ý | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
¨ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
Delaware | 75-2679109 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
2000 McKinney Avenue, Suite 700, Dallas, Texas, U.S.A. | 75201 | |
(Address of principal executive officers) | (Zip Code) |
Large Accelerated Filer | ý | Accelerated Filer | ¨ | ||||
Non-Accelerated Filer | ¨ | (Do not check if a smaller reporting company) | Smaller Reporting Company | ¨ | |||
Emerging Growth Company | ¨ |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
March 31, 2018 | December 31, 2017 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Cash and due from banks | $ | 154,497 | $ | 178,010 | |||
Interest-bearing deposits in other banks | 2,271,673 | 2,697,581 | |||||
Federal funds sold and securities purchased under resale agreements | 25,000 | 30,000 | |||||
Investment securities | 24,929 | 23,511 | |||||
Loans held for sale ($1,088.6 million and $1,007.7 million at March 31, 2018 and December 31, 2017, respectively, at fair value) | 1,088,565 | 1,011,004 | |||||
Loans held for investment, mortgage finance | 4,689,938 | 5,308,160 | |||||
Loans held for investment (net of unearned income) | 15,741,772 | 15,366,252 | |||||
Less: Allowance for loan losses | 190,898 | 184,655 | |||||
Loans held for investment, net | 20,240,812 | 20,489,757 | |||||
Mortgage servicing rights, net | 76,561 | 85,327 | |||||
Premises and equipment, net | 27,564 | 25,176 | |||||
Accrued interest receivable and other assets | 520,624 | 516,239 | |||||
Goodwill and intangible assets, net | 18,922 | 19,040 | |||||
Total assets | $ | 24,449,147 | $ | 25,075,645 | |||
Liabilities and Stockholders’ Equity | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Non-interest-bearing | $ | 7,413,340 | $ | 7,812,660 | |||
Interest-bearing | 11,351,193 | 11,310,520 | |||||
Total deposits | 18,764,533 | 19,123,180 | |||||
Accrued interest payable | 5,174 | 7,680 | |||||
Other liabilities | 175,569 | 182,212 | |||||
Federal funds purchased and repurchase agreements | 535,540 | 365,040 | |||||
Other borrowings | 2,300,000 | 2,800,000 | |||||
Subordinated notes, net | 281,496 | 281,406 | |||||
Trust preferred subordinated debentures | 113,406 | 113,406 | |||||
Total liabilities | 22,175,718 | 22,872,924 | |||||
Stockholders’ equity: | |||||||
Preferred stock, $.01 par value, $1,000 liquidation value: | |||||||
Authorized shares – 10,000,000 | |||||||
Issued shares – 6,000,000 shares issued at March 31, 2018 and December 31, 2017 | 150,000 | 150,000 | |||||
Common stock, $.01 par value: | |||||||
Authorized shares – 100,000,000 | |||||||
Issued shares – 49,670,191 and 49,643,761 at March 31, 2017 and December 31, 2017, respectively | 497 | 496 | |||||
Additional paid-in capital | 962,553 | 961,305 | |||||
Retained earnings | 1,159,925 | 1,090,500 | |||||
Treasury stock – shares at cost: 417 at March 31, 2018 and December 31, 2017 | (8 | ) | (8 | ) | |||
Accumulated other comprehensive income, net of taxes | 462 | 428 | |||||
Total stockholders’ equity | 2,273,429 | 2,202,721 | |||||
Total liabilities and stockholders’ equity | $ | 24,449,147 | $ | 25,075,645 |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Interest income | |||||||
Interest and fees on loans | $ | 243,864 | $ | 176,624 | |||
Investment securities | 206 | 225 | |||||
Federal funds sold and securities purchased under resale agreements | 1,045 | 530 | |||||
Interest-bearing deposits in other banks | 8,754 | 6,567 | |||||
Total interest income | 253,869 | 183,946 | |||||
Interest expense | |||||||
Deposits | 31,702 | 13,293 | |||||
Federal funds purchased | 969 | 252 | |||||
Other borrowings | 5,680 | 2,021 | |||||
Subordinated notes | 4,191 | 4,191 | |||||
Trust preferred subordinated debentures | 1,027 | 830 | |||||
Total interest expense | 43,569 | 20,587 | |||||
Net interest income | 210,300 | 163,359 | |||||
Provision for credit losses | 12,000 | 9,000 | |||||
Net interest income after provision for credit losses | 198,300 | 154,359 | |||||
Non-interest income | |||||||
Service charges on deposit accounts | 3,137 | 3,045 | |||||
Wealth management and trust fee income | 1,924 | 1,357 | |||||
Bank owned life insurance (BOLI) income | 659 | 466 | |||||
Brokered loan fees | 5,168 | 5,678 | |||||
Servicing income | 5,492 | 2,201 | |||||
Swap fees | 1,562 | 1,803 | |||||
Other | 2,005 | 2,560 | |||||
Total non-interest income | 19,947 | 17,110 | |||||
Non-interest expense | |||||||
Salaries and employee benefits | 72,537 | 63,003 | |||||
Net occupancy expense | 7,234 | 6,111 | |||||
Marketing | 8,677 | 4,950 | |||||
Legal and professional | 7,530 | 7,453 | |||||
Communications and technology | 6,633 | 6,506 | |||||
FDIC insurance assessment | 6,103 | 5,994 | |||||
Servicing related expenses | 3,805 | 1,750 | |||||
Allowance and other carrying costs for other real estate owned (OREO) | 2,155 | 139 | |||||
Other | 12,286 | 10,188 | |||||
Total non-interest expense | 126,960 | 106,094 | |||||
Income before income taxes | 91,287 | 65,375 | |||||
Income tax expense | 19,342 | 22,833 | |||||
Net income | 71,945 | 42,542 | |||||
Preferred stock dividends | 2,438 | 2,438 | |||||
Net income available to common stockholders | $ | 69,507 | $ | 40,104 | |||
Other comprehensive income (loss) | |||||||
Change in net unrealized gain on available-for-sale debt securities arising during period, before-tax | $ | (63 | ) | $ | 3 | ||
Income tax expense (benefit) related to net unrealized gain on available-for-sale debt securities | (13 | ) | 1 | ||||
Other comprehensive income (loss), net of tax | (50 | ) | 2 | ||||
Comprehensive income | $ | 71,895 | $ | 42,544 | |||
Basic earnings per common share | $ | 1.40 | $ | 0.81 | |||
Diluted earnings per common share | $ | 1.38 | $ | 0.80 |
Preferred Stock | Common Stock | Treasury Stock | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Shares | Amount | Accumulated Other Comprehensive Income (Loss), Net of Taxes | Total | |||||||||||||||||||||||||||
Balance at December 31, 2016 (audited) | 6,000,000 | $ | 150,000 | 49,504,079 | $ | 495 | $ | 955,468 | $ | 903,187 | (417 | ) | $ | (8 | ) | $ | 415 | $ | 2,009,557 | |||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 42,542 | — | — | — | 42,542 | ||||||||||||||||||||||||||
Change in unrealized gain on available-for-sale securities, net of taxes of $43 | — | — | — | — | — | — | — | — | 2 | 2 | ||||||||||||||||||||||||||
Total comprehensive income | 42,544 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | — | — | 1,669 | — | — | — | — | 1,669 | ||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | (2,438 | ) | — | — | — | (2,438 | ) | ||||||||||||||||||||||||
Issuance of stock related to stock-based awards | — | — | 22,843 | 1 | (891 | ) | — | — | — | — | (890 | ) | ||||||||||||||||||||||||
Issuance of common stock related to warrants | — | — | 33,595 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at March 31, 2017 | 6,000,000 | $ | 150,000 | 49,560,517 | $ | 496 | $ | 956,246 | $ | 943,291 | (417 | ) | $ | (8 | ) | $ | 417 | $ | 2,050,442 | |||||||||||||||||
Balance at December 31, 2017 (audited) | 6,000,000 | $ | 150,000 | 49,643,761 | $ | 496 | $ | 961,305 | $ | 1,090,500 | (417 | ) | $ | (8 | ) | $ | 428 | $ | 2,202,721 | |||||||||||||||||
Impact of adoption of new accounting standards(1) | — | — | — | — | — | (82 | ) | — | — | 84 | 2 | |||||||||||||||||||||||||
Comprehensive income: | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 71,945 | — | — | — | 71,945 | ||||||||||||||||||||||||||
Change in unrealized gain on available-for-sale debt securities, net of taxes of $13 | — | — | — | — | — | — | — | — | (50 | ) | (50 | ) | ||||||||||||||||||||||||
Total comprehensive income | 71,895 | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense recognized in earnings | — | — | — | — | 1,957 | — | — | — | — | 1,957 | ||||||||||||||||||||||||||
Preferred stock dividend | — | — | — | — | — | (2,438 | ) | — | — | — | (2,438 | ) | ||||||||||||||||||||||||
Issuance of stock related to stock-based awards | — | — | 26,430 | 1 | (709 | ) | — | — | — | — | (708 | ) | ||||||||||||||||||||||||
Balance at March 31, 2018 | 6,000,000 | $ | 150,000 | 49,670,191 | $ | 497 | $ | 962,553 | $ | 1,159,925 | (417 | ) | $ | (8 | ) | $ | 462 | $ | 2,273,429 |
(1) | Represents the impact of adopting Accounting Standard Update ("ASU") 2018-02 and ASU 2016-01. See Note 1 to the consolidated financial statements for more information. |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Operating activities | |||||||
Net income | $ | 71,945 | $ | 42,542 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 12,000 | 9,000 | |||||
Depreciation and amortization | 8,240 | 6,216 | |||||
Decrease in valuation allowance on mortgage servicing rights | (757 | ) | — | ||||
Bank owned life insurance (BOLI) income | (659 | ) | (466 | ) | |||
Stock-based compensation expense | 5,971 | 4,559 | |||||
Purchases and originations of loans held for sale | (1,479,006 | ) | (1,299,542 | ) | |||
Proceeds from sales and repayments of loans held for sale | 1,381,277 | 1,379,834 | |||||
Proceeds from sale of MSRs | 4,692 | — | |||||
Net loss on sale of loans held for sale and other assets | 2,458 | 988 | |||||
Increase in OREO valuation allowance | 2,000 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accrued interest receivable and other assets | 10,920 | 19,548 | |||||
Accrued interest payable and other liabilities | (13,757 | ) | (927 | ) | |||
Net cash provided by operating activities | 5,324 | 161,752 | |||||
Investing activities | |||||||
Purchases of investment securities | (2,455 | ) | (18,832 | ) | |||
Maturities and calls of available-for-sale securities | — | 275 | |||||
Principal payments received on available-for-sale securities | 763 | 1,231 | |||||
Originations of mortgage finance loans | (19,821,894 | ) | (15,100,024 | ) | |||
Proceeds from pay-offs of mortgage finance loans | 20,440,116 | 16,225,764 | |||||
Net increase in loans held for investment, excluding mortgage finance loans | (380,725 | ) | (303,595 | ) | |||
Purchase of premises and equipment, net | (4,441 | ) | (2,597 | ) | |||
Proceeds from sale of foreclosed assets | 184 | 128 | |||||
Net cash provided by investing activities | 231,548 | 802,350 | |||||
Financing activities | |||||||
Net decrease in deposits | (358,647 | ) | (411,451 | ) | |||
Costs from issuance of stock related to stock-based awards and warrants | (708 | ) | (890 | ) | |||
Preferred dividends paid | (2,438 | ) | (2,438 | ) | |||
Net decrease in other borrowings | (500,000 | ) | (500,000 | ) | |||
Net decrease in Federal funds purchased and repurchase agreements | 170,500 | 32,259 | |||||
Net cash used in financing activities | (691,293 | ) | (882,520 | ) | |||
Net increase (decrease) in cash and cash equivalents | (454,421 | ) | 81,582 | ||||
Cash and cash equivalents at beginning of period | 2,905,591 | 2,839,352 | |||||
Cash and cash equivalents at end of period | $ | 2,451,170 | $ | 2,920,934 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for interest | $ | 46,075 | $ | 22,792 | |||
Cash paid during the period for income taxes | 266 | 482 | |||||
Transfers from loans/leases to OREO and other repossessed assets | — | — |
• | Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. |
• | Wealth management and trust fee income - this represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month, which is generally the time that payment is received. Also included are fees received from a third party broker-dealer as part of a revenue-sharing agreement for fees earned from customers that we refer to the third party. These fees are paid to us by the third party on a quarterly basis and recognized ratably throughout the quarter as our performance obligation is satisfied. |
• | Brokered loan fees - these represent fees for the administration and funding of purchased mortgage loan interests as well as facility renewal and application fees received from mortgage originator customers in our warehouse lending business. Also included are fees received from independent correspondent mortgage lenders as consideration for our purchase of individual residential mortgage loans through our Mortgage Correspondent Aggregation ("MCA") business. Revenue related to the warehouse lending business is recognized when the related loan interest is disposed (i.e., through sale or payoff) or upon receipt of the facility renewal or application. Revenue related to our MCA business is recognized at the time a loan is purchased. |
• | Other non-interest income primarily includes items such as letter of credit fees, gains on sale of loans held for sale and servicing fees related to the MCA program, none of which are subject to the requirements of ASC 606. |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Numerator: | |||||||
Net income | $ | 71,945 | $ | 42,542 | |||
Preferred stock dividends | 2,438 | 2,438 | |||||
Net income available to common stockholders | $ | 69,507 | 40,104 | ||||
Denominator: | |||||||
Denominator for basic earnings per share—weighted average shares | 49,650,884 | 49,535,959 | |||||
Effect of employee stock-based awards(1) | 255,794 | 260,947 | |||||
Effect of warrants to purchase common stock | 446,819 | 437,324 | |||||
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions | 50,353,497 | 50,234,230 | |||||
Basic earnings per common share | $ | 1.40 | $ | 0.81 | |||
Diluted earnings per common share | $ | 1.38 | $ | 0.80 |
(1) | SARs and RSUs outstanding of 5,139 at March 31, 2018 and 3,000 at March 31, 2017 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. |
March 31, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Residential mortgage-backed securities | $ | 9,534 | $ | 585 | $ | — | $ | 10,119 | |||||||
December 31, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Residential mortgage-backed securities | $ | 10,297 | $ | 648 | $ | — | $ | 10,945 |
March 31, 2018 | ||||||||||||||
Less Than One Year | After One Through Five Years | After Five Through Ten Years | After Ten Years | Total | ||||||||||
Residential mortgage-backed securities:(1) | ||||||||||||||
Amortized cost | 169 | 1,651 | 456 | 7,258 | 9,534 | |||||||||
Estimated fair value | 173 | 1,804 | 495 | 7,647 | 10,119 | |||||||||
Weighted average yield(2) | 4.67 | % | 5.58 | % | 5.48 | % | 3.48 | % | 3.96 | % |
December 31, 2017 | |||||||||||||||||||
Less Than One Year | After One Through Five Years | After Five Through Ten Years | After Ten Years | Total | |||||||||||||||
Residential mortgage-backed securities:(1) | |||||||||||||||||||
Amortized cost | $ | 409 | $ | 819 | $ | 1,502 | $ | 7,567 | $ | 10,297 | |||||||||
Estimated fair value | 418 | 916 | 1,636 | 7,975 | 10,945 | ||||||||||||||
Weighted average yield(2) | 4.59 | % | 6.02 | % | 5.32 | % | 3.45 | % | 3.97 | % |
(1) | Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. |
(2) | Yields are calculated based on amortized cost. |
Three months ended | |||
March 31, 2018 | |||
Net gains and (losses) recognized during the period on equity securities | $ | (212 | ) |
Less: Net gains and (losses) recognized during the period on equity securities sold during the period | — | ||
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting date | $ | (212 | ) |
March 31, 2018 | December 31, 2017 | ||||||
Commercial | $ | 9,461,024 | $ | 9,189,811 | |||
Mortgage finance | 4,689,938 | 5,308,160 | |||||
Construction | 2,224,403 | 2,166,208 | |||||
Real estate | 3,834,758 | 3,794,577 | |||||
Consumer | 47,311 | 48,684 | |||||
Leases | 276,303 | 264,903 | |||||
Gross loans held for investment | 20,533,737 | 20,772,343 | |||||
Deferred income (net of direct origination costs) | (102,027 | ) | (97,931 | ) | |||
Allowance for loan losses | (190,898 | ) | (184,655 | ) | |||
Total loans held for investment | $ | 20,240,812 | $ | 20,489,757 |
March 31, 2018 | |||||||||||||||||||||||||||
Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Total | |||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||
Pass | $ | 9,210,706 | $ | 4,689,938 | $ | 2,210,513 | $ | 3,743,437 | $ | 47,146 | $ | 262,356 | $ | 20,164,096 | |||||||||||||
Special mention | 52,764 | — | 13,890 | 57,871 | — | — | 124,525 | ||||||||||||||||||||
Substandard-accruing | 75,271 | — | — | 32,263 | 93 | 13,947 | 121,574 | ||||||||||||||||||||
Non-accrual | 122,283 | — | — | 1,187 | 72 | — | 123,542 | ||||||||||||||||||||
Total loans held for investment | $ | 9,461,024 | $ | 4,689,938 | $ | 2,224,403 | $ | 3,834,758 | $ | 47,311 | $ | 276,303 | $ | 20,533,737 | |||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Total | |||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||
Pass | $ | 8,967,471 | $ | 5,308,160 | $ | 2,152,654 | $ | 3,706,541 | $ | 48,591 | $ | 249,865 | $ | 20,433,282 | |||||||||||||
Special mention | 19,958 | — | 13,554 | 53,652 | — | 495 | 87,659 | ||||||||||||||||||||
Substandard-accruing | 102,651 | — | — | 32,671 | 93 | 14,543 | 149,958 | ||||||||||||||||||||
Non-accrual | 99,731 | — | — | 1,713 | — | — | 101,444 | ||||||||||||||||||||
Total loans held for investment | $ | 9,189,811 | $ | 5,308,160 | $ | 2,166,208 | $ | 3,794,577 | $ | 48,684 | $ | 264,903 | $ | 20,772,343 |
March 31, 2018 | |||||||||||||||||||||||||||||||
(in thousands) | Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Additional Qualitative Reserve | Total | |||||||||||||||||||||||
Beginning balance | $ | 118,806 | $ | — | $ | 19,273 | $ | 34,287 | $ | 357 | $ | 3,542 | $ | 8,390 | $ | 184,655 | |||||||||||||||
Provision for loan losses | 17,546 | — | (518 | ) | (200 | ) | (178 | ) | (18 | ) | (5,184 | ) | 11,448 | ||||||||||||||||||
Charge-offs | 5,667 | — | — | — | — | — | — | 5,667 | |||||||||||||||||||||||
Recoveries | 360 | — | — | 24 | 59 | 19 | — | 462 | |||||||||||||||||||||||
Net charge-offs (recoveries) | 5,307 | — | — | (24 | ) | (59 | ) | (19 | ) | — | 5,205 | ||||||||||||||||||||
Ending balance | $ | 131,045 | $ | — | $ | 18,755 | $ | 34,111 | $ | 238 | $ | 3,543 | $ | 3,206 | $ | 190,898 | |||||||||||||||
Period end amount allocated to: | |||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 34,897 | $ | — | $ | — | $ | 22 | $ | 2 | $ | — | $ | — | $ | 34,921 | |||||||||||||||
Loans collectively evaluated for impairment | 96,148 | — | 18,755 | 34,089 | 236 | 3,543 | 3,206 | 155,977 | |||||||||||||||||||||||
Ending balance | $ | 131,045 | $ | — | $ | 18,755 | $ | 34,111 | $ | 238 | $ | 3,543 | $ | 3,206 | $ | 190,898 | |||||||||||||||
March 31, 2017 | |||||||||||||||||||||||||||||||
(in thousands) | Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Additional Qualitative Reserve | Total | |||||||||||||||||||||||
Beginning balance | $ | 128,768 | $ | — | $ | 13,144 | $ | 19,149 | $ | 241 | $ | 1,124 | $ | 5,700 | $ | 168,126 | |||||||||||||||
Provision for loan losses | 8,147 | — | (124 | ) | 3,270 | (31 | ) | 325 | (2,012 | ) | 9,575 | ||||||||||||||||||||
Charge-offs | 9,233 | — | — | — | — | — | — | 9,233 | |||||||||||||||||||||||
Recoveries | 3,381 | — | 101 | 50 | 5 | 8 | — | 3,545 | |||||||||||||||||||||||
Net charge-offs (recoveries) | 5,852 | — | (101 | ) | (50 | ) | (5 | ) | (8 | ) | — | 5,688 | |||||||||||||||||||
Ending balance | $ | 131,063 | $ | — | $ | 13,121 | $ | 22,469 | $ | 215 | $ | 1,457 | $ | 3,688 | $ | 172,013 | |||||||||||||||
Period end amount allocated to: | |||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 34,595 | $ | — | $ | — | $ | 195 | $ | 30 | $ | 13 | $ | — | $ | 34,833 | |||||||||||||||
Loans collectively evaluated for impairment | 96,468 | — | 13,121 | 22,274 | 185 | 1,444 | 3,688 | 137,180 | |||||||||||||||||||||||
Ending balance | $ | 131,063 | $ | — | $ | 13,121 | $ | 22,469 | $ | 215 | $ | 1,457 | $ | 3,688 | $ | 172,013 |
Three months ended March 31, | ||||||||
2018 | 2017 | |||||||
Beginning balance | $ | 9,071 | $ | 11,422 | ||||
Provision for off-balance sheet credit losses | 552 | (575 | ) | |||||
Ending balance | $ | 9,623 | $ | 10,847 |
March 31, 2018 | |||||||||||||||||||||||||||
Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Total | |||||||||||||||||||||
Loans individually evaluated for impairment | $ | 123,206 | $ | — | $ | — | $ | 1,187 | $ | 72 | $ | — | $ | 124,465 | |||||||||||||
Loans collectively evaluated for impairment | 9,337,818 | 4,689,938 | 2,224,403 | 3,833,571 | 47,239 | 276,303 | 20,409,272 | ||||||||||||||||||||
Total | $ | 9,461,024 | $ | 4,689,938 | $ | 2,224,403 | $ | 3,834,758 | $ | 47,311 | $ | 276,303 | $ | 20,533,737 | |||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||
Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Total | |||||||||||||||||||||
Loans individually evaluated for impairment | $ | 100,676 | $ | — | $ | — | $ | 2,008 | $ | — | $ | — | $ | 102,684 | |||||||||||||
Loans collectively evaluated for impairment | 9,089,135 | 5,308,160 | 2,166,208 | 3,792,569 | 48,684 | 264,903 | 20,669,659 | ||||||||||||||||||||
Total | $ | 9,189,811 | $ | 5,308,160 | $ | 2,166,208 | $ | 3,794,577 | $ | 48,684 | $ | 264,903 | $ | 20,772,343 | |||||||||||||
March 31, 2017 | |||||||||||||||||||||||||||
Commercial | Mortgage Finance | Construction | Real Estate | Consumer | Leases | Total | |||||||||||||||||||||
Loans individually evaluated for impairment | $ | 143,632 | $ | — | $ | — | $ | 5,512 | $ | 200 | $ | 83 | $ | 149,427 | |||||||||||||
Loans collectively evaluated for impairment | 7,336,853 | 3,371,598 | 2,108,611 | 3,557,624 | 36,059 | 186,030 | 16,596,775 | ||||||||||||||||||||
Total | $ | 7,480,485 | $ | 3,371,598 | $ | 2,108,611 | $ | 3,563,136 | $ | 36,259 | $ | 186,113 | $ | 16,746,202 |
March 31, 2018 | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Business loans | $ | 4,500 | $ | 4,534 | $ | — | $ | 12,723 | $ | — | |||||||||
Energy | 21,044 | 22,220 | — | 21,299 | — | ||||||||||||||
Construction | |||||||||||||||||||
Market risk | — | — | — | — | — | ||||||||||||||
Real estate | |||||||||||||||||||
Market risk | — | — | — | — | — | ||||||||||||||
Commercial | 1,069 | 1,069 | — | 1,087 | — | ||||||||||||||
Secured by 1-4 family | — | — | — | — | — | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Total impaired loans with no allowance recorded | $ | 26,613 | $ | 27,823 | $ | — | $ | 35,109 | $ | — | |||||||||
With an allowance recorded: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Business loans | $ | 68,298 | $ | 69,719 | $ | 21,745 | $ | 35,196 | $ | — | |||||||||
Energy | 29,364 | 30,747 | 13,152 | 38,968 | — | ||||||||||||||
Construction | |||||||||||||||||||
Market risk | — | — | — | — | — | ||||||||||||||
Real estate | |||||||||||||||||||
Market risk | — | — | — | 197 | — | ||||||||||||||
Commercial | — | — | — | 333 | — | ||||||||||||||
Secured by 1-4 family | 118 | 118 | 22 | 118 | — | ||||||||||||||
Consumer | 72 | 72 | 2 | 24 | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Total impaired loans with an allowance recorded | $ | 97,852 | $ | 100,656 | $ | 34,921 | $ | 74,836 | $ | — | |||||||||
Combined: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Business loans | $ | 72,798 | $ | 74,253 | $ | 21,745 | $ | 47,919 | $ | — | |||||||||
Energy | 50,408 | 52,967 | 13,152 | 60,267 | — | ||||||||||||||
Construction | |||||||||||||||||||
Market risk | — | — | — | — | — | ||||||||||||||
Real estate | |||||||||||||||||||
Market risk | — | — | — | 197 | — | ||||||||||||||
Commercial | 1,069 | 1,069 | — | 1,420 | — | ||||||||||||||
Secured by 1-4 family | 118 | 118 | 22 | 118 | — | ||||||||||||||
Consumer | 72 | 72 | 2 | 24 | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Total impaired loans | $ | 124,465 | $ | 128,479 | $ | 34,921 | $ | 109,945 | $ | — |
December 31, 2017 | |||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Business loans | $ | 16,835 | $ | 18,257 | $ | — | $ | 22,964 | $ | — | |||||||||
Energy | 21,426 | 22,602 | — | 36,579 | — | ||||||||||||||
Construction | |||||||||||||||||||
Market risk | — | — | — | — | — | ||||||||||||||
Real estate | |||||||||||||||||||
Market risk | — | — | — | — | — | ||||||||||||||
Commercial | 1,096 | 1,096 | — | 2,166 | — | ||||||||||||||
Secured by 1-4 family | — | — | — | — | — | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||
Total impaired loans with no allowance recorded | $ | 39,357 | $ | 41,955 | $ | — | $ | 61,709 | $ | — | |||||||||
With an allowance recorded: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Business loans | $ | 18,645 | $ | 19,020 | $ | 2,544 | $ | 16,960 | $ | — | |||||||||
Energy | 43,770 | 55,875 | 21,772 | 50,867 | 6 | ||||||||||||||
Construction | |||||||||||||||||||
Market risk | — | — | — | 27 | — | ||||||||||||||
Real estate | |||||||||||||||||||
Market risk | 295 | 295 | 6 | 485 | — | ||||||||||||||
Commercial | 499 | 499 | 75 | 166 | — | ||||||||||||||
Secured by 1-4 family | 118 | 118 | 20 | 516 | — | ||||||||||||||
Consumer | — | — | — | 33 | — | ||||||||||||||
Leases | — | — | — | 14 | — | ||||||||||||||
Total impaired loans with an allowance recorded | $ | 63,327 | $ | 75,807 | $ | 24,417 | $ | 69,068 | $ | 6 | |||||||||
Combined: | |||||||||||||||||||
Commercial | |||||||||||||||||||
Business loans | $ | 35,480 | $ | 37,277 | $ | 2,544 | $ | 39,924 | $ | — | |||||||||
Energy | 65,196 | 78,477 | 21,772 | 87,446 | 6 | ||||||||||||||
Construction | |||||||||||||||||||
Market risk | — | — | — | 27 | — | ||||||||||||||
Real estate | |||||||||||||||||||
Market risk | 295 | 295 | 6 | 485 | — | ||||||||||||||
Commercial | 1,595 | 1,595 | 75 | 2,332 | — | ||||||||||||||
Secured by 1-4 family | 118 | 118 | 20 | 516 | — | ||||||||||||||
Consumer | — | — | — | 33 | — | ||||||||||||||
Leases | — | — | — | 14 | — | ||||||||||||||
Total impaired loans | $ | 102,684 | $ | 117,762 | $ | 24,417 | $ | 130,777 | $ | 6 |
30-59 Days Past Due | 60-89 Days Past Due | Greater Than 90 Days and Accruing(1) | Total Past Due | Non-accrual | Current | Total | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||
Business loans | $ | 47,071 | $ | 6,392 | $ | 5,677 | $ | 59,140 | $ | 71,875 | $ | 8,092,786 | $ | 8,223,801 | |||||||||||||
Energy | — | — | — | — | 50,408 | 1,186,815 | 1,237,223 | ||||||||||||||||||||
Mortgage finance loans | — | — | — | — | — | 4,689,938 | 4,689,938 | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||||
Market risk | 1,464 | — | — | 1,464 | — | 2,132,202 | 2,133,666 | ||||||||||||||||||||
Commercial | — | — | — | — | — | 57,565 | 57,565 | ||||||||||||||||||||
Secured by 1-4 family | — | — | 4,524 | 4,524 | — | 28,648 | 33,172 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||
Market risk | 11,092 | 750 | 678 | 12,520 | — | 2,697,219 | 2,709,739 | ||||||||||||||||||||
Commercial | 53 | 367 | — | 420 | 1,069 | 831,388 | 832,877 | ||||||||||||||||||||
Secured by 1-4 family | 2,894 | 1,263 | 2,048 | 6,205 | 118 | 285,819 | 292,142 | ||||||||||||||||||||
Consumer | 443 | — | — | 443 | 72 | 46,796 | 47,311 | ||||||||||||||||||||
Leases | 125 | 182 | 636 | 943 | — | 275,360 | 276,303 | ||||||||||||||||||||
Total loans held for investment | $ | 63,142 | $ | 8,954 | $ | 13,563 | $ | 85,659 | $ | 123,542 | $ | 20,324,536 | $ | 20,533,737 |
(1) | Loans past due 90 days and still accruing includes premium finance loans of $4.1 million. These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
As of and for the three months ended March 31, 2017 | ||||||||||
Number of Restructured Loans | Balance at Restructure | Balance at Period-End | ||||||||
Energy loans | 1 | $ | 1,070 | $ | 1,070 | |||||
Commercial business loans | 1 | 599 | 599 | |||||||
Total new restructured loans | 2 | $ | 1,669 | $ | 1,669 |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Extended maturity | $ | — | $ | 1,669 |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Beginning balance | $ | 11,742 | $ | 18,961 | |||
Additions | — | — | |||||
Sales | (184 | ) | (128 | ) | |||
Valuation allowance for OREO | (2,000 | ) | — | ||||
Ending balance | $ | 9,558 | $ | 18,833 |
March 31, 2018 | December 31, 2017 | ||||||
Outstanding balance(1) | $ | 1,091,903 | $ | 1,009,271 | |||
Fair value(1) | 1,088,565 | 1,007,695 | |||||
Fair value over/(under) outstanding balance | $ | (3,338 | ) | $ | (1,576 | ) |
(1) | Does not include $3.3 million of Small Business Administration ("SBA") loans held for sale carried at lower of cost or market as of December 31, 2017 that were subsequently sold during the three months ended March 31, 2018. |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Beginning balance(1) | $ | 1,011,004 | $ | 968,929 | |||
Loans purchased | 1,479,006 | 1,299,542 | |||||
Payments and loans sold(1) | (1,399,683 | ) | (1,399,800 | ) | |||
Change in fair value | (1,762 | ) | 15,976 | ||||
Ending balance | $ | 1,088,565 | $ | 884,647 |
(1) | Includes $3.3 million of SBA loans held for sale carried at lower of cost or market at December 31, 2017 that were subsequently sold during the three months ended March 31, 2018. |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
MSRs: | |||||||
Balance, beginning of year | $ | 88,150 | $ | 28,536 | |||
Capitalized servicing rights | 16,750 | 18,094 | |||||
Amortization | (2,741 | ) | (1,104 | ) | |||
Sales | (25,598 | ) | — | ||||
Balance, end of period | $ | 76,561 | $ | 45,526 | |||
Valuation allowance: | |||||||
Balance, beginning of year | $ | 2,823 | $ | — | |||
Increase (decrease) in valuation allowance | (2,823 | ) | — | ||||
Balance, end of period | $ | — | $ | — | |||
MSRs, net(1) | $ | 76,561 | $ | 45,526 | |||
MSRs, fair value | $ | 82,274 | $ | 48,013 |
(1) | MSRs are reported on the consolidated balance sheets at amortized cost, less a valuation allowance if the fair value of identified strata within the MSR portfolio are determined to have a fair value that is less than amortized cost. |
March 31, 2018 | December 31, 2017 | |||
Average discount rates | 9.61 | % | 9.90 | % |
Expected prepayment speeds | 8.63 | % | 9.99 | % |
Weighted average life, in years | 7.6 | 7.0 |
March 31, 2018 | December 31, 2017 | ||||||
50 bp adverse change in prepayment speed | $ | (8,142 | ) | $ | (11,896 | ) | |
100 bp adverse change in prepayment speed | (20,353 | ) | (28,226 | ) |
March 31, 2018 | December 31, 2017 | ||||||
Commitments to extend credit | $ | 7,108,257 | $ | 6,957,847 | |||
Standby letters of credit | 241,335 | 230,958 |
Actual | Minimum Capital Required - Basel III Phase-In Schedule | Minimum capital Required - Basel III Fully Phased-In | Required to be Considered Well Capitalized | ||||||||||||||||||||
Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | Capital Amount | Ratio | ||||||||||||||||
As of March 31, 2018: | |||||||||||||||||||||||
CET1 | |||||||||||||||||||||||
Company | $ | 2,103,637 | 8.80 | % | $ | 1,523,915 | 6.375 | % | $ | 1,673,318 | 7.00 | % | N/A | N/A | |||||||||
Bank | 2,064,966 | 8.64 | % | 1,523,161 | 6.375 | % | 1,672,490 | 7.00 | % | 1,553,027 | 6.50 | % | |||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||
Company | 2,843,072 | 11.89 | % | 2,360,574 | 9.875 | % | 2,509,978 | 10.50 | % | N/A | N/A | ||||||||||||
Bank | 2,645,863 | 11.07 | % | 2,359,406 | 9.875 | % | 2,508,735 | 10.50 | % | 2,389,272 | 10.00 | % | |||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||
Company | 2,361,055 | 9.88 | % | 1,882,483 | 7.875 | % | 2,031,887 | 8.50 | % | N/A | N/A | ||||||||||||
Bank | 2,222,384 | 9.30 | % | 1,881,552 | 7.875 | % | 2,030,881 | 8.50 | % | 1,911,417 | 8.00 | % | |||||||||||
Tier 1 capital (to average assets)(1) | |||||||||||||||||||||||
Company | 2,361,055 | 9.88 | % | 955,731 | 4.00 | % | 955,731 | 4.00 | % | N/A | N/A | ||||||||||||
Bank | 2,222,384 | 9.31 | % | 955,236 | 4.00 | % | 955,236 | 4.00 | % | 1,194,044 | 5.00 | % | |||||||||||
As of December 31, 2017: | |||||||||||||||||||||||
CET1 | |||||||||||||||||||||||
Company | $ | 2,033,830 | 8.45 | % | $ | 1,384,448 | 5.75 | % | $ | 1,685,464 | 7.00 | % | N/A | N/A | |||||||||
Bank | 1,992,152 | 8.28 | % | 1,383,475 | 5.75 | % | 1,684,231 | 7.00 | % | 1,563,929 | 6.50 | % | |||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||
Company | 2,768,153 | 11.50 | % | 2,227,221 | 9.25 | % | 2,528,196 | 10.50 | % | N/A | N/A | ||||||||||||
Bank | 2,567,961 | 10.67 | % | 2,225,591 | 9.25 | % | 2,526,347 | 10.50 | % | 2,406,044 | 10.00 | % | |||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||
Company | 2,293,016 | 9.52 | % | 1,745,659 | 7.25 | % | 2,046,635 | 8.50 | % | N/A | N/A | ||||||||||||
Bank | 2,151,338 | 8.94 | % | 1,744,382 | 7.25 | % | 2,045,138 | 8.50 | % | 1,924,835 | 8.00 | % | |||||||||||
Tier 1 capital (to average assets)(1) | |||||||||||||||||||||||
Company | 2,293,016 | 9.15 | % | 1,002,494 | 4.00 | % | 1,002,494 | 4.00 | % | N/A | N/A | ||||||||||||
Bank | 2,151,338 | 8.59 | % | 1,002,144 | 4.00 | % | 1,002,144 | 4.00 | % | 1,252,680 | 5.00 | % |
(1) | The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, it should be noted that the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Stock-settled awards: | |||||||
SARs | $ | 50 | $ | 72 | |||
RSUs | 1,896 | 1,593 | |||||
Restricted stock | 11 | 4 | |||||
Cash-settled performance units | 4,014 | 2,890 | |||||
Total | $ | 5,971 | $ | 4,559 |
(in thousands) | March 31, 2018 | ||
Unrecognized compensation expense related to unvested stock-settled awards | $ | 17,313 | |
Weighted average period over which expense is expected to be recognized, in years | 3.0 |
Three months ended March 31, | |||||
2018 | 2017 | ||||
U.S. statutory rate | 21 | % | 35 | % | |
State taxes | 1 | % | 1 | % | |
Non-deductible expenses | 1 | % | — | % | |
Non-taxable income | (1 | )% | (1 | )% | |
Other | (1 | )% | — | % | |
Effective tax rate | 21 | % | 35 | % |
Level 1 | Quoted prices in active markets for identical assets or liabilities. This category includes the assets and liabilities related to our non-qualified deferred compensation plan where values are based on quoted market prices for identical equity securities in an active market. |
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include agency mortgage-backed debt securities and Community Reinvestment Act funds. This category also includes loans held for sale and derivative assets and liabilities where values are obtained from independent pricing services using observable market data. |
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair values requires significant management judgment or estimation. This category includes certain loans held for sale for which fair values are determined using third party pricing models. This category also includes impaired loans and OREO where collateral values have been based on third party appraisals; however, comparative sales data typically used in appraisals may be unavailable or more subjective in certain markets due to lack of market activity. |
Fair Value Measurements Using | |||||||||||
March 31, 2018 | Level 1 | Level 2 | Level 3 | ||||||||
Available-for-sale debt securities:(1) | |||||||||||
Residential mortgage-backed securities | $ | — | $ | 10,119 | $ | — | |||||
Equity securities(1)(2) | 7,842 | 6,968 | — | ||||||||
Loans held for sale (3) | — | 1,054,314 | 34,251 | ||||||||
Loans held for investment(4)(6) | — | — | 28,258 | ||||||||
OREO(5)(6) | — | — | 9,558 | ||||||||
Derivative assets(7) | — | 17,320 | — | ||||||||
Derivative liabilities(7) | — | 16,831 | — | ||||||||
Non-qualified deferred compensation plan liabilities (8) | 8,049 | — | — | ||||||||
December 31, 2017 | |||||||||||
Available-for-sale debt securities:(1) | |||||||||||
Residential mortgage-backed securities | $ | — | $ | 10,945 | $ | — | |||||
Equity securities(1)(2) | 5,460 | 7,106 | — | ||||||||
Loans held for sale(3) | — | 1,007,695 | — | ||||||||
Loans held for investment(4)(6) | — | — | 21,216 | ||||||||
OREO(5)(6) | — | — | 11,742 | ||||||||
Derivative assets(7) | — | 16,719 | — | ||||||||
Derivative liabilities(7) | — | 17,377 | — | ||||||||
Non-qualified deferred compensation plan liabilities (8) | 5,587 | — | — |
(1) | Securities are measured at fair value on a recurring basis, generally monthly. |
(2) | Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. |
(3) | Loans held for sale, excluding SBA loans which are carried at lower of cost or market, are measured at fair value on a recurring basis, generally monthly. |
(4) | Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. |
(5) | OREO is transferred from loans to OREO at fair value less selling costs. |
(6) | Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. |
(7) | Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. |
(8) | Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. |
Balance at Beginning of Period | Purchases / Additions | Sales / Reductions | Unrealized Gains (Losses) Recorded in Earnings(1) | Balance at End of Period | |||||||||||||||
Loans held for sale | $ | — | $ | 36,092 | $ | — | $ | (1,841 | ) | $ | 34,251 |
(1) | Recorded in other non-interest income. |
March 31, 2018 | December 31, 2017 | ||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
Financial assets: | |||||||||||||||
Level 1 inputs: | |||||||||||||||
Cash and cash equivalents | $ | 2,451,170 | $ | 2,451,170 | $ | 2,905,591 | $ | 2,905,591 | |||||||
Investment securities | 7,842 | 7,842 | 5,460 | 5,460 | |||||||||||
Level 2 inputs: | |||||||||||||||
Investment securities | 17,087 | 17,087 | 18,051 | 18,051 | |||||||||||
Loans held for sale | 1,054,314 | 1,054,314 | 1,011,004 | 1,011,004 | |||||||||||
Derivative assets | 17,320 | 17,320 | 16,719 | 16,719 | |||||||||||
Level 3 inputs: | |||||||||||||||
Loans held for sale | 34,251 | 34,251 | — | — | |||||||||||
Loans held for investment, net | 20,240,812 | 20,234,875 | 20,489,757 | 20,480,802 | |||||||||||
Financial liabilities: | |||||||||||||||
Level 2 inputs: | |||||||||||||||
Federal funds purchased | 527,800 | 527,800 | 359,338 | 359,338 | |||||||||||
Customer repurchase agreements | 7,740 | 7,740 | 5,702 | 5,702 | |||||||||||
Other borrowings | 2,300,000 | 2,300,000 | 2,800,000 | 2,800,000 | |||||||||||
Subordinated notes | 281,496 | 284,393 | 281,406 | 285,485 | |||||||||||
Derivative liabilities | 16,831 | 16,831 | 17,377 | 17,377 | |||||||||||
Level 3 inputs: | |||||||||||||||
Deposits | 18,764,533 | 18,765,267 | 19,123,180 | 19,124,121 | |||||||||||
Trust preferred subordinated debentures | 113,406 | 113,406 | 113,406 | 113,406 |
March 31, 2018 | December 31, 2017 | ||||||||||||||||||||||
Estimated Fair Value | Estimated Fair Value | ||||||||||||||||||||||
Notional Amount | Asset Derivative | Liability Derivative | Notional Amount | Asset Derivative | Liability Derivative | ||||||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||||||||
Financial institution counterparties: | |||||||||||||||||||||||
Commercial loan/lease interest rate swaps | $ | 1,459,722 | $ | 12,286 | $ | 7,305 | $ | 1,393,764 | $ | 4,736 | $ | 15,482 | |||||||||||
Commercial loan/lease interest rate caps | 232,754 | 772 | 19 | 242,700 | 421 | 7 | |||||||||||||||||
Foreign currency forward contracts | 51,064 | 1,362 | — | 2,466 | 4 | 69 | |||||||||||||||||
Customer counterparties: | |||||||||||||||||||||||
Commercial loan/lease interest rate swaps | 1,459,722 | 7,305 | 12,286 | 1,393,764 | 15,482 | 4,736 | |||||||||||||||||
Commercial loan/lease interest rate caps | 232,754 | 19 | 772 | 242,700 | 7 | 421 | |||||||||||||||||
Foreign currency forward contracts | 51,064 | — | 1,362 | 2,466 | 69 | 4 | |||||||||||||||||
Economic hedging interest rate derivatives: | |||||||||||||||||||||||
Loan purchase commitments | 277,085 | 1,043 | 66 | 253,815 | 635 | 190 | |||||||||||||||||
Forward sales commitments | 1,251,750 | 781 | 1,269 | 1,086,224 | — | 1,103 | |||||||||||||||||
Gross derivatives | 23,568 | 23,079 | 21,354 | 22,012 | |||||||||||||||||||
Offsetting derivative assets/liabilities | (6,248 | ) | (6,248 | ) | (4,635 | ) | (4,635 | ) | |||||||||||||||
Net derivatives included in the consolidated balance sheets | $ | 17,320 | $ | 16,831 | $ | 16,719 | $ | 17,377 |
March 31, 2018 Weighted Average Interest Rate | December 31, 2017 Weighted Average Interest Rate | ||||||||||
Received | Paid | Received | Paid | ||||||||
Non-hedging interest rate swaps | 3.65 | % | 4.14 | % | 3.59 | % | 4.34 | % |
For the three months ended March 31, 2018 | For the three months ended March 31, 2017 | ||||||||||||||||||||
Average Balance | Revenue/ Expense | Yield/ Rate | Average Balance | Revenue/ Expense | Yield/ Rate | ||||||||||||||||
Assets | |||||||||||||||||||||
Investment securities – taxable | $ | 23,854 | $ | 206 | 3.50 | % | $ | 31,905 | $ | 224 | 2.84 | % | |||||||||
Investment securities – non-taxable(2) | — | — | — | % | 224 | 3 | 4.85 | % | |||||||||||||
Federal funds sold and securities purchased under resale agreements | 261,641 | 1,045 | 1.62 | % | 276,910 | 530 | 0.78 | % | |||||||||||||
Interest-bearing deposits in other banks | 2,302,938 | 8,754 | 1.54 | % | 3,312,256 | 6,567 | 0.80 | % | |||||||||||||
Loans held for sale | 1,187,594 | 12,535 | 4.28 | % | 1,064,322 | 9,535 | 3.63 | % | |||||||||||||
Loans held for investment, mortgage finance | 4,097,995 | 37,362 | 3.70 | % | 2,757,566 | 23,105 | 3.40 | % | |||||||||||||
Loans held for investment(1)(2) | 15,425,323 | 195,333 | 5.14 | % | 12,980,544 | 145,018 | 4.53 | % | |||||||||||||
Less reserve for loan losses | 184,238 | — | — | 169,318 | — | — | |||||||||||||||
Loans held for investment, net | 19,339,080 | 232,695 | 4.88 | % | 15,568,792 | 168,123 | 4.38 | % | |||||||||||||
Total earning assets | 23,115,107 | 255,235 | 4.48 | % | 20,254,409 | 184,982 | 3.70 | % | |||||||||||||
Cash and other assets | 797,506 | 606,762 | |||||||||||||||||||
Total assets | $ | 23,912,613 | $ | 20,861,171 | |||||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||||
Transaction deposits | $ | 2,792,954 | $ | 8,651 | 1.26 | % | $ | 2,008,401 | $ | 2,193 | 0.44 | % | |||||||||
Savings deposits | 7,982,256 | 21,958 | 1.12 | % | 6,989,748 | 10,483 | 0.61 | % | |||||||||||||
Time deposits | 506,375 | 1,093 | 0.88 | % | 427,770 | 617 | 0.59 | % | |||||||||||||
Total interest-bearing deposits | 11,281,585 | 31,702 | 1.14 | % | 9,425,919 | 13,293 | 0.57 | % | |||||||||||||
Other borrowings | 1,721,914 | 6,649 | 1.57 | % | 1,333,685 | 2,273 | 0.69 | % | |||||||||||||
Subordinated notes | 281,437 | 4,191 | 6.04 | % | 281,076 | 4,191 | 6.05 | % | |||||||||||||
Trust preferred subordinated debentures | 113,406 | 1,027 | 3.67 | % | 113,406 | 830 | 2.97 | % | |||||||||||||
Total interest-bearing liabilities | 13,398,342 | 43,569 | 1.32 | % | 11,154,086 | 20,587 | 0.75 | % | |||||||||||||
Demand deposits | 8,147,721 | 7,547,338 | |||||||||||||||||||
Other liabilities | 110,698 | 117,877 | |||||||||||||||||||
Stockholders’ equity | 2,255,852 | 2,041,870 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 23,912,613 | $ | 20,861,171 | |||||||||||||||||
Net interest income(2) | $ | 211,666 | $ | 164,395 | |||||||||||||||||
Net interest margin | 3.71 | % | 3.29 | % | |||||||||||||||||
Net interest spread | 3.16 | % | 2.95 | % | |||||||||||||||||
Loan spread(3) | 4.07 | % | 3.97 | % |
(1) | The loan averages include non-accrual loans and are stated net of unearned income. |
(2) | Taxable equivalent rates used where applicable. |
(3) | Yield on loans, net of reserves, less funding cost including all deposits and borrowed funds. |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Deterioration of the credit quality of our loan portfolio or declines in the value of collateral related to external factors such as commodity prices, real estate values or interest rates, increased default rates and loan losses or adverse changes in the industry concentrations of our loan portfolio. |
• | Changing economic conditions or other developments adversely affecting our commercial, entrepreneurial and professional customers. |
• | Changes in the value of commercial and residential real estate securing our loans or in the demand for credit to support the purchase and ownership of such assets. |
• | Adverse economic conditions and other factors affecting our middle market customers and their ability to continue to meet their loan obligations. |
• | Unanticipated effects from the Tax Act may limit its benefits or adversely impact our business, which could include decreased demand for borrowing by our middle market customers or increased price competition that offsets the benefits of decreased federal income tax expense. |
• | The failure to correctly assess and model the assumptions supporting our allowance for loan losses, causing it to become inadequate in the event of deteriorations in loan quality and increases in charge-offs. |
• | Changes in the U.S. economy in general or the Texas economy specifically resulting in deterioration of credit quality, increases in non-performing assets or charge-offs or reduced demand for credit or other financial services we offer, including the effects from declines in the level of drilling and production related to the continued volatility in oil and gas prices. |
• | Adverse changes in economic or market conditions, in Texas, the United States or internationally, that could affect the credit quality of our loan portfolio or our operating performance. |
• | Unexpected market conditions or regulatory changes that could cause access to capital market transactions and other sources of funding to become more difficult to obtain on terms and conditions that are acceptable to us. |
• | The inadequacy of our available funds to meet our deposit, debt and other obligations as they become due, or our failure to maintain our capital ratios as a result of adverse changes in our operating performance or financial condition, or changes in applicable regulations or regulator interpretation of regulations impacting our business or the characterization or risk weight of our assets. |
• | The failure to effectively balance our funding sources with cash demands by depositors and borrowers.The failure to manage information systems risk or to prevent cyber-attacks against us, our customers or our third party vendors, or to manage risks from disruptions or security breaches affecting us, our customers or our third party vendors. |
• | The failure to effectively manage our interest rate risk resulting from unexpectedly large or sudden changes in interest rates or rate or maturity imbalances in our assets and liabilities, and potential adverse effects to our borrowers including their inability to repay loans with increased interest rates. |
• | Legislative and regulatory changes imposing further restrictions and costs on our business, a failure to remain well capitalized or well managed status or regulatory enforcement actions against us, and uncertainty related to future implementation and enforcement of regulatory requirements resulting from the current political environment. |
• | The failure to successfully execute our business strategy, which may include expanding into new markets, developing and launching new lines of business or new products and services within the expected timeframes and budgets or to successfully manage the risks related to the development and implementation of these new businesses, products or services. |
• | The failure to attract and retain key personnel or the loss of key individuals or groups of employees. |
• | Increased or more effective competition from banks and other financial service providers in our markets. |
• | Structural changes in the markets for origination, sale and servicing of residential mortgages. |
• | Uncertainty in the pricing of mortgage loans that we purchase, and later sell or securitize, as well as competition for the MSRs related to these loans and related interest rate risk or price risk resulting from retaining MSRs, and the potential effects of higher interest rates on our MCA loan volumes. |
• | Material failures of our accounting estimates and risk management processes based on management judgment, or the supporting analytical and forecasting models. |
• | Failure of our risk management strategies and procedures, including failure or circumvention of our controls. |
• | Credit risk resulting from our exposure to counterparties. |
• | An increase in the incidence or severity of fraud, illegal payments, security breaches and other illegal acts impacting our Bank and our customers. |
• | The failure to maintain adequate regulatory capital to support our business. |
• | Unavailability of funds obtained from borrowing or capital transactions or from our Bank to fund our obligations. |
• | Incurrence of material costs and liabilities associated with legal and regulatory proceedings and related matters with respect to the financial services industry, including those directly involving us or our Bank. |
• | Environmental liability associated with properties related to our lending activities. |
• | Severe weather, natural disasters, acts of war or terrorism and other external events. |
Three months ended March 31, 2018/2017 | |||||||||||
Net | Change Due To(1) | ||||||||||
Change | Volume | Yield/Rate(2) | |||||||||
Interest income: | |||||||||||
Investment securities | $ | (21 | ) | $ | (59 | ) | $ | 38 | |||
Loans held for sale | 3,000 | 1,103 | 1,897 | ||||||||
Loans held for investment, mortgage finance loans | 14,257 | 11,238 | 3,019 | ||||||||
Loans held for investment | 50,315 | 27,308 | 23,007 | ||||||||
Federal funds sold and securities purchased under resale agreements | 515 | (29 | ) | 544 | |||||||
Interest-bearing deposits in other banks | 2,187 | (1,991 | ) | 4,178 | |||||||
Total | 70,253 | 37,570 | 32,683 | ||||||||
Interest expense: | |||||||||||
Transaction deposits | 6,458 | 851 | 5,607 | ||||||||
Savings deposits | 11,475 | 1,493 | 9,982 | ||||||||
Time deposits | 476 | 114 | 362 | ||||||||
Other borrowings | 4,376 | 661 | 3,715 | ||||||||
Long-term debt | 197 | 5 | 192 | ||||||||
Total | 22,982 | 3,124 | 19,858 | ||||||||
Net interest income | $ | 47,271 | $ | 34,446 | $ | 12,825 |
(1) | Yield/rate and volume variances are allocated to yield/rate. |
(2) | Taxable equivalent rates are used where applicable and assume a 35% tax rate. |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Service charges on deposit accounts | $ | 3,137 | $ | 3,045 | |||
Wealth management and trust fee income | 1,924 | 1,357 | |||||
Bank owned life insurance (BOLI) income | 659 | 466 | |||||
Brokered loan fees | 5,168 | 5,678 | |||||
Servicing income | 5,492 | 2,201 | |||||
Swap fees | 1,562 | 1,803 | |||||
Other | 2,005 | 2,560 | |||||
Total non-interest income | $ | 19,947 | $ | 17,110 |
Three months ended March 31, | |||||||
2018 | 2017 | ||||||
Salaries and employee benefits | $ | 72,537 | $ | 63,003 | |||
Net occupancy expense | 7,234 | 6,111 | |||||
Marketing | 8,677 | 4,950 | |||||
Legal and professional | 7,530 | 7,453 | |||||
Communications and technology | 6,633 | 6,506 | |||||
FDIC insurance assessment | 6,103 | 5,994 | |||||
Servicing related expenses | 3,805 | 1,750 | |||||
Allowance and other carrying costs for OREO | 2,155 | 139 | |||||
Other(1) | 12,286 | 10,188 | |||||
Total non-interest expense | $ | 126,960 | $ | 106,094 |
(1) | Other expense includes such items as courier expenses, regulatory assessments other than FDIC insurance, due from bank charges and other general operating expenses, none of which account for 1% or more of total interest income and non-interest income. |
March 31, 2018 | December 31, 2017 | ||||||
Commercial | $ | 9,461,024 | $ | 9,189,811 | |||
Mortgage finance | 4,689,938 | 5,308,160 | |||||
Construction | 2,224,403 | 2,166,208 | |||||
Real estate | 3,834,758 | 3,794,577 | |||||
Consumer | 47,311 | 48,684 | |||||
Leases | 276,303 | 264,903 | |||||
Gross loans held for investment | 20,533,737 | 20,772,343 | |||||
Deferred income (net of direct origination costs) | (102,027 | ) | (97,931 | ) | |||
Allowance for loan losses | (190,898 | ) | (184,655 | ) | |||
Total loans held for investment, net | $ | 20,240,812 | $ | 20,489,757 |
Three months ended March 31, 2018 | Year ended December 31, 2017 | Three months ended March 31, 2017 | |||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | $ | 184,655 | $ | 168,126 | $ | 168,126 | |||||
Loans charged-off: | |||||||||||
Commercial | 5,667 | 34,145 | 9,233 | ||||||||
Construction | — | 59 | — | ||||||||
Real estate | — | 290 | — | ||||||||
Consumer | — | 180 | — | ||||||||
Leases | — | — | — | ||||||||
Total charge-offs | 5,667 | 34,674 | 9,233 | ||||||||
Recoveries: | |||||||||||
Commercial | 360 | 4,593 | 3,381 | ||||||||
Construction | — | 104 | 101 | ||||||||
Real estate | 24 | 75 | 50 | ||||||||
Consumer | 59 | 70 | 5 | ||||||||
Leases | 19 | 10 | 8 | ||||||||
Total recoveries | 462 | 4,852 | 3,545 | ||||||||
Net charge-offs | 5,205 | 29,822 | 5,688 | ||||||||
Provision for loan losses | 11,448 | 46,351 | 9,575 | ||||||||
Ending balance | $ | 190,898 | $ | 184,655 | $ | 172,013 | |||||
Allowance for off-balance sheet credit losses: | |||||||||||
Beginning balance | $ | 9,071 | $ | 11,422 | $ | 11,422 | |||||
Provision for off-balance sheet credit losses | 552 | (2,351 | ) | (575 | ) | ||||||
Ending balance | $ | 9,623 | $ | 9,071 | $ | 10,847 | |||||
Total allowance for credit losses | $ | 200,521 | $ | 193,726 | $ | 182,860 | |||||
Total provision for credit losses | $ | 12,000 | $ | 44,000 | $ | 9,000 | |||||
Allowance for loan losses to LHI | 0.93 | % | 0.89 | % | 1.03 | % | |||||
Allowance for loan losses to LHI excluding mortgage finance loans | 1.21 | % | 1.20 | % | 1.29 | % | |||||
Net charge-offs to average LHI(1) | 0.11 | % | 0.16 | % | 0.15 | % | |||||
Net charge-offs to average LHI excluding mortgage finance loans(1) | 0.14 | % | 0.21 | % | 0.18 | % | |||||
Total provision for credit losses to average LHI(1) | 0.25 | % | 0.24 | % | 0.23 | % | |||||
Total provision for credit losses to average LHI excluding mortgage finance loans(1) | 0.32 | % | 0.31 | % | 0.28 | % | |||||
Recoveries to total charge-offs | 8.15 | % | 13.99 | % | 38.39 | % | |||||
Allowance for off-balance sheet credit losses to off-balance sheet credit commitments | 0.13 | % | 0.13 | % | 0.18 | % | |||||
Total allowance for credit losses to LHI | 0.98 | % | 0.94 | % | 1.10 | % | |||||
Total allowance for credit losses to LHI excluding mortgage finance loans | 1.27 | % | 1.26 | % | 1.37 | % | |||||
Allowance for loan losses to non-accrual loans | 1.5x | 1.8x | 1.2x |
(1) | Interim period ratios are annualized. |
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||
Non-accrual loans held for investment:(1) | |||||||||||
Commercial | |||||||||||
Oil and gas properties | $ | 50,408 | $ | 64,192 | $ | 88,448 | |||||
Assets of the borrowers | 30,656 | 7,571 | 19,352 | ||||||||
Inventory | 38,083 | 24,399 | 30,582 | ||||||||
Other | 3,136 | 3,569 | 3,705 | ||||||||
Total commercial | 122,283 | 99,731 | 142,087 | ||||||||
Real estate | |||||||||||
Commercial property | 1,069 | 1,096 | 2,618 | ||||||||
Unimproved land and/or developed residential lots | — | — | — | ||||||||
Single family residences | — | — | 1,241 | ||||||||
Other | 118 | 617 | 320 | ||||||||
Total real estate | 1,187 | 1,713 | 4,179 | ||||||||
Consumer | 72 | — | 200 | ||||||||
Leases | — | — | 83 | ||||||||
Total non-accrual loans | 123,542 | 101,444 | 146,549 | ||||||||
Repossessed assets: | |||||||||||
OREO(2) | 9,558 | 11,742 | 18,833 | ||||||||
Other repossessed assets | — | — | — | ||||||||
Total loans held for investment non-performing assets | $ | 133,100 | $ | 113,186 | $ | 165,382 | |||||
Restructured loans - accruing | $ | — | $ | — | $ | — | |||||
Loans held for investment past due 90 days and accruing(3) | $ | 13,563 | $ | 8,429 | $ | 8,799 | |||||
Loans held for sale past due 90 days and accruing(4) | $ | 35,226 | $ | 19,737 | $ | — |
(1) | As of March 31, 2018, December 31, 2017 and March 31, 2017, non-accrual loans included $7.6 million, $18.8 million and $18.5 million, respectively, in loans that met the criteria for restructured. |
(2) | We recorded a $2.0 million valuation allowance against the OREO balance at March 31, 2018, compared to none at December 31, 2017 and March 31, 2017. |
(3) | At March 31, 2018, December 31, 2017 and March 31, 2017, loans past due 90 days and still accruing include premium finance loans of $4.1 million, $5.5 million and $5.1 million, respectively. |
(4) | Includes loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities. Loans are recorded as loans held for sale and carried at fair value on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. Also includes loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase if defined delinquent loan criteria are met and therefore must record as loans held for sale on our balance sheet regardless of whether the repurchase option has been exercised. |
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||
Federal funds sold and securities purchased under resale agreements | $ | 25,000 | $ | 30,000 | $ | 25,000 | |||||
Interest-bearing deposits in other banks | 2,271,673 | 2,697,581 | 2,779,921 | ||||||||
Total liquidity assets | $ | 2,296,673 | $ | 2,727,581 | $ | 2,804,921 | |||||
Total liquidity assets as a percent of: | |||||||||||
Total loans held for investment, excluding mortgage finance loans | 14.6 | % | 17.8 | % | 21.1 | % | |||||
Total loans held for investment | 11.2 | % | 13.2 | % | 16.8 | % | |||||
Total earning assets | 9.7 | % | 11.2 | % | 13.9 | % | |||||
Total deposits | 12.2 | % | 14.3 | % | 16.9 | % |
March 31, 2018 | December 31, 2017 | March 31, 2017 | |||||||||
Deposits from core customers | $ | 16,881.9 | $ | 17,100.8 | $ | 15,251.7 | |||||
Deposits from core customers as a percent of total deposits | 90.0 | % | 89.4 | % | 91.8 | % | |||||
Relationship brokered deposits | $ | 1,882.6 | $ | 2,022.4 | $ | 1,353.7 | |||||
Relationship brokered deposits as a percent of total deposits | 10.0 | % | 10.6 | % | 8.2 | % | |||||
Traditional brokered deposits | $ | — | $ | — | $ | — | |||||
Traditional brokered deposits as a percent of total deposits | — | % | — | % | — | % | |||||
Average deposits from core customers(1) | $ | 17,530.6 | $ | 16,806.9 | $ | 15,613.3 | |||||
Average deposits from core customers as a percent of total quarterly average deposits(1) | 90.2 | % | 91.1 | % | 92.0 | % | |||||
Average relationship brokered deposits(1) | $ | 1,898.7 | $ | 1,647.0 | $ | 1,360.0 | |||||
Average relationship brokered deposits as a percent of total quarterly average deposits(1) | 9.8 | % | 8.9 | % | 8.0 | % | |||||
Average traditional brokered deposits(1) | $ | — | $ | — | $ | — | |||||
Average traditional brokered deposits as a percent of total quarterly average deposits(1) | — | % | — | % | — | % |
(1) | Annual averages presented for December 31, 2017. |
Federal funds purchased | $ | 527,800 | |
Repurchase agreements | 7,740 | ||
FHLB borrowings | 2,300,000 | ||
Line of credit | — | ||
Total short-term borrowings | $ | 2,835,540 | |
Maximum short-term borrowings outstanding at any month-end during 2018 | $ | 3,000,013 |
FHLB borrowing capacity relating to loans | $ | 4,018,719 | |
FHLB borrowing capacity relating to investment securities | 1,852 | ||
Total FHLB borrowing capacity | $ | 4,020,571 | |
Unused Federal funds lines available from commercial banks | $ | 680,000 |
Subordinated notes | $ | 281,496 | |
Trust preferred subordinated debentures | 113,406 | ||
Total long-term borrowings | $ | 394,902 |
Within One Year | After One but Within Three Years | After Three but Within Five Years | After Five Years | Total | |||||||||||||||
Deposits without a stated maturity | $ | 18,276,012 | $ | — | $ | — | $ | — | $ | 18,276,012 | |||||||||
Time deposits | 466,042 | 21,659 | 370 | 450 | 488,521 | ||||||||||||||
Federal funds purchased and customer repurchase agreements | 535,540 | — | — | — | 535,540 | ||||||||||||||
FHLB borrowings | 2,300,000 | — | — | — | 2,300,000 | ||||||||||||||
Operating lease obligations(1) | 16,849 | 31,725 | 25,598 | 15,554 | 89,726 | ||||||||||||||
Subordinated notes | — | — | — | 281,496 | 281,496 | ||||||||||||||
Trust preferred subordinated debentures | — | — | — | 113,406 | 113,406 | ||||||||||||||
Total contractual obligations | $ | 21,594,443 | $ | 53,384 | $ | 25,968 | $ | 410,906 | $ | 22,084,701 |
(1) | Non-balance sheet item. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
0-3 mo Balance | 4-12 mo Balance | 1-3 yr Balance | 3+ yr Balance | Total Balance | |||||||||||||||
Assets: | |||||||||||||||||||
Interest-bearing deposits in other banks, federal funds sold and securities purchased under resale agreements | $ | 2,296,673 | $ | — | — | $ | — | $ | 2,296,673 | ||||||||||
Investment securities(1) | 10,399 | 11,694 | 2,786 | 50 | 24,929 | ||||||||||||||
Total variable loans | 17,892,907 | 132,473 | 13,633 | 1,945 | 18,040,958 | ||||||||||||||
Total fixed loans | 529,692 | 1,476,678 | 416,413 | 1,158,561 | 3,581,344 | ||||||||||||||
Total loans(2) | 18,422,599 | 1,609,151 | 430,046 | 1,160,506 | 21,622,302 | ||||||||||||||
Total interest sensitive assets | $ | 20,729,671 | $ | 1,620,845 | $ | 432,832 | $ | 1,160,556 | $ | 23,943,904 | |||||||||
Liabilities: | |||||||||||||||||||
Interest-bearing customer deposits | $ | 10,862,672 | $ | — | $ | — | $ | — | $ | 10,862,672 | |||||||||
CDs & IRAs | 368,147 | 97,895 | 21,659 | 820 | 488,521 | ||||||||||||||
Traditional brokered deposits | — | — | — | — | — | ||||||||||||||
Total interest-bearing deposits | 11,230,819 | 97,895 | 21,659 | 820 | 11,351,193 | ||||||||||||||
Repurchase agreements, Federal funds purchased, FHLB borrowings, line of credit | 2,835,540 | — | — | — | 2,835,540 | ||||||||||||||
Subordinated notes | — | — | — | 281,496 | 281,496 | ||||||||||||||
Trust preferred subordinated debentures | — | — | — | 113,406 | 113,406 | ||||||||||||||
Total borrowings | 2,835,540 | — | — | 394,902 | 3,230,442 | ||||||||||||||
Total interest sensitive liabilities | $ | 14,066,359 | $ | 97,895 | $ | 21,659 | $ | 395,722 | $ | 14,581,635 | |||||||||
Gap | $ | 6,663,312 | $ | 1,522,950 | $ | 411,173 | $ | 764,834 | $ | — | |||||||||
Cumulative Gap | 6,663,312 | 8,186,262 | 8,597,435 | 9,362,269 | 9,362,269 | ||||||||||||||
Demand deposits | $ | 7,413,340 | |||||||||||||||||
Stockholders’ equity | 2,273,429 | ||||||||||||||||||
Total | $ | 9,686,769 |
(1) | Investment securities based on fair market value. |
(2) | Loans are stated at gross. |
Anticipated Impact Over the Next Twelve Months as Compared to Most Likely Scenario | Anticipated Impact Over the Next Twelve Months as Compared to Most Likely Scenario | ||||||||||||||
100 bp Increase | 200 bp Increase | 100 bp Increase | 200 bp Increase | ||||||||||||
March 31, 2018 | March 31, 2017 | ||||||||||||||
Change in net interest income | $ | 111,887 | $ | 224,491 | $ | 110,730 | $ | 224,489 |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 6. | EXHIBITS |
(a) | Exhibits | |
10.1 | ||
10.2 | ||
10.3 | ||
31.1 | ||
31.2 | ||
32.1 | ||
32.2 | ||
101 | The following materials from Texas Capital Bancshares, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements |
/s/ Julie Anderson |
Julie Anderson |
Chief Financial Officer |
(Duly authorized officer and principal financial officer) |
1. | For purposes of this Exhibit A and the Agreement, unless the context requires otherwise, the following terms shall have the meanings indicated: |
a. | “Average ROE %” shall mean a company’s average reported return on equity for each year during the Performance Period, divided by three (not determined on an aggregate three year basis). Average ROE % of a component company in the Peer Group and of the Company shall be adjusted to take into account stock splits, reverse stock splits, and special dividends that occur during the Performance Period. |
b. | “Average EPS Growth” shall mean a company’s average annual growth in earnings per share for the Performance Period, determined by taking the average of each individual year’s annual growth in earnings per share (measured by taking the average of each individual year’s earnings per share growth divided by three; not determined on an aggregate three-year basis) as determined by the Committee. Average EPS Growth of a component company in the Peer Group and of the Company shall be adjusted to take into account stock splits, reverse stock splits, and special dividends that occur during the Performance Period. |
c. | “Performance Period” shall mean the period commencing on and including January 1, 2018 and ending on December 31, 2020. |
d. | “Peer Group” shall be comprised of the following companies: |
BOK Financial Corporation | CullenFrost Bankers, Inc. |
SVB Financial Group | Signature Bank |
F.N.B. Corporation | Associated Banc Corp |
IBERIABANK Corporation | Wintrust Financial Corporation |
TCF Financial Corporation | PacWest Bancorp |
Prosperity Bancshares, Inc. | Pinnacle Financial Partners, Inc. |
MB Financial, Inc. | Western Alliance Bancorporation |
First Midwest Bancorp, Inc. | Trustmark Corporation |
(i) | If during the Performance Period two component companies of the Peer Group merge or otherwise combine into a single entity, the surviving entity shall remain a component company of the Peer Group and the non-surviving entity shall be removed from the Peer Group, provided that the surviving entity continues to meet the criteria for inclusion in the Peer Group; if the surviving entity no longer meets the criteria for inclusion in the Peer Group, the surviving entity will be removed from the Peer Group for all periods after such merger or combination. |
(ii) | If during the applicable Performance Period a component company of the Peer Group merges into or otherwise combines with an entity that is not a component company of the Peer Group, such component company shall be removed from the Peer Group for all periods after such merger or combination. |
(iii) | If during the applicable Performance Period a component company of the Peer Group ceases to be a public company by becoming a private company through the “going dark” process, such component company shall be removed from the Peer Group for all periods after the component company ceases to be a public company. |
(iv) | If during the applicable Performance Period a component company of the Peer Group files a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code or liquidation under Chapter 7 of the U.S. Bankruptcy Code, such component company shall be removed from the Peer Group for all periods after such filing. |
e. | “Three Year Plan” means the three year plan approved by the Board in January 2018. |
2. | Subject to paragraph 6 below, upon the achievement of Average EPS Growth for the Performance Period, as determined by the Committee, the percentage of 25% of the Performance Units that shall vest shall be as follows: |
Average EPS Growth | % Vested and Payout |
___% | 50% |
___% | 75% |
___% | 100% |
___% | 125% |
___% | 150% |
3. | Subject to paragraph 6 below, upon the achievement of Average EPS Growth measured against Average EPS Growth for the Peer Group during the Performance Period, as determined by the Committee, the percentage |
Rank within Peer Group Based on Average EPS Growth | % Vested and Payout |
__ | 0% |
___% up to ___% | 50% |
___% up to ___% | 100% |
___% up to ___% | 125% |
___ | 150% |
4. | Subject to paragraph 6 below, upon achievement of an Average ROE % measured against the Three Year Plan, as determined by the Committee, the percentage of 25% of the Performance Units that vest shall be as follows: |
Average ROE % Against Three Year Plan | % Vested |
___% | 50% |
___% | 75% |
___% | 100% |
___% | 125% |
___% | 150% |
5. | Subject to paragraph 6 below, upon achievement of Average ROE % performance as measured against the Peer Group for the Performance Period, the percentage of 25% of the Performance Units that vest based on the Company’s ranking within its Peer Group shall be as follows: |
Rank within Peer Group Based on Average ROE% | % Vested |
___ | 0% |
___% up to ___% | 50% |
___% up to ___% | 100% |
___% up to ___% | 125% |
___ | 150% |
6. | Achievement of the performance goals set forth in paragraphs 2, 3, 4 and 5 of this Exhibit A shall be determined by the Committee, in its sole discretion, and shall be subject to the following terms and conditions: |
a. | Payouts between performance levels shall be linear. |
b. | All performance metrics assume that no capital raises occur during the Performance Period. If a capital raise occurs during the Performance Period, performance shall be adjusted to exclude the effects of the capital raise. |
c. | The Committee will review potential adjustments to achievement of the performance metrics based on Federal Funds Rate changes or any other material changes and/or impacts, as determined by the Committee in its sole discretion. |
d. | Performance goals only shall be considered achieved if the Committee determines, in its sole discretion, that the following four goals have been met, in addition to the Average EPS Growth and Average ROE % goals set forth in paragraphs 2, 3, 4 and 5 of this Exhibit A: |
(i) | Asset quality: The Company’s asset quality and credit controls are at a level of comparable high performing banks’ asset quality and credit controls; |
(ii) | Tangible Capital Ratio: The Company’s tangible capital ratio is at a level that the Committee determines, in its sole discretion, is at a level for solidly capitalized banks; |
(iii) | Efficiency Ratio: The Company’s guidepost efficiency ratio is at 60% or better (excluding from the calculation of the efficiency ratio, the expense reflected in non-interest expense related to valuation of foreclosed real estate, provided that such expenses are included as credit-related costs in determination of ROE above); and |
(iv) | Deposit Growth: At least 100% of the traditional loans held by the Company for investment are supported by core deposits. |
1. | I have reviewed this quarterly report on Form 10-Q of Texas Capital Bancshares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ C. Keith Cargill |
C. Keith Cargill |
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Texas Capital Bancshares, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Julie Anderson |
Julie Anderson |
Chief Financial Officer |
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report, fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ C. Keith Cargill |
C. Keith Cargill |
Chief Executive Officer |
Date: April 19, 2018 |
1 | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2 | The information contained in the Report, fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Julie Anderson |
Julie Anderson |
Chief Financial Officer |
Date: April 19, 2018 |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2018 |
Apr. 18, 2018 |
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Document And Entity Information [Abstract] | ||
Entity Registrant Name | TEXAS CAPITAL BANCSHARES INC/TX | |
Entity Central Index Key | 0001077428 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 49,673,923 |
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Loans held for sale | $ 1,088,565 | $ 1,007,695 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 6,000,000 | 6,000,000 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 100,000,000 | 100,000,000 |
Common Stock, shares issued | 49,670,191 | 49,643,761 |
Treasury Stock, shares | 417 | 417 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2018 |
Mar. 31, 2017 |
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Statement of Stockholders' Equity [Abstract] | ||
Income tax expense (benefit) related to net unrealized gain on available-for-sale debt securities | $ (13) | $ 1 |
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Mar. 31, 2018 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Operations and summary of significant accounting policies | OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Business Texas Capital Bancshares, Inc. (the “Company”), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the “Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional and national clientèle of commercial borrowers. We are primarily a secured lender with a majority of our loans being made to businesses headquartered or with operations in Texas. At the same time, our national lines of business continue to provide specialized lending products to businesses throughout the United States. Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2017, included in our Annual Report on Form 10-K filed with the SEC on February 14, 2018 (the “2017 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Accounting Changes ASU 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02") allows a reclassification from accumulated other comprehensive income (loss) ("AOCI") to retained earnings for the stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act. The ASU is effective in years beginning after December 15, 2018, but permits early adoption in a period for which financial statements have not yet been issued. We have elected to early adopt the ASU as of January 1, 2018. The adoption of the guidance resulted in an insignificant cumulative-effect adjustment that decreased retained earnings and increased AOCI in the first quarter of 2018. ASU 2016-15 "Statement of Cash Flows (Topic 230)" ("ASU 2016-15") is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 became effective for us on January 1, 2018 and did not have a significant impact on our financial statements. ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, ("ASU 2016-01") makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in AOCI. ASU 2016-01 became effective for us on January 1, 2018. The adoption of the guidance resulted in an insignificant cumulative-effect adjustment that increased retained earnings, with offsetting related adjustments to deferred taxes and AOCI. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation did not have a significant impact on our fair value disclosures. See Note 11 - Fair Value Disclosures. ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09") implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The guidance does not apply to revenue associated with financial instruments, including loans and investment securities that are accounted for under other GAAP, which comprises a significant portion of our revenue stream. ASU 2014-09 became effective for us on January 1, 2018 and had no material effect on how we recognize revenue or to our consolidated financial statements and disclosures. See below for additional information related to revenue generated form contracts with customers. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows:
Investment Securities Investment securities includes available-for-sale debt securities and equity securities at fair value. Debt Securities Debt securities are classified as trading, available-for-sale or held-to-maturity. Management classifies debt securities at the time of purchase and re-assesses such designation at each balance sheet date; however, transfers between categories from this re-assessment are rare. Trading Account Debt securities acquired for resale in anticipation of short-term market movements are classified as trading, with realized and unrealized gains and losses recognized in income. To date, we have not had any activity in our trading account. Held-to-Maturity Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Debt securities not classified as held-to-maturity or trading are classified as available-for-sale. Available-for-Sale Available-for-sale debt securities are stated at fair value, with the unrealized gains and losses reported as a separate component of AOCI, net of tax. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from securities. Realized gains and losses and declines in value judged to be other-than-temporary are included in gain (loss) on sale of securities. The cost of securities sold is based on the specific identification method. All debt securities are available-for-sale as of March 31, 2018 and December 31, 2017. Equity Securities Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. Equity securities without readily determinable fair values are recorded at cost less any impairment, if any. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair value of mortgage servicing rights ("MSRs") and the status of contingencies are particularly susceptible to significant change. |
EARNINGS PER COMMON SHARE |
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EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE The following table presents the computation of basic and diluted earnings per share (in thousands except per share data):
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SECURITIES |
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INVESTMENT SECURITIES | Available-for-Sale Debt Securities The following is a summary of available-for-sale debt securities (in thousands):
The amortized cost and estimated fair value of available-for-sale debt securities are presented below by contractual maturity (in thousands, except percentage data):
As of March 31, 2018 and December 31, 2017, we did not have any available-for-sale debt securities in an unrealized loss position. At March 31, 2018, available-for-sale debt securities with carrying values of $1.5 million and $6.8 million were pledged to secure certain deposits and repurchase agreements, respectively. Equity Securities Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. At March 31, 2018 and December 31, 2017, we had $14.8 million and $12.6 million, respectively, in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. At December 31, 2017, net unrealized gains of $10,000 had been recognized in AOCI. On January 1, 2018, these unrealized gains and losses were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in net income. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2018 (in thousands):
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LOANS AND ALLOWANCE FOR LOAN LOSSES |
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and allowance for credit losses | LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR LOAN LOSSES At March 31, 2018 and December 31, 2017, loans held for investment were as follows (in thousands):
Commercial Loans and Leases. Our commercial loan portfolio is comprised of lines of credit for working capital and term loans and leases to finance equipment and other business assets. Our energy production loans are generally collateralized with proven reserves based on appropriate valuation standards and take into account the risk of oil and gas price volatility. Our commercial loans and leases are underwritten after carefully evaluating and understanding the borrower’s ability to operate profitably. Our underwriting standards are designed to promote relationship banking rather than to make loans on a transaction basis. Our lines of credit typically are limited to a percentage of the value of the assets securing the line. Lines of credit and term loans typically are reviewed annually, or more frequently, as needed, and are supported by accounts receivable, inventory, equipment and other assets of our clients’ businesses. Mortgage Finance Loans. Our mortgage finance loans consist of ownership interests purchased in single-family residential mortgages funded through our mortgage finance group. We have agreements with mortgage lenders and purchase interests in individual loans they originate. The ownership interests collateralizing our mortgage finance loans are typically held on our balance sheet for 10 to 20 days, and substantially all loans are conforming loans. Substantially all mortgage loans are underwritten consistently with established programs for permanent financing with financially sound investors. Balances as of March 31, 2018 and December 31, 2017 are stated net of $246.5 million and $171.2 million of participations sold, respectively. Construction Loans. Our construction loan portfolio consists primarily of single- and multi-family residential properties and commercial projects used in manufacturing, warehousing, service or retail businesses. Our construction loans generally have terms of one to three years. We typically make construction loans to developers, builders and contractors that have an established record of successful project completion and loan repayment and have a substantial equity investment in the borrowers. Loan amounts are derived primarily from the Bank's evaluation of expected cash flows available to service debt from stabilized projects under hypothetically stressed conditions. Construction loans are also based in part upon estimates of costs and value associated with the completed project. Sources of repayment for these types of loans may be permanent loans from other lenders, sales of developed property, or an interim loan commitment from us until permanent financing is obtained. The nature of these loans makes ultimate repayment sensitive to overall economic conditions. Borrowers may not be able to correct conditions of loan defaults, increasing risk of exposure to classification, non-performing status, reserve allocation and actual credit loss and foreclosure. These loans typically have floating rates and require commitment fees. Real Estate Loans. A portion of our real estate loan portfolio is comprised of loans secured by properties other than market risk or investment-type real estate. Market risk loans are real estate loans where the primary source of repayment is expected to come from the sale, permanent financing or lease of the real property collateral. We generally provide temporary financing for commercial and residential property. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Our real estate loans generally have maximum terms of five to seven years, and we provide loans with both floating and fixed rates. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Appraised values may be highly variable due to market conditions and the impact of the inability of potential purchasers and lessees to obtain financing and a lack of transactions at comparable values. At March 31, 2018 and December 31, 2017, we had a blanket floating lien on certain real estate-secured loans, mortgage finance loans and certain investment securities used as collateral for Federal Home Loan Bank (“FHLB”) borrowings. Summary of Loan Loss Experience The allowance for loan losses is comprised of general reserves, specific reserves for impaired loans and an additional qualitative reserve based on our estimate of losses inherent in the portfolio at the balance sheet date, but not yet identified with specified loans. We consider the allowance at March 31, 2018 to be appropriate, given management's assessment of losses inherent in the portfolio as of the evaluation date, the significant growth in the loan and lease portfolio, current economic conditions in our market areas and other factors. The following tables summarize the credit risk profile of our loan portfolio by internally assigned grades and non-accrual status as of March 31, 2018 and December 31, 2017 (in thousands):
The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 and 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
The table below presents the activity in the allowance for off-balance sheet credit losses related to unfunded commitments for the three months ended March 31, 2018 and 2017 (in thousands). This allowance is recorded in other liabilities in the consolidated balance sheet.
We have traditionally maintained an additional qualitative reserve component to compensate for the uncertainty and complexity in estimating loan and lease losses including factors and conditions that may not be fully reflected in the determination and application of the allowance allocation percentages. The decrease in the additional qualitative reserve at March 31, 2018 was primarily related to an identified loss on a commercial loan and resolution of remaining uncertainty regarding the impact to our loan portfolio from Hurricanes Harvey and Irma. We believe the level of additional qualitative reserves at March 31, 2018 is warranted due to economic uncertainties and unpredictable factors that have produced losses, including those resulting from borrowers' misstatement of financial information or inaccurate certification of collateral values. Such losses are not necessarily correlated with historical loss trends or general economic conditions. Our methodology used to calculate the allowance considers historical losses; however, the historical loss rates for specific product types or credit risk grades may not fully incorporate the effects of uncertainty regarding the economy or unpredictable events. Our recorded investment in loans as of March 31, 2018, December 31, 2017 and March 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows (in thousands):
We place loans on non-accrual when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining unpaid principal amount of the loan is deemed to be fully collectible. If collectability is questionable, then cash payments are applied to principal. As of March 31, 2018, $21.8 million of our non-accrual loans were earning on a cash basis compared to none at December 31, 2017. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the original loan agreement. In accordance with ASC 310, Receivables, we have also included all restructured and formerly restructured loans in our impaired loan totals. The following tables detail our impaired loans, by portfolio class, as of March 31, 2018 and December 31, 2017 (in thousands):
Average impaired loans outstanding during the three months ended March 31, 2018 and 2017 totaled $109.9 million and $163.7 million, respectively. The table below provides an age analysis of our loans held for investment as of March 31, 2018 (in thousands):
Restructured loans are loans on which, due to the borrower’s financial difficulties, we have granted a concession that we would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of the contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, a reduction of the face amount of debt or forgiveness of either principal or accrued interest. At March 31, 2018 and December 31, 2017, we did not have any loans considered restructured that were not on non-accrual. Of the non-accrual loans at March 31, 2018 and December 31, 2017, $7.6 million and $18.8 million, respectively, met the criteria for restructured. These loans had no unfunded commitments at their respective balance sheet dates. A loan continues to qualify as restructured until a consistent payment history or change in borrower’s financial condition has been evidenced, generally over no less than twelve months. Assuming that the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that we are willing to accept for a new extension of credit with comparable risk, then the loan no longer has to be considered a restructuring if it is in compliance with the modified terms in calendar years after the year of the restructure. We did not have any loans that were restructured during the three months ended March 31, 2018. The following table summarizes the loans that were restructured during the three months ended March 31, 2017 (in thousands):
The restructured loans generally include terms to temporarily place loans on interest only, extend the payment terms or reduce the interest rate. We did not forgive any principal on the above loans. The restructuring of the loans did not have a significant impact on our allowance for loan losses at March 31, 2017. The following table provides information on how loans were modified as restructured during the three months ended March 31, 2018 and 2017 (in thousands):
As of March 31, 2018 and 2017, we did not have any loans that were restructured within the last 12 months that subsequently defaulted. |
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO |
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Real Estate Owned, Disclosure of Detailed Components [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO | OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO The table below presents a summary of the activity related to OREO (in thousands):
When foreclosure occurs, the acquired asset is recorded at fair value less selling costs, generally based on appraised value, which may result in partial charge-off of the loan. Subsequent write-downs required for declines in value are recorded through a valuation allowance or taken directly against the asset and charged to other non-interest expense. |
CERTAIN TRANSFERS OF FINANCIAL ASSETS |
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Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CERTAIN TRANSFERS OF FINANCIAL ASSETS | CERTAIN TRANSFERS OF FINANCIAL ASSETS Through our MCA business, we commit to purchase residential mortgage loans from independent correspondent lenders and deliver those loans into the secondary market via whole loan sales to independent third parties or in securitization transactions to Ginnie Mae and government sponsored entities ("GSEs") such as Fannie Mae and Freddie Mac. We have elected to carry these loans at fair value based on sales commitments, market quotes or pricing models. Gains and losses on the sale of mortgage loans held for sale and changes in the fair value of the loans held for sale are included in other non-interest income on the consolidated income statement. Residential mortgage loans held for sale are subject to both credit and interest rate risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Exposure to interest rate fluctuations is partially mitigated through forward sales contracts, which set the price for loans that will be delivered in the next 60 to 90 days. The table below presents the unpaid principal balance of loans held for sale and related fair values at March 31, 2018 and December 31, 2017 (in thousands):
No loans held for sale were on non-accrual as of March 31, 2018 or December 31, 2017. At March 31, 2018 and December 31, 2017, we had $35.2 million and $19.7 million, respectively, in outstanding balances of loans held for sale that were 90 days or more past due. The $35.2 million loans held for sale that were 90 days or more past due at March 31, 2018 included $31.1 million in loans guaranteed by U.S. government agencies that were repurchased out of Ginnie Mae securities and recorded as loans held for sale, at fair value, on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. Also included in the $35.2 million were $3.1 million in loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase if defined delinquent loan criteria are met, and therefore must record as loans held for sale on our balance sheet regardless of whether the repurchase option has been exercised. The comparable balances at December 31, 2017 were no loans repurchased and $19.0 million in loans for which we have the unilateral right but not the obligation to repurchase. The table below presents a reconciliation of the changes in loans held for sale for the three months ended March 31, 2018 and 2017 (in thousands):
We generally retain the right to service the loans sold, creating MSRs which are recorded as assets on our balance sheet. A summary of MSR activity for the three months ended March 31, 2018 and 2017 is as follows (in thousands):
We completed a sale of Ginnie Mae MSRs in the first quarter of 2018. In anticipation of this sale, the fair value of the MSRs at December 31, 2017 was adjusted, resulting in a $2.8 million impairment charge taken in the fourth quarter of 2017. At March 31, 2018 and December 31, 2017, our servicing portfolio of residential mortgage loans had an outstanding principal balance of $6.6 billion and $7.0 billion, respectively. In connection with the servicing of these loans, we hold deposits in the names of the investors who own the loans representing escrow funds for taxes and insurance, as well as collections in transit to the investors. These escrow funds are segregated and held in separate non-interest-bearing accounts at the Bank. These deposits, included in total non-interest-bearing deposits on the consolidated balance sheets, were $82.7 million at March 31, 2018 and $73.4 million at December 31, 2017. The estimated fair value of the MSR assets is obtained from an independent third party and reviewed by management on a quarterly basis. MSRs typically do not trade in an active, open market with readily observable prices; as such, the fair value of MSRs is determined using a discounted cash flow model to calculate the present value of the estimated future net servicing income. The assumptions utilized in the discounted cash flow model are based on market data for comparable assets, where available. Each quarter, management and the independent third party discuss the key assumptions used in the discounted cash flow model and make adjustments as necessary to estimate the fair value of the MSRs. As of March 31, 2018 and December 31, 2017, management used the following assumptions to determine the fair value of MSRs:
A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table (in thousands):
These sensitivities are hypothetical and actual results may differ materially due to a number of factors. The effect on fair value of a 10% variation in assumptions generally cannot be determined with confidence because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may be correlated with changes in other factors, which could impact the sensitivity analysis as presented. In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from recourse agreements and repurchase agreements. If it is determined subsequent to our sale of a loan that the loan sold is in breach of the representations or warranties made in the applicable sale agreement, we may have an obligation to either (a) repurchase the loan for the unpaid principal balance, accrued interest and related advances, (b) indemnify the purchaser against any loss it suffers or (c) make the purchaser whole for the economic benefits of the loan. Our repurchase, indemnification and make whole obligations vary based upon the terms of the applicable agreements, the nature of the asserted breach and the status of the mortgage loan at the time a claim is made. We establish reserves for estimated losses of this nature inherent in the origination of mortgage loans by estimating the losses inherent in the population of all loans sold based on trends in claims and actual loss severities experienced. The reserve includes accruals for probable contingent losses in addition to those identified in the pipeline of claims received. The estimation process is designed to include amounts based on any actual losses experienced from actual repurchase activity. Our estimated exposure related to loans previously sold and currently held for sale was $1.4 million at March 31, 2018 and $1.3 million at December 31, 2017 and is recorded in other liabilities in the consolidated balance sheets. We had $56,000 in losses due to repurchase, indemnification and make-whole obligations during the three months ended March 31, 2018 and no losses during the three months ended March 31, 2017. |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
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FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit-worthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The table below summarizes our off-balance sheet financial instruments whose contract amounts represented credit risk (in thousands):
At March 31, 2018 and December 31, 2017, we had $9.6 million and $9.1 million, respectively, in allowance for off-balance sheet credit losses related to these off-balance sheet commitments recorded in other liabilities in the consolidated balance sheets. |
REGULATORY MATTERS |
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Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY MATTERS | REGULATORY MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III regulatory capital framework (the "Basel III Capital Rules") adopted by U.S. federal regulatory authorities, among other things, (i) establishes the capital measure called "Common Equity Tier 1" ("CET1"), (ii) specifies that Tier 1 capital consist of CET1 and "Additional Tier 1 Capital" instruments meeting stated requirements, (iii) requires that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) defines the scope of the deductions/adjustments to the capital measures. The Basel III Capital Rules became effective for us on January 1, 2015 with certain transition provisions fully phasing in over a period ending on January 1, 2019. Additionally, the Basel III Capital Rules require that we maintain a capital conservation buffer with respect to each of CET1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. The capital conservation buffer is subject to a three year phase-in period that began on January 1, 2016 and will be fully phased in on January 1, 2019 at 2.5%. The required phase-in capital conservation buffer during 2018 is 1.875% and was 1.25% during 2017. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. Quantitative measures established by these regulations to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of CET1, Tier 1 and total capital to risk-weighted assets, and of Tier 1 capital to average assets, each as defined in the regulations. Management believes, as of March 31, 2018, that the Company and the Bank met all capital adequacy requirements to which they are subject. Financial institutions are categorized as well capitalized or adequately capitalized, based on minimum total risk-based, Tier 1 risk-based, CET1 and Tier 1 leverage ratios. As shown in the table below, the Company’s capital ratios exceeded the regulatory definition of adequately capitalized as of March 31, 2018 and December 31, 2017. Based upon the information in its most recently filed call report, the Bank met the capital ratios necessary to be well capitalized. The regulatory authorities can apply changes in classification of assets and such changes may retroactively subject the Company to changes in capital ratios. Any such changes could result in reducing one or more capital ratios below well-capitalized status. In addition, a change may result in imposition of additional assessments by the FDIC or could result in regulatory actions that could have a material adverse effect on our financial condition and results of operations. Because our Bank had less than $15.0 billion in total consolidated assets as of December 31, 2009, we are allowed to continue to classify our trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital. The table below summarizes our actual and required capital ratios under the Basel III Capital Rules:
Our mortgage finance loan volumes can increase significantly at month end, causing a meaningful difference between ending balance and average balance for any period. At March 31, 2018, our total mortgage finance loans were $4.7 billion compared to the average for the three months ended March 31, 2018 of $4.1 billion. As CET1, Tier 1 and total capital ratios are calculated using quarter-end risk-weighted assets and our mortgage finance loans are 100% risk-weighted (excluding MCA mortgage loans held for sale, which receive lower risk weights), the quarter-end fluctuation in these balances can significantly impact our reported ratios. Due to the actual risk profile and liquidity of this asset class, we manage capital allocated to mortgage finance loans based on changing trends in average balances and do not believe that the quarter-end balance is representative of risk characteristics that would justify higher allocations. However, we continue to monitor our capital allocation to confirm that all capital levels remain above well-capitalized levels. Dividends that may be paid by subsidiary banks are routinely restricted by various regulatory authorities. The amount that can be paid in any calendar year without prior approval of the Bank’s regulatory agencies cannot exceed the lesser of the net profits (as defined) for that year plus the net profits for the preceding two calendar years, or retained earnings. The Basel III Capital Rules further limit the amount of dividends that may be paid by our Bank. No dividends were declared or paid on our common stock during the three months ended March 31, 2018 or 2017. |
STOCK-BASED COMPENSATION |
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Compensation Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We have long-term incentive plans under which stock-based compensation awards are granted to employees and directors by the board of directors, or its designated committee. Grants are subject to vesting requirements and may include, among other things, nonqualified stock options, stock appreciation rights ("SARs"), restricted stock units ("RSUs"), restricted stock and performance units, or any combination thereof. There are 2,550,000 total shares authorized for grant under the plans. The table below summarizes our stock-based compensation expense for the three months ended March 31, 2018 and March 31, 2017 (in thousands):
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INCOME TAXES (Notes) |
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The Tax Cut and Jobs Act (the "Tax Act") enacted in December 2017 reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the Tax Act, we re-measured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded in 2017 related to the re-measurement of our deferred tax asset was $17.6 million, and no further adjustments were made during the three months ended March 31, 2018. The reconciliation of our effective income tax rate to the U.S. federal statutory tax rate is as follows:
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FAIR VALUE DISCLOSURES |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | FAIR VALUE DISCLOSURES We determine the fair market values of our assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in ASC 820, Fair Value Measurements and Disclosures. The standard describes three levels of inputs that may be used to measure fair value as provided below.
Assets and liabilities measured at fair value at March 31, 2018 and December 31, 2017 are as follows (in thousands):
Level 3 Valuations Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial instruments include those for which the determination of fair value requires significant management judgment or estimation. Currently, we measure the fair value of certain loans held for sale using third party pricing models on a recurring basis, and measure certain collateral dependent impaired loans and OREO on a nonrecurring basis as described below. Loans held for sale The following table presents a reconciliation for the three months ended March 31, 2018 of loans held for sale measured at fair value on a recurring basis using Level 3 inputs (in thousands):
The fair value of loans held for sale using Level 3, or unobservable inputs, include loans that cannot be sold through normal sale channels and thus require significant management judgment or estimation when determining the fair value. The fair value of such loans is generally based upon quoted prices of comparable loans with a liquidity discount applied. At March 31, 2018, the fair value of these loans was calculated using a weighted-average discounted price of 94.9%. Loans held for investment At March 31, 2018 and December 31, 2017, certain impaired loans held for investment were reported at fair value through a specific allocation of the allowance for loan losses based upon the fair value of the underlying collateral. The $28.3 million fair value of loans held for investment at March 31, 2018 reported above includes impaired loans held for investment with a carrying value of $39.5 million that were reduced by specific allowance allocations totaling $11.2 million based on collateral valuations utilizing Level 3 valuation inputs. The $21.2 million fair value of loans held for investment at December 31, 2017 reported above includes impaired loans with a carrying value of $32.2 million that were reduced by specific valuation allowance allocations totaling $11.0 million based on collateral valuations utilizing Level 3 valuation inputs. Fair values were based on third party appraisals, which are Level 3 valuation inputs. OREO Certain foreclosed assets, upon initial recognition, are recorded at fair value less estimated selling costs. At March 31, 2018 and December 31, 2017, OREO had a carrying value of $11.6 million and $11.7 million, respectively, net of a $2.0 million specific valuation allowance at March 31, 2018 and no valuation allowance at December 31, 2017. The fair value of OREO was computed based on third party appraisals, which are Level 3 valuation inputs. Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. This disclosure does not and is not intended to represent the fair value of the Company. A summary of the carrying amounts and estimated fair values of financial instruments is as follows (in thousands):
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Investment Securities Within the investment securities portfolio, we hold equity securities related to our non-qualified deferred compensation plan which are valued using quoted market prices for identical equity securities in an active market. These financial instruments are classified as Level 1 assets in the fair value hierarchy. The fair value of the remaining investment portfolio is based on prices obtained from independent pricing services which are based on quoted market prices for the same or similar securities, and these financial instruments are characterized as Level 2 assets in the fair value hierarchy. We have obtained documentation from our primary pricing service regarding their processes and controls applicable to pricing investment securities. In addition, on a quarterly basis we independently verify the prices that we receive from the service provider using two additional independent pricing sources. Any significant differences are investigated and resolved. Loans Held for Sale Fair value for loans held for sale is derived from quoted market prices for similar loans, in which case they are characterized as Level 2 assets in the fair value hierarchy, or is derived from third party pricing models, in which case they are characterized as Level 3 assets in the fair value hierarchy. Derivatives The estimated fair value of interest rate swaps and caps is obtained from independent pricing services based on quoted market prices for similar derivative contracts and these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. On a quarterly basis, we independently verify the fair value using an additional independent pricing source. Any significant differences are investigated and resolved. Foreign currency forward contracts are valued based upon quoted market prices obtained from independent pricing services for similar derivative contracts. As such, these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. The derivative instruments related to the loans held for sale portfolio include loan purchase commitments and forward sales commitments. Loan purchase commitments are valued based upon the fair value of the underlying mortgage loans to be purchased, which is based on observable market data for similar loans. Forward sales commitments are valued based upon quoted market prices from brokers. As such, these loan purchase commitments and forward sales commitments are characterized as Level 2 assets or liabilities in the fair value hierarchy. |
DERIVATIVE FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and other liabilities in the accompanying consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. We enter into interest rate derivative positions that are not designated as hedging instruments. These derivative positions relate to transactions in which we enter into an interest rate swap, cap and/or floor with a customer while at the same time entering into an offsetting interest rate swap, cap and/or floor with another financial institution. In connection with each swap transaction, we agree to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows our customer to effectively convert a variable rate loan to a fixed rate. Because we act as an intermediary for our customer, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on our results of operations. We also enter into foreign currency forward contracts that are not designated as hedging instruments. These derivative instruments relate to transactions in which we enter into a contract with a customer to buy or sell a foreign currency at a future date for a specified price while at the same time entering into an offsetting contract with a financial institution to buy or sell the same currency at the same future date for a specified price. These transactions allow our customers to manage their exposure to foreign currency exchange rate fluctuations. Because we act as an intermediary for our customer, changes in the fair value of the underlying derivative instruments substantially offset each other and do not have a material impact on our results of operations. We also enter into loan purchase commitment contracts with mortgage originators to purchase residential mortgage loans at a future date, as well as forward sales commitment contracts to sell residential mortgage loans at a future date as part of our MCA program. The objective of these transactions is to mitigate our exposure to interest rate risk associated with the purchase of mortgage loans held for sale. The notional amounts and estimated fair values of interest rate derivative positions outstanding at March 31, 2018 and December 31, 2017 are presented in the following tables (in thousands):
The weighted average received and paid interest rates for interest rate swaps outstanding at March 31, 2018 and December 31, 2017 were as follows:
The weighted average strike rate for outstanding interest rate caps was 2.46% at March 31, 2018 and 2.40% at December 31, 2017. Our credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. Our credit exposure associated with these instruments, net of any collateral pledged, was approximately $11.7 million at March 31, 2018 and approximately $16.7 million at December 31, 2017. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap and cap values, as well as for changes in the value of forward sales commitments. At March 31, 2018, we had pledged to counterparties $5.3 million in cash collateral for these derivatives, of which $5.0 million was included in interest-bearing deposits in other banks and $270,000 was included in accrued interest receivable and other assets, and counterparties had pledged to us $5.6 million in cash collateral included in interest-bearing deposit liabilities. At December 31, 2017, we had pledged to counterparties $15.2 million in cash collateral for these derivatives, of which $14.0 million was included in interest-bearing deposits in other banks and $1.2 million was included in accrued interest receivable and other assets. We also enter into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are either a participant or a lead bank. The risk participation agreements entered into by us as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. We are party to 14 risk participation agreements where we are a participant bank having a notional amount of $145.9 million at March 31, 2018, compared to 15 risk participation agreements having a notional amount of $157.1 million at December 31, 2017. The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $115,000 at March 31, 2018 and $221,000 at December 31, 2017. The fair value of these exposures was insignificant to the consolidated financial statements at both March 31, 2018 and December 31, 2017. Risk participation agreements entered into by us as the lead bank provide credit protection to us should the borrower fail to perform on its interest rate derivative contract with us. We are party to 10 risk participation agreements where we are the lead bank having a notional amount of $107.2 million at March 31, 2018, compared to 10 agreements having a notional amount of $86.3 million at December 31, 2017. |
NEW ACCOUNTING PRONOUNCEMENTS |
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Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS ASU 2018-03 "Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) " ("ASU 2018-03") clarifies certain aspects of the guidance issued in ASU 2016-01 including: the ability to irrevocably elect to change the measurement approach for equity securities measured using the practical expedient (at cost plus or minus observable transactions less impairment) to a fair value method in accordance with Topic 820, Fair Value Measurement; clarification that if an observable transaction occurs for such securities, the adjustment is as of the observable transaction date; clarification that the prospective transition approach for equity securities without a readily determinable fair value is meant only for instances in which the practical expedient is elected; and various other clarifications. The ASU is effective for us July 1, 2018 and early adoption is permitted. We do not expect this ASU to have a material impact on our consolidated financial statements. ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2016-13") requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. ASU 2016-13 will be effective for us on January 1, 2020. We are evaluating the impact adoption of ASU 2016-13 will have on our consolidated financial statements and disclosures. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption could be significantly influenced by the composition, characteristics and quality of our loan portfolio as well as the prevailing economic conditions and forecasts as of the adoption date. As part of our evaluation process, we have established a steering committee and working group that includes individuals from various functional areas to assess processes, portfolio segmentation, systems requirements and needed resources to implement this new accounting standard. ASU 2016-02 "Leases (Topic 842)" ("ASU 2016-02") requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 will be effective for us on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of the earliest period presented with the option to elect certain practical expedients. We are currently evaluating a third party software solution to assist with the accounting under the new standard. Our operating leases relate primarily to office space and bank branches. We expect recorded assets and liabilities to increase upon adoption of the standard as it relates to operating leases in which we are the lessee. |
Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Texas Capital Bancshares, Inc. (the “Company”), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the “Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional and national clientèle of commercial borrowers. We are primarily a secured lender with a majority of our loans being made to businesses headquartered or with operations in Texas. At the same time, our national lines of business continue to provide specialized lending products to businesses throughout the United States. |
Basis of Presentation | Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”) and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted. In the opinion of management, the interim financial statements include all normal and recurring adjustments and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the Securities and Exchange Commission (“SEC”). Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2017, included in our Annual Report on Form 10-K filed with the SEC on February 14, 2018 (the “2017 Form 10-K”). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of stock-based compensation awards, the fair value of mortgage servicing rights ("MSRs") and the status of contingencies are particularly susceptible to significant change. |
EARNINGS PER COMMON SHARE (Tables) |
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Schedule of computation of basic and diluted earnings per share | The following table presents the computation of basic and diluted earnings per share (in thousands except per share data):
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INVESTMENT SECURITIES (Tables) |
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Available-for-sale Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of summary of securities | The following is a summary of available-for-sale debt securities (in thousands):
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Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value of available-for-sale debt securities are presented below by contractual maturity (in thousands, except percentage data):
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Summary of unrealized and realized gains and losses recognized on equity securities | The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2018 (in thousands):
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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) |
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Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of loans held for investments | At March 31, 2018 and December 31, 2017, loans held for investment were as follows (in thousands):
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Schedule of the credit risk profile of loan portfolio by internally assigned grades and non-accrual status | The following tables summarize the credit risk profile of our loan portfolio by internally assigned grades and non-accrual status as of March 31, 2018 and December 31, 2017 (in thousands):
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Schedule of activity in the reserve for loan losses by portfolio segment | The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 and 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
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Schedule of allowance for credit losses related to unfunded commitments | The table below presents the activity in the allowance for off-balance sheet credit losses related to unfunded commitments for the three months ended March 31, 2018 and 2017 (in thousands). This allowance is recorded in other liabilities in the consolidated balance sheet.
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Schedule of recorded investment in loans related to each balance in the allowance for loan losses | Our recorded investment in loans as of March 31, 2018, December 31, 2017 and March 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of our impairment methodology was as follows (in thousands):
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Schedule of impaired loans, by portfolio class | The following tables detail our impaired loans, by portfolio class, as of March 31, 2018 and December 31, 2017 (in thousands):
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Schedule of an age analysis of accruing past due loans | The table below provides an age analysis of our loans held for investment as of March 31, 2018 (in thousands):
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Schedule of loans that have been restructured | The following table summarizes the loans that were restructured during the three months ended March 31, 2017 (in thousands):
The following table provides information on how loans were modified as restructured during the three months ended March 31, 2018 and 2017 (in thousands):
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OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the activity related to OREO | The table below presents a summary of the activity related to OREO (in thousands):
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CERTAIN TRANSFERS OF FINANCIAL ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Held for Sale | The table below presents a reconciliation of the changes in loans held for sale for the three months ended March 31, 2018 and 2017 (in thousands):
The table below presents the unpaid principal balance of loans held for sale and related fair values at March 31, 2018 and December 31, 2017 (in thousands):
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Servicing Asset at Amortized Cost | We generally retain the right to service the loans sold, creating MSRs which are recorded as assets on our balance sheet. A summary of MSR activity for the three months ended March 31, 2018 and 2017 is as follows (in thousands):
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Schedule of Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities | As of March 31, 2018 and December 31, 2017, management used the following assumptions to determine the fair value of MSRs:
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Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table (in thousands):
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FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of financial instruments with off-balance sheet risk | The table below summarizes our off-balance sheet financial instruments whose contract amounts represented credit risk (in thousands):
At March 31, 2018 and December 31, 2017, we had $9.6 million and $9.1 million, respectively, in allowance for off-balance sheet credit losses related to these off-balance sheet commitments recorded in other liabilities in the consolidated balance sheets. |
REGULATORY MATTERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of capital ratios | The table below summarizes our actual and required capital ratios under the Basel III Capital Rules:
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STOCK-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Related Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation costs | tock-based compensation expense for the three months ended March 31, 2018 and March 31, 2017 (in thousands):
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Schedule of unrecognized compensation costs |
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INCOME TAXES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of our effective income tax rate to the U.S. federal statutory tax rate is as follows:
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FAIR VALUE DISCLOSURES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value at March 31, 2018 and December 31, 2017 are as follows (in thousands):
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Summary of the carrying amounts and estimated fair values of financial instruments | A summary of the carrying amounts and estimated fair values of financial instruments is as follows (in thousands):
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Reconciliation of loans held for sale | The following table presents a reconciliation for the three months ended March 31, 2018 of loans held for sale measured at fair value on a recurring basis using Level 3 inputs (in thousands):
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of notional amounts and estimated fair values of interest rate derivative positions | The notional amounts and estimated fair values of interest rate derivative positions outstanding at March 31, 2018 and December 31, 2017 are presented in the following tables (in thousands):
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Schedule of the weighted-average receive and pay interest rate swaps | The weighted average received and paid interest rates for interest rate swaps outstanding at March 31, 2018 and December 31, 2017 were as follows:
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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
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Numerator: | ||||
Net income | $ 71,945 | $ 42,542 | ||
Preferred stock dividends | 2,438 | 2,438 | ||
Net income available to common stockholders | $ 69,507 | $ 40,104 | ||
Denominator: | ||||
Denominator for basic earnings per share—weighted average shares | 49,650,884 | 49,535,959 | ||
Effect of employee stock-based awards | [1] | 255,794 | 260,947 | |
Effect of warrants to purchase common stock | 446,819 | 437,324 | ||
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions | 50,353,497 | 50,234,230 | ||
Basic earnings per common share (usd per share) | $ 1.40 | $ 0.81 | ||
Diluted earnings per common share (usd per share) | $ 1.38 | $ 0.80 | ||
Stock options, SARs and RSUs excluded from computation of diluted EPS | 5,139 | 3,000 | ||
|
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Summary of Available-for-Sale Securities | |||||
Estimated Fair Value | $ 24,929 | $ 23,511 | |||
Residential mortgage-backed securities | |||||
Summary of Available-for-Sale Securities | |||||
Amortized Cost | [1] | 9,534 | 10,297 | ||
Gross Unrealized Gains | 585 | 648 | |||
Gross Unrealized Losses | 0 | 0 | |||
Estimated Fair Value | [1] | $ 10,119 | $ 10,945 | ||
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INVESTMENT SECURITIES (Details 3) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2018
USD ($)
| |
Available-for-sale Securities [Abstract] | |
Realized Investment Gains (Losses) | $ (212) |
Gain (Loss) on Sale of Equity Investments | 0 |
Unrealized Gain (Loss) on Investments | $ (212) |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Loans and Leases Receivable, Net Reported Amount | ||||
Commercial | $ 9,461,024 | $ 9,189,811 | ||
Mortgage finance | 4,689,938 | 5,308,160 | ||
Construction | 2,224,403 | 2,166,208 | ||
Real estate | 3,834,758 | 3,794,577 | ||
Consumer | 47,311 | 48,684 | ||
Leases | 276,303 | 264,903 | ||
Gross loans held for investment | 20,533,737 | 20,772,343 | $ 16,746,202 | |
Deferred income (net of direct origination costs) | (102,027) | (97,931) | ||
Allowance for loan losses | (190,898) | (184,655) | $ (172,013) | $ (168,126) |
Loans held for investment, net | 20,240,812 | 20,489,757 | ||
Participating mortgage finance loans | $ 246,500 | $ 171,200 |
LOANS AND ALLOWANCE FOR LOAN LOSSES - Credit Risk Profile (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | $ 9,461,024 | $ 9,189,811 | |
Mortgage finance | 4,689,938 | 5,308,160 | |
Construction | 2,224,403 | 2,166,208 | |
Real estate | 3,834,758 | 3,794,577 | |
Consumer | 47,311 | 48,684 | |
Leases | 276,303 | 264,903 | |
Gross loans held for investment | 20,533,737 | 20,772,343 | $ 16,746,202 |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 9,210,706 | 8,967,471 | |
Mortgage finance | 4,689,938 | 5,308,160 | |
Construction | 2,210,513 | 2,152,654 | |
Real estate | 3,743,437 | 3,706,541 | |
Consumer | 47,146 | 48,591 | |
Leases | 262,356 | 249,865 | |
Gross loans held for investment | 20,164,096 | 20,433,282 | |
Special mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 52,764 | 19,958 | |
Mortgage finance | 0 | 0 | |
Construction | 13,890 | 13,554 | |
Real estate | 57,871 | 53,652 | |
Consumer | 0 | 0 | |
Leases | 0 | 495 | |
Gross loans held for investment | 124,525 | 87,659 | |
Substandard-accruing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 75,271 | 102,651 | |
Mortgage finance | 0 | 0 | |
Construction | 0 | 0 | |
Real estate | 32,263 | 32,671 | |
Consumer | 93 | 93 | |
Leases | 13,947 | 14,543 | |
Gross loans held for investment | 121,574 | 149,958 | |
Non-accrual | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial | 122,283 | 99,731 | |
Mortgage finance | 0 | 0 | |
Construction | 0 | 0 | |
Real estate | 1,187 | 1,713 | |
Consumer | 72 | 0 | |
Leases | 0 | 0 | |
Gross loans held for investment | $ 123,542 | $ 101,444 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Financing Receivable Modifications Non Accrual Loans Met Criteria For Restrucutred | $ 7,600 | $ 18,800 | |||
Reserve for loan losses: | |||||
Beginning balance | $ 184,655 | $ 168,126 | |||
Provision for loan losses | 11,448 | 9,575 | |||
Charge-offs | 5,667 | 9,233 | |||
Recoveries | 462 | 3,545 | |||
Net charge-offs (recoveries) | 5,205 | 5,688 | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 34,921 | $ 34,833 | |||
Loans collectively evaluated for impairment | 155,977 | 137,180 | |||
Ending balance | 184,655 | 168,126 | 190,898 | 184,655 | 172,013 |
Commercial | |||||
Reserve for loan losses: | |||||
Beginning balance | 118,806 | 128,768 | |||
Provision for loan losses | 17,546 | 8,147 | |||
Charge-offs | 5,667 | 9,233 | |||
Recoveries | 360 | 3,381 | |||
Net charge-offs (recoveries) | 5,307 | 5,852 | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 34,897 | 34,595 | |||
Loans collectively evaluated for impairment | 96,148 | 96,468 | |||
Ending balance | 118,806 | 128,768 | 131,045 | 118,806 | 131,063 |
Mortgage finance loans | |||||
Reserve for loan losses: | |||||
Beginning balance | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net charge-offs (recoveries) | 0 | 0 | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | 0 | 0 |
Construction | |||||
Reserve for loan losses: | |||||
Beginning balance | 19,273 | 13,144 | |||
Provision for loan losses | (518) | (124) | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 101 | |||
Net charge-offs (recoveries) | 0 | (101) | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 18,755 | 13,121 | |||
Ending balance | 19,273 | 13,144 | 18,755 | 19,273 | 13,121 |
Real Estate | |||||
Reserve for loan losses: | |||||
Beginning balance | 34,287 | 19,149 | |||
Provision for loan losses | (200) | 3,270 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 24 | 50 | |||
Net charge-offs (recoveries) | (24) | (50) | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 22 | 195 | |||
Loans collectively evaluated for impairment | 34,089 | 22,274 | |||
Ending balance | 34,287 | 19,149 | 34,111 | 34,287 | 22,469 |
Consumer | |||||
Reserve for loan losses: | |||||
Beginning balance | 357 | 241 | |||
Provision for loan losses | (178) | (31) | |||
Charge-offs | 0 | 0 | |||
Recoveries | 59 | 5 | |||
Net charge-offs (recoveries) | (59) | (5) | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 2 | 30 | |||
Loans collectively evaluated for impairment | 236 | 185 | |||
Ending balance | 357 | 241 | 238 | 357 | 215 |
Leases | |||||
Reserve for loan losses: | |||||
Beginning balance | 3,542 | 1,124 | |||
Provision for loan losses | (18) | 325 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 19 | 8 | |||
Net charge-offs (recoveries) | (19) | (8) | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 13 | |||
Loans collectively evaluated for impairment | 3,543 | 1,444 | |||
Ending balance | 3,542 | 1,124 | 3,543 | 3,542 | 1,457 |
Unallocated | |||||
Reserve for loan losses: | |||||
Beginning balance | 8,390 | 5,700 | |||
Provision for loan losses | (5,184) | (2,012) | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Net charge-offs (recoveries) | 0 | 0 | |||
Period end amount allocated to: | |||||
Loans individually evaluated for impairment | 0 | 0 | |||
Loans collectively evaluated for impairment | 3,206 | 3,688 | |||
Ending balance | $ 8,390 | $ 5,700 | $ 3,206 | $ 8,390 | $ 3,688 |
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Credit Losses Related to Unfunded Commitments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Provision for off-balance sheet credit losses | $ 12,000 | $ 9,000 |
Unfunded Loan Commitment | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 9,071 | 11,422 |
Provision for off-balance sheet credit losses | 552 | (575) |
Ending balance | $ 9,623 | $ 10,847 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | $ 124,465 | $ 102,684 | $ 149,427 |
Loans collectively evaluated for impairment | 20,409,272 | 20,669,659 | 16,596,775 |
Gross loans held for investment | 20,533,737 | 20,772,343 | 16,746,202 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 123,206 | 100,676 | 143,632 |
Loans collectively evaluated for impairment | 9,337,818 | 9,089,135 | 7,336,853 |
Gross loans held for investment | 9,461,024 | 9,189,811 | 7,480,485 |
Mortgage finance loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 0 | 0 |
Loans collectively evaluated for impairment | 4,689,938 | 5,308,160 | 3,371,598 |
Gross loans held for investment | 4,689,938 | 5,308,160 | 3,371,598 |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 0 | 0 |
Loans collectively evaluated for impairment | 2,224,403 | 2,166,208 | 2,108,611 |
Gross loans held for investment | 2,224,403 | 2,166,208 | 2,108,611 |
Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 1,187 | 2,008 | 5,512 |
Loans collectively evaluated for impairment | 3,833,571 | 3,792,569 | 3,557,624 |
Gross loans held for investment | 3,834,758 | 3,794,577 | 3,563,136 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 72 | 0 | 200 |
Loans collectively evaluated for impairment | 47,239 | 48,684 | 36,059 |
Gross loans held for investment | 47,311 | 48,684 | 36,259 |
Leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans individually evaluated for impairment | 0 | 0 | 83 |
Loans collectively evaluated for impairment | 276,303 | 264,903 | 186,030 |
Gross loans held for investment | $ 276,303 | $ 264,903 | $ 186,113 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Non-accrual loans earning on a cash basis | $ 21,800,000 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Commercial business loans | Energy | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 21,426 | ||
With no related allowance recorded: | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 26,613 | 39,357 | |
Unpaid principal balance | 27,823 | 41,955 | |
Related allowance | 0 | 0 | |
Average recorded investment | 35,109 | 61,709 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Commercial business loans | Business loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 4,500 | 16,835 | |
Unpaid principal balance | 4,534 | 18,257 | |
Related allowance | 0 | 0 | |
Average recorded investment | 12,723 | 22,964 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Commercial business loans | Energy | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 21,044 | ||
Unpaid principal balance | 22,220 | 22,602 | |
Related allowance | 0 | 0 | |
Average recorded investment | 21,299 | 36,579 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Construction | Market risk | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Real estate | Market risk | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Real estate | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1,069 | 1,096 | |
Unpaid principal balance | 1,069 | 1,096 | |
Related allowance | 0 | 0 | |
Average recorded investment | 1,087 | 2,166 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Real estate | Secured by 1-4 family | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With no related allowance recorded: | Leases | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 97,852 | 63,327 | |
Unpaid principal balance | 100,656 | 75,807 | |
Related allowance | 34,921 | 24,417 | |
Average recorded investment | 74,836 | 69,068 | |
Interest income recognized | 0 | 6 | |
With an allowance recorded: | Commercial business loans | Business loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 68,298 | 18,645 | |
Unpaid principal balance | 69,719 | 19,020 | |
Related allowance | 21,745 | 2,544 | |
Average recorded investment | 35,196 | 16,960 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | Commercial business loans | Energy | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 29,364 | 43,770 | |
Unpaid principal balance | 30,747 | 55,875 | |
Related allowance | 13,152 | 21,772 | |
Average recorded investment | 38,968 | 50,867 | |
Interest income recognized | 0 | 6 | |
With an allowance recorded: | Construction | Market risk | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 27 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | Real estate | Market risk | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 295 | |
Unpaid principal balance | 0 | 295 | |
Related allowance | 0 | 6 | |
Average recorded investment | 197 | 485 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | Real estate | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 499 | |
Unpaid principal balance | 0 | 499 | |
Related allowance | 0 | 75 | |
Average recorded investment | 333 | 166 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | Real estate | Secured by 1-4 family | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 118 | 118 | |
Unpaid principal balance | 118 | 118 | |
Related allowance | 22 | 20 | |
Average recorded investment | 118 | 516 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 72 | 0 | |
Unpaid principal balance | 72 | 0 | |
Related allowance | 2 | 0 | |
Average recorded investment | 24 | 33 | |
Interest income recognized | 0 | 0 | |
With an allowance recorded: | Leases | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 14 | |
Interest income recognized | 0 | 0 | |
Combined: | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 124,465 | 102,684 | |
Unpaid principal balance | 128,479 | 117,762 | |
Related allowance | 34,921 | 24,417 | |
Average recorded investment | 109,945 | $ 163,700 | 130,777 |
Interest income recognized | 0 | 6 | |
Combined: | Commercial business loans | Business loans | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 72,798 | 35,480 | |
Unpaid principal balance | 74,253 | 37,277 | |
Related allowance | 21,745 | 2,544 | |
Average recorded investment | 47,919 | 39,924 | |
Interest income recognized | 0 | 0 | |
Combined: | Commercial business loans | Energy | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 50,408 | 65,196 | |
Unpaid principal balance | 52,967 | 78,477 | |
Related allowance | 13,152 | 21,772 | |
Average recorded investment | 60,267 | 87,446 | |
Interest income recognized | 0 | 6 | |
Combined: | Construction | Market risk | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 27 | |
Interest income recognized | 0 | 0 | |
Combined: | Real estate | Market risk | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 295 | |
Unpaid principal balance | 0 | 295 | |
Related allowance | 0 | 6 | |
Average recorded investment | 197 | 485 | |
Interest income recognized | 0 | 0 | |
Combined: | Real estate | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1,069 | 1,595 | |
Unpaid principal balance | 1,069 | 1,595 | |
Related allowance | 0 | 75 | |
Average recorded investment | 1,420 | 2,332 | |
Interest income recognized | 0 | 0 | |
Combined: | Real estate | Secured by 1-4 family | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 118 | 118 | |
Unpaid principal balance | 118 | 118 | |
Related allowance | 22 | 20 | |
Average recorded investment | 118 | 516 | |
Interest income recognized | 0 | 0 | |
Combined: | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 72 | 0 | |
Unpaid principal balance | 72 | 0 | |
Related allowance | 2 | 0 | |
Average recorded investment | 24 | 33 | |
Interest income recognized | 0 | 0 | |
Combined: | Leases | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 0 | 14 | |
Interest income recognized | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) $ in Thousands |
Mar. 31, 2018
USD ($)
|
|||
---|---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $ 85,659 | |||
Non-accrual | 123,542 | |||
Current | 20,324,536 | |||
Total | 20,533,737 | |||
Premium finance loans past due 90 days and still accruing | 4,100 | |||
Commercial business loans | Business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 59,140 | |||
Non-accrual | 71,875 | |||
Current | 8,092,786 | |||
Total | 8,223,801 | |||
Commercial business loans | Energy | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
Non-accrual | 50,408 | |||
Current | 1,186,815 | |||
Total | 1,237,223 | |||
Mortgage finance loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
Non-accrual | 0 | |||
Current | 4,689,938 | |||
Total | 4,689,938 | |||
Construction | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,464 | |||
Non-accrual | 0 | |||
Current | 2,132,202 | |||
Total | 2,133,666 | |||
Construction | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
Non-accrual | 0 | |||
Current | 57,565 | |||
Total | 57,565 | |||
Construction | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 4,524 | |||
Non-accrual | 0 | |||
Current | 28,648 | |||
Total | 33,172 | |||
Real estate | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 12,520 | |||
Non-accrual | 0 | |||
Current | 2,697,219 | |||
Total | 2,709,739 | |||
Real estate | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 420 | |||
Non-accrual | 1,069 | |||
Current | 831,388 | |||
Total | 832,877 | |||
Real estate | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 6,205 | |||
Non-accrual | 118 | |||
Current | 285,819 | |||
Total | 292,142 | |||
Consumer | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 443 | |||
Non-accrual | 72 | |||
Current | 46,796 | |||
Total | 47,311 | |||
Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 943 | |||
Non-accrual | 0 | |||
Current | 275,360 | |||
Total | 276,303 | |||
30-59 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 63,142 | |||
30-59 Days Past Due | Commercial business loans | Business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 47,071 | |||
30-59 Days Past Due | Commercial business loans | Energy | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
30-59 Days Past Due | Mortgage finance loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
30-59 Days Past Due | Construction | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,464 | |||
30-59 Days Past Due | Construction | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
30-59 Days Past Due | Construction | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
30-59 Days Past Due | Real estate | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 11,092 | |||
30-59 Days Past Due | Real estate | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 53 | |||
30-59 Days Past Due | Real estate | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,894 | |||
30-59 Days Past Due | Consumer | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 443 | |||
30-59 Days Past Due | Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 125 | |||
60-89 Days Past Due | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 8,954 | |||
60-89 Days Past Due | Commercial business loans | Business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 6,392 | |||
60-89 Days Past Due | Commercial business loans | Energy | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
60-89 Days Past Due | Mortgage finance loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
60-89 Days Past Due | Construction | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
60-89 Days Past Due | Construction | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
60-89 Days Past Due | Construction | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
60-89 Days Past Due | Real estate | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 750 | |||
60-89 Days Past Due | Real estate | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 367 | |||
60-89 Days Past Due | Real estate | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 1,263 | |||
60-89 Days Past Due | Consumer | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | |||
60-89 Days Past Due | Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 182 | |||
Greater Than 90 Days and Accruing(1) | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 13,563 | [1] | ||
Greater Than 90 Days and Accruing(1) | Commercial business loans | Business loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 5,677 | [1] | ||
Greater Than 90 Days and Accruing(1) | Commercial business loans | Energy | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | [1] | ||
Greater Than 90 Days and Accruing(1) | Mortgage finance loans | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | [1] | ||
Greater Than 90 Days and Accruing(1) | Construction | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | [1] | ||
Greater Than 90 Days and Accruing(1) | Construction | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | [1] | ||
Greater Than 90 Days and Accruing(1) | Construction | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 4,524 | [1] | ||
Greater Than 90 Days and Accruing(1) | Real estate | Market risk | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 678 | [1] | ||
Greater Than 90 Days and Accruing(1) | Real estate | Commercial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | [1] | ||
Greater Than 90 Days and Accruing(1) | Real estate | Secured by 1-4 family | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 2,048 | [1] | ||
Greater Than 90 Days and Accruing(1) | Consumer | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | 0 | [1] | ||
Greater Than 90 Days and Accruing(1) | Leases | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total past due | $ 636 | [1] | ||
|
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
| |
Financing Receivable, Modifications [Line Items] | |
Number of restructured loans | 2 |
Pre-restructuring outstanding recorded investment | $ 1,669 |
Post-restructuring outstanding recorded investment | $ 1,669 |
Energy loans | |
Financing Receivable, Modifications [Line Items] | |
Number of restructured loans | 1 |
Pre-restructuring outstanding recorded investment | $ 1,070 |
Post-restructuring outstanding recorded investment | $ 1,070 |
Commercial business loans | |
Financing Receivable, Modifications [Line Items] | |
Number of restructured loans | 1 |
Pre-restructuring outstanding recorded investment | $ 599 |
Post-restructuring outstanding recorded investment | $ 599 |
LOANS AND ALLOWANCE FOR LOAN LOSSES - TDR Summary (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Mar. 31, 2017 |
---|---|---|
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | $ 0 | $ 1,669 |
Extended maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | 0 | 1,669 |
Adjusted payment schedule | ||
Financing Receivable, Modifications [Line Items] | ||
Details of how restructured loans were modified | $ 0 | $ 0 |
OREO AND VALUATION ALLOWANCE FOR LOSSES ON OREO (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Real Estate Acquired Through Foreclosure [Roll Forward] | ||
Beginning balance | $ 11,742 | $ 18,961 |
Additions | 0 | 0 |
Sales | (184) | (128) |
Valuation allowance for OREO | 2,000 | 0 |
Ending balance | $ 9,558 | $ 18,833 |
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Loans and Leases Receivable Disclosure [Line Items] | |||
Fair value over/(under) outstanding balance | $ (3,338,000) | $ (1,576,000) | |
Outstanding principal balance of loans in servicing portfolio Financial Assets, Principal Amount Outstanding | 6,600,000,000 | 7,000,000,000 | |
Escrow fund deposits related to servicing assets | 82,700,000 | 73,400,000 | |
Estimated exposure related to servicing assets | 1,400,000 | $ 1,300,000 | |
Loss Contingency Accrual, Payments | 56,000 | ||
Losses due to repurchase, indemnification or make-whole obligations | $ 0 | ||
Total past due | 85,659,000 | ||
Loans held for sale, at fair value | 1,088,565,000 | 1,011,004,000 | |
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Maturity Greater than 90 Days [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total past due | 35,200,000 | 19,700,000 | |
Government Guaranteed Mortgage Loans upon Foreclosure Receivable [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | Maturity Greater than 90 Days [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total past due | 3,100,000 | 19,000,000 | |
Loans held for sale, at fair value | $ 31,100,000 | ||
Small Business Administration Loans [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Fair value over/(under) outstanding balance | $ 3,300,000 |
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 1) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Transfers and Servicing [Abstract] | ||
Unpaid principal balance | $ 1,091,903 | $ 1,009,271 |
Fair value | 1,088,565 | 1,007,695 |
Fair value over/(under) outstanding balance | $ (3,338) | (1,576) |
Loans held for sale carried at lower of cost or market | $ 0 |
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 2) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Beginning balance(1) | $ 1,011,004 | $ 968,929 | |
Loans purchased | 1,479,006 | 1,299,542 | |
Payments and loans sold(1) | (1,399,683) | (1,399,800) | |
Change in fair value | (1,762) | 15,976 | |
Ending balance(1) | $ 1,088,565 | $ 884,647 | |
Loans held for sale carried at lower of cost or market | $ 0 |
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 3) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
|
Valuation allowance: | ||
MSRs, net(1) | $ 76,561 | $ 45,526 |
MSR | ||
MSRs: | ||
Balance, beginning of year | 88,150 | 28,536 |
Capitalized servicing rights | 16,750 | 18,094 |
Amortization | (2,741) | (1,104) |
Sales | (25,598) | 0 |
Balance, end of period | 76,561 | 45,526 |
Valuation allowance: | ||
Balance, beginning of year | 2,823 | 0 |
Increase (decrease) in valuation allowance | (2,823) | 0 |
Balance, end of period | 0 | 0 |
MSRs, net(1) | $ 82,274 | $ 48,013 |
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 4) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2017 |
|
Servicing Assets at Fair Value [Line Items] | |||
Average discount rates (percent) | 9.61% | 9.90% | |
Expected prepayment speeds (percent) | 8.63% | 9.99% | |
Weighted average life, in years | 7 years 7 months 6 days | 7 years | |
Servicing Asset [Member] | |||
Servicing Assets at Fair Value [Line Items] | |||
Impairment charges | $ 2.8 |
CERTAIN TRANSFERS OF FINANCIAL ASSETS (Details 5) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Transfers and Servicing [Abstract] | ||
50 bp adverse change in prepayment speed | $ (8,142) | $ (11,896) |
100 bp adverse change in prepayment speed | $ (20,353) | $ (28,226) |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financing receivable allowance for credit losses off balance sheet liability | $ 9,600 | $ 9,100 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments whose contract amounts represented credit risk | 7,108,257 | 6,957,847 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments whose contract amounts represented credit risk | $ 241,335 | $ 230,958 |
REGULATORY MATTERS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2009 |
|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Assets | $ 24,449,147 | $ 25,075,645 | $ 15,000,000 | |
Common Equity Tier 1 Capital | $ 2,103,637 | $ 2,033,830 | ||
Tier 1 capital | 9.88% | 9.52% | ||
Total capital | 11.89% | 11.50% | ||
Tier 1 leverage | 9.88% | 9.15% | ||
Mortgage finance | $ 4,689,938 | $ 5,308,160 | ||
Mortgage finance, average balance | $ 4,100,000 | |||
Common Equity Tier 1, Capital to Risk Weighted Assets | 8.80% | 8.45% | ||
Capital | $ 2,843,072 | $ 2,768,153 | ||
Tier One Risk Based Capital | 2,361,055 | 2,293,016 | ||
Tier One Leverage Capital | $ 2,361,055 | 2,293,016 | ||
Common Stock, Dividends, Per Share, Declared | $ 0 | $ 0 | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0 | $ 0 | ||
Subsidiaries [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1 Capital | $ 2,064,966 | $ 1,992,152 | ||
Tier 1 capital | 9.30% | 8.94% | ||
Total capital | 11.07% | 10.67% | ||
Tier 1 leverage | 9.31% | 8.59% | ||
Common Equity Tier 1, Capital to Risk Weighted Assets | 8.64% | 8.28% | ||
Common Equity Tier 1, Capital Required to be Well Capitalized | $ 1,553,027 | $ 1,563,929 | ||
Common Equity Tier 1, Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | ||
Capital | $ 2,645,863 | $ 2,567,961 | ||
Capital Required to be Well Capitalized | $ 2,389,272 | $ 2,406,044 | ||
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | ||
Tier One Risk Based Capital | $ 2,222,384 | $ 2,151,338 | ||
Tier One Risk Based Capital Required to be Well Capitalized | $ 1,911,417 | $ 1,924,835 | ||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% | ||
Tier One Leverage Capital | $ 2,222,384 | $ 2,151,338 | ||
Tier One Leverage Capital Required to be Well Capitalized | $ 1,194,044 | $ 1,252,680 | ||
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% | ||
Advanced Approach, Phase-In Schedule [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1, Capital Required for Capital Adequacy | $ 1,523,915 | $ 1,384,448 | ||
Common Equity Tier 1, Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% | ||
Capital Required for Capital Adequacy | $ 2,360,574 | $ 2,227,221 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.875% | 9.25% | ||
Tier One Risk Based Capital Required for Capital Adequacy | $ 1,882,483 | $ 1,745,659 | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.875% | 7.25% | ||
Tier One Leverage Capital Required for Capital Adequacy | $ 955,731 | $ 1,002,494 | ||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | ||
Advanced Approach, Phase-In Schedule [Member] | Subsidiaries [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1, Capital Required for Capital Adequacy | $ 1,523,161 | $ 1,383,475 | ||
Common Equity Tier 1, Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% | ||
Capital Required for Capital Adequacy | $ 2,359,406 | $ 2,225,591 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.875% | 9.25% | ||
Tier One Risk Based Capital Required for Capital Adequacy | $ 1,881,552 | $ 1,744,382 | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.875% | 7.25% | ||
Tier One Leverage Capital Required for Capital Adequacy | $ 955,236 | $ 1,002,144 | ||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | ||
Advanced Approach, Phased-In [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1, Capital Required for Capital Adequacy | $ 1,673,318 | $ 1,685,464 | ||
Common Equity Tier 1, Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 7.00% | ||
Capital Required for Capital Adequacy | $ 2,509,978 | $ 2,528,196 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 10.50% | ||
Tier One Risk Based Capital Required for Capital Adequacy | $ 2,031,887 | $ 2,046,635 | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 8.50% | ||
Tier One Leverage Capital Required for Capital Adequacy | $ 955,731 | $ 1,002,494 | ||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | ||
Advanced Approach, Phased-In [Member] | Subsidiaries [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common Equity Tier 1, Capital Required for Capital Adequacy | $ 1,672,490 | $ 1,684,231 | ||
Common Equity Tier 1, Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 7.00% | ||
Capital Required for Capital Adequacy | $ 2,508,735 | $ 2,526,347 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 10.50% | ||
Tier One Risk Based Capital Required for Capital Adequacy | $ 2,030,881 | $ 2,045,138 | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 8.50% | ||
Tier One Leverage Capital Required for Capital Adequacy | $ 955,236 | $ 1,002,144 | ||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
May 19, 2015 |
|
Restricted stock units, additional disclosures | |||
Compensation expense | $ 5,971 | $ 4,559 | |
Unrecognized compensation expense related to unvested stock-settled awards | $ 17,313 | ||
Weighted average period over which expense is expected to be recognized, in years | 3 years | ||
SARs | |||
Restricted stock units, additional disclosures | |||
Compensation expense | $ 50 | 72 | |
RSUs | |||
Restricted stock units, additional disclosures | |||
Compensation expense | 1,896 | 1,593 | |
Restricted stock | |||
Restricted stock units, additional disclosures | |||
Compensation expense | 11 | 4 | |
Cash-settled performance units | |||
Restricted stock units, additional disclosures | |||
Compensation expense | $ 4,014 | $ 2,890 | |
2015 Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common stock shares that can be issued for compensation under the Plan | 2,550,000 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | |||
Tax Cuts And Jobs Act Of 2017, change in tax rate, income tax expense (benefit) | $ 17.6 | ||
U.S. statutory rate | 21.00% | 35.00% | |
State taxes | 1.00% | 1.00% | |
Non-deductible expenses | 1.00% | 0.00% | |
Non-taxable income | (1.00%) | (1.00%) | |
Other | (1.00%) | (0.00%) | |
Effective tax rate | 21.00% | 35.00% |
FAIR VALUE DISCLOSURES (Assets and Liabilities) (Details) - USD ($) |
Mar. 31, 2018 |
Dec. 31, 2017 |
|||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | $ 24,929,000 | $ 23,511,000 | |||||||||||||||||||
Loans held for sale | 1,088,565,000 | 1,007,695,000 | |||||||||||||||||||
OREO | [1],[2] | 11,558,000 | 11,742,000 | ||||||||||||||||||
Derivative assets | 17,320,000 | 16,719,000 | |||||||||||||||||||
Derivative liabilities | 16,831,000 | 17,377,000 | |||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [3] | 10,119,000 | 10,945,000 | ||||||||||||||||||
Fair value measurements, recurring basis | Level 1 | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Loans held for sale | [4] | 0 | 0 | ||||||||||||||||||
Derivative assets | [4] | 0 | 0 | ||||||||||||||||||
Derivative liabilities | [4] | 0 | 0 | ||||||||||||||||||
Non-qualified deferred compensation plan liabilities | 8,049,000 | [4] | 5,587,000 | [5] | |||||||||||||||||
Fair value measurements, recurring basis | Level 1 | Residential mortgage-backed securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [6] | 0 | 0 | ||||||||||||||||||
Fair value measurements, recurring basis | Level 1 | Equity securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [6],[7] | 7,842,000 | 5,460,000 | ||||||||||||||||||
Fair value measurements, recurring basis | Level 2 | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Loans held for sale | [4] | 1,054,314,000 | 1,007,695,000 | ||||||||||||||||||
Derivative assets | [4] | 17,320,000 | 16,719,000 | ||||||||||||||||||
Derivative liabilities | [4] | 16,831,000 | 17,377,000 | ||||||||||||||||||
Non-qualified deferred compensation plan liabilities | 0 | [4] | 0 | [5] | |||||||||||||||||
Fair value measurements, recurring basis | Level 2 | Residential mortgage-backed securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [6] | 10,119,000 | 10,945,000 | ||||||||||||||||||
Fair value measurements, recurring basis | Level 2 | Equity securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [6],[7] | 6,968,000 | 7,106,000 | ||||||||||||||||||
Fair value measurements, recurring basis | Level 3 | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Loans held for sale | [4] | 34,251,000 | 0 | ||||||||||||||||||
Derivative assets | [4] | 0 | 0 | ||||||||||||||||||
Derivative liabilities | [4] | 0 | 0 | ||||||||||||||||||
Non-qualified deferred compensation plan liabilities | 0 | [4] | 0 | [5] | |||||||||||||||||
Fair value measurements, recurring basis | Level 3 | Residential mortgage-backed securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [6] | 0 | 0 | ||||||||||||||||||
Fair value measurements, recurring basis | Level 3 | Equity securities | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Estimated Fair Value | [6],[7] | 0 | 0 | ||||||||||||||||||
Fair value measurements, nonrecurring basis | Level 1 | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Loans held for investment | [1],[8] | 0 | 0 | ||||||||||||||||||
OREO | [1],[2] | 0 | 0 | ||||||||||||||||||
Fair value measurements, nonrecurring basis | Level 2 | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Loans held for investment | [1],[8] | 0 | 0 | ||||||||||||||||||
OREO | [1],[2] | 0 | 0 | ||||||||||||||||||
Fair value measurements, nonrecurring basis | Level 3 | |||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||
Loans held for investment | [1],[8] | 28,258,000 | 21,216,000 | ||||||||||||||||||
OREO | [1],[2] | $ 9,558,000 | $ 11,742,000 | ||||||||||||||||||
|
FAIR VALUE DISCLOSURES (Financial Instruments) (Details) |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | $ 1,007,695,000 | |||||||||||
Balance at End of Period | 1,088,565,000 | |||||||||||
Fair Value Inputs, Projected Price | 0.949 | |||||||||||
OREO | [1],[2] | $ 11,558,000 | $ 11,742,000 | |||||||||
Real Estate Owned, Valuation Allowance | 2,000,000 | 0 | ||||||||||
Estimated Fair Value | 24,929,000 | 23,511,000 | ||||||||||
Loans held for sale | 1,007,695,000 | 1,088,565,000 | 1,007,695,000 | |||||||||
Derivative assets | 17,320,000 | 16,719,000 | ||||||||||
Senior Notes | 281,496,000 | 281,406,000 | ||||||||||
Derivative liabilities | 16,831,000 | 17,377,000 | ||||||||||
Level 1 | Carrying amount | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Cash and cash equivalents | 2,451,170,000 | 2,905,591,000 | ||||||||||
Estimated Fair Value | 7,842,000 | 5,460,000 | ||||||||||
Level 1 | Estimated fair value | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Cash and cash equivalents | 2,451,170,000 | 2,905,591,000 | ||||||||||
Estimated Fair Value | 7,842,000 | 5,460,000 | ||||||||||
Level 1 | Fair value measurements, recurring basis | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | [3] | 0 | ||||||||||
Balance at End of Period | [3] | 0 | ||||||||||
Loans held for sale | [3] | 0 | 0 | 0 | ||||||||
Derivative assets | [3] | 0 | 0 | |||||||||
Derivative liabilities | [3] | 0 | 0 | |||||||||
Level 1 | Fair value measurements, nonrecurring basis | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
OREO | [1],[2] | 0 | 0 | |||||||||
Loans held for investment, net | [1],[4] | 0 | 0 | |||||||||
Level 2 | Carrying amount | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | 1,011,004,000 | |||||||||||
Balance at End of Period | 1,054,314,000 | |||||||||||
Estimated Fair Value | 17,087,000 | 18,051,000 | ||||||||||
Loans held for sale | 1,011,004,000 | 1,054,314,000 | 1,011,004,000 | |||||||||
Derivative assets | 17,320,000 | 16,719,000 | ||||||||||
Federal funds purchased | 527,800,000 | 359,338,000 | ||||||||||
Customer repurchase agreements | 7,740,000 | 5,702,000 | ||||||||||
Other borrowings | 2,300,000,000 | 2,800,000,000 | ||||||||||
Senior Notes | 281,496,000 | 281,406,000 | ||||||||||
Derivative liabilities | 16,831,000 | 17,377,000 | ||||||||||
Level 2 | Estimated fair value | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | 1,011,004,000 | |||||||||||
Balance at End of Period | 1,054,314,000 | |||||||||||
Estimated Fair Value | 17,087,000 | 18,051,000 | ||||||||||
Loans held for sale | 1,011,004,000 | 1,054,314,000 | 1,011,004,000 | |||||||||
Derivative assets | 17,320,000 | 16,719,000 | ||||||||||
Federal funds purchased | 527,800,000 | 359,338,000 | ||||||||||
Customer repurchase agreements | 7,740,000 | 5,702,000 | ||||||||||
Other borrowings | 2,300,000,000 | 2,800,000,000 | ||||||||||
Senior Notes | 284,393,000 | 285,485,000 | ||||||||||
Derivative liabilities | 16,831,000 | 17,377,000 | ||||||||||
Level 2 | Fair value measurements, recurring basis | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | [3] | 1,007,695,000 | ||||||||||
Balance at End of Period | [3] | 1,054,314,000 | ||||||||||
Loans held for sale | [3] | 1,007,695,000 | 1,054,314,000 | 1,007,695,000 | ||||||||
Derivative assets | [3] | 17,320,000 | 16,719,000 | |||||||||
Derivative liabilities | [3] | 16,831,000 | 17,377,000 | |||||||||
Level 2 | Fair value measurements, nonrecurring basis | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
OREO | [1],[2] | 0 | 0 | |||||||||
Loans held for investment, net | [1],[4] | 0 | 0 | |||||||||
Level 3 | Carrying amount | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | 0 | |||||||||||
Balance at End of Period | 34,251,000 | |||||||||||
Loans held for sale | 0 | 34,251,000 | 0 | |||||||||
Loans held for investment, net | 20,240,812,000 | 20,489,757,000 | ||||||||||
Deposits | 18,764,533,000 | 19,123,180,000 | ||||||||||
Trust preferred subordinated debentures | 113,406,000 | 113,406,000 | ||||||||||
Level 3 | Estimated fair value | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | 0 | |||||||||||
Balance at End of Period | 34,251,000 | |||||||||||
Loans held for sale | 0 | 34,251,000 | 0 | |||||||||
Loans held for investment, net | 20,234,875,000 | 20,480,802,000 | ||||||||||
Deposits | 18,765,267,000 | 19,124,121,000 | ||||||||||
Trust preferred subordinated debentures | 113,406,000 | 113,406,000 | ||||||||||
Level 3 | Fair value measurements, recurring basis | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | [3] | 0 | ||||||||||
Balance at End of Period | [3] | 34,251,000 | ||||||||||
Loans held for sale | [3] | 0 | 34,251,000 | 0 | ||||||||
Derivative assets | [3] | 0 | 0 | |||||||||
Derivative liabilities | [3] | 0 | 0 | |||||||||
Level 3 | Fair value measurements, recurring basis | Estimated fair value | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Balance at Beginning of Period | 0 | |||||||||||
Purchases / Additions | 36,092,000 | |||||||||||
Sales / Reductions | 0 | |||||||||||
Unrealized Gains (Losses) Recorded in Earnings | (1,841,000) | |||||||||||
Balance at End of Period | 34,251,000 | |||||||||||
Loans held for sale | $ 0 | 34,251,000 | 0 | |||||||||
Level 3 | Fair value measurements, nonrecurring basis | ||||||||||||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||||||||||||
Carrying value of impaired loans | 39,500,000 | 32,200,000 | ||||||||||
Allowance allocation of impaired loans | 11,200,000 | 11,000,000 | ||||||||||
OREO | [1],[2] | 9,558,000 | 11,742,000 | |||||||||
Loans held for investment, net | [1],[4] | $ 28,258,000 | $ 21,216,000 | |||||||||
|
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2018
USD ($)
instrument
|
Dec. 31, 2017
USD ($)
instrument
|
|
Derivatives, Fair Value [Line Items] | ||
Asset Derivative | $ 23,568 | $ 21,354 |
Liability Derivative | 23,079 | 22,012 |
Offsetting derivative asset | (6,248) | (4,635) |
Offsetting derivative liability | (6,248) | (4,635) |
Derivative asset, net | 17,320 | 16,719 |
Derivative liability, net | $ 16,831 | 17,377 |
Description of credit risk exposure on interest rate swaps and caps | Our credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount | |
Credit exposure relating to interest rate swaps and caps | $ 11,700 | 16,700 |
Cash collateral pledge for derivatives | 5,300 | 15,200 |
Interest-bearing deposits | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral pledge for derivatives | 5,000 | 14,000 |
Accrued interest receivable and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral pledge for derivatives | 270 | $ 1,200 |
Interest-bearing Deposit Liability | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral pledge for derivatives | $ 5,600 | |
Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | Weighted-average interest rate received | ||
Derivatives, Fair Value [Line Items] | ||
Weighted-average interest rate received and paid | 3.65% | 3.59% |
Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | Weighted-average interest rate paid | ||
Derivatives, Fair Value [Line Items] | ||
Weighted-average interest rate received and paid | 4.14% | 4.34% |
Commercial loan/lease interest rate caps | ||
Derivatives, Fair Value [Line Items] | ||
Weighted-average interest rate received and paid | 2.46% | 2.40% |
Risk Participation Agreement - Participant Bank [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 145,900 | $ 157,100 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 115 | $ 221 |
Derivative, number of instruments held | instrument | 14 | 15 |
Risk Participation Agreements - Lead Bank [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 107,200 | $ 86,300 |
Derivative, number of instruments held | instrument | 10 | 10 |
Financial institution counterparties: | Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,459,722 | $ 1,393,764 |
Asset Derivative | 12,286 | 4,736 |
Liability Derivative | 7,305 | 15,482 |
Financial institution counterparties: | Commercial loan/lease interest rate caps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 232,754 | 242,700 |
Asset Derivative | 772 | 421 |
Liability Derivative | 19 | 7 |
Financial institution counterparties: | Foreign Exchange Forward [Member] | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 51,064 | 2,466 |
Asset Derivative | 1,362 | 4 |
Liability Derivative | 0 | 69 |
Customer counterparties: | Commercial loan/lease interest rate swaps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1,459,722 | 1,393,764 |
Asset Derivative | 7,305 | 15,482 |
Liability Derivative | 12,286 | 4,736 |
Customer counterparties: | Commercial loan/lease interest rate caps | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 232,754 | 242,700 |
Asset Derivative | 19 | 7 |
Liability Derivative | 772 | 421 |
Customer counterparties: | Foreign Exchange Forward [Member] | Non-hedging interest rate derivatives/swaps | Commercial loan/lease | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 51,064 | 2,466 |
Asset Derivative | 0 | 69 |
Liability Derivative | 1,362 | 4 |
Loan purchase commitments | Interest rate derivative | Economic hedging interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative | 1,043 | 635 |
Liability Derivative | 66 | 190 |
Forward sales commitments | Interest rate derivative | Economic hedging interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative | 781 | 0 |
Liability Derivative | 1,269 | 1,103 |
Loan Purchase Commitments [Member] | Interest rate derivative | Non-hedging interest rate derivatives/swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 277,085 | 253,815 |
Forward Contracts [Member] | Interest rate derivative | Non-hedging interest rate derivatives/swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,251,750 | $ 1,086,224 |
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