Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-35522 | ||
Entity Registrant Name | BANC OF CALIFORNIA, INC. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 04-3639825 | ||
Entity Address, Address Line One | 3 MacArthur Place, | ||
Entity Address, City or Town | Santa Ana, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92707 | ||
City Area Code | 855 | ||
Local Phone Number | 361-2262 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 634.2 | ||
Documents Incorporated by Reference | PART III of Form 10-K—Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held in 2020 . | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001169770 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | BANC | ||
Security Exchange Name | NYSE | ||
Entity Common Stock, Shares Outstanding | 50,419,439 | ||
Series D 7.375% non-cumulative perpetual | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing a 1/40th Interest in a share of 7.375% Non-Cumulative Perpetual Preferred Stock, Series D | ||
Trading Symbol | BANC PRD | ||
Security Exchange Name | NYSE | ||
Series E 7.00% non-cumulative perpetual | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Depositary Shares each representing a 1/40th Interest in a share of 7.00% Non-Cumulative Perpetual Preferred Stock, Series E | ||
Trading Symbol | BANC PRE | ||
Security Exchange Name | NYSE | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 477,321 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 28,890 | $ 21,875 |
Interest-earning deposits in financial institutions | 344,582 | 369,717 |
Total cash and cash equivalents | 373,472 | 391,592 |
Securities available-for-sale, carried at fair value | 912,580 | 1,992,500 |
Loans held-for-sale, carried at fair value | 22,642 | 7,690 |
Loans held-for-sale, carried at lower of cost or fair value | 0 | 426 |
Loans receivable | 5,951,885 | 7,700,873 |
Allowance for loan losses | (57,649) | (62,192) |
Loans receivable, net | 5,894,236 | 7,638,681 |
Federal Home Loan Bank and other bank stock, at cost | 59,420 | 68,094 |
Premises and equipment, net | 128,021 | 129,394 |
Bank owned life insurance | 109,819 | 107,027 |
Operating lease right-of-use assets | 22,540 | |
Goodwill | 37,144 | 37,144 |
Investments in alternative energy partnerships, net | 29,300 | 28,988 |
Deferred income taxes, net | 44,906 | 49,404 |
Income tax receivable | 4,233 | 2,695 |
Other intangible assets, net | 4,151 | 6,346 |
Other assets | 185,946 | 150,596 |
Assets of discontinued operations | 0 | 19,490 |
Total Assets | 7,828,410 | 10,630,067 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Noninterest-bearing deposits | 1,088,516 | 1,023,360 |
Interest-bearing deposits | 4,338,651 | 6,893,284 |
Total deposits | 5,427,167 | 7,916,644 |
Federal Home Loan Bank advances | 1,195,000 | 1,520,000 |
Long-term debt, net | 173,421 | 173,174 |
Reserve for loss on repurchased loans | 6,201 | 2,506 |
Operating lease liabilities | 23,692 | |
Accrued expenses and other liabilities | 95,684 | 72,209 |
Total liabilities | 6,921,165 | 9,684,533 |
Commitments and contingent liabilities (Note 23) | 0 | 0 |
Preferred stock | 189,825 | 231,128 |
Additional paid-in capital | 629,848 | 625,834 |
Retained earnings | 127,733 | 140,952 |
Treasury stock, at cost (1,583,380 shares at December 31, 2019 and December 31, 2018) | (28,786) | (28,786) |
Accumulated other comprehensive loss, net | (11,900) | (24,117) |
Total stockholders’ equity | 907,245 | 945,534 |
Total liabilities and stockholders’ equity | 7,828,410 | 10,630,067 |
Class A Common Stock | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Common stock | 520 | 518 |
Class B Common Stock | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Common stock | $ 5 | $ 5 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Common Stock: | ||
Treasury stock (in shares) | 1,583,380 | 1,583,380 |
Class A Common Stock | ||
Common Stock: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in dollars per share) | 446,863,844 | 446,863,844 |
Common stock, shares issued (in shares) | 51,997,061 | 51,755,398 |
Common stock, shares outstanding (in shares) | 50,413,681 | 50,172,018 |
Class B Common Stock | ||
Common Stock: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in dollars per share) | 3,136,156 | 3,136,156 |
Common stock, shares issued (in shares) | 477,321 | 477,321 |
Common stock, shares outstanding (in shares) | 477,321 | 477,321 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income | |||
Loans, including fees | $ 333,934 | $ 329,272 | $ 281,071 |
Securities | 48,134 | 83,567 | 99,742 |
Other interest-earning assets | 9,043 | 9,957 | 8,377 |
Total interest and dividend income | 391,111 | 422,796 | 389,190 |
Interest expense | |||
Deposits | 101,099 | 91,236 | 60,414 |
Federal Home Loan Bank advances | 32,285 | 34,995 | 12,951 |
Securities sold under repurchase agreements | 62 | 1,033 | 880 |
Long-term debt and other interest-bearing liabilities | 9,502 | 9,456 | 10,755 |
Total interest expense | 142,948 | 136,720 | 85,000 |
Net interest income | 248,163 | 286,076 | 304,190 |
Provision for loan losses | 36,387 | 30,215 | 13,699 |
Net interest income after provision for loan losses | 211,776 | 255,861 | 290,491 |
Noninterest income | |||
Customer service fees | 5,982 | 6,315 | 6,492 |
Loan servicing income | 679 | 3,720 | 1,025 |
Income from bank owned life insurance | 2,292 | 2,176 | 2,339 |
Impairment loss on investment securities | (731) | (3,252) | 0 |
Net (loss) gain on sale of securities available-for-sale | (4,852) | 5,532 | 14,768 |
Net gain on sale of loans | 7,872 | 1,932 | 11,942 |
Net loss on sale of mortgage servicing rights | 0 | (2,260) | 0 |
Other income | 874 | 9,752 | 8,104 |
Total noninterest income | 12,116 | 23,915 | 44,670 |
Noninterest expense | |||
Salaries and employee benefits | 105,915 | 109,974 | 129,153 |
Occupancy and equipment | 31,308 | 31,847 | 38,391 |
Professional fees | 12,212 | 33,652 | 42,417 |
Outside service fees | 1,697 | 4,667 | 5,840 |
Data processing | 6,420 | 6,951 | 7,888 |
Advertising | 8,422 | 12,664 | 5,313 |
Regulatory assessments | 7,711 | 7,678 | 8,105 |
Loss on investments in alternative energy partnerships, net | 1,694 | 5,044 | 30,786 |
Reversal of provision for loan repurchases | (660) | (2,488) | (1,812) |
Amortization of intangible assets | 2,195 | 3,007 | 3,928 |
Impairment on intangible assets | 0 | 0 | 336 |
Restructuring expense | 4,263 | 4,431 | 5,326 |
All other expense | 14,737 | 15,358 | 32,597 |
Total noninterest expense | 195,914 | 232,785 | 308,268 |
Income from continuing operations before income taxes | 27,978 | 46,991 | 26,893 |
Income tax expense (benefit) | 4,219 | 4,844 | (26,581) |
Income from continuing operations | 23,759 | 42,147 | 53,474 |
Income from discontinued operations before income taxes (including net gain on disposal of $0, $1,439 and $13,796 for the year ended December 31, 2019, 2018 and 2017) | 0 | 4,596 | 7,164 |
Income tax expense | 0 | 1,271 | 2,929 |
Income from discontinued operations | 0 | 3,325 | 4,235 |
Net income | 23,759 | 45,472 | 57,709 |
Preferred stock dividends | 15,559 | 19,504 | 20,451 |
Less: Income allocated to participating securities | 0 | 0 | 311 |
Less participating securities dividends | 483 | 811 | 811 |
Impact of preferred stock redemption | 5,093 | 2,307 | 0 |
Net income available to common stockholders | $ 2,624 | $ 22,850 | $ 36,136 |
Basic earnings per common share | |||
Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.38 | $ 0.64 |
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 |
Net income (in dollars per share) | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||
Income from continuing operations (in dollars per share) | 0.05 | 0.38 | 0.63 |
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 |
Net income (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.71 |
Class A Common Stock | |||
Noninterest expense | |||
Income from continuing operations | $ 23,535 | $ 41,732 | $ 53,136 |
Income from discontinued operations | 0 | 3,292 | 4,208 |
Preferred stock dividends | 15,412 | 19,312 | 20,322 |
Less: Income allocated to participating securities | 0 | 0 | 309 |
Less participating securities dividends | 478 | 803 | 806 |
Impact of preferred stock redemption | $ 5,045 | $ 2,284 | $ 0 |
Basic earnings per common share | |||
Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.38 | $ 0.64 |
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 |
Net income (in dollars per share) | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||
Income from continuing operations (in dollars per share) | 0.05 | 0.38 | 0.63 |
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 |
Net income (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.71 |
Class B Common Stock | |||
Noninterest expense | |||
Income from continuing operations | $ 224 | $ 415 | $ 338 |
Income from discontinued operations | 0 | 33 | 27 |
Preferred stock dividends | 147 | 192 | 129 |
Less: Income allocated to participating securities | 0 | 0 | 2 |
Less participating securities dividends | 5 | 8 | 5 |
Impact of preferred stock redemption | $ 48 | $ 23 | $ 0 |
Basic earnings per common share | |||
Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.38 | $ 0.64 |
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 |
Net income (in dollars per share) | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||
Income from continuing operations (in dollars per share) | 0.05 | 0.38 | 0.64 |
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 |
Net income (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.72 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net gain on disposal | $ 0 | $ 1,439 | $ 13,796 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 23,759 | $ 45,472 | $ 57,709 |
Unrealized gain (loss) on securities available-for-sale: | |||
Unrealized gain (loss) arising during the period | 8,285 | (28,230) | 10,068 |
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale | 0 | 0 | 12,845 |
Reclassification adjustment for loss (gain) included in net income | 3,426 | (3,906) | (8,644) |
Reclassification adjustment for OTTI loss included in net income | 506 | 2,296 | 0 |
Total other comprehensive income (loss) | 12,217 | (29,840) | 14,269 |
Comprehensive income | $ 35,976 | $ 15,632 | $ 71,978 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2016 | $ 980,239 | $ 269,071 | $ 537 | $ 2 | $ 614,226 | $ 134,515 | $ (29,070) | $ (9,042) |
Comprehensive income (loss): | ||||||||
Net income | 57,709 | 57,709 | ||||||
Other comprehensive income (loss), net | 14,269 | 14,269 | ||||||
Issuance of common stock | 0 | 4 | 3 | (7) | ||||
Cancellation of common stock for termination of Stock Employee Compensation Trust | 0 | (25) | 25 | |||||
Exercise of stock options | 2,043 | 3 | 1,756 | 284 | ||||
Stock-based compensation expense | 12,134 | 12,134 | ||||||
Restricted stock surrendered due to employee tax liability | (6,824) | (2) | (6,822) | |||||
Shares purchased under Dividend Reinvestment Plan | (58) | 123 | (181) | |||||
Stock appreciation right dividend equivalents | (811) | (811) | ||||||
Dividends declared | (25,942) | (25,942) | ||||||
Preferred stock dividends | (20,451) | (20,451) | ||||||
Ending Balance at Dec. 31, 2017 | 1,012,308 | 269,071 | 517 | 5 | 621,435 | 144,839 | (28,786) | 5,227 |
Comprehensive income (loss): | ||||||||
Net income | 45,472 | 45,472 | ||||||
Other comprehensive income (loss), net | (29,840) | (29,840) | ||||||
Issuance of common stock | 0 | 2 | 0 | (2) | ||||
Redemption of preferred stock | (40,250) | (37,943) | (2,307) | |||||
Stock-based compensation expense | 6,565 | 6,565 | ||||||
Restricted stock surrendered due to employee tax liability | (2,366) | (1) | (2,365) | |||||
Shares purchased under Dividend Reinvestment Plan | (53) | 201 | (254) | |||||
Stock appreciation right dividend equivalents | (811) | (811) | ||||||
Dividends declared | (25,987) | (25,987) | ||||||
Preferred stock dividends | (19,504) | (19,504) | ||||||
Ending Balance at Dec. 31, 2018 | 945,534 | 231,128 | 518 | 5 | 625,834 | 140,952 | (28,786) | (24,117) |
Comprehensive income (loss): | ||||||||
Net income | 23,759 | 23,759 | ||||||
Other comprehensive income (loss), net | 12,217 | 12,217 | ||||||
Issuance of common stock | 0 | 2 | 0 | (2) | ||||
Redemption of preferred stock | (46,396) | (41,303) | (5,093) | |||||
Stock-based compensation expense | 5,039 | 5,039 | ||||||
Restricted stock surrendered due to employee tax liability | (1,023) | 0 | (1,023) | |||||
Shares purchased under Dividend Reinvestment Plan | (99) | 0 | (99) | |||||
Stock appreciation right dividend equivalents | (483) | (483) | ||||||
Dividends declared | (15,744) | (15,744) | ||||||
Preferred stock dividends | (15,559) | (15,559) | ||||||
Ending Balance at Dec. 31, 2019 | $ 907,245 | $ 189,825 | $ 520 | $ 5 | $ 629,848 | $ 127,733 | $ (28,786) | $ (11,900) |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Apr. 30, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends declared, per common share (in usd per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.13 | $ 0.31 | $ 0.52 | $ 0.52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows from operating activities: | ||||
Net income | $ 23,759 | $ 45,472 | $ 57,709 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Provision for loan losses | 36,387 | 30,215 | 13,699 | |
(Reversal of) provision for unfunded loan commitments | (558) | 906 | 1,331 | |
Reversal of provision for loan repurchases | (660) | (2,488) | (1,812) | |
Depreciation and amortization on premises, equipment and operating lease right-of-use assets | 16,427 | 10,878 | 12,425 | |
Amortization of intangible assets | 2,195 | 3,007 | 3,928 | |
Amortization of debt issuance cost | 247 | 233 | 247 | |
Net amortization (accretion) of premium and discount on securities | 783 | 1,213 | (2,432) | |
Impairment loss on investment securities | 731 | 3,252 | 0 | |
Net amortization (accretion) of deferred loans cost and fees | 916 | (612) | (1,318) | |
Accretion of discounts on purchased loans | (365) | (637) | (4,808) | |
Deferred income tax benefit | (622) | (5,911) | (30,372) | |
Bank owned life insurance income | (2,292) | (2,176) | (2,339) | |
Share-based compensation expense | 5,039 | 6,565 | 12,134 | |
Loss on interest rate swaps | 8,964 | 0 | 0 | |
Loss on investments in alternative energy partnerships, net | 5,214 | 5,044 | 30,786 | |
Impairment on intangible assets | 0 | 0 | 336 | |
Impairment on capitalized software projects | 1,481 | 1,975 | 1,957 | |
Net revenue on mortgage banking activities | 0 | (428) | (42,889) | |
Net gain on sale of loans | (7,872) | (1,932) | (11,942) | |
Net loss (gain) on sale of securities available for sale | 4,852 | (5,532) | (14,768) | |
Loss from change of fair value on mortgage servicing rights | 0 | 1,533 | 17,051 | |
Loss (gain) on sale or disposal of property and equipment | 67 | (1,741) | 1,070 | |
Loss on sale of mortgage servicing rights | 0 | 2,260 | 0 | |
Net gain on disposal of discontinued operations | 0 | (1,439) | (13,796) | |
Repurchase of mortgage loans | (1,929) | (12,666) | (31,913) | |
Originations of loans held-for-sale from mortgage banking | 0 | 0 | (1,533,889) | |
Originations of other loans held-for-sale | 0 | (5,839) | (97,156) | |
Proceeds from sales of and principal collected on loans held-for-sale from mortgage | [1] | 6,210 | 25,216 | 1,961,275 |
Proceeds from sales of and principal collected on other loans held-for-sale | 426 | 7,037 | 302,695 | |
Change in accrued interest receivable and other assets | (15,447) | 24,860 | 2,604 | |
Change in accrued interest payable and other liabilities | [1] | (3,698) | (5,262) | (66,802) |
Net cash provided by operating activities | 80,255 | 123,003 | 563,011 | |
Cash flows from investing activities: | ||||
Proceeds from sales of securities available-for-sale | 1,196,498 | 417,870 | 981,481 | |
Proceeds from maturities and calls of securities available-for-sale | 53,090 | 607,601 | 518,978 | |
Proceeds from principal repayments of securities available-for-sale | 36,541 | 43,378 | 43,936 | |
Proceeds from maturities and calls of securities held-to-maturity | 0 | 0 | 143,505 | |
Purchases of securities available-for-sale | (195,258) | (521,575) | (962,390) | |
Purchases of bank owned life insurance | (500) | 0 | 0 | |
Net cash provided by disposal of discontinued operations | 0 | 0 | 56,123 | |
Loan originations and principal collections, net | 573,490 | (1,374,702) | (1,128,172) | |
Purchase of loans | 0 | (59,481) | 0 | |
Redemption of Federal Home Loan Bank stock | 82,835 | 66,710 | 29,612 | |
Purchase of Federal Home Loan Bank and other bank stocks | (74,161) | (59,150) | (37,424) | |
Proceeds from sale of loans held-for-sale/held-for-investment | 1,146,562 | 376,837 | 605,502 | |
Net change in time deposits in financial institutions | 0 | 0 | 1,000 | |
Proceeds from sale of other real estate owned | 843 | 1,795 | 3,508 | |
Proceeds from sale of mortgage servicing rights | 0 | 30,056 | 1,496 | |
Proceeds from sale of premises and equipment | 0 | 4,193 | 2,663 | |
Additions to premises and equipment | (10,478) | (9,001) | (15,323) | |
Payments of capital lease obligations | (574) | (463) | (1,434) | |
Funding of equity investment | (14,800) | (6,361) | (35,826) | |
Net decrease (increase) in investments in alternative energy partnerships | 1,219 | 12,547 | (55,377) | |
Net cash provided by (used in) investing activities | 2,795,307 | (469,746) | 151,858 | |
Cash flows from financing activities: | ||||
Net (decrease) increase in deposits | (2,489,477) | 623,741 | (1,849,247) | |
Net (decrease) increase in short-term Federal Home Loan Bank advances | (200,000) | (430,000) | 805,000 | |
Repayment of long-term Federal Home Loan Bank advances | (125,000) | (125,000) | (100,000) | |
Proceeds from long-term Federal Home Loan Bank advances | 0 | 380,000 | 500,000 | |
Net decrease in other short-term borrowings | 0 | 0 | (68,000) | |
Redemption of preferred stock | (46,396) | (40,250) | 0 | |
Payment of junior subordinated amortizing notes | 0 | 0 | (2,684) | |
Proceeds from exercise of stock options | 0 | 0 | 2,043 | |
Restricted stock surrendered due to employee tax liability | (1,023) | (2,366) | (6,824) | |
Dividend equivalents paid on stock appreciation rights | (483) | (810) | (810) | |
Dividends paid on preferred stock | (15,559) | (21,954) | (20,451) | |
Dividends paid on common stock | (15,744) | (32,725) | (25,707) | |
Net cash (used in) provided by financing activities | (2,893,682) | 350,636 | (766,680) | |
Net change in cash and cash equivalents | (18,120) | 3,893 | (51,811) | |
Cash and cash equivalents at beginning of year | 391,592 | 387,699 | 439,510 | |
Cash and cash equivalents at end of year | 373,472 | 391,592 | 387,699 | |
Supplemental cash flow information | ||||
Interest paid on deposits and borrowed funds | 151,508 | 130,793 | 81,805 | |
Income taxes paid | 2,924 | 8,324 | 11,318 | |
Income taxes refunds received | 202 | 4,532 | 14,119 | |
Supplemental disclosure of non-cash activities | ||||
Transfer from loans to other real estate owned, net | 276 | 672 | 3,086 | |
Transfer of loans held-for-investment to loans held-for-sale | 1,139,597 | 376,995 | 593,977 | |
Transfer of loans held-for-sale to loans held-for-investment | 0 | 0 | 88,591 | |
Reclassification of securities held-to-maturity to securities available-for-sale | 0 | 0 | 740,863 | |
Equipment acquired under capital leases | 76 | 82 | 1,452 | |
Reclassification of stranded tax effects to retained earnings | 0 | 496 | 0 | |
Receivable on unsettled securities sales | 0 | 0 | 5,559 | |
Operating lease right of use assets recognized | 28,664 | |||
Operating lease liabilities recognized | 30,065 | |||
Loans sold to Ginnie Mae that are subject to a repurchase option | $ 0 | $ 0 | $ 65,998 | |
[1] | We made certain immaterial reclassification adjustments within operating activities during the year ended December 31, 2017. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations : Banc of California, Inc., a Maryland corporation, was incorporated in March 2002 and serves as the holding company for its wholly owned subsidiary, Banc of California National Association (the Bank), a California-based bank. When we refer to the “parent” or the “holding company", we are referring to Banc of California, Inc., the parent company, on a stand-alone basis. When we refer to “we,” “us,” “our,” or the “Company”, we are referring to Banc of California, Inc., its consolidated subsidiaries and the Bank, collectively. We are regulated as a bank holding company by the Board of Governors of the Federal Reserve System (FRB) and the Bank is regulated by the Office of the Comptroller of the Currency (the OCC). The Bank offers a variety of financial services to meet the commercial banking and financial needs of the communities it serves, with operations conducted through 32 banking offices, serving Los Angeles, Orange, San Diego and Santa Barbara counties in California as of December 31, 2019 . Basis of Presentation: The consolidated financial statements include the accounts of the Company and all other entities in which we have a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the "Company" or "us" include our wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon U.S. generally accepted accounting principles, which we may refer to as "GAAP," and conform to predominant practices within the financial services industry. Significant accounting policies followed by the Company are presented below. Use of Estimates in the Preparation of Financial Statements: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and disclosures provided, and actual results could differ. The allowance for loan losses, reserve for loss on repurchased loans, reserve for unfunded loan commitments, realization of deferred tax assets, the valuation of goodwill and other intangible assets, hypothetical liquidation at book value (HLBV) of investments in alternative energy partnerships, fair value of assets and liabilities acquired in business combinations, and the fair value measurement of financial instruments are particularly subject to change and such change could have a material effect on the consolidated financial statements. Discontinued Operations: During the year ended December 31, 2017, we completed the sale of the Banc Home Loans division, which largely represented our previous Mortgage Banking segment. In accordance with ASC 205-20, we determined that the sale of the Banc Home Loans division and certain other mortgage banking related assets and liabilities that were sold or settled separately within one year met the criteria to be classified as a discontinued operation and the related operating results and financial condition have been presented as discontinued operations on the consolidated financial statements. See Note 2 for additional information. Unless otherwise indicated, information included in these notes to consolidated financial statements is presented on a consolidated operations basis, which includes results from both continuing and discontinued operations, for all periods presented. There were no assets, liabilities or operating income as of and for the year ended December 31, 2019 related to discontinued operations. Segment Reporting: In connection with the sale of our Banc Home Loans division, which largely represented our Mortgage Banking segment, we reassessed our reportable operating segments. Based on this internal evaluation, we determined that all three of our previously disclosed reportable segments, Commercial Banking, Mortgage Banking, and Corporate/Other, are no longer applicable. Accordingly, to better reflect how we are now managed and how information is reviewed by the chief operating decision maker, our chief executive officer, we determined that all services we offer relate to Commercial Banking. As a result, our only reportable segment is Commercial Banking. Variable Interest Entities: We hold ownership interests in certain special purpose entities. We evaluate our interest in these entities to determine whether they meet the definition of a variable interest entity (VIE) and whether we meet the criteria as their primary beneficiary and are therefore required to consolidate these entities. A primary beneficiary of a VIE is defined as, the party that has both the power to direct the activities that most significantly impact the VIE and a variable interest that could be significant to the VIE. A variable interest is a contractual, ownership or other interest that changes with changes in the fair value of the VIE’s net assets. To determine whether or not a variable interest we hold could be significant to the VIE, we consider both qualitative and quantitative factors regarding the nature, size and form of our involvement with the VIE. We analyze whether we are the primary beneficiary of a VIE on an ongoing basis. Changes in facts and circumstances occurring since the previous primary beneficiary determination are considered as part of this ongoing assessment. See Note 21 for additional information. Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, cash items in transit, cash due from the Federal Reserve Bank and other financial institutions, and federal funds sold with original maturities less than 90 days. Banking regulations require that banks maintain a percentage of their deposits as reserves in cash or on deposit with the Federal Reserve Bank (FRB). The reserve requirement at December 31, 2019 was $65.2 million . We were in compliance with our reserve requirements as of December 31, 2019 . Time Deposits in Financial Institutions: Time deposits in financial institutions have original maturities over 90 days and are carried at cost. Investment Securities: Investment securities are classified at the time of purchase as available-for-sale, held-to-maturity or trading. We had no investment securities classified as held-to-maturity or trading at December 31, 2019 and 2018 . Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value with unrealized holding gains and losses, net of taxes, and other-than-temporary impairment (OTTI), net of taxes, reported in accumulated other comprehensive income (AOCI) on the Consolidated Statements of Financial Condition. During the year ended December 31, 2017, we evaluated our securities held-to-maturity and determined that certain securities no longer adhered to our strategic focus and could be sold or reinvested to potentially improve our liquidity position or duration profile. Accordingly, we were no longer able to assert that we had the intent to hold these securities until maturity. As a result, we transferred all $740.9 million of our held-to-maturity securities to available-for-sale, which resulted in a pre-tax increase to AOCI of $22.0 million at the time of the transfer, June 30, 2017. Accreted discounts and amortized premiums are included in interest income using the level yield method, and realized gains or losses from sales of securities are calculated using the specific identification method. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic conditions warrant such an evaluation. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under ASC 320, Accounting for Certain Investments in Debt and Equity Securities. In determining OTTI under the ASC 320 model, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also considers whether the market decline was affected by macroeconomic conditions, and assesses whether we intend to sell, or it is more likely than not we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. The assessment of whether OTTI exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs the amount of the impairment recognized in earnings depends on our intent to sell the security or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (i) OTTI related to credit loss, which must be recognized in the income statement and (ii) OTTI related to other factors, which is recognized in other comprehensive income (OCI). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities the entire amount of impairment is recognized through earnings. Loans Held-For-Sale, Carried at Fair Value: Loans held-for-sale, carried at fair value, are conforming SFR mortgage loans that are originated and intended for sale in the secondary market, repurchased loans that were previously sold to Ginnie Mae and other GSEs, and loans sold to Ginnie Mae that are delinquent more than 90 days and subject to a unilateral purchase option by us. The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics. Loans Held-for-Sale, Carried at Lower of Cost or Fair Value: We record non-conforming jumbo mortgage loans held-for-sale and certain commercial loans held-for-sale at the lower of cost or fair value, on an aggregate basis. Deferred loan origination fees and costs or purchase discounts or premiums included in the carrying value of the loans are not amortized and are included in the determination of gains or losses from the sale of the related loans. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. When we change our intent to hold loans for investment, the loans are transferred to held-for-sale at the lower of cost or fair value on the transfer date and amortization of deferred fees and costs or purchase discounts or premiums is ceased. If a determination is made that a loan held-for-sale cannot be sold in the foreseeable future, it is transferred to held-for-investment at the lower of cost or fair value on the transfer date and amortization of origination fees and costs or purchase discounts or premiums are resumed. Loans: When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is our intent to hold these loans to maturity or for the foreseeable future, subject to periodic review under our management evaluation processes, including asset/liability management. Loans, excluding purchase credit impaired (PCI) loans, that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are recorded at the principal balance outstanding, net of charge-offs, unamortized purchase premiums and discounts, and deferred loan fees and costs. Amortization of deferred loan origination fees and costs or purchase premiums and discounts are recognized in interest income as an adjustment to yield over the terms of loans using the effective interest method. Deferred loan origination fees and costs on revolving lines of credit are amortized using the straight line method. Interest on loans is credited to interest income as earned based on the interest rate applied to principal amounts outstanding. Interest income is accrued on the unpaid principal balance and is discontinued when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes doubtful, regardless of the length of past due status. Generally, loans are placed on non-accrual status when scheduled payments become past due for 90 days or more. When accrual of interest is discontinued, any unpaid accrued interest receivable is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A charge-off is generally recorded at 180 days past due for SFR mortgage loans if the unpaid principal balance exceeds the fair value of the collateral less costs to sell. Commercial and industrial and commercial real estate loans financings are subject to a detailed review when 90 days past due to determine accrual status, or when payment is uncertain and a specific consideration is made to put a loan on non-accrual status. A charge-off for commercial and industrial and commercial real estate loans is recorded when a loss is confirmed. Consumer loans, other than those secured by real estate, are typically charged off no later than 120 days past due. Allowance for Loan Losses (ALL): The ALL is a reserve established through a provision for loan losses, and represents management’s best estimate of probable losses that may be incurred within the existing loan portfolio as of the date of the consolidated statements of financial condition. Prior to 2018, we had lease financing receivables; however, since there are no lease financing receivables during the two most recent years, we refer to the allowance for loan losses as the allowance for loan losses. Confirmed losses are charged against the ALL. Subsequent recoveries, if any, are credited to the ALL. We perform an analysis of the adequacy of the ALL at least quarterly. Management estimates the required ALL balance using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. The ALL consists of three elements; (i) a specific allowance established for probable losses on individually identified impaired loans, (ii) a quantitative allowance calculated using historical loss experience adjusted as necessary to reflect current conditions; and (iii) a qualitative allowance to capture economic, underwriting, process, credit, and other factors and trends that are not adequately reflected in the historical loss rates. A loan is deemed impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. We measure expected credit losses on all impaired loans individually under the guidance of ASC 310, Receivables , primarily through the evaluation of collateral values and estimated cash flows expected to be collected. Cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income. Loans for which the terms have been modified by granting a concession that normally would not be provided and where the borrower is experiencing financial difficulties are considered TDRs and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The impairment amount on a collateral dependent loan is generally charged-off to the ALL, and the impairment amount on a loan that is not collateral dependent is set-up as a specific reserve. TDRs are also measured at the present value of estimated future cash flows using the loan’s effective rate at inception or at the fair value of collateral, less costs to sell, if repayment is expected solely from the collateral. For TDRs that subsequently default, we determine the amount of reserve in accordance with the accounting policy for the ALL. At December 31, 2019 , the following loan portfolio segments have been identified: • Commercial and industrial (general commercial and industrial, warehouse lending, and indirect/direct leveraged lending) • Commercial real estate • Multifamily • SBA • Construction • SFR - 1st deeds of trust (general SFR mortgage and other) • Other consumer (HELOC and other) We categorize loans into risk categories based on relevant information about the ability of borrowers and lessees (also referred to as borrowers) to service their obligations such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. Loans secured by multifamily and commercial real estate properties generally involve a greater degree of credit risk than SFR mortgage loans. Because payments on loans secured by multifamily and commercial real estate properties are often dependent on the successful operation or management of the properties, repayment of these loans may be subject to adverse conditions in the real estate market or the economy. Commercial and industrial loans are also considered to have a greater degree of credit risk than SFR mortgage loans due to the fact commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial and industrial loans may be substantially dependent on the success of the business itself (which, in turn, is often dependent in part upon general economic conditions). SBA loans are similar to commercial and industrial loans, but have additional credit enhancement provided by the U.S. Small Business Administration, for up to 85% of the loan amount for loans up to $150 thousand and 75% of the loan amount for loans of more than $150 thousand. As a result, the availability of funds for the repayment of lease financing may be substantially dependent on the success of the business itself (which, in turn, is often dependent in part upon general economic conditions). Consumer loans may entail greater risk than SFR mortgage loans given that collection of these loans is dependent on the borrower’s continuing financial stability and, thus, are more likely to be adversely affected by job loss, divorce, illness, or personal bankruptcy. Green Loans are also considered to carry a higher degree of credit risk due to their unique cash flows. Credit risk on this asset class is also managed through the completion of regular third party automated valuation models (AVMs) of the underlying collateral and monitoring of the borrower’s usage of this account to determine if the borrower is making monthly payments from external sources or “drawdowns” on their line. In cases where the property values have declined to levels less than the original LTV ratios, or other levels deemed prudent by us, we may curtail the line and/or require monthly payments or principal reductions to bring the loan in balance. On the interest only loans, we project future payment changes to determine if there will be a material increase in the required payment and then monitors the loans for possible delinquency. Individual loans are monitored for possible downgrading of risk rating. Troubled Debt Restructurings: A loan is identified as a TDR when a borrower is experiencing financial difficulties and for economic or legal reasons related to these difficulties, we grant a concession to the borrower in the restructuring that it would not otherwise consider. We have granted a concession when, as a result of the restructuring to a troubled borrower, it does not expect to collect all amounts due, including principal and/or interest accrued at the original terms of the loan. The concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a note split with principal forgiveness. Loans for which the borrower has been discharged under Chapter 7 bankruptcy are considered collateral dependent TDRs, impaired at the date of discharge, and charged down to the fair value of collateral less cost to sell. A restructuring executed at an interest rate that is at market interest rates based on the current credit characteristics of the borrower is not a TDR. Our policy is to place consumer loan TDRs, except those that were performing prior to TDR status, on non-accrual status for a minimum period of 6 months . Commercial TDRs are evaluated on a case-by-case basis for determination of whether or not to place them on non-accrual status. Loans qualify for return to accrual status once they have demonstrated performance under the restructured terms of the loan for a minimum of 6 months. Initially, all TDRs are reported as impaired. Generally, TDRs are classified as impaired loans and reported as TDRs for the remaining life of the loan. Impaired and TDR classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of 6 months and through one fiscal year-end and the restructuring agreement specifies a market rate of interest equal to that which would be provided to a borrower with similar credit at the time of restructuring. In the limited circumstance that a loan is removed from TDR classification, it is our policy to continue to base our measure of loan impairment on the contractual terms specified by the loan agreement. Fair Values of Financial Instruments: We measure certain assets and liabilities on a fair value basis, in accordance with ASC Topic 820, "Fair Value Measurement." Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Examples of these include derivative instruments and available-for-sale securities. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment in accordance with ASC Topic 825, "Financial Instruments." Examples of these include impaired loans, long-lived assets, OREO, goodwill, and core deposit intangible assets as well as loans held-for-sale accounted for at the lower of cost or fair value. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. When observable market prices are not available, fair value is estimated using modeling techniques such as discounted cash flow analysis. These modeling techniques utilize assumptions that market participants would use in pricing the asset or the liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance. Depending on the nature of the asset or liability, we use various valuation techniques and assumptions when estimating the instrument’s fair value. Considerable judgment may be involved in determining the amount that is most representative of fair value. To increase consistency and comparability of fair value measures, ASC Topic 820, "Fair Value Measurement" established a three-level hierarchy to prioritize the inputs used in valuation techniques between observable inputs among (i) observable inputs that reflect quoted prices in active markets, (ii) inputs other than quoted prices with observable market data, and (iii) unobservable data such as our own data or single dealer non-binding pricing quotes. We assess the valuation hierarchy for each asset or liability measured at the end of each quarter; as a result, assets or liabilities may be transferred within hierarchy levels due to changes in availability of observable market inputs to measure fair value at the measurement date. Federal Home Loan Bank and Federal Reserve Bank Stock: The Bank is a member of the FHLB and FRB system. Members are required to own a certain amount of FHLB and FRB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported on the Consolidated Statements of Operations under Interest and Dividend Income from Other Interest-Earning Assets. Other Real Estate Owned: OREO, which represents real estate acquired through foreclosure in satisfaction of commercial and real estate loans, is initially recorded at fair value less estimated selling costs of the real estate, based on current independent appraisals obtained at the time of acquisition, less costs to sell when acquired, establishing a new cost basis. Loan balances in excess of fair value of the real estate acquired at the date of acquisition are charged off against the ALL. A valuation allowance is established for any subsequent declines in fair value less estimated selling costs and adjusted as applicable. Gains and losses on the sale of OREO and reductions in fair value subsequent to foreclosure, and any subsequent operating expenses or income of such properties are included in All Other Expense on the Consolidated Statements of Operations. Bank Owned Life Insurance: The Bank has purchased life insurance policies on certain key employees. BOLI is recorded at the amount that can be realized under the insurance contract, which is the cash surrender value. Premises, Equipment, and Capital Leases: Land is carried at cost. Premises and equipment are recorded at cost less accumulated depreciation. The straight-line method is used for depreciation with the following estimated useful lives: building - 40 years and leasehold improvements - life of lease, and furniture, fixtures, and equipment - 3 to 7 years . Maintenance and repairs are expensed as incurred and improvements that extend the useful lives of assets are capitalized. Servicing Rights - Mortgage (Carried at Fair Value): A servicing asset or liability is recognized when undertaking an obligation to service a financial asset under a mortgage servicing contract, as a result of the transfer of our financial assets that meet the requirements for sale accounting. Such servicing asset or liability is initially measured at fair value based on either market prices for comparable servicing contracts or alternatively is based on a valuation model that is based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate based on the related loan rate and is recorded on the Consolidated Statements of Financial Condition. We measure servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and such changes are included within Noninterest Income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimates and actual prepayment speeds and default rates and losses. Currently, we do not hedge the effects of changes in fair value of our servicing assets. Servicing fee income, which is reported in Loan Servicing Income on the Consolidated Statements of Operations, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Servicing Rights - SBA Loans (Carried at Lower of Cost or Fair Value): The Bank originates and sells the guaranteed portion of our SBA loans. To calculate the gain (loss) on sales of SBA loans, the Bank’s investment in the loan is allocated among the retained portion of the loan, the servicing retained, the interest-only strip and the sold portion of the loan, based on the relative fair market value of each portion. The gain (loss) on the sold portion of the loan is recognized at the time of sale based on the difference between sale proceeds and the amount of the allocated investment to the sold portion of the loan. The portion of the servicing fees that represent contractually specified servicing fees (contractual servicing) is reflected as a servicing asset and is amortized over the estimated life of the servicing. In the event future prepayments exceed management’s estimates and future expected cash flows are inadequate to cover the servicing asset, impairment is recognized. The portion of servicing fees in excess of contractual servicing fees is reflected as interest-only strip receivables. Goodwill and Other Intangible Assets: Goodwill represents the excess purchase price of businesses acquired over the fair value of the identifiable net assets acquired and is assigned to specific reporting units. Goodwill is not subject to amortization and is evaluated for impairment at least annually, normally during the third fiscal quarter, or more frequently in the interim if events occur or circumstances change indicating it would more likely than not result in a reduction of the fair value of a reporting unit below its carrying value. Goodwill is evaluated for impairment by either performing a qualitative evaluation or a quantitative test. The impairment losses recognized related to intangible assets are recorded in Impairment on Intangible Assets on the Consolidated Statements of Operations. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is more likely than not that the fair value of a reporting unit is below its carrying value, we perform a quantitative test whereby the fair value of a reporting unit is compared to its carrying amount, including goodwill. We determine the estimated fair value of each reporting unit using a discounted cash flow analysis and comparable public company market values. Discounted cash flow estimates include significant management assumptions relating to revenue growth rates, net interest margins, weighted-average cost of capital, and future economic and market conditions. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. Otherwise, if a reporting unit's carrying value exceeds fair value, the difference is charged to noninterest expense. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights, or because the asset is capable of being sold or exchanged either separately or in combination with a related contract, asset or liability. Other intangible assets with finite useful lives are amortized to noninterest expense over their estimated useful lives and are evaluated for impairment whenever events occur or circumstances change indicating the carrying amount of the asset may not be recoverable. Alternative Energy Partnerships: We invest in certain alternative energy partnerships (limited liability companies) formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits (energy tax credits) and other tax credits. We are |
SALES OF BRANCH, SUBSIDIARY AND
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS | SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS Banc Home Loans Sale On March 30, 2017, we completed the sale of specific assets and activities related to our Banc Home Loans division to Caliber Home Loans, Inc. (Caliber). The Banc Home Loans division largely represented our Mortgage Banking segment, the activities of which related to originating, servicing, underwriting, funding and selling single family residential (SFR) mortgage loans. Assets sold to Caliber included mortgage servicing rights (MSRs) on certain conventional agency SFR mortgage loans. The Banc Home Loans division, along with certain other mortgage banking related assets and liabilities that were sold or settled separately within one year, were classified as discontinued operations in the accompanying consolidated financial statements. Certain components of our Mortgage Banking segment, including MSRs on certain conventional agency SFR mortgage loans that were not sold as part of the Banc Home Loans sale and repurchase reserves related to previously sold loans, have been classified as continuing operations in the consolidated financial statements as they remain part of our ongoing operations. The specific assets acquired by Caliber include, among other things, the leases relating to our dedicated mortgage loan origination offices and rights to certain portions of our unlocked pipeline of residential mortgage loan applications. Caliber has assumed certain obligations and liabilities of the Company under the acquired leases, and with respect to the employment of transferred employees. We received a $25.0 million cash premium payment, in addition to the net book value of certain assets acquired by Caliber, totaling $2.5 million , upon the closing of the transaction. Additionally, we are entitled to receive an earn-out, payable quarterly, based on future performance over the 38 months following completion of the transaction. Caliber retains an option to buy out the future earn-out payable to us for cash consideration of $35.0 million , less the aggregate amount of all earn-out payments made prior to the date on which Caliber pays the buyout amount. Caliber also purchased the MSRs of $37.8 million on approximately $3.86 billion in unpaid balances of conventional agency mortgage loans, subject to adjustment under certain circumstances. During the years ended December 31, 2019 , 2018 and 2017 , we recorded $0 , $1.4 million and $13.8 million to net gain on disposal of discontinued operations. Net gain on disposal of discontinued operations recognized in the first half of 2018 was primarily the result of the release of $1.0 million in liability for estimated discretionary incentive compensation payments to certain employees transferred to Caliber as the amount paid was less than the accrued liability. Since the completion of the transaction, we have recognized a net gain on disposal of $15.2 million . The Banc Home Loans division originated conforming SFR mortgage loans and sold these loans in the secondary market. The amount of net revenue on mortgage banking activities was a function of mortgage loans originated for sale and the fair values of these loans and related derivatives. Net revenue on mortgage banking activities included mark to market pricing adjustments on loan commitments and forward sales contracts, and initial capitalized value of MSRs. The following table summarizes the calculation of the net gain on disposal of discontinued operations: Year Ended December, 31 ($ in thousands) 2019 2018 2017 Total Net Gain on Disposal After Completion of Sale Proceeds from the transaction $ — $ — $ 63,054 $ 63,054 Compensation expense related to the transaction — 1,003 (3,500 ) (2,497 ) Other transaction costs — 436 (3,431 ) (2,995 ) Net cash proceeds — 1,439 56,123 57,562 Book value of certain assets sold — — (2,455 ) (2,455 ) Book value of MSRs sold — — (37,772 ) (37,772 ) Goodwill — — (2,100 ) (2,100 ) Net gain on disposal $ — $ 1,439 $ 13,796 $ 15,235 The following tables present the financial information of discontinued operations as of the dates and for the periods indicated: Statements of Financial Condition of Discontinued Operations December 31, ($ in thousands) 2019 2018 ASSETS Loans held-for-sale, carried at fair value $ — $ 19,490 Assets of discontinued operations $ — $ 19,490 LIABILITIES Liabilities of discontinued operations $ — $ — Statements of Operations of Discontinued Operations Year Ended December 31, ($ in thousands) 2019 2018 2017 Interest income Loans, including fees $ — $ 665 $ 7,052 Total interest income — 665 7,052 Noninterest income Net gain on disposal — 1,439 13,796 Loan servicing income — — 1,551 Net revenue on mortgage banking activities — 428 42,889 All other income — 2,200 1,871 Total noninterest income — 4,067 60,107 Noninterest expense Salaries and employee benefits — 20 38,374 Occupancy and equipment — — 3,964 Professional fees — — 2,546 Outside Service Fees — — 5,625 Data processing — 8 687 Advertising — — 1,357 Restructuring expense — — 3,794 All other expenses — 108 3,648 Total noninterest expense — 136 59,995 Income from discontinued operations before income taxes — 4,596 7,164 Income tax expense — 1,271 2,929 Income from discontinued operations $ — $ 3,325 $ 4,235 Statements of Cash Flows of Discontinued Operations Year Ended December 31, ($ in thousands) 2019 2018 2017 Net cash provided by operating activities $ — $ 14,916 $ 365,045 Net cash provided by investing activities — — 56,123 Net cash provided by discontinued operations $ — $ 14,916 $ 421,168 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS Fair Value Hierarchy ASC 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value: • Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2: Significant 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. • Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured on a Recurring Basis Securities Available-for-Sale: The fair values of securities available-for-sale are generally determined by quoted market prices in active markets, if available (Level 1). If quoted market prices are not available, we primarily employ independent pricing services that utilize pricing models to calculate fair value. Such fair value measurements consider observable data such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and respective terms and conditions for debt instruments. We employ procedures to monitor the pricing service's assumptions and establish processes to challenge the pricing service's valuations that appear unusual or unexpected. Multiple quotes or prices may be obtained in this process and we determine which fair value is most appropriate based on market information and analysis. Quotes obtained through this process are generally non-binding. We follow established procedures to ensure that assets and liabilities are properly classified in the fair value hierarchy. Level 2 securities include SBA loan pool securities, U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities, non-agency residential mortgage-backed securities, non-agency commercial mortgage-backed securities, collateralized loan obligations, and corporate debt securities. When a market is illiquid or there is a lack of transparency around the inputs to valuation, including at least one unobservable input, the securities are classified as Level 3 and reliance is placed upon internally developed models, and management judgment and evaluation for valuation. We had no securities available-for-sale classified as Level 3 at December 31, 2019 and 2018 . Loans Held-for-Sale, Carried at Fair Value: The fair value of loans held-for-sale is based on commitments outstanding from investors and current offerings in the secondary market for portfolios with similar characteristics, except for loans that are repurchased out of GNMA loan pools that become severely delinquent which are valued based on an internal model. Loans held-for-sale subject to recurring fair value adjustments are classified as Level 2, or in the case of loans repurchased, Level 3. The fair value includes the servicing value of the loans and any accrued interest. Derivative Assets and Liabilities : Interest Rate Swaps and Caps . We offer interest rate swaps and caps products to certain loan clients to allow them to hedge the risk of rising interest rates on their variable rate loans. We originate a variable rate loan and enter into a variable-to-fixed interest rate swap with the client. We also enter into an offsetting swap with a correspondent bank. These back-to-back agreements are intended to offset each other and allow us to originate a variable rate loan, while providing a contract for fixed interest payments for the client. The net cash flow for us is equal to the interest income received from a variable rate loan originated with the client plus a fee. The fair value of these derivatives is based on a discounted cash flow approach. Due to the observable nature of the inputs used in deriving the fair value of these derivative contracts, the valuation of interest rate swaps is classified as Level 2. Mortgage Servicing Rights: We retain servicing on some of our mortgage loans sold and elected the fair value option for these MSRs. Generally, the value is estimated based on a valuation from a third party provider that calculates the present value of the expected net servicing income from the portfolio based on key factors that include interest rates, prepayment assumptions, discount rate and estimated cash flows. Because of the significance of unobservable inputs, these servicing rights are classified as Level 3. The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 36,456 $ — $ 36,456 $ — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 91,299 — 91,299 — Municipal securities 52,689 — 52,689 — Non-agency residential mortgage-backed securities 196 — 196 — Collateralized loan obligations 718,361 — 718,361 — Corporate debt securities 13,579 — 13,579 — Loans held-for-sale, carried at fair value 22,642 — 3,409 19,233 Mortgage servicing rights (1) 1,157 — — 1,157 Derivative assets: Interest rate swaps and caps (1) 3,445 — 3,445 — Foreign exchange contracts (1) 138 — 138 — Liabilities Derivative liabilities: Interest rate swaps and caps (2) 3,717 — 3,717 — Foreign exchange contracts (2) 136 — 136 — (1) Included in Other Assets on the Consolidated Statements of Financial Condition (2) Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Assets Securities available-for-sale: SBA loan pools securities $ 910 $ — $ 910 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 437,442 — 437,442 — Non-agency residential mortgage-backed securities 427 — 427 — Non-agency commercial mortgage-backed securities 132,199 — 132,199 — Collateralized loan obligations 1,421,522 — 1,421,522 — Loans held-for-sale, carried at fair value (1) 27,180 — 2,140 25,040 Mortgage servicing rights (2) 1,770 — — 1,770 Derivative assets - Interest rate swaps and caps (2) 1,534 — 1,534 — Liabilities Derivative liabilities - Interest rate swaps and caps (3) 1,600 — 1,600 — (1) Includes loans held-for-sale carried at fair value of $19.5 million ( $2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations, which are included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition. (2) Included in Other Assets in the Consolidated Statements of Financial Condition. (3) Included in Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), on a consolidated operations basis, for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Mortgage servicing rights Balance at beginning of period (1) $ 1,770 $ 31,852 $ 76,121 Total gains or losses (realized/unrealized): Included in earnings—fair value adjustment (4) (264 ) (1,155 ) (10,240 ) Additions — — 12,127 Sales, paydowns, and other (2) (349 ) (28,927 ) (46,156 ) Balance at end of period $ 1,157 $ 1,770 $ 31,852 Loans repurchased or eligible to be repurchased from Ginnie Mae Loan Pools (3) Balance at beginning of period $ 25,040 $ 98,940 $ 58,260 Total gains or losses (realized/unrealized): Included in earnings—fair value adjustment (5) (16 ) (1,378 ) (781 ) Additions 406 23,678 117,215 Sales, settlements, and other (6) (6,197 ) (96,200 ) (75,754 ) Balance at end of period $ 19,233 $ 25,040 $ 98,940 (1) Includes MSRs of discontinued operations, which is included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition, of $0 , $0 , and $37.7 million for the years ended December 31, 2019 , 2018 and 2017 in balance at beginning of period. (2) Includes $37.8 million of MSRs sold as a part of discontinued operations for the year ended December 31, 2017. (3) Includes loans repurchased from GNMA loan pools of discontinued operations, which is included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition, of $17.3 million , $32.3 million and $58.3 million in balance at beginning of period, and $0 , $17.3 million and $32.3 million in balance at end of period for the years ended December 31, 2019 , 2018 and 2017 . (4) Included in Loan Servicing Income in the Consolidated Statements of Operations. (5) Included in Net Gain on Sale of Loans in the Consolidated Statements of Operations. (6) Included in sales, settlements and other are $66.0 million of GNMA loans subject to repurchase option that were derecognized when the associated mortgage servicing rights were sold during the year ended December 31, 2018. Loans repurchased or eligible to be repurchased from GNMA loan pools had aggregate unpaid principal balances of $19.8 million and $25.5 million at December 31, 2019 and 2018 . The significant unobservable inputs used in the fair value measurement of our servicing rights include the discount rate and prepayment rate. The significant unobservable inputs used in the fair value measurement of our loans repurchased from GNMA pools at December 31, 2019 and 2018 included an expected loss rate of 1.55 percent for insured loans and 20.00 percent for uninsured loans. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. The following table presents, as of the dates indicated, quantitative information about Level 3 fair value measurements on a recurring basis, other than loans that become severely delinquent and are repurchased out of GNMA loan pools that were valued based on an estimate of the expected loss we will incur on these loans at December 31, 2019 and 2018 : ($ in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted-Average) December 31, 2019 Mortgage servicing rights $ 2,323 Discounted cash flow Discount rate 8.75% to 13.00% (11.55%) Prepayment rate 8.00% to 66.34% (15.22%) December 31, 2018 Mortgage servicing rights $ 3,362 Discounted cash flow Discount rate 9.50% to 13.00% (11.27%) Prepayment rate 8.00% to 66.34% (12.67%) Fair Value Option Loans Held-for-Sale, Carried at Fair Value: We elected the fair value option for certain SFR mortgage loans held-for-sale. Electing to measure SFR mortgage loans held-for-sale at fair value reduces certain timing differences and better matches changes in the value of these assets with changes in the value of derivatives used as economic hedges for these assets. We also elected to record loans repurchased from GNMA at fair value, as we intend to sell them after curing any defects and, accordingly, they are classified as held-for-sale. The following table presents the fair value and aggregate principal balance of certain assets, on a consolidated operations basis, under the fair value option as of the dates indicated: December 31, 2019 2018 ($ in thousands) Fair Value Unpaid Principal Balance Difference Fair Value Unpaid Principal Balance Difference Loans held-for-sale, carried at fair value in continuing operations: Total loans $ 22,642 $ 23,455 $ (813 ) $ 7,690 $ 7,906 $ (216 ) Non-accrual loans (1) 8,125 8,370 (245 ) 2,427 2,538 (111 ) Loans past due 90 days or more and still accruing — — — — — — Loans held-for-sale, carried at fair value in discontinued operations: Total loans $ — $ — $ — $ 19,490 $ 20,027 $ (537 ) Non-accrual loans (2) — — — 8,430 8,496 (66 ) Loans past due 90 days or more and still accruing — — — — — — (1) Includes loans guaranteed by the U.S. government of $6.7 million and $1.6 million at December 31, 2019 and 2018 . (2) Includes loans guaranteed by the U.S. government of $0 and $7.6 million , at December 31, 2019 and 2018 . The assets and liabilities accounted for under the fair value option are initially measured at fair value. Gains and losses from initial measurement and subsequent changes in fair value are recognized in earnings. The following table presents changes in fair value related to initial measurement and subsequent changes in fair value included in earnings for these assets and liabilities measured at fair value for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Net gains (losses) from fair value changes Net gain (loss) on sale of loans (continuing operations) $ 106 $ 204 $ (170 ) Net revenue on mortgage banking activities (discontinued operations) — 159 (288 ) Changes in fair value due to instrument-specific credit risk were insignificant for the years ended December 31, 2019 , 2018 and 2017 . Interest income on loans held-for-sale under the fair value option is measured based on the contractual interest rate and reported in Loans, including Fees under Interest and Dividend Income and Income from Discontinued Operations on the Consolidated Statements of Operations. Assets and Liabilities Measured on a Non-Recurring Basis Impaired Loans: The fair value of impaired loans with specific allocations of the ALL based on collateral values is generally based on recent real estate appraisals and AVMs. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically deemed significant unobservable inputs used for determining fair value and result in a Level 3 classification. Other Real Estate Owned Assets: OREO assets initially are recorded at fair value at the time of foreclosure. Thereafter, they are recorded at the lower of cost or fair value. The fair value of OREO assets is generally based on recent real estate appraisals adjusted for estimated selling costs. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and the income approach. Such adjustments may be significant and result in a Level 3 classification due to the unobservable inputs used for determining fair value. We recorded valuation allowance expense for OREO assets of $145 thousand , $53 thousand and $236 thousand for the years ended December 31, 2019 , 2018 and 2017 in All Other Expense on the Consolidated Statements of Operations. The following table presents our financial assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Assets Impaired loans: Single family residential mortgage $ 3,678 $ — $ — $ 3,678 Commercial and industrial 15,409 — — 15,409 SBA $ 1,711 — — $ 1,711 December 31, 2018 Assets Impaired loans: SBA $ 226 — — $ 226 The following table presents the gains and (losses) recognized on assets measured at fair value on a non-recurring basis for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Impaired loans: Single family residential mortgage $ (490 ) $ (115 ) $ (164 ) Commercial real estate — (1,752 ) — SBA (46 ) (1,048 ) (200 ) Other consumer (88 ) (141 ) (29 ) Other real estate owned: Single family residential (104 ) 229 (284 ) Estimated Fair Values of Financial Instruments The following table presents the carrying amounts and estimated fair values of financial assets and liabilities as of the dates indicated: Carrying Amount Fair Value Measurement Level ($ in thousands) Level 1 Level 2 Level 3 Total December 31, 2019 Financial assets Cash and cash equivalents $ 373,472 $ 373,472 $ — $ — $ 373,472 Securities available-for-sale 912,580 — 912,580 — 912,580 Federal Home Loan Bank and other bank stock 59,420 — 59,420 — 59,420 Loans held-for-sale 22,642 — 3,409 19,233 22,642 Loans receivable, net of allowance 5,894,236 — — 5,894,732 5,894,732 Accrued interest receivable 24,523 24,523 — — 24,523 Derivative assets 3,583 — 3,583 — 3,583 Financial liabilities Deposits 5,427,167 — — 5,430,536 5,430,536 Advances from Federal Home Loan Bank 1,195,000 — 1,222,709 — 1,222,709 Long-term debt 173,421 — 180,213 — 180,213 Derivative liabilities 3,853 — 3,853 — 3,853 Accrued interest payable 4,687 4,687 — — 4,687 December 31, 2018 Financial assets Cash and cash equivalents $ 391,592 $ 391,592 $ — $ — $ 391,592 Securities available-for-sale 1,992,500 — 1,992,500 — 1,992,500 Federal Home Loan Bank and other bank stock 68,094 — 68,094 — 68,094 Loans held-for-sale (1) 27,606 — 2,566 25,040 27,606 Loans receivable, net of allowance 7,638,681 — — 7,513,910 7,513,910 Accrued interest receivable 38,807 38,807 — — 38,807 Derivative assets 1,534 — 1,534 — 1,534 Financial liabilities Deposits 7,916,644 — — 7,689,324 7,689,324 Advances from Federal Home Loan Bank 1,520,000 — 1,517,761 — 1,517,761 Long-term debt 173,174 — 174,059 — 174,059 Derivative liabilities 1,600 — 1,600 — 1,600 Accrued interest payable 13,253 13,253 — — 13,253 (1) Includes loans held-for-sale carried at fair value of $19.5 million ( $2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations. The methods and assumptions used to estimate fair value for our financial instruments recorded at fair value on a recurring or non-recurring basis are described as follows: Cash and Cash Equivalents and Time Deposits in Financial Institutions: The carrying amounts of cash and cash equivalents and time deposits in financial institutions approximate fair value due to the short-term nature of these instruments (Level 1). Federal Home Loan Bank and Other Bank Stock: Federal Home Loan Bank and other bank stock are recorded at cost, which approximates fair value. Ownership of FHLB stock is restricted to member banks, and purchases and sales of these securities are at par value with the issuer (Level 2). Loans Receivable, Net of ALL: The fair value of loans receivable, which is based on an exit price notion, is estimated based on the discounted cash flow approach. The discount rate was derived from the associated market yield curve plus appropriate spreads. The resulting fair value reflects market price for loans with similar financial characteristics. Yield curves are constructed by product and payment types. Additionally, the fair value of our loans may differ significantly from the values that would have been used had a ready market existed for such loans and may differ materially from the values that we may ultimately realize (Level 3). Accrued Interest Receivable: The carrying amount of accrued interest receivable approximates its fair value (Level 1). Deposits: The fair values of deposits with no stated maturity, including noninterest‑bearing deposits, interest-bearing demand deposits, money market and savings accounts are equal to the amount payable on demand as of the balance sheet date (Level 3). The fair value of certificates of deposit is estimated based on discounted cash flows utilizing interest rates currently being offered by the Bank on comparable deposits as to amount and term (Level 3). Advances from Federal Home Loan Bank and Other Borrowings: The fair values of advances from FHLB and other borrowings are estimated based on a discounted cash flow approach. The discount rate was derived from the current market rates for borrowings with similar remaining maturities (Level 2). Long-Term Debt: Fair value of long-term debt is determined by observable data such as market spreads, cash flows, yield curves, credit information, and respective terms and conditions for debt instruments (Level 2). Accrued Interest Payable: The carrying amount of accrued interest payable approximates its fair value (Level 1). |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | INVESTMENT SECURITIES The following table presents the amortized cost and fair value of the investment securities portfolio as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 37,613 $ — $ (1,157 ) $ 36,456 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 91,543 16 (260 ) 91,299 Municipal securities 52,997 51 (359 ) 52,689 Non-agency residential mortgage-backed securities 191 5 — 196 Collateralized loan obligations 733,605 — (15,244 ) 718,361 Corporate debt securities 13,500 79 — 13,579 Total securities available-for-sale $ 929,449 $ 151 $ (17,020 ) $ 912,580 December 31, 2018 Securities available-for-sale: SBA loan pool securities $ 911 $ — $ (1 ) $ 910 U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 461,987 — (24,545 ) 437,442 Non-agency residential mortgage-backed securities 418 9 — 427 Non-agency commercial mortgage-backed securities 132,199 — — 132,199 Collateralized loan obligations 1,431,171 141 (9,790 ) 1,421,522 Total securities available-for-sale $ 2,026,686 $ 150 $ (34,336 ) $ 1,992,500 During the year ended December 31, 2019 , in response to a changing interest rate environment we repositioned our securities available-for-sale portfolio by reducing the overall duration through sales of certain longer-duration and fixed-rate mortgage-backed securities. Additionally, we continued to strategically reduce our collateralized loan obligations exposure. As a result, we recognized $731 thousand of OTTI for the year ended December 31, 2019 . As of December 31, 2018 , we changed our intent and decided to sell our non-agency commercial mortgage-backed securities in an unrealized loss position due to our strategy to reposition our securities profile and recognized $3.3 million of other-than-temporary impairment (OTTI) losses during the fourth quarter of 2018. At December 31, 2019 , our investment securities portfolio included collateralized loan obligations, agency securities, municipal securities, corporate debt securities and mortgage-backed securities. The expected maturities of the collateralized loan obligations, agency securities and mortgage-backed securities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. The expected maturities of municipal securities and corporate debt securities may also differ from contractual maturities as the issuer may have the ability to redeem these securities prior to the contractual maturity dates. At December 31, 2019 and December 31, 2018 , there were no holdings of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our stockholders’ equity. The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Gross realized gains on sales and calls of securities available-for-sale $ 556 $ 5,532 $ 14,768 Gross realized losses on sales and calls of securities available-for-sale (5,408 ) — — Net realized (losses) gains on sales and calls of securities available-for-sale $ (4,852 ) $ 5,532 $ 14,768 Proceeds from sales and calls of securities available-for-sale $ 1,249,588 $ 1,025,471 $ 1,500,459 Investment securities with carrying values of $44.0 million and $163.0 million as of December 31, 2019 and December 31, 2018 were pledged to secure FHLB advances, public deposits and for other purposes as required or permitted by law. The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated: Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 35,872 $ (1,157 ) $ — $ — $ 35,872 $ (1,157 ) U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 73,379 (260 ) — — 73,379 (260 ) Municipal securities 31,723 (359 ) — — 31,723 (359 ) Collateralized loan obligations 49,553 (447 ) 668,808 (14,797 ) 718,361 (15,244 ) Corporate debt securities — — — — — — Total securities available-for-sale $ 190,527 $ (2,223 ) $ 668,808 $ (14,797 ) $ 859,335 $ (17,020 ) December 31, 2018 Securities available-for-sale: SBA loan pool securities $ — $ — $ 910 $ (1 ) $ 910 $ (1 ) U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 13,494 (133 ) 423,916 (24,412 ) 437,410 (24,545 ) Non-agency residential mortgage-backed securities 90 — 16 — 106 — Collateralized loan obligations 1,364,317 (9,480 ) 32,790 (310 ) 1,397,107 (9,790 ) Total securities available-for-sale $ 1,377,901 $ (9,613 ) $ 457,632 $ (24,723 ) $ 1,835,533 $ (34,336 ) At December 31, 2019 , our securities available-for-sale portfolio consisted of 70 securities, 60 of which were in an unrealized loss position. At December 31, 2018 , our securities available-for-sale portfolio consisted of 145 securities, 118 of which were in an unrealized loss position. We monitor our securities portfolio to ensure it has adequate credit support. The majority of unrealized losses are related to our collateralized loan obligations. We also consider the lowest credit rating for identification of potential OTTI for other securities. As of December 31, 2019 , nearly all of our non-agency mortgage-backed securities and collateralized loan obligations investment securities in an unrealized loss position received an investment grade credit rating. The decline in fair value is attributable to changes in interest rates, and not credit quality. We do not have the intent to sell the remaining 60 The following table presents the composition and the repricing and yield information of the investment securities portfolio as of December 31, 2019 : One year or less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total ($ in thousands) Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — — % $ — — % $ — — % $ 36,456 2.56 % $ 36,456 2.56 % U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 81,347 2.28 % — — % 9,952 2.47 % — — % 91,299 2.30 % Municipal securities — — % — — % — — % 52,689 2.79 % 52,689 2.79 % Non-agency residential mortgage-backed securities — — % — — % — — % 196 6.28 % 196 6.28 % Collateralized loan obligations 718,361 3.61 % — — % — — % — — % 718,361 3.61 % Corporate debt securities — — % 13,579 4.11 % — — % — — % 13,579 4.11 % Total securities available-for-sale $ 799,708 3.47 % $ 13,579 4.11 % $ 9,952 2.47 % $ 89,341 2.70 % $ 912,580 3.40 % |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The following table presents the balances in our loan portfolio as of the dates indicated: ($ in thousands) Traditional Loans NTM Loans Total Loans Receivable December 31, 2019 Commercial: Commercial and industrial $ 1,691,270 $ — $ 1,691,270 Commercial real estate 818,817 — 818,817 Multifamily 1,494,528 — 1,494,528 SBA 70,981 — 70,981 Construction 231,350 — 231,350 Consumer: Single family residential mortgage 992,417 598,357 1,590,774 Other consumer 51,866 2,299 54,165 Total loans (1) $ 5,351,229 $ 600,656 $ 5,951,885 Percentage to total loans 89.9 % 10.1 % 100.0 % Allowance for loan losses (57,649 ) Loans receivable, net $ 5,894,236 December 31, 2018 Commercial: Commercial and industrial $ 1,944,142 $ — $ 1,944,142 Commercial real estate 867,013 — 867,013 Multifamily 2,241,246 — 2,241,246 SBA 68,741 — 68,741 Construction 203,976 — 203,976 Consumer: Single family residential mortgage 1,481,172 824,318 2,305,490 Other consumer 67,852 2,413 70,265 Total loans (1) $ 6,874,142 $ 826,731 $ 7,700,873 Percentage to total loans 89.3 % 10.7 % 100.0 % Allowance for loan losses (62,192 ) Loans receivable, net $ 7,638,681 (1) Total loans includes deferred loan origination costs/(fees) and premiums/(discounts), net of $14.3 million and $17.7 million at December 31, 2019 and 2018 . Credit Quality Indicators We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We perform historical loss analysis that is combined with a comprehensive loan to value analysis to analyze the associated risks in the current loan portfolio. We analyze loans individually by classifying the loans as to credit risk. This analysis includes all loans delinquent over 60 days and non-homogeneous loans such as commercial and commercial real estate loans. We use the following definitions for risk ratings: Pass : Loans classified as pass are in compliance in all respects with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weakness as defined under “Special Mention”, “Substandard” or “Doubtful”. Special Mention : Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of our credit position at some future date. Substandard : Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table presents the risk categories for total loans as of December 31, 2019 : December 31, 2019 ($ in thousands) Pass Special Mention Substandard Doubtful Total NTM loans: Single family residential mortgage $ 579,548 $ 5,790 $ 13,019 $ — $ 598,357 Other consumer 2,299 — — — 2,299 Total NTM loans 581,847 5,790 13,019 — 600,656 Traditional loans: Commercial: Commercial and industrial 1,580,269 45,323 65,678 — 1,691,270 Commercial real estate 813,846 2,532 2,439 — 818,817 Multifamily 1,484,931 4,256 5,341 — 1,494,528 SBA 60,982 2,760 5,621 1,618 70,981 Construction 229,771 1,579 — — 231,350 Consumer: Single family residential mortgage 979,705 4,945 7,250 517 992,417 Other consumer 51,032 346 488 — 51,866 Total traditional loans 5,200,536 61,741 86,817 2,135 5,351,229 Total loans $ 5,782,383 $ 67,531 $ 99,836 $ 2,135 $ 5,951,885 The following table presents the risk categories for total loans as of December 31, 2018 : December 31, 2018 ($ in thousands) Pass Special Mention Substandard Doubtful Total NTM loans: Single family residential mortgage $ 811,056 $ 10,966 $ 2,296 $ — $ 824,318 Other consumer 2,413 — — — 2,413 Total NTM loans 813,469 10,966 2,296 — 826,731 Traditional loans: Commercial: Commercial and industrial 1,859,569 41,302 43,271 — 1,944,142 Commercial real estate 851,604 11,376 4,033 — 867,013 Multifamily 2,239,301 — 1,945 — 2,241,246 SBA 53,433 6,114 8,340 854 68,741 Construction 197,851 3,606 2,519 — 203,976 Consumer: Single family residential mortgage 1,461,721 2,602 16,849 — 1,481,172 Other consumer 66,228 979 645 — 67,852 Total traditional loans 6,729,707 65,979 77,602 854 6,874,142 Total loans $ 7,543,176 $ 76,945 — $ 79,898 $ 854 $ 7,700,873 Past Due Loans The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 , excluding accrued interest receivable (which is not considered to be material), by class of loans: December 31, 2019 ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total NTM loans: Single family residential mortgage $ 3,973 $ 3,535 $ 13,019 $ 20,527 $ 577,830 $ 598,357 Other consumer — — — — 2,299 2,299 Total NTM loans 3,973 3,535 13,019 20,527 580,129 600,656 Traditional loans: Commercial: Commercial and industrial 780 5,670 3,862 10,312 1,680,958 1,691,270 Commercial real estate — — — — 818,817 818,817 Multifamily — — — — 1,494,528 1,494,528 SBA 586 842 2,152 3,580 67,401 70,981 Construction — — — — 231,350 231,350 Consumer: Single family residential mortgage 13,752 3,496 5,606 22,854 969,563 992,417 Other consumer 199 40 95 334 51,532 51,866 Total traditional loans 15,317 10,048 11,715 37,080 5,314,149 5,351,229 Total loans $ 19,290 $ 13,583 $ 24,734 $ 57,607 $ 5,894,278 $ 5,951,885 The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 , excluding accrued interest receivable (which is not considered to be material), by class of loans: December 31, 2018 ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total NTM loans: Single family residential mortgage $ 7,430 $ 617 $ — $ 8,047 $ 816,271 $ 824,318 Other consumer — — — — 2,413 2,413 Total NTM loans 7,430 617 — 8,047 818,684 826,731 Traditional loans: Commercial: Commercial and industrial 350 1,596 3,340 5,286 1,938,856 1,944,142 Commercial real estate — 582 — 582 866,431 867,013 Multifamily 356 — — 356 2,240,890 2,241,246 SBA 551 77 862 1,490 67,251 68,741 Construction — 939 — 939 203,037 203,976 Consumer: Single family residential mortgage 7,321 3,160 9,198 19,679 1,461,493 1,481,172 Other consumer 3,132 573 446 4,151 63,701 67,852 Total traditional loans 11,710 6,927 13,846 32,483 6,841,659 6,874,142 Total loans $ 19,140 $ 7,544 $ 13,846 $ 40,530 $ 7,660,343 $ 7,700,873 Non-accrual Loans The following table presents the composition of non-accrual loans as of the dates indicated: December 31, 2019 2018 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Commercial: Commercial and industrial $ — $ 19,114 $ 19,114 $ — $ 5,455 $ 5,455 SBA — 5,230 5,230 — 2,574 2,574 Consumer: Single family residential mortgage 13,019 5,606 18,625 — 12,929 12,929 Other consumer — 385 385 — 627 627 Total $ 13,019 $ 30,335 $ 43,354 $ — $ 21,585 $ 21,585 At December 31, 2019 and 2018 , $0 and $470 thousand of loans were past due 90 days or more and still accruing. Loans in Process of Foreclosure At December 31, 2019 and 2018 , consumer mortgage loans of $15.7 million and $5.1 million were secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction. Allowance for Loan Losses We have established credit risk management processes that include regular management review of the loan portfolio to identify problem loans. During the ordinary course of business, management becomes aware of borrowers who may not be able to fulfill the contractual payment requirements of the loan agreements. Such loans are subject to increased monitoring. Consideration is given to placing the loan on non-accrual status, assessing the need for additional ALL, and partial or full charge-off of the principal balance. We maintain the ALL at a level that is considered adequate to cover the estimated incurred loss in the loan portfolio. We also maintain a separate reserve for unfunded loan commitments at a level that is considered adequate to cover the estimated incurred loss. The estimated funding of the loan commitments and credit risk factors determined based on outstanding loans that share similar credit risk exposure are used to determine the adequacy of the reserve. At December 31, 2019 and 2018 , the reserve for unfunded loan commitments was $4.1 million and $4.6 million and is reported in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. The credit risk monitoring system is designed to identify impaired and potential problem loans, and to perform periodic evaluation of impairment and the adequacy of the allowance for credit losses in a timely manner. In addition, the Board of Directors of the Bank has adopted a credit policy that includes a credit review and control system that it believes should be effective in ensuring that we maintain an adequate allowance for loan losses. The Board of Directors also provides oversight and guidance for management’s allowance evaluation process. Management concluded these products represented unique credit and risk characteristics to warrant separate segmentation. Additionally, management enhanced the methodology in the areas of qualitative adjustments, and performed an annual update of the loss emergence period. These updates were designed to be systematic, transparent, and repeatable. None of the updates and enhancements made to the ALL methodology had a material impact on the reserve. The following table presents a summary of activity in the ALL for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 62,192 $ 49,333 $ 40,444 Loans charged-off (41,766 ) (18,499 ) (5,581 ) Recoveries of loans previously charged off 836 1,143 771 Net charge-offs (40,930 ) (17,356 ) (4,810 ) Provision for loan losses 36,387 30,215 13,699 Balance at end of year $ 57,649 $ 62,192 $ 49,333 During 2019 we recorded $41.8 million in charge-offs including a $35.1 million charge-off of a line of credit originated in November 2017 to a borrower purportedly the subject of a fraudulent scheme. This charge-off increased the loss factor used in our allowance for loan loss for commercial and industrial loans, resulting in an additional loan loss provision of $3.0 million based on the composition of the loan portfolio. On October 22, 2019, in connection with this matter, the Bank filed a complaint in U.S. District Court for the Southern District of California (Case CV '19 02031 GPC KSC) seeking to recover its losses and other monetary damages against Chicago Title Insurance Company and Chicago Title Company, asserting claims under RICO, 18 U.S.C § 1962 and for RICO Conspiracy, Fraud, Aiding and Abetting Fraud, Negligent Misrepresentation, Breach of Fiduciary Duty and Negligence. We are actively considering and pursuing available sources of recovery and other potential means of mitigating the loss; however, no assurance can be given that we will be successful in that regard. During the three months ended March 31, 2018, we recorded a charge-off of $13.9 million , which reflected the outstanding balance under a $15.0 million line of credit that was originated during the three months ended March 31, 2018. Subsequent to the granting of the line of credit, representations from the borrower in applying for the line of credit were determined by the Bank to be false, and third party bank account statements provided by the borrower to secure the line of credit were found to be fraudulent. The line of credit was granted after the borrower appeared to have satisfied a pre-condition that the line of credit be fully cash collateralized and secured by a bank account at a third party financial institution pledged to the Bank. As part of the Bank’s credit review and portfolio management process, the line of credit and disbursements were reviewed subsequent to closing and compliance with the borrower’s covenants was monitored. As part of this process, on March 9, 2018, the Bank received information that caused it to believe the existence of the pledged bank account had been misrepresented by the borrower and that the account had previously been closed. The Bank filed an action in federal court pursuing the borrower and other parties and is also pursuing other available sources of collection and other potential means of mitigating the loss; however, no assurance can be given that it will be successful in this regard. The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans by portfolio segment and is based on the impairment method as of or for the year ended December 31, 2019 : ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total ALL: Balance at December 31, 2018 $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Charge-offs (36,787 ) — (6 ) (2,121 ) (371 ) — (2,369 ) (112 ) (41,766 ) Recoveries 138 — — 217 — 12 150 319 836 Net charge-offs (36,649 ) — (6 ) (1,904 ) (371 ) 12 (2,219 ) 207 (40,930 ) Transfer of loans to held-for-sale — — — — — — — — — Provision (reversal of provision) 40,811 (733 ) (6,559 ) 3,197 816 (12 ) (423 ) (710 ) 36,387 Balance at December 31, 2019 $ 22,353 $ 5,941 $ 11,405 $ 3,120 $ 3,906 $ — $ 10,486 $ 438 $ 57,649 Individually evaluated for impairment $ 3,367 $ — $ — $ 2,045 $ — $ — $ 574 $ 4 $ 5,990 Collectively evaluated for impairment 18,986 5,941 11,405 1,075 3,906 — 9,912 434 51,659 Total ending ALL $ 22,353 $ 5,941 $ 11,405 $ 3,120 $ 3,906 $ — $ 10,486 $ 438 $ 57,649 Loans: Individually evaluated for impairment $ 20,236 $ — $ — $ 5,136 $ — $ — $ 23,657 $ 679 $ 49,708 Collectively evaluated for impairment 1,671,034 818,817 1,494,528 65,845 231,350 — 1,567,117 53,486 5,902,177 Total loans $ 1,691,270 $ 818,817 $ 1,494,528 $ 70,981 $ 231,350 $ — $ 1,590,774 $ 54,165 $ 5,951,885 The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans by portfolio segment and is based on the impairment method as of or for the year ended December 31, 2018 : ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total ALL: Balance at December 31, 2017 $ 14,280 $ 4,971 $ 13,265 $ 1,701 $ 3,318 $ — $ 10,996 $ 802 $ 49,333 Charge-offs (1,927 ) — (14 ) (1,927 ) — — (558 ) (14,073 ) (18,499 ) Recoveries 396 — — 273 — 15 436 23 1,143 Net charge-offs (1,531 ) — (14 ) (1,654 ) — 15 (122 ) (14,050 ) (17,356 ) Provision (reversal of provision) 5,442 1,703 4,719 1,780 143 (15 ) 2,254 14,189 30,215 Balance at December 31, 2018 $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Individually evaluated for impairment $ — $ — $ — $ 562 $ — $ — $ 161 $ 106 $ 829 Collectively evaluated for impairment 18,191 6,674 17,970 1,265 3,461 — 12,967 835 61,363 Total ending ALL $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Loans: Individually evaluated for impairment $ 5,455 $ — $ — $ 2,376 $ — $ — $ 18,193 $ 921 $ 26,945 Collectively evaluated for impairment 1,938,687 867,013 2,241,246 66,365 203,976 — 2,287,297 69,344 7,673,928 Total loans $ 1,944,142 $ 867,013 $ 2,241,246 $ 68,741 $ 203,976 $ — $ 2,305,490 $ 70,265 $ 7,700,873 The following table presents information on impaired loans, disaggregated by class, for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Commercial: Commercial and industrial $ 17,263 $ 320 $ 315 $ 5,380 $ 4 $ 4 $ 1,034 $ — $ — Commercial real estate 145 — — — — — — — — SBA 4,673 15 15 986 4 3 357 — — Construction 1,889 — — — — — 382 — — Lease Financing — — — — — — 19 — — Consumer: Single family residential mortgage 21,198 234 199 19,694 236 199 12,611 199 182 Other consumer 883 13 13 771 12 11 1,757 8 8 Total $ 46,051 $ 582 $ 542 $ 26,831 $ 256 $ 217 $ 16,158 $ 207 $ 190 The following table presents loans individually evaluated for impairment by class of loans as of the dates indicated. The recorded investment, excluding accrued interest, presents client balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs and any purchase premium or discount. December 31, 2019 2018 ($ in thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Unpaid Principal Balance Recorded Investment Allowance for Loan Losses With no related allowance recorded: Commercial: Commercial and industrial $ 1,471 $ 1,460 $ — $ 5,491 $ 5,455 $ — SBA 1,439 1,379 — 1,668 1,588 — Consumer: Single family residential mortgage 19,319 19,405 — 12,115 12,161 — Other consumer 671 675 — 469 469 — With an allowance recorded: Commercial: Commercial and industrial 18,776 18,776 3,367 — — — SBA 3,921 3,757 2,045 823 788 562 Consumer: Single family residential mortgage 4,213 4,252 574 5,993 6,032 161 Other consumer 4 4 4 468 452 106 Total $ 49,814 $ 49,708 $ 5,990 $ 27,027 $ 26,945 $ 829 Troubled Debt Restructurings (TDRs) A modification of a loan constitutes a TDR when we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise consider. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of the loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. Troubled debt restructured loans consisted of the following as of the dates indicated: December 31, 2019 2018 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Commercial: Commercial and industrial $ — $ 16,245 $ 16,245 $ — $ 2,276 $ 2,276 SBA — 266 266 — 187 187 Consumer: Single family residential mortgage 2,638 2,394 5,032 2,668 2,596 5,264 Other consumer 294 — 294 294 — 294 Total $ 2,932 $ 18,905 $ 21,837 $ 2,962 $ 5,059 $ 8,021 We had $135 thousand and $0 in commitments to lend to clients with outstanding loans that were classified as TDRs as of December 31, 2019 and 2018 . Accruing TDRs were $6.6 million and non-accrual TDRs were $15.2 million at December 31, 2019 , compared to accruing TDRs of $5.7 million and non-accrual TDRs of $2.3 million at December 31, 2018 . The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial: Commercial and industrial 12 $ 18,512 $ 15,865 2 $ 171 $ 163 1 $ 2,706 $ 2,706 SBA 2 3,214 869 1 187 187 — — — Consumer: Single family residential mortgage — — — — — — 3 2,416 2,433 Total 14 $ 21,726 $ 16,734 3 $ 358 $ 350 4 $ 5,122 $ 5,139 For the years ended December 31, 2019 , 2018 , and 2017 , there were no loans that were modified as TDRs during the past 12 months that had subsequent payment defaults during the periods. The following table summarizes the TDRs by modification type for the periods indicated: Modification Type Change in Principal Payments and Interest Rates Change in Principal Payments Change in Interest Rates Chapter 7 Bankruptcy Other Total ($ in thousands) Count Amount Count Amount Count Amount Count Amount Count Amount Count Amount Year ended December 31, 2019 Commercial: Commercial and industrial 12 $ 15,865 — $ — — $ — — $ — — $ — 12 $ 15,865 SBA 2 869 — — — — — — — — 2 869 Consumer: Single family residential mortgage — — — — — — — — — — — — Total 14 $ 16,734 — $ — — $ — — $ — — $ — 14 $ 16,734 Year ended December 31, 2018 Commercial: Commercial and industrial — $ — 2 $ 163 — $ — — $ — — $ — 2 $ 163 SBA — — — — — — — — 1 187 1 187 Total — $ — 2 $ 163 — $ — — $ — 1 $ 187 3 $ 350 Year ended December 31, 2017 Commercial: Commercial and industrial — $ — 1 $ 2,706 — $ — — $ — — $ — 1 $ 2,706 Consumer: Single family residential mortgage 2 1,290 1 1,143 — — — — — — 3 2,433 Total 2 $ 1,290 2 $ 3,849 — $ — — $ — — $ — 4 $ 5,139 Purchases and Sales The following table presents loans purchased and/or sold by portfolio segment, excluding loans held-for-sale, loans acquired in business combinations or sold in sales of branches and business units, and PCI loans for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Purchases Sales Purchases Sales Purchases Sales Consumer: Single family residential mortgage — — 59,481 — — — Other consumer — — — — — — Total $ — $ — $ 59,481 $ — $ — $ — Loan purchases during the year ended December 31, 2018 were made at a net premium of $2.3 million . For the purchased loans disclosed above, we did not incur any specific allowances for loan losses during the years ended December 31, 2019 , 2018 , and 2017 . We determined that it was probable at acquisition that all contractually required payments would be collected. The following table presents loans transferred from (to) loans held-for-sale by portfolio segment, excluding loans transferred in connection with sales of branches and business units, and PCI loans for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Transfers from Held-For-Sale Transfers to Held-For-Sale Transfers from Held-For-Sale Transfers to Held-For-Sale Transfers from Held-For-Sale Transfers to Held-For-Sale Commercial: Commercial and industrial $ — $ — $ — $ (1,133 ) $ — $ (3,924 ) Commercial real estate — (573 ) — — — (1,329 ) Multifamily — (752,087 ) — (81,449 ) — (6,583 ) SBA — (559 ) — — — (1,865 ) Construction — (2,519 ) — (434 ) — (1,528 ) Consumer: Single family residential mortgage — (383,859 ) — (289,617 ) 88,591 (450,625 ) Other consumer — — — (4,362 ) — — Total $ — $ (1,139,597 ) $ — $ (376,995 ) $ 88,591 $ (465,854 ) Included in transfers to loans held for sale for the year ended December 31, 2019 is $573.9 million in multifamily loans from loans held-for-investment related to our completed Freddie Mac multifamily securitization which closed during the third quarter of 2019. The loans included in the securitization had a weighted average coupon of 3.79% and a weighted average term to initial reset of 3.5 years. The related mortgage servicing rights were also sold. In connection with the securitization, during the second quarter of 2019, we entered into interest rate swap agreements with a combined notional value of $543.4 million to offset variability in the fair value of the related loans as a result of changes in market interest rates. During the year ended December 31, 2019 , we realized a loss of $9.0 million related to these swap agreements due to a decline in interest rates since their execution and this was offset by the $8.9 million gross gain realized on the loans sold into the securitization. The swap agreements were closed at the time the loans were sold into the securitization. Non-Traditional Mortgage (NTM) Loans Our NTM portfolio is comprised of three interest only products: Green Loans, Interest Only loans and a small number of additional loans with the potential for negative amortization. As of December 31, 2019 and 2018 , the NTM loans totaled $600.7 million , or 10.1% of total loans, and $826.7 million , or 10.7% of total loans, respectively. The total NTM portfolio decreased by $226.1 million , or 27.3% , during the year ended December 31, 2019 . The following table presents the composition of the NTM portfolio as of the dates indicated: December 31, 2019 2018 ($ in thousands) Count Amount Percent Count Amount Percent Green Loans (HELOC) - first liens 69 $ 49,959 8.3 % 88 $ 67,729 8.2 % Interest only - first liens 376 545,371 90.8 % 519 753,061 91.1 % Negative amortization 9 3,027 0.5 % 11 3,528 0.4 % Total NTM - first liens 454 598,357 99.6 % 618 824,318 99.7 % Green Loans (HELOC) - second liens 7 2,299 0.4 % 10 2,413 0.3 % Total NTM - second liens 7 2,299 0.4 % 10 2,413 0.3 % Total NTM loans 461 $ 600,656 100.0 % 628 $ 826,731 100.0 % Total loans $ 5,951,885 $ 7,700,873 Percentage to total loans 10.1 % 10.7 % Green Loans Green Loans are single family residential first and second mortgage lines of credit with a linked checking account that allows all types of deposits and withdrawals to be performed. The loans are generally interest only for a 15 -year term with a balloon payment due at maturity. At December 31, 2019 and 2018 , Green Loans totaled $52.3 million and $70.1 million . At December 31, 2019 and 2018 , $1.5 million and $0 of our Green Loans were non-performing. As a result of their unique payment feature, Green Loans possess higher credit risk due to the potential for negative amortization; however, management believes the risk is mitigated through our loan terms and underwriting standards, including our policies on LTV ratios and our contractual ability to curtail loans when the value of the underlying collateral declines. We discontinued origination of the Green Loans products in 2011. Interest Only Loans Interest Only loans are primarily single family residential first mortgage loans with payment features that allow interest only payments in initial periods before converting to a fully amortizing loan. At December 31, 2019 and 2018 , Interest Only loans totaled $545.4 million and $753.1 million . At December 31, 2019 and 2018 , $11.5 million and $0 of the Interest Only loans were non-performing. Loans with the Potential for Negative Amortization Negative amortization loans totaled $3.0 million and $3.5 million at December 31, 2019 and 2018 . We discontinued origination of negative amortization loans in 2007. At December 31, 2019 and 2018 , none of the loans with the potential for negative amortization were non-performing. These loans pose a potentially higher credit risk because of the lack of principal amortization and potential for negative amortization; however, management believes the risk is mitigated through the loan terms and underwriting standards, including our policies on LTV ratios. Risk Management of Non-Traditional Mortgages We proactively manage the NTM portfolio by performing detailed analyses on the portfolio. We have determined that significant performance indicators for NTMs are loan to value (LTV) ratios and FICO scores. Accordingly, we manage credit risk in the NTM portfolio through periodic review of the loan portfolio that includes refreshing FICO scores on the Green Loans and HELOCs, as needed in conjunction with portfolio management, and ordering third party automated valuation models (AVMs). The loan review is designed to provide a method of identifying borrowers who may be experiencing financial difficulty before they actually fail to make a loan payment. Upon receipt of the updated FICO scores, an exception report is run to identify loans with a decrease in FICO score of 10% or more and/or a resulting FICO score of 620 or less. The loans are then further analyzed to determine if the risk rating should be downgraded, which will increase the reserves established for potential losses. For revolving lines of credit, we, based on the loan agreement and loan covenants of the particular loan, as well as applicable rules and regulations, could suspend the borrowing privileges or reduce the credit limit at any time we reasonably believe that the borrower will be unable to fulfill their repayment obligations under the agreement or certain other conditions are met. In many cases, the decrease in FICO score is the first indication that the borrower may have difficulty in making their future payment obligations. Our management meets at least quarterly to review the loans classified as special mention, substandard, or doubtful and determines whether a suspension or reduction in credit limit is warranted. If a line has been suspended and the borrower would like to have their credit privileges reinstated, they would need to provide updated financials showing their ability to meet their payment obligations. On the Interest Only loans, we project future payment changes to determine if there will be a material increase in the required payment and then monitors the loans for possible delinquency. Individual loans are monitored for possible downgrading of risk rating. Non-Traditional Mortgage Performance Indicators The following table presents our Green Loans first lien portfolio at December 31, 2019 by FICO scores that were obtained during the quarter ended December 31, 2019 , comparing to the FICO scores for those same loans that were obtained during the quarter ended December 31, 2018 : By FICO Scores Obtained During the Quarter Ended December 31, 2019 By FICO Scores Obtained During the Quarter Ended December 31, 2018 Change ($ in thousands) Count Amount Percent Count Amount Percent Count Amount Percent FICO score 800+ 13 $ 3,509 7.0 % 16 $ 10,617 15.7 % (3 ) $ (7,108 ) (66.9 )% 700-799 38 27,011 54.1 % 50 34,888 51.5 % (12 ) (7,877 ) (22.6 )% 600-699 10 12,400 24.8 % 16 14,098 20.8 % (6 ) (1,698 ) (12.0 )% <600 5 3,286 6.6 % 3 4,347 6.4 % 2 (1,061 ) (24.4 )% No FICO score 3 3,753 7.5 % 3 3,779 5.6 % — (26 ) (0.7 )% Total 69 $ 49,959 100.0 % 88 $ 67,729 100.0 % (19 ) $ (17,770 ) (26.2 )% LTV Ratios Green Interest Only Negative Amortization Total ($ in thousands) Count Amount Percent Count Amount Percent Count Amount Percent Count Amount Percent December 31, 2019 < 61 54 $ 37,804 75.6 % 231 $ 346,899 63.6 % 9 $ 3,027 100.0 % 294 $ 387,730 64.8 % 61-80 12 8,531 17.1 % 136 183,664 33.7 % — — — % 148 192,195 32.1 % 81-100 3 3,624 7.3 % 6 7,081 1.3 % — — — % 9 10,705 1.8 % > 100 — — — % 3 7,727 1.4 % — — — % 3 7,727 1.3 % Total 69 $ 49,959 100.0 % 376 $ 545,371 100.0 % 9 $ 3,027 100.0 % 454 $ 598,357 100.0 % December 31, 2018 < 61 69 $ 51,827 76.5 % 312 $ 495,930 65.9 % 11 $ 3,528 100.0 % 392 $ 551,285 66.9 % 61-80 17 13,476 19.9 % 201 245,568 32.6 % — — — % 218 259,044 31.4 % 81-100 2 2,426 3.6 % 5 7,441 1.0 % — — — % 7 9,867 1.2 % > 100 — — — % 1 4,122 0.5 % — — — % 1 4,122 0.5 % Total 88 $ 67,729 100.0 % 519 $ 753,061 100.0 % 11 $ 3,528 100.0 % 618 $ 824,318 100.0 % |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT, NET | PREMISES AND EQUIPMENT, NET The following table summarizes premises and equipment, net, as of the dates indicated: December 31, ($ in thousands) 2019 2018 Land $ 9,020 $ 9,020 Building and improvement 109,450 109,228 Furniture, fixtures, and equipment 48,923 41,576 Leasehold improvements 15,052 13,531 Construction in process 221 1,043 Total 182,666 174,398 Less accumulated depreciation (54,645 ) (45,004 ) Premises and equipment, net $ 128,021 $ 129,394 During the years ended December 31, 2019 , 2018 , and 2017 , we recorded an impairment loss of $1.5 million , $2.0 million , and $2.0 million on abandoned capitalized software projects. This impairment charge is included in All Other Expense on the Consolidated Statements of Operations. We recognized depreciation expense of $10.3 million , $10.9 million and $12.4 million for the years ended December 31, 2019 , 2018 , and 2017 . |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We have operating leases for corporate offices, branches and loan production offices. Our leases have remaining lease terms of one month to twenty years , some of which include options to extend the leases generally for periods of three years to five years . Our lease agreements do not contain any material residual value guarantees or material restrictive covenants . The components of lease expense were as follows: Year Ended December 31, ($ in thousands) 2019 Operating Lease Expense $ 6,622 Variable Lease Expense 356 Sublease Income (250 ) Total Lease Expense $ 6,728 Supplemental cash flow information related to leases was as follows: Year Ended December 31, ($ in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 6,989 ROU assets obtained in the exchange for lease liabilities: ROU assets obtained in exchange for lease liabilities $ 5,332 ROU assets recognized upon adoption of new lease standard $ 23,332 Supplemental balance sheet information related to leases was as follows: ($ in thousands) December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 22,540 Operating lease liabilities 23,692 December 31, 2019 Weighted-average remaining lease term (in years): Operating leases 6.69 years Weighted-average discount rate: Operating leases 2.92 % Maturities of operating lease liabilities at December 31, 2019 were as follows: ($ in thousands) Operating Leases 2020 $ 6,727 2021 4,965 2022 3,387 2023 2,578 2024 1,710 Thereafter 7,046 Total lease payments 26,413 Less: present value discount (2,721 ) Total Lease Liability $ 23,692 We lease certain equipment under finance leases. Finance lease obligations totaled $585 thousand and $1.1 million at December 31, 2019 and 2018 . The finance lease arrangements require monthly payments through 2023 . |
LEASES | LEASES We have operating leases for corporate offices, branches and loan production offices. Our leases have remaining lease terms of one month to twenty years , some of which include options to extend the leases generally for periods of three years to five years . Our lease agreements do not contain any material residual value guarantees or material restrictive covenants . The components of lease expense were as follows: Year Ended December 31, ($ in thousands) 2019 Operating Lease Expense $ 6,622 Variable Lease Expense 356 Sublease Income (250 ) Total Lease Expense $ 6,728 Supplemental cash flow information related to leases was as follows: Year Ended December 31, ($ in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 6,989 ROU assets obtained in the exchange for lease liabilities: ROU assets obtained in exchange for lease liabilities $ 5,332 ROU assets recognized upon adoption of new lease standard $ 23,332 Supplemental balance sheet information related to leases was as follows: ($ in thousands) December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 22,540 Operating lease liabilities 23,692 December 31, 2019 Weighted-average remaining lease term (in years): Operating leases 6.69 years Weighted-average discount rate: Operating leases 2.92 % Maturities of operating lease liabilities at December 31, 2019 were as follows: ($ in thousands) Operating Leases 2020 $ 6,727 2021 4,965 2022 3,387 2023 2,578 2024 1,710 Thereafter 7,046 Total lease payments 26,413 Less: present value discount (2,721 ) Total Lease Liability $ 23,692 We lease certain equipment under finance leases. Finance lease obligations totaled $585 thousand and $1.1 million at December 31, 2019 and 2018 . The finance lease arrangements require monthly payments through 2023 . |
SERVICING RIGHTS
SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
SERVICING RIGHTS | SERVICING RIGHTS The following table presents a composition of total income from servicing rights, which is reported in Loan Servicing Income on the Consolidated Statements of Operations for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Servicing fees for sold loans with servicing retained $ 1,291 $ 5,048 $ 19,642 Losses on the fair value and amortization of servicing rights (612 ) (1,328 ) (17,066 ) Total income from servicing rights (1) $ 679 $ 3,720 $ 2,576 (1) Includes $0 , $0 and $1.6 million in income from discontinued operations for the years ended December 31, 2019 , 2018 and 2017 . The following table presents a composition of servicing rights as of the dates indicated: December 31, ($ in thousands) 2019 2018 Mortgage servicing rights, at fair value $ 1,157 $ 1,770 SBA servicing rights, at cost 1,142 1,658 Total $ 2,299 $ 3,428 Mortgage loans sold with servicing retained are subserviced by a third party vendor. The unpaid principal balance of these loans at December 31, 2019 and 2018 was $150.6 million and $204.0 million and are not reported as assets. Custodial escrow balances maintained in connection with serviced loans were $198 thousand and $300 thousand at December 31, 2019 and 2018 . The unpaid principal balance of the loans underlying our SBA servicing rights at December 31, 2019 and 2018 was $75.2 million and $96.4 million . Mortgage Servicing Rights The value of retained MSRs is generally estimated based on a valuation from a third party provider that calculates the present value of the expected net servicing income from the portfolio based on key factors that include interest rates, prepayment assumptions, discount rate and estimated cash flows. The following table presents the key characteristics, inputs and economic assumptions used to estimate the fair value of the MSRs as of the dates indicated: December 31, ($ in thousands) 2019 2018 Fair value of retained MSRs $ 1,157 $ 1,704 Discount rate 13.00 % 13.00 % Constant prepayment rate 18.96 % 17.21 % Weighted-average life (in years) 4.41 4.93 The following table presents activity in the MSRs for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 1,770 $ 31,852 $ 76,121 Additions — — 12,127 Changes in fair value resulting from valuation inputs or assumptions (265 ) (1,155 ) (10,240 ) Sales of servicing rights (1) — (28,549 ) (39,345 ) Other—loans paid off (348 ) (378 ) (6,811 ) Balance at end of year $ 1,157 $ 1,770 $ 31,852 (1) Includes $37.8 million of MSRs sold as a part of discontinued operations for the year ended December 31, 2017. During the first half of 2018, we sold $28.5 million of MSRs on approximately $3.55 billion in unpaid principal balances of conventional agency mortgage loans for cash consideration of $30.1 million , subject to a prepayment protection provision and standard representations and warranties. The sale of MSRs resulted in a net loss of $2.3 million for the year ended December 31, 2018, primarily related to transaction costs, provision for early repayments of loans, and expected repurchase obligations under standard representations and warranties. SBA Servicing Rights The value of SBA servicing rights is estimated based on a present value of the expected net servicing income from the portfolio based on key factors that include interest rates, prepayment assumptions, discount rate and estimated cash flows. The following table presents the key characteristics, inputs and economic assumptions used to estimate the fair value of the SBA servicing rights as of the dates indicated: December 31, ($ in thousands) 2019 2018 Servicing rights $ 1,142 $ 1,658 Discount rate 8.75 % 9.50 % Constant prepayment rate 8.00 % 8.00 % Weighted-average life (in years) 3.75 4.29 The following table presents activity in the SBA servicing rights for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 1,658 $ 1,856 $ 1,496 Additions — 127 761 Amortization, including prepayments (493 ) (298 ) (318 ) Impairment (23 ) (27 ) (83 ) Balance at end of year $ 1,142 $ 1,658 $ 1,856 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
OTHER REAL ESTATE OWNED | OTHER REAL ESTATE OWNED The following table presents the activity in other real estate owned for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 672 $ 1,796 $ 2,502 Additions 276 672 3,086 Sales and net direct write-downs (803 ) (2,038 ) (3,556 ) Net change in valuation allowance (145 ) 242 (236 ) Balance at end of year $ — $ 672 $ 1,796 The following table presents the activity in the other real estate owned valuation allowance for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ — $ 242 $ 6 Additions 145 143 242 Recoveries — (90 ) — Net direct write-downs and removals from sale (145 ) (295 ) (6 ) Balance at end of year $ — $ — $ 242 The following table presents expenses related to foreclosed assets included in All Other Expense on the Consolidated Statements of Operations for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Net loss on sales $ 40 $ (13 ) $ (48 ) Operating expenses, net of rental income — (134 ) (51 ) Total $ 40 $ (147 ) $ (99 ) We did not provide loans to finance the purchase of our OREO properties during the years ended December 31, 2019 , 2018 or 2017 . |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET At December 31, 2019 and 2018 , goodwill totaled $37.1 million . The following table presents changes in the carrying amount of goodwill for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Goodwill balance at beginning of the year $ 37,144 $ 37,144 $ 39,244 Goodwill adjustments for discontinued operations — — (2,100 ) Goodwill balance at end of year $ 37,144 $ 37,144 $ 37,144 Accumulated impairment losses at end of year $ 2,100 $ 2,100 $ 2,100 During the year ended December 31, 2017, we discontinued our mortgage banking operations following the sale of our Banc Home Loans division and wrote off goodwill of $2.1 million against the gain on disposal of discontinued operations. We evaluate goodwill impairment as of August 31 each year, and more frequently if events or circumstances indicate that there may be impairment. We completed our annual goodwill impairment test as of August 31, 2019 and determined that no goodwill impairment existed. Core deposit intangibles are amortized over their useful lives ranging from four to ten years. As of December 31, 2019 , the weighted-average remaining amortization period for core deposit intangibles was approximately 4.7 years . The following table presents a summary of other intangible assets as of the dates indicated: ($ in thousands) Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2019 Core deposit intangibles $ 30,904 $ 26,753 $ 4,151 December 31, 2018 Core deposit intangibles $ 30,904 $ 24,558 $ 6,346 We recorded impairment on intangible assets of $0 , $0 , and $336 thousand for the years ended December 31, 2019 , 2018 , and 2017 . During the year ended December 31, 2017, we also wrote off a client relationship intangible of $246 thousand and a trade name intangible of $90 thousand . Aggregate amortization of intangible assets was $2.2 million , $3.0 million and $3.9 million for the years ended December 31, 2019 , 2018 , and 2017 . The following table presents estimated future amortization expenses as of December 31, 2019 : ($ in thousands) Estimated Future Amortization Expense 2020 $ 1,518 2021 1,082 2022 799 2023 517 2024 235 2025 and After — Total $ 4,151 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS The following table presents the components of deposits as of the dates indicated: December 31, ($ in thousands) 2019 2018 Noninterest-bearing deposits $ 1,088,516 $ 1,023,360 Interest-bearing deposits Interest-bearing demand deposits 1,533,882 1,556,410 Money market accounts 715,479 873,153 Savings accounts 885,246 1,265,847 Certificates of deposit of $250,000 or less 582,772 2,388,592 Certificates of deposit of more than $250,000 621,272 809,282 Total interest-bearing deposits 4,338,651 6,893,284 Total deposits $ 5,427,167 $ 7,916,644 The aggregate amount of deposits reclassified as loans, such as overdrafts, was $300 thousand and $477 thousand at December 31, 2019 and 2018 . We had California State Treasurer’s deposits of $300.0 million , and accrued interest on these deposits, in certificates of deposit of more than $250,000 at both December 31, 2019 and 2018 . The California State Treasurer’s deposits are subject to withdrawal based on the State’s periodic evaluations. At December 31, 2019 and 2018 , we provided letters of credit of $300.0 million and $330.0 million through the FHLB of San Francisco as collateral for the California State Treasurer’s deposits. In addition, we had other public deposits of $23.3 million and $18.6 million at December 31, 2019 and 2018 . As of December 31, 2019, we provided an additional $30.0 million letter of credit through the FHLB of San Fransisco as collateral for the remaining public deposits. Securities with carrying values of zero and $57.8 million were pledged as collateral for these deposits at December 31, 2019 and 2018 . The following table presents a summary of brokered deposits as of the dates indicated: December 31, ($ in thousands) 2019 2018 Interest-bearing demand deposits $ — $ 770 Money market accounts 10,000 164,505 Certificates of deposit of $250,000 or less — 1,543,269 Certificates of deposit of more than $250,000 — — Total brokered deposits $ 10,000 $ 1,708,544 The following table presents scheduled maturities of certificates of deposit as of December 31, 2019 : ($ in thousands) 2020 2021 2022 2023 2024 Total Certificates of deposit of $250,000 or less $ 527,920 $ 46,186 $ 4,300 $ 2,795 $ 1,571 $ 582,772 Certificates of deposit of more than $250,000 578,583 15,433 26,442 814 — 621,272 Total certificates of deposit $ 1,106,503 $ 61,619 $ 30,742 $ 3,609 $ 1,571 $ 1,204,044 |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS | FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS The following table presents the advances from the FHLB as of the dates indicated: ($ in thousands) December 31, December 31, Fixed rate: Outstanding balance $ 730,000 $ 805,000 Interest rates ranging from 1.82 % 1.61 % Interest rates ranging to 3.32 % 3.32 % Weighted average interest rate 2.66 % 2.58 % Variable rate: Outstanding balance 465,000 715,000 Weighted average interest rate 1.66 % 2.56 % The following table presents contractual maturities by year of the FHLB advances as of December 31, 2019 : ($ in thousands) 2020 2021 2022 2023 2024 and After Total Fixed rate $ 174,000 $ 145,000 $ 46,000 $ 45,000 $ 320,000 $ 730,000 Variable rate 465,000 — — — — 465,000 Total $ 639,000 $ 145,000 $ 46,000 $ 45,000 $ 320,000 $ 1,195,000 Each advance is payable at its maturity date. Advances paid early are subject to a prepayment penalty. At December 31, 2019 and December 31, 2018 , the Bank’s advances from the FHLB were collateralized by certain real estate loans with an aggregate unpaid principal balance of $3.05 billion and $4.05 billion . The Bank’s investment in capital stock of the FHLB of San Francisco totaled $32.3 million and $41.0 million at December 31, 2019 and December 31, 2018 . Based on this collateral the Bank was eligible to borrow an additional $1.02 billion at December 31, 2019 . The following table presents financial data of FHLB advances as of the dates or for the periods indicated: As of or For the Year Ended December 31, ($ in thousands) 2019 2018 2017 Weighted-average interest rate at end of year 2.27 % 2.57 % 1.60 % Average interest rate during the year 2.55 % 2.15 % 1.23 % Average balance $ 1,264,945 $ 1,627,608 $ 1,054,978 Maximum amount outstanding at any month-end $ 1,850,000 $ 2,030,000 $ 1,695,000 Balance at end of year $ 1,195,000 $ 1,520,000 $ 1,695,000 The Bank maintained a line of credit of $16.7 million from the Federal Reserve Discount Window, to which the Bank pledged securities with a carrying value of $23.9 million , with no outstanding borrowings at December 31, 2019 . The Bank maintained available unsecured federal funds lines with correspondent banks totaling $185.0 million , with no outstanding borrowings at December 31, 2019 . The Bank also maintained repurchase agreements and had no outstanding securities sold under agreements to repurchase at December 31, 2019 and December 31, 2018 . Availabilities and terms on repurchase agreements are subject to the counterparties' discretion and the pledging of additional investment securities. On June 30, 2017, we voluntarily terminated a line of credit of $75.0 million that was maintained at Banc of California, Inc. with an unaffiliated financial institution. The line had a maturity date of July 17, 2017 and a floating interest rate equal to a LIBOR rate plus 2.25% or the Prime Rate. We had $50.0 million of borrowings outstanding under the line, which were repaid in connection with the termination of the line. The proceeds of the line were used for working capital purposes. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The following table presents our long-term debt as of the dates indicated: December 31, 2019 2018 ($ in thousands) Par Value Unamortized Debt Issuance Cost and Discount Par Value Unamortized Debt Issuance Cost and Discount 5.25% senior notes due April 15, 2025 $ 175,000 $ (1,579 ) $ 175,000 $ (1,826 ) Total $ 175,000 $ (1,579 ) $ 175,000 $ (1,826 ) Senior Notes On April 6, 2015, we completed the issuance and sale of $175.0 million aggregate principal amount of our 5.25% senior notes due April 15, 2025 (the Senior Notes). Net proceeds after discount were approximately $172.8 million . The Senior Notes are our senior unsecured debt obligations and rank equally with all of our other present and future unsecured unsubordinated obligations. We make interest payments on the Senior Notes semi-annually in arrears. We may, at our option, on or after January 15, 2025 (i.e., 90 days prior to the maturity date of the Senior Notes), redeem the Senior Notes in whole at any time or in part from time to time, in each case on not less than 30 nor more than 60 days’ prior notice. The Senior Notes will be redeemable at a redemption price equal to 100% of the principal amount of the Senior Notes to be redeemed plus accrued and unpaid interest to the date of redemption. The Senior Notes were issued under the Senior Debt Securities Indenture, dated as of April 23, 2012 (the Base Indenture), as supplemented by the Second Supplemental Indenture dated as of April 6, 2015 (the Supplemental Indenture and together with the Base Indenture, the Indenture). The Indenture contains several covenants which, among other things, restrict our ability and the ability of our subsidiaries to dispose of or incur liens on the voting stock of certain subsidiaries and also contains customary events of default. We were in compliance with all covenants under the Indenture at December 31, 2019 . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table presents the components of income tax expense (benefit) of continuing operations for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Current income taxes: Federal $ 3,900 $ 5,720 $ (2,215 ) State 941 5,035 6,006 Total current income tax expense 4,841 10,755 3,791 Deferred income taxes: Federal (1,492 ) (4,418 ) (25,938 ) State 870 (1,493 ) (4,434 ) Total deferred income tax expense (622 ) (5,911 ) (30,372 ) Income tax expense (benefit) $ 4,219 $ 4,844 $ (26,581 ) The following table presents a reconciliation of the recorded income tax expense (benefit) of continuing operations to the amount of taxes computed by applying the applicable statutory Federal income tax rate of 21.0% to income from continuing operations before income taxes for the year ended December 31, 2019 and 2018 , and 35.0% for the year ended December 31, 2017 : Year Ended December 31, 2019 2018 2017 Computed expected income tax expense (benefit) at Federal statutory rate 21.0 % 21.0 % 35.0 % Increase (decrease) resulting from: Proportional amortization 12.6 % 4.3 % 5.1 % Other permanent book-tax differences (2.4 )% 0.4 % (2.1 )% State tax expense, net of federal benefit 5.1 % 5.9 % 3.7 % Income tax credits (investment tax credits and other) (21.3 )% (25.4 )% (149.5 )% Basis reduction in investment in alternative energy partnership 1.3 % 2.2 % 24.9 % Write-off of Goodwill for discontinued operations — % — % 2.7 % Bank owned life insurance policies (1.7 )% (1.0 )% (3.0 )% Equity compensation shortfall (windfall) tax impact 0.6 % (0.5 )% (7.0 )% Remeasurement from the Tax Cuts and Jobs Act — % — % (7.8 )% Reserve for uncertain tax positions (1.0 )% 0.1 % 1.9 % Other, net 0.9 % 3.3 % (2.7 )% Effective tax rates 15.1 % 10.3 % (98.8 )% Our effective tax rate of continuing operations for the year ended December 31, 2019 was higher than the effective tax rate of continuing operations for the year ended December 31, 2018 mainly due to the reduction in the recognition of tax credits on investments in alternative energy partnerships of $3.4 million , partially offset by tax expense from tax basis reduction of $362 thousand related to investments in alternative energy partnerships for the year ended December 31, 2019 , compared to $9.6 million of tax credits recognized, partially offset by tax expense from tax basis reduction of $1.0 million for the year ended December 31, 2018 . The reduction in tax credits received by the Bank is due to fewer investments in alternative energy partnerships. Our effective tax rate of continuing operations for the year ended December 31, 2018 was higher than the effective tax rate of continuing operations for the year ended December 31, 2017 mainly due to the reduction in the recognition of tax credits on investments in alternative energy partnerships of $9.6 million , partially offset by tax expense from tax basis reduction of $1.0 million related to investments in alternative energy partnerships for the year ended December 31, 2018 , compared to $38.2 million of tax credits recognized, partially offset by tax expense from tax basis reduction of $6.7 million for the year ended December 31, 2017 . The reduction in tax credits received by the Bank on the investments in alternative energy partnerships is due to less new equipment being placed into service by the investments. The higher effective tax rate was also partially offset by the decrease in the federal statutory tax rate from 35% to 21% as a result of the Tax Cuts and Jobs Act, which became effective on January 1, 2018. We use the flow-through income statement method to account for the tax credits earned on investments in alternative energy partnership. Under this method, the tax credits are recognized as a reduction to income tax expense and the initial book-tax difference in the basis of the investments are recognized as additional tax expense in the year they are earned. On December 22, 2017 , the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law in the United States. The legislation provides for significant changes to the IRC that impact corporate taxation requirements, such as the reduction of the federal income tax rate for corporations from 35% to 21% and changes or limitations to certain tax deductions. As of December 31, 2017, we remeasured our deferred tax assets and liabilities based on the reduced federal corporate income tax rate of 21% which resulted in an income tax benefit of $2.1 million to continuing operations. At December 31, 2017, we were able to make reasonable estimates of the tax effects on enactment of the Tax Cuts and Jobs Act and completed our analysis for the tax effects of enactment of the Tax Act on all items. At December 31, 2019 , we had $1.8 million of available unused federal net operating loss (NOL) carryforwards that may be applied against future taxable income through 2031 . We had available at December 31, 2019 , $8.6 million of unused state NOL carryforwards that may be applied against future taxable income through 2031 . Utilization of these NOL carryforwards are subject to annual limitations set forth in Section 382 of the U.S. Internal Revenue Code (IRC). The tax attributes acquired in the Gateway Bancorp acquisition are subject to an annual IRC Section 382 limitation of $474 thousand . In addition, as of December 31, 2019 and 2018 , we had income tax credit carryforwards of $ 30.5 million and $ 26.9 million . The tax credits, if unused, will expire in 2037 . The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated: December 31, ($ in thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 15,874 $ 18,813 Stock-based compensation expense 2,222 2,249 Accrued expenses 3,831 2,678 Reserve for loss on repurchased loans 1,826 736 Federal net operating losses 372 471 State net operating losses 725 759 Federal income tax credits 30,661 27,087 Unrealized loss on securities available-for-sale 4,968 10,046 Deferred loan fees 2,104 2,446 Amortization of intangible assets 1,248 1,101 Prior year state tax deduction 85 1,272 Lease liability 6,978 — Other deferred tax assets 2,835 3,456 Total deferred tax assets 73,729 71,114 Deferred tax liabilities: Investments in partnerships (7,455 ) (5,317 ) Mortgage servicing rights (341 ) (520 ) Deferred loan costs (6,623 ) (8,528 ) Depreciation on premises and equipment (5,796 ) (4,710 ) Right of use asset (6,638 ) — Other deferred tax liabilities (1,970 ) (2,635 ) Total deferred tax liabilities (28,823 ) (21,710 ) Valuation allowance — — Net deferred tax assets $ 44,906 $ 49,404 Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, no valuation allowance against net deferred tax assets at December 31, 2019 and 2018 . During the year ended December 31, 2019 , estimated taxable income before utilization of NOLs of $12.2 million allowed us to utilize $474 thousand of both federal and state NOLs (representing approximately 9.2% of the total NOLs included in our deferred tax assets), $1.9 million of federal low income housing tax credits, $350 thousand of state research credits, $369 thousand of state film tax credits, and $151 thousand of state low income housing tax credits. We believe that the utilization of tax credits in 2019 , along with our projection of future taxable income should be considered significant positive evidence that the deferred tax assets for income tax credits will be realized in future periods prior to its expiration dates. ASC 740-10-25 relates to the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740-10-25 prescribes a threshold and a measurement process for recognizing in the financial statements a tax position taken or expected to be taken in a tax return and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. We had unrecognized tax benefits of $977 thousand and $1.2 million at December 31, 2019 and 2018 . We do not believe that the unrecognized tax benefits will change materially within the next twelve months. As of December 31, 2019 , the total unrecognized tax benefit that, if recognized, would impact the effective tax rate was $767 thousand . At December 31, 2019 and 2018 , we had no accrued interest or penalties, respectively. The table below summarizes the activity related to our unrecognized tax benefits for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ 1,227 $ 1,047 $ — Increase related to prior year tax positions — — 867 Decrease related to prior year tax positions (101 ) — — Increase in current year tax positions 120 180 180 Decrease related to lapsing of statute of limitations (269 ) — — Ending balance $ 977 $ 1,227 $ 1,047 In the event we are assessed interest and/or penalties by federal or state tax authorities, such amounts will be classified on the consolidated financial statements as income tax expense. We are subject to U.S. federal income tax as well as income tax in multiple state jurisdictions. We are no longer subject to examination by U.S. federal taxing authorities for years before 2016. The statute of limitations for the assessment of California franchise taxes has expired for tax years before 2014 (other state income and franchise tax statutes of limitations vary by state). We account for qualified affordable housing investments under the proportional amortization method. The gross investments in these limited partnerships amounted to $49.3 million and the unfunded portion was $22.4 million at December 31, 2019 . The balances of these investments were $36.5 million and $20.0 million as of December 31, 2019 and 2018 . We utilized $6.2 million of tax deductions from these investments in 2019 , but $400 thousand of low income housing tax credits generated in 2019 were limited and not utilized in 2019 . Thus, there were $3.1 million and $2.7 million of unused tax credit carryforwards as of December 31, 2019 and 2018 . Investment book proportional amortization amounted to $3.5 million , $2.0 million and $1.4 million for the years ended December 31, 2019 , 2018 and 2017 . |
RESERVE FOR LOSS ON REPURCHASED
RESERVE FOR LOSS ON REPURCHASED LOANS | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking Activities [Abstract] | |
RESERVE FOR LOSS ON REPURCHASED LOANS | RESERVE FOR LOSS ON REPURCHASED LOANS The following table presents a summary of activity in the reserve for losses on repurchased loans for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 2,506 $ 6,306 $ 7,974 Initial provision for loan repurchases 4,563 126 1,622 Subsequent change in the reserve (660 ) (2,488 ) (1,812 ) Utilization of reserve for loan repurchases (208 ) (1,438 ) (2,238 ) Other adjustments — — 760 Balance at end of year $ 6,201 $ 2,506 $ 6,306 During the year ended December 31, 2019 , reserve for loss on repurchased loans increased by $3.7 million , including a $4.4 million initial provision for loan repurchases related to the Freddie Mac multifamily loan securitization completed in the third quarter of 2019. Refer to Note 21 for additional information. During the year ended December 31, 2018 , approximately $1.5 million of the decrease was due to portfolio run-off and repurchase settlement activities. We believe that our obligations for mortgage loan repurchases or loss reimbursements were adequately reserved for at December 31, 2019 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We use derivative instruments and other risk management techniques to reduce our exposure to adverse fluctuations in interest rates and foreign currency exchange rates in accordance with our risk management policies. Refer to Note 1 for additional information on our derivative instruments. The net gains (losses) relating to derivative instruments used for mortgage banking activities, which were included in Net Revenue on Mortgage Banking Activities in the Statement of Operations of discontinued operations, were $0 , $0 and $(12.4) million for the years ended December 31, 2019 , 2018 and 2017 . At December 31, 2019 and 2018 , we had no outstanding derivative instruments related to mortgage banking activities. During the years ended December 31, 2019 , 2018 and 2017 , changes in fair value on interest rate swaps and caps on loans, recorded through Other Income on the Consolidated Statements of Operations, were insignificant. The following table presents the notional amount and fair value of derivative instruments included in other assets and other liabilities on the Consolidated Statements of Financial Condition as of the dates indicated. Note 3 contains further disclosures pertaining to the fair value of derivatives. December 31, 2019 2018 ($ in thousands) Notional Amount Fair Value (1) Notional Amount Fair Value (1) Included in assets: Interest rate swaps and cap on loans $ 70,674 $ 3,445 $ 103,812 $ 1,534 Foreign exchange contracts 4,643 138 — — Total included in assets $ 75,317 $ 3,583 $ 103,812 $ 1,534 Included in liabilities: Interest rate swaps and caps on loans $ 70,674 $ 3,717 $ 103,812 $ 1,600 Foreign exchange contracts 4,643 136 — — Total included in liabilities $ 75,317 $ 3,853 $ 103,812 $ 1,600 (1) The fair value of interest rate swaps and cap on loans are included in other assets and accrued expenses and other liabilities, respectively, in the accompanying consolidated balance sheets. The fair value of interest rate swaps on mortgage-backed securities are include in the carrying value of mortgage-backed securities in the accompanying consolidated balance sheets. |
EMPLOYEE STOCK COMPENSATION
EMPLOYEE STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
EMPLOYEE STOCK COMPENSATION | EMPLOYEE STOCK COMPENSATION On May 31, 2018 (the Effective Date), our stockholders approved our 2018 Omnibus Stock Incentive Plan (2018 Omnibus Plan). As of the Effective Date, we discontinued granting awards under our 2013 Omnibus Incentive Plan (2013 Omnibus Plan) or any prior equity incentive plans and future stock-based compensation awards to our directors and employees will be made pursuant to the 2018 Omnibus Plan. The 2018 Omnibus Plan provides that the maximum number of shares that will be available for awards is 4,417,882 , which represents the number of shares that were available for new awards under the 2013 Omnibus Plan immediately prior to the Effective Date. As of December 31, 2019 , 3,674,033 shares were available for future awards under the 2018 Omnibus Plan. The Banc of California Capital and Liquidity Enhancement Employee Compensation Trust, a Maryland statutory trust (the SECT) was terminated in 2018. See Note 19 for additional information. Stock-based Compensation Expense The following table presents stock-based compensation expense and the related tax benefits for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Stock options $ (8 ) $ 174 $ 360 Restricted stock awards and units 5,047 6,391 11,732 Stock appreciation rights — — 42 Total stock-based compensation expense $ 5,039 $ 6,565 $ 12,134 Related tax benefits $ 1,481 $ 1,929 $ 5,078 The following table presents unrecognized stock-based compensation expense as of December 31, 2019 : ($ in thousands) Unrecognized Expense Weighted-Average Remaining Expected Recognition Period Stock option awards $ 4 0.5 years Restricted stock awards and restricted stock units 9,087 2.2 years Total $ 9,091 2.2 years Stock Options We have issued stock options to certain employees, officers and directors. Stock options are issued at the closing market price immediately before the grant date, and generally have a three to five year vesting period and contractual terms of seven to ten years. We recognize an income tax deduction upon exercise of a stock option to the extent taxable income is recognized by the option holder. In the case of a non-qualified stock option, the option holder recognizes taxable income based on the fair market value of the shares acquired at the time of exercise less the exercise price. The weighted-average estimated fair value per share options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions. Year Ended December 31, ($ in thousands, except per share data) 2019 2018 2017 Grant date fair value of options granted $ — $ — $ — Fair value of options vested $ 67 $ 160 $ 611 Total intrinsic value of options exercised $ 87 $ 96 $ 3,747 Cash received from options exercised $ — $ — $ 2,043 Weighted-average estimated fair value per share of options granted $ — $ — $ — The following table represents stock option activity and weighted-average exercise price per share at and for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year 186,973 $ 13.54 210,973 $ 13.99 968,591 $ 13.95 Exercised (74,836 ) $ 13.41 (24,000 ) $ 17.50 (488,281 ) $ 12.53 Forfeited (49,616 ) $ 13.34 — $ — (269,337 ) $ 16.49 Expired — $ — — $ — — $ — Outstanding at end of year 62,521 $ 13.85 186,973 $ 13.54 210,973 $ 13.99 Exercisable at end of year 60,273 $ 13.86 123,125 $ 13.67 105,541 $ 14.68 The following table represents changes in unvested stock options and related information at and for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year 63,848 $ 13.30 105,432 $ 13.31 518,936 $ 15.04 Granted — $ — — $ — — $ — Vested (17,600 ) $ 13.26 (41,584 ) $ 13.32 (174,833 ) $ 14.10 Forfeited (44,000 ) $ 13.29 — $ — (238,671 ) $ 16.50 Outstanding at end of year 2,248 $ 13.75 63,848 $ 13.30 105,432 $ 13.31 The following table presents a summary of stock options outstanding as of December 31, 2019 : Options Outstanding Options Exercisable ($ in thousands) Number of Shares Intrinsic Value Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life Number of Shares Intrinsic Value Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life $10.90 to $11.87 5,508 $ 22 $ 10.90 4.5 years 5,508 $ 22 $ 10.90 4.5 years $11.88 to $12.85 — — $ — 0.0 years — — $ — 0.0 years $12.86 to $13.83 40,848 58 $ 13.48 5.4 years 38,600 55 $ 13.46 5.4 years $13.84 to $14.81 — — $ — 0.0 years — — $ — 0.0 years $14.82 to $15.82 16,165 — $ 15.81 1.5 years 16,165 — $ 15.81 1.5 years Total 62,521 $ 80 $ 13.85 4.3 years 60,273 $ 77 $ 13.86 4.3 years Restricted Stock Awards and Restricted Stock Units We also have granted restricted stock awards and restricted stock units to certain employees, officers and directors. The restricted stock awards and units are valued at the closing price of our stock on the measurement date. The restricted stock awards and units fully vest after a specified period (generally ranging from one to five years ) of continued service from the date of grant plus, in some cases, the satisfaction of performance conditions. These performance targets include conditions relating to our profitability and regulatory standing. The actual amounts of stock released upon vesting will be determined by the Compensation Committee of our Board of Directors upon the Committee's certification of the satisfaction of the target level of performance. We recognize an income tax deduction in an amount equal to the taxable income reported by the holders of the restricted stock, generally upon vesting or, in the case of restricted stock units, when settled. The following table presents unvested restricted stock awards and restricted stock units activity for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Price per Share Number of Shares Weighted-Average Price per Share Number of Shares Weighted-Average Price per Share Outstanding at beginning of year 833,601 $ 18.96 911,633 $ 18.73 1,417,144 $ 16.16 Granted (1) 796,547 $ 14.40 650,676 $ 18.89 859,722 $ 20.81 Vested (2) (273,904 ) $ 18.37 (415,994 ) $ 18.65 (854,031 ) $ 15.95 Forfeited (3) (432,762 ) $ 17.93 (312,714 ) $ 18.54 (511,202 ) $ 17.80 Outstanding at end of year 923,482 $ 15.74 833,601 $ 18.96 911,633 $ 18.73 (1) The number of granted shares includes aggregate performance-based shares/units of 174,935 , 306,801 and 152,709 for the years ended December 31, 2019 , 2018 and 2017 . (2) The number of vested shares includes aggregate performance-based shares/units of 37,572 , 44,817 and 10,000 for the years ended December 31, 2019 , 2018 and 2017 (3) The number of forfeited shares includes aggregate performance-based shares/units of 233,999 , 86,936 and 107,545 for the years ended December 31, 2019 , 2018 and 2017 . Stock Appreciation Rights On August 21, 2012, we granted to Steven A. Sugarman, our then- (now former) chief executive officer a ten -year stock appreciation right (SAR) for 500,000 shares (Initial SAR) of our common stock with a base price of $12.12 per share with one-third of the Initial SAR vesting on the grant date and the remaining amount vesting over a period of 2 years . The Initial SAR entitles Mr. Sugarman to dividend equivalent rights and originally contained an anti-dilution provision pursuant to which additional SARs (Additional SARs) were issued to Mr. Sugarman upon certain stock issuances by us, as described below. On March 24, 2016, concurrent with entering into a new employment agreement with us, Mr. Sugarman entered into a letter agreement that eliminated this anti-dilution provision of the Initial SAR. Under the terms of the March 24, 2016 letter agreement, in consideration of the removal of the anti-dilution provision of the Initial SAR, we granted Mr. Sugarman a onetime performance based restricted stock award with an aggregate grant date fair market value of $5.0 million , which would vest in full on March 24, 2017, but was also subject to restrictions on sale or transfer through March 24, 2021. In connection with Mr. Sugarman’s resignation as our chief executive officer on January 23, 2017, all unvested equity awards (including any unvested SARs) immediately vested and became free of all restrictions. In addition, the SARs continued (and continue) to remain exercisable for their full terms, with dividend equivalent rights of the SARs also continuing in effect during their full terms. As described more fully in the SAR agreement, the original anti-dilution provision of the Initial SAR did not apply to certain issuances of our common stock for compensatory purposes, but did apply to certain other issuances of our common stock, including the issuances of common stock to raise capital. Pursuant to this anti-dilution provision, we issued Additional SARs to the former chief executive officer with a base price determined as of each date of issuance, but otherwise with the same terms and conditions as the Initial SAR, except for an Additional SAR granted relating to a public offering of our tangible equity units (TEUs) on May 21, 2014 that has different terms (Additional TEU SAR). Regarding the Additional TEU SAR, each TEU contained a Purchase Contract that could be settled in shares of our voting common stock based on a maximum settlement rate (subject to adjustment) and a minimum settlement rate (subject to adjustment). The Additional TEU SAR was calculated using the initial maximum settlement rate and, therefore, the number of shares underlying the Additional TEU SAR was subject to adjustment and forfeiture if the aggregate number of shares of stock issued in settlement of any single Purchase Contract was less than the initial maximum settlement rate. By its original terms, the Additional TEU SAR was to vest in full on May 15, 2017 or accelerate in vesting upon early settlement of a Purchase Contract at the holders' option, and until it vested, the Additional TEU SAR was to have no dividend equivalent rights and the shares underlying the Additional TEU SAR were subject to forfeiture. The following table represents SARs activity and the weighted-average exercise price per share for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year 1,559,012 $ 11.60 1,559,012 $ 11.60 1,559,047 $ 11.60 Granted — $ — — $ — — $ — Exercised — $ — — $ — — $ — Forfeited — $ — — $ — (35 ) $ 10.09 Outstanding at end of year 1,559,012 $ 11.60 1,559,012 $ 11.60 1,559,012 $ 11.60 Exercisable at end of year 1,559,012 $ 11.60 1,559,012 $ 11.60 1,559,012 $ 11.60 The following table represents changes in unvested SARs and related information as of and for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year — $ — — $ — 8,069 $ 10.09 Granted — $ — — $ — — $ — Vested — $ — — $ — (8,034 ) $ 10.09 Forfeited — $ — — $ — (35 ) $ 10.09 Outstanding at end of year — $ — — $ — — $ — |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We have a 401(k) plan (the 401(k) Plan) whereby all employees generally can participate in the 401(k) Plan. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. We make an enhanced safe-harbor matching contribution equal to 100% of the first 4% of the employee’s deferral rate not to exceed 4% of the employee’s compensation. The safe-harbor matching contribution is fully vested by the participant when made. For the years ended December 31, 2019 , 2018 and 2017 , expense attributable to 401(k) plans amounted to $2.1 million , $2.1 million and $3.1 million . We have adopted a deferred compensation plan (the DC Plan) under Section 401 of the IRC. The purpose of this DC Plan is to provide specified benefits to a select group of management and highly compensated employees. Participants may elect to defer compensation, which accrues interest quarterly at the Prime Rate as of the last business day of the prior quarter. We do not make contributions to the DC Plan. Employee Equity Ownership Plan We established the Employee Equity Ownership Plan (EEOP) effective October 15, 2013 for the benefit of employees. The EEOP is administered under our 2013 Omnibus Stock Incentive Plan and the awards thereunder were issued upon the terms and conditions and subject to the restrictions of our 2013 Omnibus Stock Incentive Plan. The EEOP provided that employees eligible to receive restricted stock awards or units under the EEOP are any employees who are not otherwise given shares pursuant to any other Company-sponsored equity program, with grants generally vesting in five equal annual installments beginning on the first anniversary of the date of grant. After evaluation of all then-current equity plans, we discontinued the EEOP effective January 1, 2018. On April 2, 2018, all final stock awards due under the EEOP were granted to eligible employees, including employees who were eligible for a five-year service award during 2018 calendar year. We issued 72,561 and 35,016 shares with respect to restricted stock awards and units under the EEOP for the years ended December 31, 2018 and 2017 . At December 31, 2019 , there were 36,588 unvested shares of restricted stock and restricted stock units with an unrecognized stock-based compensation expense of $691 thousand |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Warrants On November 1, 2010 , we issued warrants to COR Advisors LLC (COR Advisors), an entity controlled by Steven A. Sugarman, who became a director of ours on that date and later became our President and Chief Executive Officer (and resigned from those and all other positions with us and the Bank on January 23, 2017). The warrants entitled COR Advisors to purchase up to 1,395,000 shares of non-voting common stock at an exercise price of $11.00 per share, subject to certain adjustments to the number of shares underlying the warrants as well as certain adjustments to the warrant exercise price as applicable. On August 3, 2011, COR Advisors transferred warrants for the right to purchase 960,000 shares of non-voting common stock to COR Capital Holdings LLC (COR Capital Holdings), an entity controlled by Steven A. Sugarman, and transferred warrants for the right to purchase the remaining 435,000 shares of non-voting common stock to Jeffrey T. Seabold, our then- (now former) Executive Vice President and Management Vice-Chair. On August 22, 2012, COR Capital Holdings transferred its warrants for the right to purchase 960,000 shares of non-voting common stock to a living trust for Steven A. Sugarman and his spouse. These warrants vested in tranches, with each tranche being exercisable for 5 years after the tranche's vesting date. With respect to the warrants transferred by COR Capital Holdings to the living trust for Steven A. Sugarman and his spouse, warrants to purchase 50,000 shares vested on October 1, 2011 and the remainder vested in seven equal quarterly installments beginning January 1, 2012 and ending on July 1, 2013. With respect to the warrants transferred by COR Advisors to Mr. Seabold, warrants to purchase 95,000 shares vested on January 1, 2011; warrants to acquire 130,000 shares vested on each of April 1 and July 1, 2011, and warrants to purchase 80,000 shares vested on October 1, 2011. On August 17, 2016, the living trust for Steven A. Sugarman and his spouse transferred warrants to purchase 480,000 shares to Steven A. Sugarman's brother, Jason Sugarman. These transferred warrants were last exercisable on September 30, 2016, December 31, 2016, March 31, 2017, June 30, 2017 and September 30, 2017 for 50,000 , 130,000 , 130,000 , 130,000 , and 40,000 shares. On August 17, 2016, Jason Sugarman irrevocably elected to fully exercise each tranche of the transferred warrants. Under his irrevocable election, Jason Sugarman directed that each such exercise would occur on the last exercisable date for each tranche using a cashless (net) exercise method and also directed that each exercise be for either non-voting common stock, or, if allowed under the terms of the warrant, for voting common stock. At September 30, 2016, December 31, 2016, March 31, 2017, June 30, 2017 and September 30, 2017, in accordance with Jason Sugarman’s irrevocable election, warrants to purchase 50,000 , 130,000 , 130,000 , 130,000 , and 40,000 shares have been exercised, resulting in issuances of 25,051 and 64,962 shares of our voting common stock and 75,875 , 77,376 and 23,237 shares of our non-voting common stock. Based on automatic adjustments to the original $11.00 exercise price, the exercise price at the time of exercise was $8.80 , $8.72 , $8.66 , $8.61 and $8.55 per share. As a result of these exercises, Jason Sugarman no longer holds any warrants to purchase shares of our stock. During the three months ended June 30, 2018, based on additional documentation received from Jason Sugarman, it was determined that Jason Sugarman was eligible to receive voting common stock under the terms of the transferred warrant for the exercises that previously occurred on March 31, 2017, June 30, 2017 and September 30, 2017. Accordingly, on June 6, 2018, an aggregate of 176,488 shares of our non-voting common stock owned by Jason Sugarman were canceled and he was issued 176,488 shares of our voting common stock in lieu thereof. On August 16, 2016, the living trust for Steven A. Sugarman and his spouse irrevocably elected to exercise its warrants to purchase 480,000 shares. Under its irrevocable election, the living trust for Steven A. Sugarman and his spouse directed that each such exercise would occur on the last exercisable date for each tranche of such warrants (September 30, 2017, December 31, 2017, March 31, 2018 and June 30, 2018 with respect to 90,000 , 130,000 , 130,000 , and 130,000 shares) using a cashless net exercise method and also directed that each exercise be for non-voting common stock. On September 30, 2017, in accordance with its irrevocable election, warrants to purchase 90,000 shares were exercised by the living trust for Steven A. Sugarman and his spouse, resulting in the issuance of 52,284 shares of our non-voting common stock. Based on an automatic adjustment to the original $11.00 exercise price, the exercise price at the time of exercise was $8.55 per share. On each of December 27, 2017, March 30, 2018 and June 29, 2018, we were notified that the living trust for Steven A. Sugarman and his spouse purportedly transferred warrants with respect to 130,000 shares, with a last exercisable date of December 31, 2017, 130,000 shares with a last exercisable date of March 31, 2018 and 130,000 shares with a last exercisable date of June 30, 2018, to a separate entity, Sugarman Family Partners. In accordance with the irrevocable election to exercise previously submitted by the living trust for Steven A. Sugarman and his spouse, we considered these transferred warrants to have been exercised with respect to 130,000 shares on December 31, 2017, 130,000 shares on March 31, 2018 and 130,000 shares on June 30, 2018, resulting in the issuance of 77,413 , 72,159 , and 73,543 shares of our non-voting common stock, respectively, on December 31, 2017, April 2, 2018 and July 2, 2018. Based on an automatic adjustment to the original $11.00 exercise price, the exercise price at the time of exercise was $8.49 per share, $8.44 per share and $8.38 per share. As a result of these exercises, none of these warrants remain outstanding. On December 8, 2015, March 9, 2016, June 17, 2016, and September 30, 2016, Mr. Seabold exercised his warrants with respect to 95,000 , 130,000 , 130,000 , and 80,000 shares, using cashless (net) exercises, resulting in a net number of shares of non-voting common stock issued in the aggregate of 37,355 , 53,711 , 70,775 , and 40,081 . Based on automatic adjustments to the original $11.00 exercise price, the exercise price at the time of exercise was $9.04 , $8.90 , $8.84 , and $8.80 per share. As a result of these exercises, Mr. Seabold no longer holds any warrants to purchase shares of our stock. Under the terms of the respective warrants, the warrants were exercisable for voting common stock in lieu of non-voting common stock following a transfer of the warrants under certain circumstances described in the terms of the warrants. The terms and issuance of the foregoing warrants were approved by our stockholders at a special meeting held on October 25, 2010. Preferred Stock We are authorized to issue 50,000,000 shares of preferred stock with par value of $0.01 per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference but generally have no voting rights. All of our outstanding shares of preferred stock have a $1,000 per share liquidation preference. The following table presents our total outstanding preferred stock as of dates indicated: December 31, 2019 2018 ($ in thousands) Shares Authorized and Outstanding Liquidation Preference Carrying Value Shares Authorized and Outstanding Liquidation Preference Carrying Value Series D 7.375% non-cumulative perpetual 96,629 $ 96,629 $ 93,162 115,000 $ 115,000 $ 110,873 Series E 7.00% non-cumulative perpetual 100,477 100,477 96,663 125,000 125,000 120,255 Total 197,106 $ 197,106 $ 189,825 240,000 $ 240,000 $ 231,128 On August 23, 2019, we completed a partial tender offer for depositary shares (Series D Depositary Shares), each representing a 1/40 th interest in a share of Series D Preferred Stock, liquidation amount of $1,000 per share of Series D Preferred Stock, resulting in the repurchase of 734,823 outstanding Series D Depository Shares and the related retirement of 18,371 outstanding shares of Series D Preferred Stock. The repurchase price aggregated to $19.4 million . The $1.7 million difference between the consideration paid and the carrying value of the Series D Preferred Stock was reclassified to retained earnings and resulted in a reduction to net income allocated to common stockholders. On August 23, 2019, we completed a partial tender offer for depositary shares (Series E Depositary Shares), each representing a 1/40 th interest in a share of Series E Preferred Stock, liquidation amount of $1,000 per share of Series E Preferred Stock, resulting in the repurchase of 980,928 outstanding Series E Depository Shares and the related retirement of 24,523 outstanding shares of Series E Preferred Stock. The repurchase price aggregated $26.6 million . The $3.4 million difference between the consideration paid and the carrying value of the Series E Preferred Stock was reclassified to retained earnings and resulted in a reduction to net income allocated to common stockholders. On September 17, 2018, we completed the redemption of all 40,250 outstanding shares of our 8.00 percent Series C Non-Cumulative Perpetual Preferred Stock (Series C Preferred Stock), which resulted in the simultaneous redemption of all 1,610,000 of the outstanding related depositary shares (Series C Depository Shares), each representing a 1/40 th interest in a share of Series C Preferred Stock, at a redemption price of the liquidation amount of $1,000 per share of Series C Preferred Stock (equivalent to $25 per Series C Depository Share). The redemption price represented an aggregate amount of $40.3 million and did not accrue interest on or after the regularly scheduled dividend payment date of September 15, 2018. Deferred stock issuance costs of $2.3 million originally recorded as a reduction to preferred stock upon issuance of the Series C Preferred Stock were reclassified to retained earnings and resulted in a reduction to net income allocated to common stockholders. Stock Employee Compensation Trust On August 3, 2016, we established the SECT pursuant to the Trust Agreement, dated as of August 3, 2016 (the SECT Trust Agreement), between us and Newport Trust Company, as trustee (as successor trustee to Evercore Trust Company, N.A.) (the SECT Trustee) to fund employee compensation and benefit obligations of ours using shares of our common stock. On August 3, 2016, we sold 2,500,000 shares of voting common stock to the SECT at a purchase price of $21.45 per share (the closing price of the voting common stock on August 2, 2016), or $53.6 million in the aggregate, in exchange for a cash amount equal to the aggregate par value of the shares and a promissory note for the balance of the purchase price. The SECT was to terminate on January 1, 2032 unless terminated earlier in accordance with the SECT Trust Agreement, including by our Board of Directors. On December 28, 2017, in order to effectuate the early termination of the SECT, as authorized by our Board of Directors, we purchased from the SECT all 2,500,000 shares of voting common stock held by the SECT at a purchase price of $21.00 per share (the closing price per share of the voting common stock on December 27, 2017), or $52.5 million in the aggregate (the SECT Termination Sale). Following the SECT Termination Sale, such shares of voting common stock were canceled. Of the proceeds from the SECT Termination Sale, $2.7 million was to be utilized for the purpose of funding obligations under certain of our benefit plans to which 126,517 shares of voting common stock had been allocated prior to the SECT Termination Sale, and $49.8 million was remitted by the SECT Trustee to us, which was deemed to be in satisfaction and termination of all remaining obligations of the SECT under the promissory note, which had an outstanding principal balance of $50.9 million plus accrued interest. During the quarter ended September 30, 2018, the remaining cash balance in the SECT, including the aforementioned proceeds of $2.7 million from the SECT Termination Sale, was disbursed from the SECT to us to fund our 401(k) plan as well as health and welfare plans. The termination of the SECT was completed upon the filing of a certificate of cancellation with the Maryland Department of Assessments and Taxation on September 24, 2018. Change in Accumulated Other Comprehensive Income (Loss) Our AOCI includes unrealized gain (loss) on securities available-for-sale. Changes to AOCI are presented net of the tax effect as a component of stockholders' equity. Reclassifications from AOCI are recorded on the Consolidated Statements of Operations either as a gain or loss. The following table presents changes to AOCI for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Unrealized (loss) gain on securities available-for -sale Balance at beginning of period $ (24,117 ) $ 5,227 $ (9,042 ) Unrealized (loss) gain arising during the period 11,734 (40,476 ) 16,334 Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale — — 21,990 Reclassification adjustment from other comprehensive income 4,852 (5,532 ) (14,768 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income 731 3,252 — Tax effect of current period changes (5,100 ) 12,916 (9,287 ) Total changes, net of taxes 12,217 (29,840 ) 14,269 Reclassification of stranded tax effects to retained earnings — 496 — Balance at end of period $ (11,900 ) $ (24,117 ) $ 5,227 |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of December 31, 2019 , the Company and the Bank met all capital adequacy requirements to which they were then subject. With respect to the Bank, prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and a capital restoration plan is required. At December 31, 2019 , the most recent regulatory notification categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. In addition to the minimum CET1, Tier 1, total capital and leverage ratios, the Company and the Bank must maintain a capital conservation buffer consisting of additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. Inclusive of the fully phased-in capital conservation buffer, the common equity Tier 1 capital, Tier 1 risk-based capital and total risk-based capital ratio minimums are 7.0%, 8.5% and 10.5%, respectively. The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Minimum Capital Requirements Minimum Required to Be Well-Capitalized Under Prompt Corrective Action Provisions ($ in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Banc of California, Inc. Total risk-based capital $ 921,892 15.90 % $ 463,950 8.00 % N/A N/A Tier 1 risk-based capital 860,179 14.83 % 347,963 6.00 % N/A N/A Common equity tier 1 capital 670,355 11.56 % 260,972 4.50 % N/A N/A Tier 1 leverage 860,179 10.89 % 315,825 4.00 % N/A N/A Banc of California, NA Total risk-based capital $ 1,007,762 17.46 % $ 461,843 8.00 % $ 577,304 10.00 % Tier 1 risk-based capital 946,049 16.39 % 346,382 6.00 % 461,843 8.00 % Common equity tier 1 capital 946,049 16.39 % 259,787 4.50 % 375,247 6.50 % Tier 1 leverage 946,049 12.02 % 314,707 4.00 % 393,383 5.00 % December 31, 2018 Banc of California, Inc. Total risk-based capital $ 977,342 13.71 % $ 570,368 8.00 % N/A N/A Tier 1 risk-based capital 910,528 12.77 % 427,776 6.00 % N/A N/A Common equity tier 1 capital 679,400 9.53 % 320,832 4.50 % N/A N/A Tier 1 leverage 910,528 8.95 % 407,145 4.00 % N/A N/A Banc of California, NA Total risk-based capital $ 1,120,122 15.71 % $ 570,382 8.00 % $ 712,977 10.00 % Tier 1 risk-based capital 1,053,308 14.77 % 427,786 6.00 % 570,382 8.00 % Common equity tier 1 capital 1,053,308 14.77 % 320,840 4.50 % 463,435 6.50 % Tier 1 leverage 1,053,308 10.36 % 406,694 4.00 % 508,368 5.00 % Dividend Restrictions The Company’s principal source of funds for dividend payments is dividends received from the Bank. Federal banking laws and regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, in the case of the Bank, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. However, any dividend granted by the Bank would be limited by the need to maintain its well capitalized status plus the capital conservation buffer in order to avoid additional dividend restrictions. In addition to dividends on our preferred stock, we declared and paid dividends on our common stock of $0.13 , $0.06 , $0.06 and $0.06 per share for the quarters ended March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019. During April 2019, our Board of Directors approved a plan to reduce the quarterly dividend from $0.13 to $0.06 per common share. The Bank paid dividends of $142.5 million to Banc of California, Inc. during the year ended December 31, 2019 . On August 23, 2019, we completed the repurchase of Series D and E Series preferred stock for total consideration of $19.4 million and $26.6 million , respectively. In connection with these repurchases, the Bank paid a dividend of $88.5 million to Banc of California, Inc. Because the dividend exceeded the Bank’s eligible amount pursuant to applicable law, the dividend required OCC approval. Any other dividends from the Bank to the holding company in excess of the statutory eligible amount will require prior OCC approval. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES We hold ownership interests in alternative energy partnerships and qualified affordable housing partnerships, and held an interest in the SECT prior to the termination of the SECT. Refer to Note 1 for additional detail on variable interest entities. Unconsolidated VIEs Multifamily Securitization During the third quarter of 2019, we transferred $573.5 million of multifamily loans, through a two-step process, to a third-party depositor which placed the multifamily loans into a third-party trust (a VIE) that issued structured pass-through certificates to investors. The transfer of these loans was accounted for as a sale for financial reporting purposes, in accordance with ASC 860. We determined that we are not the primary beneficiary of this VIE as we do not have the power to direct the activities that will have the most significant economic impact on the entity. Our continuing involvement in this securitization is limited to customary obligations associated with the securitization of loans, including the obligation to cure, repurchase or substitute loans in the event of a material breach in representations. Additionally, we have the obligation to guarantee credit losses up to 12 percent of the aggregate unpaid principal balances at cut-off date of the securitization. This obligation is supported by a $68.8 million letter of credit between Freddie Mac and the FHLB. The maximum loss exposure that would be absorbed by us in the event that all of the assets in the securitization trust are deemed worthless is $68.8 million , which represents the aforementioned obligation to guarantee credit losses up to 12 percent . We believe that the loss exposure on our multifamily securitization is reduced by both loan-to-value ratios of the underlying collateral balances and the overcollateralization that exists within the securitization trust. At December 31, 2019 , we have a $4.4 million repurchase liability related to this VIE which is available to absorb losses. Alternative Energy Partnerships We invest in certain alternative energy partnerships (limited liability companies) formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits (energy tax credits). These entities were formed to invest in newly installed residential and commercial solar leases and power purchase agreements. As a result of our investments, we have the right to certain investment tax credits and tax depreciation benefits (recognized on the flow through and income statement method in accordance with ASC 740), and to a lesser extent, cash flows generated from the installed solar systems leased to individual consumers for a fixed period of time. While our interest in the alternative energy partnerships meets the definition of a VIE in accordance with ASC 810, we have determined that we are not the primary beneficiary because we do not have the power to direct the activities that most significantly impact the economic performance of the entities including operational and credit risk management activities. As we are not the primary beneficiary, we did not consolidate the entities. We use the Hypothetical Liquidation at Book Value (HLBV) method to account for these investments in energy tax credits as an equity investment under ASC 970-323-25-17. Under the HLBV method, an equity method investor determines its share of an investee's earnings by comparing its claim on the investee's book value at the beginning and end of the period, assuming the investee were to liquidate all assets at their U.S. GAAP amounts and distribute the resulting cash to creditors and investors under their respective priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is our share of the earnings or losses from the equity investment for the period. To account for the tax credits earned on investments in alternative energy partnerships, we use the flow-through income statement method. Under this method, the tax credits are recognized as a reduction to income tax expense and the initial book-tax differences in the basis of the investments are recognized as additional tax expense in the year they are earned. During the years ended December 31, 2019 , 2018 and 2017 , we funded $806 thousand , $0 and $55.4 million , respectively, and recognized a loss on investment of $1.7 million , $5.0 million and $30.8 million , respectively, through our HLBV application. As a result, the balance of our investments was $29.3 million and $29.0 million at December 31, 2019 and 2018 . During the year ended December 31, 2017, we completed the funding on one of our investments. While we had committed $100.0 million to the investment, the amount that was drawn down and funded by us was $62.8 million and the remaining $37.2 million of the commitment was canceled. During the three months ended June 30, 2018, we reached the completion deadline of a second investment. While we had committed $100.0 million to that investment, the amount that was drawn down and funded by us was $49.9 million , of which $1.0 million was unused and returned to us, and the remaining $50.1 million of commitment was canceled. During the year ended 2019, we funded $806 thousand of our $4.0 million aggregate funding commitment into a third alternative energy partnership. From an income tax benefit perspective, we recognized investment tax credits of $3.4 million , $9.6 million and $38.2 million , as well as income tax benefits relating to the recognition of our loss through our HLBV application during the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure for the alternative energy partnerships as of the dates indicated: December 31, ($ in thousands) 2019 2018 Cash $ 4,224 $ 3,012 Equipment, net of depreciation 248,920 259,464 Other assets 6,301 4,470 Total unconsolidated assets $ 259,445 $ 266,946 Total unconsolidated liabilities $ 7,143 $ 6,269 Maximum loss exposure $ 32,525 $ 28,988 The maximum loss exposure that would be absorbed by us in the event that all of the assets in the alternative energy partnerships are deemed worthless is $32.5 million , which is our recorded investment amount at December 31, 2019 . We believe that the loss exposure on our investments is reduced considering our return on our investment is provided not only by the cash flows of the underlying client leases and power purchase agreements, but also through the significant tax benefits, including federal tax credits generated from the investments. In addition, the arrangements include a transition manager to support any transition of the solar company sponsor whose role includes that of the servicer and operation and maintenance provider, in the event the sponsor would be required to be removed from its responsibilities (e.g., bankruptcy, breach of contract, etc.), thereby further limiting our exposure. Qualified Affordable Housing Partnerships We invest in limited partnerships that operate qualified affordable housing projects. The returns on these investments are generated primarily through allocated Federal tax credits and other tax benefits. In addition, these investments contribute to our compliance with the Community Reinvestment Act. These limited partnerships are considered to be VIEs, because either (i) they do not have sufficient equity investment at risk or (ii) the limited partners with equity at risk do not have substantive kick-out rights through voting rights or substantive participating rights over the general partner. As a limited partner, we are not the primary beneficiary because the general partner has the ability to direct the activities of the VIEs that most significantly impact their economic performance. Therefore, we do not consolidate these partnerships. We funded $9.1 million , $4.1 million and $4.5 million into these partnerships during the years ended December 31, 2019 , 2018 and 2017 and recognized proportional amortization expense of $3.5 million , $2.0 million and $1.4 million during the years ended December 31, 2019 , 2018 and 2017 . As a result, the balance of these investments was $36.5 million and $20.0 million at December 31, 2019 and 2018 . As of December 31, 2019 , we had funded $26.9 million of our $49.3 million aggregated funding commitments. We had an unfunded commitment of $22.4 million at December 31, 2019 . From an income tax benefit perspective, we recognized low income housing tax credits of $2.4 million , $1.9 million and $849 thousand during the years ended December 31, 2019 , 2018 and 2017 . The maximum loss exposure that would be absorbed by us in the event that all of the assets in this investment are deemed worthless is $36.5 million , which is our recorded investment amount at December 31, 2019 . The recorded investment amount is included in Other Assets on the Consolidated Statements of Financial Condition and the proportional amortization expense is recorded in Income Tax (Benefit) Expense on the Consolidated Statements of Operations. As the investments in alternative energy partnerships and qualified affordable housing partnerships represent unconsolidated VIEs to us, the assets and liabilities of the investments themselves are not recorded on our statements of financial condition. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents computations of basic and diluted EPS for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands, except per share data) Common Stock Class B Common Stock Total Common Stock Class B Common Stock Total Common Stock Class B Common Stock Total Income from continuing operations $ 23,535 $ 224 $ 23,759 $ 41,732 $ 415 $ 42,147 $ 53,136 $ 338 $ 53,474 Less: income allocated to participating securities — — — — — — (309 ) (2 ) (311 ) Less: participating securities dividends (478 ) (5 ) (483 ) (803 ) (8 ) (811 ) (806 ) (5 ) (811 ) Less: preferred stock dividends (15,412 ) (147 ) (15,559 ) (19,312 ) (192 ) (19,504 ) (20,322 ) (129 ) (20,451 ) Less: impact of preferred stock redemption (5,045 ) (48 ) (5,093 ) (2,284 ) (23 ) (2,307 ) — — — Income from continuing operations allocated to common stockholders 2,600 24 2,624 19,333 192 19,525 31,699 202 31,901 Income from discontinued operations — — — 3,292 33 3,325 4,208 27 4,235 Net income allocated to common stockholders $ 2,600 $ 24 $ 2,624 $ 22,625 $ 225 $ 22,850 $ 35,907 $ 229 $ 36,136 Weighted-average common shares outstanding 50,144,464 477,321 50,621,785 50,125,132 498,090 50,623,222 49,936,627 317,968 50,254,595 Add: Dilutive effects of restricted stock units 97,842 — 97,842 135,644 — 135,644 72,655 — 72,655 Add: Dilutive effects of stock options 5,324 — 5,324 39,036 — 39,036 159,734 — 159,734 Add: Dilutive effects of warrants — — — 53,692 — 53,692 332,806 — 332,806 Average shares and dilutive common shares 50,247,630 477,321 50,724,951 50,353,504 498,090 50,851,594 50,501,822 317,968 50,819,790 Basic earnings per common share Income from continuing operations $ 0.05 $ 0.05 $ 0.05 $ 0.38 $ 0.38 $ 0.38 $ 0.64 $ 0.64 $ 0.64 Income from discontinued operations — — — 0.07 0.07 0.07 0.08 0.08 0.08 Net income $ 0.05 $ 0.05 $ 0.05 $ 0.45 $ 0.45 $ 0.45 $ 0.72 $ 0.72 $ 0.72 Diluted earnings per common share Income from continuing operations $ 0.05 $ 0.05 $ 0.05 $ 0.38 $ 0.38 $ 0.38 $ 0.63 $ 0.64 $ 0.63 Income from discontinued operations — — — 0.07 0.07 0.07 0.08 0.08 0.08 Net income $ 0.05 $ 0.05 $ 0.05 $ 0.45 $ 0.45 $ 0.45 $ 0.71 $ 0.72 $ 0.71 For the years ended December 31, 2019 , 2018 , and 2017 , there were 710,082 , 0 , and 145,349 restricted stock units, respectively, and 16,165 , 267,834 and 59,178 stock options, respectively, that were not considered in computing diluted earnings per common share, because they were anti-dilutive. |
LOAN COMMITMENTS AND OTHER RELA
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet client financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Risk of credit loss exists up to the face amount of these instruments. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Commitments to extend credit are generally made for periods of 30 days or less. The contractual amount of financial instruments with off-balance sheet risk was as follows for the dates indicated: December 31, 2019 2018 ($ in thousands) Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to extend credit (1) $ 473 $ 129,495 $ 2,167 $ 288,770 Unused lines of credit 703 1,049,632 1,514 1,119,158 Letters of credit 134 5,316 1,266 8,561 (1) Included no commitments to extend credit related to discontinued operations at December 31, 2019 and 2018 . Other Commitments During the three months ended March 31, 2017, the Bank entered into certain definitive agreements which grant the Bank the exclusive naming rights to the Banc of California Stadium, a soccer stadium of Los Angeles Football Club (LAFC), as well as the right to be the official bank of LAFC. In exchange for the Bank’s rights as set forth in the agreements, the Bank agreed to pay LAFC $100.0 million over a period of 15 years , beginning in 2017 and ending in 2032. The advertising benefits of such rights are amortized on a straight-line basis and recorded as advertising and promotion expense and totaled $6.7 million for each of the years ended December 31, 2019 and 2018 . As of December 31, 2019 , the Bank has paid $20.8 million of the $100.0 million commitment. The prepaid commitment balance, net of amortization, was $7.4 million as of December 31, 2019 , which was recognized as a prepaid asset and included in Other Assets in the Consolidated Statements of Financial Condition. We had unfunded commitments of $22.4 million , $7.6 million , and $501 thousand for Affordable Housing Fund Investment, SBIC, and Other Investments at December 31, 2019 . |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING During fiscal year 2019, we continued to implement our strategic objective to de-emphasize the production of low margin loan products through our exit from the third-party mortgage origination ("TPMO") and brokered single family lending business. We recognized restructuring costs of $4.3 million for the year ended December 31, 2019 associated with the exit from the TPMO and brokered single family lending business and CEO and CFO transition. On June 26, 2018, we announced a 9 percent reduction in force to our workforce. In addition to reducing total staffing, we reduced the use of third party advisors during the third and fourth quarters of 2018, with each of these actions intended to align our cost structure with our focused commercial banking platform. The plan was fully completed during the fourth quarter of 2018. We incurred severance-related costs in 2018 of $4.4 million , pre-tax, related to this reduction in force. In connection with the sale of our Banc Home Loans division in 2017, we restructured certain aspects of our infrastructure and back office operations by realigning back office staffing resulting in certain severance and other employee related costs including accelerated vesting of equity awards, and amending certain system contracts in order to improve our efficiency. These employees and systems primarily supported our mortgage banking activities. We recognized $9.1 million of total restructuring expense during the year ended December 31, 2017. We had outstanding unpaid accrued liabilities of $1.2 million and $117 thousand at December 31, 2019 and 2018 . The following table presents activities in accrued liabilities and related expenses for the restructuring as of and for the years ended December 31, 2019 , 2018 and 2017 : Expense ($ in thousands) Continuing Operations Discontinued Operations Total Accrued Liabilities As of or For the Year Ended December 31, 2019 Balance at beginning of period $ 117 Accrual: Severance and other employee related costs $ 4,263 $ — $ 4,263 4,263 Other restructuring expense — — — — Total $ 4,263 $ — $ 4,263 4,263 Payments: Severance and other employee related costs (3,176 ) Other restructuring expense — Total $ (3,176 ) Balance at end of period $ 1,204 As of or For the Year Ended December 31, 2018 Balance at beginning of period $ 202 Accrual: Severance and other employee related costs $ 4,431 $ — $ 4,431 4,431 Other restructuring expense — — — — Total $ 4,431 $ — $ 4,431 4,431 Payments: Severance and other employee related costs (4,516 ) Other restructuring expense — Total $ (4,516 ) Balance at end of period $ 117 As of or For the Year Ended December 31, 2017 Balance at beginning of period $ — Accrual: Severance and other employee related costs $ 5,326 $ 2,899 $ 8,225 8,225 Other restructuring expense — 895 895 895 Total $ 5,326 $ 3,794 $ 9,120 9,120 Payments: Severance and other employee related costs (8,023 ) Other restructuring expense (895 ) Total $ (8,918 ) Balance at end of period $ 202 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated. Year Ended December 31, ($ in thousands) 2019 2018 2017 Noninterest Income In scope of Topic 606 Deposit Service Fees $ 2,414 $ 3,000 $ 2,947 Debit Card Fees 533 659 1,698 Investment Commissions 685 1,625 1,893 Other 340 320 31 Noninterest Income (in-scope of Topic 606) 3,972 5,604 6,569 Noninterest Income (out-of-scope of Topic 606) 8,144 18,311 38,101 Total Noninterest Income $ 12,116 $ 23,915 $ 44,670 Noninterest income and expense considered to be within the scope of Topic 606 is discussed below. Debit Card Fees When clients use their debit cards to pay merchants for goods or services, we retain a fee from the funds collected from the related deposit account and transfer the remaining funds to the payment network for remittance to the merchant. The performance obligation to the merchant is satisfied and the fee is recognized at the point in time when the funds are collected and transferred to the payment network. Investment Commissions We act as an agent for a third party vendor that provides investment services and products to clients. Upon completion of a sale of investment services or products to a client, we receive a commission from the third party vendor. The performance obligation to the third party vendor is satisfied and the commission income is recognized at that point in time. Deposit Service Fees Service charges on deposit accounts consist of account analysis fees, monthly service fees, check orders, and other deposit related fees. Our performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, our performance obligation is satisfied, and related revenue recognized, at a point in time as incurred. Other Other noninterest income primarily consists of other recurring revenue streams from merchant referral commissions. Our performance obligation for merchant referral commissions is satisfied with the successful sale of services to those referred merchants, which is when the commission is received and the income is recognized. Gains and Losses on Sales of OREO All other noninterest expense includes gains or losses on sales of OREO. Our performance obligation for sale of OREO is the transfer of title and ownership rights of the OREO to the buyer, which occurs at the settlement date when the sale proceeds are received and income is recognized. Gains or losses on sales of OREO are presented in Note 9 - Other Real Estate Owned. We do not typically enter into long-term revenue contracts with clients. As of December 31, 2019 and 2018 , we did not have any significant contract balances. As of December 31, 2019 and 2018 , we did not capitalize any contract acquisition costs. |
PARENT COMPANY FINANCIAL STATEM
PARENT COMPANY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS The parent company only condensed statements of financial condition as of December 31, 2019 and 2018 , and the related condensed statements of operations and condensed statements of cash flows for the years ended December 31, 2019 , 2018 , and 2017 are presented below: Condensed Statements of Financial Condition December 31, ($ in thousands) 2019 2018 ASSETS Cash and cash equivalents $ 73,971 $ 25,256 Other assets 42,243 13,746 Investment in subsidiaries 994,600 1,088,658 Total assets $ 1,110,814 $ 1,127,660 LIABILITIES AND STOCKHOLDERS’ EQUITY Notes payable, net $ 173,421 $ 173,174 Accrued expenses and other liabilities 30,148 8,952 Stockholders’ equity 907,245 945,534 Total liabilities and stockholders’ equity $ 1,110,814 $ 1,127,660 Condensed Statements of Operations Year Ended December 31, ($ in thousands) 2019 2018 2017 Income Dividends from subsidiaries $ 142,467 $ 94,250 $ 18,000 Other operating income 62 76 2,285 Total income 142,529 94,326 20,285 Expenses Interest expense for notes payable and other borrowings 9,480 9,421 10,764 Provision for loan losses — — 13 Loss on investments in alternative energy partnerships, net — — 8,493 Other operating expense 3,311 19,507 37,201 Total expenses 12,791 28,928 56,471 Income (loss) before income taxes and (excess dividends) retained equity in undistributed earnings of subsidiaries 129,738 65,398 (36,186 ) Income tax benefit (3,670 ) (9,017 ) (31,453 ) Income (loss) before (excess dividends) retained equity in undistributed earnings of subsidiaries 133,408 74,415 (4,733 ) (Excess dividends) retained equity in undistributed earnings of subsidiaries (109,649 ) (28,943 ) 62,442 Net income $ 23,759 $ 45,472 $ 57,709 Condensed Statements of Cash Flows Year Ended December 31, ($ in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 23,759 $ 45,472 $ 57,709 Adjustments to reconcile net income to net cash provided by operating activities (Excess dividends) retained equity in undistributed earnings of subsidiaries 109,649 28,943 (62,442 ) Stock-based compensation expense 1,446 2,814 2,520 Amortization of debt issuance cost 247 233 247 Deferred income tax (benefit) expense (86 ) (30,188 ) 14,604 Loss on investments in alternative energy partnerships, net — — 8,493 Net change in other assets and liabilities (2,095 ) 35,591 (12,957 ) Net cash provided by operating activities 132,920 82,865 8,174 Cash flows from investing activities: Purchase of investments (5,000 ) — — Investments in alternative energy partnerships — — (3,712 ) Net cash used in investing activities (5,000 ) — (3,712 ) Cash flows from financing activities: Net (decrease) increase in other borrowings — — (68,000 ) Redemption of preferred stock (46,396 ) (40,250 ) — Payment of junior subordinated amortizing notes — — (2,684 ) Proceeds from exercise of stock options — — 2,043 Restricted stock surrendered due to employee tax liability (1,023 ) (2,366 ) (6,824 ) Dividend equivalents paid on stock appreciation rights (483 ) (810 ) (810 ) Dividends paid on common stock (15,744 ) (32,725 ) (25,707 ) Dividends paid on preferred stock (15,559 ) (21,954 ) (20,451 ) Net cash used in financing activities (79,205 ) (98,105 ) (122,433 ) Net change in cash and cash equivalents 48,715 (15,240 ) (117,971 ) Cash and cash equivalents at beginning of year 25,256 40,496 158,467 Cash and cash equivalents at end of year $ 73,971 $ 25,256 $ 40,496 Supplemental disclosure of noncash activities: Reclassification of stranded tax effects to retained earnings $ — $ 496 $ — |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS General. Certain of our executive officers and directors, and their related interests, are clients of, or have had transactions with, the Bank in the ordinary course of business, including deposits, loans and other financial services-related transactions. From time to time, the Bank may make loans to executive officers and directors, and their related interests, in the ordinary course of business and on substantially the same terms and conditions, including interest rates and collateral, as those of comparable transactions with non-insiders prevailing at the time, in accordance with the Bank’s underwriting guidelines, and do not involve more than the normal risk of collectability or present other unfavorable features. As of December 31, 2019, no related party loans were categorized as nonaccrual, past due, restructured or potential problem loans. The Bank also has an Employee Loan Program which is available to all employees and offers executive officers, directors and principal stockholders that meet the eligibility requirements the opportunity to participate on the same terms as employees generally, provided that any loan to an executive officer, director or principal stockholder must be approved by the Bank’s Board of Directors. The sole benefit provided under the Employee Loan Program is a reduction in loan fees. Deposits from related parties and their affiliates amounted to $11.6 million and $11.1 million at December 31, 2019 and 2018 . There are certain deposits described below, which are not included in the foregoing amounts. Indemnification for Costs of Counsel for Current and Former Executive Officers and Directors in Connection with Special Committee Investigation, SEC Investigation and Related Matters . On November 3, 2016, in connection with an investigation by the Special Committee of our Board of Directors, our Board authorized and directed us to provide indemnification, advancement and/or reimbursement for the costs of separate independent counsel retained by any then-current officer or director, in their individual capacity, with respect to matters related to the investigation, and to advise them on their rights and obligations with respect to the investigation. At the direction of our Board, this indemnification, advancement and/or reimbursement is, to the extent applicable, subject to the indemnification agreement that each officer and director previously entered into with us, which includes an undertaking to repay any expenses advanced if it is ultimately determined that the officer or director was not entitled to indemnification under such agreements and applicable law. In addition, we are providing indemnification, advancement and/or reimbursement for costs related to (i) a formal order of investigation issued by the SEC on January 4, 2017 directed primarily at certain of the issues that the Special Committee reviewed and (ii) any related civil or administrative proceedings against the Company as well as officers currently or previously associated with the Company. On December 19, 2019, we were informed by SEC staff that they have concluded their investigation as to the Company, and they do not intend to recommend an enforcement action against the Company to the SEC. During the year ended December 31, 2019, indemnification costs paid by us included $11.9 million incurred by our former Chair, President and Chief Executive Officer Steven A. Sugarman; $795 thousand jointly incurred by our former Interim Chief Financial Officer and Chief Strategy Officer J. Francisco A. Turner and our former Chief Financial Officer James J. McKinney; $879 thousand incurred by our former General Counsel Emeritus John C. Grosvenor; and $180 thousand incurred by former Bank director Cynthia Abercrombie. Indemnification costs were paid on behalf of other current and former executive officers and directors in lesser amounts during the year ended December 31, 2019. During the year ended December 31, 2018, indemnification costs paid by us included $854 thousand incurred by Company director Jonah F. Schnel and $854 thousand incurred by Company director Robert D. Sznewajs. Such costs also included $8.5 million incurred by Mr. Sugarman; $497 thousand incurred by our former Management Vice Chair Jeffrey T. Seabold; $400 thousand jointly incurred by Messrs. Turner and McKinney; $415 thousand incurred by Mr. Grosvenor; $292 thousand incurred by Ms. Abercrombie; $854 thousand incurred by former Company director Halle J. Benett and $854 thousand incurred by former Company director Jeffrey Karish. Indemnification costs were paid on behalf of other current and former executive officers and directors in lesser amounts during the year ended December 31, 2018. During the year ended December 31, 2017 (excluding indemnification costs paid in January 2017), indemnification costs paid by us included $3.0 million incurred by Mr. Sugarman; $1.4 million incurred by Mr. Seabold; $631 thousand jointly incurred by Messrs. Turner and McKinney; $501 thousand incurred by Mr. Grosvenor; and $509 thousand incurred by former Company director Chad Brownstein. Indemnification costs were paid on behalf of other current and former executive officers and directors in lesser amounts during the year ended December 31, 2017. |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION From time to time we are involved as plaintiff or defendant in various legal actions arising in the normal course of business. In accordance with applicable accounting guidance, we establish an accrued liability when those matters present loss contingencies that are both probable and estimable. We continue to monitor the matters for further developments that could affect the amount of the accrued liability that has been previously established. As of December 31, 2019 , we accrued $20.2 million for various litigation filed against the Company and the Bank, including an accrual for $19.75 million related to the settlement of the securities litigation previously announced by us and described below. There is no expected impact to earnings as a result of the settlement, as the settlement payments will be paid directly by our insurance carriers and we have recorded an insurance receivable for $19.75 million related to this matter. On October 28, 2019, we entered into a Stipulation of Settlement (“Settlement Stipulation”) with the lead plaintiff to settle class action lawsuits that were previously consolidated in the United District Court for the Central District of California (the “Court”) under the caption In re Banc of California Securities Litigation, Case No. SACV 17-00118 AG, consolidated with SACV 17-00138 AG. Under the terms of the Settlement Stipulation, our insurance carriers will pay $19.75 million , which will be distributed to shareholders who purchased our stock between April 15, 2016 and January 20, 2017, after payment of attorney’s fees and costs, to be determined by the Court. We will not be required to contribute any cash to the settlement payments. Pursuant to the settlement, the action against the Company will be dismissed with prejudice. Plaintiff will also dismiss with prejudice its claims against our former Chief Executive Officer and Chairman Steven Sugarman. While we do not believe the plaintiff’s claims are meritorious, we believe that ending the costs and distraction of the litigation is in the best interests of the Company and our shareholders. The settlement and the dismissals are subject to approval by the Court and meeting certain conditions, and there are no assurances that Court approval will be obtained or that those conditions will be satisfied. On December 4, 2019 the Court preliminarily approved the settlement. Members of the class have been provided notice and will have an opportunity to object or opt out. The Court has scheduled a fairness hearing on March 16, 2020 at which time the Court will determine whether the settlement shall be finally approved. The foregoing description of the settlement does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the complete text of the settlement stipulation that will be filed with the Court. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table presents the unaudited quarterly results of operations for the year ended December 31, 2019 : Three Months Ended, ($ in thousands, except per share data) March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Interest income $ 110,712 $ 104,040 $ 92,657 $ 83,702 Interest expense 42,904 39,260 33,742 27,042 Net interest income 67,808 64,780 58,915 56,660 Provision for (reversal of) loan losses 2,512 (1,987 ) 38,540 (2,678 ) Noninterest income 6,295 (2,290 ) 3,181 4,930 Noninterest expense 61,835 43,587 43,307 47,185 Income (loss) from continuing operations before income taxes 9,756 20,890 (19,751 ) 17,083 Income tax expense (benefit) 2,719 4,308 (5,619 ) 2,811 Net income (loss) 7,037 16,582 (14,132 ) 14,272 Dividends on preferred stock 4,308 4,308 3,403 3,540 Income allocated to participating securities — 271 — 224 Participating securities dividends 202 94 94 93 Impact of preferred stock redemption — — 5,093 — Net income (loss) available to common stockholders $ 2,527 $ 11,909 $ (22,722 ) $ 10,415 Basic earnings per common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.21 Diluted earnings per common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.20 Basic earnings per class B common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.21 Diluted earnings per class B common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.21 The following table presents the unaudited quarterly results of operations for the year ended December 31, 2018 : Three Months Ended, ($ in thousands, except per share data) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Interest income $ 98,707 $ 105,185 $ 107,774 $ 111,130 Interest expense 27,269 32,421 36,582 40,448 Net interest income 71,438 72,764 71,192 70,682 Provision for loan losses 19,499 2,653 1,410 6,653 Noninterest income 8,582 8,061 4,824 2,448 Noninterest expense 59,800 62,539 60,877 49,569 Income from continuing operations before income taxes 721 15,633 13,729 16,908 Income tax (benefit) expense (6,353 ) 1,779 3,301 6,117 Income from continuing operations 7,074 13,854 10,428 10,791 Income from discontinued operations before income taxes 2,044 1,281 924 347 Income tax expense 560 355 256 100 Income from discontinued operations 1,484 926 668 247 Net income 8,558 14,780 11,096 11,038 Dividends on preferred stock 5,113 5,113 4,970 4,308 Income allocated to participating securities 203 203 202 203 Participating securities dividends — 86 — — Impact of preferred stock redemption — — 2,307 — Net income available to common stockholders $ 3,242 $ 9,378 $ 3,617 $ 6,527 Basic earnings per common share Income from continuing operations $ 0.03 $ 0.17 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.19 $ 0.07 $ 0.13 Diluted earnings per common share Income from continuing operations $ 0.03 $ 0.16 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.18 $ 0.07 $ 0.13 Basic earnings per class B common share Income from continuing operations $ 0.03 $ 0.17 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.19 $ 0.07 $ 0.13 Diluted earnings per class B common share Income from continuing operations $ 0.03 $ 0.17 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.19 $ 0.07 $ 0.13 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 10, 2020, we announced that our Board of Directors had declared a quarterly cash dividend of $0.06 per share on its outstanding common stock. The dividend will be payable on April 1, 2020 to stockholders of record as of March 16, 2020. We also announced that our Board of Directors has authorized the repurchase of up to $45 million of the Company’s common stock. We evaluated subsequent events through the date of issuance of the financial data included herein. Other than the event discussed above, there have been no subsequent events occurred during such period that would require disclosure in this report or would be required to be recognized on the Consolidated Financial Statements as of December 31, 2019 . |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of the Company and all other entities in which we have a controlling financial interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the "Company" or "us" include our wholly owned subsidiaries. The accounting and reporting policies of the Company are based upon U.S. generally accepted accounting principles, which we may refer to as "GAAP," and conform to predominant practices within the financial services industry. Significant accounting policies followed by the Company are presented below. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the consolidated financial statements and disclosures provided, and actual results could differ. The allowance for loan losses, reserve for loss on repurchased loans, reserve for unfunded loan commitments, realization of deferred tax assets, the valuation of goodwill and other intangible assets, hypothetical liquidation at book value (HLBV) of investments in alternative energy partnerships, fair value of assets and liabilities acquired in business combinations, and the fair value measurement of financial instruments are particularly subject to change and such change could have a material effect on the consolidated financial statements. |
Discontinued Operations | Discontinued Operations: |
Segment Reporting | Segment Reporting: In connection with the sale of our Banc Home Loans division, which largely represented our Mortgage Banking segment, we reassessed our reportable operating segments. Based on this internal evaluation, we determined that all three of our previously disclosed reportable segments, Commercial Banking, Mortgage Banking, and Corporate/Other, are no longer applicable. Accordingly, to better reflect how we are now managed and how information is reviewed by the chief operating decision maker, our chief executive officer, we determined that all services we offer relate to Commercial Banking. As a result, our only reportable segment is Commercial Banking. |
Variable Interest Entities | Variable Interest Entities: |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Time Deposits in Financial Institutions | Time Deposits in Financial Institutions: Time deposits in financial institutions have original maturities over 90 days and are carried at cost. |
Investment Securities | Investment Securities: Investment securities are classified at the time of purchase as available-for-sale, held-to-maturity or trading. We had no investment securities classified as held-to-maturity or trading at December 31, 2019 and 2018 . Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value with unrealized holding gains and losses, net of taxes, and other-than-temporary impairment (OTTI), net of taxes, reported in accumulated other comprehensive income (AOCI) on the Consolidated Statements of Financial Condition. During the year ended December 31, 2017, we evaluated our securities held-to-maturity and determined that certain securities no longer adhered to our strategic focus and could be sold or reinvested to potentially improve our liquidity position or duration profile. Accordingly, we were no longer able to assert that we had the intent to hold these securities until maturity. As a result, we transferred all $740.9 million of our held-to-maturity securities to available-for-sale, which resulted in a pre-tax increase to AOCI of $22.0 million at the time of the transfer, June 30, 2017. Accreted discounts and amortized premiums are included in interest income using the level yield method, and realized gains or losses from sales of securities are calculated using the specific identification method. Management evaluates securities for OTTI at least on a quarterly basis, and more frequently when economic conditions warrant such an evaluation. Investment securities classified as available-for-sale or held-to-maturity are generally evaluated for OTTI under ASC 320, Accounting for Certain Investments in Debt and Equity Securities. In determining OTTI under the ASC 320 model, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also considers whether the market decline was affected by macroeconomic conditions, and assesses whether we intend to sell, or it is more likely than not we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. The assessment of whether OTTI exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs the amount of the impairment recognized in earnings depends on our intent to sell the security or if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (i) OTTI related to credit loss, which must be recognized in the income statement and (ii) OTTI related to other factors, which is recognized in other comprehensive income (OCI). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities the entire amount of impairment is recognized through earnings. |
Loans Held for Sale, Carried at Fair Value and Loans Held for Sale, Carried at Lower of Cost or Fair Value | Loans Held-For-Sale, Carried at Fair Value: Loans held-for-sale, carried at fair value, are conforming SFR mortgage loans that are originated and intended for sale in the secondary market, repurchased loans that were previously sold to Ginnie Mae and other GSEs, and loans sold to Ginnie Mae that are delinquent more than 90 days and subject to a unilateral purchase option by us. The fair value of loans held-for-sale is based on commitments outstanding from investors as well as what secondary market investors are currently offering for portfolios with similar characteristics. Loans Held-for-Sale, Carried at Lower of Cost or Fair Value: We record non-conforming jumbo mortgage loans held-for-sale and certain commercial loans held-for-sale at the lower of cost or fair value, on an aggregate basis. Deferred loan origination fees and costs or purchase discounts or premiums included in the carrying value of the loans are not amortized and are included in the determination of gains or losses from the sale of the related loans. A valuation allowance is established if the fair value of such loans is lower than their cost, with a corresponding charge to noninterest income. When we change our intent to hold loans for investment, the loans are transferred to held-for-sale at the lower of cost or fair value on the transfer date and amortization of deferred fees and costs or purchase discounts or premiums is ceased. If a determination is made that a loan held-for-sale cannot be sold in the foreseeable future, it is transferred to held-for-investment at the lower of cost or fair value on the transfer date and amortization of origination fees and costs or purchase discounts or premiums are resumed. |
Loans | Loans: When a determination is made at the time of commitment to originate or purchase loans as held-for-investment, it is our intent to hold these loans to maturity or for the foreseeable future, subject to periodic review under our management evaluation processes, including asset/liability management. Loans, excluding purchase credit impaired (PCI) loans, that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are recorded at the principal balance outstanding, net of charge-offs, unamortized purchase premiums and discounts, and deferred loan fees and costs. Amortization of deferred loan origination fees and costs or purchase premiums and discounts are recognized in interest income as an adjustment to yield over the terms of loans using the effective interest method. Deferred loan origination fees and costs on revolving lines of credit are amortized using the straight line method. Interest on loans is credited to interest income as earned based on the interest rate applied to principal amounts outstanding. Interest income is accrued on the unpaid principal balance and is discontinued when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes doubtful, regardless of the length of past due status. Generally, loans are placed on non-accrual status when scheduled payments become past due for 90 days or more. When accrual of interest is discontinued, any unpaid accrued interest receivable is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A charge-off is generally recorded at 180 days past due for SFR mortgage loans if the unpaid principal balance exceeds the fair value of the collateral less costs to sell. Commercial and industrial and commercial real estate loans financings are subject to a detailed review when 90 days past due to determine accrual status, or when payment is uncertain and a specific consideration is made to put a loan on non-accrual status. A charge-off for commercial and industrial and commercial real estate loans is recorded when a loss is confirmed. Consumer loans, other than those secured by real estate, are typically charged off no later than 120 days past due. |
Allowance for Loan Losses (ALL) | Allowance for Loan Losses (ALL): The ALL is a reserve established through a provision for loan losses, and represents management’s best estimate of probable losses that may be incurred within the existing loan portfolio as of the date of the consolidated statements of financial condition. Prior to 2018, we had lease financing receivables; however, since there are no lease financing receivables during the two most recent years, we refer to the allowance for loan losses as the allowance for loan losses. Confirmed losses are charged against the ALL. Subsequent recoveries, if any, are credited to the ALL. We perform an analysis of the adequacy of the ALL at least quarterly. Management estimates the required ALL balance using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. The ALL consists of three elements; (i) a specific allowance established for probable losses on individually identified impaired loans, (ii) a quantitative allowance calculated using historical loss experience adjusted as necessary to reflect current conditions; and (iii) a qualitative allowance to capture economic, underwriting, process, credit, and other factors and trends that are not adequately reflected in the historical loss rates. A loan is deemed impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. We measure expected credit losses on all impaired loans individually under the guidance of ASC 310, Receivables , primarily through the evaluation of collateral values and estimated cash flows expected to be collected. Cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal and then to interest income. Loans for which the terms have been modified by granting a concession that normally would not be provided and where the borrower is experiencing financial difficulties are considered TDRs and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The impairment amount on a collateral dependent loan is generally charged-off to the ALL, and the impairment amount on a loan that is not collateral dependent is set-up as a specific reserve. TDRs are also measured at the present value of estimated future cash flows using the loan’s effective rate at inception or at the fair value of collateral, less costs to sell, if repayment is expected solely from the collateral. For TDRs that subsequently default, we determine the amount of reserve in accordance with the accounting policy for the ALL. At December 31, 2019 , the following loan portfolio segments have been identified: • Commercial and industrial (general commercial and industrial, warehouse lending, and indirect/direct leveraged lending) • Commercial real estate • Multifamily • SBA • Construction • SFR - 1st deeds of trust (general SFR mortgage and other) • Other consumer (HELOC and other) We categorize loans into risk categories based on relevant information about the ability of borrowers and lessees (also referred to as borrowers) to service their obligations such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans as to credit risk. Loans secured by multifamily and commercial real estate properties generally involve a greater degree of credit risk than SFR mortgage loans. Because payments on loans secured by multifamily and commercial real estate properties are often dependent on the successful operation or management of the properties, repayment of these loans may be subject to adverse conditions in the real estate market or the economy. Commercial and industrial loans are also considered to have a greater degree of credit risk than SFR mortgage loans due to the fact commercial and industrial loans are typically made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial and industrial loans may be substantially dependent on the success of the business itself (which, in turn, is often dependent in part upon general economic conditions). SBA loans are similar to commercial and industrial loans, but have additional credit enhancement provided by the U.S. Small Business Administration, for up to 85% of the loan amount for loans up to $150 thousand and 75% of the loan amount for loans of more than $150 thousand. As a result, the availability of funds for the repayment of lease financing may be substantially dependent on the success of the business itself (which, in turn, is often dependent in part upon general economic conditions). Consumer loans may entail greater risk than SFR mortgage loans given that collection of these loans is dependent on the borrower’s continuing financial stability and, thus, are more likely to be adversely affected by job loss, divorce, illness, or personal bankruptcy. Green Loans are also considered to carry a higher degree of credit risk due to their unique cash flows. Credit risk on this asset class is also managed through the completion of regular third party automated valuation models (AVMs) of the underlying collateral and monitoring of the borrower’s usage of this account to determine if the borrower is making monthly payments from external sources or “drawdowns” on their line. In cases where the property values have declined to levels less than the original LTV ratios, or other levels deemed prudent by us, we may curtail the line and/or require monthly payments or principal reductions to bring the loan in balance. On the interest only loans, we project future payment changes to determine if there will be a material increase in the required payment and then monitors the loans for possible delinquency. Individual loans are monitored for possible downgrading of risk rating. |
Troubled Debt Restructurings | Troubled Debt Restructurings: A loan is identified as a TDR when a borrower is experiencing financial difficulties and for economic or legal reasons related to these difficulties, we grant a concession to the borrower in the restructuring that it would not otherwise consider. We have granted a concession when, as a result of the restructuring to a troubled borrower, it does not expect to collect all amounts due, including principal and/or interest accrued at the original terms of the loan. The concessions may be granted in various forms, including a below-market change in the stated interest rate, a reduction in the loan balance or accrued interest, an extension of the maturity date, or a note split with principal forgiveness. Loans for which the borrower has been discharged under Chapter 7 bankruptcy are considered collateral dependent TDRs, impaired at the date of discharge, and charged down to the fair value of collateral less cost to sell. A restructuring executed at an interest rate that is at market interest rates based on the current credit characteristics of the borrower is not a TDR. Our policy is to place consumer loan TDRs, except those that were performing prior to TDR status, on non-accrual status for a minimum period of 6 months . Commercial TDRs are evaluated on a case-by-case basis for determination of whether or not to place them on non-accrual status. Loans qualify for return to accrual status once they have demonstrated performance under the restructured terms of the loan for a minimum of 6 months. Initially, all TDRs are reported as impaired. Generally, TDRs are classified as impaired loans and reported as TDRs for the remaining life of the loan. Impaired and TDR classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of 6 months and through one fiscal year-end and the restructuring agreement specifies a market rate of interest equal to that which would be provided to a borrower with similar credit at the time of restructuring. In the limited circumstance that a loan is removed from TDR classification, it is our policy to continue to base our measure of loan impairment on the contractual terms specified by the loan agreement. |
Fair Value of Financial Instruments | Fair Values of Financial Instruments: We measure certain assets and liabilities on a fair value basis, in accordance with ASC Topic 820, "Fair Value Measurement." Fair value is used on a recurring basis for certain assets and liabilities in which fair value is the primary basis of accounting. Examples of these include derivative instruments and available-for-sale securities. Additionally, fair value is used on a non-recurring basis to evaluate assets or liabilities for impairment in accordance with ASC Topic 825, "Financial Instruments." Examples of these include impaired loans, long-lived assets, OREO, goodwill, and core deposit intangible assets as well as loans held-for-sale accounted for at the lower of cost or fair value. Fair value is the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. When observable market prices are not available, fair value is estimated using modeling techniques such as discounted cash flow analysis. These modeling techniques utilize assumptions that market participants would use in pricing the asset or the liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance. Depending on the nature of the asset or liability, we use various valuation techniques and assumptions when estimating the instrument’s fair value. Considerable judgment may be involved in determining the amount that is most representative of fair value. To increase consistency and comparability of fair value measures, ASC Topic 820, "Fair Value Measurement" established a three-level hierarchy to prioritize the inputs used in valuation techniques between observable inputs among (i) observable inputs that reflect quoted prices in active markets, (ii) inputs other than quoted prices with observable market data, and (iii) unobservable data such as our own data or single dealer non-binding pricing quotes. We assess the valuation hierarchy for each asset or liability measured at the end of each quarter; as a result, assets or liabilities may be transferred within hierarchy levels due to changes in availability of observable market inputs to measure fair value at the measurement date. |
Federal Home Loan Bank and Federal Reserve Bank Stock | Federal Home Loan Bank and Federal Reserve Bank Stock: The Bank is a member of the FHLB and FRB system. Members are required to own a certain amount of FHLB and FRB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported on the Consolidated Statements of Operations under Interest and Dividend Income from Other Interest-Earning Assets. |
Other Real Estate Owned | Other Real Estate Owned: OREO, which represents real estate acquired through foreclosure in satisfaction of commercial and real estate loans, is initially recorded at fair value less estimated selling costs of the real estate, based on current independent appraisals obtained at the time of acquisition, less costs to sell when acquired, establishing a new cost basis. Loan balances in excess of fair value of the real estate acquired at the date of acquisition are charged off against the ALL. A valuation allowance is established for any subsequent declines in fair value less estimated selling costs and adjusted as applicable. Gains and losses on the sale of OREO and reductions in fair value subsequent to foreclosure, and any subsequent operating expenses or income of such properties are included in All Other Expense on the Consolidated Statements of Operations. |
Bank Owned Life Insurance | Bank Owned Life Insurance: The Bank has purchased life insurance policies on certain key employees. BOLI is recorded at the amount that can be realized under the insurance contract, which is the cash surrender value. |
Premises, Equipment, and Capital Leases | Premises, Equipment, and Capital Leases: Land is carried at cost. Premises and equipment are recorded at cost less accumulated depreciation. The straight-line method is used for depreciation with the following estimated useful lives: building - 40 years and leasehold improvements - life of lease, and furniture, fixtures, and equipment - 3 to 7 years |
Servicing Rights - Mortgage (Carried at Fair Value) and Servicing Rights - SBA Loans (Carried at Lower of Cost or Fair Value) | Servicing Rights - Mortgage (Carried at Fair Value): A servicing asset or liability is recognized when undertaking an obligation to service a financial asset under a mortgage servicing contract, as a result of the transfer of our financial assets that meet the requirements for sale accounting. Such servicing asset or liability is initially measured at fair value based on either market prices for comparable servicing contracts or alternatively is based on a valuation model that is based on the present value of the contractually specified servicing fee, net of servicing costs, over the estimated life of the loan, using a discount rate based on the related loan rate and is recorded on the Consolidated Statements of Financial Condition. We measure servicing rights at fair value at each reporting date and reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and such changes are included within Noninterest Income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimates and actual prepayment speeds and default rates and losses. Currently, we do not hedge the effects of changes in fair value of our servicing assets. Servicing fee income, which is reported in Loan Servicing Income on the Consolidated Statements of Operations, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. Late fees and ancillary fees related to loan servicing are not material. Servicing Rights - SBA Loans (Carried at Lower of Cost or Fair Value): The Bank originates and sells the guaranteed portion of our SBA loans. To calculate the gain (loss) on sales of SBA loans, the Bank’s investment in the loan is allocated among the retained portion of the loan, the servicing retained, the interest-only strip and the sold portion of the loan, based on the relative fair market value of each portion. The gain (loss) on the sold portion of the loan is recognized at the time of sale based on the difference between sale proceeds and the amount of the allocated investment to the sold portion of the loan. The portion of the servicing fees that represent contractually specified servicing fees (contractual servicing) is reflected as a servicing asset and is amortized over the estimated life of the servicing. In the event future prepayments exceed management’s estimates and future expected cash flows are inadequate to cover the servicing asset, impairment is recognized. The portion of servicing fees in excess of contractual servicing fees is reflected as interest-only strip receivables. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill represents the excess purchase price of businesses acquired over the fair value of the identifiable net assets acquired and is assigned to specific reporting units. Goodwill is not subject to amortization and is evaluated for impairment at least annually, normally during the third fiscal quarter, or more frequently in the interim if events occur or circumstances change indicating it would more likely than not result in a reduction of the fair value of a reporting unit below its carrying value. Goodwill is evaluated for impairment by either performing a qualitative evaluation or a quantitative test. The impairment losses recognized related to intangible assets are recorded in Impairment on Intangible Assets on the Consolidated Statements of Operations. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is more likely than not that the fair value of a reporting unit is below its carrying value, we perform a quantitative test whereby the fair value of a reporting unit is compared to its carrying amount, including goodwill. We determine the estimated fair value of each reporting unit using a discounted cash flow analysis and comparable public company market values. Discounted cash flow estimates include significant management assumptions relating to revenue growth rates, net interest margins, weighted-average cost of capital, and future economic and market conditions. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered impaired. Otherwise, if a reporting unit's carrying value exceeds fair value, the difference is charged to noninterest expense. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights, or because the asset is capable of being sold or exchanged either separately or in combination with a related contract, asset or liability. Other intangible assets with finite useful lives are amortized to noninterest expense over their estimated useful lives and are evaluated for impairment whenever events occur or circumstances change indicating the carrying amount of the asset may not be recoverable. |
Alternative Energy Partnerships | Alternative Energy Partnerships: We invest in certain alternative energy partnerships (limited liability companies) formed to provide sustainable energy projects that are designed to generate a return primarily through the realization of federal tax credits (energy tax credits) and other tax credits. We are a limited partner in these partnerships, which were formed to invest in newly installed residential and commercial solar leases and power purchase agreements. As our respective investments in these entities are more than minor, we have significant influence, but not control, over the investee’s activities that most significantly impact its economic performance. As a result, we are required to apply the equity method of accounting, which generally prescribes applying the percentage ownership interest to the investee’s GAAP net income in order to determine the investor’s earnings or losses in a given period. However, because the liquidation rights, tax credit allocations and other benefits to investors can change upon the occurrence of specified events, application of the equity method based on the underlying ownership percentages would not accurately represent our investment. As a result, we apply the Hypothetical Liquidation at Book Value (HLBV) method of the equity method of accounting. The HLBV method is a balance sheet approach where a calculation is prepared at each balance sheet date to estimate the amount that we would receive if the equity investment entity were to liquidate all of its assets (as valued in accordance with GAAP) and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is our share of the earnings or losses from the equity investment for the period. To account for the tax credits earned on investments in alternative energy partnerships, we use the flow-through income statement method. Under this method, the tax credits are recognized as a reduction to income tax expense and the initial book-tax differences in the basis of the investments are recognized as additional tax expense in the year they are earned. We do not believe the investments in alternative energy partnerships are impaired by the lower corporate income tax rate from the Tax Cuts and Jobs Act of 2017 due to the protective provision built into the partnership agreements; however, we expect to take longer to utilize the investment tax credits generated from these investments. |
Affordable Housing Fund Investment | Affordable Housing Fund Investment: We have invested in limited partnerships that were formed to develop and operate several apartment complexes designed as high-quality affordable housing for lower income tenants throughout the State of California and other states. We account for these investments under the proportional amortization method. Our ownership in each limited partnership varies from 8% to 23% . Each of the partnerships must meet the regulatory minimum requirements for affordable housing for a minimum 15 -year compliance period to fully utilize the tax credits. If the partnerships cease to qualify during the compliance period, the credit may be denied for any period in which the project is not in compliance and a portion of the credit previously taken is subject to recapture with interest. As part of the 2017 Tax Cuts and Jobs Act, investments accounted for under the proportional amortization method are required to be tested for impairment when events or changes in circumstances indicate that it is more-likely-than-not that the carrying amount of the investment will not be realized. Impairment is measured as the difference between the investment’s carrying amount and its fair value. |
Long-term Assets | Long-Term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value, less selling costs. For impairment purposes, fair value is determined utilizing market values of similar assets or replacement cost as applicable. |
Reserve for Loss on Repurchased Loans | Reserve for Loss on Repurchased Loans: |
Reserve for Unfunded Loan Commitments | Reserve for Unfunded Loan Commitments: The reserve for unfunded loan commitments provides for probable losses inherent with funding the unused portion of legal commitments to lend. The reserve for unfunded loan commitments includes factors that are consistent with ALL methodology using the expected loss factors and a draw down factor applied to the underlying borrower risk and facility grades. Changes in the reserve for unfunded loan commitments are reported as a component of All Other Expense on the Consolidated Statements of Operations. |
Deferred Financing Costs | Deferred Financing Costs: Deferred financing costs associated with our senior notes are included in Long-Term Debt, Net on the Consolidated Statements of Financial Condition. The deferred financing costs are being amortized on a basis that approximates a level yield method over the 8 year term of the senior notes. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet client financing needs. The face amount for these items represents the exposure to loss, before considering client collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Stock-Based Compensation | Stock-Based Compensation: Compensation cost is recognized for stock options, restricted stock awards and units, and stock appreciation rights issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options and stock appreciation rights, while the market price of our voting common stock at the date of grant is used for restricted stock awards and units. Generally, compensation cost is recognized over the required service period, defined as meeting performance goals and the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Compensation cost reflects estimated forfeitures, adjusted as necessary for actual forfeitures. |
Income Taxes | Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Deferred tax assets are also recognized for operating loss and tax credit carryforwards. Accounting guidance requires that companies assess whether a valuation allowance should be established against the deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. In assessing the realization of deferred tax assets, possible sources of future taxable income, such as future reversal of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in prior carryback year(s), and future tax planning strategies. We and our subsidiaries are subject to U.S. Federal income tax as well as income tax in multiple state jurisdictions. We are no longer subject to examination by U.S. Federal taxing authorities for years before 2016. The statute of limitations for the assessment of California Franchise taxes has expired for tax years before 2014; other state income and franchise tax statutes of limitations vary by state. Tax positions that are uncertain but meet a more-likely-than-not recognition threshold are initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position meets the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management's judgment. We early adopted ASU 2018-02 effective January 1, 2018. As a result of the adoption, we reclassified stranded tax effects from accumulated other comprehensive income to retained earnings in which the effect of changes in corporate income tax rates related to Tax Cuts and Jobs Act of 2017 was recorded. |
Earnings Per Common Share | Earnings Per Common Share: Earnings per common share is computed under the two-class method. Basic EPS is computed by dividing net income allocated to common stockholders by the weighted-average number of shares outstanding. Diluted EPS is computed by dividing net income allocated to common stockholders by the weighted-average number of shares outstanding, adjusted for the dilutive effect of the restricted stock units and outstanding stock options. Net income allocated to common stockholders is computed by subtracting income allocated to participating securities, participating securities dividends, preferred stock dividend and preferred stock redemption from net income. Participating securities are instruments granted in stock-based payment transactions that contain rights to receive non-forfeitable dividends or dividend equivalents, which includes the Stock Appreciation Rights to the extent they confer dividend equivalent rights. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available-for-sale, net of tax, which are recognized as a separate component of stockholders’ equity. |
Derivative Instruments | Derivative Instruments: We record our derivative instruments at fair value as either assets or liabilities on the Consolidated Statements of Financial Condition in Other Assets and Accrued Expenses and Other Liabilities, respectively, and have elected to present all derivatives with counterparties on a gross basis. For hedged derivatives, we record changes in fair value in AOCI on the Consolidated Statements of Financial Condition and record any hedge ineffectiveness in Other Income on the Consolidated Statements of Operations. For non-hedged derivatives, we record changes in fair value in Other Income on the Consolidated Statements of Operations. Interest Rate Swaps and Caps. We offer interest rate swap and cap products to certain loan clients to allow them to hedge the risk of rising interest rates on their variable rate loans. When such products are issued, we also enter into an offsetting swap with institutional counterparties to eliminate the interest rate risk. These back-to-back derivative agreements, which generate fee income for us, are intended to offset each other. We retain the credit risk of the original loan. The net cash flow for us is equal to the interest income received from a variable rate loan originated with the client plus a fee. These swaps and caps are not designated as accounting hedges and are recorded at fair value in Other Assets and Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. The changes in fair value are recorded in Other Income in the Consolidated Statements of Operations. Interest Rate Swaps and Caps on Mortgage-backed Securities: During the third quarter, we partially hedged the fair value of the MBS portfolio using interest rate swaps. At the end of the third quarter of 2019, we took advantage of the decline in long term interest rates and sold the majority of the MBS portfolio and unwound the majority of the interest rate swaps. The remaining balance of the MBS portfolio and the related interest rate swap were sold and unwound in the fourth quarter 2019. The unsold portion of the MBS portfolio has been deemed other–than–temporarily impaired and, along with the fair value adjustment on the swap, has been recorded as a loss in noninterest income with a net impact of $731 thousand for the year ended December 31, 2019 and is included in the carrying value of MBS. Foreign Exchange Contracts . We offer short-term foreign exchange contracts to our clients to purchase and/or sell foreign currencies at set rates in the future. These products allow clients to hedge the foreign exchange rate risk of their deposits and loans denominated in foreign currencies. In conjunction with these products we also enter into offsetting contracts with institutional counterparties to hedge our foreign exchange rate risk. These back-to-back contracts allow us to offer our clients foreign exchange products while minimizing our exposure to foreign exchange rate fluctuations. These foreign exchange contracts are not designated as hedging instruments and are recorded at fair value in Other Assets and Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition. |
Transfer of Financial Assets | Transfer of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is generally considered to have been surrendered when (i) the transferred assets are legally isolated from us or our consolidated affiliates, even in bankruptcy or other receivership, (ii) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee or provide more than a trivial benefit to us, and (iii) we do not maintain an obligation or the unilateral ability to reclaim or repurchase the assets. We have sold financial assets in the normal course of business, the majority of which are residential mortgage loan sales primarily to GSEs through our mortgage banking activities and other individual or portfolio loans and securities sales. In accordance with accounting guidance for asset transfers, we consider any ongoing involvement with transferred assets in determining whether the assets can be derecognized from the balance sheet. With the exception of servicing and certain performance-based guarantees, our continuing involvement with financial assets sold is minimal and generally limited to market customary representation and warranty clauses. When we sell financial assets, we may retain servicing rights and/or other interests in the financial assets. The gain or loss on sale depends on the previous carrying amount of the transferred financial assets and the fair value of the consideration received, including cash, originated mortgage servicing rights and other interests in the sold assets, and any liabilities incurred in exchange for the transferred assets. Upon transfer, any servicing assets and other interests retained by us are carried at fair value or the lower of cost or fair value. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements that are not currently accrued for. |
Dividend Restriction | Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to us or by us to our stockholders. |
Fee Revenue | Fee Revenue: Generally, fee revenue from deposit service charges and loans is recognized when earned, except where collection is uncertain, in which case revenue is recognized when received. On January 1, 2018, we adopted Accounting Standard Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)”, and all subsequent amendments. The scope of this guidance explicitly excludes net interest income, as well as other revenues from transactions involving financial instruments such as loans, leases, and securities. Certain noninterest income items such as service charges on deposits accounts, gain and loss on other real estate owned sales, and other income items are within the scope of this guidance. We identified and reviewed revenue streams within the scope of this guidance, including escrow fees, trust and fiduciary fees, deposit service fees, debit card fees, investment commissions, and gains on sales of OREO, which represent a significant portion of our noninterest income that falls into the scope of this guidance. Based on our review, we determined that this guidance did not require significant changes to the manner in which income from those revenue streams within the scope of ASC 606 was previously recognized. The implementation of the new standard did not have a material impact on the measurement, timing, or recognition of revenue. Accordingly, no cumulative effect adjustment to opening retained earnings was deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as gain or loss associated with mortgage servicing rights, financial guarantees, derivatives, and income from bank owned life insurance are also not within the scope of the new guidance. Topic 606 is applicable to noninterest income such as trust and asset management income, deposit related fees, interchange fees, merchant related income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. |
Advertising Costs | Advertising Costs: Advertising costs are expensed as incurred. |
Adopted Accounting Pronouncements and Recent Accounting Guidance Not Yet Effective | Adopted Accounting Pronouncements: During the year ended December 31, 2019 , the following pronouncements applicable to us were adopted: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) 2016-02 Topic 842, “Leases” which increases transparency and comparability among organizations by requiring the recognition of right of use (ROU) assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We adopted Topic 842 and related updates effective January 1, 2019 and used the effective date as the date of initial application, and therefore, periods prior to January 1, 2019 were not restated. We elected the package of practical expedients, which permits us not to reassess prior conclusions about lease identifications, lease classification and initial direct costs under the new standard. We did not elect to apply the hindsight practical expedient pertaining to using hindsight knowledge as of the effective date when determining lease terms and impairment. We also have elected the short-term lease recognition exemption (leases with terms 12 months or less) for all leases that qualify, and thus will not recognize ROU assets or lease liabilities for those leases. In addition, we elected the practical expedient to not separate lease and non-lease components for all of our leases. Upon adoption, we recognized on our consolidated balance sheet ROU assets of approximately $23.3 million (inclusive of an adjustment to remove our existing deferred rent liability of approximately $1.4 million ) with a corresponding operating lease liability of approximately $24.7 million . The standard did not have an impact on our Consolidated Statements of Operations. In addition, our accounting for finance leases remained substantially unchanged. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment," which amended ASC 350 "Intangibles-Goodwill and Other." The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption was permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We have early adopted this guidance prospectively as of August 31, 2019, and the adoption did not have a material impact on our financial statements. Recent Accounting Guidance Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) (ASU 2016-13). This guidance is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this guidance replace the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to credit loss estimates. This ASU will be effective for fiscal years beginning after December 15, 2019. We have developed our models to estimate lifetime expected credit losses on our loans primarily using a lifetime loss methodology. We have used these models to execute our process for estimating the allowance for credit losses under the new standard in parallel with our existing process for estimating the allowance for credit losses based on incurred losses and have developed an appropriate governance process for our estimate of expected credit losses under the new standard. The adoption of this standard will be applied through a cumulative effect adjustment to retained earnings as of January 1, 2020. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13). The primary objective of ASU 2018-13 is to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, although early adoption is permitted. We plan to adopt the ASU on January 1, 2020. The adoption of ASU 2018-13 is not expected to significantly impact our consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (ASU 2019-04). This guidance clarifies certain aspects of Topic 326 guidance issued in ASU 2016-13 including the scope of the credit losses standard and issues related to accrued interest receivable balances, recoveries, variable interest rates and prepayments. The other amendments in this update clarify certain aspects of Topic 815 and Topic 825. This ASU will be effective for fiscal years after December, 31, 2019. We will adopt this guidance on January 1, 2020. The impact of adopting the Topic 326 amendments is included within the impact of adoption of ASU 2016-13. We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument (ASU 2019-05). The amendments in this Update provide entities with transition relief upon the adoption of ASU 2016-13 by providing an option to elect the fair value option on certain financial instruments measured at amortized cost. This ASU will be effective for fiscal years after December, 31, 2019. We will adopt this guidance on January 1, 2020. We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Financial Instruments - Credit Losses (Topic 326) (ASU 2019-11). The amendments in this Update clarify certain aspects of Topic 326 guidance issued in ASU 2016-13 including guidance providing transition relief for TDRs. This ASU will be effective for fiscal years after December, 31, 2019. We will adopt this guidance on January 1, 2020. The impact of adopting the Topic 326 amendments is included within the impact of adoption of ASU 2016-13. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12). The amendments in this Update simplify the accounting for income taxes by removing certain exceptions for investments, intraperiod allocations, and interim calculations, and add guidance to reduce the complexity of applying Topic 740. This ASU will be effective for fiscal years after December, 31, 2020. We will adopt this guidance on January 1, 2021. We do not expect that the adoption of these amendments will have a material effect on our consolidated financial statements. |
SALES OF BRANCH, SUBSIDIARY A_2
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal groups including discontinued operations | The following table summarizes the calculation of the net gain on disposal of discontinued operations: Year Ended December, 31 ($ in thousands) 2019 2018 2017 Total Net Gain on Disposal After Completion of Sale Proceeds from the transaction $ — $ — $ 63,054 $ 63,054 Compensation expense related to the transaction — 1,003 (3,500 ) (2,497 ) Other transaction costs — 436 (3,431 ) (2,995 ) Net cash proceeds — 1,439 56,123 57,562 Book value of certain assets sold — — (2,455 ) (2,455 ) Book value of MSRs sold — — (37,772 ) (37,772 ) Goodwill — — (2,100 ) (2,100 ) Net gain on disposal $ — $ 1,439 $ 13,796 $ 15,235 The following tables present the financial information of discontinued operations as of the dates and for the periods indicated: Statements of Financial Condition of Discontinued Operations December 31, ($ in thousands) 2019 2018 ASSETS Loans held-for-sale, carried at fair value $ — $ 19,490 Assets of discontinued operations $ — $ 19,490 LIABILITIES Liabilities of discontinued operations $ — $ — Statements of Operations of Discontinued Operations Year Ended December 31, ($ in thousands) 2019 2018 2017 Interest income Loans, including fees $ — $ 665 $ 7,052 Total interest income — 665 7,052 Noninterest income Net gain on disposal — 1,439 13,796 Loan servicing income — — 1,551 Net revenue on mortgage banking activities — 428 42,889 All other income — 2,200 1,871 Total noninterest income — 4,067 60,107 Noninterest expense Salaries and employee benefits — 20 38,374 Occupancy and equipment — — 3,964 Professional fees — — 2,546 Outside Service Fees — — 5,625 Data processing — 8 687 Advertising — — 1,357 Restructuring expense — — 3,794 All other expenses — 108 3,648 Total noninterest expense — 136 59,995 Income from discontinued operations before income taxes — 4,596 7,164 Income tax expense — 1,271 2,929 Income from discontinued operations $ — $ 3,325 $ 4,235 Statements of Cash Flows of Discontinued Operations Year Ended December 31, ($ in thousands) 2019 2018 2017 Net cash provided by operating activities $ — $ 14,916 $ 365,045 Net cash provided by investing activities — — 56,123 Net cash provided by discontinued operations $ — $ 14,916 $ 421,168 |
FAIR VALUES OF FINANCIAL INST_2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets Measured on a Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 36,456 $ — $ 36,456 $ — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 91,299 — 91,299 — Municipal securities 52,689 — 52,689 — Non-agency residential mortgage-backed securities 196 — 196 — Collateralized loan obligations 718,361 — 718,361 — Corporate debt securities 13,579 — 13,579 — Loans held-for-sale, carried at fair value 22,642 — 3,409 19,233 Mortgage servicing rights (1) 1,157 — — 1,157 Derivative assets: Interest rate swaps and caps (1) 3,445 — 3,445 — Foreign exchange contracts (1) 138 — 138 — Liabilities Derivative liabilities: Interest rate swaps and caps (2) 3,717 — 3,717 — Foreign exchange contracts (2) 136 — 136 — (1) Included in Other Assets on the Consolidated Statements of Financial Condition (2) Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Assets Securities available-for-sale: SBA loan pools securities $ 910 $ — $ 910 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 437,442 — 437,442 — Non-agency residential mortgage-backed securities 427 — 427 — Non-agency commercial mortgage-backed securities 132,199 — 132,199 — Collateralized loan obligations 1,421,522 — 1,421,522 — Loans held-for-sale, carried at fair value (1) 27,180 — 2,140 25,040 Mortgage servicing rights (2) 1,770 — — 1,770 Derivative assets - Interest rate swaps and caps (2) 1,534 — 1,534 — Liabilities Derivative liabilities - Interest rate swaps and caps (3) 1,600 — 1,600 — (1) Includes loans held-for-sale carried at fair value of $19.5 million ( $2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations, which are included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition. (2) Included in Other Assets in the Consolidated Statements of Financial Condition. (3) Included in Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. |
Fair Value Liabilities Measured on a Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 : Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019 Assets Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 36,456 $ — $ 36,456 $ — U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 91,299 — 91,299 — Municipal securities 52,689 — 52,689 — Non-agency residential mortgage-backed securities 196 — 196 — Collateralized loan obligations 718,361 — 718,361 — Corporate debt securities 13,579 — 13,579 — Loans held-for-sale, carried at fair value 22,642 — 3,409 19,233 Mortgage servicing rights (1) 1,157 — — 1,157 Derivative assets: Interest rate swaps and caps (1) 3,445 — 3,445 — Foreign exchange contracts (1) 138 — 138 — Liabilities Derivative liabilities: Interest rate swaps and caps (2) 3,717 — 3,717 — Foreign exchange contracts (2) 136 — 136 — (1) Included in Other Assets on the Consolidated Statements of Financial Condition (2) Included in Accrued Expenses and Other Liabilities on the Consolidated Statements of Financial Condition The following table presents our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 : Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Assets Securities available-for-sale: SBA loan pools securities $ 910 $ — $ 910 $ — U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 437,442 — 437,442 — Non-agency residential mortgage-backed securities 427 — 427 — Non-agency commercial mortgage-backed securities 132,199 — 132,199 — Collateralized loan obligations 1,421,522 — 1,421,522 — Loans held-for-sale, carried at fair value (1) 27,180 — 2,140 25,040 Mortgage servicing rights (2) 1,770 — — 1,770 Derivative assets - Interest rate swaps and caps (2) 1,534 — 1,534 — Liabilities Derivative liabilities - Interest rate swaps and caps (3) 1,600 — 1,600 — (1) Includes loans held-for-sale carried at fair value of $19.5 million ( $2.1 million at Level 2 and $17.4 million at Level 3) of discontinued operations, which are included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition. (2) Included in Other Assets in the Consolidated Statements of Financial Condition. (3) Included in Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. |
Reconciliation of Assets Measured at Fair Value on Recurring Basis | The following table presents a reconciliation of assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), on a consolidated operations basis, for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Mortgage servicing rights Balance at beginning of period (1) $ 1,770 $ 31,852 $ 76,121 Total gains or losses (realized/unrealized): Included in earnings—fair value adjustment (4) (264 ) (1,155 ) (10,240 ) Additions — — 12,127 Sales, paydowns, and other (2) (349 ) (28,927 ) (46,156 ) Balance at end of period $ 1,157 $ 1,770 $ 31,852 Loans repurchased or eligible to be repurchased from Ginnie Mae Loan Pools (3) Balance at beginning of period $ 25,040 $ 98,940 $ 58,260 Total gains or losses (realized/unrealized): Included in earnings—fair value adjustment (5) (16 ) (1,378 ) (781 ) Additions 406 23,678 117,215 Sales, settlements, and other (6) (6,197 ) (96,200 ) (75,754 ) Balance at end of period $ 19,233 $ 25,040 $ 98,940 (1) Includes MSRs of discontinued operations, which is included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition, of $0 , $0 , and $37.7 million for the years ended December 31, 2019 , 2018 and 2017 in balance at beginning of period. (2) Includes $37.8 million of MSRs sold as a part of discontinued operations for the year ended December 31, 2017. (3) Includes loans repurchased from GNMA loan pools of discontinued operations, which is included in Assets of Discontinued Operations on the Consolidated Statements of Financial Condition, of $17.3 million , $32.3 million and $58.3 million in balance at beginning of period, and $0 , $17.3 million and $32.3 million in balance at end of period for the years ended December 31, 2019 , 2018 and 2017 . (4) Included in Loan Servicing Income in the Consolidated Statements of Operations. (5) Included in Net Gain on Sale of Loans in the Consolidated Statements of Operations. (6) Included in sales, settlements and other are $66.0 million of GNMA loans subject to repurchase option that were derecognized when the associated mortgage servicing rights were sold during the year ended December 31, 2018. |
Quantitative Information About Level 3 Fair Value Measurements | The following table presents, as of the dates indicated, quantitative information about Level 3 fair value measurements on a recurring basis, other than loans that become severely delinquent and are repurchased out of GNMA loan pools that were valued based on an estimate of the expected loss we will incur on these loans at December 31, 2019 and 2018 : ($ in thousands) Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted-Average) December 31, 2019 Mortgage servicing rights $ 2,323 Discounted cash flow Discount rate 8.75% to 13.00% (11.55%) Prepayment rate 8.00% to 66.34% (15.22%) December 31, 2018 Mortgage servicing rights $ 3,362 Discounted cash flow Discount rate 9.50% to 13.00% (11.27%) Prepayment rate 8.00% to 66.34% (12.67%) |
Fair value option of certain assets | The following table presents the fair value and aggregate principal balance of certain assets, on a consolidated operations basis, under the fair value option as of the dates indicated: December 31, 2019 2018 ($ in thousands) Fair Value Unpaid Principal Balance Difference Fair Value Unpaid Principal Balance Difference Loans held-for-sale, carried at fair value in continuing operations: Total loans $ 22,642 $ 23,455 $ (813 ) $ 7,690 $ 7,906 $ (216 ) Non-accrual loans (1) 8,125 8,370 (245 ) 2,427 2,538 (111 ) Loans past due 90 days or more and still accruing — — — — — — Loans held-for-sale, carried at fair value in discontinued operations: Total loans $ — $ — $ — $ 19,490 $ 20,027 $ (537 ) Non-accrual loans (2) — — — 8,430 8,496 (66 ) Loans past due 90 days or more and still accruing — — — — — — (1) Includes loans guaranteed by the U.S. government of $6.7 million and $1.6 million at December 31, 2019 and 2018 . (2) Includes loans guaranteed by the U.S. government of $0 and $7.6 million , at December 31, 2019 and 2018 . Year Ended December 31, ($ in thousands) 2019 2018 2017 Net gains (losses) from fair value changes Net gain (loss) on sale of loans (continuing operations) $ 106 $ 204 $ (170 ) Net revenue on mortgage banking activities (discontinued operations) — 159 (288 ) |
Fair Value Assets and Liabilities Measured on a Non-Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a non-recurring basis as of the dates indicated: Fair Value Measurement Level ($ in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Assets Impaired loans: Single family residential mortgage $ 3,678 $ — $ — $ 3,678 Commercial and industrial 15,409 — — 15,409 SBA $ 1,711 — — $ 1,711 December 31, 2018 Assets Impaired loans: SBA $ 226 — — $ 226 |
Gain and Losses Recognized on Assets Measured at Fair Value | The following table presents the gains and (losses) recognized on assets measured at fair value on a non-recurring basis for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Impaired loans: Single family residential mortgage $ (490 ) $ (115 ) $ (164 ) Commercial real estate — (1,752 ) — SBA (46 ) (1,048 ) (200 ) Other consumer (88 ) (141 ) (29 ) Other real estate owned: Single family residential (104 ) 229 (284 ) |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents the carrying amounts and estimated fair values of financial assets and liabilities as of the dates indicated: Carrying Amount Fair Value Measurement Level ($ in thousands) Level 1 Level 2 Level 3 Total December 31, 2019 Financial assets Cash and cash equivalents $ 373,472 $ 373,472 $ — $ — $ 373,472 Securities available-for-sale 912,580 — 912,580 — 912,580 Federal Home Loan Bank and other bank stock 59,420 — 59,420 — 59,420 Loans held-for-sale 22,642 — 3,409 19,233 22,642 Loans receivable, net of allowance 5,894,236 — — 5,894,732 5,894,732 Accrued interest receivable 24,523 24,523 — — 24,523 Derivative assets 3,583 — 3,583 — 3,583 Financial liabilities Deposits 5,427,167 — — 5,430,536 5,430,536 Advances from Federal Home Loan Bank 1,195,000 — 1,222,709 — 1,222,709 Long-term debt 173,421 — 180,213 — 180,213 Derivative liabilities 3,853 — 3,853 — 3,853 Accrued interest payable 4,687 4,687 — — 4,687 December 31, 2018 Financial assets Cash and cash equivalents $ 391,592 $ 391,592 $ — $ — $ 391,592 Securities available-for-sale 1,992,500 — 1,992,500 — 1,992,500 Federal Home Loan Bank and other bank stock 68,094 — 68,094 — 68,094 Loans held-for-sale (1) 27,606 — 2,566 25,040 27,606 Loans receivable, net of allowance 7,638,681 — — 7,513,910 7,513,910 Accrued interest receivable 38,807 38,807 — — 38,807 Derivative assets 1,534 — 1,534 — 1,534 Financial liabilities Deposits 7,916,644 — — 7,689,324 7,689,324 Advances from Federal Home Loan Bank 1,520,000 — 1,517,761 — 1,517,761 Long-term debt 173,174 — 174,059 — 174,059 Derivative liabilities 1,600 — 1,600 — 1,600 Accrued interest payable 13,253 13,253 — — 13,253 (1) Includes loans held-for-sale carried at fair value of $19.5 million ( $2.1 million at Level 2 and $17.4 million |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Investment Securities | The following table presents the amortized cost and fair value of the investment securities portfolio as of the dates indicated: ($ in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 37,613 $ — $ (1,157 ) $ 36,456 U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 91,543 16 (260 ) 91,299 Municipal securities 52,997 51 (359 ) 52,689 Non-agency residential mortgage-backed securities 191 5 — 196 Collateralized loan obligations 733,605 — (15,244 ) 718,361 Corporate debt securities 13,500 79 — 13,579 Total securities available-for-sale $ 929,449 $ 151 $ (17,020 ) $ 912,580 December 31, 2018 Securities available-for-sale: SBA loan pool securities $ 911 $ — $ (1 ) $ 910 U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 461,987 — (24,545 ) 437,442 Non-agency residential mortgage-backed securities 418 9 — 427 Non-agency commercial mortgage-backed securities 132,199 — — 132,199 Collateralized loan obligations 1,431,171 141 (9,790 ) 1,421,522 Total securities available-for-sale $ 2,026,686 $ 150 $ (34,336 ) $ 1,992,500 |
Proceeds from Sales and Calls of Securities and Associated Gross Gains and Losses | The following table presents proceeds from sales and calls of securities available-for-sale and the associated gross gains and losses realized through earnings upon the sales and calls of securities available-for-sale for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Gross realized gains on sales and calls of securities available-for-sale $ 556 $ 5,532 $ 14,768 Gross realized losses on sales and calls of securities available-for-sale (5,408 ) — — Net realized (losses) gains on sales and calls of securities available-for-sale $ (4,852 ) $ 5,532 $ 14,768 Proceeds from sales and calls of securities available-for-sale $ 1,249,588 $ 1,025,471 $ 1,500,459 |
Summary of Investment Securities with Unrealized Losses | The following table summarizes the investment securities with unrealized losses by security type and length of time in a continuous unrealized loss position as of the dates indicated: Less Than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2019 Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ 35,872 $ (1,157 ) $ — $ — $ 35,872 $ (1,157 ) U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 73,379 (260 ) — — 73,379 (260 ) Municipal securities 31,723 (359 ) — — 31,723 (359 ) Collateralized loan obligations 49,553 (447 ) 668,808 (14,797 ) 718,361 (15,244 ) Corporate debt securities — — — — — — Total securities available-for-sale $ 190,527 $ (2,223 ) $ 668,808 $ (14,797 ) $ 859,335 $ (17,020 ) December 31, 2018 Securities available-for-sale: SBA loan pool securities $ — $ — $ 910 $ (1 ) $ 910 $ (1 ) U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities 13,494 (133 ) 423,916 (24,412 ) 437,410 (24,545 ) Non-agency residential mortgage-backed securities 90 — 16 — 106 — Collateralized loan obligations 1,364,317 (9,480 ) 32,790 (310 ) 1,397,107 (9,790 ) Total securities available-for-sale $ 1,377,901 $ (9,613 ) $ 457,632 $ (24,723 ) $ 1,835,533 $ (34,336 ) |
Summary of Composition and Repricing and Yield Information | The following table presents the composition and the repricing and yield information of the investment securities portfolio as of December 31, 2019 : One year or less More than One Year through Five Years More than Five Years through Ten Years More than Ten Years Total ($ in thousands) Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Fair Value Weighted-Average Yield Securities available-for-sale: U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities $ — — % $ — — % $ — — % $ 36,456 2.56 % $ 36,456 2.56 % U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations 81,347 2.28 % — — % 9,952 2.47 % — — % 91,299 2.30 % Municipal securities — — % — — % — — % 52,689 2.79 % 52,689 2.79 % Non-agency residential mortgage-backed securities — — % — — % — — % 196 6.28 % 196 6.28 % Collateralized loan obligations 718,361 3.61 % — — % — — % — — % 718,361 3.61 % Corporate debt securities — — % 13,579 4.11 % — — % — — % 13,579 4.11 % Total securities available-for-sale $ 799,708 3.47 % $ 13,579 4.11 % $ 9,952 2.47 % $ 89,341 2.70 % $ 912,580 3.40 % |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Leases Receivable | The following table presents the balances in our loan portfolio as of the dates indicated: ($ in thousands) Traditional Loans NTM Loans Total Loans Receivable December 31, 2019 Commercial: Commercial and industrial $ 1,691,270 $ — $ 1,691,270 Commercial real estate 818,817 — 818,817 Multifamily 1,494,528 — 1,494,528 SBA 70,981 — 70,981 Construction 231,350 — 231,350 Consumer: Single family residential mortgage 992,417 598,357 1,590,774 Other consumer 51,866 2,299 54,165 Total loans (1) $ 5,351,229 $ 600,656 $ 5,951,885 Percentage to total loans 89.9 % 10.1 % 100.0 % Allowance for loan losses (57,649 ) Loans receivable, net $ 5,894,236 December 31, 2018 Commercial: Commercial and industrial $ 1,944,142 $ — $ 1,944,142 Commercial real estate 867,013 — 867,013 Multifamily 2,241,246 — 2,241,246 SBA 68,741 — 68,741 Construction 203,976 — 203,976 Consumer: Single family residential mortgage 1,481,172 824,318 2,305,490 Other consumer 67,852 2,413 70,265 Total loans (1) $ 6,874,142 $ 826,731 $ 7,700,873 Percentage to total loans 89.3 % 10.7 % 100.0 % Allowance for loan losses (62,192 ) Loans receivable, net $ 7,638,681 (1) Total loans includes deferred loan origination costs/(fees) and premiums/(discounts), net of $14.3 million and $17.7 million at December 31, 2019 and 2018 . |
Risk Categories for Loans and Leases | The following table presents the risk categories for total loans as of December 31, 2019 : December 31, 2019 ($ in thousands) Pass Special Mention Substandard Doubtful Total NTM loans: Single family residential mortgage $ 579,548 $ 5,790 $ 13,019 $ — $ 598,357 Other consumer 2,299 — — — 2,299 Total NTM loans 581,847 5,790 13,019 — 600,656 Traditional loans: Commercial: Commercial and industrial 1,580,269 45,323 65,678 — 1,691,270 Commercial real estate 813,846 2,532 2,439 — 818,817 Multifamily 1,484,931 4,256 5,341 — 1,494,528 SBA 60,982 2,760 5,621 1,618 70,981 Construction 229,771 1,579 — — 231,350 Consumer: Single family residential mortgage 979,705 4,945 7,250 517 992,417 Other consumer 51,032 346 488 — 51,866 Total traditional loans 5,200,536 61,741 86,817 2,135 5,351,229 Total loans $ 5,782,383 $ 67,531 $ 99,836 $ 2,135 $ 5,951,885 The following table presents the risk categories for total loans as of December 31, 2018 : December 31, 2018 ($ in thousands) Pass Special Mention Substandard Doubtful Total NTM loans: Single family residential mortgage $ 811,056 $ 10,966 $ 2,296 $ — $ 824,318 Other consumer 2,413 — — — 2,413 Total NTM loans 813,469 10,966 2,296 — 826,731 Traditional loans: Commercial: Commercial and industrial 1,859,569 41,302 43,271 — 1,944,142 Commercial real estate 851,604 11,376 4,033 — 867,013 Multifamily 2,239,301 — 1,945 — 2,241,246 SBA 53,433 6,114 8,340 854 68,741 Construction 197,851 3,606 2,519 — 203,976 Consumer: Single family residential mortgage 1,461,721 2,602 16,849 — 1,481,172 Other consumer 66,228 979 645 — 67,852 Total traditional loans 6,729,707 65,979 77,602 854 6,874,142 Total loans $ 7,543,176 $ 76,945 — $ 79,898 $ 854 $ 7,700,873 The following table presents our Green Loans first lien portfolio at December 31, 2019 by FICO scores that were obtained during the quarter ended December 31, 2019 , comparing to the FICO scores for those same loans that were obtained during the quarter ended December 31, 2018 : By FICO Scores Obtained During the Quarter Ended December 31, 2019 By FICO Scores Obtained During the Quarter Ended December 31, 2018 Change ($ in thousands) Count Amount Percent Count Amount Percent Count Amount Percent FICO score 800+ 13 $ 3,509 7.0 % 16 $ 10,617 15.7 % (3 ) $ (7,108 ) (66.9 )% 700-799 38 27,011 54.1 % 50 34,888 51.5 % (12 ) (7,877 ) (22.6 )% 600-699 10 12,400 24.8 % 16 14,098 20.8 % (6 ) (1,698 ) (12.0 )% <600 5 3,286 6.6 % 3 4,347 6.4 % 2 (1,061 ) (24.4 )% No FICO score 3 3,753 7.5 % 3 3,779 5.6 % — (26 ) (0.7 )% Total 69 $ 49,959 100.0 % 88 $ 67,729 100.0 % (19 ) $ (17,770 ) (26.2 )% LTV Ratios Green Interest Only Negative Amortization Total ($ in thousands) Count Amount Percent Count Amount Percent Count Amount Percent Count Amount Percent December 31, 2019 < 61 54 $ 37,804 75.6 % 231 $ 346,899 63.6 % 9 $ 3,027 100.0 % 294 $ 387,730 64.8 % 61-80 12 8,531 17.1 % 136 183,664 33.7 % — — — % 148 192,195 32.1 % 81-100 3 3,624 7.3 % 6 7,081 1.3 % — — — % 9 10,705 1.8 % > 100 — — — % 3 7,727 1.4 % — — — % 3 7,727 1.3 % Total 69 $ 49,959 100.0 % 376 $ 545,371 100.0 % 9 $ 3,027 100.0 % 454 $ 598,357 100.0 % December 31, 2018 < 61 69 $ 51,827 76.5 % 312 $ 495,930 65.9 % 11 $ 3,528 100.0 % 392 $ 551,285 66.9 % 61-80 17 13,476 19.9 % 201 245,568 32.6 % — — — % 218 259,044 31.4 % 81-100 2 2,426 3.6 % 5 7,441 1.0 % — — — % 7 9,867 1.2 % > 100 — — — % 1 4,122 0.5 % — — — % 1 4,122 0.5 % Total 88 $ 67,729 100.0 % 519 $ 753,061 100.0 % 11 $ 3,528 100.0 % 618 $ 824,318 100.0 % |
Aging of Recorded Investment in Past Due Loans and Leases | The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 , excluding accrued interest receivable (which is not considered to be material), by class of loans: December 31, 2019 ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total NTM loans: Single family residential mortgage $ 3,973 $ 3,535 $ 13,019 $ 20,527 $ 577,830 $ 598,357 Other consumer — — — — 2,299 2,299 Total NTM loans 3,973 3,535 13,019 20,527 580,129 600,656 Traditional loans: Commercial: Commercial and industrial 780 5,670 3,862 10,312 1,680,958 1,691,270 Commercial real estate — — — — 818,817 818,817 Multifamily — — — — 1,494,528 1,494,528 SBA 586 842 2,152 3,580 67,401 70,981 Construction — — — — 231,350 231,350 Consumer: Single family residential mortgage 13,752 3,496 5,606 22,854 969,563 992,417 Other consumer 199 40 95 334 51,532 51,866 Total traditional loans 15,317 10,048 11,715 37,080 5,314,149 5,351,229 Total loans $ 19,290 $ 13,583 $ 24,734 $ 57,607 $ 5,894,278 $ 5,951,885 The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 , excluding accrued interest receivable (which is not considered to be material), by class of loans: December 31, 2018 ($ in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 89 Days Past due Total Past Due Current Total NTM loans: Single family residential mortgage $ 7,430 $ 617 $ — $ 8,047 $ 816,271 $ 824,318 Other consumer — — — — 2,413 2,413 Total NTM loans 7,430 617 — 8,047 818,684 826,731 Traditional loans: Commercial: Commercial and industrial 350 1,596 3,340 5,286 1,938,856 1,944,142 Commercial real estate — 582 — 582 866,431 867,013 Multifamily 356 — — 356 2,240,890 2,241,246 SBA 551 77 862 1,490 67,251 68,741 Construction — 939 — 939 203,037 203,976 Consumer: Single family residential mortgage 7,321 3,160 9,198 19,679 1,461,493 1,481,172 Other consumer 3,132 573 446 4,151 63,701 67,852 Total traditional loans 11,710 6,927 13,846 32,483 6,841,659 6,874,142 Total loans $ 19,140 $ 7,544 $ 13,846 $ 40,530 $ 7,660,343 $ 7,700,873 |
Composition of Nonaccrual Loans and Leases | The following table presents the composition of non-accrual loans as of the dates indicated: December 31, 2019 2018 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Commercial: Commercial and industrial $ — $ 19,114 $ 19,114 $ — $ 5,455 $ 5,455 SBA — 5,230 5,230 — 2,574 2,574 Consumer: Single family residential mortgage 13,019 5,606 18,625 — 12,929 12,929 Other consumer — 385 385 — 627 627 Total $ 13,019 $ 30,335 $ 43,354 $ — $ 21,585 $ 21,585 |
Allowance for Loan and Lease Losses and Recorded Investment, Excluding Accrued Interest, in Loans | The following table presents a summary of activity in the ALL for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 62,192 $ 49,333 $ 40,444 Loans charged-off (41,766 ) (18,499 ) (5,581 ) Recoveries of loans previously charged off 836 1,143 771 Net charge-offs (40,930 ) (17,356 ) (4,810 ) Provision for loan losses 36,387 30,215 13,699 Balance at end of year $ 57,649 $ 62,192 $ 49,333 The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans by portfolio segment and is based on the impairment method as of or for the year ended December 31, 2019 : ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total ALL: Balance at December 31, 2018 $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Charge-offs (36,787 ) — (6 ) (2,121 ) (371 ) — (2,369 ) (112 ) (41,766 ) Recoveries 138 — — 217 — 12 150 319 836 Net charge-offs (36,649 ) — (6 ) (1,904 ) (371 ) 12 (2,219 ) 207 (40,930 ) Transfer of loans to held-for-sale — — — — — — — — — Provision (reversal of provision) 40,811 (733 ) (6,559 ) 3,197 816 (12 ) (423 ) (710 ) 36,387 Balance at December 31, 2019 $ 22,353 $ 5,941 $ 11,405 $ 3,120 $ 3,906 $ — $ 10,486 $ 438 $ 57,649 Individually evaluated for impairment $ 3,367 $ — $ — $ 2,045 $ — $ — $ 574 $ 4 $ 5,990 Collectively evaluated for impairment 18,986 5,941 11,405 1,075 3,906 — 9,912 434 51,659 Total ending ALL $ 22,353 $ 5,941 $ 11,405 $ 3,120 $ 3,906 $ — $ 10,486 $ 438 $ 57,649 Loans: Individually evaluated for impairment $ 20,236 $ — $ — $ 5,136 $ — $ — $ 23,657 $ 679 $ 49,708 Collectively evaluated for impairment 1,671,034 818,817 1,494,528 65,845 231,350 — 1,567,117 53,486 5,902,177 Total loans $ 1,691,270 $ 818,817 $ 1,494,528 $ 70,981 $ 231,350 $ — $ 1,590,774 $ 54,165 $ 5,951,885 The following table presents the activity and balance in the ALL and the recorded investment, excluding accrued interest, in loans by portfolio segment and is based on the impairment method as of or for the year ended December 31, 2018 : ($ in thousands) Commercial and Industrial Commercial Real Estate Multifamily SBA Construction Lease Financing Single Family Residential Mortgage Other Consumer Total ALL: Balance at December 31, 2017 $ 14,280 $ 4,971 $ 13,265 $ 1,701 $ 3,318 $ — $ 10,996 $ 802 $ 49,333 Charge-offs (1,927 ) — (14 ) (1,927 ) — — (558 ) (14,073 ) (18,499 ) Recoveries 396 — — 273 — 15 436 23 1,143 Net charge-offs (1,531 ) — (14 ) (1,654 ) — 15 (122 ) (14,050 ) (17,356 ) Provision (reversal of provision) 5,442 1,703 4,719 1,780 143 (15 ) 2,254 14,189 30,215 Balance at December 31, 2018 $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Individually evaluated for impairment $ — $ — $ — $ 562 $ — $ — $ 161 $ 106 $ 829 Collectively evaluated for impairment 18,191 6,674 17,970 1,265 3,461 — 12,967 835 61,363 Total ending ALL $ 18,191 $ 6,674 $ 17,970 $ 1,827 $ 3,461 $ — $ 13,128 $ 941 $ 62,192 Loans: Individually evaluated for impairment $ 5,455 $ — $ — $ 2,376 $ — $ — $ 18,193 $ 921 $ 26,945 Collectively evaluated for impairment 1,938,687 867,013 2,241,246 66,365 203,976 — 2,287,297 69,344 7,673,928 Total loans $ 1,944,142 $ 867,013 $ 2,241,246 $ 68,741 $ 203,976 $ — $ 2,305,490 $ 70,265 $ 7,700,873 |
Loans and Leases Individually Evaluated for Impairment by Class of Loans and Leases | The following table presents information on impaired loans, disaggregated by class, for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Commercial: Commercial and industrial $ 17,263 $ 320 $ 315 $ 5,380 $ 4 $ 4 $ 1,034 $ — $ — Commercial real estate 145 — — — — — — — — SBA 4,673 15 15 986 4 3 357 — — Construction 1,889 — — — — — 382 — — Lease Financing — — — — — — 19 — — Consumer: Single family residential mortgage 21,198 234 199 19,694 236 199 12,611 199 182 Other consumer 883 13 13 771 12 11 1,757 8 8 Total $ 46,051 $ 582 $ 542 $ 26,831 $ 256 $ 217 $ 16,158 $ 207 $ 190 The following table presents loans individually evaluated for impairment by class of loans as of the dates indicated. The recorded investment, excluding accrued interest, presents client balances net of any partial charge-offs recognized on the loans and net of any deferred fees and costs and any purchase premium or discount. December 31, 2019 2018 ($ in thousands) Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Unpaid Principal Balance Recorded Investment Allowance for Loan Losses With no related allowance recorded: Commercial: Commercial and industrial $ 1,471 $ 1,460 $ — $ 5,491 $ 5,455 $ — SBA 1,439 1,379 — 1,668 1,588 — Consumer: Single family residential mortgage 19,319 19,405 — 12,115 12,161 — Other consumer 671 675 — 469 469 — With an allowance recorded: Commercial: Commercial and industrial 18,776 18,776 3,367 — — — SBA 3,921 3,757 2,045 823 788 562 Consumer: Single family residential mortgage 4,213 4,252 574 5,993 6,032 161 Other consumer 4 4 4 468 452 106 Total $ 49,814 $ 49,708 $ 5,990 $ 27,027 $ 26,945 $ 829 |
Troubled Debt Restructurings | Troubled debt restructured loans consisted of the following as of the dates indicated: December 31, 2019 2018 ($ in thousands) NTM Loans Traditional Loans Total NTM Loans Traditional Loans Total Commercial: Commercial and industrial $ — $ 16,245 $ 16,245 $ — $ 2,276 $ 2,276 SBA — 266 266 — 187 187 Consumer: Single family residential mortgage 2,638 2,394 5,032 2,668 2,596 5,264 Other consumer 294 — 294 294 — 294 Total $ 2,932 $ 18,905 $ 21,837 $ 2,962 $ 5,059 $ 8,021 The following table summarizes the pre-modification and post-modification balances of the new TDRs for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial: Commercial and industrial 12 $ 18,512 $ 15,865 2 $ 171 $ 163 1 $ 2,706 $ 2,706 SBA 2 3,214 869 1 187 187 — — — Consumer: Single family residential mortgage — — — — — — 3 2,416 2,433 Total 14 $ 21,726 $ 16,734 3 $ 358 $ 350 4 $ 5,122 $ 5,139 For the years ended December 31, 2019 , 2018 , and 2017 , there were no loans that were modified as TDRs during the past 12 months that had subsequent payment defaults during the periods. The following table summarizes the TDRs by modification type for the periods indicated: Modification Type Change in Principal Payments and Interest Rates Change in Principal Payments Change in Interest Rates Chapter 7 Bankruptcy Other Total ($ in thousands) Count Amount Count Amount Count Amount Count Amount Count Amount Count Amount Year ended December 31, 2019 Commercial: Commercial and industrial 12 $ 15,865 — $ — — $ — — $ — — $ — 12 $ 15,865 SBA 2 869 — — — — — — — — 2 869 Consumer: Single family residential mortgage — — — — — — — — — — — — Total 14 $ 16,734 — $ — — $ — — $ — — $ — 14 $ 16,734 Year ended December 31, 2018 Commercial: Commercial and industrial — $ — 2 $ 163 — $ — — $ — — $ — 2 $ 163 SBA — — — — — — — — 1 187 1 187 Total — $ — 2 $ 163 — $ — — $ — 1 $ 187 3 $ 350 Year ended December 31, 2017 Commercial: Commercial and industrial — $ — 1 $ 2,706 — $ — — $ — — $ — 1 $ 2,706 Consumer: Single family residential mortgage 2 1,290 1 1,143 — — — — — — 3 2,433 Total 2 $ 1,290 2 $ 3,849 — $ — — $ — — $ — 4 $ 5,139 |
Schedule of Financing Receivables, Purchases and Sales | The following table presents loans purchased and/or sold by portfolio segment, excluding loans held-for-sale, loans acquired in business combinations or sold in sales of branches and business units, and PCI loans for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Purchases Sales Purchases Sales Purchases Sales Consumer: Single family residential mortgage — — 59,481 — — — Other consumer — — — — — — Total $ — $ — $ 59,481 $ — $ — $ — |
Financing Receivable, Significant Activity | The following table presents loans transferred from (to) loans held-for-sale by portfolio segment, excluding loans transferred in connection with sales of branches and business units, and PCI loans for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands) Transfers from Held-For-Sale Transfers to Held-For-Sale Transfers from Held-For-Sale Transfers to Held-For-Sale Transfers from Held-For-Sale Transfers to Held-For-Sale Commercial: Commercial and industrial $ — $ — $ — $ (1,133 ) $ — $ (3,924 ) Commercial real estate — (573 ) — — — (1,329 ) Multifamily — (752,087 ) — (81,449 ) — (6,583 ) SBA — (559 ) — — — (1,865 ) Construction — (2,519 ) — (434 ) — (1,528 ) Consumer: Single family residential mortgage — (383,859 ) — (289,617 ) 88,591 (450,625 ) Other consumer — — — (4,362 ) — — Total $ — $ (1,139,597 ) $ — $ (376,995 ) $ 88,591 $ (465,854 ) |
Non Traditional Mortgages Portfolio | The following table presents the composition of the NTM portfolio as of the dates indicated: December 31, 2019 2018 ($ in thousands) Count Amount Percent Count Amount Percent Green Loans (HELOC) - first liens 69 $ 49,959 8.3 % 88 $ 67,729 8.2 % Interest only - first liens 376 545,371 90.8 % 519 753,061 91.1 % Negative amortization 9 3,027 0.5 % 11 3,528 0.4 % Total NTM - first liens 454 598,357 99.6 % 618 824,318 99.7 % Green Loans (HELOC) - second liens 7 2,299 0.4 % 10 2,413 0.3 % Total NTM - second liens 7 2,299 0.4 % 10 2,413 0.3 % Total NTM loans 461 $ 600,656 100.0 % 628 $ 826,731 100.0 % Total loans $ 5,951,885 $ 7,700,873 Percentage to total loans 10.1 % 10.7 % |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Including Capital Leases | The following table summarizes premises and equipment, net, as of the dates indicated: December 31, ($ in thousands) 2019 2018 Land $ 9,020 $ 9,020 Building and improvement 109,450 109,228 Furniture, fixtures, and equipment 48,923 41,576 Leasehold improvements 15,052 13,531 Construction in process 221 1,043 Total 182,666 174,398 Less accumulated depreciation (54,645 ) (45,004 ) Premises and equipment, net $ 128,021 $ 129,394 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense and Supplemental Cash Flow Information | The components of lease expense were as follows: Year Ended December 31, ($ in thousands) 2019 Operating Lease Expense $ 6,622 Variable Lease Expense 356 Sublease Income (250 ) Total Lease Expense $ 6,728 Supplemental cash flow information related to leases was as follows: Year Ended December 31, ($ in thousands) 2019 Cash paid for amounts included in the measurement of lease liabilities for operating leases: Operating cash flows $ 6,989 ROU assets obtained in the exchange for lease liabilities: ROU assets obtained in exchange for lease liabilities $ 5,332 ROU assets recognized upon adoption of new lease standard $ 23,332 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases was as follows: ($ in thousands) December 31, 2019 Operating Leases: Operating lease right-of-use assets $ 22,540 Operating lease liabilities 23,692 December 31, 2019 Weighted-average remaining lease term (in years): Operating leases 6.69 years Weighted-average discount rate: Operating leases 2.92 % |
Maturities of Lease Liabilities | Maturities of operating lease liabilities at December 31, 2019 were as follows: ($ in thousands) Operating Leases 2020 $ 6,727 2021 4,965 2022 3,387 2023 2,578 2024 1,710 Thereafter 7,046 Total lease payments 26,413 Less: present value discount (2,721 ) Total Lease Liability $ 23,692 |
SERVICING RIGHTS (Tables)
SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule Of Income (Loss) From Servicing Rights | The following table presents a composition of total income from servicing rights, which is reported in Loan Servicing Income on the Consolidated Statements of Operations for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Servicing fees for sold loans with servicing retained $ 1,291 $ 5,048 $ 19,642 Losses on the fair value and amortization of servicing rights (612 ) (1,328 ) (17,066 ) Total income from servicing rights (1) $ 679 $ 3,720 $ 2,576 (1) Includes $0 , $0 and $1.6 million in income from discontinued operations for the years ended December 31, 2019 , 2018 and 2017 . |
Servicing Rights | The following table presents a composition of servicing rights as of the dates indicated: December 31, ($ in thousands) 2019 2018 Mortgage servicing rights, at fair value $ 1,157 $ 1,770 SBA servicing rights, at cost 1,142 1,658 Total $ 2,299 $ 3,428 |
Mortgage Servicing Rights Fair Value and Weighted Average Life | The following table presents the key characteristics, inputs and economic assumptions used to estimate the fair value of the MSRs as of the dates indicated: December 31, ($ in thousands) 2019 2018 Fair value of retained MSRs $ 1,157 $ 1,704 Discount rate 13.00 % 13.00 % Constant prepayment rate 18.96 % 17.21 % Weighted-average life (in years) 4.41 4.93 December 31, ($ in thousands) 2019 2018 Servicing rights $ 1,142 $ 1,658 Discount rate 8.75 % 9.50 % Constant prepayment rate 8.00 % 8.00 % Weighted-average life (in years) 3.75 4.29 |
Mortgage Servicing Rights | The following table presents activity in the MSRs for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 1,770 $ 31,852 $ 76,121 Additions — — 12,127 Changes in fair value resulting from valuation inputs or assumptions (265 ) (1,155 ) (10,240 ) Sales of servicing rights (1) — (28,549 ) (39,345 ) Other—loans paid off (348 ) (378 ) (6,811 ) Balance at end of year $ 1,157 $ 1,770 $ 31,852 (1) Includes $37.8 million of MSRs sold as a part of discontinued operations for the year ended December 31, 2017. |
Small Business Administration Servicing Rights | The following table presents activity in the SBA servicing rights for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 1,658 $ 1,856 $ 1,496 Additions — 127 761 Amortization, including prepayments (493 ) (298 ) (318 ) Impairment (23 ) (27 ) (83 ) Balance at end of year $ 1,142 $ 1,658 $ 1,856 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Schedule of Real Estate Owned | The following table presents the activity in other real estate owned for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 672 $ 1,796 $ 2,502 Additions 276 672 3,086 Sales and net direct write-downs (803 ) (2,038 ) (3,556 ) Net change in valuation allowance (145 ) 242 (236 ) Balance at end of year $ — $ 672 $ 1,796 |
Activities in Other Real Estate Owned Valuation Allowance | The following table presents the activity in the other real estate owned valuation allowance for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ — $ 242 $ 6 Additions 145 143 242 Recoveries — (90 ) — Net direct write-downs and removals from sale (145 ) (295 ) (6 ) Balance at end of year $ — $ — $ 242 |
Expenses Related to Foreclosed Assets Included in Loan Servicing and Foreclosure Expenses | The following table presents expenses related to foreclosed assets included in All Other Expense on the Consolidated Statements of Operations for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Net loss on sales $ 40 $ (13 ) $ (48 ) Operating expenses, net of rental income — (134 ) (51 ) Total $ 40 $ (147 ) $ (99 ) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying amount of goodwill for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Goodwill balance at beginning of the year $ 37,144 $ 37,144 $ 39,244 Goodwill adjustments for discontinued operations — — (2,100 ) Goodwill balance at end of year $ 37,144 $ 37,144 $ 37,144 Accumulated impairment losses at end of year $ 2,100 $ 2,100 $ 2,100 |
Other Intangible Assets | The following table presents a summary of other intangible assets as of the dates indicated: ($ in thousands) Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2019 Core deposit intangibles $ 30,904 $ 26,753 $ 4,151 December 31, 2018 Core deposit intangibles $ 30,904 $ 24,558 $ 6,346 |
Estimated Future Amortization Expense | The following table presents estimated future amortization expenses as of December 31, 2019 : ($ in thousands) Estimated Future Amortization Expense 2020 $ 1,518 2021 1,082 2022 799 2023 517 2024 235 2025 and After — Total $ 4,151 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Components of Interest Bearing Deposits | The following table presents the components of deposits as of the dates indicated: December 31, ($ in thousands) 2019 2018 Noninterest-bearing deposits $ 1,088,516 $ 1,023,360 Interest-bearing deposits Interest-bearing demand deposits 1,533,882 1,556,410 Money market accounts 715,479 873,153 Savings accounts 885,246 1,265,847 Certificates of deposit of $250,000 or less 582,772 2,388,592 Certificates of deposit of more than $250,000 621,272 809,282 Total interest-bearing deposits 4,338,651 6,893,284 Total deposits $ 5,427,167 $ 7,916,644 |
Schedule of Brokered Deposits | The following table presents a summary of brokered deposits as of the dates indicated: December 31, ($ in thousands) 2019 2018 Interest-bearing demand deposits $ — $ 770 Money market accounts 10,000 164,505 Certificates of deposit of $250,000 or less — 1,543,269 Certificates of deposit of more than $250,000 — — Total brokered deposits $ 10,000 $ 1,708,544 |
Scheduled Maturities of Time Deposits | The following table presents scheduled maturities of certificates of deposit as of December 31, 2019 : ($ in thousands) 2020 2021 2022 2023 2024 Total Certificates of deposit of $250,000 or less $ 527,920 $ 46,186 $ 4,300 $ 2,795 $ 1,571 $ 582,772 Certificates of deposit of more than $250,000 578,583 15,433 26,442 814 — 621,272 Total certificates of deposit $ 1,106,503 $ 61,619 $ 30,742 $ 3,609 $ 1,571 $ 1,204,044 |
FEDERAL HOME LOAN BANK ADVANC_2
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Federal Home Loan Bank Advances, Financial Data | The following table presents financial data of FHLB advances as of the dates or for the periods indicated: As of or For the Year Ended December 31, ($ in thousands) 2019 2018 2017 Weighted-average interest rate at end of year 2.27 % 2.57 % 1.60 % Average interest rate during the year 2.55 % 2.15 % 1.23 % Average balance $ 1,264,945 $ 1,627,608 $ 1,054,978 Maximum amount outstanding at any month-end $ 1,850,000 $ 2,030,000 $ 1,695,000 Balance at end of year $ 1,195,000 $ 1,520,000 $ 1,695,000 The following table presents the advances from the FHLB as of the dates indicated: ($ in thousands) December 31, December 31, Fixed rate: Outstanding balance $ 730,000 $ 805,000 Interest rates ranging from 1.82 % 1.61 % Interest rates ranging to 3.32 % 3.32 % Weighted average interest rate 2.66 % 2.58 % Variable rate: Outstanding balance 465,000 715,000 Weighted average interest rate 1.66 % 2.56 % |
Schedule of Federal Home Loan Banks Fiscal Year Maturity | The following table presents contractual maturities by year of the FHLB advances as of December 31, 2019 : ($ in thousands) 2020 2021 2022 2023 2024 and After Total Fixed rate $ 174,000 $ 145,000 $ 46,000 $ 45,000 $ 320,000 $ 730,000 Variable rate 465,000 — — — — 465,000 Total $ 639,000 $ 145,000 $ 46,000 $ 45,000 $ 320,000 $ 1,195,000 |
LONG-TERM DEBT LONG-TERM DEBT (
LONG-TERM DEBT LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table presents our long-term debt as of the dates indicated: December 31, 2019 2018 ($ in thousands) Par Value Unamortized Debt Issuance Cost and Discount Par Value Unamortized Debt Issuance Cost and Discount 5.25% senior notes due April 15, 2025 $ 175,000 $ (1,579 ) $ 175,000 $ (1,826 ) Total $ 175,000 $ (1,579 ) $ 175,000 $ (1,826 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table presents the components of income tax expense (benefit) of continuing operations for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Current income taxes: Federal $ 3,900 $ 5,720 $ (2,215 ) State 941 5,035 6,006 Total current income tax expense 4,841 10,755 3,791 Deferred income taxes: Federal (1,492 ) (4,418 ) (25,938 ) State 870 (1,493 ) (4,434 ) Total deferred income tax expense (622 ) (5,911 ) (30,372 ) Income tax expense (benefit) $ 4,219 $ 4,844 $ (26,581 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the recorded income tax expense (benefit) of continuing operations to the amount of taxes computed by applying the applicable statutory Federal income tax rate of 21.0% to income from continuing operations before income taxes for the year ended December 31, 2019 and 2018 , and 35.0% for the year ended December 31, 2017 : Year Ended December 31, 2019 2018 2017 Computed expected income tax expense (benefit) at Federal statutory rate 21.0 % 21.0 % 35.0 % Increase (decrease) resulting from: Proportional amortization 12.6 % 4.3 % 5.1 % Other permanent book-tax differences (2.4 )% 0.4 % (2.1 )% State tax expense, net of federal benefit 5.1 % 5.9 % 3.7 % Income tax credits (investment tax credits and other) (21.3 )% (25.4 )% (149.5 )% Basis reduction in investment in alternative energy partnership 1.3 % 2.2 % 24.9 % Write-off of Goodwill for discontinued operations — % — % 2.7 % Bank owned life insurance policies (1.7 )% (1.0 )% (3.0 )% Equity compensation shortfall (windfall) tax impact 0.6 % (0.5 )% (7.0 )% Remeasurement from the Tax Cuts and Jobs Act — % — % (7.8 )% Reserve for uncertain tax positions (1.0 )% 0.1 % 1.9 % Other, net 0.9 % 3.3 % (2.7 )% Effective tax rates 15.1 % 10.3 % (98.8 )% |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities as of the dates indicated: December 31, ($ in thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 15,874 $ 18,813 Stock-based compensation expense 2,222 2,249 Accrued expenses 3,831 2,678 Reserve for loss on repurchased loans 1,826 736 Federal net operating losses 372 471 State net operating losses 725 759 Federal income tax credits 30,661 27,087 Unrealized loss on securities available-for-sale 4,968 10,046 Deferred loan fees 2,104 2,446 Amortization of intangible assets 1,248 1,101 Prior year state tax deduction 85 1,272 Lease liability 6,978 — Other deferred tax assets 2,835 3,456 Total deferred tax assets 73,729 71,114 Deferred tax liabilities: Investments in partnerships (7,455 ) (5,317 ) Mortgage servicing rights (341 ) (520 ) Deferred loan costs (6,623 ) (8,528 ) Depreciation on premises and equipment (5,796 ) (4,710 ) Right of use asset (6,638 ) — Other deferred tax liabilities (1,970 ) (2,635 ) Total deferred tax liabilities (28,823 ) (21,710 ) Valuation allowance — — Net deferred tax assets $ 44,906 $ 49,404 |
Schedule of Unrecognized Tax Benefits Roll Forward | The table below summarizes the activity related to our unrecognized tax benefits for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Beginning balance $ 1,227 $ 1,047 $ — Increase related to prior year tax positions — — 867 Decrease related to prior year tax positions (101 ) — — Increase in current year tax positions 120 180 180 Decrease related to lapsing of statute of limitations (269 ) — — Ending balance $ 977 $ 1,227 $ 1,047 |
RESERVE FOR LOSS ON REPURCHAS_2
RESERVE FOR LOSS ON REPURCHASED LOANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking Activities [Abstract] | |
Summary of Activities in Reserve for Loss Reimbursements on Sold Loans | The following table presents a summary of activity in the reserve for losses on repurchased loans for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Balance at beginning of year $ 2,506 $ 6,306 $ 7,974 Initial provision for loan repurchases 4,563 126 1,622 Subsequent change in the reserve (660 ) (2,488 ) (1,812 ) Utilization of reserve for loan repurchases (208 ) (1,438 ) (2,238 ) Other adjustments — — 760 Balance at end of year $ 6,201 $ 2,506 $ 6,306 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amount and Market Value of Mortgage Banking Derivatives | The following table presents the notional amount and fair value of derivative instruments included in other assets and other liabilities on the Consolidated Statements of Financial Condition as of the dates indicated. Note 3 contains further disclosures pertaining to the fair value of derivatives. December 31, 2019 2018 ($ in thousands) Notional Amount Fair Value (1) Notional Amount Fair Value (1) Included in assets: Interest rate swaps and cap on loans $ 70,674 $ 3,445 $ 103,812 $ 1,534 Foreign exchange contracts 4,643 138 — — Total included in assets $ 75,317 $ 3,583 $ 103,812 $ 1,534 Included in liabilities: Interest rate swaps and caps on loans $ 70,674 $ 3,717 $ 103,812 $ 1,600 Foreign exchange contracts 4,643 136 — — Total included in liabilities $ 75,317 $ 3,853 $ 103,812 $ 1,600 (1) The fair value of interest rate swaps and cap on loans are included in other assets and accrued expenses and other liabilities, respectively, in the accompanying consolidated balance sheets. The fair value of interest rate swaps on mortgage-backed securities are include in the carrying value of mortgage-backed securities in the accompanying consolidated balance sheets. |
EMPLOYEE STOCK COMPENSATION (Ta
EMPLOYEE STOCK COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table presents stock-based compensation expense and the related tax benefits for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Stock options $ (8 ) $ 174 $ 360 Restricted stock awards and units 5,047 6,391 11,732 Stock appreciation rights — — 42 Total stock-based compensation expense $ 5,039 $ 6,565 $ 12,134 Related tax benefits $ 1,481 $ 1,929 $ 5,078 |
Unrecognized Share-Based Compensation Expense | The following table presents unrecognized stock-based compensation expense as of December 31, 2019 : ($ in thousands) Unrecognized Expense Weighted-Average Remaining Expected Recognition Period Stock option awards $ 4 0.5 years Restricted stock awards and restricted stock units 9,087 2.2 years Total $ 9,091 2.2 years |
Schedule of Stock Options | The weighted-average estimated fair value per share options granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions. Year Ended December 31, ($ in thousands, except per share data) 2019 2018 2017 Grant date fair value of options granted $ — $ — $ — Fair value of options vested $ 67 $ 160 $ 611 Total intrinsic value of options exercised $ 87 $ 96 $ 3,747 Cash received from options exercised $ — $ — $ 2,043 Weighted-average estimated fair value per share of options granted $ — $ — $ — |
Option Activity | The following table represents stock option activity and weighted-average exercise price per share at and for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year 186,973 $ 13.54 210,973 $ 13.99 968,591 $ 13.95 Exercised (74,836 ) $ 13.41 (24,000 ) $ 17.50 (488,281 ) $ 12.53 Forfeited (49,616 ) $ 13.34 — $ — (269,337 ) $ 16.49 Expired — $ — — $ — — $ — Outstanding at end of year 62,521 $ 13.85 186,973 $ 13.54 210,973 $ 13.99 Exercisable at end of year 60,273 $ 13.86 123,125 $ 13.67 105,541 $ 14.68 |
Nonvested Share | The following table represents changes in unvested stock options and related information at and for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year 63,848 $ 13.30 105,432 $ 13.31 518,936 $ 15.04 Granted — $ — — $ — — $ — Vested (17,600 ) $ 13.26 (41,584 ) $ 13.32 (174,833 ) $ 14.10 Forfeited (44,000 ) $ 13.29 — $ — (238,671 ) $ 16.50 Outstanding at end of year 2,248 $ 13.75 63,848 $ 13.30 105,432 $ 13.31 |
Summary of Stock Options Outstanding | The following table presents a summary of stock options outstanding as of December 31, 2019 : Options Outstanding Options Exercisable ($ in thousands) Number of Shares Intrinsic Value Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life Number of Shares Intrinsic Value Weighted-Average Exercise Price per Share Weighted-Average Remaining Contractual Life $10.90 to $11.87 5,508 $ 22 $ 10.90 4.5 years 5,508 $ 22 $ 10.90 4.5 years $11.88 to $12.85 — — $ — 0.0 years — — $ — 0.0 years $12.86 to $13.83 40,848 58 $ 13.48 5.4 years 38,600 55 $ 13.46 5.4 years $13.84 to $14.81 — — $ — 0.0 years — — $ — 0.0 years $14.82 to $15.82 16,165 — $ 15.81 1.5 years 16,165 — $ 15.81 1.5 years Total 62,521 $ 80 $ 13.85 4.3 years 60,273 $ 77 $ 13.86 4.3 years |
Restricted Stock and Restricted Stock Units Activity | The following table presents unvested restricted stock awards and restricted stock units activity for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Price per Share Number of Shares Weighted-Average Price per Share Number of Shares Weighted-Average Price per Share Outstanding at beginning of year 833,601 $ 18.96 911,633 $ 18.73 1,417,144 $ 16.16 Granted (1) 796,547 $ 14.40 650,676 $ 18.89 859,722 $ 20.81 Vested (2) (273,904 ) $ 18.37 (415,994 ) $ 18.65 (854,031 ) $ 15.95 Forfeited (3) (432,762 ) $ 17.93 (312,714 ) $ 18.54 (511,202 ) $ 17.80 Outstanding at end of year 923,482 $ 15.74 833,601 $ 18.96 911,633 $ 18.73 (1) The number of granted shares includes aggregate performance-based shares/units of 174,935 , 306,801 and 152,709 for the years ended December 31, 2019 , 2018 and 2017 . (2) The number of vested shares includes aggregate performance-based shares/units of 37,572 , 44,817 and 10,000 for the years ended December 31, 2019 , 2018 and 2017 (3) The number of forfeited shares includes aggregate performance-based shares/units of 233,999 , 86,936 and 107,545 for the years ended December 31, 2019 , 2018 and 2017 . |
Summary of all Outstanding SARs | The following table represents SARs activity and the weighted-average exercise price per share for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year 1,559,012 $ 11.60 1,559,012 $ 11.60 1,559,047 $ 11.60 Granted — $ — — $ — — $ — Exercised — $ — — $ — — $ — Forfeited — $ — — $ — (35 ) $ 10.09 Outstanding at end of year 1,559,012 $ 11.60 1,559,012 $ 11.60 1,559,012 $ 11.60 Exercisable at end of year 1,559,012 $ 11.60 1,559,012 $ 11.60 1,559,012 $ 11.60 The following table represents changes in unvested SARs and related information as of and for the periods indicated: Year Ended December 31, 2019 2018 2017 Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Number of Shares Weighted-Average Exercise Price per Share Outstanding at beginning of year — $ — — $ — 8,069 $ 10.09 Granted — $ — — $ — — $ — Vested — $ — — $ — (8,034 ) $ 10.09 Forfeited — $ — — $ — (35 ) $ 10.09 Outstanding at end of year — $ — — $ — — $ — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Preferred Stock | The following table presents our total outstanding preferred stock as of dates indicated: December 31, 2019 2018 ($ in thousands) Shares Authorized and Outstanding Liquidation Preference Carrying Value Shares Authorized and Outstanding Liquidation Preference Carrying Value Series D 7.375% non-cumulative perpetual 96,629 $ 96,629 $ 93,162 115,000 $ 115,000 $ 110,873 Series E 7.00% non-cumulative perpetual 100,477 100,477 96,663 125,000 125,000 120,255 Total 197,106 $ 197,106 $ 189,825 240,000 $ 240,000 $ 231,128 |
Changes to Accumulate Other Comprehensive Income by Components | The following table presents changes to AOCI for the periods indicated: Year Ended December 31, ($ in thousands) 2019 2018 2017 Unrealized (loss) gain on securities available-for -sale Balance at beginning of period $ (24,117 ) $ 5,227 $ (9,042 ) Unrealized (loss) gain arising during the period 11,734 (40,476 ) 16,334 Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale — — 21,990 Reclassification adjustment from other comprehensive income 4,852 (5,532 ) (14,768 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income 731 3,252 — Tax effect of current period changes (5,100 ) 12,916 (9,287 ) Total changes, net of taxes 12,217 (29,840 ) 14,269 Reclassification of stranded tax effects to retained earnings — 496 — Balance at end of period $ (11,900 ) $ (24,117 ) $ 5,227 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Capital Amounts and Ratios | The following table presents the regulatory capital amounts and ratios for the Company and the Bank as of dates indicated: Minimum Capital Requirements Minimum Required to Be Well-Capitalized Under Prompt Corrective Action Provisions ($ in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Banc of California, Inc. Total risk-based capital $ 921,892 15.90 % $ 463,950 8.00 % N/A N/A Tier 1 risk-based capital 860,179 14.83 % 347,963 6.00 % N/A N/A Common equity tier 1 capital 670,355 11.56 % 260,972 4.50 % N/A N/A Tier 1 leverage 860,179 10.89 % 315,825 4.00 % N/A N/A Banc of California, NA Total risk-based capital $ 1,007,762 17.46 % $ 461,843 8.00 % $ 577,304 10.00 % Tier 1 risk-based capital 946,049 16.39 % 346,382 6.00 % 461,843 8.00 % Common equity tier 1 capital 946,049 16.39 % 259,787 4.50 % 375,247 6.50 % Tier 1 leverage 946,049 12.02 % 314,707 4.00 % 393,383 5.00 % December 31, 2018 Banc of California, Inc. Total risk-based capital $ 977,342 13.71 % $ 570,368 8.00 % N/A N/A Tier 1 risk-based capital 910,528 12.77 % 427,776 6.00 % N/A N/A Common equity tier 1 capital 679,400 9.53 % 320,832 4.50 % N/A N/A Tier 1 leverage 910,528 8.95 % 407,145 4.00 % N/A N/A Banc of California, NA Total risk-based capital $ 1,120,122 15.71 % $ 570,382 8.00 % $ 712,977 10.00 % Tier 1 risk-based capital 1,053,308 14.77 % 427,786 6.00 % 570,382 8.00 % Common equity tier 1 capital 1,053,308 14.77 % 320,840 4.50 % 463,435 6.50 % Tier 1 leverage 1,053,308 10.36 % 406,694 4.00 % 508,368 5.00 % |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The following table represents the carrying value of the associated assets and liabilities and the associated maximum loss exposure for the alternative energy partnerships as of the dates indicated: December 31, ($ in thousands) 2019 2018 Cash $ 4,224 $ 3,012 Equipment, net of depreciation 248,920 259,464 Other assets 6,301 4,470 Total unconsolidated assets $ 259,445 $ 266,946 Total unconsolidated liabilities $ 7,143 $ 6,269 Maximum loss exposure $ 32,525 $ 28,988 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | The following table presents computations of basic and diluted EPS for the periods indicated: Year Ended December 31, 2019 2018 2017 ($ in thousands, except per share data) Common Stock Class B Common Stock Total Common Stock Class B Common Stock Total Common Stock Class B Common Stock Total Income from continuing operations $ 23,535 $ 224 $ 23,759 $ 41,732 $ 415 $ 42,147 $ 53,136 $ 338 $ 53,474 Less: income allocated to participating securities — — — — — — (309 ) (2 ) (311 ) Less: participating securities dividends (478 ) (5 ) (483 ) (803 ) (8 ) (811 ) (806 ) (5 ) (811 ) Less: preferred stock dividends (15,412 ) (147 ) (15,559 ) (19,312 ) (192 ) (19,504 ) (20,322 ) (129 ) (20,451 ) Less: impact of preferred stock redemption (5,045 ) (48 ) (5,093 ) (2,284 ) (23 ) (2,307 ) — — — Income from continuing operations allocated to common stockholders 2,600 24 2,624 19,333 192 19,525 31,699 202 31,901 Income from discontinued operations — — — 3,292 33 3,325 4,208 27 4,235 Net income allocated to common stockholders $ 2,600 $ 24 $ 2,624 $ 22,625 $ 225 $ 22,850 $ 35,907 $ 229 $ 36,136 Weighted-average common shares outstanding 50,144,464 477,321 50,621,785 50,125,132 498,090 50,623,222 49,936,627 317,968 50,254,595 Add: Dilutive effects of restricted stock units 97,842 — 97,842 135,644 — 135,644 72,655 — 72,655 Add: Dilutive effects of stock options 5,324 — 5,324 39,036 — 39,036 159,734 — 159,734 Add: Dilutive effects of warrants — — — 53,692 — 53,692 332,806 — 332,806 Average shares and dilutive common shares 50,247,630 477,321 50,724,951 50,353,504 498,090 50,851,594 50,501,822 317,968 50,819,790 Basic earnings per common share Income from continuing operations $ 0.05 $ 0.05 $ 0.05 $ 0.38 $ 0.38 $ 0.38 $ 0.64 $ 0.64 $ 0.64 Income from discontinued operations — — — 0.07 0.07 0.07 0.08 0.08 0.08 Net income $ 0.05 $ 0.05 $ 0.05 $ 0.45 $ 0.45 $ 0.45 $ 0.72 $ 0.72 $ 0.72 Diluted earnings per common share Income from continuing operations $ 0.05 $ 0.05 $ 0.05 $ 0.38 $ 0.38 $ 0.38 $ 0.63 $ 0.64 $ 0.63 Income from discontinued operations — — — 0.07 0.07 0.07 0.08 0.08 0.08 Net income $ 0.05 $ 0.05 $ 0.05 $ 0.45 $ 0.45 $ 0.45 $ 0.71 $ 0.72 $ 0.71 |
LOAN COMMITMENTS AND OTHER RE_2
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk | The contractual amount of financial instruments with off-balance sheet risk was as follows for the dates indicated: December 31, 2019 2018 ($ in thousands) Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to extend credit (1) $ 473 $ 129,495 $ 2,167 $ 288,770 Unused lines of credit 703 1,049,632 1,514 1,119,158 Letters of credit 134 5,316 1,266 8,561 (1) Included no commitments to extend credit related to discontinued operations at December 31, 2019 and 2018 . |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table presents activities in accrued liabilities and related expenses for the restructuring as of and for the years ended December 31, 2019 , 2018 and 2017 : Expense ($ in thousands) Continuing Operations Discontinued Operations Total Accrued Liabilities As of or For the Year Ended December 31, 2019 Balance at beginning of period $ 117 Accrual: Severance and other employee related costs $ 4,263 $ — $ 4,263 4,263 Other restructuring expense — — — — Total $ 4,263 $ — $ 4,263 4,263 Payments: Severance and other employee related costs (3,176 ) Other restructuring expense — Total $ (3,176 ) Balance at end of period $ 1,204 As of or For the Year Ended December 31, 2018 Balance at beginning of period $ 202 Accrual: Severance and other employee related costs $ 4,431 $ — $ 4,431 4,431 Other restructuring expense — — — — Total $ 4,431 $ — $ 4,431 4,431 Payments: Severance and other employee related costs (4,516 ) Other restructuring expense — Total $ (4,516 ) Balance at end of period $ 117 As of or For the Year Ended December 31, 2017 Balance at beginning of period $ — Accrual: Severance and other employee related costs $ 5,326 $ 2,899 $ 8,225 8,225 Other restructuring expense — 895 895 895 Total $ 5,326 $ 3,794 $ 9,120 9,120 Payments: Severance and other employee related costs (8,023 ) Other restructuring expense (895 ) Total $ (8,918 ) Balance at end of period $ 202 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of noninterest income | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated. Year Ended December 31, ($ in thousands) 2019 2018 2017 Noninterest Income In scope of Topic 606 Deposit Service Fees $ 2,414 $ 3,000 $ 2,947 Debit Card Fees 533 659 1,698 Investment Commissions 685 1,625 1,893 Other 340 320 31 Noninterest Income (in-scope of Topic 606) 3,972 5,604 6,569 Noninterest Income (out-of-scope of Topic 606) 8,144 18,311 38,101 Total Noninterest Income $ 12,116 $ 23,915 $ 44,670 |
PARENT COMPANY FINANCIAL STAT_2
PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition December 31, ($ in thousands) 2019 2018 ASSETS Cash and cash equivalents $ 73,971 $ 25,256 Other assets 42,243 13,746 Investment in subsidiaries 994,600 1,088,658 Total assets $ 1,110,814 $ 1,127,660 LIABILITIES AND STOCKHOLDERS’ EQUITY Notes payable, net $ 173,421 $ 173,174 Accrued expenses and other liabilities 30,148 8,952 Stockholders’ equity 907,245 945,534 Total liabilities and stockholders’ equity $ 1,110,814 $ 1,127,660 |
Condensed Statements of Operations | Condensed Statements of Operations Year Ended December 31, ($ in thousands) 2019 2018 2017 Income Dividends from subsidiaries $ 142,467 $ 94,250 $ 18,000 Other operating income 62 76 2,285 Total income 142,529 94,326 20,285 Expenses Interest expense for notes payable and other borrowings 9,480 9,421 10,764 Provision for loan losses — — 13 Loss on investments in alternative energy partnerships, net — — 8,493 Other operating expense 3,311 19,507 37,201 Total expenses 12,791 28,928 56,471 Income (loss) before income taxes and (excess dividends) retained equity in undistributed earnings of subsidiaries 129,738 65,398 (36,186 ) Income tax benefit (3,670 ) (9,017 ) (31,453 ) Income (loss) before (excess dividends) retained equity in undistributed earnings of subsidiaries 133,408 74,415 (4,733 ) (Excess dividends) retained equity in undistributed earnings of subsidiaries (109,649 ) (28,943 ) 62,442 Net income $ 23,759 $ 45,472 $ 57,709 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, ($ in thousands) 2019 2018 2017 Cash flows from operating activities: Net income $ 23,759 $ 45,472 $ 57,709 Adjustments to reconcile net income to net cash provided by operating activities (Excess dividends) retained equity in undistributed earnings of subsidiaries 109,649 28,943 (62,442 ) Stock-based compensation expense 1,446 2,814 2,520 Amortization of debt issuance cost 247 233 247 Deferred income tax (benefit) expense (86 ) (30,188 ) 14,604 Loss on investments in alternative energy partnerships, net — — 8,493 Net change in other assets and liabilities (2,095 ) 35,591 (12,957 ) Net cash provided by operating activities 132,920 82,865 8,174 Cash flows from investing activities: Purchase of investments (5,000 ) — — Investments in alternative energy partnerships — — (3,712 ) Net cash used in investing activities (5,000 ) — (3,712 ) Cash flows from financing activities: Net (decrease) increase in other borrowings — — (68,000 ) Redemption of preferred stock (46,396 ) (40,250 ) — Payment of junior subordinated amortizing notes — — (2,684 ) Proceeds from exercise of stock options — — 2,043 Restricted stock surrendered due to employee tax liability (1,023 ) (2,366 ) (6,824 ) Dividend equivalents paid on stock appreciation rights (483 ) (810 ) (810 ) Dividends paid on common stock (15,744 ) (32,725 ) (25,707 ) Dividends paid on preferred stock (15,559 ) (21,954 ) (20,451 ) Net cash used in financing activities (79,205 ) (98,105 ) (122,433 ) Net change in cash and cash equivalents 48,715 (15,240 ) (117,971 ) Cash and cash equivalents at beginning of year 25,256 40,496 158,467 Cash and cash equivalents at end of year $ 73,971 $ 25,256 $ 40,496 Supplemental disclosure of noncash activities: Reclassification of stranded tax effects to retained earnings $ — $ 496 $ — |
QUARTERLY RESULTS OF OPERATIO_2
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results of Operations | The following table presents the unaudited quarterly results of operations for the year ended December 31, 2019 : Three Months Ended, ($ in thousands, except per share data) March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Interest income $ 110,712 $ 104,040 $ 92,657 $ 83,702 Interest expense 42,904 39,260 33,742 27,042 Net interest income 67,808 64,780 58,915 56,660 Provision for (reversal of) loan losses 2,512 (1,987 ) 38,540 (2,678 ) Noninterest income 6,295 (2,290 ) 3,181 4,930 Noninterest expense 61,835 43,587 43,307 47,185 Income (loss) from continuing operations before income taxes 9,756 20,890 (19,751 ) 17,083 Income tax expense (benefit) 2,719 4,308 (5,619 ) 2,811 Net income (loss) 7,037 16,582 (14,132 ) 14,272 Dividends on preferred stock 4,308 4,308 3,403 3,540 Income allocated to participating securities — 271 — 224 Participating securities dividends 202 94 94 93 Impact of preferred stock redemption — — 5,093 — Net income (loss) available to common stockholders $ 2,527 $ 11,909 $ (22,722 ) $ 10,415 Basic earnings per common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.21 Diluted earnings per common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.20 Basic earnings per class B common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.21 Diluted earnings per class B common share Net income (loss) $ 0.05 $ 0.23 $ (0.45 ) $ 0.21 The following table presents the unaudited quarterly results of operations for the year ended December 31, 2018 : Three Months Ended, ($ in thousands, except per share data) March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Interest income $ 98,707 $ 105,185 $ 107,774 $ 111,130 Interest expense 27,269 32,421 36,582 40,448 Net interest income 71,438 72,764 71,192 70,682 Provision for loan losses 19,499 2,653 1,410 6,653 Noninterest income 8,582 8,061 4,824 2,448 Noninterest expense 59,800 62,539 60,877 49,569 Income from continuing operations before income taxes 721 15,633 13,729 16,908 Income tax (benefit) expense (6,353 ) 1,779 3,301 6,117 Income from continuing operations 7,074 13,854 10,428 10,791 Income from discontinued operations before income taxes 2,044 1,281 924 347 Income tax expense 560 355 256 100 Income from discontinued operations 1,484 926 668 247 Net income 8,558 14,780 11,096 11,038 Dividends on preferred stock 5,113 5,113 4,970 4,308 Income allocated to participating securities 203 203 202 203 Participating securities dividends — 86 — — Impact of preferred stock redemption — — 2,307 — Net income available to common stockholders $ 3,242 $ 9,378 $ 3,617 $ 6,527 Basic earnings per common share Income from continuing operations $ 0.03 $ 0.17 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.19 $ 0.07 $ 0.13 Diluted earnings per common share Income from continuing operations $ 0.03 $ 0.16 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.18 $ 0.07 $ 0.13 Basic earnings per class B common share Income from continuing operations $ 0.03 $ 0.17 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.19 $ 0.07 $ 0.13 Diluted earnings per class B common share Income from continuing operations $ 0.03 $ 0.17 $ 0.06 $ 0.12 Income from discontinued operations 0.03 0.02 0.01 0.01 Net income $ 0.06 $ 0.19 $ 0.07 $ 0.13 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2019banking_office | |
Accounting Policies [Abstract] | |
Number of banking offices | 32 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) - segment | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Number of reportable segments | 1 | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Reserve requirement | $ 65,200 | |
Investment securities classified as held-to-maturity | $ 0 | |
Held-to maturity securities transferred | $ 740,900 | |
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale | $ 22,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans and Leases (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for nonperforming status of financing receivables | 90 days |
Single family residential mortgage | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for write-off of financing receivable | 180 days |
Commercial and industrial | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for write-off of financing receivable | 90 days |
Consumer loans | |
Loans and Leases Receivable Disclosure [Line Items] | |
Threshold period past due for write-off of financing receivable | 120 days |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Loan and Lease Losses (Details) - SBA | 12 Months Ended |
Dec. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Percentage of credit enhancement for loans up to $150,000 (percent) | 85.00% |
Percentage of credit enhancement for loans greater than $150,000 (percent) | 75.00% |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Troubled Debt Restructuring (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Threshold period of consecutive payments to remove from nonaccrual status | 6 months |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Premises and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Furniture, Fixtures, And Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Furniture, Fixtures, And Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Affordable Housing Fund Investment (Details) - Affordable Housing Partnerships | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |
Compliance period to fully utilize tax credits | 15 years |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage of limited partnership (percent) | 8.00% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage of limited partnership (percent) | 23.00% |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 22,540 | |
Operating lease liabilities | $ 23,692 | |
ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 23,300 | |
Deferred rent liability | (1,400) | |
Operating lease liabilities | $ 24,700 |
SALES OF BRANCH, SUBSIDIARY A_3
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS - Banc Home Loans Sale Additional Information (Details) - USD ($) $ in Thousands | Mar. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
MSRs sold | $ 28,500 | $ 0 | $ 28,549 | $ 39,345 | ||
Unpaid balances of conventional agency mortgage loans | $ 3,860,000 | |||||
Net gain on disposal | 0 | 1,439 | 13,796 | |||
Banc home loans | Disposals | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash premium payment | 25,000 | |||||
Book value of certain assets sold | $ 2,500 | |||||
Performance period following completion of transaction | 38 months | |||||
MSRs sold | 0 | 0 | 37,772 | $ 37,772 | ||
Net gain on disposal | 0 | 1,439 | 13,796 | 15,235 | ||
Compensation expense related to the transaction | $ 1,000 | $ 0 | $ 1,003 | $ (3,500) | $ (2,497) | |
Caliber | Banc home loans | Disposals | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Contingent consideration | $ 35,000 | |||||
MSRs sold | $ 37,800 |
SALES OF BRANCH, SUBSIDIARY A_4
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS - Net Gain on Disposal of Discontinued Operations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | 21 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net cash proceeds | $ 0 | $ 0 | $ 56,123 | ||
Book value of MSRs sold | $ (28,500) | 0 | (28,549) | (39,345) | |
Net gain on disposal | 0 | 1,439 | 13,796 | ||
Banc home loans | Disposals | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business unit | 0 | 0 | 63,054 | $ 63,054 | |
Compensation expense related to the transaction | $ 1,000 | 0 | 1,003 | (3,500) | (2,497) |
Other transaction costs | 0 | 436 | (3,431) | (2,995) | |
Net cash proceeds | 0 | 1,439 | 56,123 | 57,562 | |
Book value of certain assets sold | 0 | 0 | (2,455) | (2,455) | |
Book value of MSRs sold | 0 | 0 | (37,772) | (37,772) | |
Goodwill | 0 | 0 | (2,100) | (2,100) | |
Net gain on disposal | $ 0 | $ 1,439 | $ 13,796 | $ 15,235 |
SALES OF BRANCH, SUBSIDIARY A_5
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS - Statements of Financial Condition of Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Assets of discontinued operations | $ 0 | $ 19,490 |
Banc home loans | Disposals | ||
ASSETS | ||
Loans held-for-sale, carried at fair value | 0 | 19,490 |
Assets of discontinued operations | 0 | 19,490 |
LIABILITIES | ||
Liabilities of discontinued operations | $ 0 | $ 0 |
SALES OF BRANCH, SUBSIDIARY A_6
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS - Statements of Operations of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 21 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Noninterest income | ||||||||
Net gain on disposal | $ 0 | $ 1,439 | $ 13,796 | |||||
Noninterest expense | ||||||||
Restructuring expense | 0 | 0 | 3,794 | |||||
Income from discontinued operations before income taxes | $ 347 | $ 924 | $ 1,281 | $ 2,044 | 0 | 4,596 | 7,164 | |
Income tax expense | 100 | 256 | 355 | 560 | 0 | 1,271 | 2,929 | |
Income from discontinued operations | $ 247 | $ 668 | $ 926 | $ 1,484 | 0 | 3,325 | 4,235 | |
Banc home loans | Disposals | ||||||||
Interest income | ||||||||
Loans, including fees | 0 | 665 | 7,052 | |||||
Total interest income | 0 | 665 | 7,052 | |||||
Noninterest income | ||||||||
Net gain on disposal | 0 | 1,439 | 13,796 | $ 15,235 | ||||
Loan servicing income | 0 | 0 | 1,551 | |||||
Net revenue on mortgage banking activities | 0 | 428 | 42,889 | |||||
All other income | 0 | 2,200 | 1,871 | |||||
Total noninterest income | 0 | 4,067 | 60,107 | |||||
Noninterest expense | ||||||||
Salaries and employee benefits | 0 | 20 | 38,374 | |||||
Occupancy and equipment | 0 | 0 | 3,964 | |||||
Professional fees | 0 | 0 | 2,546 | |||||
Outside Service Fees | 0 | 0 | 5,625 | |||||
Data processing | 0 | 8 | 687 | |||||
Advertising | 0 | 0 | 1,357 | |||||
Restructuring expense | 0 | 0 | 3,794 | |||||
All other expenses | 0 | 108 | 3,648 | |||||
Total noninterest expense | 0 | 136 | 59,995 | |||||
Income from discontinued operations before income taxes | 0 | 4,596 | 7,164 | |||||
Income tax expense | 0 | 1,271 | 2,929 | |||||
Income from discontinued operations | $ 0 | $ 3,325 | $ 4,235 |
SALES OF BRANCH, SUBSIDIARY A_7
SALES OF BRANCH, SUBSIDIARY AND BUSINESS UNITS - Statements of Cash Flows of Discontinued Operations (Details) - Banc home loans - Disposals - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net cash provided by operating activities | $ 0 | $ 14,916 | $ 365,045 |
Net cash provided by investing activities | 0 | 0 | 56,123 |
Net cash provided by discontinued operations | $ 0 | $ 14,916 | $ 421,168 |
FAIR VALUES OF FINANCIAL INST_3
FAIR VALUES OF FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Valuation allowance expense for OREO assets | $ 145 | $ 53 | $ 236 |
Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregated unpaid principal balances | $ 19,800 | $ 25,500 | |
Insured Servicing Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected loss rate (percent) | 1.55% | 1.55% | |
Uninsured Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected loss rate (percent) | 20.00% | 20.00% |
FAIR VALUES OF FINANCIAL INST_4
FAIR VALUES OF FINANCIAL INSTRUMENTS - Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | $ 912,580 | $ 1,992,500 | ||
Mortgage servicing rights | 1,157 | 1,770 | $ 31,852 | $ 76,121 |
Derivative assets | 3,583 | 1,534 | ||
Derivative liabilities | 3,853 | 1,600 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 912,580 | 1,992,500 | ||
Derivative assets | 3,583 | 1,534 | ||
Derivative liabilities | 3,853 | 1,600 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Mortgage servicing rights | 1,157 | 1,704 | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 912,580 | 1,992,500 | ||
Derivative assets | 3,583 | 1,534 | ||
Derivative liabilities | 3,853 | 1,600 | ||
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 3,409 | 2,140 | ||
Mortgage servicing rights | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 19,233 | 25,040 | ||
Mortgage servicing rights | 1,157 | 1,770 | ||
Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 22,642 | 27,180 | ||
Mortgage servicing rights | 1,157 | 1,770 | ||
Banc home loans | Disposals | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 0 | 19,490 | ||
Banc home loans | Disposals | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 19,500 | |||
Banc home loans | Disposals | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 2,100 | |||
Banc home loans | Disposals | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held-for-sale, carried at fair value | 17,400 | |||
SBA loan pool securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 910 | |||
SBA loan pool securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
SBA loan pool securities | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 910 | |||
SBA loan pool securities | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
SBA loan pool securities | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 910 | |||
Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 36,456 | 437,442 | ||
Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 36,456 | 437,442 | ||
Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 36,456 | 437,442 | ||
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 91,299 | |||
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 91,299 | |||
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 91,299 | |||
Municipal securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 52,689 | |||
Municipal securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
Municipal securities | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 52,689 | |||
Municipal securities | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
Municipal securities | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 52,689 | |||
Non-agency residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 196 | 427 | ||
Non-agency residential mortgage-backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Non-agency residential mortgage-backed securities | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 196 | 427 | ||
Non-agency residential mortgage-backed securities | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Non-agency residential mortgage-backed securities | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 196 | 427 | ||
Non-agency commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 132,199 | |||
Non-agency commercial mortgage-backed securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
Non-agency commercial mortgage-backed securities | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 132,199 | |||
Non-agency commercial mortgage-backed securities | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
Non-agency commercial mortgage-backed securities | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 132,199 | |||
Collateralized loan obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 718,361 | 1,421,522 | ||
Collateralized loan obligations | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Collateralized loan obligations | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 718,361 | 1,421,522 | ||
Collateralized loan obligations | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | 0 | ||
Collateralized loan obligations | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 718,361 | 1,421,522 | ||
Corporate debt securities | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
Corporate debt securities | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 13,579 | |||
Corporate debt securities | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 0 | |||
Corporate debt securities | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available-for-sale securities | 13,579 | |||
Interest rate swaps and caps on loans | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Interest rate swaps and caps on loans | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 3,445 | 1,534 | ||
Derivative liabilities | 3,717 | 1,600 | ||
Interest rate swaps and caps on loans | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Interest rate swaps and caps on loans | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 3,445 | 1,534 | ||
Derivative liabilities | 3,717 | $ 1,600 | ||
Foreign exchange contracts | Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | |||
Derivative liabilities | 0 | |||
Foreign exchange contracts | Recurring | Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 138 | |||
Derivative liabilities | 136 | |||
Foreign exchange contracts | Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 0 | |||
Derivative liabilities | 0 | |||
Foreign exchange contracts | Recurring | Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative assets | 138 | |||
Derivative liabilities | $ 136 |
FAIR VALUES OF FINANCIAL INST_5
FAIR VALUES OF FINANCIAL INSTRUMENTS - Reconciliation of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 21 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Total gains or losses (realized/unrealized): | ||||||
MSRs sold | $ 28,500,000 | $ 0 | $ 28,549,000 | $ 39,345,000 | ||
(Decrease) increase in GNMA loans subject to a repurchase option | (66,000,000) | |||||
Disposals | Banc home loans | ||||||
Total gains or losses (realized/unrealized): | ||||||
Servicing rights carried at fair value | 0 | 0 | 37,700,000 | $ 0 | ||
MSRs sold | 0 | 0 | 37,772,000 | 37,772,000 | ||
Loans held-for-sale, carried at fair value | 0 | 19,490,000 | 19,490,000 | |||
Disposals | Banc home loans | Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | ||||||
Total gains or losses (realized/unrealized): | ||||||
Loans held-for-sale, carried at fair value | $ 58,300,000 | |||||
Recurring | Disposals | Banc home loans | ||||||
Total gains or losses (realized/unrealized): | ||||||
Loans held-for-sale, carried at fair value | 19,500,000 | 19,500,000 | ||||
Significant Unobservable Inputs (Level 3) | Recurring | Mortgage Servicing Rights | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning Balance | 31,852,000 | 1,770,000 | 31,852,000 | 76,121,000 | ||
Total gains or losses (realized/unrealized): | ||||||
Included in earnings-fair value adjustment | (264,000) | (1,155,000) | (10,240,000) | |||
Additions | 0 | 0 | 12,127,000 | |||
Sales and settlements | (349,000) | (28,927,000) | (46,156,000) | |||
Ending Balance | 1,157,000 | 1,770,000 | 31,852,000 | 1,770,000 | ||
Significant Unobservable Inputs (Level 3) | Recurring | Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Beginning Balance | $ 98,940,000 | 25,040,000 | 98,940,000 | 58,260,000 | ||
Total gains or losses (realized/unrealized): | ||||||
Included in earnings-fair value adjustment | (16,000) | (1,378,000) | (781,000) | |||
Additions | 406,000 | 23,678,000 | 117,215,000 | |||
Sales and settlements | (6,197,000) | (96,200,000) | (75,754,000) | |||
Ending Balance | 19,233,000 | 25,040,000 | 98,940,000 | 25,040,000 | ||
Significant Unobservable Inputs (Level 3) | Recurring | Disposals | Banc home loans | ||||||
Total gains or losses (realized/unrealized): | ||||||
Loans held-for-sale, carried at fair value | 17,400,000 | 17,400,000 | ||||
Significant Unobservable Inputs (Level 3) | Recurring | Disposals | Banc home loans | Loans Repurchased or eligible to be repurchased from Ginnie Mae Loan Pools | ||||||
Total gains or losses (realized/unrealized): | ||||||
Loans held-for-sale, carried at fair value | $ 0 | $ 17,300,000 | $ 32,300,000 | $ 17,300,000 |
FAIR VALUES OF FINANCIAL INST_6
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information About Level 3 Fair Value Measurements (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Mortgage servicing rights, at fair value | $ 1,157 | $ 1,770 | $ 31,852 | $ 76,121 |
Significant Unobservable Inputs (Level 3) | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Mortgage servicing rights, at fair value | 1,157 | 1,704 | ||
Recurring | Significant Unobservable Inputs (Level 3) | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Mortgage servicing rights, at fair value | 1,157 | 1,770 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Mortgage servicing rights, at fair value | $ 2,323 | $ 3,362 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted cash flow | Discount Rate | Minimum | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Measurement input (percent) | 0.0875 | 0.0950 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted cash flow | Discount Rate | Maximum | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Measurement input (percent) | 0.1300 | 0.1300 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted cash flow | Discount Rate | Weighted Average | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Measurement input (percent) | 0.1155 | 0.1127 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted cash flow | Prepayment Rate | Minimum | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Measurement input (percent) | 0.0800 | 0.0800 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted cash flow | Prepayment Rate | Maximum | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Measurement input (percent) | 0.6634 | 0.6634 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Mortgage Servicing Rights | Discounted cash flow | Prepayment Rate | Weighted Average | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Measurement input (percent) | 0.1522 | 0.1267 |
FAIR VALUES OF FINANCIAL INST_7
FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value Option Loans Held-for-Sale (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value | |||
Loans past due 90 days or more and still accruing | $ 0 | $ 0 | |
Continuing Operations | |||
Fair Value | |||
Total loans | 22,642,000 | 7,690,000 | |
Non-accrual loans | 8,125,000 | 2,427,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Unpaid Principal Balance | |||
Total loans | 23,455,000 | 7,906,000 | |
Non-accrual loans | 8,370,000 | 2,538,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Difference | |||
Total loans | (813,000) | (216,000) | |
Non-accrual loans | (245,000) | (111,000) | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Non-accrual loans, guaranteed by US government | 6,700,000 | 1,600,000 | |
Net gain (loss) on sale of loans (continuing operations) | 106,000 | 204,000 | $ (170,000) |
Discontinued Operations | |||
Fair Value | |||
Total loans | 0 | 19,490,000 | |
Non-accrual loans | 0 | 8,430,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Unpaid Principal Balance | |||
Total loans | 0 | 20,027,000 | |
Non-accrual loans | 0 | 8,496,000 | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Difference | |||
Total loans | 0 | (537,000) | |
Non-accrual loans | 0 | (66,000) | |
Loans past due 90 days or more and still accruing | 0 | 0 | |
Non-accrual loans, guaranteed by US government | 0 | 7,600,000 | |
Net gain (loss) on sale of loans (continuing operations) | $ 0 | $ 159,000 | $ (288,000) |
FAIR VALUES OF FINANCIAL INST_8
FAIR VALUES OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | $ 0 |
Significant Other Observable Inputs (Level 2) | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | |
Significant Other Observable Inputs (Level 2) | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,678 | |
Significant Unobservable Inputs (Level 3) | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 15,409 | |
Significant Unobservable Inputs (Level 3) | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,711 | 226 |
Carrying Value | Single family residential mortgage | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,678 | |
Carrying Value | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 15,409 | |
Carrying Value | SBA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,711 | $ 226 |
FAIR VALUES OF FINANCIAL INST_9
FAIR VALUES OF FINANCIAL INSTRUMENTS - Gains and (Losses) on Non-Recurring Assets (Details) - Nonrecurring - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired loans | Single family residential mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and (losses) recognized on assets measured at fair value | $ (490) | $ (115) | $ (164) |
Impaired loans | Commercial real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and (losses) recognized on assets measured at fair value | 0 | (1,752) | 0 |
Impaired loans | SBA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and (losses) recognized on assets measured at fair value | (46) | (1,048) | (200) |
Impaired loans | Other consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and (losses) recognized on assets measured at fair value | (88) | (141) | (29) |
Single family residential | Other real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gains and (losses) recognized on assets measured at fair value | $ (104) | $ 229 | $ (284) |
FAIR VALUES OF FINANCIAL INS_10
FAIR VALUES OF FINANCIAL INSTRUMENTS - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and cash equivalents | $ 373,472 | $ 391,592 |
Securities available-for-sale | 912,580 | 1,992,500 |
Federal Home Loan Bank and other bank stock | 59,420 | 68,094 |
Loans held-for-sale | 22,642 | 27,606 |
Loans receivable, net of allowance | 5,894,732 | 7,513,910 |
Accrued interest receivable | 24,523 | 38,807 |
Derivative assets | 3,583 | 1,534 |
Financial liabilities | ||
Deposits | 5,430,536 | 7,689,324 |
Advances from Federal Home Loan Bank | 1,222,709 | 1,517,761 |
Long-term debt | 180,213 | 174,059 |
Derivative liabilities | 3,853 | 1,600 |
Accrued interest payable | 4,687 | 13,253 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and cash equivalents | 373,472 | 391,592 |
Securities available-for-sale | 0 | 0 |
Federal Home Loan Bank and other bank stock | 0 | 0 |
Loans held-for-sale | 0 | 0 |
Loans receivable, net of allowance | 0 | 0 |
Accrued interest receivable | 24,523 | 38,807 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Long-term debt | 0 | 0 |
Derivative liabilities | 0 | 0 |
Accrued interest payable | 4,687 | 13,253 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 912,580 | 1,992,500 |
Federal Home Loan Bank and other bank stock | 59,420 | 68,094 |
Loans held-for-sale | 3,409 | 2,566 |
Loans receivable, net of allowance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 3,583 | 1,534 |
Financial liabilities | ||
Deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 1,222,709 | 1,517,761 |
Long-term debt | 180,213 | 174,059 |
Derivative liabilities | 3,853 | 1,600 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Federal Home Loan Bank and other bank stock | 0 | 0 |
Loans held-for-sale | 19,233 | 25,040 |
Loans receivable, net of allowance | 5,894,732 | 7,513,910 |
Accrued interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Financial liabilities | ||
Deposits | 5,430,536 | 7,689,324 |
Advances from Federal Home Loan Bank | 0 | 0 |
Long-term debt | 0 | 0 |
Derivative liabilities | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 373,472 | 391,592 |
Securities available-for-sale | 912,580 | 1,992,500 |
Federal Home Loan Bank and other bank stock | 59,420 | 68,094 |
Loans held-for-sale | 22,642 | 27,606 |
Loans receivable, net of allowance | 5,894,236 | 7,638,681 |
Accrued interest receivable | 24,523 | 38,807 |
Derivative assets | 3,583 | 1,534 |
Financial liabilities | ||
Deposits | 5,427,167 | 7,916,644 |
Advances from Federal Home Loan Bank | 1,195,000 | 1,520,000 |
Long-term debt | 173,421 | 173,174 |
Derivative liabilities | 3,853 | 1,600 |
Accrued interest payable | 4,687 | 13,253 |
Banc home loans | Disposals | ||
Financial liabilities | ||
Loans held-for-sale, carried at fair value | $ 0 | 19,490 |
Nonrecurring | Banc home loans | Disposals | ||
Financial liabilities | ||
Loans held-for-sale, carried at fair value | 19,500 | |
Nonrecurring | Banc home loans | Disposals | Significant Other Observable Inputs (Level 2) | ||
Financial liabilities | ||
Loans held-for-sale, carried at fair value | 2,100 | |
Nonrecurring | Banc home loans | Disposals | Significant Unobservable Inputs (Level 3) | ||
Financial liabilities | ||
Loans held-for-sale, carried at fair value | $ 17,400 |
INVESTMENT SECURITIES - Summary
INVESTMENT SECURITIES - Summary of Securities Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available-for-sale: | ||
Amortized Cost | $ 929,449 | $ 2,026,686 |
Gross Unrealized Gains | 151 | 150 |
Gross Unrealized Losses | (17,020) | (34,336) |
Fair Value | 912,580 | 1,992,500 |
SBA loan pool securities | ||
Securities available-for-sale: | ||
Amortized Cost | 911 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | 910 | |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Amortized Cost | 37,613 | 461,987 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,157) | (24,545) |
Fair Value | 36,456 | 437,442 |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | ||
Securities available-for-sale: | ||
Amortized Cost | 91,543 | |
Gross Unrealized Gains | 16 | |
Gross Unrealized Losses | (260) | |
Fair Value | 91,299 | |
Municipal securities | ||
Securities available-for-sale: | ||
Amortized Cost | 52,997 | |
Gross Unrealized Gains | 51 | |
Gross Unrealized Losses | (359) | |
Fair Value | 52,689 | |
Non-agency residential mortgage-backed securities | ||
Securities available-for-sale: | ||
Amortized Cost | 191 | 418 |
Gross Unrealized Gains | 5 | 9 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 196 | 427 |
Non-agency commercial mortgage-backed securities | ||
Securities available-for-sale: | ||
Amortized Cost | 132,199 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 132,199 | |
Collateralized loan obligations | ||
Securities available-for-sale: | ||
Amortized Cost | 733,605 | 1,431,171 |
Gross Unrealized Gains | 0 | 141 |
Gross Unrealized Losses | (15,244) | (9,790) |
Fair Value | 718,361 | $ 1,421,522 |
Corporate debt securities | ||
Securities available-for-sale: | ||
Amortized Cost | 13,500 | |
Gross Unrealized Gains | 79 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 13,579 |
INVESTMENT SECURITIES - Additio
INVESTMENT SECURITIES - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($)security | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Other than temporary impairment losses | $ | $ 731 | $ 3,300 | $ 731 | $ 3,252 | $ 0 |
Securities available-for-sale portfolio | security | 145 | 70 | 145 | ||
Securities in unrealized loss position | security | 118 | 60 | 118 | ||
Collateral | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Securities available-for-sale, pledged | $ | $ 163,000 | $ 44,000 | $ 163,000 |
INVESTMENT SECURITIES - Proceed
INVESTMENT SECURITIES - Proceeds from Sales and Calls of Securities and Associated Gross Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains on sales and calls of securities available-for-sale | $ 556 | $ 5,532 | $ 14,768 |
Gross realized losses on sales and calls of securities available-for-sale | (5,408) | 0 | 0 |
Net realized (losses) gains on sales and calls of securities available-for-sale | (4,852) | 5,532 | 14,768 |
Proceeds from sales and calls of securities available-for-sale | $ 1,249,588 | $ 1,025,471 | $ 1,500,459 |
INVESTMENT SECURITIES - Summa_2
INVESTMENT SECURITIES - Summary of Investment Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less Than 12 Months | $ 190,527 | $ 1,377,901 |
12 Months or Longer | 668,808 | 457,632 |
Total | 859,335 | 1,835,533 |
Gross Unrealized Losses | ||
Less Than 12 Months | (2,223) | (9,613) |
12 Months or Longer | (14,797) | (24,723) |
Total | (17,020) | (34,336) |
SBA loan pool securities | ||
Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 910 | |
Total | 910 | |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | (1) | |
Total | (1) | |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 35,872 | 13,494 |
12 Months or Longer | 0 | 423,916 |
Total | 35,872 | 437,410 |
Gross Unrealized Losses | ||
Less Than 12 Months | (1,157) | (133) |
12 Months or Longer | 0 | (24,412) |
Total | (1,157) | (24,545) |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | ||
Fair Value | ||
Less Than 12 Months | 73,379 | |
12 Months or Longer | 0 | |
Total | 73,379 | |
Gross Unrealized Losses | ||
Less Than 12 Months | (260) | |
12 Months or Longer | 0 | |
Total | (260) | |
Municipal securities | ||
Fair Value | ||
Less Than 12 Months | 31,723 | |
12 Months or Longer | 0 | |
Total | 31,723 | |
Gross Unrealized Losses | ||
Less Than 12 Months | (359) | |
12 Months or Longer | 0 | |
Total | (359) | |
Collateralized loan obligations | ||
Fair Value | ||
Less Than 12 Months | 49,553 | 1,364,317 |
12 Months or Longer | 668,808 | 32,790 |
Total | 718,361 | 1,397,107 |
Gross Unrealized Losses | ||
Less Than 12 Months | (447) | (9,480) |
12 Months or Longer | (14,797) | (310) |
Total | (15,244) | (9,790) |
Non-agency residential mortgage-backed securities | ||
Fair Value | ||
Less Than 12 Months | 90 | |
12 Months or Longer | 16 | |
Total | 106 | |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | $ 0 | |
Corporate debt securities | ||
Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | $ 0 |
INVESTMENT SECURITIES - Composi
INVESTMENT SECURITIES - Composition, Repricing and Yield Information of Investment Securities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 799,708 |
One year or less (percent) | 3.47% |
More than One Year through Five Years | $ 13,579 |
More than One Year through Five Years (percent) | 4.11% |
More than Five Years through Ten Years | $ 9,952 |
More than Five Years through Ten Years (percent) | 2.47% |
More than Ten Years | $ 89,341 |
More than Ten Years (percent) | 2.70% |
Total | $ 912,580 |
Total (percent) | 3.40% |
U.S. government agency and U.S. government sponsored enterprise residential mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 0 |
One year or less (percent) | 0.00% |
More than One Year through Five Years | $ 0 |
More than One Year through Five Years (percent) | 0.00% |
More than Five Years through Ten Years | $ 0 |
More than Five Years through Ten Years (percent) | 0.00% |
More than Ten Years | $ 36,456 |
More than Ten Years (percent) | 2.56% |
Total | $ 36,456 |
Total (percent) | 2.56% |
U.S. government agency and U.S. government sponsored enterprise collateralized mortgage obligations | |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 81,347 |
One year or less (percent) | 2.28% |
More than One Year through Five Years | $ 0 |
More than One Year through Five Years (percent) | 0.00% |
More than Five Years through Ten Years | $ 9,952 |
More than Five Years through Ten Years (percent) | 2.47% |
More than Ten Years | $ 0 |
More than Ten Years (percent) | 0.00% |
Total | $ 91,299 |
Total (percent) | 2.30% |
Municipal securities | |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 0 |
One year or less (percent) | 0.00% |
More than One Year through Five Years | $ 0 |
More than One Year through Five Years (percent) | 0.00% |
More than Five Years through Ten Years | $ 0 |
More than Five Years through Ten Years (percent) | 0.00% |
More than Ten Years | $ 52,689 |
More than Ten Years (percent) | 2.79% |
Total | $ 52,689 |
Total (percent) | 2.79% |
Non-agency residential mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 0 |
One year or less (percent) | 0.00% |
More than One Year through Five Years | $ 0 |
More than One Year through Five Years (percent) | 0.00% |
More than Five Years through Ten Years | $ 0 |
More than Five Years through Ten Years (percent) | 0.00% |
More than Ten Years | $ 196 |
More than Ten Years (percent) | 6.28% |
Total | $ 196 |
Total (percent) | 6.28% |
Collateralized loan obligations | |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 718,361 |
One year or less (percent) | 3.61% |
More than One Year through Five Years | $ 0 |
More than One Year through Five Years (percent) | 0.00% |
More than Five Years through Ten Years | $ 0 |
More than Five Years through Ten Years (percent) | 0.00% |
More than Ten Years | $ 0 |
More than Ten Years (percent) | 0.00% |
Total | $ 718,361 |
Total (percent) | 3.61% |
Corporate debt securities | |
Debt Securities, Available-for-sale [Line Items] | |
One year or less | $ 0 |
One year or less (percent) | 0.00% |
More than One Year through Five Years | $ 13,579 |
More than One Year through Five Years (percent) | 4.11% |
More than Five Years through Ten Years | $ 0 |
More than Five Years through Ten Years (percent) | 0.00% |
More than Ten Years | $ 0 |
More than Ten Years (percent) | 0.00% |
Total | $ 13,579 |
Total (percent) | 4.11% |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 5,951,885 | $ 7,700,873 | ||
Allowance for loan losses | (57,649) | (62,192) | $ (49,333) | $ (40,444) |
Loans receivable, net | $ 5,894,236 | $ 7,638,681 | ||
Loan Portfolio | Loan Portfolio Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage to total loans and leases (percent) | 100.00% | 100.00% | ||
Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 5,351,229 | $ 6,874,142 | ||
Traditional Loans | Loan Portfolio | Loan Portfolio Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage to total loans and leases (percent) | 89.90% | 89.30% | ||
NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 600,656 | $ 826,731 | ||
Deferred loan origination costs/(fees) and premiums/(discounts), net | $ 14,300 | $ 17,700 | ||
NTM Loans | Loan Portfolio | Loan Portfolio Concentration Risk | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Percentage to total loans and leases (percent) | 10.10% | 10.70% | ||
Commercial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 1,691,270 | $ 1,944,142 | ||
Allowance for loan losses | (22,353) | (18,191) | (14,280) | |
Commercial | Commercial and industrial | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,691,270 | 1,944,142 | ||
Commercial | Commercial and industrial | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 818,817 | 867,013 | ||
Allowance for loan losses | (5,941) | (6,674) | (4,971) | |
Commercial | Commercial real estate | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 818,817 | 867,013 | ||
Commercial | Commercial real estate | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial | Multifamily | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,494,528 | 2,241,246 | ||
Allowance for loan losses | (11,405) | (17,970) | (13,265) | |
Commercial | Multifamily | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,494,528 | 2,241,246 | ||
Commercial | Multifamily | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial | SBA | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 70,981 | 68,741 | ||
Allowance for loan losses | (3,120) | (1,827) | (1,701) | |
Commercial | SBA | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 70,981 | 68,741 | ||
Commercial | SBA | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 0 | ||
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 231,350 | 203,976 | ||
Allowance for loan losses | (3,906) | (3,461) | $ (3,318) | |
Commercial | Construction | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 231,350 | 203,976 | ||
Commercial | Construction | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 0 | 0 | ||
Consumer | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 600,656 | 826,731 | ||
Consumer | Single family residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 1,590,774 | 2,305,490 | ||
Consumer | Single family residential mortgage | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 992,417 | 1,481,172 | ||
Consumer | Single family residential mortgage | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 598,357 | 824,318 | ||
Consumer | Other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 54,165 | 70,265 | ||
Consumer | Other consumer | Traditional Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 51,866 | 67,852 | ||
Consumer | Other consumer | NTM Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 2,299 | $ 2,413 |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Risk Categories for Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 5,951,885 | $ 7,700,873 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,782,383 | 7,543,176 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 67,531 | 76,945 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 99,836 | 79,898 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,135 | 854 |
NTM Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 600,656 | 826,731 |
Traditional Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,351,229 | 6,874,142 |
Traditional Loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,200,536 | 6,729,707 |
Traditional Loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 61,741 | 65,979 |
Traditional Loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 86,817 | 77,602 |
Traditional Loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,135 | 854 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,590,774 | 2,305,490 |
Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 54,165 | 70,265 |
Consumer | NTM Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 600,656 | 826,731 |
Consumer | NTM Loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 581,847 | 813,469 |
Consumer | NTM Loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,790 | 10,966 |
Consumer | NTM Loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 13,019 | 2,296 |
Consumer | NTM Loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | NTM Loans | Single family residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 598,357 | 824,318 |
Consumer | NTM Loans | Single family residential mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 579,548 | 811,056 |
Consumer | NTM Loans | Single family residential mortgage | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,790 | 10,966 |
Consumer | NTM Loans | Single family residential mortgage | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 13,019 | 2,296 |
Consumer | NTM Loans | Single family residential mortgage | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | NTM Loans | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,299 | 2,413 |
Consumer | NTM Loans | Other consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,299 | 2,413 |
Consumer | NTM Loans | Other consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | NTM Loans | Other consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | NTM Loans | Other consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Consumer | Traditional Loans | Single family residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 992,417 | 1,481,172 |
Consumer | Traditional Loans | Single family residential mortgage | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 979,705 | 1,461,721 |
Consumer | Traditional Loans | Single family residential mortgage | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,945 | 2,602 |
Consumer | Traditional Loans | Single family residential mortgage | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 7,250 | 16,849 |
Consumer | Traditional Loans | Single family residential mortgage | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 517 | 0 |
Consumer | Traditional Loans | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 51,866 | 67,852 |
Consumer | Traditional Loans | Other consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 51,032 | 66,228 |
Consumer | Traditional Loans | Other consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 346 | 979 |
Consumer | Traditional Loans | Other consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 488 | 645 |
Consumer | Traditional Loans | Other consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,691,270 | 1,944,142 |
Commercial | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 818,817 | 867,013 |
Commercial | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,494,528 | 2,241,246 |
Commercial | SBA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 70,981 | 68,741 |
Commercial | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 231,350 | 203,976 |
Commercial | NTM Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | NTM Loans | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | NTM Loans | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | NTM Loans | SBA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | NTM Loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Traditional Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,691,270 | 1,944,142 |
Commercial | Traditional Loans | Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,580,269 | 1,859,569 |
Commercial | Traditional Loans | Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 45,323 | 41,302 |
Commercial | Traditional Loans | Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 65,678 | 43,271 |
Commercial | Traditional Loans | Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Traditional Loans | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 818,817 | 867,013 |
Commercial | Traditional Loans | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 813,846 | 851,604 |
Commercial | Traditional Loans | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,532 | 11,376 |
Commercial | Traditional Loans | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,439 | 4,033 |
Commercial | Traditional Loans | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Traditional Loans | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,494,528 | 2,241,246 |
Commercial | Traditional Loans | Multifamily | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,484,931 | 2,239,301 |
Commercial | Traditional Loans | Multifamily | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 4,256 | 0 |
Commercial | Traditional Loans | Multifamily | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,341 | 1,945 |
Commercial | Traditional Loans | Multifamily | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 0 |
Commercial | Traditional Loans | SBA | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 70,981 | 68,741 |
Commercial | Traditional Loans | SBA | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 60,982 | 53,433 |
Commercial | Traditional Loans | SBA | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 2,760 | 6,114 |
Commercial | Traditional Loans | SBA | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 5,621 | 8,340 |
Commercial | Traditional Loans | SBA | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,618 | 854 |
Commercial | Traditional Loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 231,350 | 203,976 |
Commercial | Traditional Loans | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 229,771 | 197,851 |
Commercial | Traditional Loans | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 1,579 | 3,606 |
Commercial | Traditional Loans | Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 0 | 2,519 |
Commercial | Traditional Loans | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging of Recorded Investment in Past Due Loans and Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 57,607 | $ 40,530 |
Current | 5,894,278 | 7,660,343 |
Total ending loan balances | 5,951,885 | 7,700,873 |
30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 19,290 | 19,140 |
60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13,583 | 7,544 |
Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 24,734 | 13,846 |
NTM Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 600,656 | 826,731 |
Traditional Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 37,080 | 32,483 |
Current | 5,314,149 | 6,841,659 |
Total ending loan balances | 5,351,229 | 6,874,142 |
Traditional Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 15,317 | 11,710 |
Traditional Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 10,048 | 6,927 |
Traditional Loans | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11,715 | 13,846 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 1,590,774 | 2,305,490 |
Consumer | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 54,165 | 70,265 |
Consumer | NTM Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20,527 | 8,047 |
Current | 580,129 | 818,684 |
Total ending loan balances | 600,656 | 826,731 |
Consumer | NTM Loans | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,973 | 7,430 |
Consumer | NTM Loans | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,535 | 617 |
Consumer | NTM Loans | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13,019 | 0 |
Consumer | NTM Loans | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20,527 | 8,047 |
Current | 577,830 | 816,271 |
Total ending loan balances | 598,357 | 824,318 |
Consumer | NTM Loans | Single family residential mortgage | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,973 | 7,430 |
Consumer | NTM Loans | Single family residential mortgage | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,535 | 617 |
Consumer | NTM Loans | Single family residential mortgage | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13,019 | 0 |
Consumer | NTM Loans | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 2,299 | 2,413 |
Total ending loan balances | 2,299 | 2,413 |
Consumer | NTM Loans | Other consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | NTM Loans | Other consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | NTM Loans | Other consumer | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | Traditional Loans | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 22,854 | 19,679 |
Current | 969,563 | 1,461,493 |
Total ending loan balances | 992,417 | 1,481,172 |
Consumer | Traditional Loans | Single family residential mortgage | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13,752 | 7,321 |
Consumer | Traditional Loans | Single family residential mortgage | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,496 | 3,160 |
Consumer | Traditional Loans | Single family residential mortgage | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,606 | 9,198 |
Consumer | Traditional Loans | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 334 | 4,151 |
Current | 51,532 | 63,701 |
Total ending loan balances | 51,866 | 67,852 |
Consumer | Traditional Loans | Other consumer | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 199 | 3,132 |
Consumer | Traditional Loans | Other consumer | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 40 | 573 |
Consumer | Traditional Loans | Other consumer | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 95 | 446 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 1,691,270 | 1,944,142 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 818,817 | 867,013 |
Commercial | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 1,494,528 | 2,241,246 |
Commercial | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 70,981 | 68,741 |
Commercial | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 231,350 | 203,976 |
Commercial | NTM Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 0 | 0 |
Commercial | NTM Loans | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 0 | 0 |
Commercial | NTM Loans | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 0 | 0 |
Commercial | NTM Loans | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 0 | 0 |
Commercial | NTM Loans | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total ending loan balances | 0 | 0 |
Commercial | Traditional Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 10,312 | 5,286 |
Current | 1,680,958 | 1,938,856 |
Total ending loan balances | 1,691,270 | 1,944,142 |
Commercial | Traditional Loans | Commercial and industrial | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 780 | 350 |
Commercial | Traditional Loans | Commercial and industrial | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,670 | 1,596 |
Commercial | Traditional Loans | Commercial and industrial | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,862 | 3,340 |
Commercial | Traditional Loans | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 582 |
Current | 818,817 | 866,431 |
Total ending loan balances | 818,817 | 867,013 |
Commercial | Traditional Loans | Commercial real estate | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial | Traditional Loans | Commercial real estate | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 582 |
Commercial | Traditional Loans | Commercial real estate | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial | Traditional Loans | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 356 |
Current | 1,494,528 | 2,240,890 |
Total ending loan balances | 1,494,528 | 2,241,246 |
Commercial | Traditional Loans | Multifamily | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 356 |
Commercial | Traditional Loans | Multifamily | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial | Traditional Loans | Multifamily | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial | Traditional Loans | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,580 | 1,490 |
Current | 67,401 | 67,251 |
Total ending loan balances | 70,981 | 68,741 |
Commercial | Traditional Loans | SBA | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 586 | 551 |
Commercial | Traditional Loans | SBA | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 842 | 77 |
Commercial | Traditional Loans | SBA | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,152 | 862 |
Commercial | Traditional Loans | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 939 |
Current | 231,350 | 203,037 |
Total ending loan balances | 231,350 | 203,976 |
Commercial | Traditional Loans | Construction | 30 - 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial | Traditional Loans | Construction | 60 - 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 939 |
Commercial | Traditional Loans | Construction | Greater than 89 Days Past due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Composition of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total | $ 43,354 | $ 21,585 |
NTM Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 13,019 | 0 |
Traditional Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 30,335 | 21,585 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 19,114 | 5,455 |
Commercial | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,230 | 2,574 |
Commercial | NTM Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial | NTM Loans | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Commercial | Traditional Loans | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 19,114 | 5,455 |
Commercial | Traditional Loans | SBA | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,230 | 2,574 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 18,625 | 12,929 |
Consumer | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 385 | 627 |
Consumer | NTM Loans | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 13,019 | 0 |
Consumer | NTM Loans | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 0 | 0 |
Consumer | Traditional Loans | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Total | 5,606 | 12,929 |
Consumer | Traditional Loans | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total | $ 385 | $ 627 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Non-Accrual Loans Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
90 days past due and still accruing | $ 0 | $ 470 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans in process of foreclosure | $ 15,700 | $ 5,100 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charge-offs recorded | $ 41,766 | $ 18,499 | $ 5,581 | |
Loans receivable | 5,951,885 | 7,700,873 | ||
Line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charge-offs recorded | $ 13,900 | 35,100 | ||
Loans receivable | $ 15,000 | |||
Unfunded loan commitment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Reserve for unfunded loan commitments | 4,100 | 4,600 | ||
Commercial | Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Charge-offs recorded | 36,787 | 1,927 | ||
Change in allowance | 3,000 | |||
Loans receivable | $ 1,691,270 | $ 1,944,142 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Balance at beginning of year | $ 62,192 | $ 49,333 | $ 62,192 | $ 49,333 | $ 40,444 | ||||||
Loans and leases charged off | (41,766) | (18,499) | (5,581) | ||||||||
Recoveries of loans and leases previously charged off | 836 | 1,143 | 771 | ||||||||
Net charge-offs | (40,930) | (17,356) | (4,810) | ||||||||
Provision for loan losses | $ (2,678) | $ 38,540 | $ (1,987) | $ 2,512 | $ 6,653 | $ 1,410 | $ 2,653 | $ 19,499 | 36,387 | 30,215 | 13,699 |
Balance at end of year | $ 57,649 | $ 62,192 | $ 57,649 | $ 62,192 | $ 49,333 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses and Recorded Investment Excluding Accrued Interest in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | $ 62,192 | $ 49,333 | $ 62,192 | $ 49,333 | $ 40,444 | ||||||||
Charge-offs | (41,766) | (18,499) | (5,581) | ||||||||||
Recoveries | 836 | 1,143 | 771 | ||||||||||
Net charge-offs | (40,930) | (17,356) | (4,810) | ||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | $ (2,678) | $ 38,540 | $ (1,987) | 2,512 | $ 6,653 | $ 1,410 | $ 2,653 | 19,499 | 36,387 | 30,215 | 13,699 | ||
Balance at end of year | 57,649 | 62,192 | 57,649 | 62,192 | 49,333 | ||||||||
Individually evaluated for impairment | $ 5,990 | $ 829 | |||||||||||
Collectively evaluated for impairment | 51,659 | 61,363 | |||||||||||
Total ending allowance balance | 57,649 | 62,192 | 62,192 | 49,333 | 57,649 | 49,333 | 40,444 | 57,649 | 62,192 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 49,708 | 26,945 | |||||||||||
Collectively evaluated for impairment | 5,902,177 | 7,673,928 | |||||||||||
Total ending loan balances | 5,951,885 | 7,700,873 | |||||||||||
Commercial | Commercial and industrial | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 18,191 | 14,280 | 18,191 | 14,280 | |||||||||
Charge-offs | (36,787) | (1,927) | |||||||||||
Recoveries | 138 | 396 | |||||||||||
Net charge-offs | (36,649) | (1,531) | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | 40,811 | 5,442 | |||||||||||
Balance at end of year | 22,353 | 18,191 | 22,353 | 18,191 | 14,280 | ||||||||
Individually evaluated for impairment | 3,367 | 0 | |||||||||||
Collectively evaluated for impairment | 18,986 | 18,191 | |||||||||||
Total ending allowance balance | 22,353 | 18,191 | 18,191 | 14,280 | 22,353 | 14,280 | 14,280 | 22,353 | 18,191 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 20,236 | 5,455 | |||||||||||
Collectively evaluated for impairment | 1,671,034 | 1,938,687 | |||||||||||
Total ending loan balances | 1,691,270 | 1,944,142 | |||||||||||
Commercial | Commercial real estate | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 6,674 | 4,971 | 6,674 | 4,971 | |||||||||
Charge-offs | 0 | 0 | |||||||||||
Recoveries | 0 | 0 | |||||||||||
Net charge-offs | 0 | 0 | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | (733) | 1,703 | |||||||||||
Balance at end of year | 5,941 | 6,674 | 5,941 | 6,674 | 4,971 | ||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 5,941 | 6,674 | |||||||||||
Total ending allowance balance | 5,941 | 6,674 | 6,674 | 4,971 | 5,941 | 4,971 | 4,971 | 5,941 | 6,674 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 818,817 | 867,013 | |||||||||||
Total ending loan balances | 818,817 | 867,013 | |||||||||||
Commercial | Multifamily | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 17,970 | 13,265 | 17,970 | 13,265 | |||||||||
Charge-offs | (6) | (14) | |||||||||||
Recoveries | 0 | 0 | |||||||||||
Net charge-offs | (6) | (14) | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | (6,559) | 4,719 | |||||||||||
Balance at end of year | 11,405 | 17,970 | 11,405 | 17,970 | 13,265 | ||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 11,405 | 17,970 | |||||||||||
Total ending allowance balance | 11,405 | 17,970 | 17,970 | 13,265 | 11,405 | 13,265 | 13,265 | 11,405 | 17,970 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 1,494,528 | 2,241,246 | |||||||||||
Total ending loan balances | 1,494,528 | 2,241,246 | |||||||||||
Commercial | SBA | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 1,827 | 1,701 | 1,827 | 1,701 | |||||||||
Charge-offs | (2,121) | (1,927) | |||||||||||
Recoveries | 217 | 273 | |||||||||||
Net charge-offs | (1,904) | (1,654) | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | 3,197 | 1,780 | |||||||||||
Balance at end of year | 3,120 | 1,827 | 3,120 | 1,827 | 1,701 | ||||||||
Individually evaluated for impairment | 2,045 | 562 | |||||||||||
Collectively evaluated for impairment | 1,075 | 1,265 | |||||||||||
Total ending allowance balance | 3,120 | 1,827 | 1,827 | 1,701 | 1,827 | 1,827 | 1,701 | 3,120 | 1,827 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 5,136 | 2,376 | |||||||||||
Collectively evaluated for impairment | 65,845 | 66,365 | |||||||||||
Total ending loan balances | 70,981 | 68,741 | |||||||||||
Commercial | Construction | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 3,461 | 3,318 | 3,461 | 3,318 | |||||||||
Charge-offs | (371) | 0 | |||||||||||
Recoveries | 0 | 0 | |||||||||||
Net charge-offs | (371) | 0 | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | 816 | 143 | |||||||||||
Balance at end of year | 3,906 | 3,461 | 3,906 | 3,461 | 3,318 | ||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 3,906 | 3,461 | |||||||||||
Total ending allowance balance | 3,906 | 3,461 | 3,461 | 3,318 | 3,906 | 3,318 | 3,318 | 3,906 | 3,461 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 231,350 | 203,976 | |||||||||||
Total ending loan balances | 231,350 | 203,976 | |||||||||||
Commercial | Lease financing | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 0 | 0 | 0 | 0 | |||||||||
Charge-offs | 0 | 0 | |||||||||||
Recoveries | 12 | 15 | |||||||||||
Net charge-offs | 12 | 15 | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | (12) | (15) | |||||||||||
Balance at end of year | 0 | 0 | 0 | 0 | 0 | ||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 0 | 0 | |||||||||||
Total ending allowance balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 0 | 0 | |||||||||||
Collectively evaluated for impairment | 0 | 0 | |||||||||||
Total ending loan balances | 0 | 0 | |||||||||||
Consumer | Single Family Residential Mortgage | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 13,128 | 10,996 | 13,128 | 10,996 | |||||||||
Charge-offs | (2,369) | (558) | |||||||||||
Recoveries | 150 | 436 | |||||||||||
Net charge-offs | (2,219) | (122) | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | (423) | 2,254 | |||||||||||
Balance at end of year | 10,486 | 13,128 | 10,486 | 13,128 | 10,996 | ||||||||
Individually evaluated for impairment | 574 | 161 | |||||||||||
Collectively evaluated for impairment | 9,912 | 12,967 | |||||||||||
Total ending allowance balance | 10,486 | 13,128 | 13,128 | 10,996 | 13,128 | 13,128 | 10,996 | 10,486 | 13,128 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 23,657 | 18,193 | |||||||||||
Collectively evaluated for impairment | 1,567,117 | 2,287,297 | |||||||||||
Total ending loan balances | 1,590,774 | 2,305,490 | |||||||||||
Consumer | Other Consumer | |||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||||
Balance at beginning of year | 941 | 802 | 941 | 802 | |||||||||
Charge-offs | (112) | (14,073) | |||||||||||
Recoveries | 319 | 23 | |||||||||||
Net charge-offs | 207 | (14,050) | |||||||||||
Transfer of loans to held-for-sale | 0 | ||||||||||||
Provision for loan losses | (710) | 14,189 | |||||||||||
Balance at end of year | 438 | 941 | 438 | 941 | 802 | ||||||||
Individually evaluated for impairment | 4 | 106 | |||||||||||
Collectively evaluated for impairment | 434 | 835 | |||||||||||
Total ending allowance balance | $ 438 | $ 941 | $ 941 | $ 802 | $ 941 | $ 941 | $ 802 | 438 | 941 | ||||
Loans: | |||||||||||||
Individually evaluated for impairment | 679 | 921 | |||||||||||
Collectively evaluated for impairment | 53,486 | 69,344 | |||||||||||
Total ending loan balances | $ 54,165 | $ 70,265 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | $ 46,051 | $ 26,831 | $ 16,158 |
Interest Income Recognized | 582 | 256 | 207 |
Cash Basis Interest Recognized | 542 | 217 | 190 |
Unpaid Principal Balance | |||
Total | 49,814 | 27,027 | |
Recorded Investment | |||
Total | 49,708 | 26,945 | |
Allowance for Loan Losses | 5,990 | 829 | |
Commercial | Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 17,263 | 5,380 | 1,034 |
Interest Income Recognized | 320 | 4 | 0 |
Cash Basis Interest Recognized | 315 | 4 | 0 |
Unpaid Principal Balance | |||
With no related allowance recorded | 1,471 | 5,491 | |
With an allowance recorded | 18,776 | 0 | |
Recorded Investment | |||
With no related allowance recorded | 1,460 | 5,455 | |
With an allowance recorded | 18,776 | 0 | |
Allowance for Loan Losses | 3,367 | 0 | |
Commercial | Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 145 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 | 0 |
Commercial | SBA | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 4,673 | 986 | 357 |
Interest Income Recognized | 15 | 4 | 0 |
Cash Basis Interest Recognized | 15 | 3 | 0 |
Unpaid Principal Balance | |||
With no related allowance recorded | 1,439 | 1,668 | |
With an allowance recorded | 3,921 | 823 | |
Recorded Investment | |||
With no related allowance recorded | 1,379 | 1,588 | |
With an allowance recorded | 3,757 | 788 | |
Allowance for Loan Losses | 2,045 | 562 | |
Commercial | Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,889 | 0 | 382 |
Interest Income Recognized | 0 | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 | 0 |
Commercial | Lease financing | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 0 | 0 | 19 |
Interest Income Recognized | 0 | 0 | 0 |
Cash Basis Interest Recognized | 0 | 0 | 0 |
Consumer | Single family residential mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 21,198 | 19,694 | 12,611 |
Interest Income Recognized | 234 | 236 | 199 |
Cash Basis Interest Recognized | 199 | 199 | 182 |
Unpaid Principal Balance | |||
With no related allowance recorded | 19,319 | 12,115 | |
With an allowance recorded | 4,213 | 5,993 | |
Recorded Investment | |||
With no related allowance recorded | 19,405 | 12,161 | |
With an allowance recorded | 4,252 | 6,032 | |
Allowance for Loan Losses | 574 | 161 | |
Consumer | Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 883 | 771 | 1,757 |
Interest Income Recognized | 13 | 12 | 8 |
Cash Basis Interest Recognized | 13 | 11 | $ 8 |
Unpaid Principal Balance | |||
With no related allowance recorded | 671 | 469 | |
With an allowance recorded | 4 | 468 | |
Recorded Investment | |||
With no related allowance recorded | 675 | 469 | |
With an allowance recorded | 4 | 452 | |
Allowance for Loan Losses | $ 4 | $ 106 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Components of Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | $ 21,837 | $ 8,021 |
NTM Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 2,932 | 2,962 |
Traditional Loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 18,905 | 5,059 |
Commercial | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 16,245 | 2,276 |
Commercial | SBA | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 266 | 187 |
Commercial | NTM Loans | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 0 | 0 |
Commercial | NTM Loans | SBA | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 0 | 0 |
Commercial | Traditional Loans | Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 16,245 | 2,276 |
Commercial | Traditional Loans | SBA | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 266 | 187 |
Consumer | Single family residential mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 5,032 | 5,264 |
Consumer | Other consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 294 | 294 |
Consumer | NTM Loans | Single family residential mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 2,638 | 2,668 |
Consumer | NTM Loans | Other consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 294 | 294 |
Consumer | Traditional Loans | Single family residential mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | 2,394 | 2,596 |
Consumer | Traditional Loans | Other consumer | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled debt restructured loans and leases | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_13
LOANS AND ALLOWANCE FOR LOAN LOSSES - Accruing and Non-accrual Troubled Debt Restructurings (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Commitments to lend to clients with outstanding loans classified as TDRs | $ 135,000 | $ 0 |
Accruing TDRs | 6,600,000 | 5,700,000 |
Non-accrual TDRs | $ 15,200,000 | $ 2,300,000 |
LOANS AND ALLOWANCE FOR LOAN_14
LOANS AND ALLOWANCE FOR LOAN LOSSES - Summary of TDR Modification Type (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 14 | 3 | 4 |
Pre- Modification Outstanding Recorded Investment | $ 21,726 | $ 358 | $ 5,122 |
Post-Modification Outstanding Recorded Investment | $ 16,734 | $ 350 | $ 5,139 |
Change in Principal Payments and Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 14 | 0 | 2 |
Post-Modification Outstanding Recorded Investment | $ 16,734 | $ 0 | $ 1,290 |
Change in Principal Payments | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 2 | 2 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 163 | $ 3,849 |
Change in Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Chapter 7 Bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 187 | $ 0 |
Commercial | Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 12 | 2 | 1 |
Pre- Modification Outstanding Recorded Investment | $ 18,512 | $ 171 | $ 2,706 |
Post-Modification Outstanding Recorded Investment | $ 15,865 | $ 163 | $ 2,706 |
Commercial | Commercial and industrial | Change in Principal Payments and Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 12 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 15,865 | $ 0 | $ 0 |
Commercial | Commercial and industrial | Change in Principal Payments | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 2 | 1 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 163 | $ 2,706 |
Commercial | Commercial and industrial | Change in Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Commercial | Commercial and industrial | Chapter 7 Bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Commercial | Commercial and industrial | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Commercial | SBA | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | 1 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 3,214 | $ 187 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 869 | $ 187 | $ 0 |
Commercial | SBA | Change in Principal Payments and Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 2 | ||
Post-Modification Outstanding Recorded Investment | $ 869 | ||
Commercial | SBA | Change in Principal Payments | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | SBA | Change in Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | SBA | Chapter 7 Bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | SBA | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | Single family residential mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | ||
Post-Modification Outstanding Recorded Investment | $ 187 | ||
Commercial | Single family residential mortgage | Change in Principal Payments and Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | Single family residential mortgage | Change in Principal Payments | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | Single family residential mortgage | Change in Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | Single family residential mortgage | Chapter 7 Bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | ||
Commercial | Single family residential mortgage | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 1 | ||
Post-Modification Outstanding Recorded Investment | $ 187 | ||
Consumer | Single family residential mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | 3 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 2,416 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 2,433 |
Consumer | Single family residential mortgage | Change in Principal Payments and Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 2 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 1,290 | |
Consumer | Single family residential mortgage | Change in Principal Payments | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 1 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 1,143 | |
Consumer | Single family residential mortgage | Change in Interest Rates | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Consumer | Single family residential mortgage | Chapter 7 Bankruptcy | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Consumer | Single family residential mortgage | Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_15
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Sold and Purchased (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchases | $ 0 | $ 59,481 | $ 0 |
Sales | 0 | 0 | 0 |
Consumer | Single family residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchases | 0 | 59,481 | 0 |
Sales | 0 | 0 | 0 |
Consumer | Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchases | 0 | 0 | 0 |
Sales | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_16
LOANS AND ALLOWANCE FOR LOAN LOSSES - Purchases and Sales Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Premium on loans and leases purchased | $ 2,300 | |||
Transfers to loans held for sale | $ 1,139,597 | 376,995 | $ 465,854 | |
Realized loss on derivatives | 9,000 | |||
Gain on securitization | 8,900 | |||
Multifamily | Commercial | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transfers to loans held for sale | 752,087 | $ 81,449 | $ 6,583 | |
Multifamily | Federal Home Loan Mortgage Corporation | Commercial | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transfers to loans held for sale | $ 573,900 | |||
Weighted average coupon rate (percent) | 3.79% | |||
Weighted average term to initial reset | 3 years 6 months | |||
Interest rate swaps and caps on loans | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Combined notional value | $ 543,400 |
LOANS AND ALLOWANCE FOR LOAN_17
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Reclassification Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | $ 0 | $ 0 | $ 88,591 |
Transfers to Held-For-Sale | (1,139,597) | (376,995) | (465,854) |
Commercial | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 0 |
Transfers to Held-For-Sale | 0 | (1,133) | (3,924) |
Commercial | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 0 |
Transfers to Held-For-Sale | (573) | 0 | (1,329) |
Commercial | Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 0 |
Transfers to Held-For-Sale | (752,087) | (81,449) | (6,583) |
Commercial | SBA | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 0 |
Transfers to Held-For-Sale | (559) | 0 | (1,865) |
Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 0 |
Transfers to Held-For-Sale | (2,519) | (434) | (1,528) |
Consumer | Single family residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 88,591 |
Transfers to Held-For-Sale | (383,859) | (289,617) | (450,625) |
Consumer | Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Transfers from Held-For-Sale | 0 | 0 | 0 |
Transfers to Held-For-Sale | $ 0 | $ (4,362) | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_18
LOANS AND ALLOWANCE FOR LOAN LOSSES - Non Traditional Mortgage Loans Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 5,951,885 | $ 7,700,873 |
FICOR score decrease (percent) | 10.00% | |
Loan Portfolio | Loan Portfolio Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
NTM Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 600,656 | $ 826,731 |
NTM Loans | Loan Portfolio | Loan Portfolio Concentration Risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 10.10% | 10.70% |
NTM Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 600,656 | $ 826,731 |
Increase (decrease) in loans receivable | $ (226,100) | |
Increase (decrease) in loans receivable (percent) | (27.30%) | |
NTM Loans | Consumer | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 598,357 | 824,318 |
NTM Loans | Consumer | Green Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 52,300 | 70,100 |
Interest only notes balloon payment period | 15 years | |
NTM Loans | Consumer | Green Loans | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 49,959 | 67,729 |
Increase (decrease) in loans receivable | (17,770) | |
NTM Loans | Consumer | Green Loans | Nonperforming Financing Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,500 | 0 |
NTM Loans | Consumer | Interest only | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 545,400 | 753,100 |
NTM Loans | Consumer | Interest only | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 545,371 | 753,061 |
NTM Loans | Consumer | Interest only | Nonperforming Financing Receivables | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,500 | 0 |
NTM Loans | Consumer | Negative amortization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,000 | 3,500 |
NTM Loans | Consumer | Negative amortization | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 3,027 | $ 3,528 |
Number of non-performing loans | loan | 0 | 0 |
LOANS AND ALLOWANCE FOR LOAN_19
LOANS AND ALLOWANCE FOR LOAN LOSSES - Non Traditional Mortgages Portfolio (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 5,951,885 | $ 7,700,873 |
Loan Portfolio Concentration Risk | Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
NTM Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 600,656 | $ 826,731 |
NTM Loans | Loan Portfolio Concentration Risk | Loan Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 10.10% | 10.70% |
Consumer | NTM Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 461 | 628 |
Total loans | $ 600,656 | $ 826,731 |
Consumer | NTM Loans | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Consumer | NTM Loans | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 454 | 618 |
Total loans | $ 598,357 | $ 824,318 |
Consumer | NTM Loans | First lien | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 99.60% | 99.70% |
Consumer | NTM Loans | Second lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 7 | 10 |
Total loans | $ 2,299 | $ 2,413 |
Consumer | NTM Loans | Second lien | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 0.40% | 0.30% |
Consumer | NTM Loans | Green Loans (HELOC) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 52,300 | $ 70,100 |
Consumer | NTM Loans | Green Loans (HELOC) | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 69 | 88 |
Total loans | $ 49,959 | $ 67,729 |
Consumer | NTM Loans | Green Loans (HELOC) | First lien | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 8.30% | 8.20% |
Consumer | NTM Loans | Green Loans (HELOC) | Second lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 7 | 10 |
Total loans | $ 2,299 | $ 2,413 |
Consumer | NTM Loans | Green Loans (HELOC) | Second lien | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 0.40% | 0.30% |
Consumer | NTM Loans | Interest only | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 545,400 | $ 753,100 |
Consumer | NTM Loans | Interest only | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 376 | 519 |
Total loans | $ 545,371 | $ 753,061 |
Consumer | NTM Loans | Interest only | First lien | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 90.80% | 91.10% |
Consumer | NTM Loans | Negative amortization | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 3,000 | $ 3,500 |
Consumer | NTM Loans | Negative amortization | First lien | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Count | loan | 9 | 11 |
Total loans | $ 3,027 | $ 3,528 |
Consumer | NTM Loans | Negative amortization | First lien | Loan Portfolio Concentration Risk | Nontraditional Mortgage Loans Portfolio | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage to total loans and leases (percent) | 0.50% | 0.40% |
LOANS AND ALLOWANCE FOR LOAN_20
LOANS AND ALLOWANCE FOR LOAN LOSSES - Non Traditional Mortgage Performance by Credit Score (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 5,951,885 | $ 7,700,873 |
NTM Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 600,656 | $ 826,731 |
Consumer | NTM Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 461 | 628 |
Total loans | $ 600,656 | $ 826,731 |
Increase (decrease) in loans receivable | $ (226,100) | |
Increase (decrease) in loans receivable (percent) | (27.30%) | |
Consumer | NTM Loans | First lien | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 454 | 618 |
Total loans | $ 598,357 | $ 824,318 |
Consumer | NTM Loans | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 52,300 | $ 70,100 |
Consumer | NTM Loans | Green Loans | First lien | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 69 | 88 |
Total loans | $ 49,959 | $ 67,729 |
Increase (decrease) in count of loans receivable | loan | (19) | |
Increase (decrease) in loans receivable | $ (17,770) | |
Consumer | NTM Loans | Green Loans | First lien | Loan Portfolio Concentration Risk | Non-Traditional Single Family Residential Mortgage Green Loans First Lien Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Increase (decrease) in loans receivable (percent) | (26.20%) | |
Consumer | NTM Loans | Green Loans | First lien | Greater than 800 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 13 | 16 |
Total loans | $ 3,509 | $ 10,617 |
Increase (decrease) in count of loans receivable | loan | (3) | |
Increase (decrease) in loans receivable | $ (7,108) | |
Consumer | NTM Loans | Green Loans | First lien | Greater than 800 | Loan Portfolio Concentration Risk | Non-Traditional Single Family Residential Mortgage Green Loans First Lien Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 7.00% | 15.70% |
Increase (decrease) in loans receivable (percent) | (66.90%) | |
Consumer | NTM Loans | Green Loans | First lien | 700-799 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 38 | 50 |
Total loans | $ 27,011 | $ 34,888 |
Increase (decrease) in count of loans receivable | loan | (12) | |
Increase (decrease) in loans receivable | $ (7,877) | |
Consumer | NTM Loans | Green Loans | First lien | 700-799 | Loan Portfolio Concentration Risk | Non-Traditional Single Family Residential Mortgage Green Loans First Lien Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 54.10% | 51.50% |
Increase (decrease) in loans receivable (percent) | (22.60%) | |
Consumer | NTM Loans | Green Loans | First lien | 600-699 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 10 | 16 |
Total loans | $ 12,400 | $ 14,098 |
Increase (decrease) in count of loans receivable | loan | (6) | |
Increase (decrease) in loans receivable | $ (1,698) | |
Consumer | NTM Loans | Green Loans | First lien | 600-699 | Loan Portfolio Concentration Risk | Non-Traditional Single Family Residential Mortgage Green Loans First Lien Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 24.80% | 20.80% |
Increase (decrease) in loans receivable (percent) | (12.00%) | |
Consumer | NTM Loans | Green Loans | First lien | Less than 600 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 5 | 3 |
Total loans | $ 3,286 | $ 4,347 |
Increase (decrease) in count of loans receivable | loan | 2 | |
Increase (decrease) in loans receivable | $ (1,061) | |
Consumer | NTM Loans | Green Loans | First lien | Less than 600 | Loan Portfolio Concentration Risk | Non-Traditional Single Family Residential Mortgage Green Loans First Lien Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 6.60% | 6.40% |
Increase (decrease) in loans receivable (percent) | (24.40%) | |
Consumer | NTM Loans | Green Loans | First lien | No FICO score | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 3 | 3 |
Total loans | $ 3,753 | $ 3,779 |
Increase (decrease) in count of loans receivable | loan | 0 | |
Increase (decrease) in loans receivable | $ (26) | |
Consumer | NTM Loans | Green Loans | First lien | No FICO score | Loan Portfolio Concentration Risk | Non-Traditional Single Family Residential Mortgage Green Loans First Lien Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 7.50% | 5.60% |
Increase (decrease) in loans receivable (percent) | (0.70%) |
LOANS AND ALLOWANCE FOR LOAN_21
LOANS AND ALLOWANCE FOR LOAN LOSSES - Non Traditional Mortgage Performance Loan to Value Ratio (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 5,951,885 | $ 7,700,873 |
NTM Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 600,656 | $ 826,731 |
Consumer | NTM Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 461 | 628 |
Total loans | $ 600,656 | $ 826,731 |
Consumer | NTM Loans | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 52,300 | 70,100 |
Consumer | NTM Loans | Interest only | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 545,400 | 753,100 |
Consumer | NTM Loans | Negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 3,000 | $ 3,500 |
Consumer | NTM Loans | First lien | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 454 | 618 |
Total loans | $ 598,357 | $ 824,318 |
Consumer | NTM Loans | First lien | Loan Portfolio Concentration Risk | Nontraditional First Lien Mortgage Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Consumer | NTM Loans | First lien | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 69 | 88 |
Total loans | $ 49,959 | $ 67,729 |
Consumer | NTM Loans | First lien | Green Loans | Loan Portfolio Concentration Risk | Green Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Consumer | NTM Loans | First lien | Interest only | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 376 | 519 |
Total loans | $ 545,371 | $ 753,061 |
Consumer | NTM Loans | First lien | Interest only | Loan Portfolio Concentration Risk | Interest Only Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Consumer | NTM Loans | First lien | Negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 9 | 11 |
Total loans | $ 3,027 | $ 3,528 |
Consumer | NTM Loans | First lien | Negative amortization | Loan Portfolio Concentration Risk | Negative Amortization Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Consumer | NTM Loans | First lien | Less than 61 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 294 | 392 |
Total loans | $ 387,730 | $ 551,285 |
Consumer | NTM Loans | First lien | Less than 61 | Loan Portfolio Concentration Risk | Nontraditional First Lien Mortgage Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 64.80% | 66.90% |
Consumer | NTM Loans | First lien | Less than 61 | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 54 | 69 |
Total loans | $ 37,804 | $ 51,827 |
Consumer | NTM Loans | First lien | Less than 61 | Green Loans | Loan Portfolio Concentration Risk | Green Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 75.60% | 76.50% |
Consumer | NTM Loans | First lien | Less than 61 | Interest only | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 231 | 312 |
Total loans | $ 346,899 | $ 495,930 |
Consumer | NTM Loans | First lien | Less than 61 | Interest only | Loan Portfolio Concentration Risk | Interest Only Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 63.60% | 65.90% |
Consumer | NTM Loans | First lien | Less than 61 | Negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 9 | 11 |
Total loans | $ 3,027 | $ 3,528 |
Consumer | NTM Loans | First lien | Less than 61 | Negative amortization | Loan Portfolio Concentration Risk | Negative Amortization Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 100.00% | 100.00% |
Consumer | NTM Loans | First lien | 61-80 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 148 | 218 |
Total loans | $ 192,195 | $ 259,044 |
Consumer | NTM Loans | First lien | 61-80 | Loan Portfolio Concentration Risk | Nontraditional First Lien Mortgage Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 32.10% | 31.40% |
Consumer | NTM Loans | First lien | 61-80 | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 12 | 17 |
Total loans | $ 8,531 | $ 13,476 |
Consumer | NTM Loans | First lien | 61-80 | Green Loans | Loan Portfolio Concentration Risk | Green Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 17.10% | 19.90% |
Consumer | NTM Loans | First lien | 61-80 | Interest only | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 136 | 201 |
Total loans | $ 183,664 | $ 245,568 |
Consumer | NTM Loans | First lien | 61-80 | Interest only | Loan Portfolio Concentration Risk | Interest Only Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 33.70% | 32.60% |
Consumer | NTM Loans | First lien | 61-80 | Negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 0 | 0 |
Total loans | $ 0 | $ 0 |
Consumer | NTM Loans | First lien | 61-80 | Negative amortization | Loan Portfolio Concentration Risk | Negative Amortization Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 0.00% | 0.00% |
Consumer | NTM Loans | First lien | 81-100 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 9 | 7 |
Total loans | $ 10,705 | $ 9,867 |
Consumer | NTM Loans | First lien | 81-100 | Loan Portfolio Concentration Risk | Nontraditional First Lien Mortgage Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 1.80% | 1.20% |
Consumer | NTM Loans | First lien | 81-100 | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 3 | 2 |
Total loans | $ 3,624 | $ 2,426 |
Consumer | NTM Loans | First lien | 81-100 | Green Loans | Loan Portfolio Concentration Risk | Green Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 7.30% | 3.60% |
Consumer | NTM Loans | First lien | 81-100 | Interest only | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 6 | 5 |
Total loans | $ 7,081 | $ 7,441 |
Consumer | NTM Loans | First lien | 81-100 | Interest only | Loan Portfolio Concentration Risk | Interest Only Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 1.30% | 1.00% |
Consumer | NTM Loans | First lien | 81-100 | Negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 0 | 0 |
Total loans | $ 0 | $ 0 |
Consumer | NTM Loans | First lien | 81-100 | Negative amortization | Loan Portfolio Concentration Risk | Negative Amortization Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 0.00% | 0.00% |
Consumer | NTM Loans | First lien | Greater than 100 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 3 | 1 |
Total loans | $ 7,727 | $ 4,122 |
Consumer | NTM Loans | First lien | Greater than 100 | Loan Portfolio Concentration Risk | Nontraditional First Lien Mortgage Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 1.30% | 0.50% |
Consumer | NTM Loans | First lien | Greater than 100 | Green Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 0 | 0 |
Total loans | $ 0 | $ 0 |
Consumer | NTM Loans | First lien | Greater than 100 | Green Loans | Loan Portfolio Concentration Risk | Green Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 0.00% | 0.00% |
Consumer | NTM Loans | First lien | Greater than 100 | Interest only | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 3 | 1 |
Total loans | $ 7,727 | $ 4,122 |
Consumer | NTM Loans | First lien | Greater than 100 | Interest only | Loan Portfolio Concentration Risk | Interest Only Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 1.40% | 0.50% |
Consumer | NTM Loans | First lien | Greater than 100 | Negative amortization | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Count | loan | 0 | 0 |
Total loans | $ 0 | $ 0 |
Consumer | NTM Loans | First lien | Greater than 100 | Negative amortization | Loan Portfolio Concentration Risk | Negative Amortization Loans Portfolio | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Percentage to total loans and leases (percent) | 0.00% | 0.00% |
PREMISES AND EQUIPMENT, NET - S
PREMISES AND EQUIPMENT, NET - Summary of Premises, Equipment, and Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 182,666 | $ 174,398 |
Less accumulated depreciation | (54,645) | (45,004) |
Premises and equipment, net | 128,021 | 129,394 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 9,020 | 9,020 |
Building and Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 109,450 | 109,228 |
Furniture, fixture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 48,923 | 41,576 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 15,052 | 13,531 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 221 | $ 1,043 |
PREMISES AND EQUIPMENT, NET - A
PREMISES AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Impairment on capitalized software projects | $ 1,481 | $ 1,975 | $ 1,957 |
Depreciation and amortization on premises, equipment and operating lease right-of-use assets | $ 10,300 | $ 10,900 | $ 12,400 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Finance lease obligations | $ 585 | $ 1,100 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 month | |
Available lease renewal terms | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 20 years | |
Available lease renewal terms | 5 years |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense and Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating Lease Expense | $ 6,622 |
Variable Lease Expense | 356 |
Sublease Income | (250) |
Total Lease Expense | 6,728 |
Cash paid for amounts included in the measurement of lease liabilities for operating leases - operating cash flows | 6,989 |
ROU assets obtained in exchange for lease liabilities | 5,332 |
ASU 2016-02 | |
Lessee, Lease, Description [Line Items] | |
ROU assets obtained in exchange for lease liabilities | $ 23,332 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 22,540 |
Operating lease liabilities | $ 23,692 |
Operating leases - Weighted-average remaining lease term (in years): | 6 years 8 months 8 days |
Operating leases - Weighted-average discount rate (percent) | 2.92% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 6,727 |
2021 | 4,965 |
2022 | 3,387 |
2023 | 2,578 |
2024 | 1,710 |
Thereafter | 7,046 |
Total lease payments | 26,413 |
Less: present value discount | (2,721) |
Total Lease Liability | $ 23,692 |
SERVICING RIGHTS - Composition
SERVICING RIGHTS - Composition of Total Income (Loss) From Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Servicing fees for sold loans with servicing retained | $ 1,291 | $ 5,048 | $ 19,642 |
Losses on the fair value and amortization of servicing rights | (612) | (1,328) | (17,066) |
Total income from servicing rights | 679 | 3,720 | 2,576 |
Banc home loans | Disposals | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loan servicing income | $ 0 | $ 0 | $ 1,551 |
SERVICING RIGHTS - Additional I
SERVICING RIGHTS - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Assets at Fair Value [Line Items] | ||||
Unpaid principal balance | $ 150,600 | $ 204,000 | ||
Escrow balances | 198 | 300 | ||
Sales of servicing rights | $ 28,500 | 0 | 28,549 | $ 39,345 |
Unpaid principal balances of conventional agency mortgage loans | 3,550,000 | |||
Proceeds from sale of mortgage servicing rights | $ 30,100 | 0 | 30,056 | 1,496 |
Net loss on sale of mortgage servicing rights | 0 | (2,260) | $ 0 | |
SBA | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Unpaid principal balance | $ 75,200 | $ 96,400 |
SERVICING RIGHTS - Schedule of
SERVICING RIGHTS - Schedule of Servicing Rights (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Transfers and Servicing [Abstract] | ||||
Mortgage servicing rights, at fair value | $ 1,157 | $ 1,770 | $ 31,852 | $ 76,121 |
SBA servicing rights, at cost | 1,142 | 1,658 | $ 1,856 | $ 1,496 |
Total | $ 2,299 | $ 3,428 |
SERVICING RIGHTS - Summary of K
SERVICING RIGHTS - Summary of Key Characteristics, Inputs and Economic Assumptions Used to Estimate Fair Value of MSRs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of retained MSRs | $ 1,157 | $ 1,770 | $ 31,852 | $ 76,121 |
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of retained MSRs | $ 1,157 | $ 1,704 | ||
Discount rate (percent) | 13.00% | 13.00% | ||
Constant prepayment rate (percent) | 18.96% | 17.21% | ||
Weighted-average life (in years) | 4 years 4 months 28 days | 4 years 11 months 4 days |
SERVICING RIGHTS - Mortgage Ser
SERVICING RIGHTS - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | 21 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Balance at beginning of year | $ 31,852 | $ 1,770 | $ 31,852 | $ 76,121 | |
Additions | 0 | 0 | 12,127 | ||
Changes in fair value resulting from valuation inputs or assumptions | (265) | (1,155) | (10,240) | ||
Sales of servicing rights | $ (28,500) | 0 | (28,549) | (39,345) | |
Other—loans paid off | (348) | (378) | (6,811) | ||
Balance at end of year | 1,157 | 1,770 | 31,852 | $ 1,770 | |
Banc home loans | Disposals | |||||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Sales of servicing rights | $ 0 | $ 0 | $ (37,772) | $ (37,772) |
SERVICING RIGHTS - Summary of_2
SERVICING RIGHTS - Summary of Key Characteristics, Inputs and Economic Assumptions Used to Estimate Fair Value of SBA Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing rights, at fair value | $ 1,157 | $ 1,770 | $ 31,852 | $ 76,121 |
Significant Unobservable Inputs (Level 3) | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing rights, at fair value | $ 1,157 | $ 1,704 | ||
Discount rate (percent) | 13.00% | 13.00% | ||
Constant prepayment rate (percent) | 18.96% | 17.21% | ||
Weighted-average life (in years) | 4 years 4 months 28 days | 4 years 11 months 4 days | ||
Significant Unobservable Inputs (Level 3) | SBA | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing rights, at fair value | $ 1,142 | $ 1,658 | ||
Discount rate (percent) | 8.75% | 9.50% | ||
Constant prepayment rate (percent) | 8.00% | 8.00% | ||
Weighted-average life (in years) | 3 years 9 months | 4 years 3 months 14 days |
SERVICING RIGHTS - Small Busine
SERVICING RIGHTS - Small Business Administration Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | |||
Balance at beginning of year | $ 1,658 | $ 1,856 | $ 1,496 |
Additions | 0 | 127 | 761 |
Amortization, including prepayments | (493) | (298) | (318) |
Impairment | (23) | (27) | (83) |
Balance at end of year | $ 1,142 | $ 1,658 | $ 1,856 |
OTHER REAL ESTATE OWNED - Activ
OTHER REAL ESTATE OWNED - Activities in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Real Estate and Foreclosed Assets [Roll Forward] | |||
Balance at beginning of year | $ 672 | $ 1,796 | $ 2,502 |
Additions | 276 | 672 | 3,086 |
Sales and net direct write-downs | (803) | (2,038) | (3,556) |
Net change in valuation allowance | (145) | 242 | (236) |
Balance at end of year | $ 0 | $ 672 | $ 1,796 |
OTHER REAL ESTATE OWNED - Act_2
OTHER REAL ESTATE OWNED - Activities in Other Real Estate Owned Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Owned Valuation Allowance [Roll Forward] | |||
Balance at beginning of year | $ 0 | $ 242 | $ 6 |
Additions | 145 | 143 | 242 |
Recoveries | 0 | (90) | 0 |
Net direct write-downs and removals from sale | (145) | (295) | (6) |
Balance at end of year | $ 0 | $ 0 | $ 242 |
OTHER REAL ESTATE OWNED - Expen
OTHER REAL ESTATE OWNED - Expenses Related to Foreclosed Assets Included in Loan Servicing and Foreclosure Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |||
Net loss on sales | $ 40 | $ (13) | $ (48) |
Operating expenses, net of rental income | 0 | (134) | (51) |
Total | $ 40 | $ (147) | $ (99) |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 37,144 | $ 37,144 | $ 37,144 | $ 39,244 |
Impairment on intangible assets | 0 | 0 | 336 | |
Aggregate amortization expense | $ 2,195 | $ 3,007 | 3,928 | |
Core deposit intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period | 4 years 8 months 12 days | |||
Customer relationship intangible | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment on intangible assets | 246 | |||
Trade name intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment on intangible assets | 90 | |||
Minimum | Core deposit intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period of other intangible assets | 4 years | |||
Maximum | Core deposit intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization period of other intangible assets | 10 years | |||
Mortgage Banking | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, impairment loss | $ 2,100 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Goodwill Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 37,144 | $ 37,144 | $ 39,244 |
Goodwill adjustments for discontinued operations | 0 | 0 | (2,100) |
Goodwill | 37,144 | 37,144 | 37,144 |
Accumulated impairment losses at end of year | $ 2,100 | $ 2,100 | $ 2,100 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Value | $ 4,151 | |
Core deposit intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 30,904 | $ 30,904 |
Accumulated Amortization | 26,753 | 24,558 |
Net Carrying Value | $ 4,151 | $ 6,346 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 1,518 |
2021 | 1,082 |
2022 | 799 |
2023 | 517 |
2024 | 235 |
2025 and After | 0 |
Net Carrying Value | $ 4,151 |
DEPOSITS - Components of Intere
DEPOSITS - Components of Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Noninterest-bearing deposits | $ 1,088,516 | $ 1,023,360 |
Interest-bearing deposits | ||
Interest-bearing demand deposits | 1,533,882 | 1,556,410 |
Money market accounts | 715,479 | 873,153 |
Savings accounts | 885,246 | 1,265,847 |
Certificates of deposit of $250,000 or less | 582,772 | 2,388,592 |
Certificates of deposit of more than $250,000 | 621,272 | 809,282 |
Total interest-bearing deposits | 4,338,651 | 6,893,284 |
Total deposits | $ 5,427,167 | $ 7,916,644 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Deposits [Line Items] | ||
Deposit reclassified as loans | $ 300 | $ 477 |
Deposits | 5,427,167 | 7,916,644 |
California State Treasurer | ||
Schedule Of Deposits [Line Items] | ||
Deposits | 300,000 | |
Letters of credit | 300,000 | 330,000 |
Other Public Entities | ||
Schedule Of Deposits [Line Items] | ||
Deposits | 23,300 | 18,600 |
Securities pledged as collateral | $ 0 | $ 57,800 |
DEPOSITS - Summary of Brokered
DEPOSITS - Summary of Brokered Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Interest-bearing demand deposits | $ 0 | $ 770 |
Money market accounts | 10,000 | 164,505 |
Certificates of deposit of $250,000 or less | 0 | 1,543,269 |
Certificates of deposit of more than $250,000 | 0 | 0 |
Total brokered deposits | $ 10,000 | $ 1,708,544 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Certificates of deposit of $250,000 or less | ||
2020 | $ 527,920 | |
2021 | 46,186 | |
2022 | 4,300 | |
2023 | 2,795 | |
2024 | 1,571 | |
Total | 582,772 | $ 2,388,592 |
Certificates of deposit of more than $250,000 | ||
2020 | 578,583 | |
2021 | 15,433 | |
2022 | 26,442 | |
2023 | 814 | |
2024 | 0 | |
Total | 621,272 | $ 809,282 |
Time Deposits [Abstract] | ||
2020 | 1,106,503 | |
2021 | 61,619 | |
2022 | 30,742 | |
2023 | 3,609 | |
2024 | 1,571 | |
Total | $ 1,204,044 |
FEDERAL HOME LOAN BANK ADVANC_3
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS - Summary of Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances [Line Items] | ||
Fixed bank advances | $ 730,000 | $ 805,000 |
Variable bank advances | $ 465,000 | $ 715,000 |
FHLB variable-rate, weighted average interest rate (percent) | 1.66% | 2.56% |
Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Company advances weighted average interest rate (percent) | 1.82% | 1.61% |
Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Company advances weighted average interest rate (percent) | 3.32% | 3.32% |
Weighted Average | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Company advances weighted average interest rate (percent) | 2.66% | 2.58% |
FEDERAL HOME LOAN BANK ADVANC_4
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS - Fiscal Year Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed rate | |||
2020 | $ 174,000 | ||
2021 | 145,000 | ||
2022 | 46,000 | ||
2023 | 45,000 | ||
2024 and After | 320,000 | ||
Total | 730,000 | $ 805,000 | |
Variable rate | |||
2020 | 465,000 | ||
2021 | 0 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 and After | 0 | ||
Total | 465,000 | 715,000 | |
Total | |||
2020 | 639,000 | ||
2021 | 145,000 | ||
2022 | 46,000 | ||
2023 | 45,000 | ||
2024 and After | 320,000 | ||
Total | $ 1,195,000 | $ 1,520,000 | $ 1,695,000 |
FEDERAL HOME LOAN BANK ADVANC_5
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS - Additional Information (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Advances from FHLB collateralized | $ 3,050,000,000 | $ 4,050,000,000 | |
Line of Credit Facility [Line Items] | |||
Securities sold under repurchase agreements | 0 | 0 | |
Federal Reserve Bank Advances | |||
Line of Credit Facility [Line Items] | |||
Amount of available line of credit with Federal Reserve Bank | 16,700,000 | ||
Other borrowings | 0 | ||
Line of Credit | Unsecured Federal Funds Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Amount of available line of credit with Federal Reserve Bank | 185,000,000 | ||
Other borrowings | 0 | ||
Line of Credit | Line Of Credit Facility Maturing April 18, 2017 | |||
Line of Credit Facility [Line Items] | |||
Amount of available line of credit with Federal Reserve Bank | $ 75,000,000 | ||
Repayments of lines of credit | $ 50,000,000 | ||
Line of Credit | Line of Credit Facility Maturing March 28, 2016 | London Interbank Offered Rate (LIBOR) | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Collateralized loan obligations | Federal Reserve Bank Advances | |||
Line of Credit Facility [Line Items] | |||
Collateral on line of credit facility | 23,900,000 | ||
Federal Home Loan Bank of San Francisco | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
FHLB stock | 32,300,000 | $ 41,000,000 | |
Amount of additional available borrowing | $ 1,020,000,000 |
FEDERAL HOME LOAN BANK ADVANC_6
FEDERAL HOME LOAN BANK ADVANCES AND SHORT-TERM BORROWINGS - Financial Data of Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |||
Weighted-average interest rate at end of year (percent) | 2.27% | 2.57% | 1.60% |
Average interest rate during the year (percent) | 2.55% | 2.15% | 1.23% |
Average balance | $ 1,264,945 | $ 1,627,608 | $ 1,054,978 |
Maximum amount outstanding at any month-end | 1,850,000 | 2,030,000 | 1,695,000 |
Balance at end of year | $ 1,195,000 | $ 1,520,000 | $ 1,695,000 |
LONG-TERM DEBT - Summary of Lon
LONG-TERM DEBT - Summary of Long-term Debt (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 06, 2015 |
Debt Instrument [Line Items] | |||
Par Value | $ 175,000,000 | $ 175,000,000 | |
Unamortized Debt Issuance Cost and Discount | $ (1,579,000) | (1,826,000) | |
Senior Notes | 5.25% Senior Notes Due April 15, 2025 | |||
Debt Instrument [Line Items] | |||
Stated interest rate (percent) | 5.25% | 5.25% | |
Par Value | $ 175,000,000 | 175,000,000 | $ 175,000,000 |
Unamortized Debt Issuance Cost and Discount | $ (1,579,000) | $ (1,826,000) |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) | Apr. 06, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Aggregate principal amount issued | $ 175,000,000 | $ 175,000,000 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, optional redemption period prior to maturity | 90 days | ||
Minimum redemption period notice required | 30 days | ||
Maximum redemption period notice required | 60 days | ||
Redemption price, percentage | 100.00% | ||
Senior Notes | 5.25% Senior Notes Due April 15, 2025 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount issued | $ 175,000,000 | $ 175,000,000 | $ 175,000,000 |
Stated interest rate (percent) | 5.25% | 5.25% | |
Net proceeds from issuance of long-term debt | $ 172,800,000 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income taxes: | |||||||||||
Federal | $ 3,900 | $ 5,720 | $ (2,215) | ||||||||
State | 941 | 5,035 | 6,006 | ||||||||
Total current income tax expense | 4,841 | 10,755 | 3,791 | ||||||||
Deferred income taxes: | |||||||||||
Federal | (1,492) | (4,418) | (25,938) | ||||||||
State | 870 | (1,493) | (4,434) | ||||||||
Total deferred income tax expense | (622) | (5,911) | (30,372) | ||||||||
Income tax expense (benefit) | $ 2,811 | $ (5,619) | $ 4,308 | $ 2,719 | $ 6,117 | $ 3,301 | $ 1,779 | $ (6,353) | $ 4,219 | $ 4,844 | $ (26,581) |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Computed expected income tax expense (benefit) at Federal statutory rate | 21.00% | 21.00% | 35.00% |
Increase (decrease) resulting from: | |||
Proportional amortization | 12.60% | 4.30% | 5.10% |
Other permanent book-tax differences | (2.40%) | 0.40% | (2.10%) |
State tax expense, net of federal benefit | 5.10% | 5.90% | 3.70% |
Income tax credits (investment tax credits and other) | (21.30%) | (25.40%) | (149.50%) |
Basis reduction in investment in alternative energy partnership | 1.30% | 2.20% | 24.90% |
Write-off of Goodwill for discontinued operations | 0.00% | 0.00% | 2.70% |
Bank owned life insurance policies | (1.70%) | (1.00%) | (3.00%) |
Equity compensation shortfall (windfall) tax impact | 0.60% | (0.50%) | (7.00%) |
Remeasurement from the Tax Cuts and Jobs Act | 0.00% | 0.00% | (7.80%) |
Reserve for uncertain tax positions | (1.00%) | 0.10% | 1.90% |
Other, net | 0.90% | 3.30% | (2.70%) |
Effective tax rates | 15.10% | 10.30% | (98.80%) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Tax credits on investments in alternative energy partnership | $ 3,400,000 | $ 9,600,000 | $ 38,200,000 | |
Deferred income tax expense | (622,000) | (5,911,000) | (30,372,000) | |
Tax Cuts and Jobs Act of 2017 - Tax benefit from remeasurement | 2,100,000 | |||
Unused tax credit carryforward | 30,500,000 | 26,900,000 | ||
Valuation allowance | 0 | 0 | ||
Income before income taxes and net operating loss carryforward | $ 12,200,000 | |||
Percent of domestic and state operating loss carryforwards utilized | 9.20% | |||
Unrecognized tax benefits | $ 977,000 | 1,227,000 | 1,047,000 | $ 0 |
Total unrecognized tax benefit that, if recognized, would impact the effective tax rate | 767,000 | |||
Accrued penalties and interest | 0 | 0 | ||
Alternative Energy Partnership | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred income tax expense | 362,000 | 1,000,000 | 6,700,000 | |
Affordable Housing Partnerships | ||||
Operating Loss Carryforwards [Line Items] | ||||
Gross investment in limited partnership | 49,300,000 | |||
Unfunded amount in limited partnership | 22,400,000 | |||
Balance of investment | 36,500,000 | 20,000,000 | ||
Tax deductions | 6,200,000 | |||
Tax credits | 400,000 | |||
Investment amortization | 3,500,000 | 2,000,000 | $ 1,400,000 | |
Investment Tax Credit Carryforward | Affordable Housing Partnerships | ||||
Operating Loss Carryforwards [Line Items] | ||||
Unused tax credit carryforward | 3,100,000 | $ 2,700,000 | ||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 1,800,000 | |||
Operating loss carryforward utilized | 474,000 | |||
Domestic Tax Authority | Low Income Housing Tax Credit | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward utilized | 1,900,000 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 8,600,000 | |||
State and Local Jurisdiction | Research Tax Credit Carryforward | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward utilized | 350,000 | |||
State and Local Jurisdiction | State Film Tax Credit | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward utilized | 369,000 | |||
State and Local Jurisdiction | Low Income Housing Tax Credit | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward utilized | 151,000 | |||
Gateway Bancorp | ||||
Operating Loss Carryforwards [Line Items] | ||||
Section 382 limitation | $ 474,000 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 15,874,000 | $ 18,813,000 |
Stock-based compensation expense | 2,222,000 | 2,249,000 |
Accrued expenses | 3,831,000 | 2,678,000 |
Reserve for loss on repurchased loans | 1,826,000 | 736,000 |
Federal net operating losses | 372,000 | 471,000 |
State net operating losses | 725,000 | 759,000 |
Federal income tax credits | 30,661,000 | 27,087,000 |
Unrealized loss on securities available-for-sale | 4,968,000 | 10,046,000 |
Deferred loan fees | 2,104,000 | 2,446,000 |
Amortization of intangible assets | 1,248,000 | 1,101,000 |
Prior year state tax deduction | 85,000 | 1,272,000 |
Lease liability | 6,978,000 | |
Other deferred tax assets | 2,835,000 | 3,456,000 |
Total deferred tax assets | 73,729,000 | 71,114,000 |
Deferred tax liabilities: | ||
Investments in partnerships | (7,455,000) | (5,317,000) |
Mortgage servicing rights | (341,000) | (520,000) |
Deferred loan costs | (6,623,000) | (8,528,000) |
Depreciation on premises and equipment | (5,796,000) | (4,710,000) |
Right of use asset | (6,638,000) | |
Other deferred tax liabilities | (1,970,000) | (2,635,000) |
Total deferred tax liabilities | (28,823,000) | (21,710,000) |
Valuation allowance | 0 | 0 |
Net deferred tax assets | $ 44,906,000 | $ 49,404,000 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 1,227 | $ 1,047 | $ 0 |
Increase related to prior year tax positions | 0 | 0 | 867 |
Decrease related to prior year tax positions | (101) | 0 | 0 |
Increase in current year tax positions | 120 | 180 | 180 |
Decrease related to lapsing of statute of limitations | (269) | 0 | 0 |
Ending balance | $ 977 | $ 1,227 | $ 1,047 |
RESERVE FOR LOSS ON REPURCHAS_3
RESERVE FOR LOSS ON REPURCHASED LOANS - Summary of Activities in Reserve for Loss Reimbursements on Sold Loans (Details) - Representations and Warranties Obligations and Corporate Guarantees - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingency Accrual [Roll Forward] | |||
Balance at beginning of year | $ 2,506 | $ 6,306 | $ 7,974 |
Initial provision for loan repurchases | 4,563 | 126 | 1,622 |
Subsequent change in the reserve | (660) | (2,488) | (1,812) |
Utilization of reserve for loan repurchases | (208) | (1,438) | (2,238) |
Other adjustments | 0 | 0 | 760 |
Balance at end of year | $ 6,201 | $ 2,506 | $ 6,306 |
RESERVE FOR LOSS ON REPURCHAS_4
RESERVE FOR LOSS ON REPURCHASED LOANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Representations and Warranties Obligations and Corporate Guarantees | ||
Loss Contingencies [Line Items] | ||
Increase (decrease) in reserve for loss on repurchased loans | $ 3.7 | |
Freddie Mac Multifamily Loan Securitization Reserve | ||
Loss Contingencies [Line Items] | ||
Increase (decrease) in reserve for loss on repurchased loans | $ 4.4 | |
Representations and Warranties Obligations and Corporate Guarantees, Portfolio Run-Off And Repurchase Settlement Activities | ||
Loss Contingencies [Line Items] | ||
Increase (decrease) in reserve for loss on repurchased loans | $ (1.5) |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | |||
Derivatives asset, fair values | $ 3,583,000 | $ 1,534,000 | |
Derivative instruments related to mortgage banking activity | |||
Derivative [Line Items] | |||
Gain (loss) on derivatives | 0 | 0 | $ (12,400,000) |
Derivatives asset, fair values | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Amount
DERIVATIVE INSTRUMENTS - Amount and Market Value of Mortgage Banking Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount Assets | $ 75,317 | $ 103,812 |
Derivatives asset, fair values | 3,583 | 1,534 |
Notional Amount Liability | 75,317 | 103,812 |
Derivatives liability, fair values | 3,853 | 1,600 |
Interest rate swaps and caps on loans | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Assets | 70,674 | 103,812 |
Derivatives asset, fair values | 3,445 | 1,534 |
Notional Amount Liability | 70,674 | 103,812 |
Derivatives liability, fair values | 3,717 | 1,600 |
Foreign exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount Assets | 4,643 | 0 |
Derivatives asset, fair values | 138 | 0 |
Notional Amount Liability | 4,643 | 0 |
Derivatives liability, fair values | $ 136 | $ 0 |
EMPLOYEE STOCK COMPENSATION - A
EMPLOYEE STOCK COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 24, 2016 | Aug. 21, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Stock option awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Award expiration period | 7 years | ||||
Stock option awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Award expiration period | 10 years | ||||
Restricted stock awards and restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 796,547 | 650,676 | 859,722 | ||
Vested (in shares) | 273,904 | 415,994 | 854,031 | ||
Forfeited (in shares) | 432,762 | 312,714 | 511,202 | ||
Restricted stock awards and restricted stock units | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 1 year | ||||
Restricted stock awards and restricted stock units | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 174,935 | 306,801 | 152,709 | ||
Vested (in shares) | 37,572 | 44,817 | 10,000 | ||
Forfeited (in shares) | 233,999 | 86,936 | 107,545 | ||
Stock appreciation rights | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 0 | 0 | 0 | ||
Vested (in shares) | 0 | 0 | 8,034 | ||
Forfeited (in shares) | 0 | 0 | 35 | ||
SARs granted (in shares) | 0 | 0 | 0 | ||
Stock appreciation rights | Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Award expiration period | 10 years | ||||
SARs granted (in shares) | 500,000 | ||||
Base price per share (in dollars per share) | $ 12.12 | ||||
Performance based restricted stock | Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate grant date fair value market value | $ 5 | ||||
2018 Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares available for awards (shares) | 4,417,882 | ||||
Common stock available for future awards (shares) | 3,674,033 |
EMPLOYEE STOCK COMPENSATION - S
EMPLOYEE STOCK COMPENSATION - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 5,039 | $ 6,565 | $ 12,134 |
Related tax benefits | 1,481 | 1,929 | 5,078 |
Stock option awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | (8) | 174 | 360 |
Restricted stock awards and restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | 5,047 | 6,391 | 11,732 |
Stock appreciation rights | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation expense | $ 0 | $ 0 | $ 42 |
EMPLOYEE STOCK COMPENSATION - U
EMPLOYEE STOCK COMPENSATION - Unrecognized Stock-based Compensation Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 9,091 |
Weighted-Average Remaining Expected Recognition Period | 2 years 2 months 12 days |
Stock option awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 4 |
Weighted-Average Remaining Expected Recognition Period | 6 months |
Restricted stock awards and restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Expense | $ 9,087 |
Weighted-Average Remaining Expected Recognition Period | 2 years 2 months 12 days |
EMPLOYEE STOCK COMPENSATION -_2
EMPLOYEE STOCK COMPENSATION - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Grant date fair value of options granted | $ 0 | $ 0 | $ 0 |
Fair value of options vested | 67 | 160 | 611 |
Total intrinsic value of options exercised | 87 | 96 | 3,747 |
Cash received from options exercised | $ 0 | $ 0 | $ 2,043 |
Weighted-average estimated fair value per share of options granted (in dollars per share) | $ 0 | $ 0 | $ 0 |
EMPLOYEE STOCK COMPENSATION - O
EMPLOYEE STOCK COMPENSATION - Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 186,973 | 210,973 | 968,591 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (74,836) | (24,000) | (488,281) |
Forfeited (in shares) | (49,616) | 0 | (269,337) |
Expired (in shares) | 0 | 0 | 0 |
Outstanding at end of year (in shares) | 62,521 | 186,973 | 210,973 |
Exercisable at end of year (in shares) | 60,273 | 123,125 | 105,541 |
Weighted-Average Exercise Price per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 13.54 | $ 13.99 | $ 13.95 |
Exercised (in dollars per share) | 13.41 | 17.50 | 12.53 |
Forfeited (in dollars per share) | 13.34 | 0 | 16.49 |
Expired (in dollars per share) | 0 | 0 | 0 |
Outstanding at end of year (in dollars per share) | 13.85 | 13.54 | 13.99 |
Exercisable at end of year (in dollars per share) | $ 13.86 | $ 13.67 | $ 14.68 |
EMPLOYEE STOCK COMPENSATION - N
EMPLOYEE STOCK COMPENSATION - Nonvested Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 63,848 | 105,432 | 518,936 |
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | (17,600) | (41,584) | (174,833) |
Forfeited (in shares) | (44,000) | 0 | (238,671) |
Outstanding at end of year (in shares) | 2,248 | 63,848 | 105,432 |
Weighted-Average Exercise Price per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 13.30 | $ 13.31 | $ 15.04 |
Granted (in dollars per share) | 0 | 0 | 0 |
Vested (in dollars per share) | 13.26 | 13.32 | 14.10 |
Forfeited (in dollars per share) | 13.29 | 0 | 16.50 |
Outstanding at end of year (in dollars per share) | $ 13.75 | $ 13.30 | $ 13.31 |
EMPLOYEE STOCK COMPENSATION -_3
EMPLOYEE STOCK COMPENSATION - Summary of Stock Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Outstanding, Number of Shares (in shares) | 62,521 | |
Options Outstanding, Intrinsic Value | $ 80 | |
Options Outstanding, Weighted- Average Exercise Price per Share (in dollars per share) | $ 13.85 | |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | 4 years 3 months 18 days | |
Options Exercisable, Number of Shares (in shares) | 60,273 | |
Options Exercisable, Intrinsic Value | $ 77 | |
Options Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 13.86 | |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 4 years 3 months 18 days | |
$10.90 to $11.87 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in usd per share) | $ 10.90 | |
Upper range of exercise price (in usd per share) | 11.87 | |
Options Outstanding, Number of Shares (in shares) | 5,508 | |
Options Outstanding, Intrinsic Value | $ 22 | |
Options Outstanding, Weighted- Average Exercise Price per Share (in dollars per share) | $ 10.90 | |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | 4 years 6 months | |
Options Exercisable, Number of Shares (in shares) | 5,508 | |
Options Exercisable, Intrinsic Value | $ 22 | |
Options Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 10.90 | |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 4 years 6 months | |
$11.88 to $12.85 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in usd per share) | 11.88 | |
Upper range of exercise price (in usd per share) | 12.85 | |
Options Outstanding, Number of Shares (in shares) | 0 | |
Options Outstanding, Intrinsic Value | $ 0 | |
Options Outstanding, Weighted- Average Exercise Price per Share (in dollars per share) | $ 0 | |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | 0 years | |
Options Exercisable, Number of Shares (in shares) | 0 | |
Options Exercisable, Intrinsic Value | $ 0 | |
Options Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 0 | |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 0 years | |
$12.86 to $13.83 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in usd per share) | 12.86 | |
Upper range of exercise price (in usd per share) | 13.83 | |
Options Outstanding, Number of Shares (in shares) | 40,848 | |
Options Outstanding, Intrinsic Value | $ 58 | |
Options Outstanding, Weighted- Average Exercise Price per Share (in dollars per share) | $ 13.48 | |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | 5 years 4 months 24 days | |
Options Exercisable, Number of Shares (in shares) | 38,600 | |
Options Exercisable, Intrinsic Value | $ 55 | |
Options Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 13.46 | |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 5 years 4 months 24 days | |
$13.84 to $14.81 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in usd per share) | 13.84 | |
Upper range of exercise price (in usd per share) | 14.81 | |
Options Outstanding, Number of Shares (in shares) | 0 | |
Options Outstanding, Intrinsic Value | $ 0 | |
Options Outstanding, Weighted- Average Exercise Price per Share (in dollars per share) | $ 0 | |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | 0 years | |
Options Exercisable, Number of Shares (in shares) | 0 | |
Options Exercisable, Intrinsic Value | $ 0 | |
Options Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 0 | |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 0 years | |
$14.82 to $15.82 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in usd per share) | 14.82 | |
Upper range of exercise price (in usd per share) | $ 15.82 | |
Options Outstanding, Number of Shares (in shares) | 16,165 | |
Options Outstanding, Intrinsic Value | $ 0 | |
Options Outstanding, Weighted- Average Exercise Price per Share (in dollars per share) | $ 15.81 | |
Options Outstanding, Weighted- Average Remaining Contractual Life (in years) | 1 year 6 months | |
Options Exercisable, Number of Shares (in shares) | 16,165 | |
Options Exercisable, Intrinsic Value | $ 0 | |
Options Exercisable, Weighted-Average Exercise Price Per Share (in dollars per share) | $ 15.81 | |
Options Exercisable, Weighted-Average Remaining Contractual Life (in years) | 1 year 6 months |
EMPLOYEE STOCK COMPENSATION -_4
EMPLOYEE STOCK COMPENSATION - Nonvested Restricted Stock Awards and Restricted Stock Units (Details) - Restricted stock awards and restricted stock units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 833,601 | 911,633 | 1,417,144 |
Granted (in shares) | 796,547 | 650,676 | 859,722 |
Vested (in shares) | (273,904) | (415,994) | (854,031) |
Forfeited (in shares) | (432,762) | (312,714) | (511,202) |
Outstanding at end of year (in shares) | 923,482 | 833,601 | 911,633 |
Weighted-Average Price per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 18.96 | $ 18.73 | $ 16.16 |
Granted (in dollars per share) | 14.40 | 18.89 | 20.81 |
Vested (in dollars per share) | 18.37 | 18.65 | 15.95 |
Forfeited (in dollars per share) | 17.93 | 18.54 | 17.80 |
Outstanding at end of year (in dollars per share) | $ 15.74 | $ 18.96 | $ 18.73 |
EMPLOYEE STOCK COMPENSATION -_5
EMPLOYEE STOCK COMPENSATION - Summary of SARs Activity (Details) - Stock appreciation rights - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 1,559,012 | 1,559,012 | 1,559,047 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | (35) |
Outstanding at end of year (in shares) | 1,559,012 | 1,559,012 | 1,559,012 |
Exercisable at end of year (in shares) | 1,559,012 | 1,559,012 | 1,559,012 |
Weighted-Average Exercise Price per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 11.60 | $ 11.60 | $ 11.60 |
Granted (in dollars per share) | 0 | 0 | 0 |
Exercised (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | 10.09 |
Outstanding at end of year (in dollars per share) | 11.60 | 11.60 | 11.60 |
Exercisable at end of year (in dollars per share) | $ 11.60 | $ 11.60 | $ 11.60 |
Number of Shares | |||
Outstanding at beginning of year (in shares) | 0 | 0 | 8,069 |
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | 0 | 0 | (8,034) |
Forfeited (in shares) | 0 | 0 | (35) |
Outstanding at end of year (in shares) | 0 | 0 | 0 |
Weighted-Average Price per Share | |||
Outstanding at beginning of year (in dollars per share) | $ 0 | $ 0 | $ 10.09 |
Granted (in dollars per share) | 0 | 0 | 0 |
Vested (in dollars per share) | 0 | 0 | 10.09 |
Forfeited (in dollars per share) | 0 | 0 | 10.09 |
Outstanding at end of year (in dollars per share) | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee contribution on compensation, maximum (percent) | 100.00% | ||
Employer contribution match on compensation (percent) | 100.00% | ||
Percentage of employees' annual contribution, eligible for employers match (percent) | 4.00% | ||
401(k) plan expense | $ 2,100 | $ 2,100 | $ 3,100 |
Restricted Stock | 2013 Omnibus Stock Incentive Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Award vesting period | 5 years | ||
Restricted stock awards issued under Employee Equity Ownership Plan | 72,561 | 35,016 | |
Unvested restricted stock awards (in shares) | 36,588 | ||
Unrecognized stock-based compensation expense | $ 691 |
STOCKHOLDERS' EQUITY - Warrants
STOCKHOLDERS' EQUITY - Warrants (Details) - $ / shares | Jun. 30, 2018 | Jun. 29, 2018 | Jun. 06, 2018 | Mar. 31, 2018 | Mar. 30, 2018 | Dec. 31, 2017 | Dec. 27, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 17, 2016 | Mar. 09, 2016 | Dec. 08, 2015 | Aug. 22, 2012 | Dec. 31, 2019 | Aug. 17, 2016 | Aug. 16, 2016 | Aug. 03, 2011 | Nov. 01, 2010 |
Class of Stock [Line Items] | |||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 11 | ||||||||||||||||||||
Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 1,395,000 | ||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 11 | $ 11 | $ 11 | ||||||||||||||||||
President And Chief Executive Officer | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 960,000 | 480,000 | 960,000 | ||||||||||||||||||
Number of warrants exercised (in shares) | 90,000 | ||||||||||||||||||||
President And Chief Executive Officer | Cor Advisors Llc | Exercisable on September 30, 2017 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 90,000 | ||||||||||||||||||||
Issuance of shares of common stock (in shares) | 52,284 | ||||||||||||||||||||
President And Chief Executive Officer | Cor Advisors Llc | Exercisable on December 31, 2017 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 8.49 | ||||||||||||||||||||
Number of warrants exercised (in shares) | 130,000 | 130,000 | |||||||||||||||||||
Issuance of shares of common stock (in shares) | 77,413 | ||||||||||||||||||||
President And Chief Executive Officer | Cor Advisors Llc | Exercisable on March 31, 2018 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 8.44 | ||||||||||||||||||||
Number of warrants exercised (in shares) | 130,000 | 130,000 | |||||||||||||||||||
Issuance of shares of common stock (in shares) | 72,159 | ||||||||||||||||||||
President And Chief Executive Officer | Cor Advisors Llc | Exercisable on June 30, 2018 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 8.38 | ||||||||||||||||||||
Number of warrants exercised (in shares) | 130,000 | 130,000 | |||||||||||||||||||
Issuance of shares of common stock (in shares) | 73,543 | ||||||||||||||||||||
President And Chief Executive Officer | Cor Advisors Llc | Tranche One | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 50,000 | ||||||||||||||||||||
Vice President and Chief Lending Officer | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 8.80 | $ 8.84 | $ 8.90 | $ 9.04 | |||||||||||||||||
Vice President and Chief Lending Officer | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 0 | 435,000 | |||||||||||||||||||
Number of warrants exercised (in shares) | 80,000 | 130,000 | 130,000 | 95,000 | |||||||||||||||||
Issuance of shares of common stock (in shares) | 40,081 | 70,775 | 53,711 | 37,355 | |||||||||||||||||
Vice President and Chief Lending Officer | Cor Advisors Llc | Tranche One | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 95,000 | ||||||||||||||||||||
Vice President and Chief Lending Officer | Cor Advisors Llc | Tranche Two | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Vice President and Chief Lending Officer | Cor Advisors Llc | Tranche Four | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 80,000 | ||||||||||||||||||||
Tcw Shared Opportunity Fund | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrant exercisable period | 5 years | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 480,000 | ||||||||||||||||||||
Exercise price of warrants for non-voting common stock (in dollars per share) | $ 8.72 | $ 8.55 | $ 8.61 | $ 8.66 | $ 8.80 | ||||||||||||||||
Number of warrants exercised (in shares) | 40,000 | 130,000 | 130,000 | 130,000 | 50,000 | ||||||||||||||||
Brother of President and Chief Executive Officer | Cor Advisors Llc | Exercisable on September 30, 2016 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 50,000 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Cor Advisors Llc | Exercisable on December 31, 2016 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Cor Advisors Llc | Exercisable on March 31, 2017 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Cor Advisors Llc | Exercisable on June 30, 2017 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 130,000 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Cor Advisors Llc | Exercisable on September 30, 2017 | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Warrants issued (in shares) | 40,000 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Class A Common Stock | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Issuance of stock shares (in shares) | 176,488 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Class B Common Stock | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Shares canceled (shares) | 176,488 | ||||||||||||||||||||
Brother of President and Chief Executive Officer | Common Stock | Class A Common Stock | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Issuance of shares of common stock (in shares) | 64,962 | 25,051 | |||||||||||||||||||
Brother of President and Chief Executive Officer | Common Stock | Class B Common Stock | Cor Advisors Llc | |||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||
Issuance of shares of common stock (in shares) | 23,237 | 77,376 | 75,875 |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 23, 2019 | Sep. 17, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Series D 7.375% non-cumulative perpetual | ||||
Class of Stock [Line Items] | ||||
Depository shares to preferred stock ratio | 2.50% | |||
Series E 7.00% non-cumulative perpetual | ||||
Class of Stock [Line Items] | ||||
Depository shares to preferred stock ratio | 2.50% | |||
Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, authorized (in shares) | 197,106 | 240,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | |||
Preferred stock, liquidation preference per share (in dollars per share) | $ 1,000 | |||
Aggregate amount of redemption | $ 40.3 | |||
Preferred Stock | Series D Depository shares | ||||
Class of Stock [Line Items] | ||||
Outstanding shares redeemed (shares) | 734,823 | |||
Redemption price ( in dollars per share) | $ 1,000 | |||
Aggregate amount of redemption | $ 19.4 | |||
Preferred Stock | Series D 7.375% non-cumulative perpetual | ||||
Class of Stock [Line Items] | ||||
Preferred stock, authorized (in shares) | 96,629 | |||
Outstanding shares redeemed (shares) | 18,371 | |||
Stock issuance cost | $ 1.7 | |||
Non cumulative preferred stock, dividend rate (percent) | 7.375% | 7.375% | ||
Preferred Stock | Series E Depository shares | ||||
Class of Stock [Line Items] | ||||
Outstanding shares redeemed (shares) | 980,928 | |||
Redemption price ( in dollars per share) | $ 1,000 | |||
Aggregate amount of redemption | $ 26.6 | |||
Preferred Stock | Series E 7.00% non-cumulative perpetual | ||||
Class of Stock [Line Items] | ||||
Preferred stock, authorized (in shares) | 100,477 | |||
Outstanding shares redeemed (shares) | 24,523 | |||
Stock issuance cost | $ 3.4 | |||
Non cumulative preferred stock, dividend rate (percent) | 7.00% | 7.00% | ||
Preferred Stock | Series C Depository shares | ||||
Class of Stock [Line Items] | ||||
Outstanding shares redeemed (shares) | 1,610,000 | |||
Redemption price ( in dollars per share) | $ 25 | |||
Stock issuance cost | $ 2.3 | |||
Preferred Stock | Series C 8.00% non-cumulative perpetual | ||||
Class of Stock [Line Items] | ||||
Outstanding shares redeemed (shares) | 40,250 | |||
Redemption price ( in dollars per share) | $ 1,000 | |||
Non cumulative preferred stock, dividend rate (percent) | 8.00% | |||
Maximum | Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, authorized (in shares) | 50,000,000 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Preferred Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | ||
Carrying Value | $ 189,825 | $ 231,128 |
Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, authorized (in shares) | 197,106 | 240,000 |
Preferred stock, shares outstanding (in shares) | 197,106 | 240,000 |
Liquidation Preference | $ 197,106 | $ 240,000 |
Carrying Value | $ 189,825 | $ 231,128 |
Preferred Stock | Series D 7.375% non-cumulative perpetual | ||
Class of Stock [Line Items] | ||
Non cumulative preferred stock, dividend rate (percent) | 7.375% | 7.375% |
Preferred stock, authorized (in shares) | 96,629 | |
Preferred stock, shares outstanding (in shares) | 96,629 | 115,000 |
Liquidation Preference | $ 96,629 | $ 115,000 |
Carrying Value | $ 93,162 | $ 110,873 |
Preferred Stock | Series E 7.00% non-cumulative perpetual | ||
Class of Stock [Line Items] | ||
Non cumulative preferred stock, dividend rate (percent) | 7.00% | 7.00% |
Preferred stock, authorized (in shares) | 100,477 | |
Preferred stock, shares outstanding (in shares) | 100,477 | 125,000 |
Liquidation Preference | $ 100,477 | $ 125,000 |
Carrying Value | $ 96,663 | $ 120,255 |
STOCKHOLDERS' EQUITY - Stock Em
STOCKHOLDERS' EQUITY - Stock Employee Compensation Trust (Details) - Variable Interest Entity, Primary Beneficiary - Common Stock - USD ($) $ / shares in Units, $ in Millions | Dec. 28, 2017 | Aug. 03, 2016 |
Class of Stock [Line Items] | ||
Shares sold during the period (in shares) | 2,500,000 | |
Price per share sold to trust (in usd per share) | $ 21.45 | |
Proceeds from sale of equity | $ 53.6 | |
Number of shares repurchased (in shares) | 2,500,000 | |
Share price of share repurchased (in dollars per share) | $ 21 | |
Value of shares repurchased | $ 52.5 | |
Proceeds used for funding benefit plan obligations | $ 2.7 | |
Voting common stock allocated to funding benefit plan obligations (in shares) | 126,517 | |
Portion of termination proceeds used to satisfy and terminate promissory note obligations | $ 49.8 | |
Outstanding principal balance including accrued interest | $ 50.9 |
STOCKHOLDERS' EQUITY - Changes
STOCKHOLDERS' EQUITY - Changes to Accumulate Other Comprehensive Income by Components (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale | $ 22,000 | |||
Unrealized (loss) gain on securities available-for -sale | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ (24,117) | $ 5,227 | $ (9,042) | |
Unrealized (loss) gain arising during the period | 11,734 | (40,476) | 16,334 | |
Unrealized gain arising from the reclassification of securities held-to-maturity to securities available-for-sale | 0 | 0 | 21,990 | |
Reclassification adjustment from other comprehensive income | 4,852 | (5,532) | (14,768) | |
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 731 | 3,252 | 0 | |
Tax effect of current period changes | (5,100) | 12,916 | (9,287) | |
Total changes, net of taxes | 12,217 | (29,840) | 14,269 | |
Reclassification of stranded tax effects to retained earnings | 0 | 496 | 0 | |
Balance at end of period | $ (11,900) | $ (24,117) | $ 5,227 |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banc of California, NA | ||
Total risk-based capital | ||
Total risk-based capital ratio, actual amount | $ 1,007,762 | $ 1,120,122 |
Total risk-based capital ratio, actual ratio (percent) | 17.46% | 15.71% |
Total risk-based capital ratio, minimum capital requirements amount | $ 461,843 | $ 570,382 |
Total risk-based capital ratio, minimum capital requirements ratio (percent) | 8.00% | 8.00% |
Total risk-based capital ratio, minimum required to be well capitalized under prompt corrective action provisions amount | $ 577,304 | $ 712,977 |
Total risk-based capital ratio, minimum required to be well capitalized under prompt corrective action provisions ratio (percent) | 10.00% | 10.00% |
Tier 1 risk-based capital | ||
Tier 1 risk-based capital ratio, actual amount | $ 946,049 | $ 1,053,308 |
Tier 1 risk-based capital ratio, actual ratio (percent) | 16.39% | 14.77% |
Tier 1 risk-based capital ratio, minimum capital requirements amount | $ 346,382 | $ 427,786 |
Tier 1 risk-based capital ratio, minimum capital requirements ratio (percent) | 6.00% | 6.00% |
Tier 1 risk-based capital ratio, minimum required to be well capitalized under prompt corrective action provisions amount | $ 461,843 | $ 570,382 |
Tier 1 risk-based capital ratio, minimum required to be well capitalized under prompt corrective action provisions ratio (percent) | 8.00% | 8.00% |
Common equity tier 1 capital | ||
Common equity tier 1 capital ratio, actual amount | $ 946,049 | $ 1,053,308 |
Common equity tier 1 capital ratio, actual ratio (percent) | 16.39% | 14.77% |
Common equity tier 1 capital ratio, minimum capital requirements amount | $ 259,787 | $ 320,840 |
Common equity tier 1 capital ratio, minimum capital requirements ratio (percent) | 4.50% | 4.50% |
Common equity tier 1 capital ratio, minimum required to be well capitalized under prompt corrective action provisions amount | $ 375,247 | $ 463,435 |
Common equity tier 1 capital ratio, minimum required to be well capitalized under prompt corrective action provisions ratio (percent) | 6.50% | 6.50% |
Tier 1 leverage | ||
Tier 1 leverage ratio, actual amount | $ 946,049 | $ 1,053,308 |
Tier 1 leverage ratio, actual ratio (percent) | 12.02% | 10.36% |
Tier 1 leverage ratio, minimum capital requirements amount | $ 314,707 | $ 406,694 |
Tier 1 leverage ratio, minimum capital requirements ratio (percent) | 4.00% | 4.00% |
Tier 1 leverage ratio, minimum required to be well capitalized under prompt corrective action provisions amount | $ 393,383 | $ 508,368 |
Tier 1 leverage ratio, minimum required to be well capitalized under prompt corrective action provisions ratio (percent) | 5.00% | 5.00% |
Banc of California, Inc. | ||
Total risk-based capital | ||
Total risk-based capital ratio, actual amount | $ 921,892 | $ 977,342 |
Total risk-based capital ratio, actual ratio (percent) | 15.90% | 13.71% |
Total risk-based capital ratio, minimum capital requirements amount | $ 463,950 | $ 570,368 |
Total risk-based capital ratio, minimum capital requirements ratio (percent) | 8.00% | 8.00% |
Tier 1 risk-based capital | ||
Tier 1 risk-based capital ratio, actual amount | $ 860,179 | $ 910,528 |
Tier 1 risk-based capital ratio, actual ratio (percent) | 14.83% | 12.77% |
Tier 1 risk-based capital ratio, minimum capital requirements amount | $ 347,963 | $ 427,776 |
Tier 1 risk-based capital ratio, minimum capital requirements ratio (percent) | 6.00% | 6.00% |
Common equity tier 1 capital | ||
Common equity tier 1 capital ratio, actual amount | $ 670,355 | $ 679,400 |
Common equity tier 1 capital ratio, actual ratio (percent) | 11.56% | 9.53% |
Common equity tier 1 capital ratio, minimum capital requirements amount | $ 260,972 | $ 320,832 |
Common equity tier 1 capital ratio, minimum capital requirements ratio (percent) | 4.50% | 4.50% |
Tier 1 leverage | ||
Tier 1 leverage ratio, actual amount | $ 860,179 | $ 910,528 |
Tier 1 leverage ratio, actual ratio (percent) | 10.89% | 8.95% |
Tier 1 leverage ratio, minimum capital requirements amount | $ 315,825 | $ 407,145 |
Tier 1 leverage ratio, minimum capital requirements ratio (percent) | 4.00% | 4.00% |
REGULATORY CAPITAL MATTERS - Ad
REGULATORY CAPITAL MATTERS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 23, 2019 | Sep. 17, 2018 | Apr. 30, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Common stock dividends declared and paid (in usd per share), Dividends, Per Share, Cash Paid | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.13 | ||||||
Quarterly dividend (in usd per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.13 | $ 0.31 | $ 0.52 | $ 0.52 | ||
Preferred Stock | ||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Aggregate amount of redemption | $ 40.3 | |||||||||
Preferred Stock | Series D Depository shares | ||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Aggregate amount of redemption | $ 19.4 | |||||||||
Preferred Stock | Series E Depository shares | ||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Aggregate amount of redemption | 26.6 | |||||||||
The Bank | ||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||||||
Payments of Dividends | $ 88.5 | $ 142.5 |
VARIABLE INTEREST ENTITIES - Su
VARIABLE INTEREST ENTITIES - Summary of Unconsolidated VIEs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | |
Variable Interest Entity [Line Items] | |||||
Loss on investments in alternative energy partnerships, net | $ 5,214 | $ 5,044 | $ 30,786 | ||
Aggregate funding commitment | 4,000 | 100,000 | $ 100,000 | ||
Total amount funded | 806 | 62,800 | 49,900 | ||
Amount of funding canceled | 37,200 | 50,100 | |||
Amounts not used and therefore returned | $ 1,000 | ||||
Investment tax credit | 3,400 | 9,600 | 38,200 | ||
Payments of capital lease obligations | 14,800 | 6,361 | 35,826 | ||
Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Multifamily loans transferred | 806 | 0 | 55,400 | ||
Maximum loss exposure | 32,525 | 28,988 | |||
Loss on investments in alternative energy partnerships, net | 1,700 | 5,000 | 30,800 | ||
Total unconsolidated assets | 259,445 | 266,946 | |||
Investment tax credit | 3,400 | 9,600 | 38,200 | ||
Variable Interest Entity, Not Primary Beneficiary | Other Assets | |||||
Variable Interest Entity [Line Items] | |||||
Total unconsolidated assets | $ 29,300 | 29,000 | |||
Multifamily | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Multifamily loans transferred | $ 573,500 | ||||
Guaranteed credit losses (maximum) | 12.00% | ||||
Maximum loss exposure | $ 68,800 | ||||
Repurchase liability recognized | 4,400 | ||||
Affordable Housing Fund Investment | |||||
Variable Interest Entity [Line Items] | |||||
Aggregate funding commitment | 49,300 | ||||
Total amount funded | 26,900 | ||||
Payments of capital lease obligations | 9,100 | 4,100 | 4,500 | ||
Investment amortization | 3,500 | 2,000 | 1,400 | ||
Unfunded commitments | 22,400 | ||||
Affordable Housing Fund Investment | Variable Interest Entity, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Maximum loss exposure | 36,500 | 20,000 | |||
Investment tax credit | $ 2,400 | $ 1,900 | $ 849 |
VARIABLE INTEREST ENTITIES - _2
VARIABLE INTEREST ENTITIES - Summary of the Carrying Value of the Assets and Liabilities and Maximum Loss Exposure for the Alternative Energy Partnerships (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Cash | $ 4,224 | $ 3,012 |
Equipment, net of depreciation | 248,920 | 259,464 |
Other assets | 6,301 | 4,470 |
Total unconsolidated assets | 259,445 | 266,946 |
Total unconsolidated liabilities | 7,143 | 6,269 |
Maximum loss exposure | $ 32,525 | $ 28,988 |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computations for Basic and Diluted Earnings/(Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Earnings Per Share [Line Items] | |||||||||||
Income from continuing operations | $ 10,791 | $ 10,428 | $ 13,854 | $ 7,074 | $ 23,759 | $ 42,147 | $ 53,474 | ||||
Less: income allocated to participating securities | $ (224) | $ 0 | $ (271) | $ 0 | (203) | (202) | (203) | (203) | 0 | 0 | (311) |
Less: participating securities dividends | (93) | (94) | (94) | (202) | 0 | 0 | (86) | 0 | (483) | (811) | (811) |
Less: preferred stock dividends | (3,540) | (3,403) | (4,308) | (4,308) | (4,308) | (4,970) | (5,113) | (5,113) | (15,559) | (19,504) | (20,451) |
Less: impact of preferred stock redemption | 0 | (5,093) | 0 | 0 | 0 | (2,307) | 0 | 0 | (5,093) | (2,307) | 0 |
Income from continuing operations allocated to common stockholders | 2,624 | 19,525 | 31,901 | ||||||||
Income (loss) from discontinued operations | 247 | 668 | 926 | 1,484 | 0 | 3,325 | 4,235 | ||||
Net income allocated to common stockholders | $ 10,415 | $ (22,722) | $ 11,909 | $ 2,527 | $ 6,527 | $ 3,617 | $ 9,378 | $ 3,242 | $ 2,624 | $ 22,850 | $ 36,136 |
Weighted-average common shares outstanding (shares) | 50,621,785 | 50,623,222 | 50,254,595 | ||||||||
Add: Dilutive effects of warrants (shares) | 0 | 53,692 | 332,806 | ||||||||
Average shares and dilutive common shares (shares) | 50,724,951 | 50,851,594 | 50,819,790 | ||||||||
Basic earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.38 | $ 0.64 | ||||||||
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 | ||||||||
Net income (in dollars per share) | 0.05 | 0.45 | 0.72 | ||||||||
Diluted earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.05 | 0.38 | 0.63 | ||||||||
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 | ||||||||
Net income (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.71 | ||||||||
Class A Common Stock | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Income from continuing operations | $ 23,535 | $ 41,732 | $ 53,136 | ||||||||
Less: income allocated to participating securities | 0 | 0 | (309) | ||||||||
Less: participating securities dividends | (478) | (803) | (806) | ||||||||
Less: preferred stock dividends | (15,412) | (19,312) | (20,322) | ||||||||
Less: impact of preferred stock redemption | (5,045) | (2,284) | 0 | ||||||||
Income from continuing operations allocated to common stockholders | 2,600 | 19,333 | 31,699 | ||||||||
Income (loss) from discontinued operations | 0 | 3,292 | 4,208 | ||||||||
Net income allocated to common stockholders | $ 2,600 | $ 22,625 | $ 35,907 | ||||||||
Weighted-average common shares outstanding (shares) | 50,144,464 | 50,125,132 | 49,936,627 | ||||||||
Add: Dilutive effects of warrants (shares) | 0 | 53,692 | 332,806 | ||||||||
Average shares and dilutive common shares (shares) | 50,247,630 | 50,353,504 | 50,501,822 | ||||||||
Basic earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | $ 0.12 | $ 0.06 | $ 0.17 | $ 0.03 | $ 0.05 | $ 0.38 | $ 0.64 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | $ 0.21 | $ (0.45) | $ 0.23 | $ 0.05 | 0.13 | 0.07 | 0.19 | 0.06 | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.12 | 0.06 | 0.16 | 0.03 | 0.05 | 0.38 | 0.63 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | 0.20 | (0.45) | 0.23 | 0.05 | 0.13 | 0.07 | 0.18 | 0.06 | $ 0.05 | $ 0.45 | $ 0.71 |
Class B Common Stock | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Income from continuing operations | $ 224 | $ 415 | $ 338 | ||||||||
Less: income allocated to participating securities | 0 | 0 | (2) | ||||||||
Less: participating securities dividends | (5) | (8) | (5) | ||||||||
Less: preferred stock dividends | (147) | (192) | (129) | ||||||||
Less: impact of preferred stock redemption | (48) | (23) | 0 | ||||||||
Income from continuing operations allocated to common stockholders | 24 | 192 | 202 | ||||||||
Income (loss) from discontinued operations | 0 | 33 | 27 | ||||||||
Net income allocated to common stockholders | $ 24 | $ 225 | $ 229 | ||||||||
Weighted-average common shares outstanding (shares) | 477,321 | 498,090 | 317,968 | ||||||||
Add: Dilutive effects of warrants (shares) | 0 | 0 | 0 | ||||||||
Average shares and dilutive common shares (shares) | 477,321 | 498,090 | 317,968 | ||||||||
Basic earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.12 | 0.06 | 0.17 | 0.03 | $ 0.05 | $ 0.38 | $ 0.64 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | 0.21 | (0.45) | 0.23 | 0.05 | 0.13 | 0.07 | 0.19 | 0.06 | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.12 | 0.06 | 0.17 | 0.03 | 0.05 | 0.38 | 0.64 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | $ 0.21 | $ (0.45) | $ 0.23 | $ 0.05 | $ 0.13 | $ 0.07 | $ 0.19 | $ 0.06 | $ 0.05 | $ 0.45 | $ 0.72 |
Restricted Stock Units | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Add: Dilutive effects of restricted stock units and stock options (shares) | 97,842 | 135,644 | 72,655 | ||||||||
Restricted Stock Units | Class A Common Stock | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Add: Dilutive effects of restricted stock units and stock options (shares) | 97,842 | 135,644 | 72,655 | ||||||||
Restricted Stock Units | Class B Common Stock | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Add: Dilutive effects of restricted stock units and stock options (shares) | 0 | 0 | 0 | ||||||||
Stock Option | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Add: Dilutive effects of restricted stock units and stock options (shares) | 5,324 | 39,036 | 159,734 | ||||||||
Stock Option | Class A Common Stock | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Add: Dilutive effects of restricted stock units and stock options (shares) | 5,324 | 39,036 | 159,734 | ||||||||
Stock Option | Class B Common Stock | |||||||||||
Schedule of Earnings Per Share [Line Items] | |||||||||||
Add: Dilutive effects of restricted stock units and stock options (shares) | 0 | 0 | 0 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock excluded from computation of earnings per share | 710,082 | 0 | 145,349 |
Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock excluded from computation of earnings per share | 16,165 | 267,834 | 59,178 |
LOAN COMMITMENTS AND OTHER RE_3
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES - Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments to extend credit | ||
Other Commitments [Line Items] | ||
Fixed Rate | $ 473 | $ 2,167 |
Variable Rate | 129,495 | 288,770 |
Unused lines of credit | ||
Other Commitments [Line Items] | ||
Fixed Rate | 703 | 1,514 |
Variable Rate | 1,049,632 | 1,119,158 |
Letters of credit | ||
Other Commitments [Line Items] | ||
Fixed Rate | 134 | 1,266 |
Variable Rate | $ 5,316 | $ 8,561 |
LOAN COMMITMENTS AND OTHER RE_4
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 33 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Other Commitments [Line Items] | ||||
Commitments to make loans period, maximum | 30 days | |||
Los Angeles Football Club (LAFC) Naming Rights, Revenue Rights, And Other Sponsorship Rights | ||||
Other Commitments [Line Items] | ||||
Maximum commitment | $ 100,000,000 | |||
Related party term of contract | 15 years | |||
Advertising and promotion expense | $ 6,700,000 | $ 6,700,000 | ||
Payments for naming rights | $ 20,800,000 | |||
Prepaid recognized as prepaid asset | 7,400,000 | 7,400,000 | ||
Affordable Housing Fund Investment | ||||
Other Commitments [Line Items] | ||||
Unfunded commitments | 22,400,000 | 22,400,000 | ||
Small Business Investment Companies | ||||
Other Commitments [Line Items] | ||||
Unfunded commitments | 7,600,000 | 7,600,000 | ||
Other Alternative Investments | ||||
Other Commitments [Line Items] | ||||
Unfunded commitments | 501,000 | 501,000 | ||
Banc home loans | Discontinued Operations | Commitments to extend credit | ||||
Other Commitments [Line Items] | ||||
Commitments to extend credit | $ 0 | $ 0 | $ 0 |
RESTRUCTURING - Additional Info
RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands | Jun. 28, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Restructuring and Related Activities [Abstract] | |||||
Restructuring charges recognized | $ 4,263 | $ 4,431 | $ 9,120 | ||
Reduction in workforce (percent) | 9.00% | ||||
Unpaid accrued liabilities | $ 1,204 | $ 117 | $ 202 | $ 0 |
RESTRUCTURING - Restructuring R
RESTRUCTURING - Restructuring Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | $ 117 | $ 202 | $ 0 |
Accrual: | |||
Continuing Operations | 4,263 | 4,431 | 5,326 |
Discontinued Operations | 0 | 0 | 3,794 |
Total | 4,263 | 4,431 | 9,120 |
Payments | (3,176) | (4,516) | (8,918) |
Balance at end of period | 1,204 | 117 | 202 |
Severance and other employee related costs | |||
Accrual: | |||
Continuing Operations | 4,263 | 4,431 | 5,326 |
Discontinued Operations | 0 | 0 | 2,899 |
Total | 4,263 | 4,431 | 8,225 |
Payments | (3,176) | (4,516) | (8,023) |
Other restructuring expense | |||
Accrual: | |||
Continuing Operations | 0 | 0 | 0 |
Discontinued Operations | 0 | 0 | 895 |
Total | 0 | 0 | 895 |
Payments | $ 0 | $ 0 | $ (895) |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Noninterest Income (in-scope of Topic 606) | $ 3,972 | $ 5,604 | $ 6,569 | ||||||||
Noninterest Income (out-of-scope of Topic 606) | 8,144 | 18,311 | 38,101 | ||||||||
Total noninterest income | $ 4,930 | $ 3,181 | $ (2,290) | $ 6,295 | $ 2,448 | $ 4,824 | $ 8,061 | $ 8,582 | 12,116 | 23,915 | 44,670 |
Deposit Service Fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Noninterest Income (in-scope of Topic 606) | 2,414 | 3,000 | 2,947 | ||||||||
Debit Card Fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Noninterest Income (in-scope of Topic 606) | 533 | 659 | 1,698 | ||||||||
Investment Commissions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Noninterest Income (in-scope of Topic 606) | 685 | 1,625 | 1,893 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Noninterest Income (in-scope of Topic 606) | $ 340 | $ 320 | $ 31 |
PARENT COMPANY FINANCIAL STAT_3
PARENT COMPANY FINANCIAL STATEMENTS - Condensed Statements of Financial Conditions (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 373,472 | $ 391,592 | ||
Other assets | 185,946 | 150,596 | ||
Total Assets | 7,828,410 | 10,630,067 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Accrued expenses and other liabilities | 95,684 | 72,209 | ||
Stockholders’ equity | 907,245 | 945,534 | $ 1,012,308 | $ 980,239 |
Total liabilities and stockholders’ equity | 7,828,410 | 10,630,067 | ||
Banc of California, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 73,971 | 25,256 | ||
Other assets | 42,243 | 13,746 | ||
Investment in subsidiaries | 994,600 | 1,088,658 | ||
Total Assets | 1,110,814 | 1,127,660 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Notes payable, net | 173,421 | 173,174 | ||
Accrued expenses and other liabilities | 30,148 | 8,952 | ||
Stockholders’ equity | 907,245 | 945,534 | ||
Total liabilities and stockholders’ equity | $ 1,110,814 | $ 1,127,660 |
PARENT COMPANY FINANCIAL STAT_4
PARENT COMPANY FINANCIAL STATEMENTS - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||||||||||
Total interest and dividend income | $ 83,702 | $ 92,657 | $ 104,040 | $ 110,712 | $ 111,130 | $ 107,774 | $ 105,185 | $ 98,707 | $ 391,111 | $ 422,796 | $ 389,190 |
Expenses | |||||||||||
Interest expense for notes payable and other borrowings | 9,502 | 9,456 | 10,755 | ||||||||
Provision for loan losses | (2,678) | 38,540 | (1,987) | 2,512 | 6,653 | 1,410 | 2,653 | 19,499 | 36,387 | 30,215 | 13,699 |
Loss on investments in alternative energy partnerships, net | 5,214 | 5,044 | 30,786 | ||||||||
Income tax expense (benefit) | 2,811 | (5,619) | 4,308 | 2,719 | 6,117 | 3,301 | 1,779 | (6,353) | 4,219 | 4,844 | (26,581) |
Net income | $ 14,272 | $ (14,132) | $ 16,582 | $ 7,037 | $ 11,038 | $ 11,096 | $ 14,780 | $ 8,558 | 23,759 | 45,472 | 57,709 |
Banc of California, Inc. | |||||||||||
Income | |||||||||||
Dividends from subsidiaries | 142,467 | 94,250 | 18,000 | ||||||||
Other operating income | 62 | 76 | 2,285 | ||||||||
Total interest and dividend income | 142,529 | 94,326 | 20,285 | ||||||||
Expenses | |||||||||||
Interest expense for notes payable and other borrowings | 9,480 | 9,421 | 10,764 | ||||||||
Provision for loan losses | 0 | 0 | 13 | ||||||||
Loss on investments in alternative energy partnerships, net | 0 | 0 | 8,493 | ||||||||
Other operating expense | 3,311 | 19,507 | 37,201 | ||||||||
Total expenses | 12,791 | 28,928 | 56,471 | ||||||||
Income (loss) before income taxes and (excess dividends) retained equity in undistributed earnings of subsidiaries | 129,738 | 65,398 | (36,186) | ||||||||
Income tax expense (benefit) | (3,670) | (9,017) | (31,453) | ||||||||
Income (loss) before (excess dividends) retained equity in undistributed earnings of subsidiaries | 133,408 | 74,415 | (4,733) | ||||||||
(Excess dividends) retained equity in undistributed earnings of subsidiaries | (109,649) | (28,943) | 62,442 | ||||||||
Net income | $ 23,759 | $ 45,472 | $ 57,709 |
PARENT COMPANY FINANCIAL STAT_5
PARENT COMPANY FINANCIAL STATEMENTS - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 14,272 | $ (14,132) | $ 16,582 | $ 7,037 | $ 11,038 | $ 11,096 | $ 14,780 | $ 8,558 | $ 23,759 | $ 45,472 | $ 57,709 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Amortization of debt issuance cost | 247 | 233 | 247 | ||||||||
Deferred income tax benefit | (622) | (5,911) | (30,372) | ||||||||
Loss on investments in alternative energy partnerships, net | 5,214 | 5,044 | 30,786 | ||||||||
Net cash provided by operating activities | 80,255 | 123,003 | 563,011 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash provided by (used in) investing activities | 2,795,307 | (469,746) | 151,858 | ||||||||
Cash flows from financing activities: | |||||||||||
Redemption of preferred stock | (46,396) | (40,250) | 0 | ||||||||
Payment of junior subordinated amortizing notes | 0 | 0 | (2,684) | ||||||||
Proceeds from exercise of stock options | 0 | 0 | 2,043 | ||||||||
Restricted stock surrendered due to employee tax liability | (1,023) | (2,366) | (6,824) | ||||||||
Dividend equivalents paid on stock appreciation rights | (483) | (810) | (810) | ||||||||
Dividends paid on common stock | (15,744) | (32,725) | (25,707) | ||||||||
Dividends paid on preferred stock | (15,559) | (21,954) | (20,451) | ||||||||
Net cash (used in) provided by financing activities | (2,893,682) | 350,636 | (766,680) | ||||||||
Net change in cash and cash equivalents | (18,120) | 3,893 | (51,811) | ||||||||
Cash and cash equivalents at beginning of year | 391,592 | 387,699 | 391,592 | 387,699 | 439,510 | ||||||
Cash and cash equivalents at end of year | 373,472 | 391,592 | 373,472 | 391,592 | 387,699 | ||||||
Reclassification of stranded tax effects to retained earnings | 0 | 496 | 0 | ||||||||
Banc of California, Inc. | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 23,759 | 45,472 | 57,709 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
(Excess dividends) retained equity in undistributed earnings of subsidiaries | 109,649 | 28,943 | (62,442) | ||||||||
Stock-based compensation expense | 1,446 | 2,814 | 2,520 | ||||||||
Amortization of debt issuance cost | 247 | 233 | 247 | ||||||||
Deferred income tax benefit | (86) | (30,188) | 14,604 | ||||||||
Loss on investments in alternative energy partnerships, net | 0 | 0 | 8,493 | ||||||||
Net change in other assets and liabilities | (2,095) | 35,591 | (12,957) | ||||||||
Net cash provided by operating activities | 132,920 | 82,865 | 8,174 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of investments | (5,000) | 0 | 0 | ||||||||
Investments in alternative energy partnerships | 0 | 0 | (3,712) | ||||||||
Net cash provided by (used in) investing activities | (5,000) | 0 | (3,712) | ||||||||
Cash flows from financing activities: | |||||||||||
Net (decrease) increase in other borrowings | 0 | 0 | (68,000) | ||||||||
Redemption of preferred stock | (46,396) | (40,250) | 0 | ||||||||
Payment of junior subordinated amortizing notes | 0 | 0 | (2,684) | ||||||||
Proceeds from exercise of stock options | 0 | 0 | 2,043 | ||||||||
Restricted stock surrendered due to employee tax liability | (1,023) | (2,366) | (6,824) | ||||||||
Dividend equivalents paid on stock appreciation rights | (483) | (810) | (810) | ||||||||
Dividends paid on common stock | (15,744) | (32,725) | (25,707) | ||||||||
Dividends paid on preferred stock | (15,559) | (21,954) | (20,451) | ||||||||
Net cash (used in) provided by financing activities | (79,205) | (98,105) | (122,433) | ||||||||
Net change in cash and cash equivalents | 48,715 | (15,240) | (117,971) | ||||||||
Cash and cash equivalents at beginning of year | $ 25,256 | $ 40,496 | 25,256 | 40,496 | 158,467 | ||||||
Cash and cash equivalents at end of year | $ 73,971 | $ 25,256 | 73,971 | 25,256 | 40,496 | ||||||
Reclassification of stranded tax effects to retained earnings | $ 0 | $ 496 | $ 0 |
RELATED-PARTY TRANSACTIONS - Re
RELATED-PARTY TRANSACTIONS - Related Party Transactions (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Officers and Directors | ||
Related Party Transaction [Line Items] | ||
Deposits from principal officers, directors, and their related interests | $ 11.6 | $ 11.1 |
RELATED-PARTY TRANSACTIONS - Cu
RELATED-PARTY TRANSACTIONS - Current Related Party Indemnification Costs (Details) - Special Committee Investigation - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Emeritus John Grosvenor | Former General Counsel | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 879 | $ 415 | $ 501 |
Steven A. Sugarman | Former President And Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | 11,900 | 8,500 | 3,000 |
Francisco A. Turner and James J. McKinney | Former Interim Chief Financial Officer And Chief Strategy Officer And Former Chief Financial Officer | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | 795 | 400 | 631 |
Cynthia Abercrombie | Former Bank Director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 180 | 292 | |
Jonah F. Schnel | Director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | 854 | ||
Robert Sznewajs | Director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | 854 | ||
Jeffrey T. Seabold | Former Management Vice Chair | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | 497 | 1,400 | |
Halle J. Benett | Former Director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | 854 | ||
Jeffrey Karish | Director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 854 | ||
Chad Brownstein | Former Director | |||
Related Party Transaction [Line Items] | |||
Expenses from transactions with related parties | $ 509 |
LITIGATION (Details)
LITIGATION (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 28, 2019 |
Loss Contingencies [Line Items] | ||
Accrued litigation expense | $ 20,200 | |
In re Banc of California Securities Litigation, Case No. SACV 17-00118 AG [Member] | ||
Loss Contingencies [Line Items] | ||
Settlement accrual | $ 19,750 | |
Amounts to be paid by Company's insurance carriers | $ 19,750 |
QUARTERLY RESULTS OF OPERATIO_3
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) - Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | |||||||||||
Interest income | $ 83,702 | $ 92,657 | $ 104,040 | $ 110,712 | $ 111,130 | $ 107,774 | $ 105,185 | $ 98,707 | $ 391,111 | $ 422,796 | $ 389,190 |
Interest expense | 27,042 | 33,742 | 39,260 | 42,904 | 40,448 | 36,582 | 32,421 | 27,269 | 142,948 | 136,720 | 85,000 |
Net interest income | 56,660 | 58,915 | 64,780 | 67,808 | 70,682 | 71,192 | 72,764 | 71,438 | 248,163 | 286,076 | 304,190 |
Provision for (reversal of) loan losses | (2,678) | 38,540 | (1,987) | 2,512 | 6,653 | 1,410 | 2,653 | 19,499 | 36,387 | 30,215 | 13,699 |
Noninterest income | 4,930 | 3,181 | (2,290) | 6,295 | 2,448 | 4,824 | 8,061 | 8,582 | 12,116 | 23,915 | 44,670 |
Noninterest expense | 47,185 | 43,307 | 43,587 | 61,835 | 49,569 | 60,877 | 62,539 | 59,800 | 195,914 | 232,785 | 308,268 |
Income from continuing operations before income taxes | 17,083 | (19,751) | 20,890 | 9,756 | 16,908 | 13,729 | 15,633 | 721 | 27,978 | 46,991 | 26,893 |
Income tax expense (benefit) | 2,811 | (5,619) | 4,308 | 2,719 | 6,117 | 3,301 | 1,779 | (6,353) | 4,219 | 4,844 | (26,581) |
Income from continuing operations | 10,791 | 10,428 | 13,854 | 7,074 | 23,759 | 42,147 | 53,474 | ||||
Income from discontinued operations before income taxes | 347 | 924 | 1,281 | 2,044 | 0 | 4,596 | 7,164 | ||||
Income tax expense | 100 | 256 | 355 | 560 | 0 | 1,271 | 2,929 | ||||
Income from discontinued operations | 247 | 668 | 926 | 1,484 | 0 | 3,325 | 4,235 | ||||
Net income | 14,272 | (14,132) | 16,582 | 7,037 | 11,038 | 11,096 | 14,780 | 8,558 | 23,759 | 45,472 | 57,709 |
Dividends on preferred stock | 3,540 | 3,403 | 4,308 | 4,308 | 4,308 | 4,970 | 5,113 | 5,113 | 15,559 | 19,504 | 20,451 |
Less: Income allocated to participating securities | 224 | 0 | 271 | 0 | 203 | 202 | 203 | 203 | 0 | 0 | 311 |
Less participating securities dividends | 93 | 94 | 94 | 202 | 0 | 0 | 86 | 0 | 483 | 811 | 811 |
Impact of preferred stock redemption | 0 | 5,093 | 0 | 0 | 0 | 2,307 | 0 | 0 | 5,093 | 2,307 | 0 |
Net income allocated to common stockholders | $ 10,415 | $ (22,722) | $ 11,909 | $ 2,527 | $ 6,527 | $ 3,617 | $ 9,378 | $ 3,242 | $ 2,624 | $ 22,850 | $ 36,136 |
Basic earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | $ 0.05 | $ 0.38 | $ 0.64 | ||||||||
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 | ||||||||
Net income (in dollars per share) | 0.05 | 0.45 | 0.72 | ||||||||
Diluted earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.05 | 0.38 | 0.63 | ||||||||
Income from discontinued operations (in dollars per share) | 0 | 0.07 | 0.08 | ||||||||
Net income (in dollars per share) | $ 0.05 | $ 0.45 | $ 0.71 | ||||||||
Class A Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Income from continuing operations | $ 23,535 | $ 41,732 | $ 53,136 | ||||||||
Income from discontinued operations | 0 | 3,292 | 4,208 | ||||||||
Dividends on preferred stock | 15,412 | 19,312 | 20,322 | ||||||||
Less: Income allocated to participating securities | 0 | 0 | 309 | ||||||||
Less participating securities dividends | 478 | 803 | 806 | ||||||||
Impact of preferred stock redemption | 5,045 | 2,284 | 0 | ||||||||
Net income allocated to common stockholders | $ 2,600 | $ 22,625 | $ 35,907 | ||||||||
Basic earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | $ 0.12 | $ 0.06 | $ 0.17 | $ 0.03 | $ 0.05 | $ 0.38 | $ 0.64 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | $ 0.21 | $ (0.45) | $ 0.23 | $ 0.05 | 0.13 | 0.07 | 0.19 | 0.06 | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.12 | 0.06 | 0.16 | 0.03 | 0.05 | 0.38 | 0.63 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | 0.20 | (0.45) | 0.23 | 0.05 | 0.13 | 0.07 | 0.18 | 0.06 | $ 0.05 | $ 0.45 | $ 0.71 |
Class B Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Income from continuing operations | $ 224 | $ 415 | $ 338 | ||||||||
Income from discontinued operations | 0 | 33 | 27 | ||||||||
Dividends on preferred stock | 147 | 192 | 129 | ||||||||
Less: Income allocated to participating securities | 0 | 0 | 2 | ||||||||
Less participating securities dividends | 5 | 8 | 5 | ||||||||
Impact of preferred stock redemption | 48 | 23 | 0 | ||||||||
Net income allocated to common stockholders | $ 24 | $ 225 | $ 229 | ||||||||
Basic earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.12 | 0.06 | 0.17 | 0.03 | $ 0.05 | $ 0.38 | $ 0.64 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | 0.21 | (0.45) | 0.23 | 0.05 | 0.13 | 0.07 | 0.19 | 0.06 | 0.05 | 0.45 | 0.72 |
Diluted earnings per common share | |||||||||||
Income from continuing operations (in dollars per share) | 0.12 | 0.06 | 0.17 | 0.03 | 0.05 | 0.38 | 0.64 | ||||
Income from discontinued operations (in dollars per share) | 0.01 | 0.01 | 0.02 | 0.03 | 0 | 0.07 | 0.08 | ||||
Net income (in dollars per share) | $ 0.21 | $ (0.45) | $ 0.23 | $ 0.05 | $ 0.13 | $ 0.07 | $ 0.19 | $ 0.06 | $ 0.05 | $ 0.45 | $ 0.72 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Feb. 10, 2020 | Apr. 30, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||||
Dividends declared, per common share (in usd per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.13 | $ 0.31 | $ 0.52 | $ 0.52 | |
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared, per common share (in usd per share) | $ 0.06 | ||||||||
Authorized amount under repurchase program | $ 45,000,000 |
Uncategorized Items - banc-1231
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,012,308,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (496,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 144,343,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (28,786,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 496,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 5,723,000 |
Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 269,071,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 621,435,000 |
Common Class B [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 5,000 |
Common Class A [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 517,000 |