Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 22, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34657 | |
Entity Registrant Name | TEXAS CAPITAL BANCSHARES INC/TX | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2679109 | |
Entity Address, Address Line One | 2000 McKinney Avenue | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Country | US | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 932-6600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,444,436 | |
Entity Central Index Key | 0001077428 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TCBI | |
Security Exchange Name | NASDAQ | |
Series A Preferred Stock [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 6.5% Non-Cumulative Perpetual Preferred Stock Series A, par value $0.01 per share | |
Trading Symbol | TCBIP | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 176,540 | $ 161,817 |
Interest-bearing deposits in other banks | 9,490,044 | 4,233,766 |
Federal funds sold and securities purchased under resale agreements | 50,000 | 30,000 |
Investment securities | 234,969 | 239,871 |
Loans held for sale ($454.6 million at June 30, 2020 and $2,571.3 million at December 31, 2019, at fair value) | 454,581 | 2,577,134 |
Loans held for investment, mortgage finance | 8,972,626 | 8,169,849 |
Loans held for investment (net of unearned income) | 16,552,203 | 16,476,413 |
Less: Allowance for credit losses on loans | (264,722) | (195,047) |
Loans held for investment, net | 25,260,107 | 24,451,215 |
Mortgage servicing rights, net | 75,451 | 64,904 |
Premises and equipment, net | 28,603 | 31,212 |
Accrued interest receivable and other assets | 824,963 | 740,051 |
Goodwill and intangible assets, net | 17,869 | 18,099 |
Total assets | 36,613,127 | 32,548,069 |
Deposits: | ||
Non-interest-bearing | 10,835,911 | 9,438,459 |
Interest-bearing | 19,351,784 | 17,040,134 |
Total deposits | 30,187,695 | 26,478,593 |
Accrued interest payable | 20,314 | 12,760 |
Other liabilities | 378,858 | 318,094 |
Federal funds purchased and repurchase agreements | 195,790 | 141,766 |
Other borrowings | 2,700,000 | 2,400,000 |
Subordinated notes, net | 282,309 | 282,129 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Total liabilities | 33,878,372 | 29,746,748 |
Comprehensive income: | ||
Preferred stock, $.01 par value, $1,000 liquidation value: Authorized shares - 10,000,000; Issued shares - 6,000,000 shares issued at December 31, 2018 and 2017 | 150,000 | 150,000 |
Common stock, $.01 par value: Authorized shares - 100,000,000; Issued shares - 45,735,424 and 41,036,787 at December 31, 2018 and 2017, respectively | 504 | 503 |
Additional paid-in capital | 983,144 | 978,205 |
Retained earnings | 1,600,639 | 1,663,671 |
Treasury stock (shares at cost: 417 at June 30, 2020 and December 31, 2019) | (8) | (8) |
Accumulated other comprehensive income, net of taxes | 476 | 8,950 |
Total stockholders’ equity | 2,734,755 | 2,801,321 |
Total liabilities and stockholders’ equity | $ 36,613,127 | $ 32,548,069 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Loans held for sale ($454.6 million at June 30, 2020 and $2,571.3 million at December 31, 2019, at fair value) | $ 454,600,000 | $ 2,571,300,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, Liquidation value | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 6,000,000 | 6,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 50,436,089 | 50,338,158 |
Treasury stock, shares | 417 | 417 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income | ||||
Interest and fees on loans | $ 247,595 | $ 329,842 | $ 531,220 | $ 642,545 |
Investment securities | 2,024 | 2,260 | 4,207 | 3,720 |
Federal funds sold and securities purchased under resale agreements | 77 | 157 | 691 | 536 |
Interest-bearing deposits in other banks | 2,314 | 14,634 | 21,900 | 25,653 |
Total interest income | 252,010 | 346,893 | 558,018 | 672,454 |
Interest expense | ||||
Deposits | 32,294 | 72,529 | 94,468 | 141,583 |
Federal funds purchased | 176 | 5,202 | 845 | 8,718 |
Other borrowings | 4,569 | 20,124 | 14,151 | 31,978 |
Subordinated notes | 4,191 | 4,191 | 8,382 | 8,382 |
Trust preferred subordinated debentures | 852 | 1,294 | 1,925 | 2,626 |
Total interest expense | 42,082 | 103,340 | 119,771 | 193,287 |
Net interest income | 209,928 | 243,553 | 438,247 | 479,167 |
Provision for credit losses | 100,000 | 27,000 | 196,000 | 47,000 |
Net interest income after provision for credit losses | 109,928 | 216,553 | 242,247 | 432,167 |
Non-interest income | ||||
Service charges on deposit accounts | 2,459 | 2,849 | 5,752 | 5,828 |
Wealth management and trust fee income | 2,348 | 2,129 | 4,815 | 4,138 |
Brokered loan fees | 10,764 | 7,336 | 18,779 | 12,402 |
Servicing income | 6,120 | 3,126 | 10,866 | 5,860 |
Swap fees | 1,468 | 601 | 4,225 | 1,632 |
Net gain/(loss) on sale of loans held for sale | 39,023 | (5,986) | 26,023 | (6,491) |
Other | 8,320 | 14,309 | 11,822 | 31,009 |
Total non-interest income | 70,502 | 24,364 | 82,282 | 54,378 |
Non-interest expense | ||||
Salaries and employee benefits | 100,791 | 77,757 | 177,984 | 157,513 |
Net occupancy expense | 9,134 | 7,910 | 17,846 | 15,789 |
Marketing | 7,988 | 14,087 | 16,510 | 25,795 |
Legal and professional | 11,330 | 10,004 | 28,796 | 20,034 |
Communications and technology | 42,760 | 11,022 | 56,551 | 20,220 |
FDIC insurance assessment | 7,140 | 4,138 | 12,989 | 9,260 |
Servicing-related expenses | 20,117 | 6,066 | 36,471 | 11,448 |
Merger-related expenses | 10,486 | 0 | 17,756 | 0 |
Other | 12,606 | 10,734 | 22,866 | 23,175 |
Total non-interest expense | 222,352 | 141,718 | 387,769 | 283,234 |
Income/(loss) before income taxes | (41,922) | 99,199 | (63,240) | 203,311 |
Income tax expense/(benefit) | (7,606) | 21,387 | (12,237) | 43,798 |
Net income/(loss) | (34,316) | 77,812 | (51,003) | 159,513 |
Preferred stock dividends | 2,437 | 2,437 | 4,875 | 4,875 |
Net income/(loss) available to common stockholders | (36,753) | 75,375 | (55,878) | 154,638 |
Other comprehensive income/(loss) | ||||
Change in unrealized gain/(loss) on available-for-sale debt securities arising during period, before tax | (5,435) | 9,921 | (10,727) | 9,868 |
Income tax expense/(benefit) related to unrealized loss on available-for-sale debt securities | (1,142) | 2,083 | (2,253) | 2,073 |
Other comprehensive income/(loss), net of tax | (4,293) | 7,838 | (8,474) | 7,795 |
Comprehensive income/(loss) | $ (38,609) | $ 85,650 | $ (59,477) | $ 167,308 |
Basic earnings/(loss) per common share | ||||
Basic earnings/(loss) per common share | $ (0.73) | $ 1.50 | $ (1.11) | $ 3.07 |
Diluted earnings/(loss) per common share | ||||
Diluted earnings/(loss) per common share | $ (0.73) | $ 1.50 | $ (1.11) | $ 3.07 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period Of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period Of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Income | ||
Beginning balance - Shares at Dec. 31, 2018 | (6,000,000) | (50,201,127) | (417) | ||||||||
Beginning balance - Amount at Dec. 31, 2018 | $ 2,480,308 | $ 150,000 | $ 502 | $ 967,890 | $ 1,361,406 | $ (8) | $ 518 | ||||
Comprehensive income: | |||||||||||
Net income | 159,513 | 159,513 | |||||||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | 7,795 | 7,795 | |||||||||
Comprehensive income/(loss) | 167,308 | ||||||||||
Stock-based compensation expense recognized in earnings | 5,542 | 5,542 | |||||||||
Preferred stock dividend | (4,875) | (4,875) | |||||||||
Issuance of stock related to stock-based awards - Shares | 88,074 | ||||||||||
Issuance of stock related to stock-based awards - Amount | (1,212) | $ 1 | (1,213) | ||||||||
Issuance of common stock related to warrants - shares | 8,768 | ||||||||||
Issuance of common stock related to warrants | 0 | ||||||||||
Ending balance - Amount at Jun. 30, 2019 | 2,647,071 | $ 150,000 | $ 503 | 972,219 | 1,516,044 | $ (8) | 8,313 | ||||
Ending balance - Shares at Jun. 30, 2019 | (6,000,000) | (50,297,969) | (417) | ||||||||
Beginning balance - Shares at Mar. 31, 2019 | (6,000,000) | (50,264,028) | (417) | ||||||||
Beginning balance - Amount at Mar. 31, 2019 | 2,560,718 | $ 150,000 | $ 503 | 969,079 | 1,440,669 | $ (8) | 475 | ||||
Comprehensive income: | |||||||||||
Net income | 77,812 | 77,812 | |||||||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | 7,838 | 7,838 | |||||||||
Comprehensive income/(loss) | 85,650 | ||||||||||
Stock-based compensation expense recognized in earnings | 3,119 | 3,119 | |||||||||
Preferred stock dividend | (2,437) | (2,437) | |||||||||
Issuance of stock related to stock-based awards - Shares | 33,941 | ||||||||||
Issuance of stock related to stock-based awards - Amount | 21 | 21 | |||||||||
Ending balance - Amount at Jun. 30, 2019 | 2,647,071 | $ 150,000 | $ 503 | 972,219 | 1,516,044 | $ (8) | 8,313 | ||||
Ending balance - Shares at Jun. 30, 2019 | (6,000,000) | (50,297,969) | (417) | ||||||||
Beginning balance - Shares at Dec. 31, 2019 | (6,000,000) | (50,338,158) | (417) | ||||||||
Beginning balance - Amount at Dec. 31, 2019 | 2,801,321 | $ (7,154) | [1] | $ 150,000 | $ 503 | 978,205 | 1,663,671 | $ (7,154) | [1] | $ (8) | 8,950 |
Comprehensive income: | |||||||||||
Net income | (51,003) | (51,003) | |||||||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | (8,474) | (8,474) | |||||||||
Comprehensive income/(loss) | (59,477) | ||||||||||
Stock-based compensation expense recognized in earnings | 6,549 | 6,549 | |||||||||
Preferred stock dividend | (4,875) | (4,875) | |||||||||
Issuance of stock related to stock-based awards - Shares | 97,931 | ||||||||||
Issuance of stock related to stock-based awards - Amount | (1,609) | $ 1 | (1,610) | ||||||||
Ending balance - Amount at Jun. 30, 2020 | 2,734,755 | $ 150,000 | $ 504 | 983,144 | 1,600,639 | $ (8) | 476 | ||||
Ending balance - Shares at Jun. 30, 2020 | (6,000,000) | (50,436,089) | (417) | ||||||||
Beginning balance - Shares at Mar. 31, 2020 | (6,000,000) | (50,408,195) | (417) | ||||||||
Beginning balance - Amount at Mar. 31, 2020 | 2,772,596 | $ 0 | [2] | $ 150,000 | $ 504 | 979,939 | 1,637,392 | $ 0 | [2] | $ (8) | 4,769 |
Comprehensive income: | |||||||||||
Net income | (34,316) | (34,316) | |||||||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | (4,293) | (4,293) | |||||||||
Comprehensive income/(loss) | (38,609) | ||||||||||
Stock-based compensation expense recognized in earnings | 3,322 | 3,322 | |||||||||
Preferred stock dividend | (2,437) | (2,437) | |||||||||
Issuance of stock related to stock-based awards - Shares | 27,894 | ||||||||||
Issuance of stock related to stock-based awards - Amount | (117) | (117) | |||||||||
Ending balance - Amount at Jun. 30, 2020 | $ 2,734,755 | $ 150,000 | $ 504 | $ 983,144 | $ 1,600,639 | $ (8) | $ 476 | ||||
Ending balance - Shares at Jun. 30, 2020 | (6,000,000) | (50,436,089) | (417) | ||||||||
[1] | Represents the impact of adopting Accounting Standard Update ("ASU") 2016-13. See Note 1 to the consolidated financial statements for more information. | ||||||||||
[2] | Represents the impact of adopting Accounting Standard Update ("ASU") 2016-13. See Note 1 to the consolidated financial statements for more information. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Income tax expense (benefit) related to unrealized loss on available-for-sale securities | $ (1,142) | $ 2,083 | $ (2,253) | $ 2,073 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income/(loss) | $ (51,003) | $ 159,513 |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Provision for credit losses | 196,000 | 47,000 |
Depreciation and amortization | 31,320 | 15,938 |
Net (gain)/loss on sale of loans held for sale | (26,023) | 6,491 |
Increase in valuation allowance on mortgage servicing rights | 20,818 | 5,772 |
Stock-based compensation expense | 7,029 | 8,945 |
Purchases and originations of loans held for sale | (4,931,981) | (4,172,519) |
Proceeds from sales and repayments of loans held for sale | 7,022,960 | 5,045,744 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable and other assets | (74,155) | (190,910) |
Accrued interest payable and other liabilities | 57,795 | 99,933 |
Net cash provided by operating activities | 2,252,760 | 1,025,907 |
Investing activities | ||
Purchases of investment securities | (10,813) | (110,394) |
Principal payments received on investment securities | 5,168 | 1,159 |
Originations of mortgage finance loans | (94,837,775) | (59,008,649) |
Proceeds from pay-offs of mortgage finance loans | 94,034,998 | 57,470,810 |
Net increase in loans held for investment, excluding mortgage finance loans | (207,635) | (258,579) |
Purchase of premises and equipment, net | (2,344) | (8,758) |
Proceeds from sale of other real estate owned, net | 0 | 79 |
Net cash used in investing activities | (1,018,401) | (1,914,332) |
Financing activities | ||
Net increase in deposits | 3,709,102 | 2,392,964 |
Costs from issuance of stock related to stock-based awards and warrants | (1,609) | (1,212) |
Preferred dividends paid | (4,875) | (4,875) |
Net increase/(decrease) in other borrowings | 300,000 | |
Net increase/(decrease) in other borrowings | (800,000) | |
Net increase in federal funds purchased and repurchase agreements | 54,024 | (133,940) |
Repurchase of redeemable NCI | (33,942) | 0 |
Net cash provided by financing activities | 4,056,642 | 1,452,937 |
Net increase in cash and cash equivalents | 5,291,001 | 564,512 |
Cash and cash equivalents at beginning of period | 4,425,583 | 3,080,065 |
Cash and cash equivalents at end of period | 9,716,584 | 3,644,577 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 112,217 | 190,847 |
Cash paid during the period for income taxes | $ 19,835 | $ 63,998 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Summary of Significant Accounting Policies | Operations and Summary of Significant Accounting Policies Organization and Nature of Business Texas Capital Bancshares, Inc. (the "Company” or "TCBI"), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the "Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional or national clientele of commercial borrowers. We are primarily a secured lender, with the majority of our loans held for investment, excluding mortgage finance loans and other national lines of business, being made to businesses headquartered or with operations in Texas. Our national lines of business provide specialized lending products to businesses throughout the United States. On December 9, 2019, the Company and Independent Bank Group, Inc. (“IBTX”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions therein, the Company would be merged with and into IBTX. On May 22, 2020, the Company and IBTX entered into an agreement (the “Mutual Termination Agreement”) pursuant to which the parties mutually agreed to terminate the Merger Agreement. Neither party paid a termination fee in connection with the termination of the Merger Agreement. Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States ("GAAP") and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2019 , included in our 2019 Form 10-K. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Revision of Prior Period Financial Statements During the second quarter of 2020, the Company identified an error in our historical financial statements related to the accounting for certain share-based liabilities of a consolidated entity that contained put features, whereby the liabilities were not remeasured to their puttable value at each period end. The aggregate amount of the errors at each period end represented 1% or less of our stockholders' equity in all prior periods. In accordance with the guidance set forth in SEC Staff Bulletin 99, Materiality , and SEC Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financials , the Company concluded that the error was not material, individually or in the aggregate with other previously identified immaterial errors, to any prior periods, the current period or the trend in earnings from a quantitative and qualitative perspective. However, correcting the cumulative effect of the errors in the current period would have resulted in a material misstatement in the current period and, as such, we have revised our previously reported financial information contained in our Quarterly Report on Form 10-Q for the three and six-months ended June 30, 2019 to correct the immaterial error, as well as other previously identified immaterial errors. We will also revise previously reported financial information for these immaterial errors in our future filings, as applicable. A summary of revisions to certain previously reported financial information is presented below: Revised Consolidated Balance Sheet as of December 31, 2019 ( in thousands) As Reported Adjustment As Revised Other liabilities $ 287,157 $ 30,937 $ 318,094 Total liabilities 29,715,811 30,937 29,746,748 Retained Earnings 1,694,608 (30,937 ) 1,663,671 Total Equity 2,832,258 (30,937 ) 2,801,321 Revised Consolidated Statement of Operations and Other Comprehensive Income/(Loss) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) As Reported Adjustment As Revised As Reported Adjustment As Revised Salaries and employee benefits expense $ 76,889 $ 868 $ 77,757 $ 154,712 $ 2,801 $ 157,513 Other non-interest expense 11,445 (711 ) 10,734 24,681 (1,506 ) 23,175 Total non-interest expense 141,561 157 141,718 281,939 1,295 283,234 Income before tax 99,356 (157 ) 99,199 204,606 (1,295 ) 203,311 Net income 77,969 (157 ) 77,812 160,808 (1,295 ) 159,513 Net income available to common stockholders 75,532 (157 ) 75,375 155,933 (1,295 ) 154,638 Comprehensive income 85,807 (157 ) 85,650 168,603 (1,295 ) 167,308 Revised Consolidated Statement of Stockholders' Equity(1) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) As Reported Adjustment As Revised As Reported Adjustment As Revised Beginning balance retained earnings $ 1,461,893 $ (21,224 ) $ 1,440,669 $ 1,381,492 $ (20,086 ) $ 1,361,406 Beginning balance total equity 2,581,942 (21,224 ) 2,560,718 2,500,394 (20,086 ) 2,480,308 Ending balance retained earnings 1,537,425 (21,381 ) 1,516,044 1,537,425 (21,381 ) 1,516,044 Ending balance total equity 2,668,452 (21,381 ) 2,647,071 2,668,452 (21,381 ) 2,647,071 (1) March 31, 2020 reported balances of $1,668,329 and $2,803,533 for retained earnings and total equity, respectively were both adjusted down by $30,937 to revised balances of $1,637,392 and $2,772,596 , respectively. The share-based liabilities relate to agreements with certain employees of a subsidiary of the Company that was acquired in 2005. The terms of the agreements include a put feature, that when exercised, requires mandatory settlement by the Company of the share-based liability at a formulaic price. The put feature causes the liability to be remeasured to current puttable value at each period end. The impact of adjusting the liability to puttable value at each period is recorded in salaries and employee benefits expense. During the second quarter of 2020, put features were exercised on a portion of the outstanding liability. As of June 30, 2020, the carrying value of these share-based liabilities totaled $6.7 million and is recorded in other liabilities on the consolidated balance sheets. Accounting Changes On January 1, 2020, we adopted ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which replaces the incurred loss methodology for determining our provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the Current Expected Credit Loss ("CECL") model. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASU 2016-02 "Leases (Topic 842)" . In addition, ASU 2016-13 made changes to the accounting for available-for-sale debt securities. One such change is to require credit-related impairments to be recognized in the allowance for credit losses rather than as a write-down of the securities' amortized cost basis when management does not intend to sell or believes that it is not more likely than not that they will be required to sell the securities prior to recovery of the securities amortized cost basis. We adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost, off-balance sheet credit exposures and net investments in leases. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We adopted ASU 2016-13 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASU 2016-13. The following table illustrates the impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified as a result of changes made to our primary portfolio segments under CECL: January 1, 2020 (in thousands) As Reported Under ASU 2016-13 Pre-ASU 2016-13 Impact of ASU 2016-13 Adoption Assets: Loans held for investment (outstanding balance) Commercial $ 9,133,444 $ 10,230,828 $ (1,097,384 ) Energy 1,425,309 1,425,309 Mortgage finance 8,169,849 8,169,849 — Construction 2,563,339 (2,563,339 ) Real estate 6,008,040 3,444,701 2,563,339 Consumer 71,463 (71,463 ) Equipment leases 256,462 (256,462 ) Allowance for credit losses on loans (203,632 ) (195,047 ) (8,585 ) Total loans held for investment, net 24,442,630 24,451,215 (8,585 ) Net deferred tax asset 23,058 21,064 1,994 Liabilities: Allowance for credit losses on off-balance sheet exposures 9,203 8,640 563 Equity: Retained earnings 1,656,517 1,663,671 (7,154 ) In connection with our adoption of ASU 2016-13, changes were made to our primary portfolio segments to align with the methodology applied in determining the allowance under CECL. These changes included segregating energy loans into a stand-alone portfolio segment and reclassifying consumer and equipment leases into the commercial loan portfolio segment. Additionally, construction and real estate loans were combined into a single portfolio segment, referred to as real estate. The real estate loan portfolio segment includes loans further categorized as commercial real estate, residential homebuilder finance, secured by 1-4 family and an "other" category. See Allowance for Credit Losses - Loans below for further discussion of these portfolio segments. Loans Loans Held for Investment Loans held for investment (including financing leases) are stated at the amount of unpaid principal reduced by deferred income (net of costs). Interest on loans is recognized using the simple interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Restructured loans are loans on which, due to the borrower’s financial difficulties, we have granted a concession that we would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, a reduction of the face amount of debt or forgiveness of either principal or accrued interest. A loan continues to qualify as restructured until a consistent payment history or change in the borrower’s financial condition has been evidenced, generally for no less than twelve months. If the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that we are willing to accept for a new extension of credit with comparable risk, then the loan is no longer considered a restructuring if it is in compliance with the modified terms in calendar years after the year of the restructure. A loan is considered past due when a contractually due payment has not been received by the contractual due date. We place a loan on non-accrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed as a reduction of current period interest income. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Loans held for investment includes legal ownership interests in mortgage loans that we purchase through our mortgage warehouse lending division. The ownership interests are purchased from unaffiliated mortgage originators who are seeking additional funding through sale of the undivided ownership interests to facilitate their ability to originate loans. The mortgage originator has no obligation to offer and we have no obligation to purchase these interests. The originator closes mortgage loans consistent with underwriting standards established by approved investors, and, at the time of the sale to the investor, our ownership interest and that of the originator are delivered by us to the investor selected by the originator and approved by us. We typically purchase up to a 99% ownership interest in each mortgage with the originator owning the remaining percentage. These mortgage ownership interests are generally held by us for a period of less than 30 days and more typically 10-20 days. Because of conditions in agreements with originators designed to reduce transaction risks, under ASC 860, Transfers and Servicing of Financial Assets (“ASC 860”), the ownership interests do not qualify as participating interests. Under ASC 860, the ownership interests are deemed to be loans to the originators and payments we receive from investors are deemed to be payments made by or on behalf of the originator to repay the loan deemed made to the originator. Because we have an actual, legal ownership interest in the underlying residential mortgage loan, these interests are reported as extensions of credit to the originators that are secured by the mortgage loans as collateral. Due to market conditions or events of default by the investor or the originator, we could be required to purchase the remaining interests in the mortgage loans and hold them beyond the expected 10-20 days. Mortgage loans acquired under these conditions would require mark-to-market adjustments to income and could require future allocations of the allowance for credit losses or be subject to charge-off in the event the loans become impaired. Allowance for Credit Losses The allowance for credit losses is an estimate of the expected credit losses in the loans held for investment and available-for-sale debt securities portfolios. Loans ASU 2016-13 replaces the incurred loss impairment model, which recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, credit quality, or term, as well as for changes in macroeconomic conditions, such as changes in unemployment rates, crude oil prices, property values or other relevant factors. The allowance for credit losses is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Reserves on loans that do not share risk characteristics are evaluated on an individual basis. In order to determine the allowance for credit losses, all loans are assigned a credit grade. Loans graded substandard or worse and greater than $500,000 are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. For purposes of determining the pool-basis reserve, the remainder of the portfolio, representing all loans not assigned an individual reserve, is segregated first by portfolio segment, then by product type, to recognize differing risk profiles within portfolio segments, and finally by credit grade. Each credit grade within each product type is assigned a historical loss rate. These historical loss rates are then modified to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments using a Portfolio Level Qualitative Factor ("PLQF") and/or a Portfolio Segment Level Qualitative Factor ("SLQF"). These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in other liabilities. The PLQF and SLQF are utilized to address factors that are not present in historical loss rates and are otherwise unaccounted for in the quantitative process. The PLQF is used to apply a qualitative adjustment across the entire portfolio of loans, while the SLQF is designed to apply a qualitative adjustment across a single portfolio segment. Even though portions of the allowance may be allocated to specific loans, the entire allowance is available for any credit that, in management’s judgment, should be charged off. We generally use a two-year forecast period, based on a single consensus forecast scenario, using variables we believe are most relevant to each portfolio segment. For periods beyond which we are able to develop reasonable and supportable forecasts, we immediately revert to the average historical loss rate. The forecast period and scenario used is reviewed on a quarterly basis and may be adjusted based on management's view of the current economic conditions and level of predictability the forecast can provide. Portfolio segments are used to pool loans with similar risk characteristics and align with our methodology for measuring expected credit losses. A summary of our primary portfolio segments is as follows: Commercial . Our commercial loan portfolio is comprised of lines of credit for working capital, term loans and leases to finance equipment and other business assets across a variety of industries. These loans are used for general corporate purposes including financing working capital, internal growth, acquisitions and business insurance premiums and are generally secured by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Our commercial loan portfolio also includes consumer loans because our small portfolio of consumer loans is largely comprised of accommodation loans to individuals associated with our commercial clients. Energy . Our energy loan portfolio is primarily comprised of loans to exploration and production (“E&P”) companies that are generally collateralized with proven reserves based on appropriate valuation standards that take into account the risk of oil and gas price volatility. The majority of this portfolio is first lien, senior secured, reserve-based lending, which we believe is the lowest-risk form of energy lending. Energy loans are impacted by commodity price volatility, as well as changes in consumer and business demand. Mortgage finance . Mortgage finance loans relate to our mortgage warehouse lending operations in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30 days and more typically 10-20 days before they are sold to an approved investor. Volumes fluctuate based on the level of market demand for the product and the number of days between purchase and sale of the loans, which can be affected by changes in overall market interest rates and housing demand and tend to peak at the end of each month. Mortgage finance loans are consistently underwritten based on standards established by the approved investors. Market conditions or events of default by an investor or originator could require that we repurchase the remaining interests in the mortgage loans and hold them beyond the expected 10-20 days. Real estate . Our real estate portfolio is comprised of the following types of loans: Commercial real estate ("CRE") . Our CRE portfolio is comprised of both construction/development financing and limited term financing provided to professional real estate developers and owners/managers of commercial real estate projects and properties who have a demonstrated record of past success with similar properties. Collateral properties include office buildings, warehouse/distribution buildings, shopping centers, hotels/motels, senior living, apartment buildings and residential and commercial tract development. The primary source of repayment on these loans is expected to come from the sale, permanent financing or lease of the real property collateral. CRE loans are impacted by fluctuations in collateral values, as well as the ability of the borrower to obtain permanent financing. Residential homebuilder finance ("RBF") . The RBF portfolio is comprised of loans made to residential builders and developers. Loans to residential builders are typically in the form of uncommitted guidance lines and are for the purpose of developing lots into single-family homes, while loans to developers are typically in the form of borrowing base lines extended for the purpose of acquiring and developing raw land into lots that can be further sold to home builders. RBF loans, if not structured and monitored correctly, can be impacted by volatility in consumer demand, as well as fluctuation in housing prices. Secured by 1-4 family . This category of loans includes both first and second lien loans made for the purpose of purchasing or constructing 1-4 family residential dwellings, as well as home equity revolving lines of credit and loans to purchase lots for future construction of 1-4 family residential dwellings. Other . The "other" category is primarily comprised of real estate loans originated through a Small Business Administration (SBA) program where repayment is partially guaranteed by the SBA, as well as other loans secured by real estate where the primary source of repayment is not expected to come from the sale or lease of the real property collateral. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Within our criticized/classified credit grades are special mention, substandard and doubtful. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inadequately protected by the sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired. Substandard loans can be accruing or can be on non-accrual depending on the circumstances of the individual loans. Loans classified as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are on non-accrual. The methodology used in the estimation of the allowance, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality and forecasted economic conditions. Changes are reflected in the pool-basis allowance and in reserves assigned on an individual basis as the collectability of classified loans is evaluated with new information. As our portfolio has matured, historical loss ratios have been closely monitored. The review of the appropriateness of the allowance is performed by executive management and presented to the audit and risk committees of our board of directors for their review. The committees report to the board as part of the board's review on a quarterly basis of our consolidated financial statements. When management determines that foreclosure is probable, and for certain collateral-dependent loans where foreclosure is not considered probable, expected credit losses are based on the fair value of the collateral adjusted for selling costs, when appropriate. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation that a loan will be restructured, or the extension or renewal options are included in the borrower contract and are not unconditionally cancellable by us. We do not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on non-accrual status as discussed above. Investment Securities Available-for-Sale For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell or it is more-likely-than-not that we will be required to sell the securities before recovery of the amortized cost basis. If either of these criteria is met, the securities' amortized cost basis is written down to fair value as a current period expense. If either of the above criteria is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making this assessment, we may consider various factors including the extent to which fair value is less than amortized cost, performance of any underlying collateral and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess of the amortized cost basis over the present value of expected cash flows is recorded as an allowance for credit loss, limited to the amount by which the fair value is less than the amortized cost basis. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a non credit-related impairment. We have made a policy election to exclude accrued interest from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in accrued interest and other assets in the consolidated balance sheets. Available-for-sale debt securities are placed on non-accrual status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable. All debt securities are available-for-sale as of June 30, 2020 and December 31, 2019. Included in debt securities available-for-sale are Credit Risk Transfer ("CRT") securities. CRT securities represent unsecured obligations issued by government sponsored entities ("GSEs") such as Freddie Mac and are designed to transfer mortgage credit risk from the GSE to private investors. CRT securities are structured to be subject to the performance of a reference pool of mortgage loans in which we share in 50% of the first losses with the GSE. If the reference pool incurs losses, the amount we will recover on the notes is reduced by our share of the amount of such losses, which could potentially be up to 100% of the amount outstanding. Unrealized losses recognized in accumulated other comprehensive income ("AOCI") for the CRT securities are primarily related to the difference between the current market rate for similar securities and the stated interest rate and are not considered to be related to credit loss events. The CRT securities are generally interest-only for an initial period of time and are restricted from being transferred until a future date. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, (in thousands except share and per share data) 2020 2019 2020 2019 Numerator: Net income/(loss) $ (34,316 ) $ 77,812 $ (51,003 ) $ 159,513 Preferred stock dividends 2,437 2,437 4,875 4,875 Net income/(loss) available to common stockholders $ (36,753 ) $ 75,375 $ (55,878 ) $ 154,638 Denominator: Denominator for basic earnings per share—weighted average shares 50,392,394 50,280,776 50,401,401 50,257,039 Effect of employee stock-based awards(1) 23,937 103,094 71,749 102,954 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 50,416,331 50,383,870 50,473,150 50,359,993 Basic earnings/(loss) per common share $ (0.73 ) $ 1.50 $ (1.11 ) $ 3.07 Diluted earnings/(loss) per common share $ (0.73 ) $ 1.50 $ (1.11 ) $ 3.07 (1) SARs and RSUs outstanding of 510,095 at June 30, 2020 and 116,840 at June 30, 2019 have not been included in diluted earnings/(loss) per share because to do so would have been antidilutive for the periods presented. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Investment Securities | Investment Securities Available-for-Sale Debt Securities The following is a summary of available-for-sale debt securities: (in thousands) Amortized Cost(1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2020 Available-for-sale debt securities: Residential mortgage-backed securities $ 4,308 $ 154 $ — $ 4,462 Tax-exempt asset-backed securities 187,210 4,455 (248 ) 191,417 Credit risk transfer securities 14,713 — (3,760 ) 10,953 Total $ 206,231 $ 4,609 $ (4,008 ) $ 206,832 December 31, 2019 Available-for-sale debt securities: Residential mortgage-backed securities $ 4,991 $ 275 $ — $ 5,266 Tax-exempt asset-backed securities 183,225 13,802 — 197,027 Credit risk transfer securities 14,713 — (2,749 ) 11,964 Total $ 202,929 $ 14,077 $ (2,749 ) $ 214,257 (1) Excludes accrued interest receivable of $1.5 million and $1.6 million at June 30, 2020 and December 31, 2019, respectively, that is recorded in accrued interest receivable and other assets. The amortized cost and estimated fair value, excluding accrued interest receivable, and weighted average yield of available-for-sale debt securities are presented below by contractual maturity: (in thousands, except percentage data) Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total June 30, 2020 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ — $ 772 $ — $ 3,536 $ 4,308 Estimated fair value — 851 — 3,611 4,462 Weighted average yield(3) — % 5.54 % — % 3.73 % 4.05 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 187,210 187,210 Estimated fair value — — — 191,417 191,417 Weighted average yield(2)(3) — % — % — % 3.88 % 3.88 % CRT securities:(1) Amortized Cost — — — 14,713 14,713 Estimated fair value — — — 10,953 10,953 Weighted average yield(3) — % — % — % 0.18 % 0.18 % Total available-for-sale debt securities: Amortized cost $ 206,231 Estimated fair value $ 206,832 December 31, 2019 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ — $ 1,005 $ — $ 3,986 $ 4,991 Estimated fair value — 1,088 — 4,178 5,266 Weighted average yield(3) — % 5.54 % — % 4.31 % 4.55 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 183,225 183,225 Estimated fair value — — — 197,027 197,027 Weighted average yield(2)(3) — % — % — % 4.20 % 4.20 % CRT securities:(1) Amortized Cost — — — 14,713 14,713 Estimated fair value — — — 11,964 11,964 Weighted average yield(3) — % — % — % 1.71 % 1.71 % Total available-for-sale debt securities: Amortized cost $ 202,929 Estimated fair value $ 214,257 (1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate. (3) Yields are calculated based on amortized cost. The following table discloses our available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2020 Tax-exempt asset-backed securities $ 91,762 $ (248 ) $ — $ — $ 91,762 $ (248 ) CRT securities — — 10,953 (3,760 ) 10,953 (3,760 ) Total $ 91,762 $ (248 ) $ 10,953 $ (3,760 ) $ 102,715 $ (4,008 ) December 31, 2019 CRT securities $ 11,964 $ (2,749 ) $ — $ — $ 11,964 $ (2,749 ) We conduct periodic reviews of securities with unrealized losses to evaluate whether the decline in fair value has resulted from credit losses or other factors. Based on the results of our periodic review, at June 30, 2020 management believes that unrealized losses on the tax-exempt asset-backed securities and CRT securities have resulted from factors not deemed credit-related and no allowance for credit loss was recorded. We have evaluated the near-term prospects of each securities portfolio in relation to the severity of the non credit-related unrealized losses and adverse conditions related to the securities among other factors. Based on that evaluation management has determined that we have the ability and intent to hold the securities until recovery of fair value and have recorded the non credit-related unrealized losses in AOCI. Available-for-sale debt securities with carrying values of approximately $3.0 million and $1.4 million were pledged to secure certain customer repurchase agreements and deposits, respectively, at June 30, 2020 . The comparative amounts at December 31, 2019 were $3.5 million and $1.2 million , respectively. Equity Securities Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. At June 30, 2020 and December 31, 2019 , we had $28.1 million and $25.6 million , respectively, in equity securities recorded at fair value. The following is a summary of unrealized and realized gains/(losses) recognized on equity securities and included in other non-interest income in the consolidated statements of income: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Net gains/(losses) recognized during the period $ 2,912 $ 573 $ (65 ) $ 1,839 Less: Realized net gains/(losses) recognized during the period on equity securities sold (226 ) 6 (245 ) (24 ) Unrealized net gains/(losses) recognized during the period on equity securities still held $ 3,138 $ 567 $ 180 $ 1,863 |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans Held for Investment and Allowance for Loan Losses | Loans Held for Investment and Allowance for Credit Losses on Loans Loans held for investment are summarized by portfolio segment as follows: (in thousands) June 30, 2020 December 31, 2019 Commercial $ 9,164,661 $ 9,133,444 Energy 1,146,164 1,425,309 Mortgage finance(1) 8,972,626 8,169,849 Real estate 6,326,434 6,008,040 Gross loans held for investment(2) 25,609,885 24,736,642 Deferred income (net of direct origination costs) (85,056 ) (90,380 ) Allowance for credit losses on loans (264,722 ) (195,047 ) Total loans held for investment, net(2) $ 25,260,107 $ 24,451,215 (1) Balances at June 30, 2020 and December 31, 2019 are stated net of $1.3 billion and $682.7 million of participations sold, respectively. (2) Excludes accrued interest receivable of $55.8 million and $63.4 million at June 30, 2020 and December 31, 2019 , respectively, that is recorded in accrued interest receivable and other assets. The following table summarizes our gross loans held for investment by year of origination and internally assigned credit grades: (in thousands) 2020 2019 2018 2017 2016 2015 and prior Revolving lines of credit Revolving lines of credit converted to term loans Total June 30, 2020 Commercial (1-7) Pass $ 995,901 $ 3,094,437 $ 677,757 $ 409,424 $ 193,252 $ 259,128 $ 3,115,827 $ 37,322 $ 8,783,048 (8) Special mention 15,204 16,219 29,464 52,773 15,860 10,715 46,899 4,009 191,143 (9) Substandard - accruing 10,608 19,213 22,743 20,754 21,662 10,605 32,097 1,582 139,264 (9+) Non-accrual — 8,615 386 11,396 2,317 22,092 6,227 173 51,206 Total commercial $ 1,021,713 $ 3,138,484 $ 730,350 $ 494,347 $ 233,091 $ 302,540 $ 3,201,050 $ 43,086 $ 9,164,661 Energy (1-7) Pass $ 2,519 $ — $ 154 $ 22,583 $ 1,500 $ 10,620 $ 785,048 $ 150 $ 822,574 (8) Special mention — 11,000 23,571 — 15,989 15,771 75,586 — 141,917 (9) Substandard - accruing — — — — 14,605 295 62,899 — 77,799 (9+) Non-accrual — 19,264 20,570 1,562 11,822 15,488 31,660 3,508 103,874 Total energy $ 2,519 $ 30,264 $ 44,295 $ 24,145 $ 43,916 $ 42,174 $ 955,193 $ 3,658 $ 1,146,164 Mortgage finance (1-7) Pass $ 265,020 $ 1,052,947 $ 905,896 $ 599,686 $ 163,306 $ 5,985,771 $ — $ — $ 8,972,626 (8) Special mention — — — — — — — — — (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Total mortgage finance $ 265,020 $ 1,052,947 $ 905,896 $ 599,686 $ 163,306 $ 5,985,771 $ — $ — $ 8,972,626 Real estate CRE (1-7) Pass $ 193,894 $ 852,283 $ 951,771 $ 805,322 $ 273,234 $ 567,932 $ 104,888 $ 36,350 $ 3,785,674 (8) Special mention — — 59,051 37,120 20,762 49,458 — 6,510 172,901 (9) Substandard - accruing — — 4,036 — — 34,024 — 1,250 39,310 (9+) Non-accrual — — — — — 241 — — 241 RBF (1-7) Pass 98,571 173,525 121,844 24,115 8,893 13,211 591,953 — 1,032,112 (8) Special mention — 862 — — — — — — 862 (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Other (1-7) Pass 113,824 167,359 137,489 154,912 97,283 129,998 19,974 23,413 844,252 (8) Special mention — 3,578 7,486 11,894 6,218 25,234 — 7,283 61,693 (9) Substandard - accruing — — 526 1,009 356 10,266 — — 12,157 (9+) Non-accrual — 574 — — 783 3,035 — 14,100 18,492 Secured by 1-4 family (1-7) Pass 29,793 65,149 59,560 67,208 90,671 38,410 4,825 — 355,616 (8) Special mention — — 179 — — 1,792 — — 1,971 (9) Substandard - accruing — — — 826 — 109 — — 935 (9+) Non-accrual — — — — — 218 — — 218 Total real estate $ 436,082 $ 1,263,330 $ 1,341,942 $ 1,102,406 $ 498,200 $ 873,928 $ 721,640 $ 88,906 $ 6,326,434 Total loans held for investment $ 1,725,334 $ 5,485,025 $ 3,022,483 $ 2,220,584 $ 938,513 $ 7,204,413 $ 4,877,883 $ 135,650 $ 25,609,885 The following table details activity in the allowance for credit losses on loans. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Energy Mortgage Finance Real Estate Additional Qualitative Reserve Total Six months ended June 30, 2020 Allowance for credit losses on loans: Beginning balance $ 102,254 $ 60,253 $ 2,265 $ 30,275 $ — $ 195,047 Impact of CECL adoption (15,740 ) 24,154 2,031 (1,860 ) — 8,585 Provision for credit losses on loans 28,850 117,963 299 45,823 — 192,935 Charge-offs 32,940 100,098 — — — 133,038 Recoveries 770 423 — — — 1,193 Net charge-offs (recoveries) 32,170 99,675 — — — 131,845 Ending balance $ 83,194 $ 102,695 $ 4,595 $ 74,238 $ — $ 264,722 Six months ended June 30, 2019 Allowance for credit losses on loans: Beginning balance $ 96,814 $ 34,882 $ — $ 52,595 $ 7,231 $ 191,522 Provision for credit losses on loans 21,979 28,430 2,316 2,150 (7,231 ) 47,644 Charge-offs 9,745 15,173 — 177 — 25,095 Recoveries 501 — — — — 501 Net charge-offs (recoveries) 9,244 15,173 — 177 — 24,594 Ending balance $ 109,549 $ 48,139 $ 2,316 $ 54,568 $ — $ 214,572 During the first quarter of 2020, we adopted ASU 2016-13, which replaces the incurred loss methodology for determining our provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the CECL model. Upon adoption, the allowance for credit losses was increased by $9.1 million , which included a $563,000 increase to the allowance for off-balance sheet credit losses, with no impact to the consolidated statement of income. We recorded a $100.0 million provision for credit losses for the second quarter of 2020 , compared to $96.0 million for the first quarter of 2020 and $27.0 million for the second quarter of 2019. The increased provision for credit losses resulted primarily from an increase in charge-offs and reserve build related to higher criticized loan levels and continued economic uncertainty from the COVID-19 pandemic. We recorded $74.1 million in net charge-offs during the second quarter of 2020, including $62.4 million in energy charge-offs and $8.1 million in leveraged lending charge-offs, all of which were loans that had been previously identified as problem loans, compared to $57.7 million during the first quarter of 2020 and $20.0 million during the second quarter of 2019. Criticized loans totaled $1.0 billion at June 30, 2020 , compared to $584.1 million at December 31, 2019 and $629.1 million at June 30, 2019 . The increase in criticized loans was predominantly in special mention and was primarily due to the continued downgrade of loans that have been impacted by the COVID-19 pandemic or that are in categories that are expected to be more significantly impacted by COVID-19. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent gross loans held for investment by collateral type as follows: Collateral type (in thousands) Business assets Oil/Gas Mineral Reserves Total June 30, 2020 Commercial $ 11,946 $ — $ 11,946 Energy — 84,330 84,330 Total collateral-dependent loans held for investment $ 11,946 $ 84,330 $ 96,276 The table below provides an age analysis of our loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Non-accrual loans as of June 30, 2020(2) Current Total Non-accrual With No Allowance June 30, 2020 Commercial $ 19,451 $ 6,383 $ 18,939 $ 44,773 $ 51,206 $ 9,068,682 $ 9,164,661 $ 21,146 Energy 295 — — 295 103,874 1,041,995 1,146,164 54,986 Mortgage finance loans — — — — — 8,972,626 8,972,626 — Real estate CRE 13,307 31 1,250 14,588 241 3,983,297 3,998,126 — RBF — — — — — 1,032,974 1,032,974 — Other 581 6,010 — 6,591 18,492 911,511 936,594 18,492 Secured by 1-4 family 371 1,686 890 2,947 218 355,575 358,740 — Total loans held for investment $ 34,005 $ 14,110 $ 21,079 $ 69,194 $ 174,031 $ 25,366,660 $ 25,609,885 $ 94,624 (1) Loans past due 90 days and still accruing includes premium finance loans of $14.8 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The receipt of the refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. (2) As of June 30, 2020 and December 31, 2019 , none of our non-accrual loans were earning interest income on a cash basis. Additionally, no interest income was recognized on non-accrual loans for the six months ended June 30, 2020. Accrued interest of $708,000 was reversed during the six months ended June 30, 2020. On January 1, 2020, the date we adopted CECL, non-accrual loans totaled $225.4 million , and included $88.6 million in commercial loans, $125.0 million in energy loans, $9.4 million in CRE loans, $881,000 in real estate-other loans and $1.4 million in secured by 1-4 family loans. As of June 30, 2020 and December 31, 2019 , we did not have any loans considered restructured that were not on non-accrual. Of the non-accrual loans at June 30, 2020 and December 31, 2019 , $23.7 million and $35.1 million , respectively, met the criteria for restructured. These loans had no unfunded commitments at their respective balance sheet dates. The following table details the recorded investment at June 30, 2020 and June 30, 2019 of loans restructured during the six months ended June 30, 2020 and June 30, 2019 by type of modification: Extended Maturity Adjusted Payment Schedule Total (in thousands, except number of contracts) Number of Contracts Balance at Period End Number of Contracts Balance at Period End Number of Contracts Balance at Period End Six months ended June 30, 2020 Commercial loans 2 $ 7,906 — $ — 2 $ 7,906 Energy loans 1 6,105 — — 1 6,105 Total 3 $ 14,011 — $ — 3 $ 14,011 Six months ended June 30, 2019 Commercial loans 1 $ 1,896 — $ — $ 1 $ 1,896 Energy loans 1 16,541 — — 1 16,541 Total 2 $ 18,437 — $ — 2 $ 18,437 Restructured loans generally include terms to temporarily place the loan on interest only, extend the payment terms or reduce the interest rate. We did not forgive any principal on the above restructured loans. At June 30, 2020 and 2019, all of the above restructured loans were on non-accrual. The restructuring of the loans did not have a significant impact on our allowance for credit losses at June 30, 2020 or 2019 . As of June 30, 2020 and 2019 , we did not have any loans that were restructured within the last 12 months that subsequently defaulted. In response to the COVID-19 pandemic, we implemented a short-term modification program in late March 2020 to provide temporary payment relief to borrowers who meet the program's qualifications. This program allows for a deferral of payments for 90 days, which we may extend for an additional 90 days, for a maximum of 180 days on a cumulative basis. The deferred payments along with interest accrued during the deferral period are due and payable on the maturity date of the existing loan. As of June 30, 2020, we have granted temporary modifications on 482 loans with a total outstanding balance of $1.2 billion , resulting in the deferral of $10.8 million in interest payments. Under the applicable guidance, none of these loans were considered restructured as of June 30, 2020. |
Certain Transfers of Financial
Certain Transfers of Financial Assets | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Certain Transfers of Financial Assets | Certain Transfers of Financial Assets The table below presents a reconciliation of the changes in loans held for sale: Six Months Ended June 30, (in thousands) 2020 2019 Outstanding balance(1): Beginning balance $ 2,568,362 $ 1,949,785 Loans purchased and originated 4,931,981 4,172,519 Payments and loans sold (7,052,942 ) (5,071,502 ) Ending balance 447,401 1,050,802 Fair value adjustment: Beginning balance 8,772 19,689 Increase/(decrease) to fair value (1,592 ) (12,905 ) Ending balance 7,180 6,784 Loans held for sale at fair value $ 454,581 $ 1,057,586 (1) Includes $5.8 million of loans held for sale that are carried at lower of cost or market as of December 31, 2019 and $299,000 as of December 31, 2018 , as well as $1.1 million as of June 30, 2019. There were no loans held for sale carried at lower of cost or market as of June 30, 2020. No loans held for sale were on non-accrual as of June 30, 2020 or December 31, 2019 . At June 30, 2020 and December 31, 2019 , we had $10.2 million and $8.2 million , respectively, of loans held for sale that were 90 days or more past due. The $10.2 million in loans held for sale that were 90 days or more past due at June 30, 2020 included $4.6 million of loans guaranteed by U.S. government agencies that were purchased out of Ginnie Mae securities and recorded as loans held for sale, at fair value, on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. Also included in the $10.2 million were $5.2 million in loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase if defined delinquent loan criteria are met, and therefore must record as held for sale on our balance sheet regardless of whether the repurchase option has been exercised. At December 31, 2019 , $6.0 million of the $8.2 million in loans held for sale were loans guaranteed by U.S. government agencies that were purchased out of Ginnie Mae securities and recorded as loans held for sale, at fair value, on the balance sheet and $1.9 million were loans that we have the unilateral right, but not the obligation, to repurchase if defined delinquent loan criteria are met. From time to time we retain the right to service the loans sold through our Mortgage Correspondent Aggregation ("MCA") program, creating mortgage servicing rights ("MSRs") which are recorded as assets on our balance sheet. A summary of MSR activity is as follows: Six months ended June 30, (in thousands) 2020 2019 MSRs: Balance, beginning of year $ 70,707 $ 42,474 Capitalized servicing rights 45,397 14,806 Amortization (14,032 ) (3,723 ) Sales — — Balance, end of period $ 102,072 $ 53,557 Valuation allowance: Balance, beginning of year $ 5,803 $ — Increase in valuation allowance 20,818 5,772 Balance, end of period $ 26,621 $ 5,772 MSRs, net $ 75,451 $ 47,785 MSRs, fair value $ 75,451 $ 47,845 At June 30, 2020 and December 31, 2019 , our servicing portfolio of residential mortgage loans had outstanding principal balances of $10.2 billion and $6.7 billion , respectively. In connection with the servicing of these loans, we hold deposits in the name of investors representing escrow funds for taxes and insurance, as well as collections in transit to the investors. These escrow funds are segregated and held in separate non-interest-bearing deposit accounts at the Bank. These deposits, included in total non-interest-bearing deposits on the consolidated balance sheets, were $128.0 million at June 30, 2020 and $63.7 million at December 31, 2019 . The estimated fair value of the MSR assets is obtained from an independent third party and reviewed by management on a quarterly basis. MSRs typically do not trade in an active, open market with readily observable prices; as such, the fair value of MSRs is determined using a discounted cash flow model to calculate the present value of the estimated future net servicing income. The assumptions utilized in the discounted cash flow model are based on market data for comparable assets, where available. Each quarter, management and the independent third party review the key assumptions used in the discounted cash flow model and make adjustments as necessary to estimate the fair value of the MSRs. At June 30, 2020 , the estimated fair value of MSRs was adjusted as a result of the decline in mortgage interest rates experienced in the first six months of 2020 , which resulted in a $20.8 million impairment charge, compared to a $5.8 million impairment charge for the first six months of 2019. To mitigate exposure to potential impairment charges from adverse changes in the fair value of our residential MSR portfolio, we enter into certain derivative contracts, as is further discussed in Note 10 - Derivative Financial Instruments. The following summarizes the assumptions used by management to determine the fair value of MSRs: June 30, 2020 December 31, 2019 Average discount rates 9.18 % 9.06 % Expected prepayment speeds 17.15 % 13.11 % Weighted-average life, in years 4.7 5.8 A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table: (in thousands) June 30, 2020 December 31, 2019 50 bp adverse change in prepayment speed $ (6,133 ) $ (10,768 ) 100 bp adverse change in prepayment speed (6,954 ) (17,965 ) These sensitivities are hypothetical and actual results may differ materially due to a number of factors. The effect on fair value of a 10% variation in assumptions generally cannot be determined with confidence because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may be correlated with changes in other factors, which could impact the sensitivity analysis as presented. In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from repurchase, indemnification and make-whole agreements. Our estimated exposure related to those agreements totaled $2.5 million and $3.6 million at June 30, 2020 and December 31, 2019 , respectively, and is recorded in other liabilities on the consolidated balance sheets. We incurred $4.5 million in losses due to make-whole obligations during the six months ended June 30, 2020 compared to $1.0 million during the six months ended June 30, 2019 . The increase in make-whole obligation losses is primarily related to an increase in early payoffs resulting from the declining interest rate environment. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. This allowance is recorded in other liabilities on the consolidated balance sheets. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Beginning balance of allowance for off-balance sheet credit losses $ 10,174 $ 9,795 $ 8,640 $ 11,434 Impact of CECL adoption — — 563 — Provision for off-balance sheet credit losses 2,094 995 3,065 (644 ) Ending balance of allowance for off-balance sheet credit losses $ 12,268 $ 10,790 $ 12,268 $ 10,790 (in thousands) June 30, 2020 December 31, 2019 Commitments to extend credit - period end balance $ 8,074,723 $ 8,066,655 Standby letters of credit - period end balance $ 252,246 $ 261,405 |
Regulatory Restrictions
Regulatory Restrictions | 6 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Restrictions | Regulatory Restrictions The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III regulatory capital framework (the "Basel III Capital Rules") adopted by U.S. federal regulatory authorities, among other things, (i) establishes the capital measure called "Common Equity Tier 1" ("CET1"), (ii) specifies that Tier 1 capital consist of CET1 and "Additional Tier 1 Capital" instruments meeting stated requirements, (iii) requires that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) defines the scope of the deductions/adjustments to the capital measures. Additionally, the Basel III Capital Rules require that we maintain a 2.5% capital conservation buffer with respect to each of CET1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we have elected to utilize the five-year CECL transition. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of CET1, Tier 1 and total capital to risk-weighted assets, and of Tier 1 capital to average assets, each as defined in the regulations. Management believes, as of June 30, 2020 , that the Company and the Bank meet all capital adequacy requirements to which they are subject. Financial institutions are categorized as well capitalized or adequately capitalized based on minimum total risk-based, Tier 1 risk-based, CET1 and Tier 1 leverage ratios. As shown in the table below, the Company’s capital ratios exceeded the regulatory definition of adequately capitalized as of June 30, 2020 and December 31, 2019 . Based upon the information in its most recently filed call report, the Bank met the capital ratios necessary to be well capitalized. The regulatory authorities can apply changes in classification of assets and such changes may retroactively subject the Company to changes in capital ratios. Any such change could reduce one or more capital ratios below well-capitalized status. In addition, a change may result in imposition of additional assessments by the FDIC or could result in regulatory actions that could have a material adverse effect on our financial condition and results of operations. Because our Bank had less than $15.0 billion in total consolidated assets as of December 31, 2009, we are allowed to continue to classify our trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital. The table below summarizes our actual and required capital ratios under the Basel III Capital Rules. The ratios presented below include the effects of our election to utilize the five-year CECL transition described above. Actual For Capital Adequacy Purposes Required to be Considered Well Capitalized (dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio June 30, 2020 CET1 Company $ 2,588,325 8.88 % $ 2,040,935 7.00 % N/A N/A Bank 2,619,361 9.00 % 2,037,171 7.00 % 1,891,659 6.50 % Total capital (to risk-weighted assets) Company 3,383,499 11.60 % 3,061,403 10.50 % N/A N/A Bank 3,255,770 11.19 % 3,055,757 10.50 % 2,910,244 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,849,387 9.77 % 2,478,278 8.50 % N/A N/A Bank 2,780,423 9.55 % 2,473,708 8.50 % 2,328,196 8.00 % Tier 1 capital (to average assets)(1) Company 2,849,387 7.52 % 1,516,474 4.00 % N/A N/A Bank 2,780,423 7.34 % 1,516,023 4.00 % 1,895,028 5.00 % December 31, 2019 CET1 Company $ 2,653,999 8.88 % $ 2,091,591 7.00 % N/A N/A Bank 2,676,513 8.96 % 2,090,870 7.00 % 1,941,522 6.50 % Total capital (to risk-weighted assets) Company 3,398,345 11.37 % 3,137,926 10.50 % N/A N/A Bank 3,262,144 10.92 % 3,136,305 10.50 % 2,986,957 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,912,529 9.75 % 2,540,226 8.50 % N/A N/A Bank 2,835,043 9.49 % 2,538,913 8.50 % 2,389,565 8.00 % Tier 1 capital (to average assets)(1) Company 2,912,529 8.42 % 1,383,640 4.00 % N/A N/A Bank 2,835,043 8.20 % 1,383,190 4.00 % 1,728,988 5.00 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Our mortgage finance loan volumes can increase significantly at month-end, causing a meaningful difference between ending balance and average balance for any period. At June 30, 2020 , our mortgage finance loans were $9.0 billion compared to the average for the quarter ended June 30, 2020 of $8.7 billion . As CET1, Tier 1 and total capital ratios are calculated using quarter-end risk-weighted assets and our mortgage finance loans are 100% risk-weighted (excluding MCA mortgage loans held for sale, which receive lower risk weights), the period-end fluctuation in these balances can significantly impact our reported ratios. Due to the actual risk profile and liquidity of this asset class, we manage capital allocated to mortgage finance loans based on changing trends in average balances and do not believe that the period-end balance is representative of risk characteristics that would justify higher allocations. However, we monitor our capital allocation to confirm that all capital levels remain above well-capitalized levels. Dividends that may be paid by banks are routinely restricted by various regulatory authorities. The amount that can be paid in any calendar year without prior approval of our Bank’s regulatory agencies cannot exceed the lesser of the net profits (as defined) for that year plus the net profits for the preceding two calendar years, or retained earnings. The Basel III Capital Rules further limit the amount of dividends that may be paid by our Bank. No dividends were declared or paid on our common stock during the six months ended June 30, 2020 , or 2019 . |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Compensation Related Costs [Abstract] | |
Stock-based Compensation | Stock-based Compensation We have long-term incentive plans under which stock-based compensation awards are granted to employees and directors by the board of directors, or its designated committee. Grants are subject to vesting requirements and may include, among other things, nonqualified stock options, stock appreciation rights ("SARs"), restricted stock units ("RSUs"), restricted stock and performance units, or any combination thereof. There are 2,550,000 total shares authorized for grant under the plans. The table below summarizes our stock-based compensation expense: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Stock-settled awards: SARs $ — $ — $ — $ 6 RSUs 3,313 3,110 6,532 5,517 Restricted stock 9 9 17 19 Cash-settled units 338 1,338 480 3,403 Total $ 3,660 $ 4,457 $ 7,029 $ 8,945 (in thousands except period data) June 30, 2020 Unrecognized compensation expense related to unvested stock-settled awards $ 31,132 Weighted average period over which expense is expected to be recognized, in years 3.0 |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures We determine the fair market values of our assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in ASC 820. The standard describes three levels of inputs that may be used to measure fair value as provided below. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair values requires significant management judgment or estimation. Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 June 30, 2020 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 4,462 $ — Tax-exempt asset-backed securities — — 191,417 CRT securities — — 10,953 Equity securities(1)(2) 20,862 7,275 — Loans held for sale(3) — 448,422 6,159 Loans held for investment(4) — — 72,629 Derivative assets(5) — 143,050 — Derivative liabilities(5) — 126,542 — Non-qualified deferred compensation plan liabilities(6) 21,462 — — December 31, 2019 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 5,266 $ — Tax-exempt asset-backed securities — — 197,027 CRT securities — — 11,964 Equity securities(1)(2) 18,484 7,130 — Loans held for sale(3) — 2,564,281 7,043 Loans held for investment(4) — — 109,585 Derivative assets(5) — 48,684 — Derivative liabilities(5) — 51,310 — Non-qualified deferred compensation plan liabilities(6) 18,484 — — (1) Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities and CRT securities which are measured quarterly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale purchased through our MCA program are measured at fair value on a recurring basis, generally monthly. (4) Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (5) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (6) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. Level 3 Valuations The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis: Net Realized/Unrealized Gains (Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Three months ended June 30, 2020 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 191,474 $ 8,470 $ (132 ) $ — $ (8,395 ) $ 191,417 CRT securities $ 8,015 $ — $ — $ — $ 2,938 $ 10,953 Loans held for sale(2) $ 6,694 $ 107 $ (780 ) $ 88 $ 50 $ 6,159 Three months ended June 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 191,844 $ — $ (138 ) $ — $ 9,633 $ 201,339 CRT securities $ 10,637 $ — $ — $ — $ 316 $ 10,953 Loans held for sale(2) $ 13,046 $ — $ (2,532 ) $ 132 $ 284 $ 10,930 Six months ended June 30, 2020 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 197,027 $ 8,470 $ (4,485 ) $ — $ (9,595 ) $ 191,417 CRT securities $ 11,964 $ — $ — $ — $ (1,011 ) $ 10,953 Loans held for sale(2) $ 7,043 $ 320 $ (1,464 ) $ 116 $ 144 $ 6,159 Six months ended June 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 95,804 $ 92,010 $ (138 ) $ — $ 13,663 $ 201,339 CRT securities $ — $ 15,044 $ — $ (331 ) $ (3,760 ) $ 10,953 Loans held for sale(2) $ 16,415 $ — $ (6,410 ) $ 348 $ 577 $ 10,930 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI and relate to assets that remain outstanding at June period end. Realized gains/(losses) are recorded in other non-interest income. (2) Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale. Tax-exempt asset-backed securities The fair value of tax-exempt asset-backed securities is based on a discounted cash flow model, which utilizes Level 3, or unobservable, inputs, the most significant of which were a discount rate and weighted-average life. At June 30, 2020 , the discount rates utilized ranged from 3.52% to 3.55% and the weighted-average life ranged from 6.5 years to 7.7 years. On a combined amortized cost weighted-average basis a discount rate of 3.54% and weighted-average life of 7.1 years were utilized to determine the fair value of these securities at June 30, 2020 . At December 31, 2019 , the combined weighted-average discount rate and weighted-average life utilized were 2.99% and 7.0 years, respectively. CRT securities The fair value of CRT securities is based on a discounted cash flow model, which utilizes Level 3, or unobservable, inputs, the most significant of which were a discount rate and weighted-average life. At June 30, 2020 , the discount rates utilized ranged from 2.99% to 7.20% and the weighted-average life ranged from 7.0 years to 11.1 years. On a combined amortized cost weighted-average basis a discount rate of 4.39% and a weighted-average life of 8.4 years were utilized to determine the fair value of these securities at June 30, 2020 . At December 31, 2019 , the combined weighted-average discount rate and combined weighted-average life utilized were 4.54% and 9.3 years, respectively. Loans held for sale The fair value of loans held for sale using Level 3 inputs include loans that cannot be sold through normal sale channels and thus require significant management judgment or estimation when determining the fair value. The fair value of such loans is generally based upon quoted prices of comparable loans with a liquidity discount applied. At June 30, 2020 , the fair value of these loans was calculated using a weighted-average discounted price of 95.4% , compared to 94.1% at December 31, 2019 . Loans held for investment Certain collateral-dependent loans held for investment are reported at fair value when, based upon an individual evaluation, the specific allocation of the allowance for credit losses that is deducted from the loan's amortized cost is based upon the fair value of the loan's underlying collateral. The $72.6 million fair value of loans held for investment at June 30, 2020 reported above includes loans held for investment with a carrying value of $96.3 million that were reduced by specific allowance allocations totaling $23.7 million based on collateral valuations utilizing Level 3 inputs. The $109.6 million fair value of loans held for investment at December 31, 2019 reported above includes loans with a carrying value of $145.4 million that were reduced by specific allowance allocations totaling $35.8 million based on collateral valuations utilizing Level 3 inputs. Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. This disclosure does not and is not intended to represent the fair value of the Company. A summary of the carrying amounts and estimated fair values of financial instruments is as follows: June 30, 2020 December 31, 2019 (in thousands) Carrying Amount Estimated Fair Value Carrying Estimated Financial assets: Level 1 inputs: Cash and cash equivalents $ 9,716,584 $ 9,716,584 $ 4,425,583 $ 4,425,583 Investment securities 20,862 20,862 18,484 18,484 Level 2 inputs: Investment securities 11,737 11,737 12,396 12,396 Loans held for sale 448,422 448,422 2,570,091 2,570,091 Derivative assets 143,050 143,050 48,684 48,684 Level 3 inputs: Investment securities 202,370 202,370 208,991 208,991 Loans held for sale 6,159 6,159 7,043 7,043 Loans held for investment, net 25,260,107 25,249,741 24,451,215 24,478,586 Financial liabilities: Level 2 inputs: Federal funds purchased 189,030 189,030 132,270 132,270 Customer repurchase agreements 6,760 6,760 9,496 9,496 Other borrowings 2,700,000 2,700,000 2,400,000 2,400,000 Subordinated notes 282,309 291,821 282,129 292,302 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 126,542 126,542 51,310 51,310 Level 3 inputs: Deposits 30,187,695 30,192,842 26,478,593 26,486,090 The estimated fair value for cash and cash equivalents, variable rate loans and variable rate debt approximates carrying value. The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Investment Securities Within the investment securities portfolio, we hold equity securities related to our non-qualified deferred compensation plan that are valued using quoted market prices for identical equity securities in an active market, and are classified as Level 1 assets in the fair value hierarchy. The fair value of the remaining equity securities and residential mortgage-backed securities in our investment portfolio are based on prices obtained from independent pricing services that are based on quoted market prices for the same or similar securities, and are characterized as Level 2 assets in the fair value hierarchy. We have obtained documentation from our primary pricing service regarding their processes and controls applicable to pricing investment securities, and on a quarterly basis we independently verify the prices that we receive from the service provider using two additional independent pricing sources. We also hold tax-exempt asset-backed securities and CRT securities that are valued using a discounted cash flow model, which utilizes Level 3 inputs, and are classified as Level 3 assets in the fair value hierarchy. Loans Held for Sale Fair value for loans held for sale is derived from quoted market prices for similar loans, in which case they are characterized as Level 2 assets in the fair value hierarchy, or is derived from third party pricing models, in which case they are characterized as Level 3 assets in the fair value hierarchy. Derivatives The estimated fair value of interest rate swaps and caps is obtained from independent pricing services based on quoted market prices for similar derivative contracts and these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. On a quarterly basis, we independently verify the fair value using an additional independent pricing source. Foreign currency forward contracts are valued based upon quoted market prices obtained from independent pricing services for similar derivative contracts. As such, these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. The derivative instruments related to the loans held for sale portfolio include loan purchase commitments and forward sale commitments. Loan purchase commitments are valued based upon the fair value of the underlying mortgage loans to be purchased, which is based on observable market data for similar loans. Forward sale commitments are valued based upon quoted market prices from brokers. As such, these loan purchase commitments and forward sales commitments are characterized as Level 2 assets or liabilities in the fair value hierarchy. The derivative instruments related to our residential MSRs include interest rate swap futures and forward sale commitments. The interest rate swap futures are valued based on quoted market prices obtained from brokers for similar derivative contracts, while the forward sale commitments are valued based on the fair value of the underlying mortgage loans to be purchased, which is based on observable market data for similar loans. As such, these derivative instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table: June 30, 2020 December 31, 2019 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,947,806 $ — $ 118,663 $ 1,548,234 $ 182 $ 46,518 Commercial loan/lease interest rate caps 657,109 42 — 639,163 32 — Foreign currency forward contracts 2,228 — 238 2,219 169 — Customer counterparties: Commercial loan/lease interest rate swaps 1,947,806 118,663 — 1,548,234 46,518 182 Commercial loan/lease interest rate caps 657,109 — 42 639,163 — 32 Foreign currency forward contracts 2,228 238 — 2,219 — 169 Economic hedging derivatives to hedge: Residential MSRs: Interest rate swap futures 255,000 2,460 3 — — — Forward sale commitments 153,000 1,067 — — — — Loans held for sale: Loan purchase commitments 1,215,599 20,580 3 214,012 1,965 4 Forward sale commitments 1,311,974 — 7,593 2,654,653 — 4,587 Gross derivatives 143,050 126,542 48,866 51,492 Offsetting derivative assets/liabilities — — (182 ) (182 ) Net derivatives included in the consolidated balance sheets $ 143,050 $ 126,542 $ 48,684 $ 51,310 During the second quarter of 2020, we initiated a strategy to mitigate exposure to potential impairment losses from adverse changes in the fair value of our residential MSR portfolio using interest rate derivative contracts, primarily interest rate swap futures and forward sale commitments of mortgage-backed securities. These derivative instruments are considered highly liquid and can be settled daily, which allows us to dynamically manage our exposure. The derivative instruments are used to economically hedge the fair value of the residential MSR portfolio impacted by changes in anticipated prepayments resulting from mortgage interest rate movements and are classified as other assets and other liabilities on the consolidated balance sheets. Any unrealized or realized gains/(losses) related to derivatives economically hedging the residential MSR portfolio are recognized in servicing-related expenses along with changes to the MSR valuation allowance. The weighted-average received and paid interest rates for interest rate swaps outstanding were as follows: June 30, 2020 Weighted-Average Interest Rate December 31, 2019 Weighted-Average Interest Rate Received Paid Received Paid Non-hedging interest rate swaps 3.23 % 1.44 % 3.94 % 3.26 % The weighted-average strike rate for outstanding interest rate caps was 3.38% at June 30, 2020 and 3.29% at December 31, 2019 . Our credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. Our credit exposure associated with these instruments, net of any collateral pledged, was approximately $143.1 million at June 30, 2020 and approximately $48.7 million at December 31, 2019 . Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap and cap values, as well as for changes in the value of forward sale commitments. At June 30, 2020 , we had $134.5 million in cash collateral pledged for these derivatives, of which $128.9 million was included in interest-bearing deposits in other banks and $5.6 million was included in accrued interest receivable and other assets. At December 31, 2019 , we had $56.6 million in cash collateral pledged for these derivatives, of which $54.3 million was included in interest-bearing deposits in other banks and $2.3 million was included in accrued interest receivable and other assets. We also enter into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are either a participant or a lead bank. The risk participation agreements entered into by us as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. We are party to 8 risk participation agreements where we are a participant bank with a notional amount of $110.7 million at June 30, 2020 , compared to 12 risk participation agreements having a notional amount of $146.7 million at December 31, 2019 . The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $7.0 million at June 30, 2020 and $3.6 million at December 31, 2019 . The fair value of these exposures was insignificant to the consolidated financial statements at both June 30, 2020 and December 31, 2019 . Risk participation agreements entered into by us as the lead bank provide credit protection to us should the borrower fail to perform on its interest rate derivative contract with us. We are party to 16 risk participation agreements where we are the lead bank having a notional amount of $166.9 million at June 30, 2020 , compared to 12 agreements having a notional amount of $145.9 million at December 31, 2019 . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards ASU 2019-12 "Income Taxes (Topic 740)" ("ASU 2019-12") simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. ASU 2019-012 will be effective for us on January 1, 2021 and is not expected to have any material impact on our consolidated financial statements. ASU 2020-01 "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815)" ("ASU 2020-01") clarifies the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. ASU 2020-01 will be effective for us on January 1, 2021 and is not expected to have any material impact on our consolidated financial statements. ASU 2020-02 "Financial Instruments - Credit Losses (Topic 326) and Leases (Topic 842)" ("ASU 2020-02") incorporates SEC SAB 119 (updated from SAB 102) into the Accounting Standards Codification (the "Codification") by aligning SEC recommended policies and procedures with ASC 326. ASU 2020-02 was effective on January 1, 2020 and has not had a significant impact on our documentation requirements. ASU 2020-03 "Codification Improvements to Financial Instruments" ("ASU 2020-03") revised a wide variety of topics in the Codification with the intent to make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. ASU 2020-03 was effective immediately upon its release in March 2020 and did not have a material impact on our consolidated financial statements. ASU 2020-04, "Reference Rate Reform (Topic 848)" ("ASU 2020-04") provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for derivative accounting. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. We anticipate this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. We are evaluating the impacts of this ASU and have not yet determined whether LIBOR transition and this ASU will have material effects on our business operations and consolidated financial statements. |
Operations and Summary of Sig_2
Operations and Summary of Significant Accounting Policies Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization And Nature Of Business | Organization and Nature of Business Texas Capital Bancshares, Inc. (the "Company” or "TCBI"), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the "Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional or national clientele of commercial borrowers. We are primarily a secured lender, with the majority of our loans held for investment, excluding mortgage finance loans and other national lines of business, being made to businesses headquartered or with operations in Texas. Our national lines of business provide specialized lending products to businesses throughout the United States. On December 9, 2019, the Company and Independent Bank Group, Inc. (“IBTX”) entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which, on the terms and subject to the conditions therein, the Company would be merged with and into IBTX. On May 22, 2020, the Company and IBTX entered into an agreement (the “Mutual Termination Agreement”) pursuant to which the parties mutually agreed to terminate the Merger Agreement. Neither party paid a termination fee in connection with the termination of the Merger Agreement. |
Basis of Accounting | Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States ("GAAP") and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2019 , included in our 2019 Form 10-K. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
New Accounting Pronouncements | Accounting Changes On January 1, 2020, we adopted ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which replaces the incurred loss methodology for determining our provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the Current Expected Credit Loss ("CECL") model. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with ASU 2016-02 "Leases (Topic 842)" . In addition, ASU 2016-13 made changes to the accounting for available-for-sale debt securities. One such change is to require credit-related impairments to be recognized in the allowance for credit losses rather than as a write-down of the securities' amortized cost basis when management does not intend to sell or believes that it is not more likely than not that they will be required to sell the securities prior to recovery of the securities amortized cost basis. We adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost, off-balance sheet credit exposures and net investments in leases. Results for reporting periods beginning after January 1, 2020 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable GAAP. We adopted ASU 2016-13 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2020. As a result, the amortized cost basis remains the same before and after the effective date of ASU 2016-13. |
Loans | Loans Loans Held for Investment Loans held for investment (including financing leases) are stated at the amount of unpaid principal reduced by deferred income (net of costs). Interest on loans is recognized using the simple interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Restructured loans are loans on which, due to the borrower’s financial difficulties, we have granted a concession that we would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, a reduction of the face amount of debt or forgiveness of either principal or accrued interest. A loan continues to qualify as restructured until a consistent payment history or change in the borrower’s financial condition has been evidenced, generally for no less than twelve months. If the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that we are willing to accept for a new extension of credit with comparable risk, then the loan is no longer considered a restructuring if it is in compliance with the modified terms in calendar years after the year of the restructure. A loan is considered past due when a contractually due payment has not been received by the contractual due date. We place a loan on non-accrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed as a reduction of current period interest income. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Loans held for investment includes legal ownership interests in mortgage loans that we purchase through our mortgage warehouse lending division. The ownership interests are purchased from unaffiliated mortgage originators who are seeking additional funding through sale of the undivided ownership interests to facilitate their ability to originate loans. The mortgage originator has no obligation to offer and we have no obligation to purchase these interests. The originator closes mortgage loans consistent with underwriting standards established by approved investors, and, at the time of the sale to the investor, our ownership interest and that of the originator are delivered by us to the investor selected by the originator and approved by us. We typically purchase up to a 99% ownership interest in each mortgage with the originator owning the remaining percentage. These mortgage ownership interests are generally held by us for a period of less than 30 days and more typically 10-20 days. Because of conditions in agreements with originators designed to reduce transaction risks, under ASC 860, Transfers and Servicing of Financial Assets (“ASC 860”), the ownership interests do not qualify as participating interests. Under ASC 860, the ownership interests are deemed to be loans to the originators and payments we receive from investors are deemed to be payments made by or on behalf of the originator to repay the loan deemed made to the originator. Because we have an actual, legal ownership interest in the underlying residential mortgage loan, these interests are reported as extensions of credit to the originators that are secured by the mortgage loans as collateral. Due to market conditions or events of default by the investor or the originator, we could be required to purchase the remaining interests in the mortgage loans and hold them beyond the expected 10-20 days. Mortgage loans acquired under these conditions would require mark-to-market adjustments to income and could require future allocations of the allowance for credit losses or be subject to charge-off in the event the loans become impaired. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses is an estimate of the expected credit losses in the loans held for investment and available-for-sale debt securities portfolios. Loans ASU 2016-13 replaces the incurred loss impairment model, which recognizes losses when it becomes probable that a credit loss will be incurred, with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, credit quality, or term, as well as for changes in macroeconomic conditions, such as changes in unemployment rates, crude oil prices, property values or other relevant factors. The allowance for credit losses is comprised of reserves measured on a collective (pool) basis based on a lifetime loss-rate model when similar risk characteristics exist. Reserves on loans that do not share risk characteristics are evaluated on an individual basis. In order to determine the allowance for credit losses, all loans are assigned a credit grade. Loans graded substandard or worse and greater than $500,000 are specifically reviewed for loss potential and when deemed appropriate are assigned a reserve based on an individual evaluation. For purposes of determining the pool-basis reserve, the remainder of the portfolio, representing all loans not assigned an individual reserve, is segregated first by portfolio segment, then by product type, to recognize differing risk profiles within portfolio segments, and finally by credit grade. Each credit grade within each product type is assigned a historical loss rate. These historical loss rates are then modified to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments using a Portfolio Level Qualitative Factor ("PLQF") and/or a Portfolio Segment Level Qualitative Factor ("SLQF"). These modified historical loss rates are multiplied by the outstanding principal balance of each loan to calculate a required reserve. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in other liabilities. The PLQF and SLQF are utilized to address factors that are not present in historical loss rates and are otherwise unaccounted for in the quantitative process. The PLQF is used to apply a qualitative adjustment across the entire portfolio of loans, while the SLQF is designed to apply a qualitative adjustment across a single portfolio segment. Even though portions of the allowance may be allocated to specific loans, the entire allowance is available for any credit that, in management’s judgment, should be charged off. We generally use a two-year forecast period, based on a single consensus forecast scenario, using variables we believe are most relevant to each portfolio segment. For periods beyond which we are able to develop reasonable and supportable forecasts, we immediately revert to the average historical loss rate. The forecast period and scenario used is reviewed on a quarterly basis and may be adjusted based on management's view of the current economic conditions and level of predictability the forecast can provide. Portfolio segments are used to pool loans with similar risk characteristics and align with our methodology for measuring expected credit losses. A summary of our primary portfolio segments is as follows: Commercial . Our commercial loan portfolio is comprised of lines of credit for working capital, term loans and leases to finance equipment and other business assets across a variety of industries. These loans are used for general corporate purposes including financing working capital, internal growth, acquisitions and business insurance premiums and are generally secured by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Our commercial loan portfolio also includes consumer loans because our small portfolio of consumer loans is largely comprised of accommodation loans to individuals associated with our commercial clients. Energy . Our energy loan portfolio is primarily comprised of loans to exploration and production (“E&P”) companies that are generally collateralized with proven reserves based on appropriate valuation standards that take into account the risk of oil and gas price volatility. The majority of this portfolio is first lien, senior secured, reserve-based lending, which we believe is the lowest-risk form of energy lending. Energy loans are impacted by commodity price volatility, as well as changes in consumer and business demand. Mortgage finance . Mortgage finance loans relate to our mortgage warehouse lending operations in which we purchase mortgage loan ownership interests from unaffiliated mortgage originators that are generally held by us for a period of less than 30 days and more typically 10-20 days before they are sold to an approved investor. Volumes fluctuate based on the level of market demand for the product and the number of days between purchase and sale of the loans, which can be affected by changes in overall market interest rates and housing demand and tend to peak at the end of each month. Mortgage finance loans are consistently underwritten based on standards established by the approved investors. Market conditions or events of default by an investor or originator could require that we repurchase the remaining interests in the mortgage loans and hold them beyond the expected 10-20 days. Real estate . Our real estate portfolio is comprised of the following types of loans: Commercial real estate ("CRE") . Our CRE portfolio is comprised of both construction/development financing and limited term financing provided to professional real estate developers and owners/managers of commercial real estate projects and properties who have a demonstrated record of past success with similar properties. Collateral properties include office buildings, warehouse/distribution buildings, shopping centers, hotels/motels, senior living, apartment buildings and residential and commercial tract development. The primary source of repayment on these loans is expected to come from the sale, permanent financing or lease of the real property collateral. CRE loans are impacted by fluctuations in collateral values, as well as the ability of the borrower to obtain permanent financing. Residential homebuilder finance ("RBF") . The RBF portfolio is comprised of loans made to residential builders and developers. Loans to residential builders are typically in the form of uncommitted guidance lines and are for the purpose of developing lots into single-family homes, while loans to developers are typically in the form of borrowing base lines extended for the purpose of acquiring and developing raw land into lots that can be further sold to home builders. RBF loans, if not structured and monitored correctly, can be impacted by volatility in consumer demand, as well as fluctuation in housing prices. Secured by 1-4 family . This category of loans includes both first and second lien loans made for the purpose of purchasing or constructing 1-4 family residential dwellings, as well as home equity revolving lines of credit and loans to purchase lots for future construction of 1-4 family residential dwellings. Other . The "other" category is primarily comprised of real estate loans originated through a Small Business Administration (SBA) program where repayment is partially guaranteed by the SBA, as well as other loans secured by real estate where the primary source of repayment is not expected to come from the sale or lease of the real property collateral. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Within our criticized/classified credit grades are special mention, substandard and doubtful. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inadequately protected by the sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired. Substandard loans can be accruing or can be on non-accrual depending on the circumstances of the individual loans. Loans classified as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are on non-accrual. The methodology used in the estimation of the allowance, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality and forecasted economic conditions. Changes are reflected in the pool-basis allowance and in reserves assigned on an individual basis as the collectability of classified loans is evaluated with new information. As our portfolio has matured, historical loss ratios have been closely monitored. The review of the appropriateness of the allowance is performed by executive management and presented to the audit and risk committees of our board of directors for their review. The committees report to the board as part of the board's review on a quarterly basis of our consolidated financial statements. When management determines that foreclosure is probable, and for certain collateral-dependent loans where foreclosure is not considered probable, expected credit losses are based on the fair value of the collateral adjusted for selling costs, when appropriate. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation that a loan will be restructured, or the extension or renewal options are included in the borrower contract and are not unconditionally cancellable by us. We do not measure an allowance for credit losses on accrued interest receivable balances because these balances are written off in a timely manner as a reduction to interest income when loans are placed on non-accrual status as discussed above. Investment Securities Available-for-Sale For available-for-sale debt securities in an unrealized loss position, we first assess whether we intend to sell or it is more-likely-than-not that we will be required to sell the securities before recovery of the amortized cost basis. If either of these criteria is met, the securities' amortized cost basis is written down to fair value as a current period expense. If either of the above criteria is not met, we evaluate whether the decline in fair value is the result of credit losses or other factors. In making this assessment, we may consider various factors including the extent to which fair value is less than amortized cost, performance of any underlying collateral and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess of the amortized cost basis over the present value of expected cash flows is recorded as an allowance for credit loss, limited to the amount by which the fair value is less than the amortized cost basis. Any impairment not recorded through an allowance for credit loss is recognized in other comprehensive income as a non credit-related impairment. We have made a policy election to exclude accrued interest from the amortized cost basis of available-for-sale debt securities and report accrued interest separately in accrued interest and other assets in the consolidated balance sheets. Available-for-sale debt securities are placed on non-accrual status when we no longer expect to receive all contractual amounts due, which is generally at 90 days past due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable. All debt securities are available-for-sale as of June 30, 2020 and December 31, 2019. Included in debt securities available-for-sale are Credit Risk Transfer ("CRT") securities. CRT securities represent unsecured obligations issued by government sponsored entities ("GSEs") such as Freddie Mac and are designed to transfer mortgage credit risk from the GSE to private investors. CRT securities are structured to be subject to the performance of a reference pool of mortgage loans in which we share in 50% of the first losses with the GSE. If the reference pool incurs losses, the amount we will recover on the notes is reduced by our share of the amount of such losses, which could potentially be up to 100% of the amount outstanding. Unrealized losses recognized in accumulated other comprehensive income ("AOCI") for the CRT securities are primarily related to the difference between the current market rate for similar securities and the stated interest rate and are not considered to be related to credit loss events. The CRT securities are generally interest-only for an initial period of time and are restricted from being transferred until a future date. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change. |
Operations and Summary of Sig_3
Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | Revised Consolidated Balance Sheet as of December 31, 2019 ( in thousands) As Reported Adjustment As Revised Other liabilities $ 287,157 $ 30,937 $ 318,094 Total liabilities 29,715,811 30,937 29,746,748 Retained Earnings 1,694,608 (30,937 ) 1,663,671 Total Equity 2,832,258 (30,937 ) 2,801,321 Revised Consolidated Statement of Operations and Other Comprehensive Income/(Loss) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) As Reported Adjustment As Revised As Reported Adjustment As Revised Salaries and employee benefits expense $ 76,889 $ 868 $ 77,757 $ 154,712 $ 2,801 $ 157,513 Other non-interest expense 11,445 (711 ) 10,734 24,681 (1,506 ) 23,175 Total non-interest expense 141,561 157 141,718 281,939 1,295 283,234 Income before tax 99,356 (157 ) 99,199 204,606 (1,295 ) 203,311 Net income 77,969 (157 ) 77,812 160,808 (1,295 ) 159,513 Net income available to common stockholders 75,532 (157 ) 75,375 155,933 (1,295 ) 154,638 Comprehensive income 85,807 (157 ) 85,650 168,603 (1,295 ) 167,308 Revised Consolidated Statement of Stockholders' Equity(1) Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in thousands) As Reported Adjustment As Revised As Reported Adjustment As Revised Beginning balance retained earnings $ 1,461,893 $ (21,224 ) $ 1,440,669 $ 1,381,492 $ (20,086 ) $ 1,361,406 Beginning balance total equity 2,581,942 (21,224 ) 2,560,718 2,500,394 (20,086 ) 2,480,308 Ending balance retained earnings 1,537,425 (21,381 ) 1,516,044 1,537,425 (21,381 ) 1,516,044 Ending balance total equity 2,668,452 (21,381 ) 2,647,071 2,668,452 (21,381 ) 2,647,071 (1) March 31, 2020 reported balances of $1,668,329 and $2,803,533 for retained earnings and total equity, respectively were both adjusted down by $30,937 to revised balances of $1,637,392 and $2,772,596 , respectively. |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the impact of adopting ASU 2016-13 and details how outstanding loan balances have been reclassified as a result of changes made to our primary portfolio segments under CECL: January 1, 2020 (in thousands) As Reported Under ASU 2016-13 Pre-ASU 2016-13 Impact of ASU 2016-13 Adoption Assets: Loans held for investment (outstanding balance) Commercial $ 9,133,444 $ 10,230,828 $ (1,097,384 ) Energy 1,425,309 1,425,309 Mortgage finance 8,169,849 8,169,849 — Construction 2,563,339 (2,563,339 ) Real estate 6,008,040 3,444,701 2,563,339 Consumer 71,463 (71,463 ) Equipment leases 256,462 (256,462 ) Allowance for credit losses on loans (203,632 ) (195,047 ) (8,585 ) Total loans held for investment, net 24,442,630 24,451,215 (8,585 ) Net deferred tax asset 23,058 21,064 1,994 Liabilities: Allowance for credit losses on off-balance sheet exposures 9,203 8,640 563 Equity: Retained earnings 1,656,517 1,663,671 (7,154 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table presents the computation of basic and diluted earnings per share: Three months ended June 30, Six months ended June 30, (in thousands except share and per share data) 2020 2019 2020 2019 Numerator: Net income/(loss) $ (34,316 ) $ 77,812 $ (51,003 ) $ 159,513 Preferred stock dividends 2,437 2,437 4,875 4,875 Net income/(loss) available to common stockholders $ (36,753 ) $ 75,375 $ (55,878 ) $ 154,638 Denominator: Denominator for basic earnings per share—weighted average shares 50,392,394 50,280,776 50,401,401 50,257,039 Effect of employee stock-based awards(1) 23,937 103,094 71,749 102,954 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 50,416,331 50,383,870 50,473,150 50,359,993 Basic earnings/(loss) per common share $ (0.73 ) $ 1.50 $ (1.11 ) $ 3.07 Diluted earnings/(loss) per common share $ (0.73 ) $ 1.50 $ (1.11 ) $ 3.07 (1) SARs and RSUs outstanding of 510,095 at June 30, 2020 and 116,840 at June 30, 2019 have not been included in diluted earnings/(loss) per share because to do so would have been antidilutive for the periods presented. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Securities, Available-for-sale [Abstract] | |
Summary of securities | The following is a summary of available-for-sale debt securities: (in thousands) Amortized Cost(1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value June 30, 2020 Available-for-sale debt securities: Residential mortgage-backed securities $ 4,308 $ 154 $ — $ 4,462 Tax-exempt asset-backed securities 187,210 4,455 (248 ) 191,417 Credit risk transfer securities 14,713 — (3,760 ) 10,953 Total $ 206,231 $ 4,609 $ (4,008 ) $ 206,832 December 31, 2019 Available-for-sale debt securities: Residential mortgage-backed securities $ 4,991 $ 275 $ — $ 5,266 Tax-exempt asset-backed securities 183,225 13,802 — 197,027 Credit risk transfer securities 14,713 — (2,749 ) 11,964 Total $ 202,929 $ 14,077 $ (2,749 ) $ 214,257 (1) Excludes accrued interest receivable of $1.5 million and $1.6 million at June 30, 2020 and December 31, 2019, respectively, that is recorded in accrued interest receivable and other assets. |
Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value, excluding accrued interest receivable, and weighted average yield of available-for-sale debt securities are presented below by contractual maturity: (in thousands, except percentage data) Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total June 30, 2020 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ — $ 772 $ — $ 3,536 $ 4,308 Estimated fair value — 851 — 3,611 4,462 Weighted average yield(3) — % 5.54 % — % 3.73 % 4.05 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 187,210 187,210 Estimated fair value — — — 191,417 191,417 Weighted average yield(2)(3) — % — % — % 3.88 % 3.88 % CRT securities:(1) Amortized Cost — — — 14,713 14,713 Estimated fair value — — — 10,953 10,953 Weighted average yield(3) — % — % — % 0.18 % 0.18 % Total available-for-sale debt securities: Amortized cost $ 206,231 Estimated fair value $ 206,832 December 31, 2019 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ — $ 1,005 $ — $ 3,986 $ 4,991 Estimated fair value — 1,088 — 4,178 5,266 Weighted average yield(3) — % 5.54 % — % 4.31 % 4.55 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 183,225 183,225 Estimated fair value — — — 197,027 197,027 Weighted average yield(2)(3) — % — % — % 4.20 % 4.20 % CRT securities:(1) Amortized Cost — — — 14,713 14,713 Estimated fair value — — — 11,964 11,964 Weighted average yield(3) — % — % — % 1.71 % 1.71 % Total available-for-sale debt securities: Amortized cost $ 202,929 Estimated fair value $ 214,257 (1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate. (3) Yields are calculated based on amortized cost. |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table discloses our available-for-sale debt securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: Less Than 12 Months 12 Months or Longer Total (in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2020 Tax-exempt asset-backed securities $ 91,762 $ (248 ) $ — $ — $ 91,762 $ (248 ) CRT securities — — 10,953 (3,760 ) 10,953 (3,760 ) Total $ 91,762 $ (248 ) $ 10,953 $ (3,760 ) $ 102,715 $ (4,008 ) December 31, 2019 CRT securities $ 11,964 $ (2,749 ) $ — $ — $ 11,964 $ (2,749 ) |
Summary of unrealized and realized gains/(losses) recognized in net income on equity securities | The following is a summary of unrealized and realized gains/(losses) recognized on equity securities and included in other non-interest income in the consolidated statements of income: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Net gains/(losses) recognized during the period $ 2,912 $ 573 $ (65 ) $ 1,839 Less: Realized net gains/(losses) recognized during the period on equity securities sold (226 ) 6 (245 ) (24 ) Unrealized net gains/(losses) recognized during the period on equity securities still held $ 3,138 $ 567 $ 180 $ 1,863 |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of loans held for investments | Loans held for investment are summarized by portfolio segment as follows: (in thousands) June 30, 2020 December 31, 2019 Commercial $ 9,164,661 $ 9,133,444 Energy 1,146,164 1,425,309 Mortgage finance(1) 8,972,626 8,169,849 Real estate 6,326,434 6,008,040 Gross loans held for investment(2) 25,609,885 24,736,642 Deferred income (net of direct origination costs) (85,056 ) (90,380 ) Allowance for credit losses on loans (264,722 ) (195,047 ) Total loans held for investment, net(2) $ 25,260,107 $ 24,451,215 (1) Balances at June 30, 2020 and December 31, 2019 are stated net of $1.3 billion and $682.7 million of participations sold, respectively. (2) Excludes accrued interest receivable of $55.8 million and $63.4 million at June 30, 2020 and December 31, 2019 , respectively, that is recorded in accrued interest receivable and other assets. |
Schedule of the credit risk profile of loan portfolio by internally assigned grades and nonaccrual status | The following table summarizes our gross loans held for investment by year of origination and internally assigned credit grades: (in thousands) 2020 2019 2018 2017 2016 2015 and prior Revolving lines of credit Revolving lines of credit converted to term loans Total June 30, 2020 Commercial (1-7) Pass $ 995,901 $ 3,094,437 $ 677,757 $ 409,424 $ 193,252 $ 259,128 $ 3,115,827 $ 37,322 $ 8,783,048 (8) Special mention 15,204 16,219 29,464 52,773 15,860 10,715 46,899 4,009 191,143 (9) Substandard - accruing 10,608 19,213 22,743 20,754 21,662 10,605 32,097 1,582 139,264 (9+) Non-accrual — 8,615 386 11,396 2,317 22,092 6,227 173 51,206 Total commercial $ 1,021,713 $ 3,138,484 $ 730,350 $ 494,347 $ 233,091 $ 302,540 $ 3,201,050 $ 43,086 $ 9,164,661 Energy (1-7) Pass $ 2,519 $ — $ 154 $ 22,583 $ 1,500 $ 10,620 $ 785,048 $ 150 $ 822,574 (8) Special mention — 11,000 23,571 — 15,989 15,771 75,586 — 141,917 (9) Substandard - accruing — — — — 14,605 295 62,899 — 77,799 (9+) Non-accrual — 19,264 20,570 1,562 11,822 15,488 31,660 3,508 103,874 Total energy $ 2,519 $ 30,264 $ 44,295 $ 24,145 $ 43,916 $ 42,174 $ 955,193 $ 3,658 $ 1,146,164 Mortgage finance (1-7) Pass $ 265,020 $ 1,052,947 $ 905,896 $ 599,686 $ 163,306 $ 5,985,771 $ — $ — $ 8,972,626 (8) Special mention — — — — — — — — — (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Total mortgage finance $ 265,020 $ 1,052,947 $ 905,896 $ 599,686 $ 163,306 $ 5,985,771 $ — $ — $ 8,972,626 Real estate CRE (1-7) Pass $ 193,894 $ 852,283 $ 951,771 $ 805,322 $ 273,234 $ 567,932 $ 104,888 $ 36,350 $ 3,785,674 (8) Special mention — — 59,051 37,120 20,762 49,458 — 6,510 172,901 (9) Substandard - accruing — — 4,036 — — 34,024 — 1,250 39,310 (9+) Non-accrual — — — — — 241 — — 241 RBF (1-7) Pass 98,571 173,525 121,844 24,115 8,893 13,211 591,953 — 1,032,112 (8) Special mention — 862 — — — — — — 862 (9) Substandard - accruing — — — — — — — — — (9+) Non-accrual — — — — — — — — — Other (1-7) Pass 113,824 167,359 137,489 154,912 97,283 129,998 19,974 23,413 844,252 (8) Special mention — 3,578 7,486 11,894 6,218 25,234 — 7,283 61,693 (9) Substandard - accruing — — 526 1,009 356 10,266 — — 12,157 (9+) Non-accrual — 574 — — 783 3,035 — 14,100 18,492 Secured by 1-4 family (1-7) Pass 29,793 65,149 59,560 67,208 90,671 38,410 4,825 — 355,616 (8) Special mention — — 179 — — 1,792 — — 1,971 (9) Substandard - accruing — — — 826 — 109 — — 935 (9+) Non-accrual — — — — — 218 — — 218 Total real estate $ 436,082 $ 1,263,330 $ 1,341,942 $ 1,102,406 $ 498,200 $ 873,928 $ 721,640 $ 88,906 $ 6,326,434 Total loans held for investment $ 1,725,334 $ 5,485,025 $ 3,022,483 $ 2,220,584 $ 938,513 $ 7,204,413 $ 4,877,883 $ 135,650 $ 25,609,885 |
Schedule of activity in the reserve for loan losses by portfolio segment | The following table details activity in the allowance for credit losses on loans. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Energy Mortgage Finance Real Estate Additional Qualitative Reserve Total Six months ended June 30, 2020 Allowance for credit losses on loans: Beginning balance $ 102,254 $ 60,253 $ 2,265 $ 30,275 $ — $ 195,047 Impact of CECL adoption (15,740 ) 24,154 2,031 (1,860 ) — 8,585 Provision for credit losses on loans 28,850 117,963 299 45,823 — 192,935 Charge-offs 32,940 100,098 — — — 133,038 Recoveries 770 423 — — — 1,193 Net charge-offs (recoveries) 32,170 99,675 — — — 131,845 Ending balance $ 83,194 $ 102,695 $ 4,595 $ 74,238 $ — $ 264,722 Six months ended June 30, 2019 Allowance for credit losses on loans: Beginning balance $ 96,814 $ 34,882 $ — $ 52,595 $ 7,231 $ 191,522 Provision for credit losses on loans 21,979 28,430 2,316 2,150 (7,231 ) 47,644 Charge-offs 9,745 15,173 — 177 — 25,095 Recoveries 501 — — — — 501 Net charge-offs (recoveries) 9,244 15,173 — 177 — 24,594 Ending balance $ 109,549 $ 48,139 $ 2,316 $ 54,568 $ — $ 214,572 |
Schedule of impaired loans, by portfolio class | The table below provides an age analysis of our loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due(1) Total Past Due Non-accrual loans as of June 30, 2020(2) Current Total Non-accrual With No Allowance June 30, 2020 Commercial $ 19,451 $ 6,383 $ 18,939 $ 44,773 $ 51,206 $ 9,068,682 $ 9,164,661 $ 21,146 Energy 295 — — 295 103,874 1,041,995 1,146,164 54,986 Mortgage finance loans — — — — — 8,972,626 8,972,626 — Real estate CRE 13,307 31 1,250 14,588 241 3,983,297 3,998,126 — RBF — — — — — 1,032,974 1,032,974 — Other 581 6,010 — 6,591 18,492 911,511 936,594 18,492 Secured by 1-4 family 371 1,686 890 2,947 218 355,575 358,740 — Total loans held for investment $ 34,005 $ 14,110 $ 21,079 $ 69,194 $ 174,031 $ 25,366,660 $ 25,609,885 $ 94,624 (1) Loans past due 90 days and still accruing includes premium finance loans of $14.8 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The receipt of the refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. (2) As of June 30, 2020 and December 31, 2019 , none of our non-accrual loans were earning interest income on a cash basis. Additionally, no interest income was recognized on non-accrual loans for the six months ended June 30, 2020. Accrued interest of $708,000 was reversed during the six months ended June 30, 2020. |
Schedule of loans that have been restructured | The following table details the recorded investment at June 30, 2020 and June 30, 2019 of loans restructured during the six months ended June 30, 2020 and June 30, 2019 by type of modification: Extended Maturity Adjusted Payment Schedule Total (in thousands, except number of contracts) Number of Contracts Balance at Period End Number of Contracts Balance at Period End Number of Contracts Balance at Period End Six months ended June 30, 2020 Commercial loans 2 $ 7,906 — $ — 2 $ 7,906 Energy loans 1 6,105 — — 1 6,105 Total 3 $ 14,011 — $ — 3 $ 14,011 Six months ended June 30, 2019 Commercial loans 1 $ 1,896 — $ — $ 1 $ 1,896 Energy loans 1 16,541 — — 1 16,541 Total 2 $ 18,437 — $ — 2 $ 18,437 |
Financing Receivable, Nonaccrual | The following table summarizes collateral-dependent gross loans held for investment by collateral type as follows: Collateral type (in thousands) Business assets Oil/Gas Mineral Reserves Total June 30, 2020 Commercial $ 11,946 $ — $ 11,946 Energy — 84,330 84,330 Total collateral-dependent loans held for investment $ 11,946 $ 84,330 $ 96,276 |
Certain Transfers of Financia_2
Certain Transfers of Financial Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of Loans Held-for-sale [Table Text Block] | The table below presents a reconciliation of the changes in loans held for sale: Six Months Ended June 30, (in thousands) 2020 2019 Outstanding balance(1): Beginning balance $ 2,568,362 $ 1,949,785 Loans purchased and originated 4,931,981 4,172,519 Payments and loans sold (7,052,942 ) (5,071,502 ) Ending balance 447,401 1,050,802 Fair value adjustment: Beginning balance 8,772 19,689 Increase/(decrease) to fair value (1,592 ) (12,905 ) Ending balance 7,180 6,784 Loans held for sale at fair value $ 454,581 $ 1,057,586 (1) Includes $5.8 million of loans held for sale that are carried at lower of cost or market as of December 31, 2019 and $299,000 as of December 31, 2018 , as well as $1.1 million as of June 30, 2019. There were no loans held for sale carried at lower of cost or market as of June 30, 2020. |
Schedule of Mortgage Servicing Rights Activity [Table Text Block] | retain the right to service the loans sold through our Mortgage Correspondent Aggregation ("MCA") program, creating mortgage servicing rights ("MSRs") which are recorded as assets on our balance sheet. A summary of MSR activity is as follows: Six months ended June 30, (in thousands) 2020 2019 MSRs: Balance, beginning of year $ 70,707 $ 42,474 Capitalized servicing rights 45,397 14,806 Amortization (14,032 ) (3,723 ) Sales — — Balance, end of period $ 102,072 $ 53,557 Valuation allowance: Balance, beginning of year $ 5,803 $ — Increase in valuation allowance 20,818 5,772 Balance, end of period $ 26,621 $ 5,772 MSRs, net $ 75,451 $ 47,785 MSRs, fair value $ 75,451 $ 47,845 |
Schedule of Fair Value Assumption Used to Value Mortgage Servicing Rights Retained [Table Text Block] | The following summarizes the assumptions used by management to determine the fair value of MSRs: June 30, 2020 December 31, 2019 Average discount rates 9.18 % 9.06 % Expected prepayment speeds 17.15 % 13.11 % Weighted-average life, in years 4.7 5.8 |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table: (in thousands) June 30, 2020 December 31, 2019 50 bp adverse change in prepayment speed $ (6,133 ) $ (10,768 ) 100 bp adverse change in prepayment speed (6,954 ) (17,965 ) |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. This allowance is recorded in other liabilities on the consolidated balance sheets. Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Beginning balance of allowance for off-balance sheet credit losses $ 10,174 $ 9,795 $ 8,640 $ 11,434 Impact of CECL adoption — — 563 — Provision for off-balance sheet credit losses 2,094 995 3,065 (644 ) Ending balance of allowance for off-balance sheet credit losses $ 12,268 $ 10,790 $ 12,268 $ 10,790 (in thousands) June 30, 2020 December 31, 2019 Commitments to extend credit - period end balance $ 8,074,723 $ 8,066,655 Standby letters of credit - period end balance $ 252,246 $ 261,405 |
Regulatory Restrictions (Tables
Regulatory Restrictions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of compliance with Regulatory Capital Requirements | The table below summarizes our actual and required capital ratios under the Basel III Capital Rules. The ratios presented below include the effects of our election to utilize the five-year CECL transition described above. Actual For Capital Adequacy Purposes Required to be Considered Well Capitalized (dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio June 30, 2020 CET1 Company $ 2,588,325 8.88 % $ 2,040,935 7.00 % N/A N/A Bank 2,619,361 9.00 % 2,037,171 7.00 % 1,891,659 6.50 % Total capital (to risk-weighted assets) Company 3,383,499 11.60 % 3,061,403 10.50 % N/A N/A Bank 3,255,770 11.19 % 3,055,757 10.50 % 2,910,244 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,849,387 9.77 % 2,478,278 8.50 % N/A N/A Bank 2,780,423 9.55 % 2,473,708 8.50 % 2,328,196 8.00 % Tier 1 capital (to average assets)(1) Company 2,849,387 7.52 % 1,516,474 4.00 % N/A N/A Bank 2,780,423 7.34 % 1,516,023 4.00 % 1,895,028 5.00 % December 31, 2019 CET1 Company $ 2,653,999 8.88 % $ 2,091,591 7.00 % N/A N/A Bank 2,676,513 8.96 % 2,090,870 7.00 % 1,941,522 6.50 % Total capital (to risk-weighted assets) Company 3,398,345 11.37 % 3,137,926 10.50 % N/A N/A Bank 3,262,144 10.92 % 3,136,305 10.50 % 2,986,957 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,912,529 9.75 % 2,540,226 8.50 % N/A N/A Bank 2,835,043 9.49 % 2,538,913 8.50 % 2,389,565 8.00 % Tier 1 capital (to average assets)(1) Company 2,912,529 8.42 % 1,383,640 4.00 % N/A N/A Bank 2,835,043 8.20 % 1,383,190 4.00 % 1,728,988 5.00 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Compensation Related Costs [Abstract] | |
Schedule of stock-based compensation costs | The table below summarizes our stock-based compensation expense: Three months ended June 30, Six months ended June 30, (in thousands) 2020 2019 2020 2019 Stock-settled awards: SARs $ — $ — $ — $ 6 RSUs 3,313 3,110 6,532 5,517 Restricted stock 9 9 17 19 Cash-settled units 338 1,338 480 3,403 Total $ 3,660 $ 4,457 $ 7,029 $ 8,945 |
Schedule of unrecognized compensation costs | (in thousands except period data) June 30, 2020 Unrecognized compensation expense related to unvested stock-settled awards $ 31,132 Weighted average period over which expense is expected to be recognized, in years 3.0 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 June 30, 2020 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 4,462 $ — Tax-exempt asset-backed securities — — 191,417 CRT securities — — 10,953 Equity securities(1)(2) 20,862 7,275 — Loans held for sale(3) — 448,422 6,159 Loans held for investment(4) — — 72,629 Derivative assets(5) — 143,050 — Derivative liabilities(5) — 126,542 — Non-qualified deferred compensation plan liabilities(6) 21,462 — — December 31, 2019 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 5,266 $ — Tax-exempt asset-backed securities — — 197,027 CRT securities — — 11,964 Equity securities(1)(2) 18,484 7,130 — Loans held for sale(3) — 2,564,281 7,043 Loans held for investment(4) — — 109,585 Derivative assets(5) — 48,684 — Derivative liabilities(5) — 51,310 — Non-qualified deferred compensation plan liabilities(6) 18,484 — — (1) Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities and CRT securities which are measured quarterly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale purchased through our MCA program are measured at fair value on a recurring basis, generally monthly. (4) Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (5) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (6) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis: Net Realized/Unrealized Gains (Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Three months ended June 30, 2020 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 191,474 $ 8,470 $ (132 ) $ — $ (8,395 ) $ 191,417 CRT securities $ 8,015 $ — $ — $ — $ 2,938 $ 10,953 Loans held for sale(2) $ 6,694 $ 107 $ (780 ) $ 88 $ 50 $ 6,159 Three months ended June 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 191,844 $ — $ (138 ) $ — $ 9,633 $ 201,339 CRT securities $ 10,637 $ — $ — $ — $ 316 $ 10,953 Loans held for sale(2) $ 13,046 $ — $ (2,532 ) $ 132 $ 284 $ 10,930 Six months ended June 30, 2020 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 197,027 $ 8,470 $ (4,485 ) $ — $ (9,595 ) $ 191,417 CRT securities $ 11,964 $ — $ — $ — $ (1,011 ) $ 10,953 Loans held for sale(2) $ 7,043 $ 320 $ (1,464 ) $ 116 $ 144 $ 6,159 Six months ended June 30, 2019 Available-for-sale debt securities:(1) Tax-exempt asset-backed securities $ 95,804 $ 92,010 $ (138 ) $ — $ 13,663 $ 201,339 CRT securities $ — $ 15,044 $ — $ (331 ) $ (3,760 ) $ 10,953 Loans held for sale(2) $ 16,415 $ — $ (6,410 ) $ 348 $ 577 $ 10,930 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI and relate to assets that remain outstanding at June period end. Realized gains/(losses) are recorded in other non-interest income. (2) Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale. |
Summary of the carrying amounts and estimated fair values of financial instruments | A summary of the carrying amounts and estimated fair values of financial instruments is as follows: June 30, 2020 December 31, 2019 (in thousands) Carrying Amount Estimated Fair Value Carrying Estimated Financial assets: Level 1 inputs: Cash and cash equivalents $ 9,716,584 $ 9,716,584 $ 4,425,583 $ 4,425,583 Investment securities 20,862 20,862 18,484 18,484 Level 2 inputs: Investment securities 11,737 11,737 12,396 12,396 Loans held for sale 448,422 448,422 2,570,091 2,570,091 Derivative assets 143,050 143,050 48,684 48,684 Level 3 inputs: Investment securities 202,370 202,370 208,991 208,991 Loans held for sale 6,159 6,159 7,043 7,043 Loans held for investment, net 25,260,107 25,249,741 24,451,215 24,478,586 Financial liabilities: Level 2 inputs: Federal funds purchased 189,030 189,030 132,270 132,270 Customer repurchase agreements 6,760 6,760 9,496 9,496 Other borrowings 2,700,000 2,700,000 2,400,000 2,400,000 Subordinated notes 282,309 291,821 282,129 292,302 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 126,542 126,542 51,310 51,310 Level 3 inputs: Deposits 30,187,695 30,192,842 26,478,593 26,486,090 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table: June 30, 2020 December 31, 2019 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,947,806 $ — $ 118,663 $ 1,548,234 $ 182 $ 46,518 Commercial loan/lease interest rate caps 657,109 42 — 639,163 32 — Foreign currency forward contracts 2,228 — 238 2,219 169 — Customer counterparties: Commercial loan/lease interest rate swaps 1,947,806 118,663 — 1,548,234 46,518 182 Commercial loan/lease interest rate caps 657,109 — 42 639,163 — 32 Foreign currency forward contracts 2,228 238 — 2,219 — 169 Economic hedging derivatives to hedge: Residential MSRs: Interest rate swap futures 255,000 2,460 3 — — — Forward sale commitments 153,000 1,067 — — — — Loans held for sale: Loan purchase commitments 1,215,599 20,580 3 214,012 1,965 4 Forward sale commitments 1,311,974 — 7,593 2,654,653 — 4,587 Gross derivatives 143,050 126,542 48,866 51,492 Offsetting derivative assets/liabilities — — (182 ) (182 ) Net derivatives included in the consolidated balance sheets $ 143,050 $ 126,542 $ 48,684 $ 51,310 |
Schedule Of Weighted Average Interest Rate Received And Paid | The weighted-average received and paid interest rates for interest rate swaps outstanding were as follows: June 30, 2020 Weighted-Average Interest Rate December 31, 2019 Weighted-Average Interest Rate Received Paid Received Paid Non-hedging interest rate swaps 3.23 % 1.44 % 3.94 % 3.26 % |
Operations and Summary of Sig_4
Operations and Summary of Significant Accounting Policies - Revision of Prior Period Financial Statements, Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other liabilities | $ 378,858 | $ 318,094 | |||||
Liabilities | 33,878,372 | 29,746,748 | |||||
Retained earnings | 1,600,639 | $ 1,637,392 | $ 1,663,671 | 1,663,671 | $ 1,516,044 | $ 1,440,669 | $ 1,361,406 |
Total stockholders’ equity | $ 2,734,755 | 2,772,596 | 2,801,321 | 2,647,071 | 2,560,718 | 2,480,308 | |
Previously Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other liabilities | 287,157 | ||||||
Liabilities | 29,715,811 | ||||||
Retained earnings | 1,668,329 | 1,694,608 | 1,537,425 | 1,461,893 | 1,381,492 | ||
Total stockholders’ equity | 2,803,533 | 2,832,258 | 2,668,452 | 2,581,942 | 2,500,394 | ||
Revision of Prior Period, Error Correction, Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other liabilities | 30,937 | ||||||
Liabilities | 30,937 | ||||||
Retained earnings | 30,937 | (30,937) | (21,381) | (21,224) | (20,086) | ||
Total stockholders’ equity | $ 30,937 | $ (30,937) | $ (21,381) | $ (21,224) | $ (20,086) |
Operations and Summary of Sig_5
Operations and Summary of Significant Accounting Policies - Revision of Prior Period Financial Statements, Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Salaries and employee benefits | $ 100,791 | $ 77,757 | $ 177,984 | $ 157,513 |
Other non-interest expense | 12,606 | 10,734 | 22,866 | 23,175 |
Non-interest expense | 222,352 | 141,718 | 387,769 | 283,234 |
Income before income taxes | (41,922) | 99,199 | (63,240) | 203,311 |
Net income | (34,316) | 77,812 | (51,003) | 159,513 |
Net income available to common stockholders | (36,753) | 75,375 | (55,878) | 154,638 |
Comprehensive income | $ (38,609) | 85,650 | $ (59,477) | 167,308 |
Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Salaries and employee benefits | 76,889 | 154,712 | ||
Other non-interest expense | 11,445 | 24,681 | ||
Non-interest expense | 141,561 | 281,939 | ||
Income before income taxes | 99,356 | 204,606 | ||
Net income | 77,969 | 160,808 | ||
Net income available to common stockholders | 75,532 | 155,933 | ||
Comprehensive income | 85,807 | 168,603 | ||
Revision of Prior Period, Error Correction, Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Salaries and employee benefits | 868 | 2,801 | ||
Other non-interest expense | (711) | (1,506) | ||
Non-interest expense | 157 | 1,295 | ||
Income before income taxes | (157) | (1,295) | ||
Net income | (157) | (1,295) | ||
Net income available to common stockholders | (157) | (1,295) | ||
Comprehensive income | $ (157) | $ (1,295) |
Operations and Summary of Sig_6
Operations and Summary of Significant Accounting Policies - Revision of Prior Period Financial Statements, Equity Statement (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Beginning balance retained earnings | $ 1,637,392 | $ 1,663,671 | $ 1,663,671 | $ 1,516,044 | $ 1,440,669 | $ 1,361,406 |
Beginning balance - Amount | 2,772,596 | 2,801,321 | 2,647,071 | 2,560,718 | 2,480,308 | |
Ending balance retained earnings | 1,600,639 | 1,637,392 | 1,663,671 | 1,663,671 | 1,516,044 | 1,440,669 |
Ending balance - Amount | 2,734,755 | 2,772,596 | 2,801,321 | 2,647,071 | 2,560,718 | |
Previously Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Beginning balance retained earnings | 1,668,329 | 1,694,608 | 1,537,425 | 1,461,893 | 1,381,492 | |
Beginning balance - Amount | 2,803,533 | 2,832,258 | 2,668,452 | 2,581,942 | 2,500,394 | |
Ending balance retained earnings | 1,668,329 | 1,694,608 | 1,537,425 | 1,461,893 | ||
Ending balance - Amount | 2,803,533 | 2,832,258 | 2,668,452 | 2,581,942 | ||
Revision of Prior Period, Error Correction, Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Beginning balance retained earnings | 30,937 | (30,937) | (21,381) | (21,224) | (20,086) | |
Beginning balance - Amount | $ 30,937 | $ (30,937) | (21,381) | (21,224) | (20,086) | |
Ending balance retained earnings | 30,937 | (30,937) | (21,381) | (21,224) | ||
Ending balance - Amount | $ 30,937 | $ (30,937) | $ (21,381) | $ (21,224) |
Operations and Summary of Sig_7
Operations and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | Jun. 30, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Redemption value | $ 6.7 |
Operations and Summary of Sig_8
Operations and Summary of Significant Accounting Policies - Impact of ASU 2016-13 (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | |||||||
Loans held for investment (outstanding balance) | $ 25,609,885 | $ 24,736,642 | |||||
Allowance for credit losses on loans | (264,722) | $ (195,047) | (195,047) | $ (214,572) | $ (191,522) | ||
Loans held for investment, net | 25,260,107 | 24,451,215 | 24,451,215 | ||||
Net deferred tax asset | 21,064 | ||||||
Liabilities: | |||||||
Allowance for credit losses on off-balance sheet exposures | 12,268 | $ 10,174 | 8,640 | 8,640 | 10,790 | $ 9,795 | 11,434 |
Equity: | |||||||
Retained earnings | 1,600,639 | $ 1,637,392 | 1,663,671 | 1,663,671 | 1,516,044 | $ 1,440,669 | 1,361,406 |
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Allowance for credit losses on loans | (203,632) | ||||||
Loans held for investment, net | 24,442,630 | ||||||
Net deferred tax asset | 23,058 | ||||||
Liabilities: | |||||||
Allowance for credit losses on off-balance sheet exposures | 9,203 | ||||||
Equity: | |||||||
Retained earnings | 1,656,517 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Allowance for credit losses on loans | (8,585) | (8,585) | |||||
Loans held for investment, net | (8,585) | ||||||
Net deferred tax asset | 1,994 | ||||||
Liabilities: | |||||||
Allowance for credit losses on off-balance sheet exposures | 563 | ||||||
Equity: | |||||||
Retained earnings | (7,154) | ||||||
Commercial | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 9,164,661 | 10,230,828 | 9,133,444 | ||||
Allowance for credit losses on loans | (83,194) | (102,254) | (109,549) | (96,814) | |||
Commercial | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 9,133,444 | ||||||
Commercial | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | (1,097,384) | ||||||
Allowance for credit losses on loans | 15,740 | ||||||
Energy | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 1,146,164 | 1,425,309 | |||||
Allowance for credit losses on loans | (102,695) | (60,253) | (48,139) | (34,882) | |||
Energy | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 1,425,309 | ||||||
Energy | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 1,425,309 | ||||||
Allowance for credit losses on loans | (24,154) | ||||||
Mortgage finance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 8,972,626 | 8,169,849 | 8,169,849 | ||||
Allowance for credit losses on loans | (4,595) | (2,265) | (2,316) | 0 | |||
Mortgage finance | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 8,169,849 | ||||||
Mortgage finance | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 0 | ||||||
Allowance for credit losses on loans | (2,031) | ||||||
Construction | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 2,563,339 | ||||||
Construction | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | |||||||
Construction | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | (2,563,339) | ||||||
Real Estate | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 6,326,434 | 3,444,701 | 6,008,040 | ||||
Allowance for credit losses on loans | $ (74,238) | (30,275) | $ (54,568) | $ (52,595) | |||
Real Estate | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 6,008,040 | ||||||
Real Estate | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 2,563,339 | ||||||
Allowance for credit losses on loans | $ 1,860 | ||||||
Consumer | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 71,463 | ||||||
Consumer | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | |||||||
Consumer | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | (71,463) | ||||||
Equipment leases | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | 256,462 | ||||||
Equipment leases | Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | |||||||
Equipment leases | Cumulative Effect, Period Of Adoption, Adjustment | |||||||
Assets | |||||||
Loans held for investment (outstanding balance) | $ (256,462) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net income/(loss) | $ (34,316) | $ 77,812 | $ (51,003) | $ 159,513 |
Preferred stock dividends | 2,437 | 2,437 | 4,875 | 4,875 |
Net income/(loss) available to common stockholders | $ (36,753) | $ 75,375 | $ (55,878) | $ 154,638 |
Denominator: | ||||
Basic earnings per share - weighted average shares | 50,392,394 | 50,280,776 | 50,401,401 | 50,257,039 |
Effect of employee stock-based awards | 23,937 | 103,094 | 71,749 | 102,954 |
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions | 50,416,331 | 50,383,870 | 50,473,150 | 50,359,993 |
Basic earnings/(loss) per common share | $ (0.73) | $ 1.50 | $ (1.11) | $ 3.07 |
Diluted earnings/(loss) per common share | $ (0.73) | $ 1.50 | $ (1.11) | $ 3.07 |
Stock options excluded from computation of EPS | 510,095 | 116,840 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | $ 206,231 | $ 202,929 |
Gross Unrealized Gains | 4,609 | 14,077 |
Gross Unrealized Losses | (4,008) | (2,749) |
Estimated Fair Value | 206,832 | 214,257 |
Interest receivable | 55,800 | 63,400 |
Available-for-sale Securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Interest receivable | 1,500 | 1,600 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 4,308 | 4,991 |
Gross Unrealized Gains | 154 | 275 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 4,462 | 5,266 |
Tax-exempt asset-backed securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 187,210 | 183,225 |
Gross Unrealized Gains | 4,455 | 13,802 |
Gross Unrealized Losses | (248) | 0 |
Estimated Fair Value | 191,417 | 197,027 |
Credit risk transfer securities | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Amortized Cost | 14,713 | 14,713 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3,760) | (2,749) |
Estimated Fair Value | $ 10,953 | $ 11,964 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Amortized cost | ||
Amortized Cost | $ 206,231 | $ 202,929 |
Estimated fair value | ||
Total | 206,832 | 214,257 |
Investment securities | 206,832 | 214,257 |
Weighted average yield | ||
Debt Securities, Available-for-sale, Amortized Cost | 206,231 | 202,929 |
Less Than 12 Months, Fair Value | 91,762 | |
Less Than 12 Months, Unrealized Loss | (248) | |
12 Months or Longer, Fair Value | 10,953 | |
12 Months or Longer, Unrealized Loss | (3,760) | |
Total, Fair Value | 102,715 | |
Total, Unrealized Loss | $ (4,008) | |
Available-for-sale Securities, Other Disclosure Items | ||
Federal tax rate (percent) | 21.00% | |
Customer repurchase agreements | ||
Available-for-sale Securities, Other Disclosure Items | ||
Available-for-sale debt securities pledged to secure certain customer repurchase agreements and deposits | $ 3,000 | 3,500 |
Residential mortgage-backed securities | ||
Amortized cost | ||
Less Than One Year | 0 | 0 |
After One Through Five Years | 772 | 1,005 |
After Five Through Ten Years | 0 | 0 |
After Ten Years | 3,536 | 3,986 |
Amortized Cost | 4,308 | 4,991 |
Estimated fair value | ||
Less Than One Year | 0 | 0 |
After One Through Five Years | 851 | 1,088 |
After Five Through Ten Years | 0 | 0 |
After Ten Years | 3,611 | 4,178 |
Investment securities | $ 4,462 | $ 5,266 |
Weighted average yield | ||
Less Than One Year | 0.00% | 0.00% |
After One Through Five Years | 5.54% | 5.54% |
After Five Through Ten Years | 0.00% | 0.00% |
After Ten Years | 3.73% | 4.31% |
Total | 4.05% | 4.55% |
Debt Securities, Available-for-sale, Amortized Cost | $ 4,308 | $ 4,991 |
Tax-exempt asset-backed securities | ||
Amortized cost | ||
Less Than One Year | 0 | 0 |
After One Through Five Years | 0 | 0 |
After Five Through Ten Years | 0 | 0 |
After Ten Years | 187,210 | 183,225 |
Amortized Cost | 187,210 | 183,225 |
Estimated fair value | ||
Less Than One Year | 0 | 0 |
After One Through Five Years | 0 | 0 |
After Five Through Ten Years | 0 | 0 |
After Ten Years | 191,417 | 197,027 |
Investment securities | $ 191,417 | $ 197,027 |
Weighted average yield | ||
Less Than One Year | 0.00% | 0.00% |
After One Through Five Years | 0.00% | 0.00% |
After Five Through Ten Years | 0.00% | 0.00% |
After Ten Years | 3.88% | 4.20% |
Total | 3.88% | 4.20% |
Debt Securities, Available-for-sale, Amortized Cost | $ 187,210 | $ 183,225 |
Less Than 12 Months, Fair Value | 91,762 | |
Less Than 12 Months, Unrealized Loss | (248) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Loss | 0 | |
Total, Fair Value | 91,762 | |
Total, Unrealized Loss | (248) | |
Credit risk transfer securities | ||
Amortized cost | ||
Less Than One Year | 0 | 0 |
After One Through Five Years | 0 | 0 |
After Five Through Ten Years | 0 | 0 |
After Ten Years | 14,713 | 14,713 |
Amortized Cost | 14,713 | 14,713 |
Estimated fair value | ||
Less Than One Year | 0 | 0 |
After One Through Five Years | 0 | 0 |
After Five Through Ten Years | 0 | 0 |
After Ten Years | 10,953 | 11,964 |
Investment securities | $ 10,953 | $ 11,964 |
Weighted average yield | ||
Less Than One Year | 0.00% | 0.00% |
After One Through Five Years | 0.00% | 0.00% |
After Five Through Ten Years | 0.00% | 0.00% |
After Ten Years | 0.18% | 1.71% |
Total | 0.18% | 1.71% |
Debt Securities, Available-for-sale, Amortized Cost | $ 14,713 | $ 14,713 |
Less Than 12 Months, Fair Value | 0 | 11,964 |
Less Than 12 Months, Unrealized Loss | 0 | (2,749) |
12 Months or Longer, Fair Value | 10,953 | 0 |
12 Months or Longer, Unrealized Loss | (3,760) | 0 |
Total, Fair Value | 10,953 | 11,964 |
Total, Unrealized Loss | (3,760) | (2,749) |
Deposits | ||
Available-for-sale Securities, Other Disclosure Items | ||
Available-for-sale debt securities pledged to secure certain customer repurchase agreements and deposits | $ 1,400 | $ 1,200 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |||||
Estimated fair value | $ 28,100 | $ 28,100 | $ 25,600 | ||
Net gains/(losses) recognized during the period | 2,912 | $ 573 | (65) | $ 1,839 | |
Less: Realized net gains/(losses) recognized during the period on equity securities sold | (226) | 6 | (245) | (24) | |
Unrealized net gains/(losses) recognized during the period on equity securities still held | $ 3,138 | $ 567 | $ 180 | $ 1,863 |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Loan Losses - Loans By Portfolio Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Gross loans held for investment | $ 25,609,885 | $ 24,736,642 | |||
Deferred income (net of direct origination costs) | (85,056) | (90,380) | |||
Allowance for credit losses on loans | (264,722) | $ (195,047) | (195,047) | $ (214,572) | $ (191,522) |
Loans held for investment, net | 25,260,107 | 24,451,215 | 24,451,215 | ||
Participations sold | 1,300,000 | 682,700 | |||
Interest receivable | 55,800 | 63,400 | |||
Commercial | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Gross loans held for investment | 9,164,661 | 10,230,828 | 9,133,444 | ||
Allowance for credit losses on loans | (83,194) | (102,254) | (109,549) | (96,814) | |
Energy | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Gross loans held for investment | 1,146,164 | 1,425,309 | |||
Allowance for credit losses on loans | (102,695) | (60,253) | (48,139) | (34,882) | |
Mortgage finance | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Gross loans held for investment | 8,972,626 | 8,169,849 | 8,169,849 | ||
Allowance for credit losses on loans | (4,595) | (2,265) | (2,316) | 0 | |
Real Estate | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Gross loans held for investment | 6,326,434 | $ 3,444,701 | 6,008,040 | ||
Allowance for credit losses on loans | $ (74,238) | $ (30,275) | $ (54,568) | $ (52,595) |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Loan Losses - Loans by Credit Quality Grade (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | $ 1,725,334 | ||
2019 | 5,485,025 | ||
2018 | 3,022,483 | ||
2017 | 2,220,584 | ||
2016 | 938,513 | ||
2015 and prior | 7,204,413 | ||
Revolving lines of credit | 4,877,883 | ||
Revolving lines of credit converted to term loans | 135,650 | ||
Total | 25,609,885 | $ 24,736,642 | |
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 1,021,713 | ||
2019 | 3,138,484 | ||
2018 | 730,350 | ||
2017 | 494,347 | ||
2016 | 233,091 | ||
2015 and prior | 302,540 | ||
Revolving lines of credit | 3,201,050 | ||
Revolving lines of credit converted to term loans | 43,086 | ||
Total | 9,164,661 | $ 10,230,828 | 9,133,444 |
Commercial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 995,901 | ||
2019 | 3,094,437 | ||
2018 | 677,757 | ||
2017 | 409,424 | ||
2016 | 193,252 | ||
2015 and prior | 259,128 | ||
Revolving lines of credit | 3,115,827 | ||
Revolving lines of credit converted to term loans | 37,322 | ||
Total | 8,783,048 | ||
Commercial | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 15,204 | ||
2019 | 16,219 | ||
2018 | 29,464 | ||
2017 | 52,773 | ||
2016 | 15,860 | ||
2015 and prior | 10,715 | ||
Revolving lines of credit | 46,899 | ||
Revolving lines of credit converted to term loans | 4,009 | ||
Total | 191,143 | ||
Commercial | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 10,608 | ||
2019 | 19,213 | ||
2018 | 22,743 | ||
2017 | 20,754 | ||
2016 | 21,662 | ||
2015 and prior | 10,605 | ||
Revolving lines of credit | 32,097 | ||
Revolving lines of credit converted to term loans | 1,582 | ||
Total | 139,264 | ||
Commercial | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 8,615 | ||
2018 | 386 | ||
2017 | 11,396 | ||
2016 | 2,317 | ||
2015 and prior | 22,092 | ||
Revolving lines of credit | 6,227 | ||
Revolving lines of credit converted to term loans | 173 | ||
Total | 51,206 | ||
Energy | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 2,519 | ||
2019 | 30,264 | ||
2018 | 44,295 | ||
2017 | 24,145 | ||
2016 | 43,916 | ||
2015 and prior | 42,174 | ||
Revolving lines of credit | 955,193 | ||
Revolving lines of credit converted to term loans | 3,658 | ||
Total | 1,146,164 | 1,425,309 | |
Energy | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 2,519 | ||
2019 | 0 | ||
2018 | 154 | ||
2017 | 22,583 | ||
2016 | 1,500 | ||
2015 and prior | 10,620 | ||
Revolving lines of credit | 785,048 | ||
Revolving lines of credit converted to term loans | 150 | ||
Total | 822,574 | ||
Energy | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 11,000 | ||
2018 | 23,571 | ||
2017 | 0 | ||
2016 | 15,989 | ||
2015 and prior | 15,771 | ||
Revolving lines of credit | 75,586 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 141,917 | ||
Energy | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 14,605 | ||
2015 and prior | 295 | ||
Revolving lines of credit | 62,899 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 77,799 | ||
Energy | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 19,264 | ||
2018 | 20,570 | ||
2017 | 1,562 | ||
2016 | 11,822 | ||
2015 and prior | 15,488 | ||
Revolving lines of credit | 31,660 | ||
Revolving lines of credit converted to term loans | 3,508 | ||
Total | 103,874 | ||
Mortgage finance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 265,020 | ||
2019 | 1,052,947 | ||
2018 | 905,896 | ||
2017 | 599,686 | ||
2016 | 163,306 | ||
2015 and prior | 5,985,771 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 8,972,626 | 8,169,849 | 8,169,849 |
Mortgage finance | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 265,020 | ||
2019 | 1,052,947 | ||
2018 | 905,896 | ||
2017 | 599,686 | ||
2016 | 163,306 | ||
2015 and prior | 5,985,771 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 8,972,626 | ||
Mortgage finance | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 0 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 0 | ||
Mortgage finance | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 0 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 0 | ||
Mortgage finance | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 0 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 0 | ||
Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 436,082 | ||
2019 | 1,263,330 | ||
2018 | 1,341,942 | ||
2017 | 1,102,406 | ||
2016 | 498,200 | ||
2015 and prior | 873,928 | ||
Revolving lines of credit | 721,640 | ||
Revolving lines of credit converted to term loans | 88,906 | ||
Total | 6,326,434 | $ 3,444,701 | $ 6,008,040 |
Real Estate | Commercial Real Estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 3,998,126 | ||
Real Estate | Commercial Real Estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 193,894 | ||
2019 | 852,283 | ||
2018 | 951,771 | ||
2017 | 805,322 | ||
2016 | 273,234 | ||
2015 and prior | 567,932 | ||
Revolving lines of credit | 104,888 | ||
Revolving lines of credit converted to term loans | 36,350 | ||
Total | 3,785,674 | ||
Real Estate | Commercial Real Estate | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 59,051 | ||
2017 | 37,120 | ||
2016 | 20,762 | ||
2015 and prior | 49,458 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 6,510 | ||
Total | 172,901 | ||
Real Estate | Commercial Real Estate | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 4,036 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 34,024 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 1,250 | ||
Total | 39,310 | ||
Real Estate | Commercial Real Estate | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 241 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 241 | ||
Real Estate | Residential Homebuilder Finance | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 1,032,974 | ||
Real Estate | Residential Homebuilder Finance | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 98,571 | ||
2019 | 173,525 | ||
2018 | 121,844 | ||
2017 | 24,115 | ||
2016 | 8,893 | ||
2015 and prior | 13,211 | ||
Revolving lines of credit | 591,953 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 1,032,112 | ||
Real Estate | Residential Homebuilder Finance | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 862 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 0 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 862 | ||
Real Estate | Residential Homebuilder Finance | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 0 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 0 | ||
Real Estate | Residential Homebuilder Finance | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 0 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 0 | ||
Real Estate | Other Financing Receivable | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 936,594 | ||
Real Estate | Other Financing Receivable | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 113,824 | ||
2019 | 167,359 | ||
2018 | 137,489 | ||
2017 | 154,912 | ||
2016 | 97,283 | ||
2015 and prior | 129,998 | ||
Revolving lines of credit | 19,974 | ||
Revolving lines of credit converted to term loans | 23,413 | ||
Total | 844,252 | ||
Real Estate | Other Financing Receivable | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 3,578 | ||
2018 | 7,486 | ||
2017 | 11,894 | ||
2016 | 6,218 | ||
2015 and prior | 25,234 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 7,283 | ||
Total | 61,693 | ||
Real Estate | Other Financing Receivable | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 526 | ||
2017 | 1,009 | ||
2016 | 356 | ||
2015 and prior | 10,266 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 12,157 | ||
Real Estate | Other Financing Receivable | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 574 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 783 | ||
2015 and prior | 3,035 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 14,100 | ||
Total | 18,492 | ||
Real Estate | Secured by 1-4 family | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 358,740 | ||
Real Estate | Secured by 1-4 family | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 29,793 | ||
2019 | 65,149 | ||
2018 | 59,560 | ||
2017 | 67,208 | ||
2016 | 90,671 | ||
2015 and prior | 38,410 | ||
Revolving lines of credit | 4,825 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 355,616 | ||
Real Estate | Secured by 1-4 family | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 179 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 1,792 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 1,971 | ||
Real Estate | Secured by 1-4 family | Substandard-accruing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 826 | ||
2016 | 0 | ||
2015 and prior | 109 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | 935 | ||
Real Estate | Secured by 1-4 family | Non-accrual | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2020 | 0 | ||
2019 | 0 | ||
2018 | 0 | ||
2017 | 0 | ||
2016 | 0 | ||
2015 and prior | 218 | ||
Revolving lines of credit | 0 | ||
Revolving lines of credit converted to term loans | 0 | ||
Total | $ 218 |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Loan Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 195,047 | $ 191,522 | |
Provision for credit losses on loans | 192,935 | 47,644 | |
Charge-offs | 133,038 | 25,095 | |
Recoveries | 1,193 | 501 | |
Net charge-offs (recoveries) | $ 74,100 | 131,845 | 24,594 |
Ending balance | 264,722 | 264,722 | 214,572 |
Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 8,585 | ||
Commercial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 102,254 | 96,814 | |
Provision for credit losses on loans | 28,850 | 21,979 | |
Charge-offs | 32,940 | 9,745 | |
Recoveries | 770 | 501 | |
Net charge-offs (recoveries) | 32,170 | 9,244 | |
Ending balance | 83,194 | 83,194 | 109,549 |
Commercial | Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (15,740) | ||
Energy | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 60,253 | 34,882 | |
Provision for credit losses on loans | 117,963 | 28,430 | |
Charge-offs | 100,098 | 15,173 | |
Recoveries | 423 | 0 | |
Net charge-offs (recoveries) | 62,400 | 99,675 | 15,173 |
Ending balance | 102,695 | 102,695 | 48,139 |
Energy | Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 24,154 | ||
Mortgage finance | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,265 | 0 | |
Provision for credit losses on loans | 299 | 2,316 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs (recoveries) | 0 | 0 | |
Ending balance | 4,595 | 4,595 | 2,316 |
Mortgage finance | Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,031 | ||
Real Estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 30,275 | 52,595 | |
Provision for credit losses on loans | 45,823 | 2,150 | |
Charge-offs | 0 | 177 | |
Recoveries | 0 | 0 | |
Net charge-offs (recoveries) | 0 | 177 | |
Ending balance | 74,238 | 74,238 | 54,568 |
Real Estate | Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | (1,860) | ||
Additional Qualitative Reserve | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 0 | 7,231 | |
Provision for credit losses on loans | 0 | (7,231) | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Net charge-offs (recoveries) | 0 | 0 | |
Ending balance | $ 0 | 0 | $ 0 |
Additional Qualitative Reserve | Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $ 0 |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Loan Losses - Impact of Adoption Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses on off-balance sheet exposures | $ 12,268 | $ 10,174 | $ 10,790 | $ 12,268 | $ 10,790 | $ 8,640 | $ 8,640 | $ 9,795 | $ 11,434 |
Provision for credit losses | 100,000 | 27,000 | 196,000 | 47,000 | |||||
Net charge-offs | 74,100 | 131,845 | 24,594 | ||||||
Loans held for investment (outstanding balance) | 25,609,885 | 25,609,885 | 24,736,642 | ||||||
Criticized | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Loans held for investment (outstanding balance) | 1,000,000 | 629,100 | 1,000,000 | 629,100 | 584,100 | ||||
Leveraged Lending | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net charge-offs | 8,100 | 57,700 | 20,000 | ||||||
Energy | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Net charge-offs | 62,400 | 99,675 | $ 15,173 | ||||||
Loans held for investment (outstanding balance) | 1,146,164 | $ 1,146,164 | $ 1,425,309 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Allowance for credit losses, including off-balance sheet liabilities | 9,100 | ||||||||
Allowance for credit losses on off-balance sheet exposures | 563 | ||||||||
Provision for credit losses | $ 100,000 | $ 96,000 | $ 27,000 | ||||||
Cumulative Effect, Period Of Adoption, Adjustment | Energy | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Loans held for investment (outstanding balance) | $ 1,425,309 |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Loan Losses - Collateral Dependent (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | $ 96,276 |
Business Assets | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 11,946 |
Energy Collateral | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 84,330 |
Commercial | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 11,946 |
Commercial | Business Assets | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 11,946 |
Commercial | Energy Collateral | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 0 |
Energy | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 84,330 |
Energy | Business Assets | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | 0 |
Energy | Energy Collateral | |
Financing Receivable, Past Due [Line Items] | |
Collateral-dependent Loans | $ 84,330 |
Loans Held for Investment and_8
Loans Held for Investment and Allowance for Loan Losses - Age Analysis (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 69,194,000 | ||
Non-accrual | 174,031,000 | $ 225,400,000 | |
Current | 25,366,660,000 | ||
Total | 25,609,885,000 | $ 24,736,642,000 | |
Non-accrual With No Allowance | 94,624,000 | ||
Premium finance loans past due and still accruing | 14,800,000 | ||
Nonaccrual, interest income | 0 | 0 | |
Interest income reversed | 708,000 | ||
30 to 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 34,005,000 | ||
60 to 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 14,110,000 | ||
Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 21,079,000 | ||
Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 44,773,000 | ||
Non-accrual | 51,206,000 | 88,600,000 | |
Current | 9,068,682,000 | ||
Total | 9,164,661,000 | 9,133,444,000 | 10,230,828,000 |
Non-accrual With No Allowance | 21,146,000 | ||
Commercial | 30 to 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 19,451,000 | ||
Commercial | 60 to 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 6,383,000 | ||
Commercial | Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 18,939,000 | ||
Energy | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 295,000 | ||
Non-accrual | 103,874,000 | 125,000,000 | |
Current | 1,041,995,000 | ||
Total | 1,146,164,000 | 1,425,309,000 | |
Non-accrual With No Allowance | 54,986,000 | ||
Energy | 30 to 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 295,000 | ||
Energy | 60 to 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Energy | Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Mortgage finance | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Non-accrual | 0 | ||
Current | 8,972,626,000 | ||
Total | 8,972,626,000 | 8,169,849,000 | 8,169,849,000 |
Non-accrual With No Allowance | 0 | ||
Mortgage finance | 30 to 59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Mortgage finance | 60 to 89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Mortgage finance | Greater Than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total | 6,326,434,000 | $ 6,008,040,000 | 3,444,701,000 |
Real Estate | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 14,588,000 | ||
Non-accrual | 241,000 | 9,400,000 | |
Current | 3,983,297,000 | ||
Total | 3,998,126,000 | ||
Non-accrual With No Allowance | 0 | ||
Real Estate | Residential Homebuilder Finance | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Non-accrual | 0 | ||
Current | 1,032,974,000 | ||
Total | 1,032,974,000 | ||
Non-accrual With No Allowance | 0 | ||
Real Estate | Other Financing Receivable | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 6,591,000 | ||
Non-accrual | 18,492,000 | 881,000 | |
Current | 911,511,000 | ||
Total | 936,594,000 | ||
Non-accrual With No Allowance | 18,492,000 | ||
Real Estate | Secured by 1-4 family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,947,000 | ||
Non-accrual | 218,000 | $ 1,400,000 | |
Current | 355,575,000 | ||
Total | 358,740,000 | ||
Non-accrual With No Allowance | 0 | ||
Real Estate | 30 to 59 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 13,307,000 | ||
Real Estate | 30 to 59 Days Past Due | Residential Homebuilder Finance | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Real Estate | 30 to 59 Days Past Due | Other Financing Receivable | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 581,000 | ||
Real Estate | 30 to 59 Days Past Due | Secured by 1-4 family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 371,000 | ||
Real Estate | 60 to 89 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 31,000 | ||
Real Estate | 60 to 89 Days Past Due | Residential Homebuilder Finance | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Real Estate | 60 to 89 Days Past Due | Other Financing Receivable | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 6,010,000 | ||
Real Estate | 60 to 89 Days Past Due | Secured by 1-4 family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,686,000 | ||
Real Estate | Greater Than 90 Days | Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,250,000 | ||
Real Estate | Greater Than 90 Days | Residential Homebuilder Finance | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Real Estate | Greater Than 90 Days | Other Financing Receivable | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Real Estate | Greater Than 90 Days | Secured by 1-4 family | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 890,000 |
Loans Held for Investment and_9
Loans Held for Investment and Allowance for Loan Losses - Restructured Loans (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Nonaccrual loans that met the criteria for restructured | $ 23,700 | $ 35,100 | |
Number of Contracts | loan | 3 | 2 | |
Loans modified as restructured loans | $ 14,011 | $ 18,437 | |
Aggregate number of loans modified | loan | 482 | ||
Financing Receivable, Modifications, Outstanding Balance | $ 1,200,000 | ||
Aggregate interest deferred | $ 10,800 | ||
Extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 3 | 2 | |
Loans modified as restructured loans | $ 14,011 | $ 18,437 | |
Adjusted payment schedule | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 0 | 0 | |
Loans modified as restructured loans | $ 0 | $ 0 | |
Commercial Loan | Business Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 2 | 1 | |
Loans modified as restructured loans | $ 7,906 | $ 1,896 | |
Commercial Loan | Business Loans | Extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 2 | 1 | |
Loans modified as restructured loans | $ 7,906 | $ 1,896 | |
Commercial Loan | Business Loans | Adjusted payment schedule | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 0 | 0 | |
Loans modified as restructured loans | $ 0 | $ 0 | |
Commercial Loan | Energy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 1 | 1 | |
Loans modified as restructured loans | $ 6,105 | $ 16,541 | |
Commercial Loan | Energy | Extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 1 | 1 | |
Loans modified as restructured loans | $ 6,105 | $ 16,541 | |
Commercial Loan | Energy | Adjusted payment schedule | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | loan | 0 | 0 | |
Loans modified as restructured loans | $ 0 | $ 0 |
Certain Transfers of Financia_3
Certain Transfers of Financial Assets Certain Transfers of Financial Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Outstanding balance: | |||
Beginning balance | $ 2,568,362 | $ 1,949,785 | |
Loans purchased and originated | 4,931,981 | 4,172,519 | |
Payments and loans sold | (7,052,942) | (5,071,502) | |
Ending balance | 447,401 | 1,050,802 | |
Fair value adjustment: | |||
Fair value over (under) outstanding balance | 8,772 | 19,689 | |
Increase/(decrease) to fair value | (1,592) | (12,905) | |
Fair value over (under) outstanding balance | 7,180 | 6,784 | |
Loans held for sale | 454,581 | 1,057,586 | $ 2,577,134 |
Small Business Administration Loans [Member] | |||
Fair value adjustment: | |||
Fair value over (under) outstanding balance | $ 5,800 | 299 | |
Fair value over (under) outstanding balance | $ 1,100 |
Certain Transfers of Financia_4
Certain Transfers of Financial Assets (Details 1) - USD ($) | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loss Contingency Accrual | $ 2,500,000 | $ 3,600,000 | ||
Loans held for sale | 447,401,000 | $ 1,050,802,000 | 2,568,362,000 | $ 1,949,785,000 |
Total Past Due | 69,194,000 | |||
Principal amount outstanding of loans in servicing portfolio | 10,200,000,000 | 6,700,000,000 | ||
Escrow deposits related to servicing portfolio | 128,000,000 | 63,700,000 | ||
Losses due to repurchase indemnification and make-whole obligations | 4,500,000 | 1,000,000 | ||
Greater Than 90 Days | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | 10,200,000 | 8,200,000 | ||
Total Past Due | 21,079,000 | |||
Mortgage servicing rights | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Impairment charges | 20,800,000 | $ 5,800,000 | ||
Government guarantees | Greater Than 90 Days | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | 4,600,000 | 6,000,000 | ||
Government guarantees | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Greater Than 90 Days | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total Past Due | 5,200,000 | 1,900,000 | ||
Non-accrual | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | $ 0 | $ 0 |
Certain Transfers of Financia_5
Certain Transfers of Financial Assets (Details 2) - Mortgage Servicing Rights - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance, beginning of year | $ 70,707 | $ 42,474 |
Capitalized servicing rights | 45,397 | 14,806 |
Amortization | (14,032) | (3,723) |
Sales | 0 | 0 |
Balance, end of period | 102,072 | 53,557 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Sales and Disposals [Abstract] | ||
Valuation allowance, beginning balance | 5,803 | 0 |
Increase in valuation allowance | 20,818 | 5,772 |
Valuation allowance, ending balance | 26,621 | 5,772 |
MSRs, net | 75,451 | 47,785 |
Fair value | $ 75,451 | $ 47,845 |
Certain Transfers of Financia_6
Certain Transfers of Financial Assets (Details 3) - Mortgage Servicing Rights | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Average discount rates (percent) | 9.18% | 9.06% |
Expected prepayment speeds (percent) | 17.15% | 13.11% |
Weighted-average life, in years | 4 years 8 months 12 days | 5 years 9 months 18 days |
Certain Transfers of Financia_7
Certain Transfers of Financial Assets Certain Transfers of Financial Assets (Details 4) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Transfers and Servicing [Abstract] | ||
50 bp adverse change in prepayment speed | $ (6,133) | $ (10,768) |
100 bp adverse change in prepayment speed | $ (6,954) | $ (17,965) |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Beginning balance of allowance for off-balance sheet credit losses | $ 10,174 | $ 9,795 | $ 8,640 | $ 11,434 | |
Provision for off-balance sheet credit losses | 2,094 | 995 | 3,065 | (644) | |
Ending balance of allowance for off-balance sheet credit losses | 12,268 | $ 10,790 | 12,268 | $ 10,790 | |
Commitments to extend credit | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Off-balance sheet liability | 8,074,723 | 8,074,723 | $ 8,066,655 | ||
Standby letters of credit | |||||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||||
Off-balance sheet liability | $ 252,246 | $ 252,246 | $ 261,405 |
Regulatory Restrictions (Detail
Regulatory Restrictions (Details) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019 | Dec. 31, 2009USD ($) | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Assets | $ 36,613,127 | $ 32,548,069 | $ 15,000,000 | |
Mortgage finance(1) | 8,972,626 | 8,169,849 | ||
Mortgage Finance, Average Balance | 8,700,000 | |||
Common Equity Tier 1 [Abstract] | ||||
CET1, actual amount | 2,588,325 | 2,653,999 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets), actual amount | 3,383,499 | 3,398,345 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets), actual amount | 2,849,387 | 2,912,529 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets), actual amount | $ 2,849,387 | $ 2,912,529 | ||
Banking Regulation, Risk-Based Information [Abstract] | ||||
CET1, actual ratio | 8.88% | 8.88% | ||
Total capital (to risk weighted assets), actual ratio | 0.1160 | 0.1137 | ||
Tier 1 capital (to risk-weighted assets), actual ratio | 0.0977 | 0.0975 | ||
Tier 1 capital (to average assets), actual ratio | 0.0752 | 0.0842 | ||
Bank | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1, actual amount | $ 2,619,361 | $ 2,676,513 | ||
CET1 to be well capitalized under prompt corrective action provisions, amount | 1,891,659 | 1,941,522 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets), actual amount | 3,255,770 | 3,262,144 | ||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, amount | 2,910,244 | 2,986,957 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets), actual amount | 2,780,423 | 2,835,043 | ||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, amount | 2,328,196 | 2,389,565 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets), actual amount | 2,780,423 | 2,835,043 | ||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, amount | $ 1,895,028 | $ 1,728,988 | ||
Banking Regulation, Risk-Based Information [Abstract] | ||||
CET1, actual ratio | 9.00% | 8.96% | ||
CET1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% | ||
Total capital (to risk weighted assets), actual ratio | 0.1119 | 0.1092 | ||
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 | ||
Tier 1 capital (to risk-weighted assets), actual ratio | 0.0955 | 0.0949 | ||
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 | ||
Tier 1 capital (to average assets), actual ratio | 0.0734 | 0.0820 | ||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 | ||
Basel III, Phased-In | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1 for capital adequacy purposes, amount | $ 2,040,935 | $ 2,091,591 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 3,061,403 | 3,137,926 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,478,278 | 2,540,226 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,516,474 | $ 1,383,640 | ||
Banking Regulation, Risk-Based Information [Abstract] | ||||
CET1 for capital adequacy purposes, ratio | 7.00% | 7.00% | ||
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 0.1050 | 0.1050 | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 0.0850 | 0.0850 | ||
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 0.0400 | 0.0400 | ||
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, ratio | 0.025 | |||
Basel III, Phased-In | Bank | ||||
Common Equity Tier 1 [Abstract] | ||||
CET1 for capital adequacy purposes, amount | $ 2,037,171 | $ 2,090,870 | ||
Total capital (to risk-weighted assets): | ||||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 3,055,757 | 3,136,305 | ||
Tier 1 capital (to risk-weighted assets): | ||||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,473,708 | 2,538,913 | ||
Tier 1 capital (to average assets): | ||||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,516,023 | $ 1,383,190 | ||
Banking Regulation, Risk-Based Information [Abstract] | ||||
CET1 for capital adequacy purposes, ratio | 7.00% | 7.00% | ||
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 0.1050 | 0.1050 | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 0.0850 | 0.0850 | ||
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 3,660 | $ 4,457 | $ 7,029 | $ 8,945 |
Unrecognized compensation expense related to unvested stock-settled awards | 31,132 | $ 31,132 | ||
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 3 years | |||
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 0 | 0 | $ 0 | 6 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 3,313 | 3,110 | 6,532 | 5,517 |
Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 9 | 9 | 17 | 19 |
Cash-settled performance units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 338 | $ 1,338 | $ 480 | $ 3,403 |
Long-Term Incentive Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized under the plan | 2,550 | 2,550 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | $ 206,832 | $ 214,257 |
Investment securities | 206,832 | 214,257 |
Loans held for sale | 454,600 | 2,571,300 |
Tax-exempt asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 191,417 | 197,027 |
Credit risk transfer securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 10,953 | 11,964 |
Fair value measurements, recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 21,462 | 18,484 |
Fair value measurements, recurring basis | Level 1 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, recurring basis | Level 1 | Tax-exempt asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, recurring basis | Level 1 | Credit risk transfer securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, recurring basis | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 20,862 | 18,484 |
Fair value measurements, recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 448,422 | 2,564,281 |
Derivative liabilities | 51,310 | |
Non-qualified deferred compensation plan liabilities | 0 | 0 |
Fair value measurements, recurring basis | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 4,462 | 5,266 |
Fair value measurements, recurring basis | Level 2 | Tax-exempt asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, recurring basis | Level 2 | Credit risk transfer securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, recurring basis | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 7,275 | 7,130 |
Fair value measurements, recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 6,159 | 7,043 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Non-qualified deferred compensation plan liabilities | 0 | 0 |
Fair value measurements, recurring basis | Level 3 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, recurring basis | Level 3 | Tax-exempt asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 191,417 | 197,027 |
Fair value measurements, recurring basis | Level 3 | Credit risk transfer securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 10,953 | 11,964 |
Fair value measurements, recurring basis | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities | 0 | 0 |
Fair value measurements, nonrecurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Fair value measurements, nonrecurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Fair value measurements, nonrecurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 72,629 | 109,585 |
Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 48,684 | |
Derivative liabilities | 51,310 | |
Not Designated as Hedging Instrument [Member] | Fair value measurements, recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 143,050 | $ 48,684 |
Derivative liabilities | $ 126,542 |
Fair Value Disclosures (Detai_2
Fair Value Disclosures (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Tax-exempt asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | $ 191,474 | $ 191,844 | $ 197,027 | $ 95,804 |
Purchases / Additions | 8,470 | 0 | 8,470 | 92,010 |
Sales / Reductions | (132) | (138) | (4,485) | (138) |
Realized | 0 | 0 | 0 | 0 |
Unrealized | (8,395) | 9,633 | (9,595) | 13,663 |
Balance at End of Period | 191,417 | 201,339 | 191,417 | 201,339 |
Credit risk transfer securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 8,015 | 10,637 | 11,964 | 0 |
Purchases / Additions | 0 | 0 | 0 | 15,044 |
Sales / Reductions | 0 | 0 | 0 | 0 |
Realized | 0 | 0 | 0 | (331) |
Unrealized | 2,938 | 316 | (1,011) | (3,760) |
Balance at End of Period | 10,953 | 10,953 | 10,953 | 10,953 |
Loans Held For Sale | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at Beginning of Period | 6,694 | 13,046 | 7,043 | 16,415 |
Purchases / Additions | 107 | 0 | 320 | 0 |
Sales / Reductions | (780) | (2,532) | (1,464) | (6,410) |
Realized | 88 | 132 | 116 | 348 |
Unrealized | 50 | 284 | 144 | 577 |
Balance at End of Period | $ 6,159 | $ 10,930 | $ 6,159 | $ 10,930 |
Fair Value Disclosures (Detai_3
Fair Value Disclosures (Details 2) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Impaired loans | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Asset measured on nonrecurring basis, reported fair value | $ 72.6 | $ 109.6 | |
Asset measured on nonrecurring basis, carrying value | 96.3 | $ 145.4 | |
Asset measured on nonrecurring basis, specific valuation allowance | $ 23.7 | $ 35.8 | |
Measurement Input, Discount Rate | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
Loans Held-for-sale, measurement input | 0.954 | 0.941 | |
Minimum | Tax-exempt asset-backed securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, term | 6 years 6 months | ||
Minimum | Credit risk transfer securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, term | 7 years | ||
Minimum | Measurement Input, Discount Rate | Tax-exempt asset-backed securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, measurement input | 0.0352 | ||
Minimum | Measurement Input, Discount Rate | Credit risk transfer securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, measurement input | 0.0299 | ||
Maximum | Tax-exempt asset-backed securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, term | 7 years 8 months 12 days | ||
Maximum | Credit risk transfer securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, term | 11 years 1 month 6 days | ||
Maximum | Measurement Input, Discount Rate | Tax-exempt asset-backed securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, measurement input | 0.0355 | ||
Maximum | Measurement Input, Discount Rate | Credit risk transfer securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, measurement input | 0.0720 | ||
Weighted Average | Measurement Input, Discount Rate | Tax-exempt asset-backed securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, measurement input | 0.0354 | 0.0299 | |
AFS, term | 7 years 1 month 6 days | 7 years | |
Weighted Average | Measurement Input, Discount Rate | Credit risk transfer securities | |||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | |||
AFS, measurement input | 0.0439 | 0.0454 | |
AFS, term | 8 years 4 months 24 days | 9 years 3 months 18 days |
Fair Value Disclosures (Detai_4
Fair Value Disclosures (Details 3) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | $ 206,832 | $ 214,257 |
Loans held for sale | 454,600 | 2,571,300 |
Subordinated notes | 282,309 | 282,129 |
Level 1 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 20,862 | 18,484 |
Level 1 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 9,716,584 | 4,425,583 |
Investment securities | 20,862 | 18,484 |
Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 11,737 | 12,396 |
Loans held for sale | 448,422 | 2,570,091 |
Derivative assets | 48,684 | |
Federal funds purchased | 189,030 | 132,270 |
Customer repurchase agreements | 6,760 | 9,496 |
Other borrowings | 2,700,000 | 2,400,000 |
Subordinated notes | 282,309 | 282,129 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Derivative liabilities | 51,310 | |
Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 11,737 | 12,396 |
Loans held for sale | 448,422 | 2,570,091 |
Derivative assets | 143,050 | 48,684 |
Federal funds purchased | 189,030 | 132,270 |
Customer repurchase agreements | 6,760 | 9,496 |
Other borrowings | 2,700,000 | 2,400,000 |
Subordinated notes | 291,821 | 292,302 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Derivative liabilities | 126,542 | 51,310 |
Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 202,370 | 208,991 |
Loans held for sale | 6,159 | 7,043 |
Loans held for investment, net | 25,260,107 | 24,451,215 |
Deposits | 30,187,695 | 26,478,593 |
Level 3 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 202,370 | 208,991 |
Loans held for sale | 6,159 | 7,043 |
Loans held for investment, net | 25,249,741 | 24,478,586 |
Deposits | $ 30,192,842 | $ 26,486,090 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details 1) - Non-hedging - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Estimated fair value, asset derivative | $ 143,050 | $ 48,866 |
Estimated fair value, liability derivative | 126,542 | 51,492 |
Offsetting derivative liabilities | 0 | (182) |
Offsetting derivative assets | 0 | (182) |
Net asset derivatives included in the consolidated balance sheets | 48,684 | |
Net liability derivatives included in the consolidated balance sheets | 51,310 | |
Interest rate swap futures | ||
Derivative [Line Items] | ||
Notional amount | 255,000 | 0 |
Estimated fair value, asset derivative | 2,460 | 0 |
Estimated fair value, liability derivative | 3 | 0 |
Forward sale commitments | ||
Derivative [Line Items] | ||
Notional amount | 153,000 | 0 |
Estimated fair value, asset derivative | 1,067 | 0 |
Estimated fair value, liability derivative | 0 | 0 |
Interest rate contract | Loan purchase commitments | ||
Derivative [Line Items] | ||
Notional amount | 1,215,599 | 214,012 |
Estimated fair value, asset derivative | 20,580 | 1,965 |
Estimated fair value, liability derivative | 3 | 4 |
Interest rate contract | Loan purchase commitments | ||
Derivative [Line Items] | ||
Notional amount | 1,311,974 | 2,654,653 |
Estimated fair value, asset derivative | 0 | 0 |
Estimated fair value, liability derivative | 7,593 | 4,587 |
Financial institution counterparties | Commercial loan/lease | Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 1,947,806 | 1,548,234 |
Estimated fair value, asset derivative | 0 | 182 |
Estimated fair value, liability derivative | 118,663 | 46,518 |
Financial institution counterparties | Commercial loan/lease | Interest rate cap | ||
Derivative [Line Items] | ||
Notional amount | 657,109 | 639,163 |
Estimated fair value, asset derivative | 42 | 32 |
Estimated fair value, liability derivative | 0 | 0 |
Financial institution counterparties | Commercial loan/lease | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount | 2,228 | 2,219 |
Estimated fair value, asset derivative | 0 | 169 |
Estimated fair value, liability derivative | 238 | 0 |
Customer counterparties | Commercial loan/lease | Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 1,947,806 | 1,548,234 |
Estimated fair value, asset derivative | 118,663 | 46,518 |
Estimated fair value, liability derivative | 0 | 182 |
Customer counterparties | Commercial loan/lease | Interest rate cap | ||
Derivative [Line Items] | ||
Notional amount | 657,109 | 639,163 |
Estimated fair value, asset derivative | 0 | 0 |
Estimated fair value, liability derivative | 42 | 32 |
Customer counterparties | Commercial loan/lease | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount | 2,228 | 2,219 |
Estimated fair value, asset derivative | 238 | 0 |
Estimated fair value, liability derivative | $ 0 | $ 169 |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments (Details 2) - Non-hedging - Commercial loan/lease - Interest rate swap | Jun. 30, 2020 | Dec. 31, 2019 |
Interest rate received | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 3.23% | 3.94% |
Interest rate paid | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 1.44% | 3.26% |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments (Details 3) $ in Millions | Jun. 30, 2020USD ($)instrument | Dec. 31, 2019USD ($)instrument |
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 134.5 | $ 56.6 |
Risk participation agreement - participant bank | ||
Derivative [Line Items] | ||
Instruments held | instrument | 8 | 12 |
Maximum exposure | $ 7 | $ 3.6 |
Notional amount | $ 110.7 | $ 146.7 |
Risk participation agreement - lead bank | ||
Derivative [Line Items] | ||
Instruments held | instrument | 16 | 12 |
Notional amount | $ 166.9 | $ 145.9 |
Non-hedging | Commercial loan/lease | ||
Derivative [Line Items] | ||
Credit risk exposure, net of collateral pledged, relating to derivatives | $ 143.1 | $ 48.7 |
Non-hedging | Interest rate cap | Commercial loan/lease | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 3.38% | 3.29% |
Interest-bearing deposits | ||
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 128.9 | $ 54.3 |
Other assets | ||
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 5.6 | $ 2.3 |