10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

Commission file number: 001-32550

WESTERN ALLIANCE BANCORPORATION

(Exact name of registrant as specified in its charter)

Delaware	88-0365922
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One E. Washington Street Suite 1400, Phoenix, AZ	85004
(Address of principal executive offices)	(Zip Code)

(602) 389-3500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $0.0001 Par Value	New York Stock Exchange
6.25% Subordinated Debentures due 2056	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ý    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  ý

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” "accelerated filer" "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

The aggregate market value of the registrant’s voting stock held by non-affiliates was approximately $5.55 billion based on the June 30, 2018 closing price of said stock on the New York Stock Exchange ($56.61 per share).

As of February 22, 2019, Western Alliance Bancorporation had 105,296,854 shares of common stock outstanding.

Portions of the registrant’s definitive proxy statement for its 2019 Annual Meeting of Stockholders are incorporated by reference into Part III of this report.

INDEX

		Page
PART I
Forward-Looking Statements		3
Item 1.	Business	5
Item 1A.	Risk Factors	13
Item 1B.	Unresolved Staff Comments	25
Item 2.	Properties	25
Item 3.	Legal Proceedings	25
Item 4.	Mine Safety Disclosures	25
PART II
Item 5.	Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	26
Item 6.	Selected Financial Data	28
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	69
Item 8.	Financial Statements and Supplementary Data	71
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	147
Item 9A.	Controls and Procedures	147
Item 9B.	Other Information	149
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	150
Item 11.	Executive Compensation	150
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	150
Item 13.	Certain Relationships and Related Transactions, and Director Independence	150
Item 14.	Principal Accountant Fees and Services	150
PART IV
Item 15.	Exhibits and Financial Statement Schedules	150
Item 16.	Form 10-K Summary	152
SIGNATURES		153

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PART I

Forward-Looking Statements

Certain statements contained in this Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (this “Form 10-K”) are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Statements that constitute forward-looking statements within the meaning of the Reform Act are generally identified through the inclusion of words such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goals,” “guidance,” “intend,” “may,” “opportunity,” “plan,” “position,” “potential,” “project,” “ seek,” “should,” “strategy,” “target,” “will,” “would” or similar statements or variations of such words and other similar expressions. All statements other than historical fact are “forward-looking statements” within the meaning of the Reform Act, including statements that are related to or are dependent on estimates or assumptions relating to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions that are not historical facts. These forward-looking statements reflect the Company's current views about future events and financial performance and involve certain risks, uncertainties, assumptions, and changes in circumstances that may cause the Company's actual results to differ significantly from historical results and those expressed in any forward-looking statement. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, those described in “Risk Factors” in Item 1A of this Form 10-K. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements included in this Form 10-K or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Form 10-K might not occur, and you should not put undue reliance on any forward-looking statements.

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GLOSSARY OF ENTITIES AND TERMS

The acronyms and abbreviations identified below are used in various sections of this Form 10-K, including "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Item 7 and the Consolidated Financial Statements and the Notes to Consolidated Financial Statements in Item 8 of this Form 10-K.

ENTITIES / DIVISIONS:
ABA	Alliance Bank of Arizona	HOA Services	Homeowner Associations Services
BON	Bank of Nevada	LVSP	Las Vegas Sunset Properties
Bridge	Bridge Bank	TPB	Torrey Pines Bank
Company	Western Alliance Bancorporation and subsidiaries	WA PWI	Western Alliance Public Welfare Investments, LLC
CSI	CS Insurance Company	WAB or Bank	Western Alliance Bank
FIB	First Independent Bank	WABT	Western Alliance Business Trust
HFF	Hotel Franchise Finance	WAL or Parent	Western Alliance Bancorporation
TERMS:
AFS	Available-for-Sale	FRA	Federal Reserve Act
ALCO	Asset and Liability Management Committee	FRB	Federal Reserve Bank
ALLL	Allowance for Loan and Lease Losses	FVO	Fair Value Option
AOCI	Accumulated Other Comprehensive Income	GAAP	U.S. Generally Accepted Accounting Principles
ASC	Accounting Standards Codification	GLBA	Gramm-Leach-Bliley Act
ASU	Accounting Standards Update	GSE	Government-Sponsored Enterprise
ATM	At-the-Market	HFI	Held for Investment
Basel Committee	Basel Committee on Banking Supervision	HTM	Held-to-Maturity
Basel III	Banking Supervision's December 2010 final capital framework	ICS	Insured Cash Sweep Service
BHCA	Bank Holding Company Act of 1956	IRC	Internal Revenue Code
BOD	Board of Directors	ISDA	International Swaps and Derivatives Association
BOLI	Bank Owned Life Insurance	LIBOR	London Interbank Offered Rate
CAMELS	Capital Adequacy, Assets, Management Capability, Earnings, Liquidity, Sensitivity	LIHTC	Low-Income Housing Tax Credit
Capital Rules	The FRB, the OCC, and the FDIC 2013 approved final rules	MBS	Mortgage-Backed Securities
CCO	Chief Credit Officer	MOU	Memorandum of Understanding
CDARS	Certificate Deposit Account Registry Service	NBL	National Business Lines
CDO	Collateralized Debt Obligation	NOL	Net Operating Loss
CECL	Current Expected Credit Loss	NPV	Net Present Value
CEO	Chief Executive Officer	NYSE	New York Stock Exchange
CET1	Common Equity Tier 1	OCC	Office of the Comptroller of the Currency
CFO	Chief Financial Officer	OCI	Other Comprehensive Income
CFPB	Consumer Financial Protection Bureau	OFAC	Office of Foreign Asset Control
CLO	Collateralized Loan Obligation	OREO	Other Real Estate Owned
CMO	Collateralized Mortgage Obligation	OTTI	Other-than-Temporary Impairment
COSO	Committee of Sponsoring Organizations of the Treadway Commission	PCI	Purchased Credit Impaired
CRA	Community Reinvestment Act	PPNR	Pre-Provision Net Revenue
CRE	Commercial Real Estate	SBA	Small Business Administration
DIF	FDIC's Deposit Insurance Fund	SBIC	Small Business Investment Company
Dodd-Frank Act	The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010	SBLF	Small Business Lending Fund
EGRRCPA	The Economic Growth, Regulatory Relief, and Consumer Protection Act	SEC	Securities and Exchange Commission
EPS	Earnings per share	SERP	Supplemental Executive Retirement Plan
EVE	Economic Value of Equity	SLC	Senior Loan Committee
Exchange Act	Securities Exchange Act of 1934, as amended	SOFR	Secured Overnight Funding Rate
FASB	Financial Accounting Standards Board	SSAE	Statement on Standards for Attestation Engagements
FCRA	Fair Credit Reporting Act of 1971	TDR	Troubled Debt Restructuring
FDIA	Federal Deposit Insurance Act	TEB	Tax Equivalent Basis
FDIC	Federal Deposit Insurance Corporation	TSR	Total Shareholder Return
FHLB	Federal Home Loan Bank	USDA	United States Department of Agriculture
FICO	The Financing Corporation	XBRL	eXtensible Business Reporting Language

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Item 1. Business.

Organization Structure and Description of Services

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, Bridge, FIB, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which holds and manages certain OREO properties and a captive insurance company formed and licensed under the laws of the State of Arizona, CSI. CSI was established as part of the Company's overall enterprise risk management strategy.

WAL also has eight unconsolidated subsidiaries used as business trusts in connection with issuance of trust-preferred securities as described in "Note 9. Qualifying Debt" in Item 8 of this Form 10-K.

Bank Subsidiary

At December 31, 2018, WAL has the following bank subsidiary:

Bank Name	Headquarters	Number of Locations	Location Cities	Total Assets		Net Loans		Deposits
				(in millions)
Western Alliance Bank	Phoenix, Arizona	47	Arizona: Chandler, Flagstaff, Gilbert, Mesa, Phoenix, Scottsdale, and Tucson	$	23,138.4	$	17,557.9	$	19,496.3
			Nevada: Carson City, Fallon, Reno, Sparks, Henderson, Las Vegas, Mesquite, and North Las Vegas
			California: Beverly Hills, Carlsbad, Costa Mesa, La Mesa, Los Angeles, Menlo Park, Oakland, Palo Alto, Pleasanton, San Diego, San Francisco, and San Jose
			Other: Atlanta, Georgia; Boston, Massachusetts; and Reston, Virginia

WAB also has the following significant wholly-owned subsidiaries:

• Western Alliance Business Trust holds certain investment securities, municipal and non-profit loans, and leases.

• WA PWI, LLC holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations.

• BW Real Estate, Inc. operates as a real estate investment trust and holds certain real estate loans and related securities.

• Helios Prime, Inc. holds certain equity interests in solar tax credit transactions.

Market Segments

The Company’s reportable segments are aggregated based primarily on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The Company's NBL segments provide specialized banking services to niche markets. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately within the Company's core market areas. The Corporate & Other segment consists of the Company's investment portfolio, corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations.

The accounting policies of the reported segments are the same as those of the Company as described in "Note 1. Summary of Significant Accounting Policies" in Item 8. All intercompany transactions are eliminated for reporting consolidated results of operations. Loan and deposit accounts are assigned directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities with a funds credit provided for the use of this equity as a funding source. Any excess equity not allocated to segments based on risk is assigned to the Corporate & Other segment.

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Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent that the amounts are directly attributable to those segments. Net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. Net income amounts for each reportable segment are further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, average loan balances, and average deposit balances. Income taxes are applied to each segment based on the effective tax rate for the geographic location of the segment. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.

Lending Activities

General

Through WAB and its banking divisions and operating subsidiaries, the Company provides a variety of financial services to customers, including CRE loans, construction and land development loans, commercial loans, and consumer loans. The Company’s lending has focused primarily on meeting the needs of business customers.

Commercial and Industrial: Commercial and industrial loans include working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans. Loans to technology companies, tax-exempt municipalities, and not-for-profit organizations are also categorized as commercial and industrial loans.

CRE: Loans to fund the purchase or refinancing of CRE for investors (non-owner occupied) or owner-occupants a significant portion of the Company's loan portfolio. These CRE loans are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties. As of December 31, 2018 and 2017, 36% of the Company's CRE loans were owner occupied. Owner occupied CRE loans are loans secured by owner occupied non-farm nonresidential properties for which the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. Non-owner occupied CRE loans are CRE loans for which the primary source of repayment is rental income generated from the collateral property.

Construction and Land Development: Construction and land development loans include single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments. These loans are primarily originated to experienced local developers with whom the Company has a satisfactory lending history. An analysis of each construction project is performed as part of the underwriting process to determine whether the type of property, location, construction costs, and contingency funds are appropriate and adequate. Loans to finance commercial raw land are primarily to borrowers who plan to initiate active development of the property within two years.

Residential: The Company purchases residential mortgage loans originated by unaffiliated third parties, including related servicing rights and responsibilities.

Consumer: Limited types of consumer loans are offered to meet customer demand and to respond to community needs. Examples of these consumer loans include: home equity loans and lines of credit, home improvement loans, personal lines of credit, and loans to individuals for investment purposes.

6

At December 31, 2018, the Company's loan portfolio totaled $17.71 billion, or approximately 77% of total assets. The following table sets forth the composition of the Company's HFI loan portfolio as of the periods presented: 

	December 31,
	2018					2017
	Amount			Percent		Amount			Percent
	(dollars in thousands)
Commercial and industrial	$	7,762,642		43.8	%	$	6,841,381		45.3	%
Commercial real estate - non-owner occupied	4,213,428			23.8		3,904,011			25.9
Commercial real estate - owner occupied	2,325,380			13.1		2,241,613			14.9
Construction and land development	2,134,753			12.1		1,632,204			10.8
Residential real estate	1,204,355			6.8		425,940			2.8
Consumer	70,071			0.4		48,786			0.3
Loans, net of deferred loan fees and costs	$	17,710,629		100.0	%	$	15,093,935		100.0	%
Allowance for credit losses	(152,717		)			(140,050		)
Total loans HFI	$	17,557,912				$	14,953,885

For additional information concerning loans, see "Note 3. Loans, Leases and Allowance for Credit Losses" of the Consolidated Financial Statements contained herein or "Management's Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition – Loans discussions" in Item 8 of this Form 10-K.

The Company adheres to a specific set of credit standards within its banking subsidiary that are intended to ensure the proper management of credit risk. Furthermore, the Bank's senior management team plays an active role in monitoring compliance with such standards.

Loan originations are subject to a process that includes the credit evaluation of borrowers, utilizing established lending limits, analysis of collateral, and procedures for continual monitoring and identification of credit deterioration. Loan officers actively monitor their individual credit relationships in order to report suspected risks and potential downgrades as early as possible. The BOD approves all material changes to loan policy, as well as lending limit authorities. The Bank's lending policies generally incorporate consistent underwriting standards across all geographic regions in which the Bank operates, customized as necessary to conform to state law and local market conditions. The Bank's credit culture emphasizes timely identification of troubled credits to allow management to take prompt corrective action, when necessary.

Loan Approval Procedures and Authority

The Company's loan approval procedures are executed through a tiered loan limit authorization process, which is structured as follows:

• Individual Credit Authorities. The credit approval levels for individual divisional and senior credit officers are set by policy and certain credit administration officers' approval authorities are established on a delegated basis.

• Management Loan Committees. Credits in excess of individual divisional or senior credit officer approval authority are submitted to the appropriate divisional or NBL loan committee. The divisional committees consist of members of the Bank's senior management team of each division and the NBL loan committees consist of the Bank's divisional or senior credit officers. These loan committees have approval authority up to $10.0 million.

• Credit Administration. Credits in excess of $10.0 million but less than $15.0 million require the additional approval of the Bank's CCO. Credits in excess of $15.0 million are submitted to the WAB SLC. The SLC reviews all other loan approvals to any one new borrower of $5.0 million or greater. The SLC is chaired by the WAB CCO and includes the Company’s CEO.

Loans to One Borrower. In addition to the limits set forth above, subject to certain exceptions, state banking laws generally limit the amount of funds that a bank may lend to a single borrower. Under Arizona law, the obligations of one borrower to a bank generally may not exceed 20% of the bank’s capital, plus an additional 10% of its capital if the additional amounts are fully secured by readily marketable collateral. Arizona law does not specifically require aggregation of loans to affiliated entities in determining compliance with the lending limit. As a matter of longstanding practice, the Arizona Department of Financial Institutions uses the same aggregation analysis as applied to national banks by the OCC.

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Concentrations of Credit Risk. The Company's lending policies also establish customer and product concentration limits, which are based on commitment amounts, to control single customer and product exposures. The Company's lending policies have several different measures to limit concentration exposures. Set forth below are the primary segmentation limits and actual measures as of December 31, 2018:

	Percent of Total Capital
	Policy Limit		Actual
CRE	435	%	226	%
Commercial and industrial	400		268
Construction and land development	85		74
Residential real estate	100		42
Consumer	5		2

Asset Quality

General

To measure asset quality, the Company has instituted a loan grading system consisting of nine different categories. The first five are considered satisfactory "pass" ratings. The other four "non-pass" grades range from a “Special mention” category to a “Loss” category and are consistent with the grading systems used by federal banking regulators. All loans are assigned a credit risk grade at the time they are made, and each assigned loan officer reviews the credit with his or her immediate supervisor on a quarterly basis to determine whether a change in the credit risk grade is warranted. In addition, the grading of the Company's loan portfolio is reviewed on a regular basis by its internal Loan Review Department.

Collection Procedure

If a borrower fails to make a scheduled payment on a loan, Bank personnel attempt to remedy the deficiency by contacting the borrower and seeking payment. Contacts generally are made within 15 business days after the payment becomes past due. The Bank maintains regional Special Assets Departments, which generally service and collect loans rated Substandard or worse. Each division is responsible for monitoring activity that may indicate an increased risk rating, including, but not limited to, past-dues, overdrafts, and loan agreement covenant defaults. Loans deemed uncollectible are proposed for charge-off.

Nonperforming Assets

Nonperforming assets include loans past due 90 days or more and still accruing interest, non-accrual loans, TDR loans, and repossessed assets, including OREO. In general, loans are placed on non-accrual status when the Company determines that ultimate collection of principal and interest is in doubt due to the borrower’s financial condition, collateral value, and collection efforts. A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. Other repossessed assets result from loans where the Company has received title or physical possession of the borrower’s assets. The Company generally re-appraises OREO and collateral dependent impaired loans every twelve months. The total net realized and unrealized gains and losses of repossessed and other assets was not significant during each of the years ended December 31, 2018, 2017, and 2016. However, losses may be experienced in future periods.

Criticized Assets

Federal bank regulators require banks to classify its assets on a regular basis. In addition, in connection with their examinations of the Bank, examiners have authority to identify problem assets and, if appropriate, re-classify them. A loan grade of "Special Mention" from the Company's internal loan grading system is utilized to identify potential problem assets and loan grades of "Substandard," "Doubtful," and "Loss" are utilized to identify actual problem assets.

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The following describes the potential and actual problem assets using the Company's internal loan grading system definitions:

• "Special Mention" (Grade 6): Generally these are assets that possess potential weaknesses that warrant management's close attention. These loans may involve borrowers with adverse financial trends, higher debt to equity ratios, or weaker liquidity positions, but not to the degree of being considered a “problem loan” where risk of loss may be apparent. Loans in this category are usually performing as agreed, although there may be non-compliance with financial covenants.

• “Substandard” (Grade 7): These assets are characterized by well-defined credit weaknesses and carry the distinct possibility that the Company will sustain some loss if such weakness or deficiency is not corrected. All loans 90 days or more past due and all loans on non-accrual status are considered at least "Substandard," unless extraordinary circumstances would suggest otherwise.

• “Doubtful” (Grade 8): These assets have all the weaknesses inherent in those classified as "Substandard" with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable, but because of certain known factors which may work to the advantage and strengthening of the asset (for example, capital injection, perfecting liens on additional collateral and refinancing plans), classification as an estimated loss is deferred until a more precise status may be determined.

• “Loss” (Grade 9): These assets are considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practicable or desirable to defer writing off the asset, even though partial recovery may be achieved in the future.

Allowance for Credit Losses

The Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses and is reflected as a reduction in earnings. Loans are charged against the allowance for credit losses when management believes that collectability of the contractual principal or interest is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance is reported at an amount believed adequate to absorb probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. For a detailed discussion of the Company’s methodology see “Management’s Discussion and Analysis and Financial Condition – Critical Accounting Policies – Allowance for Credit Losses” in Item 7 of this Form 10-K.

Investment Activities

The Company has an investment policy, which was approved by the BOD. This policy dictates that investment decisions be made based on the safety of the investment, liquidity requirements of the Bank and holding company, potential returns, cash flow targets, and consistency with the Company's interest rate risk management. The Bank’s ALCO is responsible for making securities portfolio decisions in accordance with established policies. The CFO and Treasurer have the authority to purchase and sell securities within specified guidelines. All investment transactions for the Bank and for the holding company were reviewed by the ALCO and BOD.

Generally, the Company's investment policy limits new securities investments to the following: securities backed by the full faith and credit of the U.S. government, including U.S. treasury bills, notes, and bonds, direct obligations of Ginnie Mae, USDA and SBA loans; MBS or CMO issued by a GSE, such as Fannie Mae or Freddie Mac; debt securities issued by a GSE, such as Fannie Mae, Freddie Mac, and the FHLB; tax-exempt securities with a rating of “Single-A” or higher; preferred stock where the issuing company is rated “BBB” or higher; corporate debt with a rating of “Single-A” or better; investment grade corporate bond mutual funds; private label collateralized mortgage obligations with a single rating of “AA” or higher; commercial mortgage-backed securities with a rating of “AAA;” low income housing development bonds; and mandatory purchases of equity securities of the FRB and FHLB.

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Investment securities are further subject to the following quantitative limits of the Bank:

Securities Category	Basis Limit	Percentage or Dollar Limit
Preferred stock	Common equity tier 1	10.0	%
Tax-exempt municipal securities	Total assets	5.0	%
Tax-exempt low income housing development bonds	Total capital	30.0	%
Investment grade corporate bond mutual funds	Tier 1 capital	5.0	%
Corporate debt holdings	Total assets	2.5	%
Commercial mortgage-backed securities	Aggregate purchases	$50.0 million

The Company no longer purchases (although it may continue to hold previously acquired) CDOs. The Company's policies also govern the use of derivatives, and provide that the Company prudently use derivatives in accordance with applicable regulations as a risk management tool to reduce the overall exposure to interest rate risk, and not for speculative purposes.

As of December 31, 2018, the Company's investment securities portfolio includes debt and equity securities. Debt securities are classified as AFS or HTM pursuant to ASC Topic 320, Investments and ASC Topic 825, Financial Instruments. Equity securities are reported at fair value in accordance with Topic 321, Equity Securities.For further discussion of significant accounting policies related to the Company's investment securities portfolio refer to "Note 1. Summary of Significant Accounting Policies" in Item 8 of this Form 10-K.

As of December 31, 2018, the Company's investment securities portfolio totals $3.69 billion, representing approximately 16.0% of the Company's total assets, with the majority of the portfolio invested in AAA/AA+ rated securities. The average duration of the Company's investment securities is 5.03 years as of December 31, 2018.

The following table summarizes the carrying value of investment securities as of December 31, 2018 and 2017:

	December 31,
	2018				2017
	Amount		Percent		Amount		Percent
	(dollars in thousands)
CDO	$	15,327	0.4	%	$	21,857	0.6	%
Commercial MBS issued by GSEs	100,106		2.7		109,077		2.9
Corporate debt securities	99,380		2.7		103,483		2.8
CRA investments	51,142		1.4		50,616		1.3
Preferred stock	63,919		1.7		53,196		1.4
Private label residential MBS	924,594		25.0		868,524		23.1
Residential MBS issued by GSEs	1,530,124		41.4		1,689,295		45.0
Tax-exempt	841,573		22.8		765,960		20.4
Trust preferred securities	28,617		0.8		28,617		0.8
U.S. government sponsored agency securities	38,188		1.0		61,462		1.6
U.S. treasury securities	1,984		0.1		2,482		0.1
Total investment securities	$	3,694,954	100.0	%	$	3,754,569	100.0	%

As of December 31, 2018 and 2017, the Company had investments in BOLI of $170.1 million and $167.8 million, respectively. BOLI is used to help offset employee benefit costs. For additional information concerning investments, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Investments” in Item 7 of this Form 10-K.

Deposit Products

The Company offers a variety of deposit products, including checking accounts, savings accounts, money market accounts, and other types of deposit accounts, including fixed-rate, fixed maturity certificates of deposit. The Company has historically focused on growing its lower cost core customer deposits. As of December 31, 2018, the deposit portfolio was comprised of 39% non-interest-bearing deposits and 61% interest-bearing deposits.

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The competition for deposits in the Company's markets is strong. The Company has historically been successful in attracting and retaining deposits due to several factors, including its:

• knowledgeable and empowered bankers committed to providing personalized and responsive service that translates into long-lasting relationships;

• broad selection of cash management services offered; and

• incentives to employees for business development and retention.

Deposit balances are generally influenced by national and local economic conditions, changes in prevailing interest rates, internal pricing decisions, perceived stability of financial institutions and competition. In order to attract and retain deposits, the Company relies on providing quality service and introducing new products and services that meet the needs of its customers.

The Bank's deposit rates are determined through an internal oversight process under the direction of its ALCO. The Bank considers a number of factors when determining deposit rates, including:

• current and projected national and local economic conditions and the outlook for interest rates;

• local competition;

• loan and deposit positions and forecasts, including any concentrations in either; and

• rates charged on FHLB advances and other funding sources.

The following table shows the Company's deposit composition: 

	December 31,
	2018				2017
	Amount		Percent		Amount		Percent
	(in thousands)
Non-interest-bearing demand deposits	$	7,456,141	38.9	%	$	7,433,962	43.9	%
Interest-bearing transaction accounts	2,555,609		13.3		1,586,209		9.3
Savings and money market accounts	7,330,709		38.2		6,330,977		37.3
Time certificates of deposit ($250,000 or more)	1,009,900		5.3		713,654		4.2
Other time deposits	825,088		4.3		907,730		5.3
Total deposits	$	19,177,447	100.0	%	$	16,972,532	100.0	%

Although the Company does not pay interest to depositors of non-interest-bearing accounts, earnings credits are awarded to some account holders, which offset charges incurred by account holders for other services. Earnings credits earned in excess of charges incurred by account holders are recorded in deposit costs as part of non-interest expense and fluctuate as a result of deposit balances eligible for earnings credits, along with the earnings credit rates on these deposit balances.

In addition to the Company's deposit base, it has access to other sources of funding, including FHLB and FRB advances, Federal funds purchased, repurchase agreements, and unsecured lines of credit with other financial institutions. Previously, the Company has also accessed the capital markets through trust preferred, subordinated debt, and Senior Note offerings. For additional information concerning the Company's deposits, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Balance Sheet Analysis – Deposits” in Item 7 of this Form 10-K.

Other Financial Products and Services

In addition to traditional commercial banking activities, the Company offers other financial services to its customers, including: internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services.

Customer, Product, and Geographic Concentrations

Approximately 49% and 52% of the Company's loan portfolio at December 31, 2018 and 2017, respectively, was represented by CRE and construction and land development loans. The Company’s business is concentrated primarily in the Las Vegas, Los Angeles, Phoenix, Reno, San Francisco, San Jose, San Diego and Tucson metropolitan areas. Consequently, the Company is dependent on the trends of these regional economies.

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The Company's lending activities, including those within its NBLs, are driven in large part by the customers served in the market areas where the Company has offices in the states of Arizona, Nevada, and California. The following table presents a breakout of the in-footprint and out-of-footprint distribution of loans:

	December 31, 2018						December 31, 2017
	In-Footprint		Out-of-Footprint		Total		In-Footprint		Out-of-Footprint		Total
Arizona	18.1	%	2.5	%	20.6	%	19.8	%	2.2	%	22.0	%
Nevada	11.1		0.2		11.3		12.1		0.1		12.2
Southern California	12.2		—		12.2		12.7		0.1		12.8
Northern California	6.8		0.5		7.3		7.8		0.6		8.4
HOA Services	0.3		0.9		1.2		0.2		0.9		1.1
Hotel Franchise Finance	1.5		6.9		8.4		0.8		8.0		8.8
Public & Nonprofit Finance	7.8		1.0		8.8		9.5		1.0		10.5
Technology & Innovation	2.4		4.4		6.8		2.7		4.6		7.3
Other NBLs	10.3		13.1		23.4		6.2		10.7		16.9
Total	70.5	%	29.5	%	100.0	%	71.8	%	28.2	%	100.0	%

The Company is not dependent upon any single or limited number of customers, the loss of which would have a material adverse effect on the Company. Neither the Company nor any of its reportable segments have customer relationships that individually account for 10% or more of consolidated or segment revenues. No material portion of the Company’s business is seasonal.

Competition

The financial services industry is highly competitive. Many of the Company's competitors are much larger in total assets and capitalization, have greater access to capital markets, and offer a broader range of financial services than the Company can offer, and may have lower cost structures.

This increasingly competitive environment is primarily a result of long-term changes in regulation that made mergers and geographic expansion easier; changes in technology and product delivery systems and web-based tools; and the accelerating pace of consolidation among financial services providers. The Company competes for loans, deposits, and customers with other banks, credit unions, brokerage companies, mortgage companies, insurance companies, finance companies, financial technology firms, and other non-bank financial services providers. This strong competition for deposit and loan products directly affects the interest rates on those products and the terms on which they are offered to customers.

Technological innovation continues to contribute to greater competition in domestic and international financial services markets.

Mergers between financial institutions have placed additional pressure on banks to consolidate their operations, reduce expenses, and increase revenues to remain competitive. The competitive environment is also significantly impacted by federal and state legislation that makes it easier for non-bank financial institutions to compete with the Company.

Employees

As of December 31, 2018, the Company has 1,787 full-time equivalent employees. The Company’s employees are not represented by a union or covered by a collective bargaining agreement. Management believes that its employee relations are good.

Supervision and Regulation

The Company and its subsidiaries are extensively regulated and supervised under both federal and state laws. A summary description of the laws and regulations which relate to the Company’s operations are discussed in Item 7 of this Form 10-K.

Additional Available Information

The Company maintains an internet website at http://www.westernalliancebancorporation.com. The Company makes available its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Exchange Act and other information related to the Company free of charge, through this site as soon as reasonably practicable after it electronically files those documents with, or otherwise furnishes them to the SEC. The SEC maintains an internet site at http://www.sec.gov, in which all forms filed electronically may be accessed. The Company’s internet website and the information contained therein are not incorporated in this Form 10-K.

In addition, copies of the Company’s annual report will be made available, free of charge, upon written request. 

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Item 1A. Risk Factors.

Investing in the Company’s common stock involves various risks, many of which are specific to the Company’s business. The discussion below addresses the material risks and uncertainties, of which the Company is currently aware, that could have a material adverse effect on the Company’s business, results of operations, and financial condition. Other risks that the Company does not know about now, or that the Company does not currently believe are significant, could negatively impact the Company’s business or the trading price of the Company’s securities. See additional discussions about credit, interest rate, market, and litigation risks in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations."

Risks Relating to the Company's Business

The Company’s financial performance may be adversely affected by conditions in the financial markets and economic conditions generally.

The Company’s financial performance is highly dependent upon the business environment in the markets where the Company operates and in the U.S. as a whole. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity, or investor or business confidence, limitations on the availability or increases in the cost of credit and capital, increases in inflation or interest rates, government shutdowns, natural disasters, terrorist attacks, acts of war, or a combination of these or other factors. A worsening of business and economic conditions generally or specifically in the principal markets in which the Company conducts business could have adverse effects, including the following:

• a decrease in deposit balances or the demand for loans and other products and services the Company offers;

• an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to the Company, which could lead to higher levels of nonperforming assets, net charge-offs, and provisions for credit losses;

• a decrease in the value of loans and other assets secured by real estate;

• a decrease in net interest income from the Company’s lending and deposit gathering activities;

• an impairment of certain intangible assets such as goodwill; and

• an increase in competition resulting from increasing consolidation within the financial services industry.

In the U.S. financial services industry, the commercial soundness of financial institutions is closely interrelated as a result of credit, trading, clearing or other relationships between the institutions. As a result, concerns about, or a default or threatened default by, one institution could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions. This is sometimes referred to as “systemic risk” and may adversely affect financial intermediaries, such as clearing agencies, clearing houses, banks, securities firms, and exchanges, with which the Company interacts on a daily basis, and therefore could adversely affect the Company.

It is possible that the business environment in the U.S. will experience volatility in the future. There can be no assurance that these conditions will improve in the near term or that conditions will not worsen. Such conditions could adversely affect the Company’s business, results of operations, and financial condition.

The Company is highly dependent on real estate and events that negatively impact the real estate market will hurt the Company’s business and earnings.

The Company is located in areas in which economic growth is largely dependent on the real estate market, and a majority of the Company’s loan portfolio is secured by or otherwise dependent on real estate. The market for real estate is cyclical and the outlook for this sector is uncertain. A decline in real estate activity would likely cause a decline in asset and deposit growth and negatively impact the Company’s earnings and financial condition.

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The Company’s loan portfolio consists primarily of CRE and commercial and industrial loans, which contain concentrations in specialty business lines that have unique risk characteristics and may expose the Company to increased lending risks.

The Company’s loan portfolio consists primarily of CRE and commercial and industrial loans, which contain concentrations in specialty business lines, such as mortgage warehouse, corporate finance, municipal and nonprofit loans, as well as loans in other business sectors such as technology and innovation. These loan concentrations present unique risks and involve specialized underwriting and management as they often involve large loan balances to a single borrower or group of related borrowers. Consequently, an adverse development with respect to one commercial loan or one credit relationship may adversely affect the Company. In addition, based on the nature of lending to these specialty markets, repayment of loans may be dependent upon borrowers receiving additional equity financing or, in some cases, a successful sale to a third party, public offering, or other form of liquidity event. Although each specialty business has dedicated teams in place with specialized skills, tools, and resources available to monitor and evaluate risk specific to the industry, unforeseen adverse events, changes in regulatory policy, or a general decline in the borrower's industry may have a material adverse effect on the Company’s financial condition and results of operations.

Due to the inherent risk associated with accounting estimates, the Company’s allowance for loan losses may be insufficient, which could require the Company to raise additional capital or otherwise adversely affect the Company’s financial condition and results of operations.

Credit losses are inherent in the business of making loans. Management makes various assumptions and judgments about the collectability of the Company’s consolidated loan portfolio and maintains an allowance for estimated credit losses based on a number of factors, including the size of the portfolio, asset classifications, economic trends, industry experience and trends, industry and geographic concentrations, estimated collateral values, management’s assessment of the credit risk inherent in the portfolio, historical loan loss experience, and loan underwriting policies. In addition, the Company evaluates all loans identified as problem loans and augments the allowance based upon its estimation of the potential loss associated with those problem loans. Additions to the allowance for credit losses recorded through the Company’s provision for credit losses decreases the Company’s net income. If such assumptions and judgments are incorrect, the Company’s actual credit losses may exceed the Company’s allowance for credit losses.

At December 31, 2018, the Company's allowance for credit losses is $152.7 million. Deterioration in the real estate market or general economic conditions could affect the ability of the Company’s loan customers to service their debt, which could result in additional loan provisions and increases in the Company’s allowance for credit losses. In addition, the Company may be required to record additional loan provisions or increase the Company’s allowance for credit losses based on new information regarding existing loans, input from regulators in connection with their review of the Company’s allowance, changes in regulatory guidance, regulations or accounting standards, identification of additional problem loans, and other factors, both within and outside of the Company’s management’s control. Moreover, because future events are uncertain and because the Company may not successfully identify all deteriorating loans in a timely manner, there may be loans that deteriorate in an accelerated time frame.

Any increases in the provision or allowance for credit losses will result in a decrease in the Company’s net income and, potentially, capital, and may have a material adverse effect on the Company’s financial condition and results of operations. If actual credit losses materially exceed the Company’s allowance for credit losses, the Company may be required to raise additional capital, which may not be available to the Company on acceptable terms or at all. The Company’s inability to raise additional capital on acceptable terms when needed could materially and adversely affect the Company’s financial condition, results of operations, and capital.

Recent changes to the FASB accounting standards will result in a significant change to the Company’s recognition of credit losses and may materially impact the Company’s financial condition or results of operations.

In June 2016, the FASB issued ASU, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," which replaces the current incurred loss model for recognizing credit losses with an expected loss model referred to as the CECL model, and which goes into effect for the Company on January 1, 2020. Under the incurred loss model, the Company delays recognition of losses until it is probable that a loss has been incurred. The CECL model represents a dramatic departure from the incurred loss model.  The CECL model will require the Company to present certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, at the net amount expected to be collected. Additionally, the measurement of expected credit losses will take place at the time the financial asset is first added to the balance sheet (with periodic updates thereafter) and will be based on current conditions, information about past events, including historical experience, and reasonable and supportable forecasts that impact the collectability of the reported amount. As such, the CECL model will materially impact how the Company determines its ALLL and may require the Company to significantly increase its ALLL.  Furthermore, the Company’s ALLL may experience more fluctuations under the CECL model, some of which may be significant. Were the Company required to significantly increase its ALLL, it may negatively impact the Company’s business, earnings, financial condition, and results of operations. The Company is currently preparing for the new CECL model and evaluating its

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impact on the Company’s accounting. While the Company cannot yet determine how significantly transitioning to the CECL model will impact its ALLL, consistent with regulatory expectations set forth in interagency guidance issued at the end of 2016, the Company expects the new CECL model will require the Company to recognize a one-time cumulative adjustment to the Company’s ALLL in order to fully transition from the incurred loss model to the CECL model. 

The Company could be subject to tax audits, challenges to its tax positions, or adverse changes or interpretations of tax laws.

The Company is subject to federal and applicable state income tax laws and regulations. Income tax laws and regulations are often complex and require significant judgment in determining the Company’s effective tax rate and in evaluating its tax positions. The Company’s determination of its tax liability is subject to review by applicable tax authorities. Any audits or challenges of such determinations may adversely affect the Company’s effective tax rate, tax payments or financial condition.

U.S. tax legislation enacted in late 2017 made significant changes to federal tax law, including the taxation of corporations, by, among other things, reducing the corporate income tax rate, disallowing certain deductions that had previously been allowed, and altering the expensing of capital expenditures. The implementation and evaluation of these changes may require significant judgment and substantial planning on behalf of the Company. These judgments and plans may require the Company to take new and different tax positions that if challenged could adversely affect the Company’s effective tax rate, tax payments or financial condition.

In addition, the new tax legislation remains subject to potential amendments, technical corrections, and further regulatory guidance and interpretation, any of which could lessen or increase certain adverse impacts on the Company. Furthermore, as the new tax legislation goes into effect, future changes may occur at the federal or state level that could result in unfavorable adjustments to the Company’s tax liability.

Because of the geographic concentration of the Company’s assets, changes in local economic conditions could adversely affect the Company’s business and results of operations.

The Company’s business is primarily concentrated in selected markets in Arizona, California, and Nevada. As a result of this geographic concentration, the Company’s financial condition and results of operations depend largely upon economic conditions in these market areas. Deterioration in economic conditions in these markets could result in one or more of the following: an increase in loan delinquencies and charge-offs; an increase in problem assets and foreclosures; a decrease in the demand for the Company’s products and services; or a decrease in the value of collateral for loans, especially real estate.

The Company’s financial instruments expose the Company to certain market risks and may increase the volatility of earnings and AOCI.

The Company holds certain financial instruments measured at fair value. For those financial instruments measured at fair value, the Company is required to recognize the changes in the fair value of such instruments in earnings or AOCI each quarter. Therefore, any increases or decreases in the fair value of these financial instruments have a corresponding impact on reported earnings or AOCI. Fair value can be affected by a variety of factors, many of which are beyond the Company’s control, including the Company’s credit position, interest rate volatility, capital markets volatility, and other economic factors. Accordingly, the Company is subject to mark-to-market risk and the application of fair value accounting may cause the Company’s earnings and AOCI to be more volatile than would be suggested by the Company’s underlying performance.

If the Company loses a significant portion of its core deposits or its cost of funding deposits increases significantly, the Company's liquidity and/or profitability would be adversely impacted.

The Company’s profitability depends in part on successfully attracting and retaining a stable base of relatively low-cost deposits. The competition for these deposits in the Company's markets is strong and customers may demand higher interest rates on their deposits or seek other investments offering higher rates of return. The Company is a participant in the Promontory Interfinancial Network, and offers its reciprocal deposit products, such as CDARS and ICS, to customers seeking federal insurance for deposit amounts that exceed the applicable deposit insurance limit at a single institution. The Company also from time to time offers other credit enhancements to depositors, such as FHLB letters of credit and, for certain deposits of public monies, pledges of collateral in the form of readily marketable securities. Any event or circumstance that interferes with or limits the Company's ability to offer these products to customers that require greater security for their deposits, such as a significant regulatory enforcement action or a significant decline in capital levels at the Company's bank subsidiary, could negatively impact the Company's ability to attract and retain deposits. If the Company were to lose a significant portion of its low-cost deposits, the Company would be required to borrow from other sources at higher rates and the Company's liquidity and profitability would be adversely impacted.

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From time to time, the Company has utilized borrowings from the FHLB and the FRB, and there can be no assurance these programs will be available as needed.

As of December 31, 2018, the Company has borrowings from the FHLB of San Francisco of $491.0 million and none from the FRB. In the past, the Company has utilized borrowings from the FHLB of San Francisco and the FRB to satisfy its short-term liquidity needs. The Company’s borrowing capacity is generally dependent on the value of its collateral pledged to these entities. These lenders could reduce the Company’s borrowing capacity or eliminate certain types of collateral and could otherwise modify or even terminate their loan programs. Any change or termination could have an adverse effect on the Company’s liquidity and profitability.

The Company's business may be adversely affected by fraud.

As a financial institution, the Company is inherently exposed to operational risk in the form of theft and other fraudulent activity by employees, customers, and other third parties targeting the Company and/or the Company’s customers or data. Such activity may take many forms, including check fraud, electronic fraud, wire fraud, phishing, social engineering and other dishonest acts.

Although the Company devotes substantial resources to maintaining effective policies and internal controls to identify and prevent such incidents, given the increasing sophistication of possible perpetrators, the Company may experience financial losses or reputational harm as a result of fraud.

A failure in or breach of the Company’s operational or security systems or infrastructure, or those of the Company’s third party vendors and other service providers, including as a result of cyber-attacks, could disrupt the Company’s businesses, result in the disclosure or misuse of confidential or proprietary information, damage the Company’s reputation, increase the Company’s costs, and cause losses.

The Company’s operations rely on the secure processing, storage, and transmission of confidential and other information. Although the Company takes numerous protective measures to maintain the confidentiality, integrity, and availability of the Company’s and its customers’ information across all geographies and product lines, and endeavors to modify these protective measures as circumstances warrant, the nature of the threats continues to evolve. As a result, the Company’s computer systems, software, and networks and those of the Company’s customers and third party vendors may be vulnerable to unauthorized payments and account access, loss or destruction of data (including confidential client information), account takeovers, unavailability of service, computer viruses or other malicious code, cyber-attacks, and other events that could have an adverse security impact and result in significant losses to the Company and/or its customers. These threats may originate externally from third parties, including foreign governments, organized criminal groups, and other hackers, and outsourced or infrastructure-support providers and application developers, or the threats may originate from within the Company’s organization.

The Company also faces the risk of operational disruption, failure, termination, or capacity constraints of any of the third parties that facilitate the Company’s business activities, including vendors, exchanges, clearing agents, clearing houses, or other financial intermediaries. Such parties could also be the source or cause of an attack on, or breach of, the Company’s operational systems, data or infrastructure. In addition, the Company may be at risk of an operational failure with respect to its customers’ systems. The Company’s risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, the outsourcing of many of the Company’s business operations, and the continued uncertain global economic environment. As cyber threats continue to evolve, the Company may be required to expend significant additional resources to continue to modify or enhance its protective measures or to investigate and remediate any information security vulnerabilities.

The Company maintains insurance policies that it believes provide reasonable coverage at a manageable expense for an institution of the Company’s size and scope with similar technological systems. However, the Company cannot assure that these policies will afford coverage for all possible losses or would be sufficient to cover all financial losses, damages, penalties, including lost revenues, should the Company experience any one or more of its or a third party’s systems failing or experiencing an attack.

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The Company relies on third parties to provide key components of its business infrastructure.

The Company relies on third parties to provide key components for its business operations, such as data processing and storage, recording and monitoring transactions, online banking interfaces and services, internet connections, and network access. While the Company selects these third-party vendors carefully, it does not control their actions. Any problems caused by these third parties, including those resulting from breakdowns or other disruptions in communication services provided by a vendor, failure of a vendor to handle current or higher volumes, cyber-attacks and security breaches at a vendor, failure of a vendor to provide services for any reason, or poor performance by a vendor, could adversely affect the Company’s ability to deliver products and services to its customers and otherwise conduct its business. Financial or operational difficulties of a third-party vendor could also hurt the Company’s operations if those difficulties interfere with the vendor's ability to serve the Company. Replacing these third party vendors also could create significant delays and expense. Any of these things could adversely affect the Company’s business and financial performance.

A change in the Company’s creditworthiness could increase the Company’s cost of funding or adversely affect its liquidity.

Market participants regularly evaluate the Company’s creditworthiness and the creditworthiness of the Company’s long-term debt based on a number of factors, some of which are not entirely within the Company’s control, including the Company’s financial strength and the financial services industry generally. There can be no assurance that the Company's perceived creditworthiness will remain the same. Changes could adversely affect the cost and other terms upon which the Company is able to obtain funding and its access to the capital markets, and could increase the Company’s cost of capital. Likewise, any loss of or decline in the credit rating assigned to WAB could impair its ability to attract deposits or to obtain other funding sources, or increase its cost of funding.

The Company's controls and processes, and its reporting systems and procedures, may not be able to keep pace with its growth, which could cause it to experience compliance and operational problems or lose customers, or incur additional expenditures beyond current projections, any one of which could adversely affect the Company’s financial results.

The Company’s future success will depend on the ability of officers and other key employees to continue to implement and improve operational, credit, financial, management and other internal risk controls and processes, and improve reporting systems and procedures, while at the same time maintaining and growing existing businesses and client relationships. The Company may not successfully implement such changes or improvements in an efficient or timely manner, or it may discover deficiencies in its existing systems and controls that adversely affect the Company’s ability to grow its existing businesses and client relationships and could require the Company to incur additional expenditures to expand its administrative and operational infrastructure. If the Company is unable to maintain and implement improvements to its controls, processes, and reporting systems and procedures, the Company may lose customers, experience compliance and operational problems or incur additional expenditures beyond current projections, any one of which could adversely affect the Company’s financial results.

The Company’s expansion strategy may not prove to be successful and its market value and profitability may suffer.

The Company continually evaluates expansion through acquisitions of banks and other financial businesses. Like previous acquisitions by the Company, any future acquisitions will be accompanied by risks commonly encountered in such transactions, including, among other things:

• time and expense incurred while identifying, evaluating and negotiating potential acquisitions and transactions;

• difficulty in accurately estimating the value of target companies or assets and in evaluating target companies or assets’ credit, operations, management, and market risks;

• potential payment of a premium over book and market values that may cause dilution of the Company’s tangible book value or earnings per share;

• exposure to unknown or contingent liabilities of the target company;

• potential exposure to asset quality issues of the target company;

• difficulty of integrating the operations and personnel;

• potential disruption of the Company’s ongoing business;

• failure to retain key personnel at the acquired business;

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• inability of the Company’s management to maximize its financial and strategic position by the successful implementation of uniform product offerings and the incorporation of uniform technology into the Company’s product offerings and control systems; and

• failure to realize any expected revenue increases, cost savings, and other projected benefits from an acquisition.

The Company expects that competition for suitable acquisition candidates may be significant. The Company may compete with other banks or financial service companies with similar acquisition strategies, many of which are larger and have greater financial and other resources. The Company cannot assure that it will be able to successfully identify and acquire suitable acquisition targets on acceptable terms and conditions, or that it will be able to obtain the regulatory approvals needed to complete any such transactions.

The Company cannot provide any assurance that it will be successful in overcoming these risks or any other problems encountered in connection with acquisitions. Potential regulatory enforcement actions could also adversely affect the Company's ability to engage in certain acquisition activities. The Company’s inability to overcome the risks inherent in the successful completion and integration of acquisitions could have an adverse effect on the achievement of the Company's business strategy.

There are substantial risks and uncertainties associated with the introduction or expansion of lines of business or new products and services within existing lines of business.

From time to time, the Company may implement new lines of business, offer new products and services within existing lines of business, or offer existing products or services to new industries or market segments. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed or industries are heavily regulated. In developing and marketing new lines of business and/or new products and services, the Company may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove attainable. External factors, such as compliance with laws and regulations, competitive alternatives, and shifting market preferences or government policies, may also impact the successful implementation of a new line of business, product or service or the offering of existing products and services to an emerging industry. Furthermore, any new line of business and/or new product or service could have a significant impact on the effectiveness of the Company’s system of internal controls. Failure to successfully manage these risks in the development and implementation of new lines of business or new products or services could have a material adverse effect on the Company’s business, results of operations, and financial condition.

The Company’s future success depends on its ability to compete effectively in a highly competitive and rapidly evolving market.

The Company faces substantial competition in all phases of its operations from a variety of different competitors. The Company’s competitors, including large commercial banks, community banks, thrift institutions, mutual savings banks, credit unions, finance companies, insurance companies, securities dealers, brokers, mortgage bankers, investment advisors, money market mutual funds, and other financial institutions, compete with lending and deposit-gathering services offered by the Company. Increased competition in the Company’s markets may result in reduced loans and deposits or less favorable pricing.

There is competition for financial services in the markets in which the Company conduct its businesses, including from many local commercial banks, as well as numerous national and regionally based commercial banks. In particular, the Company has experienced intense price and terms competition in some of the lending lines of business and deposits in recent years. Many of these competing institutions have much greater financial and marketing resources than the Company has. Due to their size, larger competitors can achieve economies of scale and may offer a broader range of products and services or more attractive pricing than the Company. In addition, some of the financial services organizations with which the Company competes are not subject to the same degree of regulation as is imposed on bank holding companies and federally insured depository institutions. As a result, these non-bank competitors have certain advantages over the Company in accessing funding and in providing various services.

The banking business in the Company’s primary market areas is very competitive, and the level of competition facing the Company may increase further, which may limit its asset growth and financial results. In particular, the Company's predominate source of revenue is net interest income from its loan portfolio. Therefore, if the Company is unable to compete effectively, including sustaining loan and deposit growth at its historical levels, its business and results of operations may be adversely affected.

The financial services industry also is facing increasing competitive pressure from the introduction of disruptive new technologies, often by non-traditional competitors and so-called “FinTech” companies. Among other things, technology and other changes are allowing customers to complete financial transactions that historically have involved banks at one or both ends of the transaction. For example, customers can now pay bills and transfer funds directly without going through a bank. The process of eliminating banks as intermediaries, known as disintermediation, could result in the loss of fee income, as well as the loss of customer deposits.

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The Company’s success is dependent upon its ability to recruit and retain qualified employees, including members of its divisional and business line leadership and management teams.

The Company’s business plan includes and is dependent upon hiring and retaining highly qualified and motivated executives and employees at every level. In particular, the Company’s relative success to date has been partly the result of its management’s ability to identify and retain highly qualified employees in administrative support roles, as well as those with expertise in certain specialty areas or that have long-standing relationships in their communities or markets. These professionals bring with them valuable knowledge, specialized skills and expertise, and customer relationships and have been an integral part of the Company’s ability to attract deposits and to expand its market share.

Additionally, as part of the Company's strategy, the Company depends on divisional and business line leadership and management teams in each of its significant geographic locations. In addition to their skills and experience as bankers, these persons provide the Company with extensive ties within markets upon which the Company’s competitive strategy is based.

The Company’s ability to retain these highly qualified and motivated persons may be hindered by the fact that it has not entered into employment agreements with most of them. The Company incentivizes employee retention through its equity incentive plans; however, the Company cannot guarantee the effectiveness of its equity incentive plans in retaining these key employees and executives. Were the Company to lose key employees, it may not be able to replace them with equally qualified persons who bring the same knowledge of and ties to the communities and markets within which the Company operates. If the Company is unable to hire or retain qualified employees, it may not be able to successfully execute its business strategy or may incur additional costs to achieve its objectives.

The Company could be harmed if its succession planning is inadequate to mitigate the loss of key members of its senior management team.

The Company believes that its senior management team, including, but not limited to, Robert Sarver, its Chairman and former CEO, have contributed greatly to its performance. Mr. Sarver recently transitioned to a new role as Executive Chairman, and Kenneth Vecchione became the CEO on April 1, 2018. In addition, the Company from time to time experiences retirements and other changes to its senior management team, including the recent appointment of James Haught as President of the Company effective April 1, 2018. The Company's future performance depends on a smooth transition of its senior management, including finding and training highly qualified replacements who are properly equipped to lead the Company. The Company has adopted retention strategies, including equity awards, from which its senior management team benefits in order to achieve its goals, and entered into employment agreements with each of Messrs. Vecchione and Haught. However, the Company cannot assure its succession planning and retention strategies will be effective. The loss of senior management, particularly during this transition period, could have an adverse effect on the Company’s business.

The Company's risk management practices may prove to be inadequate or not fully effective.

The Company's risk management framework seeks to mitigate risk and appropriately balance risk and return. The Company has established policies and procedures intended to identify, monitor, and manage the types of risk to which it is subject, including, but not limited to, credit risk, market risk, liquidity risk, operational risk, legal and compliance risk, and reputational risk. A BOD level risk committee approves and reviews the Company's risk management policies and oversees operation of the Company's risk management framework. Although the Company has devoted significant resources to developing its risk management policies and procedures and expects to continue to do so in the future, these policies and procedures, as well as the Company's risk management techniques, may not be fully effective. In addition, as regulations and the markets in which the Company operates continue to evolve, the Company's risk management framework may not always keep sufficient pace with those changes. If the Company's risk management framework does not effectively identify or mitigate its risks, the Company could suffer unexpected losses or other material adverse impact. Management of the Company's risks in some cases depends upon the use of analytical and/or forecasting models. If the models the Company uses to mitigate these risks are inadequate, or are subject to ineffective governance, the Company may incur increased losses. In addition, there may be risks that exist, or that develop in the future, that the Company has not appropriately anticipated, identified, or mitigated.

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The Company's internal controls and procedures may fail or be circumvented and the accuracy of the Company's judgments and estimates about financial and accounting matters may impact operating results and financial condition.

The Company's management regularly reviews and updates its internal controls over financial reporting, disclosure controls and procedures, and corporate governance policies and procedures. Any system of controls and procedures, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met.  Any failure or circumvention of the Company's controls and procedures, or failure to comply with regulations related to controls and procedures, could result in materially inaccurate reported financial statements and/or have a material adverse effect on the Company's business, results of operations, and financial condition. Similarly, the Company's management makes certain estimates and judgments in preparing the Company's financial statements.  The quality and accuracy of those estimates and judgments will impact the Company's operating results and financial condition.

If the Company is unable to understand and adapt to technological change, the Company’s business could be adversely affected.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology can increase efficiency and enable financial institutions to better serve customers and to reduce costs. However, some new technologies needed to compete effectively result in incremental operating costs. The Company’s future success depends, in part, upon its ability to address the needs of its customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in operations. Many of the Company’s competitors, because of their larger size and available capital, have substantially greater resources to invest in technological improvements. The Company may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to its customers. Failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse impact on the Company’s business and, in turn, its financial condition and results of operations.

The markets in which the Company operates are subject to the risk of both natural and manmade disasters.

Many of the real and personal properties securing the Company's loans are located in California. Much of California recently experienced wildfires causing significant damage throughout the state. While these wildfires did not significantly damage the Company's own properties, it is possible that its borrowers may experience losses as a result, which may materially impair their ability to meet the terms of their obligations. California is also prone to other natural disasters, including, but not limited to, drought, earthquakes, flooding, and mudslides. Additional significant natural or manmade disasters in the state of California or in the Company's other markets could lead to damage or injury to the Company's own properties and/or employees, and could increase the risk that many of its borrowers may experience losses or sustained job interruption, which may materially impair their ability to maintain deposits or meet the terms of their loan obligations. Therefore, additional natural disasters, a manmade disaster or a catastrophic event, or a combination of these or other factors, in any of the Company's markets could have a material adverse effect on the Company's business, financial condition, results of operations, and cash flows.

Risks Related to the Banking Industry

The Company operates in a highly regulated environment and the laws and regulations that govern the Company’s operations, corporate governance, executive compensation, and accounting principles, or changes in them, or the Company’s failure to comply with them, may adversely affect the Company.

The Company is subject to extensive regulation, supervision, and legislation that govern almost all aspects of its operations. Intended to protect customers, depositors, and the DIF, these laws and regulations, among other matters, prescribe minimum capital requirements, impose limitations on the business activities in which the Company can engage, require monitoring and reporting of suspicious activity and of customers who are perceived to present a heightened risk of money laundering or other illegal activity, limit the dividends or distributions that WAB can pay to the Company or that the Company can pay to its stockholders, restrict the ability of affiliates to guarantee the Company’s debt, impose certain specific accounting requirements on the Company that may be more restrictive and may result in greater or earlier charges to earnings or reductions in the Company’s capital than GAAP, among other things. Compliance with laws and regulations can be difficult and costly, and changes to laws and regulations often impose significant additional compliance costs. To the extent the Company continues to grow larger and become more complex, regulatory oversight and risk and the cost of compliance will likely increase, which may adversely affect the Company. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Supervision and Regulation” included in this Form 10-K for a more detailed summary of the regulations and supervision to which the Company are subject.

Changes to the legal and regulatory framework governing the Company’s operations, including the passage and continued implementation of the Dodd-Frank Act and EGRRCPA, have drastically revised the laws and regulations under which the Company operates. In general, bank regulators have increased their focus on risk management and regulatory compliance, and the Company

20

expects this focus to continue. Additional compliance requirements may be costly to implement, may require additional compliance personnel, and may limit the Company’s ability to offer competitive products to its customers.

The Company is also subject to changes in federal and state law, as well as regulations and governmental policies, income tax laws, and accounting principles. Regulations affecting banks and other financial institutions are undergoing continuous review and frequently change, and the ultimate effect of such changes cannot be predicted. Regulations and laws may be modified at any time, and new legislation may be enacted that will affect the Company, WAB, and the Company’s other subsidiaries. Any changes in federal and state law, as well as regulations and governmental policies, income tax laws, and accounting principles, could affect the Company in substantial and unpredictable ways, including ways that may adversely affect the Company’s business, financial condition, or results of operations. Failure to appropriately comply with any such laws, regulations or principles or an alleged failure to comply, even if the Company acted in good faith or the alleged failure reflects a difference in interpretation, could result in sanctions by regulatory agencies, civil money penalties or damage to the Company’s reputation, all of which could adversely affect the Company’s business, financial condition, or results of operations.

State and federal banking agencies periodically conduct examinations of the Company’s business, including for compliance with laws and regulations, and the Company’s failure to comply with any supervisory actions to which the Company is or becomes subject as a result of such examinations may adversely affect the Company.

State and federal banking agencies periodically conduct examinations of the Company’s business, including for compliance with laws and regulations. If, as a result of an examination, an agency were to determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, or other aspects of any of the Company’s operations had become unsatisfactory, or that the Company or its management was in violation of any law or regulation, federal banking agencies may take a number of different remedial or enforcement actions it deems appropriate to remedy such a deficiency. These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative actions to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in the Company’s capital, to restrict the Company’s growth, and to assess civil monetary penalties against the Company and/or officers or directors, and to remove officers and directors. If the FDIC concludes that such conditions cannot be corrected or there is an imminent risk of loss to depositors, it may terminate WAB’s deposit insurance. Under Arizona law, the state banking supervisory authority has many of the same enforcement powers with respect to its state-chartered banks. Finally, the CFPB has the authority to examine the Company and has authority to take enforcement actions, including the issuance of cease-and-desist orders or civil monetary penalties against the Company if it finds that the Company offers consumer financial products and services in violation of federal consumer financial protection laws or in an unfair, deceptive, or abusive manner.

If the Company were unable to comply with regulatory directives in the future, or if the Company were unable to comply with the terms of any future supervisory requirements to which the Company may become subject, then it could become subject to a variety of supervisory actions and orders, including cease and desist orders, prompt corrective actions, MOUs, and/or other regulatory enforcement actions. If the Company’s regulators were to take such supervisory actions, then the Company could, among other things, become subject to restrictions on its ability to enter into acquisitions and develop any new business, as well as restrictions on its existing business. The Company also could be required to raise additional capital, dispose of certain assets and liabilities within a prescribed period of time, or both. Failure to implement the measures in the time frames provided, or at all, could result in additional orders or penalties from federal and state regulators, which could result in one or more of the remedial actions described above. In the event the Company was ultimately unable to comply with the terms of a regulatory enforcement action, it could fail and be placed into receivership by the FDIC or the chartering agency. The terms of any such supervisory action and the consequences associated with any failure to comply therewith could have a material negative effect on the Company’s business, operating flexibility, and financial condition.

Uncertainty about the future of LIBOR, and its accepted alternatives, may adversely affect our business.

LIBOR is the reference rate for many transactions in which the Company lends and borrows money, issues, purchases and sells securities and enters into derivative contracts to manage its or its customers’ risk related to these transactions. LIBOR has been the subject of recent national and international regulatory guidance and proposals for reform. The United Kingdom Financial Conduct Authority, which regulates the process for establishing LIBOR, announced in July 2017 that it intends to stop persuading or compelling banks to submit rates for the calculation of LIBOR to the administrator of LIBOR after 2021.

In June 2017, the Alternative Reference Rate Committee, a committee of private-market derivative participants and their regulators convened by the Federal Reserve to identity alternative reference interest rates, announced an SOFR, a broad Treasuries overnight repurchase agreement financing rate, as its preferred alternative to U.S. dollar LIBOR. In December 2017, the Federal Reserve announced final plans for the production of SOFR. The SOFR is published each business day by the Federal Reserve Bank of New York, in cooperation with the Office of Financial Research. Plans for alternative reference rates for other currencies have also been announced.

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Uncertainty as to the nature of alternative reference rates and as to potential changes or other reforms to LIBOR may adversely affect LIBOR rates and interest rates indexed to LIBOR, as well as other interest rates. At this time, it is not possible to predict how markets will respond to these alternative reference rates, and the effect of any changes or reforms to LIBOR or discontinuation of LIBOR on new or existing financial instruments to which the Company has exposure. If LIBOR ceases to exist, or if the methods of calculating LIBOR change from current methods for any reason, interest rates on financial instruments whose value is tied to LIBOR may be adversely affected. The manner and impact of this transition and related developments, as well as the effect of these developments on the Company's funding costs, investment and trading securities portfolios, and business, is uncertain and may be materially adverse to the Company's profitability.

Changes in interest rates and increased rate competition could adversely affect the Company’s profitability, business, and prospects.

Most of the Company’s assets and liabilities are monetary in nature, which subjects the Company to significant risks from changes in interest rates and can impact the Company’s net income and the valuation of its assets and liabilities. Increases or decreases in prevailing interest rates could have an adverse effect on the Company’s business, asset quality, and prospects. The Company’s operating income and net income depend to a great extent on its net interest margin. Net interest margin is the difference between the interest yields the Company receives on loans, securities, and other earning assets and the interest rates the Company pays on interest-bearing deposits, borrowings, and other liabilities. These rates are highly sensitive to many factors beyond the Company’s control, including competition, general economic conditions, and monetary and fiscal policies of various governmental and regulatory authorities, including the FRB. If the rate of interest the Company pays on its interest-bearing deposits, borrowings, and other liabilities increases more than the rate of interest the Company receives on loans, securities, and other earning assets increases, the Company’s net interest income, and therefore its earnings, would be adversely affected. The Company’s earnings also could be adversely affected if the rates on the Company’s loans and other investments fall more quickly than those on its deposits and other liabilities. The Company has recently experienced increased competition on the basis of interest rates for both loans and deposits.

In addition, loan volumes are affected by market interest rates on loans. Rising interest rates generally are associated with a lower volume of loan originations, while lower interest rates are usually associated with higher loan originations. Conversely, in rising interest rate environments, loan repayment rates will decline and in falling interest rate environments, loan repayment rates will increase. The Company cannot guarantee that it will be able to minimize interest rate risk. In addition, an increase in the general level of interest rates may adversely affect the ability of certain borrowers to pay the interest on and principal of their obligations.

Interest rates also affect how much money the Company can lend. When interest rates rise, the cost of borrowing increases. Accordingly, changes in market interest rates could materially and adversely affect the Company’s net interest spread, asset quality, loan origination volume, business, financial condition, results of operations, and cash flows.

The Company is exposed to risk of environmental liabilities with respect to properties to which the Company obtains title.

Approximately 56% of the Company’s loan portfolio at December 31, 2018 was secured by real estate. In the course of the Company’s business, the Company may foreclose on and take title to real estate, and could be subject to environmental liabilities with respect to these properties. The Company may be held liable to a governmental entity or to third parties for property damage, personal injury, investigation, and clean-up costs incurred by these parties in connection with environmental contamination, or may be required to investigate or clean up hazardous or toxic substances, or chemical releases at a property. The costs associated with investigation or remediation activities could be substantial. In addition, if the Company is the owner or former owner of a contaminated site, the Company may be subject to common law claims by third parties based on damages and costs resulting from environmental contamination emanating from the property. These costs and claims could be substantial and adversely affect the Company’s business and prospects.

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Risks Related to the Company's Common Stock

The price of the Company’s common stock may fluctuate significantly in the future.

The price of the Company’s common stock on the New York Stock Exchange constantly changes. The Company expects that the market price of its common stock will continue to fluctuate and there can be no assurances about the market price for its common stock.

The Company’s stock price may fluctuate as a result of a variety of factors, many of which are beyond the Company’s control. These factors include:

• actual or anticipated changes in the political climate or public policy, including international trade policy;

• sales of the Company’s equity securities;

• the Company’s financial condition, performance, creditworthiness, and prospects;

• quarterly variations in the Company’s operating results or the quality of its assets;

• operating results that vary from the expectations of management, securities analysts, and investors;

• changes in expectations as to the Company’s future financial performance;

• announcements of strategic developments, acquisitions, and other material events by the Company or its competitors;

• the operating and securities price performance of other companies that investors believe are comparable to the Company;

• the credit, mortgage, and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally;

• changes in national and global financial markets and economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility and other geopolitical, regulatory or judicial events; and

• the Company’s past and future dividend and share repurchase practices.

There may be future sales or other dilution of the Company’s equity, which may adversely affect the market price of the Company’s common stock.

The Company is not restricted from issuing additional common stock, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common stock. The Company also grants a significant number of shares of common stock to employees and directors under the Company’s Incentive Plan each year. The issuance of any additional shares of the Company’s common stock or preferred stock or securities convertible into, exchangeable for or that represent the right to receive common stock, or the exercise of such securities could be substantially dilutive to stockholders of the Company’s common stock. Holders of the Company’s common stock have no preemptive rights that entitle such holders to purchase their pro rata share of any offering of shares of any class or series. Because the Company’s decision to issue securities in any future offering will depend on market conditions, its acquisition activity, and other factors, the Company cannot predict or estimate the amount, timing, or nature of its future offerings. Thus, the Company’s stockholders bear the risk of the Company’s future offerings reducing the market price of the Company’s common stock and diluting their stock holdings in the Company.

Offerings of debt, which would be senior to the Company’s common stock upon liquidation, and/or preferred equity securities which may be senior to the Company’s common stock for purposes of dividend distributions or upon liquidation, may adversely affect the market price of the Company’s common stock.

The Company may from time to time issue debt securities, borrow money through other means, or issue preferred stock. From time to time the Company borrows money from the FRB, the FHLB, other financial institutions, and other lenders. At December 31, 2018, the Company had outstanding $175,000,000 of 6.25% subordinated debentures with a maturity date of July 1, 2056, and WAB had outstanding $150,000,000 aggregate principal amount of 5.00% Fixed-to-Floating Rate Subordinated Notes due July 15, 2025. All of these securities or borrowings have priority over the common stock in a liquidation, which could affect the market price of the Company’s stock.

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The Company’s BOD is authorized to issue one or more classes or series of preferred stock from time to time without any action on the part of the stockholders. The Company’s BOD also has the power, without stockholder approval, to set the terms of any such classes or series of preferred stock that may be issued, including voting rights, dividend rights, and preferences over the Company’s common stock with respect to dividends or upon the Company’s dissolution, winding-up, and liquidation and other terms. If the Company issues preferred stock in the future that has a preference over its common stock, with respect to the payment of dividends or upon the Company’s liquidation, dissolution, or winding up, or if the Company issues preferred stock with voting rights that dilute the voting power of its common stock, the rights of holders of its common stock, the market price of its common stock could be adversely affected.

Anti-takeover provisions could negatively impact the Company’s stockholders.

Provisions of Delaware law and provisions of the Company’s Certificate of Incorporation, as amended, and its Amended and Restated Bylaws could make it more difficult for a third party to acquire control of the Company or have the effect of discouraging a third party from attempting to acquire control of the Company. Additionally, the Company’s Certificate of Incorporation, as amended, authorizes the Company’s BOD to issue additional series of preferred stock and such preferred stock could be issued as a defensive measure in response to a takeover proposal. These provisions could make it more difficult for a third party to acquire the Company even if an acquisition might be in the best interest of the Company’s stockholders.

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Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

The Company and WAB are headquartered at One E. Washington Street in Phoenix, Arizona. WAB operates 38 domestic branch locations, which includes 6 executive and administrative offices, 20 of these locations are owned and 18 are leased.  The Company also has 11 loan production offices. In addition, WAB owns and occupies a 36,000 square foot operations facility in Las Vegas, Nevada.  See "Item 1. Business” for location cities. For information regarding rental payments, see "Note 4. Premises and Equipment" of the Consolidated Financial Statements included in this Form 10-K.

Item 3. Legal Proceedings

There are no material pending legal proceedings to which the Company is a party or to which any of its properties are subject. There are no material proceedings known to the Company to be contemplated by any governmental authority. See the “Supervision and Regulation” section of "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K for additional information. From time to time, the Company is involved in a variety of litigation matters in the ordinary course of its business and anticipates that it will become involved in new litigation matters in the future.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

The Company’s common stock began trading on the New York Stock Exchange under the symbol “WAL” on June 30, 2005. The Company has filed, without qualifications, its 2018 Domestic Company Section 303A CEO Certification regarding its compliance with the NYSE’s corporate governance listing standards.

Holders

At December 31, 2018, there were approximately 1,542 stockholders of record. This number does not include stockholders who hold shares in the name of brokerage firms or other financial institutions. The Company is not provided the exact number of or identities of these stockholders. There are no other classes of common equity outstanding.

Dividends

WAL has never paid a cash dividend on its common stock and currently has no plans to pay dividends in the future.

Share Repurchases

The following table provides information about the Company's purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act for the periods indicated. These share repurchases consist of those made pursuant to the Company's publicly announced repurchase plan, as well as those made to satisfy minimum tax withholding obligations associated with the vesting of employee stock awards.

	(a)	(b)		(c)	(d)
	Total Number of Shares Purchased (1)(2)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares That May Yet to be Purchased Under the Plans or Programs
10/1/2018 through 10/31/2018	21,555	$	48.32	—	$	—
11/1/2018 through 11/30/2018	—	—		—	—
12/1/2018 through 12/31/2018	901,050	39.58		900,883	214,339,618
Total	922,605	$	39.78	900,883	$	214,339,618

(1) Shares purchased during the period were transferred to the Company from employees in satisfaction of minimum tax withholding obligations associated with the vesting of stock awards during the period.

(2) On December 12, 2018, the Company announced that it had adopted a common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. The repurchase program will expire on December 31, 2019.

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Performance Graph

The following graph summarizes a five year comparison of the cumulative total returns for the Company’s common stock, the Standard & Poor’s 500 stock index and the KBW Regional Banking Total Return Index, each of which assumes an initial value of $100.00 on December 31, 2013 and reinvestment of dividends.

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Item 6. Selected Financial Data.

The following selected financial data have been derived from the Company’s consolidated financial condition and results of operations, as of and for the years ended December 31, 2018, 2017, 2016, 2015, and 2014, and should be read in conjunction with the Consolidated Financial Statements and the related notes included elsewhere in this report: 

	Year Ended December 31,
	2018		2017		2016		2015		2014
	(in thousands)
Results of Operations:
Interest income	$	1,033,483	$	845,513	$	700,506	$	525,144	$	416,379
Interest expense	117,604		60,849		43,293		32,568		31,486
Net interest income	915,879		784,664		657,213		492,576		384,893
Provision for credit losses	23,000		17,250		8,000		3,200		4,726
Net interest income after provision for credit losses	892,879		767,414		649,213		489,376		380,167
Non-interest income	43,116		45,344		42,915		29,768		24,651
Non-interest expense	425,667		360,941		330,949		260,606		207,319
Income from continuing operations before provision for income taxes	510,328		451,817		361,179		258,538		197,499
Income tax expense	74,540		126,325		101,381		64,294		48,390
Income from continuing operations	435,788		325,492		259,798		194,244		149,109
Loss from discontinued operations, net of tax	—		—		—		—		(1,158		)
Net income	$	435,788	$	325,492	$	259,798	$	194,244	$	147,951

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	As of and for the Year Ended December 31,
	2018			2017			2016			2015			2014
	(dollars in thousands, except per share data)
Per Share Data:
Earnings per share available to common stockholders - basic	$	4.16		$	3.12		$	2.52		$	2.05		$	1.69
Earnings per share available to common stockholders - diluted	4.14			3.10			2.50			2.03			1.67
Earnings per share from continuing operations - basic	4.16			3.12			2.52			2.05			1.70
Earnings per share from continuing operations - diluted	4.14			3.10			2.50			2.03			1.69
Book value per common share	24.90			21.14			18.00			15.44			10.49
Tangible book value per share1	22.07			18.31			15.17			12.54			10.21
Shares outstanding at period end	104,949			105,487			105,071			103,087			88,691
Weighted average shares outstanding - basic	104,669			104,179			103,042			94,570			86,693
Weighted average shares outstanding - diluted	105,370			104,997			103,843			95,219			87,506
Selected Balance Sheet Data:
Cash and cash equivalents	$	498,572		$	416,768		$	284,491		$	224,640		$	164,396
Investment securities and money market investments	3,694,961			3,754,569			2,702,512			1,984,126			1,522,546
Loans, net of deferred loan fees and costs	17,710,629			15,093,935			13,208,436			11,136,663			8,398,265
Allowance for credit losses	152,717			140,050			124,704			119,068			110,216
Total assets	23,109,486			20,329,085			17,200,842			14,275,089			10,600,498
Total deposits	19,177,447			16,972,532			14,549,863			12,030,624			8,931,043
Other borrowings	491,000			390,000			80,000			150,000			390,263
Qualifying debt	360,458			376,905			367,937			210,328			40,437
Total stockholders' equity	2,613,734			2,229,698			1,891,529			1,591,502			1,000,928
Selected Other Balance Sheet Data:
Average assets	$	21,246,315		$	18,869,553		$	16,134,263		$	12,420,803		$	9,891,109
Average earning assets	20,064,545			17,770,939			15,117,364			11,621,977			9,270,465
Average stockholders' equity	2,411,709			2,079,287			1,770,914			1,323,952			964,131
Selected Financial and Liquidity Ratios:
Return on average assets	2.05		%	1.72		%	1.61		%	1.56		%	1.50		%
Return on average tangible common equity1	20.64			18.31			17.71			17.83			18.52
Net interest margin	4.68			4.65			4.58			4.51			4.42
Loan to deposit ratio	92.35			88.93			90.78			92.57			94.03
Capital Ratios:
Tier 1 leverage ratio	10.9		%	10.3		%	9.9		%	9.8		%	9.7		%
Tier 1 capital ratio	11.1			10.8			10.5			10.2			10.5
Total capital ratio	13.2			13.3			13.2			12.2			11.7
Selected Asset Quality Ratios:
Net charge-offs (recoveries) to average loans outstanding	0.06		%	0.01		%	0.02		%	(0.06		)%	(0.07		)%
Non-accrual loans to gross organic loans	0.16			0.29			0.31			0.44			0.81
Non-accrual loans and repossessed assets to total assets	0.20			0.36			0.51			0.65			1.18
Loans past due 90 days or more and still accruing to gross loans	0.00			0.00			0.01			0.03			0.06
Allowance for credit losses to gross loans	0.86			0.93			0.95			1.07			1.31
Allowance for credit losses to non-accrual loans	550.41			318.84			309.65			246.10			162.90

¹ See Non-GAAP Financial Measures section beginning on page 32.

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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis is designed to provide insight on the financial condition and results of operations of Western Alliance Bancorporation and its subsidiaries and should be read in conjunction with “Item 8. Financial Statements and Supplementary Data.” This discussion and analysis contains forward-looking statements that involve risk, uncertainties, and assumptions. Certain risks, uncertainties, and other factors, including, but not limited to, those set forth under “Forward-Looking Statements” at the beginning of Part I of this Form 10-K and those discussed in Part I, Item 1A of this Form 10-K under the heading "Risk Factors," may cause actual results to differ materially from those projected in the forward-looking statements.

Financial Overview and Highlights

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON and FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services.

Financial Result Highlights of 2018

• Net income of $435.8 million for 2018, compared to $325.5 million for 2017

• Diluted earnings per share of $4.14 for 2018, compared to $3.10 per share for 2017

• Net operating revenue of $970.3 million, constituting year-over-year growth of 17.2%, or $142.6 million, compared to an increase in operating non-interest expenses of 15.4%, or $55.8 million¹

• Operating PPNR increased$86.8 million to $553.5 million, compared to $466.6 million in 2017¹

• Income tax expense decreased$51.8 million to $74.5 million, compared to $126.3 million in 2017

• Total loans of $17.71 billion, up $2.62 billion from December 31, 2017

• Total deposits of $19.18 billion, up $2.20 billion from December 31, 2017

• Stockholders' equity of $2.61 billion, an increase of $384.0 million from December 31, 2017

• Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 0.20% of total assets, from 0.36% at December 31, 2017

• Net loan charge-offs to average loans outstanding of 0.06% for 2018, compared to 0.01% for 2017

• Net interest margin of 4.68% in 2018, compared to 4.65% in 2017

• Return on average assets of 2.05% for 2018, compared to 1.72% for 2017

• Tangible common equity ratio of 10.2%, compared to 9.6% at December 31, 2017¹

• Tangible book value per share, net of tax, of $22.07, an increase of 20.5% from $18.31 at December 31, 2017¹

• Operating efficiency ratio of 41.9% in 2018, compared to 41.5% in 2017¹ 

The impact to the Company from these items, and others of both a positive and negative nature, are discussed in more detail below as they pertain to the Company’s overall comparative performance for the year ended December 31, 2018.

¹ See Non-GAAP Financial Measures section beginning on page 32.

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As a bank holding company, management focuses on key ratios in evaluating the Company's financial condition and results of operations.

Results of Operations and Financial Condition

A summary of the Company's results of operations, financial condition, and selected metrics are included in the following tables: 

	Year Ended December 31,
	2018			2017			2016
	(dollars in thousands, except per share amounts)
Net income	$	435,788		$	325,492		$	259,798
Earnings per share - basic	4.16			3.12			2.52
Earnings per share - diluted	4.14			3.10			2.50
Return on average assets	2.05		%	1.72		%	1.61		%
Return on average tangible common equity1	20.64			18.31			17.71
Net interest margin	4.68			4.65			4.58
Operating efficiency ratio1	41.93			41.51			43.42

	December 31,
	2018		2017
	(in thousands)
Total assets	$	23,109,486	$	20,329,085
Total loans, net of deferred loan fees and costs	17,710,629		15,093,935
Securities and money market investments	3,694,961		3,754,569
Total deposits	19,177,447		16,972,532
Borrowings	491,000		390,000
Qualifying debt	360,458		376,905
Stockholders' equity	2,613,734		2,229,698
Tangible common equity, net of tax1	2,316,464		1,931,648

¹ See Non-GAAP Financial Measures section beginning on page 32.

Asset Quality

For all banks and bank holding companies, asset quality plays a significant role in the overall financial condition of the institution and results of operations. The Company measures asset quality in terms of non-accrual loans as a percentage of gross loans and net charge-offs as a percentage of average loans. Net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans. The following table summarizes the Company's key asset quality metrics: 

	At or for the Year Ended December 31,
	2018			2017			2016
	(dollars in thousands)
Non-accrual loans	$	27,746		$	43,925		$	40,272
Repossessed assets	17,924			28,540			47,815
Non-performing assets	82,722			114,939			142,791
Loans past due 90 days and still accruing	594			43			1,067
Non-accrual loans to gross loans	0.16		%	0.29		%	0.31		%
Nonaccrual and repossessed assets to total assets	0.20			0.36			0.51
Loans past due 90 days and still accruing to gross loans	0.00			0.00			0.01
Allowance for credit losses to gross loans	0.86			0.93			0.94
Allowance for credit losses to non-accrual loans	550.41			318.84			309.65
Net charge-offs to average loans outstanding	0.06			0.01			0.02

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Asset and Liability Growth

The Company’s assets and liabilities are comprised primarily of loans and deposits. Therefore, the ability to originate new loans and attract new deposits is fundamental to the Company’s growth.

Total assets increased to $23.11 billion at December 31, 2018 from $20.33 billion at December 31, 2017. The increase in total assets of $2.78 billion, or 13.7% relates primarily to organic loan growth of $2.62 billion or 17.3%, to $17.71 billion as of December 31, 2018, compared to $15.09 billion as of December 31, 2017. The increase in loans from December 31, 2017 was driven by commercial and industrial loans of $921.3 million, residential real estate loans of $778.4 million, and construction and land development loans of $502.5 million. Total deposits increased $2.20 billion, or 13.0%, to $19.18 billion as of December 31, 2018 from $16.97 billion as of December 31, 2017. The increase in deposits from December 31, 2017 was driven by an increase in savings and money market deposits of $1.00 billion and interest-bearing demand deposits of $969.4 million from December 31, 2017.

RESULTS OF OPERATIONS

The following table sets forth a summary financial overview for the comparable periods:

	Year Ended December 31,				Increase			Year Ended December 31,				Increase
	2018		2017		(Decrease)			2017		2016		(Decrease)
	(in thousands, except per share amounts)
Consolidated Income Statement Data:
Interest income	$	1,033,483	$	845,513	$	187,970		$	845,513	$	700,506	$	145,007
Interest expense	117,604		60,849		56,755			60,849		43,293		17,556
Net interest income	915,879		784,664		131,215			784,664		657,213		127,451
Provision for credit losses	23,000		17,250		5,750			17,250		8,000		9,250
Net interest income after provision for credit losses	892,879		767,414		125,465			767,414		649,213		118,201
Non-interest income	43,116		45,344		(2,228		)	45,344		42,915		2,429
Non-interest expense	425,667		360,941		64,726			360,941		330,949		29,992
Income before provision for income taxes	510,328		451,817		58,511			451,817		361,179		90,638
Income tax expense	74,540		126,325		(51,785		)	126,325		101,381		24,944
Net income	$	435,788	$	325,492	$	110,296		$	325,492	$	259,798	$	65,694
Earnings per share - basic	$	4.16	$	3.12	$	1.04		$	3.12	$	2.52	$	0.60
Earnings per share - diluted	$	4.14	$	3.10	$	1.04		$	3.10	$	2.50	$	0.60

Non-GAAP Financial Measures

The following discussion and analysis contains financial information determined by methods other than those prescribed by GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measurements typically adjust GAAP performance measures to exclude the effects of certain significant activities or transactions that, in management's opinion, do not reflect recurring period-to-period comparisons of the Company's performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a complete understanding of the operating results of the Company's core businesses. Since the presentation of these non-GAAP performance measures and their impact differ between companies, these non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Operating Pre-Provision Net Revenue

Operating PPNR is defined by the Federal Reserve in SR 14-3, which requires companies subject to the rule to project PPNR over the planning horizon for each of the economic scenarios defined annually by the regulators. Banking regulations define PPNR as net interest income plus non-interest income less non-interest expense. Management has further adjusted this metric to exclude any non-recurring or non-operational elements of non-interest income or non-interest expense, which are outlined in the table below. Management believes that this is an important metric as it illustrates the underlying performance of the Company, it enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies.

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The following table shows the components of operating PPNR for the years ended December 31, 2018, 2017, and 2016:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Total non-interest income	$	43,116		$	45,344		$	42,915
Less:
(Loss) gain on sales of investment securities, net (1)	(7,656		)	2,343			1,059
Unrealized (losses) gains on assets measured at fair value, net (1)	(3,611		)	(1		)	8
Total operating non-interest income	54,383			43,002			41,848
Plus: net interest income	915,879			784,664			657,213
Net operating revenue	$	970,262		$	827,666		$	699,061
Total non-interest expense	$	425,667		$	360,941		$	330,949
Less:
Contribution to charitable foundation (2)	7,645			—			—
401(k) plan change and other miscellaneous items (2)	1,218			—			—
Net loss (gain) on sales / valuations of repossessed and other assets (1)	9			(80		)	(125		)
Acquisition / restructure expense (1)	—			—			12,412
Total operating non-interest expense	$	416,795		$	361,021		$	318,662
Operating pre-provision net revenue	$	553,467		$	466,645		$	380,399
Plus:
Revenue adjustments	(11,267		)	2,342			1,067
Less:
Provision for credit losses	23,000			17,250			8,000
Expense adjustments	8,872			(80		)	12,287
Income before provision for income taxes	510,328			451,817			361,179
Income tax expense	74,540			126,325			101,381
Net income	$	435,788		$	325,492		$	259,798

(1) The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of this non-operational item.

(2) The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of these non-recurring items. See "Note 19. Related Party Transactions" for further information regarding the charitable contribution.

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Tangible Common Equity

The following table presents financial measures related to tangible common equity. Tangible common equity represents total stockholders' equity, less identifiable intangible assets and goodwill. Management believes that tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses. In addition, management believes that these measures improve comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangible assets.

	December 31
	2018			2017
	(dollars and shares in thousands)
Total stockholders' equity	$	2,613,734		$	2,229,698
Less: goodwill and intangible assets	299,155			300,748
Total tangible stockholders' equity	2,314,579			1,928,950
Plus: deferred tax - attributed to intangible assets	1,885			2,698
Total tangible common equity, net of tax	$	2,316,464		$	1,931,648
Total assets	$	23,109,486		$	20,329,085
Less: goodwill and intangible assets, net	299,155			300,748
Tangible assets	22,810,331			20,028,337
Plus: deferred tax - attributed to intangible assets	1,885			2,698
Total tangible assets, net of tax	$	22,812,216		$	20,031,035
Tangible common equity ratio	10.2		%	9.6		%
Common shares outstanding	104,949			105,487
Book value per share	$	24.90		$	21.14
Tangible book value per share, net of tax	22.07			18.31

Operating Efficiency Ratio

The following table shows the components used in the calculation of the operating efficiency ratio, which management uses as a metric for assessing cost efficiency:

	Year Ended December 31,
	2018			2017			2016
	(dollars in thousands)
Total operating non-interest expense	$	416,795		$	361,021		$	318,662
Divided by:
Total net interest income	$	915,879		$	784,664		$	657,213
Plus:
Tax equivalent interest adjustment	23,809			41,989			34,902
Operating non-interest income	54,383			43,002			41,848
Net operating revenue - TEB	$	994,071		$	869,655		$	733,963
Operating efficiency ratio - TEB	41.9		%	41.5		%	43.4		%

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Regulatory Capital

The following table presents certain financial measures related to regulatory capital under Basel III, which includes Common Equity Tier 1 and total capital. The FRB and other banking regulators use Common Equity Tier 1 and total capital as a basis for assessing a bank's capital adequacy; therefore, management believes it is useful to assess financial condition and capital adequacy using this same basis. Specifically, the total capital ratio takes into consideration the risk levels of assets and off-balance sheet financial instruments. In addition, management believes that the classified assets to Common Equity Tier 1 plus allowance measure is an important regulatory metric for assessing asset quality.

	December 31,
	2018			2017
	(dollars in thousands)
Common Equity Tier 1:
Common Equity	$	2,613,734		$	2,229,698
Less:
Non-qualifying goodwill and intangibles	296,769			296,421
Disallowed deferred tax asset	768			638
AOCI related adjustments	(47,055		)	(9,496		)
Unrealized gain on changes in fair value liabilities	13,432			7,785
Common Equity Tier 1	$	2,349,820		$	1,934,350
Divided by: Risk-weighted assets	$	21,983,976		$	18,569,608
Common Equity Tier 1 ratio	10.7		%	10.4		%
Common Equity Tier 1	$	2,349,820		$	1,934,350
Plus:
Trust preferred securities	81,500			81,500
Less:
Disallowed deferred tax asset	—			159
Unrealized gain on changes in fair value liabilities	—			1,947
Tier 1 capital	$	2,431,320		$	2,013,744
Divided by: Tangible average assets	$	22,204,799		$	19,624,517
Tier 1 leverage ratio	10.9		%	10.3		%
Total Capital:
Tier 1 capital	$	2,431,320		$	2,013,744
Plus:
Subordinated debt	305,131			301,020
Qualifying allowance for credit losses	152,717			140,050
Other	8,188			6,174
Less: Tier 2 qualifying capital deductions	—			—
Tier 2 capital	$	466,036		$	447,244
Total capital	$	2,897,356		$	2,460,988
Total capital ratio	13.2		%	13.3		%
Classified assets to Tier 1 capital plus allowance for credit losses:
Classified assets	$	242,101		$	222,004
Divided by:
Tier 1 capital	2,431,320			2,013,744
Plus: Allowance for credit losses	152,717			140,050
Total Tier 1 capital plus allowance for credit losses	$	2,584,037		$	2,153,794
Classified assets to Tier 1 capital plus allowance	9.4		%	10.3		%

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Net Interest Margin

The net interest margin is reported on a TEB. A tax equivalent adjustment is added to reflect interest earned on certain securities and loans that are exempt from federal and state income tax. The following tables set forth the average balances, interest income, interest expense, and average yield (on a fully TEB) for the periods indicated:

	Year Ended December 31,
	2018							2017
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	(dollars in thousands)
Interest earning assets
Loans:
Commercial and industrial	$	7,039,090		$	387,422	5.68	%	$	6,188,473		$	311,375	5.42	%
CRE - non-owner occupied	3,952,702			234,753		5.95		3,629,644			216,423		5.99
CRE - owner occupied	2,263,112			118,351		5.34		2,033,767			101,976		5.27
Construction and land development	1,975,587			137,227		6.96		1,603,328			99,427		6.22
Residential real estate	616,159			29,681		4.82		339,285			16,066		4.74
Consumer	54,078			3,143		5.81		46,033			2,243		4.87
Total loans (1), (2), (3)	15,900,728			910,577		5.82		13,840,530			747,510		5.62
Securities:
Securities - taxable	2,803,350			78,630		2.80		2,579,585			64,043		2.48
Securities - tax-exempt	879,888			33,042		4.69		670,321			24,596		5.45
Total securities (1)	3,683,238			111,672		3.26		3,249,906			88,639		3.10
Other	480,579			11,234		2.34		680,503			9,364		1.38
Total interest earning assets	20,064,545			1,033,483		5.27		17,770,939			845,513		4.99
Non-interest earning assets
Cash and due from banks	145,246							137,537
Allowance for credit losses	(146,288		)					(131,954		)
Bank owned life insurance	168,685							166,054
Other assets	1,014,127							926,977
Total assets	$	21,246,315						$	18,869,553
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,891,160		$	11,584	0.61	%	$	1,467,231		$	3,974	0.27	%
Savings and money market accounts	6,501,241			54,962		0.85		6,208,057			26,086		0.42
Time certificates of deposit	1,748,675			23,918		1.37		1,560,896			11,905		0.76
Total interest-bearing deposits	10,141,076			90,464		0.89		9,236,184			41,965		0.45
Short-term borrowings	260,662			4,853		1.86		63,623			611		0.96
Qualifying debt	362,410			22,287		6.15		371,311			18,273		4.92
Total interest-bearing liabilities	10,764,148			117,604		1.09		9,671,118			60,849		0.63
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	7,712,791							6,788,783
Other liabilities	357,667							330,365
Stockholders’ equity	2,411,709							2,079,287
Total liabilities and stockholders' equity	$	21,246,315						$	18,869,553
Net interest income and margin (4)				$	915,879	4.68	%				$	784,664	4.65	%
TCJA adjusted net interest margin (5)													4.53	%

(1) Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $23.8 million and $42.0 million for 2018 and 2017, respectively.

(2) Included in the yield computation are net loan fees of $44.8 million and accretion on acquired loans of $18.6 million for 2018, compared to $37.0 million and $28.2 million for 2017, respectively.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets.

(5) Prior period net interest margin is adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the taxable-equivalent adjustment, which reduced the taxable-equivalent adjustment to $20.7 million.

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	Year Ended December 31,
	2017							2016
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	(dollars in thousands)
Interest earning assets
Loans:
Commercial and industrial	$	6,188,473		$	311,375	5.42	%	$	5,426,053		$	252,209	5.14	%
CRE - non-owner occupied	3,629,644			216,423		5.99		3,212,359			182,731		5.69
CRE - owner occupied	2,033,767			101,976		5.27		2,016,585			103,418		5.13
Construction and land development	1,603,328			99,427		6.22		1,307,895			83,206		6.36
Residential real estate	339,285			16,066		4.74		289,181			13,374		4.62
Consumer	46,033			2,243		4.87		35,821			1,658		4.63
Total loans (1), (2), (3)	13,840,530			747,510		5.62		12,287,894			636,596		5.40
Securities:
Securities - taxable	2,579,585			64,043		2.48		1,789,806			39,772		2.22
Securities - tax-exempt	670,321			24,596		5.45		507,103			18,768		5.34
Total securities (1)	3,249,906			88,639		3.10		2,296,909			58,540		2.91
Other	680,503			9,364		1.38		532,561			5,370		1.01
Total interest earning assets	17,770,939			845,513		4.99		15,117,364			700,506		4.86
Non-interest earning assets
Cash and due from banks	137,537							141,789
Allowance for credit losses	(131,954		)					(122,048		)
Bank owned life insurance	166,054							163,596
Other assets	926,977							833,562
Total assets	$	18,869,553						$	16,134,263
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,467,231		$	3,974	0.27	%	$	1,217,344		$	2,231	0.18	%
Savings and money market accounts	6,208,057			26,086		0.42		5,827,549			19,368		0.33
Time certificates of deposit	1,560,896			11,905		0.76		1,615,502			8,123		0.50
Total interest-bearing deposits	9,236,184			41,965		0.45		8,660,395			29,722		0.34
Short-term borrowings	63,623			611		0.96		80,727			573		0.71
Qualifying debt	371,311			18,273		4.92		290,779			12,998		4.47
Total interest-bearing liabilities	9,671,118			60,849		0.63		9,031,901			43,293		0.48
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	6,788,783							5,062,319
Other liabilities	330,365							269,129
Stockholders’ equity	2,079,287							1,770,914
Total liabilities and stockholders' equity	$	18,869,553						$	16,134,263
Net interest income and margin (4)				$	784,664	4.65	%				$	657,213	4.58	%
TCJA adjusted net interest margin (5)						4.53	%						4.47	%

(1) Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $42.0 million and $34.9 million for 2017 and 2016, respectively.

(2) Included in the yield computation are net loan fees of $37.0 million and accretion on acquired loans of $28.2 million for 2017, compared to $28.5 million and $29.2 million for 2016, respectively.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets.

(5) Prior period net interest margin is adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the taxable-equivalent adjustment, which reduced the taxable-equivalent adjustments to $20.7 million and $18.1 million for 2017 and 2016, respectively.

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	Year Ended December 31,								Year Ended December 31,
	2018 versus 2017								2017 versus 2016
	Increase (Decrease) Due to Changes in (1)								Increase (Decrease) Due to Changes in (1)
	Volume			Rate			Total		Volume			Rate			Total
	(in thousands)
Interest income:
Loans:
Commercial and industrial	$	46,817		$	29,230		$	76,047	$	38,362		$	20,804		$	59,166
CRE - non-owner occupied	19,187			(857		)	18,330		24,881			8,811			33,692
CRE - owner occupied	11,994			4,381			16,375		862			(2,304		)	(1,442		)
Construction and land development	25,858			11,942			37,800		18,320			(2,099		)	16,221
Residential real estate	13,337			278			13,615		2,373			319			2,692
Consumer	468			432			900		498			87			585
Total loans	117,661			45,406			163,067		85,296			25,618			110,914
Securities:
Securities - taxable	6,276			8,311			14,587		19,608			4,663			24,271
Securities - tax-exempt	7,870			576			8,446		5,989			(161		)	5,828
Total securities	14,146			8,887			23,033		25,597			4,502			30,099
Other	(4,673		)	6,543			1,870		2,036			1,958			3,994
Total interest income	127,134			60,836			187,970		112,929			32,078			145,007
Interest expense:
Interest-bearing transaction accounts	$	2,597		$	5,013		$	7,610	$	677		$	1,066		$	1,743
Savings and money market	2,479			26,397			28,876		1,600			5,118			6,718
Time certificates of deposit	2,568			9,445			12,013		(416		)	4,198			3,782
Short-term borrowings	3,668			574			4,242		(165		)	203			38
Qualifying debt	(547		)	4,561			4,014		3,963			1,312			5,275
Total interest expense	10,765			45,990			56,755		5,659			11,897			17,556
Net increase	$	116,369		$	14,846		$	131,215	$	107,270		$	20,181		$	127,451

(1) Changes due to both volume and rate have been allocated to volume changes.

Comparison of interest income, interest expense and net interest margin

The Company's primary source of revenue is interest income. For the year ended December 31, 2018, interest income was $1.03 billion, an increase of $188.0 million, or 22.2%, compared to $845.5 million for the year ended December 31, 2017. This increase was primarily the result of a $2.06 billion increase in the average loan balance which, together with the effect of the rising rate environment, drove a $163.1 million increase in loan interest income for the year ended December 31, 2018. Interest income from investment securities increased by $23.0 million for the comparable period primarily due to an increase in the average investment balance of $433.3 million from December 31, 2017 as well as an increase in interest rates. Average yield on interest earning assets increased to 5.27% for the year ended December 31, 2018, compared to 4.99% in 2017, which was the result of the growing loan portfolio and increased yields on loans and investment securities resulting from rising interest rates.

For the year ended December 31, 2018, interest expense was $117.6 million, compared to $60.8 million for the year ended December 31, 2017. Interest expense on deposits increased $48.5 million for the same period as average interest-bearing deposits increased $904.9 million which, together with the effect of the rising rate environment, drove a 44 basis point increase in average cost of interest-bearing deposits. Interest expense on short-term borrowings increased by $4.2 million as a result of a $197.0 million increase in average short-term borrowings for the year ended December 31, 2018 compared to the same period in 2017. Interest expense on qualifying debt increased by $4.0 million as a result of a 1.12% increase in the weighted average interest rate on junior subordinated debt during the year ended December 31, 2018 compared to the same period in 2017 due to increases in three-month LIBOR.

For the year ended December 31, 2018, net interest income was $915.9 million, compared to $784.7 million for the year ended December 31, 2017. The increase in net interest income reflects a $2.29 billion increase in average interest earning assets, offset by a $1.09 billion increase in average interest-bearing liabilities. The increase in net interest margin of 3 basis points compared to 2017 is the result of increased yields on loans and investment securities attributable to the rising interest rate environment,

38

partially offset by higher deposit and funding costs and a decrease in the tax-equivalent adjustment on tax-exempt loans and investment securities.

Interest income for the year ended December 31, 2017 was $845.5 million, an increase of 20.7%, compared to $700.5 million for the year ended December 31, 2016. This increase was primarily the result of a $1.55 billion increase in the average loan balance, which together with the effect of the rising rate environment and inclusion of a full year of HFF results, drove a $110.9 million increase in loan interest income for the year ended December 31, 2017. Interest income from investment securities increased by $30.1 million for the comparable period primarily due to an increase in the average investment balance of $953.0 million from December 31, 2016 as well as increase in interest rates. Average yield on interest earning assets increased to 4.99% for the year ended December 31, 2017, compared to 4.86% for the same period in 2016, which was primarily the result of increased yields on loans and investment securities resulting from rising interest rates during 2017.

Interest expense for the year ended December 31, 2017 was $60.8 million, compared to $43.3 million for the year ended December 31, 2016, an increase of $17.6 million, or 40.6%. Interest expense on deposits increased $12.2 million for the same period as average interest-bearing deposits increased $575.8 million which, together with the effect of the rising rate environment, drove an 11 basis point increase in average cost of interest-bearing deposits. Interest expense on qualifying debt increased by $5.3 million as a result of an $80.5 million increase in average qualifying debt for the year ended December 31, 2017 compared to the same period in 2016. The increase in interest expense on qualifying debt is the result of inclusion of a full year of interest expense on the Parent's $175.0 million of subordinated debentures in 2017 results, compared to only six months in 2016.

Net interest income was $784.7 million for the year ended December 31, 2017, compared to $657.2 million for the year ended December 31, 2016, an increase of $127.5 million, or 19.4%. The increase in net interest income reflects a $2.65 billion increase in average interest earning assets, offset by a $639.2 million increase in average interest-bearing liabilities. The increase in net interest margin of 7 basis points compared to 2016, is also the result of an increase in average yield on loans and securities due to the rising interest rate environment, partially offset by higher deposit and funding costs.

Provision for Credit Losses

The provision for credit losses in each period is reflected as a reduction in earnings for that period. The provision is equal to the amount required to maintain the allowance for credit losses at a level that is adequate to absorb probable credit losses inherent in the loan portfolio. For the year ended December 31, 2018, the provision for credit losses was $23.0 million, compared to $17.3 million for the year ended December 31, 2017. The increase in the provision was primarily due to higher organic loan growth as loan growth totaled $2.62 billion in 2018, compared to $1.89 billion in 2017. Also contributing to the increase in the provision for credit losses were increased net charge-offs in 2018 compared to 2017.

For the year ended December 31, 2017, the provision for credit losses was $17.3 million, compared to $8.0 million for the year ended December 31, 2016. The provision increase was primarily due to an increase in total organic loans, as well as increased net charge-offs for 2017 compared to 2016.

The Company may also establish an additional allowance for credit losses on PCI and non-PCI loans through provision for credit losses. For PCI loans, an additional allowance for credit losses is established when impairment is determined as a result of lower than expected cash flows. As of December 31, 2018 and 2017, the allowance for credit losses on PCI loans was $0.1 million and $1.6 million, respectively. For non-PCI loans, an additional allowance for credit losses is established when the remaining credit marks on these loans are lower than Company's calculated allowance for similar types of organic loans. As of December 31, 2018 and 2017, the allowance for credit losses on non-PCI loans was $3.4 million and $2.6 million, respectively.

39

Non-interest Income

The following table presents a summary of non-interest income for the periods presented: 

	Year Ended December 31,
	2018			2017		Increase (Decrease)			2017		2016		Increase (Decrease)
	(in thousands)
Service charges and fees	$	22,295		$	20,346	$	1,949		$	20,346	$	18,824	$	1,522
Income from equity investments	8,595			4,496		4,099			4,496		2,664		1,832
Card income	8,009			6,313		1,696			6,313		5,226		1,087
Foreign currency income	4,760			3,536		1,224			3,536		3,419		117
Lending related income and gains (losses) on sale of loans, net	4,340			2,212		2,128			2,212		5,295		(3,083		)
Income from bank owned life insurance	3,946			3,861		85			3,861		3,762		99
(Loss) gain on sales of investment securities, net	(7,656		)	2,343		(9,999		)	2,343		1,059		1,284
Unrealized (losses) gains on assets measured at fair value, net	(3,611		)	—		(3,611		)	—		—		—
Other income	2,438			2,237		201			2,237		2,666		(429		)
Total non-interest income	$	43,116		$	45,344	$	(2,228	)	$	45,344	$	42,915	$	2,429

Total non-interest income for the year ended December 31, 2018 compared to 2017, decreased by $2.2 million, or 4.9%. The decrease is due to a net loss on sales of investment securities and unrealized losses on assets measured at fair value. The net loss on sales of investment securities of $7.7 million relates to losses on sales of low yielding AFS debt investment securities, which were replaced with investment securities with shorter durations and higher yields, as well as losses on sales of equity securities. These losses were partially offset by gains on sales of other AFS debt securities. Unrealized losses on assets measured at fair value of $3.6 million relate to fair value changes in the Company's equity securities. Due to adoption of ASU 2016-01, effective January 1, 2018, changes in the fair value of equity securities are recognized in net income rather than accumulated other comprehensive income. These decreases were partially offset by an increase in income from equity investments, lending related income, and service charges and fees. The increase in income from equity investments of $4.1 million is attributable to an increase in both warrant and SBIC income. The increase in lending income of $2.1 million is mainly due to net gains on sale of loans. The increase in service charges and fees of $1.9 million is due to continued growth in the Company's deposit base, which increased $2.20 billion during the year ended December 31, 2018.

Total non-interest income for the year ended December 31, 2017 compared to 2016, increased by $2.4 million, or 5.7%. The increase is primarily due to income from equity investments and service charges and fees. The increase in income from equity investments is attributable to an increase in both warrant and SBIC income. The increase in service charges and fees is due to continued growth in the Company's deposit base, which increased $2.42 billion from December 31, 2016. These increases were offset by a decrease in lending related income and net gains on sale of loans largely as a result of decreased net gains on sale of loans in 2017.

40

Non-interest Expense

The following table presents a summary of non-interest expense for the periods presented:

	Year Ended December 31,
	2018		2017			Increase (Decrease)			2017			2016			Increase (Decrease)
	(in thousands)
Salaries and employee benefits	$	253,238	$	214,344		$	38,894		$	214,344		$	188,810		$	25,534
Occupancy	29,404		27,860			1,544			27,860			27,303			557
Legal, professional, and directors' fees	28,722		29,814			(1,092		)	29,814			24,610			5,204
Data processing	22,716		19,225			3,491			19,225			19,657			(432		)
Deposit costs	18,900		9,731			9,169			9,731			4,983			4,748
Insurance	14,005		14,042			(37		)	14,042			12,898			1,144
Business development	5,960		6,128			(168		)	6,128			5,902			226
Loan and repossessed asset expenses	4,578		4,617			(39		)	4,617			2,999			1,618
Card expense	4,301		3,413			888			3,413			1,939			1,474
Marketing	3,770		3,804			(34		)	3,804			3,596			208
Intangible amortization	1,594		2,074			(480		)	2,074			2,788			(714		)
Net loss (gain) on sales / valuations of repossessed and other assets	9		(80		)	89			(80		)	(125		)	45
Acquisition / restructure expense	—		—			—			—			12,412			(12,412		)
Other expense	38,470		25,969			12,501			25,969			23,177			2,792
Total non-interest expense	$	425,667	$	360,941		$	64,726		$	360,941		$	330,949		$	29,992

Total non-interest expense for the year ended December 31, 2018 compared to 2017, increased$64.7 million, or 17.9%. This increase primarily relates to salaries and employee benefits, deposit costs, and other expense. Salaries and employee benefits have increased as the Company supports its continued growth. Full-time equivalent employees increased 3.6% to 1,787 during the year ended December 31, 2018. Deposit costs consist of earnings credits on select non-interest-bearing deposits and fees to Promontory Interfinancial Network and others for reciprocal deposits. The increase in deposit costs for 2018 compared to 2017 relates to both an increase in deposits eligible for earnings credits, along with higher average earnings credits paid, driven by a rising rate environment. The increase in other non-interest expense primarily relates to a $7.6 million donation to the Company's charitable foundation, which is further discussed in "Note 19. Related Party Transactions."

Total non-interest expense for the year ended December 31, 2017 compared to 2016, increased$30.0 million, or 9.1%. This increase primarily relates to salaries and employee benefits, legal, professional, and directors' fees, and deposit costs. Salaries and employee benefits and legal, professional, and directors' fees have increased as the Company continues to build out its infrastructure to support its continued growth. Full-time equivalent employees increased 13.9% from 1,514 at December 31, 2016 compared to 1,725 at December 31, 2017. The increase in deposit costs for 2017 compared to 2016 primarily relates to an increase in deposit earnings credits paid to account holders. These increases to non-interest expense were offset by a decrease of $12.4 million in acquisition / restructure expense related to the HFF acquisition and restructure costs for the system conversion that occurred in the fourth quarter of 2016.

Income Taxes

For the years ended December 31, 2018, 2017, and 2016 the Company's effective tax rate was 14.61%, 27.96%, and 28.07%, respectively. The decrease in the effective tax rate from 2017 to 2018 is due primarily to the decrease in the federal statutory rate effective in 2018, a reduction in excise taxes, and management's decision during the third quarter 2018 to carryback its 2017 federal NOLs. The reduction in excise taxes from 2017 to 2018 resulted from not deferring WAB's 2018 dividend from BW Real Estate as was the case in 2017. The Company's 2017 federal NOLs resulted from the acceleration of deductions into and deferral of revenue from 2017. As the federal income tax rate was higher in the years to which the carryback is applicable, a larger tax benefit results from the decision to carryback the 2017 federal NOLs, rather than carryforward these losses to future taxable years. There was not a significant change in the effective tax rate from 2016 compared to 2017.

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Business Segment Results

The Company's reportable segments are aggregated primarily based on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The Company's NBL segments, which include HOA services, Public & Nonprofit Finance, Technology & Innovation, HFF, and Other NBLs, provide specialized banking services to niche markets. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately located within the Company's core market areas. The Corporate & Other segment consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to the Company's other reportable segments, and inter-segment eliminations.

The following tables present selected operating segment information for the periods presented:

			Regional Segments
	Consolidated Company		Arizona		Nevada		Southern California		Northern California
December 31, 2018	(in millions)
Loans, net of deferred loan fees and costs	$	17,710.6	$	3,647.9	$	2,003.5	$	2,161.1	$	1,300.2
Deposits	19,177.4		5,090.2		3,996.4		2,347.5		1,839.1
December 31, 2017
Loans, net of deferred loan fees and costs	$	15,093.9	$	3,323.7	$	1,844.8	$	1,934.7	$	1,275.5
Deposits	16,972.5		4,841.3		3,951.4		2,461.1		1,681.7

Year Ended December 31, 2018	(in thousands)
Income (loss) before income taxes	$	510,328	$	139,047	$	99,322	$	59,334	$	48,132
Year Ended December 31, 2017
Income (loss) before income taxes	$	451,817	$	126,108	$	97,794	$	60,665	$	42,398

	National Business Lines
	HOA Services		Public & Nonprofit Finance		Technology & Innovation		Hotel Franchise Finance		Other NBL		Corporate & Other
December 31, 2018	(in millions)
Loans, net of deferred loan fees and costs	$	210.0	$	1,547.5	$	1,200.9	$	1,479.9	$	4,154.9	$	4.7
Deposits	2,607.2		—		2,559.0		—		—		738.0
December 31, 2017
Loans, net of deferred loan fees and costs	$	162.1	$	1,580.4	$	1,097.9	$	1,327.7	$	2,543.0	$	4.1
Deposits	2,230.4		—		1,737.6		—		—		69.0

Year Ended December 31, 2018	(in thousands)
Income (loss) before income taxes	$	35,097	$	8,288	$	72,334	42,467	$	44,281	—	$	(37,974	)
Year Ended December 31, 2017
Income (loss) before income taxes	$	26,030	$	19,370	$	51,348	42,354	$	37,401		$	(51,651	)

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BALANCE SHEET ANALYSIS

Total assets increased$2.78 billion, or 13.7%, to $23.11 billion at December 31, 2018 compared to $20.33 billion at December 31, 2017. The increase in total assets relates primarily to organic loan growth. Loans increased $2.62 billion, or 17.3%, to $17.71 billion at December 31, 2018, compared to $15.09 billion at December 31, 2017. The increase in loans from December 31, 2017 was driven by commercial and industrial loans of $921.3 million, residential real estate loans of $778.4 million, and construction and land development loans of $502.5 million.

Total liabilities increased$2.40 billion, or 13.2%, to $20.50 billion at December 31, 2018 compared to $18.10 billion at December 31, 2017. The increase in liabilities is due primarily to an increase in total deposits. Total deposits increased $2.20 billion, or 13.0%, to $19.18 billion at December 31, 2018, all of which is attributable to organic deposit growth.

Total stockholders’ equity increased by $384.0 million, or 17.2%, to $2.61 billion at December 31, 2018 compared to $2.23 billion at December 31, 2017. The increase in stockholders' equity relates primarily to net income for the year ended December 31, 2018, partially offset by share repurchases and net unrealized losses on AFS securities.

Investment securities

Debt securities are classified at the time of acquisition as either HTM, AFS, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are securities that may be sold prior to maturity based upon asset/liability management decisions. Investment securities classified as AFS are carried at fair value. Unrealized gains or losses on AFS securities are recorded as part of AOCI in stockholders’ equity. Amortization of premiums or accretion of discounts on MBS is periodically adjusted for estimated prepayments. Trading securities are reported at fair value, with unrealized gains and losses included in current period earnings.

For periods prior to January 1, 2018, equity securities were classified as AFS and reported at fair value with unrealized gains and losses included as a separate component of AOCI, net of tax. Upon adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, equity securities are no longer reported as part of AFS securities and changes in fair value are recognized as part of non-interest income.

The Company's investment securities portfolio is utilized as collateral for borrowings, required collateral for public deposits and customer repurchase agreements, and to manage liquidity, capital, and interest rate risk. The following table summarizes the carrying value of the investment securities portfolio for each of the periods below: 

	At December 31,
	2018		2017		2016		2015		2014
	(in thousands)
Debt securities
CDO	$	15,327	$	21,857	$	13,490	$	10,060	$	11,445
Commercial MBS issued by GSEs	100,106		109,077		117,792		19,114		2,147
Corporate debt securities	99,380		103,483		64,144		13,251		52,489
Private label commercial MBS	—		—		—		4,691		5,149
Private label residential MBS	924,594		868,524		433,685		257,128		70,243
Residential MBS issued by GSEs	1,530,124		1,689,295		1,356,258		1,171,702		893,047
Tax-exempt	841,573		765,960		500,312		334,830		299,037
Trust preferred securities	28,617		28,617		26,532		24,314		25,546
U.S. government sponsored agency securities	38,188		61,462		56,022		—		18,346
U.S. treasury securities	1,984		2,482		2,502		2,993		—
Total debt securities	$	3,579,893	$	3,650,757	$	2,570,737	$	1,838,083	$	1,377,449
Equity securities
CRA investments	$	51,142	$	50,616	$	37,113	$	34,685	$	24,332
Mutual funds	—		—		—		—		37,702
Preferred stock	63,919		53,196		94,662		111,236		82,612
Total equity securities	$	115,061	$	103,812	$	131,775	$	145,921	$	144,646

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Weighted average yield on investment securities is calculated by dividing income within each maturity range by the outstanding amount of the related investment and has not been tax-effected on tax-exempt obligations. For purposes of calculating the weighted average yield, AFS securities are carried at amortized cost in the table below. The maturity distribution and weighted average yield of the Company's investment security portfolios at December 31, 2018 are summarized in the table below: 

	December 31, 2018
	Due Under 1 Year				Due 1-5 Years				Due 5-10 Years				Due Over 10 Years				Total
	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(dollars in thousands)
Held-to-maturity
Tax-exempt	$	11,300	4.48	%	$	—	—	%	$	14,493	3.80	%	$	277,112	4.78	%	$	302,905	4.73	%
Available-for-sale
CDO	$	—	—	%	$	—	—	%	$	—	—	%	$	50	—	%	$	50	—	%
Commercial MBS issued by GSEs (1)	—		—		—		—		—		—		106,385		2.23		106,385		2.23
Corporate debt securities	—		—		5,029		4.31		100,000		3.90		—		—		105,029		3.92
Private label residential MBS (1)	—		—		—		—		—		—		948,161		3.33		948,161		3.33
Residential MBS issued by GSEs (1)	—		—		—		—		—		—		1,564,181		2.72		1,564,181		2.72
Tax-exempt	2,306		3.14		6,038		3.40		76,197		3.50		457,545		3.02		542,086		3.10
Trust preferred securities	—		—		—		—		—		—		32,000		3.51		32,000		3.51
U.S. government sponsored agency securities	—		—		—		—		40,000		2.51		—		—		40,000		2.51
U.S. treasury securities	1,000		1.31		996		1.68		—		—		—		—		1,996		1.49
Total AFS securities	$	3,306	2.59	%	$	12,063	3.64	%	$	216,197	3.50	%	$	3,108,322	2.94	%	$	3,339,888	2.98	%
Equity
CRA investments	$	31,943	2.24	%	$	17,262	4.01	%	$	3,005	3.00	%	$	—	—	%	$	52,210	2.87	%
Preferred stock	—		—		—		—		—		—		65,954		6.75		65,954		6.75
Total equity securities	$	31,943	2.24	%	$	17,262	4.01	%	$	3,005	3.00	%	$	65,954	3.15	%	$	118,164	3.02	%

(1) MBS are comprised of pools of loans with varying maturities, the majority of which are due after 10 years.

The Company does not own any subprime MBS in its investment portfolio. The majority of its MBS are GSE issued. The remaining MBS that are not GSE issued consist of $887.5 million rated AAA, $34.3 million rated AA, $0.3 million rated A, $0.9 million rated BBB, and $1.4 million non-investment grade.

Gross unrealized losses at December 31, 2018 relate primarily to market interest rate increases since the securities' original purchase date. The Company has reviewed securities on which there is an unrealized loss in accordance with its accounting policy for OTTI securities described in "Note 2. Investment Securities" to the Consolidated Financial Statements contained herein. There were no impairment charges recorded during the years ended December 31, 2018, 2017, and 2016.

The Company does not consider any securities to be other-than-temporarily impaired as of December 31, 2018, 2017, and 2016. However, the Company cannot guarantee that OTTI will not occur in future periods. At December 31, 2018, the Company has the intent and ability to retain its investments for a period of time sufficient to allow for any anticipated recovery in fair value.

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Loans

The table below summarizes the distribution of the Company’s held for investment loan portfolio at the end of each of the periods indicated: 

	December 31,
	2018			2017			2016			2015			2014
	(in thousands)
Loans, held for investment
Commercial and industrial	$	7,765,100		$	6,841,247		$	5,859,446		$	5,264,856		$	3,531,899
Commercial real estate - non-owner occupied	4,223,427			3,911,313			3,549,876			2,289,480			2,058,620
Commercial real estate - owner occupied	2,329,205			2,245,060			2,015,671			2,085,738			1,734,617
Construction and land development	2,155,625			1,647,726			1,489,488			1,143,228			754,154
Residential real estate	1,203,613			425,291			258,734			322,265			298,872
Consumer	69,995			48,583			38,572			26,474			32,633
Deferred loan fees and costs	(36,336		)	(25,285		)	(22,260		)	(19,187		)	(12,530		)
Loans, net of deferred loan fees and costs	17,710,629			15,093,935			13,189,527			11,112,854			8,398,265
Allowance for credit losses	(152,717		)	(140,050		)	(124,704		)	(119,068		)	(110,216		)
Total loans HFI	$	17,557,912		$	14,953,885		$	13,064,823		$	10,993,786		$	8,288,049

Net deferred loan fees and costs as of December 31, 2018 and 2017 total $36.3 million and $25.3 million, respectively, which is a reduction in the carrying value of loans. Net unamortized purchase discounts on secondary market loan purchases total $2.0 million and $8.5 million as of December 31, 2018 and 2017, respectively. Total loans held for investment are also net of interest rate and credit marks on acquired loans, which are a net reduction in the carrying value of loans. Interest rate marks were $7.1 million and $14.1 million as of December 31, 2018 and 2017, respectively. Credit marks were $14.6 million and $27.0 million as of December 31, 2018 and 2017, respectively.

45

The following table sets forth the amount of loans outstanding by type of loan as of December 31, 2018 that were contractually due in one year or less, more than one year and less than five years, and more than five years based on remaining scheduled repayments of principal. Lines of credit or other loans having no stated final maturity and no stated schedule of repayments are reported as due in one year or less. The table also presents an analysis of the rate structure for loans within the same maturity time periods. Actual cash flows from these loans may differ materially from contractual maturities due to prepayment, refinancing, or other factors.

	Due in one year or less		Due after one year to five years		Due after five years		Total
	(in thousands)
Commercial and industrial
Floating rate	$	1,425,954	$	3,233,634	$	899,241	$	5,558,829
Fixed rate	74,027		635,561		1,494,225		2,203,813
Commercial real estate — non-owner occupied
Floating rate	340,231		1,771,352		547,881		2,659,464
Fixed rate	184,166		923,746		446,052		1,553,964
Commercial real estate — owner occupied
Floating rate	42,537		182,211		946,675		1,171,423
Fixed rate	52,129		280,020		821,808		1,153,957
Construction and land development
Floating rate	840,181		1,059,753		132,191		2,032,125
Fixed rate	24,714		48,664		29,250		102,628
Residential real estate
Floating rate	15,387		51,010		382,975		449,372
Fixed rate	3,138		10,440		741,405		754,983
Consumer
Floating rate	42,248		10,639		3,492		56,379
Fixed rate	2,796		1,690		9,206		13,692
Total	$	3,047,508	$	8,208,720	$	6,454,401	$	17,710,629

As of December 31, 2018, approximately $8.27 billion, or 69.3%, of total variable rate loans were subject to rate floors with a weighted average interest rate of 4.8%. At December 31, 2017, approximately $6.88 billion, or 68.4% of total variable rate loans were subject to rate floors with a weighted average interest rate of 4.7%. At December 31, 2018, total loans consisted of 67.3% with floating rates and 32.7% with fixed rates, compared to 66.6% with floating rates and 33.4% with fixed rates at December 31, 2017.

Concentrations of Lending Activities

The Company monitors concentrations within four broad categories: product, collateral, geography, and industry. The Company’s loan portfolio includes significant credit exposure to the CRE market. At December 31, 2018 and 2017, CRE related loans accounted for approximately 49% and 52% of total loans, respectively. Substantially all of these loans are secured by first liens with an initial loan to value ratio of generally not more than 75%. Approximately 36% of these CRE loans, excluding construction and land loans, were owner occupied at each of the periods ended December 31, 2018 and 2017.

Impaired loans

A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310 based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are charged against the allowance for credit losses.

In addition to the Company's own internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

46

Total non-performing loans decreased by $21.6 million, or 25.0%, at December 31, 2018 to $64.8 million from $86.4 million at December 31, 2017.

	December, 31
	2018			2017			2016			2015			2014
	(dollars in thousands)
Total non-accrual loans (1)	$	27,746		$	43,925		$	40,272		$	48,381		$	67,659
Loans past due 90 days or more on accrual status (2)	594			43			1,067			3,028			5,132
Accruing troubled debt restructured loans	36,458			42,431			53,637			70,707			84,720
Total nonperforming loans, excluding loans acquired with deteriorated credit quality	64,798			86,399			94,976			122,116			157,511
Other impaired loans	47,454			12,155			4,233			6,758			9,239
Total impaired loans	$	112,252		$	98,554		$	99,209		$	128,874		$	166,750
Other assets acquired through foreclosure, net	$	17,924		$	28,540		$	47,815		$	43,942		$	57,150
Non-accrual loans to gross loans held for investment	0.16		%	0.29		%	0.31		%	0.44		%	0.81		%
Loans past due 90 days or more on accrual status to gross loans held for investment	0.00			0.00			0.01			0.03			0.06
Interest income received on non-accrual loans	$	1,745		$	1,614		$	1,254		$	1,634		$	2,536
Interest income that would have been recorded under the original terms of non-accrual loans	2,268			2,444			2,045			2,549			3,758

(1) Includes non-accrual TDR loans of $8.0 million and $10.1 million at December 31, 2018 and 2017, respectively.

(2) Includes less than $0.1 million from loans acquired with deteriorated credit quality at December 31, 2017.

The composition of non-accrual loans by loan type and by segment were as follows: 

	December 31, 2018						December 31, 2017
	Non-accrual Balance		Percent of Non-Accrual Balance		Percent of Total Loans		Non-accrual Balance		Percent of Non-Accrual Balance		Percent of Total Loans
	(dollars in thousands)
Commercial and industrial	$	15,090	54.39	%	0.09	%	$	22,026	50.14	%	0.15	%
Commercial real estate	—		—		—		7,721		17.58		0.05
Construction and land development	476		1.71		0.00		5,979		13.61		0.04
Residential real estate	11,939		43.03		0.07		8,117		18.48		0.05
Consumer	241		0.87		0.00		82		0.19		0.00
Total non-accrual loans	$	27,746	100.00	%	0.16	%	$	43,925	100.00	%	0.29	%

	December 31, 2018				December 31, 2017
	Nonaccrual Loans		Percent of Segment's Total Loans		Nonaccrual Loans		Percent of Segment's Total Loans
	(dollars in thousands)
Arizona	$	8,312	0.23	%	$	4,520	0.14	%
Nevada	6,374		0.32		8,189		0.44
Southern California	8,564		0.40		8,140		0.42
Northern California	4,255		0.33		14,489		1.14
Technology and Innovation	—		—		7,389		0.67
Other NBLS	241		0.00		51		0.00
Corporate & Other (1)	—		—		1,147		28.09
Total non-accrual loans	$	27,746	0.16	%	$	43,925	0.29	%

(1)    The Corporate & Other segment manages certain legacy non-performing loans and OREO.

47

Troubled Debt Restructured Loans

A TDR loan is a loan that is granted a concession, for reasons related to a borrower’s financial difficulties, that the lender would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in accrued interest, extensions, deferrals, renewals, and rewrites. A TDR loan is also considered impaired. Generally, a loan that is modified at an effective market rate of interest is no longer disclosed as a TDR in years subsequent to the restructuring if it is performing based on the terms specified by the restructuring agreement. However, such loans continue to be considered impaired.

As of December 31, 2018 and 2017, the aggregate amount of loans classified as impaired was $112.3 million and $98.6 million, respectively, a net increase of 13.9%. The total specific allowance for credit losses related to these loans was $0.7 million and $5.6 million at December 31, 2018 and 2017, respectively. The Company had $36.5 million and $42.4 million in loans classified as accruing restructured loans at December 31, 2018 and 2017, respectively.

The following tables present a breakdown of total impaired loans and the related specific reserves for the periods indicated: 

	December 31, 2018
	Impaired Balance		Percent of Impaired Balance		Percent of Total Loans		Reserve Balance		Percent of Reserve Balance		Percent of Total Allowance
	(dollars in thousands)
Commercial and industrial	$	63,896	56.92	%	0.36	%	$	621	91.19	%	0.41	%
Commercial real estate	18,937		16.87		0.11		—		—		—
Construction and land development	9,403		8.38		0.05		—		—		—
Residential real estate	19,744		17.59		0.11		60		8.81		0.04
Consumer	272		0.24		0.00		—		—		—
Total impaired loans	$	112,252	100.00	%	0.63	%	$	681	100.00	%	0.45	%

	December 31, 2017
	Impaired Balance		Percent of Impaired Balance		Percent of Total Loans		Reserve Balance		Percent of Reserve Balance		Percent of Total Allowance
	(dollars in thousands)
Commercial and industrial	$	34,156	34.66	%	0.23	%	$	5,606	100.00	%	4.00	%
Commercial real estate	31,681		32.15		0.21		—		—		—
Construction and land development	15,426		15.65		0.10		—		—		—
Residential real estate	17,170		17.42		0.11		—		—		—
Consumer	121		0.12		0.00		—		—		0.00
Total impaired loans	$	98,554	100.00	%	0.65	%	$	5,606	100.00	%	4.00	%

Impaired loans by segment at December 31, 2018 and 2017 were as follows:

	December 31,
	2018		2017
	(in thousands)
Arizona	$	34,899	$	10,468
Nevada	33,860		46,730
Southern California	8,576		8,465
Northern California	4,928		14,489
Technology & Innovation	29,748		16,449
Other NBLs	241		51
Corporate & Other	—		1,902
Total impaired loans	$	112,252	$	98,554

The amount of interest income recognized on impaired loans for the years ended December 31, 2018, 2017, and 2016 was approximately $4.5 million, $4.0 million, and $4.2 million, respectively.

48

Allowance for Credit Losses

The following table summarizes the activity in the Company's allowance for credit losses for the period indicated: 

	Year Ended December 31,
	2018			2017			2016			2015			2014
	(dollars in thousands)
Allowance for credit losses:
Balance at beginning of period	$	140,050		$	124,704		$	119,068		$	110,216		$	100,050
Provision charged to operating expense:
Commercial and industrial	13,198			14,268			10,638			18,411			14,551
Commercial real estate	2,177			5,347			(2,449		)	(9,762		)	(6,176		)
Construction and land development	1,482			(2,805		)	1,732			(1,454		)	1,966
Residential real estate	5,867			318			(2,137		)	(3,539		)	(4,352		)
Consumer	276			122			216			(456		)	(1,263		)
Total Provision	23,000			17,250			8,000			3,200			4,726
Recoveries of loans previously charged-off:
Commercial and industrial	(2,427		)	(3,112		)	(3,991		)	(3,754		)	(4,728		)
Commercial real estate	(1,237		)	(2,897		)	(5,690		)	(4,139		)	(3,859		)
Construction and land development	(1,433		)	(1,229		)	(485		)	(1,872		)	(2,160		)
Residential real estate	(947		)	(1,778		)	(875		)	(2,181		)	(1,896		)
Consumer	(43		)	(84		)	(144		)	(203		)	(459		)
Total recoveries	(6,087		)	(9,100		)	(11,185		)	(12,149		)	(13,102		)
Loans charged-off:
Commercial and industrial	15,034			8,186			12,477			5,550			4,370
Commercial real estate	233			2,269			728			—			964
Construction and land development	1			—			18			—			87
Residential real estate	1,038			447			165			820			1,728
Consumer	114			102			161			127			513
Total charged-off	16,420			11,004			13,549			6,497			7,662
Net charge-offs	10,333			1,904			2,364			(5,652		)	(5,440		)
Balance at end of period	$	152,717		$	140,050		$	124,704		$	119,068		$	110,216
Net charge-offs (recoveries) to average loans outstanding	0.06		%	0.01		%	0.02		%	(0.06		)%	(0.07		)%
Allowance for credit losses to gross loans	0.86			0.93			0.95			1.07			1.31
Allowance for credit losses to gross organic loans	0.92			1.03			1.11			1.23			1.36

49

The following table summarizes the allocation of the allowance for credit losses by loan type. However, the allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. 

	Commercial and Industrial			Commercial Real Estate			Construction and Land Development			Residential Real Estate			Consumer			Total
	(dollars in thousands)
December 31, 2018
Allowance for credit losses	$	83,118		$	34,829		$	22,513		$	11,276		$	981		$	152,717
Percent of total allowance for credit losses	54.4		%	22.8		%	14.8		%	7.4		%	0.6		%	100.0		%
Percent of loan type to total loans	43.8			36.9			12.1			6.8			0.4			100.0
December 31, 2017
Allowance for credit losses	$	82,527		$	31,648		$	19,599		$	5,500		$	776		$	140,050
Percent of total allowance for credit losses	58.9		%	22.6		%	14.0		%	3.9		%	0.6		%	100.0		%
Percent of loan type to total loans	45.2			40.8			10.9			2.8			0.3			100.0
December 31, 2016
Allowance for credit losses	$	73,333		$	25,673		$	21,175		$	3,851		$	672		$	124,704
Percent of total allowance for credit losses	58.8		%	20.6		%	17.0		%	3.1		%	0.5		%	100.0		%
Percent of loan type to total loans	44.3			42.1			11.3			2.0			0.3			100.0
December 31, 2015
Allowance for credit losses	$	71,181		$	23,160		$	18,976		$	5,278		$	473		$	119,068
Percent of total allowance for credit losses	59.8		%	19.5		%	15.9		%	4.4		%	0.4		%	100.0		%
Percent of loan type to total loans	47.4			39.3			10.2			2.9			0.2			100.0
December 31, 2014
Allowance for Credit Losses	$	54,566		$	28,783		$	18,558		$	7,456		$	853		$	110,216
Percent of Total Allowance for Credit Losses	49.5		%	26.1		%	16.8		%	6.8		%	0.8		%	100.0		%
Percent of loan type to total loans	42.0			45.0			9.0			3.6			0.4			100.0

Problem Loans

The Company classifies loans consistent with federal banking regulations using a nine category grading system. These loan grades are described in further detail in "Item 1. Business” of this Form 10-K. The following table presents information regarding potential and actual problem loans, consisting of loans graded Special Mention, Substandard, Doubtful, and Loss, but still performing, and excluding acquired loans:

	December 31, 2018
	Number of Loans	Loan Balance		Percent of Loan Balance		Percent of Total Loans
	(dollars in thousands)
Commercial and industrial	107	$	125,585	62.37	%	0.71	%
Commercial real estate	42	71,116		35.32		0.40
Construction and land development	3	4,040		2.01		0.02
Residential real estate	1	527		0.26		0.00
Consumer	2	75		0.04		0.00
Total	155	$	201,343	100.00	%	1.13	%

	December 31, 2017
	Number of Loans	Loan Balance		Percent of Loan Balance		Percent of Total Loans
	(dollars in thousands)
Commercial and industrial	166	$	127,015	51.63	%	0.84	%
Commercial real estate	48	90,653		36.85		0.60
Construction and land development	5	18,471		7.51		0.12
Residential real estate	3	8,971		3.65		0.06
Consumer	10	880		0.36		0.01
Total	232	$	245,990	100.00	%	1.63	%

50

Other Assets Acquired Through Foreclosure

The following table represents the changes in other assets acquired through foreclosure: 

	Year Ended December 31,
	2018
	Gross Balance			Valuation Allowance			Net Balance
	(in thousands)
Balance, beginning of period	$	32,552		$	(4,012	)	$	28,540
Transfers to other assets acquired through foreclosure, net	5,744			—			5,744
Proceeds from sale of other real estate owned and repossessed assets, net	(12,636		)	3,224			(9,412		)
Charitable contribution (1)	(6,895		)	—			(6,895		)
Valuation adjustments, net	—			(1,267		)	(1,267		)
Gains (losses), net (2)	1,214			—			1,214
Balance, end of period	$	19,979		$	(2,055	)	$	17,924
	2017
Balance, beginning of period	$	54,138		$	(6,323	)	$	47,815
Transfers to other assets acquired through foreclosure, net	1,812			—			1,812
Proceeds from sale of other real estate owned and repossessed assets, net	(23,626		)	2,431			(21,195		)
Valuation adjustments, net	—			(120		)	(120		)
Gains (losses), net (2)	228			—			228
Balance, end of period	$	32,552		$	(4,012	)	$	28,540
	2016
Balance, beginning of period	$	52,984		$	(9,042	)	$	43,942
Transfers to other assets acquired through foreclosure, net	13,110			—			13,110
Proceeds from sale of other real estate owned and repossessed assets, net	(11,584		)	2,451			(9,133		)
Valuation adjustments, net	—			268			268
(Losses) gains, net (2)	(372		)	—			(372		)
Balance, end of period	$	54,138		$	(6,323	)	$	47,815

(1) Represents a contribution of OREO property to the Company's charitable foundation. See "Note 19. Related Party Transactions" for further discussion.

(2) Includes net gains related to initial transfers to other assets of $1.0 million, $0.1 million, and $0.4 million during the years ended December 31, 2018, 2017, and 2016, respectively.

Other assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. OREO and other repossessed property are reported at the lower of carrying value or fair value less estimated costs to sell the property. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense. The Company has $17.9 million, $28.5 million, and $47.8 million of such assets at December 31, 2018, 2017, and 2016 respectively.

At December 31, 2018, the Company held 11 OREO properties, compared to 19 at December 31, 2017.

Goodwill and Other Intangible Assets

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill of $289.9 million and intangible assets totaling $9.3 million as of December 31, 2018, which have been allocated to the Nevada, Northern California, Technology & Innovation, and HFF operating segments.

The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. During the years ended December 31, 2018, 2017, and 2016, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary and, based on the Company's annual goodwill and intangibles impairment tests as of October 1 of each of these years, it was determined that goodwill and intangible assets are not impaired.

51

The following is a summary of acquired intangible assets:

	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	5,737	$	8,910	$	14,647	$	4,144	$	10,503
	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

Deferred Tax Assets

Net deferred tax assets increased $26.2 million to $32.0 million from December 31, 2017. This overall increase in net deferred tax assets was primarily the result of the deferral of WAB's dividend from BW Real Estate from 2017 to 2018, which resulted in a $68.8 million deferred tax liability as of December 31, 2017 that was fully utilized during the year ended December 31, 2018. Decreases in the fair market value of AFS securities, which were not fully offset by the utilization of NOL and credit carryovers, also contributed to the increase in net deferred tax assets.

As of December 31, 2018, the Company's deferred tax valuation allowance of $2.4 million related to net capital loss carryovers. As of December 31, 2017, the Company had no deferred tax valuation allowance.

Deposits

Deposits are the primary source for funding the Company's asset growth. Total deposits increased to $19.18 billion at December 31, 2018 from $16.97 billion at December 31, 2017, an increase of $2.20 billion, or 13.0%. The increase in deposits is attributable to an increase across all deposit types, with the largest increases in savings and money market deposits of $1.00 billion and interest-bearing demand deposits of $969.4 million from December 31, 2017.

WAB is a participant in the Promontory Interfinancial Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. At December 31, 2018, the Company has $322.9 million of CDARS deposits and $706.9 million of ICS deposits, compared to $401.4 million of CDARS deposits and $617.9 million of ICS deposits at December 31, 2017. At December 31, 2018 and 2017, the Company also has $718.2 million and $67.3 million, respectively, of wholesale brokered deposits.

In addition, non-interest-bearing deposits for which the Company provides account holders with earnings credits totaled $2.29 billion and $1.85 billion at December 31, 2018 and 2017, respectively. The Company incurred $18.0 million and $8.7 million in deposit related costs on these deposits during the year ended December 31, 2018 and 2017, respectively. These costs are reported in deposit costs as part of non-interest expense. The increase in these costs relates to both an increase in deposits eligible for earnings credits, along with higher average earnings credits paid, driven by a rising rate environment.

52

The average balances and weighted average rates paid on deposits are presented below:

	Year Ended December 31,
	2018				2017				2016
	Average Balance		Rate		Average Balance		Rate		Average Balance		Rate
	(dollars in thousands)
Interest-bearing transaction accounts	$	1,891,160	0.61	%	$	1,467,231	0.27	%	$	1,217,344	0.18	%
Savings and money market accounts	6,501,241		0.85		6,208,057		0.42		5,827,549		0.33
Time certificates of deposit	1,748,675		1.37		1,560,896		0.76		1,615,502		0.50
Total interest-bearing deposits	10,141,076		0.89		9,236,184		0.45		8,660,395		0.34
Non-interest-bearing demand deposits	7,712,791		—		6,788,783		—		5,062,319		—
Total deposits	$	17,853,867	0.51	%	$	16,024,967	0.26	%	$	13,722,714	0.22	%

Although the Company does not pay interest to depositors of non-interest-bearing accounts, earnings credits are awarded to some account holders, which offset charges incurred by account holders for other services. Earnings credits earned in excess of charges incurred by account holders are recorded in deposit costs as part of non-interest expense.

Certificates of Deposit of $100,000 or More

The table below discloses the remaining maturity for certificates of deposit of $100,000 or more: 

	December 31,
	2018		2017
	(in thousands)
3 months or less	$	682,549	$	536,116
3 to 6 months	446,847		440,732
6 to 12 months	409,736		329,026
Over 12 months	99,211		142,161
Total	$	1,638,343	$	1,448,035

Other Borrowings

The Company from time to time utilizes short-term borrowed funds to support short-term liquidity needs generally created by increased loan demand. The majority of these short-term borrowed funds consist of advances from the FHLB, Federal funds purchased, and customer repurchase agreements. The Company’s borrowing capacity with the FHLB is determined based on collateral pledged, generally consisting of securities and loans. In addition, the Company has borrowing capacity from other sources, including Federal funds purchased and securities sold under agreements to repurchase. Federal funds purchased are unsecured borrowings with other banks. Securities sold under agreements to repurchase are collateralized by securities and are reflected at the amount of cash received in connection with the transaction, and may require additional collateral based on the fair value of the underlying securities. At December 31, 2018, total short-term borrowed funds consist of FHLB overnight advances of $235.0 million, Federal fund purchased of $256.0 million, and customer repurchase agreements of $22.4 million. At December 31, 2017, total short-term borrowed funds consisted of FHLB overnight advances of $390.0 million and customer repurchase agreements of $26.0 million.

At December 31, 2018 and 2017, the Company does not have any borrowings classified as long-term.

53

Qualifying Debt

Qualifying debt consists of subordinated debt and junior subordinated debt, inclusive of issuance costs and fair market value adjustments. At December 31, 2018, the carrying value of all subordinated debt issuances, which includes the fair value of related hedges, was $299.4 million, compared to $308.6 million at December 31, 2017.

The junior subordinated debt has contractual balances and maturity dates as follows:

		December 31,
Name of Trust	Maturity	2018			2017
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(17,812		)	(10,263		)
Junior subordinated debt, at fair value		$	48,685		$	56,234
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(5,155		)	(5,465		)
Junior subordinated debt, at amortized cost		$	12,372		$	12,062
Total junior subordinated debt		$	61,057		$	68,296

(1) The purchase accounting adjustment is being amortized over the remaining life of the trusts, pursuant to accounting guidance.

The weighted average interest rate of all junior subordinated debt as of December 31, 2018 was 5.15%, which is three-month LIBOR plus the contractual spread of 2.34%, compared to a weighted average interest rate of 4.03% at December 31, 2017.

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Capital Resources

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and 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 their assets, liabilities, and certain off-balance sheet items (discussed in "Note 15. Commitments and Contingencies" to the Consolidated Financial Statements) as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Under the Basel III final rules, a capital conservation buffer, comprised of Common Equity Tier 1 capital, was established above the regulatory minimum capital requirements. This capital conservation buffer began being phased in on January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent year by an additional 0.625%. The capital conservation buffer reached its final level of 2.5% on January 1, 2019 and is now fully phased-in.

As of December 31, 2018 and 2017, the Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized, as defined by the banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2017
WAL	$	2,460,988	$	2,013,744	$	18,569,608	$	19,624,517	13.3	%	10.8	%	10.3	%	10.4	%
WAB	2,299,919		2,003,745		18,664,200		19,541,990		12.3		10.7		10.3		10.7
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

Contractual Obligations and Off-Balance Sheet Arrangements

The Company enters into contracts for services in the ordinary course of business that may require payment for services to be provided in the future and may contain penalty clauses for early termination of the contracts. To meet the financing needs of customers, the Company has financial instruments with off-balance sheet risk, including commitments to extend credit and standby letters of credit. The Company has also committed to irrevocably and unconditionally guarantee the payments or distributions with respect to the holders of preferred securities of the Company's eight statutory business trusts to the extent that the trusts have not made such payments or distributions: 1) accrued and unpaid distributions; 2) the redemption price; and 3) upon a dissolution or termination of the trust, the lesser of the liquidation amount and all accrued and unpaid distributions and the amount of assets of the trust remaining available for distribution. The Company does not believe that these off-balance sheet arrangements have or are reasonably likely to have a material effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. However, there can be no assurance that such arrangements will not have a future effect.

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The following table sets forth the Company's significant contractual obligations as of December 31, 2018:

	Payments Due by Period
	Total		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Time deposit maturities	$	1,834,988	$	1,707,065	$	122,908	$	5,015	$	—
Qualifying debt	409,024		—		—		—		409,024
Other borrowings	491,000		491,000		—		—		—
Operating lease obligations	56,891		11,370		17,740		12,364		15,417
Purchase obligations	78,692		32,343		20,572		16,877		8,900
Total	$	2,870,595	$	2,241,778	$	161,220	$	34,256	$	433,341

Purchase obligations primarily relate to contracts for software licensing, maintenance, and outsourced service providers.

Off-balance sheet commitments associated with outstanding letters of credit, commitments to extend credit, and credit card guarantees as of December 31, 2018 are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. 

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	7,556,741	$	2,650,999	$	2,959,595	$	851,520	$	1,094,627
Credit card commitments and financial guarantees	237,312		237,312		—		—		—
Standby letters of credit	390,161		276,633		98,774		14,754		—
Total	$	8,184,214	$	3,164,944	$	3,058,369	$	866,274	$	1,094,627

The following table sets forth certain information regarding short-term borrowings as of December 31, 2018 and the respective prior year end balances for customer repurchase agreements, lines of credit, FHLB advances, and Federal funds purchased: 

	December 31,
	2018			2017			2016
	(dollars in thousands)
Customer Repurchase Accounts:
Maximum month-end balance	$	30,559		$	41,153		$	50,332
Balance at end of year	22,411			26,017			41,728
Average balance	24,421			33,842			41,623
Lines of Credit:
Maximum month-end balance	—			—			5,000
Balance at end of year	—			—			—
Average balance	—			—			562
Federal funds purchased
Maximum month-end balance	256,000			—			—
Balance at end of year	256,000			—			—
Average balance	20,542			—			—
FHLB Advances:
Maximum month-end balance	625,000			440,000			490,000
Balance at end of year	235,000			390,000			80,000
Average balance	215,699			29,781			58,750
Total Short-Term Borrowed Funds	$	513,411		$	416,017		$	121,728
Weighted average interest rate at end of year	2.46		%	1.33		%	0.42		%
Weighted average interest rate during year	1.73			0.53			0.44

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Critical Accounting Policies

The Notes to the Consolidated Financial Statements contain a discussion of the Company's significant accounting policies, including information regarding recently issued accounting pronouncements, adoption of such policies, and the related impact of their adoption. The Company believes that certain of these policies, along with various estimates that it is required to make in recording its financial transactions, are important to have a complete understanding of the Company's financial position. In addition, these estimates require management to make complex and subjective judgments, many of which include matters with a high degree of uncertainty. The following is a summary of these critical accounting policies and significant estimates.

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance relates to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains independent collateral valuation analysis for each loan every twelve months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, ten-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowances for credit losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Loans acquired with deteriorated credit quality

ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer, applies to a loan with evidence of deterioration of credit quality since its origination, and for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. For these loans accounted for under ASC 310-30, management determines the value of the loan portfolio based, in part, on work provided by an appraiser. Factors considered in the valuation are projected cash flows for the loans, type of loan and related collateral, loan grade, delinquency, and loan to value. Loans are grouped together according to similar characteristics and are treated in the aggregate when applying various valuation techniques. Loans are first evaluated individually to determine if there has been credit deterioration since origination. Once acquired loans are determined to have deteriorated credit quality, the Company evaluates such loans for common risk characteristics and aggregation into one or more pools. Common risk characteristics for pooling acquired loans may include credit ratings, loan type, collateral type, delinquency status, geographic location, loan to value, or combinations thereof. Management also estimates the amount of credit losses that are expected to be realized for individual loans by estimating the probability of default and the loss given default. These estimates are subjective. The accretion of the fair value adjustments attributable to interest rates on loans acquired with deteriorated credit quality is recorded in interest income in the Consolidated Income Statements over the estimated life of the pool. The fair value adjustment attributable to credit losses on these loans is non-accretable. When a loan is sold, paid off or transferred to OREO and liquidated, any remaining non-accretable yield is recorded in interest income.

Adjustments to these loan values in future periods may occur based on management's expectation of future cash flows to be collected over the lives of the loans. Estimating cash flows is performed at a pool level and incorporates analysis of historical cash flows, delinquencies, and charge-offs, as well as assumptions about future cash flows. Performance can vary from period to period,

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causing changes in estimates of the expected cash flows. If, based on the review of a pool of loans, it is probable that a significant increase or improvement in cash flows previously expected to be collected, any valuation allowance established for the pool of loans is first reduced for the increase in the present value of cash flows expected to be collected, and any remaining increase in estimated cash flows increases the accretable yield and is recognized over the remaining estimated life of the loan pool. If based on the review of a pool of loans, it is probable that a decrease or impairment in cash flows previously expected to be collected or if actual cash flows are less than cash flows previously expected, the allowance for credit losses is increased for the decrease in the present value of the cash flows expected to be collected.

Income taxes

The Company’s income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best estimate of current and future taxes to be paid. The Company is subject to federal and state income taxes in the United States. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating the Company's ability to recover its deferred tax assets in the jurisdictions from which they arise, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates used to manage the underlying business.

Liquidity

Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in the Company's business operations or unanticipated events.

The ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors, creditors, and regulators. The Company's liquidity, represented by cash and amounts due from banks, federal funds sold, and non-pledged marketable securities, is a result of the Company's operating, investing, and financing activities and related cash flows. In order to ensure funds are available when necessary, on at least a quarterly basis, the Company projects the amount of funds that will be required over a twelve month period and it also strives to maintain relationships with a diversified customer base. Liquidity requirements can also be met through short-term borrowings or the disposition of short-term assets.

The following table presents the available and outstanding balances of the Company's lines of credit:

	December 31, 2018
	Available Balance		Outstanding Balance
	(in millions)
Unsecured fed funds credit lines at correspondent banks
Committed amounts	$	261.0	$	126.0
Uncommitted amounts	409.0		130.0
Other lines with correspondent banks:
Secured other lines	—		—
Unsecured other lines	45.0		—
Total other lines with correspondent banks	$	715.0	$	256.0

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In addition to lines of credit, the Company has borrowing capacity with the FHLB and FRB from pledged loans and securities. The borrowing capacity, outstanding borrowings, and available credit as of December 31, 2018 are presented in the following table:

	December 31, 2018
	(in millions)
FHLB:
Borrowing capacity	$	2,964.3
Outstanding borrowings	235.0
Letters of credit	206.0
Total available credit	$	2,523.3
FRB:
Borrowing capacity	$	1,308.6
Outstanding borrowings	—
Total available credit	$	1,308.6

The Company has a formal liquidity policy and, in the opinion of management, its liquid assets are considered adequate to meet cash flow needs for loan funding and deposit cash withdrawals for the next 90-120 days. At December 31, 2018, there is $3.03 billion in liquid assets, comprised of $498.6 million in cash, cash equivalents, and money market investments and $2.53 billion in unpledged marketable securities. At December 31, 2017, the Company maintained $2.89 billion in liquid assets, comprised of $416.8 million of cash, cash equivalents, and money market investments, and $2.48 billion of unpledged marketable securities.

The Parent maintains liquidity that would be sufficient to fund its operations and certain non-bank affiliate operations for an extended period should funding from normal sources be disrupted. Since deposits are taken by WAB and not by the Parent, Parent liquidity is not dependent on the Bank's deposit balances. In the Company's analysis of Parent liquidity, it is assumed that the Parent is unable to generate funds from additional debt or equity issuances, receives no dividend income from subsidiaries and does not pay dividends to stockholders, while continuing to make nondiscretionary payments needed to maintain operations and repayment of contractual principal and interest payments owed by the Parent and affiliated companies. Under this scenario, the amount of time the Parent and its non-bank subsidiaries can operate and meet all obligations before the current liquid assets are exhausted is considered as part of the Parent liquidity analysis. Management believes the Parent maintains adequate liquidity capacity to operate without additional funding from new sources for over twelve months.

WAB maintains sufficient funding capacity to address large increases in funding requirements, such as deposit outflows. This capacity is comprised of liquidity derived from a reduction in asset levels and various secured funding sources. On a long-term basis, the Company’s liquidity will be met by changing the relative distribution of its asset portfolios (for example, by reducing investment or loan volumes, or selling or encumbering assets). Further, the Company can increase liquidity by soliciting higher levels of deposit accounts through promotional activities and/or borrowing from correspondent banks, the FHLB of San Francisco, and the FRB. At December 31, 2018, the Company's long-term liquidity needs primarily relate to funds required to support loan originations, commitments, and deposit withdrawals, which can be met by cash flows from investment payments and maturities, and investment sales, if necessary.

The Company’s liquidity is comprised of three primary classifications: 1) cash flows provided by operating activities; 2) cash flows used in investing activities; and 3) cash flows provided by financing activities. Net cash provided by or used in operating activities consists primarily of net income, adjusted for changes in certain other asset and liability accounts and certain non-cash income and expense items, such as the provision for credit losses, investment and other amortization and depreciation. For the years ended December 31, 2018, 2017, and 2016, net cash provided by operating activities was $541.0 million, $383.8 million, and $280.6 million, respectively.

The Company's primary investing activities are the origination of real estate and commercial loans, the collection of repayments of these loans, and the purchase and sale of securities. The Company's net cash provided by and used in investing activities has been primarily influenced by its loan and securities activities. The net increase in loans for the years ended December 31, 2018, 2017, and 2016, was $2.59 billion, $1.87 billion, and $810.5 million, respectively. There was a net increase in investment securities for the year ended December 31, 2018 of $60.5 million, compared to a net increase of $1.05 billion for the year ended December 31, 2017, and net increase of $771.9 million for the year ended December 31, 2016.

Net cash provided by financing activities has been impacted significantly by increased deposit levels. During the years ended December 31, 2018, 2017, and 2016, net deposits increased $2.20 billion, $2.42 billion, and $2.52 billion, respectively.

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Fluctuations in core deposit levels may increase the Company's need for liquidity as certificates of deposit mature or are withdrawn before maturity, and as non-maturity deposits, such as checking and savings account balances, are withdrawn. Additionally, the Company is exposed to the risk that customers with large deposit balances will withdraw all or a portion of such deposits, due in part to the FDIC limitations on the amount of insurance coverage provided to depositors. To mitigate the uninsured deposit risk, the Company participates in the CDARS and ICS programs, which allow an individual customer to invest up to $50.0 million and $110.0 million, respectively, through one participating financial institution or, a combined total of $150.0 million per individual customer, with the entire amount being covered by FDIC insurance. As of December 31, 2018, the Company has $322.9 million of CDARS and $706.9 million of ICS deposits.

As of December 31, 2018, the Company has $718.2 million of wholesale brokered deposits outstanding. Brokered deposits are generally considered to be deposits that have been received from a third party who is engaged in the business of placing deposits on behalf of others. A traditional deposit broker will direct deposits to the banking institution offering the highest interest rate available. Federal banking laws and regulations place restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship based and are at a greater risk of being withdrawn and placed on deposit at another institution offering a higher interest rate, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts.

Federal and state banking regulations place certain restrictions on dividends paid. The total amount of dividends which may be paid at any date is generally limited to the retained earnings of the bank. Dividends paid by WAB to the Parent would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the year ended December 31, 2018, the Parent contributed $1.1 million to WAB; WAB and LVSP paid dividends to the Parent of $150.0 million and $2.1 million, respectively. Subsequent to December 31, 2018, WAB paid dividends to the Parent of $40.0 million.

On December 12, 2018, the Company announced that it had adopted a common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. The repurchase program will expire on December 31, 2019 and all shares repurchased under the plan are retired upon settlement. In addition, the Company periodically acquires shares of its common stock outside of the repurchase program related to stock compensation plan activity.

Recent accounting pronouncements

See "Note 1. Summary of Significant Accounting Policies," of the Notes to Consolidated Financial Statements contained in Item 8. Financial Statements and Supplementary Data for information on recent and recently adopted accounting pronouncements and their expected impact, if any, on the Company's consolidated financial statements.

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SUPERVISION AND REGULATION

WAL, WAB, and certain of its non-banking subsidiaries are subject to comprehensive regulation under federal and state laws. The regulatory framework applicable to bank holding companies and their subsidiary banks is intended to protect depositors, the DIF, and the U.S. banking system as a whole. This system is not designed to protect equity investors in bank holding companies such as WAL.

Set forth below is a summary of the significant laws and regulations applicable to WAL and its subsidiaries. The description that follows is qualified in its entirety by reference to the full text of the statutes, regulations, and policies that are described. Such statutes, regulations, and policies are subject to ongoing review by Congress and state legislatures and federal and state regulatory agencies. A change in any of the statutes, regulations, or regulatory policies applicable to WAL and its subsidiaries could have a material effect on the results of the Company.

Overview

WAL is a separate and distinct legal entity from WAB and its other subsidiaries. As a registered bank holding company, WAL is subject to inspection, examination, and supervision by the FRB, and is regulated under the BHCA. WAL is also under the jurisdiction of the SEC and is subject to the disclosure and other regulatory requirements of the Securities Act of 1933, as amended, and the Exchange Act, as administered by the SEC. The Company’s common stock is listed on the NYSE under the trading symbol “WAL” and the Company is subject to the rules of the NYSE for listed companies. The Company is a financial institution holding company within the meaning of Arizona law. WAL provides a full spectrum of deposit, lending, treasury management, and online banking products and services through WAB, its wholly-owned banking subsidiary. WAB is an Arizona chartered bank and a member of the Federal Reserve System. WAB operates the following full-service banking divisions: ABA, BON, Bridge, FIB, and TPB. WAB is subject to the supervision of, and to regular examination by, the Arizona Department of Financial Institutions, the FRB as its primary federal regulator, as well as by the FDIC as its deposit insurer. WAB's deposits are insured by the FDIC up to the applicable deposit insurance limits in accordance with FDIC laws and regulations. The Company also serves business customers through a national platform of specialized financial services providers.

WAL and WAB are also supervised by the CFPB for compliance with federal consumer financial protection laws. The Company’s non-bank subsidiaries are subject to federal and state laws and regulations, including regulations of the FRB.

The Dodd-Frank Act significantly changed the financial regulatory regime in the United States. Since the enactment of the Dodd-Frank Act, U.S. banks and financial services firms have been subject to enhanced regulation and oversight. Several provisions of the Dodd-Frank Act are subject to further rulemaking, guidance, and interpretation by the federal banking agencies. While the current administration and its appointees to the federal banking agencies have expressed interest in reviewing, revising, and perhaps repealing portions of the Dodd-Frank Act and certain of its implementing regulations, is not clear whether any such legislation or regulatory changes will be enacted or, if enacted, what the effect on the Company would be. 

EGRRCPA

On May 24, 2018, the President signed into law the EGRRCPA which, among other things, amended certain provisions of the Dodd-Frank Act. The EGRRCPA provides limited regulatory relief to certain financial institutions while preserving the existing framework under which U.S. financial institutions are regulated. The EGRRCPA relieves bank holding companies with less than $100 billion in assets, such as the Company, from the enhanced prudential standards imposed under Section 165 of the Dodd-Frank Act (including, but not limited to, resolution planning and enhanced liquidity and risk management requirements). In addition to amending the Dodd Frank Act, the EGRRCPA also includes certain additional banking-related provisions, consumer protection provisions and securities law-related provisions. Many of the EGRRCPA’s changes must be implemented through rules adopted by federal agencies, and certain changes remain subject to their substantial regulatory discretion. As a result, the full impact of the EGRRCPA will remain unclear for the immediate future. The Company expects to continue to evaluate the potential impact of the EGRRCPA as it is further implemented by the regulators.

Bank Holding Company Regulation

WAL is a bank holding company as defined under the BHCA. The BHCA generally limits the business of bank holding companies to banking, managing or controlling banks, and other activities that the FRB has determined to be so closely related to banking as to be a proper incident thereto. Business activities that have been determined to be related to banking, and therefore appropriate for bank holding companies and their affiliates to engage in, include securities brokerage services, investment advisory services, fiduciary services, and certain management advisory and data processing services, among others. Bank holding companies that have elected to become financial holding companies may engage in any activity, or acquire and retain the shares of a company engaged in any activity that is either (i) financial in nature or incidental to such financial activity (as determined by the FRB in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity, and that does not pose a substantial

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risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the FRB). Activities that are financial in nature include securities underwriting and dealing, insurance underwriting, and making merchant banking investments.

Mergers and Acquisitions

The BHCA, the Bank Merger Act, and other federal and state statutes regulate the direct and indirect acquisition of depository institutions. The BHCA requires the prior FRB approval for a bank holding company to acquire, directly or indirectly, 5% or more of any class of voting securities of a commercial bank or its parent holding company and for a company, other than a bank holding company, to acquire 25% or more of any class of voting securities of a bank or bank holding company. Under the Change in Bank Control Act, any person, including a company, may not acquire, directly or indirectly, control of a bank without providing 60 days’ prior notice and receiving a non-objection from the appropriate federal banking agency.

Under the Bank Merger Act, the prior approval of the appropriate federal banking agency is required for insured depository institutions to merge or enter into purchase and assumption transactions. In reviewing applications seeking approval of merger and purchase and assumption transactions, the federal banking agencies will consider, among other things, the competitive effect and public benefits of the transactions, the capital position of the combined banking organization, the applicant's performance record under the CRA, and the effectiveness of the subject organizations in combating money laundering activities. For further information relating to the CRA, see the Section titled “Community Reinvestment Act and Fair Lending Laws.”

Under Section 6-142 of the Arizona Revised Statutes, no person may acquire control of a company that controls an Arizona bank without the prior approval of the Arizona Superintendent of Financial Institutions, or Arizona Superintendent. A person who has the power to vote 15% or more of the voting stock of a controlling company is presumed to control the company.

Enhanced Prudential Standards

Section 165 of the Dodd-Frank Act imposes enhanced prudential standards on larger banking organizations, with certain of these standards applicable to banking organizations over $10 billion, including WAL and WAB, as of the quarter ending June 30, 2014. In October 2012, the FDIC, the OCC, and the FRB issued separate but similar rules requiring covered banks and bank holding companies with $10 billion to $50 billion in total consolidated assets to conduct an annual company-run stress test. WAL and WAB conducted a company-run capital stress test as required by the Dodd-Frank Act in 2017 and provided the results to the FRB. WAL found the Company would have sufficient capital to maintain regulatory capital levels throughout an economic downturn.

As a result of passage of the EGRRCPA, together with the interagency statement regarding the impact of the EGRRCPA released by the FRB, the FDIC and the OCC on July 6, 2018, the Company is relieved from the requirement to conduct company-run stress testing for itself and WAB until reaching $100 billion in assets. Notwithstanding that federal banking agencies will not take action to require company-run stress testing, the capital planning and risk management practices of the Company and the Bank will continue to be reviewed through the regular supervisory processes of the FRB.

In February 2014, the FRB issued a rule further implementing the enhanced prudential standards required by the Dodd-Frank Act. Although most of the standards apply only to bank holding companies with more than $50 billion in assets, as directed by the Dodd-Frank Act, the rule contains certain standards that apply to bank holding companies with more than $10 billion in assets, including a requirement to establish a risk committee of the Company's BOD to manage enterprise-wide risk. The Company meets these requirements. The EGRRCPA increased the asset threshold for requiring a bank holding company to establish a separate risk committee of independent directors from $10 billion to $50 billion. Notwithstanding this change, the Company anticipates retaining its separate risk committee of independent directors.

Volcker Rule

Section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule, restricts the ability of banking entities, such as the Company and WAB, from: (i) engaging in “proprietary trading” and (ii) investing in or sponsoring certain covered funds, subject to certain limited exceptions. Under the Volcker Rule, the term "covered funds" is defined as any issuer that would be an investment company under the Investment Company Act but for the exemption in Section 3(c)(1) or 3(c)(7) of that Act, which includes CLO and CDO securities. There are also several exemptions from the definition of covered fund, including, among other things, loan securitizations, joint ventures, certain types of foreign funds, entities issuing asset-backed commercial paper, and registered investment companies. Further, the final rules permit banking entities, subject to certain conditions and limitations, to invest in or sponsor a covered fund in connection with (1) organizing and offering the covered fund; (2) certain risk-mitigating hedging activities; and (3) de minimis investments in covered funds. Compliance with the Volcker Rule was required by July 21, 2017 and the Company is fully compliant.

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Dividends

The Company has never declared or paid cash dividends on its common stock. The Company currently intends to retain any future earnings for future growth and does not anticipate paying any cash dividends in the foreseeable future. Any determination in the future to pay dividends will be at the discretion of WAL's BOD and will depend on the Company’s earnings, financial condition, results of operations, business prospects, capital requirements, regulatory restrictions, contractual restrictions, and other factors that the BOD may deem relevant.

The Company’s ability to pay dividends is subject to the regulatory authority of the FRB. The supervisory concern of the FRB focuses on a bank holding company’s capital position, its ability to meet its financial obligations as they come due, and its capacity to act as a source of financial strength to its insured depository institution subsidiaries. In addition, FRB policy discourages the payment of dividends by a bank holding company that is not supported by current operating earnings.

As a Delaware corporation, the Company is also subject to limitations under Delaware law on the payment of dividends. Under the Delaware General Corporation Law, dividends may only be paid out of surplus or out of net profits for the year in which the dividend is declared or the preceding year, and no dividends may be paid on common stock at any time during which the capital of outstanding preferred stock or preference stock exceeds the Company's net assets.

From time to time, the Company may become a party to financing agreements and other contractual obligations that have the effect of limiting or prohibiting the declaration or payment of dividends such as the Series B Preferred Stock it issued pursuant to the SBLF (which has subsequently been redeemed). Holding company expenses and obligations with respect to its outstanding trust preferred securities and corresponding subordinated debt also may limit or impair the Company’s ability to declare and pay dividends.

Since the Company has no significant assets other than the voting stock of its subsidiaries, it currently depends on dividends from WAB and, to a lesser extent, its non-bank subsidiaries, for a substantial portion of its revenue and as the primary sources of its cash flow. The ability of a state member bank, such as WAB, to pay cash dividends is restricted by the FRB and the State of Arizona. The FRB’s Regulation H states that a member bank may not declare or pay a dividend if the total of all dividends declared during that calendar year exceed the bank’s net income during that calendar year and the retained net income of the prior two years. Further, without receiving prior approval from both the FRB and two thirds of its shareholders, a bank cannot declare or pay a dividend that would exceed its undivided profits or withdraw any portion of its permanent capital.

Under Section 6-187 of the Arizona Revised Statutes, WAB may pay dividends on the same basis as any other Arizona corporation, except that cash dividends paid out of capital surplus require the prior approval of the Arizona Superintendent. Under Section 10-640 of the Arizona Revised Statutes, a corporation may not make a distribution to stockholders if to do so would render the corporation insolvent or unable to pay its debts as they become due. However, an Arizona bank may not declare a non-stock dividend out of capital surplus without the approval of the Arizona Superintendent.

Federal Reserve System

As a member of the Federal Reserve System, WAB is required by law to maintain reserves against its transaction deposits. The reserves must be held in cash or with the FRB. Banks are permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total of reserve balances was approximately $145.9 million and $105.5 million, as of December 31, 2018 and 2017, respectively.

Source of Strength Doctrine

FRB policy requires bank holding companies to act as a source of financial and managerial strength to their subsidiary banks. Section 616 of the Dodd-Frank Act codified the requirement that bank holding companies act as a source of financial strength. As a result, the Company is expected to commit resources to support WAB, including at times when the Company may not be in a financial position to provide such resources. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary banks. The U.S. Bankruptcy Code provides that, in the event of a bank holding company's bankruptcy, any commitment by the bank holding company to a federal banking agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to priority of payment.

Capital Adequacy and Prompt Corrective Action

The Capital Rules established a comprehensive capital framework for U.S. banking organizations. The Capital Rules generally implement the Basel Committee's Basel III final capital framework for strengthening international capital standards. The Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Capital Rules also address asset risk weights and other matters affecting the

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denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach with a more risk-sensitive approach.

The Capital Rules: (i) include CET1 and the related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to existing regulations. Under the Capital Rules, for most banking organizations, including the Company, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated notes and a portion of the allocation for loan and lease losses, in each case, subject to the Capital Rules’ specific requirements.

Pursuant to the Capital Rules, the minimum capital ratios are as follows:

• 4.5% CET1 to risk-weighted assets;

• 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

• 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

• 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (called “leverage ratio”).

The Capital Rules also include a “capital conservation buffer,” composed entirely of CET1, in addition to these minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity, and other capital instrument repurchases and compensation based on the amount of the shortfall. The Capital Rules became fully phased-in on January 1, 2019. Thus, the capital standards applicable to the Company beginning in 2019 now include an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios inclusive of the capital conservation buffer of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%.

The Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing assets, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1. The deductions and adjustments were incrementally phased in between January 1, 2015 and January 1, 2019.

In addition, under the current general risk-based capital rules, the effects of accumulated other comprehensive income or loss items included in shareholders’ equity (for example, mark-to-market of securities held in the available-for-sale portfolio) under GAAP are reversed for the purposes of determining regulatory capital ratios. Pursuant to the Capital Rules, the effects of certain of these items are not excluded; however, non-advanced approaches banking organizations may make a one-time permanent election to continue to exclude these items. The Company has made this one-time election to exclude these items from its regulatory capital ratios.

The Capital Rules also preclude certain hybrid securities, such as trust preferred securities, issued on or after May 19, 2010 from inclusion in bank holding companies’ Tier 1 capital. The Company has used trust preferred securities in the past as a tool for raising additional Tier 1 capital and otherwise improving its regulatory capital ratios. Although the Company may continue to include its existing trust preferred securities as Tier 1 capital, the prohibition on the use of these securities as Tier 1 capital going forward may limit the Company’s ability to raise capital in the future.

The risk-weighting categories in the Capital Rules are standardized and include a risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset classes.

In September 2017, the federal banking agencies proposed simplifying the Capital Rules. The proposal would apply primarily to non-advanced approaches institutions, such as the Company. The proposal would simplify and clarify a number of the more complex aspects of the Capital Rules, including the treatment for certain acquisition, development, and construction loans, mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of unconsolidated financial institutions, and minority interests. In November 2017, the FRB finalized a rule extending the currently applicable capital rules for non-advanced approaches institutions, including the treatment of mortgage servicing assets. That rule is in effect pending the comment period and review of the general proposal to simplify the Capital Rules for non-advanced approaches institutions.

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Management believes the Company is in compliance, and will continue to be in compliance, with the targeted capital ratios as such requirements are phased in.

Prompt Corrective Action and Safety and Soundness

Pursuant to Section 38 of the FDIA, federal banking agencies are required to take “prompt corrective action” should a depository institution fail to meet certain capital adequacy standards. At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on payment of dividends and restrictions on the acceptance of brokered deposits. Furthermore, if an insured depository institution is classified in one of the undercapitalized categories, it is required to submit a capital restoration plan to the appropriate federal banking agency, and the holding company must guarantee the performance of that plan. Based upon its capital levels, a bank that is classified as well-capitalized, adequately capitalized, or undercapitalized may be treated as though it were in the next lower capital category if the appropriate federal banking agency, after notice and opportunity for hearing, determines that an unsafe or unsound condition, or an unsafe or unsound practice, warrants such treatment.

For purposes of prompt corrective action, to be: (i) well-capitalized, a bank must have a total risk based capital ratio of at least 10%, a Tier 1 risk based capital ratio of at least 8%, a CET1 risk based capital ratio of at least 6.5%, and a Tier 1 leverage ratio of at least 5%; (ii) adequately capitalized, a bank must have a total risk based capital ratio of at least 8%, a Tier 1 risk based capital ratio of at least 6%, a CET1 risk based capital ratio of at least 4.5%, and a Tier 1 leverage ratio of at least 4%; (iii) undercapitalized, a bank would have a total risk based capital ratio of less than 8%, a Tier 1 risk based capital ratio of less than 6%, a CET1 risk based capital ratio of less than 4.5%, and a Tier 1 leverage ratio of less than 4%; (iv) significantly undercapitalized, a bank would have a total risk based capital ratio of less than 6%, a Tier 1 risk based capital ratio of less than 4%, a CET1 risk based capital ratio of less than 3%, and a Tier 1 leverage ratio of less than 3%; (v) critically undercapitalized, a bank would have a ratio of tangible equity to total assets that is less than or equal to 2%.

Bank holding companies and insured banks also may be subject to potential enforcement actions of varying levels of severity by the federal banking agencies for unsafe or unsound practices in conducting their business, or for violation of any law, rule, regulation, condition imposed in writing by the agency or term of a written agreement with the agency. In more serious cases, enforcement actions may include the issuance of directives to increase capital; the issuance of formal and informal agreements; the imposition of civil monetary penalties; the issuance of a cease and desist order that can be judicially enforced; the issuance of removal and prohibition orders against officers, directors, and other institution-affiliated parties; the termination of the bank’s deposit insurance; the appointment of a conservator or receiver for the bank; and the enforcement of such actions through injunctions or restraining orders based upon a judicial determination that the agency would be harmed if such equitable relief was not granted.

Transactions with Affiliates and Insiders

Under federal law, transactions between insured depository institutions and their affiliates are governed by Sections 23A and 23B of the FRA and implementing Regulation W. In a bank holding company context, at a minimum, the parent holding company of a bank, and any companies which are controlled by such parent holding company, are affiliates of the bank. Generally, Sections 23A and 23B of the FRA are intended to protect insured depository institutions from losses arising from transactions with non-insured affiliates by limiting the extent to which a bank or its subsidiaries may engage in covered transactions with any one affiliate and with all affiliates of the bank in the aggregate, and requiring that such transactions be on terms consistent with safe and sound banking practices.

Further, Section 22(h) of the FRA and its implementing Regulation O restricts loans to directors, executive officers, and principal stockholders (“insiders”). Under Section 22(h), loans to insiders and their related interests may not exceed, together with all other outstanding loans to such persons and affiliated entities, the institution's total capital and surplus. Loans to insiders above specified amounts must receive the prior approval of the BOD. Further, under Section 22(h) of the FRA, loans to directors, executive officers, and principal stockholders must be made on terms substantially the same as offered in comparable transactions to other persons, except that such insiders may receive preferential loans made under a benefit or compensation program that is widely available to the bank's employees and does not give preference to the insider over the employees. Section 22(g) of the FRA places additional limitations on loans to executive officers.

Lending Limits

In addition to the requirements set forth above, state banking law generally limits the amount of funds that a state-chartered bank may lend to a single borrower. Under Section 6-352 of the Arizona Revised Statutes, the obligations of one borrower to a bank may not exceed 20% of the bank’s capital, plus an additional 10% of its capital if the additional amounts are fully secured by readily marketable collateral.

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Brokered Deposits

Section 29 of the FDIA and FDIC regulations generally limit the ability of any bank to accept, renew or roll over any brokered deposit unless it is “well capitalized” or, with the FDIC’s approval, “adequately capitalized.” However, as a result of the EGRRCPA, the FDIC is undertaking a comprehensive review of its regulatory approach to brokered deposits, including reciprocal deposits, and interest rate caps applicable to banks that are less than “well capitalized.” At this time, it is difficult to predict the impact, if any, to the Bank of the FDIC’s review of brokered deposit regulations.

Consumer Protection and CFPB Supervision

The Dodd-Frank Act centralized responsibility for consumer financial protection by creating the CFPB, an independent agency charged with responsibility for implementing, enforcing, and examining compliance with federal consumer financial protection laws. The Company is subject to a number of federal and state laws designed to protect borrowers and promote lending to various sectors of the economy and population. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Procedures Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Practices Act, various state law counterparts, and the Consumer Financial Protection Act of 2010, which is part of the Dodd-Frank Act. The Dodd-Frank Act does not prevent states from adopting stricter consumer protection standards. State regulation of financial products and potential enforcement actions could also adversely affect the Company’s business, financial condition, or operations.

Depositor Preference

The FDIA provides that, in the event of the “liquidation or other resolution” of an insured depository institution, the claims of depositors of the institution, including the claims of the FDIC as subrogee of insured depositors, and certain claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the institution. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including the parent bank holding company, with respect to any extensions of credit they have made to such insured depository institution.

Federal Deposit Insurance

Substantially all of the deposits of WAB are insured up to applicable limits by the FDIC’s DIF. The basic limit on FDIC deposit insurance is $250,000 per depositor. WAB is subject to deposit insurance assessments to maintain the DIF.

The FDIC uses a risk-based assessment system that imposes insurance premiums based upon a risk matrix that takes into account a bank's CAMELS rating. The risk matrix utilizes different risk categories distinguished by capital levels and supervisory ratings. As a result of the Dodd-Frank Act, the base for insurance assessments is now consolidated average assets less average tangible equity. Assessment rates are calculated using formulas that take into account the risk of the institution being assessed. WAB is classified as, and subject to the scorecard for, a large and highly complex institution to determine its total base assessment rate.

The Dodd-Frank Act requires that the FDIC raise the minimum reserve ratio of the DIF from 1.15% to 1.35%, and that the FDIC offset the effect of this increase on insured depository institutions with total consolidated assets of less than $10 billion. In March 2016, the FDIC finalized a rule to impose a surcharge of 4.5 cents per $100 of their assessment base on deposit insurance assessment rates paid by insured depository institutions with total consolidated assets of more than $10 billion. As of June 30, 2016, the minimum reserve ratio reached 1.17% and as such, WAB was subject to the surcharge beginning July 1, 2016. At September 30, 2018, the reserve ratio reached 1.36%, exceeding the statutorily required minimum. As a result, WAB was no longer subject to the surcharge as of September 30, 2018. The FDIC also has authority to further increase deposit insurance assessments. FDIC deposit insurance expense also includes FICO assessments related to outstanding FICO bonds. These assessments will continue until the FICO bonds mature, with such maturities beginning in 2017 and continuing through 2019.

Under the FDIA, the FDIC may terminate deposit insurance upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. The Company’s management is not aware of any practice, condition, or violation that might lead to the termination of its deposit insurance.

Financial Privacy and Data Security

The Company is subject to federal laws, including the GLBA, and certain state laws containing consumer privacy protection provisions. These provisions limit the ability of banks and other financial institutions to disclose non-public information about consumers to affiliated and non-affiliated third parties and limit the reuse of certain consumer information received from non-affiliated institutions. These provision require notice of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to affiliates or non-affiliated third parties by means of “opt out” or “opt in” authorizations.

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For example, in August 2018, the CFPB published its final rule to update Regulation P pursuant to the amended GLBA. Under this rule, certain qualifying financial institutions are not required to provide annual privacy notices to customers. To qualify, a financial institution must not share nonpublic personal information about customers except as described in certain statutory exceptions which do not trigger a customer’s statutory opt-out right. In addition, the financial institution must not have changed its disclosure policies and practices from those disclosed in its most recent privacy notice. The rule sets forth timing requirements for delivery of annual privacy notices in the event that a financial institution that qualified for the annual notice exemption later changes its policies or practices in such a way that it no longer qualifies for the exemption.

The GLBA also requires that financial institutions implement comprehensive written information security programs that include administrative, technical, and physical safeguards to protect consumer information. Further, pursuant to interpretive guidance issued under the GLBA and certain state laws, financial institutions are required to notify customers of security breaches that result in unauthorized access to their nonpublic personal information.

For example, under California law, every business that owns or licenses personal information about a California resident must maintain reasonable security procedures and policies to protect that information and comply with specific requirements relating to the destruction of records containing personal information and disclosure of breaches to customers, and restrictions on the use of customer information unless the customer "opts in." Other states, including Arizona and Nevada where WAB has branches, may also have applicable laws requiring businesses that retain consumer personal information to develop reasonable security policies and procedures, notify consumers of a security breach, or provide disclosures about the use and sharing of consumer personal information.

The federal banking agencies, including the FRB, through the Federal Financial Institutions Examination Council, have adopted guidelines to encourage financial institutions to address cybersecurity risks and identify, assess, and mitigate these risks, both internally and at critical third party services providers. In October 2016, the federal bank regulatory agencies issued proposed rules on enhanced cybersecurity risk-management and resilience standards that would apply to very large financial institutions and to services provided by third parties to these institutions. The comment period for these proposed rules has closed and a final rule has not been published. Although the proposed rules would apply only to bank holding companies and banks with $50 billion or more in total consolidated assets, these rules could influence the federal bank regulatory agencies’ expectations and supervisory requirements for information security standards and cybersecurity programs of financial institutions with less than $50 billion in total consolidated assets.

Although these laws and regulations impose compliance costs and create obligations and, in some cases, reporting obligations, and compliance with all of the laws, regulations, and reporting obligations may require significant resources of WAL and WAB, these laws and regulations do not materially affect WAB’s products, services or other business activities.

Community Reinvestment Act and Fair Lending Laws

WAB has a responsibility under the CRA to help meet the credit needs of its communities, including low and moderate-income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution's discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the CRA. In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit discrimination in lending practices on the basis of characteristics specified in those statutes. WAB’s failure to comply with the provisions of the CRA could, at a minimum, result in regulatory restrictions on its activities and the activities of the Company. WAB’s failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions. WAB received a rating of “Satisfactory” in its most recent CRA examination, in November 2015.

Federal Home Loan Bank of San Francisco

WAB is a member of the FHLB of San Francisco, which is one of 12 regional FHLBs that provide funding to their members for making housing loans as well as for affordable house and community development loans. Each FHLB serves as a reserve, or central bank, for the members within its assigned region. Each FHLB makes loans to its members in accordance with policies and procedures established by the board of directors of the FHLB. As a member, WAB must purchase and maintain stock in the FHLB of San Francisco. At December 31, 2018, WAB’s total investment in FHLB stock was $17.3 million.

Incentive Compensation

The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, including the Company and WAB, with at least $1 billion in total consolidated assets that encourage inappropriate risks by providing an executive officer, employee, director, or principal shareholder with excessive compensation, fees, or benefits that could lead to material financial loss to the entity. The federal banking agencies and the SEC most recently proposed such regulations in 2016, but the regulations have not yet been finalized.

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If the regulations are adopted in the form initially proposed, they will restrict the manner in which executive compensation is structured.

The Dodd-Frank Act also requires publicly traded companies to give stockholders a non-binding vote on executive compensation at least every three years and on so-called “golden parachute” payments in connection with approvals of mergers and acquisitions. WAL gives stockholders a non-binding vote on executive compensation annually.

Preventing Suspicious Activity

Under Title III of the USA PATRIOT Act, all financial institutions are required to take certain measures to identify their customers, prevent money laundering, monitor customer transactions, and report suspicious activity to U.S. law enforcement agencies. Financial institutions also are required to respond to requests for information from federal banking agencies and law enforcement agencies. Information sharing among financial institutions for the above purposes is encouraged by an exemption granted to complying financial institutions from the privacy provisions of the GLBA and other privacy laws. Financial institutions that hold correspondent accounts for foreign banks or provide private banking services to foreign individuals are required to take measures to avoid dealing with certain foreign individuals or entities, including foreign banks with profiles that raise money laundering concerns, and are prohibited from dealing with foreign “shell banks” and persons from jurisdictions of particular concern. The primary federal banking agencies and the Secretary of the Treasury have adopted regulations to implement several of these provisions. On May 11, 2018, WAB must comply with the new Customer Due Diligence Rule, which clarified and strengthened the existing obligations for identifying new and existing customers and explicitly include risk-based procedures for conducting ongoing customer due diligence. All financial institutions also are required to establish internal anti-money laundering programs. The effectiveness of a financial institution in combating money laundering activities is a factor to be considered in any application submitted by the financial institution under the Bank Merger Act. The Company has a Bank Secrecy Act and USA PATRIOT Act Board-approved compliance program and engages in relatively few transactions with foreign financial institutions or foreign persons.

The FCRA’s Red Flags Rule requires financial institutions with covered accounts (e.g., consumer bank accounts and loans) to develop, implement, and administer an identity theft prevention program. This program must include reasonable policies and procedures to detect suspicious patterns or practices that indicate the possibility of identity theft, such as inconsistencies in personal information or changes in account activity.

Office of Foreign Assets Control Regulation

The United States has imposed economic sanctions that affect transactions with designated foreign countries, nationals, and others. These are typically known as the OFAC rules based on their administration by the OFAC. The OFAC-administered sanctions targeting countries take many different forms. Generally, they contain one or more of the following elements: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on “U.S. persons” engaging in financial transactions relating to making investments in, or providing investment-related advice or assistance to, a sanctioned country; and (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons). Blocked assets (property and bank deposits) cannot be paid out, withdrawn, set off, or transferred in any manner without a license from OFAC. Failure to comply with these sanctions could have serious legal and reputational consequences.

Future Legislative Initiatives

Federal and state legislatures may introduce legislation that will impact the financial services industry. In addition, federal banking agencies may introduce regulatory initiatives that are likely to impact the financial services industry, generally. However it is not clear whether such changes will be enacted or, if enacted, what their effect on the Company will be. New legislation could change banking statutes and the operating environment of the Company in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions. The Company cannot predict whether any such legislation will be enacted, and, if enacted, the effect that it or any implementing regulations would have on the financial condition or results of operations of the Company. A change in statutes, regulations, or regulatory policies applicable to WAL or any of its subsidiaries could have a material effect on the business of the Company.

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Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

Market risk is the risk of loss in a financial instrument arising from adverse changes in market prices, interest rates, foreign currency exchange rates, commodity prices, and equity prices. The Company's market risk arises primarily from interest rate risk inherent in its lending, investing, and deposit taking activities. To that end, management actively monitors and manages the Company's interest rate risk exposure. The Company generally manages its interest rate sensitivity by evaluating re-pricing opportunities on its earning assets to those on its funding liabilities.

Management uses various asset/liability strategies to manage the re-pricing characteristics of the Company's assets and liabilities, all of which are designed to ensure that exposure to interest rate fluctuations is limited to within the Company's guidelines of acceptable levels of risk-taking. Hedging strategies, including the terms and pricing of loans and deposits and management of the deployment of its securities, are used to reduce mismatches in interest rate re-pricing opportunities of portfolio assets and their funding sources.

Interest rate risk is addressed by the ALCO, which includes members of executive management, finance, and operations. ALCO monitors interest rate risk by analyzing the potential impact on the net EVE and net interest income from potential changes in interest rates and considers the impact of alternative strategies or changes in balance sheet structure. The Company manages its balance sheet in part to maintain the potential impact on EVE and net interest income within acceptable ranges despite changes in interest rates.

The Company's exposure to interest rate risk is reviewed at least quarterly by the ALCO. Interest rate risk exposure is measured using interest rate sensitivity analysis to determine its change in both EVE and net interest income in the event of hypothetical changes in interest rates. If potential changes to EVE and net interest income resulting from hypothetical interest rate changes are not within the limits established by the BOD, the BOD may direct management to adjust the asset and liability mix to bring interest rate risk within Board-approved limits.

Net Interest Income Simulation. In order to measure interest rate risk at December 31, 2018, the Company uses a simulation model to project changes in net interest income that result from forecasted changes in interest rates. This analysis calculates the difference between a baseline net interest income forecast using current yield curves that do not take into consideration any future anticipated rate hikes, compared to forecasted net income resulting from an immediate parallel shift in rates upward or downward, along with other scenarios directed by ALCO. The income simulation model includes various assumptions regarding the re-pricing relationships for each of the Company's products. Many of the Company's assets are floating rate loans, which are assumed to re-price immediately and, proportional to the change in market rates, depending on their contracted index, including the impact of caps or floors. Some loans and investments contain contractual prepayment features (embedded options) and, accordingly, the simulation model incorporates prepayment assumptions. The Company's non-term deposit products re-price more slowly, usually changing less than the change in market rates and at the Company's discretion.

This analysis indicates the impact of changes in net interest income for the given set of rate changes and assumptions. It assumes the balance sheet remains static and that its structure does not change over the course of the year. It does not account for all factors that could impact the Company's results, including changes by management to mitigate interest rate changes or secondary factors, such as changes to the Company's credit risk profile as interest rates change.

Furthermore, loan prepayment rate estimates and spread relationships change regularly. Interest rate changes create changes in actual loan prepayment speeds that will differ from the market estimates incorporated in this analysis. Changes that vary significantly from the modeled assumptions may have significant effects on the Company's actual net interest income.

This simulation model assesses the changes in net interest income that would occur in response to an instantaneous and sustained increase or decrease (shock) in market interest rates over a twelve-month period. At December 31, 2018, the Company's net interest income exposure for the next twelve months related to these hypothetical changes in market interest rates was within the Company's current guidelines for all up-rate scenarios. The Company’s net interest income exposure in the 100 basis point down-rate scenario was not within the Company’s guideline of (5.0)%. The breach is the result of the Company’s asset sensitive balance sheet as the Company’s assets re-price faster than its liabilities. In addition, interest-rate sensitive liabilities have a less significant impact to changes in interest rates due to the liability pricing assumptions utilized in the model and, as non-interest-bearing deposits represent 39% of total deposits, the Company has a higher proportion of interest-earning assets in comparison to its interest-bearing liabilities. Accordingly, in a down-rate scenario, asset pricing will react faster than liability pricing, resulting in an expected loss of interest income. The Board and ALCO have accepted the breach and believe that as deposit costs increase over time, the proportion of fixed-rate assets relative to floating-rate assets will also increase, reducing our asset sensitivity and dampening the impact of a down-rate scenario.

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Sensitivity of Net Interest Income

	Interest Rate Scenario (change in basis points from Base)
	Down 100			Base		Up 100			Up 200			Up 300			Up 400			Short Rates Up 100
	(in thousands)
Interest Income	$	1,077,413		$	1,185,872	$	1,306,369		$	1,426,302		$	1,546,495		$	1,667,029		$	1,294,126
Interest Expense	147,959			198,680		253,016			307,350			361,680			416,006			252,033
Net Interest Income	929,454			987,192		1,053,353			1,118,952			1,184,815			1,251,023			1,042,093
% Change	(5.8		)%			6.7		%	13.3		%	20.0		%	26.7		%	5.6		%

Economic Value of Equity. The Company measures the impact of market interest rate changes on the NPV of estimated cash flows from its assets, liabilities, and off-balance sheet items, defined as EVE, using a simulation model. This simulation model assesses the changes in the market value of interest rate sensitive financial instruments that would occur in response to an instantaneous and sustained increase or decrease (shock) in market interest rates.

At December 31, 2018, the Company's EVE exposure related to these hypothetical changes in market interest rates was within the Company's current guidelines. The following table shows the Company's projected change in EVE for this set of rate shocks at December 31, 2018:

Economic Value of Equity

	Interest Rate Scenario (change in basis points from Base)
	Down 100			Base		Up 100			Up 200			Up 300			Up 400			Short Rates Up 100
	(in thousands)
Assets	$	23,532,413		$	23,018,258	$	22,486,076		$	21,994,506		$	21,546,768		$	21,121,409		$	23,016,043
Liabilities	18,908,801			18,498,856		18,173,139			17,893,596			17,648,641			17,430,703			18,942,813
Net Present Value	4,623,612			4,519,402		4,312,937			4,100,910			3,898,127			3,690,706			4,073,230
% Change	2.3		%			(4.6		)%	(9.3		)%	(13.7		)%	(18.3		)%	(9.9		)%

The computation of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, asset prepayments, and deposit decay, and should not be relied upon as indicative of actual results. Further, the computations do not contemplate any actions the Company may undertake in response to changes in interest rates. Actual amounts may differ from the projections set forth above should market conditions vary from the underlying assumptions.

Derivative Contracts. In the normal course of business, the Company uses derivative instruments to meet the needs of its customers and manage exposure to fluctuations in interest rates. The following table summarizes the aggregate notional amounts, market values, and terms of the Company’s derivative positions as of December 31, 2018 and 2017:

Outstanding Derivatives Positions

December 31,
2018						2017
Notional		Net Value			Weighted Average Term (Years)	Notional		Net Value			Weighted Average Term (Years)
(dollars in thousands)
$	1,017,773	$	(42,477	)	15.8	$	1,115,736	$	(51,629	)	16.0

70

Item 8. Financial Statements and Supplementary Data

The Company's Consolidated Financial Statements and Supplementary Data included in this Annual Report is immediately following the Index to Consolidated Financial Statements page to this Annual Report.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	PAGE
Report of Independent Registered Public Accounting Firm	72
Consolidated Balance Sheets	73
Consolidated Income Statements	74
Consolidated Statements of Comprehensive Income	76
Consolidated Statements of Stockholders’ Equity	77
Consolidated Statements of Cash Flows	78
Notes to Consolidated Financial Statements	80

71

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Western Alliance Bancorporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Western Alliance Bancorporation and Subsidiaries (the Company) as of December 31, 2018 and 2017, the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2018, and the related notes to the consolidated financial statements (collectively the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report, dated March 1, 2019, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ RSM US LLP

 We have served as the Company's auditor since 1994.

Phoenix, Arizona

March 1, 2019

72

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31,
	2018			2017
	(in thousands, except shares and per share amounts)
Assets:
Cash and due from banks	$	180,053		$	181,191
Interest-bearing deposits in other financial institutions	318,519			235,577
Cash, cash equivalents, and restricted cash	498,572			416,768
Money market investments	7			—
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	3,276,988			3,499,519
Investment securities - HTM, at amortized cost; fair value of $298,648 at December 31, 2018 and $256,314 at December 31, 2017	302,905			255,050
Investment securities - equity	115,061			—
Investments in restricted stock, at cost	66,132			65,785
Loans, net of deferred loan fees and costs	17,710,629			15,093,935
Less: allowance for credit losses	(152,717		)	(140,050		)
Net loans held for investment	17,557,912			14,953,885
Premises and equipment, net	119,474			118,719
Other assets acquired through foreclosure, net	17,924			28,540
Bank owned life insurance	170,145			167,764
Goodwill	289,895			289,895
Other intangible assets, net	9,260			10,853
Deferred tax assets, net	31,990			5,780
Investments in LIHTC	342,381			267,023
Other assets	310,840			249,504
Total assets	$	23,109,486		$	20,329,085
Liabilities:
Deposits:
Non-interest-bearing demand	$	7,456,141		$	7,433,962
Interest-bearing	11,721,306			9,538,570
Total deposits	19,177,447			16,972,532
Customer repurchase agreements	22,411			26,017
Other borrowings	491,000			390,000
Qualifying debt	360,458			376,905
Other liabilities	444,436			333,933
Total liabilities	20,495,752			18,099,387
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock - par value $0.0001; 200,000,000 authorized; 106,741,870 shares issued at December 31, 2018 and 107,057,520 at December 31, 2017	10			10
Treasury stock, at cost (1,793,231 shares at December 31, 2018 and 1,570,155 shares at December 31, 2017)	(53,083		)	(40,173		)
Additional paid in capital	1,417,724			1,424,540
Accumulated other comprehensive (loss)	(33,622		)	(3,145		)
Retained earnings	1,282,705			848,466
Total stockholders’ equity	2,613,734			2,229,698
Total liabilities and stockholders’ equity	$	23,109,486		$	20,329,085

See accompanying Notes to Consolidated Financial Statements.

73

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

	Year Ended December 31,
	2018			2017			2016
	(in thousands, except per share amounts)
Interest income:
Loans, including fees	$	910,577		$	747,510		$	636,596
Investment securities	106,752			83,354			52,570
Dividends	7,915			7,740			9,002
Other	8,239			6,909			2,338
Total interest income	1,033,483			845,513			700,506
Interest expense:
Deposits	90,464			41,965			29,722
Other borrowings	4,329			561			508
Qualifying debt	22,287			18,273			12,998
Other	524			50			65
Total interest expense	117,604			60,849			43,293
Net interest income	915,879			784,664			657,213
Provision for credit losses	23,000			17,250			8,000
Net interest income after provision for credit losses	892,879			767,414			649,213
Non-interest income:
Service charges and fees	22,295			20,346			18,824
Income from equity investments	8,595			4,496			2,664
Card income	8,009			6,313			5,226
Foreign currency income	4,760			3,536			3,419
Lending related income and gains (losses) on sale of loans, net	4,340			2,212			5,295
Income from bank owned life insurance	3,946			3,861			3,762
(Loss) gain on sales of investment securities, net	(7,656		)	2,343			1,059
Unrealized (losses) gains on assets measured at fair value, net	(3,611		)	(1		)	8
Other income	2,438			2,238			2,658
Total non-interest income	43,116			45,344			42,915
Non-interest expense:
Salaries and employee benefits	253,238			214,344			188,810
Occupancy	29,404			27,860			27,303
Legal, professional, and directors' fees	28,722			29,814			24,610
Data processing	22,716			19,225			19,657
Deposit costs	18,900			9,731			4,983
Insurance	14,005			14,042			12,898
Business development	5,960			6,128			5,902
Loan and repossessed asset expenses	4,578			4,617			2,999
Card expense	4,301			3,413			1,939
Marketing	3,770			3,804			3,596
Intangible amortization	1,594			2,074			2,788
Net loss (gain) on sales / valuations of repossessed and other assets	9			(80		)	(125		)
Acquisition / restructure expense	—			—			12,412
Other expense	38,470			25,969			23,177
Total non-interest expense	425,667			360,941			330,949
Income before provision for income taxes	510,328			451,817			361,179
Income tax expense	74,540			126,325			101,381
Net income	$	435,788		$	325,492		$	259,798

74

	Year Ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Earnings per share:
Basic	$	4.16	$	3.12	$	2.52
Diluted	4.14		3.10		2.50
Weighted average number of common shares outstanding:
Basic	104,669		104,179		103,042
Diluted	105,370		104,997		103,843

See accompanying Notes to Consolidated Financial Statements.

75

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Net income	$	435,788		$	325,492		$	259,798
Other comprehensive (loss) income, net:
Unrealized (loss) gain on AFS securities, net of tax effect of $13,354, $(3,973), and $15,099, respectively	(40,808		)	6,334			(24,254		)
Unrealized (loss) gain on SERP, net of tax effect of $24, $(79), and $(18), respectively	(77		)	264			31
Unrealized gain (loss) on junior subordinated debt, net of tax effect of $(1,857), $2,220, and $1,405, respectively	5,693			(3,604		)	(2,077		)
Realized loss (gain) on sale of AFS securities included in income, net of tax effect of $(1,883), $899, and $404, respectively	5,773			(1,444		)	(655		)
Net other comprehensive (loss) income	(29,419		)	1,550			(26,955		)
Comprehensive income	$	406,369		$	327,042		$	232,843

See accompanying Notes to Consolidated Financial Statements.

76

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

		Common Stock				Additional Paid in Capital			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total Stockholders’ Equity
		Shares		Amount
	(in thousands)
Balance, December 31, 2015		103,087		$	10	$	1,323,473		$	(16,879	)	$	22,260		$	262,638		$	1,591,502
Net income		—		—		—			—			—			259,798			259,798
Exercise of stock options		77		—		1,070			—			—			—			1,070
Restricted stock, performance stock units, and other grants, net		662		—		19,812			—			—			—			19,812
Restricted stock surrendered (1)		(305	)	—		—			(9,483		)	—			—			(9,483		)
ATM common stock issuance, net		1,550		—		55,785			—			—			—			55,785
Other comprehensive loss, net		—		—		—			—			(26,955		)	—			(26,955		)
Balance, December 31, 2016		105,071		$	10	$	1,400,140		$	(26,362	)	$	(4,695	)	$	522,436		$	1,891,529
Balance, January 1, 2017 (2)		105,071		10		1,400,140			(26,362		)	(4,695		)	522,974			1,892,067
Net income		—		—		—			—			—			325,492			325,492
Exercise of stock options		38		—		846			—			—			—			846
Restricted stock, performance stock units, and other grants, net		648		—		23,554			—			—			—			23,554
Restricted stock surrendered (1)		(270	)	—		—			(13,811		)	—			—			(13,811		)
Other comprehensive income, net		—		—		—			—			1,550			—			1,550
Balance, December 31, 2017		105,487		$	10	$	1,424,540		$	(40,173	)	$	(3,145	)	$	848,466		$	2,229,698
Balance, January 1, 2018 (3)		105,487		10		1,424,540			(40,173		)	(4,203		)	849,524			2,229,698
Net income		—		—		—			—			—			435,788			435,788
Exercise of stock options		22		—		554			—			—			—			554
Restricted stock, performance stock unit, and other grants, net		564		—		25,711			—			—			—			25,711
Restricted stock surrendered (1)		(223	)	—		—			(12,910		)	—			—			(12,910		)
Stock repurchase		(901	)	—		(33,081		)	—			—			(2,607		)	(35,688		)
Other comprehensive loss, net		—		—		—			—			(29,419		)	—			(29,419		)
Balance, December 31, 2018		104,949		$	10	$	1,417,724		$	(53,083	)	$	(33,622	)	$	1,282,705		$	2,613,734

(1) Share amounts represent Treasury Shares, see "Note 1. Summary of Significant Accounting Policies" for further discussion.

(2) As adjusted for adoption of ASU 2017-12. The cumulative effect of adoption of this guidance at January 1, 2017 resulted in an increase to retained earnings of $0.5 million and a corresponding increase to loans for the fair market value adjustment on the swaps.

(3) As adjusted for adoption of ASU 2016-01 and ASU 2018-02. The cumulative effect of adoption of this guidance at January 1, 2018 resulted in an increase to retained earnings of $1.1 million and a corresponding decrease to accumulated other comprehensive income. See "Note 1. Summary of Significant Accounting Policies" for further discussion.

See accompanying Notes to Consolidated Financial Statements.

77

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	December 31,
	2018			2017			2016
	(in thousands)
Cash flows from operating activities:
Net income	$	435,788		$	325,492		$	259,798
Adjustments to reconcile net income to cash provided by operating activities:
Provision for credit losses	23,000			17,250			8,000
Depreciation and amortization	14,319			13,393			12,494
Stock-based compensation	25,711			23,554			20,338
Deferred income taxes	(16,709		)	88,471			7,644
Amortization of net premiums for investment securities	14,247			16,938			13,790
Amortization of tax credit investments	35,898			25,355			17,336
Accretion of fair market value adjustments on loans acquired from business combinations	(18,565		)	(28,235		)	(29,209		)
Accretion and amortization of fair market value adjustments on other assets and liabilities acquired from business combinations	1,904			2,385			3,098
Income from bank owned life insurance	(3,946		)	(3,861		)	(3,762		)
Losses / (Gains) on:
Sales of investment securities	7,656			(2,343		)	(1,059		)
Assets measured at fair value, net	3,611			1			(8		)
Sale of loans	(2,638		)	(945		)	(2,492		)
Other assets acquired through foreclosure, net	(1,214		)	(228		)	372
Valuation adjustments of other repossessed assets, net	1,267			120			(268		)
Sale of premises, equipment, and other assets, net	(44		)	28			21
Changes in:
Other assets	1,378			(111,902		)	(23,114		)
Other liabilities	19,309			18,338			(2,334		)
Net cash provided by operating activities	540,972			383,811			280,645
Cash flows from investing activities:
Investment securities - trading
Principal pay downs and maturities	—			—			395
Proceeds from sales	—			994			—
Investment securities - AFS
Purchases	(520,734		)	(1,429,434		)	(1,205,057		)
Principal pay downs and maturities	425,151			430,934			499,541
Proceeds from sales	154,434			110,104			25,504
Investment securities - HTM
Purchases	(56,575		)	(169,400		)	(92,384		)
Principal pay downs and maturities	8,987			6,174			94
Equity securities carried at fair value
Purchases	(71,728		)	—			—
Reinvestment of dividends	(577		)	—			—
Proceeds from sales	48,639			—			—
Purchase of investment tax credits	(109,598		)	(38,098		)	(28,847		)
Purchase of SBIC investments	(4,129		)	(5,819		)	—
(Purchase) sale of money market investments, net	(7		)	—			121
Proceeds from bank owned life insurance	1,655			607			1,710
(Purchase) liquidation of restricted stock, net	(347		)	(535		)	(7,139		)
Loan fundings and principal collections, net	(2,586,703		)	(1,873,387		)	(810,543		)
Purchase of premises, equipment, and other assets, net	(11,313		)	(8,862		)	(10,574		)
Proceeds from sale of other real estate owned and repossessed assets, net	9,412			21,195			9,133
Cash and cash equivalents (used) acquired in acquisitions, net	—			—			(1,272,187		)
Net cash used in investing activities	(2,713,433		)	(2,955,527		)	(2,890,233		)

78

	December 31,
	2018			2017			2016
	(in thousands)
Cash flows from financing activities:
Net increase (decrease) in deposits	$	2,204,915		$	2,422,669		$	2,519,239
Proceeds from issuance of subordinated debt	—			—			169,256
Net increase (decrease) in borrowings	97,394			294,289			(66,428		)
Proceeds from exercise of common stock options	554			846			1,070
Cash paid for tax withholding on vested restricted stock	(12,910		)	(13,811		)	(9,483		)
Common stock repurchases	(35,688		)	—			—
Proceeds from issuance of stock in offerings, net	—			—			55,785
Net cash provided by financing activities	2,254,265			2,703,993			2,669,439
Net increase (decrease) in cash, cash equivalents, and restricted cash	81,804			132,277			59,851
Cash, cash equivalents, and restricted cash at beginning of period	416,768			284,491			224,640
Cash, cash equivalents, and restricted cash at end of period	$	498,572		$	416,768		$	284,491
Supplemental disclosure:
Cash paid during the period for:
Interest	$	113,507		$	59,838		$	41,565
Income taxes	18,760			99,430			61,281
Non-cash operating, investing, and financing activity:
Transfers to other assets acquired through foreclosure, net	5,744			1,812			13,110
Unfunded commitments originated	167,502			123,012			56,479
Non-cash charitable contribution	6,895			—			—
Non-cash assets acquired in acquisition	—			—			1,284,557
Non-cash liabilities acquired in acquisition	—			—			12,559
Change in unrealized (loss) gain on AFS securities, net of tax	(40,808		)	6,334			(24,254		)
Change in unrealized gain (loss) on junior subordinated debt, net of tax	5,693			(3,604		)	(2,077		)
Net increase (decrease) in unfunded obligations	46,495			(10,495		)	(21,225		)

See accompanying Notes to Consolidated Financial Statements.

79

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of operation

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which holds and manages certain OREO properties and a captive insurance company formed and licensed under the laws of the State of Arizona, CSI. CSI was established as part of the Company's overall enterprise risk management strategy.

Basis of presentation

The accounting and reporting policies of the Company are in accordance with GAAP and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiaries are included in the Consolidated Financial Statements.

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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management's estimates and judgments are ongoing and are based on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities, as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from those estimates and assumptions used in the Consolidated Financial Statements and related notes. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses; certain assets and liabilities carried at fair value; and accounting for income taxes.

Principles of consolidation

As of December 31, 2018, WAL has the following significant wholly-owned subsidiaries: WAB, LVSP, and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.

The Bank has the following significant wholly-owned subsidiaries: WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; WA PWI, which holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; and BW Real Estate, Inc., which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities.

The Company does not have any other significant entities that should be considered for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain amounts reported in prior periods may have been reclassified in the Consolidated Financial Statements to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and customer deposit accounts are reported net.

The Company maintains amounts due from banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.

80

Cash reserve requirements

Depository institutions are required by law to maintain reserves against their transaction deposits. The reserves must be held in cash or with the FRB. Banks are permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total of reserve balances was approximately $145.9 million and $105.5 million as of December 31, 2018 and 2017, respectively.

Investment securities

Investment securities include debt securities and equity securities. Debt securities may be classified as HTM, AFS, or measured at fair value. The appropriate classification is initially decided at the time of purchase. Securities classified as HTM are those debt securities that the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or general economic conditions. These securities are carried at amortized cost. The sale of an HTM security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure.

Securities classified as AFS or trading securities are reported as an asset in the Consolidated Balance Sheet at their estimated fair value. As the fair value of AFS debt securities changes, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gain or loss is reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations.

For periods prior to January 1, 2018, equity securities were classified as AFS and reported at fair value with unrealized gains and losses included as a separate component of AOCI, net of tax. Upon adoption of ASU 2016-01, the fair value changes in equity securities are recognized as part of non-interest income, see "Recently adopted accounting guidance" below for further discussion.

Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security, adjusted for prepayment estimates, using the interest method.

In estimating whether there are any OTTI losses, management considers the 1) length of time and the extent to which the fair value has been less than amortized cost; 2) financial condition and near term prospects of the issuer; 3) impact of changes in market interest rates; and 4) intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and whether it is not more likely than not the Company would be required to sell the security.

Declines in the fair value of individual AFS securities that are deemed to be other-than-temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in fair value of the debt security related to 1) credit loss is recognized in earnings; and 2) interest rate, market, or other factors is recognized in other comprehensive income or loss.

For individual debt securities where the Company either intends to sell the security or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis.

Restricted stock

WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in capital stock of the FHLB based on the borrowing capacity used. The Bank also maintains an investment in its primary correspondent bank. All of these investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted investment securities. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. No impairment has been recorded to date.

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Loans, held for investment

The Company generally holds loans for investment and has the intent and ability to hold loans until their maturity. Therefore, they are reported at book value. Net loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, purchase accounting fair value adjustments, and an allowance for credit losses. In addition, the book values of loans subject to a fair value hedge are adjusted for changes in value attributable to the effective portion of the hedged benchmark interest rate risk.

The Company may also acquire loans through a business combination. These acquired loans are recorded at estimated fair value on the date of purchase, which is comprised of unpaid principal adjusted for estimated credit losses and interest rate fair value adjustments. Loans are evaluated individually at the acquisition date to determine if there has been credit deterioration since origination. Such loans may then be aggregated and accounted for as a pool of loans based on common characteristics. When the Company acquires such loans, the yield that may be accreted (accretable yield) is limited to the excess of the Company’s estimate of undiscounted cash flows expected to be collected over the Company’s initial investment in the loan. The excess of contractual cash flows over the cash flows expected to be collected may not be recognized as an adjustment to yield, loss, or a valuation allowance. Subsequent increases in cash flows expected to be collected generally are recognized prospectively through adjustment of the loan’s yield over the remaining life. Subsequent decreases to cash flows expected to be collected are recognized as impairment. The Company may not carry over or create a valuation allowance in the initial accounting for loans acquired under these circumstances. For purchased loans that are not deemed impaired at the acquisition date, fair value adjustments attributable to both credit and interest rates are accreted (or amortized) over the contractual life of the individual loan. For additional information, see "Note 3. Loans, Leases and Allowance for Credit Losses" of these Notes to Consolidated Financial Statements.

Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If a loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If a loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of premiums, discounts, or net deferred fees are recognized as interest income.

Non-accrual loans: When a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. The Company ceases accruing interest income when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if the loans are well secured by collateral and in the process of collection.

For all loan types, when a loan is placed on non-accrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed, and the Company makes a loan-level decision to apply either the cash basis or cost recovery method. The Company recognizes income on a cash basis only for those non-accrual loans for which the collection of the remaining principal balance is not in doubt. Under the cost recovery method, subsequent payments received from the customer are applied to principal and generally no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required.

Impaired loans: A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310, Receivables, based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are recorded as a provision for credit losses. Losses are recorded as a charge-off when losses are confirmed. In addition to management's internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

Troubled Debt Restructured Loans: A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. A TDR loan is also considered impaired. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual restructured principal and interest is no longer in doubt. However, such loans continue to be considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and

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classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains independent collateral valuation analysis for each loan every twelve months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, ten-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Transfers of financial assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed surrendered when the 1) assets have been isolated from the Company; 2) transferee obtains the right to pledge or exchange the transferred assets; and 3) Company no longer maintains effective control over the transferred assets through an agreement to repurchase the transferred assets before maturity.

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the term of the lease or the estimated life of the improvement, whichever is shorter. Depreciation and amortization is computed using the following estimated lives: 

	Years
Bank premises	31
Furniture, fixtures, and equipment	3 - 10
Leasehold improvements (1)	3 - 10

(1) Depreciation is recorded over the lesser of 3 to 10 years or the term of the lease.

Management periodically reviews premises and equipment in order to determine if facts and circumstances suggest that the value of an asset is not recoverable.

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Goodwill and other intangible assets

The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired in accordance with applicable guidance. The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. The Company can first elect to assess, through qualitative factors, whether it is more likely than not that goodwill is impaired. If the qualitative assessment indicates potential impairment, a quantitative impairment test is necessary. If, based on the quantitative test, a reporting unit's carrying amount exceeds its fair value, a goodwill impairment charge for this difference is recorded to current period earnings as non-interest expense.

The Company’s intangible assets consist primarily of core deposit intangible assets that are amortized over periods ranging from 5 to 10 years. The Company considers the remaining useful lives of its core deposit intangible assets each reporting period, as required by ASC 350, Intangibles—Goodwill and Other, to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company has not revised its estimates of the useful lives of its core deposit intangibles during the years ended December 31, 2018, 2017, or 2016.

Other assets acquired through foreclosure

Other assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. Properties or other assets (primarily repossessed assets formerly leased) are classified as OREO and other repossessed property and are initially reported at fair value of the asset less estimated selling costs. Subsequent adjustments are based on the lower of carrying value or fair value less estimated costs to sell the property. Costs related to the development or improvement of the assets are capitalized and costs related to holding the assets are charged to non-interest expense. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value and valuation allowances.

Low income housing credits

The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The Company accounts for these investments using the proportional amortization method. See LIHTC section in "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion.

The Company evaluates its interests in these entities to determine if it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity. A VIE is broadly defined as an entity where either 1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or 2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIEs when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration.

The Company’s investments in qualified affordable housing projects meet the definition of a VIE as the entities do not have sufficient equity investment at risk to finance their activities without additional subordinated financial support and are structured with nonsubstantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required consolidate these entities.

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Bank owned life insurance

BOLI is carried at its cash surrender value with changes recorded in other non-interest income in the Consolidated Income Statements. The face amount of the underlying policies including death benefits was $358.7 million and $360.0 million as of December 31, 2018 and 2017, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds.

Customer repurchase agreements

The Company enters into repurchase agreements with customers, whereby it pledges securities against overnight investments made from the customer’s excess collected funds. The Company records these at the amount of cash received in connection with the transaction.

Stock compensation plans

The Company has the Incentive Plan, as amended, which is described more fully in "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements. Compensation expense for stock options and non-vested restricted stock awards is based on the fair value of the award on the measurement date which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. Forfeitures are estimated at the time of the award grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of stock options. The fair value of non-vested restricted stock awards is the market price of the Company’s stock on the date of grant.

See "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements for further discussion of stock options and restricted stock awards.

Dividends

WAL is a legal entity separate and distinct from its subsidiaries. As a holding company with limited significant assets other than the capital stock of its subsidiaries, WAL's ability to pay dividends depends primarily upon the receipt of dividends or other capital distributions from its subsidiaries. The Company's subsidiaries ability to pay dividends to WAL is subject to, among other things, their individual earnings, financial condition, and need for funds, as well as federal and state governmental policies and regulations applicable to WAL and each of those subsidiaries, which limit the amount that may be paid as dividends without prior approval. In addition, the terms and conditions of other securities the Company issues may restrict its ability to pay dividends to holders of the Company's common stock. For example, if any required payments on outstanding trust preferred securities are not made, WAL would be prohibited from paying cash dividends on its common stock.

Treasury shares

The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost.

Common Stock Repurchases

On December 11, 2018, the Company adopted its common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. All shares repurchased under the plan are retired upon settlement. The Company has elected to allocate the excess of the repurchase price over the par value of its common stock between additional paid-in capital and retained earnings. The allocation of the excess repurchase price to additional paid-in capital is limited to the amount of additional paid-in capital that was recorded at the time that the shares were initially issued, which is calculated on a last-in, first-out basis. 

Derivative financial instruments

The Company uses interest-rate swaps to mitigate interest-rate risk associated with changes to the fair value of certain fixed-rate financial instruments (fair value hedges).

The Company recognizes derivatives as assets or liabilities in the Consolidated Balance Sheet at their fair value in accordance with ASC 815, Derivatives and Hedging. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

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Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk are recorded in current-period earnings. Changes in the fair value of derivatives not considered to be highly effective in hedging the change in fair value of the hedged item are recognized in earnings as non-interest income during the period of the change.

The Company documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction after the derivative contract is executed. At inception, the Company performs a quantitative assessment to determine whether the derivatives used in hedging transactions are highly effective (as defined in the guidance) in offsetting changes in the fair value of the hedged item. Retroactive effectiveness is assessed, as well as the continued expectation that the hedge will remain effective prospectively. After the initial quantitative assessment is performed, on a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty's risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. The Company discontinues hedge accounting prospectively when it is determined that a hedge is no longer highly effective. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the Consolidated Balance Sheet, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings.

Derivative instruments that are not designated as hedges, so called free-standing derivatives, are reported in the Consolidated Balance Sheet at fair value and the changes in fair value are recognized in earnings as non-interest income during the period of change.

The Company may in the normal course of business purchase a financial instrument or originate a loan that contains an embedded derivative instrument. Upon purchasing the instrument or originating the loan, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current earnings, or the Company is unable to reliably identify and measure an embedded derivative for separation from its host contract, the entire contract is carried in the Consolidated Balance Sheet at fair value and is not designated as a hedging instrument.

Off-balance sheet instruments

In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Financial Statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheet. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. 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. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for credit losses on off-balance sheet instruments is included in other liabilities and the charge to income that establishes this liability is included in non-interest expense.

The Company also has off-balance sheet arrangements related to its derivative instruments. Derivative instruments are recognized in the Consolidated Financial Statements at fair value and their notional values are carried off-balance sheet. See "Note 12. Derivatives and Hedging Activities" of these Notes to Consolidated Financial Statements for further discussion.

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Business combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes all of the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including identified intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Changes to estimated fair values from a business combination are recognized as an adjustment to goodwill during the measurement period and are recognized in the proper reporting period in which the adjustment amounts are determined. Results of operations of an acquired business are included in the Consolidated Income Statement from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred.

Fair values of financial instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a three-level valuation hierarchy for disclosure of fair value measurement, as well as enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The Company uses various valuation approaches, including market, income, and/or cost approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.

• Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.

The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant who may purchase the asset or assume the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date.

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2018 and 2017. The estimated fair value amounts for December 31, 2018 and 2017 have been measured as of period-end, and have not been re-evaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the

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estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end.

The information in "Note 16. Fair Value Accounting" in these Notes to Consolidated Financial Statements should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities.

Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, cash equivalents, and restricted cash

The carrying amounts reported in the Consolidated Balance Sheets for cash and due from banks approximate their fair value.

Money market investments

The carrying amounts reported in the Consolidated Balance Sheets for money market investments approximate their fair value.

Investment securities

The fair values of CRA investments, and exchange-listed preferred stock are based on quoted market prices and are categorized as Level 1 in the fair value hierarchy.

The fair values of debt securities were determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings, and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy.

Restricted stock

WAB is a member of the Federal Reserve System and the FHLB and, accordingly, maintains investments in the capital stock of the FRB and the FHLB. WAB also maintains an investment in its primary correspondent bank. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. The fair values of these investments have been categorized as Level 2 in the fair value hierarchy.

Loans

The fair value of loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality and adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy, excluding impaired loans which are categorized as Level 3.

Accrued interest receivable and payable

The carrying amounts reported in the Consolidated Balance Sheets for accrued interest receivable and payable approximate their fair value.

Derivative financial instruments

All derivatives are recognized in the Consolidated Balance Sheets at their fair value. The fair value for derivatives is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. As a result, the fair values have been categorized as Level 2 in the fair value hierarchy.

Deposits

The fair value disclosed for demand and savings deposits is by definition equal to the amount payable on demand at their reporting date (that is, their carrying amount), which the Company believes a market participant would consider in determining fair value. The carrying amount for variable-rate deposit accounts approximates their fair value. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on these deposits. The fair value measurement of the deposit liabilities is categorized as Level 2 in the fair value hierarchy.

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FHLB advances and customer repurchase agreements

The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances and customer repurchase agreements have been categorized as Level 2 in the fair value hierarchy due to their short durations.

Subordinated debt

The fair value of subordinated debt is based on the market rate for the respective subordinated debt security. Subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Junior subordinated debt

Junior subordinated debt is valued based on a discounted cash flow model which uses as inputs Treasury Bond rates and the 'BB' rated financial index. Junior subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Off-balance sheet instruments

The fair value of the Company’s off-balance sheet instruments (lending commitments and standby letters of credit) is based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, and the counterparties’ credit standing.

Income taxes

The Company is subject to income taxes in the United States and files a consolidated federal income tax return with all of its subsidiaries, with the exception of BW Real Estate, Inc. Deferred income taxes are recorded to reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their income tax bases using enacted tax rates that are expected to be in effect when the taxes are actually paid or recovered. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets are recorded to the extent that these assets will more-likely-than-not be realized. In making these determinations, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. If it is determined that deferred income tax assets to be realized in the future are in excess of their net recorded amount, an adjustment to the valuation allowance will be recorded, which will reduce the Company's provision for income taxes.

A tax benefit from an unrecognized tax benefit may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including related appeals or litigation, based on technical merits. Income tax benefits must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

Interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes in the Consolidated Income Statement. Accrued interest and penalties are included in the related tax liability line with other liabilities in the Consolidated Balance Sheet. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion on income taxes.

Non-interest income

Non-interest income includes service charges and fees, income from equity investments, card income, foreign currency income, income from bank owned life insurance, lending related income, net gain or loss on sales of investment securities, net unrealized gains or losses on assets measured at fair value, and other income. Service charges and fees consist of fees earned from performance of account analysis, general account services, and other deposit account services. These fees are recognized as the related services are provided in accordance with ASC 606, Revenue from Contracts with Customers. Income from equity investments includes gains on equity warrant assets, SBIC equity income, and success fees. Card income includes fees earned from customer use of debit and credit cards, interchange income from merchants, and international charges. Card income is generally within the scope of ASC 310, Receivables; however, certain processing transactions for merchants, such as interchange fees, are within the scope of ASC 606. Beginning on October 1, 2018, interchange fees are being recorded net of customer rewards earned, which is more in line with current industry practice. Foreign currency income represents fees earned on the differential between purchases and sales of foreign currency on behalf of the Company’s clients. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Lending related income includes fees earned from gains or losses on the sale of loans, SBA income, and letter of credit fees. Gains and losses on the sale of loans and SBA income are recognized pursuant to ASC 860, Transfers and Servicing. Net unrealized gains or losses on assets measured at fair value represent fair value changes in equity securities and are accounted for in accordance with ASC 321, Investments - Equity Securities. Fees related to standby letters of

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credit are accounted for in accordance with ASC 440, Commitments. Other income includes operating lease income, which is recognized on a straight-line basis over the lease term in accordance with ASC 840, Leases. Net gain or loss on sales / valuations of repossessed and other assets is presented as a component of non-interest expense, but may also be presented as a component of non-interest income in the event that a net gain is recognized. Net gain or loss on sales of repossessed and other assets are accounted for in accordance with ASC 610, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. See "Note 22. Revenue from Contracts with Customers" of these Notes to Consolidated Financial Statements for further details related to the nature and timing of revenue recognition for non-interest income revenue streams within the scope of the new standard.

Recent accounting pronouncements

In February 2016, the FASB issued guidance within ASU 2016-02, Leases. The amendments in ASU 2016-02 to Topic 842, Leases, require lessees to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position, which will result in a gross up of assets and liabilities on the balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. In July 2018, the FASB issued guidance within ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842) Targeted Improvements. The amendments within ASU 2018-10 clarify how to apply certain aspects and transition adjustments of the new leases standard. The amendments within ASU 2018-11 give entities another option for transition and provide lessors with a practical expedient. The transition option allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, under this transition approach, the modified retrospective transition method still applies; however, a cumulative-effect adjustment to retained earnings is recognized in the period of adoption, rather than the earliest period presented. The amendments in these ASUs are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has substantially completed its implementation of the new lease standard. All key lease data has been gathered and input into the Company's lease software application and validation procedures over the resulting output has been performed. The Company has elected to apply the practical expedients permitting entities to forgo reassessment of 1) expired or existing contracts that may contain leases; 2) lease classification of expired or existing leases; and 3) initial direct costs for any existing leases. Upon adoption of this standard on January 1, 2019, the Company recorded a right-of-use asset and corresponding lease liability of approximately $45 million. The new standard will not have a material impact on the Company's results of operations or cash flow.

In June 2016, the FASB issued guidance within ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard significantly changes the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. The amendments in ASU 2016-13 to Topic 326, Financial Instruments - Credit Losses, require that an organization measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosures, including qualitative and quantitative disclosures that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has formed a Steering Committee and established an implementation team made up of subject matter experts across different functions within the Company, including Finance, Risk, Credit, and IT, that will coordinate and facilitate all phases of planning and implementation of the new guidance. The Company has currently identified eight portfolio segments and plans to implement six to eight models for CECL, with the expectation that its portfolio segmentation and models will continue to evolve as the Company's loan mix and composition change. The models consist of both internally-developed models and vended solutions. Model validations for four of its models are substantially complete and parallel testing of the Company's major portfolio segments is underway. The implementation team is also updating the Company's accounting policies and assessing its control framework to identify risks resulting from new processes, judgments, and data.

In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for

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share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company's share-based payment awards to nonemployees consist only of grants made to the Company's BOD as compensation solely related to the individual's role as a Director. As such, in accordance with ASC 718, the Company accounts for these share-based payment awards to its Directors in the same manner as share-based payment awards for its employees. Accordingly, the amendments in this guidance will not have an effect on the accounting for the Company's share-based payment awards to its Directors.

In July 2018, the FASB issued guidance within ASU 2018-09, Codification Improvements. The amendments in ASU 2018-09 are intended to clarify or correct unintended guidance in the FASB Codification and affect a wide variety of Topics in the Codification. The topics that are applicable to the Company include: 1) debt modifications and extinguishments; 2) stock compensation; and 3) derivatives and hedging. For debt modifications and extinguishments, the amendment clarifies that, in an early extinguishment of debt for which the fair value option has been elected, the net carrying amount of the extinguished debt is equal to its fair value at the reacquisition date, and upon extinguishment, the cumulative amount of the gain or loss on the extinguished debt that resulted from changes in instrument-specific credit risk should be presented in net income. The Company has junior subordinated debt that is recorded at fair value at each reporting period due to election of the FVO. Accordingly, if in the future, the Company chooses to repay this debt prior to its contractual maturity, this amendment would be applicable. For stock compensation, the amendment clarifies that excess tax benefits or tax deficiencies should be recognized in the period in which the amount of the tax deduction is determined, which is typically when an award is exercised (in the case of share options) or vests (in the case of non-vested stock awards). The Company already records excess tax benefits or tax deficiencies in the periods in which the tax deduction is determined. Therefore, this amendment will not have an effect on the Company's accounting for excess tax benefits or tax deficiencies. For derivatives and hedging, previous guidance permits derivatives to be offset only when all four conditions (including the intent to set off) are met. This amendment clarifies that the intent to set off is not required to offset fair value amounts recognized for derivative instruments that are executed with the same counterparty under a master netting agreement. This amendment will not have an effect on the offsetting of the Company's derivative assets and liabilities. The amendments in this ASU that do not require transition guidance are effective immediately and those amendments that have transition guidance are effective for annual periods beginning after December 15, 2018.

In August 2018, the FASB issued guidance within ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments within ASU 2018-13 remove, modify, and supplement the disclosure requirements for fair value measurements. Disclosure requirements that were removed include: the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additional disclosure requirements include: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. With the exception of the above additional disclosure requirements, which will be applied prospectively, all other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In August 2018, the FASB issued guidance within ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments in this Update also require that the capitalized implementation costs of a hosting arrangement that is a service contract be expensed over the term of the hosting arrangement. Presentation requirements include: expense related to the capitalized implementation costs should be presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, payments for capitalized implementation costs in the statement of cash flows should be classified in the same manner as payments made for fees associated with the hosting element, and capitalized implementation

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costs in the statement of financial position should be presented in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

Recently adopted accounting guidance

In May 2014, the FASB issued guidance within ASU 2014-09, Revenue from Contracts with Customers. The amendments in ASU 2014-09 to ASC 606, Revenue from Contracts with Customers, creates a common revenue standard and clarifies the principles for recognizing revenue that can be applied consistently across various transactions, industries, and capital markets. The amendments in the ASU clarify 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. As part of that principle, the entity should identify the contract(s) with the customer, identify the performance obligation(s) of the contract, determine the transaction price, allocate that transaction price to the performance obligation(s) of the contract, and then recognize revenue when or as the entity satisfies the performance obligation(s). The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method. Substantially all of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of this guidance. The contracts that are within the scope of this guidance include service charges and fees on deposit accounts, certain types of card income, and success fees earned from equity investments. The Company completed its review of contracts and other agreements that are within the scope of this guidance and did not identify any material changes to the timing or amount of revenue recognition. Accordingly, the Company did not recognize an adjustment to retained earnings upon adoption of this guidance. The Company’s accounting policies did not change materially since the principles of revenue recognition in the ASU are largely consistent with current practices applied by the Company. The Company has expanded its qualitative disclosures of performance obligations and disaggregation of significant categories of revenue. See "Note 22. Revenue from Contracts with Customers" for further discussion.

In January 2016, the FASB issued guidance within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in ASU 2016-01 to Subtopic 825-10, Financial Instruments, contain the following elements: 1) requires equity investments to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) requires an entity to present separately in OCI the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or accompanying notes to the financial statements; 7) clarifies that the entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity's other deferred tax assets. Effective on January 1, 2015, the Company adopted the amendment noted in item 5) above as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Effective on January 1, 2018, the Company adopted the other amendments in this guidance. The primary impact on the Company's Consolidated Financial Statements results from the amendments discussed in item 1) above as changes in the fair value of the Company's equity investments are now recognized in net income, rather than in AOCI. As of January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.4 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings. During the year ended December 31, 2018, the Company recognized a loss of $3.6 million related to fair value changes in equity securities still held at the reporting date, which was recorded in the Consolidated Income Statement.

In August 2016, the FASB issued guidance within ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in ASU 2016-15 to Topic 230, Statement of Cash Flows, provide guidance on eight specific cash flow classification issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investments; 7) beneficial interest in securitization transactions; and 8) separately identifiable cash flows and the application of the predominance principle. The adoption of this guidance did not have a significant impact on the Company's Consolidated Statement of Cash Flows.

In January 2017, the FASB issued guidance within ASU 2017-01, Clarifying the Definition of a Business. The amendments in ASU 2017-01 to Topic 805, Business Combinations, clarify the definition of a business with the objective of adding guidance to

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assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In January 2017, the FASB issued guidance within ASU 2017-04, Simplifying the Test for Goodwill Impairment. The amendments in ASU 2017-04 to Topic 350, Intangibles - Goodwill and Other, modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Accordingly, the amendments eliminate Step 2 from the goodwill impairment test because goodwill impairment will no longer be determined by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In February 2017, the FASB issued guidance within ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in ASU 2017-05 to Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, clarify the scope of Subtopic 610-20 and add guidance for partial sales of nonfinancial assets, including partial sales of real estate. Under current GAAP, there are several different accounting models to evaluate whether the transfer of certain assets qualify for sale treatment. The new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In May 2017, the FASB issued guidance within ASU 2017-09, Scope of Modification Accounting. The amendments in ASU 2017-09 to Topic 718, Compensation - Stock Compensation, provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following conditions are met: 1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In February 2018, the FASB issued guidance within ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under current GAAP, the effect of a change in tax laws or rates on deferred tax liabilities and assets are included in income from continuing operations even in situations in which the related income tax effects of items in AOCI were originally recognized in comprehensive income. Accordingly, as the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate is required to be included in income from continuing operations, the tax effects of items within AOCI do not reflect the current tax rate. The amendments in ASU 2018-02 to Topic 220, Income Statement - Reporting Comprehensive Income, allow a reclassification from AOCI to retained earnings from tax effects resulting from the TCJA. The Company elected to adopt this guidance effective January 1, 2018 and recorded a cumulative-effect adjustment of $0.7 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings.

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2. INVESTMENT SECURITIES

The carrying amounts and fair values of investment securities at December 31, 2018 and 2017 are summarized as follows: 

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	302,905	$	3,163	$	(7,420	)	$	298,648
Available-for-sale debt securities
CDO	$	50	$	15,277	$	—		$	15,327
Commercial MBS issued by GSEs	106,385		82		(6,361		)	100,106
Corporate debt securities	105,029		—		(5,649		)	99,380
Private label residential MBS	948,161		945		(24,512		)	924,594
Residential MBS issued by GSEs	1,564,181		1,415		(35,472		)	1,530,124
Tax-exempt	542,086		4,335		(7,753		)	538,668
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	40,000		—		(1,812		)	38,188
U.S. treasury securities	1,996		—		(12		)	1,984
Total AFS debt securities	$	3,339,888	$	22,054	$	(84,954	)	$	3,276,988
Equity securities (1)
CRA investments	$	52,210	$	—	$	(1,068	)	$	51,142
Preferred stock	65,954		148		(2,183		)	63,919
Total equity securities	$	118,164	$	148	$	(3,251	)	$	115,061

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	255,050	$	4,514	$	(3,250	)	$	256,314
Available-for-sale debt securities
CDO	$	50	$	21,807	$	—		$	21,857
Commercial MBS issued by GSEs	113,069		46		(4,038		)	109,077
Corporate debt securities	105,044		261		(1,822		)	103,483
Private label residential MBS	874,261		756		(6,493		)	868,524
Residential MBS issued by GSEs	1,719,188		810		(30,703		)	1,689,295
Tax-exempt	501,988		10,893		(1,971		)	510,910
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	64,000		—		(2,538		)	61,462
U.S. treasury securities	2,496		—		(14		)	2,482
Available-for-sale equity securities (1)
CRA investments	51,133		—		(517		)	50,616
Preferred stock	52,172		1,160		(136		)	53,196
Total AFS securities	$	3,515,401	$	35,733	$	(51,615	)	$	3,499,519

(1) The Company's equity securities consist of CRA investments and preferred stock. Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

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The Company conducts an OTTI analysis on a quarterly basis. The initial indication of OTTI is a decline in the market value below the amount recorded for an investment, and taking into account the severity and duration of the decline. Another potential indication of OTTI is a downgrade below investment grade. In determining whether an impairment is OTTI, the Company considers the length of time and the extent to which the market value has been below cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

For debt securities, for the purpose of an OTTI analysis, the Company also considers the cause of the price decline (general level of interest rates, credit spreads, and industry and issuer-specific factors), whether downgrades by bond rating agencies have occurred, the issuer’s financial condition, near-term prospects, and current ability to make future payments in a timely manner, as well as the issuer’s ability to service debt, and any change in agencies’ ratings at the evaluation date from the acquisition date and any likely imminent action.

At December 31, 2018 and 2017, the Company’s unrealized losses relate primarily to market interest rate increases since the securities' original purchase date. The total number of AFS securities in an unrealized loss position at December 31, 2018 is 373, compared to 302 at December 31, 2017. The Company has reviewed securities for which there is an unrealized loss in accordance with its accounting policy for OTTI described above and determined that there are no impairment charges for the years ended December 31, 2018, 2017, and 2016. The Company does not consider any securities to be other-than-temporarily impaired as of December 31, 2018 and 2017. No assurance can be made that OTTI will not occur in future periods.

Information pertaining to securities with gross unrealized losses at December 31, 2018 and 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 

	December 31, 2018
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	3,868	$	91,095	$	3,552	$	69,991	$	7,420	$	161,086
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	—	$	—	$	6,361	$	98,275	$	6,361	$	98,275
Corporate debt securities	16		5,013		5,633		94,367		5,649		99,380
Private label residential MBS	5,173		217,982		19,339		537,316		24,512		755,298
Residential MBS issued by GSEs	1,363		141,493		34,109		1,215,490		35,472		1,356,983
Tax-exempt	3,562		209,767		4,191		72,382		7,753		282,149
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	—		—		1,812		38,188		1,812		38,188
U.S. treasury securities	—		—		12		1,984		12		1,984
Total AFS securities	$	10,114	$	574,255	$	74,840	$	2,086,619	$	84,954	$	2,660,874

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	December 31, 2017
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	3,250	$	107,921	$	—	$	—	$	3,250	$	107,921
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	161	$	13,565	$	3,877	$	93,641	$	4,038	$	107,206
Corporate debt securities	1,398		78,602		424		19,576		1,822		98,178
Private label residential MBS	3,115		480,885		3,378		188,710		6,493		669,595
Residential MBS issued by GSEs	13,875		999,478		16,828		523,270		30,703		1,522,748
Tax-exempt	17		6,159		1,954		69,674		1,971		75,833
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	14		4,986		2,524		56,476		2,538		61,462
U.S. treasury securities	14		2,482		—		—		14		2,482
Available-for-sale equity securities
CRA investments	$	—	$	—	$	517	$	50,616	$	517	$	50,616
Preferred stock	136		7,357		—		—		136		7,357
Total AFS securities	$	18,730	$	1,593,514	$	32,885	$	1,030,580	$	51,615	$	2,624,094

The amortized cost and fair value of securities as of December 31, 2018, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.

	December 31, 2018
	Amortized Cost		Estimated Fair Value
	(in thousands)
Held-to-maturity
Due in one year or less	$	11,300	$	11,317
After one year through five years	—		—
After five years through ten years	14,493		14,845
After ten years	277,112		272,486
Total HTM securities	$	302,905	$	298,648
Available-for-sale
Due in one year or less	$	3,306	$	3,327
After one year through five years	12,063		12,112
After five years through ten years	216,197		210,070
After ten years	489,595		496,655
Mortgage-backed securities	2,618,727		2,554,824
Total AFS securities	$	3,339,888	$	3,276,988

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The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2018 and 2017:

	December 31, 2018
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	302,905	$	302,905
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		—		—		—		—		100,106
Corporate debt securities	—		—		—		66,515		32,865		—		—		99,380
Private label residential MBS	887,520		—		34,342		343		947		1,442		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		—		—		—		—		1,530,124
Tax-exempt	66,160		12,146		306,409		152,330		—		—		1,623		538,668
Trust preferred securities	—		—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—		38,188		—		—		—		—		—		38,188
U.S. treasury securities	—		1,984		—		—		—		—		—		1,984
Total AFS securities (1)	$	953,680	$	1,682,548	$	340,751	$	219,188	$	62,429	$	16,769	$	1,623	$	3,276,988
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	25,767	$	51,142
Preferred stock	—		—		—		—		45,771		3,693		14,455		63,919
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	45,771	$	3,693	$	40,222	$	115,061

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

	December 31, 2017
	AAA			Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—		$	—	$	—	$	—	$	—	$	—	$	255,050	$	255,050
Available-for-sale debt securities
CDO	$	—		$	—	$	—	$	—	$	—	$	21,857	$	—	$	21,857
Commercial MBS issued by GSEs	—			109,077		—		—		—		—		—		109,077
Corporate debt securities	—			—		—		74,293		29,190		—		—		103,483
Private label residential MBS	809,242			—		55,161		1,350		931		1,840		—		868,524
Residential MBS issued by GSEs	—			1,689,295		—		—		—		—		—		1,689,295
Tax-exempt	64,893			25,280		249,200		167,994		—		—		3,543		510,910
Trust preferred securities	—			—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—			61,462		—		—		—		—		—		61,462
U.S. treasury securities	—			2,482		—		—		—		—		—		2,482
Available-for-sale equity securities
CRA investments	—			25,349		—		—		—		—		25,267		50,616
Preferred stock	—			—		—		10,388		23,822		4,104		14,882		53,196
Total AFS securities (1)	$	874,135	—	$	1,912,945	$	304,361	$	254,025	$	82,560	$	27,801	$	43,692	$	3,499,519

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

97

Securities with carrying amounts of approximately $788.4 million and $913.7 million at December 31, 2018 and 2017, respectively, were pledged for various purposes as required or permitted by law.

The following table presents gross gains and losses on sales of investment securities: 

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Available-for-sale securities
Gross gains	$	8,074		$	3,204		$	2,115
Gross losses	(7,738		)	(861		)	(1,056		)
Net gains (losses)	$	336		$	2,343		$	1,059
Equity securities (1)
Gross gains	$	—		$	—		$	—
Gross losses	(7,992		)	—			—
Net (losses) gains	$	(7,992	)	$	—		$	—

(1) The Company's equity securities consist of CRA investments and preferred stock. Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

During the year ended December 31, 2018, the Company sold certain available-for-sale securities with a carrying value of $119.8 million and recognized a loss on sale of these securities of $7.7 million. The sales resulted from management’s review of its investment portfolio, which led to its decision to sell lower yielding securities and reinvest in securities with higher yields and shorter durations. With the exception of these transactions, management does not intend to sell any of its debt securities in an unrealized loss position in the foreseeable future and it is more-likely-than-not that the Company will not be required to sell these securities prior to recovery.

98

3. LOANS, LEASES AND ALLOWANCE FOR CREDIT LOSSES

The composition of the Company’s held for investment loan portfolio is as follows:

	December 31,
	2018			2017
	(in thousands)
Commercial and industrial	$	7,762,642		$	6,841,381
Commercial real estate - non-owner occupied	4,213,428			3,904,011
Commercial real estate - owner occupied	2,325,380			2,241,613
Construction and land development	2,134,753			1,632,204
Residential real estate	1,204,355			425,940
Consumer	70,071			48,786
Loans, net of deferred loan fees and costs	17,710,629			15,093,935
Allowance for credit losses	(152,717		)	(140,050		)
Total loans HFI	$	17,557,912		$	14,953,885

Net deferred loan fees and costs as of December 31, 2018 and 2017 total $36.3 million and $25.3 million, respectively, which is a reduction in the carrying value of loans. Net unamortized purchase discounts on secondary market loan purchases total $2.0 million and $8.5 million as of December 31, 2018 and 2017, respectively. Total loans held for investment are also net of interest rate and credit marks on acquired loans, which are a net reduction in the carrying value of loans. Interest rate marks were $7.1 million and $14.1 million as of December 31, 2018 and 2017, respectively. Credit marks were $14.6 million and $27.0 million as of December 31, 2018 and 2017, respectively.

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,753,111	$	3,187	$	416	$	5,928	$	9,531	$	7,762,642
Commercial real estate
Owner occupied	2,320,321		4,441		—		618		5,059		2,325,380
Non-owner occupied	4,051,837		—		—		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,382,664		—		—		—		—		1,382,664
Land	751,613		—		476		—		476		752,089
Residential real estate	1,182,933		9,316		4,010		8,096		21,422		1,204,355
Consumer	69,830		—		—		241		241		70,071
Total loans	$	17,673,900	$	16,944	$	4,902	$	14,883	$	36,729	$	17,710,629

99

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	6,835,385	$	2,245	$	669	$	3,082	$	5,996	$	6,841,381
Commercial real estate
Owner occupied	2,240,457		1,026		—		130		1,156		2,241,613
Non-owner occupied	3,696,729		2,993		—		2,847		5,840		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,090,176		—		—		—		—		1,090,176
Land	536,917		—		—		5,111		5,111		542,028
Residential real estate	411,857		6,874		1,487		5,722		14,083		425,940
Consumer	48,408		83		213		82		378		48,786
Total loans	$	15,061,371	$	13,221	$	2,369	$	16,974	$	32,564	$	15,093,935

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	December 31, 2018								December 31, 2017
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial and industrial	$	7,639	$	7,451	$	15,090	$	—	$	17,913	$	4,113	$	22,026	$	43
Commercial real estate
Owner occupied	—		—		—		594		1,089		792		1,881		—
Non-owner occupied	—		—		—		—		—		5,840		5,840		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	—		476		476		—		—		—		—		—
Land	—		—		—		—		868		5,111		5,979		—
Residential real estate	552		11,387		11,939		—		2,039		6,078		8,117		—
Consumer	—		241		241		—		—		82		82		—
Total	$	8,191	$	19,555	$	27,746	$	594	$	21,909	$	22,016	$	43,925	$	43

The reduction in interest income associated with loans on non-accrual status was approximately $2.3 million, $2.4 million, and $2.0 million for the years ended December 31, 2018, 2017, and 2016, respectively.

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as Special Mention, Substandard, Doubtful, and Loss. Substandard loans include those characterized by well-defined weaknesses and carry the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful, or risk rated eight, have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The final rating of Loss covers loans considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that warrant management’s close attention, are deemed to be Special Mention. Risk ratings are updated, at a minimum, quarterly.

100

The following tables present gross loans by risk rating: 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,574,506	$	61,202	$	126,356	$	578	$	—	$	7,762,642
Commercial real estate
Owner occupied	2,255,513		12,860		57,007		—		—		2,325,380
Non-owner occupied	4,030,350		12,982		8,505		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,378,624		1,210		2,830		—		—		1,382,664
Land	751,012		—		1,077		—		—		752,089
Residential real estate	1,191,571		527		12,257		—		—		1,204,355
Consumer	69,755		75		241		—		—		70,071
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	17,400,616	$	87,264	$	186,020	$	—	$	—	$	17,673,900
Past due 30 - 59 days	11,255		1,580		4,109		—		—		16,944
Past due 60 - 89 days	719		12		3,767		404		—		4,902
Past due 90 days or more	332		—		14,377		174		—		14,883
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	6,675,574	$	85,781	$	76,328	$	3,698	$	—	$	6,841,381
Commercial real estate
Owner occupied	2,149,465		43,122		48,397		629		—		2,241,613
Non-owner occupied	3,676,711		11,166		14,692		—		—		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,072,342		4,477		13,357		—		—		1,090,176
Land	535,412		637		5,979		—		—		542,028
Residential real estate	408,527		8,971		8,442		—		—		425,940
Consumer	47,824		878		84		—		—		48,786
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

101

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	14,758,149	$	154,295	$	145,934	$	2,993	$	—	$	15,061,371
Past due 30 - 59 days	7,966		518		4,737		—		—		13,221
Past due 60 - 89 days	1,182		219		968		—		—		2,369
Past due 90 days or more	—		—		15,640		1,334		—		16,974
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

The table below reflects the recorded investment in loans classified as impaired: 

	December 31,
	2018			2017
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	986		$	19,315
Impaired loans without a specific valuation allowance under ASC 310 (2)	111,266			79,239
Total impaired loans	$	112,252		$	98,554
Valuation allowance related to impaired loans (3)	$	(681	)	$	(5,606	)

(1) Includes TDR loans of zero and $3.7 million at December 31, 2018 and 2017, respectively.

(2) Includes TDR loans of $44.5 million and $48.8 million at December 31, 2018 and 2017, respectively.

(3) Includes valuation allowance related to TDR loans of zero and $1.2 million at December 31, 2018 and 2017, respectively.

The following table presents impaired loans by class: 

	December 31,
	2018		2017
	(in thousands)
Commercial and industrial	$	63,896	$	34,156
Commercial real estate
Owner occupied	6,530		10,430
Non-owner occupied	12,407		21,251
Multi-family	—		—
Construction and land development
Construction	—		—
Land	9,403		15,426
Residential real estate	19,744		17,170
Consumer	272		121
Total	$	112,252	$	98,554

A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table above as “Impaired loans without a specific valuation allowance under ASC 310.” However, before concluding that an impaired loan needs no associated valuation allowance, an assessment is made to consider all available and relevant information for the method used to evaluate impairment and the type of loan being assessed. The valuation allowance disclosed above is included in the allowance for credit losses reported in the Consolidated Balance Sheets as of December 31, 2018 and 2017.

102

The following table presents the average investment in impaired loans and income recognized on impaired loans: 

		Year Ended December 31,
		2018		2017		2016
	(in thousands)
Average balance on impaired loans		$	104,825	$	104,866	$	109,461
Interest income recognized on impaired loans		4,490		4,046		4,167
Interest recognized on non-accrual loans, cash basis		1,745		1,614		1,254

The following table presents average investment in impaired loans by loan class: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Commercial and industrial	$	52,496	$	33,519	$	26,577
Commercial real estate
Owner occupied	7,682		18,692		18,865
Non-owner occupied	15,375		22,000		30,633
Multi-family	—		—		—
Construction and land development
Construction	—		—		—
Land	9,547		13,558		17,006
Residential real estate	19,425		16,893		16,096
Consumer	300		204		284
Total	$	104,825	$	104,866	$	109,461

The average investment in TDR loans included in the average investment in impaired loans table above for the years ended December 31, 2018, 2017, and 2016 was $51.2 million, $55.5 million, and $68.8 million, respectively.

The following table presents interest income on impaired loans by class: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Commercial and industrial	$	2,113	$	1,077	$	727
Commercial real estate
Owner occupied	491		677		849
Non-owner occupied	937		1,074		1,196
Multi-family	—		—		—
Construction and land development
Construction	—		—		—
Land	566		699		830
Residential real estate	381		516		560
Consumer	2		3		5
Total	$	4,490	$	4,046	$	4,167

The Company is not committed to lend significant additional funds on these impaired loans.

103

The following table summarizes nonperforming assets: 

	December 31,
	2018		2017
	(in thousands)
Non-accrual loans (1)	$	27,746	$	43,925
Loans past due 90 days or more on accrual status (2)	594		43
Accruing troubled debt restructured loans	36,458		42,431
Total nonperforming loans	64,798		86,399
Other assets acquired through foreclosure, net	17,924		28,540
Total nonperforming assets	$	82,722	$	114,939

(1) Includes non-accrual TDR loans of $8.0 million and $10.1 million at December 31, 2018 and 2017, respectively.

(2) Includes less than $0.1 million from loans acquired with deteriorated credit quality at December 31, 2017.

Loans Acquired with Deteriorated Credit Quality

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Balance, at beginning of period	$	9,324		$	15,177		$	15,925
Additions due to acquisition	—			—			4,301
Reclassifications from non-accretable to accretable yield (1)	683			2,086			1,892
Accretion to interest income	(1,018		)	(2,797		)	(3,439		)
Reversal of fair value adjustments upon disposition of loans	(5,222		)	(5,142		)	(3,502		)
Balance, at end of period	$	3,768		$	9,324		$	15,177

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

104

Allowance for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Year Ended December 31,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2018
Beginning Balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
Charge-offs	1			233			1,038			15,034			114			16,420
Recoveries	(1,433		)	(1,237		)	(947		)	(2,427		)	(43		)	(6,087		)
Provision	1,482			2,177			5,867			13,198			276			23,000
Ending balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			2,269			447			8,186			102			11,004
Recoveries	(1,229		)	(2,897		)	(1,778		)	(3,112		)	(84		)	(9,100		)
Provision	(2,805		)	5,347			318			14,268			122			17,250
Ending balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
2016
Beginning Balance	$	18,976		$	23,160		$	5,278		$	71,181		$	473		$	119,068
Charge-offs	18			728			165			12,477			161			13,549
Recoveries	(485		)	(5,690		)	(875		)	(3,991		)	(144		)	(11,185		)
Provision	1,732			(2,449		)	(2,137		)	10,638			216			8,000
Ending balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704

105

The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2018
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	623	$	363	$	—	$	—	$	986
Impaired loans with no allowance recorded	6,530		12,407		63,273		19,381		9,403		272		111,266
Total loans individually evaluated for impairment	6,530		12,407		63,896		19,744		9,403		272		112,252
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	3,979		79,557		—		19		—		—		83,555
Total recorded investment	$	2,325,380	$	4,213,428	$	7,762,642	$	1,204,355	$	2,134,753	$	70,071	$	17,710,629
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	1,482	$	363	$	—	$	—	$	1,845
Impaired loans with no allowance recorded	11,852		18,155		103,992		27,979		25,624		10,632		198,234
Total loans individually evaluated for impairment	11,852		18,155		105,474		28,342		25,624		10,632		200,079
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	5,315		95,680		4,352		72		—		—		105,419
Total unpaid principal balance	$	2,332,038	$	4,235,299	$	7,808,572	$	1,213,006	$	2,150,974	$	80,431	$	17,820,320
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	621	$	60	$	—	$	—	$	681
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		621		60		—		—		681
Loans collectively evaluated for impairment	14,286		20,456		82,488		11,216		22,513		981		151,940
Loans acquired with deteriorated credit quality	—		87		9		—		—		—		96
Total allowance for credit losses	$	14,286	$	20,543	$	83,118	$	11,276	$	22,513	$	981	$	152,717

106

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2017
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	19,315	$	—	$	—	$	—	$	19,315
Impaired loans with no allowance recorded	10,430		21,250		14,842		17,170		15,426		121		79,239
Total loans individually evaluated for impairment	10,430		21,250		34,157		17,170		15,426		121		98,554
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	9,569		105,542		43		601		—		—		115,755
Total recorded investment	$	2,241,613	$	3,904,011	$	6,841,381	$	425,940	$	1,632,204	$	48,786	$	15,093,935
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	20,795	$	—	$	—	$	—	$	20,795
Impaired loans with no allowance recorded	17,459		28,028		42,261		26,057		32,289		10,695		156,789
Total loans individually evaluated for impairment	17,459		28,028		63,056		26,057		32,289		10,695		177,584
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	12,619		128,440		3,146		720		—		—		144,925
Total unpaid principal balance	$	2,251,692	$	3,933,687	$	6,873,383	$	434,946	$	1,649,067	$	59,360	$	15,202,135
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	5,606	$	—	$	—	$	—	$	5,606
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		5,606		—		—		—		5,606
Loans collectively evaluated for impairment	13,884		16,135		76,919		5,500		19,599		776		132,813
Loans acquired with deteriorated credit quality	—		1,629		2		—		—		—		1,631
Total allowance for credit losses	$	13,884	$	17,764	$	82,527	$	5,500	$	19,599	$	776	$	140,050

107

Troubled Debt Restructurings

A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. The majority of the Company's modifications are extensions in terms or deferral of payments which result in no lost principal or interest followed by reductions in interest rates or accrued interest. A TDR loan is also considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

The following table presents information on the financial effects of TDR loans by class for the periods presented:

	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	35,132	$	—	$	—	$	35,132	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	294		—		—		294		—
Consumer	—	—		—		—		—		—
Total	12	$	35,426	$	—	$	—	$	35,426	$	—

	Year Ended December 31, 2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	3,513	$	—	$	—	$	3,513	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	3	2,993		—		—		2,993		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	122		—		—		122		—
Consumer	—	—		—		—		—		—
Total	15	$	6,628	$	—	$	—	$	6,628	$	—

108

	Year Ended December 31, 2016
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	2	$	2,405	$	—	$	—	$	2,405	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	2	$	2,405	$	—	$	—	$	2,405	$	—

The following table presents TDR loans by class for which there was a payment default during the period: 

	Year Ended December 31,
	2018			2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	1	$	87	—	$	—
Commercial real estate
Owner occupied	—	—		1	135		—	—
Non-owner occupied	—	—		1	308		1	5,381
Multi-family	—	—		—	—		—	—
Construction and land development
Construction	—	—		2	1,119		—	—
Land	—	—		—	—		—	—
Residential real estate	—	—		1	48		2	408
Consumer	—	—		—	—		—	—
Total	—	$	—	6	$	1,697	3	$	5,789

A TDR loan is deemed to have a payment default when it becomes past due 90 days, goes on non-accrual, or is restructured again. Payment defaults, along with other qualitative indicators, are considered by management in the determination of the allowance for credit losses.

At December 31, 2018 commitments outstanding on TDR loans totaled $1.5 million. There were no loan commitments outstanding on TDR loans at December 31, 2017.

Loan Purchases and Sales

Total secondary market loan purchases during the years ended December 31, 2018 and 2017, totaled $1.60 billion and $908.1 million, respectively. For 2018, these purchased loans consisted of $883.2 million of residential real estate loans, $690.1 million of commercial and industrial loans, and $27.5 million of construction loans. For 2017, total purchased loans consisted of $696.6 million of commercial and industrial loans and $211.5 million of residential real estate loans.

During the year ended December 31, 2018, the Company sold loans which primarily consisted of commercial and industrial loans with a carrying value of $66.5 million and recognized a gain of $2.6 million on the sales. During the year ended December 31, 2017, the Company sold loans, which consisted primarily of commercial and industrial loans with a carrying value of $170.9 million and recognized a gain of $0.9 million on the sales.

109

4. PREMISES AND EQUIPMENT

 The following is a summary of the major categories of premises and equipment:

	December 31,
	2018			2017
	(in thousands)
Bank premises	$	89,930		$	89,411
Land and improvements	32,954			32,953
Furniture, fixtures, and equipment	42,729			37,098
Leasehold improvements	25,919			23,707
Construction in progress	6,302			1,415
Total	197,834			184,584
Accumulated depreciation and amortization	(78,360		)	(65,865		)
Premises and equipment, net	$	119,474		$	118,719

Lease Obligations

The Company leases certain premises and equipment under non-cancelable operating leases expiring through 2030. The following is a schedule of future minimum rental payments under these leases at December 31, 2018: 

	(in thousands)
2019	$	11,370
2020	10,322
2021	7,418
2022	6,294
2023	6,070
Thereafter	15,417
Total future minimum rental payments	$	56,891

The Company leases certain office locations and many of these leases contain multiple renewal options and provisions for increased rents. Total rent expense of $11.0 million, $10.4 million, and $11.0 million is included in occupancy expense for the years ended December 31, 2018, 2017, and 2016, respectively. Total depreciation expense of $10.6 million, $9.9 million, and $9.2 million is included in occupancy expense for the years ended December 31, 2018, 2017, and 2016, respectively.

110

5. OTHER ASSETS ACQUIRED THROUGH FORECLOSURE

The following table represents the changes in other assets acquired through foreclosure: 

	Year Ended December 31,
	2018
	Gross Balance			Valuation Allowance			Net Balance
	(in thousands)
Balance, beginning of period	$	32,552		$	(4,012	)	$	28,540
Transfers to other assets acquired through foreclosure, net	5,744			—			5,744
Proceeds from sale of other real estate owned and repossessed assets, net	(12,636		)	3,224			(9,412		)
Charitable contribution (1)	(6,895		)	—			(6,895		)
Valuation adjustments, net	—			(1,267		)	(1,267		)
Gains (losses), net (2)	1,214			—			1,214
Balance, end of period	$	19,979		$	(2,055	)	$	17,924
	2017
Balance, beginning of period	$	54,138		$	(6,323	)	$	47,815
Transfers to other assets acquired through foreclosure, net	1,812			—			1,812
Proceeds from sale of other real estate owned and repossessed assets, net	(23,626		)	2,431			(21,195		)
Valuation adjustments, net	—			(120		)	(120		)
Gains (losses), net (2)	228			—			228
Balance, end of period	$	32,552		$	(4,012	)	$	28,540
	2016
Balance, beginning of period	$	52,984		$	(9,042	)	$	43,942
Transfers to other assets acquired through foreclosure, net	13,110			—			13,110
Proceeds from sale of other real estate owned and repossessed assets, net	(11,584		)	2,451			(9,133		)
Valuation adjustments, net	—			268			268
(Losses) gains, net (2)	(372		)	—			(372		)
Balance, end of period	$	54,138		$	(6,323	)	$	47,815

(1) Represents a contribution of OREO property to the Company's charitable foundation. See "Note 19. Related Party Transactions" for further discussion.

(2) Includes net gains related to initial transfers to other assets of $1.0 million, $0.1 million, and $0.4 million during the years ended December 31, 2018, 2017, and 2016, respectively.

At December 31, 2018 and 2017, the majority of the Company’s repossessed assets consisted of properties located in Nevada and California. The Company held 11 properties at December 31, 2018, compared to 19 at December 31, 2017.

111

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill of $289.9 million as of December 31, 2018, which has been allocated to the Nevada, Northern California, Technology & Innovation, and HFF operating segments.

The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. During the years ended December 31, 2018, 2017, and 2016, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary and, based on the Company's annual goodwill and intangibles impairment tests as of October 1 of each of these years, it was determined that goodwill and intangible assets are not impaired.

The following is a summary of the Company's acquired intangible assets:

	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	5,737	$	8,910	$	14,647	$	4,144	$	10,503
	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

As of December 31, 2018, the Company's core deposit intangible assets had a weighted average estimated useful life of 6.5 years. The Company's remaining core deposit intangible assets consist of those acquired in the acquisition of Bridge and are being amortized using an accelerated amortization method over a period of 10 years. Amortization expense recognized on amortizable intangibles totaled $1.6 million, $2.1 million, and $2.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Below is a summary of future estimated aggregate amortization expense:

	December 31, 2018
	(in thousands)
2019	$	1,547
2020	1,494
2021	1,433
2022	1,364
2023	1,289
Thereafter	1,783
Total	$	8,910

112

7. DEPOSITS

The table below summarizes deposits by type: 

	December 31,
	2018		2017
	(in thousands)
Non-interest-bearing demand deposits	$	7,456,141	$	7,433,962
Interest-bearing transaction accounts	2,555,609		1,586,209
Savings and money market accounts	7,330,709		6,330,977
Time certificates of deposit ($250,000 or more)	1,009,900		713,654
Other time deposits	825,088		907,730
Total deposits	$	19,177,447	$	16,972,532

The summary of the contractual maturities for all time deposits as of December 31, 2018 is as follows: 

	December 31,
	(in thousands)
2019	$	1,707,065
2020	101,572
2021	21,336
2022	1,854
2023	3,161
Total	$	1,834,988

WAB is a participant in the Promontory Interfinancial Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. Federal banking law and regulation places restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship-based and are at a greater risk of being withdrawn, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts. At December 31, 2018 and 2017, the Company had $322.9 million and $401.4 million, respectively, of reciprocal CDARS deposits and $706.9 million and $617.9 million, respectively, of ICS deposits. At December 31, 2018 and 2017, the Company had $718.2 million and $67.3 million, respectively, of wholesale brokered deposits. In addition, non-interest-bearing deposits for which the Company provides account holders with earnings credits totaled $2.29 billion and $1.85 billion at December 31, 2018 and 2017, respectively. The Company incurred $18.0 million and $8.7 million in deposit related costs on these deposits during the year ended December 31, 2018 and 2017, respectively.

113

8. OTHER BORROWINGS

The following table summarizes the Company’s borrowings as of December 31, 2018 and 2017: 

	December 31,
	2018		2017
	(in thousands)
Short-Term:
Federal funds purchased	$	256,000	$	—
FHLB advances	235,000		390,000
Total short-term borrowings	$	491,000	$	390,000

The Company maintains unsecured lines of credit with correspondent banks totaling $715.0 million as of December 31, 2018. Federal fund lines of credit, totaling $670.0 million, have a rate comparable to the federal funds effective rate plus 0.10% to 0.20% and the Company's other $45.0 million line of credit has a floating interest rate of one-month LIBOR plus 3.25%. As of December 31, 2018 and 2017, outstanding balances on the Company's lines of credit consisted of federal funds purchased of $256.0 million and zero, respectively.

The Company maintains secured lines of credit with the FHLB and the FRB. The Company’s borrowing capacity is determined based on collateral pledged, generally consisting of investment securities and loans, at the time of the borrowing. At December 31, 2018, the Company had $235.0 million in short-term FHLB overnight advances, with an interest rate of 2.56%. At December 31, 2017, short-term FHLB advances of $390.0 million had an interest rate of 1.41%.

Other short-term borrowing sources available to the Company include customer repurchase agreements, which have an average rate of 0.15%. As of December 31, 2018 and 2017, customer repurchase agreements totaled $22.4 million and $26.0 million, respectively.

As of December 31, 2018 and 2017, the Company had additional available credit with the FHLB of approximately $2.52 billion and $1.91 billion, respectively, and with the FRB of approximately $1.31 billion and $1.11 billion, respectively.

9. QUALIFYING DEBT

Subordinated Debt

The Parent has $175.0 million of subordinated debentures, which were recorded net of issuance costs of $5.5 million, and mature July 1, 2056. Beginning on or after July 1, 2021, the Company may redeem the debentures, in whole or in part, at their principal amount plus any accrued and unpaid interest. The debentures have a fixed interest rate of 6.25% per annum.

WAB has $150.0 million of subordinated debt, which was recorded net of debt issuance costs of $1.8 million, and matures July 15, 2025. The subordinated debt has a fixed interest rate of 5.00% through June 30, 2020 and then converts to a variable rate of 3.20% plus three-month LIBOR through maturity.

To hedge the interest rate risk on the Company's subordinated debt issuances, the Company entered into fair value interest rate hedges with receive fixed/pay variable swaps.

The carrying value of all subordinated debt issuances, which includes the fair value of the related hedges, totals $299.4 million and $308.6 million at December 31, 2018 and 2017, respectively.

114

Junior Subordinated Debt

The Company has formed or acquired through acquisition eight statutory business trusts, which exist for the exclusive purpose of issuing Cumulative Trust Preferred Securities.

The Company's junior subordinated debt has contractual balances and maturity dates as follows: 

		December 31,
Name of Trust	Maturity	2018			2017
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(17,812		)	(10,263		)
Junior subordinated debt, at fair value		$	48,685		$	56,234
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(5,155		)	(5,465		)
Junior subordinated debt, at amortized cost		$	12,372		$	12,062
Total junior subordinated debt		$	61,057		$	68,296

(1) The purchase accounting adjustment is being accreted over the remaining life of the trusts, pursuant to accounting guidance.

With the exception of debt issued by Bridge Capital Trust I and Bridge Capital Trust II, junior subordinated debt is recorded at fair value at each reporting date due to the FVO election made by the Company under ASC 825. The Company did not make the FVO election for the junior subordinated debt acquired as part of the Bridge acquisition. Accordingly, the carrying value of these trusts does not reflect the current fair value of the debt and includes a fair market value adjustment established at acquisition that is being accreted over the remaining life of the trusts.

The weighted average interest rate of all junior subordinated debt as of December 31, 2018 was 5.15%, which is three-month LIBOR plus the contractual spread of 2.34%, compared to a weighted average interest rate of 4.03% at December 31, 2017.

In the event of certain changes or amendments to regulatory requirements or federal tax rules, the debt is redeemable in whole. The obligations under these instruments are fully and unconditionally guaranteed by the Company and rank subordinate and junior in right of payment to all other liabilities of the Company. Based on guidance issued by the FRB, the Company's securities continue to qualify as Tier 1 Capital.

115

10. STOCKHOLDERS' EQUITY

Stock-Based Compensation

Restricted Stock Awards

The Incentive Plan, as amended, gives the BOD the authority to grant up to 10.5 million stock awards consisting of unrestricted stock, stock units, dividend equivalent rights, stock options (incentive and non-qualified), stock appreciation rights, restricted stock, and performance and annual incentive awards. The Incentive Plan limits the maximum number of shares of common stock that may be awarded to any person eligible for an award to 300,000 per calendar year and also limits the total compensation (cash and stock) that can be awarded to a non-employee director to $600,000 in any calendar year. Stock awards available for grant at December 31, 2018 were 3.1 million.

Restricted stock awards granted to employees in 2018 and 2017 generally vest over a 3-year period. Stock grants made to non-employee WAL directors during 2018 became fully vested at June 30, 2018. The Company estimates the compensation cost for stock grants based upon the grant date fair value. Stock compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For restricted stock awards and stock options granted to employees, stock compensation expenses are included in Salaries and employee benefits and for restricted stock awards granted to WAL directors, these expenses are included in Legal, professional, and directors' fees in the Consolidated Income Statement. For the year ended December 31, 2018, the Company recognized $16.6 million in stock-based compensation expense related to these stock grants, compared to $14.3 million in 2017, and $10.7 million in 2016.

In addition, in 2016 and 2017, the Company granted shares of restricted stock to certain members of executive management that had both performance and service conditions that affect vesting. There were no such grants made during the year ended December 31, 2018, however expense is still being recognized for the grants made in 2016 and 2017 as they also have a three-year vesting period. For the year ended December 31, 2018, the Company recognized $2.5 million in stock-based compensation expense related to these performance-based restricted stock grants, compared to $2.3 million in 2017, and $1.1 million in 2016.

A summary of the status of the Company’s unvested shares of restricted stock and changes during the years then ended is presented below: 

	December 31,
	2018				2017
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except per share amounts)
Balance, beginning of period	1,142		$	36.96	1,278		$	26.02
Granted	425		58.02		531		49.06
Vested	(477	)	32.31		(575	)	23.14
Forfeited	(63	)	43.62		(92	)	34.51
Balance, end of period	1,027		$	47.53	1,142		$	36.96

The total weighted average grant date fair value of all stock awards, including the performance-based restricted stock awards, granted during the years ended December 31, 2018, 2017, and 2016 was $24.7 million, $26.1 million, and $15.3 million, respectively. The total fair value of restricted stock that vested during the years ended December 31, 2018, 2017, and 2016 was $27.4 million, $29.1 million, and $18.3 million, respectively.

As of December 31, 2018, there was $22.7 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Incentive Plan. That cost is expected to be recognized over a weighted average period of 1.71 years.

116

Performance Stock Units

The Company grants members of its executive management performance stock units that do not vest unless the Company achieves a specified cumulative EPS target over a three-year performance period. Beginning in 2017, there is also a TSR performance measure. The number of shares issued will vary based on the cumulative EPS target that is achieved and, if applicable, TSR relative to an established peer group. The Company estimates the cost of performance stock units based upon the grant date fair value and expected vesting percentage over the three-year performance period. For the year ended December 31, 2018, the Company recognized $6.4 million in stock-based compensation expense related to these performance stock units, compared to $6.5 million and $5.7 million in stock-based compensation expense for such units in 2017 and 2016, respectively.

The three-year performance period for the 2015 grant ended on December 31, 2017, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, on February 28, 2018, executive management members were granted a total of 202,074 of fully vested common shares.

The three-year performance period for the 2016 grant ended on December 31, 2018, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, 202,775 shares will become fully vested and be paid out to executive management in the first quarter of 2019.

As of December 31, 2018, outstanding performance stock unit grants made in 2017 are expected to pay out at the maximum award amount, or 163,903 common shares, in 2020. As there are two years remaining in the vesting period for the performance stock unit grants made in 2018, the expense being recorded for those grants assumes that the expected payout will be at 100%, or 87,281 common shares, which may increase up to 200% in future periods.

Common Stock Repurchase

On December 12, 2018, the Company announced that it had adopted a common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. During the year ended December 31, 2018, the Company repurchased 900,883 shares of its common stock, representing approximately 1% of the Company's outstanding shares. Shares were repurchased at a weighted average price of $39.58, for a total payment of $35.7 million.

Common Stock Issuance

Under ATM Distribution Agreement

On June 4, 2014, the Company entered into a distribution agency agreement with Credit Suisse Securities (USA) LLC, under which the Company could sell shares of its common stock up to an aggregate offering price of $100.0 million in an offering registered with the SEC. The parties executed an Amended and Restated Distribution Agency Agreement on October 30, 2014. The Company agreed to pay Credit Suisse Securities (USA) LLC a mutually agreed rate, not to exceed 2% of the gross offering proceeds of the shares. The common stock would be sold at prevailing market prices at the time of the sale or at negotiated prices and, as a result, prices will vary.

As the Company completed $100.0 million in aggregate sales under the ATM offering, the Company's ATM offering expired and the Amended and Restated Distribution Agency Agreement was terminated as of June 30, 2016. During the year ended December 31, 2016, the Company sold 1.6 million shares under the ATM offering at a weighted-average selling price of $36.63 per share for gross proceeds of $56.8 million. Total related offering costs were $1.0 million, of which $0.9 million relates to compensation costs paid to Credit Suisse Securities (USA) LLC.

Treasury Shares

During the year ended December 31, 2018, the Company purchased treasury shares of 223,125 at a weighted average price of $57.88 per share, compared to 269,835 shares at a weighted average price per share of $51.16 in 2017.

117

11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated: 

	Unrealized holding gains (losses) on AFS			Unrealized holding gains (losses) on SERP			Unrealized holding gains (losses) on junior subordinated debt			Impairment loss on securities		Total
	(in thousands)
Balance, December 31, 2015	$	9,993		$	90		$	12,033		$	144	$	22,260
Other comprehensive (loss) income before reclassifications	(24,254		)	31			(2,077		)	—		(26,300		)
Amounts reclassified from AOCI	(655		)	—			—			—		(655		)
Net current-period other comprehensive (loss) income	(24,909		)	31			(2,077		)	—		(26,955		)
Balance, December 31, 2016	$	(14,916	)	$	121		$	9,956		$	144	$	(4,695	)
Other comprehensive (loss) income before reclassifications	6,334			264			(3,604		)	—		2,994
Amounts reclassified from accumulated other comprehensive income	(1,444		)	—			—			—		(1,444		)
Net current-period other comprehensive (loss) income	4,890			264			(3,604		)	—		1,550
Balance, December 31, 2017	$	(10,026	)	$	385		$	6,352		$	144	$	(3,145	)
Balance, January 1, 2018 (1)	(12,556		)	469			7,740			144		(4,203		)
Other comprehensive (loss) income before reclassifications	(40,808		)	(77		)	5,693			—		(35,192		)
Amounts reclassified from AOCI	5,773			—			—			—		5,773
Net current-period other comprehensive (loss) income	(35,035		)	(77		)	5,693			—		(29,419		)
Balance, December 31, 2018	$	(47,591	)	$	392		$	13,433		$	144	$	(33,622	)

(1) As adjusted for adoption of ASU 2016-01 and ASU 2018-02, see "Note 1. Summary of Significant Accounting Policies" for further discussion.

The following table presents reclassifications out of accumulated other comprehensive income: 

	Year Ended December 31,
Income Statement Classification	2018			2017			2016
	(in thousands)
(Loss) gain on sales of investment securities, net	$	(7,656	)	$	2,343		$	1,059
Income tax expense (benefit)	1,883			(899		)	(404		)
Net of tax	$	(5,773	)	$	1,444		$	655

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12. DERIVATIVES AND HEDGING ACTIVITIES

The Company is a party to various derivative instruments. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require a small or no initial investment, and allow for the net settlement of positions. A derivative’s notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. A derivative’s underlying variable is a specified interest rate, security price, commodity price, foreign exchange rate, index, or other variable. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the fair value of the derivative contract.

The primary type of derivatives that the Company uses are interest rate swaps. Generally, these instruments are used to help manage the Company's exposure to interest rate risk and meet client financing and hedging needs.

Derivatives are recorded at fair value in the Consolidated Balance Sheets, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow the Company to settle all derivative contracts held with the same counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable.

As of December 31, 2018, 2017, and 2016, the Company does not have any outstanding cash flow hedges.

Derivatives Designated in Hedge Relationships

The Company utilizes derivatives that have been designated as part of a hedge relationship in accordance with the applicable accounting guidance to minimize the exposure to changes in benchmark interest rates and volatility of net interest income and EVE to interest rate fluctuations. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index.

The Company has entered into pay fixed/receive variable interest rate swaps designated as fair value hedges of certain fixed rate loans. As a result, the Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts.

The Company has also entered into receive fixed/pay variable interest rate swaps, designated as fair value hedges on its fixed rate subordinated debt offerings. As a result, the Company is paying a floating rate of three month LIBOR plus 3.16% and is receiving semi-annual fixed payments of 5.00% to match the payments on the $150.0 million subordinated debt. For the fair value hedge on the Parent's $175.0 million subordinated debentures issued on June 16, 2016, the Company is paying a floating rate of three month LIBOR plus 3.25% and is receiving quarterly fixed payments of 6.25% to match the payments on the debt.

Derivatives Not Designated in Hedge Relationships

Management also enters into certain foreign exchange derivative contracts and back-to-back interest rate swaps which are not designated as accounting hedges. Foreign exchange derivative contracts include spot, forward, and forward window contracts. The purpose of these derivative contracts is to mitigate foreign currency risk on transactions entered into, or on behalf of customers. Contracts with customers, along with the related derivative trades the Company places, are both remeasured at fair value, and are referred to as economic hedges since they economically offset the Company's exposure. The Company's back-to back interest rate swaps are used to manage long-term interest rate risk.

As of each of the periods ended December 31, 2018, 2017, and 2016, derivatives not designated as hedging instruments were in a net asset position of $0.3 million, $0.2 million, and $0.1 million, respectively. For the years ended December 31, 2018, 2017, and 2016, net gains from changes in the fair value related to these derivative contracts totaled $4.8 million, $3.5 million, and $1.8 million, respectively, and are included as part of Foreign currency income in the Consolidated Income Statements.

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As of December 31, 2018 and 2017, the following amounts are reflected in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

	December 31, 2018					December 31, 2017
	Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)		Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)
	(in thousands)
Loans - HFI, net of deferred loan fees and costs	$	650,428		$	23,039	$	699,452		$	41,919
Qualifying debt	(299,401		)	19,691		(308,608		)	9,959

(1) Included in the carrying value of the hedged assets/(liabilities)

For the Company's derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans, the gain or loss on the hedged item is included in interest income and for subordinated debt, the gain or loss on the hedged item is included in interest expense.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of the Company's derivative instruments on a gross and net basis as of December 31, 2018, 2017, and 2016. The change in the notional amounts of these derivatives from December 31, 2016 to December 31, 2018 indicates the volume of the Company's derivative transaction activity during these periods. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow the Company to settle all derivative contracts with the same counterparty on a net basis and to offset the net derivative position with the related collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, the Company does not adjust those derivative amounts with counterparties. The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities in the Consolidated Balance Sheets, as indicated in the following table:

	December 31, 2018						December 31, 2017						December 31, 2016
			Fair Value						Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swaps	$	965,705	$	2,162	$	44,892	$	993,432	$	1,703	$	53,581	$	993,485	$	4,220	$	65,749
Total	965,705		2,162		44,892		993,432		1,703		53,581		993,485		4,220		65,749
Netting adjustments (1)	—		2,162		2,162		—		896		896		—		1,869		1,869
Net derivatives in the balance sheet	$	965,705	$	—	$	42,730	$	993,432	$	807	$	52,685	$	993,485	$	2,351	$	63,880
Derivatives not designated as hedging instruments:
Foreign currency contracts (2)	$	49,690	$	454	$	201	$	85,335	$	1,232	$	983	$	18,421	$	251	$	191
Interest rate swaps	2,378		27		27		36,969		776		776		—		—		—
Total	$	52,068	$	481	$	228	$	122,304	$	2,008	$	1,759	$	18,421	$	251	$	191

(1) Netting adjustments represent the amounts recorded to convert the Company's derivative balances from a gross basis to a net basis in accordance with the applicable accounting guidance.

(2) Prior period derivative asset / liability netting adjustments have been made to conform to current presentation.

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Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected positive replacement value of the contracts. Management generally enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types. In general, the Company has a zero credit threshold with regard to derivative exposure with counterparties. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises, such as GNMA, FNMA, and FHLMC. The total collateral netted against net derivative liabilities totaled $44.9 million at December 31, 2018, $53.6 million at December 31, 2017, and $65.7 million at December 31, 2016.

The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated:

	December 31,
	2018		2017		2016
	(in thousands)
Largest gross exposure (derivative asset) to an individual counterparty	$	1,411	$	893	$	2,351
Collateral posted by this counterparty	—		—		1,691
Derivative liability with this counterparty	23,906		40,340		—
Collateral pledged to this counterparty	25,761		60,476		—
Net exposure after netting adjustments and collateral	$	—	$	—	$	660

Credit Risk Contingent Features

Management has entered into certain derivative contracts that require the Company to post collateral to the counterparties when these contracts are in a net liability position. Conversely, the counterparties may be required to post collateral when these contracts are in a net asset position. The amount of collateral to be posted is based on the amount of the net liability and exposure thresholds. As of December 31, 2018, 2017, and 2016 the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting provisions) held by the Company that were in a net liability position totaled $42.7 million, $52.7 million, and $63.9 million, respectively. As of December 31, 2018, the Company was in an over-collateralized net position of $7.6 million after considering $52.5 million of collateral held in the form of cash and securities. As of December 31, 2017 and 2016, the Company was in an over-collateralized position of $25.0 million and $24.3 million, respectively.

13. EARNINGS PER SHARE

Diluted EPS is based on the weighted average outstanding common shares during the period, including common stock equivalents. Basic EPS is based on the weighted average outstanding common shares during the period.

The following table presents the calculation of basic and diluted EPS: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Weighted average shares - basic	104,669		104,179		103,042
Dilutive effect of stock awards	701		818		801
Weighted average shares - diluted	105,370		104,997		103,843
Net income	$	435,788	$	325,492	$	259,798
Earnings per share - basic	4.16		3.12		2.52
Earnings per share - diluted	4.14		3.10		2.50

The Company had no anti-dilutive stock options outstanding as of December 31, 2018 and 2017.

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14. INCOME TAXES

The provision for income taxes charged to operations consists of the following: 

	Year Ended December 31,
	2018			2017		2016
	(in thousands)
Current	$	91,249		$	37,854	$	93,737
Deferred	(16,709		)	88,471		7,644
Total tax provision	$	74,540		$	126,325	$	101,381

The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate are summarized as follows: 

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Income tax at statutory rate	$	107,169		$	158,136		$	126,413
Increase (decrease) resulting from:
State income taxes, net of federal benefits	9,015			9,765			8,046
Tax-exempt income	(18,322		)	(26,403		)	(22,425		)
Change in federal rate applied to deferred items	—			(10,411		)	—
Federal NOL and other carryback items	(15,341		)	—			—
Excise tax	(137		)	9,689			—
Low income housing tax credits	(6,673		)	(7,361		)	(6,153		)
Other, net	(1,171		)	(7,090		)	(4,500		)
Total tax provision	$	74,540		$	126,325		$	101,381

For the years ended December 31, 2018, 2017, and 2016 the Company's effective tax rate was 14.61%, 27.96%, and 28.07%, respectively. The decrease in the effective tax rate from 2017 to 2018 is due primarily to the decrease in the federal statutory rate effective in 2018, a reduction in excise taxes, and management's decision during the third quarter 2018 to carryback its 2017 federal NOLs. The reduction in excise taxes from 2017 to 2018 resulted from not deferring WAB's 2018 dividend from BW Real Estate as was the case in 2017. The Company's 2017 federal NOLs resulted from the acceleration of deductions into and deferral of revenue from 2017. As the federal income tax rate was higher in the years to which the carryback is applicable, a larger tax benefit results from the decision to carryback the 2017 federal NOLs, rather than carryforward these losses to future taxable years. There was not a significant change in the effective tax rate from 2016 compared to 2017.

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The cumulative tax effects of the primary temporary differences are shown in the following table:

	December 31,
	2018			2017
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	42,833		$	37,851
Stock-based compensation	8,718			8,335
Net operating loss carryovers	6,255			34,710
Tax credit carryovers	1,245			24,171
Unrealized loss on AFS securities	16,047			4,117
Other	19,442			15,621
Total gross deferred tax assets	94,540			124,805
Deferred tax asset valuation allowance	(2,373		)	—
Total deferred tax assets	92,167			124,805
Deferred tax liabilities:
REIT dividend deferral	—			(68,799		)
Unrealized gain on debt instruments measured at fair value	(5,833		)	(4,057		)
Deferred loan costs	(9,528		)	(6,594		)
Insurance premiums	(38,119		)	(35,789		)
Other	(6,697		)	(3,786		)
Total deferred tax liabilities	(60,177		)	(119,025		)
Deferred tax assets, net	$	31,990		$	5,780

Deferred tax assets and liabilities are included in the Consolidated Financial Statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be reversed. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets increased $26.2 million to $32.0 million from December 31, 2017. This overall increase in net deferred tax assets was primarily the result of the deferral of WAB's dividend from BW Real Estate from 2017 to 2018, which resulted in a $68.8 million deferred tax liability as of December 31, 2017 that was fully utilized during the year ended December 31, 2018. Decreases in the fair market value of AFS securities, which were not fully offset by the utilization of NOL and credit carryovers, also contributed to the increase in net deferred tax assets.

Although realization is not assured, the Company believes that the realization of the recognized deferred tax asset of $32.0 million at December 31, 2018 is more-likely-than-not based on expectations as to future taxable income and based on available tax planning strategies, that could be implemented if necessary to prevent a carryover from expiring.

As of December 31, 2018, the Company's deferred tax valuation allowance of $2.4 million related to net capital loss carryovers. As of December 31, 2017, the Company had no deferred tax valuation allowance.

As of December 31, 2018, the Company’s gross federal NOL carryovers, all of which are subject to limitations under Section 382 of the IRC, totaled $48.2 million, for which an ending deferred tax asset of $6.0 million has been recorded, reflecting the expected benefit of these federal NOL carryovers remaining after application of the Section 382 limitation. The Company also has varying gross amounts of state NOL carryovers, primarily in Arizona. The ending gross Arizona NOL carryovers totaled approximately $5.5 million. A deferred tax asset of $0.3 million has been recorded to reflect the expected benefit of all state NOL carryovers remaining. If not utilized, a portion of the federal and state NOL carryovers will begin to expire in 2023. As of December 31, 2018, the Company had no federal tax credit carryovers and $1.2 million of state tax credit carryovers. If not utilized, a portion of the state tax credit carryovers will begin to expire in 2023. In management’s opinion, it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize all of the deferred tax benefits related to these NOL and tax credit carryovers.

The Company files income tax returns in the U.S. federal jurisdiction and in various states. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2014.

When tax returns are filed, it is highly certain that most positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the Consolidated Financial Statements in the period in which,

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based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying Consolidated Balance Sheet along with any associated interest and penalties payable to the taxing authorities upon examination.

The total gross activity of unrecognized tax benefits related to the Company's uncertain tax positions are shown in the following table:

	December 31,
	2018			2017
	(in thousands)
Beginning balance	$	1,038		$	1,038
Gross increases
Tax positions in prior periods	—			—
Current period tax positions	—			—
Gross decreases
Tax positions in prior periods	(247		)	—
Settlements	(307		)	—
Lapse of statute of limitations	—			—
Ending balance	$	484		$	1,038

During the year ended December 31, 2018, the Company settled a position for less than the amount of unrecognized tax benefits accrued, which resulted in a tax benefit of $0.1 million, inclusive of interest and penalties.

As of December 31, 2018 and 2017, the total amount of unrecognized tax benefits, net of associated deferred tax benefits, that would impact the effective tax rate, if recognized, is $0.3 million and $0.7 million, respectively. The Company anticipates that $0.1 million of the unrecognized tax benefits will be resolved within the next twelve months.

During the years ended December 31, 2018, 2017, and 2016, the Company recognized no additional amounts for interest and penalties.

As of each of the years ended December 31, 2018 and 2017, the Company has accrued total liabilities of $0.1 million for penalties. As of December 31, 2018 and 2017, a liability of zero and $0.1 million, respectively, was accrued for interest.

LIHTC

As discussed in "Note 1. Summary of Significant Accounting Policies," the Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The limited liability entities are considered to be VIEs, however, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities.

At December 31, 2018, the Company’s exposure to loss as a result of its involvement in these entities was limited to $342.4 million, which reflects the Company’s recorded investment in LIHTC. The total assets held by unconsolidated VIEs at December 31, 2018 is approximately $2.77 billion. During the years ended December 31, 2018, 2017, and 2016, the Company did not provide financial or other support to these entities that was not contractually required.

Investments in LIHTC total $342.4 million and $267.0 million as of December 31, 2018 and 2017, respectively. Unfunded LIHTC obligations are included as part of other liabilities in the Consolidated Balance Sheets and total $171.7 million and $151.3 million as of December 31, 2018 and 2017, respectively. For the years ended December 31, 2018, 2017, and 2016, $35.9 million, $25.4 million, and $17.3 million of amortization related to LIHTC investments was recognized as a component of income tax expense, respectively.

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15. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments and Letters of Credit

The Company is 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. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheets.

Lines of credit are obligations to lend money to a borrower. Credit risk arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made. In the case of standby letters of credit, the risk arises from the potential failure of the customer to perform according to the terms of a contract. In such a situation, the third party might draw on the standby letter of credit to pay for completion of the contract and the Company would look to its customer to repay these funds with interest. To minimize the risk, the Company uses the same credit policies in making commitments and conditional obligations as it would for a loan to that customer.

Standby letters of credit and financial guarantees are commitments issued by the Company to guarantee the performance of a customer to a third party in borrowing arrangements. The Company generally has recourse to recover from the customer any amounts paid under the guarantees. Typically, letters of credit issued have expiration dates within one year.

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: 

	December 31,
	2018		2017
	(in thousands)
Commitments to extend credit, including unsecured loan commitments of $770,114 at December 31, 2018 and $364,638 at December 31, 2017	$	7,556,741	$	5,851,158
Credit card commitments and financial guarantees	237,312		153,752
Standby letters of credit, including unsecured letters of credit of $21,879 at December 31, 2018 and $11,664 at December 31, 2017	390,161		161,966
Total	$	8,184,214	$	6,166,876

The following table represents the contractual commitments for lines and letters of credit by maturity at December 31, 2018: 

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	7,556,741	$	2,650,999	$	2,959,595	$	851,520	$	1,094,627
Credit card commitments and financial guarantees	237,312		237,312		—		—		—
Standby letters of credit	390,161		276,633		98,774		14,754		—
Total	$	8,184,214	$	3,164,944	$	3,058,369	$	866,274	$	1,094,627

Commitments to extend credit are agreements to lend to a customer provided that 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. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

The Company has exposure to credit losses from unfunded commitments and letters of credit. As funds have not been disbursed on these commitments, they are not reported as loans outstanding. Credit losses related to these commitments are included in other liabilities as a separate loss contingency and are not included in the allowance for credit losses reported in "Note 3. Loans, Leases and Allowance for Credit Losses" of these Consolidated Financial Statements. This loss contingency for unfunded loan commitments and letters of credit was $8.2 millionand $6.2 million as of December 31, 2018 and 2017, respectively. Changes to this liability are adjusted through other expense in the Consolidated Income Statement.

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Concentrations of Lending Activities

The Company’s lending activities are driven in large part by the customers served in the market areas where the Company has branch offices in the states of Arizona, Nevada, and California. Despite the geographic concentration of lending activities, the Company does not have a single external customer from which it derives 10% or more of its revenues. The Company monitors concentrations within four broad categories: geography, industry, product, and collateral. The Company's loan portfolio includes significant credit exposure to the CRE market. As of December 31, 2018 and 2017, CRE related loans accounted for approximately 49% and 52% of total loans, respectively. Substantially all of these loans are secured by first liens with an initial loan to value ratio of generally not more than 75%. Approximately 36% of these CRE loans, excluding construction and land loans, were owner occupied at each of the periods ended December 31, 2018 and 2017.

Contingencies

The Company is involved in various lawsuits of a routine nature that are being handled and defended in the ordinary course of the Company’s business. Expenses are being incurred in connection with these lawsuits, but in the opinion of management, based in part on consultation with outside legal counsel, the resolution of these lawsuits and associated defense costs will not have a material impact on the Company’s financial position, results of operations, or cash flows.

Lease Commitments

The Company leases the majority of its office locations and many of these leases contain multiple renewal options and provisions for increased rents. For the years ended December 31, 2018, 2017, and 2016, total rent expense was $11.0 million, $10.4 million and $11.0 million, respectively.

16. FAIR VALUE ACCOUNTING

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 825 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 825 are described in "Note 1. Summary of Significant Accounting Policies" of these Notes to Consolidated Financial Statements.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally-developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels in the fair value hierarchy are recognized as of the end of the month following the event or change in circumstances that caused the transfer.

Under ASC 825, the Company elected the FVO treatment for junior subordinated debt issued by WAL. This election is irrevocable and results in the recognition of unrealized gains and losses on these items at each reporting date. These unrealized gains and losses are recognized as part of other comprehensive income rather than earnings. The Company did not elect FVO treatment for the junior subordinated debt assumed in the Bridge Capital Holdings acquisition.

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For the years ended December 31, 2018, 2017, and 2016, gains and losses from fair value changes on junior subordinated debt pursuant to the election of the fair value option were as follows:

	Year Ended December 31,
	2018		2017			2016
	(in thousands)
Unrealized gain/(loss)	$	7,550	$	(5,824	)	$	(3,482	)
Changes included in OCI, net of tax	5,693		(3,604		)	(2,077		)

Fair value on a recurring basis

Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

AFS securities: Securities classified as AFS are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things.

Equity securities: Preferred stock and CRA investments are reported at fair value utilizing Level 1 inputs.

Independent pricing service: The Company's independent pricing service provides pricing information on the majority of the Company's Level 1 and 2 securities. Management independently evaluates the fair value measurements received from the Company's third party pricing service through multiple review steps. First, management reviews what has transpired in the marketplace with respect to interest rates, credit spreads, volatility, and mortgage rates, among other things, and develops an expectation of changes to the securities' valuations from the previous quarter. Then, management obtains market values from additional sources. The pricing service provides management with observable market data including interest rate curves and mortgage prepayment speed grids, as well as dealer quote sheets, new bond offering sheets, and historical trade documentation. Management reviews the assumptions and decides whether they are reasonable. Management may compare interest rates, credit spreads, and prepayments speeds used as part of the assumptions to those that management believes are reasonable.

Management may price securities using the provided assumptions to determine whether they can develop similar prices on like securities. Any discrepancies between management’s review and the prices provided by the vendor are discussed with the vendor and the Company’s other valuation advisors. Lastly, management selects a sample of investment securities and compares the values provided by its primary third party pricing service to the market values obtained from secondary sources and evaluates those with notable variances.

Annually, the Company receives an SSAE 16 report from its independent pricing service attesting to the controls placed on the operations of the service from its auditor.

Interest rate swaps: Interest rate swaps are reported at fair value utilizing Level 2 inputs. The Company obtains dealer quotations to value its interest rate swaps.

Junior subordinated debt: The Company estimates the fair value of its junior subordinated debt using a discounted cash flow model which incorporates the effect of the Company’s own credit risk in the fair value of the liabilities (Level 3). The Company’s cash flow assumptions are based on contractual cash flows as the Company anticipates that it will pay the debt according to its contractual terms.

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The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs as of the periods presented: 

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2018
Assets:
Available-for-sale debt securities
CDO	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		100,106
Corporate debt securities	—		99,380		—		99,380
Private label residential MBS	—		924,594		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		1,530,124
Tax-exempt	—		538,668		—		538,668
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		38,188		—		38,188
U.S. treasury securities	—		1,984		—		1,984
Total AFS debt securities	$	—	$	3,276,988	$	—	$	3,276,988
Equity securities (1)
CRA investments	$	51,142	$	—	$	—	$	51,142
Preferred stock	63,919		—		—		63,919
Total equity securities	$	115,061	$	—	$	—	$	115,061
Derivative assets (2)	$	—	$	2,643	$	—	$	2,643
Liabilities:
Junior subordinated debt (3)	$	—	$	—	$	48,684	$	48,684
Derivative liabilities (2)	—		45,120		—		45,120

(1) Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

(2) Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $23,039 and the net carrying value of subordinated debt is decreased by $19,691 as of December 31, 2018 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.

(3) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

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	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2017
Assets:
Available-for-sale debt securities
CDO	$	—	$	21,857	$	—	$	21,857
Commercial MBS issued by GSEs	—		109,077		—		109,077
Corporate debt securities	—		103,483		—		103,483
Private label residential MBS	—		868,524		—		868,524
Residential MBS issued by GSEs	—		1,689,295		—		1,689,295
Tax-exempt	—		510,910		—		510,910
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		61,462		—		61,462
U.S. treasury securities	—		2,482		—		2,482
Available-for-sale equity securities (1)
CRA investments	50,616		—		—		50,616
Preferred stock	53,196		—		—		53,196
Total AFS securities	$	103,812	$	3,395,707	$	—	$	3,499,519
Derivative assets (2)	$	—	$	45,228	$	—	$	45,228
Liabilities:
Junior subordinated debt (3)	$	—	$	—	$	56,234	$	56,234
Derivative liabilities (2)	—		96,943		—		96,943

(1) Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

(2) Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $41,919 and the net carrying value of subordinated debt is decreased by $9,959 as of December 31, 2017, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.

(3) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

For the years ended December 31, 2018, 2017, and 2016, the change in Level 3 liabilities measured at fair value on a recurring basis was as follows: 

	Junior Subordinated Debt
	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Beginning balance	$	(56,234	)	$	(50,410	)	$	(46,928	)
Change in fair value (1)	7,550			(5,824		)	(3,482		)
Ending balance	$	(48,684	)	$	(56,234	)	$	(50,410	)

(1) Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled $5.7 million, $(3.6) million, and $(2.1) million for the years ended December 31, 2018, 2017, and 2016, respectively.

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For Level 3 liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows: 

	December 31, 2018		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	48,684	Discounted cash flow	Implied credit rating of the Company	7.82	%

	December 31, 2017		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	56,234	Discounted cash flow	Implied credit rating of the Company	5.61	%

The significant unobservable inputs used in the fair value measurement of the Company’s junior subordinated debt as of December 31, 2018 and 2017 was the implied credit risk for the Company, calculated as the difference between the 20-year 'BB' rated financial index over the corresponding swap index.

As of December 31, 2018, the Company estimates the discount rate at 7.82%, which represents an implied credit spread of 5.01% plus three-month LIBOR (2.81%). As of December 31, 2017, the Company estimated the discount rate at 5.61%, which was a 3.92% credit spread plus three-month LIBOR (1.69%).

Fair value on a nonrecurring basis

Certain assets are measured at fair value on a nonrecurring basis. That is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents such assets carried on the balance sheet by caption and by level within the ASC 825 hierarchy:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of December 31, 2018
Impaired loans with specific valuation allowance	$	305	$	—	$	—	$	305
Impaired loans without specific valuation allowance (1)	91,821		—		—		91,821
Other assets acquired through foreclosure	17,924		—		—		17,924
As of December 31, 2017
Impaired loans with specific valuation allowance	$	13,709	$	—	$	—	$	13,709
Impaired loans without specific valuation allowance (1)	63,607		—		—		63,607
Other assets acquired through foreclosure	28,540		—		—		28,540

(1) Net of loan balances with charge-offs of $19.4 million and $15.6 million as of December 31, 2018 and 2017, respectively.

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows:

	December 31, 2018		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	92,126	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	17,924		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

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	December 31, 2017		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	77,316	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	28,540		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

Impaired loans: The specific reserves for collateral dependent impaired loans are based on collateral value, net of estimated disposition costs and other identified quantitative inputs. Collateral value is determined based on independent third-party appraisals or internally-developed discounted cash flow analyses. Appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. In addition, when adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. Internal discounted cash flow analyses are also utilized to estimate the fair value of impaired loans, which considers internally-developed, unobservable inputs such as discount rates, default rates, and loss severity.

Total Level 3 impaired loans had an estimated fair value of $92.1 million and $77.3 million at December 31, 2018 and 2017, respectively. Impaired loans with a specific valuation allowance had a gross estimated fair value of $1.0 million and $19.3 million at December 31, 2018 and 2017, respectively, which was reduced by a specific valuation allowance of $0.7 million and $5.6 million, respectively.

Other assets acquired through foreclosure: Other assets acquired through foreclosure consist of properties acquired as a result of, or in-lieu-of, foreclosure. These assets are initially reported at the fair value determined by independent appraisals using appraised value less estimated cost to sell. Such properties are generally re-appraised every twelve months. There is risk for subsequent volatility. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense.

Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. When significant adjustments are based on unobservable inputs, such as when a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the resulting fair value measurement has been categorized as a Level 3 measurement. The Company had $17.9 million and $28.5 million of such assets at December 31, 2018 and 2017, respectively.

Credit vs. non-credit losses

Under the provisions of ASC 320, Investments-Debt and Equity Securities, OTTI for available-for-sale securities is separated into the amount of total impairment related to the credit loss and the amount of the total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in OCI.

For the years ended December 31, 2018, 2017, and 2016, the Company determined that there were no securities that experienced credit losses.

There is no OTTI balance recognized in comprehensive income as of December 31, 2018 and 2017.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of the Company’s financial instruments is as follows: 

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	302,905	$	—	$	298,648	$	—	$	298,648
AFS	3,276,988		—		3,276,988		—		3,276,988
Equity securities	115,061		115,061		—		—		115,061
Derivative assets	2,643		—		2,643		—		2,643
Loans, net	17,557,912		—		16,857,852		92,126		16,949,978
Accrued interest receivable	101,275		—		101,275		—		101,275
Financial liabilities:
Deposits	$	19,177,447	$	—	$	19,188,216	$	—	$	19,188,216
Customer repurchase agreements	22,411		—		22,411		—		22,411
Other borrowings	491,000		—		491,000		—		491,000
Qualifying debt	360,458		—		323,572		57,924		381,496
Derivative liabilities	45,120		—		45,120		—		45,120
Accrued interest payable	20,463		—		20,463		—		20,463

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	255,050	$	—	$	256,314	$	—	$	256,314
AFS	3,499,519		103,812		3,395,707		—		3,499,519
Derivative assets	3,711		—		3,711		—		3,711
Loans, net	14,953,885		—		14,577,010		77,316		14,654,326
Accrued interest receivable	85,517		—		85,517		—		85,517
Financial liabilities:
Deposits	$	16,972,532	$	—	$	16,980,066	$	—	$	16,980,066
Customer repurchase agreements	26,017		—		26,017		—		26,017
FHLB advances	390,000		—		390,000		—		390,000
Qualifying debt	376,905		—		336,803		67,210		404,013
Derivative liabilities	55,340		—		55,340		—		55,340
Accrued interest payable	16,366		—		16,366		—		16,366

Interest rate risk

The Company assumes interest rate risk (the risk to the Company’s earnings and capital from changes in interest rate levels) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments, as well as its future net interest income will change when interest rate levels change and that change may be either favorable or unfavorable to the Company.

Interest rate risk exposure is measured using interest rate sensitivity analysis to determine the Company's change in EVE and net interest income resulting from hypothetical changes in interest rates. If potential changes to EVE and net interest income resulting from hypothetical interest rate changes are not within the limits established by the BOD, the BOD may direct management to adjust the asset and liability mix to bring interest rate risk within BOD-approved limits.

WAB has an ALCO charged with managing interest rate risk within the BOD-approved limits. Limits are structured to preclude an interest rate risk profile that does not conform to both management and BOD risk tolerances without ALCO approval. There

132

is also ALCO reporting at the Parent level for reviewing interest rate risk for the Company, which gets reported to the BOD and its Finance and Investment Committee.

Fair value of commitments

The estimated fair value of standby letters of credit outstanding at December 31, 2018 and 2017 is insignificant. Loan commitments on which the committed interest rates are less than the current market rate are also insignificant at December 31, 2018 and 2017.

17. REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and 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 their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Under the Basel III final rules, a capital conservation buffer, comprised of Common Equity Tier 1 capital, was established above the regulatory minimum capital requirements. This capital conservation buffer began being phased in on January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent year by an additional 0.625%. The capital conservation buffer reached its final level of 2.5% on January 1, 2019 and is now fully phased-in.

As of December 31, 2018 and 2017, the Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized, as defined by the federal banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2017
WAL	$	2,460,988	$	2,013,744	$	18,569,608	$	19,624,517	13.3	%	10.8	%	10.3	%	10.4	%
WAB	2,299,919		2,003,745		18,664,200		19,541,990		12.3		10.7		10.3		10.7
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

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18. EMPLOYEE BENEFIT PLANS

The Company has a qualified 401(k) employee benefit plan for all eligible employees. Participants are able to defer between 1% and 75% (up to a maximum of $18,500 for those under 50 years of age and up to a maximum of $24,500 for those over 50 years of age in 2018) of their annual compensation. The Company may elect to match a discretionary amount each year, which is 75% of the first 6% of the participant’s compensation deferred into the plan. The Company’s contributions to this plan total $5.6 million, $3.1 million, and $2.7 million for the years ended December 31, 2018, 2017, and 2016, respectively.

In addition, the Company maintains a non-qualified 401(k) restoration plan for the benefit of executives of the Company and certain affiliates. Participants are able to defer a portion of their annual salary and receive a matching contribution based primarily on the contribution structure in effect under the Company’s 401(k) plan, but without regard to certain statutory limitations applicable under the 401(k) plan. The Company’s total contribution to the restoration plan was $144,000, $131,000, and $117,000 for the years ended December 31, 2018, 2017, and 2016, respectively.

In connection with the Bridge acquisition, the Company assumed Bridge's SERP, an unfunded noncontributory defined benefit pension plan. The SERP provides retirement benefits to certain Bridge officers based on years of service and final average salary. The Company uses a December 31st measurement date for this plan.

The following table reflects the accumulated benefit obligation and funded status of the SERP:

	December 31,
	2018			2017
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of period	$	8,891		$	8,394
Service cost	614			580
Interest cost	512			454
Actuarial losses/(gains)	41			(470		)
Expected benefits paid	(67		)	(67		)
Projected benefit obligation at end of year	$	9,991		$	8,891
Unfunded projected/accumulated benefit obligation	(9,991		)	(8,891		)
Additional liability	$	—		$	—
Weighted average assumptions to determine benefit obligation
Discount rate	5.75		%	5.75		%
Rate of compensation increase	3.00		%	3.00		%

The components of net periodic benefit cost recognized for the year ended December 31, 2018 and 2017 and the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2019 are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Components of net periodic benefit cost
Service cost	$	607		$	614		$	580
Interest cost	571			512			454
Amortization of prior service cost	64			103			103
Amortization of actuarial (gains)/losses	(159		)	(164		)	(114		)
Net periodic benefit cost	$	1,083		$	1,065		$	1,023
Other comprehensive income (cost)	$	(95	)	$	(61	)	$	(11	)

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19. RELATED PARTY TRANSACTIONS

Principal stockholders, directors, and executive officers of the Company, their immediate family members, and companies they control or own more than a 10% interest in, are considered to be related parties. In the ordinary course of business, the Company engages in various related party transactions, including extending credit and bank service transactions. All related party transactions are subject to review and approval pursuant to the Company's Related Party Transactions policy.

Federal banking regulations require that any extensions of credit to insiders and their related interests not be offered on terms more favorable than would be offered to non-related borrowers of similar creditworthiness. The following table summarizes the aggregate activity in such loans for the periods indicated:

	Year Ended December 31,
	2018			2017
	(in thousands)
Balance, beginning	$	5,918		$	16,874
New loans	—			—
Advances	—			1,532
Repayments and other	(1,338		)	(12,488		)
Balance, ending	$	4,580		$	5,918

None of these loans are past due, on non-accrual status or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2018 or 2017. The interest income associated with these loans was approximately $0.3 million, $0.5 million and $0.6 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Loan commitments outstanding with related parties totaled approximately $30.7 million and $31.2 million at December 31, 2018 and 2017, respectively.

The Company also accepts deposits from related parties which totaled $87.9 million and $100.5 million at December 31, 2018 and 2017, respectively, with related interest expense totaling approximately $0.2 million during each of the years ended December 31, 2018, 2017, and 2016.

Donations, sponsorships, and other payments to related parties, totaled $8.1 million during the year ended December 31, 2018 and less than $1.0 million during each of the years ended December 31, 2017 and 2016. Total related party payments of $8.1 million for the year ended December 31, 2018 includes a donation to the Company's charitable foundation of $7.6 million, which consists of a non-cash donation of OREO property of $6.9 million and a cash donation of $0.7 million.

During the year ended December 31, 2018, the Company sold an OREO property to a related party with a carrying value of $0.9 million and recognized a loss of $0.2 million on the sale.

On April 1, 2017, the Company hired an executive officer who was previously the Managing Partner of an external consulting firm that the Company actively uses for risk management services. Prior to joining the Company, the executive officer sold his interest in this external consulting firm and was paid with a combination of cash and a $1.0 million note, which as of December 31, 2018, was paid in full. Expenses to this external consulting firm totaled $0.8 million, $1.9 million, and $1.6 million during the years ended December 31, 2018, 2017, and 2016, respectively.

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20. PARENT COMPANY FINANCIAL INFORMATION

The condensed financial statements of the holding company are presented in the following tables:

WESTERN ALLIANCE BANCORPORATION

Condensed Balance Sheets

	December 31,
	2018		2017
	(in thousands)
ASSETS:
Cash and cash equivalents	$	115,721	$	56,554
Money market investments	7		—
Investment securities - AFS	66,278		34,698
Investment in bank subsidiaries	2,568,027		2,291,166
Investment in non-bank subsidiaries	80,019		77,457
Other assets	27,200		24,378
Total assets	$	2,857,252	$	2,484,253
LIABILITIES AND STOCKHOLDERS' EQUITY:
Qualifying debt	$	211,376	$	226,993
Accrued interest and other liabilities	32,142		27,562
Total liabilities	243,518		254,555
Total stockholders’ equity	2,613,734		2,229,698
Total liabilities and stockholders’ equity	$	2,857,252	$	2,484,253

WESTERN ALLIANCE BANCORPORATION

Condensed Income Statements

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Income:
Dividends from subsidiaries	$	152,116	$	97,264	$	12,795
Interest income	2,905		2,547		3,327
Non-interest income	761		2,470		2,445
Total income	155,782		102,281		18,567
Expense:
Interest expense	13,949		11,459		6,975
Non-interest expense	19,025		16,293		9,221
Total expense	32,974		27,752		16,196
Income before income taxes and equity in undistributed earnings of subsidiaries	122,808		74,529		2,371
Income tax benefit	10,436		5,229		4,399
Income before equity in undistributed earnings of subsidiaries	133,244		79,758		6,770
Equity in undistributed earnings of subsidiaries	302,544		245,734		253,028
Net income	$	435,788	$	325,492	$	259,798

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Western Alliance Bancorporation

Condensed Statements of Cash Flows

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Cash flows from operating activities:
Net income	$	435,788		$	325,492		$	259,798
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Equity in net undistributed earnings of subsidiaries	(302,544		)	(245,734		)	(253,028		)
Other operating activities, net	(5,889		)	16,921			(9,880		)
Net cash provided by (used in) operating activities	127,355			96,679			(3,110		)
Cash flows from investing activities:
Purchases of securities	(44,409		)	(11,765		)	(20,148		)
Principal pay downs, calls, maturities, and sales proceeds of securities	11,362			23,196			34,390
Capital contributions to subsidiaries	—			(50,000		)	(226,869		)
Other investing activities, net	(7		)	—			2,891
Net cash (used in) investing activities	(33,054		)	(38,569		)	(209,736		)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt	—			—			169,256
Share repurchases	(35,688		)	—			—
Proceeds from issuance of common stock	—			—			55,785
Other financing activities, net	554			(12,965		)	(8,413		)
Net cash (used in) provided by financing activities	(35,134		)	(12,965		)	216,628
Net increase in cash and cash equivalents	59,167			45,145			3,782
Cash and cash equivalents at beginning of year	56,554			11,409			7,627
Cash and cash equivalents at end of year	$	115,721		$	56,554		$	11,409
Supplemental disclosure:
Cash paid during the year for:
Interest	$	13,950		$	11,182		$	5,165
Income taxes	7,704			97,781			70,131
Non-cash investing and financing activity:
Change in unrealized gain (loss) on AFS securities, net of tax	127			759			(1,984		)
Change in unrealized (loss) gain on junior subordinated debt, net of tax	5,693			(3,604		)	(2,077		)
Loan and OREO contributions to subsidiaries	1,116			11,264			50,773

137

21. SEGMENTS

The Company's reportable segments are aggregated based primarily on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: ABA in Arizona, BON and FIB in Nevada, TPB in Southern California, and Bridge in Northern California.

The Company's NBL segments provide specialized banking services to niche markets. The Company's NBL reportable segments include HOA Services, Public & Nonprofit Finance, Technology & Innovation, HFF, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately located within the Company's core market areas.

The Corporate & Other segment consists of the Company's investment portfolio, corporate borrowings and other related items, income and expense items not allocated to the Company's other reportable segments, and inter-segment eliminations.

The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 12% during the year, with a funds credit provided for the use of this equity as a funding source. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.

Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segment to the extent that the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.

Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average life of the assets or liabilities in the portfolio.

Net income amounts for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, average loan balances, and average deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.

Income taxes are applied to each segment based on the effective tax rate for the geographic location of the segment. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.

138

The following is a summary of operating segment balance sheet information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2018:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,259.7		$	2.5		$	10.9		$	2.5		$	3.0
Loans, net of deferred loan fees and costs	17,710.6			3,647.9			2,003.5			2,161.1			1,300.2
Less: allowance for credit losses	(152.7		)	(30.7		)	(18.7		)	(19.8		)	(10.7		)
Total loans	17,557.9			3,617.2			1,984.8			2,141.3			1,289.5
Other assets acquired through foreclosure, net	17.9			0.8			13.9			—			—
Goodwill and other intangible assets, net	299.2			—			23.2			—			155.5
Other assets	974.8			46.9			57.8			14.2			23.9
Total assets	$	23,109.5		$	3,667.4		$	2,090.6		$	2,158.0		$	1,471.9
Liabilities:
Deposits	$	19,177.4		$	5,090.2		$	3,996.4		$	2,347.5		$	1,839.1
Borrowings and qualifying debt	851.5			—			—			—			—
Other liabilities	466.9			10.4			14.5			4.5			12.2
Total liabilities	20,495.8			5,100.6			4,010.9			2,352.0			1,851.3
Allocated equity:	2,613.7			441.0			277.4			242.9			304.1
Total liabilities and stockholders' equity	$	23,109.5		$	5,541.6		$	4,288.3		$	2,594.9		$	2,155.4
Excess funds provided (used)	—			1,874.2			2,197.7			436.9			683.5

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,240.8
Loans, net of deferred loan fees and costs	210.0			1,547.5			1,200.9			1,479.9			4,154.9			4.7
Less: allowance for credit losses	(1.9		)	(14.2		)	(10.0		)	(8.5		)	(38.2		)	—
Total loans	208.1			1,533.3			1,190.9			1,471.4			4,116.7			4.7
Other assets acquired through foreclosure, net	—			—			—			—			—			3.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	0.9			20.1			6.3			7.2			37.1			760.4
Total assets	$	209.0		$	1,553.4		$	1,317.6		$	1,478.7		$	4,153.8		$	5,009.1
Liabilities:
Deposits	$	2,607.2		$	—		$	2,559.0		$	—		$	—		$	738.0
Borrowings and qualifying debt	—			—			—			—			—			851.5
Other liabilities	2.1			25.2			0.1			0.4			49.6			347.9
Total liabilities	2,609.3			25.2			2,559.1			0.4			49.6			1,937.4
Allocated equity:	70.7			123.9			268.7			122.3			340.0			422.7
Total liabilities and stockholders' equity	$	2,680.0		$	149.1		$	2,827.8		$	122.7		$	389.6		$	2,360.1
Excess funds provided (used)	2,471.0			(1,404.3		)	1,510.2			(1,356.0		)	(3,764.2		)	(2,649.0		)

139

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2017:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,237.1		$	2.1		$	8.2		$	2.1		$	1.7
Loans, net of deferred loan fees and costs	15,093.9			3,323.7			1,844.8			1,934.7			1,275.5
Less: allowance for credit losses	(140.0		)	(31.5		)	(18.1		)	(19.5		)	(13.2		)
Total loans	14,953.9			3,292.2			1,826.7			1,915.2			1,262.3
Other assets acquired through foreclosure, net	28.5			2.3			13.3			—			0.2
Goodwill and other intangible assets, net	300.7			—			23.2			—			156.5
Other assets	808.9			46.3			58.8			14.4			15.1
Total assets	$	20,329.1		$	3,342.9		$	1,930.2		$	1,931.7		$	1,435.8
Liabilities:
Deposits	$	16,972.5		$	4,841.3		$	3,951.4		$	2,461.1		$	1,681.7
Borrowings and qualifying debt	766.9			—			—			—			—
Other liabilities	360.0			11.6			20.9			3.2			11.9
Total liabilities	18,099.4			4,852.9			3,972.3			2,464.3			1,693.6
Allocated equity:	2,229.7			396.5			263.7			221.8			303.1
Total liabilities and stockholders' equity	$	20,329.1		$	5,249.4		$	4,236.0		$	2,686.1		$	1,996.7
Excess funds provided (used)	—			1,906.5			2,305.8			754.4			560.9

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,223.0
Loans, net of deferred loan fees and costs	162.1			1,580.4			1,097.9			1,327.7			2,543.0			4.1
Less: allowance for credit losses	(1.6		)	(15.6		)	(11.4		)	(4.0		)	(25.0		)	(0.1		)
Total loans	160.5			1,564.8			1,086.5			1,323.7			2,518.0			4.0
Other assets acquired through foreclosure, net	—			—			—			—			—			12.7
Goodwill and other intangible assets, net	—			—			120.9			0.1			—			—
Other assets	0.9			17.9			6.0			5.9			15.5			628.1
Total assets	$	161.4		$	1,582.7		$	1,213.4		$	1,329.7		$	2,533.5		$	4,867.8
Liabilities:
Deposits	$	2,230.4		$	—		$	1,737.6		$	—		$	—		$	69.0
Borrowings and qualifying debt	—			—			—			—			—			766.9
Other liabilities	1.2			42.4			0.8			0.4			5.5			262.1
Total liabilities	2,231.6			42.4			1,738.4			0.4			5.5			1,098.0
Allocated equity:	59.4			126.5			244.1			108.3			206.0			300.3
Total liabilities and stockholders' equity	$	2,291.0		$	168.9		$	1,982.5		$	108.7		$	211.5		$	1,398.3
Excess funds provided (used)	2,129.6			(1,413.8		)	769.1			(1,221.0		)	(2,322.0		)	(3,469.5		)

140

The following is a summary of operating segment income statement information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2018:	(in thousands)
Net interest income	$	915,879		$	224,754		$	148,085		$	115,561		$	92,583
Provision for (recovery of) credit losses	23,000			2,235			(2,447		)	2,292			1,809
Net interest income after provision for credit losses	892,879			222,519			150,532			113,269			90,774
Non-interest income	43,116			7,689			11,326			3,800			9,932
Non-interest expense	(425,667		)	(91,161		)	(62,536		)	(57,735		)	(52,574		)
Income (loss) before income taxes	510,328			139,047			99,322			59,334			48,132
Income tax expense (benefit)	74,540			34,824			20,951			16,709			13,565
Net income	$	435,788		$	104,223		$	78,371		$	42,625		$	34,567

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	67,154		$	15,149		$	105,029		$	55,332		$	80,073		$	12,159
Provision for (recovery of) credit losses	281			(1,101		)	5,657			3,275			11,046			(47		)
Net interest income after provision for credit losses	66,873			16,250			99,372			52,057			69,027			12,206
Non-interest income	614			158			14,121			13			2,076			(6,613		)
Non-interest expense	(32,390		)	(8,120		)	(41,159		)	(9,603		)	(26,822		)	(43,567		)
Income (loss) before income taxes	35,097			8,288			72,334			42,467			44,281			(37,974		)
Income tax expense (benefit)	8,072			1,905			16,637			9,768			10,184			(58,075		)
Net income	$	27,025		$	6,383		$	55,697		$	32,699		$	34,097		$	20,101

141

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,118		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,108			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income	$	325,492		$	76,791		$	63,661		$	35,136		$	24,807

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,550		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,401			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income	$	16,354		$	13,053		$	32,093		$	26,471		$	23,401		$	13,725

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	657,213		$	170,513		$	137,507		$	103,542		$	88,162
Provision for (recovery of) credit losses	8,000			9,912			(3,337		)	(580		)	2,587
Net interest income (expense) after provision for credit losses	649,213			160,601			140,844			104,122			85,575
Non-interest income	42,915			6,887			8,622			2,550			10,422
Non-interest expense	(330,949		)	(63,406		)	(60,570		)	(45,643		)	(53,073		)
Income (loss) before income taxes	361,179			104,082			88,896			61,029			42,924
Income tax expense (benefit)	101,381			40,832			31,113			25,663			18,049
Net income	$	259,798		$	63,250		$	57,783		$	35,366		$	24,875

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	41,539		$	20,900		$	69,143		$	38,583		$	49,893		$	(62,569	)
Provision for (recovery of) credit losses	256			(183		)	(1,626		)	—			4,200			(3,229		)
Net interest income (expense) after provision for credit losses	41,283			21,083			70,769			38,583			45,693			(59,340		)
Non-interest income	460			59			6,728			—			2,315			4,872
Non-interest expense	(24,019		)	(7,936		)	(31,271		)	(8,544		)	(15,204		)	(21,283		)
Income (loss) before income taxes	17,724			13,206			46,226			30,039			32,804			(75,751		)
Income tax expense (benefit)	6,647			4,952			17,335			11,265			12,302			(66,777		)
Net income	$	11,077		$	8,254		$	28,891		$	18,774		$	20,502		$	(8,974	)

142

22. REVENUE FROM CONTRACTS WITH CUSTOMERS

Adoption of ASU 2014-09, Revenue from Contracts with Customers, Amendments to ASC 606

The core principal of ASC 606, Revenue from Contracts with Customers, is that an entity shall recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. ASC 606 requires entities to exercise more judgment when considering the terms of a contract than under ASC 605, Revenue Recognition. ASC 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. The majority of the Company’s revenue streams including interest income, credit and debit card fees, income from equity investments including warrants and SBIC equity income, income from bank owned life insurance, foreign currency income, lending related income, and gains and losses on sales of investment securities are outside the scope of ASC 606. Revenue streams including service charges and fees, interchange fees on credit and debit cards, and success fees are within the scope of ASC 606.

On January 1, 2018, the Company adopted the amendments to ASC 606 using the modified retrospective method, and applied the guidance to all contracts in scope that were not completed as of January 1, 2018. Comparative prior periods have not been adjusted and are presented under ASC 605. The Company did not identify any material changes to the timing or amount of revenue recognition as a result of adoption.

Disaggregation of Revenue

The following table represents a disaggregation of revenue from contracts with customers for the periods indicated along with the reportable segment for each revenue category:

			Regional Segments
	Consolidated Company		Arizona			Nevada			Southern California		Northern California
Year Ended December 31, 2018	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	22,295	$	3,902	—	$	8,151	—	$	2,666	$	3,795
Debit and credit card interchange (1)	6,801		1,132		—	1,379		—	650		3,616
Success fees (2)	3,335		—		—	—		—	—		96
Other income	626		181		—	194		—	59		161
Total revenue from contracts with customers	$	33,057	$	5,215		$	9,724		$	3,375	$	7,668
Revenues outside the scope of ASC 606 (3)	10,059		2,474			1,602			425		2,264
Total non-interest income	$	43,116	$	7,689		$	11,326		$	3,800	$	9,932

	National Business Lines
	HOA Services		Public & Nonprofit Finance		Technology & Innovation		Hotel Franchise Finance		Other NBLs		Corporate & Other
Year Ended December 31, 2018	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	585	$	—	$	3,201	$	—	$	—	$	(5	)
Debit and credit card interchange (1)	24		—		—		—		—		—
Success fees (2)	—		—		3,239		—		—		—
Other income	4		—		—		—		1		26
Total revenue from contracts with customers	$	613	$	—	$	6,440	$	—	$	1	$	21
Revenues outside the scope of ASC 606 (3)	1		158		7,681		13		2,075		(6,634		)
Total non-interest income	$	614	$	158	$	14,121	$	13	$	2,076	$	(6,613	)

143

			Regional Segments
	Consolidated Company		Arizona		Nevada			Southern California		Northern California
Year Ended December 31, 2017	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	20,346	$	2,877	$	7,470		$	2,340	$	4,034
Debit and credit card interchange (1)	5,271		886		996			539		2,848
Success fees (2)	1,403		—		—			—		247
Other income	382		51		(5		)	68		138
Total revenue from contracts with customers	$	27,402	$	3,814	$	8,461		$	2,947	$	7,267
Revenues outside the scope of ASC 606 (3)	17,942		943		674			449		2,733
Total non-interest income	$	45,344	$	4,757	$	9,135		$	3,396	$	10,000

	National Business Lines
	HOA Services		Public & Nonprofit Finance		Technology & Innovation		Hotel Franchise Finance		Other NBLs		Corporate & Other
Year Ended December 31, 2017	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	554	$	—	$	3,071	$	—	$	—	$	—
Debit and credit card interchange (1)	2		—		—		—		—		—
Success fees (2)	—		—		1,156		—		—		—
Other income	1		—		3		—		114		12
Total revenue from contracts with customers	$	557	$	—	$	4,230	$	—	$	114	$	12
Revenues outside the scope of ASC 606 (3)	1		—		4,192		52		1,658		7,240
Total non-interest income	$	558	$	—	$	8,422	$	52	$	1,772	$	7,252

(1) Included as part of Card income in the Consolidated Income Statement.

(2) Included as part of Income from equity investments in the Consolidated Income Statement.

(3) Amounts are accounted for under separate guidance. Refer to discussion of revenue sources not subject to ASC 606 under the Non-interest income section in "Note 1. Summary of Significant Accounting Policies."

Performance Obligations

Many of the services the Company performs for its customers are ongoing, and either party may cancel at any time. The fees for these contracts are dependent upon various underlying factors, such as customer deposit balances, and as such may be considered variable. The Company’s performance obligations for these services are satisfied as the services are rendered and payment is collected on a monthly, quarterly, or semi-annual basis. Other contracts with customers are for services to be provided at a point in time, and fees are recognized at the time such services are rendered. The Company had no material unsatisfied performance obligations as of December 31, 2018. The revenue streams within the scope of ASC 606 are described in further detail below.

Service Charges and Fees

The Company performs deposit account services for its customers, which include analysis and treasury management services, use of safe deposit boxes, check upcharges, and other ancillary services. The depository arrangements the Company holds with its customers are considered day-to-day contracts with ongoing renewals and optional purchases, and as such, the contract duration does not extend beyond the services performed. Due to the short-term nature of such contracts, the Company generally recognizes revenue for deposit related fees as services are rendered. From time to time, the Company may waive certain fees for its customers. The Company considers historical experience when recognizing revenue from contracts with customers, and may reduce the transaction price to account for fee waivers or refunds.

Debit and Credit Card Interchange

When a credit or debit card issued by the Company is used to purchase goods or services from a merchant, the Company earns an interchange fee. The Company considers the merchant its customer in these transactions as the Company provides the merchant with the service of enabling the cardholder to purchase the merchant’s goods or services with increased convenience, and it enables the merchants to transact with a class of customer that may not have access to sufficient funds at the time of purchase. The Company acts as an agent to the payment network by providing nightly settlement services between the network and the merchant. This transmission of data and funds represents the Company’s performance obligation and is performed nightly. As the payment network

144

is in direct control of setting the rates and the Company is acting as an agent, the interchange fee is recorded net of expenses as the services are provided.

Success Fees

Success fees are one-time fees detailed as part of certain loan agreements and are earned immediately upon occurrence of a triggering event. Examples of triggering events include: a borrower obtaining its next round of funding, an acquisition, or completion of a public offering. Success fees are variable consideration as the transaction price can vary and is contingent on the occurrence or non-occurrence of a future event. As the consideration is highly susceptible to factors outside of the Company’s influence and uncertainty about the amount of consideration is not expected to be resolved for an extended period of time, the variable consideration is constrained and is not recognized until the achievement of the triggering event.

Principal versus Agent Considerations

When more than one party is involved in providing goods or services to a customer, ASC 606 requires the Company to determine whether it is the principal or an agent in these transactions by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis, if it controls a promised good or service before transferring that good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. The Company most commonly acts as a principal and records revenue on a gross basis, except in certain circumstances. As an example, revenues earned from interchange fees, in which the Company acts as an agent, are recorded as non-interest income, net of the related expenses paid to the principal.

Practical Expedients

The Company has elected to apply the practical expedient allowed in ASC 340-40-25-4, which permits the Company to immediately expense contract acquisition costs, such as commissions, when the asset that would have resulted from capitalizing these costs would be amortized in one year or less. The practical expedient described in ASC 606-10-32-18, which is associated with the determination of whether a significant financing component exists, is not currently applicable to the Company.

Contract Balances

The timing of revenue recognition may differ from the timing of cash settlements or invoicing to customers. The Company records contract liabilities, or deferred revenue, when payments from customers are received or due in advance of providing services to customers. The Company generally receives payments for its services during the period or at the time services are provided, therefore, does not have material contract liability balances at period-end. The Company records contract assets or receivables when revenue is recognized prior to receipt of cash from the customer. Accounts receivable total $1.4 million and $1.3 million as of December 31, 2018 and December 31, 2017, respectively, and are presented in Other assets in the Consolidated Balance Sheets.

145

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Year Ended December 31, 2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	281,968		$	265,216		$	251,602		$	234,697
Interest expense	38,455			31,178			27,494			20,477
Net interest income	243,513			234,038			224,108			214,220
Provision for credit losses	6,000			6,000			5,000			6,000
Net interest income after provision for credit losses	237,513			228,038			219,108			208,220
Non-interest income	13,611			4,418			13,444			11,643
Non-interest expense	(111,129		)	(113,841		)	(102,548		)	(98,149		)
Income before provision for income taxes	139,995			118,615			130,004			121,714
Income tax expense	20,909			7,492			25,325			20,814
Net income	$	119,086		$	111,123		$	104,679		$	100,900
Earnings per share:
Basic	$	1.14		$	1.06		$	1.00		$	0.97
Diluted	$	1.13		$	1.05		$	0.99		$	0.96

	Year Ended December 31, 2017
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	228,459		$	217,836		$	206,953		$	192,265
Interest expense	17,430			16,253			14,210			12,956
Net interest income	211,029			201,583			192,743			179,309
Provision for credit losses	5,000			5,000			3,000			4,250
Net interest income after provision for credit losses	206,029			196,583			189,743			175,059
Non-interest income	13,688			10,456			10,601			10,599
Non-interest expense	(95,398		)	(89,296		)	(88,420		)	(87,827		)
Income before provision for income taxes	124,319			117,743			111,924			97,831
Income tax expense	34,973			34,899			31,964			24,489
Net income	$	89,346		$	82,844		$	79,960		$	73,342
Earnings per share:
Basic	$	0.86		$	0.79		$	0.77		$	0.71
Diluted	$	0.85		$	0.79		$	0.76		$	0.70

146

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures.

As of the end of the period covered by this Annual Report on Form 10-K, an evaluation was carried out by the Company’s management, with the participation of its CEO and CFO, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e), under the Exchange Act). Based upon that evaluation, the Company’s CEO and CFO concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report. No changes were made to the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of WAL is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s CEO and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

As of December 31, 2018, management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in “Internal Control-Integrated Framework” issued by the COSO in 2013. Based on this assessment, management determined that the Company maintained effective internal control over financial reporting as of December 31, 2018, based on those criteria.

RSM US LLP, the independent registered public accounting firm that audited the Consolidated Financial Statements of the Company included in this Annual Report on Form 10-K has audited the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. Their report, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018, is included herein.

147

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Western Alliance Bancorporation 

Opinion on the Internal Control Over Financial Reporting

We have audited Western Alliance Bancorporation and Subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. 

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of December 31, 2018 and 2017, and the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2018 of the Company and our report, dated March 1, 2019, expressed an unqualified opinion. 

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ RSM US LLP

Phoenix, Arizona

March 1, 2019

148

Item 9B. Other Information

Not applicable.

149

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders to be held on June 4, 2019.

The Company has adopted a Code of Business Conduct and Ethics applicable to all of its directors and employees, including the principal executive officer, principal financial officer and principal accounting officer. A copy of the Code of Business Conduct and Ethics is available on the Company’s website at www.westernalliancebancorporation.com.

Item 11. Executive Compensation

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders to be held on June 4, 2019.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders to be held on June 4, 2019.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders to be held on June 4, 2019.

Item 14. Principal Accountant Fees and Services

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2019 Annual Meeting of Stockholders to be held on June 4, 2019.

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(1) The following financial statements are incorporated by reference from Item 8 hereto:

Report of Independent Registered Public Accounting Firm	72
Consolidated Balance Sheets as of December 31, 2018 and 2017	73
Consolidated Income Statements for the three years ended December 2018, 2017, and 2016	74
Consolidated Statements of Comprehensive Income for the three years ended December 31, 2018, 2017, and 2016	76
Consolidated Statements of Stockholders’ Equity for the three years ended December 31, 2018, 2017, and 2016	77
Consolidated Statements of Cash Flows for the three years ended December 31, 2018, 2017, and 2016	78
Notes to Consolidated Financial Statements	80

(2) Financial Statement Schedules

Not applicable.

On the Exhibit Index, a “±” identifies each management contract or compensatory plan or arrangement required to be filed as an exhibit to this Annual Report.

150

EXHIBITS

3.1*	Amended and Restated Certificate of Incorporation of Western Alliance, effective as of May 19, 2015.
3.2	Amended and Restated Bylaws of Western Alliance, effective as of May 19, 2015 (incorporated by reference to Exhibit 3.2 of Western Alliance's Form 8-K filed with the SEC on May 22, 2015).
3.3	Articles of Conversion, as filed with the Nevada Secretary of State on May 29, 2014 (incorporated by reference to Exhibit 3.1 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
3.4	Certificate of Conversion, as filed with the Delaware Secretary of State on May 29, 2014 (incorporated by reference to Exhibit 3.2 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
3.5	Certificate of Designation of Non-Cumulative Perpetual Preferred Stock, Series B, as filed with the Delaware Secretary of State on May 29, 2014 (incorporated by reference to Exhibit 3.4 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
4.1	Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
4.2	Senior Debt Indenture, dated August 25, 2010, between Western Alliance and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 of Western Alliance’s Form 8-K filed with the SEC on August 25, 2010).
4.3	Form of Senior Debt Indenture (incorporated by reference to Exhibit 4.2 of Western Alliance's Form S-3 filed with the SEC on May 7, 2015).
4.4	Form of Subordinated Debt Indenture (incorporated by reference to Exhibit 4.3 of Western Alliance's Form S-3 filed with the SEC on May 7, 2015).
4.5	Form of 5.00% Fixed to Floating Rate Subordinated Bank Note due July 15, 2025 (incorporated by reference to Exhibit 4.1 of Western Alliance's Form 8-K filed with the SEC on July 2, 2015).
4.6	Subordinated Debt Indenture, dated June 16, 2016, between Western Alliance and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Western Alliance's Form 8-K filed with the SEC on June 16, 2016).
4.7	First Supplemental Indenture (including Form of Debenture) dated June 16, 2016 between Western Alliance and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of Western Alliance's Form 8-K filed with the SEC on June 16, 2016).
4.8	Form of Global Debenture dated June 16, 2016 (incorporated by reference to Exhibit 4.3 of Western Alliance's Form 8-K filed with the SEC on June 16, 2016).
10.1	Western Alliance 2005 Stock Incentive Plan, as amended (incorporated by reference to Appendix G of the Registrant's definitive Proxy Statement on Schedule 14A filed with the Commission on April 2, 2014). ±
10.2	Bridge Capital Holdings 2006 Equity Incentive Plan (incorporated by reference to Exhibit 4.11 of Western Alliance's Form S-8 filed with the SEC on July 2, 2015). ±
10.3	Form of BankWest Nevada Corporation Incentive Stock Option Plan Agreement (incorporated by reference to Exhibit 10.3 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.4	Form of Western Alliance Incentive Stock Option Plan Agreement (incorporated by reference to Exhibit 10.4 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.5	Form of Western Alliance 2002 Stock Option Plan Agreement (incorporated by reference to Exhibit 10.5 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.6	Form of Western Alliance 2002 Stock Option Plan Agreement (with double trigger acceleration clause) (incorporated by reference to Exhibit 10.6 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.7	Form of Non-Competition Agreement (incorporated by reference to Exhibit 10.8 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.8	Western Alliance Change in Control Severance Plan (incorporated by reference to Exhibit 10.1 of Western Alliance’s Form 8-K filed with the SEC on September 25, 2012). ±
10.9	Form of Indemnification Agreement, by and between Western Alliance and each of Western Alliance's directors and executive officers (incorporated by reference to Exhibit 10.10 of Western Alliance's Form 10-K/A filed with the SEC on March 1, 2017). ±
10.10	Offer Letter, dated May 1, 2017, by and between Kenneth A. Vecchione and Western Alliance (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 5, 2017). ±
10.11	Employment Letter Agreement, dated February 17, 2017, by and between James C. Haught and Western Alliance (incorporated by reference to Exhibit 10.1 of Western Alliance’s Current Report on Form 8-K filed with the SEC on December 15, 2017). ±

151

21.1*	List of Subsidiaries of Western Alliance.
23.1*	Consent of RSM US LLP.
24.1*	Power of Attorney (see signature page).
31.1*	CEO Certification Pursuant Rule 13a-14(a)/15d-14(a).
31.2*	CFO Certification Pursuant Rule 13a-14(a)/15d-14(a).
32**	CEO and CFO Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

** Furnished herewith.

± Management contract or compensatory arrangement.

Stockholders may obtain copies of exhibits by writing to: Dale Gibbons, Western Alliance Bancorporation, One East Washington Street Suite 1400, Phoenix, AZ 85004.

Item 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

None.

152

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	WESTERN ALLIANCE BANCORPORATION
March 1, 2019	By:	/s/ Kenneth A. Vecchione
		Kenneth A. Vecchione
		Chief Executive Officer

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Kenneth A. Vecchione and Dale Gibbons, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection therewith the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully and to all intents and purposes as he or she might or could do in person hereby ratifying and confirming all that said attorneys-in-fact and agents, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant in their listed capacities on March 1, 2019.

153

Name	Title
/s/ Kenneth A. Vecchione	Chief Executive Officer
Kenneth A. Vecchione
/s/ Robert Sarver	Executive Chairman
Robert Sarver
/s/ Dale Gibbons	Vice Chairman and Chief Financial Officer
Dale Gibbons	(Principal Financial Officer)
/s/ J. Kelly Ardrey Jr.	Senior Vice President and Chief Accounting Officer
J. Kelly Ardrey Jr.	(Principal Accounting Officer)
/s/ Bruce D. Beach	Director
Bruce D. Beach
/s/ William S. Boyd	Director
William S. Boyd
/s/ Howard Gould	Director
Howard Gould
/s/ Steven J. Hilton	Director
Steven J. Hilton
/s/ Marianne Boyd Johnson	Director
Marianne Boyd Johnson
/s/ Robert Latta	Director
Robert Latta
/s/ Cary Mack	Director
Cary Mack
/s/ Todd Marshall	Director
Todd Marshall
/s/ James Nave	Director
James Nave
/s/ Michael Patriarca	Director
Michael Patriarca
/s/ Donald D. Snyder	Director
Donald D. Snyder
/s/ Sung Won Sohn	Director
Sung Won Sohn

154

EX-3.1

EXHIBIT 3.1

AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

OF WESTERN ALLIANCE BANCORPORATION

a Delaware corporation

WESTERN ALLIANCE BANCORPORATION, a corporation organized and existing under the General Corporation Law of the State of Delaware, hereby certifies as follows:

FIRST:        The name of the corporation is Western Alliance Bancorporation (the “Corporation”).

SECOND: The address of the registered office of the Corporation in the State of Delaware and the County of Kent is 615 South DuPont Highway, Dover, DE 19901 and the name of the registered agent at that address is National Corporate Research, Ltd.

THIRD: The purpose of the Corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of Delaware.

FOURTH: A. The total number of shares of all classes of stock which the Corporation shall have authority to issue is 220,000,000 shares consisting of:

1. 200,000,000 shares of Common Stock, with a par value of $0.0001 per share (the “Common Stock”); and

2. 20,000,000 shares of Preferred Stock, with a par value of $0.0001 per share (the “Preferred Stock”).

B. The Board of Directors is authorized, subject to any limitations prescribed by law, to provide for the issuance of shares of Preferred Stock in series and, by filing a certificate pursuant to the applicable law of the State of Delaware, to establish from time to time the number of shares to be included in each such series, and to fix the designation, powers, preferences and rights of the shares of each such series and any qualifications, limitations or restrictions thereon. The number of authorized shares of Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the outstanding shares of Common Stock without a vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders is required pursuant to the certificate or certificates establishing the series of Preferred Stock.

FIFTH: The following provisions are inserted for the management of the business and the conduct of the affairs of the Corporation, and for further definition, limitation and regulation of the powers of the Corporation and of its directors and stockholders:

A. The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors. In addition to the powers and authority expressly conferred upon them by statute or by this Certificate of Incorporation or the Bylaws of the Corporation, the directors are hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation.

B. The directors of the Corporation need not be elected by written ballot unless the Bylaws so provide.

C. Any action required or permitted to be taken by the stockholders of the Corporation must be effected at a duly called annual or special meeting of stockholders of the Corporation and may not be effected by any consent in writing by such stockholders.

D. Special meetings of stockholders of the Corporation may be called by the Board of Directors, the Chairman of the Board, the Chief Executive Officer, or the President and shall be called by the Board of Directors of the Corporation upon the written request of the stockholders of the Corporation holding no less than forty percent (40%) of the issued and outstanding shares of common stock of the Corporation, subject to and in compliance with the procedures and other requirements set forth in the Bylaws of the Corporation.

SIXTH: A. The number of directors shall be no fewer than one and shall be fixed in the manner in the manner provided for in the Bylaws. Each director who is nominated for election as a director as of the date of the 2015 annual meeting of stockholders of the Corporation shall, if elected, hold office until the 2016 annual meeting of

stockholders and until his or her successor shall be elected and shall qualify, subject, however, to prior resignation, removal from office or death. Each director who was serving as a director as of the date of the 2015 annual meeting of stockholders and who was not nominated for election at such meeting shall hold office until the expiration of the term for which he or she has been elected and until his or her successor shall be elected and shall qualify, subject, however, to prior resignation, removal from office or death. At each annual meeting of stockholders after the date of the 2015 annual meeting of stockholders of the Corporation, each director who does not have a continuing term as provided in the foregoing sentence (and each director for whom such a continuing term has expired) shall, if nominated and elected, hold office until the annual meeting next succeeding his or her election and until his or her successor shall be elected and shall qualify, subject, however, to prior resignation, removal from office or death.

B. Subject to the rights of the holders of any series of Preferred Stock then outstanding, newly created directorships resulting from any increase in the authorized number of directors or any vacancies in the Board of Directors resulting from death, resignation or other cause (including removal from office by a vote of the stockholders) may be filled only by a majority vote of the directors then in office, though less than a quorum, or by the sole remaining director, and directors so chosen shall hold office for a term expiring at the next annual meeting of stockholders, and until their respective successors are elected, except in the case of the death, resignation or removal of any director. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

C. Subject to the rights of the holders of any series of Preferred Stock then outstanding, any director who was serving as a director as of the date of the 2015 annual meeting of stockholders, who was not nominated for election at such meeting and whose term continued beyond such meeting may be removed from office at any time prior to the expiration of the director’s term, but only for cause and only by the affirmative vote of the holders of at least a majority of the voting power of all of the then outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class. Each director who does not have a continuing term as provided in the foregoing sentence (and each director for whom such a continuing term has expired) may be removed with or without cause, by the affirmative vote of the holders of at least a majority of the voting power of all of the then outstanding shares of capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

SEVENTH: The Board of Directors is expressly empowered to adopt, amend, alter or repeal the Bylaws of the Corporation. The stockholders shall also have power to adopt, amend, alter or repeal the Bylaws of the Corporation. Any adoption, amendment, alteration or repeal of the Bylaws of the Corporation by the stockholders shall require, in addition to any vote of the holders of any class or series of stock of the Corporation required by law or by this Certificate of Incorporation, the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class.

EIGHTH: A director of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i) for any breach of the director’s duty of loyalty to the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involved intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived an improper personal benefit.

If the Delaware General Corporation Law is hereafter amended to authorize the further elimination or limitation of the liability of a director, then the liability of a director of the Corporation shall be eliminated or limited to the fullest extent permitted by the Delaware General Corporation Law, as so amended. Any repeal or modification of the foregoing provisions of this Article EIGHTH by the stockholders of the Corporation shall not adversely affect any right or protection of a director of the Corporation existing at the time of, or increase the liability of any director of the Corporation with respect to actions or omissions occurring prior to, such repeal or modification.

NINTH: Unless the corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim against the Corporation arising pursuant to any provision of the Delaware General Corporation Law or the Corporation’s Certificate of Incorporation or Bylaws, or (iv) any action asserting a claim against the Corporation governed by the internal affairs doctrine

shall be a state or federal court located within the state of Delaware, in all cases subject to the court’s having personal jurisdiction over the indispensable parties named as defendants.

TENTH: The Corporation reserves the right to amend or repeal any provision contained in this Certificate of Incorporation in any manner now or hereafter permitted by the laws of the State of Delaware and all rights of the stockholders of the Corporation are granted subject to this reservation; provided, however, that, notwithstanding any other provision of this Certificate of Incorporation or any provision of law which might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of this Corporation required by law or by this Certificate of Incorporation, the affirmative vote of the holders of at least a majority of the voting power of all of the then outstanding shares of the capital stock of the Corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal this Article TENTH, Article FIFTH, Article SIXTH, Article SEVENTH, Article EIGHTH, or Article NINTH.

IN WITNESS WHEREOF, the Corporation has caused this Amended and Restated Certificate of Incorporation to be signed by the undersigned officer, thereunto duly authorized, on this 19th day of May, 2015.

	WESTERN ALLIANCE BANCORPORATION
By:	/s/ Randall S. Theisen
	Name: Randall S. Theisen
	Title: Executive Vice President, General Counsel and Secretary

EX-21.1

EXHIBIT 21.1

WESTERN ALLIANCE BANCORPORATION

LIST OF SUBSIDIARIES

(As of December 31, 2018)

Name	Doing Business As	Jurisdiction of Incorporation or Organization
Western Alliance Bank	Alliance Bank of Arizona Bridge Bank First Independent Bank Bank of Nevada Torrey Pines Bank Alliance Association Bank Western Alliance Corporate Finance Western Alliance Public Finance Western Alliance Resort Finance Western Alliance Warehouse Lending	Arizona
CS Insurance Co.	Not applicable	Arizona
Las Vegas Sunset Properties	Not applicable	Nevada
Helios Prime, Inc.	Not applicable	Delaware
Western Alliance Business Trust	Not applicable	Delaware
WA PWI, LLC	Not applicable	Arizona
Western One, LLC	Not applicable	Arizona
Western Alliance Equipment Finance	Not applicable	Arizona
BW Real Estate, Inc.	Not applicable	Nevada
BankWest Nevada Capital Trust II	Not applicable	Delaware
Intermountain First Statutory Trust I	Not applicable	Connecticut
First Independent Statutory Trust I	Not applicable	Delaware
WAL Trust No. 1	Not applicable	Delaware
WAL Statutory Trust No. 2	Not applicable	Connecticut
WAL Statutory Trust No. 3	Not applicable	Connecticut
Bridge Capital Holdings Trust I	Not applicable	Delaware
Bridge Capital Holdings Trust II	Not applicable	Delaware

EX-23.1

EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statement (Nos. 333-205437, 333-199727, 333-127032, 333-145548, 333-162107, and 333-183574) on Forms S-8 and Registration Statement (No. 333-203959) on Form S-3 of Western Alliance Bancorporation and Subsidiaries of our reports dated March 1, 2019 relating to the consolidated financial statements and the effectiveness of internal control over financial reporting of Western Alliance Bancorporation and Subsidiaries appearing in this Annual Report on Form 10-K of Western Alliance Bancorporation and Subsidiaries for the year ended December 31, 2018.

/s/ RSM US LLP

Phoenix, Arizona

March 1, 2019

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kenneth A. Vecchione, certify that:

1. I have reviewed this Annual Report on Form 10-K of Western Alliance Bancorporation;

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(s) 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(s) 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/ Kenneth A. Vecchione
		Kenneth A. Vecchione
		Chief Executive Officer
Date:	March 1, 2019	Western Alliance Bancorporation

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Dale Gibbons, certify that:

1. I have reviewed this Annual Report on Form 10-K of Western Alliance Bancorporation;

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(s) 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(s) 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/ Dale Gibbons
		Dale Gibbons
		Chief Financial Officer
Date:	March 1, 2019	Western Alliance Bancorporation

EX-32

EXHIBIT 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is given by the undersigned Chief Executive Officer and Chief Financial Officer of Western Alliance Bancorporation (the “Registrant”) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Each of the undersigned hereby certifies, with respect to the Registrant's annual report on Form 10-K for the year ended December 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), that, to each of their knowledge:

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 Registrant.

Date:	March 1, 2019	/s/ Kenneth A. Vecchione
		Chief Executive Officer
		Western Alliance Bancorporation
Date:	March 1, 2019	/s/ Dale Gibbons
		Chief Financial Officer
		Western Alliance Bancorporation

XML

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Feb. 22, 2019	Jun. 30, 2018
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Entity Emerging Growth Company	false
Entity Small Business	false
Document Fiscal Period Focus	FY
Trading Symbol	WAL
Entity Registrant Name	WESTERN ALLIANCE BANCORPORATION
Entity Central Index Key	0001212545
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		105,296,854
Entity Shell Company	false
Entity Public Float			$ 5,546

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Accounts Receivable, Net	$ 1,400,000	$ 1,300,000
Assets:
Cash and due from banks	180,053,000	181,191,000
Interest-bearing deposits in other financial institutions	318,519,000	235,577,000
Cash, cash equivalents, and restricted cash	498,572,000	416,768,000
Money Market Funds, at Carrying Value	7,000	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	3,276,988,000	3,499,519,000
Debt Securities, Held-to-maturity	302,905,000	255,050,000
Equity Securities, FV-NI	115,061,000	0
Investments in restricted stock, at cost	66,132,000	65,785,000
Loans:
Loans, net of deferred loan fees and costs	17,710,629,000	15,093,935,000
Less: Allowance for credit losses	(152,717,000)	(140,050,000)
Net loans held for investment	17,557,912,000	14,953,885,000
Premises and equipment, net	119,474,000	118,719,000
Other assets acquired through foreclosure, net	17,924,000	28,540,000
Bank owned life insurance	170,145,000	167,764,000
Goodwill	289,895,000	289,895,000
Other intangible assets, net	9,260,000	10,853,000
Deferred tax assets, net	31,990,000	5,780,000
Other assets	310,840,000	249,504,000
Total assets	23,109,486,000	20,329,085,000
Deposits:
Non-interest-bearing demand	7,456,141,000	7,433,962,000
Interest-bearing	11,721,306,000	9,538,570,000
Total deposits	19,177,447,000	16,972,532,000
Customer repurchase agreements	22,411,000	26,017,000
Other borrowings	491,000,000	390,000,000
Qualifying debt	360,458,000	376,905,000
Other liabilities	444,436,000	333,933,000
Total liabilities	20,495,752,000	18,099,387,000
Commitments and Contingencies
Stockholders’ equity:
Common stock - par value $0.0001; 200,000,000 authorized; 106,741,870 shares issued at December 31, 2018 and 107,057,520 at December 31, 2017	10,000	10,000
Treasury Stock, Value	(53,083,000)	(40,173,000)
Additional paid in capital	1,417,724,000	1,424,540,000
Retained earnings	(33,622,000)	(3,145,000)
Accumulated other comprehensive (loss)	1,282,705,000	848,466,000
Total stockholders’ equity	2,613,734,000	2,229,698,000
Total liabilities and stockholders’ equity	23,109,486,000	20,329,085,000
Amortization Method Qualified Affordable Housing Project Investments	$ 342,381,000	$ 267,023,000

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interest income:
Loans, including fees	$ 910,577	$ 747,510	$ 636,596
Investment securities	106,752	83,354	52,570
Dividends	7,915	7,740	9,002
Other	8,239	6,909	2,338
Total interest income	1,033,483	845,513	700,506
Interest expense:
Deposits	90,464	41,965	29,722
Other borrowings	4,329	561	508
Qualifying debt	22,287	18,273	12,998
Other	524	50	65
Total interest expense	117,604	60,849	43,293
Net interest income	915,879	784,664	657,213
Provision for credit losses	23,000	17,250	8,000
Net interest income after provision for credit losses	892,879	767,414	649,213
Fees and Commissions, Mortgage Banking and Servicing	22,295	20,346	18,824
Non-interest income:
Card income	8,009	6,313	5,226
Foreign currency income	8,595	4,496	2,664
Lending related income and gains (losses) on sale of loans, net	3,946	3,861	3,762
Debt and Equity Securities, Realized Gain (Loss)	(7,656)	2,343	1,059
Income from bank owned life insurance	4,760	3,536	3,419
Lending related income and gains (losses) on sale of loans, net	4,340	2,212	5,295
Equity Securities, FV-NI, Unrealized Gain (Loss)	(3,611)	(1)	8
Other income	2,438	2,238	2,658
Total non-interest income	43,116	45,344	42,915
Non-interest expense:
Salaries and employee benefits	253,238	214,344	188,810
Legal, professional, and directors' fees	28,722	29,814	24,610
Occupancy	29,404	27,860	27,303
Data processing	22,716	19,225	19,657
Insurance	14,005	14,042	12,898
Deposit costs	18,900	9,731	4,983
Business Development	5,960	6,128	5,902
Loan and repossessed asset expenses	4,578	4,617	2,999
Marketing	3,770	3,804	3,596
Card expense	4,301	3,413	1,939
Intangible amortization	1,594	2,074	2,788
Net loss (gain) on sales / valuations of repossessed and other assets	9	(80)	(125)
Acquisition / restructure expense	0	0	12,412
Other expense	38,470	25,969	23,177
Total non-interest expense	425,667	360,941	330,949
Income before provision for income taxes	510,328	451,817	361,179
Income tax expense	74,540	126,325	101,381
Net income	435,788	325,492	259,798
Net income available to common stockholders	$ 435,788	$ 325,492	$ 259,798
Earnings per share:
Basic	$ 4.16	$ 3.12	$ 2.52
Diluted	$ 4.14	$ 3.10	$ 2.50
Weighted average number of common shares outstanding:
Basic	104,669	104,179	103,042
Diluted	105,370	104,997	103,843

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	$ (35,192)	$ 2,994	$ (26,300)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	5,773	(1,444)	(655)
Net income	435,788	325,492	259,798
Other comprehensive (loss) income, net:
Unrealized (loss) gain on AFS securities, net of tax effect of $13,354, $(3,973), and $15,099, respectively	(40,808)	6,334	(24,254)
Unrealized (loss) gain on SERP, net of tax effect of $24, $(79), and $(18), respectively	(77)	264	31
Change in unrealized gain (loss) on junior subordinated debt, net of tax	5,693	(3,604)	(2,077)
Realized loss (gain) on sale of AFS securities included in income, net of tax effect of $(1,883), $899, and $404, respectively	5,773	(1,444)	(655)
Net other comprehensive (loss) income	(29,419)	1,550	(26,955)
Retained earnings	(33,622)	(3,145)	(4,695)
Comprehensive income	406,369	327,042	232,843
Unrealized holding gains (losses) on AFS
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(40,808)	6,334	(24,254)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	5,773	(1,444)	(655)
Other comprehensive (loss) income, net:
Net other comprehensive (loss) income	(35,035)	4,890	(24,909)
Retained earnings	(47,591)	(10,026)	(14,916)
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	5,693	(3,604)	(2,077)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Other comprehensive (loss) income, net:
Net other comprehensive (loss) income	5,693	(3,604)	(2,077)
Retained earnings	13,433	6,352	9,956
Impairment loss on securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Other comprehensive (loss) income, net:
Net other comprehensive (loss) income	0	0	0
Retained earnings	144	144	144
Supplemental Employee Retirement Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(77)	264	31
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Other comprehensive (loss) income, net:
Net other comprehensive (loss) income	(77)	264	31
Retained earnings	$ 392	$ 385	$ 121

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Comprehensive Income [Abstract]
Unrealized gain on securities available-for-sale securities, tax	$ (13,354)	$ 3,973	$ (15,099)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	24	(79)	(18)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Debt Carried at Fair Value, Tax	(1,857)	2,220	1,405
Realized gain on sale of securities, tax	$ (1,883)	$ 899	$ 404

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated (Deficit) [Member]
Beginning balance at Dec. 31, 2015	$ 1,591,502	$ 10	$ 1,323,473	$ (16,879)	$ 22,260	$ 262,638
Beginning balance, shares at Dec. 31, 2015		103,087,000
Net income	259,798					259,798
Exercise of stock options, shares		77,000
Exercise of stock options	1,070		1,070
Restricted stock grants, net, shares		662,000
Restricted stock grants, net	19,812		19,812
Treasury Stock, Shares, Acquired		(305,000)
Restricted Stock Award, Forfeitures	(9,483)			(9,483)
Stock Issued During Period, Shares, New Issues		1,550,000
Stock Issued During Period, Value, New Issues	55,785		55,785
Other comprehensive (loss) income, net	(26,955)				(26,955)
Ending balance at Dec. 31, 2016	1,891,529	$ 10	1,400,140	(26,362)	(4,695)	522,436
Ending balance, shares at Dec. 31, 2016		105,071,000
Net income	325,492					325,492
Exercise of stock options, shares		38,000
Exercise of stock options	846		846
Restricted stock grants, net, shares		648,000
Restricted stock grants, net	$ 23,554		23,554
Treasury Stock, Shares, Acquired	(269,835)	(270,000)
Restricted Stock Award, Forfeitures	$ (13,811)			13,811
Other comprehensive (loss) income, net	1,550				1,550
Ending balance at Dec. 31, 2017	2,229,698	$ 10	1,424,540	(40,173)	(3,145)	848,466
Ending balance, shares at Dec. 31, 2017		105,487,000
Net income	435,788					435,788
Exercise of stock options, shares		22,000
Exercise of stock options	554		554
Restricted stock grants, net, shares		564,000
Restricted stock grants, net	$ 25,711		25,711
Treasury Stock, Shares, Acquired	(223,125)	(223,000)
Restricted Stock Award, Forfeitures	$ (12,910)			(12,910)
Stock Repurchased and Retired During Period, Shares	900,883	(901,000)
Stock Repurchased and Retired During Period, Value	$ (35,688)		(33,081)			(2,607)
Other comprehensive (loss) income, net	(29,419)				(29,419)
Ending balance at Dec. 31, 2018	2,613,734	$ 10	$ 1,417,724	$ (53,083)	$ (33,622)	$ 1,282,705
Ending balance, shares at Dec. 31, 2018		104,949,000
Stock Repurchase Program, Authorized Amount	$ 250,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 435,788	$ 325,492	$ 259,798
Adjustments to reconcile net income to cash provided by operating activities:
Provision for credit losses	23,000	17,250	8,000
Depreciation and amortization	14,319	13,393	12,494
Stock-based compensation	25,711	23,554	20,338
Deferred income taxes	(16,709)	88,471	7,644
Amortization of net premiums for investment securities	14,247	16,938	13,790
Amortization of tax credit investments	35,898	25,355	17,336
Accretion of fair market value adjustments on loans acquired from business combinations	(18,565)	(28,235)	(29,209)
Accretion and amortization of fair market value adjustments on other assets and liabilities acquired from business combinations	1,904	2,385	3,098
Income from bank owned life insurance	(3,946)	(3,861)	(3,762)
Debt and Equity Securities, Realized Gain (Loss)	(7,656)	2,343	1,059
Losses / (Gains) on:
Equity Securities, FV-NI, Unrealized Gain (Loss)	3,611	1	(8)
Sale of loans	(2,638)	(945)	(2,492)
Other assets acquired through foreclosure, net	(1,214)	(228)	372
Valuation adjustments of other repossessed assets, net	1,267	120	(268)
Sale of premises, equipment, and other assets, net	(44)	28	21
Changes in:
Other assets	1,378	(111,902)	(23,114)
Other liabilities	19,309	18,338	(2,334)
Net cash provided by operating activities	540,972	383,811	280,645
Investment securities - trading
Principal pay downs and maturities	0	0	395
Proceeds from sales	0	994	0
Investment securities - AFS
Purchases	(520,734)	(1,429,434)	(1,205,057)
Principal pay downs and maturities	425,151	430,934	499,541
Proceeds from sales	154,434	110,104	25,504
Purchases	(56,575)	(169,400)	(92,384)
Principal pay downs and maturities	8,987	6,174	94
Payments to Acquire Securities, Equity	(71,728)	0	0
Reinvestments of dividend proceeds	(577)	0	0
Proceeds from Sale of Equity securities, FV-NI	48,639	0	0
Purchase of investment tax credits	(109,598)	(38,098)	(28,847)
Purchase of SBIC investments	(4,129)	(5,819)	0
Sale (purchase) of money market investments, net	(7)	0	121
Proceeds from bank owned life insurance	1,655	607	1,710
(Purchase) liquidation of restricted stock, net	(347)	(535)	(7,139)
Loan fundings and principal collections, net	(2,586,703)	(1,873,387)	(810,543)
Purchase of premises, equipment, and other assets, net	(11,313)	(8,862)	(10,574)
Proceeds from sale of other real estate owned and repossessed assets, net	9,412	21,195	9,133
Cash and cash equivalents (used) acquired in acquisitions, net	0	0	(1,272,187)
Net cash used in investing activities	(2,713,433)	(2,955,527)	(2,890,233)
Cash flows from financing activities:
Net increase (decrease) in deposits	2,204,915	2,422,669	2,519,239
Proceeds from issuance of subordinated debt	0	0	169,256
Net increase (decrease) in borrowings	97,394	294,289	(66,428)
Proceeds from exercise of common stock options	554	846	1,070
Cash paid for tax withholding on vested restricted stock	(12,910)	(13,811)	(9,483)
Common stock repurchases	(35,688)	0	0
Proceeds from issuance of common stock	0	0	55,785
Net cash provided by financing activities	2,254,265	2,703,993	2,669,439
Net increase (decrease) in cash, cash equivalents, and restricted cash	81,804	132,277	59,851
Cash, cash equivalents, and restricted cash at beginning of period	416,768	284,491	224,640
Cash, cash equivalents, and restricted cash at end of period	498,572	416,768	284,491
Cash paid during the period for:
Interest	113,507	59,838	41,565
Income taxes	18,760	99,430	61,281
Non-cash operating, investing, and financing activity:
Transfers to other assets acquired through foreclosure, net	5,744	1,812	13,110
Unfunded commitments originated	167,502	123,012	56,479
Noncash Contribution Expense	6,895	0	0
Noncash or Part Noncash Acquisition, Value of Assets Acquired	0	0	1,284,557
Non-cash liabilities acquired in acquisition	0	0	12,559
Change in unrealized (loss) gain on AFS securities, net of tax	(40,808)	6,334	(24,254)
Change in unrealized gain (loss) on junior subordinated debt, net of tax	5,693	(3,604)	(2,077)
Change in Unfunded Obligations Non Cash	$ 46,495	$ (10,495)	$ (21,225)

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of operation

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which holds and manages certain OREO properties and a captive insurance company formed and licensed under the laws of the State of Arizona, CSI. CSI was established as part of the Company's overall enterprise risk management strategy.

Basis of presentation

The accounting and reporting policies of the Company are in accordance with GAAP and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiaries are included in the Consolidated Financial Statements.

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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management's estimates and judgments are ongoing and are based on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities, as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from those estimates and assumptions used in the Consolidated Financial Statements and related notes. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses; certain assets and liabilities carried at fair value; and accounting for income taxes.

Principles of consolidation

As of December 31, 2018, WAL has the following significant wholly-owned subsidiaries: WAB, LVSP, and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.

The Bank has the following significant wholly-owned subsidiaries: WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; WA PWI, which holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; and BW Real Estate, Inc., which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities.

The Company does not have any other significant entities that should be considered for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain amounts reported in prior periods may have been reclassified in the Consolidated Financial Statements to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and customer deposit accounts are reported net.

The Company maintains amounts due from banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.

Cash reserve requirements

Depository institutions are required by law to maintain reserves against their transaction deposits. The reserves must be held in cash or with the FRB. Banks are permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total of reserve balances was approximately $145.9 million and $105.5 million as of December 31, 2018 and 2017, respectively.

Investment securities

Investment securities include debt securities and equity securities. Debt securities may be classified as HTM, AFS, or measured at fair value. The appropriate classification is initially decided at the time of purchase. Securities classified as HTM are those debt securities that the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or general economic conditions. These securities are carried at amortized cost. The sale of an HTM security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure.

Securities classified as AFS or trading securities are reported as an asset in the Consolidated Balance Sheet at their estimated fair value. As the fair value of AFS debt securities changes, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gain or loss is reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations.

For periods prior to January 1, 2018, equity securities were classified as AFS and reported at fair value with unrealized gains and losses included as a separate component of AOCI, net of tax. Upon adoption of ASU 2016-01, the fair value changes in equity securities are recognized as part of non-interest income, see "Recently adopted accounting guidance" below for further discussion.

Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security, adjusted for prepayment estimates, using the interest method.

In estimating whether there are any OTTI losses, management considers the 1) length of time and the extent to which the fair value has been less than amortized cost; 2) financial condition and near term prospects of the issuer; 3) impact of changes in market interest rates; and 4) intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and whether it is not more likely than not the Company would be required to sell the security.

Declines in the fair value of individual AFS securities that are deemed to be other-than-temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in fair value of the debt security related to 1) credit loss is recognized in earnings; and 2) interest rate, market, or other factors is recognized in other comprehensive income or loss.

For individual debt securities where the Company either intends to sell the security or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis.

Restricted stock

WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in capital stock of the FHLB based on the borrowing capacity used. The Bank also maintains an investment in its primary correspondent bank. All of these investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted investment securities. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. No impairment has been recorded to date.

Loans, held for investment

The Company generally holds loans for investment and has the intent and ability to hold loans until their maturity. Therefore, they are reported at book value. Net loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, purchase accounting fair value adjustments, and an allowance for credit losses. In addition, the book values of loans subject to a fair value hedge are adjusted for changes in value attributable to the effective portion of the hedged benchmark interest rate risk.

The Company may also acquire loans through a business combination. These acquired loans are recorded at estimated fair value on the date of purchase, which is comprised of unpaid principal adjusted for estimated credit losses and interest rate fair value adjustments. Loans are evaluated individually at the acquisition date to determine if there has been credit deterioration since origination. Such loans may then be aggregated and accounted for as a pool of loans based on common characteristics. When the Company acquires such loans, the yield that may be accreted (accretable yield) is limited to the excess of the Company’s estimate of undiscounted cash flows expected to be collected over the Company’s initial investment in the loan. The excess of contractual cash flows over the cash flows expected to be collected may not be recognized as an adjustment to yield, loss, or a valuation allowance. Subsequent increases in cash flows expected to be collected generally are recognized prospectively through adjustment of the loan’s yield over the remaining life. Subsequent decreases to cash flows expected to be collected are recognized as impairment. The Company may not carry over or create a valuation allowance in the initial accounting for loans acquired under these circumstances. For purchased loans that are not deemed impaired at the acquisition date, fair value adjustments attributable to both credit and interest rates are accreted (or amortized) over the contractual life of the individual loan. For additional information, see "Note 3. Loans, Leases and Allowance for Credit Losses" of these Notes to Consolidated Financial Statements.

Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If a loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If a loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of premiums, discounts, or net deferred fees are recognized as interest income.

Non-accrual loans: When a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. The Company ceases accruing interest income when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if the loans are well secured by collateral and in the process of collection.

For all loan types, when a loan is placed on non-accrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed, and the Company makes a loan-level decision to apply either the cash basis or cost recovery method. The Company recognizes income on a cash basis only for those non-accrual loans for which the collection of the remaining principal balance is not in doubt. Under the cost recovery method, subsequent payments received from the customer are applied to principal and generally no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required.

Impaired loans: A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310, Receivables, based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are recorded as a provision for credit losses. Losses are recorded as a charge-off when losses are confirmed. In addition to management's internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

Troubled Debt Restructured Loans: A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. A TDR loan is also considered impaired. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual restructured principal and interest is no longer in doubt. However, such loans continue to be considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains independent collateral valuation analysis for each loan every twelve months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, ten-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Transfers of financial assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed surrendered when the 1) assets have been isolated from the Company; 2) transferee obtains the right to pledge or exchange the transferred assets; and 3) Company no longer maintains effective control over the transferred assets through an agreement to repurchase the transferred assets before maturity.

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the term of the lease or the estimated life of the improvement, whichever is shorter. Depreciation and amortization is computed using the following estimated lives: 

	Years
Bank premises	31
Furniture, fixtures, and equipment	3 - 10
Leasehold improvements (1)	3 - 10

(1) Depreciation is recorded over the lesser of 3 to 10 years or the term of the lease.

Management periodically reviews premises and equipment in order to determine if facts and circumstances suggest that the value of an asset is not recoverable.

Goodwill and other intangible assets

The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired in accordance with applicable guidance. The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. The Company can first elect to assess, through qualitative factors, whether it is more likely than not that goodwill is impaired. If the qualitative assessment indicates potential impairment, a quantitative impairment test is necessary. If, based on the quantitative test, a reporting unit's carrying amount exceeds its fair value, a goodwill impairment charge for this difference is recorded to current period earnings as non-interest expense.

The Company’s intangible assets consist primarily of core deposit intangible assets that are amortized over periods ranging from 5 to 10 years. The Company considers the remaining useful lives of its core deposit intangible assets each reporting period, as required by ASC 350, Intangibles—Goodwill and Other, to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company has not revised its estimates of the useful lives of its core deposit intangibles during the years ended December 31, 2018, 2017, or 2016.

Other assets acquired through foreclosure

Other assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. Properties or other assets (primarily repossessed assets formerly leased) are classified as OREO and other repossessed property and are initially reported at fair value of the asset less estimated selling costs. Subsequent adjustments are based on the lower of carrying value or fair value less estimated costs to sell the property. Costs related to the development or improvement of the assets are capitalized and costs related to holding the assets are charged to non-interest expense. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value and valuation allowances.

Low income housing credits

The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The Company accounts for these investments using the proportional amortization method. See LIHTC section in "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion.

The Company evaluates its interests in these entities to determine if it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity. A VIE is broadly defined as an entity where either 1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or 2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIEs when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration.

The Company’s investments in qualified affordable housing projects meet the definition of a VIE as the entities do not have sufficient equity investment at risk to finance their activities without additional subordinated financial support and are structured with nonsubstantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required consolidate these entities.

Bank owned life insurance

BOLI is carried at its cash surrender value with changes recorded in other non-interest income in the Consolidated Income Statements. The face amount of the underlying policies including death benefits was $358.7 million and $360.0 million as of December 31, 2018 and 2017, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds.

Customer repurchase agreements

The Company enters into repurchase agreements with customers, whereby it pledges securities against overnight investments made from the customer’s excess collected funds. The Company records these at the amount of cash received in connection with the transaction.

Stock compensation plans

The Company has the Incentive Plan, as amended, which is described more fully in "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements. Compensation expense for stock options and non-vested restricted stock awards is based on the fair value of the award on the measurement date which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. Forfeitures are estimated at the time of the award grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of stock options. The fair value of non-vested restricted stock awards is the market price of the Company’s stock on the date of grant.

See "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements for further discussion of stock options and restricted stock awards.

Dividends

WAL is a legal entity separate and distinct from its subsidiaries. As a holding company with limited significant assets other than the capital stock of its subsidiaries, WAL's ability to pay dividends depends primarily upon the receipt of dividends or other capital distributions from its subsidiaries. The Company's subsidiaries ability to pay dividends to WAL is subject to, among other things, their individual earnings, financial condition, and need for funds, as well as federal and state governmental policies and regulations applicable to WAL and each of those subsidiaries, which limit the amount that may be paid as dividends without prior approval. In addition, the terms and conditions of other securities the Company issues may restrict its ability to pay dividends to holders of the Company's common stock. For example, if any required payments on outstanding trust preferred securities are not made, WAL would be prohibited from paying cash dividends on its common stock.

Treasury shares

The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost.

Common Stock Repurchases

On December 11, 2018, the Company adopted its common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. All shares repurchased under the plan are retired upon settlement. The Company has elected to allocate the excess of the repurchase price over the par value of its common stock between additional paid-in capital and retained earnings. The allocation of the excess repurchase price to additional paid-in capital is limited to the amount of additional paid-in capital that was recorded at the time that the shares were initially issued, which is calculated on a last-in, first-out basis. 

Derivative financial instruments

The Company uses interest-rate swaps to mitigate interest-rate risk associated with changes to the fair value of certain fixed-rate financial instruments (fair value hedges).

The Company recognizes derivatives as assets or liabilities in the Consolidated Balance Sheet at their fair value in accordance with ASC 815, Derivatives and Hedging. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk are recorded in current-period earnings. Changes in the fair value of derivatives not considered to be highly effective in hedging the change in fair value of the hedged item are recognized in earnings as non-interest income during the period of the change.

The Company documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction after the derivative contract is executed. At inception, the Company performs a quantitative assessment to determine whether the derivatives used in hedging transactions are highly effective (as defined in the guidance) in offsetting changes in the fair value of the hedged item. Retroactive effectiveness is assessed, as well as the continued expectation that the hedge will remain effective prospectively. After the initial quantitative assessment is performed, on a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty's risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. The Company discontinues hedge accounting prospectively when it is determined that a hedge is no longer highly effective. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the Consolidated Balance Sheet, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings.

Derivative instruments that are not designated as hedges, so called free-standing derivatives, are reported in the Consolidated Balance Sheet at fair value and the changes in fair value are recognized in earnings as non-interest income during the period of change.

The Company may in the normal course of business purchase a financial instrument or originate a loan that contains an embedded derivative instrument. Upon purchasing the instrument or originating the loan, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current earnings, or the Company is unable to reliably identify and measure an embedded derivative for separation from its host contract, the entire contract is carried in the Consolidated Balance Sheet at fair value and is not designated as a hedging instrument.

Off-balance sheet instruments

In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Financial Statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheet. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. 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. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for credit losses on off-balance sheet instruments is included in other liabilities and the charge to income that establishes this liability is included in non-interest expense.

The Company also has off-balance sheet arrangements related to its derivative instruments. Derivative instruments are recognized in the Consolidated Financial Statements at fair value and their notional values are carried off-balance sheet. See "Note 12. Derivatives and Hedging Activities" of these Notes to Consolidated Financial Statements for further discussion.

Business combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes all of the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including identified intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Changes to estimated fair values from a business combination are recognized as an adjustment to goodwill during the measurement period and are recognized in the proper reporting period in which the adjustment amounts are determined. Results of operations of an acquired business are included in the Consolidated Income Statement from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred.

Fair values of financial instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a three-level valuation hierarchy for disclosure of fair value measurement, as well as enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The Company uses various valuation approaches, including market, income, and/or cost approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.

• Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.

The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant who may purchase the asset or assume the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date.

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2018 and 2017. The estimated fair value amounts for December 31, 2018 and 2017 have been measured as of period-end, and have not been re-evaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end.

The information in "Note 16. Fair Value Accounting" in these Notes to Consolidated Financial Statements should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities.

Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, cash equivalents, and restricted cash

The carrying amounts reported in the Consolidated Balance Sheets for cash and due from banks approximate their fair value.

Money market investments

The carrying amounts reported in the Consolidated Balance Sheets for money market investments approximate their fair value.

Investment securities

The fair values of CRA investments, and exchange-listed preferred stock are based on quoted market prices and are categorized as Level 1 in the fair value hierarchy.

The fair values of debt securities were determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings, and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy.

Restricted stock

WAB is a member of the Federal Reserve System and the FHLB and, accordingly, maintains investments in the capital stock of the FRB and the FHLB. WAB also maintains an investment in its primary correspondent bank. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. The fair values of these investments have been categorized as Level 2 in the fair value hierarchy.

Loans

The fair value of loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality and adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy, excluding impaired loans which are categorized as Level 3.

Accrued interest receivable and payable

The carrying amounts reported in the Consolidated Balance Sheets for accrued interest receivable and payable approximate their fair value.

Derivative financial instruments

All derivatives are recognized in the Consolidated Balance Sheets at their fair value. The fair value for derivatives is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. As a result, the fair values have been categorized as Level 2 in the fair value hierarchy.

Deposits

The fair value disclosed for demand and savings deposits is by definition equal to the amount payable on demand at their reporting date (that is, their carrying amount), which the Company believes a market participant would consider in determining fair value. The carrying amount for variable-rate deposit accounts approximates their fair value. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on these deposits. The fair value measurement of the deposit liabilities is categorized as Level 2 in the fair value hierarchy.

FHLB advances and customer repurchase agreements

The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances and customer repurchase agreements have been categorized as Level 2 in the fair value hierarchy due to their short durations.

Subordinated debt

The fair value of subordinated debt is based on the market rate for the respective subordinated debt security. Subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Junior subordinated debt

Junior subordinated debt is valued based on a discounted cash flow model which uses as inputs Treasury Bond rates and the 'BB' rated financial index. Junior subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Off-balance sheet instruments

The fair value of the Company’s off-balance sheet instruments (lending commitments and standby letters of credit) is based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, and the counterparties’ credit standing.

Income taxes

The Company is subject to income taxes in the United States and files a consolidated federal income tax return with all of its subsidiaries, with the exception of BW Real Estate, Inc. Deferred income taxes are recorded to reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their income tax bases using enacted tax rates that are expected to be in effect when the taxes are actually paid or recovered. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets are recorded to the extent that these assets will more-likely-than-not be realized. In making these determinations, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. If it is determined that deferred income tax assets to be realized in the future are in excess of their net recorded amount, an adjustment to the valuation allowance will be recorded, which will reduce the Company's provision for income taxes.

A tax benefit from an unrecognized tax benefit may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including related appeals or litigation, based on technical merits. Income tax benefits must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

Interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes in the Consolidated Income Statement. Accrued interest and penalties are included in the related tax liability line with other liabilities in the Consolidated Balance Sheet. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion on income taxes.

Non-interest income

Non-interest income includes service charges and fees, income from equity investments, card income, foreign currency income, income from bank owned life insurance, lending related income, net gain or loss on sales of investment securities, net unrealized gains or losses on assets measured at fair value, and other income. Service charges and fees consist of fees earned from performance of account analysis, general account services, and other deposit account services. These fees are recognized as the related services are provided in accordance with ASC 606, Revenue from Contracts with Customers. Income from equity investments includes gains on equity warrant assets, SBIC equity income, and success fees. Card income includes fees earned from customer use of debit and credit cards, interchange income from merchants, and international charges. Card income is generally within the scope of ASC 310, Receivables; however, certain processing transactions for merchants, such as interchange fees, are within the scope of ASC 606. Beginning on October 1, 2018, interchange fees are being recorded net of customer rewards earned, which is more in line with current industry practice. Foreign currency income represents fees earned on the differential between purchases and sales of foreign currency on behalf of the Company’s clients. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Lending related income includes fees earned from gains or losses on the sale of loans, SBA income, and letter of credit fees. Gains and losses on the sale of loans and SBA income are recognized pursuant to ASC 860, Transfers and Servicing. Net unrealized gains or losses on assets measured at fair value represent fair value changes in equity securities and are accounted for in accordance with ASC 321, Investments - Equity Securities. Fees related to standby letters of credit are accounted for in accordance with ASC 440, Commitments. Other income includes operating lease income, which is recognized on a straight-line basis over the lease term in accordance with ASC 840, Leases. Net gain or loss on sales / valuations of repossessed and other assets is presented as a component of non-interest expense, but may also be presented as a component of non-interest income in the event that a net gain is recognized. Net gain or loss on sales of repossessed and other assets are accounted for in accordance with ASC 610, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. See "Note 22. Revenue from Contracts with Customers" of these Notes to Consolidated Financial Statements for further details related to the nature and timing of revenue recognition for non-interest income revenue streams within the scope of the new standard.

Recent accounting pronouncements

In February 2016, the FASB issued guidance within ASU 2016-02, Leases. The amendments in ASU 2016-02 to Topic 842, Leases, require lessees to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position, which will result in a gross up of assets and liabilities on the balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. In July 2018, the FASB issued guidance within ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842) Targeted Improvements. The amendments within ASU 2018-10 clarify how to apply certain aspects and transition adjustments of the new leases standard. The amendments within ASU 2018-11 give entities another option for transition and provide lessors with a practical expedient. The transition option allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, under this transition approach, the modified retrospective transition method still applies; however, a cumulative-effect adjustment to retained earnings is recognized in the period of adoption, rather than the earliest period presented. The amendments in these ASUs are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has substantially completed its implementation of the new lease standard. All key lease data has been gathered and input into the Company's lease software application and validation procedures over the resulting output has been performed. The Company has elected to apply the practical expedients permitting entities to forgo reassessment of 1) expired or existing contracts that may contain leases; 2) lease classification of expired or existing leases; and 3) initial direct costs for any existing leases. Upon adoption of this standard on January 1, 2019, the Company recorded a right-of-use asset and corresponding lease liability of approximately $45 million. The new standard will not have a material impact on the Company's results of operations or cash flow.

In June 2016, the FASB issued guidance within ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard significantly changes the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. The amendments in ASU 2016-13 to Topic 326, Financial Instruments - Credit Losses, require that an organization measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosures, including qualitative and quantitative disclosures that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has formed a Steering Committee and established an implementation team made up of subject matter experts across different functions within the Company, including Finance, Risk, Credit, and IT, that will coordinate and facilitate all phases of planning and implementation of the new guidance. The Company has currently identified eight portfolio segments and plans to implement six to eight models for CECL, with the expectation that its portfolio segmentation and models will continue to evolve as the Company's loan mix and composition change. The models consist of both internally-developed models and vended solutions. Model validations for four of its models are substantially complete and parallel testing of the Company's major portfolio segments is underway. The implementation team is also updating the Company's accounting policies and assessing its control framework to identify risks resulting from new processes, judgments, and data.

In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company's share-based payment awards to nonemployees consist only of grants made to the Company's BOD as compensation solely related to the individual's role as a Director. As such, in accordance with ASC 718, the Company accounts for these share-based payment awards to its Directors in the same manner as share-based payment awards for its employees. Accordingly, the amendments in this guidance will not have an effect on the accounting for the Company's share-based payment awards to its Directors.

In July 2018, the FASB issued guidance within ASU 2018-09, Codification Improvements. The amendments in ASU 2018-09 are intended to clarify or correct unintended guidance in the FASB Codification and affect a wide variety of Topics in the Codification. The topics that are applicable to the Company include: 1) debt modifications and extinguishments; 2) stock compensation; and 3) derivatives and hedging. For debt modifications and extinguishments, the amendment clarifies that, in an early extinguishment of debt for which the fair value option has been elected, the net carrying amount of the extinguished debt is equal to its fair value at the reacquisition date, and upon extinguishment, the cumulative amount of the gain or loss on the extinguished debt that resulted from changes in instrument-specific credit risk should be presented in net income. The Company has junior subordinated debt that is recorded at fair value at each reporting period due to election of the FVO. Accordingly, if in the future, the Company chooses to repay this debt prior to its contractual maturity, this amendment would be applicable. For stock compensation, the amendment clarifies that excess tax benefits or tax deficiencies should be recognized in the period in which the amount of the tax deduction is determined, which is typically when an award is exercised (in the case of share options) or vests (in the case of non-vested stock awards). The Company already records excess tax benefits or tax deficiencies in the periods in which the tax deduction is determined. Therefore, this amendment will not have an effect on the Company's accounting for excess tax benefits or tax deficiencies. For derivatives and hedging, previous guidance permits derivatives to be offset only when all four conditions (including the intent to set off) are met. This amendment clarifies that the intent to set off is not required to offset fair value amounts recognized for derivative instruments that are executed with the same counterparty under a master netting agreement. This amendment will not have an effect on the offsetting of the Company's derivative assets and liabilities. The amendments in this ASU that do not require transition guidance are effective immediately and those amendments that have transition guidance are effective for annual periods beginning after December 15, 2018.

In August 2018, the FASB issued guidance within ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments within ASU 2018-13 remove, modify, and supplement the disclosure requirements for fair value measurements. Disclosure requirements that were removed include: the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additional disclosure requirements include: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. With the exception of the above additional disclosure requirements, which will be applied prospectively, all other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In August 2018, the FASB issued guidance within ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments in this Update also require that the capitalized implementation costs of a hosting arrangement that is a service contract be expensed over the term of the hosting arrangement. Presentation requirements include: expense related to the capitalized implementation costs should be presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, payments for capitalized implementation costs in the statement of cash flows should be classified in the same manner as payments made for fees associated with the hosting element, and capitalized implementation costs in the statement of financial position should be presented in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

Recently adopted accounting guidance

In May 2014, the FASB issued guidance within ASU 2014-09, Revenue from Contracts with Customers. The amendments in ASU 2014-09 to ASC 606, Revenue from Contracts with Customers, creates a common revenue standard and clarifies the principles for recognizing revenue that can be applied consistently across various transactions, industries, and capital markets. The amendments in the ASU clarify 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. As part of that principle, the entity should identify the contract(s) with the customer, identify the performance obligation(s) of the contract, determine the transaction price, allocate that transaction price to the performance obligation(s) of the contract, and then recognize revenue when or as the entity satisfies the performance obligation(s). The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method. Substantially all of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of this guidance. The contracts that are within the scope of this guidance include service charges and fees on deposit accounts, certain types of card income, and success fees earned from equity investments. The Company completed its review of contracts and other agreements that are within the scope of this guidance and did not identify any material changes to the timing or amount of revenue recognition. Accordingly, the Company did not recognize an adjustment to retained earnings upon adoption of this guidance. The Company’s accounting policies did not change materially since the principles of revenue recognition in the ASU are largely consistent with current practices applied by the Company. The Company has expanded its qualitative disclosures of performance obligations and disaggregation of significant categories of revenue. See "Note 22. Revenue from Contracts with Customers" for further discussion.

In January 2016, the FASB issued guidance within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in ASU 2016-01 to Subtopic 825-10, Financial Instruments, contain the following elements: 1) requires equity investments to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) requires an entity to present separately in OCI the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or accompanying notes to the financial statements; 7) clarifies that the entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity's other deferred tax assets. Effective on January 1, 2015, the Company adopted the amendment noted in item 5) above as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Effective on January 1, 2018, the Company adopted the other amendments in this guidance. The primary impact on the Company's Consolidated Financial Statements results from the amendments discussed in item 1) above as changes in the fair value of the Company's equity investments are now recognized in net income, rather than in AOCI. As of January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.4 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings. During the year ended December 31, 2018, the Company recognized a loss of $3.6 million related to fair value changes in equity securities still held at the reporting date, which was recorded in the Consolidated Income Statement.

In August 2016, the FASB issued guidance within ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in ASU 2016-15 to Topic 230, Statement of Cash Flows, provide guidance on eight specific cash flow classification issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investments; 7) beneficial interest in securitization transactions; and 8) separately identifiable cash flows and the application of the predominance principle. The adoption of this guidance did not have a significant impact on the Company's Consolidated Statement of Cash Flows.

In January 2017, the FASB issued guidance within ASU 2017-01, Clarifying the Definition of a Business. The amendments in ASU 2017-01 to Topic 805, Business Combinations, clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In January 2017, the FASB issued guidance within ASU 2017-04, Simplifying the Test for Goodwill Impairment. The amendments in ASU 2017-04 to Topic 350, Intangibles - Goodwill and Other, modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Accordingly, the amendments eliminate Step 2 from the goodwill impairment test because goodwill impairment will no longer be determined by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In February 2017, the FASB issued guidance within ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in ASU 2017-05 to Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, clarify the scope of Subtopic 610-20 and add guidance for partial sales of nonfinancial assets, including partial sales of real estate. Under current GAAP, there are several different accounting models to evaluate whether the transfer of certain assets qualify for sale treatment. The new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In May 2017, the FASB issued guidance within ASU 2017-09, Scope of Modification Accounting. The amendments in ASU 2017-09 to Topic 718, Compensation - Stock Compensation, provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following conditions are met: 1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In February 2018, the FASB issued guidance within ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under current GAAP, the effect of a change in tax laws or rates on deferred tax liabilities and assets are included in income from continuing operations even in situations in which the related income tax effects of items in AOCI were originally recognized in comprehensive income. Accordingly, as the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate is required to be included in income from continuing operations, the tax effects of items within AOCI do not reflect the current tax rate. The amendments in ASU 2018-02 to Topic 220, Income Statement - Reporting Comprehensive Income, allow a reclassification from AOCI to retained earnings from tax effects resulting from the TCJA. The Company elected to adopt this guidance effective January 1, 2018 and recorded a cumulative-effect adjustment of $0.7 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings.

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Investment Securities

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investment Securities

2. INVESTMENT SECURITIES

The carrying amounts and fair values of investment securities at December 31, 2018 and 2017 are summarized as follows: 

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	302,905	$	3,163	$	(7,420	)	$	298,648
Available-for-sale debt securities
CDO	$	50	$	15,277	$	—		$	15,327
Commercial MBS issued by GSEs	106,385		82		(6,361		)	100,106
Corporate debt securities	105,029		—		(5,649		)	99,380
Private label residential MBS	948,161		945		(24,512		)	924,594
Residential MBS issued by GSEs	1,564,181		1,415		(35,472		)	1,530,124
Tax-exempt	542,086		4,335		(7,753		)	538,668
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	40,000		—		(1,812		)	38,188
U.S. treasury securities	1,996		—		(12		)	1,984
Total AFS debt securities	$	3,339,888	$	22,054	$	(84,954	)	$	3,276,988
Equity securities (1)
CRA investments	$	52,210	$	—	$	(1,068	)	$	51,142
Preferred stock	65,954		148		(2,183		)	63,919
Total equity securities	$	118,164	$	148	$	(3,251	)	$	115,061

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	255,050	$	4,514	$	(3,250	)	$	256,314
Available-for-sale debt securities
CDO	$	50	$	21,807	$	—		$	21,857
Commercial MBS issued by GSEs	113,069		46		(4,038		)	109,077
Corporate debt securities	105,044		261		(1,822		)	103,483
Private label residential MBS	874,261		756		(6,493		)	868,524
Residential MBS issued by GSEs	1,719,188		810		(30,703		)	1,689,295
Tax-exempt	501,988		10,893		(1,971		)	510,910
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	64,000		—		(2,538		)	61,462
U.S. treasury securities	2,496		—		(14		)	2,482
Available-for-sale equity securities (1)
CRA investments	51,133		—		(517		)	50,616
Preferred stock	52,172		1,160		(136		)	53,196
Total AFS securities	$	3,515,401	$	35,733	$	(51,615	)	$	3,499,519

(1) The Company's equity securities consist of CRA investments and preferred stock. Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

The Company conducts an OTTI analysis on a quarterly basis. The initial indication of OTTI is a decline in the market value below the amount recorded for an investment, and taking into account the severity and duration of the decline. Another potential indication of OTTI is a downgrade below investment grade. In determining whether an impairment is OTTI, the Company considers the length of time and the extent to which the market value has been below cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

For debt securities, for the purpose of an OTTI analysis, the Company also considers the cause of the price decline (general level of interest rates, credit spreads, and industry and issuer-specific factors), whether downgrades by bond rating agencies have occurred, the issuer’s financial condition, near-term prospects, and current ability to make future payments in a timely manner, as well as the issuer’s ability to service debt, and any change in agencies’ ratings at the evaluation date from the acquisition date and any likely imminent action.

At December 31, 2018 and 2017, the Company’s unrealized losses relate primarily to market interest rate increases since the securities' original purchase date. The total number of AFS securities in an unrealized loss position at December 31, 2018 is 373, compared to 302 at December 31, 2017. The Company has reviewed securities for which there is an unrealized loss in accordance with its accounting policy for OTTI described above and determined that there are no impairment charges for the years ended December 31, 2018, 2017, and 2016. The Company does not consider any securities to be other-than-temporarily impaired as of December 31, 2018 and 2017. No assurance can be made that OTTI will not occur in future periods.

Information pertaining to securities with gross unrealized losses at December 31, 2018 and 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 

	December 31, 2018
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	3,868	$	91,095	$	3,552	$	69,991	$	7,420	$	161,086
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	—	$	—	$	6,361	$	98,275	$	6,361	$	98,275
Corporate debt securities	16		5,013		5,633		94,367		5,649		99,380
Private label residential MBS	5,173		217,982		19,339		537,316		24,512		755,298
Residential MBS issued by GSEs	1,363		141,493		34,109		1,215,490		35,472		1,356,983
Tax-exempt	3,562		209,767		4,191		72,382		7,753		282,149
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	—		—		1,812		38,188		1,812		38,188
U.S. treasury securities	—		—		12		1,984		12		1,984
Total AFS securities	$	10,114	$	574,255	$	74,840	$	2,086,619	$	84,954	$	2,660,874

	December 31, 2017
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	3,250	$	107,921	$	—	$	—	$	3,250	$	107,921
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	161	$	13,565	$	3,877	$	93,641	$	4,038	$	107,206
Corporate debt securities	1,398		78,602		424		19,576		1,822		98,178
Private label residential MBS	3,115		480,885		3,378		188,710		6,493		669,595
Residential MBS issued by GSEs	13,875		999,478		16,828		523,270		30,703		1,522,748
Tax-exempt	17		6,159		1,954		69,674		1,971		75,833
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	14		4,986		2,524		56,476		2,538		61,462
U.S. treasury securities	14		2,482		—		—		14		2,482
Available-for-sale equity securities
CRA investments	$	—	$	—	$	517	$	50,616	$	517	$	50,616
Preferred stock	136		7,357		—		—		136		7,357
Total AFS securities	$	18,730	$	1,593,514	$	32,885	$	1,030,580	$	51,615	$	2,624,094

The amortized cost and fair value of securities as of December 31, 2018, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.

	December 31, 2018
	Amortized Cost		Estimated Fair Value
	(in thousands)
Held-to-maturity
Due in one year or less	$	11,300	$	11,317
After one year through five years	—		—
After five years through ten years	14,493		14,845
After ten years	277,112		272,486
Total HTM securities	$	302,905	$	298,648
Available-for-sale
Due in one year or less	$	3,306	$	3,327
After one year through five years	12,063		12,112
After five years through ten years	216,197		210,070
After ten years	489,595		496,655
Mortgage-backed securities	2,618,727		2,554,824
Total AFS securities	$	3,339,888	$	3,276,988

The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2018 and 2017:

	December 31, 2018
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	302,905	$	302,905
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		—		—		—		—		100,106
Corporate debt securities	—		—		—		66,515		32,865		—		—		99,380
Private label residential MBS	887,520		—		34,342		343		947		1,442		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		—		—		—		—		1,530,124
Tax-exempt	66,160		12,146		306,409		152,330		—		—		1,623		538,668
Trust preferred securities	—		—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—		38,188		—		—		—		—		—		38,188
U.S. treasury securities	—		1,984		—		—		—		—		—		1,984
Total AFS securities (1)	$	953,680	$	1,682,548	$	340,751	$	219,188	$	62,429	$	16,769	$	1,623	$	3,276,988
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	25,767	$	51,142
Preferred stock	—		—		—		—		45,771		3,693		14,455		63,919
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	45,771	$	3,693	$	40,222	$	115,061

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

	December 31, 2017
	AAA			Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—		$	—	$	—	$	—	$	—	$	—	$	255,050	$	255,050
Available-for-sale debt securities
CDO	$	—		$	—	$	—	$	—	$	—	$	21,857	$	—	$	21,857
Commercial MBS issued by GSEs	—			109,077		—		—		—		—		—		109,077
Corporate debt securities	—			—		—		74,293		29,190		—		—		103,483
Private label residential MBS	809,242			—		55,161		1,350		931		1,840		—		868,524
Residential MBS issued by GSEs	—			1,689,295		—		—		—		—		—		1,689,295
Tax-exempt	64,893			25,280		249,200		167,994		—		—		3,543		510,910
Trust preferred securities	—			—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—			61,462		—		—		—		—		—		61,462
U.S. treasury securities	—			2,482		—		—		—		—		—		2,482
Available-for-sale equity securities
CRA investments	—			25,349		—		—		—		—		25,267		50,616
Preferred stock	—			—		—		10,388		23,822		4,104		14,882		53,196
Total AFS securities (1)	$	874,135	—	$	1,912,945	$	304,361	$	254,025	$	82,560	$	27,801	$	43,692	$	3,499,519

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

Securities with carrying amounts of approximately $788.4 million and $913.7 million at December 31, 2018 and 2017, respectively, were pledged for various purposes as required or permitted by law.

The following table presents gross gains and losses on sales of investment securities: 

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Available-for-sale securities
Gross gains	$	8,074		$	3,204		$	2,115
Gross losses	(7,738		)	(861		)	(1,056		)
Net gains (losses)	$	336		$	2,343		$	1,059
Equity securities (1)
Gross gains	$	—		$	—		$	—
Gross losses	(7,992		)	—			—
Net (losses) gains	$	(7,992	)	$	—		$	—

(1) The Company's equity securities consist of CRA investments and preferred stock. Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

During the year ended December 31, 2018, the Company sold certain available-for-sale securities with a carrying value of $119.8 million and recognized a loss on sale of these securities of $7.7 million. The sales resulted from management’s review of its investment portfolio, which led to its decision to sell lower yielding securities and reinvest in securities with higher yields and shorter durations. With the exception of these transactions, management does not intend to sell any of its debt securities in an unrealized loss position in the foreseeable future and it is more-likely-than-not that the Company will not be required to sell these securities prior to recovery.

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Loans, Leases and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Loans, Leases and Allowance for Credit Losses

3. LOANS, LEASES AND ALLOWANCE FOR CREDIT LOSSES

The composition of the Company’s held for investment loan portfolio is as follows:

	December 31,
	2018			2017
	(in thousands)
Commercial and industrial	$	7,762,642		$	6,841,381
Commercial real estate - non-owner occupied	4,213,428			3,904,011
Commercial real estate - owner occupied	2,325,380			2,241,613
Construction and land development	2,134,753			1,632,204
Residential real estate	1,204,355			425,940
Consumer	70,071			48,786
Loans, net of deferred loan fees and costs	17,710,629			15,093,935
Allowance for credit losses	(152,717		)	(140,050		)
Total loans HFI	$	17,557,912		$	14,953,885

Net deferred loan fees and costs as of December 31, 2018 and 2017 total $36.3 million and $25.3 million, respectively, which is a reduction in the carrying value of loans. Net unamortized purchase discounts on secondary market loan purchases total $2.0 million and $8.5 million as of December 31, 2018 and 2017, respectively. Total loans held for investment are also net of interest rate and credit marks on acquired loans, which are a net reduction in the carrying value of loans. Interest rate marks were $7.1 million and $14.1 million as of December 31, 2018 and 2017, respectively. Credit marks were $14.6 million and $27.0 million as of December 31, 2018 and 2017, respectively.

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,753,111	$	3,187	$	416	$	5,928	$	9,531	$	7,762,642
Commercial real estate
Owner occupied	2,320,321		4,441		—		618		5,059		2,325,380
Non-owner occupied	4,051,837		—		—		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,382,664		—		—		—		—		1,382,664
Land	751,613		—		476		—		476		752,089
Residential real estate	1,182,933		9,316		4,010		8,096		21,422		1,204,355
Consumer	69,830		—		—		241		241		70,071
Total loans	$	17,673,900	$	16,944	$	4,902	$	14,883	$	36,729	$	17,710,629

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	6,835,385	$	2,245	$	669	$	3,082	$	5,996	$	6,841,381
Commercial real estate
Owner occupied	2,240,457		1,026		—		130		1,156		2,241,613
Non-owner occupied	3,696,729		2,993		—		2,847		5,840		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,090,176		—		—		—		—		1,090,176
Land	536,917		—		—		5,111		5,111		542,028
Residential real estate	411,857		6,874		1,487		5,722		14,083		425,940
Consumer	48,408		83		213		82		378		48,786
Total loans	$	15,061,371	$	13,221	$	2,369	$	16,974	$	32,564	$	15,093,935

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	December 31, 2018								December 31, 2017
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial and industrial	$	7,639	$	7,451	$	15,090	$	—	$	17,913	$	4,113	$	22,026	$	43
Commercial real estate
Owner occupied	—		—		—		594		1,089		792		1,881		—
Non-owner occupied	—		—		—		—		—		5,840		5,840		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	—		476		476		—		—		—		—		—
Land	—		—		—		—		868		5,111		5,979		—
Residential real estate	552		11,387		11,939		—		2,039		6,078		8,117		—
Consumer	—		241		241		—		—		82		82		—
Total	$	8,191	$	19,555	$	27,746	$	594	$	21,909	$	22,016	$	43,925	$	43

The reduction in interest income associated with loans on non-accrual status was approximately $2.3 million, $2.4 million, and $2.0 million for the years ended December 31, 2018, 2017, and 2016, respectively.

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as Special Mention, Substandard, Doubtful, and Loss. Substandard loans include those characterized by well-defined weaknesses and carry the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful, or risk rated eight, have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The final rating of Loss covers loans considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that warrant management’s close attention, are deemed to be Special Mention. Risk ratings are updated, at a minimum, quarterly.

The following tables present gross loans by risk rating: 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,574,506	$	61,202	$	126,356	$	578	$	—	$	7,762,642
Commercial real estate
Owner occupied	2,255,513		12,860		57,007		—		—		2,325,380
Non-owner occupied	4,030,350		12,982		8,505		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,378,624		1,210		2,830		—		—		1,382,664
Land	751,012		—		1,077		—		—		752,089
Residential real estate	1,191,571		527		12,257		—		—		1,204,355
Consumer	69,755		75		241		—		—		70,071
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	17,400,616	$	87,264	$	186,020	$	—	$	—	$	17,673,900
Past due 30 - 59 days	11,255		1,580		4,109		—		—		16,944
Past due 60 - 89 days	719		12		3,767		404		—		4,902
Past due 90 days or more	332		—		14,377		174		—		14,883
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	6,675,574	$	85,781	$	76,328	$	3,698	$	—	$	6,841,381
Commercial real estate
Owner occupied	2,149,465		43,122		48,397		629		—		2,241,613
Non-owner occupied	3,676,711		11,166		14,692		—		—		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,072,342		4,477		13,357		—		—		1,090,176
Land	535,412		637		5,979		—		—		542,028
Residential real estate	408,527		8,971		8,442		—		—		425,940
Consumer	47,824		878		84		—		—		48,786
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	14,758,149	$	154,295	$	145,934	$	2,993	$	—	$	15,061,371
Past due 30 - 59 days	7,966		518		4,737		—		—		13,221
Past due 60 - 89 days	1,182		219		968		—		—		2,369
Past due 90 days or more	—		—		15,640		1,334		—		16,974
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

The table below reflects the recorded investment in loans classified as impaired: 

	December 31,
	2018			2017
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	986		$	19,315
Impaired loans without a specific valuation allowance under ASC 310 (2)	111,266			79,239
Total impaired loans	$	112,252		$	98,554
Valuation allowance related to impaired loans (3)	$	(681	)	$	(5,606	)

(1) Includes TDR loans of zero and $3.7 million at December 31, 2018 and 2017, respectively.

(2) Includes TDR loans of $44.5 million and $48.8 million at December 31, 2018 and 2017, respectively.

(3) Includes valuation allowance related to TDR loans of zero and $1.2 million at December 31, 2018 and 2017, respectively.

The following table presents impaired loans by class: 

	December 31,
	2018		2017
	(in thousands)
Commercial and industrial	$	63,896	$	34,156
Commercial real estate
Owner occupied	6,530		10,430
Non-owner occupied	12,407		21,251
Multi-family	—		—
Construction and land development
Construction	—		—
Land	9,403		15,426
Residential real estate	19,744		17,170
Consumer	272		121
Total	$	112,252	$	98,554

A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are charged-off to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table above as “Impaired loans without a specific valuation allowance under ASC 310.” However, before concluding that an impaired loan needs no associated valuation allowance, an assessment is made to consider all available and relevant information for the method used to evaluate impairment and the type of loan being assessed. The valuation allowance disclosed above is included in the allowance for credit losses reported in the Consolidated Balance Sheets as of December 31, 2018 and 2017.

The following table presents the average investment in impaired loans and income recognized on impaired loans: 

		Year Ended December 31,
		2018		2017		2016
	(in thousands)
Average balance on impaired loans		$	104,825	$	104,866	$	109,461
Interest income recognized on impaired loans		4,490		4,046		4,167
Interest recognized on non-accrual loans, cash basis		1,745		1,614		1,254

The following table presents average investment in impaired loans by loan class: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Commercial and industrial	$	52,496	$	33,519	$	26,577
Commercial real estate
Owner occupied	7,682		18,692		18,865
Non-owner occupied	15,375		22,000		30,633
Multi-family	—		—		—
Construction and land development
Construction	—		—		—
Land	9,547		13,558		17,006
Residential real estate	19,425		16,893		16,096
Consumer	300		204		284
Total	$	104,825	$	104,866	$	109,461

The average investment in TDR loans included in the average investment in impaired loans table above for the years ended December 31, 2018, 2017, and 2016 was $51.2 million, $55.5 million, and $68.8 million, respectively.

The following table presents interest income on impaired loans by class: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Commercial and industrial	$	2,113	$	1,077	$	727
Commercial real estate
Owner occupied	491		677		849
Non-owner occupied	937		1,074		1,196
Multi-family	—		—		—
Construction and land development
Construction	—		—		—
Land	566		699		830
Residential real estate	381		516		560
Consumer	2		3		5
Total	$	4,490	$	4,046	$	4,167

The Company is not committed to lend significant additional funds on these impaired loans.

The following table summarizes nonperforming assets: 

	December 31,
	2018		2017
	(in thousands)
Non-accrual loans (1)	$	27,746	$	43,925
Loans past due 90 days or more on accrual status (2)	594		43
Accruing troubled debt restructured loans	36,458		42,431
Total nonperforming loans	64,798		86,399
Other assets acquired through foreclosure, net	17,924		28,540
Total nonperforming assets	$	82,722	$	114,939

(1) Includes non-accrual TDR loans of $8.0 million and $10.1 million at December 31, 2018 and 2017, respectively.

(2) Includes less than $0.1 million from loans acquired with deteriorated credit quality at December 31, 2017.

Loans Acquired with Deteriorated Credit Quality

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Balance, at beginning of period	$	9,324		$	15,177		$	15,925
Additions due to acquisition	—			—			4,301
Reclassifications from non-accretable to accretable yield (1)	683			2,086			1,892
Accretion to interest income	(1,018		)	(2,797		)	(3,439		)
Reversal of fair value adjustments upon disposition of loans	(5,222		)	(5,142		)	(3,502		)
Balance, at end of period	$	3,768		$	9,324		$	15,177

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

Allowance for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Year Ended December 31,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2018
Beginning Balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
Charge-offs	1			233			1,038			15,034			114			16,420
Recoveries	(1,433		)	(1,237		)	(947		)	(2,427		)	(43		)	(6,087		)
Provision	1,482			2,177			5,867			13,198			276			23,000
Ending balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			2,269			447			8,186			102			11,004
Recoveries	(1,229		)	(2,897		)	(1,778		)	(3,112		)	(84		)	(9,100		)
Provision	(2,805		)	5,347			318			14,268			122			17,250
Ending balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
2016
Beginning Balance	$	18,976		$	23,160		$	5,278		$	71,181		$	473		$	119,068
Charge-offs	18			728			165			12,477			161			13,549
Recoveries	(485		)	(5,690		)	(875		)	(3,991		)	(144		)	(11,185		)
Provision	1,732			(2,449		)	(2,137		)	10,638			216			8,000
Ending balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704

The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2018
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	623	$	363	$	—	$	—	$	986
Impaired loans with no allowance recorded	6,530		12,407		63,273		19,381		9,403		272		111,266
Total loans individually evaluated for impairment	6,530		12,407		63,896		19,744		9,403		272		112,252
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	3,979		79,557		—		19		—		—		83,555
Total recorded investment	$	2,325,380	$	4,213,428	$	7,762,642	$	1,204,355	$	2,134,753	$	70,071	$	17,710,629
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	1,482	$	363	$	—	$	—	$	1,845
Impaired loans with no allowance recorded	11,852		18,155		103,992		27,979		25,624		10,632		198,234
Total loans individually evaluated for impairment	11,852		18,155		105,474		28,342		25,624		10,632		200,079
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	5,315		95,680		4,352		72		—		—		105,419
Total unpaid principal balance	$	2,332,038	$	4,235,299	$	7,808,572	$	1,213,006	$	2,150,974	$	80,431	$	17,820,320
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	621	$	60	$	—	$	—	$	681
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		621		60		—		—		681
Loans collectively evaluated for impairment	14,286		20,456		82,488		11,216		22,513		981		151,940
Loans acquired with deteriorated credit quality	—		87		9		—		—		—		96
Total allowance for credit losses	$	14,286	$	20,543	$	83,118	$	11,276	$	22,513	$	981	$	152,717

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2017
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	19,315	$	—	$	—	$	—	$	19,315
Impaired loans with no allowance recorded	10,430		21,250		14,842		17,170		15,426		121		79,239
Total loans individually evaluated for impairment	10,430		21,250		34,157		17,170		15,426		121		98,554
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	9,569		105,542		43		601		—		—		115,755
Total recorded investment	$	2,241,613	$	3,904,011	$	6,841,381	$	425,940	$	1,632,204	$	48,786	$	15,093,935
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	20,795	$	—	$	—	$	—	$	20,795
Impaired loans with no allowance recorded	17,459		28,028		42,261		26,057		32,289		10,695		156,789
Total loans individually evaluated for impairment	17,459		28,028		63,056		26,057		32,289		10,695		177,584
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	12,619		128,440		3,146		720		—		—		144,925
Total unpaid principal balance	$	2,251,692	$	3,933,687	$	6,873,383	$	434,946	$	1,649,067	$	59,360	$	15,202,135
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	5,606	$	—	$	—	$	—	$	5,606
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		5,606		—		—		—		5,606
Loans collectively evaluated for impairment	13,884		16,135		76,919		5,500		19,599		776		132,813
Loans acquired with deteriorated credit quality	—		1,629		2		—		—		—		1,631
Total allowance for credit losses	$	13,884	$	17,764	$	82,527	$	5,500	$	19,599	$	776	$	140,050

Troubled Debt Restructurings

A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. The majority of the Company's modifications are extensions in terms or deferral of payments which result in no lost principal or interest followed by reductions in interest rates or accrued interest. A TDR loan is also considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

The following table presents information on the financial effects of TDR loans by class for the periods presented:

	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	35,132	$	—	$	—	$	35,132	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	294		—		—		294		—
Consumer	—	—		—		—		—		—
Total	12	$	35,426	$	—	$	—	$	35,426	$	—

	Year Ended December 31, 2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	3,513	$	—	$	—	$	3,513	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	3	2,993		—		—		2,993		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	122		—		—		122		—
Consumer	—	—		—		—		—		—
Total	15	$	6,628	$	—	$	—	$	6,628	$	—

	Year Ended December 31, 2016
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	2	$	2,405	$	—	$	—	$	2,405	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	2	$	2,405	$	—	$	—	$	2,405	$	—

The following table presents TDR loans by class for which there was a payment default during the period: 

	Year Ended December 31,
	2018			2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	1	$	87	—	$	—
Commercial real estate
Owner occupied	—	—		1	135		—	—
Non-owner occupied	—	—		1	308		1	5,381
Multi-family	—	—		—	—		—	—
Construction and land development
Construction	—	—		2	1,119		—	—
Land	—	—		—	—		—	—
Residential real estate	—	—		1	48		2	408
Consumer	—	—		—	—		—	—
Total	—	$	—	6	$	1,697	3	$	5,789

A TDR loan is deemed to have a payment default when it becomes past due 90 days, goes on non-accrual, or is restructured again. Payment defaults, along with other qualitative indicators, are considered by management in the determination of the allowance for credit losses.

At December 31, 2018 commitments outstanding on TDR loans totaled $1.5 million. There were no loan commitments outstanding on TDR loans at December 31, 2017.

Loan Purchases and Sales

Total secondary market loan purchases during the years ended December 31, 2018 and 2017, totaled $1.60 billion and $908.1 million, respectively. For 2018, these purchased loans consisted of $883.2 million of residential real estate loans, $690.1 million of commercial and industrial loans, and $27.5 million of construction loans. For 2017, total purchased loans consisted of $696.6 million of commercial and industrial loans and $211.5 million of residential real estate loans.

During the year ended December 31, 2018, the Company sold loans which primarily consisted of commercial and industrial loans with a carrying value of $66.5 million and recognized a gain of $2.6 million on the sales. During the year ended December 31, 2017, the Company sold loans, which consisted primarily of commercial and industrial loans with a carrying value of $170.9 million and recognized a gain of $0.9 million on the sales.

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Premises and Equipment (Notes)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

4. PREMISES AND EQUIPMENT

 The following is a summary of the major categories of premises and equipment:

	December 31,
	2018			2017
	(in thousands)
Bank premises	$	89,930		$	89,411
Land and improvements	32,954			32,953
Furniture, fixtures, and equipment	42,729			37,098
Leasehold improvements	25,919			23,707
Construction in progress	6,302			1,415
Total	197,834			184,584
Accumulated depreciation and amortization	(78,360		)	(65,865		)
Premises and equipment, net	$	119,474		$	118,719

Lease Obligations

The Company leases certain premises and equipment under non-cancelable operating leases expiring through 2030. The following is a schedule of future minimum rental payments under these leases at December 31, 2018: 

	(in thousands)
2019	$	11,370
2020	10,322
2021	7,418
2022	6,294
2023	6,070
Thereafter	15,417
Total future minimum rental payments	$	56,891

The Company leases certain office locations and many of these leases contain multiple renewal options and provisions for increased rents. Total rent expense of $11.0 million, $10.4 million, and $11.0 million is included in occupancy expense for the years ended December 31, 2018, 2017, and 2016, respectively. Total depreciation expense of $10.6 million, $9.9 million, and $9.2 million is included in occupancy expense for the years ended December 31, 2018, 2017, and 2016, respectively.

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Other Assets Acquired Through Foreclosure

12 Months Ended

Dec. 31, 2018

Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]

Other Assets Acquired Through Foreclosure

5. OTHER ASSETS ACQUIRED THROUGH FORECLOSURE

The following table represents the changes in other assets acquired through foreclosure: 

	Year Ended December 31,
	2018
	Gross Balance			Valuation Allowance			Net Balance
	(in thousands)
Balance, beginning of period	$	32,552		$	(4,012	)	$	28,540
Transfers to other assets acquired through foreclosure, net	5,744			—			5,744
Proceeds from sale of other real estate owned and repossessed assets, net	(12,636		)	3,224			(9,412		)
Charitable contribution (1)	(6,895		)	—			(6,895		)
Valuation adjustments, net	—			(1,267		)	(1,267		)
Gains (losses), net (2)	1,214			—			1,214
Balance, end of period	$	19,979		$	(2,055	)	$	17,924
	2017
Balance, beginning of period	$	54,138		$	(6,323	)	$	47,815
Transfers to other assets acquired through foreclosure, net	1,812			—			1,812
Proceeds from sale of other real estate owned and repossessed assets, net	(23,626		)	2,431			(21,195		)
Valuation adjustments, net	—			(120		)	(120		)
Gains (losses), net (2)	228			—			228
Balance, end of period	$	32,552		$	(4,012	)	$	28,540
	2016
Balance, beginning of period	$	52,984		$	(9,042	)	$	43,942
Transfers to other assets acquired through foreclosure, net	13,110			—			13,110
Proceeds from sale of other real estate owned and repossessed assets, net	(11,584		)	2,451			(9,133		)
Valuation adjustments, net	—			268			268
(Losses) gains, net (2)	(372		)	—			(372		)
Balance, end of period	$	54,138		$	(6,323	)	$	47,815

(1) Represents a contribution of OREO property to the Company's charitable foundation. See "Note 19. Related Party Transactions" for further discussion.

(2) Includes net gains related to initial transfers to other assets of $1.0 million, $0.1 million, and $0.4 million during the years ended December 31, 2018, 2017, and 2016, respectively.

At December 31, 2018 and 2017, the majority of the Company’s repossessed assets consisted of properties located in Nevada and California. The Company held 11 properties at December 31, 2018, compared to 19 at December 31, 2017.

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Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Notes)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill of $289.9 million as of December 31, 2018, which has been allocated to the Nevada, Northern California, Technology & Innovation, and HFF operating segments.

The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. During the years ended December 31, 2018, 2017, and 2016, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary and, based on the Company's annual goodwill and intangibles impairment tests as of October 1 of each of these years, it was determined that goodwill and intangible assets are not impaired.

The following is a summary of the Company's acquired intangible assets:

	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	5,737	$	8,910	$	14,647	$	4,144	$	10,503
	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

As of December 31, 2018, the Company's core deposit intangible assets had a weighted average estimated useful life of 6.5 years. The Company's remaining core deposit intangible assets consist of those acquired in the acquisition of Bridge and are being amortized using an accelerated amortization method over a period of 10 years. Amortization expense recognized on amortizable intangibles totaled $1.6 million, $2.1 million, and $2.8 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Below is a summary of future estimated aggregate amortization expense:

	December 31, 2018
	(in thousands)
2019	$	1,547
2020	1,494
2021	1,433
2022	1,364
2023	1,289
Thereafter	1,783
Total	$	8,910

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Deposits (Notes)

12 Months Ended

Dec. 31, 2018

Deposit [Abstract]

Deposits [Abstract]

7. DEPOSITS

The table below summarizes deposits by type: 

	December 31,
	2018		2017
	(in thousands)
Non-interest-bearing demand deposits	$	7,456,141	$	7,433,962
Interest-bearing transaction accounts	2,555,609		1,586,209
Savings and money market accounts	7,330,709		6,330,977
Time certificates of deposit ($250,000 or more)	1,009,900		713,654
Other time deposits	825,088		907,730
Total deposits	$	19,177,447	$	16,972,532

The summary of the contractual maturities for all time deposits as of December 31, 2018 is as follows: 

	December 31,
	(in thousands)
2019	$	1,707,065
2020	101,572
2021	21,336
2022	1,854
2023	3,161
Total	$	1,834,988

WAB is a participant in the Promontory Interfinancial Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. Federal banking law and regulation places restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship-based and are at a greater risk of being withdrawn, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts. At December 31, 2018 and 2017, the Company had $322.9 million and $401.4 million, respectively, of reciprocal CDARS deposits and $706.9 million and $617.9 million, respectively, of ICS deposits. At December 31, 2018 and 2017, the Company had $718.2 million and $67.3 million, respectively, of wholesale brokered deposits. In addition, non-interest-bearing deposits for which the Company provides account holders with earnings credits totaled $2.29 billion and $1.85 billion at December 31, 2018 and 2017, respectively. The Company incurred $18.0 million and $8.7 million in deposit related costs on these deposits during the year ended December 31, 2018 and 2017, respectively.

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Other Borrowings

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Other Borrowings

8. OTHER BORROWINGS

The following table summarizes the Company’s borrowings as of December 31, 2018 and 2017: 

	December 31,
	2018		2017
	(in thousands)
Short-Term:
Federal funds purchased	$	256,000	$	—
FHLB advances	235,000		390,000
Total short-term borrowings	$	491,000	$	390,000

The Company maintains unsecured lines of credit with correspondent banks totaling $715.0 million as of December 31, 2018. Federal fund lines of credit, totaling $670.0 million, have a rate comparable to the federal funds effective rate plus 0.10% to 0.20% and the Company's other $45.0 million line of credit has a floating interest rate of one-month LIBOR plus 3.25%. As of December 31, 2018 and 2017, outstanding balances on the Company's lines of credit consisted of federal funds purchased of $256.0 million and zero, respectively.

The Company maintains secured lines of credit with the FHLB and the FRB. The Company’s borrowing capacity is determined based on collateral pledged, generally consisting of investment securities and loans, at the time of the borrowing. At December 31, 2018, the Company had $235.0 million in short-term FHLB overnight advances, with an interest rate of 2.56%. At December 31, 2017, short-term FHLB advances of $390.0 million had an interest rate of 1.41%.

Other short-term borrowing sources available to the Company include customer repurchase agreements, which have an average rate of 0.15%. As of December 31, 2018 and 2017, customer repurchase agreements totaled $22.4 million and $26.0 million, respectively.

As of December 31, 2018 and 2017, the Company had additional available credit with the FHLB of approximately $2.52 billion and $1.91 billion, respectively, and with the FRB of approximately $1.31 billion and $1.11 billion, respectively.

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Qualifying Debt Qualifying Debt (Notes)

12 Months Ended

Dec. 31, 2018

Qualifying Debt Disclosure [Abstract]

Subordinated Borrowings Disclosure [Text Block]

9. QUALIFYING DEBT

Subordinated Debt

The Parent has $175.0 million of subordinated debentures, which were recorded net of issuance costs of $5.5 million, and mature July 1, 2056. Beginning on or after July 1, 2021, the Company may redeem the debentures, in whole or in part, at their principal amount plus any accrued and unpaid interest. The debentures have a fixed interest rate of 6.25% per annum.

WAB has $150.0 million of subordinated debt, which was recorded net of debt issuance costs of $1.8 million, and matures July 15, 2025. The subordinated debt has a fixed interest rate of 5.00% through June 30, 2020 and then converts to a variable rate of 3.20% plus three-month LIBOR through maturity.

To hedge the interest rate risk on the Company's subordinated debt issuances, the Company entered into fair value interest rate hedges with receive fixed/pay variable swaps.

The carrying value of all subordinated debt issuances, which includes the fair value of the related hedges, totals $299.4 million and $308.6 million at December 31, 2018 and 2017, respectively.

Junior Subordinated Debt

The Company has formed or acquired through acquisition eight statutory business trusts, which exist for the exclusive purpose of issuing Cumulative Trust Preferred Securities.

The Company's junior subordinated debt has contractual balances and maturity dates as follows: 

		December 31,
Name of Trust	Maturity	2018			2017
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(17,812		)	(10,263		)
Junior subordinated debt, at fair value		$	48,685		$	56,234
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(5,155		)	(5,465		)
Junior subordinated debt, at amortized cost		$	12,372		$	12,062
Total junior subordinated debt		$	61,057		$	68,296

(1) The purchase accounting adjustment is being accreted over the remaining life of the trusts, pursuant to accounting guidance.

With the exception of debt issued by Bridge Capital Trust I and Bridge Capital Trust II, junior subordinated debt is recorded at fair value at each reporting date due to the FVO election made by the Company under ASC 825. The Company did not make the FVO election for the junior subordinated debt acquired as part of the Bridge acquisition. Accordingly, the carrying value of these trusts does not reflect the current fair value of the debt and includes a fair market value adjustment established at acquisition that is being accreted over the remaining life of the trusts.

The weighted average interest rate of all junior subordinated debt as of December 31, 2018 was 5.15%, which is three-month LIBOR plus the contractual spread of 2.34%, compared to a weighted average interest rate of 4.03% at December 31, 2017.

In the event of certain changes or amendments to regulatory requirements or federal tax rules, the debt is redeemable in whole. The obligations under these instruments are fully and unconditionally guaranteed by the Company and rank subordinate and junior in right of payment to all other liabilities of the Company. Based on guidance issued by the FRB, the Company's securities continue to qualify as Tier 1 Capital.

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Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Stockholders' Equity Note [Abstract]

Stockholder's Equity

10. STOCKHOLDERS' EQUITY

Stock-Based Compensation

Restricted Stock Awards

The Incentive Plan, as amended, gives the BOD the authority to grant up to 10.5 million stock awards consisting of unrestricted stock, stock units, dividend equivalent rights, stock options (incentive and non-qualified), stock appreciation rights, restricted stock, and performance and annual incentive awards. The Incentive Plan limits the maximum number of shares of common stock that may be awarded to any person eligible for an award to 300,000 per calendar year and also limits the total compensation (cash and stock) that can be awarded to a non-employee director to $600,000 in any calendar year. Stock awards available for grant at December 31, 2018 were 3.1 million.

Restricted stock awards granted to employees in 2018 and 2017 generally vest over a 3-year period. Stock grants made to non-employee WAL directors during 2018 became fully vested at June 30, 2018. The Company estimates the compensation cost for stock grants based upon the grant date fair value. Stock compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For restricted stock awards and stock options granted to employees, stock compensation expenses are included in Salaries and employee benefits and for restricted stock awards granted to WAL directors, these expenses are included in Legal, professional, and directors' fees in the Consolidated Income Statement. For the year ended December 31, 2018, the Company recognized $16.6 million in stock-based compensation expense related to these stock grants, compared to $14.3 million in 2017, and $10.7 million in 2016.

In addition, in 2016 and 2017, the Company granted shares of restricted stock to certain members of executive management that had both performance and service conditions that affect vesting. There were no such grants made during the year ended December 31, 2018, however expense is still being recognized for the grants made in 2016 and 2017 as they also have a three-year vesting period. For the year ended December 31, 2018, the Company recognized $2.5 million in stock-based compensation expense related to these performance-based restricted stock grants, compared to $2.3 million in 2017, and $1.1 million in 2016.

A summary of the status of the Company’s unvested shares of restricted stock and changes during the years then ended is presented below: 

	December 31,
	2018				2017
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except per share amounts)
Balance, beginning of period	1,142		$	36.96	1,278		$	26.02
Granted	425		58.02		531		49.06
Vested	(477	)	32.31		(575	)	23.14
Forfeited	(63	)	43.62		(92	)	34.51
Balance, end of period	1,027		$	47.53	1,142		$	36.96

The total weighted average grant date fair value of all stock awards, including the performance-based restricted stock awards, granted during the years ended December 31, 2018, 2017, and 2016 was $24.7 million, $26.1 million, and $15.3 million, respectively. The total fair value of restricted stock that vested during the years ended December 31, 2018, 2017, and 2016 was $27.4 million, $29.1 million, and $18.3 million, respectively.

As of December 31, 2018, there was $22.7 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Incentive Plan. That cost is expected to be recognized over a weighted average period of 1.71 years.

Performance Stock Units

The Company grants members of its executive management performance stock units that do not vest unless the Company achieves a specified cumulative EPS target over a three-year performance period. Beginning in 2017, there is also a TSR performance measure. The number of shares issued will vary based on the cumulative EPS target that is achieved and, if applicable, TSR relative to an established peer group. The Company estimates the cost of performance stock units based upon the grant date fair value and expected vesting percentage over the three-year performance period. For the year ended December 31, 2018, the Company recognized $6.4 million in stock-based compensation expense related to these performance stock units, compared to $6.5 million and $5.7 million in stock-based compensation expense for such units in 2017 and 2016, respectively.

The three-year performance period for the 2015 grant ended on December 31, 2017, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, on February 28, 2018, executive management members were granted a total of 202,074 of fully vested common shares.

The three-year performance period for the 2016 grant ended on December 31, 2018, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, 202,775 shares will become fully vested and be paid out to executive management in the first quarter of 2019.

As of December 31, 2018, outstanding performance stock unit grants made in 2017 are expected to pay out at the maximum award amount, or 163,903 common shares, in 2020. As there are two years remaining in the vesting period for the performance stock unit grants made in 2018, the expense being recorded for those grants assumes that the expected payout will be at 100%, or 87,281 common shares, which may increase up to 200% in future periods.

Common Stock Repurchase

On December 12, 2018, the Company announced that it had adopted a common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. During the year ended December 31, 2018, the Company repurchased 900,883 shares of its common stock, representing approximately 1% of the Company's outstanding shares. Shares were repurchased at a weighted average price of $39.58, for a total payment of $35.7 million.

Common Stock Issuance

Under ATM Distribution Agreement

On June 4, 2014, the Company entered into a distribution agency agreement with Credit Suisse Securities (USA) LLC, under which the Company could sell shares of its common stock up to an aggregate offering price of $100.0 million in an offering registered with the SEC. The parties executed an Amended and Restated Distribution Agency Agreement on October 30, 2014. The Company agreed to pay Credit Suisse Securities (USA) LLC a mutually agreed rate, not to exceed 2% of the gross offering proceeds of the shares. The common stock would be sold at prevailing market prices at the time of the sale or at negotiated prices and, as a result, prices will vary.

As the Company completed $100.0 million in aggregate sales under the ATM offering, the Company's ATM offering expired and the Amended and Restated Distribution Agency Agreement was terminated as of June 30, 2016. During the year ended December 31, 2016, the Company sold 1.6 million shares under the ATM offering at a weighted-average selling price of $36.63 per share for gross proceeds of $56.8 million. Total related offering costs were $1.0 million, of which $0.9 million relates to compensation costs paid to Credit Suisse Securities (USA) LLC.

Treasury Shares

During the year ended December 31, 2018, the Company purchased treasury shares of 223,125 at a weighted average price of $57.88 per share, compared to 269,835 shares at a weighted average price per share of $51.16 in 2017.

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Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income

11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated: 

	Unrealized holding gains (losses) on AFS			Unrealized holding gains (losses) on SERP			Unrealized holding gains (losses) on junior subordinated debt			Impairment loss on securities		Total
	(in thousands)
Balance, December 31, 2015	$	9,993		$	90		$	12,033		$	144	$	22,260
Other comprehensive (loss) income before reclassifications	(24,254		)	31			(2,077		)	—		(26,300		)
Amounts reclassified from AOCI	(655		)	—			—			—		(655		)
Net current-period other comprehensive (loss) income	(24,909		)	31			(2,077		)	—		(26,955		)
Balance, December 31, 2016	$	(14,916	)	$	121		$	9,956		$	144	$	(4,695	)
Other comprehensive (loss) income before reclassifications	6,334			264			(3,604		)	—		2,994
Amounts reclassified from accumulated other comprehensive income	(1,444		)	—			—			—		(1,444		)
Net current-period other comprehensive (loss) income	4,890			264			(3,604		)	—		1,550
Balance, December 31, 2017	$	(10,026	)	$	385		$	6,352		$	144	$	(3,145	)
Balance, January 1, 2018 (1)	(12,556		)	469			7,740			144		(4,203		)
Other comprehensive (loss) income before reclassifications	(40,808		)	(77		)	5,693			—		(35,192		)
Amounts reclassified from AOCI	5,773			—			—			—		5,773
Net current-period other comprehensive (loss) income	(35,035		)	(77		)	5,693			—		(29,419		)
Balance, December 31, 2018	$	(47,591	)	$	392		$	13,433		$	144	$	(33,622	)

(1) As adjusted for adoption of ASU 2016-01 and ASU 2018-02, see "Note 1. Summary of Significant Accounting Policies" for further discussion.

The following table presents reclassifications out of accumulated other comprehensive income: 

	Year Ended December 31,
Income Statement Classification	2018			2017			2016
	(in thousands)
(Loss) gain on sales of investment securities, net	$	(7,656	)	$	2,343		$	1,059
Income tax expense (benefit)	1,883			(899		)	(404		)
Net of tax	$	(5,773	)	$	1,444		$	655

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Derivatives and Hedging

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

12. DERIVATIVES AND HEDGING ACTIVITIES

The Company is a party to various derivative instruments. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require a small or no initial investment, and allow for the net settlement of positions. A derivative’s notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. A derivative’s underlying variable is a specified interest rate, security price, commodity price, foreign exchange rate, index, or other variable. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the fair value of the derivative contract.

The primary type of derivatives that the Company uses are interest rate swaps. Generally, these instruments are used to help manage the Company's exposure to interest rate risk and meet client financing and hedging needs.

Derivatives are recorded at fair value in the Consolidated Balance Sheets, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow the Company to settle all derivative contracts held with the same counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable.

As of December 31, 2018, 2017, and 2016, the Company does not have any outstanding cash flow hedges.

Derivatives Designated in Hedge Relationships

The Company utilizes derivatives that have been designated as part of a hedge relationship in accordance with the applicable accounting guidance to minimize the exposure to changes in benchmark interest rates and volatility of net interest income and EVE to interest rate fluctuations. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index.

The Company has entered into pay fixed/receive variable interest rate swaps designated as fair value hedges of certain fixed rate loans. As a result, the Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts.

The Company has also entered into receive fixed/pay variable interest rate swaps, designated as fair value hedges on its fixed rate subordinated debt offerings. As a result, the Company is paying a floating rate of three month LIBOR plus 3.16% and is receiving semi-annual fixed payments of 5.00% to match the payments on the $150.0 million subordinated debt. For the fair value hedge on the Parent's $175.0 million subordinated debentures issued on June 16, 2016, the Company is paying a floating rate of three month LIBOR plus 3.25% and is receiving quarterly fixed payments of 6.25% to match the payments on the debt.

Derivatives Not Designated in Hedge Relationships

Management also enters into certain foreign exchange derivative contracts and back-to-back interest rate swaps which are not designated as accounting hedges. Foreign exchange derivative contracts include spot, forward, and forward window contracts. The purpose of these derivative contracts is to mitigate foreign currency risk on transactions entered into, or on behalf of customers. Contracts with customers, along with the related derivative trades the Company places, are both remeasured at fair value, and are referred to as economic hedges since they economically offset the Company's exposure. The Company's back-to back interest rate swaps are used to manage long-term interest rate risk.

As of each of the periods ended December 31, 2018, 2017, and 2016, derivatives not designated as hedging instruments were in a net asset position of $0.3 million, $0.2 million, and $0.1 million, respectively. For the years ended December 31, 2018, 2017, and 2016, net gains from changes in the fair value related to these derivative contracts totaled $4.8 million, $3.5 million, and $1.8 million, respectively, and are included as part of Foreign currency income in the Consolidated Income Statements.

As of December 31, 2018 and 2017, the following amounts are reflected in the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

	December 31, 2018					December 31, 2017
	Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)		Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)
	(in thousands)
Loans - HFI, net of deferred loan fees and costs	$	650,428		$	23,039	$	699,452		$	41,919
Qualifying debt	(299,401		)	19,691		(308,608		)	9,959

(1) Included in the carrying value of the hedged assets/(liabilities)

For the Company's derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans, the gain or loss on the hedged item is included in interest income and for subordinated debt, the gain or loss on the hedged item is included in interest expense.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of the Company's derivative instruments on a gross and net basis as of December 31, 2018, 2017, and 2016. The change in the notional amounts of these derivatives from December 31, 2016 to December 31, 2018 indicates the volume of the Company's derivative transaction activity during these periods. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow the Company to settle all derivative contracts with the same counterparty on a net basis and to offset the net derivative position with the related collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, the Company does not adjust those derivative amounts with counterparties. The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities in the Consolidated Balance Sheets, as indicated in the following table:

	December 31, 2018						December 31, 2017						December 31, 2016
			Fair Value						Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swaps	$	965,705	$	2,162	$	44,892	$	993,432	$	1,703	$	53,581	$	993,485	$	4,220	$	65,749
Total	965,705		2,162		44,892		993,432		1,703		53,581		993,485		4,220		65,749
Netting adjustments (1)	—		2,162		2,162		—		896		896		—		1,869		1,869
Net derivatives in the balance sheet	$	965,705	$	—	$	42,730	$	993,432	$	807	$	52,685	$	993,485	$	2,351	$	63,880
Derivatives not designated as hedging instruments:
Foreign currency contracts (2)	$	49,690	$	454	$	201	$	85,335	$	1,232	$	983	$	18,421	$	251	$	191
Interest rate swaps	2,378		27		27		36,969		776		776		—		—		—
Total	$	52,068	$	481	$	228	$	122,304	$	2,008	$	1,759	$	18,421	$	251	$	191

(1) Netting adjustments represent the amounts recorded to convert the Company's derivative balances from a gross basis to a net basis in accordance with the applicable accounting guidance.

(2) Prior period derivative asset / liability netting adjustments have been made to conform to current presentation.

Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected positive replacement value of the contracts. Management generally enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types. In general, the Company has a zero credit threshold with regard to derivative exposure with counterparties. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises, such as GNMA, FNMA, and FHLMC. The total collateral netted against net derivative liabilities totaled $44.9 million at December 31, 2018, $53.6 million at December 31, 2017, and $65.7 million at December 31, 2016.

The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated:

	December 31,
	2018		2017		2016
	(in thousands)
Largest gross exposure (derivative asset) to an individual counterparty	$	1,411	$	893	$	2,351
Collateral posted by this counterparty	—		—		1,691
Derivative liability with this counterparty	23,906		40,340		—
Collateral pledged to this counterparty	25,761		60,476		—
Net exposure after netting adjustments and collateral	$	—	$	—	$	660

Credit Risk Contingent Features

Management has entered into certain derivative contracts that require the Company to post collateral to the counterparties when these contracts are in a net liability position. Conversely, the counterparties may be required to post collateral when these contracts are in a net asset position. The amount of collateral to be posted is based on the amount of the net liability and exposure thresholds. As of December 31, 2018, 2017, and 2016 the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting provisions) held by the Company that were in a net liability position totaled $42.7 million, $52.7 million, and $63.9 million, respectively. As of December 31, 2018, the Company was in an over-collateralized net position of $7.6 million after considering $52.5 million of collateral held in the form of cash and securities. As of December 31, 2017 and 2016, the Company was in an over-collateralized position of $25.0 million and $24.3 million, respectively.

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Earnings per Share (Notes)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

13. EARNINGS PER SHARE

Diluted EPS is based on the weighted average outstanding common shares during the period, including common stock equivalents. Basic EPS is based on the weighted average outstanding common shares during the period.

The following table presents the calculation of basic and diluted EPS: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Weighted average shares - basic	104,669		104,179		103,042
Dilutive effect of stock awards	701		818		801
Weighted average shares - diluted	105,370		104,997		103,843
Net income	$	435,788	$	325,492	$	259,798
Earnings per share - basic	4.16		3.12		2.52
Earnings per share - diluted	4.14		3.10		2.50

The Company had no anti-dilutive stock options outstanding as of December 31, 2018 and 2017.

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

14. INCOME TAXES

The provision for income taxes charged to operations consists of the following: 

	Year Ended December 31,
	2018			2017		2016
	(in thousands)
Current	$	91,249		$	37,854	$	93,737
Deferred	(16,709		)	88,471		7,644
Total tax provision	$	74,540		$	126,325	$	101,381

The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate are summarized as follows: 

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Income tax at statutory rate	$	107,169		$	158,136		$	126,413
Increase (decrease) resulting from:
State income taxes, net of federal benefits	9,015			9,765			8,046
Tax-exempt income	(18,322		)	(26,403		)	(22,425		)
Change in federal rate applied to deferred items	—			(10,411		)	—
Federal NOL and other carryback items	(15,341		)	—			—
Excise tax	(137		)	9,689			—
Low income housing tax credits	(6,673		)	(7,361		)	(6,153		)
Other, net	(1,171		)	(7,090		)	(4,500		)
Total tax provision	$	74,540		$	126,325		$	101,381

For the years ended December 31, 2018, 2017, and 2016 the Company's effective tax rate was 14.61%, 27.96%, and 28.07%, respectively. The decrease in the effective tax rate from 2017 to 2018 is due primarily to the decrease in the federal statutory rate effective in 2018, a reduction in excise taxes, and management's decision during the third quarter 2018 to carryback its 2017 federal NOLs. The reduction in excise taxes from 2017 to 2018 resulted from not deferring WAB's 2018 dividend from BW Real Estate as was the case in 2017. The Company's 2017 federal NOLs resulted from the acceleration of deductions into and deferral of revenue from 2017. As the federal income tax rate was higher in the years to which the carryback is applicable, a larger tax benefit results from the decision to carryback the 2017 federal NOLs, rather than carryforward these losses to future taxable years. There was not a significant change in the effective tax rate from 2016 compared to 2017.

The cumulative tax effects of the primary temporary differences are shown in the following table:

	December 31,
	2018			2017
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	42,833		$	37,851
Stock-based compensation	8,718			8,335
Net operating loss carryovers	6,255			34,710
Tax credit carryovers	1,245			24,171
Unrealized loss on AFS securities	16,047			4,117
Other	19,442			15,621
Total gross deferred tax assets	94,540			124,805
Deferred tax asset valuation allowance	(2,373		)	—
Total deferred tax assets	92,167			124,805
Deferred tax liabilities:
REIT dividend deferral	—			(68,799		)
Unrealized gain on debt instruments measured at fair value	(5,833		)	(4,057		)
Deferred loan costs	(9,528		)	(6,594		)
Insurance premiums	(38,119		)	(35,789		)
Other	(6,697		)	(3,786		)
Total deferred tax liabilities	(60,177		)	(119,025		)
Deferred tax assets, net	$	31,990		$	5,780

Deferred tax assets and liabilities are included in the Consolidated Financial Statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be reversed. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets increased $26.2 million to $32.0 million from December 31, 2017. This overall increase in net deferred tax assets was primarily the result of the deferral of WAB's dividend from BW Real Estate from 2017 to 2018, which resulted in a $68.8 million deferred tax liability as of December 31, 2017 that was fully utilized during the year ended December 31, 2018. Decreases in the fair market value of AFS securities, which were not fully offset by the utilization of NOL and credit carryovers, also contributed to the increase in net deferred tax assets.

Although realization is not assured, the Company believes that the realization of the recognized deferred tax asset of $32.0 million at December 31, 2018 is more-likely-than-not based on expectations as to future taxable income and based on available tax planning strategies, that could be implemented if necessary to prevent a carryover from expiring.

As of December 31, 2018, the Company's deferred tax valuation allowance of $2.4 million related to net capital loss carryovers. As of December 31, 2017, the Company had no deferred tax valuation allowance.

As of December 31, 2018, the Company’s gross federal NOL carryovers, all of which are subject to limitations under Section 382 of the IRC, totaled $48.2 million, for which an ending deferred tax asset of $6.0 million has been recorded, reflecting the expected benefit of these federal NOL carryovers remaining after application of the Section 382 limitation. The Company also has varying gross amounts of state NOL carryovers, primarily in Arizona. The ending gross Arizona NOL carryovers totaled approximately $5.5 million. A deferred tax asset of $0.3 million has been recorded to reflect the expected benefit of all state NOL carryovers remaining. If not utilized, a portion of the federal and state NOL carryovers will begin to expire in 2023. As of December 31, 2018, the Company had no federal tax credit carryovers and $1.2 million of state tax credit carryovers. If not utilized, a portion of the state tax credit carryovers will begin to expire in 2023. In management’s opinion, it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize all of the deferred tax benefits related to these NOL and tax credit carryovers.

The Company files income tax returns in the U.S. federal jurisdiction and in various states. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2014.

When tax returns are filed, it is highly certain that most positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the Consolidated Financial Statements in the period in which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying Consolidated Balance Sheet along with any associated interest and penalties payable to the taxing authorities upon examination.

The total gross activity of unrecognized tax benefits related to the Company's uncertain tax positions are shown in the following table:

	December 31,
	2018			2017
	(in thousands)
Beginning balance	$	1,038		$	1,038
Gross increases
Tax positions in prior periods	—			—
Current period tax positions	—			—
Gross decreases
Tax positions in prior periods	(247		)	—
Settlements	(307		)	—
Lapse of statute of limitations	—			—
Ending balance	$	484		$	1,038

During the year ended December 31, 2018, the Company settled a position for less than the amount of unrecognized tax benefits accrued, which resulted in a tax benefit of $0.1 million, inclusive of interest and penalties.

As of December 31, 2018 and 2017, the total amount of unrecognized tax benefits, net of associated deferred tax benefits, that would impact the effective tax rate, if recognized, is $0.3 million and $0.7 million, respectively. The Company anticipates that $0.1 million of the unrecognized tax benefits will be resolved within the next twelve months.

During the years ended December 31, 2018, 2017, and 2016, the Company recognized no additional amounts for interest and penalties.

As of each of the years ended December 31, 2018 and 2017, the Company has accrued total liabilities of $0.1 million for penalties. As of December 31, 2018 and 2017, a liability of zero and $0.1 million, respectively, was accrued for interest.

LIHTC

As discussed in "Note 1. Summary of Significant Accounting Policies," the Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The limited liability entities are considered to be VIEs, however, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities.

At December 31, 2018, the Company’s exposure to loss as a result of its involvement in these entities was limited to $342.4 million, which reflects the Company’s recorded investment in LIHTC. The total assets held by unconsolidated VIEs at December 31, 2018 is approximately $2.77 billion. During the years ended December 31, 2018, 2017, and 2016, the Company did not provide financial or other support to these entities that was not contractually required.

Investments in LIHTC total $342.4 million and $267.0 million as of December 31, 2018 and 2017, respectively. Unfunded LIHTC obligations are included as part of other liabilities in the Consolidated Balance Sheets and total $171.7 million and $151.3 million as of December 31, 2018 and 2017, respectively. For the years ended December 31, 2018, 2017, and 2016, $35.9 million, $25.4 million, and $17.3 million of amortization related to LIHTC investments was recognized as a component of income tax expense, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

15. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments and Letters of Credit

The Company is 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. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheets.

Lines of credit are obligations to lend money to a borrower. Credit risk arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made. In the case of standby letters of credit, the risk arises from the potential failure of the customer to perform according to the terms of a contract. In such a situation, the third party might draw on the standby letter of credit to pay for completion of the contract and the Company would look to its customer to repay these funds with interest. To minimize the risk, the Company uses the same credit policies in making commitments and conditional obligations as it would for a loan to that customer.

Standby letters of credit and financial guarantees are commitments issued by the Company to guarantee the performance of a customer to a third party in borrowing arrangements. The Company generally has recourse to recover from the customer any amounts paid under the guarantees. Typically, letters of credit issued have expiration dates within one year.

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: 

	December 31,
	2018		2017
	(in thousands)
Commitments to extend credit, including unsecured loan commitments of $770,114 at December 31, 2018 and $364,638 at December 31, 2017	$	7,556,741	$	5,851,158
Credit card commitments and financial guarantees	237,312		153,752
Standby letters of credit, including unsecured letters of credit of $21,879 at December 31, 2018 and $11,664 at December 31, 2017	390,161		161,966
Total	$	8,184,214	$	6,166,876

The following table represents the contractual commitments for lines and letters of credit by maturity at December 31, 2018: 

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	7,556,741	$	2,650,999	$	2,959,595	$	851,520	$	1,094,627
Credit card commitments and financial guarantees	237,312		237,312		—		—		—
Standby letters of credit	390,161		276,633		98,774		14,754		—
Total	$	8,184,214	$	3,164,944	$	3,058,369	$	866,274	$	1,094,627

Commitments to extend credit are agreements to lend to a customer provided that 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. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

The Company has exposure to credit losses from unfunded commitments and letters of credit. As funds have not been disbursed on these commitments, they are not reported as loans outstanding. Credit losses related to these commitments are included in other liabilities as a separate loss contingency and are not included in the allowance for credit losses reported in "Note 3. Loans, Leases and Allowance for Credit Losses" of these Consolidated Financial Statements. This loss contingency for unfunded loan commitments and letters of credit was $8.2 millionand $6.2 million as of December 31, 2018 and 2017, respectively. Changes to this liability are adjusted through other expense in the Consolidated Income Statement.

Concentrations of Lending Activities

The Company’s lending activities are driven in large part by the customers served in the market areas where the Company has branch offices in the states of Arizona, Nevada, and California. Despite the geographic concentration of lending activities, the Company does not have a single external customer from which it derives 10% or more of its revenues. The Company monitors concentrations within four broad categories: geography, industry, product, and collateral. The Company's loan portfolio includes significant credit exposure to the CRE market. As of December 31, 2018 and 2017, CRE related loans accounted for approximately 49% and 52% of total loans, respectively. Substantially all of these loans are secured by first liens with an initial loan to value ratio of generally not more than 75%. Approximately 36% of these CRE loans, excluding construction and land loans, were owner occupied at each of the periods ended December 31, 2018 and 2017.

Contingencies

The Company is involved in various lawsuits of a routine nature that are being handled and defended in the ordinary course of the Company’s business. Expenses are being incurred in connection with these lawsuits, but in the opinion of management, based in part on consultation with outside legal counsel, the resolution of these lawsuits and associated defense costs will not have a material impact on the Company’s financial position, results of operations, or cash flows.

Lease Commitments

The Company leases the majority of its office locations and many of these leases contain multiple renewal options and provisions for increased rents. For the years ended December 31, 2018, 2017, and 2016, total rent expense was $11.0 million, $10.4 million and $11.0 million, respectively.

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Fair Value Accounting

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Accounting

16. FAIR VALUE ACCOUNTING

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 825 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 825 are described in "Note 1. Summary of Significant Accounting Policies" of these Notes to Consolidated Financial Statements.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally-developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels in the fair value hierarchy are recognized as of the end of the month following the event or change in circumstances that caused the transfer.

Under ASC 825, the Company elected the FVO treatment for junior subordinated debt issued by WAL. This election is irrevocable and results in the recognition of unrealized gains and losses on these items at each reporting date. These unrealized gains and losses are recognized as part of other comprehensive income rather than earnings. The Company did not elect FVO treatment for the junior subordinated debt assumed in the Bridge Capital Holdings acquisition.

For the years ended December 31, 2018, 2017, and 2016, gains and losses from fair value changes on junior subordinated debt pursuant to the election of the fair value option were as follows:

	Year Ended December 31,
	2018		2017			2016
	(in thousands)
Unrealized gain/(loss)	$	7,550	$	(5,824	)	$	(3,482	)
Changes included in OCI, net of tax	5,693		(3,604		)	(2,077		)

Fair value on a recurring basis

Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

AFS securities: Securities classified as AFS are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things.

Equity securities: Preferred stock and CRA investments are reported at fair value utilizing Level 1 inputs.

Independent pricing service: The Company's independent pricing service provides pricing information on the majority of the Company's Level 1 and 2 securities. Management independently evaluates the fair value measurements received from the Company's third party pricing service through multiple review steps. First, management reviews what has transpired in the marketplace with respect to interest rates, credit spreads, volatility, and mortgage rates, among other things, and develops an expectation of changes to the securities' valuations from the previous quarter. Then, management obtains market values from additional sources. The pricing service provides management with observable market data including interest rate curves and mortgage prepayment speed grids, as well as dealer quote sheets, new bond offering sheets, and historical trade documentation. Management reviews the assumptions and decides whether they are reasonable. Management may compare interest rates, credit spreads, and prepayments speeds used as part of the assumptions to those that management believes are reasonable.

Management may price securities using the provided assumptions to determine whether they can develop similar prices on like securities. Any discrepancies between management’s review and the prices provided by the vendor are discussed with the vendor and the Company’s other valuation advisors. Lastly, management selects a sample of investment securities and compares the values provided by its primary third party pricing service to the market values obtained from secondary sources and evaluates those with notable variances.

Annually, the Company receives an SSAE 16 report from its independent pricing service attesting to the controls placed on the operations of the service from its auditor.

Interest rate swaps: Interest rate swaps are reported at fair value utilizing Level 2 inputs. The Company obtains dealer quotations to value its interest rate swaps.

Junior subordinated debt: The Company estimates the fair value of its junior subordinated debt using a discounted cash flow model which incorporates the effect of the Company’s own credit risk in the fair value of the liabilities (Level 3). The Company’s cash flow assumptions are based on contractual cash flows as the Company anticipates that it will pay the debt according to its contractual terms.

The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs as of the periods presented: 

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2018
Assets:
Available-for-sale debt securities
CDO	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		100,106
Corporate debt securities	—		99,380		—		99,380
Private label residential MBS	—		924,594		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		1,530,124
Tax-exempt	—		538,668		—		538,668
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		38,188		—		38,188
U.S. treasury securities	—		1,984		—		1,984
Total AFS debt securities	$	—	$	3,276,988	$	—	$	3,276,988
Equity securities (1)
CRA investments	$	51,142	$	—	$	—	$	51,142
Preferred stock	63,919		—		—		63,919
Total equity securities	$	115,061	$	—	$	—	$	115,061
Derivative assets (2)	$	—	$	2,643	$	—	$	2,643
Liabilities:
Junior subordinated debt (3)	$	—	$	—	$	48,684	$	48,684
Derivative liabilities (2)	—		45,120		—		45,120

(1) Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

(2) Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $23,039 and the net carrying value of subordinated debt is decreased by $19,691 as of December 31, 2018 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.

(3) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2017
Assets:
Available-for-sale debt securities
CDO	$	—	$	21,857	$	—	$	21,857
Commercial MBS issued by GSEs	—		109,077		—		109,077
Corporate debt securities	—		103,483		—		103,483
Private label residential MBS	—		868,524		—		868,524
Residential MBS issued by GSEs	—		1,689,295		—		1,689,295
Tax-exempt	—		510,910		—		510,910
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		61,462		—		61,462
U.S. treasury securities	—		2,482		—		2,482
Available-for-sale equity securities (1)
CRA investments	50,616		—		—		50,616
Preferred stock	53,196		—		—		53,196
Total AFS securities	$	103,812	$	3,395,707	$	—	$	3,499,519
Derivative assets (2)	$	—	$	45,228	$	—	$	45,228
Liabilities:
Junior subordinated debt (3)	$	—	$	—	$	56,234	$	56,234
Derivative liabilities (2)	—		96,943		—		96,943

(1) Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

(2) Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $41,919 and the net carrying value of subordinated debt is decreased by $9,959 as of December 31, 2017, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.

(3) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

For the years ended December 31, 2018, 2017, and 2016, the change in Level 3 liabilities measured at fair value on a recurring basis was as follows: 

	Junior Subordinated Debt
	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Beginning balance	$	(56,234	)	$	(50,410	)	$	(46,928	)
Change in fair value (1)	7,550			(5,824		)	(3,482		)
Ending balance	$	(48,684	)	$	(56,234	)	$	(50,410	)

(1) Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled $5.7 million, $(3.6) million, and $(2.1) million for the years ended December 31, 2018, 2017, and 2016, respectively.

For Level 3 liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows: 

	December 31, 2018		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	48,684	Discounted cash flow	Implied credit rating of the Company	7.82	%

	December 31, 2017		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	56,234	Discounted cash flow	Implied credit rating of the Company	5.61	%

The significant unobservable inputs used in the fair value measurement of the Company’s junior subordinated debt as of December 31, 2018 and 2017 was the implied credit risk for the Company, calculated as the difference between the 20-year 'BB' rated financial index over the corresponding swap index.

As of December 31, 2018, the Company estimates the discount rate at 7.82%, which represents an implied credit spread of 5.01% plus three-month LIBOR (2.81%). As of December 31, 2017, the Company estimated the discount rate at 5.61%, which was a 3.92% credit spread plus three-month LIBOR (1.69%).

Fair value on a nonrecurring basis

Certain assets are measured at fair value on a nonrecurring basis. That is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents such assets carried on the balance sheet by caption and by level within the ASC 825 hierarchy:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of December 31, 2018
Impaired loans with specific valuation allowance	$	305	$	—	$	—	$	305
Impaired loans without specific valuation allowance (1)	91,821		—		—		91,821
Other assets acquired through foreclosure	17,924		—		—		17,924
As of December 31, 2017
Impaired loans with specific valuation allowance	$	13,709	$	—	$	—	$	13,709
Impaired loans without specific valuation allowance (1)	63,607		—		—		63,607
Other assets acquired through foreclosure	28,540		—		—		28,540

(1) Net of loan balances with charge-offs of $19.4 million and $15.6 million as of December 31, 2018 and 2017, respectively.

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows:

	December 31, 2018		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	92,126	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	17,924		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

	December 31, 2017		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	77,316	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	28,540		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

Impaired loans: The specific reserves for collateral dependent impaired loans are based on collateral value, net of estimated disposition costs and other identified quantitative inputs. Collateral value is determined based on independent third-party appraisals or internally-developed discounted cash flow analyses. Appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. In addition, when adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. Internal discounted cash flow analyses are also utilized to estimate the fair value of impaired loans, which considers internally-developed, unobservable inputs such as discount rates, default rates, and loss severity.

Total Level 3 impaired loans had an estimated fair value of $92.1 million and $77.3 million at December 31, 2018 and 2017, respectively. Impaired loans with a specific valuation allowance had a gross estimated fair value of $1.0 million and $19.3 million at December 31, 2018 and 2017, respectively, which was reduced by a specific valuation allowance of $0.7 million and $5.6 million, respectively.

Other assets acquired through foreclosure: Other assets acquired through foreclosure consist of properties acquired as a result of, or in-lieu-of, foreclosure. These assets are initially reported at the fair value determined by independent appraisals using appraised value less estimated cost to sell. Such properties are generally re-appraised every twelve months. There is risk for subsequent volatility. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense.

Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. When significant adjustments are based on unobservable inputs, such as when a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the resulting fair value measurement has been categorized as a Level 3 measurement. The Company had $17.9 million and $28.5 million of such assets at December 31, 2018 and 2017, respectively.

Credit vs. non-credit losses

Under the provisions of ASC 320, Investments-Debt and Equity Securities, OTTI for available-for-sale securities is separated into the amount of total impairment related to the credit loss and the amount of the total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in OCI.

For the years ended December 31, 2018, 2017, and 2016, the Company determined that there were no securities that experienced credit losses.

There is no OTTI balance recognized in comprehensive income as of December 31, 2018 and 2017.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of the Company’s financial instruments is as follows: 

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	302,905	$	—	$	298,648	$	—	$	298,648
AFS	3,276,988		—		3,276,988		—		3,276,988
Equity securities	115,061		115,061		—		—		115,061
Derivative assets	2,643		—		2,643		—		2,643
Loans, net	17,557,912		—		16,857,852		92,126		16,949,978
Accrued interest receivable	101,275		—		101,275		—		101,275
Financial liabilities:
Deposits	$	19,177,447	$	—	$	19,188,216	$	—	$	19,188,216
Customer repurchase agreements	22,411		—		22,411		—		22,411
Other borrowings	491,000		—		491,000		—		491,000
Qualifying debt	360,458		—		323,572		57,924		381,496
Derivative liabilities	45,120		—		45,120		—		45,120
Accrued interest payable	20,463		—		20,463		—		20,463

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	255,050	$	—	$	256,314	$	—	$	256,314
AFS	3,499,519		103,812		3,395,707		—		3,499,519
Derivative assets	3,711		—		3,711		—		3,711
Loans, net	14,953,885		—		14,577,010		77,316		14,654,326
Accrued interest receivable	85,517		—		85,517		—		85,517
Financial liabilities:
Deposits	$	16,972,532	$	—	$	16,980,066	$	—	$	16,980,066
Customer repurchase agreements	26,017		—		26,017		—		26,017
FHLB advances	390,000		—		390,000		—		390,000
Qualifying debt	376,905		—		336,803		67,210		404,013
Derivative liabilities	55,340		—		55,340		—		55,340
Accrued interest payable	16,366		—		16,366		—		16,366

Interest rate risk

The Company assumes interest rate risk (the risk to the Company’s earnings and capital from changes in interest rate levels) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments, as well as its future net interest income will change when interest rate levels change and that change may be either favorable or unfavorable to the Company.

Interest rate risk exposure is measured using interest rate sensitivity analysis to determine the Company's change in EVE and net interest income resulting from hypothetical changes in interest rates. If potential changes to EVE and net interest income resulting from hypothetical interest rate changes are not within the limits established by the BOD, the BOD may direct management to adjust the asset and liability mix to bring interest rate risk within BOD-approved limits.

WAB has an ALCO charged with managing interest rate risk within the BOD-approved limits. Limits are structured to preclude an interest rate risk profile that does not conform to both management and BOD risk tolerances without ALCO approval. There is also ALCO reporting at the Parent level for reviewing interest rate risk for the Company, which gets reported to the BOD and its Finance and Investment Committee.

Fair value of commitments

The estimated fair value of standby letters of credit outstanding at December 31, 2018 and 2017 is insignificant. Loan commitments on which the committed interest rates are less than the current market rate are also insignificant at December 31, 2018 and 2017.

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Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Regulatory Capital Requirements

17. REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and 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 their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Under the Basel III final rules, a capital conservation buffer, comprised of Common Equity Tier 1 capital, was established above the regulatory minimum capital requirements. This capital conservation buffer began being phased in on January 1, 2016 at 0.625% of risk-weighted assets and increased each subsequent year by an additional 0.625%. The capital conservation buffer reached its final level of 2.5% on January 1, 2019 and is now fully phased-in.

As of December 31, 2018 and 2017, the Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized, as defined by the federal banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2017
WAL	$	2,460,988	$	2,013,744	$	18,569,608	$	19,624,517	13.3	%	10.8	%	10.3	%	10.4	%
WAB	2,299,919		2,003,745		18,664,200		19,541,990		12.3		10.7		10.3		10.7
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

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Employee Benefit Plan (Notes)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Employee Benefit Plans

18. EMPLOYEE BENEFIT PLANS

The Company has a qualified 401(k) employee benefit plan for all eligible employees. Participants are able to defer between 1% and 75% (up to a maximum of $18,500 for those under 50 years of age and up to a maximum of $24,500 for those over 50 years of age in 2018) of their annual compensation. The Company may elect to match a discretionary amount each year, which is 75% of the first 6% of the participant’s compensation deferred into the plan. The Company’s contributions to this plan total $5.6 million, $3.1 million, and $2.7 million for the years ended December 31, 2018, 2017, and 2016, respectively.

In addition, the Company maintains a non-qualified 401(k) restoration plan for the benefit of executives of the Company and certain affiliates. Participants are able to defer a portion of their annual salary and receive a matching contribution based primarily on the contribution structure in effect under the Company’s 401(k) plan, but without regard to certain statutory limitations applicable under the 401(k) plan. The Company’s total contribution to the restoration plan was $144,000, $131,000, and $117,000 for the years ended December 31, 2018, 2017, and 2016, respectively.

In connection with the Bridge acquisition, the Company assumed Bridge's SERP, an unfunded noncontributory defined benefit pension plan. The SERP provides retirement benefits to certain Bridge officers based on years of service and final average salary. The Company uses a December 31st measurement date for this plan.

The following table reflects the accumulated benefit obligation and funded status of the SERP:

	December 31,
	2018			2017
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of period	$	8,891		$	8,394
Service cost	614			580
Interest cost	512			454
Actuarial losses/(gains)	41			(470		)
Expected benefits paid	(67		)	(67		)
Projected benefit obligation at end of year	$	9,991		$	8,891
Unfunded projected/accumulated benefit obligation	(9,991		)	(8,891		)
Additional liability	$	—		$	—
Weighted average assumptions to determine benefit obligation
Discount rate	5.75		%	5.75		%
Rate of compensation increase	3.00		%	3.00		%

The components of net periodic benefit cost recognized for the year ended December 31, 2018 and 2017 and the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2019 are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Components of net periodic benefit cost
Service cost	$	607		$	614		$	580
Interest cost	571			512			454
Amortization of prior service cost	64			103			103
Amortization of actuarial (gains)/losses	(159		)	(164		)	(114		)
Net periodic benefit cost	$	1,083		$	1,065		$	1,023
Other comprehensive income (cost)	$	(95	)	$	(61	)	$	(11	)

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Related Parties (Notes)

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

19. RELATED PARTY TRANSACTIONS

Principal stockholders, directors, and executive officers of the Company, their immediate family members, and companies they control or own more than a 10% interest in, are considered to be related parties. In the ordinary course of business, the Company engages in various related party transactions, including extending credit and bank service transactions. All related party transactions are subject to review and approval pursuant to the Company's Related Party Transactions policy.

Federal banking regulations require that any extensions of credit to insiders and their related interests not be offered on terms more favorable than would be offered to non-related borrowers of similar creditworthiness. The following table summarizes the aggregate activity in such loans for the periods indicated:

	Year Ended December 31,
	2018			2017
	(in thousands)
Balance, beginning	$	5,918		$	16,874
New loans	—			—
Advances	—			1,532
Repayments and other	(1,338		)	(12,488		)
Balance, ending	$	4,580		$	5,918

None of these loans are past due, on non-accrual status or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2018 or 2017. The interest income associated with these loans was approximately $0.3 million, $0.5 million and $0.6 million for the years ended December 31, 2018, 2017, and 2016, respectively.

Loan commitments outstanding with related parties totaled approximately $30.7 million and $31.2 million at December 31, 2018 and 2017, respectively.

The Company also accepts deposits from related parties which totaled $87.9 million and $100.5 million at December 31, 2018 and 2017, respectively, with related interest expense totaling approximately $0.2 million during each of the years ended December 31, 2018, 2017, and 2016.

Donations, sponsorships, and other payments to related parties, totaled $8.1 million during the year ended December 31, 2018 and less than $1.0 million during each of the years ended December 31, 2017 and 2016. Total related party payments of $8.1 million for the year ended December 31, 2018 includes a donation to the Company's charitable foundation of $7.6 million, which consists of a non-cash donation of OREO property of $6.9 million and a cash donation of $0.7 million.

During the year ended December 31, 2018, the Company sold an OREO property to a related party with a carrying value of $0.9 million and recognized a loss of $0.2 million on the sale.

On April 1, 2017, the Company hired an executive officer who was previously the Managing Partner of an external consulting firm that the Company actively uses for risk management services. Prior to joining the Company, the executive officer sold his interest in this external consulting firm and was paid with a combination of cash and a $1.0 million note, which as of December 31, 2018, was paid in full. Expenses to this external consulting firm totaled $0.8 million, $1.9 million, and $1.6 million during the years ended December 31, 2018, 2017, and 2016, respectively.

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Parent Company (Notes)

12 Months Ended

Dec. 31, 2018

Parent Company Financial Information [Abstract]

Parent Company Financial Information

20. PARENT COMPANY FINANCIAL INFORMATION

The condensed financial statements of the holding company are presented in the following tables:

WESTERN ALLIANCE BANCORPORATION

Condensed Balance Sheets

	December 31,
	2018		2017
	(in thousands)
ASSETS:
Cash and cash equivalents	$	115,721	$	56,554
Money market investments	7		—
Investment securities - AFS	66,278		34,698
Investment in bank subsidiaries	2,568,027		2,291,166
Investment in non-bank subsidiaries	80,019		77,457
Other assets	27,200		24,378
Total assets	$	2,857,252	$	2,484,253
LIABILITIES AND STOCKHOLDERS' EQUITY:
Qualifying debt	$	211,376	$	226,993
Accrued interest and other liabilities	32,142		27,562
Total liabilities	243,518		254,555
Total stockholders’ equity	2,613,734		2,229,698
Total liabilities and stockholders’ equity	$	2,857,252	$	2,484,253

WESTERN ALLIANCE BANCORPORATION

Condensed Income Statements

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Income:
Dividends from subsidiaries	$	152,116	$	97,264	$	12,795
Interest income	2,905		2,547		3,327
Non-interest income	761		2,470		2,445
Total income	155,782		102,281		18,567
Expense:
Interest expense	13,949		11,459		6,975
Non-interest expense	19,025		16,293		9,221
Total expense	32,974		27,752		16,196
Income before income taxes and equity in undistributed earnings of subsidiaries	122,808		74,529		2,371
Income tax benefit	10,436		5,229		4,399
Income before equity in undistributed earnings of subsidiaries	133,244		79,758		6,770
Equity in undistributed earnings of subsidiaries	302,544		245,734		253,028
Net income	$	435,788	$	325,492	$	259,798

Western Alliance Bancorporation

Condensed Statements of Cash Flows

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Cash flows from operating activities:
Net income	$	435,788		$	325,492		$	259,798
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Equity in net undistributed earnings of subsidiaries	(302,544		)	(245,734		)	(253,028		)
Other operating activities, net	(5,889		)	16,921			(9,880		)
Net cash provided by (used in) operating activities	127,355			96,679			(3,110		)
Cash flows from investing activities:
Purchases of securities	(44,409		)	(11,765		)	(20,148		)
Principal pay downs, calls, maturities, and sales proceeds of securities	11,362			23,196			34,390
Capital contributions to subsidiaries	—			(50,000		)	(226,869		)
Other investing activities, net	(7		)	—			2,891
Net cash (used in) investing activities	(33,054		)	(38,569		)	(209,736		)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt	—			—			169,256
Share repurchases	(35,688		)	—			—
Proceeds from issuance of common stock	—			—			55,785
Other financing activities, net	554			(12,965		)	(8,413		)
Net cash (used in) provided by financing activities	(35,134		)	(12,965		)	216,628
Net increase in cash and cash equivalents	59,167			45,145			3,782
Cash and cash equivalents at beginning of year	56,554			11,409			7,627
Cash and cash equivalents at end of year	$	115,721		$	56,554		$	11,409
Supplemental disclosure:
Cash paid during the year for:
Interest	$	13,950		$	11,182		$	5,165
Income taxes	7,704			97,781			70,131
Non-cash investing and financing activity:
Change in unrealized gain (loss) on AFS securities, net of tax	127			759			(1,984		)
Change in unrealized (loss) gain on junior subordinated debt, net of tax	5,693			(3,604		)	(2,077		)
Loan and OREO contributions to subsidiaries	1,116			11,264			50,773

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Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segments

21. SEGMENTS

The Company's reportable segments are aggregated based primarily on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: ABA in Arizona, BON and FIB in Nevada, TPB in Southern California, and Bridge in Northern California.

The Company's NBL segments provide specialized banking services to niche markets. The Company's NBL reportable segments include HOA Services, Public & Nonprofit Finance, Technology & Innovation, HFF, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately located within the Company's core market areas.

The Corporate & Other segment consists of the Company's investment portfolio, corporate borrowings and other related items, income and expense items not allocated to the Company's other reportable segments, and inter-segment eliminations.

The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 12% during the year, with a funds credit provided for the use of this equity as a funding source. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.

Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segment to the extent that the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.

Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average life of the assets or liabilities in the portfolio.

Net income amounts for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, average loan balances, and average deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.

Income taxes are applied to each segment based on the effective tax rate for the geographic location of the segment. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.

The following is a summary of operating segment balance sheet information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2018:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,259.7		$	2.5		$	10.9		$	2.5		$	3.0
Loans, net of deferred loan fees and costs	17,710.6			3,647.9			2,003.5			2,161.1			1,300.2
Less: allowance for credit losses	(152.7		)	(30.7		)	(18.7		)	(19.8		)	(10.7		)
Total loans	17,557.9			3,617.2			1,984.8			2,141.3			1,289.5
Other assets acquired through foreclosure, net	17.9			0.8			13.9			—			—
Goodwill and other intangible assets, net	299.2			—			23.2			—			155.5
Other assets	974.8			46.9			57.8			14.2			23.9
Total assets	$	23,109.5		$	3,667.4		$	2,090.6		$	2,158.0		$	1,471.9
Liabilities:
Deposits	$	19,177.4		$	5,090.2		$	3,996.4		$	2,347.5		$	1,839.1
Borrowings and qualifying debt	851.5			—			—			—			—
Other liabilities	466.9			10.4			14.5			4.5			12.2
Total liabilities	20,495.8			5,100.6			4,010.9			2,352.0			1,851.3
Allocated equity:	2,613.7			441.0			277.4			242.9			304.1
Total liabilities and stockholders' equity	$	23,109.5		$	5,541.6		$	4,288.3		$	2,594.9		$	2,155.4
Excess funds provided (used)	—			1,874.2			2,197.7			436.9			683.5

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,240.8
Loans, net of deferred loan fees and costs	210.0			1,547.5			1,200.9			1,479.9			4,154.9			4.7
Less: allowance for credit losses	(1.9		)	(14.2		)	(10.0		)	(8.5		)	(38.2		)	—
Total loans	208.1			1,533.3			1,190.9			1,471.4			4,116.7			4.7
Other assets acquired through foreclosure, net	—			—			—			—			—			3.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	0.9			20.1			6.3			7.2			37.1			760.4
Total assets	$	209.0		$	1,553.4		$	1,317.6		$	1,478.7		$	4,153.8		$	5,009.1
Liabilities:
Deposits	$	2,607.2		$	—		$	2,559.0		$	—		$	—		$	738.0
Borrowings and qualifying debt	—			—			—			—			—			851.5
Other liabilities	2.1			25.2			0.1			0.4			49.6			347.9
Total liabilities	2,609.3			25.2			2,559.1			0.4			49.6			1,937.4
Allocated equity:	70.7			123.9			268.7			122.3			340.0			422.7
Total liabilities and stockholders' equity	$	2,680.0		$	149.1		$	2,827.8		$	122.7		$	389.6		$	2,360.1
Excess funds provided (used)	2,471.0			(1,404.3		)	1,510.2			(1,356.0		)	(3,764.2		)	(2,649.0		)

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2017:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,237.1		$	2.1		$	8.2		$	2.1		$	1.7
Loans, net of deferred loan fees and costs	15,093.9			3,323.7			1,844.8			1,934.7			1,275.5
Less: allowance for credit losses	(140.0		)	(31.5		)	(18.1		)	(19.5		)	(13.2		)
Total loans	14,953.9			3,292.2			1,826.7			1,915.2			1,262.3
Other assets acquired through foreclosure, net	28.5			2.3			13.3			—			0.2
Goodwill and other intangible assets, net	300.7			—			23.2			—			156.5
Other assets	808.9			46.3			58.8			14.4			15.1
Total assets	$	20,329.1		$	3,342.9		$	1,930.2		$	1,931.7		$	1,435.8
Liabilities:
Deposits	$	16,972.5		$	4,841.3		$	3,951.4		$	2,461.1		$	1,681.7
Borrowings and qualifying debt	766.9			—			—			—			—
Other liabilities	360.0			11.6			20.9			3.2			11.9
Total liabilities	18,099.4			4,852.9			3,972.3			2,464.3			1,693.6
Allocated equity:	2,229.7			396.5			263.7			221.8			303.1
Total liabilities and stockholders' equity	$	20,329.1		$	5,249.4		$	4,236.0		$	2,686.1		$	1,996.7
Excess funds provided (used)	—			1,906.5			2,305.8			754.4			560.9

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,223.0
Loans, net of deferred loan fees and costs	162.1			1,580.4			1,097.9			1,327.7			2,543.0			4.1
Less: allowance for credit losses	(1.6		)	(15.6		)	(11.4		)	(4.0		)	(25.0		)	(0.1		)
Total loans	160.5			1,564.8			1,086.5			1,323.7			2,518.0			4.0
Other assets acquired through foreclosure, net	—			—			—			—			—			12.7
Goodwill and other intangible assets, net	—			—			120.9			0.1			—			—
Other assets	0.9			17.9			6.0			5.9			15.5			628.1
Total assets	$	161.4		$	1,582.7		$	1,213.4		$	1,329.7		$	2,533.5		$	4,867.8
Liabilities:
Deposits	$	2,230.4		$	—		$	1,737.6		$	—		$	—		$	69.0
Borrowings and qualifying debt	—			—			—			—			—			766.9
Other liabilities	1.2			42.4			0.8			0.4			5.5			262.1
Total liabilities	2,231.6			42.4			1,738.4			0.4			5.5			1,098.0
Allocated equity:	59.4			126.5			244.1			108.3			206.0			300.3
Total liabilities and stockholders' equity	$	2,291.0		$	168.9		$	1,982.5		$	108.7		$	211.5		$	1,398.3
Excess funds provided (used)	2,129.6			(1,413.8		)	769.1			(1,221.0		)	(2,322.0		)	(3,469.5		)

The following is a summary of operating segment income statement information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2018:	(in thousands)
Net interest income	$	915,879		$	224,754		$	148,085		$	115,561		$	92,583
Provision for (recovery of) credit losses	23,000			2,235			(2,447		)	2,292			1,809
Net interest income after provision for credit losses	892,879			222,519			150,532			113,269			90,774
Non-interest income	43,116			7,689			11,326			3,800			9,932
Non-interest expense	(425,667		)	(91,161		)	(62,536		)	(57,735		)	(52,574		)
Income (loss) before income taxes	510,328			139,047			99,322			59,334			48,132
Income tax expense (benefit)	74,540			34,824			20,951			16,709			13,565
Net income	$	435,788		$	104,223		$	78,371		$	42,625		$	34,567

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	67,154		$	15,149		$	105,029		$	55,332		$	80,073		$	12,159
Provision for (recovery of) credit losses	281			(1,101		)	5,657			3,275			11,046			(47		)
Net interest income after provision for credit losses	66,873			16,250			99,372			52,057			69,027			12,206
Non-interest income	614			158			14,121			13			2,076			(6,613		)
Non-interest expense	(32,390		)	(8,120		)	(41,159		)	(9,603		)	(26,822		)	(43,567		)
Income (loss) before income taxes	35,097			8,288			72,334			42,467			44,281			(37,974		)
Income tax expense (benefit)	8,072			1,905			16,637			9,768			10,184			(58,075		)
Net income	$	27,025		$	6,383		$	55,697		$	32,699		$	34,097		$	20,101

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,118		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,108			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income	$	325,492		$	76,791		$	63,661		$	35,136		$	24,807

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,550		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,401			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income	$	16,354		$	13,053		$	32,093		$	26,471		$	23,401		$	13,725

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	657,213		$	170,513		$	137,507		$	103,542		$	88,162
Provision for (recovery of) credit losses	8,000			9,912			(3,337		)	(580		)	2,587
Net interest income (expense) after provision for credit losses	649,213			160,601			140,844			104,122			85,575
Non-interest income	42,915			6,887			8,622			2,550			10,422
Non-interest expense	(330,949		)	(63,406		)	(60,570		)	(45,643		)	(53,073		)
Income (loss) before income taxes	361,179			104,082			88,896			61,029			42,924
Income tax expense (benefit)	101,381			40,832			31,113			25,663			18,049
Net income	$	259,798		$	63,250		$	57,783		$	35,366		$	24,875

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	41,539		$	20,900		$	69,143		$	38,583		$	49,893		$	(62,569	)
Provision for (recovery of) credit losses	256			(183		)	(1,626		)	—			4,200			(3,229		)
Net interest income (expense) after provision for credit losses	41,283			21,083			70,769			38,583			45,693			(59,340		)
Non-interest income	460			59			6,728			—			2,315			4,872
Non-interest expense	(24,019		)	(7,936		)	(31,271		)	(8,544		)	(15,204		)	(21,283		)
Income (loss) before income taxes	17,724			13,206			46,226			30,039			32,804			(75,751		)
Income tax expense (benefit)	6,647			4,952			17,335			11,265			12,302			(66,777		)
Net income	$	11,077		$	8,254		$	28,891		$	18,774		$	20,502		$	(8,974	)

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Quarterly Financial Data (Notes)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data Disclosure [Abstract]

Quarterly Financial Information

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Year Ended December 31, 2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	281,968		$	265,216		$	251,602		$	234,697
Interest expense	38,455			31,178			27,494			20,477
Net interest income	243,513			234,038			224,108			214,220
Provision for credit losses	6,000			6,000			5,000			6,000
Net interest income after provision for credit losses	237,513			228,038			219,108			208,220
Non-interest income	13,611			4,418			13,444			11,643
Non-interest expense	(111,129		)	(113,841		)	(102,548		)	(98,149		)
Income before provision for income taxes	139,995			118,615			130,004			121,714
Income tax expense	20,909			7,492			25,325			20,814
Net income	$	119,086		$	111,123		$	104,679		$	100,900
Earnings per share:
Basic	$	1.14		$	1.06		$	1.00		$	0.97
Diluted	$	1.13		$	1.05		$	0.99		$	0.96

	Year Ended December 31, 2017
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	228,459		$	217,836		$	206,953		$	192,265
Interest expense	17,430			16,253			14,210			12,956
Net interest income	211,029			201,583			192,743			179,309
Provision for credit losses	5,000			5,000			3,000			4,250
Net interest income after provision for credit losses	206,029			196,583			189,743			175,059
Non-interest income	13,688			10,456			10,601			10,599
Non-interest expense	(95,398		)	(89,296		)	(88,420		)	(87,827		)
Income before provision for income taxes	124,319			117,743			111,924			97,831
Income tax expense	34,973			34,899			31,964			24,489
Net income	$	89,346		$	82,844		$	79,960		$	73,342
Earnings per share:
Basic	$	0.86		$	0.79		$	0.77		$	0.71
Diluted	$	0.85		$	0.79		$	0.76		$	0.70

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Repurchase Agreements, Collateral, Policy [Policy Text Block]

Customer repurchase agreements

The Company enters into repurchase agreements with customers, whereby it pledges securities against overnight investments made from the customer’s excess collected funds. The Company records these at the amount of cash received in connection with the transaction.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock compensation plans

The Company has the Incentive Plan, as amended, which is described more fully in "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements. Compensation expense for stock options and non-vested restricted stock awards is based on the fair value of the award on the measurement date which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. Forfeitures are estimated at the time of the award grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of stock options. The fair value of non-vested restricted stock awards is the market price of the Company’s stock on the date of grant.

See "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements for further discussion of stock options and restricted stock awards.

Treasury Stock [Text Block]

Treasury shares

The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost.

Common Stock Repurchases

On December 11, 2018, the Company adopted its common stock repurchase program, pursuant to which the Company is authorized to repurchase up to $250 million of its shares of common stock. All shares repurchased under the plan are retired upon settlement. The Company has elected to allocate the excess of the repurchase price over the par value of its common stock between additional paid-in capital and retained earnings. The allocation of the excess repurchase price to additional paid-in capital is limited to the amount of additional paid-in capital that was recorded at the time that the shares were initially issued, which is calculated on a last-in, first-out basis.

Nature of Operation

Nature of operation

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which holds and manages certain OREO properties and a captive insurance company formed and licensed under the laws of the State of Arizona, CSI. CSI was established as part of the Company's overall enterprise risk management strategy.

Basis of Presentation

Basis of presentation

The accounting and reporting policies of the Company are in accordance with GAAP and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiaries are included in the Consolidated Financial Statements.

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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management's estimates and judgments are ongoing and are based on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities, as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from those estimates and assumptions used in the Consolidated Financial Statements and related notes. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for credit losses; certain assets and liabilities carried at fair value; and accounting for income taxes.

Principles of Consolidation

Principles of consolidation

As of December 31, 2018, WAL has the following significant wholly-owned subsidiaries: WAB, LVSP, and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.

The Bank has the following significant wholly-owned subsidiaries: WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; WA PWI, which holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; and BW Real Estate, Inc., which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities.

The Company does not have any other significant entities that should be considered for consolidation. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications

Certain amounts reported in prior periods may have been reclassified in the Consolidated Financial Statements to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Business Combinations

Business combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes all of the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including identified intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Changes to estimated fair values from a business combination are recognized as an adjustment to goodwill during the measurement period and are recognized in the proper reporting period in which the adjustment amounts are determined. Results of operations of an acquired business are included in the Consolidated Income Statement from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and customer deposit accounts are reported net.

The Company maintains amounts due from banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.

Investment Securities

Investment securities

Investment securities include debt securities and equity securities. Debt securities may be classified as HTM, AFS, or measured at fair value. The appropriate classification is initially decided at the time of purchase. Securities classified as HTM are those debt securities that the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or general economic conditions. These securities are carried at amortized cost. The sale of an HTM security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure.

Securities classified as AFS or trading securities are reported as an asset in the Consolidated Balance Sheet at their estimated fair value. As the fair value of AFS debt securities changes, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gain or loss is reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations.

For periods prior to January 1, 2018, equity securities were classified as AFS and reported at fair value with unrealized gains and losses included as a separate component of AOCI, net of tax. Upon adoption of ASU 2016-01, the fair value changes in equity securities are recognized as part of non-interest income, see "Recently adopted accounting guidance" below for further discussion.

Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security, adjusted for prepayment estimates, using the interest method.

In estimating whether there are any OTTI losses, management considers the 1) length of time and the extent to which the fair value has been less than amortized cost; 2) financial condition and near term prospects of the issuer; 3) impact of changes in market interest rates; and 4) intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and whether it is not more likely than not the Company would be required to sell the security.

Declines in the fair value of individual AFS securities that are deemed to be other-than-temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in fair value of the debt security related to 1) credit loss is recognized in earnings; and 2) interest rate, market, or other factors is recognized in other comprehensive income or loss.

For individual debt securities where the Company either intends to sell the security or more likely than not will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized on a cash basis.

Restricted Stock

Restricted stock

WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in capital stock of the FHLB based on the borrowing capacity used. The Bank also maintains an investment in its primary correspondent bank. All of these investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted investment securities. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists.

Loans, Interest and Fees from Loans

Loans, held for investment

The Company generally holds loans for investment and has the intent and ability to hold loans until their maturity. Therefore, they are reported at book value. Net loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, purchase accounting fair value adjustments, and an allowance for credit losses. In addition, the book values of loans subject to a fair value hedge are adjusted for changes in value attributable to the effective portion of the hedged benchmark interest rate risk.

The Company may also acquire loans through a business combination. These acquired loans are recorded at estimated fair value on the date of purchase, which is comprised of unpaid principal adjusted for estimated credit losses and interest rate fair value adjustments. Loans are evaluated individually at the acquisition date to determine if there has been credit deterioration since origination. Such loans may then be aggregated and accounted for as a pool of loans based on common characteristics. When the Company acquires such loans, the yield that may be accreted (accretable yield) is limited to the excess of the Company’s estimate of undiscounted cash flows expected to be collected over the Company’s initial investment in the loan. The excess of contractual cash flows over the cash flows expected to be collected may not be recognized as an adjustment to yield, loss, or a valuation allowance. Subsequent increases in cash flows expected to be collected generally are recognized prospectively through adjustment of the loan’s yield over the remaining life. Subsequent decreases to cash flows expected to be collected are recognized as impairment. The Company may not carry over or create a valuation allowance in the initial accounting for loans acquired under these circumstances. For purchased loans that are not deemed impaired at the acquisition date, fair value adjustments attributable to both credit and interest rates are accreted (or amortized) over the contractual life of the individual loan. For additional information, see "Note 3. Loans, Leases and Allowance for Credit Losses" of these Notes to Consolidated Financial Statements.

Loan fees collected for the origination of loans less direct loan origination costs (net deferred loan fees) are amortized over the contractual life of the loan through interest income. If a loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If a loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of premiums, discounts, or net deferred fees are recognized as interest income.

Non-accrual loans: When a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. The Company ceases accruing interest income when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if the loans are well secured by collateral and in the process of collection.

For all loan types, when a loan is placed on non-accrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed, and the Company makes a loan-level decision to apply either the cash basis or cost recovery method. The Company recognizes income on a cash basis only for those non-accrual loans for which the collection of the remaining principal balance is not in doubt. Under the cost recovery method, subsequent payments received from the customer are applied to principal and generally no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required.

Impaired loans: A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310, Receivables, based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are recorded as a provision for credit losses. Losses are recorded as a charge-off when losses are confirmed. In addition to management's internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

Troubled Debt Restructured Loans: A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. A TDR loan is also considered impaired. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual restructured principal and interest is no longer in doubt. However, such loans continue to be considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

Allowance for Credit Losses

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains independent collateral valuation analysis for each loan every twelve months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, ten-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Sales, Policy [Policy Text Block]

Transfers of financial assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed surrendered when the 1) assets have been isolated from the Company; 2) transferee obtains the right to pledge or exchange the transferred assets; and 3) Company no longer maintains effective control over the transferred assets through an agreement to repurchase the transferred assets before maturity.

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the term of the lease or the estimated life of the improvement, whichever is shorter. Depreciation and amortization is computed using the following estimated lives: 

	Years
Bank premises	31
Furniture, fixtures, and equipment	3 - 10
Leasehold improvements (1)	3 - 10

(1) Depreciation is recorded over the lesser of 3 to 10 years or the term of the lease.

Management periodically reviews premises and equipment in order to determine if facts and circumstances suggest that the value of an asset is not recoverable.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and other intangible assets

The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired in accordance with applicable guidance. The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. The Company can first elect to assess, through qualitative factors, whether it is more likely than not that goodwill is impaired. If the qualitative assessment indicates potential impairment, a quantitative impairment test is necessary. If, based on the quantitative test, a reporting unit's carrying amount exceeds its fair value, a goodwill impairment charge for this difference is recorded to current period earnings as non-interest expense.

The Company’s intangible assets consist primarily of core deposit intangible assets that are amortized over periods ranging from 5 to 10 years. The Company considers the remaining useful lives of its core deposit intangible assets each reporting period, as required by ASC 350, Intangibles—Goodwill and Other, to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company has not revised its estimates of the useful lives of its core deposit intangibles during the years ended December 31, 2018, 2017, or 2016.

Other Assets Acquired Through Foreclosure

Other assets acquired through foreclosure

Other assets acquired through foreclosure consist primarily of properties acquired as a result of, or in-lieu-of, foreclosure. Properties or other assets (primarily repossessed assets formerly leased) are classified as OREO and other repossessed property and are initially reported at fair value of the asset less estimated selling costs. Subsequent adjustments are based on the lower of carrying value or fair value less estimated costs to sell the property. Costs related to the development or improvement of the assets are capitalized and costs related to holding the assets are charged to non-interest expense. Property is evaluated regularly to ensure the recorded amount is supported by its current fair value and valuation allowances.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

Low income housing credits

The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The Company accounts for these investments using the proportional amortization method. See LIHTC section in "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion.

The Company evaluates its interests in these entities to determine if it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity. A VIE is broadly defined as an entity where either 1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or 2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIEs when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as, the Company's ability to direct the activities that most significantly impact the entity's economic performance, its form of ownership interest, its representation on the entity's governing body, the size and seniority of its investment, its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration.

The Company’s investments in qualified affordable housing projects meet the definition of a VIE as the entities do not have sufficient equity investment at risk to finance their activities without additional subordinated financial support and are structured with nonsubstantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required consolidate these entities.

Derivative Financial Instruments

Derivative financial instruments

The Company uses interest-rate swaps to mitigate interest-rate risk associated with changes to the fair value of certain fixed-rate financial instruments (fair value hedges).

The Company recognizes derivatives as assets or liabilities in the Consolidated Balance Sheet at their fair value in accordance with ASC 815, Derivatives and Hedging. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk are recorded in current-period earnings. Changes in the fair value of derivatives not considered to be highly effective in hedging the change in fair value of the hedged item are recognized in earnings as non-interest income during the period of the change.

The Company documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction after the derivative contract is executed. At inception, the Company performs a quantitative assessment to determine whether the derivatives used in hedging transactions are highly effective (as defined in the guidance) in offsetting changes in the fair value of the hedged item. Retroactive effectiveness is assessed, as well as the continued expectation that the hedge will remain effective prospectively. After the initial quantitative assessment is performed, on a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty's risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. The Company discontinues hedge accounting prospectively when it is determined that a hedge is no longer highly effective. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative continues to be reported at fair value in the Consolidated Balance Sheet, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings.

Derivative instruments that are not designated as hedges, so called free-standing derivatives, are reported in the Consolidated Balance Sheet at fair value and the changes in fair value are recognized in earnings as non-interest income during the period of change.

The Company may in the normal course of business purchase a financial instrument or originate a loan that contains an embedded derivative instrument. Upon purchasing the instrument or originating the loan, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current earnings, or the Company is unable to reliably identify and measure an embedded derivative for separation from its host contract, the entire contract is carried in the Consolidated Balance Sheet at fair value and is not designated as a hedging instrument.

Income Taxes

Income taxes

The Company is subject to income taxes in the United States and files a consolidated federal income tax return with all of its subsidiaries, with the exception of BW Real Estate, Inc. Deferred income taxes are recorded to reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their income tax bases using enacted tax rates that are expected to be in effect when the taxes are actually paid or recovered. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets are recorded to the extent that these assets will more-likely-than-not be realized. In making these determinations, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. If it is determined that deferred income tax assets to be realized in the future are in excess of their net recorded amount, an adjustment to the valuation allowance will be recorded, which will reduce the Company's provision for income taxes.

A tax benefit from an unrecognized tax benefit may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including related appeals or litigation, based on technical merits. Income tax benefits must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

Interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes in the Consolidated Income Statement. Accrued interest and penalties are included in the related tax liability line with other liabilities in the Consolidated Balance Sheet. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion on income taxes.

Off-Balance Sheet Instruments

Off-balance sheet instruments

In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Financial Statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized in the Consolidated Balance Sheet. Losses would be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. 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. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for credit losses on off-balance sheet instruments is included in other liabilities and the charge to income that establishes this liability is included in non-interest expense.

The Company also has off-balance sheet arrangements related to its derivative instruments. Derivative instruments are recognized in the Consolidated Financial Statements at fair value and their notional values are carried off-balance sheet. See "Note 12. Derivatives and Hedging Activities" of these Notes to Consolidated Financial Statements for further discussion.

Fair Values of Financial Instruments

Fair values of financial instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a three-level valuation hierarchy for disclosure of fair value measurement, as well as enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The Company uses various valuation approaches, including market, income, and/or cost approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.

• Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.

The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant who may purchase the asset or assume the liability rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date.

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2018 and 2017. The estimated fair value amounts for December 31, 2018 and 2017 have been measured as of period-end, and have not been re-evaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end.

The information in "Note 16. Fair Value Accounting" in these Notes to Consolidated Financial Statements should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities.

Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, cash equivalents, and restricted cash

The carrying amounts reported in the Consolidated Balance Sheets for cash and due from banks approximate their fair value.

Money market investments

The carrying amounts reported in the Consolidated Balance Sheets for money market investments approximate their fair value.

Investment securities

The fair values of CRA investments, and exchange-listed preferred stock are based on quoted market prices and are categorized as Level 1 in the fair value hierarchy.

The fair values of debt securities were determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings, and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy.

Restricted stock

WAB is a member of the Federal Reserve System and the FHLB and, accordingly, maintains investments in the capital stock of the FRB and the FHLB. WAB also maintains an investment in its primary correspondent bank. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. The fair values of these investments have been categorized as Level 2 in the fair value hierarchy.

Loans

The fair value of loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality and adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy, excluding impaired loans which are categorized as Level 3.

Accrued interest receivable and payable

The carrying amounts reported in the Consolidated Balance Sheets for accrued interest receivable and payable approximate their fair value.

Derivative financial instruments

All derivatives are recognized in the Consolidated Balance Sheets at their fair value. The fair value for derivatives is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. As a result, the fair values have been categorized as Level 2 in the fair value hierarchy.

Deposits

The fair value disclosed for demand and savings deposits is by definition equal to the amount payable on demand at their reporting date (that is, their carrying amount), which the Company believes a market participant would consider in determining fair value. The carrying amount for variable-rate deposit accounts approximates their fair value. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on these deposits. The fair value measurement of the deposit liabilities is categorized as Level 2 in the fair value hierarchy.

FHLB advances and customer repurchase agreements

The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances and customer repurchase agreements have been categorized as Level 2 in the fair value hierarchy due to their short durations.

Subordinated debt

The fair value of subordinated debt is based on the market rate for the respective subordinated debt security. Subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Junior subordinated debt

Junior subordinated debt is valued based on a discounted cash flow model which uses as inputs Treasury Bond rates and the 'BB' rated financial index. Junior subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Off-balance sheet instruments

The fair value of the Company’s off-balance sheet instruments (lending commitments and standby letters of credit) is based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, and the counterparties’ credit standing.

Recent Accounting Pronouncements

Recent accounting pronouncements

In February 2016, the FASB issued guidance within ASU 2016-02, Leases. The amendments in ASU 2016-02 to Topic 842, Leases, require lessees to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position, which will result in a gross up of assets and liabilities on the balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. In July 2018, the FASB issued guidance within ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842) Targeted Improvements. The amendments within ASU 2018-10 clarify how to apply certain aspects and transition adjustments of the new leases standard. The amendments within ASU 2018-11 give entities another option for transition and provide lessors with a practical expedient. The transition option allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, under this transition approach, the modified retrospective transition method still applies; however, a cumulative-effect adjustment to retained earnings is recognized in the period of adoption, rather than the earliest period presented. The amendments in these ASUs are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company has substantially completed its implementation of the new lease standard. All key lease data has been gathered and input into the Company's lease software application and validation procedures over the resulting output has been performed. The Company has elected to apply the practical expedients permitting entities to forgo reassessment of 1) expired or existing contracts that may contain leases; 2) lease classification of expired or existing leases; and 3) initial direct costs for any existing leases. Upon adoption of this standard on January 1, 2019, the Company recorded a right-of-use asset and corresponding lease liability of approximately $45 million. The new standard will not have a material impact on the Company's results of operations or cash flow.

In June 2016, the FASB issued guidance within ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard significantly changes the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. The amendments in ASU 2016-13 to Topic 326, Financial Instruments - Credit Losses, require that an organization measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosures, including qualitative and quantitative disclosures that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has formed a Steering Committee and established an implementation team made up of subject matter experts across different functions within the Company, including Finance, Risk, Credit, and IT, that will coordinate and facilitate all phases of planning and implementation of the new guidance. The Company has currently identified eight portfolio segments and plans to implement six to eight models for CECL, with the expectation that its portfolio segmentation and models will continue to evolve as the Company's loan mix and composition change. The models consist of both internally-developed models and vended solutions. Model validations for four of its models are substantially complete and parallel testing of the Company's major portfolio segments is underway. The implementation team is also updating the Company's accounting policies and assessing its control framework to identify risks resulting from new processes, judgments, and data.

In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company's share-based payment awards to nonemployees consist only of grants made to the Company's BOD as compensation solely related to the individual's role as a Director. As such, in accordance with ASC 718, the Company accounts for these share-based payment awards to its Directors in the same manner as share-based payment awards for its employees. Accordingly, the amendments in this guidance will not have an effect on the accounting for the Company's share-based payment awards to its Directors.

In July 2018, the FASB issued guidance within ASU 2018-09, Codification Improvements. The amendments in ASU 2018-09 are intended to clarify or correct unintended guidance in the FASB Codification and affect a wide variety of Topics in the Codification. The topics that are applicable to the Company include: 1) debt modifications and extinguishments; 2) stock compensation; and 3) derivatives and hedging. For debt modifications and extinguishments, the amendment clarifies that, in an early extinguishment of debt for which the fair value option has been elected, the net carrying amount of the extinguished debt is equal to its fair value at the reacquisition date, and upon extinguishment, the cumulative amount of the gain or loss on the extinguished debt that resulted from changes in instrument-specific credit risk should be presented in net income. The Company has junior subordinated debt that is recorded at fair value at each reporting period due to election of the FVO. Accordingly, if in the future, the Company chooses to repay this debt prior to its contractual maturity, this amendment would be applicable. For stock compensation, the amendment clarifies that excess tax benefits or tax deficiencies should be recognized in the period in which the amount of the tax deduction is determined, which is typically when an award is exercised (in the case of share options) or vests (in the case of non-vested stock awards). The Company already records excess tax benefits or tax deficiencies in the periods in which the tax deduction is determined. Therefore, this amendment will not have an effect on the Company's accounting for excess tax benefits or tax deficiencies. For derivatives and hedging, previous guidance permits derivatives to be offset only when all four conditions (including the intent to set off) are met. This amendment clarifies that the intent to set off is not required to offset fair value amounts recognized for derivative instruments that are executed with the same counterparty under a master netting agreement. This amendment will not have an effect on the offsetting of the Company's derivative assets and liabilities. The amendments in this ASU that do not require transition guidance are effective immediately and those amendments that have transition guidance are effective for annual periods beginning after December 15, 2018.

In August 2018, the FASB issued guidance within ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments within ASU 2018-13 remove, modify, and supplement the disclosure requirements for fair value measurements. Disclosure requirements that were removed include: the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additional disclosure requirements include: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. With the exception of the above additional disclosure requirements, which will be applied prospectively, all other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In August 2018, the FASB issued guidance within ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments in this Update also require that the capitalized implementation costs of a hosting arrangement that is a service contract be expensed over the term of the hosting arrangement. Presentation requirements include: expense related to the capitalized implementation costs should be presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, payments for capitalized implementation costs in the statement of cash flows should be classified in the same manner as payments made for fees associated with the hosting element, and capitalized implementation costs in the statement of financial position should be presented in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

Recently adopted accounting guidance

In May 2014, the FASB issued guidance within ASU 2014-09, Revenue from Contracts with Customers. The amendments in ASU 2014-09 to ASC 606, Revenue from Contracts with Customers, creates a common revenue standard and clarifies the principles for recognizing revenue that can be applied consistently across various transactions, industries, and capital markets. The amendments in the ASU clarify 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. As part of that principle, the entity should identify the contract(s) with the customer, identify the performance obligation(s) of the contract, determine the transaction price, allocate that transaction price to the performance obligation(s) of the contract, and then recognize revenue when or as the entity satisfies the performance obligation(s). The Company adopted ASU 2014-09 on January 1, 2018 using the modified retrospective method. Substantially all of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of this guidance. The contracts that are within the scope of this guidance include service charges and fees on deposit accounts, certain types of card income, and success fees earned from equity investments. The Company completed its review of contracts and other agreements that are within the scope of this guidance and did not identify any material changes to the timing or amount of revenue recognition. Accordingly, the Company did not recognize an adjustment to retained earnings upon adoption of this guidance. The Company’s accounting policies did not change materially since the principles of revenue recognition in the ASU are largely consistent with current practices applied by the Company. The Company has expanded its qualitative disclosures of performance obligations and disaggregation of significant categories of revenue. See "Note 22. Revenue from Contracts with Customers" for further discussion.

In January 2016, the FASB issued guidance within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in ASU 2016-01 to Subtopic 825-10, Financial Instruments, contain the following elements: 1) requires equity investments to be measured at fair value with changes in fair value recognized in net income; 2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 5) requires an entity to present separately in OCI the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or accompanying notes to the financial statements; 7) clarifies that the entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity's other deferred tax assets. Effective on January 1, 2015, the Company adopted the amendment noted in item 5) above as discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Effective on January 1, 2018, the Company adopted the other amendments in this guidance. The primary impact on the Company's Consolidated Financial Statements results from the amendments discussed in item 1) above as changes in the fair value of the Company's equity investments are now recognized in net income, rather than in AOCI. As of January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.4 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings. During the year ended December 31, 2018, the Company recognized a loss of $3.6 million related to fair value changes in equity securities still held at the reporting date, which was recorded in the Consolidated Income Statement.

In August 2016, the FASB issued guidance within ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The amendments in ASU 2016-15 to Topic 230, Statement of Cash Flows, provide guidance on eight specific cash flow classification issues: 1) debt prepayment or debt extinguishment costs; 2) settlement of zero-coupon debt instruments; 3) contingent consideration payments made after a business combination; 4) proceeds from the settlement of insurance claims; 5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; 6) distributions received from equity method investments; 7) beneficial interest in securitization transactions; and 8) separately identifiable cash flows and the application of the predominance principle. The adoption of this guidance did not have a significant impact on the Company's Consolidated Statement of Cash Flows.

In January 2017, the FASB issued guidance within ASU 2017-01, Clarifying the Definition of a Business. The amendments in ASU 2017-01 to Topic 805, Business Combinations, clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In January 2017, the FASB issued guidance within ASU 2017-04, Simplifying the Test for Goodwill Impairment. The amendments in ASU 2017-04 to Topic 350, Intangibles - Goodwill and Other, modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. Accordingly, the amendments eliminate Step 2 from the goodwill impairment test because goodwill impairment will no longer be determined by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In February 2017, the FASB issued guidance within ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in ASU 2017-05 to Subtopic 610-20, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets, clarify the scope of Subtopic 610-20 and add guidance for partial sales of nonfinancial assets, including partial sales of real estate. Under current GAAP, there are several different accounting models to evaluate whether the transfer of certain assets qualify for sale treatment. The new standard reduces the number of potential accounting models that might apply and clarifies which model does apply in various circumstances. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In May 2017, the FASB issued guidance within ASU 2017-09, Scope of Modification Accounting. The amendments in ASU 2017-09 to Topic 718, Compensation - Stock Compensation, provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following conditions are met: 1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The adoption of this guidance did not have a significant impact on the Company's Consolidated Financial Statements.

In February 2018, the FASB issued guidance within ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Under current GAAP, the effect of a change in tax laws or rates on deferred tax liabilities and assets are included in income from continuing operations even in situations in which the related income tax effects of items in AOCI were originally recognized in comprehensive income. Accordingly, as the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate is required to be included in income from continuing operations, the tax effects of items within AOCI do not reflect the current tax rate. The amendments in ASU 2018-02 to Topic 220, Income Statement - Reporting Comprehensive Income, allow a reclassification from AOCI to retained earnings from tax effects resulting from the TCJA. The Company elected to adopt this guidance effective January 1, 2018 and recorded a cumulative-effect adjustment of $0.7 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings.

Life Insurance, Corporate or Bank Owned [Text Block]

Bank owned life insurance

BOLI is carried at its cash surrender value with changes recorded in other non-interest income in the Consolidated Income Statements. The face amount of the underlying policies including death benefits was $358.7 million and $360.0 million as of December 31, 2018 and 2017, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds.

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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Carrying Amounts and Fair Values of Investment Securities

The carrying amounts and fair values of investment securities at December 31, 2018 and 2017 are summarized as follows: 

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	302,905	$	3,163	$	(7,420	)	$	298,648
Available-for-sale debt securities
CDO	$	50	$	15,277	$	—		$	15,327
Commercial MBS issued by GSEs	106,385		82		(6,361		)	100,106
Corporate debt securities	105,029		—		(5,649		)	99,380
Private label residential MBS	948,161		945		(24,512		)	924,594
Residential MBS issued by GSEs	1,564,181		1,415		(35,472		)	1,530,124
Tax-exempt	542,086		4,335		(7,753		)	538,668
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	40,000		—		(1,812		)	38,188
U.S. treasury securities	1,996		—		(12		)	1,984
Total AFS debt securities	$	3,339,888	$	22,054	$	(84,954	)	$	3,276,988
Equity securities (1)
CRA investments	$	52,210	$	—	$	(1,068	)	$	51,142
Preferred stock	65,954		148		(2,183		)	63,919
Total equity securities	$	118,164	$	148	$	(3,251	)	$	115,061

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	255,050	$	4,514	$	(3,250	)	$	256,314
Available-for-sale debt securities
CDO	$	50	$	21,807	$	—		$	21,857
Commercial MBS issued by GSEs	113,069		46		(4,038		)	109,077
Corporate debt securities	105,044		261		(1,822		)	103,483
Private label residential MBS	874,261		756		(6,493		)	868,524
Residential MBS issued by GSEs	1,719,188		810		(30,703		)	1,689,295
Tax-exempt	501,988		10,893		(1,971		)	510,910
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	64,000		—		(2,538		)	61,462
U.S. treasury securities	2,496		—		(14		)	2,482
Available-for-sale equity securities (1)
CRA investments	51,133		—		(517		)	50,616
Preferred stock	52,172		1,160		(136		)	53,196
Total AFS securities	$	3,515,401	$	35,733	$	(51,615	)	$	3,499,519

Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position

Information pertaining to securities with gross unrealized losses at December 31, 2018 and 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 

	December 31, 2018
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	3,868	$	91,095	$	3,552	$	69,991	$	7,420	$	161,086
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	—	$	—	$	6,361	$	98,275	$	6,361	$	98,275
Corporate debt securities	16		5,013		5,633		94,367		5,649		99,380
Private label residential MBS	5,173		217,982		19,339		537,316		24,512		755,298
Residential MBS issued by GSEs	1,363		141,493		34,109		1,215,490		35,472		1,356,983
Tax-exempt	3,562		209,767		4,191		72,382		7,753		282,149
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	—		—		1,812		38,188		1,812		38,188
U.S. treasury securities	—		—		12		1,984		12		1,984
Total AFS securities	$	10,114	$	574,255	$	74,840	$	2,086,619	$	84,954	$	2,660,874

	December 31, 2017
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	3,250	$	107,921	$	—	$	—	$	3,250	$	107,921
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	161	$	13,565	$	3,877	$	93,641	$	4,038	$	107,206
Corporate debt securities	1,398		78,602		424		19,576		1,822		98,178
Private label residential MBS	3,115		480,885		3,378		188,710		6,493		669,595
Residential MBS issued by GSEs	13,875		999,478		16,828		523,270		30,703		1,522,748
Tax-exempt	17		6,159		1,954		69,674		1,971		75,833
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	14		4,986		2,524		56,476		2,538		61,462
U.S. treasury securities	14		2,482		—		—		14		2,482
Available-for-sale equity securities
CRA investments	$	—	$	—	$	517	$	50,616	$	517	$	50,616
Preferred stock	136		7,357		—		—		136		7,357
Total AFS securities	$	18,730	$	1,593,514	$	32,885	$	1,030,580	$	51,615	$	2,624,094

Amortized Cost and Fair Value of Investment Securities by Contractual Maturities

The amortized cost and fair value of securities as of December 31, 2018, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.

	December 31, 2018
	Amortized Cost		Estimated Fair Value
	(in thousands)
Held-to-maturity
Due in one year or less	$	11,300	$	11,317
After one year through five years	—		—
After five years through ten years	14,493		14,845
After ten years	277,112		272,486
Total HTM securities	$	302,905	$	298,648
Available-for-sale
Due in one year or less	$	3,306	$	3,327
After one year through five years	12,063		12,112
After five years through ten years	216,197		210,070
After ten years	489,595		496,655
Mortgage-backed securities	2,618,727		2,554,824
Total AFS securities	$	3,339,888	$	3,276,988

Investment Securities by Credit Rating Type

The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2018 and 2017:

	December 31, 2018
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	302,905	$	302,905
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		—		—		—		—		100,106
Corporate debt securities	—		—		—		66,515		32,865		—		—		99,380
Private label residential MBS	887,520		—		34,342		343		947		1,442		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		—		—		—		—		1,530,124
Tax-exempt	66,160		12,146		306,409		152,330		—		—		1,623		538,668
Trust preferred securities	—		—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—		38,188		—		—		—		—		—		38,188
U.S. treasury securities	—		1,984		—		—		—		—		—		1,984
Total AFS securities (1)	$	953,680	$	1,682,548	$	340,751	$	219,188	$	62,429	$	16,769	$	1,623	$	3,276,988
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	25,767	$	51,142
Preferred stock	—		—		—		—		45,771		3,693		14,455		63,919
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	45,771	$	3,693	$	40,222	$	115,061

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

	December 31, 2017
	AAA			Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—		$	—	$	—	$	—	$	—	$	—	$	255,050	$	255,050
Available-for-sale debt securities
CDO	$	—		$	—	$	—	$	—	$	—	$	21,857	$	—	$	21,857
Commercial MBS issued by GSEs	—			109,077		—		—		—		—		—		109,077
Corporate debt securities	—			—		—		74,293		29,190		—		—		103,483
Private label residential MBS	809,242			—		55,161		1,350		931		1,840		—		868,524
Residential MBS issued by GSEs	—			1,689,295		—		—		—		—		—		1,689,295
Tax-exempt	64,893			25,280		249,200		167,994		—		—		3,543		510,910
Trust preferred securities	—			—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—			61,462		—		—		—		—		—		61,462
U.S. treasury securities	—			2,482		—		—		—		—		—		2,482
Available-for-sale equity securities
CRA investments	—			25,349		—		—		—		—		25,267		50,616
Preferred stock	—			—		—		10,388		23,822		4,104		14,882		53,196
Total AFS securities (1)	$	874,135	—	$	1,912,945	$	304,361	$	254,025	$	82,560	$	27,801	$	43,692	$	3,499,519

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

Gross Gains and (Losses) on Sales of Investment Securities

The following table presents gross gains and losses on sales of investment securities: 

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Available-for-sale securities
Gross gains	$	8,074		$	3,204		$	2,115
Gross losses	(7,738		)	(861		)	(1,056		)
Net gains (losses)	$	336		$	2,343		$	1,059
Equity securities (1)
Gross gains	$	—		$	—		$	—
Gross losses	(7,992		)	—			—
Net (losses) gains	$	(7,992	)	$	—		$	—

XML

Loans, Leases and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block]

L

Schedule of Held for Investment Loan Portfolio Composition of Loans, Leases and Allowance for Credit Losses

The composition of the Company’s held for investment loan portfolio is as follows:

	December 31,
	2018			2017
	(in thousands)
Commercial and industrial	$	7,762,642		$	6,841,381
Commercial real estate - non-owner occupied	4,213,428			3,904,011
Commercial real estate - owner occupied	2,325,380			2,241,613
Construction and land development	2,134,753			1,632,204
Residential real estate	1,204,355			425,940
Consumer	70,071			48,786
Loans, net of deferred loan fees and costs	17,710,629			15,093,935
Allowance for credit losses	(152,717		)	(140,050		)
Total loans HFI	$	17,557,912		$	14,953,885

Contractual Aging of Loan Portfolio by Class of Loans Including Loans Held for Sale and Excluding Deferred Fees/Costs

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,753,111	$	3,187	$	416	$	5,928	$	9,531	$	7,762,642
Commercial real estate
Owner occupied	2,320,321		4,441		—		618		5,059		2,325,380
Non-owner occupied	4,051,837		—		—		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,382,664		—		—		—		—		1,382,664
Land	751,613		—		476		—		476		752,089
Residential real estate	1,182,933		9,316		4,010		8,096		21,422		1,204,355
Consumer	69,830		—		—		241		241		70,071
Total loans	$	17,673,900	$	16,944	$	4,902	$	14,883	$	36,729	$	17,710,629

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	6,835,385	$	2,245	$	669	$	3,082	$	5,996	$	6,841,381
Commercial real estate
Owner occupied	2,240,457		1,026		—		130		1,156		2,241,613
Non-owner occupied	3,696,729		2,993		—		2,847		5,840		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,090,176		—		—		—		—		1,090,176
Land	536,917		—		—		5,111		5,111		542,028
Residential real estate	411,857		6,874		1,487		5,722		14,083		425,940
Consumer	48,408		83		213		82		378		48,786
Total loans	$	15,061,371	$	13,221	$	2,369	$	16,974	$	32,564	$	15,093,935

Summary of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 Days Still Accruing Interest by Loan Class

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	December 31, 2018								December 31, 2017
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial and industrial	$	7,639	$	7,451	$	15,090	$	—	$	17,913	$	4,113	$	22,026	$	43
Commercial real estate
Owner occupied	—		—		—		594		1,089		792		1,881		—
Non-owner occupied	—		—		—		—		—		5,840		5,840		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	—		476		476		—		—		—		—		—
Land	—		—		—		—		868		5,111		5,979		—
Residential real estate	552		11,387		11,939		—		2,039		6,078		8,117		—
Consumer	—		241		241		—		—		82		82		—
Total	$	8,191	$	19,555	$	27,746	$	594	$	21,909	$	22,016	$	43,925	$	43

Loans by Risk Rating

The following tables present gross loans by risk rating: 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,574,506	$	61,202	$	126,356	$	578	$	—	$	7,762,642
Commercial real estate
Owner occupied	2,255,513		12,860		57,007		—		—		2,325,380
Non-owner occupied	4,030,350		12,982		8,505		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,378,624		1,210		2,830		—		—		1,382,664
Land	751,012		—		1,077		—		—		752,089
Residential real estate	1,191,571		527		12,257		—		—		1,204,355
Consumer	69,755		75		241		—		—		70,071
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	17,400,616	$	87,264	$	186,020	$	—	$	—	$	17,673,900
Past due 30 - 59 days	11,255		1,580		4,109		—		—		16,944
Past due 60 - 89 days	719		12		3,767		404		—		4,902
Past due 90 days or more	332		—		14,377		174		—		14,883
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	6,675,574	$	85,781	$	76,328	$	3,698	$	—	$	6,841,381
Commercial real estate
Owner occupied	2,149,465		43,122		48,397		629		—		2,241,613
Non-owner occupied	3,676,711		11,166		14,692		—		—		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,072,342		4,477		13,357		—		—		1,090,176
Land	535,412		637		5,979		—		—		542,028
Residential real estate	408,527		8,971		8,442		—		—		425,940
Consumer	47,824		878		84		—		—		48,786
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	14,758,149	$	154,295	$	145,934	$	2,993	$	—	$	15,061,371
Past due 30 - 59 days	7,966		518		4,737		—		—		13,221
Past due 60 - 89 days	1,182		219		968		—		—		2,369
Past due 90 days or more	—		—		15,640		1,334		—		16,974
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

Recorded Investment in Loans Classified as Impaired

The table below reflects the recorded investment in loans classified as impaired: 

	December 31,
	2018			2017
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	986		$	19,315
Impaired loans without a specific valuation allowance under ASC 310 (2)	111,266			79,239
Total impaired loans	$	112,252		$	98,554
Valuation allowance related to impaired loans (3)	$	(681	)	$	(5,606	)

(1) Includes TDR loans of zero and $3.7 million at December 31, 2018 and 2017, respectively.

(2) Includes TDR loans of $44.5 million and $48.8 million at December 31, 2018 and 2017, respectively.

(3) Includes valuation allowance related to TDR loans of zero and $1.2 million at December 31, 2018 and 2017, respectively.

The following table presents the average investment in impaired loans and income recognized on impaired loans: 

		Year Ended December 31,
		2018		2017		2016
	(in thousands)
Average balance on impaired loans		$	104,825	$	104,866	$	109,461
Interest income recognized on impaired loans		4,490		4,046		4,167
Interest recognized on non-accrual loans, cash basis		1,745		1,614		1,254

Impaired Loans by Loan Class

The following table presents impaired loans by class: 

	December 31,
	2018		2017
	(in thousands)
Commercial and industrial	$	63,896	$	34,156
Commercial real estate
Owner occupied	6,530		10,430
Non-owner occupied	12,407		21,251
Multi-family	—		—
Construction and land development
Construction	—		—
Land	9,403		15,426
Residential real estate	19,744		17,170
Consumer	272		121
Total	$	112,252	$	98,554

Average Investment in Impaired Loans by Loan Class

The following table presents average investment in impaired loans by loan class: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Commercial and industrial	$	52,496	$	33,519	$	26,577
Commercial real estate
Owner occupied	7,682		18,692		18,865
Non-owner occupied	15,375		22,000		30,633
Multi-family	—		—		—
Construction and land development
Construction	—		—		—
Land	9,547		13,558		17,006
Residential real estate	19,425		16,893		16,096
Consumer	300		204		284
Total	$	104,825	$	104,866	$	109,461

Interest Income on Impaired Loans by Loan Class

The following table presents interest income on impaired loans by class: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Commercial and industrial	$	2,113	$	1,077	$	727
Commercial real estate
Owner occupied	491		677		849
Non-owner occupied	937		1,074		1,196
Multi-family	—		—		—
Construction and land development
Construction	—		—		—
Land	566		699		830
Residential real estate	381		516		560
Consumer	2		3		5
Total	$	4,490	$	4,046	$	4,167

Tabular Disclosure of Nonperforming Assets

The following table summarizes nonperforming assets: 

	December 31,
	2018		2017
	(in thousands)
Non-accrual loans (1)	$	27,746	$	43,925
Loans past due 90 days or more on accrual status (2)	594		43
Accruing troubled debt restructured loans	36,458		42,431
Total nonperforming loans	64,798		86,399
Other assets acquired through foreclosure, net	17,924		28,540
Total nonperforming assets	$	82,722	$	114,939

(1) Includes non-accrual TDR loans of $8.0 million and $10.1 million at December 31, 2018 and 2017, respectively.

(2)

Accretable Yield Table

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Balance, at beginning of period	$	9,324		$	15,177		$	15,925
Additions due to acquisition	—			—			4,301
Reclassifications from non-accretable to accretable yield (1)	683			2,086			1,892
Accretion to interest income	(1,018		)	(2,797		)	(3,439		)
Reversal of fair value adjustments upon disposition of loans	(5,222		)	(5,142		)	(3,502		)
Balance, at end of period	$	3,768		$	9,324		$	15,177

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

Allowances for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Year Ended December 31,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2018
Beginning Balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
Charge-offs	1			233			1,038			15,034			114			16,420
Recoveries	(1,433		)	(1,237		)	(947		)	(2,427		)	(43		)	(6,087		)
Provision	1,482			2,177			5,867			13,198			276			23,000
Ending balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			2,269			447			8,186			102			11,004
Recoveries	(1,229		)	(2,897		)	(1,778		)	(3,112		)	(84		)	(9,100		)
Provision	(2,805		)	5,347			318			14,268			122			17,250
Ending balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
2016
Beginning Balance	$	18,976		$	23,160		$	5,278		$	71,181		$	473		$	119,068
Charge-offs	18			728			165			12,477			161			13,549
Recoveries	(485		)	(5,690		)	(875		)	(3,991		)	(144		)	(11,185		)
Provision	1,732			(2,449		)	(2,137		)	10,638			216			8,000
Ending balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704

The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2018
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	623	$	363	$	—	$	—	$	986
Impaired loans with no allowance recorded	6,530		12,407		63,273		19,381		9,403		272		111,266
Total loans individually evaluated for impairment	6,530		12,407		63,896		19,744		9,403		272		112,252
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	3,979		79,557		—		19		—		—		83,555
Total recorded investment	$	2,325,380	$	4,213,428	$	7,762,642	$	1,204,355	$	2,134,753	$	70,071	$	17,710,629
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	1,482	$	363	$	—	$	—	$	1,845
Impaired loans with no allowance recorded	11,852		18,155		103,992		27,979		25,624		10,632		198,234
Total loans individually evaluated for impairment	11,852		18,155		105,474		28,342		25,624		10,632		200,079
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	5,315		95,680		4,352		72		—		—		105,419
Total unpaid principal balance	$	2,332,038	$	4,235,299	$	7,808,572	$	1,213,006	$	2,150,974	$	80,431	$	17,820,320
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	621	$	60	$	—	$	—	$	681
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		621		60		—		—		681
Loans collectively evaluated for impairment	14,286		20,456		82,488		11,216		22,513		981		151,940
Loans acquired with deteriorated credit quality	—		87		9		—		—		—		96
Total allowance for credit losses	$	14,286	$	20,543	$	83,118	$	11,276	$	22,513	$	981	$	152,717

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2017
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	19,315	$	—	$	—	$	—	$	19,315
Impaired loans with no allowance recorded	10,430		21,250		14,842		17,170		15,426		121		79,239
Total loans individually evaluated for impairment	10,430		21,250		34,157		17,170		15,426		121		98,554
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	9,569		105,542		43		601		—		—		115,755
Total recorded investment	$	2,241,613	$	3,904,011	$	6,841,381	$	425,940	$	1,632,204	$	48,786	$	15,093,935
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	20,795	$	—	$	—	$	—	$	20,795
Impaired loans with no allowance recorded	17,459		28,028		42,261		26,057		32,289		10,695		156,789
Total loans individually evaluated for impairment	17,459		28,028		63,056		26,057		32,289		10,695		177,584
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	12,619		128,440		3,146		720		—		—		144,925
Total unpaid principal balance	$	2,251,692	$	3,933,687	$	6,873,383	$	434,946	$	1,649,067	$	59,360	$	15,202,135
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	5,606	$	—	$	—	$	—	$	5,606
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		5,606		—		—		—		5,606
Loans collectively evaluated for impairment	13,884		16,135		76,919		5,500		19,599		776		132,813
Loans acquired with deteriorated credit quality	—		1,629		2		—		—		—		1,631
Total allowance for credit losses	$	13,884	$	17,764	$	82,527	$	5,500	$	19,599	$	776	$	140,050

Troubled Debt Restructured Loans by Loan Class

The following table presents information on the financial effects of TDR loans by class for the periods presented:

	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	35,132	$	—	$	—	$	35,132	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	294		—		—		294		—
Consumer	—	—		—		—		—		—
Total	12	$	35,426	$	—	$	—	$	35,426	$	—

	Year Ended December 31, 2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	3,513	$	—	$	—	$	3,513	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	3	2,993		—		—		2,993		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	122		—		—		122		—
Consumer	—	—		—		—		—		—
Total	15	$	6,628	$	—	$	—	$	6,628	$	—

	Year Ended December 31, 2016
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	2	$	2,405	$	—	$	—	$	2,405	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	2	$	2,405	$	—	$	—	$	2,405	$	—

Troubled Debt Restructured Loans by Class for Which There was a Payment Default

The following table presents TDR loans by class for which there was a payment default during the period: 

	Year Ended December 31,
	2018			2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	1	$	87	—	$	—
Commercial real estate
Owner occupied	—	—		1	135		—	—
Non-owner occupied	—	—		1	308		1	5,381
Multi-family	—	—		—	—		—	—
Construction and land development
Construction	—	—		2	1,119		—	—
Land	—	—		—	—		—	—
Residential real estate	—	—		1	48		2	408
Consumer	—	—		—	—		—	—
Total	—	$	—	6	$	1,697	3	$	5,789

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	December 31,
	2018			2017
	(in thousands)
Bank premises	$	89,930		$	89,411
Land and improvements	32,954			32,953
Furniture, fixtures, and equipment	42,729			37,098
Leasehold improvements	25,919			23,707
Construction in progress	6,302			1,415
Total	197,834			184,584
Accumulated depreciation and amortization	(78,360		)	(65,865		)
Premises and equipment, net	$	119,474		$	118,719

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

	(in thousands)
2019	$	11,370
2020	10,322
2021	7,418
2022	6,294
2023	6,070
Thereafter	15,417
Total future minimum rental payments	$	56,891

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Other Assets Acquired Through Foreclosure (Tables)

12 Months Ended

Dec. 31, 2018

Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]

Changes in Other Assets Acquired Through Foreclosure

The following table represents the changes in other assets acquired through foreclosure: 

	Year Ended December 31,
	2018
	Gross Balance			Valuation Allowance			Net Balance
	(in thousands)
Balance, beginning of period	$	32,552		$	(4,012	)	$	28,540
Transfers to other assets acquired through foreclosure, net	5,744			—			5,744
Proceeds from sale of other real estate owned and repossessed assets, net	(12,636		)	3,224			(9,412		)
Charitable contribution (1)	(6,895		)	—			(6,895		)
Valuation adjustments, net	—			(1,267		)	(1,267		)
Gains (losses), net (2)	1,214			—			1,214
Balance, end of period	$	19,979		$	(2,055	)	$	17,924
	2017
Balance, beginning of period	$	54,138		$	(6,323	)	$	47,815
Transfers to other assets acquired through foreclosure, net	1,812			—			1,812
Proceeds from sale of other real estate owned and repossessed assets, net	(23,626		)	2,431			(21,195		)
Valuation adjustments, net	—			(120		)	(120		)
Gains (losses), net (2)	228			—			228
Balance, end of period	$	32,552		$	(4,012	)	$	28,540
	2016
Balance, beginning of period	$	52,984		$	(9,042	)	$	43,942
Transfers to other assets acquired through foreclosure, net	13,110			—			13,110
Proceeds from sale of other real estate owned and repossessed assets, net	(11,584		)	2,451			(9,133		)
Valuation adjustments, net	—			268			268
(Losses) gains, net (2)	(372		)	—			(372		)
Balance, end of period	$	54,138		$	(6,323	)	$	47,815

(1) Represents a contribution of OREO property to the Company's charitable foundation. See "Note 19. Related Party Transactions" for further discussion.

(2) Includes net gains related to initial transfers to other assets of $1.0 million, $0.1 million, and $0.4 million during the years ended December 31, 2018, 2017, and 2016, respectively.

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Goodwill and Other Intangible Assets (Tables) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Goodwill and Intangible Assets Amortization Schedule [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The following is a summary of the Company's acquired intangible assets:

	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	5,737	$	8,910	$	14,647	$	4,144	$	10,503
	December 31, 2018						December 31, 2017
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Below is a summary of future estimated aggregate amortization expense:

	December 31, 2018
	(in thousands)
2019	$	1,547
2020	1,494
2021	1,433
2022	1,364
2023	1,289
Thereafter	1,783
Total	$	8,910

Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months

$ 1,547

Finite-Lived Intangible Assets, Amortization Expense, Year Two

1,494

Finite-Lived Intangible Assets, Amortization Expense, Year Three

1,433

Finite-Lived Intangible Assets, Amortization Expense, Year Four

1,364

Finite-Lived Intangible Assets, Amortization Expense, Year Five

1,289

Finite-Lived Intangible Assets, Amortization Expense, after Year Five

1,783

Other intangible assets, net

$ 9,260

$ 10,853

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Deposits (Tables)

12 Months Ended

Dec. 31, 2018

Deposit [Abstract]

Schedule Of Deposits Table [Text Block]

The table below summarizes deposits by type: 

	December 31,
	2018		2017
	(in thousands)
Non-interest-bearing demand deposits	$	7,456,141	$	7,433,962
Interest-bearing transaction accounts	2,555,609		1,586,209
Savings and money market accounts	7,330,709		6,330,977
Time certificates of deposit ($250,000 or more)	1,009,900		713,654
Other time deposits	825,088		907,730
Total deposits	$	19,177,447	$	16,972,532

Scheduled Maturities Of Time Deposits Table [Text Block]

The summary of the contractual maturities for all time deposits as of December 31, 2018 is as follows: 

	December 31,
	(in thousands)
2019	$	1,707,065
2020	101,572
2021	21,336
2022	1,854
2023	3,161
Total	$	1,834,988

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Other Borrowings (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Company's Borrowings

The following table summarizes the Company’s borrowings as of December 31, 2018 and 2017: 

	December 31,
	2018		2017
	(in thousands)
Short-Term:
Federal funds purchased	$	256,000	$	—
FHLB advances	235,000		390,000
Total short-term borrowings	$	491,000	$	390,000

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Qualifying Debt Junior Subordinated Debt Table (Tables)

12 Months Ended

Dec. 31, 2018

Junior Subordinated Debt Table [Abstract]

Schedule of Subordinated Borrowing [Table Text Block]

		December 31,
Name of Trust	Maturity	2018			2017
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(17,812		)	(10,263		)
Junior subordinated debt, at fair value		$	48,685		$	56,234
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(5,155		)	(5,465		)
Junior subordinated debt, at amortized cost		$	12,372		$	12,062
Total junior subordinated debt		$	61,057		$	68,296

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Stockholders' Equity Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Tables)

12 Months Ended

Dec. 31, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block]

A summary of the status of the Company’s unvested shares of restricted stock and changes during the years then ended is presented below: 

	December 31,
	2018				2017
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except per share amounts)
Balance, beginning of period	1,142		$	36.96	1,278		$	26.02
Granted	425		58.02		531		49.06
Vested	(477	)	32.31		(575	)	23.14
Forfeited	(63	)	43.62		(92	)	34.51
Balance, end of period	1,027		$	47.53	1,142		$	36.96

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Summary of Changes in Accumulated Other Comprehensive Income

The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated: 

	Unrealized holding gains (losses) on AFS			Unrealized holding gains (losses) on SERP			Unrealized holding gains (losses) on junior subordinated debt			Impairment loss on securities		Total
	(in thousands)
Balance, December 31, 2015	$	9,993		$	90		$	12,033		$	144	$	22,260
Other comprehensive (loss) income before reclassifications	(24,254		)	31			(2,077		)	—		(26,300		)
Amounts reclassified from AOCI	(655		)	—			—			—		(655		)
Net current-period other comprehensive (loss) income	(24,909		)	31			(2,077		)	—		(26,955		)
Balance, December 31, 2016	$	(14,916	)	$	121		$	9,956		$	144	$	(4,695	)
Other comprehensive (loss) income before reclassifications	6,334			264			(3,604		)	—		2,994
Amounts reclassified from accumulated other comprehensive income	(1,444		)	—			—			—		(1,444		)
Net current-period other comprehensive (loss) income	4,890			264			(3,604		)	—		1,550
Balance, December 31, 2017	$	(10,026	)	$	385		$	6,352		$	144	$	(3,145	)
Balance, January 1, 2018 (1)	(12,556		)	469			7,740			144		(4,203		)
Other comprehensive (loss) income before reclassifications	(40,808		)	(77		)	5,693			—		(35,192		)
Amounts reclassified from AOCI	5,773			—			—			—		5,773
Net current-period other comprehensive (loss) income	(35,035		)	(77		)	5,693			—		(29,419		)
Balance, December 31, 2018	$	(47,591	)	$	392		$	13,433		$	144	$	(33,622	)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive income: 

	Year Ended December 31,
Income Statement Classification	2018			2017			2016
	(in thousands)
(Loss) gain on sales of investment securities, net	$	(7,656	)	$	2,343		$	1,059
Income tax expense (benefit)	1,883			(899		)	(404		)
Net of tax	$	(5,773	)	$	1,444		$	655

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Derivatives and Hedging (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position

The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities in the Consolidated Balance Sheets, as indicated in the following table:

	December 31, 2018						December 31, 2017						December 31, 2016
			Fair Value						Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swaps	$	965,705	$	2,162	$	44,892	$	993,432	$	1,703	$	53,581	$	993,485	$	4,220	$	65,749
Total	965,705		2,162		44,892		993,432		1,703		53,581		993,485		4,220		65,749
Netting adjustments (1)	—		2,162		2,162		—		896		896		—		1,869		1,869
Net derivatives in the balance sheet	$	965,705	$	—	$	42,730	$	993,432	$	807	$	52,685	$	993,485	$	2,351	$	63,880
Derivatives not designated as hedging instruments:
Foreign currency contracts (2)	$	49,690	$	454	$	201	$	85,335	$	1,232	$	983	$	18,421	$	251	$	191
Interest rate swaps	2,378		27		27		36,969		776		776		—		—		—
Total	$	52,068	$	481	$	228	$	122,304	$	2,008	$	1,759	$	18,421	$	251	$	191

Largest Exposure To Individual Counterparty

The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated:

	December 31,
	2018		2017		2016
	(in thousands)
Largest gross exposure (derivative asset) to an individual counterparty	$	1,411	$	893	$	2,351
Collateral posted by this counterparty	—		—		1,691
Derivative liability with this counterparty	23,906		40,340		—
Collateral pledged to this counterparty	25,761		60,476		—
Net exposure after netting adjustments and collateral	$	—	$	—	$	660

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of basic and diluted EPS: 

	Year Ended December 31,
	2018		2017		2016
	(in thousands, except per share amounts)
Weighted average shares - basic	104,669		104,179		103,042
Dilutive effect of stock awards	701		818		801
Weighted average shares - diluted	105,370		104,997		103,843
Net income	$	435,788	$	325,492	$	259,798
Earnings per share - basic	4.16		3.12		2.52
Earnings per share - diluted	4.14		3.10		2.50

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Income Taxes Provision Current & Deferred Table (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Expense Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	2018			2017		2016
	(in thousands)
Current	$	91,249		$	37,854	$	93,737
Deferred	(16,709		)	88,471		7,644
Total tax provision	$	74,540		$	126,325	$	101,381

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Income Taxes Reconciliation between Statutory Federal Income Tax Rate and Company's Effective Tax Rate (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Income tax at statutory rate	$	107,169		$	158,136		$	126,413
Increase (decrease) resulting from:
State income taxes, net of federal benefits	9,015			9,765			8,046
Tax-exempt income	(18,322		)	(26,403		)	(22,425		)
Change in federal rate applied to deferred items	—			(10,411		)	—
Federal NOL and other carryback items	(15,341		)	—			—
Excise tax	(137		)	9,689			—
Low income housing tax credits	(6,673		)	(7,361		)	(6,153		)
Other, net	(1,171		)	(7,090		)	(4,500		)
Total tax provision	$	74,540		$	126,325		$	101,381

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Income Taxes Cumulative Tax Effects of Primary Difference (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2018			2017
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	42,833		$	37,851
Stock-based compensation	8,718			8,335
Net operating loss carryovers	6,255			34,710
Tax credit carryovers	1,245			24,171
Unrealized loss on AFS securities	16,047			4,117
Other	19,442			15,621
Total gross deferred tax assets	94,540			124,805
Deferred tax asset valuation allowance	(2,373		)	—
Total deferred tax assets	92,167			124,805
Deferred tax liabilities:
REIT dividend deferral	—			(68,799		)
Unrealized gain on debt instruments measured at fair value	(5,833		)	(4,057		)
Deferred loan costs	(9,528		)	(6,594		)
Insurance premiums	(38,119		)	(35,789		)
Other	(6,697		)	(3,786		)
Total deferred tax liabilities	(60,177		)	(119,025		)
Deferred tax assets, net	$	31,990		$	5,780

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Income Taxes Gross Activity of Unrecognized Tax Benefits Related to Uncertain Tax Positions (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Contingency [Line Items]

Summary of Income Tax Contingencies [Table Text Block]

	December 31,
	2018			2017
	(in thousands)
Beginning balance	$	1,038		$	1,038
Gross increases
Tax positions in prior periods	—			—
Current period tax positions	—			—
Gross decreases
Tax positions in prior periods	(247		)	—
Settlements	(307		)	—
Lapse of statute of limitations	—			—
Ending balance	$	484		$	1,038

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Summary of Contractual Amounts for Unfunded Commitments and Letters of Credit

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: 

	December 31,
	2018		2017
	(in thousands)
Commitments to extend credit, including unsecured loan commitments of $770,114 at December 31, 2018 and $364,638 at December 31, 2017	$	7,556,741	$	5,851,158
Credit card commitments and financial guarantees	237,312		153,752
Standby letters of credit, including unsecured letters of credit of $21,879 at December 31, 2018 and $11,664 at December 31, 2017	390,161		161,966
Total	$	8,184,214	$	6,166,876

Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	7,556,741	$	2,650,999	$	2,959,595	$	851,520	$	1,094,627
Credit card commitments and financial guarantees	237,312		237,312		—		—		—
Standby letters of credit	390,161		276,633		98,774		14,754		—
Total	$	8,184,214	$	3,164,944	$	3,058,369	$	866,274	$	1,094,627

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Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Gains and Losses from Fair Value Changes Included in Consolidated Statement of Operations

For the years ended December 31, 2018, 2017, and 2016, gains and losses from fair value changes on junior subordinated debt pursuant to the election of the fair value option were as follows:

	Year Ended December 31,
	2018		2017			2016
	(in thousands)
Unrealized gain/(loss)	$	7,550	$	(5,824	)	$	(3,482	)
Changes included in OCI, net of tax	5,693		(3,604		)	(2,077		)

Fair Value of Assets and Liabilities

The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs as of the periods presented: 

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2018
Assets:
Available-for-sale debt securities
CDO	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		100,106
Corporate debt securities	—		99,380		—		99,380
Private label residential MBS	—		924,594		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		1,530,124
Tax-exempt	—		538,668		—		538,668
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		38,188		—		38,188
U.S. treasury securities	—		1,984		—		1,984
Total AFS debt securities	$	—	$	3,276,988	$	—	$	3,276,988
Equity securities (1)
CRA investments	$	51,142	$	—	$	—	$	51,142
Preferred stock	63,919		—		—		63,919
Total equity securities	$	115,061	$	—	$	—	$	115,061
Derivative assets (2)	$	—	$	2,643	$	—	$	2,643
Liabilities:
Junior subordinated debt (3)	$	—	$	—	$	48,684	$	48,684
Derivative liabilities (2)	—		45,120		—		45,120

(1) Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

(2) Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $23,039 and the net carrying value of subordinated debt is decreased by $19,691 as of December 31, 2018 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.

(3) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2017
Assets:
Available-for-sale debt securities
CDO	$	—	$	21,857	$	—	$	21,857
Commercial MBS issued by GSEs	—		109,077		—		109,077
Corporate debt securities	—		103,483		—		103,483
Private label residential MBS	—		868,524		—		868,524
Residential MBS issued by GSEs	—		1,689,295		—		1,689,295
Tax-exempt	—		510,910		—		510,910
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		61,462		—		61,462
U.S. treasury securities	—		2,482		—		2,482
Available-for-sale equity securities (1)
CRA investments	50,616		—		—		50,616
Preferred stock	53,196		—		—		53,196
Total AFS securities	$	103,812	$	3,395,707	$	—	$	3,499,519
Derivative assets (2)	$	—	$	45,228	$	—	$	45,228
Liabilities:
Junior subordinated debt (3)	$	—	$	—	$	56,234	$	56,234
Derivative liabilities (2)	—		96,943		—		96,943

(1) Effective January 1, 2018, the Company adopted the amendments within ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which requires that fair value changes in equity securities be recognized as part of non-interest income. Prior to January 1, 2018, equity securities were classified as part of AFS securities. On a prospective basis, equity securities will be reported separately.

(2) Derivative assets and liabilities relate to interest rate swaps and foreign currency contracts, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $41,919 and the net carrying value of subordinated debt is decreased by $9,959 as of December 31, 2017, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.

Change in Level 3 Liabilities Measured at Fair Value on Recurring Basis

For the years ended December 31, 2018, 2017, and 2016, the change in Level 3 liabilities measured at fair value on a recurring basis was as follows: 

	Junior Subordinated Debt
	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Beginning balance	$	(56,234	)	$	(50,410	)	$	(46,928	)
Change in fair value (1)	7,550			(5,824		)	(3,482		)
Ending balance	$	(48,684	)	$	(56,234	)	$	(50,410	)

(1) Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled $5.7 million, $(3.6) million, and $(2.1) million for the years ended December 31, 2018, 2017, and 2016, respectively.

For Level 3 liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017, the significant unobservable inputs used in the fair value measurements were as follows: 

	December 31, 2018		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	48,684	Discounted cash flow	Implied credit rating of the Company	7.82	%

Assets Measured at Fair Value on Nonrecurring Basis

The following table presents such assets carried on the balance sheet by caption and by level within the ASC 825 hierarchy:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of December 31, 2018
Impaired loans with specific valuation allowance	$	305	$	—	$	—	$	305
Impaired loans without specific valuation allowance (1)	91,821		—		—		91,821
Other assets acquired through foreclosure	17,924		—		—		17,924
As of December 31, 2017
Impaired loans with specific valuation allowance	$	13,709	$	—	$	—	$	13,709
Impaired loans without specific valuation allowance (1)	63,607		—		—		63,607
Other assets acquired through foreclosure	28,540		—		—		28,540

(1) Net of loan balances with charge-offs of $19.4 million and $15.6 million as of December 31, 2018 and 2017, respectively

Estimated Fair Value of Financial Instruments

The estimated fair value of the Company’s financial instruments is as follows: 

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	302,905	$	—	$	298,648	$	—	$	298,648
AFS	3,276,988		—		3,276,988		—		3,276,988
Equity securities	115,061		115,061		—		—		115,061
Derivative assets	2,643		—		2,643		—		2,643
Loans, net	17,557,912		—		16,857,852		92,126		16,949,978
Accrued interest receivable	101,275		—		101,275		—		101,275
Financial liabilities:
Deposits	$	19,177,447	$	—	$	19,188,216	$	—	$	19,188,216
Customer repurchase agreements	22,411		—		22,411		—		22,411
Other borrowings	491,000		—		491,000		—		491,000
Qualifying debt	360,458		—		323,572		57,924		381,496
Derivative liabilities	45,120		—		45,120		—		45,120
Accrued interest payable	20,463		—		20,463		—		20,463

	December 31, 2017
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	255,050	$	—	$	256,314	$	—	$	256,314
AFS	3,499,519		103,812		3,395,707		—		3,499,519
Derivative assets	3,711		—		3,711		—		3,711
Loans, net	14,953,885		—		14,577,010		77,316		14,654,326
Accrued interest receivable	85,517		—		85,517		—		85,517
Financial liabilities:
Deposits	$	16,972,532	$	—	$	16,980,066	$	—	$	16,980,066
Customer repurchase agreements	26,017		—		26,017		—		26,017
FHLB advances	390,000		—		390,000		—		390,000
Qualifying debt	376,905		—		336,803		67,210		404,013
Derivative liabilities	55,340		—		55,340		—		55,340
Accrued interest payable	16,366		—		16,366		—		16,366

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Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2018

Banking and Thrift [Abstract]

Summary of Actual Capital Amount and Ratio

The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2017
WAL	$	2,460,988	$	2,013,744	$	18,569,608	$	19,624,517	13.3	%	10.8	%	10.3	%	10.4	%
WAB	2,299,919		2,003,745		18,664,200		19,541,990		12.3		10.7		10.3		10.7
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

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Employee Benefit Plan (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule of Net Funded Status [Table Text Block]

The following table reflects the accumulated benefit obligation and funded status of the SERP:

	December 31,
	2018			2017
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of period	$	8,891		$	8,394
Service cost	614			580
Interest cost	512			454
Actuarial losses/(gains)	41			(470		)
Expected benefits paid	(67		)	(67		)
Projected benefit obligation at end of year	$	9,991		$	8,891
Unfunded projected/accumulated benefit obligation	(9,991		)	(8,891		)
Additional liability	$	—		$	—
Weighted average assumptions to determine benefit obligation
Discount rate	5.75		%	5.75		%
Rate of compensation increase	3.00		%	3.00		%

Schedule of Net Benefit Costs [Table Text Block]

The components of net periodic benefit cost recognized for the year ended December 31, 2018 and 2017 and the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2019 are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Components of net periodic benefit cost
Service cost	$	607		$	614		$	580
Interest cost	571			512			454
Amortization of prior service cost	64			103			103
Amortization of actuarial (gains)/losses	(159		)	(164		)	(114		)
Net periodic benefit cost	$	1,083		$	1,065		$	1,023
Other comprehensive income (cost)	$	(95	)	$	(61	)	$	(11	)

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Related Parties (Tables)

12 Months Ended

Dec. 31, 2017

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The following table summarizes the aggregate activity in such loans for the periods indicated:

	Year Ended December 31,
	2018			2017
	(in thousands)
Balance, beginning	$	5,918		$	16,874
New loans	—			—
Advances	—			1,532
Repayments and other	(1,338		)	(12,488		)
Balance, ending	$	4,580		$	5,918

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Parent Company (Tables)

12 Months Ended

Dec. 31, 2018

Parent Company Financial Information [Abstract]

Condensed Balance Sheet [Table Text Block]

WESTERN ALLIANCE BANCORPORA

Schedule Of Condensed Income Statement And Comprehensive Income Table [Text Block]

Condensed Income Statements

	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Income:
Dividends from subsidiaries	$	152,116	$	97,264	$	12,795
Interest income	2,905		2,547		3,327
Non-interest income	761		2,470		2,445
Total income	155,782		102,281		18,567
Expense:
Interest expense	13,949		11,459		6,975
Non-interest expense	19,025		16,293		9,221
Total expense	32,974		27,752		16,196
Income before income taxes and equity in undistributed earnings of subsidiaries	122,808		74,529		2,371
Income tax benefit	10,436		5,229		4,399
Income before equity in undistributed earnings of subsidiaries	133,244		79,758		6,770
Equity in undistributed earnings of subsidiaries	302,544		245,734		253,028
Net income	$	435,788	$	325,492	$	259,798

Condensed Cash Flow Statement [Table Text Block]

Condensed Statements of Cash Flows

	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Cash flows from operating activities:
Net income	$	435,788		$	325,492		$	259,798
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Equity in net undistributed earnings of subsidiaries	(302,544		)	(245,734		)	(253,028		)
Other operating activities, net	(5,889		)	16,921			(9,880		)
Net cash provided by (used in) operating activities	127,355			96,679			(3,110		)
Cash flows from investing activities:
Purchases of securities	(44,409		)	(11,765		)	(20,148		)
Principal pay downs, calls, maturities, and sales proceeds of securities	11,362			23,196			34,390
Capital contributions to subsidiaries	—			(50,000		)	(226,869		)
Other investing activities, net	(7		)	—			2,891
Net cash (used in) investing activities	(33,054		)	(38,569		)	(209,736		)
Cash flows from financing activities:
Proceeds from issuance of subordinated debt	—			—			169,256
Share repurchases	(35,688		)	—			—
Proceeds from issuance of common stock	—			—			55,785
Other financing activities, net	554			(12,965		)	(8,413		)
Net cash (used in) provided by financing activities	(35,134		)	(12,965		)	216,628
Net increase in cash and cash equivalents	59,167			45,145			3,782
Cash and cash equivalents at beginning of year	56,554			11,409			7,627
Cash and cash equivalents at end of year	$	115,721		$	56,554		$	11,409
Supplemental disclosure:
Cash paid during the year for:
Interest	$	13,950		$	11,182		$	5,165
Income taxes	7,704			97,781			70,131
Non-cash investing and financing activity:
Change in unrealized gain (loss) on AFS securities, net of tax	127			759			(1,984		)
Change in unrealized (loss) gain on junior subordinated debt, net of tax	5,693			(3,604		)	(2,077		)
Loan and OREO contributions to subsidiaries	1,116			11,264			50,773

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Segments (Tables)

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Operating Segment Information

The following is a summary of operating segment balance sheet information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2018:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,259.7		$	2.5		$	10.9		$	2.5		$	3.0
Loans, net of deferred loan fees and costs	17,710.6			3,647.9			2,003.5			2,161.1			1,300.2
Less: allowance for credit losses	(152.7		)	(30.7		)	(18.7		)	(19.8		)	(10.7		)
Total loans	17,557.9			3,617.2			1,984.8			2,141.3			1,289.5
Other assets acquired through foreclosure, net	17.9			0.8			13.9			—			—
Goodwill and other intangible assets, net	299.2			—			23.2			—			155.5
Other assets	974.8			46.9			57.8			14.2			23.9
Total assets	$	23,109.5		$	3,667.4		$	2,090.6		$	2,158.0		$	1,471.9
Liabilities:
Deposits	$	19,177.4		$	5,090.2		$	3,996.4		$	2,347.5		$	1,839.1
Borrowings and qualifying debt	851.5			—			—			—			—
Other liabilities	466.9			10.4			14.5			4.5			12.2
Total liabilities	20,495.8			5,100.6			4,010.9			2,352.0			1,851.3
Allocated equity:	2,613.7			441.0			277.4			242.9			304.1
Total liabilities and stockholders' equity	$	23,109.5		$	5,541.6		$	4,288.3		$	2,594.9		$	2,155.4
Excess funds provided (used)	—			1,874.2			2,197.7			436.9			683.5

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,240.8
Loans, net of deferred loan fees and costs	210.0			1,547.5			1,200.9			1,479.9			4,154.9			4.7
Less: allowance for credit losses	(1.9		)	(14.2		)	(10.0		)	(8.5		)	(38.2		)	—
Total loans	208.1			1,533.3			1,190.9			1,471.4			4,116.7			4.7
Other assets acquired through foreclosure, net	—			—			—			—			—			3.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	0.9			20.1			6.3			7.2			37.1			760.4
Total assets	$	209.0		$	1,553.4		$	1,317.6		$	1,478.7		$	4,153.8		$	5,009.1
Liabilities:
Deposits	$	2,607.2		$	—		$	2,559.0		$	—		$	—		$	738.0
Borrowings and qualifying debt	—			—			—			—			—			851.5
Other liabilities	2.1			25.2			0.1			0.4			49.6			347.9
Total liabilities	2,609.3			25.2			2,559.1			0.4			49.6			1,937.4
Allocated equity:	70.7			123.9			268.7			122.3			340.0			422.7
Total liabilities and stockholders' equity	$	2,680.0		$	149.1		$	2,827.8		$	122.7		$	389.6		$	2,360.1
Excess funds provided (used)	2,471.0			(1,404.3		)	1,510.2			(1,356.0		)	(3,764.2		)	(2,649.0		)

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2017:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,237.1		$	2.1		$	8.2		$	2.1		$	1.7
Loans, net of deferred loan fees and costs	15,093.9			3,323.7			1,844.8			1,934.7			1,275.5
Less: allowance for credit losses	(140.0		)	(31.5		)	(18.1		)	(19.5		)	(13.2		)
Total loans	14,953.9			3,292.2			1,826.7			1,915.2			1,262.3
Other assets acquired through foreclosure, net	28.5			2.3			13.3			—			0.2
Goodwill and other intangible assets, net	300.7			—			23.2			—			156.5
Other assets	808.9			46.3			58.8			14.4			15.1
Total assets	$	20,329.1		$	3,342.9		$	1,930.2		$	1,931.7		$	1,435.8
Liabilities:
Deposits	$	16,972.5		$	4,841.3		$	3,951.4		$	2,461.1		$	1,681.7
Borrowings and qualifying debt	766.9			—			—			—			—
Other liabilities	360.0			11.6			20.9			3.2			11.9
Total liabilities	18,099.4			4,852.9			3,972.3			2,464.3			1,693.6
Allocated equity:	2,229.7			396.5			263.7			221.8			303.1
Total liabilities and stockholders' equity	$	20,329.1		$	5,249.4		$	4,236.0		$	2,686.1		$	1,996.7
Excess funds provided (used)	—			1,906.5			2,305.8			754.4			560.9

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,223.0
Loans, net of deferred loan fees and costs	162.1			1,580.4			1,097.9			1,327.7			2,543.0			4.1
Less: allowance for credit losses	(1.6		)	(15.6		)	(11.4		)	(4.0		)	(25.0		)	(0.1		)
Total loans	160.5			1,564.8			1,086.5			1,323.7			2,518.0			4.0
Other assets acquired through foreclosure, net	—			—			—			—			—			12.7
Goodwill and other intangible assets, net	—			—			120.9			0.1			—			—
Other assets	0.9			17.9			6.0			5.9			15.5			628.1
Total assets	$	161.4		$	1,582.7		$	1,213.4		$	1,329.7		$	2,533.5		$	4,867.8
Liabilities:
Deposits	$	2,230.4		$	—		$	1,737.6		$	—		$	—		$	69.0
Borrowings and qualifying debt	—			—			—			—			—			766.9
Other liabilities	1.2			42.4			0.8			0.4			5.5			262.1
Total liabilities	2,231.6			42.4			1,738.4			0.4			5.5			1,098.0
Allocated equity:	59.4			126.5			244.1			108.3			206.0			300.3
Total liabilities and stockholders' equity	$	2,291.0		$	168.9		$	1,982.5		$	108.7		$	211.5		$	1,398.3
Excess funds provided (used)	2,129.6			(1,413.8		)	769.1			(1,221.0		)	(2,322.0		)	(3,469.5		)

The following is a summary of operating segment income statement information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2018:	(in thousands)
Net interest income	$	915,879		$	224,754		$	148,085		$	115,561		$	92,583
Provision for (recovery of) credit losses	23,000			2,235			(2,447		)	2,292			1,809
Net interest income after provision for credit losses	892,879			222,519			150,532			113,269			90,774
Non-interest income	43,116			7,689			11,326			3,800			9,932
Non-interest expense	(425,667		)	(91,161		)	(62,536		)	(57,735		)	(52,574		)
Income (loss) before income taxes	510,328			139,047			99,322			59,334			48,132
Income tax expense (benefit)	74,540			34,824			20,951			16,709			13,565
Net income	$	435,788		$	104,223		$	78,371		$	42,625		$	34,567

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	67,154		$	15,149		$	105,029		$	55,332		$	80,073		$	12,159
Provision for (recovery of) credit losses	281			(1,101		)	5,657			3,275			11,046			(47		)
Net interest income after provision for credit losses	66,873			16,250			99,372			52,057			69,027			12,206
Non-interest income	614			158			14,121			13			2,076			(6,613		)
Non-interest expense	(32,390		)	(8,120		)	(41,159		)	(9,603		)	(26,822		)	(43,567		)
Income (loss) before income taxes	35,097			8,288			72,334			42,467			44,281			(37,974		)
Income tax expense (benefit)	8,072			1,905			16,637			9,768			10,184			(58,075		)
Net income	$	27,025		$	6,383		$	55,697		$	32,699		$	34,097		$	20,101

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,118		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,108			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income	$	325,492		$	76,791		$	63,661		$	35,136		$	24,807

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,550		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,401			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income	$	16,354		$	13,053		$	32,093		$	26,471		$	23,401		$	13,725

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	657,213		$	170,513		$	137,507		$	103,542		$	88,162
Provision for (recovery of) credit losses	8,000			9,912			(3,337		)	(580		)	2,587
Net interest income (expense) after provision for credit losses	649,213			160,601			140,844			104,122			85,575
Non-interest income	42,915			6,887			8,622			2,550			10,422
Non-interest expense	(330,949		)	(63,406		)	(60,570		)	(45,643		)	(53,073		)
Income (loss) before income taxes	361,179			104,082			88,896			61,029			42,924
Income tax expense (benefit)	101,381			40,832			31,113			25,663			18,049
Net income	$	259,798		$	63,250		$	57,783		$	35,366		$	24,875

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	41,539		$	20,900		$	69,143		$	38,583		$	49,893		$	(62,569	)
Provision for (recovery of) credit losses	256			(183		)	(1,626		)	—			4,200			(3,229		)
Net interest income (expense) after provision for credit losses	41,283			21,083			70,769			38,583			45,693			(59,340		)
Non-interest income	460			59			6,728			—			2,315			4,872
Non-interest expense	(24,019		)	(7,936		)	(31,271		)	(8,544		)	(15,204		)	(21,283		)
Income (loss) before income taxes	17,724			13,206			46,226			30,039			32,804			(75,751		)
Income tax expense (benefit)	6,647			4,952			17,335			11,265			12,302			(66,777		)
Net income	$	11,077		$	8,254		$	28,891		$	18,774		$	20,502		$	(8,974	)

XML

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data Disclosure [Abstract]

Condensed Financial Statements [Table Text Block]

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Year Ended December 31, 2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	281,968		$	265,216		$	251,602		$	234,697
Interest expense	38,455			31,178			27,494			20,477
Net interest income	243,513			234,038			224,108			214,220
Provision for credit losses	6,000			6,000			5,000			6,000
Net interest income after provision for credit losses	237,513			228,038			219,108			208,220
Non-interest income	13,611			4,418			13,444			11,643
Non-interest expense	(111,129		)	(113,841		)	(102,548		)	(98,149		)
Income before provision for income taxes	139,995			118,615			130,004			121,714
Income tax expense	20,909			7,492			25,325			20,814
Net income	$	119,086		$	111,123		$	104,679		$	100,900
Earnings per share:
Basic	$	1.14		$	1.06		$	1.00		$	0.97
Diluted	$	1.13		$	1.05		$	0.99		$	0.96

	Year Ended December 31, 2017
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	228,459		$	217,836		$	206,953		$	192,265
Interest expense	17,430			16,253			14,210			12,956
Net interest income	211,029			201,583			192,743			179,309
Provision for credit losses	5,000			5,000			3,000			4,250
Net interest income after provision for credit losses	206,029			196,583			189,743			175,059
Non-interest income	13,688			10,456			10,601			10,599
Non-interest expense	(95,398		)	(89,296		)	(88,420		)	(87,827		)
Income before provision for income taxes	124,319			117,743			111,924			97,831
Income tax expense	34,973			34,899			31,964			24,489
Net income	$	89,346		$	82,844		$	79,960		$	73,342
Earnings per share:
Basic	$	0.86		$	0.79		$	0.77		$	0.71
Diluted	$	0.85		$	0.79		$	0.76		$	0.70

XML

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Subsidiary	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Significant Of Accounting Policies [Line Items]
Life Insurance, Corporate or Bank Owned, Amount	$ 358,700	$ 360,000
Proceeds from issuance of subordinated debt	$ 0	$ 0	$ 169,256
Number Of Unconsolidated Subsidiaries | Subsidiary	8

XML

Investment Securities - Carrying Amounts and Fair Values of Investment Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	$ 115,061	$ 0
Debt Securities, Held-to-maturity	302,905	255,050
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	3,163	4,514
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(7,420)	(3,250)
Debt Securities, Held-to-maturity, Fair Value	298,648	256,314
Securities available for sale Total, Amortized Cost	3,339,888	3,515,401
Securities available-for-sale, Gross Unrealized Gains	22,054	35,733
Securities available-for-sale, Gross Unrealized (Losses)	(84,954)	(51,615)
Securities available for sale Total, Estimated Fair Value	3,276,988	3,499,519
Equity Securities, FV-NI, Cost	118,164
Equity securities, FV-NI, Accumulated Gross Unrealized Gain, Before Tax	148
Equity securities, FV-NI, Accumulated Gross Unrealized Loss, Before Tax	3,251
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	40,000	64,000
Securities available-for-sale, Gross Unrealized Gains	0	0
Securities available-for-sale, Gross Unrealized (Losses)	(1,812)	(2,538)
Securities available for sale Total, Estimated Fair Value	38,188	61,462
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	1,996	2,496
Securities available-for-sale, Gross Unrealized Gains	0	0
Securities available-for-sale, Gross Unrealized (Losses)	(12)	(14)
Securities available for sale Total, Estimated Fair Value	1,984	2,482
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	105,029	105,044
Securities available-for-sale, Gross Unrealized Gains	0	261
Securities available-for-sale, Gross Unrealized (Losses)	(5,649)	(1,822)
Securities available for sale Total, Estimated Fair Value	99,380	103,483
Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	302,905	255,050
Securities available for sale Total, Amortized Cost	542,086	501,988
Securities available-for-sale, Gross Unrealized Gains	4,335	10,893
Securities available-for-sale, Gross Unrealized (Losses)	(7,753)	(1,971)
Securities available for sale Total, Estimated Fair Value	538,668	510,910
Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	63,919
Securities available-for-sale, Gross Unrealized Gains		1,160
Securities available-for-sale, Gross Unrealized (Losses)		(136)
Securities available for sale Total, Estimated Fair Value		53,196
Available-for-sale Equity Securities, Amortized Cost Basis		52,172
Equity Securities, FV-NI, Cost	65,954
Equity securities, FV-NI, Accumulated Gross Unrealized Gain, Before Tax	148
Equity securities, FV-NI, Accumulated Gross Unrealized Loss, Before Tax	2,183
Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	1,564,181	1,719,188
Securities available-for-sale, Gross Unrealized Gains	1,415	810
Securities available-for-sale, Gross Unrealized (Losses)	(35,472)	(30,703)
Securities available for sale Total, Estimated Fair Value	1,530,124	1,689,295
Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	106,385	113,069
Securities available-for-sale, Gross Unrealized Gains	82	46
Securities available-for-sale, Gross Unrealized (Losses)	(6,361)	(4,038)
Securities available for sale Total, Estimated Fair Value	100,106	109,077
Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	948,161	874,261
Securities available-for-sale, Gross Unrealized Gains	945	756
Securities available-for-sale, Gross Unrealized (Losses)	(24,512)	(6,493)
Securities available for sale Total, Estimated Fair Value	924,594	868,524
Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	32,000	32,000
Securities available-for-sale, Gross Unrealized Gains	0	0
Securities available-for-sale, Gross Unrealized (Losses)	(3,383)	(3,383)
Securities available for sale Total, Estimated Fair Value	28,617	28,617
CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	51,142
Securities available-for-sale, Gross Unrealized Gains		0
Securities available-for-sale, Gross Unrealized (Losses)		(517)
Securities available for sale Total, Estimated Fair Value		50,616
Available-for-sale Equity Securities, Amortized Cost Basis		51,133
Equity Securities, FV-NI, Cost	52,210
Equity securities, FV-NI, Accumulated Gross Unrealized Gain, Before Tax	0
Equity securities, FV-NI, Accumulated Gross Unrealized Loss, Before Tax	1,068
Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	50	50
Securities available-for-sale, Gross Unrealized Gains	15,277	21,807
Securities available-for-sale, Gross Unrealized (Losses)	0	0
Securities available for sale Total, Estimated Fair Value	15,327	21,857
AAA [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value	953,680	874,135
AAA [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Securities available for sale Total, Estimated Fair Value	66,160	64,893
AAA [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
AAA [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	887,520	809,242
AAA [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
AAA [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	25,375
Securities available for sale Total, Estimated Fair Value	1,682,548	1,912,945
Split-rated AAA/AA Plus [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	38,188	61,462
Split-rated AAA/AA Plus [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	1,984	2,482
Split-rated AAA/AA Plus [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Securities available for sale Total, Estimated Fair Value	12,146	25,280
Split-rated AAA/AA Plus [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
Split-rated AAA/AA Plus [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	1,530,124	1,689,295
Split-rated AAA/AA Plus [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	100,106	109,077
Split-rated AAA/AA Plus [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	25,375
Securities available for sale Total, Estimated Fair Value		25,349
Split-rated AAA/AA Plus [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value	340,751	304,361
AA Plus to AA- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Securities available for sale Total, Estimated Fair Value	306,409	249,200
AA Plus to AA- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
AA Plus to AA- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	34,342	55,161
AA Plus to AA- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
AA Plus to AA- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value	219,188	254,025
A Plus to A- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	66,515	74,293
A Plus to A- [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Securities available for sale Total, Estimated Fair Value	152,330	167,994
A Plus to A- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		10,388
A Plus to A- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	343	1,350
A Plus to A- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
A Plus to A- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	45,771
Securities available for sale Total, Estimated Fair Value	62,429	82,560
BBB Plus to BBB- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	32,865	29,190
BBB Plus to BBB- [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	45,771
Securities available for sale Total, Estimated Fair Value		23,822
BBB Plus to BBB- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	947	931
BBB Plus to BBB- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	28,617	28,617
BBB Plus to BBB- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
BBB Plus to BBB- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	3,693
Securities available for sale Total, Estimated Fair Value	16,769	27,801
BB Plus and below [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	3,693
Securities available for sale Total, Estimated Fair Value		4,104
BB Plus and below [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	1,442	1,840
BB Plus and below [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	0
Securities available for sale Total, Estimated Fair Value		0
BB Plus and below [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	15,327	21,857
Corporate Credit Quality Indicator Unrated [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	40,222
Securities available for sale Total, Estimated Fair Value	1,623	43,692
Corporate Credit Quality Indicator Unrated [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	302,905	255,050
Securities available for sale Total, Estimated Fair Value	1,623	3,543
Corporate Credit Quality Indicator Unrated [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	14,455
Securities available for sale Total, Estimated Fair Value		14,882
Corporate Credit Quality Indicator Unrated [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Equity Securities, FV-NI	25,767
Securities available for sale Total, Estimated Fair Value		25,267
Corporate Credit Quality Indicator Unrated [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	$ 0	$ 0

XML

Investment Securities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2018 USD ($) positions	Dec. 31, 2017 USD ($) positions	Dec. 31, 2016 USD ($)
Investment Identifier [Line Items]
Amount of impairment losses reclassified out of accumulated other comprehensive income into earnings	$ 0	$ 0	$ 0
Total number of securities in an unrealized loss position | positions	373	302
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ 84,954,000	$ 51,615,000
Securities with carrying amounts were pledged	$ 788,400,000	$ 913,700,000

XML

Investment Securities - Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 3,868	$ 3,250
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	91,095	107,921
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,552	0
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	69,991	0
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	7,420	3,250
Held-to-maturity Securities, Fair Value	161,086	107,921
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	10,114	18,730
Available-for-sale securities, Less Than Twelve Months, Fair Value	574,255	1,593,514
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	74,840	32,885
Available-for-sale securities, Twelve Months or Longer, Fair Value	2,086,619	1,030,580
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	84,954	51,615
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	2,660,874	2,624,094
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	0	14
Available-for-sale securities, Less Than Twelve Months, Fair Value	0	4,986
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	1,812	2,524
Available-for-sale securities, Twelve Months or Longer, Fair Value	38,188	56,476
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	1,812	2,538
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	38,188	61,462
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	16	1,398
Available-for-sale securities, Less Than Twelve Months, Fair Value	5,013	78,602
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	5,633	424
Available-for-sale securities, Twelve Months or Longer, Fair Value	94,367	19,576
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	5,649	1,822
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	99,380	98,178
Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses		136
Available-for-sale securities, Less Than Twelve Months, Fair Value		7,357
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses		0
Available-for-sale securities, Twelve Months or Longer, Fair Value		0
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total		136
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total		7,357
Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	1,363	13,875
Available-for-sale securities, Less Than Twelve Months, Fair Value	141,493	999,478
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	34,109	16,828
Available-for-sale securities, Twelve Months or Longer, Fair Value	1,215,490	523,270
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	35,472	30,703
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	1,356,983	1,522,748
Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	3,562	17
Available-for-sale securities, Less Than Twelve Months, Fair Value	209,767	6,159
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	4,191	1,954
Available-for-sale securities, Twelve Months or Longer, Fair Value	72,382	69,674
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	7,753	1,971
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	282,149	75,833
Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	5,173	3,115
Available-for-sale securities, Less Than Twelve Months, Fair Value	217,982	480,885
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	19,339	3,378
Available-for-sale securities, Twelve Months or Longer, Fair Value	537,316	188,710
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	24,512	6,493
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	755,298	669,595
Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	0	0
Available-for-sale securities, Less Than Twelve Months, Fair Value	0	0
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	3,383	3,383
Available-for-sale securities, Twelve Months or Longer, Fair Value	28,617	28,617
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	3,383	3,383
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	28,617	28,617
CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses		0
Available-for-sale securities, Less Than Twelve Months, Fair Value		0
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses		517
Available-for-sale securities, Twelve Months or Longer, Fair Value		50,616
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total		517
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total		50,616
Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	0	161
Available-for-sale securities, Less Than Twelve Months, Fair Value	0	13,565
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	6,361	3,877
Available-for-sale securities, Twelve Months or Longer, Fair Value	98,275	93,641
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	6,361	4,038
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	98,275	107,206
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	0	14
Available-for-sale securities, Less Than Twelve Months, Fair Value	0	2,482
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	12	0
Available-for-sale securities, Twelve Months or Longer, Fair Value	1,984	0
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	12	14
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	$ 1,984	$ 2,482

XML

Investment Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturities (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	$ 11,300
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	11,317
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	0
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	14,493
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	14,845
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Amortized Cost	277,112
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	272,486
Debt Securities, Held-to-maturity	302,905	$ 255,050
Debt Securities, Held-to-maturity, Fair Value	298,648	256,314
Securities available for sale, Due in one year or less, Amortized Cost	3,306
Securities available for sale, After one year through five years, Amortized Cost	12,063
Securities available for sale, After five years through ten years, Amortized Cost	216,197
Securities available for sale, After ten years, Amortized Cost	489,595
Securities available for sale, Mortgage backed securities, Amortized Cost	2,618,727
Securities available for sale Total, Amortized Cost	3,339,888	3,515,401
Securities available for sale, Due in one year or less, Estimated Fair Value	3,327
Securities available for sale, After one year through five years, Estimated Fair Value	12,112
Securities available for sale, After five years through ten years, Estimated Fair Value	210,070
Securities available for sale, After ten years, Estimated Fair Value	496,655
Securities available for sale, Mortgage backed securities, Estimated Fair Value	2,554,824
Securities available for sale Total, Estimated Fair Value	$ 3,276,988	$ 3,499,519

XML

Investment Securities - Investment Securities by Credit Rating Type (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	$ 302,905	$ 255,050
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	3,276,988	3,499,519
Equity Securities, FV-NI	115,061	0
Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	302,905	255,050
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	538,668	510,910
Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,530,124	1,689,295
Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	100,106	109,077
Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	924,594	868,524
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	38,188	61,462
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,984	2,482
Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		53,196
Equity Securities, FV-NI	63,919
Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	28,617	28,617
Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	15,327	21,857
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	99,380	103,483
CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		50,616
Equity Securities, FV-NI	51,142
AAA [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	953,680	874,135
Equity Securities, FV-NI	0
AAA [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	66,160	64,893
AAA [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	887,520	809,242
AAA [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
AAA [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AAA [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
Split-rated AAA/AA Plus [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,682,548	1,912,945
Equity Securities, FV-NI	25,375
Split-rated AAA/AA Plus [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	12,146	25,280
Split-rated AAA/AA Plus [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,530,124	1,689,295
Split-rated AAA/AA Plus [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	100,106	109,077
Split-rated AAA/AA Plus [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Split-rated AAA/AA Plus [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	38,188	61,462
Split-rated AAA/AA Plus [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,984	2,482
Split-rated AAA/AA Plus [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
Split-rated AAA/AA Plus [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Split-rated AAA/AA Plus [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Split-rated AAA/AA Plus [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Split-rated AAA/AA Plus [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		25,349
Equity Securities, FV-NI	25,375
AA Plus to AA- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	340,751	304,361
Equity Securities, FV-NI	0
AA Plus to AA- [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	306,409	249,200
AA Plus to AA- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	34,342	55,161
AA Plus to AA- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
AA Plus to AA- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
AA Plus to AA- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
A Plus to A- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	219,188	254,025
Equity Securities, FV-NI	0
A Plus to A- [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	152,330	167,994
A Plus to A- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
A Plus to A- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
A Plus to A- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	343	1,350
A Plus to A- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
A Plus to A- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
A Plus to A- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		10,388
Equity Securities, FV-NI	0
A Plus to A- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
A Plus to A- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
A Plus to A- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	66,515	74,293
A Plus to A- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
BBB Plus to BBB- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	62,429	82,560
Equity Securities, FV-NI	45,771
BBB Plus to BBB- [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BBB Plus to BBB- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BBB Plus to BBB- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BBB Plus to BBB- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	947	931
BBB Plus to BBB- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BBB Plus to BBB- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BBB Plus to BBB- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		23,822
Equity Securities, FV-NI	45,771
BBB Plus to BBB- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	28,617	28,617
BBB Plus to BBB- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BBB Plus to BBB- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	32,865	29,190
BBB Plus to BBB- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
BB Plus and below [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	16,769	27,801
Equity Securities, FV-NI	3,693
BB Plus and below [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	0	0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,442	1,840
BB Plus and below [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		4,104
Equity Securities, FV-NI	3,693
BB Plus and below [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	15,327	21,857
BB Plus and below [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
BB Plus and below [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		0
Equity Securities, FV-NI	0
Corporate Credit Quality Indicator Unrated [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,623	43,692
Equity Securities, FV-NI	40,222
Corporate Credit Quality Indicator Unrated [Member] | Municipal obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity	302,905	255,050
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	1,623	3,543
Corporate Credit Quality Indicator Unrated [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		14,882
Equity Securities, FV-NI	14,455
Corporate Credit Quality Indicator Unrated [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Corporate Credit Quality Indicator Unrated [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		$ 25,267
Equity Securities, FV-NI	$ 25,767

XML

Investment Securities - Investment Securities by Credit Rating Type Parenthetical (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	$ 3,276,988	$ 3,499,519
CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017		$ 50,616

XML

Investment Securities - Gross Gains and (Losses) on Sales of Investments (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gain (Loss) on Securities [Line Items]
Equity Securities, FV-NI, Realized Loss	$ 7,992	$ 0	$ 0
Gross gains	8,074	3,204	2,115
Gross (losses)	(7,738)	(861)	(1,056)
Available-for-sale Securities, Gross Realized Gain (Loss)	336	2,343	1,059
Equity Securities, FV-NI, Realized Gain	0	0	0
Equity Securities, FV-NI, Realized Gain (Loss)	$ (7,992)	$ 0	$ 0

XML

Loans, Leases and Allowance for Credit Losses - Schedule of Held for Investment Loan Portfolio Composition of Loans, Leases and Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Interest Rate Marks on Acquired Loans	$ 7,100	$ 14,100
Net deferred loan fees and costs	(36,300)	(25,300)
Loans, net of deferred loan fees and costs	17,710,629	15,093,935
Allowance for credit losses	(152,717)	(140,050)
Loans, net	17,557,912	14,953,885
Commercial Real Estate Non Owner Occupied Multi Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, net of deferred loan fees and costs	4,213,428	3,904,011
Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, net of deferred loan fees and costs	2,325,380	2,241,613
Allowance for credit losses	(14,286)	(13,884)
Construction and land development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, net of deferred loan fees and costs	2,134,753	1,632,204
Allowance for credit losses	(22,513)	(19,599)
Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, net of deferred loan fees and costs	1,204,355	425,940
Allowance for credit losses	(11,276)	(5,500)
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, net of deferred loan fees and costs	70,071	48,786
Allowance for credit losses	(981)	(776)
Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans, net of deferred loan fees and costs	$ 7,762,642	$ 6,841,381

XML

Loans, Leases and Allowance for Credit Losses - Contractual Aging of Loan Portfolio by Class of Loans Including Loans Held for Sale and Excluding Deferred Fees/Costs (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 17,673,900	$ 15,061,371
Total Past Due	36,729	32,564
Total	17,710,629	15,093,935
Financing Receivable, Recorded Investment, Nonaccrual Status	27,746	43,925
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	594	43
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,320,321	2,240,457
Total Past Due	5,059	1,156
Total	2,325,380	2,241,613
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	594	0
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,051,837	3,696,729
Total Past Due	0	5,840
Total	4,051,837	3,702,569
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	161,591	201,442
Total Past Due	0	0
Total	161,591	201,442
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,753,111	6,835,385
Total Past Due	9,531	5,996
Total	7,762,642	6,841,381
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	43
Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,382,664	1,090,176
Total Past Due	0	0
Total	1,382,664	1,090,176
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	751,613	536,917
Total Past Due	476	5,111
Total	752,089	542,028
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,182,933	411,857
Total Past Due	21,422	14,083
Total	1,204,355	425,940
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	69,830	48,408
Total Past Due	241	378
Total	70,071	48,786
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Non-accrual loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,191	21,909
Total Past Due	19,555	22,016
Financing Receivable, Recorded Investment, Nonaccrual Status	27,746	43,925
Non-accrual loans [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	1,089
Total Past Due	0	792
Financing Receivable, Recorded Investment, Nonaccrual Status	0	1,881
Non-accrual loans [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	0	5,840
Financing Receivable, Recorded Investment, Nonaccrual Status	0	5,840
Non-accrual loans [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Non-accrual loans [Member] | Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,639	17,913
Total Past Due	7,451	4,113
Financing Receivable, Recorded Investment, Nonaccrual Status	15,090	22,026
Non-accrual loans [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	476	0
Financing Receivable, Recorded Investment, Nonaccrual Status	476	0
Non-accrual loans [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	868
Total Past Due	0	5,111
Financing Receivable, Recorded Investment, Nonaccrual Status	0	5,979
Non-accrual loans [Member] | Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	552	2,039
Total Past Due	11,387	6,078
Financing Receivable, Recorded Investment, Nonaccrual Status	11,939	8,117
Non-accrual loans [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	241	82
Financing Receivable, Recorded Investment, Nonaccrual Status	241	82
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16,944	13,221
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,441	1,026
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	2,993
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,187	2,245
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,316	6,874
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	83
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,902	2,369
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	416	669
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	476	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,010	1,487
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	213
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	14,883	16,974
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	618	130
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	2,847
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,928	3,082
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	5,111
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,096	5,722
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 241	$ 82

XML

Loans, Leases and Allowance for Credit Losses - Summary of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 Days Still Accruing Interest by Loan Class (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 17,673,900	$ 15,061,371
Total Past Due	36,729	32,564
Financing Receivable, Recorded Investment, Nonaccrual Status	27,746	43,925
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	594	43
Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,753,111	6,835,385
Total Past Due	9,531	5,996
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	43
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	2,320,321	2,240,457
Total Past Due	5,059	1,156
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	594	0
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	4,051,837	3,696,729
Total Past Due	0	5,840
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	161,591	201,442
Total Past Due	0	0
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,382,664	1,090,176
Total Past Due	0	0
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	751,613	536,917
Total Past Due	476	5,111
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	1,182,933	411,857
Total Past Due	21,422	14,083
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	69,830	48,408
Total Past Due	241	378
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	0	0
Non-accrual loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	8,191	21,909
Total Past Due	19,555	22,016
Financing Receivable, Recorded Investment, Nonaccrual Status	27,746	43,925
Non-accrual loans [Member] | Commercial And Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	7,639	17,913
Total Past Due	7,451	4,113
Financing Receivable, Recorded Investment, Nonaccrual Status	15,090	22,026
Non-accrual loans [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	1,089
Total Past Due	0	792
Financing Receivable, Recorded Investment, Nonaccrual Status	0	1,881
Non-accrual loans [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	0	5,840
Financing Receivable, Recorded Investment, Nonaccrual Status	0	5,840
Non-accrual loans [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Non-accrual loans [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	476	0
Financing Receivable, Recorded Investment, Nonaccrual Status	476	0
Non-accrual loans [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	868
Total Past Due	0	5,111
Financing Receivable, Recorded Investment, Nonaccrual Status	0	5,979
Non-accrual loans [Member] | Residential real estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	552	2,039
Total Past Due	11,387	6,078
Financing Receivable, Recorded Investment, Nonaccrual Status	11,939	8,117
Non-accrual loans [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	0	0
Total Past Due	241	82
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 241	$ 82

XML

Loans, Leases and Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Leases [Line Items]
Loans and Leases Receivable, Deferred Income	$ 36,300	$ 25,300
Receivable with Imputed Interest, Discount	2,000	8,500
Interest Rate Marks on Acquired Loans	7,100	14,100
Credit Mark on Acquired Loans	14,600	27,000
Financing Receivable, Recorded Investment, Nonaccrual Status	27,746	43,925
Impaired Financing Receivable, Average Recorded Investment	104,825	104,866	$ 109,461
Aggregate carrying amount of impaired loans	986	19,315
Reduction in interest income due to nonaccrual loans	2,300	2,400	2,000
Loans And Loans Receivable Purchases	1,600,000	908,100
Financing Receivable, Significant Sales	66,500	170,900
Impaired loans with no allowance recorded	111,266	79,239
Impaired loans with an allowance recorded	681	5,606
Loans and Leases Receivable, Gain (Loss) on Sales, Net	2,600	900
Troubled Debt Restructured Loans [Member]
Leases [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	8,000	10,100
Impaired Financing Receivable, Average Recorded Investment	51,200	55,500	$ 68,800
Aggregate carrying amount of impaired loans	0	3,700
Loan commitments outstanding	1,500	0
Impaired loans with no allowance recorded	44,500	48,800
Impaired loans with an allowance recorded	0	1,200
Construction and land development [Member]
Leases [Line Items]
Aggregate carrying amount of impaired loans	0	0
Impaired loans with no allowance recorded	9,403	15,426
Impaired loans with an allowance recorded	0	0
Residential real estate [Member]
Leases [Line Items]
Aggregate carrying amount of impaired loans	363	0
Loans And Loans Receivable Purchases	883,200	211,500
Impaired loans with no allowance recorded	19,381	17,170
Impaired loans with an allowance recorded	60	0
Commercial And Industrial [Member]
Leases [Line Items]
Aggregate carrying amount of impaired loans	623	19,315
Loans And Loans Receivable Purchases	690,100	696,600
Impaired loans with no allowance recorded	63,273	14,842
Impaired loans with an allowance recorded	621	5,606
Consumer [Member]
Leases [Line Items]
Aggregate carrying amount of impaired loans	0	0
Impaired loans with no allowance recorded	272	121
Impaired loans with an allowance recorded	$ 0	$ 0

XML

Loans, Leases and Allowance for Credit Losses - Loans by Risk Rating (Detail) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	$ 17,710,629,000	$ 15,093,935,000
Current	17,673,900,000	15,061,371,000
Total Past Due	36,729,000	32,564,000
Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	7,762,642,000	6,841,381,000
Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,204,355,000	425,940,000
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	70,071,000	48,786,000
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	2,325,380,000	2,241,613,000
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	4,051,837,000	3,702,569,000
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	161,591,000	201,442,000
Construction and land development [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,382,664,000	1,090,176,000
Construction and land development [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	752,089,000	542,028,000
Pass [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	17,412,922,000	14,767,297,000
Current	17,400,616,000	14,758,149,000
Pass [Member] | Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	7,574,506,000	6,675,574,000
Pass [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,191,571,000	408,527,000
Pass [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	69,755,000	47,824,000
Pass [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	2,255,513,000	2,149,465,000
Pass [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	4,030,350,000	3,676,711,000
Pass [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	161,591,000	201,442,000
Pass [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,378,624,000	1,072,342,000
Pass [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	751,012,000	535,412,000
Watch [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	88,856,000	155,032,000
Current	87,264,000	154,295,000
Watch [Member] | Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	61,202,000	85,781,000
Watch [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	527,000	8,971,000
Watch [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	75,000	878,000
Watch [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	12,860,000	43,122,000
Watch [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	12,982,000	11,166,000
Watch [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Watch [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,210,000	4,477,000
Watch [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	637,000
Substandard [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	208,273,000	167,279,000
Current	186,020,000	145,934,000
Substandard [Member] | Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	126,356,000	76,328,000
Substandard [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	12,257,000	8,442,000
Substandard [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	241,000	84,000
Substandard [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	57,007,000	48,397,000
Substandard [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	8,505,000	14,692,000
Substandard [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Substandard [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	2,830,000	13,357,000
Substandard [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	1,077,000	5,979,000
Doubtful [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	578,000	4,327,000
Current	0	2,993,000
Doubtful [Member] | Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	578,000	3,698,000
Doubtful [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Doubtful [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Doubtful [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	629,000
Doubtful [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Doubtful [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Doubtful [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Doubtful [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Current	0	0
Loss [Member] | Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Residential real estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Loss [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total	0	0
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	16,944,000	13,221,000
Financing Receivables, 30 to 59 Days Past Due [Member] | Pass [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	11,255,000	7,966,000
Financing Receivables, 30 to 59 Days Past Due [Member] | Watch [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	1,580,000	518,000
Financing Receivables, 30 to 59 Days Past Due [Member] | Substandard [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	4,109,000	4,737,000
Financing Receivables, 30 to 59 Days Past Due [Member] | Doubtful [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Loss [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	4,902,000	2,369,000
Financing Receivables, 60 to 89 Days Past Due [Member] | Pass [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	719,000	1,182,000
Financing Receivables, 60 to 89 Days Past Due [Member] | Watch [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	12,000	219,000
Financing Receivables, 60 to 89 Days Past Due [Member] | Substandard [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	3,767,000	968,000
Financing Receivables, 60 to 89 Days Past Due [Member] | Doubtful [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	404,000	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Loss [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	14,883,000	16,974,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Pass [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	332,000	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Watch [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Substandard [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	14,377,000	15,640,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Doubtful [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	174,000	1,334,000
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Loss [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total Past Due	$ 0	$ 0

XML

Loans, Leases and Allowance for Credit Losses - Recorded Investment in Loans Classified as Impaired (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Impaired loans with an allowance recorded	$ 986	$ 19,315
Impaired loans with no allowance recorded	111,266	79,239
Total impaired loans	112,252	98,554
Valuation allowance related to impaired loans	(681)	(5,606)
Troubled Debt Restructured Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Impaired loans with an allowance recorded	0	3,700
Impaired loans with no allowance recorded	44,500	48,800
Valuation allowance related to impaired loans	$ 0	$ (1,200)

XML

Loans, Leases and Allowance for Credit Losses - Impaired Loans by Loan Class (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	$ 112,252	$ 98,554
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	63,896	34,156
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	19,744	17,170
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	272	121
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	63,896	34,157
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	6,530	10,430
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	12,407	21,251
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	$ 9,403	$ 15,426

XML

Loans, Leases and Allowance for Credit Losses - Schedule of Average Investment in Impaired Loans and Income Recognized on Impaired Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Impaired Financing Receivable, Average Recorded Investment	$ 104,825	$ 104,866	$ 109,461
Interest income recognized on impaired loans	4,490	4,046	4,167
Interest recognized on nonaccrual loans, cash basis	$ 1,745	$ 1,614	$ 1,254

XML

Loans, Leases and Allowance for Credit Losses - Average Investment in Impaired Loans by Loan Class (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	$ 104,825	$ 104,866	$ 109,461
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	52,496	33,519	26,577
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	19,425	16,893	16,096
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	300	204	284
Troubled Debt Restructured Loans [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	51,200	55,500	68,800
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	7,682	18,692	18,865
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	15,375	22,000	30,633
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	0	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	0	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	$ 9,547	$ 13,558	$ 17,006

XML

Loans, Leases and Allowance for Credit Losses - Interest Income on Impaired Loans by Loan Class (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	$ 4,490	$ 4,046	$ 4,167
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	2,113	1,077	727
Owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	491	677	849
Non-owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	937	1,074	1,196
Multi-family [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	0	0	0
Construction [Member] | Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	0	0	0
Land [Member] | Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	566	699	830
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	381	516	560
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	$ 2	$ 3	$ 5

XML

Loans, Leases and Allowance for Credit Losses - Tabular Disclosure of Nonperforming Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 27,746	$ 43,925
Loans past due 90 days or more on accrual status	594	43
Troubled debt restructured loans	36,458	42,431
Total nonperforming loans	64,798	86,399
Other assets acquired through foreclosure, net	17,924	28,540	$ 47,815	$ 43,942
Total nonperforming assets	82,722	114,939
Troubled Debt Restructured Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 8,000	10,100
Financial Asset Acquired with Credit Deterioration [Member]
Loans past due 90 days or more on accrual status		$ 100

XML

Loans, Leases and Allowance for Credit Losses - Changes in Accretable Discount for Loans Purchased with Credit Quality Deterioration (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions			$ 4,301
Balance at beginning of period	$ 9,324	$ 15,177	15,925
Reclassifications from non-accretable to accretable yield (1)			1,892
Accretion to interest income			(3,439)
Reversal of fair value adjustments upon disposition of loans			(3,502)
Balance at end of period		9,324	$ 15,177
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions	0	0
Balance at beginning of period	9,324
Reclassifications from non-accretable to accretable yield (1)	683	2,086
Accretion to interest income	(1,018)	(2,797)
Reversal of fair value adjustments upon disposition of loans	(5,222)	(5,142)
Balance at end of period	$ 3,768	$ 9,324

XML

Loans, Leases and Allowance for Credit Losses - Allowances for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation Allowance [Line Items]
Beginning Balance				$ 140,050				$ 124,704	$ 140,050	$ 124,704	$ 119,068
Charge-offs									16,420	11,004	13,549
Recoveries									(6,087)	(9,100)	(11,185)
Provision for credit losses	$ 6,000	$ 6,000	$ 5,000	6,000	$ 5,000	$ 5,000	$ 3,000	4,250	23,000	17,250	8,000
Ending balance	152,717				140,050				152,717	140,050	124,704
Construction and land development [Member]
Valuation Allowance [Line Items]
Beginning Balance				19,599				21,175	19,599	21,175	18,976
Charge-offs									1	0	18
Recoveries									(1,433)	(1,229)	(485)
Provision for credit losses									1,482	(2,805)	1,732
Ending balance	22,513				19,599				22,513	19,599	21,175
Commercial real estate [Member]
Valuation Allowance [Line Items]
Beginning Balance				31,648				25,673	31,648	25,673	23,160
Charge-offs									233	2,269	728
Recoveries									(1,237)	(2,897)	(5,690)
Provision for credit losses									2,177	5,347	(2,449)
Ending balance	34,829				31,648				34,829	31,648	25,673
Residential real estate [Member]
Valuation Allowance [Line Items]
Beginning Balance				5,500				3,851	5,500	3,851	5,278
Charge-offs									1,038	447	165
Recoveries									(947)	(1,778)	(875)
Provision for credit losses									5,867	318	(2,137)
Ending balance	11,276				5,500				11,276	5,500	3,851
Commercial And Industrial [Member]
Valuation Allowance [Line Items]
Beginning Balance				82,527				73,333	82,527	73,333	71,181
Charge-offs									15,034	8,186	12,477
Recoveries									(2,427)	(3,112)	(3,991)
Provision for credit losses									13,198	14,268	10,638
Ending balance	83,118				82,527				83,118	82,527	73,333
Consumer [Member]
Valuation Allowance [Line Items]
Beginning Balance				$ 776				$ 672	776	672	473
Charge-offs									114	102	161
Recoveries									(43)	(84)	(144)
Provision for credit losses									276	122	216
Ending balance	$ 981				$ 776				$ 981	$ 776	$ 672

XML

Loans, Leases and Allowance for Credit Losses - Summary of Impairment Method Information Related to Loans and Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	$ 986	$ 19,315
Impaired loans with no allowance recorded	111,266	79,239
Total loans individually evaluated for impairment	112,252	98,554
Loans collectively evaluated for impairment	17,514,822	14,879,626
Impaired Financing Receivable, Recorded Investment	112,252	98,554
Total recorded investment	17,710,629	15,093,935
Impaired loans with an allowance recorded	1,845	20,795
Impaired loans with no allowance recorded	198,234	156,789
Total loans individually evaluated for impairment	200,079	177,584
Loans collectively evaluated for impairment	17,514,822	14,879,626
Total unpaid principal balance	17,820,320	15,202,135
Impaired loans with an allowance recorded	681	5,606
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	681	5,606
Loans collectively evaluated for impairment	151,940	132,813
Total loans held for investment	152,717	140,050
Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	6,530	10,430
Total loans individually evaluated for impairment	6,530	10,430
Loans collectively evaluated for impairment	2,314,871	2,221,614
Total recorded investment	2,325,380	2,241,613
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	11,852	17,459
Total loans individually evaluated for impairment	11,852	17,459
Loans collectively evaluated for impairment	2,314,871	2,221,614
Total unpaid principal balance	2,332,038	2,251,692
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	14,286	13,884
Total loans held for investment	14,286	13,884
Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	12,407	21,250
Total loans individually evaluated for impairment	12,407	21,250
Loans collectively evaluated for impairment	4,121,464	3,777,219
Total recorded investment	4,213,428	3,904,011
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	18,155	28,028
Total loans individually evaluated for impairment	18,155	28,028
Loans collectively evaluated for impairment	4,121,464	3,777,219
Total unpaid principal balance	4,235,299	3,933,687
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	20,456	16,135
Total loans held for investment	20,543	17,764
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	623	19,315
Impaired loans with no allowance recorded	63,273	14,842
Total loans individually evaluated for impairment	63,896	34,157
Loans collectively evaluated for impairment	7,698,746	6,807,181
Total recorded investment	7,762,642	6,841,381
Impaired loans with an allowance recorded	1,482	20,795
Impaired loans with no allowance recorded	103,992	42,261
Total loans individually evaluated for impairment	105,474	63,056
Loans collectively evaluated for impairment	7,698,746	6,807,181
Total unpaid principal balance	7,808,572	6,873,383
Impaired loans with an allowance recorded	621	5,606
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	621	5,606
Loans collectively evaluated for impairment	82,488	76,919
Total loans held for investment	83,118	82,527
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	363	0
Impaired loans with no allowance recorded	19,381	17,170
Total loans individually evaluated for impairment	19,744	17,170
Loans collectively evaluated for impairment	1,184,592	408,169
Total recorded investment	1,204,355	425,940
Impaired loans with an allowance recorded	363	0
Impaired loans with no allowance recorded	27,979	26,057
Total loans individually evaluated for impairment	28,342	26,057
Loans collectively evaluated for impairment	1,184,592	408,169
Total unpaid principal balance	1,213,006	434,946
Impaired loans with an allowance recorded	60	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	60	0
Loans collectively evaluated for impairment	11,216	5,500
Total loans held for investment	11,276	5,500
Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	9,403	15,426
Total loans individually evaluated for impairment	9,403	15,426
Loans collectively evaluated for impairment	2,125,350	1,616,778
Total recorded investment	2,134,753	1,632,204
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	25,624	32,289
Total loans individually evaluated for impairment	25,624	32,289
Loans collectively evaluated for impairment	2,125,350	1,616,778
Total unpaid principal balance	2,150,974	1,649,067
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	22,513	19,599
Total loans held for investment	22,513	19,599
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	272	121
Total loans individually evaluated for impairment	272	121
Loans collectively evaluated for impairment	69,799	48,665
Total recorded investment	70,071	48,786
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	10,632	10,695
Total loans individually evaluated for impairment	10,632	10,695
Loans collectively evaluated for impairment	69,799	48,665
Total unpaid principal balance	80,431	59,360
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	981	776
Total loans held for investment	981	776
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	83,555	115,755
Loans acquired with deteriorated credit quality	105,419	144,925
Impaired loans with an allowance recorded	96	1,631
Financial Asset Acquired with Credit Deterioration [Member] | Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	3,979	9,569
Loans acquired with deteriorated credit quality	5,315	12,619
Impaired loans with an allowance recorded	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	79,557	105,542
Loans acquired with deteriorated credit quality	95,680	128,440
Impaired loans with an allowance recorded	87	1,629
Financial Asset Acquired with Credit Deterioration [Member] | Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	43
Loans acquired with deteriorated credit quality	4,352	3,146
Impaired loans with an allowance recorded	9	2
Financial Asset Acquired with Credit Deterioration [Member] | Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	19	601
Loans acquired with deteriorated credit quality	72	720
Impaired loans with an allowance recorded	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	0
Loans acquired with deteriorated credit quality	0	0
Impaired loans with an allowance recorded	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Consumer [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	0
Loans acquired with deteriorated credit quality	0	0
Impaired loans with an allowance recorded	$ 0	$ 0

XML

Loans, Leases and Allowance for Credit Losses - Troubled Debt Restructured Loans by Loan Class (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) SecurityLoan	Dec. 31, 2017 USD ($) SecurityLoan	Dec. 31, 2016 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	12	15	2
Pre-Modification Outstanding Recorded Investment	$ 35,426	$ 6,628	$ 2,405
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	35,426	6,628	2,405
Waived Fees and Other Expenses	0	0	$ 0
Troubled Debt Restructured Loans [Member]
Financing Receivable, Modifications [Line Items]
Loan commitments outstanding	$ 1,500	$ 0
Commercial And Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	11	11	2
Pre-Modification Outstanding Recorded Investment	$ 35,132	$ 3,513	$ 2,405
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	35,132	3,513	2,405
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	1	1	0
Pre-Modification Outstanding Recorded Investment	$ 294	$ 122	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	294	122	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Non-owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	3	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 2,993	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	2,993	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Multi-family [Member] | Commercial real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Construction [Member] | Construction and land development [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Land [Member] | Construction and land development [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0

XML

Loans, Leases and Allowance for Credit Losses - Troubled Debt Restructured Loans by Class for Which There was Payment Default (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) SecurityLoan	Dec. 31, 2017 USD ($) SecurityLoan	Dec. 31, 2016 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	6	3
Recorded Investment | $	$ 0	$ 1,697	$ 5,789
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Recorded Investment | $	$ 0	$ 0	$ 0
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	1	1
Recorded Investment | $	$ 0	$ 308	$ 5,381
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	1	0
Recorded Investment | $	$ 0	$ 135	$ 0
Commercial And Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	1	0
Recorded Investment | $	$ 0	$ 87	$ 0
Construction and land development [Member] | Land [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Recorded Investment | $	$ 0	$ 0	$ 0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	2	0
Recorded Investment | $	$ 0	$ 1,119	$ 0
Residential real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	1	2
Recorded Investment | $	$ 0	$ 48	$ 408
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | SecurityLoan	0	0	0
Recorded Investment | $	$ 0	$ 0	$ 0

XML

Loans, Leases and Allowance for Credit Losses - Summary of Aggregate Activity in Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finance Receivable Transferred To Held For Sale [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 27,746	$ 43,925
Impaired Financing Receivable, Average Recorded Investment	104,825	104,866	$ 109,461
Impaired loans with an allowance recorded	986	19,315
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	2,300	2,400	2,000
Impaired loans with no allowance recorded	111,266	79,239
Impaired loans with an allowance recorded	681	5,606
Loans And Loans Receivable Purchases	1,600,000	908,100
Financing Receivable, Significant Sales	66,500	170,900
Loans and Leases Receivable, Gain (Loss) on Sales, Net	2,600	900
Troubled Debt Restructured Loans [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Loan commitments outstanding	1,500	0
Financing Receivable, Recorded Investment, Nonaccrual Status	8,000	10,100
Impaired Financing Receivable, Average Recorded Investment	51,200	55,500	$ 68,800
Impaired loans with an allowance recorded	0	3,700
Impaired loans with no allowance recorded	44,500	48,800
Impaired loans with an allowance recorded	0	1,200
Commercial And Industrial [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired loans with an allowance recorded	623	19,315
Impaired loans with no allowance recorded	63,273	14,842
Impaired loans with an allowance recorded	621	5,606
Loans And Loans Receivable Purchases	690,100	696,600
Construction and land development [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	9,403	15,426
Impaired loans with an allowance recorded	0	0
Construction Loans [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Loans And Loans Receivable Purchases	27,500
Residential real estate [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired loans with an allowance recorded	363	0
Impaired loans with no allowance recorded	19,381	17,170
Impaired loans with an allowance recorded	60	0
Loans And Loans Receivable Purchases	$ 883,200	$ 211,500

XML

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Operating Leases, Rent Expense, Net	$ 11,000	$ 10,400	$ 11,000
Buildings and Improvements, Gross	89,930	89,411
Operating Leases, Future Minimum Payments Due, Next Twelve Months	11,370
Operating Leases, Future Minimum Payments, Due in Two Years	10,322
Operating Leases, Future Minimum Payments, Due in Three Years	7,418
Operating Leases, Future Minimum Payments, Due in Four Years	6,294
Operating Leases, Future Minimum Payments, Due in Five Years	6,070
Operating Leases, Future Minimum Payments, Due Thereafter	15,417
Operating Leases, Future Minimum Payments Due	56,891
Land and Land Improvements	32,954	32,953
Furniture Fixtures And Equipment Gross	42,729	37,098
Leasehold Improvements, Gross	25,919	23,707
Construction in Progress, Gross	6,302	1,415
Property, Plant and Equipment, Gross	197,834	184,584
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(78,360)	(65,865)
Premises and equipment, net	119,474	118,719
Depreciation, Nonproduction	$ 10,600	$ 9,900	$ 9,200

XML

Other Assets Acquired through Foreclosure - Changes in Other Assets Acquired through Foreclosure (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Property	Dec. 31, 2017 USD ($) Property	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Gains Losses On Transfers To Other Real Estate And Foreclosed Assets	$ 1,000	$ 100	$ 400
Number of Real Estate Properties | Property	11	19
Balance, beginning of the period, Gross Balance	$ 32,552	$ 54,138	52,984
Transfers to other assets acquired through foreclosure, net, Gross Balance	5,744	1,812	13,110
Proceeds from sale of other real estate owned and repossessed assets, net, Gross Balance	(12,636)	(23,626)	(11,584)
Gains (losses), net, Gross Balance	1,214	228	(372)
Balance, end of period, Gross Balance	19,979	32,552	54,138
Balance, beginning of the period, Valuation Allowance	(4,012)	(6,323)	(9,042)
Proceeds from sale of other real estate owned and repossessed assets, net, Valuation Allowance	3,224	2,431	2,451
Valuation adjustments, net, Valuation Allowance	1,267	120	(268)
Balance, end of period, Valuation Allowance	(2,055)	(4,012)	(6,323)
Balance, beginning of the period, Net Balance	28,540	47,815	43,942
Transfers to other assets acquired through foreclosure, net, Net Balance	5,744	1,812	13,110
Proceeds from sale of other real estate owned and repossessed assets, net, Net Balance	(9,412)	(21,195)	(9,133)
Noncash Contribution Expense	6,895	0	0
Valuation adjustments of other repossessed assets, net	(1,267)	(120)	268
Gains (losses), net, Net Balance	1,214	228	(372)
Balance, end of period, Net Balance	$ 17,924	$ 28,540	$ 47,815

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Other Assets Acquired through Foreclosure - Changes in Other Assets Acquired through Foreclosure Parenthetical (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Property	Dec. 31, 2017 USD ($) Property	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract]
Transfers to other assets acquired through foreclosure, net	$ 5,744	$ 1,812	$ 13,110
Proceeds from sale of other real estate owned and repossessed assets, net, Gross Balance	(12,636)	(23,626)	(11,584)
Proceeds from Sale of Foreclosed Assets	(9,412)	(21,195)	(9,133)
Noncash Contribution Expense	(6,895)	0	0
Gains (losses), net, Gross Balance	1,214	228	(372)
Real Estate Owned, Valuation Allowance	(2,055)	(4,012)	(6,323)	$ (9,042)
Proceeds from sale of other real estate owned and repossessed assets, net, Valuation Allowance	3,224	2,431	2,451
Repossessed Assets	17,924	28,540	47,815	43,942
Foreclosed Assets Gross	19,979	32,552	54,138	$ 52,984
Valuation adjustments, net, Valuation Allowance	1,267	120	(268)
Valuation adjustments of other repossessed assets, net	(1,267)	(120)	268
Gains Losses On Transfers To Other Real Estate And Foreclosed Assets	$ 1,000	$ 100	$ 400
Number of Real Estate Properties | Property	11	19

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Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 289,895	$ 289,895
Finite-Lived Trade Names, Gross	350	350
Trade Name, Impaired, Accumulated Impairment Loss	0	0
Indefinite-Lived Trade Names	350	350
Finite-Lived Intangible Assets, Net	8,910
Intangible amortization	1,594	2,074	$ 2,788
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	14,647	14,647
Finite-Lived Intangible Assets, Accumulated Amortization	5,737	4,144
Finite-Lived Intangible Assets, Net	$ 8,910	$ 10,503

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Deposits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Deposit [Abstract]
Certificates of Deposit, CDARS	$ 322,900,000	$ 401,400,000
Non-interest-bearing demand	2,290,000,000	1,850,000,000
Time Deposit Maturities, Next Twelve Months	1,707,065,000
Time Deposit Maturities, Year Two	101,572,000
Time Deposit Maturities, Year Three	21,336,000
Time Deposit Maturities, Year Four	1,854,000
Time Deposit Maturities, Year Five	3,161,000
Time Deposits	1,834,988,000
Interest Bearing Deposit Demand	2,555,609,000	1,586,209,000
Deposits, Savings Deposits	7,330,709,000	6,330,977,000
Time Deposits, $250,000 or more	1,009,900,000	713,654,000
Time Deposits, Less than $250,000	825,088,000	907,730,000
Total deposits	19,177,447,000	16,972,532,000
Deposits, ICS	706,900,000	617,900,000
Deposits, Wholesale	718,200,000	67,300,000
Deposits costs, deposits with earnings credits	$ 18,000,000	$ 8,700,000

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Other Borrowings - Company's Borrowings (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Short Term
Revolving line of credit		$ 0
Federal Funds Purchased	$ 256,000	0
FHLB advances	235,000	390,000
Short-term Debt	491,000	390,000
Customer repurchase agreements	22,411	26,017
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 2,520,000	$ 1,910,000

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Other Borrowings - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Debt [Line Items]
Weighted average interest rate of FHLB and FRB Short-term advances	2.56%	1.41%
Revolving line of credit		$ 0
FHLB advances	$ 235,000	390,000
Federal Home Loan Bank Advances [Member]
Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	2,520,000	1,910,000
FRB [Member]
Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	1,310,000	$ 1,110,000
Unsecured Credit Facility [Member]
Debt [Line Items]
Secured borrowing credit line	$ 715,000

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Qualifying Debt (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Qualifying Debt [Abstract]
Proceeds from issuance of subordinated debt	$ 0	$ 0	$ 169,256

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Qualifying Debt Subordinated Debt Details (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Jun. 16, 2016	Jun. 29, 2015
Debt Instrument [Line Items]
Subordinated Debt	$ 299,400,000	$ 308,600,000
Subordinated Debt [Member] | Subordinated Debentures Maturing July 2056 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount			$ 175,000,000.0
Debt Issuance Cost			$ 5,500,000
Debt Instrument, Interest Rate, Stated Percentage			6.25%
Subordinated Debt [Member] | Subordinated Debentures Maturing July 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 150,000,000.0
Debt Issuance Cost				$ 1,800,000

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Qualifying Debt Junior Subordinated Debt (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Trust	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Number of Statutory Business Trusts Formed or Acquired | Trust	8
Subordinated Debt Obligations, Fair Value Disclosure	$ 48,684	$ 56,234
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	61,057	68,296
Business Combination, Fair Market Value Adjustment on Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	(5,155)	(5,465)
Bridge Capital Trust I [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	12,372	12,372
Bridge Capital Trust II [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	$ 5,155	$ 5,155
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate, at Point in Time	5.15%	4.03%
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Subordinated Debt Obligations, Fair Value Disclosure	$ 48,685	$ 56,234
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	66,497	66,497
Unrealized gain or loss on junior subordinated debt [Line Items]	(17,812)	(10,263)
Junior Subordinated Debt [Member] | BankWest Nevada Capital Trust II [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	15,464	15,464
Junior Subordinated Debt [Member] | Intermountain First Statutory Trust I [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	10,310	10,310
Junior Subordinated Debt [Member] | First Independent Capital Trust I [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	7,217	7,217
Junior Subordinated Debt [Member] | WAL Trust No. 1 [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	20,619	20,619
Junior Subordinated Debt [Member] | WAL Statutory Trust No. 2 [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	5,155	5,155
Junior Subordinated Debt [Member] | WAL Statutory Trust No. 3 [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	7,732	7,732
Bridge Capital Holdings [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	17,527	17,527
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Junior Subordinated Debt	12,372	12,062
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)	$ 7,550	$ (5,824)	$ (3,482)

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Qualifying Debt Supplemental Schedule - Adoption of ASU 2016-01 (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018	Dec. 31, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Retained earnings	$ (33,622)				$ (3,145)				$ (33,622)	$ (3,145)	$ (4,695)	$ (4,203)	$ 22,260
Accumulated other comprehensive (loss)	1,282,705				848,466				1,282,705	848,466
Non-interest income	13,611	$ 4,418	$ 13,444	$ 11,643	13,688	$ 10,456	$ 10,601	$ 10,599	43,116	45,344	42,915
Income Tax Expense (Benefit)	20,909	7,492	25,325	20,814	34,973	34,899	31,964	24,489	74,540	126,325	101,381
Net income	$ 119,086	$ 111,123	$ 104,679	$ 100,900	$ 89,346	$ 82,844	$ 79,960	$ 73,342	435,788	325,492	259,798
Net income available to common stockholders									$ 435,788	$ 325,492	$ 259,798
Earnings Per Share, Basic	$ 1.14	$ 1.06	$ 1.00	$ 0.97	$ 0.86	$ 0.79	$ 0.77	$ 0.71	$ 4.16	$ 3.12	$ 2.52
Earnings Per Share, Diluted	$ 1.13	$ 1.05	$ 0.99	$ 0.96	$ 0.85	$ 0.79	$ 0.76	$ 0.70	$ 4.14	$ 3.10	$ 2.50

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Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	10,500,000
Treasury Stock Acquired, Average Cost Per Share	$ 57.88	$ 51.16
Treasury Stock, Shares, Acquired	223,125	269,835
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options	$ 22.7
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term	1 year 8 months 15 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	425,000	531,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,027,000	1,142,000	1,278,000
Weighted Average Selling Price Per Share			$ 36.63
Proceeds from Issuance of Common Stock, Gross			$ 56.8
Stock Repurchase Program, Authorized Amount	$ 250.0
Stock Repurchased and Retired During Period, Shares	900,883
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Offering Cost from Issuance of Common Stock			$ 1.0
Treasury Stock, Shares, Acquired	223,000	270,000	305,000
Stock Issued During Period, Shares, New Issues			1,550,000
Stock Repurchased and Retired During Period, Shares	(901,000)
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 6.4	$ 6.5	$ 5.7
Tax Year 2015 [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	202,074
Tax Year 2016 [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	202,775
Grant year 2017 [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	163,903
2017 [Member] [Domain] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	87,281

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Stockholders' Equity - Summary of Unvested Shares of Restricted Stock and Changes (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	425,000	531,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,027,000	1,142,000	1,278,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 47.53	$ 36.96	$ 26.02
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(477,000)	(575,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 32.31	$ 23.14
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(63,000)	(92,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 43.62	$ 34.51
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Intrinsic Value	$ 24.7	$ 26.1	$ 15.3
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	27.4	29.1	18.3
Allocated Share-based Compensation Expense	16.6	14.3	10.7
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 6.4	6.5	5.7
Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0
Allocated Share-based Compensation Expense	$ 2.5	$ 2.3	$ 1.1
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, New Issues			1,550,000

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Stockholders' Equity Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchased and Retired During Period, Value	$ (35,688)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 58.02	$ 49.06
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Intrinsic Value	$ 24,700	$ 26,100	$ 15,300
Allocated Share-based Compensation Expense	16,600	14,300	10,700
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	6,400	6,500	5,700
Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 2,500	$ 2,300	$ 1,100

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Stockholders' Equity Treasury shares (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Shares, Acquired	223,125	269,835
Treasury Stock Acquired, Average Cost Per Share	$ 57.88	$ 51.16

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Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Retained earnings	$ (3,145)	$ (4,695)	$ 22,260	$ (4,203)
Unrealized (loss) gain on SERP, net of tax effect of $24, $(79), and $(18), respectively	(77)	264	31
Beginning balance	(3,145)	(4,695)	22,260
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(35,192)	2,994	(26,300)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	5,773	(1,444)	(655)
Net other comprehensive (loss) income	(29,419)	1,550	(26,955)
Ending balance	(33,622)	(3,145)	(4,695)
Unrealized holding gains (losses) on AFS
Accumulated Other Comprehensive Income (Loss) [Line Items]
Retained earnings	(10,026)	(14,916)	9,993	(12,556)
Beginning balance	(10,026)	(14,916)	9,993
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(40,808)	6,334	(24,254)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	5,773	(1,444)	(655)
Net other comprehensive (loss) income	(35,035)	4,890	(24,909)
Ending balance	(47,591)	(10,026)	(14,916)
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Retained earnings	6,352	9,956	12,033	7,740
Beginning balance	6,352	9,956	12,033
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	5,693	(3,604)	(2,077)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Net other comprehensive (loss) income	5,693	(3,604)	(2,077)
Ending balance	13,433	6,352	9,956
Impairment loss on securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Retained earnings	144	144	144	144
Beginning balance	144	144	144
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Net other comprehensive (loss) income	0	0	0
Ending balance	144	144	144
Supplemental Employee Retirement Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Retained earnings	385	121	90	$ 469
Beginning balance	385	121	90
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(77)	264	31
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Net other comprehensive (loss) income	(77)	264	31
Ending balance	$ 392	$ 385	$ 121

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Accumulated Other Comprehensive Income - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income	$ 1,883	$ (899)	$ (404)
Amount reclassified from accumulated other comprehensive income	(5,773)	1,444	655
Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Realized gains on sales of investment securities	(7,656)	2,343
Amount reclassified from accumulated other comprehensive income	(1,883)	899
Amount reclassified from accumulated other comprehensive income	$ (5,773)	$ 1,444	655
Realized Gain Loss On Sale Of Investment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Realized gains on sales of investment securities			1,059
Income Tax Expense [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income			$ 404

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Derivatives and Hedging Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Derivative, Amount of Hedged Item, Loans	$ 650,428	$ 699,452
Fair Value Hedge Assets, Loans	23,039	41,919
Other Derivatives Not Designated as Hedging Instruments at Fair Value, Net	300	200	$ 100
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	4,800	3,500	1,800
Derivative, Amount of Hedged Item	(299,401)	(308,608)
Fair Value Hedge Assets	19,691	9,959
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	965,705	993,432	993,485
Derivative Asset, Fair Value, Gross Asset	2,162	1,703	4,220
Derivative Liability, Fair Value, Gross Liability	44,892	53,581	65,749
Derivative Instruments Notional Amount Netting Adjustments	0	0	0
Derivative Netting Adjustments	2,162	896	1,869
Positive NPVs	0	807	2,351
Negative NPVs	42,730	52,685	63,880
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	965,705	993,432	993,485
Derivative Asset, Fair Value, Gross Asset	2,162	1,703	4,220
Derivative Liability, Fair Value, Gross Liability	44,892	53,581	65,749
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	52,068	122,304	18,421
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	481	2,008	251
Derivative Liability, Fair Value, Gross Liability	228	1,759	191
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,378	36,969	0
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	27	776	0
Derivative Liability, Fair Value, Gross Liability	27	776	0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	49,690	85,335	18,421
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	454	1,232	251
Derivative Liability, Fair Value, Gross Liability	$ 201	$ 983	$ 191

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Derivatives and Hedging Pre-Tax Net Gains (Losses) on Fair Value Hedges (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	$ 4.8	$ 3.5	$ 1.8

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Derivatives and Hedging Largest Exposure to Individual Counterparty (Detail) - Largest individual counterparty [Member] - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Largest gross exposure (positive derivative NPV) to an individual counterparty	$ 1,411	$ 893	$ 2,351
Collateral posted by this counterparty	0	0	1,691
Derivative, Net Liability Position, Aggregate Fair Value	23,906	40,340	0
Collateral pledged to this counterparty	25,761	60,476	0
Net exposure after netting adjustments and collateral	$ 0	$ 0	$ 660

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Derivatives and Hedging Additional Information (Detail) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jun. 16, 2016	Jun. 29, 2015
Derivative [Line Items]
Derivative, Amount of Hedged Item, Loans	$ 650,428,000	$ 699,452,000
Fair Value Hedge Assets, Loans	23,039,000	41,919,000
Derivative, Amount of Hedged Item	(299,401,000)	(308,608,000)
Fair Value Hedge Assets	19,691,000	9,959,000
Collateral netted against derivative liabilities	44,900,000	53,600,000	$ 65,700,000
Over collateralization net position	7,600,000	25,000,000	24,300,000
Additional collateral held in securities	52,500,000
Subordinated Debentures Maturing July 2025 [Member] | Subordinated Debt [Member]
Derivative [Line Items]
Debt Instrument, Face Amount					$ 150,000,000.0
Subordinated Debentures Maturing July 2056 [Member] | Subordinated Debt [Member]
Derivative [Line Items]
Debt Instrument, Face Amount				$ 175,000,000.0
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	965,705,000	993,432,000	993,485,000
Derivative Asset, Fair Value, Gross Asset	2,162,000	1,703,000	4,220,000
Derivative Liability, Fair Value, Gross Liability	44,892,000	53,581,000	65,749,000
Derivative Instruments Notional Amount Netting Adjustments	0	0	0
Derivative Netting Adjustments	2,162,000	896,000	1,869,000
Largest gross exposure (positive derivative NPV) to an individual counterparty	0	807,000	2,351,000
Negative NPVs	42,730,000	52,685,000	63,880,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	965,705,000	993,432,000	993,485,000
Derivative Asset, Fair Value, Gross Asset	2,162,000	1,703,000	4,220,000
Derivative Liability, Fair Value, Gross Liability	44,892,000	53,581,000	65,749,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	52,068,000	122,304,000	18,421,000
Derivative Liability, Fair Value, Gross Liability	228,000	1,759,000	191,000
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	481,000	2,008,000	251,000
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	2,378,000	36,969,000	0
Derivative Liability, Fair Value, Gross Liability	27,000	776,000	0
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	27,000	776,000	0
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivative [Line Items]
Derivative, Notional Amount	49,690,000	85,335,000	18,421,000
Derivative Liability, Fair Value, Gross Liability	201,000	983,000	191,000
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	$ 454,000	$ 1,232,000	$ 251,000

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Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share [Abstract]
Anti-dilutive stock options outstanding that were not included in computation of diluted earnings per common share									0
Basic									104,669	104,179	103,042
Dilutive Effect Of Stock Options Restricted Stock And Equity Settled Awards									701	818	801
Diluted									105,370	104,997	103,843
Net income available to common stockholders									$ 435,788	$ 325,492	$ 259,798
Earnings (loss) per share - basic	$ 1.14	$ 1.06	$ 1.00	$ 0.97	$ 0.86	$ 0.79	$ 0.77	$ 0.71	$ 4.16	$ 3.12	$ 2.52
Earnings Per Share, Diluted	$ 1.13	$ 1.05	$ 0.99	$ 0.96	$ 0.85	$ 0.79	$ 0.76	$ 0.70	$ 4.14	$ 3.10	$ 2.50

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Income Taxes Provision for Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent									14.61%	27.96%	28.07%
Current Income Tax Expense (Benefit)									$ 91,249	$ 37,854	$ 93,737
Deferred Income Tax Expense (Benefit)									(16,709)	88,471	7,644
Income tax benefit	$ 20,909	$ 7,492	$ 25,325	$ 20,814	$ 34,973	$ 34,899	$ 31,964	$ 24,489	$ 74,540	$ 126,325	$ 101,381

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Income Taxes Reconciliation between Statutory Federal Income Tax and Company's Effective Tax Rate (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 0.0				$ 0.1				$ 0.0	$ 0.1
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount									107,169,000	158,136,000	$ 126,413,000
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount									9,015,000	9,765,000	8,046,000
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount									(18,322,000)	26,403,000	(22,425,000)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount									0	(10,411,000)	0
Effective Income Tax Rate Reconciliation, NOL and Other Carryback, Amount									(15,341,000)	0	0
Effective Income Tax Reconciliation, Excise Tax									(137,000)	9,689,000	0
Income Tax Reconciliation Low Income Housing And Other Tax Credits									(6,673,000)	(7,361,000)	(6,153,000)
Income Tax Reconciliation Tax On Earnings Other Than Statutory Tax Rate									(1,171,000)	(7,090,000)	(4,500,000)
Income tax benefit	$ 20,909,000	$ 7,492,000	$ 25,325,000	$ 20,814,000	$ 34,973,000	$ 34,899,000	$ 31,964,000	$ 24,489,000	$ 74,540,000	$ 126,325,000	$ 101,381,000
Effective Income Tax Rate Reconciliation, Percent									14.61%	27.96%	28.07%

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	$ 6,255	$ 34,710
Effective Income Tax Rate Reconciliation, Percent	14.61%	27.96%	28.07%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 300	$ 700
Decreased deferred tax assets net	(26,200)
Recognized net deferred tax asset	31,990	5,780
Operating Loss Carryforwards, Valuation Allowance	2,373	$ 0
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards, State and Local	1,200
Deferred Tax Assets, Operating Loss Carryforwards	300
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	6,000
Tax Credit Carryforward, Amount	0
Operating Loss Carryforwards	48,200
ARIZONA
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Amount	$ 5,500

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Income Taxes Income Taxes - Cumulative Tax Effects of Primary Differences (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 300	$ 700
Deferred Tax Assets, Net of Valuation Allowance	92,167	124,805
Deferred Tax Liabilities, Tax Deferred Income	0	(68,799)
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	42,833	37,851
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	8,718	8,335
Deferred Tax Assets, Operating Loss Carryforwards	6,255	34,710
Deferred Tax Assets, Tax Credit Carryforwards	1,245	24,171
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross	16,047	4,117
Deferred Tax Assets, Other	19,442	15,621
Deferred Tax Assets, Gross	94,540	124,805
Deferred Tax Liabilities, Unrealized Gains on Debt Instruments Measured at Fair Value	(5,833)	(4,057)
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs	(9,528)	(6,594)
Deferred Tax Liabilities, Insurance Premiums	(38,119)	(35,789)
Deferred Tax Liabilities, Other	(6,697)	(3,786)
Deferred Tax Liabilities, Gross	(60,177)	(119,025)
Deferred tax assets, net	31,990	5,780
Deferred Tax Assets, Valuation Allowance	$ (2,373)	$ 0

XML

Income Taxes - Low Income Housing Tax Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 342,000
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	2,770,000
Amortization Method Qualified Affordable Housing Project Investments	342,381	$ 267,023
Affordable Housing Program Obligation	171,700	151,300
Amortization of tax credit investments	$ 35,898	$ 25,355	$ 17,336

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Income Taxes Gross Activity of Unrecognized Tax Benefits Related to Uncertain Tax Positions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Income Tax Penalties Expense		$ 0
Unrecognized Tax Benefits, Income Tax Penalties Accrued		0.1
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 300,000	700,000
Decrease in Unrecognized Tax Benefits is Reasonably Possible	100,000
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	0	0
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions	0	0
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	(247,000)	0
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	(307,000)	0
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	0
Unrecognized Tax Benefits	484,000	1,038,000	$ 1,038,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 0.0	$ 0.1

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Letters of credit expiration period	1 year
Percentage of first liens initial loan to value ratio	75.00%
Percent of commercial real estate loans owner occupied	36.00%	36.50%
Operating Leases, Rent Expense, Net	$ 11.0	$ 10.4	$ 11.0
Commercial Real Estate Portfolio Segment [Member] | Loans Receivable [Member] | Credit Concentration Risk [Member]
Loss Contingencies [Line Items]
Percent of commercial real estate related loans	49.00%	51.50%
Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual	$ 8.2	$ 6.2

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Commitments and Contingencies - Summary of Contractual Amounts for Unfunded Commitments and Letters of Credit (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Commitments [Line Items]
Total amount	$ 8,184,214	$ 6,166,876
Operating Leases, Rent Expense, Net	$ 11,000	$ 10,400	$ 11,000
Percent of commercial real estate loans owner occupied	36.00%	36.50%
Unfunded Loan Commitment [Member]
Other Commitments [Line Items]
Loss Contingency Accrual	$ 8,200	$ 6,200
Standby letters of credit [Member]
Other Commitments [Line Items]
Total amount	390,161	161,966
Unsecured Letters Of Credit	21,879
Credit card guarantees [Member]
Other Commitments [Line Items]
Total amount	237,312	153,752
Commitments to extend credit [Member]
Other Commitments [Line Items]
Total amount	7,556,741	$ 5,851,158
Unsecured Loan Commitments	$ 770,114
Loans Receivable [Member] | Credit Concentration Risk [Member] | Commercial Real Estate Portfolio Segment [Member]
Other Commitments [Line Items]
Concentration Risk, Percentage	49.00%	51.50%

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Commitments and Contingencies - Contractual Commitments for Lines and Letters of Credit by Maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Total Amount Committed	$ 8,184,214	$ 6,166,876
Other Commitment, Due in Next Twelve Months	3,164,944
Other Commitment, Due in Second and Third Year	3,058,369
Other Commitment, Due in Fourth and Fifth Year	866,274
Other Commitment, Due after Fifth Year	1,094,627
Commitments to extend credit [Member]
Loss Contingencies [Line Items]
Total Amount Committed	7,556,741	5,851,158
Other Commitment, Due in Next Twelve Months	2,650,999
Other Commitment, Due in Second and Third Year	2,959,595
Other Commitment, Due in Fourth and Fifth Year	851,520
Other Commitment, Due after Fifth Year	1,094,627
Credit card guarantees [Member]
Loss Contingencies [Line Items]
Total Amount Committed	237,312	153,752
Other Commitment, Due in Next Twelve Months	237,312
Other Commitment, Due in Second and Third Year	0
Other Commitment, Due in Fourth and Fifth Year	0
Other Commitment, Due after Fifth Year	0
Standby letters of credit [Member]
Loss Contingencies [Line Items]
Total Amount Committed	390,161	$ 161,966
Other Commitment, Due in Next Twelve Months	276,633
Other Commitment, Due in Second and Third Year	98,774
Other Commitment, Due in Fourth and Fifth Year	14,754
Other Commitment, Due after Fifth Year	$ 0

XML

Commitments and Contingencies Concentration of Lending Activities (Details)	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Percent of commercial real estate loans owner occupied	36.00%	36.50%

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Fair Value Accounting - Gains and Losses from Fair Value Changes Included in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized gain (loss) on junior subordinated debt, net of tax	$ 5,693	$ (3,604)	$ (2,077)
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)	7,550	(5,824)	(3,482)
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss)	$ 7,550	$ (5,824)	$ (3,482)

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Fair Value Accounting - Fair Value of Assets and Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	$ 3,276,988	$ 3,499,519
Equity Securities, FV-NI	115,061	0
Subordinated Debt Obligations, Fair Value Disclosure	48,684	56,234
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	3,276,988	3,499,519
Equity Securities, FV-NI	115,061
Derivative Liability	45,120	96,943
Derivative Asset	2,643	45,228
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	103,812
Equity Securities, FV-NI	115,061
Derivative Liability	0	0
Derivative Asset	0	0
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	3,276,988	3,395,707
Equity Securities, FV-NI	0
Derivative Liability	45,120	96,943
Derivative Asset	2,643	45,228
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Equity Securities, FV-NI	0
Derivative Liability	0	0
Derivative Asset	0	0
Subordinated Debt Obligations, Fair Value Disclosure	48,684	56,234
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities issued by GSEs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,530,124	1,689,295
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities issued by GSEs | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities issued by GSEs | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,530,124	1,689,295
Fair Value, Measurements, Recurring [Member] | Residential mortgage-backed securities issued by GSEs | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Private label residential mortgage-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	924,594	868,524
Fair Value, Measurements, Recurring [Member] | Private label residential mortgage-backed securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Private label residential mortgage-backed securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	924,594	868,524
Fair Value, Measurements, Recurring [Member] | Private label residential mortgage-backed securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	100,106	109,077
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	100,106	109,077
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	99,380	103,483
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	99,380	103,483
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Municipal obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	538,668	510,910
Fair Value, Measurements, Recurring [Member] | Municipal obligations [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Municipal obligations [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	538,668	510,910
Fair Value, Measurements, Recurring [Member] | Municipal obligations [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | CRA investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		50,616
Equity Securities, FV-NI	51,142
Fair Value, Measurements, Recurring [Member] | CRA investments [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		50,616
Equity Securities, FV-NI	51,142
Fair Value, Measurements, Recurring [Member] | CRA investments [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		0
Equity Securities, FV-NI	0
Fair Value, Measurements, Recurring [Member] | CRA investments [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		0
Equity Securities, FV-NI	0
Fair Value, Measurements, Recurring [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	15,327	21,857
Fair Value, Measurements, Recurring [Member] | Collateralized debt obligations [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Collateralized debt obligations [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	15,327	21,857
Fair Value, Measurements, Recurring [Member] | Collateralized debt obligations [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Trust preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	28,617	28,617
Fair Value, Measurements, Recurring [Member] | Trust preferred securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Trust preferred securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	28,617	28,617
Fair Value, Measurements, Recurring [Member] | Trust preferred securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	38,188	61,462
Fair Value, Measurements, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	38,188	61,462
Fair Value, Measurements, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,984	2,482
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,984	2,482
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Measurements, Recurring [Member] | Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		53,196
Equity Securities, FV-NI	63,919
Fair Value, Measurements, Recurring [Member] | Preferred Stock [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		53,196
Equity Securities, FV-NI	63,919
Fair Value, Measurements, Recurring [Member] | Preferred Stock [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		0
Equity Securities, FV-NI	0
Fair Value, Measurements, Recurring [Member] | Preferred Stock [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale		0
Equity Securities, FV-NI	0
Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Debt Obligations, Fair Value Disclosure	$ 48,684	$ 56,234
Junior subordinated debt, Significant Unobservable Inputs	Implied credit rating of the Company	Implied credit rating of the Company
Valuation Technique, Discounted Cash Flow [Member] | Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discounted cash flow	Discounted cash flow

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Fair Value Accounting - Change in Level 3 Liabilities Measured at Fair Value on Recurring Basis (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized gain (loss) on junior subordinated debt, net of tax	$ 5,693	$ (3,604)	$ (2,077)
Impaired Financing Receivable, Recorded Investment	112,252	98,554
Other assets acquired through foreclosure, net	17,924	28,540	47,815	$ 43,942
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	3,276,988	3,499,519
Junior subordinated debt	(48,684)	(56,234)
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets acquired through foreclosure, net	17,924	28,540
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	92,126	77,316
Other assets acquired through foreclosure, net	17,924	28,540
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	3,276,988	3,499,519
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	0	0
Junior subordinated debt	$ (48,684)	$ (56,234)
Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discounted cash flow method	Discounted cash flow method
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized gains (losses) for the twelve month period included in earnings (or changes in net assets) for the period ended December 31, 2012	$ 7,550	$ (5,824)	(3,482)
Other Assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Collateral method	Collateral method
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized gains (losses) for the twelve month period included in earnings (or changes in net assets) for the period ended December 31, 2012	$ 7,550	$ (5,824)	(3,482)
Debt Instrument, Measurement Input	0.07818	0.05608
Debt Instrument, Basis Spread on Variable Rate	5.01%	3.92%
Percentage Of Basis Spread On Variable Rate	2.81%	1.69%
Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Implied credit rating of the Company	Implied credit rating of the Company
Junior subordinated debt	$ (48,684)	$ (56,234)
Junior Subordinated Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	(56,234)	(50,410)	46,928
Closing balance	$ (48,684)	$ (56,234)	$ (50,410)
Collateral Method [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Collateral method	Collateral method
Third Party Appraisal [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Third party appraisal	Third party appraisal
Third Party Appraisal [Member] | Other Assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Third party appraisal	Third party appraisal
Discount Rate [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discount rate	Discount rate
Scheduled Cash Collections [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Scheduled cash collections	Scheduled cash collections
Proceeds from Non-Real Estate Collateral [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Proceeds from non-real estate collateral	Proceeds from non-real estate collateral

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Fair Value Accounting - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 112,252	$ 98,554
Impaired loans with an allowance recorded	986	19,315
Impaired loans without specific valuation allowance	111,266	79,239
Repossessed Assets	17,924	28,540	$ 47,815	$ 43,942
Impaired Financing Receivables, With No related Allowance, Balances with Charge-offs	19,400	15,600
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	305	13,709
Impaired loans without specific valuation allowance	91,821	63,607
Repossessed Assets	17,924	28,540
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans without specific valuation allowance	0	0
Repossessed Assets	0	0
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans without specific valuation allowance	0	0
Repossessed Assets	0	0
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	92,126	77,316
Impaired loans with an allowance recorded	305	13,709
Impaired loans without specific valuation allowance	91,821	63,607
Repossessed Assets	$ 17,924	$ 28,540
Loans and Finance Receivables [Member] | Third Party Appraisal [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Costs to sell	Costs to sell
Loans and Finance Receivables [Member] | Discount Rate [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Contractual loan rate	Contractual loan rate
Loans and Finance Receivables [Member] | Scheduled Cash Collections [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Probability of default	Probability of default
Loans and Finance Receivables [Member] | Proceeds from Non-Real Estate Collateral [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Loss given default	Loss given default
Other Assets [Member] | Third Party Appraisal [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Costs to sell	Costs to sell

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Fair Value Accounting - Estimated Fair Value of Financial Instruments (Detail) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Held-to-maturity	$ 302,905,000	$ 255,050,000
Impaired Financing Receivable, Recorded Investment	112,252,000	98,554,000
Financial assets
Securities available for sale	3,276,988,000	3,499,519,000
Equity Securities, FV-NI	115,061,000	0
Loans, net	17,557,912,000	14,953,885,000
Financial liabilities
Total deposits	19,177,447,000	16,972,532,000
Customer repurchases	22,411,000	26,017,000
FHLB and FRB advances	235,000,000	390,000,000
Junior subordinated debt	48,684,000	56,234,000
Repossessed Assets	17,924,000	28,540,000	$ 47,815,000	$ 43,942,000
Fair Value, Measurements, Nonrecurring [Member]
Financial liabilities
Repossessed Assets	17,924,000	28,540,000
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member]
Financial liabilities
Repossessed Assets	0	0
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member]
Financial liabilities
Repossessed Assets	0	0
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	92,126,000	77,316,000
Financial liabilities
Repossessed Assets	17,924,000	28,540,000
Fair Value, Measurements, Nonrecurring [Member] | Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Held-to-maturity	302,905,000	255,050,000
Financial assets
Loans, net	17,557,912,000	14,953,885,000
Financial liabilities
Total deposits	19,177,447,000	16,972,532,000
Junior subordinated debt	360,458,000	376,905,000
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Held-to-maturity	298,648,000	256,314,000
Financial assets
Loans, net	16,949,978,000	14,654,326,000
Financial liabilities
Total deposits	19,188,216,000	16,980,066,000
Junior subordinated debt	381,496,000	404,013,000
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Held-to-maturity	0	0
Financial assets
Loans, net	0	0
Financial liabilities
Total deposits	0	0
Junior subordinated debt	0	0
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Held-to-maturity	298,648,000	256,314,000
Financial assets
Loans, net	16,857,852,000	14,577,010,000
Financial liabilities
Total deposits	19,188,216,000	16,980,066,000
Junior subordinated debt	323,572,000	336,803,000
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Held-to-maturity	0	0
Financial assets
Loans, net	92,126,000	77,316,000
Financial liabilities
Total deposits	0	0
Junior subordinated debt	57,924,000	67,210,000
Fair Value, Measurements, Recurring [Member]
Financial assets
Securities available for sale	3,276,988,000	3,499,519,000
Equity Securities, FV-NI	115,061,000
Derivative Asset	2,643,000	45,228,000
Financial liabilities
Derivative Liability	45,120,000	96,943,000
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Financial assets
Securities available for sale	0	103,812,000
Equity Securities, FV-NI	115,061,000
Derivative Asset	0	0
Financial liabilities
Junior subordinated debt	0	0
Derivative Liability	0	0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Financial assets
Securities available for sale	3,276,988,000	3,395,707,000
Equity Securities, FV-NI	0
Derivative Asset	2,643,000	45,228,000
Financial liabilities
Junior subordinated debt	0	0
Derivative Liability	45,120,000	96,943,000
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Financial assets
Securities available for sale	0	0
Equity Securities, FV-NI	0
Derivative Asset	0	0
Financial liabilities
Junior subordinated debt	48,684,000	56,234,000
Derivative Liability	0	0
Fair Value, Measurements, Recurring [Member] | Carrying Amount [Member]
Financial assets
Securities available for sale	3,276,988,000	3,499,519,000
Equity Securities, FV-NI	115,061,000
Derivative Asset	2,643,000	3,711,000
Accrued Investment Income Receivable	101,275,000	85,517,000
Financial liabilities
Customer repurchases	22,411,000	26,017,000
Federal Home Loan Bank Borrowings, Fair Value Disclosure	491,000,000	390,000,000
Derivative Liability	45,120,000	55,340,000
Interest Payable, Current	20,463,000	16,366,000
Fair Value, Measurements, Recurring [Member] | Fair Value [Member]
Financial assets
Securities available for sale	3,276,988,000	3,499,519,000
Equity Securities, FV-NI	115,061,000
Derivative Asset	2,643,000	3,711,000
Accrued Investment Income Receivable	101,275,000	85,517,000
Financial liabilities
Customer repurchases	22,411,000	26,017,000
Federal Home Loan Bank Borrowings, Fair Value Disclosure	491,000,000	390,000,000
Derivative Liability	45,120,000	55,340,000
Interest Payable, Current	20,463,000	16,366,000
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Level 1 [Member]
Financial assets
Securities available for sale	0	103,812,000
Equity Securities, FV-NI	115,061,000
Derivative Asset	0	0
Accrued Investment Income Receivable	0	0
Financial liabilities
Customer repurchases	0	0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	0	0
Derivative Liability	0	0
Interest Payable, Current	0	0
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Level 2 [Member]
Financial assets
Securities available for sale	3,276,988,000	3,395,707,000
Equity Securities, FV-NI	0
Derivative Asset	2,643,000	3,711,000
Accrued Investment Income Receivable	101,275,000	85,517,000
Financial liabilities
Customer repurchases	22,411,000	26,017,000
Federal Home Loan Bank Borrowings, Fair Value Disclosure	491,000,000	390,000,000
Derivative Liability	45,120,000	55,340,000
Interest Payable, Current	20,463,000	16,366,000
Fair Value, Measurements, Recurring [Member] | Fair Value [Member] | Level 3 [Member]
Financial assets
Securities available for sale	0	0
Equity Securities, FV-NI	0
Derivative Asset	0	0
Accrued Investment Income Receivable	0	0
Financial liabilities
Customer repurchases	0	0
Federal Home Loan Bank Borrowings, Fair Value Disclosure	0	0
Derivative Liability	0	0
Interest Payable, Current	0	0
CRA investments [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets
Securities available for sale		50,616,000
Equity Securities, FV-NI	51,142,000
CRA investments [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Financial assets
Securities available for sale		50,616,000
Equity Securities, FV-NI	51,142,000
CRA investments [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Financial assets
Securities available for sale		0
Equity Securities, FV-NI	0
CRA investments [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Financial assets
Securities available for sale		0
Equity Securities, FV-NI	0
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets
Securities available for sale		53,196,000
Equity Securities, FV-NI	63,919,000
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Financial assets
Securities available for sale		53,196,000
Equity Securities, FV-NI	63,919,000
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Financial assets
Securities available for sale		0
Equity Securities, FV-NI	0
Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Financial assets
Securities available for sale		$ 0
Equity Securities, FV-NI	$ 0

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Fair Value Accounting - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized gain (loss) on junior subordinated debt, net of tax	$ 5,693	$ (3,604)	$ (2,077)
Subordinated Debt Obligations, Fair Value Disclosure	48,684	56,234
Impaired Financing Receivables, With No related Allowance, Balances with Charge-offs	19,400	15,600
Aggregate carrying amount of impaired loans	986	19,315
Impaired loans with an allowance recorded	(681)	(5,606)
Repossessed Assets	17,924	28,540	$ 47,815	$ 43,942
Other assets acquired through foreclosure	$ 17,900	28,500
Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities contained credit losses	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	$ (700)	$ (5,600)
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Basis Spread on Variable Rate	5.01%	3.92%
Percentage Of Basis Spread On Variable Rate	2.81%	1.69%
Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Debt Obligations, Fair Value Disclosure	$ 48,684	$ 56,234
Junior subordinated debt, Significant Unobservable Inputs	Implied credit rating of the Company	Implied credit rating of the Company
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate carrying amount of impaired loans	$ 305	$ 13,709
Repossessed Assets	17,924	28,540
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate carrying amount of impaired loans	305	13,709
Repossessed Assets	$ 17,924	$ 28,540
Valuation Technique, Discounted Cash Flow [Member] | Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discounted cash flow	Discounted cash flow

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Fair Value Accounting Additional Details (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Hedge Assets, Loans	$ 23,039	$ 41,919
Other Repossessed Assets	17,900	28,500
Fair Value Hedge Assets	$ 19,691	$ 9,959

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Regulatory Capital Requirements - Summary of Actual Capital Amount and Ratio (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier 1 Capital Ratio	6.00%	6.00%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Common Equity Tier One Required To Be Well Capitalized	6.50%	6.50%
Tier 1 Leverage Ratio	4.00%	4.00%
Common Equity Tier One Required For Capital Adequacy	4.50%	4.50%
Consolidated Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital	$ 2,897,356	$ 2,460,988
Tier 1 Capital	2,431,320	2,013,744
Risk-Weighted Assets	21,983,976	18,569,608
Tangible Average Assets	$ 22,204,799	$ 19,624,517
Capital to Risk Weighted Assets	13.20%	13.30%
Tier One Risk Based Capital to Risk Weighted Assets	11.10%	10.80%
Tier One Leverage Capital to Average Assets	10.90%	10.30%
Common Equity Tier One Risk-Based Capital Ratio	10.70%	10.40%
Western Alliance Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital	$ 2,628,650	$ 2,299,919
Tier 1 Capital	2,317,745	2,003,745
Risk-Weighted Assets	22,040,765	18,664,200
Tangible Average Assets	$ 22,209,700	$ 19,541,990
Capital to Risk Weighted Assets	11.90%	12.30%
Tier One Risk Based Capital to Risk Weighted Assets	10.50%	10.70%
Tier One Leverage Capital to Average Assets	10.40%	10.30%
Common Equity Tier One Risk-Based Capital Ratio	10.50%	10.70%

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Employee Benefit Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan Initial Percentage Of Discretionary Deferred Compensation	6.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 5,600,000	$ 3,100,000	$ 2,700,000
Defined Contribution Plan Percentage Of Discretionary Deferred Compensation	75.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount	$ 18,500
Defined Contribution Plan Age Of Participants	50 years
Minimum [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan Initial Percentage Of Discretionary Deferred Compensation	1.00%
Maximum [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	75.00%
Restoration Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 144,000	$ 131,000	$ 117,000

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Employee Benefit Plan Accumulated Benefit Obligation and Funded Status of SERP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Defined Benefit Plan, Benefit Obligation	$ 9,991	$ 8,891	$ 8,394
Defined Benefit Plan, Service Cost Current and Prior	614	580
Defined Benefit Plan, Interest Cost	512	454
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	41	(470)
Defined Benefit Plan, Benefit Obligation, Benefits Paid	67	67
Defined Benefit Plan, Accumulated Benefit Obligation	$ (9,991)	$ (8,891)
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	5.75%	5.75%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	3.00%	3.00%

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Employee Benefit Plan Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost		$ 614	$ 580
Defined Benefit Plan, Interest Cost		512	454
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)		103	103
Defined Benefit Plan, Amortization of Gain (Loss)		(164)	(114)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		1,065	1,023
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent		$ (61)	$ (11)
Scenario, Forecast [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	$ 607
Defined Benefit Plan, Interest Cost	571
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	64
Defined Benefit Plan, Amortization of Gain (Loss)	(159)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	1,083
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent	$ (95)

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Related Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	$ 4,580	$ 5,918	$ 16,874
Origination of Notes Receivable from Related Parties	0	0
Loans and Leases Receivable Advances, Related Parties	0	1,532
Loans and Leases Receivable Repayments, Related Parties	(1,338)	(12,488)
Related Party Deposit Liabilities	87,900	100,500
Interest Expense, Related Party	200	200	200
Related Party Transaction, Expenses from Transactions with Related Party	8,100	1,000
Interest Income, Related Party	300	500	$ 600
Loan and Leases Receivable, Commitment Outstanding, Related Parties	30,700	$ 31,200
Related Party, OREO Sale	900
Related Party, Loss on OREO Sale	$ 200

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Mergers, Acquisitions and Dispositions - Summary of Operating Results of Discontinued Operations (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Acquisition / restructure expense	$ 0	$ 0	$ 12,412,000
Total assets	23,109,486,000	20,329,085,000
Total deposits	19,177,447,000	16,972,532,000
Cash and cash equivalents (used) acquired in acquisitions, net	0	0	$ (1,272,187,000)
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	61,057,000	68,296,000
Bridge Capital Holdings [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	17,527,000	17,527,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Junior Subordinated Debt	$ 12,372,000	$ 12,062,000

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Mergers, Acquisitions and Dispositions Assets Acquired and Liabilities Assumed in Acquisition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Acquisition / restructure expense	$ 0	$ 0	$ 12,412
Goodwill	$ 289,895	$ 289,895

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Mergers, Acquisitions and Dispositions Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Business Combination, Fair Market Value Adjustment on Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	$ (5,155)	$ (5,465)
Interest Rate Marks on Acquired Loans	7,100	14,100
Acquisition / restructure expense	0	0	$ 12,412
Cash and cash equivalents (used) acquired in acquisitions, net	0	0	$ (1,272,187)
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	61,057	68,296
Goodwill	289,895	289,895
Bridge Capital Holdings [Member]
Business Acquisition [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	17,527	17,527
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Junior Subordinated Debt	$ 12,372	$ 12,062

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Parent Company Parent Company Balance Sheet (Details) - USD ($)	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Jan. 01, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	$ 498,572,000		$ 416,768,000		$ 284,491,000	$ 224,640,000
Money Market Funds, at Carrying Value	7,000		0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	3,276,988,000		3,499,519,000
Other assets	310,840,000		249,504,000
Total assets	23,109,486,000		20,329,085,000
Qualifying debt	360,458,000		376,905,000
Total liabilities	20,495,752,000		18,099,387,000
Total stockholders’ equity	2,613,734,000	$ 2,229,698,000	2,229,698,000	$ 1,892,067,000	1,891,529,000	1,591,502,000
Total liabilities and stockholders’ equity	23,109,486,000		20,329,085,000
Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	115,721,000		56,554,000		$ 11,409,000	$ 7,627,000
Money Market Funds, at Carrying Value	7,000		0
Investment securities - AFS, at fair value; amortized cost of $3,339,888 at December 31, 2018 and $3,515,401 at December 31, 2017	66,278,000		34,698,000
Investment in bank subsidiaries	2,568,027,000		2,291,166,000
Investment in non-bank subsidiaries	80,019,000		77,457,000
Other assets	27,200,000		24,378,000
Total assets	2,857,252,000		2,484,253,000
Qualifying debt	211,376,000		226,993,000
Accrued interest and other liabilities	32,142,000		27,562,000
Total liabilities	243,518,000		254,555,000
Total stockholders’ equity	2,613,734,000		2,229,698,000
Total liabilities and stockholders’ equity	$ 2,857,252,000		$ 2,484,253,000

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Parent Company Parent Company Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Non-interest income	$ 13,611	$ 4,418	$ 13,444	$ 11,643	$ 13,688	$ 10,456	$ 10,601	$ 10,599	$ 43,116	$ 45,344	$ 42,915
Interest expense	38,455	31,178	27,494	20,477	17,430	16,253	14,210	12,956	117,604	60,849	43,293
Non-interest expense	111,129	113,841	102,548	98,149	95,398	89,296	88,420	87,827	425,667	360,941	330,949
Income before income taxes and equity in undistributed earnings of subsidiaries	139,995	118,615	130,004	121,714	124,319	117,743	111,924	97,831	510,328	451,817	361,179
Income tax benefit	(20,909)	(7,492)	(25,325)	(20,814)	(34,973)	(34,899)	(31,964)	(24,489)	(74,540)	(126,325)	(101,381)
Net income	$ 119,086	$ 111,123	$ 104,679	$ 100,900	$ 89,346	$ 82,844	$ 79,960	$ 73,342	435,788	325,492	259,798
Net income available to common stockholders									435,788	325,492	259,798
Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends from subsidiaries									152,116	97,264	12,795
Interest income									2,905	2,547	3,327
Non-interest income									761	2,470	2,445
Total income									155,782	102,281	18,567
Interest expense									13,949	11,459	6,975
Non-interest expense									19,025	16,293	9,221
Total expense									32,974	27,752	16,196
Income before income taxes and equity in undistributed earnings of subsidiaries									122,808	74,529	2,371
Income tax benefit									10,436	5,229	4,399
Income before equity in undistributed earnings of subsidiaries									133,244	79,758	6,770
Equity in undistributed earnings of subsidiaries									302,544	245,734	253,028
Net income									$ 435,788	$ 325,492	$ 259,798

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Parent Company Parent Company Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Financial Statements, Captions [Line Items]
Net income	$ 119,086	$ 111,123	$ 104,679	$ 100,900	$ 89,346	$ 82,844	$ 79,960	$ 73,342	$ 435,788	$ 325,492	$ 259,798
Net cash provided by (used in) operating activities									540,972	383,811	280,645
Principal pay downs and maturities									0	0	395
Sale (purchase) of money market investments, net									(7)	0	121
Net cash (used in) investing activities									(2,713,433)	(2,955,527)	(2,890,233)
Share repurchases									(35,688)
Proceeds from issuance of common stock									0	0	55,785
Net cash (used in) provided by financing activities									2,254,265	2,703,993	2,669,439
Net increase in cash and cash equivalents									81,804	132,277	59,851
Cash and cash equivalents	498,572				416,768				498,572	416,768	284,491	$ 224,640
Interest									113,507	59,838	41,565
Income taxes									18,760	99,430	61,281
Change in unrealized (loss) gain on AFS securities, net of tax									(40,808)	6,334	(24,254)
Change in unrealized gain (loss) on junior subordinated debt, net of tax									5,693	(3,604)	(2,077)
Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net income									435,788	325,492	259,798
Equity in net undistributed earnings of subsidiaries									(302,544)	(245,734)	(253,028)
Other operating activities, net									(5,889)	16,921	(9,880)
Net cash provided by (used in) operating activities									127,355	96,679	(3,110)
Purchases of securities									(44,409)	(11,765)	(20,148)
Principal pay downs and maturities									11,362	23,196	34,390
Capital contributions to subsidiaries									0	(50,000)	(226,869)
Other investing activities, net									(7)	0	2,891
Net cash (used in) investing activities									(33,054)	(38,569)	(209,736)
Share repurchases									(35,688)	0	0
Proceeds from issuance of common stock									0	0	55,785
Proceeds from exercise of common stock options									554	(12,965)	(8,413)
Net cash (used in) provided by financing activities									(35,134)	(12,965)	216,628
Net increase in cash and cash equivalents									59,167	45,145	3,782
Cash and cash equivalents	$ 115,721				$ 56,554				115,721	56,554	11,409	$ 7,627
Interest									13,950	11,182	5,165
Income taxes									7,704	97,781	70,131
Change in unrealized (loss) gain on AFS securities, net of tax									127	759	(1,984)
Change in unrealized gain (loss) on junior subordinated debt, net of tax									5,693	(3,604)	(2,077)
Loan and OREO contributions to subsidiaries									1,116	11,264	50,773
Subordinated Debt [Member] | Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Proceeds from issuance of subordinated debt									$ 0	$ 0	$ 169,256

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Segments - Operating Segment Information (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018	Jan. 01, 2017	Dec. 31, 2015
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									$ 22,295,000	$ 20,346,000	$ 18,824,000
Debit and credit card interchange fees									6,801,000	5,271,000
Success Fees									3,335,000	1,403,000
Other non-interest income									626,000	382,000
Contract with Customer, Liability, Revenue Recognized									33,057,000	27,402,000
Other revenue									10,059,000	17,942,000
Total assets	$ 23,109,486,000				$ 20,329,085,000				23,109,486,000	20,329,085,000
Cash, Cash Equivalents and Investment Securities	4,259,700,000				4,237,100,000				4,259,700,000	4,237,100,000
Loans, net of deferred loan fees and costs	17,710,629,000				15,093,935,000				17,710,629,000	15,093,935,000
Less: Allowance for credit losses	(152,717,000)				(140,050,000)				(152,717,000)	(140,050,000)
Loans, net	17,557,912,000				14,953,885,000				17,557,912,000	14,953,885,000
Intangible Assets, Net (Including Goodwill)	299,200,000				300,700,000				299,200,000	300,700,000
Other Assets Segment	974,800,000				808,900,000				974,800,000	808,900,000
Total deposits	19,177,447,000				16,972,532,000				19,177,447,000	16,972,532,000
Total stockholders’ equity	2,613,734,000				2,229,698,000				2,613,734,000	2,229,698,000	1,891,529,000	$ 2,229,698,000	$ 1,892,067,000	$ 1,591,502,000
Net interest income	243,513,000	$ 234,038,000	$ 224,108,000	$ 214,220,000	211,029,000	$ 201,583,000	$ 192,743,000	$ 179,309,000	915,879,000	784,664,000	657,213,000
Provision for Loan, Lease, and Other Losses	6,000,000	6,000,000	5,000,000	6,000,000	5,000,000	5,000,000	3,000,000	4,250,000	23,000,000	17,250,000	8,000,000
Net interest income (loss) after provision for credit losses	237,513,000	228,038,000	219,108,000	208,220,000	206,029,000	196,583,000	189,743,000	175,059,000	892,879,000	767,414,000	649,213,000
Non-interest income	13,611,000	4,418,000	13,444,000	11,643,000	13,688,000	10,456,000	10,601,000	10,599,000	43,116,000	45,344,000	42,915,000
Non-interest expense	(111,129,000)	(113,841,000)	(102,548,000)	(98,149,000)	(95,398,000)	(89,296,000)	(88,420,000)	(87,827,000)	(425,667,000)	(360,941,000)	(330,949,000)
Income from continuing operations before income taxes	139,995,000	118,615,000	130,004,000	121,714,000	124,319,000	117,743,000	111,924,000	97,831,000	510,328,000	451,817,000	361,179,000
Income Tax Expense (Benefit)	20,909,000	7,492,000	25,325,000	20,814,000	34,973,000	34,899,000	31,964,000	24,489,000	74,540,000	126,325,000	101,381,000
Other Repossessed Assets	17,900,000				28,500,000				17,900,000	28,500,000
Other liabilities	466,900,000				360,000,000				466,900,000	360,000,000
Total liabilities	20,495,752,000				18,099,387,000				20,495,752,000	18,099,387,000
Liabilities and Equity	23,109,486,000				20,329,085,000				23,109,486,000	20,329,085,000
Excess Funds Provided by (Used in) Segment Basis	0				0				0	0
Other borrowings	851,500,000				766,900,000				851,500,000	766,900,000
Net income	119,086,000	$ 111,123,000	$ 104,679,000	$ 100,900,000	89,346,000	$ 82,844,000	$ 79,960,000	$ 73,342,000	435,788,000	325,492,000	259,798,000
Operating Segments [Member] | HOA Services [Member]
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									585,000	554,000
Debit and credit card interchange fees									24,000	2,000
Success Fees									0	0
Other non-interest income									4,000	1,000
Contract with Customer, Liability, Revenue Recognized									613,000	557,000
Other revenue									1,000	1,000
Total assets	209,000,000				161,400,000				209,000,000	161,400,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	210,000,000				162,100,000				210,000,000	162,100,000
Less: Allowance for credit losses	(1,900,000)				(1,600,000)				(1,900,000)	(1,600,000)
Loans, net	208,100,000				160,500,000				208,100,000	160,500,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	900,000				900,000				900,000	900,000
Total deposits	2,607,200,000				2,230,400,000				2,607,200,000	2,230,400,000
Total stockholders’ equity	70,700,000				59,400,000				70,700,000	59,400,000
Net interest income									67,154,000	54,102,000	41,539,000
Provision for Loan, Lease, and Other Losses									281,000	341,000	256,000
Net interest income (loss) after provision for credit losses									66,873,000	53,761,000	41,283,000
Non-interest income									614,000	558,000	460,000
Non-interest expense									(32,390,000)	(28,289,000)	(24,019,000)
Income from continuing operations before income taxes									35,097,000	26,030,000	17,724,000
Income Tax Expense (Benefit)									8,072,000	9,676,000	6,647,000
Other Repossessed Assets	0				0				0	0
Other liabilities	2,100,000				1,200,000				2,100,000	1,200,000
Total liabilities	2,609,300,000				2,231,600,000				2,609,300,000	2,231,600,000
Liabilities and Equity	2,680,000,000				2,291,000,000				2,680,000,000	2,291,000,000
Excess Funds Provided by (Used in) Segment Basis	2,471,000,000				2,129,600,000				2,471,000,000	2,129,600,000
Other borrowings	0				0				0	0
Net income									27,025,000	16,354,000	11,077,000
Operating Segments [Member] | HFF Loan Portfolio [Member]
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									0	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									0	0
Contract with Customer, Liability, Revenue Recognized									0	0
Other revenue									13,000	52,000
Total assets	1,478,700,000				1,329,700,000				1,478,700,000	1,329,700,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	1,479,900,000				1,327,700,000				1,479,900,000	1,327,700,000
Less: Allowance for credit losses	(8,500,000)				(4,000,000)				(8,500,000)	(4,000,000)
Loans, net	1,471,400,000				1,323,700,000				1,471,400,000	1,323,700,000
Intangible Assets, Net (Including Goodwill)	100,000				100,000				100,000	100,000
Other Assets Segment	7,200,000				5,900,000				7,200,000	5,900,000
Total deposits	0				0				0	0
Total stockholders’ equity	122,300,000				108,300,000				122,300,000	108,300,000
Net interest income									55,332,000	56,961,000	38,583,000
Provision for Loan, Lease, and Other Losses									3,275,000	4,493,000	0
Net interest income (loss) after provision for credit losses									52,057,000	52,468,000	38,583,000
Non-interest income									13,000	52,000	0
Non-interest expense									(9,603,000)	(10,166,000)	(8,544,000)
Income from continuing operations before income taxes									42,467,000	42,354,000	30,039,000
Income Tax Expense (Benefit)									9,768,000	15,883,000	11,265,000
Other Repossessed Assets	0				0				0	0
Other liabilities	400,000				400,000				400,000	400,000
Total liabilities	400,000				400,000				400,000	400,000
Liabilities and Equity	122,700,000				108,700,000				122,700,000	108,700,000
Excess Funds Provided by (Used in) Segment Basis	(1,356,000,000)				(1,221,000,000)				(1,356,000,000)	(1,221,000,000)
Other borrowings	0				0				0	0
Net income									32,699,000	26,471,000	18,774,000
Operating Segments [Member] | Other National Business Lines [Member]
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									0	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									1,000	114,000
Contract with Customer, Liability, Revenue Recognized									1,000	114,000
Other revenue									2,075,000	1,658,000
Total assets	4,153,800,000				2,533,500,000				4,153,800,000	2,533,500,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	4,154,900,000				2,543,000,000				4,154,900,000	2,543,000,000
Less: Allowance for credit losses	(38,200,000)				(25,000,000)				(38,200,000)	(25,000,000)
Loans, net	4,116,700,000				2,518,000,000				4,116,700,000	2,518,000,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	37,100,000				15,500,000				37,100,000	15,500,000
Total deposits	0				0				0	0
Total stockholders’ equity	340,000,000				206,000,000				340,000,000	206,000,000
Net interest income									80,073,000	65,908,000	49,893,000
Provision for Loan, Lease, and Other Losses									11,046,000	9,729,000	4,200,000
Net interest income (loss) after provision for credit losses									69,027,000	56,179,000	45,693,000
Non-interest income									2,076,000	1,772,000	2,315,000
Non-interest expense									(26,822,000)	(20,550,000)	(15,204,000)
Income from continuing operations before income taxes									44,281,000	37,401,000	32,804,000
Income Tax Expense (Benefit)									10,184,000	14,000,000	12,302,000
Other Repossessed Assets	0				0				0	0
Other liabilities	49,600,000				5,500,000				49,600,000	5,500,000
Total liabilities	49,600,000				5,500,000				49,600,000	5,500,000
Liabilities and Equity	389,600,000				211,500,000				389,600,000	211,500,000
Excess Funds Provided by (Used in) Segment Basis	(3,764,200,000)				(2,322,000,000)				(3,764,200,000)	(2,322,000,000)
Other borrowings	0				0				0	0
Net income									34,097,000	23,401,000	20,502,000
Operating Segments [Member] | Public and Non-Profit Finance [Member]
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									0	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									0	0
Contract with Customer, Liability, Revenue Recognized									0	0
Other revenue									158,000	0
Total assets	1,553,400,000				1,582,700,000				1,553,400,000	1,582,700,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	1,547,500,000				1,580,400,000				1,547,500,000	1,580,400,000
Less: Allowance for credit losses	(14,200,000)				(15,600,000)				(14,200,000)	(15,600,000)
Loans, net	1,533,300,000				1,564,800,000				1,533,300,000	1,564,800,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	20,100,000				17,900,000				20,100,000	17,900,000
Total deposits	0				0				0	0
Total stockholders’ equity	123,900,000				126,500,000				123,900,000	126,500,000
Net interest income									15,149,000	28,485,000	20,900,000
Provision for Loan, Lease, and Other Losses									(1,101,000)	593,000	(183,000)
Net interest income (loss) after provision for credit losses									16,250,000	27,892,000	21,083,000
Non-interest income									158,000	0	59,000
Non-interest expense									(8,120,000)	(8,522,000)	(7,936,000)
Income from continuing operations before income taxes									8,288,000	19,370,000	13,206,000
Income Tax Expense (Benefit)									1,905,000	6,317,000	4,952,000
Other Repossessed Assets	0				0				0	0
Other liabilities	25,200,000				42,400,000				25,200,000	42,400,000
Total liabilities	25,200,000				42,400,000				25,200,000	42,400,000
Liabilities and Equity	149,100,000				168,900,000				149,100,000	168,900,000
Excess Funds Provided by (Used in) Segment Basis	(1,404,300,000)				(1,413,800,000)				(1,404,300,000)	(1,413,800,000)
Other borrowings	0				0				0	0
Net income									6,383,000	13,053,000	8,254,000
Operating Segments [Member] | Technology and Innovation [Member]
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									3,201,000	3,071,000
Debit and credit card interchange fees									0	0
Success Fees									3,239,000	1,156,000
Other non-interest income									0	3,000
Contract with Customer, Liability, Revenue Recognized									6,440,000	4,230,000
Other revenue									7,681,000	4,192,000
Total assets	1,317,600,000				1,213,400,000				1,317,600,000	1,213,400,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	1,200,900,000				1,097,900,000				1,200,900,000	1,097,900,000
Less: Allowance for credit losses	(10,000,000)				(11,400,000)				(10,000,000)	(11,400,000)
Loans, net	1,190,900,000				1,086,500,000				1,190,900,000	1,086,500,000
Intangible Assets, Net (Including Goodwill)	120,400,000				120,900,000				120,400,000	120,900,000
Other Assets Segment	6,300,000				6,000,000				6,300,000	6,000,000
Total deposits	2,559,000,000				1,737,600,000				2,559,000,000	1,737,600,000
Total stockholders’ equity	268,700,000				244,100,000				268,700,000	244,100,000
Net interest income									105,029,000	82,473,000	69,143,000
Provision for Loan, Lease, and Other Losses									5,657,000	2,821,000	(1,626,000)
Net interest income (loss) after provision for credit losses									99,372,000	79,652,000	70,769,000
Non-interest income									14,121,000	8,422,000	6,728,000
Non-interest expense									(41,159,000)	(36,726,000)	(31,271,000)
Income from continuing operations before income taxes									72,334,000	51,348,000	46,226,000
Income Tax Expense (Benefit)									16,637,000	19,255,000	17,335,000
Other Repossessed Assets	0				0				0	0
Other liabilities	100,000				800,000				100,000	800,000
Total liabilities	2,559,100,000				1,738,400,000				2,559,100,000	1,738,400,000
Liabilities and Equity	2,827,800,000				1,982,500,000				2,827,800,000	1,982,500,000
Excess Funds Provided by (Used in) Segment Basis	1,510,200,000				769,100,000				1,510,200,000	769,100,000
Other borrowings	0				0				0	0
Net income									55,697,000	32,093,000	28,891,000
Reportable Geographical Components [Member] | ARIZONA
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									3,902,000	2,877,000
Debit and credit card interchange fees									1,132,000	886,000
Success Fees									0	0
Other non-interest income									181,000	51,000
Contract with Customer, Liability, Revenue Recognized									5,215,000	3,814,000
Other revenue									2,474,000	943,000
Total assets	3,667,400,000				3,342,900,000				3,667,400,000	3,342,900,000
Cash, Cash Equivalents and Investment Securities	2,500,000				2,100,000				2,500,000	2,100,000
Loans, net of deferred loan fees and costs	3,647,900,000				3,323,700,000				3,647,900,000	3,323,700,000
Less: Allowance for credit losses	(30,700,000)				(31,500,000)				(30,700,000)	(31,500,000)
Loans, net	3,617,200,000				3,292,200,000				3,617,200,000	3,292,200,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	46,900,000				46,300,000				46,900,000	46,300,000
Total deposits	5,090,200,000				4,841,300,000				5,090,200,000	4,841,300,000
Total stockholders’ equity	441,000,000				396,500,000				441,000,000	396,500,000
Net interest income									224,754,000	198,622,000	170,513,000
Provision for Loan, Lease, and Other Losses									2,235,000	1,153,000	9,912,000
Net interest income (loss) after provision for credit losses									222,519,000	197,469,000	160,601,000
Non-interest income									7,689,000	4,757,000	6,887,000
Non-interest expense									(91,161,000)	(76,118,000)	(63,406,000)
Income from continuing operations before income taxes									139,047,000	126,108,000	104,082,000
Income Tax Expense (Benefit)									34,824,000	49,317,000	40,832,000
Other Repossessed Assets	800,000				2,300,000				800,000	2,300,000
Other liabilities	10,400,000				11,600,000				10,400,000	11,600,000
Total liabilities	5,100,600,000				4,852,900,000				5,100,600,000	4,852,900,000
Liabilities and Equity	5,541,600,000				5,249,400,000				5,541,600,000	5,249,400,000
Excess Funds Provided by (Used in) Segment Basis	1,874,200,000				1,906,500,000				1,874,200,000	1,906,500,000
Other borrowings	0				0				0	0
Net income									104,223,000	76,791,000	63,250,000
Reportable Geographical Components [Member] | NEVADA
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									8,151,000	7,470,000
Debit and credit card interchange fees									1,379,000	996,000
Success Fees									0	0
Other non-interest income									194,000	(5,000)
Contract with Customer, Liability, Revenue Recognized									9,724,000	8,461,000
Other revenue									1,602,000	674,000
Total assets	2,090,600,000				1,930,200,000				2,090,600,000	1,930,200,000
Cash, Cash Equivalents and Investment Securities	10,900,000				8,200,000				10,900,000	8,200,000
Loans, net of deferred loan fees and costs	2,003,500,000				1,844,800,000				2,003,500,000	1,844,800,000
Less: Allowance for credit losses	(18,700,000)				(18,100,000)				(18,700,000)	(18,100,000)
Loans, net	1,984,800,000				1,826,700,000				1,984,800,000	1,826,700,000
Intangible Assets, Net (Including Goodwill)	23,200,000				23,200,000				23,200,000	23,200,000
Other Assets Segment	57,800,000				58,800,000				57,800,000	58,800,000
Total deposits	3,996,400,000				3,951,400,000				3,996,400,000	3,951,400,000
Total stockholders’ equity	277,400,000				263,700,000				277,400,000	263,700,000
Net interest income									148,085,000	145,001,000	137,507,000
Provision for Loan, Lease, and Other Losses									(2,447,000)	(4,724,000)	(3,337,000)
Net interest income (loss) after provision for credit losses									150,532,000	149,725,000	140,844,000
Non-interest income									11,326,000	9,135,000	8,622,000
Non-interest expense									(62,536,000)	(61,066,000)	(60,570,000)
Income from continuing operations before income taxes									99,322,000	97,794,000	88,896,000
Income Tax Expense (Benefit)									20,951,000	34,133,000	31,113,000
Other Repossessed Assets	13,900,000				13,300,000				13,900,000	13,300,000
Other liabilities	14,500,000				20,900,000				14,500,000	20,900,000
Total liabilities	4,010,900,000				3,972,300,000				4,010,900,000	3,972,300,000
Liabilities and Equity	4,288,300,000				4,236,000,000				4,288,300,000	4,236,000,000
Excess Funds Provided by (Used in) Segment Basis	2,197,700,000				2,305,800,000				2,197,700,000	2,305,800,000
Other borrowings	0				0				0	0
Net income									78,371,000	63,661,000	57,783,000
Reportable Geographical Components [Member] | CALIFORNIA
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									2,666,000	2,340,000
Debit and credit card interchange fees									650,000	539,000
Success Fees									0	0
Other non-interest income									59,000	68,000
Contract with Customer, Liability, Revenue Recognized									3,375,000	2,947,000
Other revenue									425,000	449,000
Total assets	2,158,000,000				1,931,700,000				2,158,000,000	1,931,700,000
Cash, Cash Equivalents and Investment Securities	2,500,000				2,100,000				2,500,000	2,100,000
Loans, net of deferred loan fees and costs	2,161,100,000				1,934,700,000				2,161,100,000	1,934,700,000
Less: Allowance for credit losses	(19,800,000)				(19,500,000)				(19,800,000)	(19,500,000)
Loans, net	2,141,300,000				1,915,200,000				2,141,300,000	1,915,200,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	14,200,000				14,400,000				14,200,000	14,400,000
Total deposits	2,347,500,000				2,461,100,000				2,347,500,000	2,461,100,000
Total stockholders’ equity	242,900,000				221,800,000				242,900,000	221,800,000
Net interest income									115,561,000	109,177,000	103,542,000
Provision for Loan, Lease, and Other Losses									2,292,000	100,000	(580,000)
Net interest income (loss) after provision for credit losses									113,269,000	109,077,000	104,122,000
Non-interest income									3,800,000	3,396,000	2,550,000
Non-interest expense									(57,735,000)	(51,808,000)	(45,643,000)
Income from continuing operations before income taxes									59,334,000	60,665,000	61,029,000
Income Tax Expense (Benefit)									16,709,000	25,529,000	25,663,000
Other Repossessed Assets	0				0				0	0
Other liabilities	4,500,000				3,200,000				4,500,000	3,200,000
Total liabilities	2,352,000,000				2,464,300,000				2,352,000,000	2,464,300,000
Liabilities and Equity	2,594,900,000				2,686,100,000				2,594,900,000	2,686,100,000
Excess Funds Provided by (Used in) Segment Basis	436,900,000				754,400,000				436,900,000	754,400,000
Other borrowings	0				0				0	0
Net income									42,625,000	35,136,000	35,366,000
Reportable Geographical Components [Member] | Northern California [Member]
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									3,795,000	4,034,000
Debit and credit card interchange fees									3,616,000	2,848,000
Success Fees									96,000	247,000
Other non-interest income									161,000	138,000
Contract with Customer, Liability, Revenue Recognized									7,668,000	7,267,000
Other revenue									2,264,000	2,733,000
Total assets	1,471,900,000				1,435,800,000				1,471,900,000	1,435,800,000
Cash, Cash Equivalents and Investment Securities	3,000,000				1,700,000				3,000,000	1,700,000
Loans, net of deferred loan fees and costs	1,300,200,000				1,275,500,000				1,300,200,000	1,275,500,000
Less: Allowance for credit losses	(10,700,000)				(13,200,000)				(10,700,000)	(13,200,000)
Loans, net	1,289,500,000				1,262,300,000				1,289,500,000	1,262,300,000
Intangible Assets, Net (Including Goodwill)	155,500,000				156,500,000				155,500,000	156,500,000
Other Assets Segment	23,900,000				15,100,000				23,900,000	15,100,000
Total deposits	1,839,100,000				1,681,700,000				1,839,100,000	1,681,700,000
Total stockholders’ equity	304,100,000				303,100,000				304,100,000	303,100,000
Net interest income									92,583,000	85,360,000	88,162,000
Provision for Loan, Lease, and Other Losses									1,809,000	4,575,000	2,587,000
Net interest income (loss) after provision for credit losses									90,774,000	80,785,000	85,575,000
Non-interest income									9,932,000	10,000,000	10,422,000
Non-interest expense									(52,574,000)	(48,387,000)	(53,073,000)
Income from continuing operations before income taxes									48,132,000	42,398,000	42,924,000
Income Tax Expense (Benefit)									13,565,000	17,591,000	18,049,000
Other Repossessed Assets	0				200,000				0	200,000
Other liabilities	12,200,000				11,900,000				12,200,000	11,900,000
Total liabilities	1,851,300,000				1,693,600,000				1,851,300,000	1,693,600,000
Liabilities and Equity	2,155,400,000				1,996,700,000				2,155,400,000	1,996,700,000
Excess Funds Provided by (Used in) Segment Basis	683,500,000				560,900,000				683,500,000	560,900,000
Other borrowings	0				0				0	0
Net income									34,567,000	24,807,000	24,875,000
Corporate & Other
Operating Statistics [Line Items]
Fees and Commissions, Mortgage Banking and Servicing									(5,000)	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									26,000	12,000
Contract with Customer, Liability, Revenue Recognized									21,000	12,000
Other revenue									(6,634,000)	7,240,000
Total assets	5,009,100,000				4,867,800,000				5,009,100,000	4,867,800,000
Cash, Cash Equivalents and Investment Securities	4,240,800,000				4,223,000,000				4,240,800,000	4,223,000,000
Loans, net of deferred loan fees and costs	4,700,000				4,100,000				4,700,000	4,100,000
Less: Allowance for credit losses	0				(100,000)				0	(100,000)
Loans, net	4,700,000				4,000,000				4,700,000	4,000,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	760,400,000				628,100,000				760,400,000	628,100,000
Total deposits	738,000,000				69,000,000				738,000,000	69,000,000
Total stockholders’ equity	422,700,000				300,300,000				422,700,000	300,300,000
Net interest income									12,159,000	(41,425,000)	(62,569,000)
Provision for Loan, Lease, and Other Losses									(47,000)	(1,831,000)	(3,229,000)
Net interest income (loss) after provision for credit losses									12,206,000	(39,594,000)	(59,340,000)
Non-interest income									(6,613,000)	7,252,000	4,872,000
Non-interest expense									(43,567,000)	(19,309,000)	(21,283,000)
Income from continuing operations before income taxes									(37,974,000)	(51,651,000)	(75,751,000)
Income Tax Expense (Benefit)									(58,075,000)	(65,376,000)	(66,777,000)
Other Repossessed Assets	3,200,000				12,700,000				3,200,000	12,700,000
Other liabilities	347,900,000				262,100,000				347,900,000	262,100,000
Total liabilities	1,937,400,000				1,098,000,000				1,937,400,000	1,098,000,000
Liabilities and Equity	2,360,100,000				1,398,300,000				2,360,100,000	1,398,300,000
Excess Funds Provided by (Used in) Segment Basis	(2,649,000,000)				(3,469,500,000)				(2,649,000,000)	(3,469,500,000)
Other borrowings	$ 851,500,000				$ 766,900,000				851,500,000	766,900,000
Net income									$ 20,101,000	$ 13,725,000	$ (8,974,000)

XML

Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Data Disclosure [Abstract]
Interest and Dividend Income, Operating	$ 281,968	$ 265,216	$ 251,602	$ 234,697	$ 228,459	$ 217,836	$ 206,953	$ 192,265	$ 1,033,483	$ 845,513	$ 700,506
Interest expense	38,455	31,178	27,494	20,477	17,430	16,253	14,210	12,956	117,604	60,849	43,293
Interest Income (Expense), Net	243,513	234,038	224,108	214,220	211,029	201,583	192,743	179,309	915,879	784,664	657,213
Provision for Loan, Lease, and Other Losses	6,000	6,000	5,000	6,000	5,000	5,000	3,000	4,250	23,000	17,250	8,000
Interest Income (Expense), after Provision for Loan Loss	237,513	228,038	219,108	208,220	206,029	196,583	189,743	175,059	892,879	767,414	649,213
Non-interest income	13,611	4,418	13,444	11,643	13,688	10,456	10,601	10,599	43,116	45,344	42,915
Non-interest expense	(111,129)	(113,841)	(102,548)	(98,149)	(95,398)	(89,296)	(88,420)	(87,827)	(425,667)	(360,941)	(330,949)
Income before income taxes and equity in undistributed earnings of subsidiaries	139,995	118,615	130,004	121,714	124,319	117,743	111,924	97,831	510,328	451,817	361,179
Income tax benefit	20,909	7,492	25,325	20,814	34,973	34,899	31,964	24,489	74,540	126,325	101,381
Net income	$ 119,086	$ 111,123	$ 104,679	$ 100,900	$ 89,346	$ 82,844	$ 79,960	$ 73,342	435,788	325,492	259,798
Net income available to common stockholders									$ 435,788	$ 325,492	$ 259,798
Earnings Per Share, Basic	$ 1.14	$ 1.06	$ 1.00	$ 0.97	$ 0.86	$ 0.79	$ 0.77	$ 0.71	$ 4.16	$ 3.12	$ 2.52
Earnings Per Share, Diluted	$ 1.13	$ 1.05	$ 0.99	$ 0.96	$ 0.85	$ 0.79	$ 0.76	$ 0.70	$ 4.14	$ 3.10	$ 2.50

XML

Label	Element	Value
Common Stock [Member]
Shares, Issued	us-gaap_SharesIssued	105,071,000
Shares, Issued	us-gaap_SharesIssued	105,487,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 10,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	10,000
Treasury Stock [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(26,362,000)
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(40,173,000)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(4,695,000)
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(4,203,000)
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	1,400,140,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	1,424,540,000
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	522,974,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 849,524,000