574 CRE 6 $ 19,275 $ 18,824 $ 701 Construction and land 1 $ 5,522 $ 4,883 $ — Consumer lending: Single-family residential 3 $ 1,291 $ 1,268 $ — HELOCs 3 $ 491 $ 382 $ 1 ($ in thousands) Loans Modified as TDRs During the Year Ended December 31, 2015 Number Pre-Modification Post-Modification (1) Financial (2) Commercial lending: C&I 18 $ 42,816 $ 34,165 $ 6,726 CRE 3 $ 1,802 $ 1,727 $ — Construction and land 2 $ 2,227 $ 83 $ 102 Consumer lending: Single-family residential 1 $ 281 $ 279 $ 2 (1) Includes subsequent payments after modification and reflects the balance as of December 31, 2017 , 2016 and 2015 . (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. The following tables present the non-PCI TDR modifications for the years ended December 31, 2017 , 2016 and 2015 by modification type: ($ in thousands) Modification Type During the Year Ended December 31, 2017 Principal (1) Principal and Interest (2) Interest Rate Reduction Interest Other Total Commercial lending: C&I $ 13,568 $ 7,848 $ — $ — $ 16,484 $ 37,900 CRE 2,627 — — — — 2,627 Multifamily residential 2,969 — — — — 2,969 Total commercial lending 19,164 7,848 — — 16,484 43,496 Consumer lending: HELOCs — 155 — — — 155 Total consumer lending — 155 — — — 155 Total $ 19,164 $ 8,003 $ — $ — $ 16,484 $ 43,651 ($ in thousands) Modification Type During the Year Ended December 31, 2016 Principal (1) Principal and Interest (2) Interest Rate Reduction Interest Deferments Other Total Commercial lending: C&I $ 34,499 $ — $ 5,876 $ 30 $ — $ 40,405 CRE 17,750 — — — 1,074 18,824 Construction and land 4,883 — — — — 4,883 Total commercial lending 57,132 — 5,876 30 1,074 64,112 Consumer lending: Single-family residential 264 — 797 207 — 1,268 HELOCs 333 — 49 — — 382 Total consumer lending 597 — 846 207 — 1,650 Total $ 57,729 $ — $ 6,722 $ 237 $ 1,074 $ 65,762 ($ in thousands) Modification Type During the Year Ended December 31, 2015 Principal (1) Principal (2) Interest Interest Other Total Commercial lending: C&I $ 16,364 $ 17,801 $ — $ — $ — $ 34,165 CRE 548 787 — — 392 1,727 Construction and land — — — — 83 83 Total commercial lending 16,912 18,588 — — 475 35,975 Consumer lending: Single-family residential 279 — — — — 279 Total consumer lending 279 — — — — 279 Total $ 17,191 $ 18,588 $ — $ — $ 475 $ 36,254 (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. Subsequent to restructuring, a TDR that becomes delinquent, generally beyond 90 days, is considered to have defaulted. As TDRs are individually evaluated for impairment under the specific reserve methodology, subsequent defaults do not generally have a significant additional impact on the allowance for loan losses. The following table presents information on loans modified as TDRs within the previous 12 months that have subsequently defaulted during the years ended December 31, 2017 , 2016 and 2015 , and were still in default at the respective period end: ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2017 2016 2015 Number of Recorded Number of Recorded Number of Recorded Commercial lending: C&I 3 $ 8,659 — $ — — $ — CRE — $ — 2 $ 3,150 — $ — Construction and land — $ — 1 $ 4,883 — $ — Consumer lending: Single-family residential — $ — — $ — 1 $ 279 The amount of additional funds committed to lend to borrowers whose terms have been modified was $5.1 million and $9.9 million as of December 31, 2017 and 2016 , respectively. Impaired Loans The following tables present information on non-PCI impaired loans as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 98,889 $ 36,086 $ 62,599 $ 98,685 $ 16,094 CRE 35,550 28,699 6,857 35,556 684 Multifamily residential 10,625 8,019 2,617 10,636 88 Construction and land 3,973 3,973 — 3,973 — Total commercial lending 149,037 76,777 72,073 148,850 16,866 Consumer lending: Single-family residential 14,287 — 14,338 14,338 534 HELOCs 5,201 2,287 2,921 5,208 4 Other consumer 2,491 — 2,491 2,491 2,491 Total consumer lending 21,979 2,287 19,750 22,037 3,029 Total non-PCI impaired loans $ 171,016 $ 79,064 $ 91,823 $ 170,887 $ 19,895 ($ in thousands) December 31, 2016 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 167,466 $ 78,316 $ 47,303 $ 125,619 $ 10,477 CRE 50,718 32,507 14,001 46,508 1,263 Multifamily residential 11,181 5,684 4,357 10,041 180 Construction and land 6,457 5,427 443 5,870 63 Total commercial lending 235,822 121,934 66,104 188,038 11,983 Consumer lending: Single-family residential 15,435 — 14,335 14,335 687 HELOCs 4,016 — 3,682 3,682 31 Total consumer lending 19,451 — 18,017 18,017 718 Total non-PCI impaired loans $ 255,273 $ 121,934 $ 84,121 $ 206,055 $ 12,701 The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Average Recorded Investment Recognized Interest Income (1) Average Recognized (1) Average Recognized Interest Income (1) Commercial lending: C&I $ 110,662 $ 1,517 $ 148,986 $ 2,612 $ 85,290 $ 538 CRE 36,003 578 47,064 1,253 43,598 536 Multifamily residential 11,455 422 15,763 302 24,024 312 Construction and land 4,382 — 6,388 34 2,740 39 Total commercial lending 162,502 2,517 218,201 4,201 155,652 1,425 Consumer lending: Single-family residential 14,994 417 14,323 447 15,365 242 HELOCs 5,494 55 3,703 63 1,252 47 Other consumer 2,142 — — — — — Total consumer lending 22,630 472 18,026 510 16,617 289 Total non-PCI impaired loans $ 185,132 $ 2,989 $ 236,227 $ 4,711 $ 172,269 $ 1,714 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income. Allowance for Credit Losses The following table presents a summary of activities in the allowance for loan losses by portfolio segment for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Non-PCI Loans Allowance for non-PCI loans, beginning of period $ 260,402 $ 264,600 $ 260,965 Provision for loan losses on non-PCI loans 49,129 31,959 6,924 Gross charge-offs: Commercial lending: C&I (38,118 ) (47,739 ) (20,423 ) CRE — (464 ) (1,052 ) Multifamily residential (635 ) (29 ) (1,650 ) Construction and land (149 ) (117 ) (493 ) Consumer lending: Single-family residential (1 ) (137 ) (36 ) HELOCs (55 ) (9 ) (98 ) Other consumer (17 ) (13 ) (502 ) Total gross charge-offs (38,975 ) (48,508 ) (24,254 ) Gross recoveries: Commercial lending: C&I 12,065 8,453 8,782 CRE 2,111 1,488 2,488 Multifamily residential 1,357 1,476 4,298 Construction and land 259 203 4,647 Consumer lending: Single-family residential 546 401 323 HELOCs 24 7 54 Other consumer 152 323 373 Total gross recoveries 16,514 12,351 20,965 Net charge-offs (22,461 ) (36,157 ) (3,289 ) Allowance for non-PCI loans, end of period 287,070 260,402 264,600 PCI Loans Allowance for PCI loans, beginning of period 118 359 714 Reversal of loan losses on PCI loans (60 ) (241 ) (355 ) Allowance for PCI loans, end of period 58 118 359 Allowance for loan losses $ 287,128 $ 260,520 $ 264,959 For further information on accounting policies and the methodologies used to estimate the allowance for credit losses and loan charge-offs, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements. The following table presents a summary of activities in the allowance for unfunded credit reserves for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Allowance for unfunded credit reserves, beginning of period $ 16,121 $ 20,360 $ 12,712 (Reversal of) provision for unfunded credit reserves (2,803 ) (4,239 ) 7,648 Allowance for unfunded credit reserves, end of period $ 13,318 $ 16,121 $ 20,360 The allowance for unfunded credit reserves is maintained at a level management believes to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The allowance for unfunded credit reserves is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. See Note 13 — Commitments, Contingencies and Related Party Transactions to the Consolidated Financial Statements for additional information related to unfunded credit reserves. The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Allowance for loan losses Individually evaluated for impairment $ 16,094 $ 684 $ 88 $ — $ 534 $ 4 $ 2,491 $ 19,895 Collectively evaluated for impairment 146,964 40,495 19,021 26,881 25,828 7,350 636 267,175 Acquired with deteriorated credit quality — 58 — — — — — 58 Total $ 163,058 $ 41,237 $ 19,109 $ 26,881 $ 26,362 $ 7,354 $ 3,127 $ 287,128 Recorded investment in loans Individually evaluated for impairment $ 98,685 $ 35,556 $ 10,636 $ 3,973 $ 14,338 $ 5,208 $ 2,491 $ 170,887 Collectively evaluated for impairment 10,586,751 8,623,653 1,844,492 655,353 4,514,573 1,763,709 334,013 28,322,544 Acquired with deteriorated credit quality (1) 11,795 277,688 61,048 371 117,378 14,007 — 482,287 Total (1) $ 10,697,231 $ 8,936,897 $ 1,916,176 $ 659,697 $ 4,646,289 $ 1,782,924 $ 336,504 $ 28,975,718 ($ in thousands) December 31, 2016 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Allowance for loan losses Individually evaluated for impairment $ 10,477 $ 1,263 $ 180 $ 63 $ 687 $ 31 $ — $ 12,701 Collectively evaluated for impairment 131,689 46,552 17,363 24,926 19,103 7,475 593 247,701 Acquired with deteriorated credit quality 1 112 — — 5 — — 118 Total $ 142,167 $ 47,927 $ 17,543 $ 24,989 $ 19,795 $ 7,506 $ 593 $ 260,520 Recorded investment in loans Individually evaluated for impairment $ 125,619 $ 46,508 $ 10,041 $ 5,870 $ 14,335 $ 3,682 $ — $ 206,055 Collectively evaluated for impairment 9,476,557 7,621,153 1,480,244 666,966 3,356,334 1,738,170 315,215 24,654,639 Acquired with deteriorated credit quality (1) 38,387 348,448 95,654 1,918 139,110 18,924 4 642,445 Total (1) $ 9,640,563 $ 8,016,109 $ 1,585,939 $ 674,754 $ 3,509,779 $ 1,760,776 $ 315,219 $ 25,503,139 (1) Loans net of ASC 310-30 discount. Purchased Credit Impaired Loans At the date of acquisition, PCI loans are pooled and accounted for at fair value, which represents the discounted value of the expected cash flows of the loan portfolio. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flows expectation. The cash flows expected over the life of the pools are estimated by an internal cash flows model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions as to cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. Prepayments affect the estimated life of PCI loans, which may change the amount of interest income, and possibly principal, expected to be collected. The excess of total contractual cash flows over the cash flows expected to be received at origination is deemed to be the “nonaccretable difference.” The following table presents the changes in accretable yield for PCI loans for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Accretable yield for PCI loans, beginning of period $ 136,247 $ 214,907 $ 311,688 Accretion (42,487 ) (68,708 ) (107,442 ) Changes in expected cash flows 8,217 (9,952 ) 10,661 Accretable yield for PCI loans, end of period $ 101,977 $ 136,247 $ 214,907 Loans Held-for-Sale Loans held-for-sale are carried at the lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s management evaluation processes, including asset/liability management and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. From time to time, the Company purchases and sells loans in the secondary market. Certain purchased loans are transferred from held-for-investment to held-for-sale; and write-downs to allowance for loan losses are recorded, when appropriate. As of December 31, 2017 , loans held-for-sale amounted to $78.2 million . This balance was comprised primarily of loans related to the pending sale of the DCB branches of $78.1 million , which is included in Branch assets held-for-sale on the Consolidated Balance Sheet. For additional information on this pending sale, see Note 2 — Dispositions and Held-for-Sale to the Consolidated Financial Statements. The remaining loans held-for-sale, which amounted to $85 thousand , were comprised of single-family residential loans. In comparison, as of December 31, 2016 , loans held-for-sale, which amounted to $23.1 million , were primarily comprised of consumer loans. The following tables present information about the sales, purchases and securitization of loans, and reclassification of loans held-for-investment to/from loans held-for-sale during the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Construction and Land Single-Family HELOCs Other Consumer Total Loans transferred from held-for-investment to held-for-sale $ 476,644 $ 52,217 $ 531 $ 1,609 $ 249 $ — $ 3,706 $ 534,956 (1) Loans of DCB branches transferred from held-for-investment to held-for-sale (included in Branch assets held-for-sale) $ 17,590 $ 36,783 $ 12,448 $ 241 $ 6,416 $ 4,309 $ 345 $ 78,132 (1) Sales $ 476,644 $ 52,217 $ 531 $ 1,609 $ 21,058 $ — $ 25,905 $ 577,964 (2)(3)(4) Purchases $ 503,359 $ — $ 2,311 $ — $ 29,060 $ — $ — $ 534,730 (6) ($ in thousands) Year Ended December 31, 2016 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Loans transferred from held-for-investment to held-for-sale $ 434,137 $ 110,927 $ 269,791 $ 4,245 $ — $ — $ — $ 819,100 (1) Loans transferred from held-for-sale to held-for-investment $ — $ — $ (4,943 ) $ — $ — $ — $ — $ (4,943 ) Sales $ 434,137 $ 110,927 $ 61,268 $ 4,245 $ 18,092 $ — $ — $ 628,669 (2)(3)(4) Securitization of loans held-for-investment $ — $ — $ 201,675 $ — $ — $ — $ — $ 201,675 (5) Purchases $ 646,793 $ — $ 5,658 $ — $ 488,577 $ — $ — $ 1,141,028 (6)(7) ($ in thousands) Year Ended December 31, 2015 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Loans transferred from held-for-investment to held-for-sale $ 779,854 $ 227 $ — $ 4,754 $ 962,538 $ 248 $ — $ 1,747,621 (1) Loans transferred from held-for-sale to held-for-investment $ — $ — $ — $ — $ (53,376 ) $ — $ — $ (53,376 ) Sales $ 779,682 $ 227 $ — $ 4,754 $ 907,373 $ 248 $ 9,913 $ 1,702,197 (2)(3)(4) Purchases $ 233,090 $ — $ 11,046 $ — $ 38,271 $ — $ — $ 282,407 (6) (1) The Company recorded $473 thousand , $1.9 million and $5.1 million in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Includes originated loans sold of $178.2 million , $ 369.6 million and $1.04 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. Originated loans sold were primarily comprised of C&I, CRE and single-family residential loans for the year ended December 31, 2017 , C&I, CRE and multifamily residential loans for the year ended December 31, 2016 , and single-family residential and C&I loans for the year ended December 31, 2015 . (3) Includes purchased loans sold in the secondary market of $399.8 million , $259.1 million and $661.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (4) Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were $8.9 million , $10.6 million and $27.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The lower of cost or fair value adjustments of $61 thousand , $5.6 million and $3.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, were recorded in Net gains on sales of loans on the Consolidated Statement of Income. (5) Represents multifamily residential loans securitized during the first quarter of 2016 that resulted in net gains of $1.1 million , $641 thousand in mortgage servicing rights and $160.1 million of held-to-maturity investment security. (6) C&I loan purchases for each of the years ended December 31, 2017 , 2016 and 2015 mainly represent |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET | |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net | Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net The CRA encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate income. The Company invests in certain affordable housing limited partnerships that qualify for CRA credits. Such limited partnerships are formed to develop and operate apartment complexes designed as high-quality affordable housing for lower income tenants throughout the U.S. Each of the partnerships must meet the regulatory requirements for affordable housing for a minimum 15 -year compliance period to fully utilize the tax credits. In addition to affordable housing limited partnerships, the Company invests in new market tax credit projects that qualify for CRA credits and 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, while 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 balances of the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of the periods indicated: ($ in thousands) December 31, 2017 2016 Investments in qualified affordable housing partnerships, net $ 162,824 $ 183,917 Accrued expenses and other liabilities — Unfunded commitments $ 55,815 $ 57,243 The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the periods indicated: ($ in thousands) Year Ended December 31, 2017 2016 2015 Tax credits and other tax benefits recognized $ 46,698 $ 37,252 $ 38,271 Amortization expense included in income tax expense $ 38,464 $ 28,206 $ 26,814 Investments in Tax Credit and Other Investments, Net Investments in tax credit and other investments, net, were $224.6 million and $173.3 million as of December 31, 2017 and 2016 , respectively. The Company is not the primary beneficiary in these partnerships and, therefore, is not required to consolidate its investments in tax credit and other investments on the Consolidated Financial Statements. Depending on the ownership percentage and the influence the Company has on the limited partnership, the Company applies either the equity or cost method of accounting. Total unfunded commitments for these investments were $113.4 million and $117.0 million as of December 31, 2017 and 2016 , respectively, and are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Amortization of tax credit and other investments was $88.0 million , $83.4 million and $36.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , the Company’s unfunded commitments related to investments in qualified affordable housing partnerships, tax credit and other investments are estimated to be funded as follows: ($ in thousands) Amount 2018 $ 98,000 2019 34,790 2020 16,744 2021 7,734 2022 11,078 Thereafter 841 Total $ 169,187 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill Total goodwill of $469.4 million remained unchanged as of December 31, 2017 compared to December 31, 2016 . Goodwill is tested for impairment on an annual basis as of December 31 st , 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 amount. The Company’s three operating segments, Retail Banking, Commercial Banking and Other, are equivalent to the Company’s reporting units. For complete discussion and disclosure, see Note 19 — Business Segments to the Consolidated Financial Statements. Impairment Analysis The Company performed its annual impairment analysis as of December 31, 2017 to determine whether and to what extent, if any, recorded goodwill was impaired. The Company used a combined income and market approach to determine the fair value of the reporting units. Under the income approach, the Company prepared a net income projection for the next three years plus a terminal growth rate that was used to calculate the discounted cash flows and the present value of the reporting units. Under the market approach, the fair value was calculated using the current fair value of comparable peer banks of similar size and focus. The market capitalizations and multiples of these peer banks were used to calculate the market price of the Company and each reporting unit. The fair value was also subject to a control premium adjustment, which represents the cost savings that a purchaser of the reporting units could achieve by eliminating duplicative costs. Under the combined income and market approach, the fair value from each approach was weighted based on management’s judgment to determine the fair value. As a result of this analysis, the Company determined that there was no goodwill impairment as of December 31, 2017 as the fair value of all reporting units exceeded their respective carrying value. No assurance can be given that goodwill will not be written down in future periods. Core Deposit Intangibles Core deposit intangibles represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions and are included in Other assets on the Consolidated Balance Sheet. These intangibles are tested for impairment on an annual basis, or more frequently as events occur, or as current circumstances and conditions warrant. There were no impairment write-downs on core deposit intangibles for the years ended December 31, 2017 , 2016 and 2015 . The following table presents the gross carrying value of core deposit intangible assets and accumulated amortization as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 2016 Gross balance $ 108,814 $ 108,814 Accumulated amortization (87,760 ) (80,825 ) Net carrying balance $ 21,054 $ 27,989 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 $6.9 million , $8.1 million and $9.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The following table presents the estimated future amortization expense of core deposit intangibles for the five years succeeding December 31, 2017 and thereafter: ($ in thousands) Amount 2018 $ 5,883 2019 4,864 2020 3,846 2021 2,833 2022 1,865 Thereafter 1,763 Total $ 21,054 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
CUSTOMER DEPOSIT ACCOUNTS | |
Deposits | Deposits The following table presents the balances for deposits as of December 31, 2017 and 2016 : December 31, ($ in thousands) 2017 2016 Core deposits: Noninterest-bearing demand $ 10,887,306 $ 10,183,946 Interest-bearing checking 4,419,089 3,674,417 Money market 8,359,425 8,174,854 Savings 2,308,494 2,242,497 Total core deposits 25,974,314 24,275,714 Time deposits: Less than $100,000 1,176,973 1,300,091 $100,000 or greater 4,463,776 4,315,178 Total time deposits 5,640,749 5,615,269 Total deposits $ 31,615,063 $ 29,890,983 Time deposits in the $100 thousand or greater category included $322.0 million and $219.7 million of deposits held by the Company’s branch in Hong Kong; and $507.1 million and $329.9 million of deposits held by the Company’s subsidiary bank in China as of December 31, 2017 and 2016 , respectively. The aggregate amount of domestic time deposits that meet or exceed the current FDIC insurance limit of $250,000 was $2.37 billion and $2.35 billion as of December 31, 2017 and 2016 , respectively. The aggregate amount of foreign office time deposits, including both Hong Kong and China that meet or exceed the current FDIC insurance limit of $250,000 was $814.6 million and $538.0 million as of December 31, 2017 and 2016 , respectively. The following table presents the scheduled maturities of time deposits for the five years succeeding December 31, 2017 and thereafter: ($ in thousands) Amount 2018 $ 4,930,794 2019 394,274 2020 102,768 2021 86,308 2022 94,602 Thereafter 32,003 Total $ 5,640,749 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances and Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
FEDERAL HOME LOAN BANK ADVANCES AND LONG-TERM DEBT | |
Federal Home Loan Bank Advances and Long-Term Debt | Federal Home Loan Bank Advances and Long-Term Debt FHLB Advances FHLB advances totaled $323.9 million and $321.6 million as of December 31, 2017 and 2016 , respectively. The FHLB advances have floating interest rates that reset monthly or quarterly based on LIBOR. The weighted-average interest rate was 1.85% and 1.13% as of December 31, 2017 and 2016 , respectively. The interest rates ranged from 0.67% to 1.95% and 0.41% to 1.27% for the years ended December 31, 2017 and 2016 , respectively. As of December 31, 2017 , FHLB advances that will mature in the next five years include $81.3 million in 2019 and $242.6 million in 2022. The Company’s available borrowing capacity from FHLB advances totaled $6.83 billion and $5.65 billion as of December 31, 2017 and 2016 , respectively. The Company’s available borrowing capacity from the FHLB is derived from its portfolio of loans that are pledged to the FHLB reduced by its outstanding FHLB advances. As of December 31, 2017 and 2016 , all advances were secured by real estate loans. Long-Term Debt The following table presents the components of long-term debt as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 2016 Junior subordinated debt $ 146,577 $ 146,327 Term loan 25,000 40,000 Total long-term debt $ 171,577 $ 186,327 Junior Subordinated Debt — As of December 31, 2017 , the Company has six statutory business trusts for the purpose of issuing junior subordinated debt to third party investors. The junior subordinated debt was issued in connection with the Company’s various pooled trust preferred securities offerings. The Trusts issued both fixed and variable rate capital securities, representing undivided preferred beneficial interests in the assets of the Trusts, to third party investors. The Company is the owner of all the beneficial interests represented by the common securities of the Trusts. The junior subordinated debt is recorded as a component of long-term debt and includes the value of the common stock issued by six of the Company’s wholly-owned subsidiaries in conjunction with these transactions. The common stock is recorded in Other assets on the Consolidated Balance Sheet for the amount issued in connection with these junior subordinated debt issuances. The following table presents the outstanding junior subordinated debt issued by each trust as of December 31, 2017 and 2016 : Issuer Stated (1) Stated Current Rate December 31, 2017 December 31, 2016 Aggregate Principal Amount of Trust Securities Aggregate Principal Amount of the Junior Subordinated Debts Aggregate Aggregate ($ in thousands) East West Capital Trust V November 2034 3-month LIBOR + 1.80% 3.25% $ 464 $ 15,000 $ 464 $ 15,000 East West Capital Trust VI September 2035 3-month LIBOR + 1.50% 3.09% 619 20,000 619 20,000 East West Capital Trust VII June 2036 3-month LIBOR + 1.35% 2.94% 928 30,000 928 30,000 East West Capital Trust VIII June 2037 3-month LIBOR + 1.40% 2.91% 619 18,000 619 18,000 East West Capital Trust IX September 2037 3-month LIBOR + 1.90% 3.49% 928 30,000 928 30,000 MCBI Statutory Trust I December 2035 3-month LIBOR + 1.55% 3.14% 1,083 35,000 1,083 35,000 Total $ 4,641 $ 148,000 $ 4,641 $ 148,000 (1) All the above debt instruments are subject to call options where early redemption requires appropriate notice. The proceeds from these issuances represent liabilities of the Company to the Trusts and are reported on the Consolidated Balance Sheet as a component of Long-term debt . Interest payments on these securities are made quarterly and are deductible for tax purposes. Term Loan — In 2013, the Company entered into a $100.0 million three -year term loan agreement. The terms of the agreement were modified in 2015 to extend the term loan maturity from July 1, 2016 to December 31, 2018, where principal repayments of $5.0 million are due quarterly. The term loan bears interest at the rate of the three-month LIBOR plus 150 basis points and the weighted-average interest rate was 2.70% and 2.24% for the years ended December 31, 2017 and 2016 , respectively. The outstanding balance of the term loan was $25.0 million and $40.0 million as of December 31, 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income tax expense for the years indicated: ($ in thousands) Year Ended December 31, 2017 2016 2015 Current income tax expense (benefit): Federal $ 120,968 $ 63,642 $ (62,829 ) State 72,837 48,558 (4,750 ) Foreign 1,815 1,345 409 Total current income tax expense (benefit) 195,620 113,545 (67,170 ) Deferred income tax expense (benefit): Federal 40,057 25,296 199,858 State (6,201 ) 1,883 60,437 Foreign — (213 ) 919 Total deferred income tax expense 33,856 26,966 261,214 Income tax expense $ 229,476 $ 140,511 $ 194,044 Upon exercise or vesting of a share-based award, if the tax deduction exceeds the compensation cost that was previously recorded for financial statement purposes, this will result in an excess tax benefit. Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. As a result of the adoption of this new guidance, all excess tax benefits on share-based payment awards, which amounted to $4.8 million , were recognized within Income tax expense on the Consolidated Statement of Income for the year ended December 31, 2017 . Prior to the adoption of ASU 2016-09, any excess tax benefits were recognized in Additional paid-in capital on the Consolidated Statement of Changes in Stockholders’ Equity to offset current-period and subsequent-period tax deficiencies. Hence, the preceding table does not include these excess tax benefits recorded directly to the Consolidated Statement of Changes in Stockholders’ Equity of $1.1 million and $3.3 million for the years ended December 31, 2016 and 2015 , respectively. The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Federal income tax provision at statutory rate 35.0 % 35.0 % 35.0 % State franchise taxes, net of federal tax effect 5.9 6.1 6.3 Tax Cuts and Jobs Act of 2017 (the “Tax Act”) 4.5 — — Tax credits, net of amortization (15.1 ) (18.3 ) (8.7 ) Other, net 0.9 1.8 0.9 Effective tax rate 31.2 % 24.6 % 33.5 % On December 22, 2017, the Tax Act was signed into law, resulting in significant changes to the Internal Revenue Code. Changes include, but are not limited to, reducing the U.S. federal corporate income tax rate from 35% to 21% effective January 1, 2018, expensing 100% of the cost of acquired qualified property after September 27, 2017, transitioning from a worldwide tax system to a territorial system and imposing a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017 , as well as eliminating any carrybacks of tax credits and net operating losses (“NOLs”) incurred after December 31, 2017 . In addition, NOLs incurred after December 31, 2017 are now limited to 80% of taxable income for any given year and may be carried forward indefinitely. ASC 740, Income Taxes, requires companies to recognize the effect of the Tax Act in the period of enactment. Hence, such effects must be recognized in the Company’s 2017 Consolidated Financial Statements, even though the effective date of the law for most provisions is January 1, 2018. The Company recorded $41.7 million of income tax expense in the fourth quarter of 2017 related to the impact of the Tax Act, the period in which the legislation was enacted. This amount was primarily related to the remeasurements of certain deferred tax assets and liabilities of $33.1 million , as well as tax credits and other tax benefits related to qualified affordable housing partnerships of $7.9 million . The tax effects of temporary differences that give rise to a significant portion of deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016 are presented below: ($ in thousands) December 31, 2017 2016 Federal State Foreign Total Federal State Foreign Total Deferred tax assets: Allowance for loan losses and OREO reserves $ 62,942 $ 28,857 $ 1,365 $ 93,164 $ 97,921 $ 27,792 $ 1,365 $ 127,078 Deferred compensation 11,483 5,220 — 16,703 20,093 5,731 — 25,824 Mortgage servicing assets 2,727 1,206 — 3,933 — — — — Unrealized losses on securities 10,730 5,354 — 16,084 16,253 5,315 — 21,568 State taxes 5,217 — — 5,217 1,333 — — 1,333 Interest income on nonaccrual loans 5,396 2,451 — 7,847 4,461 1,258 — 5,719 Other, net 744 5,481 97 6,322 2,053 5,269 97 7,419 Total gross deferred tax assets 99,239 48,569 1,462 149,270 142,114 45,365 1,462 188,941 Valuation allowance — (256 ) — (256 ) — (283 ) — (283 ) Total deferred tax assets, net of valuation allowance $ 99,239 $ 48,313 $ 1,462 $ 149,014 $ 142,114 $ 45,082 $ 1,462 $ 188,658 Deferred tax liabilities: Core deposit intangibles $ (4,408 ) $ (2,117 ) $ — $ (6,525 ) $ (9,768 ) $ (2,874 ) $ — $ (12,642 ) Investments in partnerships, tax credit and other investments, net (10,838 ) 7,025 — (3,813 ) (7,012 ) 5,318 — (1,694 ) Fixed assets (2,671 ) 914 — (1,757 ) (13,166 ) (3,360 ) — (16,526 ) Equipment financing (21,844 ) (3,760 ) — (25,604 ) (13,240 ) (1,866 ) — (15,106 ) FHLB stock dividends (1,285 ) (583 ) — (1,868 ) (1,189 ) (335 ) — (1,524 ) Acquired debt (1,273 ) (578 ) — (1,851 ) (2,210 ) (623 ) — (2,833 ) Acquired loans and OREO (2,252 ) (754 ) (406 ) (3,412 ) (5,407 ) (1,242 ) (406 ) (7,055 ) Prepaid expenses (4,142 ) (1,517 ) — (5,659 ) (1,088 ) (251 ) — (1,339 ) Other, net (510 ) (609 ) — (1,119 ) (121 ) (120 ) — (241 ) Total gross deferred tax liabilities $ (49,223 ) $ (1,979 ) $ (406 ) $ (51,608 ) $ (53,201 ) $ (5,353 ) $ (406 ) $ (58,960 ) Net deferred tax assets $ 50,016 $ 46,334 $ 1,056 $ 97,406 $ 88,913 $ 39,729 $ 1,056 $ 129,698 Deferred taxes of $1.5 million , $16.4 million and $7.5 million related to net unrealized gains or losses on available-for-sale investment securities are recorded as Other comprehensive income on the Consolidated Statement of Comprehensive Income for the years ended December 31, 2017 , 2016 and 2015 , respectively. The tax benefits of deductible temporary differences and tax carryforwards are recorded as an asset to the extent that management assesses the utilization of such temporary differences and carryforwards to be more likely than not. A valuation allowance is used, as needed, to reduce the deferred tax assets to the amount that is more likely than not to be realized. Evidence the Company considered includes the Company’s ability to generate future taxable income, implement tax-planning strategies, and utilize taxable income from prior carryback years (if such carryback is permitted under the applicable tax law), as well as future reversals of existing taxable temporary differences. The Company expects to have sufficient taxable income in future years to fully realize its deferred tax assets. Apart from this factor, the Company also performed an overall assessment by weighing all positive evidence against all negative evidence and concluded that it is more likely than not that all of the benefits of the deferred assets will be realized, with the exception of the deferred tax assets related to certain state NOL carryforwards. For states other than California, Georgia, Massachusetts and New York, because management believes that the state NOL carryforwards may not be fully utilized, a valuation allowance was recorded for such carryforwards. The Company believes that adequate provisions have been made for all income tax uncertainties consistent with the standards of ASC 740-10. As of December 31, 2017 and 2016 , the Company recorded net deferred tax assets of $97.4 million and $129.7 million , respectively, in Other assets on the Consolidated Balance Sheet. The following table summarizes the activities related to the Company’s unrecognized tax benefits as of the periods indicated: ($ in thousands) Year Ended December 31, 2017 2016 Beginning Balance $ 10,419 $ 7,125 Additions for tax positions related to prior years — 5,819 Settlements with taxing authorities — (2,525 ) Ending Balance $ 10,419 $ 10,419 As of December 31, 2017 and 2016 , the balance of the Company’s unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in the future was $8.2 million and $6.8 million , respectively. The Company recognizes interest and penalties, if applicable, related to the underpayment of income taxes as a component of Income tax expense on the Consolidated Statement of Income. The Company recorded a charge (reversal) of $450 thousand , $6.2 million and ($460) thousand of interest and penalties for the years ended December 31, 2017 , 2016 and 2015 , respectively. Total accrued interest and penalties included in Accrued expenses and other liabilities on the Consolidated Balance Sheet were $8.4 million and $7.9 million as of December 31, 2017 and 2016 , respectively. Beginning with its 2012 tax year, the Company has executed a Memorandum of Understanding (“MOU”) with the Internal Revenue Service (“IRS”) to voluntarily participate in the IRS Compliance Assurance Process (“CAP”). Under the CAP, the IRS audits the tax position of the Company, and identifies and resolves any tax issues that may arise throughout the tax year. The objective of the CAP is to resolve issues in a timely and contemporaneous manner and eliminate the need for a lengthy post-filing examination. Filed in September 2017, the 2016 tax return received a full acceptance of all tax matters from the IRS. The Company has executed a MOU with the IRS for the 2017 to 2018 tax years. For federal tax purposes, tax years from 2013 and beyond remain open. For California franchise tax purposes, tax years from 2009 and beyond remain open. The City of New York initiated an audit of the Company’s corporate income tax return for the 2012 to 2014 tax years in September 2016. The Company does not believe that the outcome of unresolved issues or claims in any tax jurisdiction is likely to be material to the Company’s financial position, cash flows or results of operations. The Company further believes that adequate provisions have been recorded for all income tax uncertainties. The Company does not anticipate that the total amount of unrecognized tax benefits will significantly change in the next twelve months. |
Commitments, Contingencies and
Commitments, Contingencies and Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Related Party Transactions | Commitments, Contingencies and Related Party Transactions Credit Extensions — In the normal course of business, the Company has various outstanding commitments to extend credit that 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 commitments, and outstanding commercial and standby letters of credit (“ SBLCs”). The following table presents the Company’s credit-related commitments as of the periods indicated: ($ in thousands) December 31, 2017 2016 Loan commitments $ 5,075,480 $ 5,077,869 Commercial letters of credit and SBLCs $ 1,655,897 $ 1,525,613 Loan commitments are agreements to lend to a customer provided that 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 a 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 customers fail to pay, the Company would, as applicable, liquidate the collateral and/or offset accounts. As of December 31, 2017 , total letters of credit, which amounted to $1.66 billion , were comprised of SBLCs of $1.60 billion and commercial letters of credit of $55.7 million . The Company uses the same credit underwriting criteria in extending 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 the customer’s credit. 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 reserves, and amounted to $12.7 million as of December 31, 2017 and $15.7 million as of December 31, 2016 . These amounts are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. Guarantees — The Company has sold or securitized loans with recourse in the ordinary course of business. The recourse component in the loans sold or securitized with recourse is considered a guarantee. As the guarantor, the Company is obligated to repurchase up to the recourse component of the loans when the loans default. As of December 31, 2017 and 2016 , the unpaid principal balance of total single-family and multifamily residential loans sold or securitized with recourse amounted to $113.7 million and $150.5 million , respectively. The maximum potential future payments up to the recourse component that the Company is obligated to repurchase amounted to $38.7 million and $46.4 million as of December 31, 2017 and 2016, respectively. The Company’s recourse reserve related to these guarantees is included in the allowance for unfunded credit reserves, totaled $214 thousand and $373 thousand as of December 31, 2017 and 2016 , respectively. The allowance for unfunded credit reserves 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 during 2017. Lease Commitments — The Company conducts a portion of its operations utilizing leased premises and equipment under operating leases. Rental expense amounted to $29.7 million , $24.1 million and $24.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Future minimum rental payments under non-cancellable operating leases are estimated as follows: Years Ending December 31, Amount ($ in thousands) 2018 $ 31,845 2019 27,005 2020 22,242 2021 18,635 2022 13,944 Thereafter 27,988 Total $ 141,659 Related Party Transactions — In the ordinary course of business, the Company may enter into transactions with various related parties. The Company’s related party transactions were not material for the years ended December 31, 2017 and 2016 . Litigation — The Company is a party to various legal actions arising in the 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 to the Consolidated Financial Statements. These commitments are payable on demand. As of December 31, 2017 and 2016 , these commitments were $169.2 million and $174.3 million , respectively. These commitments are included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Stock Compensation Plans Pursuant to the Company’s 2016 Stock Incentive Plan, as amended, the Company may issue stock options, RSAs, RSUs, stock appreciation rights, stock purchase warrants, phantom stock and dividend equivalents to certain employees and non-employee directors of the Company and its subsidiaries. An aggregate of 14.0 million shares of common stock were authorized under the 2016 Stock Incentive Plan, and the total number of shares available for grant was approximately 4.7 million as of December 31, 2017 . The following table presents a summary of the total share-based compensation expense and the related net tax benefit associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Stock compensation costs $ 24,657 $ 22,102 $ 16,502 Related net tax benefits for stock compensation plans $ 4,775 $ 1,055 $ 3,291 RSAs and RSUs — RSAs and RSUs are granted under the Company’s long-term incentive plan at no cost to the recipient. RSAs vest ratably over three years, cliff vest after three years, or vest at a rate of 50% each at the fourth and fifth year of continued employment from the date of the grant. RSUs vest ratably over three years or cliff vest after three or five years of continued employment from the date of the grant. RSAs and RSUs entitle the recipient to receive cash dividends equivalent to any dividends paid on the underlying common stock during the period the RSAs and RSUs are outstanding. The RSAs have nonforfeitable rights to dividends or dividend equivalents and, as such, are considered participating securities as discussed in Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements. During 2015 , all RSAs have vested and there were no outstanding RSAs as of December 31, 2017 , 2016 and 2015 . RSU dividends are accrued during the vesting period and are paid at the time of vesting. While a portion of RSUs are time-vesting awards, others vest subject to the attainment of specified performance goals and considerations of market conditions referred to as “Performance-based RSUs.” All RSUs are subject to forfeiture until vested. Performance-based RSUs are granted at the target amount of awards. Based on the Company’s attainment of specified performance goals and consideration of market conditions, the number of shares that vest can be adjusted to a minimum of zero and to a maximum of 200% of the target. The amount of performance-based RSUs that are eligible to vest is determined at the end of each performance period and is then added together to determine the total number of performance shares that are eligible to vest. Performance-based RSUs cliff vest three years from the date of grant. Compensation costs for the time-based awards are based on the quoted market price of the Company’s stock at the grant date. Compensation costs associated with performance-based RSUs are based on grant date fair value which considers both market and performance conditions, and is subject to subsequent adjustments based on changes in the Company’s stock price and the projected outcome of the performance criteria. Compensation costs of both time-based and performance-based awards are recognized on a straight-line basis from the grant date until the vesting date of each grant. Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . As a result of the adoption of this new guidance, all excess tax benefits and deficiencies on share-based payment awards were recognized within Income tax expense on the Consolidated Statement of Income for the year ended December 31, 2017 . For the year ended December 31, 2016 and 2015, these tax benefits were recorded as increases to Additional paid-in capital on the Consolidated Statement of Changes in Stockholders’ Equity. The Company continues to estimate the total number of awards expected to be forfeited in recognizing compensation expense. The following table presents a summary of the activity for the Company’s time-based and performance-based RSUs for the year ended December 31, 2017 based on the target amount of awards: 2017 Time-Based RSUs Performance-Based RSUs Shares Weighted- Average Grant Date Fair Value Shares Weighted- Outstanding at beginning of year 1,218,714 $ 35.92 410,746 $ 35.27 Granted 411,290 55.28 131,597 56.59 Vested (312,226 ) 36.55 (118,044 ) 36.85 Forfeited (151,198 ) 40.38 — — Outstanding at end of year 1,166,580 $ 42.00 424,299 $ 41.44 The weighted-average fair value of the time-based awards granted during the years ended December 31, 2017 , 2016 and 2015 was $55.28 , $31.86 and $40.36 , respectively. The weighted-average fair value of the performance-based awards granted during the years ended December 31, 2017 , 2016 and 2015 was $56.59 , $29.18 and $41.15 , respectively. The total fair value of time-based awards that vested during the years ended December 31, 2017 , 2016 , and 2015 was $17.2 million , $4.2 million and $9.1 million , respectively. The total fair value of performance-based awards that vested during the years ended December 31, 2017 , 2016 and 2015 was $13.0 million , $4.4 million and $5.8 million , respectively. As of December 31, 2017 , total unrecognized compensation costs related to time-based and performance-based RSUs amounted to $25.3 million and $14.1 million , respectively. These costs are expected to be recognized over a weighted-average period of 2.02 years and 1.85 years, respectively. Stock Options — The Company issues stock options to certain employees, officers and directors. Stock options are issued at the current market price on the date of grant. No options have been granted since 2011. The options had a four -year vesting period and contractual term of seven years. During 2015 , all outstanding stock options have been fully exercised and there were no outstanding options as of December 31, 2017 , 2016 and 2015 . The following table presents information related to stock options for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Cash proceeds from options exercised $ — $ — $ 874 Net tax benefit recognized from options exercised $ — $ — $ 320 Total intrinsic value of options exercised $ — $ — $ 760 Stock Purchase Plan — The 1998 Employee Stock Purchase Plan (the “Purchase Plan”) provides eligible employees of the Company the right to purchase shares of its common stock at a discount. Employees could purchase shares at 90% of the fair market price subject to an annual purchase limitation of $22,500 per employee. As of December 31, 2017 , the Purchase Plan qualifies as a non-compensatory plan under Section 423 of the Internal Revenue Code and, accordingly, no compensation expense has been recognized. 2,000,000 shares of the Company’s common stock have been made available-for-sale under the Purchase Plan. During the years ended December 31, 2017 and 2016 , 45,343 shares totaling $2.3 million and 67,198 shares totaling $2.1 million , respectively, have been sold to employees under the Purchase Plan. As of December 31, 2017 , there were 526,687 shares available under the Purchase Plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors a defined contribution plan, the East West Bank Employees 401(k) Savings Plan (the “Plan”), designed to provide retirement benefits financed by participants’ tax deferred contributions for the benefits of its employees. A Roth 401(k) investment option is also available to the participants, with contributions to be made on an after-tax basis. Under the terms of the Plan, eligible employees may elect to defer up to 80% of their compensation before taxes, up to the dollar limit imposed by the IRS for tax purposes. Participants can also designate a part or all of their contributions as Roth 401(k) contributions. Effective as of April 1, 2014, the Company matches 75% of the first 6% of the Plan participant’s deferred compensation. The Company’s contributions to the Plan are determined annually by the Board of Directors in accordance with the Plan requirements. Plan participants become vested in matching contributions received from the Plan sponsor at the rate of 20% per year for each full year of service, such that the Plan participants become 100% vested after five years of credited service. For the Plan years ended December 31, 2017 , 2016 and 2015 , the Company expensed $8.9 million , $8.4 million and $7.5 million , respectively. During 2002, the Company adopted a Supplemental Executive Retirement Plan (“SERP”) pursuant to which the Company will pay supplemental pension benefits to certain executive officers designated by the Board of Directors upon retirement based upon the officers’ years of service and compensation. The SERP meets the definition of a pension plan per ASC 715-30, Compensation — Retirement Benefits — Defined Benefit Plans — Pension. The SERP is an unfunded, non-qualified plan under which the participants have no rights beyond those of a general creditor of the Company, and there are no specific assets set aside by the Company in connection with the plan. As of December 31, 2017 , there were no additional benefits to be accrued for under the SERP. As of each of December 31, 2017 and 2016 , there was one executive remaining under the SERP. For the years ended December 31, 2017 , 2016 and 2015 , $331 thousand , $624 thousand and $619 thousand , respectively, of benefits were expensed and accrued for. The benefit obligation was $4.2 million and $4.1 million as of December 31, 2017 and 2016 , respectively. The following table presents a summary of expected SERP payments to be paid for the next five years and thereafter as of December 31, 2017 : Years Ending December 31, Amount ($ in thousands) 2018 $ 319 2019 329 2020 339 2021 349 2022 359 Thereafter 7,855 Total $ 9,550 |
Stockholders_ Equity and Earnin
Stockholders’ Equity and Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders’ Equity and Earnings Per Share | Stockholders’ Equity and Earnings Per Share Stock Repurchase Program — On July 17, 2013, the Company’s Board authorized a stock repurchase program to buy back up to $100.0 million of the Company’s common stock. The Company has not repurchased any shares under this program thereafter, including during 2017 and 2016 . Although this program has no stated expiration date, the Company does not intend to repurchase any shares pursuant to this program absent further action of the Company’s Board. Warrant — The Company acquired MetroCorp Bancshares, Inc., (“MetroCorp”) on January 17, 2014. Prior to the acquisition, MetroCorp had an outstanding warrant to purchase 771,429 shares of its common stock. Upon the acquisition, the rights of the warrant holder were converted into the right to acquire 230,282 shares of East West’s common stock until January 16, 2019. The warrant has no t been exercised as of December 31, 2017 . Quarterly Dividends — The Company declared quarterly cash dividends on its common stock of $0.20 per share for each quarter of 2017 , which is consistent with the quarterly cash dividends declared on its common stock for each quarter of 2016 and 2015 . Total cash dividends amounting to $117.0 million , $116.6 million and $116.2 million were declared to the Company’s common stockholders during the years ended December 31, 2017 , 2016 and 2015 , respectively. Earnings Per Share — The following table presents the EPS calculations for the years ended December 31, 2017 , 2016 and 2015 . The Company applied the two-class method in the computation of basic and diluted EPS in the periods when the RSAs were outstanding. The RSAs were fully vested as of December 31, 2015. For additional information regarding the Company’s EPS calculation, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements. With the adoption of ASU 2016-09 during the first quarter of 2017, the impact of excess tax benefits and deficiencies is no longer included in the calculation of diluted EPS. As a result of applying ASU 2016-09 in 2017, the Company recorded income tax benefits of $4.8 million or $0.03 per common share for the year ended December 31, 2017 related to the vesting of the RSUs. See Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements for additional information. ($ and shares in thousands, except per share data) Year Ended December 31, 2017 2016 2015 Basic Net income $ 505,624 $ 431,677 $ 384,677 Less: earnings allocated to participating securities — — (3 ) Net income allocated to common stockholders $ 505,624 $ 431,677 $ 384,674 Basic weighted-average number of shares outstanding 144,444 144,087 143,818 Basic EPS $ 3.50 $ 3.00 $ 2.67 Diluted Net income allocated to common stockholders $ 505,624 $ 431,677 $ 384,680 Basic weighted-average number of shares outstanding 144,444 144,087 143,818 Diluted potential common shares (1) 1,469 1,085 694 Diluted weighted-average number of shares outstanding 145,913 145,172 144,512 Diluted EPS $ 3.47 $ 2.97 $ 2.66 (1) Includes dilutive shares from RSUs and warrants for the years ended December 31, 2017 , 2016 and 2015 . For the years ended December 31, 2017 , 2016 and 2015 , 14 thousand , 8 thousand and 16 thousand weighted-average anti-dilutive shares from RSUs, respectively, were excluded from the diluted EPS computation. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
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 years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Available- for-Sale Investment Securities Foreign Currency Translation Adjustments (1) Total Available- Foreign Currency Translation Adjustments (1) Total Available- Foreign Currency Translation Adjustments (1) Total Beginning balance $ (28,772 ) $ (19,374 ) $ (48,146 ) $ (6,144 ) $ (8,797 ) $ (14,941 ) $ 4,237 $ — $ 4,237 Net unrealized gains (losses) arising during the period 2,531 12,753 15,284 (16,623 ) (10,577 ) (27,200 ) 13,012 (8,797 ) 4,215 Amounts reclassified from AOCI (4,657 ) — (4,657 ) (6,005 ) — (6,005 ) (23,393 ) — (23,393 ) Changes, net of taxes (2,126 ) 12,753 10,627 (22,628 ) (10,577 ) (33,205 ) (10,381 ) (8,797 ) (19,178 ) Ending balance $ (30,898 ) $ (6,621 ) $ (37,519 ) $ (28,772 ) $ (19,374 ) $ (48,146 ) $ (6,144 ) $ (8,797 ) $ (14,941 ) (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 years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Before - Tax Tax Net-of- Tax Before - Tax Net-of- Before - Tax Net-of- Available-for-sale investment securities: Net unrealized gains (losses) arising during the period $ 4,368 $ (1,837 ) $ 2,531 $ (28,681 ) $ 12,058 $ (16,623 ) $ 22,454 $ (9,442 ) $ 13,012 Net realized gains reclassified into net income (1) (8,037 ) 3,380 (4,657 ) (10,362 ) 4,357 (6,005 ) (40,367 ) 16,974 (23,393 ) Net change (3,669 ) 1,543 (2,126 ) (39,043 ) 16,415 (22,628 ) (17,913 ) 7,532 (10,381 ) Foreign currency translation adjustments: Net unrealized gains (losses) arising during period 12,753 — 12,753 (10,577 ) — (10,577 ) (8,797 ) — (8,797 ) Net change 12,753 — 12,753 (10,577 ) — (10,577 ) (8,797 ) — (8,797 ) Other comprehensive income (loss) $ 9,084 $ 1,543 $ 10,627 $ (49,620 ) $ 16,415 $ (33,205 ) $ (26,710 ) $ 7,532 $ (19,178 ) (1) For the years ended December 31, 2017 , 2016 and 2015 , pre-tax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. |
Regulatory Requirements and Mat
Regulatory Requirements and Matters | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Requirements and Matters | Regulatory Requirements and Matters Capital Adequacy — The Company and the Bank are subject to regulatory capital adequacy requirements administered by the federal banking agencies. The Bank is a member bank of the Federal Reserve System and the Federal Reserve Bank is the Bank’s primary regulator. Effective January 1, 2015, the Company and the Bank are required to comply with the Basel III Capital Rules adopted by the Federal Reserve Bank. The capital requirements under the Basel III framework, among other things, prescribed a new standardized approach for determining risk-weighted assets used in calculating capital ratios, increased minimum required capital ratios, and introduced a minimum Common Equity Tier 1 (“CET1”) capital ratio to ensure that banking organizations hold sufficient high quality regulatory capital that is available to absorb losses on a going-concern basis. The Basel III Capital Rule requires that banking organizations maintain a minimum CET1 capital ratio of 4.5% , a Tier 1 capital ratio of 6.0% , and a total capital ratio of 8.0% to be considered adequately capitalized. Failure to meet minimum capital requirements can result in certain mandatory actions and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s Consolidated Financial Statements. The Federal Deposit Insurance Corporation Improvement Act of 1991 requires that the federal regulatory agencies adopt regulations defining capital categories for banks: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. Consistent with the Basel III Capital Rules, the capital categories were augmented by including the CET1 capital measure, and revised risk-based capital measures to reflect the rule changes to the minimum risk-based capital ratios. As of December 31, 2017 and 2016 , the Company and the Bank were both categorized as well capitalized based on applicable U.S. regulatory capital ratio requirements in accordance with Basel III standardized approaches, as set forth in the table below. The Company believes that no changes in conditions or events have occurred since December 31, 2017 , which would result in changes that would cause the Company or the Bank to fall below the well capitalized level. The following table presents the regulatory capital information of the Company and the Bank as of December 31, 2017 and 2016 : Basel III December 31, 2017 December 31, 2016 ($ in thousands) Actual Minimum Requirement Well Capitalized Requirement Actual Minimum Requirement Well Capitalized Requirement Amount Ratio Ratio Ratio Amount Ratio Ratio Ratio Total capital (to risk-weighted assets) Company $ 3,838,516 12.9 % 8.0 % 10.0 % $ 3,400,642 12.4 % 8.0 % 10.0 % East West Bank $ 3,679,261 12.4 % 8.0 % 10.0 % $ 3,371,885 12.3 % 8.0 % 10.0 % Tier 1 capital (to risk-weighted assets) Company $ 3,390,070 11.4 % 6.0 % 8.0 % $ 2,976,002 10.9 % 6.0 % 8.0 % East West Bank $ 3,378,815 11.4 % 6.0 % 8.0 % $ 3,095,245 11.3 % 6.0 % 8.0 % CET1 capital (to risk-weighted assets) Company $ 3,390,070 11.4 % 4.5 % 6.5 % $ 2,976,002 10.9 % 4.5 % 6.5 % East West Bank $ 3,378,815 11.4 % 4.5 % 6.5 % $ 3,095,245 11.3 % 4.5 % 6.5 % Tier 1 leverage capital (to adjusted average assets) Company $ 3,390,070 9.2 % 4.0 % 5.0 % $ 2,976,002 8.7 % 4.0 % 5.0 % East West Bank $ 3,378,815 9.2 % 4.0 % 5.0 % $ 3,095,245 9.1 % 4.0 % 5.0 % Risk-weighted assets Company $ 29,669,251 N/A N/A N/A $ 27,357,753 N/A N/A N/A East West Bank $ 29,643,711 N/A N/A N/A $ 27,310,540 N/A N/A N/A Adjusted quarterly average total assets (1) Company $ 37,307,975 N/A N/A N/A $ 34,209,827 N/A N/A N/A East West Bank $ 37,283,273 N/A N/A N/A $ 34,163,667 N/A N/A N/A (1) Reflects adjusted average total assets for the years ended December 31, 2017 and 2016 . N/A — Not applicable. Reserve Requirement — The Bank is required to maintain a percentage of its deposits as reserves at the Federal Reserve Bank of San Francisco (the “FRB”). The daily average reserve requirement was approximately $699.4 million and $503.8 million as of December 31, 2017 and 2016 , respectively. Regulatory Matters — The Bank entered into a Written Agreement, dated November 9, 2015, with the Federal Reserve Bank of San Francisco (the “Written Agreement”), to correct less than satisfactory Bank Secrecy Act (“BSA”) and Anti-Money Laundering (“AML”) programs detailed in a joint examination by the FRB and the California Department of Business Oversight (“DBO”). The Bank also entered into a related MOU with the DBO in 2015. The Written Agreement, among other things, requires the Bank to enhance the compliance programs related to the BSA and AML and Office of Foreign Assets Control (“OFAC”) laws, rules and regulations and retain an independent firm to conduct a review of the account and transaction activity covering a six-month period to determine whether any suspicious activity was properly identified and reported in accordance with applicable regulatory requirements. The Company believes that it is making progress in executing the compliance plans and programs required by the Written Agreement and MOU, although there can be no assurances that our plans and progress will be found to be satisfactory by our regulators. To date, the Company has added significant resources to comply with the Written Agreement and MOU, and to address any additional findings or recommendations by the regulators. If additional compliance issues are identified or if the regulators determine that the Bank has not satisfactorily complied with the terms of the Written Agreement, the regulators could take further actions with respect to the Bank and, if such further actions were taken, such actions could have a material adverse effect on the Bank. The operating and other conditions in the BSA and AML program and the auditing and oversight of the program that led to the Written Agreement and MOU could also lead to an increased risk of being subject to additional actions by the FRB and DBO, an increased risk of future examinations that may downgrade the regulatory ratings of the Bank, and an increased risk investigations by other government agencies may result in fines, penalties, increased expenses or restrictions on operations. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company utilizes an internal reporting system to measure the performance of various operating segments within the Bank and the Company. The Company has identified three operating segments for purposes of management reporting: (1) Retail Banking; (2) Commercial Banking; and (3) Other. These three business segments meet the criteria of an operating segment: the segment engages in business activities from which it earns revenues and incurs expenses; its operating results are regularly reviewed by the Company’s chief operating decision maker to render decisions about resources to be allocated to the segments and assess its performance; and discrete financial information is available. The Retail Banking segment focuses primarily on deposit operations through the Bank’s branch network. The Commercial Banking segment, primarily generates commercial loans and deposits through domestic commercial lending offices in the U.S. and foreign commercial lending offices in China and Hong Kong. Furthermore, the Commercial Banking segment offers a wide variety of international finance, trade finance, and cash management services and products. The remaining centralized functions, including 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. Operating segment results are based on the Company’s internal management reporting process, which reflects assignments and allocations of certain operating and administrative costs and the provision for credit losses. Net interest income is allocated based on the Company’s internal funds transfer pricing system, which assigns a cost of funds or a credit for funds to assets or liabilities based on their type, maturity or repricing characteristics. Noninterest income and noninterest expense directly attributable to a segment is assigned to the related business segment. Indirect costs, including technology related costs and corporate overhead, are allocated based on that segment’s estimated usage using factors, including, but not limited to, full-time equivalent employees, net interest margin, and loan and deposit volume. The provision for credit losses is based on charge-offs for the period as well as an allocation of the remaining consolidated provision expense based on the average loan balances for each segment during the period. The Company’s internal funds transfer pricing 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 and product net interest margins. The Company’s internal funds transfer pricing assumptions and methodologies are reviewed at least annually to ensure that the process is reflective of current market conditions. Changes in the Company’s management structure and allocation or reporting methodologies may result in changes in the measurement of operating segment results. Results for prior year periods are generally reclassified for comparability for changes in management structure and allocation or reporting methodologies unless it is deemed not practicable to do so. The Company’s internal reporting process utilizes a full-allocation methodology. Under this methodology, corporate expenses and expenses of the Other segment, except certain Treasury-related transactions and an insignificant amount of other residual unallocated expenses, are allocated to the Retail Banking and Commercial Banking segments. In previously reporting segment income after taxes, the Company applied the consolidated effective tax rate to all of its business segments, and allocated the amortization of tax credit and other investments from the Other segment to the Retail Banking and Commercial Banking segments. The Company has recently changed its methodology to measure the after-tax income of the Retail Banking and Commercial Banking segments using the applicable statutory tax rates, with the Other segment receiving the residual tax expense or benefit to arrive at the consolidated effective tax rate. With this change, the amortization of tax credit and other investments which had previously been allocated to each segment is now allocated to the Other segment only, along with the tax benefit. The Company has also allocated indirect costs to noninterest expense by segment for management reporting. In addition, operating segment profitability, which had previously been presented on an income before income tax basis only, has now been revised to be presented both on income before and income after tax basis. The following tables present the operating results and other key financial measures for the individual operating segments as of and for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Retail Commercial Other Total Year ended December 31, 2017: Interest income $ 364,906 $ 844,303 $ 115,910 $ 1,325,119 Charge for funds used (142,619 ) (326,902 ) (64,256 ) (533,777 ) Interest spread on funds used 222,287 517,401 51,654 791,342 Interest expense (76,770 ) (24,603 ) (38,677 ) (140,050 ) Credit on funds provided 445,304 61,019 27,454 533,777 Interest spread on funds provided 368,534 36,416 (11,223 ) 393,727 Net interest income before provision for credit losses $ 590,821 $ 553,817 $ 40,431 $ 1,185,069 Provision for credit losses $ 1,812 $ 44,454 $ — $ 46,266 Noninterest income $ 55,093 $ 110,104 $ 93,209 $ 258,406 Noninterest expense $ 320,287 $ 193,176 $ 148,646 $ 662,109 Segment income (loss) before income taxes $ 323,815 $ 426,291 $ (15,006 ) $ 735,100 Segment income after income taxes $ 190,404 $ 251,834 $ 63,386 $ 505,624 As of December 31, 2017: Segment assets $ 9,316,587 $ 21,431,472 $ 6,402,190 $ 37,150,249 ($ in thousands) Retail Commercial Other Total Year ended December 31, 2016: Interest income $ 315,146 $ 726,013 $ 96,322 $ 1,137,481 Charge for funds used (95,970 ) (216,849 ) (47,646 ) (360,465 ) Interest spread on funds used 219,176 509,164 48,676 777,016 Interest expense (60,180 ) (16,892 ) (27,771 ) (104,843 ) Credit on funds provided 300,446 38,636 21,383 360,465 Interest spread on funds provided 240,266 21,744 (6,388 ) 255,622 Net interest income before (reversal of) provision for credit losses $ 459,442 $ 530,908 $ 42,288 $ 1,032,638 (Reversal of) provision for credit losses $ (4,356 ) $ 31,835 $ — $ 27,479 Noninterest income $ 51,435 $ 96,010 $ 35,473 $ 182,918 Noninterest expense $ 306,570 $ 172,259 $ 137,060 $ 615,889 Segment income (loss) before income taxes $ 208,663 $ 422,824 $ (59,299 ) $ 572,188 Segment income after income taxes $ 122,256 $ 248,474 $ 60,947 $ 431,677 As of December 31, 2016: Segment assets $ 7,821,610 $ 19,128,510 $ 7,838,720 $ 34,788,840 ($ in thousands) Retail Commercial Other Total Year ended December 31, 2015: Interest income $ 331,755 $ 654,966 $ 67,094 $ 1,053,815 Charge for funds used (86,769 ) (163,601 ) (66,773 ) (317,143 ) Interest spread on funds used 244,986 491,365 321 736,672 Interest expense (53,088 ) (18,025 ) (32,263 ) (103,376 ) Credit on funds provided 261,117 36,251 19,775 317,143 Interest spread on funds provided 208,029 18,226 (12,488 ) 213,767 Net interest income (loss) before (reversal of) provision for credit losses $ 453,015 $ 509,591 $ (12,167 ) $ 950,439 (Reversal of) provision for credit losses $ (5,835 ) $ 20,052 $ — $ 14,217 Noninterest income $ 46,265 $ 71,867 $ 65,251 $ 183,383 Noninterest expense $ 276,144 $ 159,987 $ 104,753 $ 540,884 Segment income (loss) before income taxes $ 228,971 $ 401,419 $ (51,669 ) $ 578,721 Segment income after income taxes $ 134,383 $ 236,459 $ 13,835 $ 384,677 As of December 31, 2015: Segment assets $ 7,095,737 $ 17,923,319 $ 7,331,866 $ 32,350,922 |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | Parent Company Condensed Financial Statements The principal sources of East West’s income (on a Parent Company-only basis) are dividends from the Bank. In addition to dividend restrictions set forth in statutes and regulations, the banking agencies have the authority to prohibit or to limit the Bank from paying dividends, if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the Bank. The Bank declared $255.0 million and $100.0 million of dividends to East West during the years ended December 31, 2017 and 2016 , respectively. The Bank did no t declare any dividends to East West during the year ended December 31, 2015 . For information on the statutory and regulatory limitations on the ability of the Company to pay dividends to its stockholders and on the Bank to pay dividends to East West, see Item 1. Business — Supervision and Regulation — Dividends and Other Transfers of Funds. The following tables present the Parent Company-only condensed financial statements: CONDENSED BALANCE SHEET ($ in thousands, except shares) December 31, 2017 2016 ASSETS Cash placed with subsidiary bank $ 159,566 $ 39,264 Available-for-sale investment securities, at fair value — 9,338 Investments in subsidiaries: Bank 3,830,696 3,546,984 Nonbank 3,664 5,675 Investments in tax credit investments, net 25,511 32,245 Other assets 7,062 4,812 TOTAL $ 4,026,499 $ 3,638,318 LIABILITIES Long-term debt $ 171,577 $ 186,327 Other liabilities 12,971 24,250 Total liabilities 184,548 210,577 STOCKHOLDERS’ EQUITY Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued in 2017 and 2016, respectively 165 164 Additional paid-in capital 1,755,330 1,727,434 Retained earnings 2,576,302 2,187,676 Treasury stock, at cost — 20,671,710 shares in 2017 and 20,436,621 shares in 2016 (452,327 ) (439,387 ) Accumulated other comprehensive loss, net of tax (37,519 ) (48,146 ) Total stockholders’ equity 3,841,951 3,427,741 TOTAL $ 4,026,499 $ 3,638,318 CONDENSED STATEMENT OF INCOME ($ in thousands) Year Ended December 31, 2017 2016 2015 Dividends from subsidiaries: Bank $ 255,000 $ 100,000 $ — Nonbank 4,118 107 88 Other income 721 610 625 Total income 259,839 100,717 713 Interest expense 5,429 5,017 4,636 Compensation and employee benefits 5,065 5,001 5,350 Amortization of tax credit and other investments 5,908 13,851 22,466 Other expense 1,257 1,218 2,399 Total expense 17,659 25,087 34,851 Income (loss) before income tax benefit and equity in undistributed income of subsidiaries 242,180 75,630 (34,138 ) Income tax benefit 18,182 26,041 30,849 Undistributed earnings of subsidiaries, primarily bank 245,262 330,006 387,966 Net income $ 505,624 $ 431,677 $ 384,677 CONDENSED STATEMENT OF CASH FLOWS ($ in thousands) Year Ended December 31, 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 505,624 $ 431,677 $ 384,677 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiaries, principally bank (245,262 ) (330,006 ) (387,966 ) Amortization expenses 6,158 14,094 22,870 Deferred income tax expense 940 6,349 17,555 Gains on sales of available-for-sale investment securities (326 ) — (20 ) Net change in other assets (3,341 ) 39,929 (42,292 ) Net change in other liabilities (560 ) 794 (15,887 ) Net cash provided by (used in) operating activities 263,233 162,837 (21,063 ) CASH FLOWS FROM INVESTING ACTIVITIES Net increase in investments in tax credit and other investments, net (9,777 ) (6,554 ) (35,633 ) Purchases of available-for-sale investment securities (9,000 ) — — Proceeds from the sale of available-for-sale investment securities 18,326 — 20 Net cash used in investing activities (451 ) (6,554 ) (35,613 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of common stock pursuant to various stock compensation plans and agreements 2,280 2,081 2,835 Payments for: Repayment of long-term debt (15,000 ) (20,000 ) (20,000 ) Repurchase of vested shares due to employee tax liability (12,940 ) (3,225 ) (5,964 ) Cash dividends on common stock (116,820 ) (115,828 ) (115,641 ) Other net financing activities — 1,055 3,291 Net cash used in financing activities (142,480 ) (135,917 ) (135,479 ) Net increase (decrease) in cash and cash equivalents 120,302 20,366 (192,155 ) Cash and cash equivalents, beginning of year 39,264 18,898 211,053 Cash and cash equivalents, end of year $ 159,566 $ 39,264 $ 18,898 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Quarters Ended ($ and shares in thousands, except per share data) December 31, September 30, June 30, March 31, 2017 Interest and dividend income $ 359,765 $ 339,910 $ 322,775 $ 302,669 Interest expense 40,064 36,755 32,684 30,547 Net interest income before provision for credit losses 319,701 303,155 290,091 272,122 Provision for credit losses 15,517 12,996 10,685 7,068 Net interest income after provision for credit losses 304,184 290,159 279,406 265,054 Noninterest income 45,359 49,624 47,400 116,023 Noninterest expense 175,416 164,499 169,121 153,073 Income before income taxes 174,127 175,284 157,685 228,004 Income tax expense 89,229 42,624 39,355 58,268 Net income $ 84,898 $ 132,660 $ 118,330 $ 169,736 EPS - Basic $ 0.59 $ 0.92 $ 0.82 $ 1.18 - Diluted $ 0.58 $ 0.91 $ 0.81 $ 1.16 Weighted-average number of shares outstanding - Basic 144,542 144,498 144,485 144,249 - Diluted 146,030 145,882 145,740 145,732 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 Quarters Ended ($ and shares in thousands, except per share data) December 31, September 30, June 30, March 31, 2016 Interest and dividend income $ 302,127 $ 280,317 $ 278,865 $ 276,172 Interest expense 29,425 26,169 25,281 23,968 Net interest income before provision for credit losses 272,702 254,148 253,584 252,204 Provision for credit losses 10,461 9,525 6,053 1,440 Net interest income after provision for credit losses 262,241 244,623 247,531 250,764 Noninterest income 48,800 49,341 44,264 40,513 Noninterest expense 149,904 170,500 148,879 146,606 Income before income taxes 161,137 123,464 142,916 144,671 Income tax expense 50,403 13,321 39,632 37,155 Net income $ 110,734 $ 110,143 $ 103,284 $ 107,516 EPS - Basic $ 0.77 $ 0.76 $ 0.72 $ 0.75 - Diluted $ 0.76 $ 0.76 $ 0.71 $ 0.74 Weighted-average number of shares outstanding - Basic 144,166 144,122 144,101 143,958 - Diluted 145,428 145,238 145,078 144,803 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 25, 2018 , the Company’s Board of Directors declared first quarter 2018 cash dividends for the Company’s common stock. The common stock cash dividend of $0.20 per share was paid on February 15, 2018 to stockholders of record as of February 5, 2018 . |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accounting and reporting policies of the Company conform with United States Generally Accepted Accounting Principles (“U.S. GAAP”), applicable guidelines prescribed by regulatory authorities and general practices in the banking industry. The preparation of the Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Financial Statements, income and expenses during the reporting period, and the related disclosures. Actual results could differ from those estimates. Certain items on the Consolidated Financial Statements and notes for the prior years have been reclassified to conform to the 2017 presentation. |
Principles of Consolidation | Principles of Consolidation — The Consolidated Financial Statements include the accounts of East West and its subsidiaries, as well as East West Bank. Intercompany transactions and accounts have been eliminated in consolidation. 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”) 810, Consolidation, the Trusts are not included on the Consolidated Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank and other financial institutions, and federal funds sold with original maturities up to three months. |
Interest-bearing Deposits with Banks | Interest-bearing Deposits with Banks — Interest-bearing deposits with banks include cash placed with other banks with original maturities greater than three months and less than one year. |
Resale Agreements and Repurchase Agreements | Resale Agreements and Repurchase Agreements — Resale agreements are recorded at the balances at which the securities are acquired. The Company’s policy is to monitor the market values of the underlying securities collateralizing the related receivable of the resale agreements, including accrued interest, and obtain collateral from or return collateral pledged to counterparties when appropriate. Repurchase agreements are accounted for as collateralized financing transactions and recorded at the balances at which the securities are sold. The Company may have to provide additional collateral to the counterparties, or may receive collateral returned from counterparties, for the repurchase agreements when appropriate. The Company has elected to offset resale and repurchase transactions with the same counterparty on the Consolidated Balance Sheet when it has a legally enforceable master netting agreement and when the transactions are eligible for netting under ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . |
Securities | Securities — The Company’s securities include various debt and marketable equity securities, and restricted equity securities. The Company classifies its debt and marketable equity securities as available-for-sale or held-to-maturity investment securities based on management’s intention on the date of the purchase. Predominantly all of the Company’s investment securities are held in connection with its asset-liability management objectives. Available-for-sale investment securities are carried at fair value on the Consolidated Balance Sheet. Unrealized gains and losses, net of applicable income taxes, are reported in other comprehensive income. The specific identification method is used in computing realized gains and losses on available-for-sale investment securities that were sold. Held-to-maturity debt securities that management has the intent and ability to hold until maturity are carried at amortized cost. Amortization of premiums and accretion of discounts on investment securities are recorded as yield adjustments on such securities using the effective interest method. For each reporting period, all securities that are in an unrealized loss position are analyzed as part of the Company’s ongoing assessment of other-than-temporary impairment (“OTTI”). In determining whether an impairment is other-than-temporary, the Company considers the severity and duration of the decline in fair value, the length of time expected for recovery, the financial condition of the issuer, changes in the securities’ ratings and other qualitative factors, as well as whether the Company either plans to sell the security or it is more likely than not that it will be required to sell the security before recovery of the amortized cost. When the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery of the amortized cost, the credit component of an OTTI of a debt security is recognized as OTTI loss on the Consolidated Statement of Income and the non-credit component is recognized in other comprehensive income. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security prior to recovery of the amortized cost, the full amount of the impairment loss is recognized as OTTI loss on the Consolidated Statement of Income. If there is an other-than-temporary decline in the fair value of any individual available-for-sale marketable equity security, the cost basis is reduced and the Company reclassifies the associated net unrealized loss out of other comprehensive income with a corresponding charge to the Consolidated Statement of Income. |
Restricted Equity Securities | Restricted equity securities include Federal Reserve Bank and FHLB stocks. The Federal Reserve Bank stock is required by law to be held as a condition of membership in the Federal Reserve System. The FHLB stock is required to obtain advances from FHLB. They are carried at cost as they do not have a readily determinable fair value. |
Loans Held-for-Sale | Loans Held-for-Sale — Loans held-for-sale are carried at lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the foreseeable future, subject to periodic review under the Company’s management evaluation processes, including asset/liability management and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from the loans held-for-investment portfolio to the loans held-for-sale portfolio at the lower of cost or fair value. Any write-down in the carrying amount of the loan at the date of transfer is recorded as a charge-off. Loan origination fees on loans held-for-sale, net of certain costs in processing and closing the loans, are deferred until the time of sale and are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. If the loan or a portion of the loan cannot be sold, it is subsequently transferred back to the loans held-for-investment portfolio from the loans held-for-sale portfolio at lower of cost or fair value on the transfer date. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. Loans held-for-sale are carried at the lower of cost or fair value. When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is the Company’s intent to hold these loans to maturity or for the “foreseeable future,” subject to periodic reviews under the Company’s management evaluation processes, including asset/liability management and credit risk management. When the Company subsequently changes its intent to hold certain loans, the loans are transferred from held-for-investment to held-for-sale at the lower of cost or fair value. From time to time, the Company purchases and sells loans in the secondary market. Certain purchased loans are transferred from held-for-investment to held-for-sale; and write-downs to allowance for loan losses are recorded, when appropriate. |
Loans Held-for-Investment | Loans Held-for-Investment — Loans receivable that the Company has the intent and ability to hold for the foreseeable future or until maturity are stated at their outstanding principal, reduced by an allowance for loan losses and net of deferred loan fees or costs on originated loans, unearned income, and unamortized premiums or discounts on purchased loans. Nonrefundable fees and direct costs associated with the origination or purchase of loans are deferred and netted against outstanding loan balances. The deferred net loan fees and costs are recognized in interest income as an adjustment to yield over the loan term using the effective interest method or straight-line method. Discounts or premiums on purchased loans are accreted or amortized to interest income using the effective interest method or straight-line method over the remaining period to contractual maturity. Interest on loans is calculated using the simple-interest method on daily balances of the principal amounts outstanding. Generally, loans are placed on nonaccrual status when they become 90 days past due. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. Loans are also placed on nonaccrual status when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes uncertain, regardless of the length of past due status. Once a loan is placed on nonaccrual status, interest accrual is discontinued and all unpaid accrued interest is reversed against interest income. Interest payments received on nonaccrual loans are reflected as a reduction of principal and not as interest income. A loan is returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan. |
Troubled Debt Restructurings | Troubled Debt Restructurings — A loan is classified as a troubled debt restructuring (“TDR”) when the Company, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date with a stated interest rate lower than the current market rate or note splits referred to as A/B note restructurings. Loans with contractual terms that have been modified as a TDR and are current at the time of restructuring may remain on accrual status if there is demonstrated performance prior to the restructuring and payment in full under the restructured terms is expected. Otherwise, the loans are placed on nonaccrual status and are reported as nonperforming, until the borrower demonstrates a sustained period of performance, generally six months, and the ability to repay the loan according to the contractual terms. If accruing TDRs cease to perform in accordance with their modified contractual terms, they are placed on nonaccrual status and reported as nonperforming TDRs. TDRs are included in the impaired loan quarterly valuation allowance process. Refer to Impaired Loans below for a complete discussion. |
Impaired Loans | Impaired Loans — The Company’s loans are grouped into heterogeneous and homogeneous (mostly consumer loans) categories. Impaired loans are identified and evaluated for impairment on an individual basis. The Company’s impaired loans include predominantly non-purchased credit impaired (“non-PCI”) loans held-for-investment on nonaccrual status and any non-PCI loans modified as a TDR, designated either as performing or nonperforming. A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all scheduled payments of principal or interest due in accordance with the original contractual terms of the loan agreement. Factors considered by management in determining and measuring loan impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of and the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as appropriate, at the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent, less cost to sell. When the value of an impaired loan is less than the recorded investment and the loan is classified as nonperforming and uncollectible, the deficiency is charged off against the allowance for loan losses. If the loan is a performing TDR, the deficiency is included in the specific reserves of the allowance for loan losses, as appropriate. Payments received on impaired loans classified as nonperforming are not recognized in interest income, but are applied as a reduction to the principal outstanding. |
Allowance for Credit Losses | Allowance for Credit Losses — The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded credit reserves. Unfunded credit reserves include reserves provided for unfunded lending commitments, unissued standby letters of credit and recourse obligations for loans sold. The allowance for loan losses is established as management’s estimate of probable losses inherent in the Company’s lending activities. The allowance for loan losses is increased by the provision for loan losses and decreased by net charge-offs when management believes the uncollectability of a loan is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated monthly by management based on management’s periodic review of the collectability of the loans. The allowance for loan losses on non-PCI loans consists of specific reserves and general reserves. The Company’s non-PCI loans fall into heterogeneous and homogeneous categories. Impaired loans are subject to specific reserves. Non-impaired loans are evaluated as part of the general reserves. General reserves are calculated by utilizing both quantitative and qualitative factors. There are different qualitative risks for the loans in each portfolio segment. Predominant risk characteristics of the commercial real estate (“CRE”) and multifamily residential loans, as well as single-family residential loans include the collateral and geographic locations of the properties collateralizing the loans. Predominant risk characteristics of the commercial and industrial (“C&I”) loans include the global cash flows of the borrowers and guarantors, as well as the economic and market conditions. Predominant risk characteristics of home equity lines of credit (“HELOCs”) include the real estate collateral securing the loans. The Company also maintains an allowance for loan losses on purchased credit impaired (“PCI”) loans when there is deterioration in credit quality subsequent to acquisition. Based on the Company’s estimates of cash flows expected to be collected, the Company establishes an allowance for the PCI loans, with a charge to Provision for credit losses on the Consolidated Statement of Income. When determined uncollectible, it is the Company’s policy to promptly charge off the difference of the outstanding loan balance and the fair value of the collateral or the discounted value of expected cash flows. Recoveries are recorded when payment is received on loans that were previously charged off through the allowance for loan losses. Allocation of a portion of the allowance to one segment of the loan portfolio does not preclude its availability to absorb losses in other segments. The allowance for unfunded credit reserves is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities, including an assessment of the probability of commitment usage, credit risk factors for loans outstanding, and the terms and expiration dates of the unfunded credit facilities. The allowance for loan losses is reported separately on the Consolidated Balance Sheet, whereas the allowance for unfunded credit reserves is included in Accrued expenses and other liabilities on the Consolidated Balance Sheet. The Provision for credit losses is reported on the Consolidated Statement of Income. Credit Quality Indicators All loans are subject to the Company’s internal and external credit review and monitoring. Loans are risk rated based on an analysis of the current state of the borrower’s credit quality. The analysis of credit quality includes a review of all repayment sources, the borrower’s current payment performance/delinquency, current financial and liquidity status and all other relevant information. For single-family residential loans, payment performance/delinquency is the driving indicator for the risk ratings. Risk ratings are the overall credit quality indicator for the Company and the credit quality indicator utilized for estimating the appropriate allowance for loan losses. The Company utilizes a risk rating system, which classifies loans within the following categories: Pass, Watch, Special Mention, Substandard, Doubtful and Loss. The risk ratings reflect the relative strength of the repayment sources. Pass and Watch loans are loans that have sufficient sources of repayment in order to repay the loan in full in accordance with all terms and conditions. Special Mention loans are loans that have potential weaknesses that warrant closer attention by management. Special Mention is a transitory grade. If potential weaknesses are resolved, the loan is upgraded to a Pass or Watch grade. If negative trends in the borrower’s financial status or other information indicate that the repayment sources may become inadequate, the loan is downgraded to a Substandard grade. Substandard loans are loans that have well-defined weaknesses that jeopardize the full and timely repayment of the loan. Substandard loans have a distinct possibility of loss, if the deficiencies are not corrected. Additionally, when management has assessed a potential for loss but a distinct possibility of loss is not recognizable, the loan is still classified as Substandard. Doubtful loans have insufficient sources of repayment and a high probability of loss. Loss loans are loans that are uncollectible and of such little value that they are no longer considered bankable assets. These internal risk ratings are reviewed routinely and adjusted based on changes in the borrowers’ financial status and the loans’ collectability. |
Purchased Credit Impaired Loans | Purchased Credit Impaired Loans — Acquired loans are recorded at fair value as of acquisition date in accordance with ASC 805, Business Combinations . A purchased loan is deemed to be credit impaired when there is evidence of credit deterioration since its origination and it is probable at the acquisition date that the Company would be unable to collect all contractually required payments and is accounted for under ASC 310-30, Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality . Under ASC 310-30, loans are recorded at fair value at acquisition date, factoring in credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for loan losses is not carried over or recorded as of the acquisition date. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. The excess of total contractual cash flows over the cash flows expected to be received at origination is deemed the “nonaccretable difference.” In estimating the nonaccretable difference, the Company (a) calculates the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (b) estimates the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The cash flows expected over the life of the pools are estimated by an internal cash flows model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions such as cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. Subsequent to the acquisition date, any increases in expected cash flows over the expected cash flows at purchase date in excess of fair value that are significant and probable are adjusted through the accretable yield on a prospective basis. Any subsequent decreases in expected cash flows over the expected cash flows at purchase date that are probable are recognized by a charge to the provision for loan losses. Any disposals of loans, including sales of loans, payments in full or foreclosures, result in the removal of the loan from the ASC 310-30 portfolio at the carrying amount. Purchased Credit Impaired Loans At the date of acquisition, PCI loans are pooled and accounted for at fair value, which represents the discounted value of the expected cash flows of the loan portfolio. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flows expectation. The cash flows expected over the life of the pools are estimated by an internal cash flows model that projects cash flows and calculates the carrying values of the pools, book yields, effective interest income and impairment, if any, based on pool level events. Assumptions as to cumulative loss rates, loss curves and prepayment speeds are utilized to calculate the expected cash flows. The amount of expected cash flows over the initial investment in the loan represents the “accretable yield,” which is recognized as interest income on a level yield basis over the life of the loan. Prepayments affect the estimated life of PCI loans, which may change the amount of interest income, and possibly principal, expected to be collected. The excess of total contractual cash flows over the cash flows expected to be received at origination is deemed to be the “nonaccretable difference.” |
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net | Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net — The Company records the investments in qualified affordable housing partnerships 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 on the Consolidated Statement of Income as a component of Income tax expense. The Company records investments in tax credit and other investments using either the equity method or cost method of accounting. The tax credits are recognized on the Consolidated Financial Statements to the extent they are utilized on the Company’s income tax returns in the year the credit arises under the flow-through method of accounting. The investments are reviewed for impairment on an annual basis or on an interim basis, if an event occurs that would trigger potential impairment. 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. |
Premises and Equipment, Net | Premises and Equipment, Net — The Company’s premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed based on the straight-line method over the estimated useful lives of the various classes of assets. The ranges of estimated useful lives for the principal classes of assets are as follows: Premises and Equipment Useful Lives Buildings and building improvements 25 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements Term of lease or useful life, whichever is shorter The Company reviews its long-lived assets for impairment annually, or when events or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. An asset is considered impaired when the fair value, which is the expected undiscounted cash flows over the remaining useful life, is less than the net book value. The excess of the net book value over its fair value is charged as impairment loss to noninterest expense. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets — Goodwill represents the excess of the purchase price over the fair value of net assets acquired in an acquisition. Goodwill is not amortized and is reviewed for impairment on an annual basis or on an interim basis, if an event occurs or circumstances change that could reduce the fair value of a reporting unit below its carrying value. Core deposit intangibles, which represent the intangible value of depositor relationships resulting from deposit liabilities assumed in acquisitions, are amortized over the projected useful lives of the deposits, which is typically 7 to 15 years. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment on goodwill and core deposit intangibles is recognized by writing down the asset as a charge to noninterest expense to the extent that the carrying value exceeds the estimated fair value. Goodwill is tested for impairment on an annual basis as of December 31 st , 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 amount. Core deposit intangibles represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions and are included in Other assets on the Consolidated Balance Sheet. These intangibles are tested for impairment on an annual basis, or more frequently as events occur, or as current circumstances and conditions warrant. The Company performed its annual impairment analysis as of December 31, 2017 to determine whether and to what extent, if any, recorded goodwill was impaired. The Company used a combined income and market approach to determine the fair value of the reporting units. Under the income approach, the Company prepared a net income projection for the next three years plus a terminal growth rate that was used to calculate the discounted cash flows and the present value of the reporting units. Under the market approach, the fair value was calculated using the current fair value of comparable peer banks of similar size and focus. The market capitalizations and multiples of these peer banks were used to calculate the market price of the Company and each reporting unit. The fair value was also subject to a control premium adjustment, which represents the cost savings that a purchaser of the reporting units could achieve by eliminating duplicative costs. Under the combined income and market approach, the fair value from each approach was weighted based on management’s judgment to determine the fair value. |
Derivatives | Derivatives — As part of its asset and liability management strategy, the Company uses derivative financial instruments to mitigate exposure to interest rate and foreign currency risks. Derivatives utilized by the Company include swaps, forwards and option contracts. All derivative instruments are included in Other assets or Accrued Expense and other liabilities on the Consolidated Balance Sheet at fair value. The related cash flows are recognized on the Cash flows from operating activities section on the Consolidated Statement of Cash Flows. The Company uses its accounting hedges based on the exposure being hedged as either fair value hedges or hedges of the net investments in certain foreign operations. Changes in fair value of derivatives designated as fair value hedges are reported in Interest expense on the Consolidated Statement of Income. Changes in fair value of derivatives used as hedges of the net investments in foreign operations, to the extent effective, are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”). The change in fair value attributable to the ineffective portion of the hedging instrument is recognized immediately in Noninterest income on the Consolidated Statement of Income. For all other derivatives, changes in fair value are recognized on the Consolidated Statement of Income. All derivatives designated as fair value hedges and hedges of the net investments in certain foreign operations are linked to specific hedged items or to groups of specific assets and liabilities on the Consolidated Balance Sheet. To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not sought), a derivative must be highly effective in offsetting the risk designated as being hedged. The Company formally documents its hedge relationships at inception, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction at the time the derivative contract is executed. Subsequent to inception, on a quarterly basis, the Company assesses whether the derivatives used in hedging transactions are highly effective in offsetting changes in the fair value of the hedged items. Retroactive effectiveness is also assessed, as well as the continued expectation that the hedge will remain effective prospectively. The Company discontinues hedge accounting prospectively when (i) a derivative is no longer highly effective in offsetting changes in the fair value; (ii) a derivative expires, or is sold, terminated or exercised, or (iii) the Company determines that designation of a derivative as a hedge is no longer appropriate. If a fair value hedge is discontinued, the derivative will continue to be recorded on the Consolidated Balance Sheet at fair value with changes in fair value recognized on the Consolidated Statement of Income. When the hedged net investment is either sold or substantially liquidated, the effective portion of the changes in the fair value of the derivatives are reclassified out of AOCI into Foreign exchange income on the Consolidated Statement of Income. The Company also offers various interest rate and foreign currency derivative products to customers, and enters into derivative transactions in due course. These transactions are not linked to specific assets or liabilities on the Consolidated Balance Sheet or to forecasted transactions in a hedge relationship and, therefore, do not qualify for hedge accounting. The contracts are marked-to-market at the end of each reporting period with changes in fair value recorded on the Consolidated Statement of Income. The Company holds a portfolio of warrants to purchase equity securities from both public and private companies that were obtained as part of the loan origination process. The warrants are accounted for as derivatives and recorded at fair value included in Other assets on the Consolidated Balance Sheet at fair value with changes in fair value at each reporting period recorded on the Consolidated Statement of Income. |
Fair Value | Fair Value — Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and, in many cases, requires management to make a number of significant judgments. Based on the observable inputs used in the valuation techniques, the Company classifies its assets and liabilities measured and disclosed at fair value in accordance with a three-level hierarchy (i.e., Level 1, Level 2 and Level 3) established under ASC 820, Fair Value Measurements . The Company records certain financial instruments, such as available-for-sale investment securities, and derivative assets and liabilities, at fair value on a recurring basis. Certain financial instruments, such as impaired loans and loans held-for-sale, are not carried at fair value each period but may require nonrecurring fair value adjustments due to lower-of-cost-or-market accounting or write-downs of individual assets. For additional information on the fair value, see Note 3 — Fair Value Measurement and Fair Value of Financial Instruments to the Consolidated Financial Statements. |
Stock-Based Compensation | Stock-Based Compensation — The Company issues stock-based awards to certain employees, officers and directors, and accounts for the related costs in accordance with the provisions of ASC 505, Equity and ASC 718, Compensation — Stock Compensation . Stock-based compensation cost is measured at the grant date based on the fair value of the awards and expensed over the employee’s requisite service period. The Company grants nonqualified stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), which include service conditions for vesting. Additionally, some of the Company’s RSUs contain performance goals and market conditions that are required to be met in order for the awards to vest. The stock option awards vest between three to four years from the grant date. RSAs vest ratably over three years, cliff vest after three years, or vest at a rate of 50% each at the fourth and fifth year of continued employment from the date of the grant. RSUs vest ratably over three years or cliff vest after three or five years of continued employment from the date of the grant. Compensation expense is amortized on a straight-line basis over the requisite service period for the entire award, which is generally the maximum vesting period of the award. Effective January 1, 2017, the Company adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting . As a result of its adoption, all excess tax benefits and deficiencies on share-based payment awards are recognized within Income tax expense on the Consolidated Statement of Income. Before 2017, the tax benefits are recorded as increases to Additional paid-in capital on the Consolidated Statement of Changes in Stockholder’s Equity. The fair value of stock options is estimated using the Black-Scholes option pricing model on the grant date. For time-based RSAs and RSUs, the grant-date fair value is measured at the fair value of the Company’s common stock as if the RSAs or RSUs are vested and issued on the date of grant. For performance-based RSAs and RSUs, the grant date fair value considers both performance and market conditions (where applicable). As stock-based compensation expense is estimated based on awards ultimately expected to vest, it is reduced by the expense related to awards expected to be forfeited. Forfeitures are estimated at the time of grant and are reviewed semi-annually for reasonableness. If the estimated forfeitures are revised, a cumulative effect of changes in estimated forfeitures for current and prior periods is recognized in compensation expense in the period of change. |
Income Taxes | Income Taxes — The Company files consolidated federal income tax returns, foreign tax returns, and various combined and separate company state tax returns. The calculation of the Company's income tax provision and related tax accruals requires the use of estimates and judgments. Accrued income tax liabilities (assets) represent the estimated amounts due to (receivable from) the various taxing jurisdictions where the Company has established a business presence. Deferred tax assets and liabilities are recognized for the expected future tax consequences of existing temporary differences between the financial reporting and tax reporting basis of assets and liabilities using enacted tax laws and rates and tax carryforwards. To the extent a deferred tax asset is no longer expected more likely than not to be realized, a valuation allowance is established. See Note 12 — Income Taxes to the Consolidated Financial Statements for a discussion of management’s assessment of evidence considered by the Company in establishing a valuation allowance. The Company established an allowance for potential taxes, interest and penalties related to uncertain tax positions. This contingent reserve is estimated based on facts and circumstances, including the interpretation of existing law, new judicial or regulatory guidance, and the status of tax audits. |
Earnings Per Share | Earnings Per Share — Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period, plus common share equivalents calculated for warrants and RSUs outstanding using the treasury stock method. In prior years, the Company issued RSAs, which are unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents. These RSAs are considered participating securities. Accordingly, the Company applied the two-class method in the computation of basic and diluted EPS when the RSAs were outstanding during 2015. RSUs do not contain nonforfeitable rights to dividends when granted. |
Foreign Currency Translation | Foreign Currency Translation — During the third quarter of 2015, the Company’s foreign subsidiary in China, East West Bank (China) Limited, changed its functional currency from U.S. dollar (“USD”) to Renminbi (“RMB”). As a result, assets and liabilities of this foreign subsidiary were translated, for consolidation purpose, from its functional currencies into USD using period-end spot foreign exchange rates. Revenues and expenses of this foreign subsidiary were translated, for consolidation purpose, from its functional currencies into USD at the transaction date foreign exchange rates. The effects of those translation adjustments are reported in Foreign currency translation adjustment account within Other comprehensive income (loss) on the Consolidated Statement of Comprehensive Income, along with any related hedged effects. For transactions that are denominated in a currency other than the functional currency, including transactions denominated in the local currencies of foreign operations with the USD as their functional currency, the effects of changes in exchange rates are primarily reported on the Consolidated Statement of Income. |
New Accounting Pronouncements Adopted and Recent Accounting Pronouncements | New Accounting Standards Adopted in 2017 In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument in an existing hedging relationship would not be considered a termination of the derivative instrument or a change in a critical term of the hedging relationship provided that all other hedge accounting criteria in ASC 815 continue to be met. This clarification applies to both cash flows and fair value hedging relationships. The Company adopted this guidance prospectively in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments, which requires an entity to use a four-step decision model when assessing contingent call (put) options that can accelerate the payment of principal on debt instruments to determine whether they are clearly and closely related to their debt hosts. The Company adopted this guidance on a modified retrospective basis in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-07, Investments — Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting, to eliminate the requirement for an investor to retroactively apply the equity method when its increase in ownership interest (or degree of influence) in an investee triggers equity method accounting. The amendments in ASU 2016-07 also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in AOCI at the date the investment becomes qualified for use of the equity method. The Company adopted this guidance prospectively in the first quarter of 2017. The adoption of this guidance did not have an impact on the Company’s Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718) : Improvements to Employee Share-Based Payment Accounting , to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification in the statement of cash flows. The Company adopted this guidance in the first quarter of 2017. The changes that impacted the Company included a requirement that excess tax benefits and deficiencies be recognized as a component of Income tax expense on the Consolidated Statement of Income rather than Additional paid-in capital on the Consolidated Statement of Changes in Stockholders’ Equity as required in the previous guidance. The adoption of this guidance results in increased volatility to the Company’s income tax expense, but does not have a material impact on the Consolidated Balance Sheet or the Consolidated Statement of Changes in Stockholders’ Equity. The income tax expense volatility is dependent on the Company’s stock price on the dates the RSUs vest, which occur primarily in the first quarter of each year. Net excess tax benefits for RSUs of $4.8 million have been recognized by the Company as a component of Income tax expense on the Consolidated Statement of Income during the year ended December 31, 2017 . The guidance also removes the impact of the excess tax benefits and deficiencies from the calculation of diluted EPS. In addition, ASU 2016-09 no longer requires a presentation of excess tax benefits and deficiencies as both an operating outflow and a financing inflow on the Consolidated Statement of Cash Flows. Instead, excess tax benefits and deficiencies are recorded along with other income tax cash flows as an operating activity. These changes to the guidance were applied on a prospective basis. The Company has also elected to retain its existing accounting policy election to estimate award forfeitures. Accounting Standards Issued but not yet Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which clarifies the principles for recognizing revenue for contracts to provide goods or services to customers and will replace most existing revenue recognition guidance under U.S. GAAP when it becomes effective. Quantitative and qualitative disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. The Company plans to adopt ASU 2014-09 in the first quarter of 2018 using the modified retrospective method. The Company’s revenue is mainly comprised of net interest income and noninterest income. The scope of the guidance explicitly excludes net interest income, as well as other revenues from financial instruments such as loans, leases, securities and derivatives. Accordingly, the majority of the Company’s revenues will not be affected. The Company’s implementation efforts included the identification of revenue streams within the scope of the guidance, evaluation of the revenue contracts and existing revenue recognition policies. The Company’s evaluation indicates that the new standard will not impact the timing or measurement of its revenue recognition. The adoption of this new accounting standard does not have a material impact on its Consolidated Financial Statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , which requires equity investments, except those accounted for under the equity method of accounting or consolidated, to be measured at fair value with changes recognized in net income, thus eliminating eligibility for the current available-for-sale category. Investments in Federal Reserve Bank and FHLB stock are not subject to this guidance and will continue to be presented at cost. The Company does not have a significant amount of equity securities classified as available-for-sale. Upon adoption, the Company’s investments in equity securities classified as available-for-sale will be accounted for at fair value with unrealized gains or losses reflected in earnings, where the amount of net unrealized gain or loss related to the available-for-sale equity securities portfolio will be reclassified from accumulated other comprehensive income to retained earnings as of January 1, 2018. The Company expects to account for its cost method equity investments that do not have readily determinable fair value using the measurement alternative at cost less impairment, whereby impairment is based on a qualitative assessment. Any changes in the carrying value of such investments is adjusted through earnings for subsequent observable transactions in the same or similar investment. Upon adoption, the Company does not expect a significant transition adjustment for the accounting change related to its cost method equity investments. If an entity has elected the fair value option to measure liabilities, the guidance requires the portion of the change in the fair value of a liability resulting from credit risk to be presented in other comprehensive income. The Company does not have any financial liabilities accounted for under the fair value option. The guidance eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments measured at amortized cost. However, upon adoption, the Company must apply the exit-price notion when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. For the guidance that is applicable to the Company, the accounting will be implemented on a modified retrospective basis through a cumulative-effect adjustment to the Consolidated Balance Sheet as of January 1, 2018, except for the guidance related to equity securities without readily determinable fair value, which should be applied on a prospective basis. The adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability in the accounting for lease transactions. The guidance requires lessees to recognize right-of-use assets and related lease liabilities for all leases with lease terms of more than 12 months on the Consolidated Balance Sheet, and provide quantitative and qualitative disclosures regarding key information about the leasing arrangements. For short-term leases with a term of 12 months or less, lessees can make a policy election not to recognize lease assets and lease liabilities. Lessor accounting is largely unchanged. ASU 2016-02 is effective on January 1, 2019, with early adoption permitted. The guidance should be applied using a modified retrospective transition method through a cumulative-effect adjustment. The Company has completed its review of its existing lease contracts and service contracts that may include embedded leases and is in the process of reviewing system requirements. The Company expects the adoption of ASU 2016-02 to result in additional assets and liabilities, as the Company will be required to recognize operating leases on its Consolidated Balance Sheet. The Company does not expect a material impact to its recognition of operating lease expense on its Consolidated Statement of Income and is in the process of evaluating the impacts of adopting the new accounting guidance on its disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments . The new Current Expected Credit Loss (“CECL”) impairment model applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loan receivables, available-for-sale and held-to-maturity debt securities, net investments in leases and off-balance sheet credit exposures. The CECL model utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. The expected credit losses are adjusted in each period for changes in expected lifetime credit losses. ASU 2016-13 is effective on January 1, 2020, with early adoption permitted on January 1, 2019. The guidance should be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. While the Company is still evaluating the impact on its Consolidated Financial Statements, the Company expects that ASU 2016-13 may result in an increase in the allowance for credit losses due to the following factors: 1) the allowance for credit losses provides for expected credit losses over the remaining expected life of the loan portfolio, and will consider expected future changes in macroeconomic conditions; 2) the nonaccretable difference on the PCI loans will be recognized as an allowance, offset by an increase in the carrying value of the PCI loans; and 3) an allowance may be established for estimated credit losses on available-for-sale and held-to-maturity debt securities. The amount of the increase will be impacted by the portfolio composition and quality, as well as the economic conditions and forecasts as of the adoption date. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models and methods for estimating the allowance for loan and lease losses, and requires disclosure of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination (i.e., by vintage year). The Company has begun its implementation efforts by identifying key interpretive issues, assessing its processes and identifying the data and system requirements against the new guidance to determine what modifications may be required. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to provide guidance on eight specific issues related to classification on the Consolidated Statement of Cash Flows in order to reduce diversity in practice. The specific issues cover cash payments for debt prepayment or debt extinguishment costs; cash outflows for settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments that are not made soon after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests received in securitization transactions; and clarification regarding when no specific U.S. GAAP guidance exists and the sources of the cash flows are not separately identifiable, the classification should be based on the activity that is likely to be the predominant source or use of the cash flows. ASU 2016-15 became effective on January 1, 2018. The guidance should be applied using a retrospective transition method. The adoption of this guidance will not have a material impact on the Company’s Consolidated Financial Statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires the Company to include those amounts that are deemed to be restricted cash and restricted cash equivalents in its cash and cash equivalent balances on the Consolidated Statement of Cash Flows. In addition, the Company is required to explain the changes in the combined total of restricted and unrestricted balances on the Consolidated Statement of Cash Flows. ASU 2016-18 became effective on January 1, 2018. The guidance should be applied using a retrospective transition method to each period presented. The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 narrows the definition of a business by adding an initial screen to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single asset or group of similar assets. If the screen is met, the set is not a business. ASU 2017-01 also specifies the minimum required inputs and processes necessary to be a business, and it removes the requirement to evaluate a market participant’s ability to replace missing elements when all of the inputs or processes that the seller used in operating a business were not obtained. ASU 2017-01 became effective on January 1, 2018. The adoption of this guidance will not have a material impact on its Consolidated Financial Statements as the guidance is to be applied prospectively. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , to simplify the accounting for goodwill impairment. An entity will no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The guidance also eliminates the requirements for any reporting units with a zero or negative carrying amount to perform a qualitative assessment. ASU 2017-04 is effective on January 1, 2020 and should be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests with measurement dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on the Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities , which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The guidance does not require any accounting changes for debt securities held at a discount; the discount continues to be amortized as an adjustment of yield over the contractual life (to maturity) of the instrument. ASU 2017-08 is effective on January 1, 2019, with early adoption permitted. The guidance should be applied using a modified retrospective transition method, with the cumulative-effect adjustment recognized to retained earnings as of the beginning of the period of adoption. The Company does not expect the adoption of this guidance to have a material impact on its Consolidated Financial Statements. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting , which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. ASU 2017-09 became effective on January 1, 2018, with early adoption permitted. The guidance should be applied prospectively to awards modified on or after the adoption date. The Company plans to adopt this guidance in the first quarter of 2018 prospectively. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which better aligns the Company’s risk management activities and financial reporting for hedging relationships through changes to both the description and measurement guidance for qualifying hedging relationships and the presentation of hedge results, expands and refines hedge accounting for both nonfinancial and financial risk components, and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item on the Consolidated Financial Statements. ASU 2017-12 is effective on January 1, 2019, with early adoption permitted. Upon adoption, the guidance will be applied using a retrospective transition method to any existing cash flows or net investment hedges through a cumulative-effect adjustment to AOCI to eliminate the separate measurement of ineffectiveness. The amended presentation and disclosure guidance is applied prospectively. The Company has elected to early adopt ASU 2017-12 in the first quarter of 2018 and the adoption of this guidance will not have a material impact on the Consolidated Financial Statements. |
Held-For-Sale Classification | Held-for-Sale The Company reports a business as held-for-sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. A business classified as held-for-sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on the assets of a business after it is classified as held-for-sale. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of useful lives for premises and equipment | The ranges of estimated useful lives for the principal classes of assets are as follows: Premises and Equipment Useful Lives Buildings and building improvements 25 years Furniture, fixtures and equipment 3 to 7 years Leasehold improvements Term of lease or useful life, whichever is shorter |
Fair Value Measurement and Fa32
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quantitative information | |
Schedule of 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 December 31, 2017 and 2016 : ($ in thousands) Assets (Liabilities) Measured at Fair Value on a Recurring Basis Fair Value Quoted Prices in Significant Significant Available-for-sale investment securities: U.S. Treasury securities $ 640,280 $ 640,280 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 203,392 — 203,392 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 318,957 — 318,957 — Residential mortgage-backed securities 1,190,271 — 1,190,271 — Municipal securities 99,982 — 99,982 — Non-agency residential mortgage-backed securities: Investment grade 9,117 — 9,117 — Corporate debt securities: Investment grade 37,003 — 37,003 — Foreign bonds: Investment grade 486,408 — 486,408 — Other securities 31,342 20,735 10,607 — Total available-for-sale investment securities $ 3,016,752 $ 661,015 $ 2,355,737 $ — Derivative assets: Interest rate swaps and options $ 58,633 $ — $ 58,633 $ — Foreign exchange contracts 5,840 — 5,840 — Credit risk participation agreements (“RPAs”) 1 — 1 — Warrants 1,672 — 993 679 Total derivative assets $ 66,146 $ — $ 65,467 $ 679 Derivative liabilities: Interest rate swaps on certificates of deposit $ (6,799 ) $ — $ (6,799 ) $ — Interest rate swaps and options (57,958 ) — (57,958 ) — Foreign exchange contracts (10,170 ) — (10,170 ) — RPAs (8 ) — (8 ) — Total derivative liabilities $ (74,935 ) $ — $ (74,935 ) $ — Assets (Liabilities) Measured at Fair Value on a Recurring Basis ($ in thousands) Fair Value Quoted Prices in Significant Significant Available-for-sale investment securities: U.S. Treasury securities $ 720,479 $ 720,479 $ — $ — U.S. government agency and U.S. government sponsored enterprise debt securities 274,866 — 274,866 — U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 266,799 — 266,799 — Residential mortgage-backed securities 1,258,747 — 1,258,747 — Municipal securities 147,654 — 147,654 — Non-agency residential mortgage-backed securities: Investment grade 11,477 — 11,477 — Corporate debt securities: Investment grade 222,377 — 222,377 — Non-investment grade 9,173 — 9,173 — Foreign bonds: Investment grade 383,894 — 383,894 — Other securities 40,329 30,991 9,338 — Total available-for-sale investment securities $ 3,335,795 $ 751,470 $ 2,584,325 $ — Derivative assets: Foreign currency forward contracts $ 4,325 $ — $ 4,325 $ — Interest rate swaps and options 67,578 — 67,578 — Foreign exchange contracts 11,874 — 11,874 — RPAs 3 — 3 — Total derivative assets $ 83,780 $ — $ 83,780 $ — Derivative liabilities: Interest rate swaps on certificates of deposit $ (5,976 ) $ — $ (5,976 ) $ — Interest rate swaps and options (65,131 ) — (65,131 ) — Foreign exchange contracts (11,213 ) — (11,213 ) — RPAs (3 ) — (3 ) — Total derivative liabilities $ (82,323 ) $ — $ (82,323 ) $ — |
Reconciliation of major asset categories measured at fair value on a recurring basis using significant unobservable inputs (level 3) | The following table presents a reconciliation of the beginning and ending balances for the major asset and liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2015 : ($ in thousands) Year Ended December 31, 2017 2015 Other Warrants Corporate Debt Embedded Beginning balance $ — $ — $ 6,528 $ (3,392 ) Transfer of investment security from held-to-maturity to available-for-sale 115,615 — — — Total gains (losses) for the period: Included in earnings (1) 1,156 — 960 (20 ) Included in other comprehensive income (loss) (2) — — 922 — Issuances, sales and settlements: Issuances — 679 — — Sales (116,771 ) — (7,219 ) — Settlements — — (98 ) 3,412 Transfers out of Level 3 — — (1,093 ) — Ending balance $ — $ 679 $ — $ — (1) Net realized gains of other securities and corporate debt securities are included in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. Net realized and unrealized losses of embedded derivative liabilities are included in Other operating expense on the Consolidated Statement of Income. (2) Net unrealized gains of corporate debt securities are included in Net changes in unrealized losses on available-for-sale investment securities on the Consolidated Statement of Comprehensive Income. |
Reconciliation of major liability categories measured at fair value on a recurring basis using significant unobservable inputs (level 3) | The following table presents a reconciliation of the beginning and ending balances for the major asset and liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2015 : ($ in thousands) Year Ended December 31, 2017 2015 Other Warrants Corporate Debt Embedded Beginning balance $ — $ — $ 6,528 $ (3,392 ) Transfer of investment security from held-to-maturity to available-for-sale 115,615 — — — Total gains (losses) for the period: Included in earnings (1) 1,156 — 960 (20 ) Included in other comprehensive income (loss) (2) — — 922 — Issuances, sales and settlements: Issuances — 679 — — Sales (116,771 ) — (7,219 ) — Settlements — — (98 ) 3,412 Transfers out of Level 3 — — (1,093 ) — Ending balance $ — $ 679 $ — $ — (1) Net realized gains of other securities and corporate debt securities are included in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. Net realized and unrealized losses of embedded derivative liabilities are included in Other operating expense on the Consolidated Statement of Income. (2) Net unrealized gains of corporate debt securities are included in Net changes in unrealized losses on available-for-sale investment securities on the Consolidated Statement of Comprehensive Income. |
Schedule of assets measured at fair value on a nonrecurring basis | The following tables present the carrying amounts of assets included on the Consolidated Balance Sheet that had fair value changes measured on a nonrecurring basis as of December 31, 2017 and 2016 : ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: Commercial lending: C&I $ 31,404 $ — $ — $ 31,404 CRE 2,667 — — 2,667 Construction and land 3,973 — — 3,973 Consumer lending: Single-family residential 144 — — 144 HELOCs — — — — Total non-PCI impaired loans $ 38,188 $ — $ — $ 38,188 OREO $ 9 $ — $ — $ 9 ($ in thousands) Assets Measured at Fair Value on a Nonrecurring Basis Fair Value Measurements Quoted Prices in Significant Significant Unobservable Inputs (Level 3) Non-PCI impaired loans: Commercial lending: C&I $ 52,172 $ — $ — $ 52,172 CRE 14,908 — — 14,908 Consumer lending: Single-family residential 2,464 — — 2,464 HELOCs 610 — — 610 Total non-PCI impaired loans $ 70,154 $ — $ — $ 70,154 OREO $ 345 $ — $ — $ 345 Loans held-for-sale $ 22,703 $ — $ 22,703 $ — |
Schedule of fair value adjustments of assets measured on a nonrecurring basis recognized | The following table presents the fair value adjustments of assets measured on a nonrecurring basis recognized during the years ended and which were included on the Consolidated Balance Sheet as of December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Non-PCI impaired loans: Commercial lending: C&I $ (19,703 ) $ (27,106 ) $ (5,612 ) CRE (272 ) 1,084 (2,629 ) Multifamily residential — — (115 ) Construction and land (147 ) — (118 ) Consumer lending: Single-family residential (11 ) (224 ) (496 ) HELOCs — 34 (59 ) Other consumer (2,491 ) — — Total non-PCI impaired loans $ (22,624 ) $ (26,212 ) $ (9,029 ) OREO $ (1 ) $ (23 ) $ (233 ) Loans held-for-sale $ — $ (5,565 ) $ (1,991 ) |
Schedule of quantitative information about significant unobservable inputs used in the valuation of assets classified as Level 3 | The following table presents quantitative information about significant unobservable inputs used in the valuation of assets measured on a recurring basis classified as Level 3 as of December 31, 2017 . Significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets or liabilities. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets or liabilities would be impacted by a predetermined percentage change. ($ in thousands) Fair Value Measurements (Level 3) Valuation Technique Unobservable Inputs Weighted- Average Derivative assets: Warrants $ 679 Black-Scholes option pricing model Volatility 44% Liquidity discount 47% |
Schedule of the carrying and fair values per the fair value hierarchy of certain financial instruments | . The following tables present the fair value estimates for financial instruments as of December 31, 2017 and 2016 , excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in Note 4 — Fair Value Measurement and Fair Value of Financial Instruments . The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable and accrued interest payable, which are included in Other assets . ($ in thousands) December 31, 2017 Carrying Amount Level 1 Level 2 Level 3 Estimated Fair Value Financial assets: Cash and cash equivalents $ 2,174,592 $ 2,174,592 $ — $ — $ 2,174,592 Interest-bearing deposits with banks $ 398,422 $ — $ 398,422 $ — $ 398,422 Resale agreements (1) $ 1,050,000 $ — $ 1,035,158 $ — $ 1,035,158 Restricted equity securities $ 73,521 $ — $ 73,521 $ — $ 73,521 Loans held-for-sale $ 85 $ — $ 85 $ — $ 85 Loans held-for-investment, net $ 28,688,590 $ — $ — $ 28,956,349 $ 28,956,349 Branch assets held-for-sale $ 91,318 $ 5,143 $ 10,970 $ 78,132 $ 94,245 Accrued interest receivable $ 121,719 $ — $ 121,719 $ — $ 121,719 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 25,974,314 $ — $ 25,974,314 $ — $ 25,974,314 Time deposits $ 5,640,749 $ — $ 5,626,855 $ — $ 5,626,855 Branch liability held-for-sale $ 605,111 $ — $ — $ 643,937 $ 643,937 FHLB advances $ 323,891 $ — $ 335,901 $ — $ 335,901 Repurchase agreements (1) $ 50,000 $ — $ 104,830 $ — $ 104,830 Long-term debt $ 171,577 $ — $ 171,673 $ — $ 171,673 Accrued interest payable $ 10,724 $ — $ 10,724 $ — $ 10,724 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements . As of December 31, 2017 , $400.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreements. ($ in thousands) December 31, 2016 Carrying Level 1 Level 2 Level 3 Estimated Financial assets: Cash and cash equivalents $ 1,878,503 $ 1,878,503 $ — $ — $ 1,878,503 Interest-bearing deposits with banks $ 323,148 $ — $ 323,148 $ — $ 323,148 Resale agreements (1) $ 2,000,000 $ — $ 1,980,457 $ — $ 1,980,457 Held-to-maturity investment security $ 143,971 $ — $ — $ 144,593 $ 144,593 Restricted equity securities $ 72,775 $ — $ 72,775 $ — $ 72,775 Loans held-for-sale $ 23,076 $ — $ 23,076 $ — $ 23,076 Loans held-for-investment, net $ 25,242,619 $ — $ — $ 24,915,143 $ 24,915,143 Accrued interest receivable $ 100,524 $ — $ 100,524 $ — $ 100,524 Financial liabilities: Customer deposits: Demand, checking, savings and money market deposits $ 24,275,714 $ — $ 24,275,714 $ — $ 24,275,714 Time deposits $ 5,615,269 $ — $ 5,611,746 $ — $ 5,611,746 Short-term borrowings $ 60,050 $ — $ 60,050 $ — $ 60,050 FHLB advances $ 321,643 $ — $ 334,859 $ — $ 334,859 Repurchase agreements (1) $ 350,000 $ — $ 411,368 $ — $ 411,368 Long-term debt $ 186,327 $ — $ 186,670 $ — $ 186,670 Accrued interest payable $ 9,440 $ — $ 9,440 $ — $ 9,440 (1) Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreement . As of December 31, 2016, $100.0 million out of $450.0 million of repurchase agreements were eligible for netting against resale agreement |
Fair Value, Measurements, Nonrecurring | |
Quantitative information | |
Schedule of quantitative information about significant unobservable inputs used in the valuation of assets classified as Level 3 | The following table presents the quantitative information about the significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of December 31, 2017 and 2016 : ($ in thousands) Fair Value Valuation Unobservable Range of Input(s) Weighted- December 31, 2017 Non-PCI impaired loans $ 22,802 Discounted cash flows Discount 4% — 10% 6 % $ 9,773 Fair value of property Selling cost 8% 8 % $ 3,207 Fair value of collateral Discount 20% — 32% 29 % $ 2,406 Fair value of collateral Contract value NM NM OREO $ 9 Fair value of property Selling cost 8% 8 % December 31, 2016 Non-PCI impaired loans $ 31,835 Discounted cash flows Discount 4% — 8% 5 % $ 14,941 Fair value of property Selling cost 4% — 8% 6 % $ 18,417 Fair value of collateral Discount 0% — 75% 35 % $ 4,961 Fair value of collateral Contract value NM NM OREO $ 345 Fair value of property Selling cost 8% 8 % NM — Not meaningful. |
Securities Purchased under Re33
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RESALE AND REPURCHASE AGREEMENTS | |
Schedule of balance sheet offsetting for resale agreements and repurchase agreements | The following tables present the resale and repurchase agreements included on the Consolidated Balance Sheet as of December 31, 2017 and 2016 : ($ in thousands) As of December 31, 2017 Assets Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Financial Collateral Resale agreements $ 1,450,000 $ (400,000 ) $ 1,050,000 $ — $ (1,045,696 ) (2) $ 4,304 Liabilities Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Financial Collateral Repurchase agreements $ 450,000 $ (400,000 ) $ 50,000 $ — $ (50,000 ) (3) $ — ($ In thousands) As of December 31, 2016 Assets Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Amount Financial Collateral Resale agreements $ 2,100,000 $ (100,000 ) $ 2,000,000 $ (150,000 ) (1) $ (1,839,120 ) (2) $ 10,880 Liabilities Gross Amounts Gross Amounts Net Amounts of Gross Amounts Not Offset on the Net Amount Financial Collateral Repurchase agreements $ 450,000 $ (100,000 ) $ 350,000 $ (150,000 ) (1) $ (200,000 ) (3) $ — (1) Represents financial instruments subject to enforceable master netting arrangements that are not eligible to be offset under ASC 210-20-45-11 but would be eligible for offsetting to the extent that an event of default has occurred. (2) Represents the fair value of securities the Company has received under resale agreements, limited for table presentation purposes to the amount of the recognized asset due from each counterparty. (3) Represents the fair value of securities the Company has pledged under repurchase agreements, limited for table presentation purposes to the amount of the recognized liability owed to each counterparty. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and fair value by major categories of investment securities | The following tables present the amortized cost, gross unrealized gains and losses and fair value by major categories of available-for-sale investment securities, which are carried at fair value, and the held-to-maturity investment security, which is carried at amortized cost, as of December 31, 2017 and 2016 : ($ in thousands) As of December 31, 2017 Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 651,395 $ — $ (11,115 ) $ 640,280 U.S. government agency and U.S. government sponsored enterprise debt securities 206,815 62 (3,485 ) 203,392 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 328,348 141 (9,532 ) 318,957 Residential mortgage-backed securities 1,199,869 3,964 (13,562 ) 1,190,271 Municipal securities 99,636 655 (309 ) 99,982 Non-agency residential mortgage-backed securities: Investment grade (1) 9,136 3 (22 ) 9,117 Corporate debt securities: Investment grade (1) 37,585 164 (746 ) 37,003 Foreign bonds: Investment grade (1) (2) 505,396 24 (19,012 ) 486,408 Other securities 31,887 — (545 ) 31,342 Total available-for-sale investment securities 3,070,067 5,013 (58,328 ) 3,016,752 Held-to-maturity investment security: Non-agency commercial mortgage-backed security — — — — Total investment securities $ 3,070,067 $ 5,013 $ (58,328 ) $ 3,016,752 ($ in thousands) As of December 31, 2016 Amortized Gross Gross Fair Available-for-sale investment securities: U.S. Treasury securities $ 730,287 $ 21 $ (9,829 ) $ 720,479 U.S. government agency and U.S. government sponsored enterprise debt securities 277,891 224 (3,249 ) 274,866 U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 272,672 345 (6,218 ) 266,799 Residential mortgage-backed securities 1,266,372 3,924 (11,549 ) 1,258,747 Municipal securities 148,302 1,252 (1,900 ) 147,654 Non-agency residential mortgage-backed securities: Investment grade (1) 11,592 — (115 ) 11,477 Corporate debt securities: Investment grade (1) 222,190 562 (375 ) 222,377 Non-investment grade (1) 10,191 — (1,018 ) 9,173 Foreign bonds: Investment grade (1) (2) 405,443 30 (21,579 ) 383,894 Other securities 40,501 337 (509 ) 40,329 Total available-for-sale investment securities 3,385,441 6,695 (56,341 ) 3,335,795 Held-to-maturity investment security: Non-agency commercial mortgage-backed security 143,971 622 — 144,593 Total investment securities $ 3,529,412 $ 7,317 $ (56,341 ) $ 3,480,388 (1) Available-for-sale investment securities rated BBB- or higher by Standard & Poor’s (“S&P”) or Baa3 or higher by Moody’s are considered investment grade. Conversely, available-for-sale investment securities rated lower than BBB- by S&P or lower than Baa3 by Moody’s are considered non-investment grade. Classifications are based on the lower of the credit ratings by S&P or Moody’s. (2) Fair value of foreign bonds include $456.1 million and $353.6 million of multilateral development bank bonds as of December 31, 2017 and 2016 , respectively. |
Schedule of gross unrealized losses and related fair values of investment securities | Unrealized Losses The following tables present the gross unrealized losses and related fair value of the Company’s investment portfolio, aggregated by investment category and the length of time that individual security has been in a continuous unrealized loss position, as of December 31, 2017 and 2016 : ($ in thousands) As of December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Available-for-sale investment securities: U.S. Treasury securities $ 168,061 $ (1,005 ) $ 472,219 $ (10,110 ) $ 640,280 $ (11,115 ) U.S. government agency and U.S. government sponsored enterprise debt securities 99,935 (623 ) 85,281 (2,862 ) 185,216 (3,485 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 113,775 (2,071 ) 191,827 (7,461 ) 305,602 (9,532 ) Residential mortgage-backed securities 413,621 (4,205 ) 361,809 (9,357 ) 775,430 (13,562 ) Municipal securities 8,490 (123 ) 8,588 (186 ) 17,078 (309 ) Non-agency residential mortgage-backed securities: Investment grade 4,599 (22 ) — — 4,599 (22 ) Corporate debt securities: Investment grade — — 11,905 (746 ) 11,905 (746 ) Foreign bonds: Investment grade 103,149 (1,325 ) 352,239 (17,687 ) 455,388 (19,012 ) Other securities 31,215 (545 ) — — 31,215 (545 ) Total available-for-sale investment securities 942,845 (9,919 ) 1,483,868 (48,409 ) 2,426,713 (58,328 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security — — — — — — Total investment securities $ 942,845 $ (9,919 ) $ 1,483,868 $ (48,409 ) $ 2,426,713 $ (58,328 ) ($ in thousands) As of December 31, 2016 Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross Available-for-sale investment securities: U.S. Treasury securities $ 670,268 $ (9,829 ) $ — $ — $ 670,268 $ (9,829 ) U.S. government agency and U.S. government sponsored enterprise debt securities 203,901 (3,249 ) — — 203,901 (3,249 ) U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities: Commercial mortgage-backed securities 202,106 (5,452 ) 29,201 (766 ) 231,307 (6,218 ) Residential mortgage-backed securities 629,324 (9,594 ) 119,603 (1,955 ) 748,927 (11,549 ) Municipal securities 57,655 (1,699 ) 2,692 (201 ) 60,347 (1,900 ) Non-agency residential mortgage-backed securities: Investment grade 5,033 (101 ) 6,444 (14 ) 11,477 (115 ) Corporate debt securities: Investment grade — — 71,667 (375 ) 71,667 (375 ) Non-investment grade — — 9,173 (1,018 ) 9,173 (1,018 ) Foreign bonds: Investment grade 363,618 (21,327 ) 14,258 (252 ) 377,876 (21,579 ) Other securities 30,991 (509 ) — — 30,991 (509 ) Total available-for-sale investment securities 2,162,896 (51,760 ) 253,038 (4,581 ) 2,415,934 (56,341 ) Held-to-maturity investment security: Non-agency commercial mortgage-backed security — — — — — — Total investment securities $ 2,162,896 $ (51,760 ) $ 253,038 $ (4,581 ) $ 2,415,934 $ (56,341 ) |
Rollforward of other than temporary impairment credit losses recognized in earnings | The following table presents a rollforward of the amounts related to the OTTI credit losses recognized in earnings for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, ($ in thousands) 2017 2016 2015 Beginning balance $ — $ — $ 112,338 Reduction for securities sold — — (112,338 ) Ending balance $ — $ — $ — |
Schedule of the proceeds, gross realized gains and losses related to the sales of available-for-sale investment securities | The following table presents the proceeds, gross realized gains and losses, and tax expense related to the sales of available-for-sale investment securities for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, ($ in thousands) 2017 2016 2015 Proceeds from sales $ 832,844 $ 1,275,645 $ 1,669,334 Gross realized gains $ 8,037 $ 10,487 $ 40,367 Gross realized losses $ — $ 125 $ — Related tax expense $ 3,380 $ 4,357 $ 16,974 |
Schedule of maturities of investment securities | The following table presents the scheduled maturities of available-for-sale investment securities as of December 31, 2017 : ($ in thousands) Amortized Cost Fair Value Due within one year $ 602,560 $ 583,126 Due after one year through five years 772,349 759,970 Due after five years through ten years 220,298 216,390 Due after ten years 1,474,860 1,457,266 Total available-for-sale investment securities $ 3,070,067 $ 3,016,752 |
Schedule of restricted equity securities | The following table presents the restricted equity securities as of December 31, 2017 and 2016 : December 31, ($ in thousands) 2017 2016 Federal Reserve Bank stock $ 56,271 $ 55,525 FHLB stock 17,250 17,250 Total $ 73,521 $ 72,775 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional and fair values of derivatives | The following table presents the total notional and fair value of the Company’s derivatives as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 December 31, 2016 Notional Amount Fair Value Notional Amount Fair Value Derivative Assets (1) Derivative Liabilities (1) Derivative Assets (1) Derivative Liabilities (1) Derivatives designated as hedging instruments: Interest rate swaps on certificates of deposit $ 35,811 $ — $ 6,799 $ 48,365 $ — $ 5,976 Foreign currency forward contracts — — — 83,026 4,325 — Total derivatives designated as hedging instruments $ 35,811 $ — $ 6,799 $ 131,391 $ 4,325 $ 5,976 Derivatives not designated as hedging instruments: Interest rate swaps and options $ 9,333,860 $ 58,633 $ 57,958 $ 7,668,482 $ 67,578 $ 65,131 Foreign exchange contracts 770,215 5,840 10,170 767,764 11,874 11,213 RPAs 49,033 1 8 71,414 3 3 Warrants — (2) 1,672 — — — — Total derivatives not designated as hedging instruments $ 10,153,108 $ 66,146 $ 68,136 $ 8,507,660 $ 79,455 $ 76,347 (1) Derivative assets and derivative liabilities are included in Other assets and Accrued expenses and other liabilities, respectively , on the Consolidated Balance Sheet. (2) The Company held four warrants in public companies and 23 warrants in private companies as of December 31, 2017 . |
Schedule of net gains (losses) recognized on the Consolidated Statements of Income related to derivatives designated as fair value hedge | The following table presents the net (losses) gains recognized on the Consolidated Statement of Income related to the derivatives designated as fair value hedges for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 (Losses) gains recorded in interest expense: Recognized on interest rate swaps $ (2,734 ) $ (794 ) $ 3,452 Recognized on certificates of deposit $ 2,271 $ 157 $ (3,190 ) |
Schedule of gains (losses) related to net investment hedges in accumulated other comprehensive income (loss) and Consolidated Statements of Income | The following table presents the (losses) gains recorded in the Foreign currency translation adjustment account within AOCI related to the effective portion of the net investment hedges and the ineffective portion recorded on the Consolidated Statement of Income for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 (Losses) gains recognized in AOCI on net investment hedges (effective portion) $ (648 ) $ 2,908 $ 1,485 (Losses) gains recognized in foreign exchange income (ineffective portion) $ (1,953 ) $ 1,124 $ 880 |
Schedule of net gains (losses) recognized on the Consolidated Statements 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 years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Location in Consolidated Statement of Income Year Ended December 31, 2017 2016 2015 Derivatives not designated as hedging instruments: Interest rate swaps and options Derivative fees and other income $ (1,772 ) $ 2,557 $ 65 Foreign exchange contracts Foreign exchange income 22,076 12,632 4,235 Foreign exchange options Foreign exchange income — — 236 RPAs Derivative fees and other income (7 ) — — Warrants Ancillary loan fees and other income 1,672 — — Embedded derivative liabilities Other operating expense — — (136 ) Total net gains $ 21,969 $ 15,189 $ 4,400 |
Schedule of gross derivatives on the Consolidated Balance Sheets and the respective collateral received or pledged in the form of other financial instruments | The following tables present gross derivatives on the Consolidated Balance Sheet and the respective collateral received or pledged in the form of other financial instruments, which are generally marketable securities and/or cash. The collateral amounts in these tables are limited to the outstanding balances of the related asset or liability (after netting is applied); thus instances of overcollateralization are not shown: ($ in thousands) As of December 31, 2017 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Derivative Collateral Derivative assets $ 66,146 $ 36,941 $ 29,205 $ — $ 29,205 $ (18,955 ) (1) $ (9,839 ) (2) $ 411 Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Derivative Collateral Derivative liabilities $ 74,935 $ 26,732 $ 48,203 $ — $ 48,203 $ (18,955 ) (1) $ (28,796 ) (3) $ 452 ($ in thousands) As of December 31, 2016 Total Contracts Not Subject to Master Netting Arrangements Contracts Subject to Master Netting Arrangements Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on Net Derivative Collateral Derivative assets $ 83,780 $ 51,218 $ 32,562 $ — $ 32,562 $ (20,991 ) (1) $ (10,687 ) (2) $ 884 Gross Amounts Recognized Gross Amounts Recognized Gross Gross Amounts Net Amounts Gross Amounts Not Offset on the Consolidated Balance Sheet Net Derivative Collateral Derivative liabilities $ 82,323 $ 24,097 $ 58,226 $ — $ 58,226 $ (20,991 ) (1) $ (36,349 ) (3) $ 886 (1) Represents the netting of derivative receivable and payable balances for the same counterparty under enforceable master netting arrangements if the Company has elected to net. (2) Represents cash and securities received against derivative assets with the same counterparty that are subject to enforceable master netting arrangements, including $8.6 million and $8.1 million of cash collateral received as of December 31, 2017 and 2016 , respectively. (3) Represents cash and securities pledged against derivative liabilities with the same counterparty that are subject to enforceable master netting arrangements, including $10.7 million and $170 thousand of cash collateral posted as of December 31, 2017 and 2016 , respectively. |
Loans Receivable and Allowanc36
Loans Receivable and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of the composition of Non-PCI and PCI loans | The following table presents the composition of the Company’s non-PCI and PCI loans as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 December 31, 2016 Non-PCI (1) PCI Loans (2) Total (1)(2) Non-PCI Loans (1) PCI (2) Total (1)(2) Commercial lending: C&I $ 10,685,436 $ 11,795 $ 10,697,231 $ 9,602,176 $ 38,387 $ 9,640,563 CRE 8,659,209 277,688 8,936,897 7,667,661 348,448 8,016,109 Multifamily residential 1,855,128 61,048 1,916,176 1,490,285 95,654 1,585,939 Construction and land 659,326 371 659,697 672,836 1,918 674,754 Total commercial lending 21,859,099 350,902 22,210,001 19,432,958 484,407 19,917,365 Consumer lending: Single-family residential 4,528,911 117,378 4,646,289 3,370,669 139,110 3,509,779 HELOCs 1,768,917 14,007 1,782,924 1,741,852 18,924 1,760,776 Other consumer 336,504 — 336,504 315,215 4 315,219 Total consumer lending 6,634,332 131,385 6,765,717 5,427,736 158,038 5,585,774 Total loans held-for-investment $ 28,493,431 $ 482,287 $ 28,975,718 $ 24,860,694 $ 642,445 $ 25,503,139 Allowance for loan losses (287,070 ) (58 ) (287,128 ) (260,402 ) (118 ) (260,520 ) Loans held-for-investment, net $ 28,206,361 $ 482,229 $ 28,688,590 $ 24,600,292 $ 642,327 $ 25,242,619 (1) Includes net deferred loan fees, unearned fees, unamortized premiums and unaccreted discounts of $(34.0) million and $1.2 million as of December 31, 2017 and 2016 , respectively. (2) Includes ASC 310-30 discount of $35.3 million and $49.4 million as of December 31, 2017 and 2016 , respectively. |
Summary of credit risk rating for non-PCI and PCI loans by portfolio segment | The following tables present the credit risk ratings for non-PCI loans by portfolio segment as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Loss Total Non- PCI Loans Commercial lending: C&I $ 10,369,516 $ 114,769 $ 180,269 $ 20,882 $ — $ 10,685,436 CRE 8,484,635 65,616 108,958 — — 8,659,209 Multifamily residential 1,839,958 — 15,170 — — 1,855,128 Construction and land 614,441 4,590 40,295 — — 659,326 Total commercial lending 21,308,550 184,975 344,692 20,882 — 21,859,099 Consumer lending: Single-family residential 4,490,672 16,504 21,735 — — 4,528,911 HELOCs 1,744,903 11,900 12,114 — — 1,768,917 Other consumer 333,895 111 2,498 — — 336,504 Total consumer lending 6,569,470 28,515 36,347 — — 6,634,332 Total $ 27,878,020 $ 213,490 $ 381,039 $ 20,882 $ — $ 28,493,431 ($ in thousands) December 31, 2016 Pass/Watch Special Mention Substandard Doubtful Loss Total Non- Commercial lending: C&I $ 9,194,701 $ 164,711 $ 237,599 $ 5,157 $ 8 $ 9,602,176 CRE 7,476,804 29,005 161,852 — — 7,667,661 Multifamily residential 1,462,522 2,268 25,495 — — 1,490,285 Construction and land 659,536 — 13,290 10 — 672,836 Total commercial lending 18,793,563 195,984 438,236 5,167 8 19,432,958 Consumer lending: Single-family residential 3,341,015 10,179 19,475 — — 3,370,669 HELOCs 1,728,254 6,717 6,881 — — 1,741,852 Other consumer 315,151 47 17 — — 315,215 Total consumer lending 5,384,420 16,943 26,373 — — 5,427,736 Total $ 24,177,983 $ 212,927 $ 464,609 $ 5,167 $ 8 $ 24,860,694 The following tables present the credit risk ratings for PCI loans by portfolio segment as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Loss Total PCI Loans Commercial lending: C&I $ 10,712 $ 57 $ 1,026 $ — $ — $ 11,795 CRE 238,605 531 38,552 — — 277,688 Multifamily residential 56,720 — 4,328 — — 61,048 Construction and land 44 — 327 — — 371 Total commercial lending 306,081 588 44,233 — — 350,902 Consumer lending: Single-family residential 113,905 1,543 1,930 — — 117,378 HELOCs 12,642 — 1,365 — — 14,007 Other consumer — — — — — — Total consumer lending 126,547 1,543 3,295 — — 131,385 Total (1) $ 432,628 $ 2,131 $ 47,528 $ — $ — $ 482,287 ($ in thousands) December 31, 2016 Pass/Watch Special Mention Substandard Doubtful Loss Total PCI Commercial lending: C&I $ 33,885 $ 772 $ 3,730 $ — $ — $ 38,387 CRE 293,529 3,239 51,680 — — 348,448 Multifamily residential 86,190 — 9,464 — — 95,654 Construction and land 1,562 — 356 — — 1,918 Total commercial lending 415,166 4,011 65,230 — — 484,407 Consumer lending: Single-family residential 136,245 1,239 1,626 — — 139,110 HELOCs 17,429 316 1,179 — — 18,924 Other consumer 4 — — — — 4 Total consumer lending 153,678 1,555 2,805 — — 158,038 Total (1) $ 568,844 $ 5,566 $ 68,035 $ — $ — $ 642,445 (1) Loans net of ASC 310-30 discount. |
Schedule of aging analysis on non-PCI loans | The following tables present the aging analysis on non-PCI loans as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total Non- PCI Loans Commercial lending: C&I $ 30,964 $ 82 $ 31,046 $ 27,408 $ 41,805 $ 69,213 $ 10,585,177 $ 10,685,436 CRE 3,414 466 3,880 5,430 21,556 26,986 8,628,343 8,659,209 Multifamily residential 4,846 14 4,860 1,418 299 1,717 1,848,551 1,855,128 Construction and land 758 — 758 — 3,973 3,973 654,595 659,326 Total commercial lending 39,982 562 40,544 34,256 67,633 101,889 21,716,666 21,859,099 Consumer lending: Single-family residential 13,269 5,355 18,624 6 5,917 5,923 4,504,364 4,528,911 HELOCs 4,286 4,186 8,472 89 3,917 4,006 1,756,439 1,768,917 Other consumer 14 23 37 — 2,491 2,491 333,976 336,504 Total consumer lending 17,569 9,564 27,133 95 12,325 12,420 6,594,779 6,634,332 Total $ 57,551 $ 10,126 $ 67,677 $ 34,351 $ 79,958 $ 114,309 $ 28,311,445 $ 28,493,431 ($ in thousands) December 31, 2016 Accruing Loans 30-59 Days Past Due Accruing Loans 60-89 Days Past Due Total Accruing Past Due Loans Nonaccrual Loans Less Than 90 Days Past Due Nonaccrual Loans 90 or More Days Past Due Total Nonaccrual Loans Current Accruing Loans Total Non- Commercial lending: C&I $ 45,052 $ 2,279 $ 47,331 $ 60,519 $ 20,737 $ 81,256 $ 9,473,589 $ 9,602,176 CRE 6,233 14,080 20,313 14,872 12,035 26,907 7,620,441 7,667,661 Multifamily residential 3,951 374 4,325 2,790 194 2,984 1,482,976 1,490,285 Construction and land 4,994 — 4,994 433 4,893 5,326 662,516 672,836 Total commercial lending 60,230 16,733 76,963 78,614 37,859 116,473 19,239,522 19,432,958 Consumer lending: Single-family residential 9,595 8,076 17,671 — 4,214 4,214 3,348,784 3,370,669 HELOCs 2,845 2,606 5,451 165 1,965 2,130 1,734,271 1,741,852 Other consumer 482 622 1,104 — — — 314,111 315,215 Total consumer lending 12,922 11,304 24,226 165 6,179 6,344 5,397,166 5,427,736 Total $ 73,152 $ 28,037 $ 101,189 $ 78,779 $ 44,038 $ 122,817 $ 24,636,688 $ 24,860,694 |
Summary of additions and modifications to non-PCI troubled debt restructurings | The following tables present the additions to non-PCI TDRs for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Loans Modified as TDRs During the Year Ended December 31, 2017 Number Pre-Modification Post-Modification (1) Financial (2) Commercial lending: C&I 16 $ 43,884 $ 37,900 $ 11,520 CRE 4 $ 2,675 $ 2,627 $ 157 Multifamily residential 1 $ 3,655 $ 2,969 $ — Consumer lending: HELOCs 1 $ 152 $ 155 $ — ($ in thousands) Loans Modified as TDRs During the Year Ended December 31, 2016 Number Pre-Modification Post-Modification (1) Financial (2) Commercial lending: C&I 18 $ 65,991 $ 40,405 $ 20,574 CRE 6 $ 19,275 $ 18,824 $ 701 Construction and land 1 $ 5,522 $ 4,883 $ — Consumer lending: Single-family residential 3 $ 1,291 $ 1,268 $ — HELOCs 3 $ 491 $ 382 $ 1 ($ in thousands) Loans Modified as TDRs During the Year Ended December 31, 2015 Number Pre-Modification Post-Modification (1) Financial (2) Commercial lending: C&I 18 $ 42,816 $ 34,165 $ 6,726 CRE 3 $ 1,802 $ 1,727 $ — Construction and land 2 $ 2,227 $ 83 $ 102 Consumer lending: Single-family residential 1 $ 281 $ 279 $ 2 (1) Includes subsequent payments after modification and reflects the balance as of December 31, 2017 , 2016 and 2015 . (2) The financial impact includes charge-offs and specific reserves recorded at the modification date. The following tables present the non-PCI TDR modifications for the years ended December 31, 2017 , 2016 and 2015 by modification type: ($ in thousands) Modification Type During the Year Ended December 31, 2017 Principal (1) Principal and Interest (2) Interest Rate Reduction Interest Other Total Commercial lending: C&I $ 13,568 $ 7,848 $ — $ — $ 16,484 $ 37,900 CRE 2,627 — — — — 2,627 Multifamily residential 2,969 — — — — 2,969 Total commercial lending 19,164 7,848 — — 16,484 43,496 Consumer lending: HELOCs — 155 — — — 155 Total consumer lending — 155 — — — 155 Total $ 19,164 $ 8,003 $ — $ — $ 16,484 $ 43,651 ($ in thousands) Modification Type During the Year Ended December 31, 2016 Principal (1) Principal and Interest (2) Interest Rate Reduction Interest Deferments Other Total Commercial lending: C&I $ 34,499 $ — $ 5,876 $ 30 $ — $ 40,405 CRE 17,750 — — — 1,074 18,824 Construction and land 4,883 — — — — 4,883 Total commercial lending 57,132 — 5,876 30 1,074 64,112 Consumer lending: Single-family residential 264 — 797 207 — 1,268 HELOCs 333 — 49 — — 382 Total consumer lending 597 — 846 207 — 1,650 Total $ 57,729 $ — $ 6,722 $ 237 $ 1,074 $ 65,762 ($ in thousands) Modification Type During the Year Ended December 31, 2015 Principal (1) Principal (2) Interest Interest Other Total Commercial lending: C&I $ 16,364 $ 17,801 $ — $ — $ — $ 34,165 CRE 548 787 — — 392 1,727 Construction and land — — — — 83 83 Total commercial lending 16,912 18,588 — — 475 35,975 Consumer lending: Single-family residential 279 — — — — 279 Total consumer lending 279 — — — — 279 Total $ 17,191 $ 18,588 $ — $ — $ 475 $ 36,254 (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. The following table presents information on loans modified as TDRs within the previous 12 months that have subsequently defaulted during the years ended December 31, 2017 , 2016 and 2015 , and were still in default at the respective period end: ($ in thousands) Loans Modified as TDRs that Subsequently Defaulted 2017 2016 2015 Number of Recorded Number of Recorded Number of Recorded Commercial lending: C&I 3 $ 8,659 — $ — — $ — CRE — $ — 2 $ 3,150 — $ — Construction and land — $ — 1 $ 4,883 — $ — Consumer lending: Single-family residential — $ — — $ — 1 $ 279 |
Summary of non-PCI impaired loans | The following tables present information on non-PCI impaired loans as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 98,889 $ 36,086 $ 62,599 $ 98,685 $ 16,094 CRE 35,550 28,699 6,857 35,556 684 Multifamily residential 10,625 8,019 2,617 10,636 88 Construction and land 3,973 3,973 — 3,973 — Total commercial lending 149,037 76,777 72,073 148,850 16,866 Consumer lending: Single-family residential 14,287 — 14,338 14,338 534 HELOCs 5,201 2,287 2,921 5,208 4 Other consumer 2,491 — 2,491 2,491 2,491 Total consumer lending 21,979 2,287 19,750 22,037 3,029 Total non-PCI impaired loans $ 171,016 $ 79,064 $ 91,823 $ 170,887 $ 19,895 ($ in thousands) December 31, 2016 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial lending: C&I $ 167,466 $ 78,316 $ 47,303 $ 125,619 $ 10,477 CRE 50,718 32,507 14,001 46,508 1,263 Multifamily residential 11,181 5,684 4,357 10,041 180 Construction and land 6,457 5,427 443 5,870 63 Total commercial lending 235,822 121,934 66,104 188,038 11,983 Consumer lending: Single-family residential 15,435 — 14,335 14,335 687 HELOCs 4,016 — 3,682 3,682 31 Total consumer lending 19,451 — 18,017 18,017 718 Total non-PCI impaired loans $ 255,273 $ 121,934 $ 84,121 $ 206,055 $ 12,701 |
Schedule of average recorded investment and amount of interest income on non-PCI impaired loans | The following table presents the average recorded investment and interest income recognized on non-PCI impaired loans for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Average Recorded Investment Recognized Interest Income (1) Average Recognized (1) Average Recognized Interest Income (1) Commercial lending: C&I $ 110,662 $ 1,517 $ 148,986 $ 2,612 $ 85,290 $ 538 CRE 36,003 578 47,064 1,253 43,598 536 Multifamily residential 11,455 422 15,763 302 24,024 312 Construction and land 4,382 — 6,388 34 2,740 39 Total commercial lending 162,502 2,517 218,201 4,201 155,652 1,425 Consumer lending: Single-family residential 14,994 417 14,323 447 15,365 242 HELOCs 5,494 55 3,703 63 1,252 47 Other consumer 2,142 — — — — — Total consumer lending 22,630 472 18,026 510 16,617 289 Total non-PCI impaired loans $ 185,132 $ 2,989 $ 236,227 $ 4,711 $ 172,269 $ 1,714 (1) Includes interest recognized on accruing non-PCI TDRs. Interest payments received on nonaccrual non-PCI loans are reflected as a reduction to principal, not as interest income. |
Summary of the activity in the allowance for credit losses | The following table presents a summary of activities in the allowance for unfunded credit reserves for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Allowance for unfunded credit reserves, beginning of period $ 16,121 $ 20,360 $ 12,712 (Reversal of) provision for unfunded credit reserves (2,803 ) (4,239 ) 7,648 Allowance for unfunded credit reserves, end of period $ 13,318 $ 16,121 $ 20,360 The following table presents a summary of activities in the allowance for loan losses by portfolio segment for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Non-PCI Loans Allowance for non-PCI loans, beginning of period $ 260,402 $ 264,600 $ 260,965 Provision for loan losses on non-PCI loans 49,129 31,959 6,924 Gross charge-offs: Commercial lending: C&I (38,118 ) (47,739 ) (20,423 ) CRE — (464 ) (1,052 ) Multifamily residential (635 ) (29 ) (1,650 ) Construction and land (149 ) (117 ) (493 ) Consumer lending: Single-family residential (1 ) (137 ) (36 ) HELOCs (55 ) (9 ) (98 ) Other consumer (17 ) (13 ) (502 ) Total gross charge-offs (38,975 ) (48,508 ) (24,254 ) Gross recoveries: Commercial lending: C&I 12,065 8,453 8,782 CRE 2,111 1,488 2,488 Multifamily residential 1,357 1,476 4,298 Construction and land 259 203 4,647 Consumer lending: Single-family residential 546 401 323 HELOCs 24 7 54 Other consumer 152 323 373 Total gross recoveries 16,514 12,351 20,965 Net charge-offs (22,461 ) (36,157 ) (3,289 ) Allowance for non-PCI loans, end of period 287,070 260,402 264,600 PCI Loans Allowance for PCI loans, beginning of period 118 359 714 Reversal of loan losses on PCI loans (60 ) (241 ) (355 ) Allowance for PCI loans, end of period 58 118 359 Allowance for loan losses $ 287,128 $ 260,520 $ 264,959 |
Allowance for loan losses and recorded investments by portfolio segment and impairment methodology | The following tables present the Company’s allowance for loan losses and recorded investments by portfolio segment and impairment methodology as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Allowance for loan losses Individually evaluated for impairment $ 16,094 $ 684 $ 88 $ — $ 534 $ 4 $ 2,491 $ 19,895 Collectively evaluated for impairment 146,964 40,495 19,021 26,881 25,828 7,350 636 267,175 Acquired with deteriorated credit quality — 58 — — — — — 58 Total $ 163,058 $ 41,237 $ 19,109 $ 26,881 $ 26,362 $ 7,354 $ 3,127 $ 287,128 Recorded investment in loans Individually evaluated for impairment $ 98,685 $ 35,556 $ 10,636 $ 3,973 $ 14,338 $ 5,208 $ 2,491 $ 170,887 Collectively evaluated for impairment 10,586,751 8,623,653 1,844,492 655,353 4,514,573 1,763,709 334,013 28,322,544 Acquired with deteriorated credit quality (1) 11,795 277,688 61,048 371 117,378 14,007 — 482,287 Total (1) $ 10,697,231 $ 8,936,897 $ 1,916,176 $ 659,697 $ 4,646,289 $ 1,782,924 $ 336,504 $ 28,975,718 ($ in thousands) December 31, 2016 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Allowance for loan losses Individually evaluated for impairment $ 10,477 $ 1,263 $ 180 $ 63 $ 687 $ 31 $ — $ 12,701 Collectively evaluated for impairment 131,689 46,552 17,363 24,926 19,103 7,475 593 247,701 Acquired with deteriorated credit quality 1 112 — — 5 — — 118 Total $ 142,167 $ 47,927 $ 17,543 $ 24,989 $ 19,795 $ 7,506 $ 593 $ 260,520 Recorded investment in loans Individually evaluated for impairment $ 125,619 $ 46,508 $ 10,041 $ 5,870 $ 14,335 $ 3,682 $ — $ 206,055 Collectively evaluated for impairment 9,476,557 7,621,153 1,480,244 666,966 3,356,334 1,738,170 315,215 24,654,639 Acquired with deteriorated credit quality (1) 38,387 348,448 95,654 1,918 139,110 18,924 4 642,445 Total (1) $ 9,640,563 $ 8,016,109 $ 1,585,939 $ 674,754 $ 3,509,779 $ 1,760,776 $ 315,219 $ 25,503,139 (1) Loans net of ASC 310-30 discount |
Summary of changes in the accretable yield for the PCI loans | The following table presents the changes in accretable yield for PCI loans for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Accretable yield for PCI loans, beginning of period $ 136,247 $ 214,907 $ 311,688 Accretion (42,487 ) (68,708 ) (107,442 ) Changes in expected cash flows 8,217 (9,952 ) 10,661 Accretable yield for PCI loans, end of period $ 101,977 $ 136,247 $ 214,907 |
Schedule of loans held-for-investment | The following tables present information about the sales, purchases and securitization of loans, and reclassification of loans held-for-investment to/from loans held-for-sale during the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 Commercial Lending Consumer Lending C&I CRE Multifamily Residential Construction and Land Single-Family HELOCs Other Consumer Total Loans transferred from held-for-investment to held-for-sale $ 476,644 $ 52,217 $ 531 $ 1,609 $ 249 $ — $ 3,706 $ 534,956 (1) Loans of DCB branches transferred from held-for-investment to held-for-sale (included in Branch assets held-for-sale) $ 17,590 $ 36,783 $ 12,448 $ 241 $ 6,416 $ 4,309 $ 345 $ 78,132 (1) Sales $ 476,644 $ 52,217 $ 531 $ 1,609 $ 21,058 $ — $ 25,905 $ 577,964 (2)(3)(4) Purchases $ 503,359 $ — $ 2,311 $ — $ 29,060 $ — $ — $ 534,730 (6) ($ in thousands) Year Ended December 31, 2016 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Loans transferred from held-for-investment to held-for-sale $ 434,137 $ 110,927 $ 269,791 $ 4,245 $ — $ — $ — $ 819,100 (1) Loans transferred from held-for-sale to held-for-investment $ — $ — $ (4,943 ) $ — $ — $ — $ — $ (4,943 ) Sales $ 434,137 $ 110,927 $ 61,268 $ 4,245 $ 18,092 $ — $ — $ 628,669 (2)(3)(4) Securitization of loans held-for-investment $ — $ — $ 201,675 $ — $ — $ — $ — $ 201,675 (5) Purchases $ 646,793 $ — $ 5,658 $ — $ 488,577 $ — $ — $ 1,141,028 (6)(7) ($ in thousands) Year Ended December 31, 2015 Commercial Lending Consumer Lending C&I CRE Multifamily Construction Single-Family HELOCs Other Total Loans transferred from held-for-investment to held-for-sale $ 779,854 $ 227 $ — $ 4,754 $ 962,538 $ 248 $ — $ 1,747,621 (1) Loans transferred from held-for-sale to held-for-investment $ — $ — $ — $ — $ (53,376 ) $ — $ — $ (53,376 ) Sales $ 779,682 $ 227 $ — $ 4,754 $ 907,373 $ 248 $ 9,913 $ 1,702,197 (2)(3)(4) Purchases $ 233,090 $ — $ 11,046 $ — $ 38,271 $ — $ — $ 282,407 (6) (1) The Company recorded $473 thousand , $1.9 million and $5.1 million in write-downs to the allowance for loan losses related to loans transferred from held-for-investment to held-for-sale for the years ended December 31, 2017 , 2016 and 2015 , respectively. (2) Includes originated loans sold of $178.2 million , $ 369.6 million and $1.04 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. Originated loans sold were primarily comprised of C&I, CRE and single-family residential loans for the year ended December 31, 2017 , C&I, CRE and multifamily residential loans for the year ended December 31, 2016 , and single-family residential and C&I loans for the year ended December 31, 2015 . (3) Includes purchased loans sold in the secondary market of $399.8 million , $259.1 million and $661.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (4) Net gains on sales of loans, excluding the lower of cost or fair value adjustments, were $8.9 million , $10.6 million and $27.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The lower of cost or fair value adjustments of $61 thousand , $5.6 million and $3.0 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, were recorded in Net gains on sales of loans on the Consolidated Statement of Income. (5) Represents multifamily residential loans securitized during the first quarter of 2016 that resulted in net gains of $1.1 million , $641 thousand in mortgage servicing rights and $160.1 million of held-to-maturity investment security. (6) C&I loan purchases for each of the years ended December 31, 2017 , 2016 and 2015 mainly represent C&I syndicated loans. (7) The higher loan purchases for the year ended December 31, 2016 was mainly due to $488.3 million of single-family residential loans purchased for Community Reinvestment Act (“CRA”) purposes. |
Investments in Qualified Affo37
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET | |
Schedule of investments in qualified affordable housing partnerships and related unfunded commitments | The following table presents the balances of the Company’s investments in qualified affordable housing partnerships, net, and related unfunded commitments as of the periods indicated: ($ in thousands) December 31, 2017 2016 Investments in qualified affordable housing partnerships, net $ 162,824 $ 183,917 Accrued expenses and other liabilities — Unfunded commitments $ 55,815 $ 57,243 |
Schedule of other information related to investments in qualified affordable housing partnership | The following table presents additional information related to the Company’s investments in qualified affordable housing partnerships, net, for the periods indicated: ($ in thousands) Year Ended December 31, 2017 2016 2015 Tax credits and other tax benefits recognized $ 46,698 $ 37,252 $ 38,271 Amortization expense included in income tax expense $ 38,464 $ 28,206 $ 26,814 |
Schedule of unfunded commitments related to investments in qualified affordable housing partnerships, tax credit and other investments, net estimated to be paid | As of December 31, 2017 , the Company’s unfunded commitments related to investments in qualified affordable housing partnerships, tax credit and other investments are estimated to be funded as follows: ($ in thousands) Amount 2018 $ 98,000 2019 34,790 2020 16,744 2021 7,734 2022 11,078 Thereafter 841 Total $ 169,187 The following table presents the Company’s credit-related commitments as of the periods indicated: ($ in thousands) December 31, 2017 2016 Loan commitments $ 5,075,480 $ 5,077,869 Commercial letters of credit and SBLCs $ 1,655,897 $ 1,525,613 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | The following table presents the gross carrying value of core deposit intangible assets and accumulated amortization as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 2016 Gross balance $ 108,814 $ 108,814 Accumulated amortization (87,760 ) (80,825 ) Net carrying balance $ 21,054 $ 27,989 |
Schedule of estimated future amortization expense of the core deposit intangibles | The following table presents the estimated future amortization expense of core deposit intangibles for the five years succeeding December 31, 2017 and thereafter: ($ in thousands) Amount 2018 $ 5,883 2019 4,864 2020 3,846 2021 2,833 2022 1,865 Thereafter 1,763 Total $ 21,054 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
CUSTOMER DEPOSIT ACCOUNTS | |
Summary of deposit account balances | The following table presents the balances for deposits as of December 31, 2017 and 2016 : December 31, ($ in thousands) 2017 2016 Core deposits: Noninterest-bearing demand $ 10,887,306 $ 10,183,946 Interest-bearing checking 4,419,089 3,674,417 Money market 8,359,425 8,174,854 Savings 2,308,494 2,242,497 Total core deposits 25,974,314 24,275,714 Time deposits: Less than $100,000 1,176,973 1,300,091 $100,000 or greater 4,463,776 4,315,178 Total time deposits 5,640,749 5,615,269 Total deposits $ 31,615,063 $ 29,890,983 |
Schedule of maturities of time deposits | The following table presents the scheduled maturities of time deposits for the five years succeeding December 31, 2017 and thereafter: ($ in thousands) Amount 2018 $ 4,930,794 2019 394,274 2020 102,768 2021 86,308 2022 94,602 Thereafter 32,003 Total $ 5,640,749 |
Federal Home Loan Bank Advanc40
Federal Home Loan Bank Advances and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FEDERAL HOME LOAN BANK ADVANCES AND LONG-TERM DEBT | |
Schedule of the components of long-term debt | The following table presents the components of long-term debt as of December 31, 2017 and 2016 : ($ in thousands) December 31, 2017 2016 Junior subordinated debt $ 146,577 $ 146,327 Term loan 25,000 40,000 Total long-term debt $ 171,577 $ 186,327 |
Summary of the outstanding junior subordinated debt issued by each trust | The following table presents the outstanding junior subordinated debt issued by each trust as of December 31, 2017 and 2016 : Issuer Stated (1) Stated Current Rate December 31, 2017 December 31, 2016 Aggregate Principal Amount of Trust Securities Aggregate Principal Amount of the Junior Subordinated Debts Aggregate Aggregate ($ in thousands) East West Capital Trust V November 2034 3-month LIBOR + 1.80% 3.25% $ 464 $ 15,000 $ 464 $ 15,000 East West Capital Trust VI September 2035 3-month LIBOR + 1.50% 3.09% 619 20,000 619 20,000 East West Capital Trust VII June 2036 3-month LIBOR + 1.35% 2.94% 928 30,000 928 30,000 East West Capital Trust VIII June 2037 3-month LIBOR + 1.40% 2.91% 619 18,000 619 18,000 East West Capital Trust IX September 2037 3-month LIBOR + 1.90% 3.49% 928 30,000 928 30,000 MCBI Statutory Trust I December 2035 3-month LIBOR + 1.55% 3.14% 1,083 35,000 1,083 35,000 Total $ 4,641 $ 148,000 $ 4,641 $ 148,000 (1) All the above debt instruments are subject to call options where early redemption requires appropriate notice. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expenses | The following table presents the components of income tax expense for the years indicated: ($ in thousands) Year Ended December 31, 2017 2016 2015 Current income tax expense (benefit): Federal $ 120,968 $ 63,642 $ (62,829 ) State 72,837 48,558 (4,750 ) Foreign 1,815 1,345 409 Total current income tax expense (benefit) 195,620 113,545 (67,170 ) Deferred income tax expense (benefit): Federal 40,057 25,296 199,858 State (6,201 ) 1,883 60,437 Foreign — (213 ) 919 Total deferred income tax expense 33,856 26,966 261,214 Income tax expense $ 229,476 $ 140,511 $ 194,044 |
Schedule of reconciliation of the federal statutory rate to the effective income tax rate | The following table presents the reconciliation of the federal statutory rate to the Company’s effective tax rate for the years ended December 31, 2017 , 2016 and 2015 : Year Ended December 31, 2017 2016 2015 Federal income tax provision at statutory rate 35.0 % 35.0 % 35.0 % State franchise taxes, net of federal tax effect 5.9 6.1 6.3 Tax Cuts and Jobs Act of 2017 (the “Tax Act”) 4.5 — — Tax credits, net of amortization (15.1 ) (18.3 ) (8.7 ) Other, net 0.9 1.8 0.9 Effective tax rate 31.2 % 24.6 % 33.5 % |
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) | The tax effects of temporary differences that give rise to a significant portion of deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016 are presented below: ($ in thousands) December 31, 2017 2016 Federal State Foreign Total Federal State Foreign Total Deferred tax assets: Allowance for loan losses and OREO reserves $ 62,942 $ 28,857 $ 1,365 $ 93,164 $ 97,921 $ 27,792 $ 1,365 $ 127,078 Deferred compensation 11,483 5,220 — 16,703 20,093 5,731 — 25,824 Mortgage servicing assets 2,727 1,206 — 3,933 — — — — Unrealized losses on securities 10,730 5,354 — 16,084 16,253 5,315 — 21,568 State taxes 5,217 — — 5,217 1,333 — — 1,333 Interest income on nonaccrual loans 5,396 2,451 — 7,847 4,461 1,258 — 5,719 Other, net 744 5,481 97 6,322 2,053 5,269 97 7,419 Total gross deferred tax assets 99,239 48,569 1,462 149,270 142,114 45,365 1,462 188,941 Valuation allowance — (256 ) — (256 ) — (283 ) — (283 ) Total deferred tax assets, net of valuation allowance $ 99,239 $ 48,313 $ 1,462 $ 149,014 $ 142,114 $ 45,082 $ 1,462 $ 188,658 Deferred tax liabilities: Core deposit intangibles $ (4,408 ) $ (2,117 ) $ — $ (6,525 ) $ (9,768 ) $ (2,874 ) $ — $ (12,642 ) Investments in partnerships, tax credit and other investments, net (10,838 ) 7,025 — (3,813 ) (7,012 ) 5,318 — (1,694 ) Fixed assets (2,671 ) 914 — (1,757 ) (13,166 ) (3,360 ) — (16,526 ) Equipment financing (21,844 ) (3,760 ) — (25,604 ) (13,240 ) (1,866 ) — (15,106 ) FHLB stock dividends (1,285 ) (583 ) — (1,868 ) (1,189 ) (335 ) — (1,524 ) Acquired debt (1,273 ) (578 ) — (1,851 ) (2,210 ) (623 ) — (2,833 ) Acquired loans and OREO (2,252 ) (754 ) (406 ) (3,412 ) (5,407 ) (1,242 ) (406 ) (7,055 ) Prepaid expenses (4,142 ) (1,517 ) — (5,659 ) (1,088 ) (251 ) — (1,339 ) Other, net (510 ) (609 ) — (1,119 ) (121 ) (120 ) — (241 ) Total gross deferred tax liabilities $ (49,223 ) $ (1,979 ) $ (406 ) $ (51,608 ) $ (53,201 ) $ (5,353 ) $ (406 ) $ (58,960 ) Net deferred tax assets $ 50,016 $ 46,334 $ 1,056 $ 97,406 $ 88,913 $ 39,729 $ 1,056 $ 129,698 |
Summary of the activity related to unrecognized tax benefits | The following table summarizes the activities related to the Company’s unrecognized tax benefits as of the periods indicated: ($ in thousands) Year Ended December 31, 2017 2016 Beginning Balance $ 10,419 $ 7,125 Additions for tax positions related to prior years — 5,819 Settlements with taxing authorities — (2,525 ) Ending Balance $ 10,419 $ 10,419 |
Commitments, Contingencies an42
Commitments, Contingencies and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of credit-related commitments | As of December 31, 2017 , the Company’s unfunded commitments related to investments in qualified affordable housing partnerships, tax credit and other investments are estimated to be funded as follows: ($ in thousands) Amount 2018 $ 98,000 2019 34,790 2020 16,744 2021 7,734 2022 11,078 Thereafter 841 Total $ 169,187 The following table presents the Company’s credit-related commitments as of the periods indicated: ($ in thousands) December 31, 2017 2016 Loan commitments $ 5,075,480 $ 5,077,869 Commercial letters of credit and SBLCs $ 1,655,897 $ 1,525,613 |
Schedule of estimated future minimum rental payments under non-cancelable operating leases | Future minimum rental payments under non-cancellable operating leases are estimated as follows: Years Ending December 31, Amount ($ in thousands) 2018 $ 31,845 2019 27,005 2020 22,242 2021 18,635 2022 13,944 Thereafter 27,988 Total $ 141,659 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule 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 benefit associated with the Company’s various employee share-based compensation plans for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Stock compensation costs $ 24,657 $ 22,102 $ 16,502 Related net tax benefits for stock compensation plans $ 4,775 $ 1,055 $ 3,291 |
Summary of activity for time-based and performance-based restricted stock units | The following table presents a summary of the activity for the Company’s time-based and performance-based RSUs for the year ended December 31, 2017 based on the target amount of awards: 2017 Time-Based RSUs Performance-Based RSUs Shares Weighted- Average Grant Date Fair Value Shares Weighted- Outstanding at beginning of year 1,218,714 $ 35.92 410,746 $ 35.27 Granted 411,290 55.28 131,597 56.59 Vested (312,226 ) 36.55 (118,044 ) 36.85 Forfeited (151,198 ) 40.38 — — Outstanding at end of year 1,166,580 $ 42.00 424,299 $ 41.44 |
Schedule of information related to stock options | The following table presents information related to stock options for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Cash proceeds from options exercised $ — $ — $ 874 Net tax benefit recognized from options exercised $ — $ — $ 320 Total intrinsic value of options exercised $ — $ — $ 760 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of expected SERP payments | The following table presents a summary of expected SERP payments to be paid for the next five years and thereafter as of December 31, 2017 : Years Ending December 31, Amount ($ in thousands) 2018 $ 319 2019 329 2020 339 2021 349 2022 359 Thereafter 7,855 Total $ 9,550 |
Stockholders_ Equity and Earn45
Stockholders’ Equity and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of earnings per share calculations | The following table presents the EPS calculations for the years ended December 31, 2017 , 2016 and 2015 . The Company applied the two-class method in the computation of basic and diluted EPS in the periods when the RSAs were outstanding. The RSAs were fully vested as of December 31, 2015. For additional information regarding the Company’s EPS calculation, see Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements. With the adoption of ASU 2016-09 during the first quarter of 2017, the impact of excess tax benefits and deficiencies is no longer included in the calculation of diluted EPS. As a result of applying ASU 2016-09 in 2017, the Company recorded income tax benefits of $4.8 million or $0.03 per common share for the year ended December 31, 2017 related to the vesting of the RSUs. See Note 1 — Summary of Significant Accounting Policies to the Consolidated Financial Statements for additional information. ($ and shares in thousands, except per share data) Year Ended December 31, 2017 2016 2015 Basic Net income $ 505,624 $ 431,677 $ 384,677 Less: earnings allocated to participating securities — — (3 ) Net income allocated to common stockholders $ 505,624 $ 431,677 $ 384,674 Basic weighted-average number of shares outstanding 144,444 144,087 143,818 Basic EPS $ 3.50 $ 3.00 $ 2.67 Diluted Net income allocated to common stockholders $ 505,624 $ 431,677 $ 384,680 Basic weighted-average number of shares outstanding 144,444 144,087 143,818 Diluted potential common shares (1) 1,469 1,085 694 Diluted weighted-average number of shares outstanding 145,913 145,172 144,512 Diluted EPS $ 3.47 $ 2.97 $ 2.66 (1) Includes dilutive shares from RSUs and warrants for the years ended December 31, 2017 , 2016 and 2015 . |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of the changes in the components of accumulated other comprehensive income (loss) balances | The following table presents the changes in the components of AOCI balances for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Available- for-Sale Investment Securities Foreign Currency Translation Adjustments (1) Total Available- Foreign Currency Translation Adjustments (1) Total Available- Foreign Currency Translation Adjustments (1) Total Beginning balance $ (28,772 ) $ (19,374 ) $ (48,146 ) $ (6,144 ) $ (8,797 ) $ (14,941 ) $ 4,237 $ — $ 4,237 Net unrealized gains (losses) arising during the period 2,531 12,753 15,284 (16,623 ) (10,577 ) (27,200 ) 13,012 (8,797 ) 4,215 Amounts reclassified from AOCI (4,657 ) — (4,657 ) (6,005 ) — (6,005 ) (23,393 ) — (23,393 ) Changes, net of taxes (2,126 ) 12,753 10,627 (22,628 ) (10,577 ) (33,205 ) (10,381 ) (8,797 ) (19,178 ) Ending balance $ (30,898 ) $ (6,621 ) $ (37,519 ) $ (28,772 ) $ (19,374 ) $ (48,146 ) $ (6,144 ) $ (8,797 ) $ (14,941 ) (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 years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Year Ended December 31, 2017 2016 2015 Before - Tax Tax Net-of- Tax Before - Tax Net-of- Before - Tax Net-of- Available-for-sale investment securities: Net unrealized gains (losses) arising during the period $ 4,368 $ (1,837 ) $ 2,531 $ (28,681 ) $ 12,058 $ (16,623 ) $ 22,454 $ (9,442 ) $ 13,012 Net realized gains reclassified into net income (1) (8,037 ) 3,380 (4,657 ) (10,362 ) 4,357 (6,005 ) (40,367 ) 16,974 (23,393 ) Net change (3,669 ) 1,543 (2,126 ) (39,043 ) 16,415 (22,628 ) (17,913 ) 7,532 (10,381 ) Foreign currency translation adjustments: Net unrealized gains (losses) arising during period 12,753 — 12,753 (10,577 ) — (10,577 ) (8,797 ) — (8,797 ) Net change 12,753 — 12,753 (10,577 ) — (10,577 ) (8,797 ) — (8,797 ) Other comprehensive income (loss) $ 9,084 $ 1,543 $ 10,627 $ (49,620 ) $ 16,415 $ (33,205 ) $ (26,710 ) $ 7,532 $ (19,178 ) (1) For the years ended December 31, 2017 , 2016 and 2015 , pre-tax amounts were reported in Net gains on sales of available-for-sale investment securities on the Consolidated Statement of Income. |
Regulatory Requirements and M47
Regulatory Requirements and Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of regulatory capital information | The following table presents the regulatory capital information of the Company and the Bank as of December 31, 2017 and 2016 : Basel III December 31, 2017 December 31, 2016 ($ in thousands) Actual Minimum Requirement Well Capitalized Requirement Actual Minimum Requirement Well Capitalized Requirement Amount Ratio Ratio Ratio Amount Ratio Ratio Ratio Total capital (to risk-weighted assets) Company $ 3,838,516 12.9 % 8.0 % 10.0 % $ 3,400,642 12.4 % 8.0 % 10.0 % East West Bank $ 3,679,261 12.4 % 8.0 % 10.0 % $ 3,371,885 12.3 % 8.0 % 10.0 % Tier 1 capital (to risk-weighted assets) Company $ 3,390,070 11.4 % 6.0 % 8.0 % $ 2,976,002 10.9 % 6.0 % 8.0 % East West Bank $ 3,378,815 11.4 % 6.0 % 8.0 % $ 3,095,245 11.3 % 6.0 % 8.0 % CET1 capital (to risk-weighted assets) Company $ 3,390,070 11.4 % 4.5 % 6.5 % $ 2,976,002 10.9 % 4.5 % 6.5 % East West Bank $ 3,378,815 11.4 % 4.5 % 6.5 % $ 3,095,245 11.3 % 4.5 % 6.5 % Tier 1 leverage capital (to adjusted average assets) Company $ 3,390,070 9.2 % 4.0 % 5.0 % $ 2,976,002 8.7 % 4.0 % 5.0 % East West Bank $ 3,378,815 9.2 % 4.0 % 5.0 % $ 3,095,245 9.1 % 4.0 % 5.0 % Risk-weighted assets Company $ 29,669,251 N/A N/A N/A $ 27,357,753 N/A N/A N/A East West Bank $ 29,643,711 N/A N/A N/A $ 27,310,540 N/A N/A N/A Adjusted quarterly average total assets (1) Company $ 37,307,975 N/A N/A N/A $ 34,209,827 N/A N/A N/A East West Bank $ 37,283,273 N/A N/A N/A $ 34,163,667 N/A N/A N/A (1) Reflects adjusted average total assets for the years ended December 31, 2017 and 2016 . N/A — Not applicable |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of operating results and key financial measures by operating segments | The following tables present the operating results and other key financial measures for the individual operating segments as of and for the years ended December 31, 2017 , 2016 and 2015 : ($ in thousands) Retail Commercial Other Total Year ended December 31, 2017: Interest income $ 364,906 $ 844,303 $ 115,910 $ 1,325,119 Charge for funds used (142,619 ) (326,902 ) (64,256 ) (533,777 ) Interest spread on funds used 222,287 517,401 51,654 791,342 Interest expense (76,770 ) (24,603 ) (38,677 ) (140,050 ) Credit on funds provided 445,304 61,019 27,454 533,777 Interest spread on funds provided 368,534 36,416 (11,223 ) 393,727 Net interest income before provision for credit losses $ 590,821 $ 553,817 $ 40,431 $ 1,185,069 Provision for credit losses $ 1,812 $ 44,454 $ — $ 46,266 Noninterest income $ 55,093 $ 110,104 $ 93,209 $ 258,406 Noninterest expense $ 320,287 $ 193,176 $ 148,646 $ 662,109 Segment income (loss) before income taxes $ 323,815 $ 426,291 $ (15,006 ) $ 735,100 Segment income after income taxes $ 190,404 $ 251,834 $ 63,386 $ 505,624 As of December 31, 2017: Segment assets $ 9,316,587 $ 21,431,472 $ 6,402,190 $ 37,150,249 ($ in thousands) Retail Commercial Other Total Year ended December 31, 2016: Interest income $ 315,146 $ 726,013 $ 96,322 $ 1,137,481 Charge for funds used (95,970 ) (216,849 ) (47,646 ) (360,465 ) Interest spread on funds used 219,176 509,164 48,676 777,016 Interest expense (60,180 ) (16,892 ) (27,771 ) (104,843 ) Credit on funds provided 300,446 38,636 21,383 360,465 Interest spread on funds provided 240,266 21,744 (6,388 ) 255,622 Net interest income before (reversal of) provision for credit losses $ 459,442 $ 530,908 $ 42,288 $ 1,032,638 (Reversal of) provision for credit losses $ (4,356 ) $ 31,835 $ — $ 27,479 Noninterest income $ 51,435 $ 96,010 $ 35,473 $ 182,918 Noninterest expense $ 306,570 $ 172,259 $ 137,060 $ 615,889 Segment income (loss) before income taxes $ 208,663 $ 422,824 $ (59,299 ) $ 572,188 Segment income after income taxes $ 122,256 $ 248,474 $ 60,947 $ 431,677 As of December 31, 2016: Segment assets $ 7,821,610 $ 19,128,510 $ 7,838,720 $ 34,788,840 ($ in thousands) Retail Commercial Other Total Year ended December 31, 2015: Interest income $ 331,755 $ 654,966 $ 67,094 $ 1,053,815 Charge for funds used (86,769 ) (163,601 ) (66,773 ) (317,143 ) Interest spread on funds used 244,986 491,365 321 736,672 Interest expense (53,088 ) (18,025 ) (32,263 ) (103,376 ) Credit on funds provided 261,117 36,251 19,775 317,143 Interest spread on funds provided 208,029 18,226 (12,488 ) 213,767 Net interest income (loss) before (reversal of) provision for credit losses $ 453,015 $ 509,591 $ (12,167 ) $ 950,439 (Reversal of) provision for credit losses $ (5,835 ) $ 20,052 $ — $ 14,217 Noninterest income $ 46,265 $ 71,867 $ 65,251 $ 183,383 Noninterest expense $ 276,144 $ 159,987 $ 104,753 $ 540,884 Segment income (loss) before income taxes $ 228,971 $ 401,419 $ (51,669 ) $ 578,721 Segment income after income taxes $ 134,383 $ 236,459 $ 13,835 $ 384,677 As of December 31, 2015: Segment assets $ 7,095,737 $ 17,923,319 $ 7,331,866 $ 32,350,922 |
Parent Company Condensed Fina49
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | The following tables present the Parent Company-only condensed financial statements: CONDENSED BALANCE SHEET ($ in thousands, except shares) December 31, 2017 2016 ASSETS Cash placed with subsidiary bank $ 159,566 $ 39,264 Available-for-sale investment securities, at fair value — 9,338 Investments in subsidiaries: Bank 3,830,696 3,546,984 Nonbank 3,664 5,675 Investments in tax credit investments, net 25,511 32,245 Other assets 7,062 4,812 TOTAL $ 4,026,499 $ 3,638,318 LIABILITIES Long-term debt $ 171,577 $ 186,327 Other liabilities 12,971 24,250 Total liabilities 184,548 210,577 STOCKHOLDERS’ EQUITY Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued in 2017 and 2016, respectively 165 164 Additional paid-in capital 1,755,330 1,727,434 Retained earnings 2,576,302 2,187,676 Treasury stock, at cost — 20,671,710 shares in 2017 and 20,436,621 shares in 2016 (452,327 ) (439,387 ) Accumulated other comprehensive loss, net of tax (37,519 ) (48,146 ) Total stockholders’ equity 3,841,951 3,427,741 TOTAL $ 4,026,499 $ 3,638,318 |
Condensed Statement of Income | CONDENSED STATEMENT OF INCOME ($ in thousands) Year Ended December 31, 2017 2016 2015 Dividends from subsidiaries: Bank $ 255,000 $ 100,000 $ — Nonbank 4,118 107 88 Other income 721 610 625 Total income 259,839 100,717 713 Interest expense 5,429 5,017 4,636 Compensation and employee benefits 5,065 5,001 5,350 Amortization of tax credit and other investments 5,908 13,851 22,466 Other expense 1,257 1,218 2,399 Total expense 17,659 25,087 34,851 Income (loss) before income tax benefit and equity in undistributed income of subsidiaries 242,180 75,630 (34,138 ) Income tax benefit 18,182 26,041 30,849 Undistributed earnings of subsidiaries, primarily bank 245,262 330,006 387,966 Net income $ 505,624 $ 431,677 $ 384,677 |
Condensed Statement of Cash Flows | CONDENSED STATEMENT OF CASH FLOWS ($ in thousands) Year Ended December 31, 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 505,624 $ 431,677 $ 384,677 Adjustments to reconcile net income to net cash provided by operating activities: Undistributed earnings of subsidiaries, principally bank (245,262 ) (330,006 ) (387,966 ) Amortization expenses 6,158 14,094 22,870 Deferred income tax expense 940 6,349 17,555 Gains on sales of available-for-sale investment securities (326 ) — (20 ) Net change in other assets (3,341 ) 39,929 (42,292 ) Net change in other liabilities (560 ) 794 (15,887 ) Net cash provided by (used in) operating activities 263,233 162,837 (21,063 ) CASH FLOWS FROM INVESTING ACTIVITIES Net increase in investments in tax credit and other investments, net (9,777 ) (6,554 ) (35,633 ) Purchases of available-for-sale investment securities (9,000 ) — — Proceeds from the sale of available-for-sale investment securities 18,326 — 20 Net cash used in investing activities (451 ) (6,554 ) (35,613 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of common stock pursuant to various stock compensation plans and agreements 2,280 2,081 2,835 Payments for: Repayment of long-term debt (15,000 ) (20,000 ) (20,000 ) Repurchase of vested shares due to employee tax liability (12,940 ) (3,225 ) (5,964 ) Cash dividends on common stock (116,820 ) (115,828 ) (115,641 ) Other net financing activities — 1,055 3,291 Net cash used in financing activities (142,480 ) (135,917 ) (135,479 ) Net increase (decrease) in cash and cash equivalents 120,302 20,366 (192,155 ) Cash and cash equivalents, beginning of year 39,264 18,898 211,053 Cash and cash equivalents, end of year $ 159,566 $ 39,264 $ 18,898 |
Quarterly Financial Informati50
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information (unaudited) | Quarters Ended ($ and shares in thousands, except per share data) December 31, September 30, June 30, March 31, 2017 Interest and dividend income $ 359,765 $ 339,910 $ 322,775 $ 302,669 Interest expense 40,064 36,755 32,684 30,547 Net interest income before provision for credit losses 319,701 303,155 290,091 272,122 Provision for credit losses 15,517 12,996 10,685 7,068 Net interest income after provision for credit losses 304,184 290,159 279,406 265,054 Noninterest income 45,359 49,624 47,400 116,023 Noninterest expense 175,416 164,499 169,121 153,073 Income before income taxes 174,127 175,284 157,685 228,004 Income tax expense 89,229 42,624 39,355 58,268 Net income $ 84,898 $ 132,660 $ 118,330 $ 169,736 EPS - Basic $ 0.59 $ 0.92 $ 0.82 $ 1.18 - Diluted $ 0.58 $ 0.91 $ 0.81 $ 1.16 Weighted-average number of shares outstanding - Basic 144,542 144,498 144,485 144,249 - Diluted 146,030 145,882 145,740 145,732 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 Quarters Ended ($ and shares in thousands, except per share data) December 31, September 30, June 30, March 31, 2016 Interest and dividend income $ 302,127 $ 280,317 $ 278,865 $ 276,172 Interest expense 29,425 26,169 25,281 23,968 Net interest income before provision for credit losses 272,702 254,148 253,584 252,204 Provision for credit losses 10,461 9,525 6,053 1,440 Net interest income after provision for credit losses 262,241 244,623 247,531 250,764 Noninterest income 48,800 49,341 44,264 40,513 Noninterest expense 149,904 170,500 148,879 146,606 Income before income taxes 161,137 123,464 142,916 144,671 Income tax expense 50,403 13,321 39,632 37,155 Net income $ 110,734 $ 110,143 $ 103,284 $ 107,516 EPS - Basic $ 0.77 $ 0.76 $ 0.72 $ 0.75 - Diluted $ 0.76 $ 0.76 $ 0.71 $ 0.74 Weighted-average number of shares outstanding - Basic 144,166 144,122 144,101 143,958 - Diluted 145,428 145,238 145,078 144,803 Cash dividends declared per common share $ 0.20 $ 0.20 $ 0.20 $ 0.20 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Nature of Operations and Principles of Consolidation) (Details) | Dec. 31, 2017locationtrust |
Accounting Policies [Abstract] | |
Number of banking locations | location | 130 |
Principles of Consolidation | |
Number of wholly owned subsidiaries that are statutory business trusts | trust | 6 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies (Premises and Equipment, net) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings and building improvements | |
Premises and equipment | |
Estimated useful life | 25 years |
Furniture, fixtures and equipment | Minimum | |
Premises and equipment | |
Estimated useful life | 3 years |
Furniture, fixtures and equipment | Maximum | |
Premises and equipment | |
Estimated useful life | 7 years |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - Customer Relationships | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Goodwill and other intangible assets | |
Projected useful life | 7 years |
Maximum | |
Goodwill and other intangible assets | |
Projected useful life | 15 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Stock-Based Compensation) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Stock Options | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock Options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
RSAs | Ratably | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
RSAs | Cliff | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
RSAs | Fourth year of employment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 50.00% |
RSAs | Fifth year of employment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 50.00% |
RSAs | Fifth year of employment | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting rights (as a percent) | 50.00% |
RSUs | Ratably | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
RSUs | Cliff | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
RSUs | Cliff | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 5 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (New Accounting Pronouncements Adopted) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Income tax benefits due to ASU 2016-09 | $ 4.8 |
Dispositions and Held-for-Sale
Dispositions and Held-for-Sale (Dispositions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sale Leaseback Transaction [Line Items] | |||||
Proceeds from sale of business | $ 4,300 | ||||
Net gain on sale of business | $ 3,800 | $ 3,807 | $ 0 | $ 0 | |
Impact from sale on diluted EPS (in dollars per share) | $ 0.02 | ||||
Commercial Property In San Francisco | |||||
Sale Leaseback Transaction [Line Items] | |||||
Sales price | $ 120,600 | ||||
Net book value | 31,600 | ||||
Pre-tax profit from sale | 85,400 | ||||
Selling costs | 3,600 | ||||
Current period gain recognized | 71,700 | ||||
Deferred gain | $ 13,700 | ||||
Impact from sale on diluted EPS (in dollars per share) | $ 0.28 |
Dispositions and Held-for-Sal57
Dispositions and Held-for-Sale (Held-for-Sale) (Details) $ in Thousands | Dec. 31, 2017USD ($) | Nov. 11, 2017banking_branch | Dec. 31, 2016USD ($) |
Schedule Of Assets Held-For-Sale [Line Items] | |||
Branch assets held-for-sale | $ 91,318 | $ 0 | |
Branch liability held-for-sale | 605,111 | $ 0 | |
Loans held-for-sale | |||
Schedule Of Assets Held-For-Sale [Line Items] | |||
Branch assets held-for-sale | 78,100 | ||
Premises and equipment held-for-sale | |||
Schedule Of Assets Held-For-Sale [Line Items] | |||
Branch assets held-for-sale | $ 8,000 | ||
California | |||
Schedule Of Assets Held-For-Sale [Line Items] | |||
Number of branches to be sold | banking_branch | 8 |
Fair Value Measurement and Fa58
Fair Value Measurement and Fair Value of Financial Instruments (Financial Assets and Liabilities Measurement on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investment securities available-for-sale | ||
Available-for-sale investment securities | $ 3,016,752 | $ 3,335,795 |
Derivative | ||
Derivative assets | 66,146 | 83,780 |
Derivative liabilities | (74,935) | (82,323) |
Transfer of security, from held-to-maturity, to available-for-sale | 115,600 | |
U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 640,280 | 720,479 |
U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 203,392 | 274,866 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 318,957 | 266,799 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 1,190,271 | 1,258,747 |
Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 99,982 | 147,654 |
Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,117 | 11,477 |
Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 37,003 | 222,377 |
Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,173 | |
Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 486,408 | 383,894 |
Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 31,342 | 40,329 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 661,015 | 751,470 |
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency forward contracts | ||
Derivative | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps on certificates of deposit | ||
Derivative | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Credit risk participation agreements (“RPAs”) | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Warrants | ||
Derivative | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 640,280 | 720,479 |
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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 20,735 | 30,991 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 2,355,737 | 2,584,325 |
Derivative | ||
Derivative assets | 65,467 | 83,780 |
Derivative liabilities | (74,935) | (82,323) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign currency forward contracts | ||
Derivative | ||
Derivative assets | 4,325 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps on certificates of deposit | ||
Derivative | ||
Derivative liabilities | (6,799) | (5,976) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 58,633 | 67,578 |
Derivative liabilities | (57,958) | (65,131) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets | 5,840 | 11,874 |
Derivative liabilities | (10,170) | (11,213) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Credit risk participation agreements (“RPAs”) | ||
Derivative | ||
Derivative assets | 1 | 3 |
Derivative liabilities | (8) | (3) |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Warrants | ||
Derivative | ||
Derivative assets | 993 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 203,392 | 274,866 |
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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 318,957 | 266,799 |
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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 1,190,271 | 1,258,747 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 99,982 | 147,654 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,117 | 11,477 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 37,003 | 222,377 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,173 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 486,408 | 383,894 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 10,607 | 9,338 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Derivative | ||
Derivative assets | 679 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency forward contracts | ||
Derivative | ||
Derivative assets | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps on certificates of deposit | ||
Derivative | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign exchange contracts | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Credit risk participation agreements (“RPAs”) | ||
Derivative | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Warrants | ||
Derivative | ||
Derivative assets | 679 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 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 | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value Measurements | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 3,016,752 | 3,335,795 |
Derivative | ||
Derivative assets | 66,146 | 83,780 |
Derivative liabilities | (74,935) | (82,323) |
Fair Value, Measurements, Recurring | Fair Value Measurements | Foreign currency forward contracts | ||
Derivative | ||
Derivative assets | 4,325 | |
Fair Value, Measurements, Recurring | Fair Value Measurements | Interest rate swaps on certificates of deposit | ||
Derivative | ||
Derivative liabilities | (6,799) | (5,976) |
Fair Value, Measurements, Recurring | Fair Value Measurements | Interest rate swaps and options | ||
Derivative | ||
Derivative assets | 58,633 | 67,578 |
Derivative liabilities | (57,958) | (65,131) |
Fair Value, Measurements, Recurring | Fair Value Measurements | Foreign exchange contracts | ||
Derivative | ||
Derivative assets | 5,840 | 11,874 |
Derivative liabilities | (10,170) | (11,213) |
Fair Value, Measurements, Recurring | Fair Value Measurements | Credit risk participation agreements (“RPAs”) | ||
Derivative | ||
Derivative assets | 1 | 3 |
Derivative liabilities | (8) | (3) |
Fair Value, Measurements, Recurring | Fair Value Measurements | Warrants | ||
Derivative | ||
Derivative assets | 1,672 | |
Fair Value, Measurements, Recurring | Fair Value Measurements | U.S. Treasury securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 640,280 | 720,479 |
Fair Value, Measurements, Recurring | Fair Value Measurements | U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 203,392 | 274,866 |
Fair Value, Measurements, Recurring | Fair Value Measurements | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 318,957 | 266,799 |
Fair Value, Measurements, Recurring | Fair Value Measurements | U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 1,190,271 | 1,258,747 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Municipal securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 99,982 | 147,654 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Non-agency residential mortgage-backed securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,117 | 11,477 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Corporate debt securities | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 37,003 | 222,377 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Corporate debt securities | Non-investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 9,173 | |
Fair Value, Measurements, Recurring | Fair Value Measurements | Foreign bonds | Investment grade | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | 486,408 | 383,894 |
Fair Value, Measurements, Recurring | Fair Value Measurements | Other securities | ||
Investment securities available-for-sale | ||
Available-for-sale investment securities | $ 31,342 | $ 40,329 |
Fair Value Measurement and Fa59
Fair Value Measurement and Fair Value of Financial Instruments (Reconciliation of Assets and Liabilities Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring - Significant Unobservable Inputs (Level 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Reconciliation of the beginning and ending balances for major asset categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||
Beginning balance | $ 0 | ||
Purchases, issues, sales, settlements: | |||
Liabilities measured using significant unobservable inputs on a recurring basis | $ 0 | ||
Warrants | |||
Reconciliation of the beginning and ending balances for major liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||
Beginning balance | 0 | ||
Total gains (losses) for the period: | |||
Included in earnings | 0 | ||
Included in other comprehensive income | 0 | ||
Purchases, issues, sales, settlements: | |||
Issuances | 679,000 | ||
Sales | 0 | ||
Settlements | 0 | ||
Transfers out of Level 3 | 0 | ||
Ending balance | 679,000 | ||
Embedded Derivative Liabilities | |||
Reconciliation of the beginning and ending balances for major liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||
Beginning balance | $ (3,392,000) | ||
Total gains (losses) for the period: | |||
Included in earnings | (20,000) | ||
Included in other comprehensive income | 0 | ||
Purchases, issues, sales, settlements: | |||
Issuances | 0 | ||
Sales | 0 | ||
Settlements | 3,412,000 | ||
Transfers out of Level 3 | 0 | ||
Ending balance | 0 | ||
Other securities | |||
Reconciliation of the beginning and ending balances for major asset categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||
Beginning balance | 0 | ||
Transfer from held-to-maturity investment security to available-for-sale investment security | 115,615,000 | ||
Total gains (losses) for the period: | |||
Included in earnings | 1,156,000 | ||
Included in other comprehensive income | 0 | ||
Purchases, issues, sales, settlements: | |||
Issuances | 0 | ||
Sales | 116,771,000 | ||
Settlements | 0 | ||
Transfers out of Level 3 | 0 | ||
Ending balance | $ 0 | ||
Corporate debt securities | Non-investment grade | |||
Reconciliation of the beginning and ending balances for major asset categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | |||
Beginning balance | 6,528,000 | ||
Total gains (losses) for the period: | |||
Included in earnings | 960,000 | ||
Included in other comprehensive income | 922,000 | ||
Purchases, issues, sales, settlements: | |||
Issuances | 0 | ||
Sales | 7,219,000 | ||
Settlements | 98,000 | ||
Transfers out of Level 3 | (1,093,000) | ||
Ending balance | $ 0 |
Fair Value Measurement and Fa60
Fair Value Measurement and Fair Value of Financial Instruments (Carrying Amounts of Assets Included on the Consolidated Balance Sheets Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-sale | $ 22,703 | |
Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | $ 38,188 | 70,154 |
Non-PCI impaired loans | Commercial Lending | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 31,404 | 52,172 |
Non-PCI impaired loans | Commercial Lending | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 2,667 | 14,908 |
Non-PCI impaired loans | Commercial Lending | Construction and land | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 3,973 | |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 144 | 2,464 |
Non-PCI impaired loans | Consumer Lending | HELOCs | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 610 |
OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 9 | 345 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-sale | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | Commercial Lending | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | Commercial Lending | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | Commercial Lending | Construction and land | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-PCI impaired loans | Consumer Lending | HELOCs | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-sale | 22,703 | |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | Commercial Lending | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | Commercial Lending | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | Commercial Lending | Construction and land | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Non-PCI impaired loans | Consumer Lending | HELOCs | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Significant Other Observable Inputs (Level 2) | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Loans held-for-sale | 0 | |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 38,188 | 70,154 |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Commercial Lending | C&I | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 31,404 | 52,172 |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Commercial Lending | CRE | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 2,667 | 14,908 |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Commercial Lending | Construction and land | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 3,973 | |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 144 | 2,464 |
Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Consumer Lending | HELOCs | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
Impaired loans | 0 | 610 |
Significant Unobservable Inputs (Level 3) | OREO | ||
Fair Value, Assets Measured on a Nonrecurring Basis | ||
OREO | $ 9 | $ 345 |
Fair Value Measurement and Fa61
Fair Value Measurement and Fair Value of Financial Instruments (Fair Value Adjustments of Assets Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans held-for-sale | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | $ 61 | $ 5,600 | $ 3,000 |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (22,624) | (26,212) | (9,029) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Commercial Lending | C&I | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (19,703) | (27,106) | (5,612) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Commercial Lending | CRE | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (272) | 1,084 | (2,629) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Commercial Lending | Residential loan | Multifamily | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | 0 | 0 | (115) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Commercial Lending | Construction and land | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (147) | 0 | (118) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Consumer Lending | Residential loan | Single-family | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (11) | (224) | (496) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Consumer Lending | HELOCs | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | 0 | 34 | (59) |
Fair Value, Measurements, Nonrecurring | Non-PCI Impaired Loans | Consumer Lending | Other consumer | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (2,491) | 0 | 0 |
Fair Value, Measurements, Nonrecurring | OREO | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | (1) | (23) | (233) |
Fair Value, Measurements, Nonrecurring | Loans held-for-sale | |||
Fair Value, Assets Measured on a Nonrecurring Basis | |||
Fair value adjustment of assets | $ 0 | $ (5,565) | $ (1,991) |
Fair Value Measurement and Fa62
Fair Value Measurement and Fair Value of Financial Instruments (Quantitative Information for Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Quantitative information | ||
Derivative assets | $ 66,146 | $ 83,780 |
Available-for-sale investment securities | 3,016,752 | 3,335,795 |
Other securities | ||
Quantitative information | ||
Available-for-sale investment securities | 31,342 | 40,329 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Quantitative information | ||
Derivative assets | 679 | 0 |
Available-for-sale investment securities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Warrants | ||
Quantitative information | ||
Warrants | 679 | |
Derivative assets | $ 679 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Warrants | Black-Scholes option pricing model | Weighted Average | ||
Quantitative information | ||
Volatility | 44.00% | |
Liquidity discount | 47.00% | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other securities | ||
Quantitative information | ||
Available-for-sale investment securities | $ 0 | 0 |
Fair Value, Measurements, Nonrecurring | Non-PCI impaired loans | ||
Quantitative information | ||
Impaired loans | 38,188 | 70,154 |
Fair Value, Measurements, Nonrecurring | OREO | ||
Quantitative information | ||
OREO | 9 | 345 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | ||
Quantitative information | ||
Impaired loans | 38,188 | 70,154 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Discounted cash flows | ||
Quantitative information | ||
Impaired loans | $ 22,802 | $ 31,835 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Discounted cash flows | Minimum | ||
Quantitative information | ||
Discount | 4.00% | 4.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Discounted cash flows | Maximum | ||
Quantitative information | ||
Discount | 10.00% | 8.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Discounted cash flows | Weighted Average | ||
Quantitative information | ||
Discount | 6.00% | 5.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of collateral, discount | ||
Quantitative information | ||
Impaired loans | $ 3,207 | $ 18,417 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of collateral, discount | Minimum | ||
Quantitative information | ||
Discount | 20.00% | 0.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of collateral, discount | Maximum | ||
Quantitative information | ||
Discount | 32.00% | 75.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of collateral, discount | Weighted Average | ||
Quantitative information | ||
Discount | 29.00% | 35.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of collateral, contract value | ||
Quantitative information | ||
Impaired loans | $ 2,406 | $ 4,961 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of property | ||
Quantitative information | ||
Impaired loans | $ 9,773 | $ 14,941 |
Selling cost | 8.00% | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of property | Minimum | ||
Quantitative information | ||
Selling cost | 4.00% | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of property | Maximum | ||
Quantitative information | ||
Selling cost | 8.00% | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-PCI impaired loans | Fair value of property | Weighted Average | ||
Quantitative information | ||
Selling cost | 8.00% | 6.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | OREO | ||
Quantitative information | ||
OREO | $ 9 | $ 345 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | OREO | Fair value of property | ||
Quantitative information | ||
OREO | $ 9 | $ 345 |
Selling cost | 8.00% | 8.00% |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | OREO | Fair value of property | Weighted Average | ||
Quantitative information | ||
Selling cost | 8.00% | 8.00% |
Fair Value Measurement and Fa63
Fair Value Measurement and Fair Value of Financial Instruments (Carrying and Fair Values per the Fair Value Hierarchy of Certain Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||||
Cash and cash equivalents | $ 2,174,592 | $ 1,878,503 | $ 1,360,887 | $ 1,039,885 |
Interest-bearing deposits with banks | 398,422 | 323,148 | ||
Resale agreements | 1,050,000 | 2,000,000 | ||
Held-to-maturity investment security | 0 | 143,971 | ||
Restricted equity securities, at cost | 73,521 | 72,775 | ||
Loans held-for-sale | 85 | 23,076 | ||
Loans held-for-investment, net | 28,688,590 | 25,242,619 | ||
Branch assets held-for-sale | 91,318 | 0 | ||
Customer deposits: | ||||
Demand, checking, savings and money market deposits | 25,974,314 | 24,275,714 | ||
Time deposits | 5,640,749 | 5,615,269 | ||
Short-term borrowings | 0 | 60,050 | ||
Federal Home Loan Bank (“FHLB”) advances | 323,891 | 321,643 | ||
Repurchase agreements | 50,000 | 350,000 | ||
Long-term debt | 171,577 | 186,327 | ||
Carrying amount of repurchase agreements eligible for netting against resale agreements | 400,000 | 100,000 | ||
Gross repurchase agreements | 450,000 | 450,000 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,174,592 | 1,878,503 | ||
Interest-bearing deposits with banks | 398,422 | 323,148 | ||
Resale agreements | 1,050,000 | 2,000,000 | ||
Held-to-maturity investment security | 143,971 | |||
Restricted equity securities, at cost | 73,521 | 72,775 | ||
Loans held-for-sale | 85 | 23,076 | ||
Loans held-for-investment, net | 28,688,590 | 25,242,619 | ||
Branch assets held-for-sale | 91,318 | |||
Accrued interest receivable | 121,719 | 100,524 | ||
Customer deposits: | ||||
Demand, checking, savings and money market deposits | 25,974,314 | 24,275,714 | ||
Time deposits | 5,640,749 | 5,615,269 | ||
Branch liability held-for-sale | 605,111 | |||
Short-term borrowings | 60,050 | |||
Federal Home Loan Bank (“FHLB”) advances | 323,891 | 321,643 | ||
Repurchase agreements | 50,000 | 350,000 | ||
Long-term debt | 171,577 | 186,327 | ||
Accrued interest payable | 10,724 | 9,440 | ||
Fair Value Measurements | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,174,592 | 1,878,503 | ||
Interest-bearing deposits with banks | 398,422 | 323,148 | ||
Resale agreements | 1,035,158 | 1,980,457 | ||
Held-to-maturity investment security | 144,593 | |||
Restricted equity securities, at cost | 73,521 | 72,775 | ||
Loans held-for-sale | 85 | 23,076 | ||
Loans held-for-investment, net | 28,956,349 | 24,915,143 | ||
Branch assets held-for-sale | 94,245 | |||
Accrued interest receivable | 121,719 | 100,524 | ||
Customer deposits: | ||||
Demand, checking, savings and money market deposits | 25,974,314 | 24,275,714 | ||
Time deposits | 5,626,855 | 5,611,746 | ||
Branch liability held-for-sale | 643,937 | |||
Short-term borrowings | 60,050 | |||
Federal Home Loan Bank (“FHLB”) advances | 335,901 | 334,859 | ||
Repurchase agreements | 104,830 | 411,368 | ||
Long-term debt | 171,673 | 186,670 | ||
Accrued interest payable | 10,724 | 9,440 | ||
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Cash and cash equivalents | 2,174,592 | 1,878,503 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Resale agreements | 0 | 0 | ||
Held-to-maturity investment security | 0 | |||
Restricted equity securities, at cost | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Branch assets held-for-sale | 5,143 | |||
Accrued interest receivable | 0 | 0 | ||
Customer deposits: | ||||
Demand, checking, savings and money market deposits | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Branch liability held-for-sale | 0 | |||
Short-term borrowings | 0 | |||
Federal Home Loan Bank (“FHLB”) advances | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Fair Value Measurements | Significant Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Interest-bearing deposits with banks | 398,422 | 323,148 | ||
Resale agreements | 1,035,158 | 1,980,457 | ||
Held-to-maturity investment security | 0 | |||
Restricted equity securities, at cost | 73,521 | 72,775 | ||
Loans held-for-sale | 85 | 23,076 | ||
Loans held-for-investment, net | 0 | 0 | ||
Branch assets held-for-sale | 10,970 | |||
Accrued interest receivable | 121,719 | 100,524 | ||
Customer deposits: | ||||
Demand, checking, savings and money market deposits | 25,974,314 | 24,275,714 | ||
Time deposits | 5,626,855 | 5,611,746 | ||
Branch liability held-for-sale | 0 | |||
Short-term borrowings | 60,050 | |||
Federal Home Loan Bank (“FHLB”) advances | 335,901 | 334,859 | ||
Repurchase agreements | 104,830 | 411,368 | ||
Long-term debt | 171,673 | 186,670 | ||
Accrued interest payable | 10,724 | 9,440 | ||
Fair Value Measurements | Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Interest-bearing deposits with banks | 0 | 0 | ||
Resale agreements | 0 | 0 | ||
Held-to-maturity investment security | 144,593 | |||
Restricted equity securities, at cost | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Loans held-for-investment, net | 28,956,349 | 24,915,143 | ||
Branch assets held-for-sale | 78,132 | |||
Accrued interest receivable | 0 | 0 | ||
Customer deposits: | ||||
Demand, checking, savings and money market deposits | 0 | 0 | ||
Time deposits | 0 | 0 | ||
Branch liability held-for-sale | 643,937 | |||
Short-term borrowings | 0 | |||
Federal Home Loan Bank (“FHLB”) advances | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Accrued interest payable | $ 0 | $ 0 |
Fair Value Measurement and Fa64
Fair Value Measurement and Fair Value of Financial Instruments (Non-PCI Impaired Loans) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Non-PCI Impaired Loans | |
Fair Values of Derivative Instruments | |
Period for updated appraisals and evaluations | 12 months |
Securities Purchased under Re65
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Resale Agreements) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Resale agreements | ||
Total | $ 1,450,000 | $ 2,100,000 |
Weighted average interest rates | 2.43% | 1.84% |
Maturities in 2018 | $ 450,000 | |
Maturities in 2019 | 0 | |
Maturities in 2020 | 100,000 | |
Maturities in 2021 | 0 | |
Maturities in 2022 | 250,000 | |
Maturities thereafter | $ 650,000 |
Securities Purchased under Re66
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Repurchase Agreements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amount of securities sold under repurchase agreements | |||
Gross repurchase agreements | $ 450,000 | $ 450,000 | |
Weighted average interest rates (as a percent) | 3.65% | 3.15% | |
Repurchase agreements’ extinguishment costs | $ 0 | $ 0 | $ 21,818 |
Maturities in 2018 through 2022 | 150,000 | ||
Maturities in 2023 and thereafter | $ 300,000 | ||
Repurchase Agreements | |||
Amount of securities sold under repurchase agreements | |||
Repurchase agreements extinguished | $ 545,000 |
Securities Purchased under Re67
Securities Purchased under Resale Agreements and Sold under Repurchase Agreements (Balance Sheet Offsetting) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Gross Amounts of Recognized Assets | $ 1,450,000 | $ 2,100,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | (400,000) | (100,000) |
Net Amounts of Assets Presented on the Consolidated Balance Sheet | 1,050,000 | 2,000,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||
Financial Instruments | 0 | (150,000) |
Collateral Received | (1,045,696) | (1,839,120) |
Net Amount | 4,304 | 10,880 |
Liabilities | ||
Gross Amounts of Recognized Liabilities | 450,000 | 450,000 |
Gross Amounts Offset on the Consolidated Balance Sheet | (400,000) | (100,000) |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheet | 50,000 | 350,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheet | ||
Financial Instruments | 0 | (150,000) |
Collateral Pledged | (50,000) | (200,000) |
Net Amount | $ 0 | $ 0 |
Securities (Schedule of Availab
Securities (Schedule of Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 0 | $ 143,971 |
Held-to-maturity investment security, at fair value | 0 | 144,593 |
Transfer of security, from held-to-maturity, to available-for-sale | 115,600 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,070,067 | 3,385,441 |
Gross Unrealized Gains | 5,013 | 6,695 |
Gross Unrealized Losses | (58,328) | (56,341) |
Available-for-sale investment securities, at fair value | 3,016,752 | 3,335,795 |
Marketable Securities [Abstract] | ||
Amortized Cost | 3,070,067 | 3,529,412 |
Gross Unrealized Gains | 5,013 | 7,317 |
Gross Unrealized Losses | (58,328) | (56,341) |
Marketable securities, at fair Value | 3,016,752 | 3,480,388 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 651,395 | 730,287 |
Gross Unrealized Gains | 0 | 21 |
Gross Unrealized Losses | (11,115) | (9,829) |
Available-for-sale investment securities, at fair value | 640,280 | 720,479 |
U.S. government agency and U.S. government sponsored enterprise debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 206,815 | 277,891 |
Gross Unrealized Gains | 62 | 224 |
Gross Unrealized Losses | (3,485) | (3,249) |
Available-for-sale investment securities, at fair value | 203,392 | 274,866 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 328,348 | 272,672 |
Gross Unrealized Gains | 141 | 345 |
Gross Unrealized Losses | (9,532) | (6,218) |
Available-for-sale investment securities, at fair value | 318,957 | 266,799 |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,199,869 | 1,266,372 |
Gross Unrealized Gains | 3,964 | 3,924 |
Gross Unrealized Losses | (13,562) | (11,549) |
Available-for-sale investment securities, at fair value | 1,190,271 | 1,258,747 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 99,636 | 148,302 |
Gross Unrealized Gains | 655 | 1,252 |
Gross Unrealized Losses | (309) | (1,900) |
Available-for-sale investment securities, at fair value | 99,982 | 147,654 |
Non-agency residential mortgage-backed securities | Investment grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,136 | 11,592 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | (22) | (115) |
Available-for-sale investment securities, at fair value | 9,117 | 11,477 |
Corporate debt securities | Investment grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 37,585 | 222,190 |
Gross Unrealized Gains | 164 | 562 |
Gross Unrealized Losses | (746) | (375) |
Available-for-sale investment securities, at fair value | 37,003 | 222,377 |
Corporate debt securities | Non-investment grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,191 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1,018) | |
Available-for-sale investment securities, at fair value | 9,173 | |
Foreign bonds | Investment grade | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 505,396 | 405,443 |
Gross Unrealized Gains | 24 | 30 |
Gross Unrealized Losses | (19,012) | (21,579) |
Available-for-sale investment securities, at fair value | 486,408 | 383,894 |
Foreign bonds | Investment grade | Multilateral development bank | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investment securities, at fair value | 456,100 | 353,600 |
Other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 31,887 | 40,501 |
Gross Unrealized Gains | 0 | 337 |
Gross Unrealized Losses | (545) | (509) |
Available-for-sale investment securities, at fair value | 31,342 | 40,329 |
Non-agency commercial mortgage-backed security | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 0 | 143,971 |
Gross Unrealized Gains | 0 | 622 |
Gross Unrealized Losses | 0 | 0 |
Held-to-maturity investment security, at fair value | $ 0 | $ 144,593 |
Securities (Continuous Unrealiz
Securities (Continuous Unrealized Losses) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) | |
Fair Value | |||
Less Than 12 Months | $ 942,845,000 | $ 2,162,896,000 | |
12 Months or More | 1,483,868,000 | 253,038,000 | |
Total | 2,426,713,000 | 2,415,934,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (9,919,000) | (51,760,000) | |
12 Months or More | (48,409,000) | (4,581,000) | |
Total | (58,328,000) | (56,341,000) | |
Impairment loss on available-for-sale securities | $ 0 | $ 0 | $ 0 |
Number of securities in an unrealized loss position | security | 165 | 170 | |
Fair Value | |||
Less Than 12 Months | $ 942,845,000 | $ 2,162,896,000 | |
12 Months or More | 1,483,868,000 | 253,038,000 | |
Total | 2,426,713,000 | 2,415,934,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (9,919,000) | (51,760,000) | |
12 Months or More | (48,409,000) | (4,581,000) | |
Total | (58,328,000) | (56,341,000) | |
U.S. Treasury securities | |||
Fair Value | |||
Less Than 12 Months | 168,061,000 | 670,268,000 | |
12 Months or More | 472,219,000 | 0 | |
Total | 640,280,000 | 670,268,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (1,005,000) | (9,829,000) | |
12 Months or More | (10,110,000) | 0 | |
Total | $ (11,115,000) | $ (9,829,000) | |
Number of securities in an unrealized loss position | security | 25 | 26 | |
U.S. government agency and U.S. government sponsored enterprise debt securities | |||
Fair Value | |||
Less Than 12 Months | $ 99,935,000 | $ 203,901,000 | |
12 Months or More | 85,281,000 | 0 | |
Total | 185,216,000 | 203,901,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (623,000) | (3,249,000) | |
12 Months or More | (2,862,000) | 0 | |
Total | $ (3,485,000) | $ (3,249,000) | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities | |||
Gross Unrealized Losses | |||
Number of securities in an unrealized loss position | security | 98 | 82 | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Commercial mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | $ 113,775,000 | $ 202,106,000 | |
12 Months or More | 191,827,000 | 29,201,000 | |
Total | 305,602,000 | 231,307,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (2,071,000) | (5,452,000) | |
12 Months or More | (7,461,000) | (766,000) | |
Total | (9,532,000) | (6,218,000) | |
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities - Residential mortgage-backed securities | |||
Fair Value | |||
Less Than 12 Months | 413,621,000 | 629,324,000 | |
12 Months or More | 361,809,000 | 119,603,000 | |
Total | 775,430,000 | 748,927,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (4,205,000) | (9,594,000) | |
12 Months or More | (9,357,000) | (1,955,000) | |
Total | (13,562,000) | (11,549,000) | |
Municipal securities | |||
Fair Value | |||
Less Than 12 Months | 8,490,000 | 57,655,000 | |
12 Months or More | 8,588,000 | 2,692,000 | |
Total | 17,078,000 | 60,347,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (123,000) | (1,699,000) | |
12 Months or More | (186,000) | (201,000) | |
Total | (309,000) | (1,900,000) | |
Non-agency residential mortgage-backed securities | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 4,599,000 | 5,033,000 | |
12 Months or More | 0 | 6,444,000 | |
Total | 4,599,000 | 11,477,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (22,000) | (101,000) | |
12 Months or More | 0 | (14,000) | |
Total | (22,000) | (115,000) | |
Corporate debt securities | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | 11,905,000 | 71,667,000 | |
Total | 11,905,000 | 71,667,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | 0 | 0 | |
12 Months or More | (746,000) | (375,000) | |
Total | (746,000) | (375,000) | |
Corporate debt securities | Non-investment grade | |||
Fair Value | |||
Less Than 12 Months | 0 | ||
12 Months or More | 9,173,000 | ||
Total | 9,173,000 | ||
Gross Unrealized Losses | |||
Less Than 12 Months | 0 | ||
12 Months or More | (1,018,000) | ||
Total | (1,018,000) | ||
Foreign bonds | Investment grade | |||
Fair Value | |||
Less Than 12 Months | 103,149,000 | 363,618,000 | |
12 Months or More | 352,239,000 | 14,258,000 | |
Total | 455,388,000 | 377,876,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (1,325,000) | (21,327,000) | |
12 Months or More | (17,687,000) | (252,000) | |
Total | $ (19,012,000) | $ (21,579,000) | |
Number of securities in an unrealized loss position | security | 16 | 13 | |
Other securities | |||
Fair Value | |||
Less Than 12 Months | $ 31,215,000 | $ 30,991,000 | |
12 Months or More | 0 | 0 | |
Total | 31,215,000 | 30,991,000 | |
Gross Unrealized Losses | |||
Less Than 12 Months | (545,000) | (509,000) | |
12 Months or More | 0 | 0 | |
Total | (545,000) | (509,000) | |
Non-agency commercial mortgage-backed security | |||
Fair Value | |||
Less Than 12 Months | 0 | 0 | |
12 months or More | 0 | 0 | |
Total | 0 | 0 | |
Gross Unrealized Losses | |||
Less than 12 months | 0 | 0 | |
12 Months or More | 0 | 0 | |
Total | $ 0 | $ 0 |
Securities (Rollforward of OTTI
Securities (Rollforward of OTTI Credit Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gross realized gains | |||
Gross realized gains | $ 8,037,000 | $ 10,487,000 | $ 40,367,000 |
Corporate debt securities | Non-investment grade | |||
Gross realized gains | |||
Gross realized gains | 21,700,000 | ||
Investment securities available for sale | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Beginning balance | 0 | 0 | 112,338,000 |
Reduction for securities sold | 0 | 0 | (112,338,000) |
Ending balance | 0 | 0 | 0 |
Gross realized gains | |||
OTTI credit losses | 0 | 0 | 0 |
Previously recognized OTTI credit losses | $ 0 | $ 0 | $ 112,338,000 |
Securities (Realized Gains and
Securities (Realized Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 832,844 | $ 1,275,645 | $ 1,669,334 |
Gross realized gains | 8,037 | 10,487 | 40,367 |
Gross realized losses | 0 | 125 | 0 |
Related tax expense | $ 3,380 | $ 4,357 | $ 16,974 |
Securities (Scheduled Maturitie
Securities (Scheduled Maturities of Investment Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due within one year | $ 602,560 | |
Due after one year through five years | 772,349 | |
Due after five years through ten years | 220,298 | |
Due after ten years | 1,474,860 | |
Total available-for-sale investment securities | 3,070,067 | |
Fair Value | ||
Due within one year | 583,126 | |
Due after one year through five years | 759,970 | |
Due after five years through ten years | 216,390 | |
Due after ten years | 1,457,266 | |
Total available-for-sale investment securities | 3,016,752 | $ 3,335,795 |
Fair value of available-for-sale investment securities pledged | $ 534,300 | $ 767,400 |
Securities (Restricted Equity S
Securities (Restricted Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Federal Reserve Bank stock | $ 56,271 | $ 55,525 |
FHLB stock | 17,250 | 17,250 |
Total | $ 73,521 | $ 72,775 |
Derivatives (Notional and Fair
Derivatives (Notional and Fair Values) (Details) $ in Thousands | Dec. 31, 2017USD ($)company | Dec. 31, 2016USD ($) |
Fair Values of Derivative Instruments | ||
Derivative assets | $ 66,146 | $ 83,780 |
Derivative liabilities | 74,935 | 82,323 |
Derivative instruments designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 35,811 | 131,391 |
Derivative assets | 0 | 4,325 |
Derivative liabilities | 6,799 | 5,976 |
Derivative instruments designated as hedging instruments | Interest rate swaps on certificates of deposit | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 35,811 | 48,365 |
Derivative assets | 0 | 0 |
Derivative liabilities | 6,799 | 5,976 |
Derivative instruments designated as hedging instruments | Foreign currency forward contracts | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 0 | 83,026 |
Derivative assets | 0 | 4,325 |
Derivative liabilities | 0 | 0 |
Derivative instruments not designated as hedging instruments | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 10,153,108 | 8,507,660 |
Derivative assets | 66,146 | 79,455 |
Derivative liabilities | 68,136 | 76,347 |
Derivative instruments not designated as hedging instruments | Interest rate swaps and options | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 9,333,860 | 7,668,482 |
Derivative assets | 58,633 | 67,578 |
Derivative liabilities | 57,958 | 65,131 |
Derivative instruments not designated as hedging instruments | Foreign exchange contracts | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 770,215 | 767,764 |
Derivative assets | 5,840 | 11,874 |
Derivative liabilities | 10,170 | 11,213 |
Derivative instruments not designated as hedging instruments | Credit risk participation agreements (“RPAs”) | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 49,033 | 71,414 |
Derivative assets | 1 | 3 |
Derivative liabilities | 8 | 3 |
Derivative instruments not designated as hedging instruments | Warrants | ||
Fair Values of Derivative Instruments | ||
Notional Amount | 0 | 0 |
Derivative assets | 1,672 | 0 |
Derivative liabilities | 0 | $ 0 |
Derivative instruments not designated as hedging instruments | Public Companies | ||
Fair Values of Derivative Instruments | ||
Derivative assets | $ 993 | |
Number of companies in which warrants are held | company | 4 | |
Derivative instruments not designated as hedging instruments | Private Companies | ||
Fair Values of Derivative Instruments | ||
Derivative assets | $ 679 | |
Number of companies in which warrants are held | company | 23 |
Derivatives (Net Gains (Losses)
Derivatives (Net Gains (Losses) on Derivatives Designated as Hedges) (Details) - Interest Expense - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certificates of deposits | |||
Derivative [Line Items] | |||
Recognized on certificates of deposit | $ 2,271 | $ 157 | $ (3,190) |
Interest rate swaps on certificates of deposit | |||
Derivative [Line Items] | |||
Recognized on interest rate swaps | $ (2,734) | $ (794) | $ 3,452 |
Derivatives (Gains (Losses) in
Derivatives (Gains (Losses) in Foreign Currency Translation Adjustment) (Details) - Derivative instruments designated as hedging instruments - Net investment hedges - Foreign currency forward contracts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Losses) gains recognized in AOCI on net investment hedges (effective portion) | $ (648) | $ 2,908 | $ 1,485 |
(Losses) gains recognized in foreign exchange income (ineffective portion) | $ (1,953) | $ 1,124 | $ 880 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative liabilities | $ 74,935 | $ 82,323 | |
Net reductions to interest expense related to net settlements of derivatives | 1,000 | 3,000 | $ 3,600 |
Derivative assets | 66,146 | 83,780 | |
Collateral posted | 28,796 | 36,349 | |
Credit-Risk-Related Contingent Features | |||
Derivative [Line Items] | |||
Aggregate fair value of derivative instruments in net liability position | 6,300 | 7,100 | |
Collateral posted | 6,200 | 9,100 | |
Derivative instruments designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 35,811 | 131,391 | |
Derivative liabilities | 6,799 | 5,976 | |
Derivative assets | 0 | 4,325 | |
Derivative instruments designated as hedging instruments | Interest rate swaps on certificates of deposit | |||
Derivative [Line Items] | |||
Notional amount | 35,811 | 48,365 | |
Derivative liabilities | 6,799 | 5,976 | |
Derivative assets | 0 | 0 | |
Derivative instruments designated as hedging instruments | Foreign currency forward contracts | |||
Derivative [Line Items] | |||
Notional amount | 0 | 83,026 | |
Derivative liabilities | 0 | 0 | |
Derivative assets | 0 | 4,325 | |
Derivative instruments not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional amount | 10,153,108 | 8,507,660 | |
Derivative liabilities | 68,136 | 76,347 | |
Derivative assets | 66,146 | 79,455 | |
Derivative instruments not designated as hedging instruments | Public Companies | |||
Derivative [Line Items] | |||
Derivative assets | 993 | ||
Derivative instruments not designated as hedging instruments | Interest rate swaps and options | |||
Derivative [Line Items] | |||
Notional amount | 9,333,860 | 7,668,482 | |
Derivative liabilities | 57,958 | 65,131 | |
Derivative assets | 58,633 | 67,578 | |
Notional amount of derivative assets | 4,690,000 | 3,860,000 | |
Notional amount of derivative liabilities | 4,650,000 | 3,810,000 | |
Derivative instruments not designated as hedging instruments | Credit risk participation agreements (“RPAs”) | |||
Derivative [Line Items] | |||
Notional amount | 49,033 | 71,414 | |
Derivative liabilities | 8 | 3 | |
Derivative assets | $ 1 | $ 3 | |
Weighted average remaining maturity | 6 years | 3 years 8 months | |
Derivative instruments not designated as hedging instruments | Credit risk participation agreements (“RPAs”) | Long | |||
Derivative [Line Items] | |||
Notional amount | $ 35,200 | $ 48,300 | |
Derivative liabilities | 8 | 3 | |
Interest rate derivative exposure | 419 | 179 | |
Derivative instruments not designated as hedging instruments | Credit risk participation agreements (“RPAs”) | Short | |||
Derivative [Line Items] | |||
Notional amount | 13,800 | 23,100 | |
Derivative assets | $ 1 | 3 | |
Derivative instruments not designated as hedging instruments | Foreign exchange options | |||
Derivative [Line Items] | |||
Term of contract (in years) | 5 years | ||
Derivative instruments not designated as hedging instruments | Private Companies | |||
Derivative [Line Items] | |||
Derivative assets | $ 679 | ||
Derivative instruments not designated as hedging instruments | Warrants | |||
Derivative [Line Items] | |||
Notional amount | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Derivative assets | $ 1,672 | $ 0 |
Derivatives (Net Gains (Losse78
Derivatives (Net Gains (Losses) on Derivatives Not Designated as Hedging Instruments) (Details) - Derivative instruments not designated as hedging instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | $ 21,969 | $ 15,189 | $ 4,400 |
Interest rate swaps and options | Derivative fees and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | (1,772) | 2,557 | 65 |
Foreign exchange contracts | Foreign exchange income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | 22,076 | 12,632 | 4,235 |
Foreign exchange options | Foreign exchange income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | 0 | 0 | 236 |
Credit risk participation agreements (“RPAs”) | Derivative fees and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | (7) | 0 | 0 |
Warrants | Ancillary loan fees and other income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | 1,672 | 0 | 0 |
Embedded derivative liabilities | Other operating expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total net income (loss) | $ 0 | $ 0 | $ (136) |
Derivatives (Offsetting of Deri
Derivatives (Offsetting of Derivatives) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Gross Amounts Recognized | $ 66,146 | $ 83,780 |
Contracts Not Subject to Master Netting Arrangements, Gross Amounts of Recognized | 36,941 | 51,218 |
Contracts Subject to Master Netting Agreements, Gross Amounts of Recognized | 29,205 | 32,562 |
Contracts Subject to Master Netting Agreements, Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Contracts Subject to Master Netting Arrangements, Net Amounts Presented on the Consolidated Balance Sheets | 29,205 | 32,562 |
Contracts Subject to Master Netting Arrangements, Gross Amounts Not Offset on the Consolidated Balance Sheets | ||
Derivative Amounts | (18,955) | (20,991) |
Collateral Received | (9,839) | (10,687) |
Contracts Subject to Master Netting Arrangements, Net Amount | 411 | 884 |
Cash collateral received | 8,600 | 8,100 |
Liabilities | ||
Gross Amounts Recognized | 74,935 | 82,323 |
Contracts Not Subject to Master Netting Arrangements, Gross Amounts of Recognized | 26,732 | 24,097 |
Contracts Subject to Master Netting Agreements, Gross Amounts of Recognized | 48,203 | 58,226 |
Contracts Subject to Master Netting Agreements, Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Contracts Subject to Master Netting Arrangements, Net Amounts Presented on the Consolidated Balance Sheets | 48,203 | 58,226 |
Contracts Subject to Master Netting Arrangements, Gross Amounts Not Offset on the Consolidated Balance Sheets | ||
Derivative Amounts | (18,955) | (20,991) |
Collateral Posted | (28,796) | (36,349) |
Contracts Subject to Master Netting Arrangements, Net Amount | 452 | 886 |
Cash collateral posted | $ 10,700 | $ 170 |
Loans Receivable and Allowanc80
Loans Receivable and Allowance for Credit Losses (Composition of Non-PCI and PCI Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | $ 28,975,718 | $ 25,503,139 |
Allowance for loan losses | (287,128) | (260,520) |
Loans held-for-investment, net | 28,688,590 | 25,242,619 |
Commercial Lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 22,210,001 | 19,917,365 |
Commercial Lending | C&I | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 10,697,231 | 9,640,563 |
Commercial Lending | CRE | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 8,936,897 | 8,016,109 |
Commercial Lending | Residential loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,916,176 | 1,585,939 |
Commercial Lending | Construction and land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 659,697 | 674,754 |
Consumer Lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 6,765,717 | 5,585,774 |
Consumer Lending | Residential loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 4,646,289 | 3,509,779 |
Consumer Lending | HELOCs | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,782,924 | 1,760,776 |
Consumer Lending | Other consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 336,504 | 315,219 |
Non-PCI impaired loans | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 28,493,431 | 24,860,694 |
Allowance for loan losses | (287,070) | (260,402) |
Loans held-for-investment, net | 28,206,361 | 24,600,292 |
Unearned fees, premiums and discounts, net | (34,000) | 1,200 |
Non-PCI impaired loans | Commercial Lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 21,859,099 | 19,432,958 |
Non-PCI impaired loans | Commercial Lending | C&I | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 10,685,436 | 9,602,176 |
Non-PCI impaired loans | Commercial Lending | CRE | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 8,659,209 | 7,667,661 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,855,128 | 1,490,285 |
Non-PCI impaired loans | Commercial Lending | Construction and land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 659,326 | 672,836 |
Non-PCI impaired loans | Consumer Lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 6,634,332 | 5,427,736 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 4,528,911 | 3,370,669 |
Non-PCI impaired loans | Consumer Lending | HELOCs | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 1,768,917 | 1,741,852 |
Non-PCI impaired loans | Consumer Lending | Other consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 336,504 | 315,215 |
PCI Loans | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 482,287 | 642,445 |
Allowance for loan losses | (58) | (118) |
Loans held-for-investment, net | 482,229 | 642,327 |
Discount related to ASC 310-30 | 35,300 | 49,400 |
PCI Loans | Commercial Lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 350,902 | 484,407 |
PCI Loans | Commercial Lending | C&I | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 11,795 | 38,387 |
PCI Loans | Commercial Lending | CRE | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 277,688 | 348,448 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 61,048 | 95,654 |
PCI Loans | Commercial Lending | Construction and land | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 371 | 1,918 |
PCI Loans | Consumer Lending | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 131,385 | 158,038 |
PCI Loans | Consumer Lending | Residential loan | Single-family | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 117,378 | 139,110 |
PCI Loans | Consumer Lending | HELOCs | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | 14,007 | 18,924 |
PCI Loans | Consumer Lending | Other consumer | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Total loans held-for-investment | $ 0 | $ 4 |
Loans Receivable and Allowanc81
Loans Receivable and Allowance for Credit Losses (Composition of Non-PCI and PCI Loans- Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loans receivable pledged to secure borrowings and to provide additional borrowing capacity from the FHLB and the Federal Reserve Bank | $ 18,880,598 | $ 16,441,068 |
Residential | Minimum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, initial fixed periods | 1 year | |
Residential | Maximum | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Adjustable rate mortgage, initial fixed periods | 7 years | |
Consumer Lending | HELOCs | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | ||
Loan to value ratio | 60.00% |
Loans Receivable and Allowanc82
Loans Receivable and Allowance for Credit Losses (Credit Risk Ratings for Non-PCI Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | $ 28,975,718 | $ 25,503,139 |
Commercial Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 22,210,001 | 19,917,365 |
Commercial Lending | C&I | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 10,697,231 | 9,640,563 |
Commercial Lending | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,936,897 | 8,016,109 |
Commercial Lending | Residential loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,916,176 | 1,585,939 |
Commercial Lending | Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 659,697 | 674,754 |
Consumer Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 6,765,717 | 5,585,774 |
Consumer Lending | Residential loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 4,646,289 | 3,509,779 |
Consumer Lending | HELOCs | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,782,924 | 1,760,776 |
Consumer Lending | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 336,504 | 315,219 |
Non-PCI impaired loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 28,493,431 | 24,860,694 |
Non-PCI impaired loans | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 27,878,020 | 24,177,983 |
Non-PCI impaired loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 213,490 | 212,927 |
Non-PCI impaired loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 381,039 | 464,609 |
Non-PCI impaired loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 20,882 | 5,167 |
Non-PCI impaired loans | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 8 |
Non-PCI impaired loans | Commercial Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 21,859,099 | 19,432,958 |
Non-PCI impaired loans | Commercial Lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 21,308,550 | 18,793,563 |
Non-PCI impaired loans | Commercial Lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 184,975 | 195,984 |
Non-PCI impaired loans | Commercial Lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 344,692 | 438,236 |
Non-PCI impaired loans | Commercial Lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 20,882 | 5,167 |
Non-PCI impaired loans | Commercial Lending | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 8 |
Non-PCI impaired loans | Commercial Lending | C&I | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 10,685,436 | 9,602,176 |
Non-PCI impaired loans | Commercial Lending | C&I | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 10,369,516 | 9,194,701 |
Non-PCI impaired loans | Commercial Lending | C&I | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 114,769 | 164,711 |
Non-PCI impaired loans | Commercial Lending | C&I | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 180,269 | 237,599 |
Non-PCI impaired loans | Commercial Lending | C&I | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 20,882 | 5,157 |
Non-PCI impaired loans | Commercial Lending | C&I | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 8 |
Non-PCI impaired loans | Commercial Lending | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,659,209 | 7,667,661 |
Non-PCI impaired loans | Commercial Lending | CRE | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 8,484,635 | 7,476,804 |
Non-PCI impaired loans | Commercial Lending | CRE | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 65,616 | 29,005 |
Non-PCI impaired loans | Commercial Lending | CRE | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 108,958 | 161,852 |
Non-PCI impaired loans | Commercial Lending | CRE | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Commercial Lending | CRE | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,855,128 | 1,490,285 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,839,958 | 1,462,522 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 2,268 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 15,170 | 25,495 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Commercial Lending | Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 659,326 | 672,836 |
Non-PCI impaired loans | Commercial Lending | Construction and land | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 614,441 | 659,536 |
Non-PCI impaired loans | Commercial Lending | Construction and land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 4,590 | 0 |
Non-PCI impaired loans | Commercial Lending | Construction and land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 40,295 | 13,290 |
Non-PCI impaired loans | Commercial Lending | Construction and land | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 10 |
Non-PCI impaired loans | Commercial Lending | Construction and land | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 6,634,332 | 5,427,736 |
Non-PCI impaired loans | Consumer Lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 6,569,470 | 5,384,420 |
Non-PCI impaired loans | Consumer Lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 28,515 | 16,943 |
Non-PCI impaired loans | Consumer Lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 36,347 | 26,373 |
Non-PCI impaired loans | Consumer Lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 4,528,911 | 3,370,669 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 4,490,672 | 3,341,015 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 16,504 | 10,179 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 21,735 | 19,475 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | HELOCs | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,768,917 | 1,741,852 |
Non-PCI impaired loans | Consumer Lending | HELOCs | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,744,903 | 1,728,254 |
Non-PCI impaired loans | Consumer Lending | HELOCs | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 11,900 | 6,717 |
Non-PCI impaired loans | Consumer Lending | HELOCs | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 12,114 | 6,881 |
Non-PCI impaired loans | Consumer Lending | HELOCs | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | HELOCs | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 336,504 | 315,215 |
Non-PCI impaired loans | Consumer Lending | Other consumer | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 333,895 | 315,151 |
Non-PCI impaired loans | Consumer Lending | Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 111 | 47 |
Non-PCI impaired loans | Consumer Lending | Other consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 2,498 | 17 |
Non-PCI impaired loans | Consumer Lending | Other consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
Non-PCI impaired loans | Consumer Lending | Other consumer | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 482,287 | 642,445 |
PCI Loans | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 432,628 | 568,844 |
PCI Loans | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 2,131 | 5,566 |
PCI Loans | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 47,528 | 68,035 |
PCI Loans | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 350,902 | 484,407 |
PCI Loans | Commercial Lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 306,081 | 415,166 |
PCI Loans | Commercial Lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 588 | 4,011 |
PCI Loans | Commercial Lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 44,233 | 65,230 |
PCI Loans | Commercial Lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | C&I | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 11,795 | 38,387 |
PCI Loans | Commercial Lending | C&I | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 10,712 | 33,885 |
PCI Loans | Commercial Lending | C&I | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 57 | 772 |
PCI Loans | Commercial Lending | C&I | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,026 | 3,730 |
PCI Loans | Commercial Lending | C&I | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | C&I | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | CRE | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 277,688 | 348,448 |
PCI Loans | Commercial Lending | CRE | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 238,605 | 293,529 |
PCI Loans | Commercial Lending | CRE | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 531 | 3,239 |
PCI Loans | Commercial Lending | CRE | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 38,552 | 51,680 |
PCI Loans | Commercial Lending | CRE | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | CRE | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 61,048 | 95,654 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 56,720 | 86,190 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 4,328 | 9,464 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Residential loan | Multifamily | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Construction and land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 371 | 1,918 |
PCI Loans | Commercial Lending | Construction and land | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 44 | 1,562 |
PCI Loans | Commercial Lending | Construction and land | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Construction and land | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 327 | 356 |
PCI Loans | Commercial Lending | Construction and land | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Commercial Lending | Construction and land | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 131,385 | 158,038 |
PCI Loans | Consumer Lending | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 126,547 | 153,678 |
PCI Loans | Consumer Lending | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,543 | 1,555 |
PCI Loans | Consumer Lending | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 3,295 | 2,805 |
PCI Loans | Consumer Lending | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Residential loan | Single-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 117,378 | 139,110 |
PCI Loans | Consumer Lending | Residential loan | Single-family | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 113,905 | 136,245 |
PCI Loans | Consumer Lending | Residential loan | Single-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,543 | 1,239 |
PCI Loans | Consumer Lending | Residential loan | Single-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,930 | 1,626 |
PCI Loans | Consumer Lending | Residential loan | Single-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Residential loan | Single-family | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | HELOCs | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 14,007 | 18,924 |
PCI Loans | Consumer Lending | HELOCs | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 12,642 | 17,429 |
PCI Loans | Consumer Lending | HELOCs | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 316 |
PCI Loans | Consumer Lending | HELOCs | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 1,365 | 1,179 |
PCI Loans | Consumer Lending | HELOCs | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | HELOCs | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 4 |
PCI Loans | Consumer Lending | Other consumer | Pass/Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 4 |
PCI Loans | Consumer Lending | Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Other consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Other consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | 0 | 0 |
PCI Loans | Consumer Lending | Other consumer | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans held-for-investment | $ 0 | $ 0 |
Loans Receivable and Allowanc83
Loans Receivable and Allowance for Credit Losses (Aging Analysis on Non-PCI Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Nonaccrual and Past Due Loans | ||
Number of days beyond loan classified nonaccrual | 90 days | |
Total loans | $ 28,975,718 | $ 25,503,139 |
Commercial Lending | ||
Nonaccrual and Past Due Loans | ||
Total loans | 22,210,001 | 19,917,365 |
Commercial Lending | C&I | ||
Nonaccrual and Past Due Loans | ||
Total loans | 10,697,231 | 9,640,563 |
Commercial Lending | CRE | ||
Nonaccrual and Past Due Loans | ||
Total loans | 8,936,897 | 8,016,109 |
Commercial Lending | Residential loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total loans | 1,916,176 | 1,585,939 |
Commercial Lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total loans | 659,697 | 674,754 |
Consumer Lending | ||
Nonaccrual and Past Due Loans | ||
Total loans | 6,765,717 | 5,585,774 |
Consumer Lending | Residential loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total loans | 4,646,289 | 3,509,779 |
Consumer Lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total loans | 1,782,924 | 1,760,776 |
Consumer Lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total loans | 336,504 | 315,219 |
Non-PCI impaired loans | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 67,677 | 101,189 |
Total Nonaccrual Loans | 114,309 | 122,817 |
Current Accruing Loans | 28,311,445 | 24,636,688 |
Total loans | 28,493,431 | 24,860,694 |
Non-PCI impaired loans | Commercial Lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 40,544 | 76,963 |
Total Nonaccrual Loans | 101,889 | 116,473 |
Current Accruing Loans | 21,716,666 | 19,239,522 |
Total loans | 21,859,099 | 19,432,958 |
Non-PCI impaired loans | Commercial Lending | C&I | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 31,046 | 47,331 |
Total Nonaccrual Loans | 69,213 | 81,256 |
Current Accruing Loans | 10,585,177 | 9,473,589 |
Total loans | 10,685,436 | 9,602,176 |
Non-PCI impaired loans | Commercial Lending | CRE | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,880 | 20,313 |
Total Nonaccrual Loans | 26,986 | 26,907 |
Current Accruing Loans | 8,628,343 | 7,620,441 |
Total loans | 8,659,209 | 7,667,661 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 4,860 | 4,325 |
Total Nonaccrual Loans | 1,717 | 2,984 |
Current Accruing Loans | 1,848,551 | 1,482,976 |
Total loans | 1,855,128 | 1,490,285 |
Non-PCI impaired loans | Commercial Lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 758 | 4,994 |
Total Nonaccrual Loans | 3,973 | 5,326 |
Current Accruing Loans | 654,595 | 662,516 |
Total loans | 659,326 | 672,836 |
Non-PCI impaired loans | Consumer Lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 27,133 | 24,226 |
Total Nonaccrual Loans | 12,420 | 6,344 |
Current Accruing Loans | 6,594,779 | 5,397,166 |
Total loans | 6,634,332 | 5,427,736 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 18,624 | 17,671 |
Total Nonaccrual Loans | 5,923 | 4,214 |
Current Accruing Loans | 4,504,364 | 3,348,784 |
Total loans | 4,528,911 | 3,370,669 |
Non-PCI impaired loans | Consumer Lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 8,472 | 5,451 |
Total Nonaccrual Loans | 4,006 | 2,130 |
Current Accruing Loans | 1,756,439 | 1,734,271 |
Total loans | 1,768,917 | 1,741,852 |
Non-PCI impaired loans | Consumer Lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 37 | 1,104 |
Total Nonaccrual Loans | 2,491 | 0 |
Current Accruing Loans | 333,976 | 314,111 |
Total loans | 336,504 | 315,215 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 57,551 | 73,152 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Commercial Lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 39,982 | 60,230 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Commercial Lending | C&I | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 30,964 | 45,052 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Commercial Lending | CRE | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 3,414 | 6,233 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Commercial Lending | Residential loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 4,846 | 3,951 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Commercial Lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 758 | 4,994 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Consumer Lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 17,569 | 12,922 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Consumer Lending | Residential loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 13,269 | 9,595 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Consumer Lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 4,286 | 2,845 |
Non-PCI impaired loans | Accruing Loans 30-59 Days Past Due | Consumer Lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 14 | 482 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 10,126 | 28,037 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Commercial Lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 562 | 16,733 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Commercial Lending | C&I | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 82 | 2,279 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Commercial Lending | CRE | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 466 | 14,080 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Commercial Lending | Residential loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 14 | 374 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Commercial Lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 0 | 0 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Consumer Lending | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 9,564 | 11,304 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Consumer Lending | Residential loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 5,355 | 8,076 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Consumer Lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 4,186 | 2,606 |
Non-PCI impaired loans | Accruing Loans 60-89 Days Past Due | Consumer Lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Accruing Past Due Loans | 23 | 622 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 34,351 | 78,779 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Commercial Lending | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 34,256 | 78,614 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Commercial Lending | C&I | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 27,408 | 60,519 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Commercial Lending | CRE | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 5,430 | 14,872 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Commercial Lending | Residential loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 1,418 | 2,790 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Commercial Lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 433 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Consumer Lending | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 95 | 165 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Consumer Lending | Residential loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 6 | 0 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Consumer Lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 89 | 165 |
Non-PCI impaired loans | Nonaccrual Loans Less Than 90 Days Past Due | Consumer Lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 0 | 0 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 79,958 | 44,038 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Commercial Lending | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 67,633 | 37,859 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Commercial Lending | C&I | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 41,805 | 20,737 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Commercial Lending | CRE | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 21,556 | 12,035 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Commercial Lending | Residential loan | Multifamily | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 299 | 194 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Commercial Lending | Construction and land | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 3,973 | 4,893 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Consumer Lending | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 12,325 | 6,179 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Consumer Lending | Residential loan | Single-family | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 5,917 | 4,214 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Consumer Lending | HELOCs | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | 3,917 | 1,965 |
Non-PCI impaired loans | Nonaccrual Loans 90 or More Days Past Due | Consumer Lending | Other consumer | ||
Nonaccrual and Past Due Loans | ||
Total Nonaccrual Loans | $ 2,491 | $ 0 |
Loans Receivable and Allowanc84
Loans Receivable and Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans in process of foreclosure | ||
Other real estate owned, net | $ 830 | $ 6,700 |
Residential real estate properties | ||
Loans in process of foreclosure | ||
Carrying amount of foreclosed residential real estate properties included in total net OREO | 188 | 401 |
Residential | ||
Loans in process of foreclosure | ||
Recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | 6,600 | 3,100 |
PCI Loans | ||
Nonaccrual loans | ||
Total Nonaccrual Loans | $ 5,300 | $ 11,700 |
Loans Receivable and Allowanc85
Loans Receivable and Allowance for Credit Losses (Additions to Non-PCI TDRs) (Details) - Non-PCI impaired loans $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Loans Modified as TDRs | |||
Post-Modification Outstanding Recorded Investment | $ 43,651 | $ 65,762 | $ 36,254 |
Commercial Lending | |||
Loans Modified as TDRs | |||
Post-Modification Outstanding Recorded Investment | $ 43,496 | $ 64,112 | $ 35,975 |
Commercial Lending | C&I | |||
Loans Modified as TDRs | |||
Number of Loans | loan | 16 | 18 | 18 |
Pre-Modification Outstanding Recorded Investment | $ 43,884 | $ 65,991 | $ 42,816 |
Post-Modification Outstanding Recorded Investment | 37,900 | 40,405 | 34,165 |
Financial Impact | $ 11,520 | $ 20,574 | $ 6,726 |
Commercial Lending | CRE | |||
Loans Modified as TDRs | |||
Number of Loans | loan | 4 | 6 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 2,675 | $ 19,275 | $ 1,802 |
Post-Modification Outstanding Recorded Investment | 2,627 | 18,824 | 1,727 |
Financial Impact | $ 157 | $ 701 | $ 0 |
Commercial Lending | Residential loan | Multifamily | |||
Loans Modified as TDRs | |||
Number of Loans | loan | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 3,655 | ||
Post-Modification Outstanding Recorded Investment | 2,969 | ||
Financial Impact | 0 | ||
Commercial Lending | Construction and land | |||
Loans Modified as TDRs | |||
Number of Loans | loan | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 5,522 | $ 2,227 | |
Post-Modification Outstanding Recorded Investment | 4,883 | 83 | |
Financial Impact | 0 | 102 | |
Consumer Lending | |||
Loans Modified as TDRs | |||
Post-Modification Outstanding Recorded Investment | $ 155 | $ 1,650 | $ 279 |
Consumer Lending | Residential loan | Single-family | |||
Loans Modified as TDRs | |||
Number of Loans | loan | 3 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 1,291 | $ 281 | |
Post-Modification Outstanding Recorded Investment | 1,268 | 279 | |
Financial Impact | $ 0 | $ 2 | |
Consumer Lending | HELOCs | |||
Loans Modified as TDRs | |||
Number of Loans | loan | 1 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 152 | $ 491 | |
Post-Modification Outstanding Recorded Investment | 155 | 382 | |
Financial Impact | $ 0 | $ 1 |
Loans Receivable and Allowanc86
Loans Receivable and Allowance for Credit Losses (Non-PCI TDR Modifications) (Details) - Non-PCI impaired loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | $ 43,651 | $ 65,762 | $ 36,254 |
Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 19,164 | 57,729 | 17,191 |
Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 8,003 | 0 | 18,588 |
Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 6,722 | 0 |
Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 237 | 0 |
Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 16,484 | 1,074 | 475 |
Commercial Lending | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 43,496 | 64,112 | 35,975 |
Commercial Lending | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 19,164 | 57,132 | 16,912 |
Commercial Lending | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 7,848 | 0 | 18,588 |
Commercial Lending | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 5,876 | 0 |
Commercial Lending | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 30 | 0 |
Commercial Lending | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 16,484 | 1,074 | 475 |
Commercial Lending | C&I | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 37,900 | 40,405 | 34,165 |
Commercial Lending | C&I | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 13,568 | 34,499 | 16,364 |
Commercial Lending | C&I | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 7,848 | 0 | 17,801 |
Commercial Lending | C&I | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 5,876 | 0 |
Commercial Lending | C&I | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 30 | 0 |
Commercial Lending | C&I | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 16,484 | 0 | 0 |
Commercial Lending | CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 2,627 | 18,824 | 1,727 |
Commercial Lending | CRE | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 2,627 | 17,750 | 548 |
Commercial Lending | CRE | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 787 |
Commercial Lending | CRE | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Commercial Lending | CRE | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Commercial Lending | CRE | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 1,074 | 392 |
Commercial Lending | Residential loan | Multifamily | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 2,969 | ||
Commercial Lending | Residential loan | Multifamily | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 2,969 | ||
Commercial Lending | Residential loan | Multifamily | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial Lending | Residential loan | Multifamily | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial Lending | Residential loan | Multifamily | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial Lending | Residential loan | Multifamily | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Commercial Lending | Construction and land | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 4,883 | 83 | |
Commercial Lending | Construction and land | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 4,883 | 0 | |
Commercial Lending | Construction and land | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Commercial Lending | Construction and land | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Commercial Lending | Construction and land | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Commercial Lending | Construction and land | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 83 | |
Consumer Lending | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 155 | 1,650 | 279 |
Consumer Lending | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 597 | 279 |
Consumer Lending | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 155 | 0 | 0 |
Consumer Lending | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 846 | 0 |
Consumer Lending | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 207 | 0 |
Consumer Lending | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Consumer Lending | Residential loan | Single-family | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 1,268 | 279 | |
Consumer Lending | Residential loan | Single-family | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 264 | 279 | |
Consumer Lending | Residential loan | Single-family | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Consumer Lending | Residential loan | Single-family | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 797 | 0 | |
Consumer Lending | Residential loan | Single-family | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 207 | 0 | |
Consumer Lending | Residential loan | Single-family | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | $ 0 | |
Consumer Lending | HELOCs | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 155 | 382 | |
Consumer Lending | HELOCs | Principal | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 333 | |
Consumer Lending | HELOCs | Principal and Interest | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 155 | 0 | |
Consumer Lending | HELOCs | Interest Rate Reduction | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 49 | |
Consumer Lending | HELOCs | Interest Deferments | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Consumer Lending | HELOCs | Other | |||
Financing Receivable, Modifications [Line Items] | |||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Loans Receivable and Allowanc87
Loans Receivable and Allowance for Credit Losses (Loans Modified as TDRs that Subsequently Defaulted) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Period beyond which a TDR generally become delinquent | 90 days | ||
Additional funds committed to lend to borrowers whose terms have been modified | $ 5,100 | $ 9,900 | |
Non-PCI impaired loans | Commercial Lending | C&I | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 3 | 0 | 0 |
Recorded Investment | $ 8,659 | $ 0 | $ 0 |
Non-PCI impaired loans | Commercial Lending | CRE | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 2 | 0 |
Recorded Investment | $ 0 | $ 3,150 | $ 0 |
Non-PCI impaired loans | Commercial Lending | Construction and land | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 1 | 0 |
Recorded Investment | $ 0 | $ 4,883 | $ 0 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | 0 | 1 |
Recorded Investment | $ 0 | $ 0 | $ 279 |
Loans Receivable and Allowanc88
Loans Receivable and Allowance for Credit Losses (Non-PCI Impaired Loans) (Details) - Non-PCI impaired loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired loans disclosures | |||
Unpaid Principal Balance | $ 171,016 | $ 255,273 | |
Recorded Investment With No Allowance | 79,064 | 121,934 | |
Recorded Investment With Allowance | 91,823 | 84,121 | |
Total Recorded Investment | 170,887 | 206,055 | |
Individually evaluated for impairment | 19,895 | 12,701 | |
Related Allowance | 19,895 | 12,701 | |
Average Recorded Investment | 185,132 | 236,227 | $ 172,269 |
Recognized Interest Income | 2,989 | 4,711 | 1,714 |
Commercial Lending | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 149,037 | 235,822 | |
Recorded Investment With No Allowance | 76,777 | 121,934 | |
Recorded Investment With Allowance | 72,073 | 66,104 | |
Total Recorded Investment | 148,850 | 188,038 | |
Related Allowance | 16,866 | 11,983 | |
Average Recorded Investment | 162,502 | 218,201 | 155,652 |
Recognized Interest Income | 2,517 | 4,201 | 1,425 |
Commercial Lending | C&I | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 98,889 | 167,466 | |
Recorded Investment With No Allowance | 36,086 | 78,316 | |
Recorded Investment With Allowance | 62,599 | 47,303 | |
Total Recorded Investment | 98,685 | 125,619 | |
Individually evaluated for impairment | 16,094 | 10,477 | |
Average Recorded Investment | 110,662 | 148,986 | 85,290 |
Recognized Interest Income | 1,517 | 2,612 | 538 |
Commercial Lending | CRE | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 35,550 | 50,718 | |
Recorded Investment With No Allowance | 28,699 | 32,507 | |
Recorded Investment With Allowance | 6,857 | 14,001 | |
Total Recorded Investment | 35,556 | 46,508 | |
Individually evaluated for impairment | 684 | 1,263 | |
Average Recorded Investment | 36,003 | 47,064 | 43,598 |
Recognized Interest Income | 578 | 1,253 | 536 |
Commercial Lending | Residential loan | Multifamily | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 10,625 | 11,181 | |
Recorded Investment With No Allowance | 8,019 | 5,684 | |
Recorded Investment With Allowance | 2,617 | 4,357 | |
Total Recorded Investment | 10,636 | 10,041 | |
Individually evaluated for impairment | 88 | 180 | |
Average Recorded Investment | 11,455 | 15,763 | 24,024 |
Recognized Interest Income | 422 | 302 | 312 |
Commercial Lending | Construction and land | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 3,973 | 6,457 | |
Recorded Investment With No Allowance | 3,973 | 5,427 | |
Recorded Investment With Allowance | 0 | 443 | |
Total Recorded Investment | 3,973 | 5,870 | |
Individually evaluated for impairment | 0 | 63 | |
Average Recorded Investment | 4,382 | 6,388 | 2,740 |
Recognized Interest Income | 0 | 34 | 39 |
Consumer Lending | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 21,979 | 19,451 | |
Recorded Investment With No Allowance | 2,287 | 0 | |
Recorded Investment With Allowance | 19,750 | 18,017 | |
Total Recorded Investment | 22,037 | 18,017 | |
Related Allowance | 3,029 | 718 | |
Average Recorded Investment | 22,630 | 18,026 | 16,617 |
Recognized Interest Income | 472 | 510 | 289 |
Consumer Lending | Residential loan | Single-family | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 14,287 | 15,435 | |
Recorded Investment With No Allowance | 0 | 0 | |
Recorded Investment With Allowance | 14,338 | 14,335 | |
Total Recorded Investment | 14,338 | 14,335 | |
Individually evaluated for impairment | 534 | 687 | |
Average Recorded Investment | 14,994 | 14,323 | 15,365 |
Recognized Interest Income | 417 | 447 | 242 |
Consumer Lending | HELOCs | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 5,201 | 4,016 | |
Recorded Investment With No Allowance | 2,287 | 0 | |
Recorded Investment With Allowance | 2,921 | 3,682 | |
Total Recorded Investment | 5,208 | 3,682 | |
Individually evaluated for impairment | 4 | 31 | |
Average Recorded Investment | 5,494 | 3,703 | 1,252 |
Recognized Interest Income | 55 | 63 | 47 |
Consumer Lending | Other consumer | |||
Impaired loans disclosures | |||
Unpaid Principal Balance | 2,491 | ||
Recorded Investment With No Allowance | 0 | ||
Recorded Investment With Allowance | 2,491 | ||
Total Recorded Investment | 2,491 | ||
Individually evaluated for impairment | 2,491 | 0 | |
Average Recorded Investment | 2,142 | 0 | 0 |
Recognized Interest Income | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowanc89
Loans Receivable and Allowance for Credit Losses (Summary of Activities in Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses | |||
Allowance, beginning of period | $ 260,520 | $ 264,959 | |
Gross charge-offs | (473) | (1,900) | $ (5,100) |
Allowance, end of period | 287,128 | 260,520 | 264,959 |
Commercial Lending | C&I | |||
Allowance for loan losses | |||
Allowance, beginning of period | 142,167 | ||
Allowance, end of period | 163,058 | 142,167 | |
Commercial Lending | CRE | |||
Allowance for loan losses | |||
Allowance, beginning of period | 47,927 | ||
Allowance, end of period | 41,237 | 47,927 | |
Commercial Lending | Residential loan | Multifamily | |||
Allowance for loan losses | |||
Allowance, beginning of period | 17,543 | ||
Allowance, end of period | 19,109 | 17,543 | |
Commercial Lending | Construction and land | |||
Allowance for loan losses | |||
Allowance, beginning of period | 24,989 | ||
Allowance, end of period | 26,881 | 24,989 | |
Consumer Lending | Residential loan | Single-family | |||
Allowance for loan losses | |||
Allowance, beginning of period | 19,795 | ||
Allowance, end of period | 26,362 | 19,795 | |
Consumer Lending | HELOCs | |||
Allowance for loan losses | |||
Allowance, beginning of period | 7,506 | ||
Allowance, end of period | 7,354 | 7,506 | |
Consumer Lending | Other consumer | |||
Allowance for loan losses | |||
Allowance, beginning of period | 593 | ||
Allowance, end of period | 3,127 | 593 | |
Non-PCI impaired loans | |||
Allowance for loan losses | |||
Allowance, beginning of period | 260,402 | 264,600 | 260,965 |
Provision for (reversal of) on loans | 49,129 | 31,959 | 6,924 |
Gross charge-offs | (38,975) | (48,508) | (24,254) |
Gross recoveries | 16,514 | 12,351 | 20,965 |
Net charge-offs | (22,461) | (36,157) | (3,289) |
Allowance, end of period | 287,070 | 260,402 | 264,600 |
Non-PCI impaired loans | Commercial Lending | C&I | |||
Allowance for loan losses | |||
Gross charge-offs | (38,118) | (47,739) | (20,423) |
Gross recoveries | 12,065 | 8,453 | 8,782 |
Non-PCI impaired loans | Commercial Lending | CRE | |||
Allowance for loan losses | |||
Gross charge-offs | 0 | (464) | (1,052) |
Gross recoveries | 2,111 | 1,488 | 2,488 |
Non-PCI impaired loans | Commercial Lending | Residential loan | Multifamily | |||
Allowance for loan losses | |||
Gross charge-offs | (635) | (29) | (1,650) |
Gross recoveries | 1,357 | 1,476 | 4,298 |
Non-PCI impaired loans | Commercial Lending | Construction and land | |||
Allowance for loan losses | |||
Gross charge-offs | (149) | (117) | (493) |
Gross recoveries | 259 | 203 | 4,647 |
Non-PCI impaired loans | Consumer Lending | Residential loan | Single-family | |||
Allowance for loan losses | |||
Gross charge-offs | (1) | (137) | (36) |
Gross recoveries | 546 | 401 | 323 |
Non-PCI impaired loans | Consumer Lending | HELOCs | |||
Allowance for loan losses | |||
Gross charge-offs | (55) | (9) | (98) |
Gross recoveries | 24 | 7 | 54 |
Non-PCI impaired loans | Consumer Lending | Other consumer | |||
Allowance for loan losses | |||
Gross charge-offs | (17) | (13) | (502) |
Gross recoveries | 152 | 323 | 373 |
PCI Loans | |||
Allowance for loan losses | |||
Allowance, beginning of period | 118 | 359 | 714 |
Provision for (reversal of) on loans | (60) | (241) | (355) |
Allowance, end of period | 58 | 118 | $ 359 |
PCI Loans | Commercial Lending | C&I | |||
Allowance for loan losses | |||
Allowance, beginning of period | 1 | ||
Allowance, end of period | 0 | 1 | |
PCI Loans | Commercial Lending | CRE | |||
Allowance for loan losses | |||
Allowance, beginning of period | 112 | ||
Allowance, end of period | 58 | 112 | |
PCI Loans | Commercial Lending | Residential loan | Multifamily | |||
Allowance for loan losses | |||
Allowance, beginning of period | 0 | ||
Allowance, end of period | 0 | 0 | |
PCI Loans | Commercial Lending | Construction and land | |||
Allowance for loan losses | |||
Allowance, beginning of period | 0 | ||
Allowance, end of period | 0 | 0 | |
PCI Loans | Consumer Lending | Residential loan | Single-family | |||
Allowance for loan losses | |||
Allowance, beginning of period | 5 | ||
Allowance, end of period | 0 | 5 | |
PCI Loans | Consumer Lending | HELOCs | |||
Allowance for loan losses | |||
Allowance, beginning of period | 0 | ||
Allowance, end of period | 0 | 0 | |
PCI Loans | Consumer Lending | Other consumer | |||
Allowance for loan losses | |||
Allowance, beginning of period | 0 | ||
Allowance, end of period | $ 0 | $ 0 |
Loans Receivable and Allowanc90
Loans Receivable and Allowance for Credit Losses (Summary of Activities in Allowance for Unfunded Credit Reserves) (Details) - Allowance for Unfunded Credit Reserve - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for unfunded credit reserves | |||
Beginning balance | $ 16,121 | $ 20,360 | $ 12,712 |
(Reversal of) provision for unfunded credit reserves | (2,803) | (4,239) | 7,648 |
Ending balance | $ 13,318 | $ 16,121 | $ 20,360 |
Loans Receivable and Allowanc91
Loans Receivable and Allowance for Credit Losses (Allowance for Loan Losses and Recorded Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for loan losses | ||||
Loans held-for-investment | $ 287,128 | $ 260,520 | $ 264,959 | |
Recorded investment in loans | ||||
Financing receivables, gross | 28,975,718 | 25,503,139 | ||
Total loans held-for-investment | 28,975,718 | 25,503,139 | ||
Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 19,895 | 12,701 | ||
Collectively evaluated for impairment | 267,175 | 247,701 | ||
Loans held-for-investment | 287,070 | 260,402 | 264,600 | $ 260,965 |
Recorded investment in loans | ||||
Individually evaluated for impairment | 170,887 | 206,055 | ||
Collectively evaluated for impairment | 28,322,544 | 24,654,639 | ||
Financing receivables, gross | 28,493,431 | 24,860,694 | ||
Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 58 | 118 | $ 359 | $ 714 |
Recorded investment in loans | ||||
Financing receivables, gross | 482,287 | 642,445 | ||
Commercial Lending | ||||
Recorded investment in loans | ||||
Financing receivables, gross | 22,210,001 | 19,917,365 | ||
Commercial Lending | Non-PCI impaired loans | ||||
Recorded investment in loans | ||||
Financing receivables, gross | 21,859,099 | 19,432,958 | ||
Commercial Lending | Acquired with deteriorated credit quality | ||||
Recorded investment in loans | ||||
Financing receivables, gross | 350,902 | 484,407 | ||
Commercial Lending | C&I | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 163,058 | 142,167 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 10,697,231 | 9,640,563 | ||
Total loans held-for-investment | 10,697,231 | 9,640,563 | ||
Commercial Lending | C&I | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 16,094 | 10,477 | ||
Collectively evaluated for impairment | 146,964 | 131,689 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 98,685 | 125,619 | ||
Collectively evaluated for impairment | 10,586,751 | 9,476,557 | ||
Financing receivables, gross | 10,685,436 | 9,602,176 | ||
Commercial Lending | C&I | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 0 | 1 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 11,795 | 38,387 | ||
Commercial Lending | CRE | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 41,237 | 47,927 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 8,936,897 | 8,016,109 | ||
Total loans held-for-investment | 8,936,897 | 8,016,109 | ||
Commercial Lending | CRE | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 684 | 1,263 | ||
Collectively evaluated for impairment | 40,495 | 46,552 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 35,556 | 46,508 | ||
Collectively evaluated for impairment | 8,623,653 | 7,621,153 | ||
Financing receivables, gross | 8,659,209 | 7,667,661 | ||
Commercial Lending | CRE | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 58 | 112 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 277,688 | 348,448 | ||
Commercial Lending | Residential loan | Multifamily | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 19,109 | 17,543 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 1,916,176 | 1,585,939 | ||
Total loans held-for-investment | 1,916,176 | 1,585,939 | ||
Commercial Lending | Residential loan | Multifamily | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 88 | 180 | ||
Collectively evaluated for impairment | 19,021 | 17,363 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 10,636 | 10,041 | ||
Collectively evaluated for impairment | 1,844,492 | 1,480,244 | ||
Financing receivables, gross | 1,855,128 | 1,490,285 | ||
Commercial Lending | Residential loan | Multifamily | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 0 | 0 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 61,048 | 95,654 | ||
Commercial Lending | Construction and land | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 26,881 | 24,989 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 659,697 | 674,754 | ||
Total loans held-for-investment | 659,697 | 674,754 | ||
Commercial Lending | Construction and land | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 0 | 63 | ||
Collectively evaluated for impairment | 26,881 | 24,926 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 3,973 | 5,870 | ||
Collectively evaluated for impairment | 655,353 | 666,966 | ||
Financing receivables, gross | 659,326 | 672,836 | ||
Commercial Lending | Construction and land | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 0 | 0 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 371 | 1,918 | ||
Consumer Lending | ||||
Recorded investment in loans | ||||
Financing receivables, gross | 6,765,717 | 5,585,774 | ||
Consumer Lending | Non-PCI impaired loans | ||||
Recorded investment in loans | ||||
Financing receivables, gross | 6,634,332 | 5,427,736 | ||
Consumer Lending | Acquired with deteriorated credit quality | ||||
Recorded investment in loans | ||||
Financing receivables, gross | 131,385 | 158,038 | ||
Consumer Lending | Residential loan | Single-family | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 26,362 | 19,795 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 4,646,289 | 3,509,779 | ||
Total loans held-for-investment | 4,646,289 | 3,509,779 | ||
Consumer Lending | Residential loan | Single-family | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 534 | 687 | ||
Collectively evaluated for impairment | 25,828 | 19,103 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 14,338 | 14,335 | ||
Collectively evaluated for impairment | 4,514,573 | 3,356,334 | ||
Financing receivables, gross | 4,528,911 | 3,370,669 | ||
Consumer Lending | Residential loan | Single-family | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 0 | 5 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 117,378 | 139,110 | ||
Consumer Lending | HELOCs | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 7,354 | 7,506 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 1,782,924 | 1,760,776 | ||
Total loans held-for-investment | 1,782,924 | 1,760,776 | ||
Consumer Lending | HELOCs | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 4 | 31 | ||
Collectively evaluated for impairment | 7,350 | 7,475 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 5,208 | 3,682 | ||
Collectively evaluated for impairment | 1,763,709 | 1,738,170 | ||
Financing receivables, gross | 1,768,917 | 1,741,852 | ||
Consumer Lending | HELOCs | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 0 | 0 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 14,007 | 18,924 | ||
Consumer Lending | Other consumer | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 3,127 | 593 | ||
Recorded investment in loans | ||||
Financing receivables, gross | 336,504 | 315,219 | ||
Total loans held-for-investment | 336,504 | 315,219 | ||
Consumer Lending | Other consumer | Non-PCI impaired loans | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 2,491 | 0 | ||
Collectively evaluated for impairment | 636 | 593 | ||
Recorded investment in loans | ||||
Individually evaluated for impairment | 2,491 | 0 | ||
Collectively evaluated for impairment | 334,013 | 315,215 | ||
Financing receivables, gross | 336,504 | 315,215 | ||
Consumer Lending | Other consumer | Acquired with deteriorated credit quality | ||||
Allowance for loan losses | ||||
Loans held-for-investment | 0 | 0 | ||
Recorded investment in loans | ||||
Financing receivables, gross | $ 0 | $ 4 |
Loans Receivable and Allowanc92
Loans Receivable and Allowance for Credit Losses (Accretable Yield for PCI Loans) (Details) - PCI Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the accretable yield for the PCI loans | |||
Beginning balance | $ 136,247 | $ 214,907 | $ 311,688 |
Accretion | (42,487) | (68,708) | (107,442) |
Changes in expected cash flows | 8,217 | (9,952) | 10,661 |
Ending balance | $ 101,977 | $ 136,247 | $ 214,907 |
Loans Receivable and Allowanc93
Loans Receivable and Allowance for Credit Losses (Loans Held-for-Sale Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loans Held for Sale | ||
Loans held-for-sale, including loans pending sale | $ 78,200 | |
Branch assets held-for-sale | 91,318 | $ 0 |
Loans held-for-sale | 85 | $ 23,076 |
Loans held-for-sale | ||
Loans Held for Sale | ||
Branch assets held-for-sale | $ 78,100 |
Loans Receivable and Allowanc94
Loans Receivable and Allowance for Credit Losses (Loans Held-for-Sale Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | [1] | $ 613,088 | $ 819,100 | $ 1,747,621 | |
Loans transferred from held-for-sale to held-for-investment | 0 | (4,943) | (53,376) | ||
Securitization of loans held-for-investment | 201,675 | ||||
Sales | 577,964 | 628,669 | 1,702,197 | ||
Purchases | 534,730 | 1,141,028 | 282,407 | ||
Gross charge-offs | (473) | (1,900) | (5,100) | ||
Held-to-maturity investment security | 0 | 143,971 | |||
Gain (loss) on sale of loans and leases | 8,900 | 10,600 | 27,800 | ||
Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 534,956 | ||||
Lower of cost or fair value adjustment | 61 | 5,600 | 3,000 | ||
Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 78,132 | ||||
Commercial And Industrial, Commercial Real Estate, And Single-Family Residential Loans [Member] | Loans receivable, originated | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Sales | 178,200 | ||||
Multifamily Residential, Commercial And Industrial, And Commercial Real Estate [Member] | Loans receivable, originated | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Sales | 369,600 | ||||
Single-family Residential, Commercial And Industrial [Member] | Loans receivable, originated | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Sales | 1,040,000 | ||||
Loans Sold in Secondary Market | Loans receivable, purchased | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Sales | 399,800 | 259,100 | 661,900 | ||
Residential | Residential loan | Multifamily | Loans receivable, originated | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Held-to-maturity investment security | $ 160,100 | ||||
Gain (loss) on sale of loans and leases | 1,100 | ||||
Servicing asset, amortized cost | $ 641 | ||||
Residential | Residential loan | Single-family | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Purchases | 488,300 | ||||
Commercial Lending | C&I | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 434,137 | 779,854 | |||
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | |||
Securitization of loans held-for-investment | 0 | ||||
Sales | 476,644 | 434,137 | 779,682 | ||
Purchases | 503,359 | 646,793 | 233,090 | ||
Commercial Lending | C&I | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 476,644 | ||||
Commercial Lending | C&I | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 17,590 | ||||
Commercial Lending | CRE | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 110,927 | 227 | |||
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | |||
Securitization of loans held-for-investment | 0 | ||||
Sales | 52,217 | 110,927 | 227 | ||
Purchases | 0 | 0 | 0 | ||
Commercial Lending | CRE | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 52,217 | ||||
Commercial Lending | CRE | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 36,783 | ||||
Commercial Lending | Residential loan | Multifamily | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 269,791 | 0 | |||
Loans transferred from held-for-sale to held-for-investment | (4,943) | 0 | |||
Securitization of loans held-for-investment | 201,675 | ||||
Sales | 531 | 61,268 | 0 | ||
Purchases | 2,311 | 5,658 | 11,046 | ||
Commercial Lending | Residential loan | Multifamily | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 531 | ||||
Commercial Lending | Residential loan | Multifamily | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 12,448 | ||||
Commercial Lending | Construction and land | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 4,245 | 4,754 | |||
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | |||
Securitization of loans held-for-investment | 0 | ||||
Sales | 1,609 | 4,245 | 4,754 | ||
Purchases | 0 | 0 | 0 | ||
Commercial Lending | Construction and land | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 1,609 | ||||
Commercial Lending | Construction and land | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 241 | ||||
Consumer Lending | Residential loan | Single-family | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 0 | 962,538 | |||
Loans transferred from held-for-sale to held-for-investment | 0 | (53,376) | |||
Securitization of loans held-for-investment | 0 | ||||
Sales | 21,058 | 18,092 | 907,373 | ||
Purchases | 29,060 | 488,577 | 38,271 | ||
Consumer Lending | Residential loan | Single-family | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 249 | ||||
Consumer Lending | Residential loan | Single-family | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 6,416 | ||||
Consumer Lending | HELOCs | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 0 | 248 | |||
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | |||
Securitization of loans held-for-investment | 0 | ||||
Sales | 0 | 0 | 248 | ||
Purchases | 0 | 0 | 0 | ||
Consumer Lending | HELOCs | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 0 | ||||
Consumer Lending | HELOCs | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 4,309 | ||||
Consumer Lending | Other consumer | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 0 | 0 | |||
Loans transferred from held-for-sale to held-for-investment | 0 | 0 | |||
Securitization of loans held-for-investment | 0 | ||||
Sales | 25,905 | 0 | 9,913 | ||
Purchases | 0 | $ 0 | $ 0 | ||
Consumer Lending | Other consumer | Loans held-for-sale | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | 3,706 | ||||
Consumer Lending | Other consumer | Loans held-for-sale | Desert Community Bank | |||||
LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||
Loans transferred from held-for-investment to held-for-sale | $ 345 | ||||
[1] | December 31, 2017 amount includes loans transferred from held-for-investment to branch assets held-for-sale. |
Investments in Qualified Affo95
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Investments in Qualified Affordable Housing Partnerships, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET | |||
Investments in qualified affordable housing partnerships, net | $ 162,824 | $ 183,917 | |
Accrued expenses and other liabilities — Unfunded commitments | 55,815 | 57,243 | |
Tax credits and other tax benefits recognized | 46,698 | 37,252 | $ 38,271 |
Amortization expense included in income tax expense | $ 38,464 | $ 28,206 | $ 26,814 |
Investments in Qualified Affo96
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Investments in Tax Credit and Other Investments, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
INVESTMENTS IN QUALIFIED AFFORDABLE HOUSING PARTNERSHIPS, TAX CREDIT AND OTHER INVESTMENTS, NET | |||
Minimum compliance period to fully utilize the tax credits | 15 years | ||
Investments in tax credit investments, net | $ 224,551 | $ 173,280 | |
Schedule of Equity Method Investments [Line Items] | |||
Amortization of tax credit and other investments | 87,950 | 83,446 | $ 36,120 |
Accrued Expenses and Other Liabilities | |||
Schedule of Equity Method Investments [Line Items] | |||
Commitments for other tax credit investments | $ 113,400 | $ 117,000 |
Investments in Qualified Affo97
Investments in Qualified Affordable Housing Partnerships, Tax Credit and Other Investments, Net (Estimated Unfunded Commitments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Unfunded commitments related to investments in qualified affordable housing partnerships, tax credit and other investments | |
2,018 | $ 98,000 |
2,019 | 34,790 |
2,020 | 16,744 |
2,021 | 7,734 |
2,022 | 11,078 |
Thereafter | 841 |
Total | $ 169,187 |
Goodwill and Other Intangible98
Goodwill and Other Intangible Assets (Goodwill and Impairment) (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 469,433,000 | $ 469,433,000 |
Number of operating segments | segment | 3 | |
Period for which the company provided a net income projection under the income approach to determine the fair value of the reporting units | 3 years | |
Goodwill impairment | $ 0 |
Goodwill and Other Intangible99
Goodwill and Other Intangible Assets (Core Deposit Intangibles) (Details) - Core Deposit Intangibles - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment write-downs on core deposit intangibles | $ 0 | $ 0 | $ 0 |
Gross balance | 108,814,000 | 108,814,000 | |
Accumulated amortization | (87,760,000) | (80,825,000) | |
Total | $ 21,054,000 | $ 27,989,000 |
Goodwill and Other Intangibl100
Goodwill and Other Intangible Assets (Amortization Expense of Core Deposit Intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of core deposit intangibles | $ 6,935 | $ 8,086 | $ 9,234 |
Core Deposit Intangibles | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization of core deposit intangibles | 6,900 | 8,100 | $ 9,200 |
($ in thousands) | |||
2,018 | 5,883 | ||
2,019 | 4,864 | ||
2,020 | 3,846 | ||
2,021 | 2,833 | ||
2,022 | 1,865 | ||
Thereafter | 1,763 | ||
Total | $ 21,054 | $ 27,989 |
Deposits (Balances for Core Dep
Deposits (Balances for Core Deposits and Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits | ||
Less than $100,000 | $ 1,176,973 | $ 1,300,091 |
$100,000 or greater | 4,463,776 | 4,315,178 |
Total time deposits | 5,640,749 | 5,615,269 |
Total deposits | 31,615,063 | 29,890,983 |
Core deposits: | ||
Noninterest-bearing demand | 10,887,306 | 10,183,946 |
Interest-bearing checking | 4,419,089 | 3,674,417 |
Money market | 8,359,425 | 8,174,854 |
Savings | 2,308,494 | 2,242,497 |
Total core deposits | 25,974,314 | 24,275,714 |
Geographic Distribution, Foreign | Hong Kong and China | ||
Time Deposits | ||
Time Deposits, at or Above FDIC Insurance Limit | 814,600 | 538,000 |
Geographic Distribution, Foreign | China | ||
Time Deposits | ||
$100,000 or greater | 507,100 | 329,900 |
Geographic Distribution, Foreign | Hong Kong | ||
Time Deposits | ||
$100,000 or greater | 322,000 | 219,700 |
Geographic Distribution, Domestic | UNITED STATES | ||
Time Deposits | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 2,370,000 | $ 2,350,000 |
Deposits (Scheduled Maturities
Deposits (Scheduled Maturities of Time Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
CUSTOMER DEPOSIT ACCOUNTS | ||
2,018 | $ 4,930,794 | |
2,019 | 394,274 | |
2,020 | 102,768 | |
2,021 | 86,308 | |
2,022 | 94,602 | |
Thereafter | 32,003 | |
Total time deposits | $ 5,640,749 | $ 5,615,269 |
Federal Home Loan Bank Advan103
Federal Home Loan Bank Advances and Long-Term Debt (FHLB Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
FHLB advances | $ 323,891 | $ 321,643 |
FHLB advances that will mature in the next five years | ||
Available borrowing capacity from FHLB advances | $ 6,830,000 | $ 5,650,000 |
FHLB Advances | ||
Debt Instrument [Line Items] | ||
Weighted-average rate (as a percent) | 1.85% | 1.13% |
FHLB advances that will mature in the next five years | ||
2,018 | $ 0 | |
2,019 | 81,300 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 242,600 | |
Thereafter | $ 0 | |
FHLB Advances | Minimum | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 0.67% | 0.41% |
FHLB Advances | Maximum | ||
Debt Instrument [Line Items] | ||
Variable interest rate | 1.95% | 1.27% |
Federal Home Loan Bank Advan104
Federal Home Loan Bank Advances and Long-Term Debt (Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 171,577 | $ 186,327 |
Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 146,577 | 146,327 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,000 | $ 40,000 |
Federal Home Loan Bank Advan105
Federal Home Loan Bank Advances and Long-Term Debt (Junior Subordinated Debt) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)trust | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Number of wholly owned subsidiaries that are statutory business trusts | trust | 6 | |
Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Number of statutory business trusts formed for the purpose of issuing junior subordinated debt to third party investors | trust | 6 | |
Aggregate Principal Amount of Trust Securities | $ 4,641 | $ 4,641 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 148,000 | 148,000 |
East West Capital Trust V | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate, base | 3-month Libor + | |
Stated Interest Rate, basis spread (as a percent) | 1.80% | |
Current Rate | 3.25% | |
Aggregate Principal Amount of Trust Securities | $ 464 | 464 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 15,000 | 15,000 |
East West Capital Trust VI | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate, base | 3-month Libor + | |
Stated Interest Rate, basis spread (as a percent) | 1.50% | |
Current Rate | 3.09% | |
Aggregate Principal Amount of Trust Securities | $ 619 | 619 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 20,000 | 20,000 |
East West Capital Trust VII | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate, base | 3-month Libor + | |
Stated Interest Rate, basis spread (as a percent) | 1.35% | |
Current Rate | 2.94% | |
Aggregate Principal Amount of Trust Securities | $ 928 | 928 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 30,000 | 30,000 |
East West Capital Trust VIII | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate, base | 3-month Libor + | |
Stated Interest Rate, basis spread (as a percent) | 1.40% | |
Current Rate | 2.91% | |
Aggregate Principal Amount of Trust Securities | $ 619 | 619 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 18,000 | 18,000 |
East West Capital Trust IX | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate, base | 3-month Libor + | |
Stated Interest Rate, basis spread (as a percent) | 1.90% | |
Current Rate | 3.49% | |
Aggregate Principal Amount of Trust Securities | $ 928 | 928 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 30,000 | 30,000 |
MCBI Statutory Trust I | Junior subordinated debt | ||
Debt Instrument [Line Items] | ||
Stated Interest Rate, base | 3-month Libor + | |
Stated Interest Rate, basis spread (as a percent) | 1.55% | |
Current Rate | 3.14% | |
Aggregate Principal Amount of Trust Securities | $ 1,083 | 1,083 |
Aggregate Principal Amount of the Junior Subordinated Debts | $ 35,000 | $ 35,000 |
Federal Home Loan Bank Advan106
Federal Home Loan Bank Advances and Long-Term Debt (Term Loan) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 171,577,000 | $ 186,327,000 | |
Term loan | |||
Debt Instrument [Line Items] | |||
Term Loan, face amount | $ 100,000,000 | ||
Term | 3 years | ||
Quarterly principal repayment | $ 5,000,000 | ||
Weighted-average rate (as a percent) | 2.70% | 2.24% | |
Long-term debt | $ 25,000,000 | $ 40,000,000 | |
LIBOR | Term loan | |||
Debt Instrument [Line Items] | |||
Stated Interest Rate, basis spread (as a percent) | 1.50% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefits due to ASU 2016-09 | $ 4,775 | |||
Net tax benefit recognized from stock compensation plans | $ 1,055 | $ 3,291 | ||
Income tax expense recorded after impact of Tax Act | $ 41,700 | |||
Remeasurements of certain deferred tax assets and liabilities, net | 33,100 | |||
Tax credits and other tax benefits related to qualified affordable housing partnerships | $ 7,900 | |||
Other comprehensive income, available for sale securities, income tax benefit | $ (1,500) | $ (16,400) | $ (7,500) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax (benefit) expense: | |||||||||||
Federal | $ 120,968 | $ 63,642 | $ (62,829) | ||||||||
State | 72,837 | 48,558 | (4,750) | ||||||||
Foreign | 1,815 | 1,345 | 409 | ||||||||
Total current income tax expense (benefit) | 195,620 | 113,545 | (67,170) | ||||||||
Deferred income tax expense (benefit): | |||||||||||
Federal | 40,057 | 25,296 | 199,858 | ||||||||
State | (6,201) | 1,883 | 60,437 | ||||||||
Foreign | 0 | (213) | 919 | ||||||||
Total deferred income tax expense | 33,856 | 26,966 | 261,214 | ||||||||
Income tax expense | $ 89,229 | $ 42,624 | $ 39,355 | $ 58,268 | $ 50,403 | $ 13,321 | $ 39,632 | $ 37,155 | $ 229,476 | $ 140,511 | $ 194,044 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Federal Statutory Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Difference between the effective tax rate implicit in the consolidated financial statements and the statutory federal income tax rate | |||
Federal income tax provision at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State franchise taxes, net of federal tax effect (as a percent) | 5.90% | 6.10% | 6.30% |
Tax Cuts and Jobs Act (as a percent) | 4.50% | 0.00% | 0.00% |
Tax credits, net of amortization (as a percent) | (15.10%) | (18.30%) | (8.70%) |
Other, net (as a percent) | 0.90% | 1.80% | 0.90% |
Effective income tax rate (as a percent) | 31.20% | 24.60% | 33.50% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses and OREO reserves | $ 93,164 | $ 127,078 |
Deferred compensation | 16,703 | 25,824 |
Mortgage servicing assets | 3,933 | 0 |
Unrealized losses on securities | 16,084 | 21,568 |
State taxes | 5,217 | 1,333 |
Interest income on nonaccrual loans | 7,847 | 5,719 |
Other, net | 6,322 | 7,419 |
Total gross deferred tax assets | 149,270 | 188,941 |
Valuation allowance | (256) | (283) |
Total deferred tax assets, net of valuation allowance | 149,014 | 188,658 |
Deferred tax liabilities: | ||
Core deposit intangibles | (6,525) | (12,642) |
Investments in partnerships, tax credit and other investments, net | (3,813) | (1,694) |
Fixed assets | (1,757) | (16,526) |
Equipment financing | (25,604) | (15,106) |
FHLB stock dividends | (1,868) | (1,524) |
Acquired debt | (1,851) | (2,833) |
Acquired loans and OREO | (3,412) | (7,055) |
Prepaid expenses | (5,659) | (1,339) |
Other, net | (1,119) | (241) |
Total gross deferred tax liabilities | (51,608) | (58,960) |
Net deferred tax assets | 97,406 | 129,698 |
Federal | ||
Deferred tax assets: | ||
Allowance for loan losses and OREO reserves | 62,942 | 97,921 |
Deferred compensation | 11,483 | 20,093 |
Mortgage servicing assets | 2,727 | 0 |
Unrealized losses on securities | 10,730 | 16,253 |
State taxes | 5,217 | 1,333 |
Interest income on nonaccrual loans | 5,396 | 4,461 |
Other, net | 744 | 2,053 |
Total gross deferred tax assets | 99,239 | 142,114 |
Valuation allowance | 0 | 0 |
Total deferred tax assets, net of valuation allowance | 99,239 | 142,114 |
Deferred tax liabilities: | ||
Core deposit intangibles | (4,408) | (9,768) |
Investments in partnerships, tax credit and other investments, net | (10,838) | (7,012) |
Fixed assets | (2,671) | (13,166) |
Equipment financing | (21,844) | (13,240) |
FHLB stock dividends | (1,285) | (1,189) |
Acquired debt | (1,273) | (2,210) |
Acquired loans and OREO | (2,252) | (5,407) |
Prepaid expenses | (4,142) | (1,088) |
Other, net | (510) | (121) |
Total gross deferred tax liabilities | (49,223) | (53,201) |
Net deferred tax assets | 50,016 | 88,913 |
State | ||
Deferred tax assets: | ||
Allowance for loan losses and OREO reserves | 28,857 | 27,792 |
Deferred compensation | 5,220 | 5,731 |
Mortgage servicing assets | 1,206 | 0 |
Unrealized losses on securities | 5,354 | 5,315 |
State taxes | 0 | 0 |
Interest income on nonaccrual loans | 2,451 | 1,258 |
Other, net | 5,481 | 5,269 |
Total gross deferred tax assets | 48,569 | 45,365 |
Valuation allowance | (256) | (283) |
Total deferred tax assets, net of valuation allowance | 48,313 | 45,082 |
Deferred tax liabilities: | ||
Core deposit intangibles | (2,117) | (2,874) |
Investments in partnerships, tax credit and other investments, net | 7,025 | 5,318 |
Fixed assets | 914 | (3,360) |
Equipment financing | (3,760) | (1,866) |
FHLB stock dividends | (583) | (335) |
Acquired debt | (578) | (623) |
Acquired loans and OREO | (754) | (1,242) |
Prepaid expenses | (1,517) | (251) |
Other, net | (609) | (120) |
Total gross deferred tax liabilities | (1,979) | (5,353) |
Net deferred tax assets | 46,334 | 39,729 |
Foreign | ||
Deferred tax assets: | ||
Allowance for loan losses and OREO reserves | 1,365 | 1,365 |
Deferred compensation | 0 | 0 |
Mortgage servicing assets | 0 | 0 |
Unrealized losses on securities | 0 | 0 |
State taxes | 0 | 0 |
Interest income on nonaccrual loans | 0 | 0 |
Other, net | 97 | 97 |
Total gross deferred tax assets | 1,462 | 1,462 |
Valuation allowance | 0 | 0 |
Total deferred tax assets, net of valuation allowance | 1,462 | 1,462 |
Deferred tax liabilities: | ||
Core deposit intangibles | 0 | 0 |
Investments in partnerships, tax credit and other investments, net | 0 | 0 |
Fixed assets | 0 | 0 |
Equipment financing | 0 | 0 |
FHLB stock dividends | 0 | 0 |
Acquired debt | 0 | 0 |
Acquired loans and OREO | (406) | (406) |
Prepaid expenses | 0 | 0 |
Other, net | 0 | 0 |
Total gross deferred tax liabilities | (406) | (406) |
Net deferred tax assets | $ 1,056 | $ 1,056 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity related to unrecognized tax benefits | |||
Beginning Balance | $ 10,419 | $ 7,125 | |
Additions for tax positions related to prior years | 0 | 5,819 | |
Settlements with taxing authorities | 0 | (2,525) | |
Ending Balance | 10,419 | 10,419 | $ 7,125 |
Total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate | 8,200 | 6,800 | |
Interest and penalties related to income taxes | 450 | 6,200 | $ (460) |
Total interest and penalties accrued | $ 8,400 | $ 7,900 |
Commitments, Contingencies a112
Commitments, Contingencies and Related Party Transactions (Credit-related Commitments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Credit Extensions | ||
Loan commitments | $ 5,075,480 | $ 5,077,869 |
Commercial letters of credit and SBLCs | $ 1,655,897 | $ 1,525,613 |
Commitments, Contingencies a113
Commitments, Contingencies and Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Guarantees | ||
Commercial letters of credit and SBLCs | $ 1,655,897 | $ 1,525,613 |
Maximum potential future payments up to recourse component | 38,700 | 46,400 |
Other Commitments | ||
Unfunded commitments for investments in AHP and other tax credit investments | 169,187 | |
Accrued Expenses and Other Liabilities | ||
Guarantees | ||
Allowance for unfunded credit reserves | 12,700 | 15,700 |
Other Commitments | ||
Unfunded commitments for investments in AHP and other tax credit investments | 169,200 | 174,300 |
Single Family Residential and Multi-Family Residential | Loans Sold or Securitized with Recourse | ||
Guarantees | ||
Principal amount outstanding on loans sold or securitized | 113,700 | 150,500 |
Single Family Residential and Multi-Family Residential | Loans Sold or Securitized with Recourse | Accrued Expenses and Other Liabilities | ||
Guarantees | ||
Allowance for unfunded credit reserves | 214 | $ 373 |
Standby Letters of Credit | ||
Guarantees | ||
Commercial letters of credit and SBLCs | 1,600,000 | |
Commercial Letters Of Credit | ||
Guarantees | ||
Commercial letters of credit and SBLCs | $ 55,700 |
Commitments, Contingencies a114
Commitments, Contingencies and Related Party Transactions (Future Minimum Rental Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lease Commitments | |||
Rental expense | $ 29,700 | $ 24,100 | $ 24,600 |
Estimated future minimum rental payments under non-cancelable operating leases | |||
2,018 | 31,845 | ||
2,019 | 27,005 | ||
2,020 | 22,242 | ||
2,021 | 18,635 | ||
2,022 | 13,944 | ||
Thereafter | 27,988 | ||
Total | $ 141,659 |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 0 | 0 | |
RSAs | Ratably | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSAs | Cliff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSAs | Fourth year of employment | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights (as a percent) | 50.00% | ||
RSAs | Fifth year of employment | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights (as a percent) | 50.00% | ||
RSAs | Fifth year of employment | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights (as a percent) | 50.00% | ||
RSUs | Ratably | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Cliff | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs | Cliff | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Time-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 1,166,580 | 1,218,714 | |
Weighted-average fair value of awards granted (in dollars per share) | $ 55.28 | $ 31.86 | $ 40.36 |
Total fair value of performance-based awards that vested | $ 17.2 | $ 4.2 | $ 9.1 |
Total unrecognized stock compensation expense | $ 25.3 | ||
Weighted average period to recognize unrecognized compensation cost | 2 years 7 days | ||
Performance-Based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 424,299 | 410,746 | |
Weighted-average fair value of awards granted (in dollars per share) | $ 56.59 | $ 29.18 | $ 41.15 |
Total fair value of performance-based awards that vested | $ 13 | $ 4.4 | $ 5.8 |
Total unrecognized stock compensation expense | $ 14.1 | ||
Weighted average period to recognize unrecognized compensation cost | 1 year 10 months 6 days | ||
Performance-Based RSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target award available for grant | 0.00% | ||
Performance-Based RSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of target award available for grant | 200.00% | ||
Performance-Based RSUs | Cliff | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
2016 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares authorized (in shares) | 14,000,000 | ||
Shares available (in shares) | 4,700,000 |
Stock Compensation Plans (Summa
Stock Compensation Plans (Summary of Total Share-Based Compensation Expense and Related Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock compensation costs | $ 24,657 | $ 22,102 | $ 16,502 |
Income tax benefits due to ASU 2016-09 | $ 4,775 | ||
Net tax benefit recognized from stock compensation plans | $ 1,055 | $ 3,291 |
Stock Compensation Plans (Su117
Stock Compensation Plans (Summary of Activity for Time-Based and Performance-Based RSUs) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Time-Based RSUs | |||
Shares | |||
Outstanding at beginning of year (in shares) | 1,218,714 | ||
Granted (in shares) | 411,290 | ||
Vested (in shares) | (312,226) | ||
Forfeited (in shares) | (151,198) | ||
Outstanding at end of year (in shares) | 1,166,580 | 1,218,714 | |
Weighted- Average Grant Date Fair Value | |||
Outstanding at end of year (in dollars per share) | $ 35.92 | ||
Granted (in dollars per share) | 55.28 | $ 31.86 | $ 40.36 |
Vested (in dollars per share) | 36.55 | ||
Forfeited (in dollars per share) | 40.38 | ||
Outstanding at end of year (in dollars per share) | $ 42 | $ 35.92 | |
Performance-Based RSUs | |||
Shares | |||
Outstanding at beginning of year (in shares) | 410,746 | ||
Granted (in shares) | 131,597 | ||
Vested (in shares) | (118,044) | ||
Forfeited (in shares) | 0 | ||
Outstanding at end of year (in shares) | 424,299 | 410,746 | |
Weighted- Average Grant Date Fair Value | |||
Outstanding at end of year (in dollars per share) | $ 35.27 | ||
Granted (in dollars per share) | 56.59 | $ 29.18 | $ 41.15 |
Vested (in dollars per share) | 36.85 | ||
Forfeited (in dollars per share) | 0 | ||
Outstanding at end of year (in dollars per share) | $ 41.44 | $ 35.27 |
Stock Compensation Plans (Stock
Stock Compensation Plans (Stock Options) (Details) - USD ($) $ in Thousands | 12 Months Ended | 72 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Net tax benefit recognized from stock compensation plans | $ 1,055 | $ 3,291 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants during the period | 0 | |||
Vesting period | 4 years | |||
Contractual term | 7 years | |||
Number of options outstanding | 0 | 0 | 0 | 0 |
Cash proceeds from options exercised | $ 0 | $ 0 | $ 874 | |
Net tax benefit recognized from stock compensation plans | 0 | 0 | 320 | |
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 760 |
Stock Compensation Plans (St119
Stock Compensation Plans (Stock Purchase Plan) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock purchase plan | |||
Compensation expense | $ 24,657,000 | $ 22,102,000 | $ 16,502,000 |
Stock Purchase Plan | |||
Stock purchase plan | |||
Purchase price of shares in terms compared to market price per share (as a percent) | 90.00% | ||
Annual purchase limitation per employee | $ 22,500 | ||
Compensation expense | $ 0 | ||
Common stock, shares authorized (in shares) | 2,000,000 | ||
Shares sold to employees (in shares) | 45,343 | 67,198 | |
Value of shares sold to employees under purchase plan | $ 2,300,000 | $ 2,100,000 | |
Shares available (in shares) | 526,687 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)executive | Dec. 31, 2016USD ($)executive | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum employee contribution (as a percent) | 80.00% | ||
Company match percentage (as a percent) | 75.00% | ||
Percentage of employee pay that Company matches (as a percent) | 6.00% | ||
Matching contribution vesting rate (as a percent) | 20.00% | ||
Matching contribution, vesting period | 5 years | ||
Employer's contribution | $ 8,900 | $ 8,400 | $ 7,500 |
Supplemental Executive Retirement Plan (SERP) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of executives remaining under the SERP | executive | 1 | 1 | |
Accrued benefit expense | $ 331 | $ 624 | $ 619 |
Benefit obligation | $ 4,200 | $ 4,100 |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary of Expected SERP Payments) (Details) - Supplemental Executive Retirement Plan (SERP) $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 319 |
2,019 | 329 |
2,020 | 339 |
2,022 | 349 |
2,021 | 359 |
Thereafter | 7,855 |
Total | $ 9,550 |
Stockholders_ Equity and Ear122
Stockholders’ Equity and Earnings Per Share (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 17, 2014 | Jan. 16, 2014 | Jul. 17, 2013 | |
Warrant | ||||||||||||||||||
Shares of East West's common stock into which the warrant may be converted (in shares) | 230,282 | |||||||||||||||||
Quarterly Dividends | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.2 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.8 | $ 0.8 | $ 0.8 | |||||||
Total cash dividends paid | $ 116,998,000 | $ 116,595,000 | $ 116,224,000 | |||||||||||||||
MetroCorp | ||||||||||||||||||
Warrant | ||||||||||||||||||
Number of warrants exercised (in shares) | 0 | 0 | ||||||||||||||||
Common Stock | ||||||||||||||||||
Class of Stock | ||||||||||||||||||
Amount of stock repurchase authorized by the Board of Directors | $ 100,000,000 | |||||||||||||||||
Purchase of treasury stock pursuant to the Stock Repurchase Program (in shares) | 0 | 0 | ||||||||||||||||
Quarterly Dividends | ||||||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | ||||||
MetroCorp | MetroCorp | ||||||||||||||||||
Warrant | ||||||||||||||||||
Shares of East West's common stock into which the warrant may be converted (in shares) | 771,429 |
Stockholders_ Equity and Ear123
Stockholders’ Equity and Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Income tax benefits due to ASU 2016-09 | $ 4.8 | |
Accounting Standards Update 2016-09 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Income tax benefits due to ASU 2016-09 (in dollars per share) | $ 0.03 | |
RSAs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 0 | 0 |
Stockholders_ Equity and Ear124
Stockholders’ Equity and Earnings Per Share (Earnings Per Share Calculations) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic | |||||||||||
Net income | $ 84,898 | $ 132,660 | $ 118,330 | $ 169,736 | $ 110,734 | $ 110,143 | $ 103,284 | $ 107,516 | $ 505,624 | $ 431,677 | $ 384,677 |
Less: earnings allocated to participating securities | 0 | 0 | (3) | ||||||||
Net income allocated to common stockholders | $ 505,624 | $ 431,677 | $ 384,674 | ||||||||
Basic weighted average common shares outstanding (in shares) | 144,542 | 144,498 | 144,485 | 144,249 | 144,166 | 144,122 | 144,101 | 143,958 | 144,444 | 144,087 | 143,818 |
Basic EPS (in dollars per share) | $ 0.59 | $ 0.92 | $ 0.82 | $ 1.18 | $ 0.77 | $ 0.76 | $ 0.72 | $ 0.75 | $ 3.50 | $ 3 | $ 2.67 |
Diluted | |||||||||||
Net income allocated to common stockholders | $ 505,624 | $ 431,677 | $ 384,680 | ||||||||
Basic weighted average common shares outstanding (in shares) | 144,542 | 144,498 | 144,485 | 144,249 | 144,166 | 144,122 | 144,101 | 143,958 | 144,444 | 144,087 | 143,818 |
Diluted potential common shares (in shares) | 1,469 | 1,085 | 694 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 146,030 | 145,882 | 145,740 | 145,732 | 145,428 | 145,238 | 145,078 | 144,803 | 145,913 | 145,172 | 144,512 |
Diluted EPS (in dollars per share) | $ 0.58 | $ 0.91 | $ 0.81 | $ 1.16 | $ 0.76 | $ 0.76 | $ 0.71 | $ 0.74 | $ 3.47 | $ 2.97 | $ 2.66 |
Stockholders_ Equity and Ear125
Stockholders’ Equity and Earnings Per Share (Weighted Average Anti-dilutive Shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average anti-diluted shares (in shares) | 14 | 8 | 16 |
Accumulated Other Comprehens126
Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,427,741 | $ 3,122,950 | $ 2,856,111 |
Net unrealized gains (losses) arising during the period | 15,284 | (27,200) | 4,215 |
Amount reclassified from AOCI | (4,657) | (6,005) | (23,393) |
Other comprehensive income (loss) | 10,627 | (33,205) | (19,178) |
Ending balance | 3,841,951 | 3,427,741 | 3,122,950 |
Available- for-Sale Investment Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (28,772) | (6,144) | 4,237 |
Net unrealized gains (losses) arising during the period | 2,531 | (16,623) | 13,012 |
Amount reclassified from AOCI | (4,657) | (6,005) | (23,393) |
Other comprehensive income (loss) | (2,126) | (22,628) | (10,381) |
Ending balance | (30,898) | (28,772) | (6,144) |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (19,374) | (8,797) | 0 |
Net unrealized gains (losses) arising during the period | 12,753 | (10,577) | (8,797) |
Amount reclassified from AOCI | 0 | 0 | 0 |
Other comprehensive income (loss) | 12,753 | (10,577) | (8,797) |
Ending balance | (6,621) | (19,374) | (8,797) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (48,146) | (14,941) | 4,237 |
Other comprehensive income (loss) | 10,627 | (33,205) | (19,178) |
Ending balance | $ (37,519) | $ (48,146) | $ (14,941) |
Accumulated Other Comprehens127
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Before - Tax | |||
Other comprehensive income (loss) | $ 9,084 | $ (49,620) | $ (26,710) |
Tax Effect | |||
Other comprehensive income (loss) | 1,543 | 16,415 | 7,532 |
Net-of- Tax | |||
Net unrealized gains (losses) arising during the period | 15,284 | (27,200) | 4,215 |
Net realized gains reclassified into net income | (4,657) | (6,005) | (23,393) |
Other comprehensive income (loss) | 10,627 | (33,205) | (19,178) |
Available- for-Sale Investment Securities | |||
Before - Tax | |||
Net unrealized gains (losses) arising during the period | 4,368 | (28,681) | 22,454 |
Net realized gains reclassified into net income | (8,037) | (10,362) | (40,367) |
Other comprehensive income (loss) | (3,669) | (39,043) | (17,913) |
Tax Effect | |||
Net unrealized gains (losses) arising during the period | (1,837) | 12,058 | (9,442) |
Net realized gains reclassified into net income | 3,380 | 4,357 | 16,974 |
Other comprehensive income (loss) | 1,543 | 16,415 | 7,532 |
Net-of- Tax | |||
Net unrealized gains (losses) arising during the period | 2,531 | (16,623) | 13,012 |
Net realized gains reclassified into net income | (4,657) | (6,005) | (23,393) |
Other comprehensive income (loss) | (2,126) | (22,628) | (10,381) |
Foreign Currency Translation Adjustments | |||
Before - Tax | |||
Net unrealized gains (losses) arising during the period | 12,753 | (10,577) | (8,797) |
Other comprehensive income (loss) | 12,753 | (10,577) | (8,797) |
Tax Effect | |||
Net unrealized gains (losses) arising during the period | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 |
Net-of- Tax | |||
Net unrealized gains (losses) arising during the period | 12,753 | (10,577) | (8,797) |
Net realized gains reclassified into net income | 0 | 0 | 0 |
Other comprehensive income (loss) | $ 12,753 | $ (10,577) | $ (8,797) |
Regulatory Requirements and 128
Regulatory Requirements and Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Actual | ||
Total Capital (to risk-weighted assets), Amount | $ 3,838,516 | $ 3,400,642 |
Tier I Capital (to risk-weighted assets), Amount | 3,390,070 | 2,976,002 |
Tier 1 Common Equity Capital (to risk-weighted assets), Amount | 3,390,070 | 2,976,002 |
Tier 1 leverage capital (to adjusted average assets), Amount | 3,390,070 | 2,976,002 |
Risk-weighted assets | 29,669,251 | 27,357,753 |
Adjusted quarterly average total assets | $ 37,307,975 | $ 34,209,827 |
Total Capital (to risk-weighted assets), Ratio (as a percent) | 12.90% | 12.40% |
Tier I Capital (to risk-weighted assets), Ratio (as a percent) | 11.40% | 10.90% |
Tier 1 Common Equity Capital (to risk-weighted assets), Ratio (as a percent) | 11.40% | 10.90% |
Tier 1 leverage capital (to adjusted average assets), Ratio (as a percent) | 9.20% | 8.70% |
Minimum Requirement | ||
Total Capital (to risk-weighted assets), Ratio (as a percent) | 8.00% | 8.00% |
Tier I Capital (to risk-weighted assets), Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 Common Equity Capital (to risk-weighted assets), Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 leverage capital (to adjusted average assets), Ratio (as a percent) | 4.00% | 4.00% |
Well Capitalized Requirement | ||
Total Capital (to risk-weighted assets), Ratio (as a percent) | 10.00% | 10.00% |
Tier I Capital (to risk-weighted assets), Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 Common Equity Capital (to risk-weighted assets), Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 leverage capital (to adjusted average assets), Ratio (as a percent) | 5.00% | 5.00% |
East West Bank | ||
Actual | ||
Total Capital (to risk-weighted assets), Amount | $ 3,679,261 | $ 3,371,885 |
Tier I Capital (to risk-weighted assets), Amount | 3,378,815 | 3,095,245 |
Tier 1 Common Equity Capital (to risk-weighted assets), Amount | 3,378,815 | 3,095,245 |
Tier 1 leverage capital (to adjusted average assets), Amount | 3,378,815 | 3,095,245 |
Risk-weighted assets | 29,643,711 | 27,310,540 |
Adjusted quarterly average total assets | $ 37,283,273 | $ 34,163,667 |
Total Capital (to risk-weighted assets), Ratio (as a percent) | 12.40% | 12.30% |
Tier I Capital (to risk-weighted assets), Ratio (as a percent) | 11.40% | 11.30% |
Tier 1 Common Equity Capital (to risk-weighted assets), Ratio (as a percent) | 11.40% | 11.30% |
Tier 1 leverage capital (to adjusted average assets), Ratio (as a percent) | 9.20% | 9.10% |
Minimum Requirement | ||
Total Capital (to risk-weighted assets), Ratio (as a percent) | 8.00% | 8.00% |
Tier I Capital (to risk-weighted assets), Ratio (as a percent) | 6.00% | 6.00% |
Tier 1 Common Equity Capital (to risk-weighted assets), Ratio (as a percent) | 4.50% | 4.50% |
Tier 1 leverage capital (to adjusted average assets), Ratio (as a percent) | 4.00% | 4.00% |
Well Capitalized Requirement | ||
Total Capital (to risk-weighted assets), Ratio (as a percent) | 10.00% | 10.00% |
Tier I Capital (to risk-weighted assets), Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 Common Equity Capital (to risk-weighted assets), Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 leverage capital (to adjusted average assets), Ratio (as a percent) | 5.00% | 5.00% |
Reserve Requirement | ||
Daily average reserve requirement | $ 699,400 | $ 503,800 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segmentbusiness_division | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of business segments | business_division | 3 |
Number of segment whom broad administrative support are provided | 2 |
Business Segments (Operating Re
Business Segments (Operating Results and Other Key Financial Measures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information | |||||||||||
Interest income | $ 359,765 | $ 339,910 | $ 322,775 | $ 302,669 | $ 302,127 | $ 280,317 | $ 278,865 | $ 276,172 | $ 1,325,119 | $ 1,137,481 | $ 1,053,815 |
Charge for funds used | (533,777) | (360,465) | (317,143) | ||||||||
Interest spread on funds used | 791,342 | 777,016 | 736,672 | ||||||||
Interest expense | (40,064) | (36,755) | (32,684) | (30,547) | (29,425) | (26,169) | (25,281) | (23,968) | (140,050) | (104,843) | (103,376) |
Credit on funds provided | 533,777 | 360,465 | 317,143 | ||||||||
Interest spread on funds provided | 393,727 | 255,622 | 213,767 | ||||||||
Net interest income before provision for credit losses | 319,701 | 303,155 | 290,091 | 272,122 | 272,702 | 254,148 | 253,584 | 252,204 | 1,185,069 | 1,032,638 | 950,439 |
Provision for credit losses | 15,517 | 12,996 | 10,685 | 7,068 | 10,461 | 9,525 | 6,053 | 1,440 | 46,266 | 27,479 | 14,217 |
Noninterest income | 45,359 | 49,624 | 47,400 | 116,023 | 48,800 | 49,341 | 44,264 | 40,513 | 258,406 | 182,918 | 183,383 |
Noninterest expense | 175,416 | 164,499 | 169,121 | 153,073 | 149,904 | 170,500 | 148,879 | 146,606 | 662,109 | 615,889 | 540,884 |
Segment income (loss) before income taxes | 174,127 | 175,284 | 157,685 | 228,004 | 161,137 | 123,464 | 142,916 | 144,671 | 735,100 | 572,188 | 578,721 |
Segment income after income taxes | 84,898 | $ 132,660 | $ 118,330 | $ 169,736 | 110,734 | $ 110,143 | $ 103,284 | $ 107,516 | 505,624 | 431,677 | 384,677 |
Segment assets | 37,150,249 | 34,788,840 | 37,150,249 | 34,788,840 | 32,350,922 | ||||||
Retail Banking | |||||||||||
Segment Reporting Information | |||||||||||
Interest income | 364,906 | 315,146 | 331,755 | ||||||||
Charge for funds used | (142,619) | (95,970) | (86,769) | ||||||||
Interest spread on funds used | 222,287 | 219,176 | 244,986 | ||||||||
Interest expense | (76,770) | (60,180) | (53,088) | ||||||||
Credit on funds provided | 445,304 | 300,446 | 261,117 | ||||||||
Interest spread on funds provided | 368,534 | 240,266 | 208,029 | ||||||||
Net interest income before provision for credit losses | 590,821 | 459,442 | 453,015 | ||||||||
Provision for credit losses | 1,812 | (4,356) | (5,835) | ||||||||
Noninterest income | 55,093 | 51,435 | 46,265 | ||||||||
Noninterest expense | 320,287 | 306,570 | 276,144 | ||||||||
Segment income (loss) before income taxes | 323,815 | 208,663 | 228,971 | ||||||||
Segment income after income taxes | 190,404 | 122,256 | 134,383 | ||||||||
Segment assets | 9,316,587 | 7,821,610 | 9,316,587 | 7,821,610 | 7,095,737 | ||||||
Commercial Banking | |||||||||||
Segment Reporting Information | |||||||||||
Interest income | 844,303 | 726,013 | 654,966 | ||||||||
Charge for funds used | (326,902) | (216,849) | (163,601) | ||||||||
Interest spread on funds used | 517,401 | 509,164 | 491,365 | ||||||||
Interest expense | (24,603) | (16,892) | (18,025) | ||||||||
Credit on funds provided | 61,019 | 38,636 | 36,251 | ||||||||
Interest spread on funds provided | 36,416 | 21,744 | 18,226 | ||||||||
Net interest income before provision for credit losses | 553,817 | 530,908 | 509,591 | ||||||||
Provision for credit losses | 44,454 | 31,835 | 20,052 | ||||||||
Noninterest income | 110,104 | 96,010 | 71,867 | ||||||||
Noninterest expense | 193,176 | 172,259 | 159,987 | ||||||||
Segment income (loss) before income taxes | 426,291 | 422,824 | 401,419 | ||||||||
Segment income after income taxes | 251,834 | 248,474 | 236,459 | ||||||||
Segment assets | 21,431,472 | 19,128,510 | 21,431,472 | 19,128,510 | 17,923,319 | ||||||
Other | |||||||||||
Segment Reporting Information | |||||||||||
Interest income | 115,910 | 96,322 | 67,094 | ||||||||
Charge for funds used | (64,256) | (47,646) | (66,773) | ||||||||
Interest spread on funds used | 51,654 | 48,676 | 321 | ||||||||
Interest expense | (38,677) | (27,771) | (32,263) | ||||||||
Credit on funds provided | 27,454 | 21,383 | 19,775 | ||||||||
Interest spread on funds provided | (11,223) | (6,388) | (12,488) | ||||||||
Net interest income before provision for credit losses | 40,431 | 42,288 | (12,167) | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Noninterest income | 93,209 | 35,473 | 65,251 | ||||||||
Noninterest expense | 148,646 | 137,060 | 104,753 | ||||||||
Segment income (loss) before income taxes | (15,006) | (59,299) | (51,669) | ||||||||
Segment income after income taxes | 63,386 | 60,947 | 13,835 | ||||||||
Segment assets | $ 6,402,190 | $ 7,838,720 | $ 6,402,190 | $ 7,838,720 | $ 7,331,866 |
Parent Company Condensed Fin131
Parent Company Condensed Financial Statements (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
East West Bank | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends declared | $ 255,000,000 | $ 100,000,000 | $ 0 |
Parent Company Condensed Fin132
Parent Company Condensed Financial Statements (Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash placed with subsidiary bank | $ 2,174,592 | $ 1,878,503 | $ 1,360,887 | $ 1,039,885 |
Available-for-sale investment securities, at fair value | 3,016,752 | 3,335,795 | ||
Investments in tax credit investments, net | 224,551 | 173,280 | ||
Other assets | 678,952 | 782,400 | ||
TOTAL | 37,150,249 | 34,788,840 | 32,350,922 | |
LIABILITIES | ||||
Long-term debt | 171,577 | 186,327 | ||
Total liabilities | 33,308,298 | 31,361,099 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued in 2017 and 2016, respectively | 165 | 164 | ||
Additional paid-in capital | 1,755,330 | 1,727,434 | ||
Retained earnings | 2,576,302 | 2,187,676 | ||
Treasury stock, at cost — 20,671,710 shares in 2017 and 20,436,621 shares in 2016 | (452,327) | (439,387) | ||
Accumulated other comprehensive loss, net of tax | (37,519) | (48,146) | ||
Total stockholders’ equity | 3,841,951 | 3,427,741 | 3,122,950 | 2,856,111 |
TOTAL | 37,150,249 | 34,788,840 | ||
Parent Company | ||||
ASSETS | ||||
Cash placed with subsidiary bank | 159,566 | 39,264 | $ 18,898 | $ 211,053 |
Available-for-sale investment securities, at fair value | 0 | 9,338 | ||
Investments in tax credit investments, net | 25,511 | 32,245 | ||
Other assets | 7,062 | 4,812 | ||
TOTAL | 4,026,499 | 3,638,318 | ||
LIABILITIES | ||||
Long-term debt | 171,577 | 186,327 | ||
Other liabilities | 12,971 | 24,250 | ||
Total liabilities | 184,548 | 210,577 | ||
STOCKHOLDERS’ EQUITY | ||||
Common stock, $0.001 par value, 200,000,000 shares authorized; 165,214,770 and 164,604,072 shares issued in 2017 and 2016, respectively | 165 | 164 | ||
Additional paid-in capital | 1,755,330 | 1,727,434 | ||
Retained earnings | 2,576,302 | 2,187,676 | ||
Treasury stock, at cost — 20,671,710 shares in 2017 and 20,436,621 shares in 2016 | (452,327) | (439,387) | ||
Accumulated other comprehensive loss, net of tax | (37,519) | (48,146) | ||
Total stockholders’ equity | 3,841,951 | 3,427,741 | ||
TOTAL | 4,026,499 | 3,638,318 | ||
Parent Company | Bank | ||||
ASSETS | ||||
Investments in subsidiaries | 3,830,696 | 3,546,984 | ||
Parent Company | Nonbank | ||||
ASSETS | ||||
Investments in subsidiaries | $ 3,664 | $ 5,675 |
Parent Company Condensed Fin133
Parent Company Condensed Financial Statements (Condensed Balance Sheet - Additional Information) (Details) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Balance sheets | ||
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) | 165,214,770 | 164,604,072 |
Treasury stock, shares (in shares) | 20,671,710 | 20,436,621 |
Parent Company | ||
Balance sheets | ||
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) | 165,214,770 | 164,604,072 |
Treasury stock, shares (in shares) | 20,671,710 | 20,436,621 |
Parent Company Condensed Fin134
Parent Company Condensed Financial Statements (Condensed Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of income | |||||||||||
Interest expense | $ 40,064 | $ 36,755 | $ 32,684 | $ 30,547 | $ 29,425 | $ 26,169 | $ 25,281 | $ 23,968 | $ 140,050 | $ 104,843 | $ 103,376 |
Compensation and employee benefits | 335,291 | 300,115 | 262,193 | ||||||||
Amortization of tax credit and other investments | 87,950 | 83,446 | 36,120 | ||||||||
Other expense | 76,697 | 78,936 | 68,624 | ||||||||
Income tax benefit | (89,229) | (42,624) | (39,355) | (58,268) | (50,403) | (13,321) | (39,632) | (37,155) | (229,476) | (140,511) | (194,044) |
NET INCOME | $ 84,898 | $ 132,660 | $ 118,330 | $ 169,736 | $ 110,734 | $ 110,143 | $ 103,284 | $ 107,516 | 505,624 | 431,677 | 384,677 |
Parent Company | |||||||||||
Statement of income | |||||||||||
Other income | 721 | 610 | 625 | ||||||||
Total income | 259,839 | 100,717 | 713 | ||||||||
Interest expense | 5,429 | 5,017 | 4,636 | ||||||||
Compensation and employee benefits | 5,065 | 5,001 | 5,350 | ||||||||
Amortization of tax credit and other investments | 5,908 | 13,851 | 22,466 | ||||||||
Other expense | 1,257 | 1,218 | 2,399 | ||||||||
Total expense | 17,659 | 25,087 | 34,851 | ||||||||
Income (loss) before income tax benefit and equity in undistributed income of subsidiaries | 242,180 | 75,630 | (34,138) | ||||||||
Income tax benefit | 18,182 | 26,041 | 30,849 | ||||||||
Undistributed earnings of subsidiaries, primarily bank | 245,262 | 330,006 | 387,966 | ||||||||
NET INCOME | 505,624 | 431,677 | 384,677 | ||||||||
Parent Company | Bank | |||||||||||
Statement of income | |||||||||||
Dividends from subsidiaries | 255,000 | 100,000 | 0 | ||||||||
Parent Company | Nonbank | |||||||||||
Statement of income | |||||||||||
Dividends from subsidiaries | $ 4,118 | $ 107 | $ 88 |
Parent Company Condensed Fin135
Parent Company Condensed Financial Statements (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ 84,898 | $ 132,660 | $ 118,330 | $ 169,736 | $ 110,734 | $ 110,143 | $ 103,284 | $ 107,516 | $ 505,624 | $ 431,677 | $ 384,677 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred income tax expense | 33,856 | 26,966 | 261,214 | ||||||||
Gains on sales of available-for-sale investment securities | (8,037) | (10,362) | (40,367) | ||||||||
Net change in other assets | 46,005 | 23,685 | (117,046) | ||||||||
Net change in other liabilities | (1,966) | 15,353 | 16,785 | ||||||||
Net cash provided by (used in) operating activities | 696,906 | 641,856 | 469,624 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Net increase in investments in tax credit and other investments, net | (161,661) | (87,860) | (95,074) | ||||||||
Purchases of available-for-sale investment securities | (828,604) | (2,396,199) | (3,547,193) | ||||||||
Proceeds from the sale of available-for-sale investment securities | 832,844 | 1,275,645 | 1,669,334 | ||||||||
Net cash used in investing activities | (2,500,455) | (1,792,660) | (3,627,881) | ||||||||
Proceeds from: | |||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 2,280 | 2,982 | 2,835 | ||||||||
Payments for: | |||||||||||
Repurchase of vested shares due to employee tax liability | (12,940) | (3,225) | (5,964) | ||||||||
Other net financing activities | 0 | 1,055 | 3,291 | ||||||||
Net cash provided by financing activities | 2,068,460 | 1,680,360 | 3,490,306 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 296,089 | 517,616 | 321,002 | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,878,503 | 1,360,887 | 1,878,503 | 1,360,887 | 1,039,885 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 2,174,592 | 1,878,503 | 2,174,592 | 1,878,503 | 1,360,887 | ||||||
Parent Company | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | 505,624 | 431,677 | 384,677 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed earnings of subsidiaries, principally bank | (245,262) | (330,006) | (387,966) | ||||||||
Amortization expenses | 6,158 | 14,094 | 22,870 | ||||||||
Deferred income tax expense | 940 | 6,349 | 17,555 | ||||||||
Gains on sales of available-for-sale investment securities | (326) | 0 | (20) | ||||||||
Net change in other assets | (3,341) | 39,929 | (42,292) | ||||||||
Net change in other liabilities | (560) | 794 | (15,887) | ||||||||
Net cash provided by (used in) operating activities | 263,233 | 162,837 | (21,063) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Net increase in investments in tax credit and other investments, net | (9,777) | (6,554) | (35,633) | ||||||||
Purchases of available-for-sale investment securities | (9,000) | 0 | 0 | ||||||||
Proceeds from the sale of available-for-sale investment securities | 18,326 | 0 | 20 | ||||||||
Net cash used in investing activities | (451) | (6,554) | (35,613) | ||||||||
Proceeds from: | |||||||||||
Issuance of common stock pursuant to various stock compensation plans and agreements | 2,280 | 2,081 | 2,835 | ||||||||
Payments for: | |||||||||||
Repayment of long-term debt | (15,000) | (20,000) | (20,000) | ||||||||
Repurchase of vested shares due to employee tax liability | (12,940) | (3,225) | (5,964) | ||||||||
Cash dividends on common stock | (116,820) | (115,828) | (115,641) | ||||||||
Other net financing activities | 0 | 1,055 | 3,291 | ||||||||
Net cash provided by financing activities | (142,480) | (135,917) | (135,479) | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 120,302 | 20,366 | (192,155) | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | $ 39,264 | $ 18,898 | 39,264 | 18,898 | 211,053 | ||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ 159,566 | $ 39,264 | $ 159,566 | $ 39,264 | $ 18,898 |
Quarterly Financial Informat136
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 359,765 | $ 339,910 | $ 322,775 | $ 302,669 | $ 302,127 | $ 280,317 | $ 278,865 | $ 276,172 | $ 1,325,119 | $ 1,137,481 | $ 1,053,815 |
Interest expense | 40,064 | 36,755 | 32,684 | 30,547 | 29,425 | 26,169 | 25,281 | 23,968 | 140,050 | 104,843 | 103,376 |
Net interest income before provision for credit losses | 319,701 | 303,155 | 290,091 | 272,122 | 272,702 | 254,148 | 253,584 | 252,204 | 1,185,069 | 1,032,638 | 950,439 |
Provision for credit losses | 15,517 | 12,996 | 10,685 | 7,068 | 10,461 | 9,525 | 6,053 | 1,440 | 46,266 | 27,479 | 14,217 |
Net interest income after provision for credit losses | 304,184 | 290,159 | 279,406 | 265,054 | 262,241 | 244,623 | 247,531 | 250,764 | 1,138,803 | 1,005,159 | 936,222 |
Noninterest income | 45,359 | 49,624 | 47,400 | 116,023 | 48,800 | 49,341 | 44,264 | 40,513 | 258,406 | 182,918 | 183,383 |
Noninterest expense | 175,416 | 164,499 | 169,121 | 153,073 | 149,904 | 170,500 | 148,879 | 146,606 | 662,109 | 615,889 | 540,884 |
Income before income taxes | 174,127 | 175,284 | 157,685 | 228,004 | 161,137 | 123,464 | 142,916 | 144,671 | 735,100 | 572,188 | 578,721 |
Income tax expense | 89,229 | 42,624 | 39,355 | 58,268 | 50,403 | 13,321 | 39,632 | 37,155 | 229,476 | 140,511 | 194,044 |
NET INCOME | $ 84,898 | $ 132,660 | $ 118,330 | $ 169,736 | $ 110,734 | $ 110,143 | $ 103,284 | $ 107,516 | $ 505,624 | $ 431,677 | $ 384,677 |
EPS | |||||||||||
Basic (in dollars per share) | $ 0.59 | $ 0.92 | $ 0.82 | $ 1.18 | $ 0.77 | $ 0.76 | $ 0.72 | $ 0.75 | $ 3.50 | $ 3 | $ 2.67 |
Diluted (in dollars per share) | $ 0.58 | $ 0.91 | $ 0.81 | $ 1.16 | $ 0.76 | $ 0.76 | $ 0.71 | $ 0.74 | $ 3.47 | $ 2.97 | $ 2.66 |
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING | |||||||||||
Basic (in shares) | 144,542 | 144,498 | 144,485 | 144,249 | 144,166 | 144,122 | 144,101 | 143,958 | 144,444 | 144,087 | 143,818 |
Diluted (in shares) | 146,030 | 145,882 | 145,740 | 145,732 | 145,428 | 145,238 | 145,078 | 144,803 | 145,913 | 145,172 | 144,512 |
Dividends declared per common share (in dollars per share) | $ 0.2 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.8 | $ 0.8 | $ 0.8 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 15, 2018 | Jan. 25, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent events | |||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.2 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.8 | $ 0.8 | $ 0.8 | ||
Subsequent Event | |||||||||||||
Subsequent events | |||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.20 | ||||||||||||
Dividends paid per common share (in dollars per share) | $ 0.20 |