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Interim Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Interest income:        
Loans $ 250,197 $ 205,287 $ 477,538 $ 403,229
Investment securities:        
Taxable 95,522 86,603 185,325 177,653
Non-taxable 885 575 1,531 1,171
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities 7,323 1,527 10,459 3,597
Total interest income 353,927 293,992 674,853 585,650
Interest expense:        
Deposits 2,197 1,261 3,914 2,449
Borrowings 9,034 9,395 18,250 18,444
Total interest expense 11,231 10,656 22,164 20,893
Net interest income 342,696 283,336 652,689 564,757
Provision for credit losses [1] 15,806 36,746 46,540 70,221
Net interest income after provision for credit losses 326,890 246,590 606,149 494,536
Noninterest income:        
Gains on investment securities, net 17,630 23,270 33,600 18,586
Gains on equity warrant assets, net (2) [2] 10,820 5,089 17,510 11,695
Foreign exchange fees 26,108 24,088 52,355 51,054
Credit card fees 18,099 15,424 35,829 30,931
Deposit service charges 14,563 13,114 28,538 25,786
Client investment fees 12,982 8,012 22,008 16,007
Lending related fees 8,509 7,802 17,470 15,615
Letters of credit and standby letters of credit fees 7,006 6,014 13,645 11,603
Other (2) [2] 12,811 9,963 25,232 17,633
Total noninterest income 128,528 112,776 246,187 198,910
Noninterest expense:        
Compensation and benefits 148,973 115,580 296,149 237,842
Professional services 27,925 25,516 53,344 44,516
Premises and equipment 18,958 16,586 34,816 31,570
Net occupancy 11,126 9,359 22,777 19,394
Business development and travel 11,389 9,327 20,584 21,573
FDIC and state assessments 9,313 6,892 17,995 13,819
Correspondent bank fees 3,163 2,713 6,608 6,365
Other 20,399 13,966 36,606 28,759
Total noninterest expense (1) [1] 251,246 199,939 488,879 403,838
Income before income tax expense 204,172 159,427 363,457 289,608
Income tax expense (3) 71,656 [3] 65,047 123,061 [3] 118,631
Net income before noncontrolling interests 132,516 94,380 240,396 170,977
Net (income) loss attributable to noncontrolling interests (9,323) (1,416) (15,720) 1,161
Net income available to common stockholders (3) $ 123,193 [3] $ 92,964 $ 224,676 [3] $ 172,138
Earnings per common share—basic (dollars per share) $ 2.34 [3] $ 1.79 $ 4.28 [3] $ 3.33
Earnings per common share—diluted (dollars per share) $ 2.32 [3] $ 1.78 $ 4.22 [3] $ 3.30
[1] Our consolidated statements of income for the three and six months ended June 30, 2016 were modified from prior period's presentation to conform to the current period's presentation, which reflects our provision for loan losses and provision for unfunded credit commitments together as our “provision for credit losses”. In prior periods, our provision for unfunded credit commitments were reported as a component of noninterest expense.
[2] Our consolidated statements of income for the three and six months ended June 30, 2016 were modified from prior period's presentation to conform to the current period's presentation, which reflects a new line item to separately disclose net gains on equity warrant assets. In prior periods, net gains on equity warrant assets were reported as a component of gains on derivative instruments, net. We removed the line item gains on derivative instruments, net and reclassified all other gains on derivative instruments, net to other noninterest income.
[3] Included in income tax expense, net income available to common shareholders, earnings per common share-basic and earnings for common share-diluted, for the three and six months ended June 30, 2017, are tax benefits recognized associated with the adoption of Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting in the first quarter of 2017. This guidance was adopted on a prospective basis with no change to prior period amounts.