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Interim Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Interest income:        
Loans $ 268,445 $ 214,227 $ 745,983 $ 617,456
Investment securities:        
Taxable 109,443 83,468 294,768 261,121
Non-taxable 1,172 522 2,703 1,693
Federal funds sold, securities purchased under agreements to resell and other short-term investment securities 6,211 2,196 16,670 5,793
Total interest income 385,271 300,413 1,060,124 886,063
Interest expense:        
Deposits 2,304 1,535 6,218 3,984
Borrowings 8,993 9,717 27,243 28,161
Total interest expense 11,297 11,252 33,461 32,145
Net interest income 373,974 289,161 1,026,663 853,918
Provision for credit losses [1] 23,522 20,004 70,062 90,225
Net interest income after provision for credit losses 350,452 269,157 956,601 763,693
Noninterest income:        
Gains on investment securities, net 15,238 23,178 48,838 41,764
Gains on equity warrant assets, net (2) [2] 24,922 21,558 42,432 33,253
Foreign exchange fees 29,671 25,944 82,026 76,998
Credit card fees 20,270 18,295 56,099 49,226
Deposit service charges 14,508 13,356 43,046 39,142
Client investment fees 15,563 7,952 37,571 23,959
Lending related fees 15,404 8,168 32,874 23,783
Letters of credit and standby letters of credit fees 7,306 6,811 20,951 18,414
Other (2) [2] 15,896 18,878 41,128 36,511
Total noninterest income 158,778 144,140 404,965 343,050
Noninterest expense:        
Compensation and benefits 153,263 136,568 449,412 374,410
Professional services 32,987 23,443 86,331 67,959
Premises and equipment 18,937 16,291 53,753 47,861
Net occupancy 12,660 9,525 35,437 28,919
Business development and travel 10,329 8,504 30,913 30,077
FDIC and state assessments 8,359 7,805 26,354 21,624
Correspondent bank fees 3,162 3,104 9,770 9,469
Other 18,064 15,533 54,670 44,292
Total noninterest expense (1) [1] 257,761 220,773 746,640 624,611
Income before income tax expense 251,469 192,524 614,926 482,132
Income tax expense (3) 97,351 [3] 76,877 220,412 [3] 195,508
Net income before noncontrolling interests 154,118 115,647 394,514 286,624
Net income loss attributable to noncontrolling interests (5,498) (4,566) (21,218) (3,405)
Net income available to common stockholders (3) $ 148,620 [3] $ 111,081 $ 373,296 [3] $ 283,219
Earnings per common share—basic (dollars per share) $ 2.82 [3] $ 2.13 $ 7.11 [3] $ 5.46
Earnings per common share—diluted (dollars per share) $ 2.79 [3] $ 2.12 $ 7.01 [3] $ 5.42
[1] Our consolidated statements of income for the three and nine months ended September 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 nine months ended September 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 nine months ended September 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.