Hope Bancorp Reports 2024 Second Quarter Financial Results
“During the 2024 second quarter, our net interest margin expanded, our operating expenses decreased, and our return on assets improved, compared with the 2024 first quarter,” said
“Quarter-over-quarter, total deposits were essentially stable with growth in noninterest bearing demand deposits and other customer deposits largely offsetting a planned reduction in brokered time deposits. Our cost of total deposits increased by only three basis points this quarter, a sharp deceleration from the quarterly increases over the past two years. Gross loans decreased modestly quarter-over-quarter as elevated payoffs and paydowns offset growing production volumes. Given the improved conditions in the secondary markets, we resumed SBA loan sales during the second quarter. Nonperforming assets of
“Following the signing of the definitive merger agreement with
____________________
(1) |
Net income, excluding merger-related expenses, restructuring-related charges and the |
Operating Results for the 2024 Second Quarter
Net interest income.
Net interest income before provision for credit losses for the 2024 second quarter totaled
Net interest margin expansion. Net interest margin for the 2024 second quarter expanded to 2.62%, up seven basis points from 2.55% in the 2024 first quarter, largely reflecting a favorable earning asset mix shift. The 2024 second quarter yield on average earning assets was 5.76%, unchanged from the first quarter of 2024. The cost of average interest bearing liabilities was 4.55% in the second quarter of 2024, up only two basis points from 4.53% in the preceding first quarter.
Cost of deposits. The quarter-over-quarter rate of change in deposit costs substantially slowed. The average cost of total deposits for the 2024 second quarter was 3.39%, an increase of three basis points from 3.36% in the preceding first quarter. This rate of change compares favorably with the 21 basis point quarter-over-quarter increase in the average cost of total deposits in the 2024 first quarter, and with the quarterly rates of change experienced in 2023 and 2022.
Noninterest income.
Noninterest income for the 2024 second quarter increased to
Noninterest expense.
Noninterest expense for the 2024 second quarter decreased 5% to
Salaries and employee benefits expense for the 2024 second quarter was
Tax rate. The year-to-date effective tax rate for the first half of 2024 was 27.4%, compared with the year-to-date effective tax rate of 26.0% for the first half of 2023. For the full year 2024, the Company expects the effective tax rate to be approximately 26%.
____________________
(2) |
Noninterest expense, excluding merger-related expenses, restructuring-related charges and the |
Balance Sheet Summary
Cash and investment securities.
At
Loans.
Gross loans of
The following table sets forth the loan portfolio composition at
(dollars in thousands) (unaudited) |
|
|
|
|
|
|||||||||||||||
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|||||||||
Commercial real estate (“CRE”) loans |
$ |
8,679,515 |
|
63.6 |
% |
|
$ |
8,707,673 |
|
63.5 |
% |
|
$ |
9,192,160 |
|
61.7 |
% |
|||
Commercial and industrial (“C&I”) loans |
|
3,854,284 |
|
|
28.3 |
% |
|
|
4,041,063 |
|
|
29.4 |
% |
|
|
4,805,126 |
|
|
32.2 |
% |
Residential mortgage and other loans |
|
1,033,203 |
|
|
7.6 |
% |
|
|
970,442 |
|
|
7.1 |
% |
|
|
867,524 |
|
|
5.8 |
% |
Loans receivable |
|
13,567,002 |
|
|
99.5 |
% |
|
|
13,719,178 |
|
|
100.0 |
% |
|
|
14,864,810 |
|
|
99.7 |
% |
Loans held for sale |
|
68,316 |
|
|
0.5 |
% |
|
|
2,763 |
|
|
— |
% |
|
|
49,246 |
|
|
0.3 |
% |
Gross loans |
$ |
13,635,318 |
|
|
100.0 |
% |
|
$ |
13,721,941 |
|
|
100.0 |
% |
|
$ |
14,914,056 |
|
|
100.0 |
% |
Deposits.
Total deposits were essentially stable quarter-over-quarter, totaling
The following table sets forth the deposit composition at
(dollars in thousands) (unaudited) |
|
|
|
|
|
|||||||||||||||
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|
Balance |
|
Percentage |
|||||||||
Noninterest bearing demand deposits |
$ |
3,671,192 |
|
24.9 |
% |
|
$ |
3,652,592 |
|
24.7 |
% |
|
$ |
4,229,247 |
|
27.1 |
% |
|||
Money market, interest bearing demand, and savings deposits |
|
4,907,860 |
|
|
33.4 |
% |
|
|
5,313,064 |
|
|
36.0 |
% |
|
|
4,413,079 |
|
|
28.2 |
% |
Time deposits |
|
6,132,419 |
|
|
41.7 |
% |
|
|
5,787,761 |
|
|
39.3 |
% |
|
|
6,977,026 |
|
|
44.7 |
% |
Total deposits |
$ |
14,711,471 |
|
|
100.0 |
% |
|
$ |
14,753,417 |
|
|
100.0 |
% |
|
$ |
15,619,352 |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Gross loan-to-deposit ratio |
|
|
92.7 |
% |
|
|
|
93.0 |
% |
|
|
|
95.5 |
% |
Borrowings.
Credit Quality and Allowance for Credit Losses
Nonperforming assets.
Nonperforming assets decreased 37% to
The following table sets forth the components of nonperforming assets at
(dollars in thousands) (unaudited) |
|
|
|
|
|
||||||
Loans on nonaccrual status (1) |
$ |
67,003 |
|
|
$ |
59,526 |
|
|
$ |
61,252 |
|
Accruing delinquent loans past due 90 days or more |
|
273 |
|
|
|
47,290 |
|
|
|
15,182 |
|
Total nonperforming loans |
|
67,276 |
|
|
|
106,816 |
|
|
|
76,434 |
|
Other real estate owned |
|
— |
|
|
|
— |
|
|
|
938 |
|
Total nonperforming assets |
$ |
67,276 |
|
|
$ |
106,816 |
|
|
$ |
77,372 |
|
|
|
|
|
|
|
|
|
|
|||
Nonperforming assets/total assets |
|
0.39 |
% |
|
|
0.59 |
% |
|
|
0.38 |
% |
(1) |
|
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling |
Net charge offs and provision for credit losses.
The Company recorded net charge offs of
The following table sets forth net charge offs and annualized net charge off ratios for the three months ended
|
For the Three Months Ended |
||||||||||
(dollars in thousands) (unaudited) |
|
|
|
|
|
||||||
Net charge offs (recoveries) |
$ |
4,439 |
|
|
$ |
3,536 |
|
|
$ |
(552 |
) |
Annualized net charge offs (recoveries)/average loans |
|
0.13 |
% |
|
|
0.10 |
% |
|
|
(0.01 |
)% |
For the 2024 second quarter, the Company recorded a provision for credit losses of
Allowance for credit losses.
The allowance for credit losses totaled
The following table sets forth the allowance for credit losses and the coverage ratios at
(dollars in thousands) (unaudited) |
|
|
|
|
|
||||||
Allowance for credit losses |
$ |
156,019 |
|
|
$ |
158,758 |
|
|
$ |
172,996 |
|
Allowance for credit losses/loans receivable |
|
1.15 |
% |
|
|
1.16 |
% |
|
|
1.16 |
% |
Capital
The Company’s capital ratios are strong and all regulatory risk-based capital ratios expanded quarter-over-quarter and year-over-year. At
(unaudited) |
|
|
|
|
|
|
Minimum Guideline for “Well-Capitalized” |
Common Equity Tier 1 Capital Ratio |
12.70% |
|
12.47% |
|
11.05% |
|
6.50% |
Tier 1 Capital Ratio |
13.40% |
|
13.17% |
|
11.68% |
|
8.00% |
Total Capital Ratio |
14.42% |
|
14.19% |
|
12.64% |
|
10.00% |
Leverage Ratio |
11.61% |
|
10.42% |
|
9.57% |
|
5.00% |
At
The following table sets forth the TCE per share and the TCE ratio at
(unaudited) |
|
|
|
|
|
TCE per share |
|
|
|
|
|
TCE ratio |
9.72% |
|
9.33% |
|
8.04% |
____________________
(3] |
TCE ratio per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
Investor Conference Call
The Company previously announced that it will host an investor conference call on
Non-GAAP Financial Metrics
This news release and accompanying financial tables contain certain non-GAAP financial measure disclosures, including net income excluding notable items, earnings per share excluding notable items, noninterest expense excluding notable items, TCE per share, TCE ratio, ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, efficiency ratio excluding notable items and noninterest expense / average assets excluding notable items. Management believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operational performance and the Company’s capital levels and has included these figures in response to market participant interest in these financial metrics. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11.
About
Additional Information About the Merger and Where to Find It
In connection with the proposed merger with
Participants in Solicitation
Forward-Looking Statements
Some statements in this news release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to, among other things, expectations regarding Territorial Bancorp’s low-cost core deposit base, strengthening of profitability, ease of integration and diversification of franchise. Forward-looking statements include, but are not limited to, statements preceded by, followed by or that include the words “will,” “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates” or similar expressions. With respect to any such forward-looking statements,
Selected Financial Data Unaudited (dollars in thousands, except share data) |
|||||||||||||||||
Assets: |
|
|
|
|
% change |
|
|
|
% change |
||||||||
Cash and due from banks |
$ |
654,044 |
|
|
$ |
1,185,296 |
|
|
(44.8 |
)% |
|
$ |
2,302,339 |
|
|
(71.6 |
)% |
Investment securities |
|
2,172,859 |
|
|
|
2,277,990 |
|
|
(4.6 |
)% |
|
|
2,186,346 |
|
|
(0.6 |
)% |
|
|
61,528 |
|
|
|
61,175 |
|
|
0.6 |
% |
|
|
60,213 |
|
|
2.2 |
% |
Gross loans, including loans held for sale |
|
13,635,318 |
|
|
|
13,721,941 |
|
|
(0.6 |
)% |
|
|
14,914,056 |
|
|
(8.6 |
)% |
Allowance for credit losses |
|
(156,019 |
) |
|
|
(158,758 |
) |
|
(1.7 |
)% |
|
|
(172,996 |
) |
|
(9.8 |
)% |
Accrued interest receivable |
|
57,645 |
|
|
|
60,316 |
|
|
(4.4 |
)% |
|
|
60,118 |
|
|
(4.1 |
)% |
Premises and equipment, net |
|
50,919 |
|
|
|
50,541 |
|
|
0.7 |
% |
|
|
50,513 |
|
|
0.8 |
% |
|
|
467,583 |
|
|
|
467,984 |
|
|
(0.1 |
)% |
|
|
469,280 |
|
|
(0.4 |
)% |
Other assets |
|
431,214 |
|
|
|
421,729 |
|
|
2.2 |
% |
|
|
496,269 |
|
|
(13.1 |
)% |
Total assets |
$ |
17,375,091 |
|
|
$ |
18,088,214 |
|
|
(3.9 |
)% |
|
$ |
20,366,138 |
|
|
(14.7 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
||||||||
Deposits |
$ |
14,711,471 |
|
|
$ |
14,753,417 |
|
|
(0.3 |
)% |
|
$ |
15,619,352 |
|
|
(5.8 |
)% |
|
|
170,000 |
|
|
|
795,634 |
|
|
(78.6 |
)% |
|
|
2,260,000 |
|
|
(92.5 |
)% |
Subordinated debentures and convertible notes, net |
|
108,918 |
|
|
|
108,592 |
|
|
0.3 |
% |
|
|
107,632 |
|
|
1.2 |
% |
Accrued interest payable |
|
86,779 |
|
|
|
122,467 |
|
|
(29.1 |
)% |
|
|
109,236 |
|
|
(20.6 |
)% |
Other liabilities |
|
186,641 |
|
|
|
195,834 |
|
|
(4.7 |
)% |
|
|
201,920 |
|
|
(7.6 |
)% |
Total liabilities |
$ |
15,263,809 |
|
|
$ |
15,975,944 |
|
|
(4.5 |
)% |
|
$ |
18,298,140 |
|
|
(16.6 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
||||||||
Common stock, |
$ |
138 |
|
|
$ |
138 |
|
|
— |
% |
|
$ |
137 |
|
|
0.7 |
% |
Additional paid-in capital |
|
1,440,963 |
|
|
|
1,439,484 |
|
|
0.1 |
% |
|
|
1,433,788 |
|
|
0.5 |
% |
Retained earnings |
|
1,167,978 |
|
|
|
1,159,593 |
|
|
0.7 |
% |
|
|
1,127,624 |
|
|
3.6 |
% |
|
|
(264,667 |
) |
|
|
(264,667 |
) |
|
— |
% |
|
|
(264,667 |
) |
|
— |
% |
Accumulated other comprehensive loss, net |
|
(233,130 |
) |
|
|
(222,278 |
) |
|
(4.9 |
)% |
|
|
(228,884 |
) |
|
(1.9 |
)% |
Total stockholders’ equity |
|
2,111,282 |
|
|
|
2,112,270 |
|
|
— |
% |
|
|
2,067,998 |
|
|
2.1 |
% |
Total liabilities and stockholders’ equity |
$ |
17,375,091 |
|
|
$ |
18,088,214 |
|
|
(3.9 |
)% |
|
$ |
20,366,138 |
|
|
(14.7 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Common stock shares – authorized |
|
300,000,000 |
|
|
|
150,000,000 |
|
|
|
|
|
150,000,000 |
|
|
|
||
Common stock shares – outstanding |
|
120,731,342 |
|
|
|
120,610,029 |
|
|
|
|
|
120,014,888 |
|
|
|
||
|
|
17,382,835 |
|
|
|
17,382,835 |
|
|
|
|
|
17,382,835 |
|
|
|
||
Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||
|
|
|
|
|
% change |
|
|
|
% change |
|
|
|
|
|
% change |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest and fees on loans |
$ |
209,683 |
|
$ |
213,626 |
|
(2 |
)% |
|
$ |
225,671 |
|
(7 |
)% |
|
$ |
423,309 |
|
$ |
441,606 |
|
(4 |
)% |
|||||
Interest on investment securities |
|
16,829 |
|
|
|
18,049 |
|
|
(7 |
)% |
|
|
15,534 |
|
|
8 |
% |
|
|
34,878 |
|
|
|
30,659 |
|
|
14 |
% |
Interest on cash and deposits at other banks |
|
5,284 |
|
|
|
27,183 |
|
|
(81 |
)% |
|
|
25,295 |
|
|
(79 |
)% |
|
|
32,467 |
|
|
|
30,217 |
|
|
7 |
% |
Interest on other investments and FHLB dividends |
|
805 |
|
|
|
816 |
|
|
(1 |
)% |
|
|
684 |
|
|
18 |
% |
|
|
1,621 |
|
|
|
1,379 |
|
|
18 |
% |
Total interest income |
|
232,601 |
|
|
|
259,674 |
|
|
(10 |
)% |
|
|
267,184 |
|
|
(13 |
)% |
|
|
492,275 |
|
|
|
503,861 |
|
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest on deposits |
|
122,577 |
|
|
|
124,033 |
|
|
(1 |
)% |
|
|
109,724 |
|
|
12 |
% |
|
|
246,610 |
|
|
|
202,072 |
|
|
22 |
% |
Interest on borrowings |
|
4,164 |
|
|
|
20,594 |
|
|
(80 |
)% |
|
|
26,771 |
|
|
(84 |
)% |
|
|
24,758 |
|
|
|
37,222 |
|
|
(33 |
)% |
Total interest expense |
|
126,741 |
|
|
|
144,627 |
|
|
(12 |
)% |
|
|
136,495 |
|
|
(7 |
)% |
|
|
271,368 |
|
|
|
239,294 |
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income before provision |
|
105,860 |
|
|
|
115,047 |
|
|
(8 |
)% |
|
|
130,689 |
|
|
(19 |
)% |
|
|
220,907 |
|
|
|
264,567 |
|
|
(17 |
)% |
Provision for credit losses |
|
1,400 |
|
|
|
2,600 |
|
|
(46 |
)% |
|
|
9,010 |
|
|
(84 |
)% |
|
|
4,000 |
|
|
|
12,330 |
|
|
(68 |
)% |
Net interest income after provision |
|
104,460 |
|
|
|
112,447 |
|
|
(7 |
)% |
|
|
121,679 |
|
|
(14 |
)% |
|
|
216,907 |
|
|
|
252,237 |
|
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Service fees on deposit accounts |
|
2,681 |
|
|
|
2,587 |
|
|
4 |
% |
|
|
2,325 |
|
|
15 |
% |
|
|
5,268 |
|
|
|
4,546 |
|
|
16 |
% |
Net gains on sales of SBA loans |
|
1,980 |
|
|
|
— |
|
|
100 |
% |
|
|
1,872 |
|
|
6 |
% |
|
|
1,980 |
|
|
|
4,097 |
|
|
(52 |
)% |
Net gains on sales of securities available for sale |
|
425 |
|
|
|
— |
|
|
100 |
% |
|
|
— |
|
|
100 |
% |
|
|
425 |
|
|
|
— |
|
|
100 |
% |
Other income and fees |
|
5,985 |
|
|
|
5,699 |
|
|
5 |
% |
|
|
12,817 |
|
|
(53 |
)% |
|
|
11,684 |
|
|
|
19,349 |
|
|
(40 |
)% |
Total noninterest income |
|
11,071 |
|
|
|
8,286 |
|
|
34 |
% |
|
|
17,014 |
|
|
(35 |
)% |
|
|
19,357 |
|
|
|
27,992 |
|
|
(31 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Salaries and employee benefits |
|
44,107 |
|
|
|
47,577 |
|
|
(7 |
)% |
|
|
52,305 |
|
|
(16 |
)% |
|
|
91,684 |
|
|
|
109,474 |
|
|
(16 |
)% |
Occupancy |
|
6,906 |
|
|
|
6,786 |
|
|
2 |
% |
|
|
6,967 |
|
|
(1 |
)% |
|
|
13,692 |
|
|
|
14,488 |
|
|
(5 |
)% |
Furniture and equipment |
|
5,475 |
|
|
|
5,340 |
|
|
3 |
% |
|
|
5,393 |
|
|
2 |
% |
|
|
10,815 |
|
|
|
10,451 |
|
|
3 |
% |
Data processing and communications |
|
2,997 |
|
|
|
2,990 |
|
|
— |
% |
|
|
2,917 |
|
|
3 |
% |
|
|
5,987 |
|
|
|
5,739 |
|
|
4 |
% |
|
|
3,003 |
|
|
|
2,926 |
|
|
3 |
% |
|
|
4,691 |
|
|
(36 |
)% |
|
|
5,929 |
|
|
|
6,472 |
|
|
(8 |
)% |
|
|
(309 |
) |
|
|
1,000 |
|
|
N/A |
|
|
|
— |
|
|
100 |
% |
|
|
691 |
|
|
|
— |
|
|
100 |
% |
Earned interest credit |
|
6,139 |
|
|
|
5,834 |
|
|
5 |
% |
|
|
5,090 |
|
|
21 |
% |
|
|
11,973 |
|
|
|
9,517 |
|
|
26 |
% |
Restructuring-related costs |
|
576 |
|
|
|
402 |
|
|
43 |
% |
|
|
— |
|
|
100 |
% |
|
|
978 |
|
|
|
— |
|
|
100 |
% |
Merger-related costs |
|
1,589 |
|
|
|
1,044 |
|
|
52 |
% |
|
|
— |
|
|
100 |
% |
|
|
2,633 |
|
|
|
— |
|
|
100 |
% |
Other noninterest expense |
|
10,504 |
|
|
|
10,940 |
|
|
(4 |
)% |
|
|
9,860 |
|
|
7 |
% |
|
|
21,444 |
|
|
|
19,816 |
|
|
8 |
% |
Total noninterest expense |
|
80,987 |
|
|
|
84,839 |
|
|
(5 |
)% |
|
|
87,223 |
|
|
(7 |
)% |
|
|
165,826 |
|
|
|
175,957 |
|
|
(6 |
)% |
Income before income taxes |
|
34,544 |
|
|
|
35,894 |
|
|
(4 |
)% |
|
|
51,470 |
|
|
(33 |
)% |
|
|
70,438 |
|
|
|
104,272 |
|
|
(32 |
)% |
Income tax provision |
|
9,274 |
|
|
|
10,030 |
|
|
(8 |
)% |
|
|
13,448 |
|
|
(31 |
)% |
|
|
19,304 |
|
|
|
27,129 |
|
|
(29 |
)% |
Net income |
$ |
25,270 |
|
|
$ |
25,864 |
|
|
(2 |
)% |
|
$ |
38,022 |
|
|
(34 |
)% |
|
$ |
51,134 |
|
|
$ |
77,143 |
|
|
(34 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Earnings per common share – diluted |
$ |
0.21 |
|
|
$ |
0.21 |
|
|
|
|
$ |
0.32 |
|
|
|
|
$ |
0.42 |
|
|
$ |
0.64 |
|
|
|
|||
Weighted average shares outstanding – diluted |
|
120,939,429 |
|
|
|
121,020,292 |
|
|
|
|
|
120,129,359 |
|
|
|
|
|
120,964,149 |
|
|
|
120,179,443 |
|
|
|
|||
Selected Financial Data Unaudited |
||||||||||||||
|
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||
Profitability measures (annualized): |
|
|
|
|
|
|
|
|
|
|||||
Return on average assets (“ROA”) |
0.59 |
% |
|
0.54 |
% |
|
0.74 |
% |
|
0.56 |
% |
|
0.78 |
% |
ROA excluding notable items (1) |
0.62 |
% |
|
0.58 |
% |
|
0.74 |
% |
|
0.60 |
% |
|
0.78 |
% |
Return on average equity (“ROE”) |
4.82 |
% |
|
4.87 |
% |
|
7.34 |
% |
|
4.84 |
% |
|
7.49 |
% |
ROE excluding notable items (1) |
5.07 |
% |
|
5.19 |
% |
|
7.34 |
% |
|
5.13 |
% |
|
7.49 |
% |
Return on average tangible common equity (“ROTCE”) (1) |
6.20 |
% |
|
6.24 |
% |
|
9.49 |
% |
|
6.22 |
% |
|
9.70 |
% |
ROTCE excluding notable items (1) |
6.53 |
% |
|
6.66 |
% |
|
9.49 |
% |
|
6.59 |
% |
|
9.70 |
% |
Net interest margin |
2.62 |
% |
|
2.55 |
% |
|
2.70 |
% |
|
2.58 |
% |
|
2.85 |
% |
Efficiency ratio (not annualized) |
69.26 |
% |
|
68.79 |
% |
|
59.05 |
% |
|
69.02 |
% |
|
60.14 |
% |
Efficiency ratio excluding notable items (not annualized) (1) |
67.67 |
% |
|
66.81 |
% |
|
59.05 |
% |
|
67.23 |
% |
|
60.14 |
% |
|
|
|
|
|
|
|
|
|
|
|||||
(1) ROA excluding notable items, ROE excluding notable items, ROTCE, ROTCE excluding notable items, and efficiency ratio excluding notable items are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Pages 10 and 11. |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Selected Financial Data Unaudited (dollars in thousands) |
||||||||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
Interest |
|
Annualized |
|
|
|
Interest |
|
Annualized |
|
|
|
Interest |
|
Annualized |
|||||||||||||||
|
Average |
|
Income/ |
|
Average |
|
Average |
|
Income/ |
|
Average |
|
Average |
|
Income/ |
|
Average |
|||||||||||||||
|
Balance |
|
Expense |
|
Yield/Cost |
|
Balance |
|
Expense |
|
Yield/Cost |
|
Balance |
|
Expense |
|
Yield/Cost |
|||||||||||||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans, including loans held for sale |
$ |
13,591,936 |
|
$ |
209,683 |
|
6.20 |
% |
|
$ |
13,746,219 |
|
$ |
213,626 |
|
6.25 |
% |
|
$ |
15,105,212 |
|
$ |
225,671 |
|
5.99 |
% |
||||||
Investment securities |
|
2,175,379 |
|
|
|
16,829 |
|
|
3.11 |
% |
|
|
2,317,154 |
|
|
|
18,049 |
|
|
3.13 |
% |
|
|
2,243,614 |
|
|
|
15,534 |
|
|
2.78 |
% |
Interest earning cash and deposits at other banks |
|
428,062 |
|
|
|
5,284 |
|
|
4.96 |
% |
|
|
2,019,769 |
|
|
|
27,183 |
|
|
5.41 |
% |
|
|
1,996,924 |
|
|
|
25,295 |
|
|
5.08 |
% |
FHLB stock and other investments |
|
48,463 |
|
|
|
805 |
|
|
6.68 |
% |
|
|
48,136 |
|
|
|
816 |
|
|
6.82 |
% |
|
|
47,044 |
|
|
|
684 |
|
|
5.83 |
% |
Total interest earning assets |
$ |
16,243,840 |
|
|
$ |
232,601 |
|
|
5.76 |
% |
|
$ |
18,131,278 |
|
|
$ |
259,674 |
|
|
5.76 |
% |
|
$ |
19,392,794 |
|
|
$ |
267,184 |
|
|
5.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Money market, interest bearing demand and savings |
$ |
4,948,708 |
|
|
$ |
48,708 |
|
|
3.96 |
% |
|
$ |
5,072,782 |
|
|
$ |
50,145 |
|
|
3.98 |
% |
|
$ |
4,495,879 |
|
|
$ |
35,051 |
|
|
3.13 |
% |
Time deposits |
|
5,921,201 |
|
|
|
73,869 |
|
|
5.02 |
% |
|
|
5,985,501 |
|
|
|
73,888 |
|
|
4.96 |
% |
|
|
6,890,035 |
|
|
|
74,673 |
|
|
4.35 |
% |
Total interest bearing deposits |
|
10,869,909 |
|
|
|
122,577 |
|
|
4.54 |
% |
|
|
11,058,283 |
|
|
|
124,033 |
|
|
4.51 |
% |
|
|
11,385,914 |
|
|
|
109,724 |
|
|
3.87 |
% |
FHLB and FRB borrowings |
|
219,402 |
|
|
|
1,430 |
|
|
2.62 |
% |
|
|
1,683,334 |
|
|
|
17,853 |
|
|
4.27 |
% |
|
|
2,177,264 |
|
|
|
23,622 |
|
|
4.35 |
% |
Subordinated debentures and convertible notes |
|
104,822 |
|
|
|
2,734 |
|
|
10.32 |
% |
|
|
104,493 |
|
|
|
2,741 |
|
|
10.38 |
% |
|
|
199,744 |
|
|
|
3,149 |
|
|
6.24 |
% |
Total interest bearing liabilities |
$ |
11,194,133 |
|
|
$ |
126,741 |
|
|
4.55 |
% |
|
$ |
12,846,110 |
|
|
$ |
144,627 |
|
|
4.53 |
% |
|
$ |
13,762,922 |
|
|
$ |
136,495 |
|
|
3.98 |
% |
Noninterest bearing demand deposits |
|
3,666,416 |
|
|
|
|
|
|
|
3,803,870 |
|
|
|
|
|
|
|
4,366,868 |
|
|
|
|
|
|||||||||
Total funding liabilities/cost of funds |
$ |
14,860,549 |
|
|
|
|
3.43 |
% |
|
$ |
16,649,980 |
|
|
|
|
3.49 |
% |
|
$ |
18,129,790 |
|
|
|
|
3.02 |
% |
||||||
Net interest income/net interest spread |
|
|
$ |
105,860 |
|
|
1.21 |
% |
|
|
|
$ |
115,047 |
|
|
1.23 |
% |
|
|
|
$ |
130,689 |
|
|
1.55 |
% |
||||||
Net interest margin |
|
|
|
|
2.62 |
% |
|
|
|
|
|
2.55 |
% |
|
|
|
|
|
2.70 |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cost of deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest bearing demand deposits |
$ |
3,666,416 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
3,803,870 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
4,366,868 |
|
|
$ |
— |
|
|
— |
% |
Interest bearing deposits |
|
10,869,909 |
|
|
|
122,577 |
|
|
4.54 |
% |
|
|
11,058,283 |
|
|
|
124,033 |
|
|
4.51 |
% |
|
|
11,385,914 |
|
|
|
109,724 |
|
|
3.87 |
% |
Total deposits |
$ |
14,536,325 |
|
|
$ |
122,577 |
|
|
3.39 |
% |
|
$ |
14,862,153 |
|
|
$ |
124,033 |
|
|
3.36 |
% |
|
$ |
15,752,782 |
|
|
$ |
109,724 |
|
|
2.79 |
% |
Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended |
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
Interest |
|
Annualized |
|
|
|
Interest |
|
Annualized |
|
|
|
|
|
|
||||||||||
|
Average |
|
Income/ |
|
Average |
|
Average |
|
Income/ |
|
Average |
|
|
|
|
|
|
||||||||||
|
Balance |
|
Expense |
|
Yield/Cost |
|
Balance |
|
Expense |
|
Yield/Cost |
|
|
|
|
|
|
||||||||||
INTEREST EARNING ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including loans held for sale |
$ |
13,669,078 |
|
$ |
423,309 |
|
6.23 |
% |
|
$ |
15,169,939 |
|
$ |
441,606 |
|
5.87 |
% |
|
|
|
|
|
|
||||
Investment securities |
|
2,246,266 |
|
|
|
34,878 |
|
|
3.12 |
% |
|
|
2,246,033 |
|
|
|
30,659 |
|
|
2.75 |
% |
|
|
|
|
|
|
Interest earning cash and deposits at other banks |
|
1,223,916 |
|
|
|
32,467 |
|
|
5.33 |
% |
|
|
1,239,343 |
|
|
|
30,217 |
|
|
4.92 |
% |
|
|
|
|
|
|
FHLB stock and other investments |
|
48,299 |
|
|
|
1,621 |
|
|
6.75 |
% |
|
|
47,044 |
|
|
|
1,379 |
|
|
5.91 |
% |
|
|
|
|
|
|
Total interest earning assets |
$ |
17,187,559 |
|
|
$ |
492,275 |
|
|
5.76 |
% |
|
$ |
18,702,359 |
|
|
$ |
503,861 |
|
|
5.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INTEREST BEARING LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Money market, interest bearing demand and savings |
$ |
5,010,745 |
|
|
$ |
98,852 |
|
|
3.97 |
% |
|
$ |
5,043,522 |
|
|
$ |
77,276 |
|
|
3.09 |
% |
|
|
|
|
|
|
Time deposits |
|
5,953,351 |
|
|
|
147,758 |
|
|
4.99 |
% |
|
|
6,220,422 |
|
|
|
124,796 |
|
|
4.05 |
% |
|
|
|
|
|
|
Total interest bearing deposits |
|
10,964,096 |
|
|
|
246,610 |
|
|
4.52 |
% |
|
|
11,263,944 |
|
|
|
202,072 |
|
|
3.62 |
% |
|
|
|
|
|
|
FHLB and FRB borrowings |
|
951,368 |
|
|
|
19,283 |
|
|
4.08 |
% |
|
|
1,431,000 |
|
|
|
30,320 |
|
|
4.27 |
% |
|
|
|
|
|
|
Subordinated debentures and convertible notes |
|
104,657 |
|
|
|
5,475 |
|
|
10.35 |
% |
|
|
259,493 |
|
|
|
6,902 |
|
|
5.29 |
% |
|
|
|
|
|
|
Total interest bearing liabilities |
$ |
12,020,121 |
|
|
$ |
271,368 |
|
|
4.54 |
% |
|
$ |
12,954,437 |
|
|
$ |
239,294 |
|
|
3.73 |
% |
|
|
|
|
|
|
Noninterest bearing demand deposits |
|
3,735,143 |
|
|
|
|
|
|
|
4,513,659 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Total funding liabilities/cost of funds |
$ |
15,755,264 |
|
|
|
|
3.46 |
% |
|
$ |
17,468,096 |
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
||||
Net interest income/net interest spread |
|
|
$ |
220,907 |
|
|
1.22 |
% |
|
|
|
$ |
264,567 |
|
|
1.70 |
% |
|
|
|
|
|
|
||||
Net interest margin |
|
|
|
|
2.58 |
% |
|
|
|
|
|
2.85 |
% |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest bearing demand deposits |
$ |
3,735,143 |
|
|
$ |
— |
|
|
— |
% |
|
$ |
4,513,659 |
|
|
$ |
— |
|
|
— |
% |
|
|
|
|
|
|
Interest bearing deposits |
|
10,964,096 |
|
|
|
246,610 |
|
|
4.52 |
% |
|
|
11,263,944 |
|
|
|
202,072 |
|
|
3.62 |
% |
|
|
|
|
|
|
Total deposits |
$ |
14,699,239 |
|
|
$ |
246,610 |
|
|
3.37 |
% |
|
$ |
15,777,603 |
|
|
$ |
202,072 |
|
|
2.58 |
% |
|
|
|
|
|
|
Selected Financial Data Unaudited (dollars in thousands) |
||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||
AVERAGE BALANCES: |
|
|
|
|
% change |
|
|
|
% change |
|
|
|
|
|
% change |
|||||||||||||
Gross loans, including loans held for sale |
$ |
13,591,936 |
|
$ |
13,746,219 |
|
(1 |
)% |
|
$ |
15,105,212 |
|
(10 |
)% |
|
$ |
13,669,078 |
|
$ |
15,169,939 |
|
(10 |
)% |
|||||
Investment securities |
|
2,175,379 |
|
|
|
2,317,154 |
|
|
(6 |
)% |
|
|
2,243,614 |
|
|
(3 |
)% |
|
|
2,246,266 |
|
|
|
2,246,033 |
|
|
— |
% |
Interest earning cash and deposits at other banks |
|
428,062 |
|
|
|
2,019,769 |
|
|
(79 |
)% |
|
|
1,996,924 |
|
|
(79 |
)% |
|
|
1,223,916 |
|
|
|
1,239,343 |
|
|
(1 |
)% |
Interest earning assets |
|
16,243,840 |
|
|
|
18,131,278 |
|
|
(10 |
)% |
|
|
19,392,794 |
|
|
(16 |
)% |
|
|
17,187,559 |
|
|
|
18,702,359 |
|
|
(8 |
)% |
|
|
467,822 |
|
|
|
468,229 |
|
|
— |
% |
|
|
469,515 |
|
|
— |
% |
|
|
468,026 |
|
|
|
469,752 |
|
|
— |
% |
Total assets |
|
17,256,638 |
|
|
|
19,140,775 |
|
|
(10 |
)% |
|
|
20,468,810 |
|
|
(16 |
)% |
|
|
18,198,707 |
|
|
|
19,781,806 |
|
|
(8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand deposits |
|
3,666,416 |
|
|
|
3,803,870 |
|
|
(4 |
)% |
|
|
4,366,868 |
|
|
(16 |
)% |
|
|
3,735,143 |
|
|
|
4,513,659 |
|
|
(17 |
)% |
Interest bearing deposits |
|
10,869,909 |
|
|
|
11,058,283 |
|
|
(2 |
)% |
|
|
11,385,914 |
|
|
(5 |
)% |
|
|
10,964,096 |
|
|
|
11,263,944 |
|
|
(3 |
)% |
Total deposits |
|
14,536,325 |
|
|
|
14,862,153 |
|
|
(2 |
)% |
|
|
15,752,782 |
|
|
(8 |
)% |
|
|
14,699,239 |
|
|
|
15,777,603 |
|
|
— |
% |
Interest bearing liabilities |
|
11,194,133 |
|
|
|
12,846,110 |
|
|
(13 |
)% |
|
|
13,762,922 |
|
|
(19 |
)% |
|
|
12,020,121 |
|
|
|
12,954,437 |
|
|
(7 |
)% |
Stockholders’ equity |
|
2,097,108 |
|
|
|
2,126,333 |
|
|
(1 |
)% |
|
|
2,072,859 |
|
|
1 |
% |
|
|
2,111,720 |
|
|
|
2,059,583 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOAN PORTFOLIO COMPOSITION: |
|
|
|
|
% change |
|
|
|
% change |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate (“CRE”) loans |
$ |
8,679,515 |
|
|
$ |
8,707,673 |
|
|
— |
% |
|
$ |
9,192,160 |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial (“C&I”) loans |
|
3,854,284 |
|
|
|
4,041,063 |
|
|
(5 |
)% |
|
|
4,805,126 |
|
|
(20 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage and other loans |
|
1,033,203 |
|
|
|
970,442 |
|
|
6 |
% |
|
|
867,524 |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
Loans receivable |
|
13,567,002 |
|
|
|
13,719,178 |
|
|
(1 |
)% |
|
|
14,864,810 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale |
|
61,528 |
|
|
|
2,763 |
|
|
NM |
|
|
|
49,246 |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
13,628,530 |
|
|
|
13,721,941 |
|
|
(1 |
)% |
|
|
14,914,056 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CRE LOANS BY PROPERTY TYPE: |
|
|
|
|
% change |
|
|
|
% change |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Multi-tenant retail |
$ |
1,659,083 |
|
|
$ |
1,666,153 |
|
|
— |
% |
|
$ |
1,778,068 |
|
|
(7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Industrial warehouses |
|
1,249,255 |
|
|
|
1,221,852 |
|
|
2 |
% |
|
|
1,301,075 |
|
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Multifamily |
|
1,199,215 |
|
|
|
1,212,941 |
|
|
(1 |
)% |
|
|
1,257,971 |
|
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Gas stations and car washes |
|
1,007,680 |
|
|
|
1,013,708 |
|
|
(1 |
)% |
|
|
1,042,290 |
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Mixed-use facilities |
|
844,993 |
|
|
|
861,613 |
|
|
(2 |
)% |
|
|
834,948 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
Hotels/motels |
|
795,253 |
|
|
|
786,198 |
|
|
1 |
% |
|
|
868,286 |
|
|
(8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Single-tenant retail |
|
655,540 |
|
|
|
667,898 |
|
|
(2 |
)% |
|
|
690,418 |
|
|
(5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Office |
|
403,861 |
|
|
|
401,392 |
|
|
1 |
% |
|
|
463,998 |
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
All other |
|
864,635 |
|
|
|
875,918 |
|
|
(1 |
)% |
|
|
955,106 |
|
|
(9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Total CRE loans |
$ |
8,679,515 |
|
|
$ |
8,707,673 |
|
|
— |
% |
|
$ |
9,192,160 |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSIT COMPOSITION: |
|
|
|
|
% change |
|
|
|
|
% change |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Noninterest bearing demand deposits |
$ |
3,671,192 |
|
|
$ |
3,652,592 |
|
|
1 |
% |
|
$ |
4,229,247 |
|
|
(13 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Money market, interest bearing demand, and savings |
|
4,907,860 |
|
|
|
5,313,064 |
|
|
(8 |
)% |
|
|
4,413,079 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
Time deposits |
|
6,132,419 |
|
|
|
5,787,761 |
|
|
6 |
% |
|
|
6,977,026 |
|
|
(12 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
14,711,471 |
|
|
$ |
14,753,417 |
|
|
— |
% |
|
$ |
15,619,352 |
|
|
(6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||||||||||
CAPITAL & CAPITAL RATIOS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total stockholders’ equity |
$ |
2,111,282 |
|
|
$ |
2,112,270 |
|
|
$ |
2,067,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total capital |
$ |
2,137,513 |
|
|
$ |
2,130,033 |
|
|
$ |
2,102,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Common equity tier 1 ratio |
|
12.70 |
% |
|
|
12.47 |
% |
|
|
11.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Tier 1 capital ratio |
|
13.40 |
% |
|
|
13.17 |
% |
|
|
11.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total capital ratio |
|
14.42 |
% |
|
|
14.19 |
% |
|
|
12.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Leverage ratio |
|
11.61 |
% |
|
|
10.42 |
% |
|
|
9.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total risk weighted assets |
$ |
14,828,070 |
|
|
$ |
15,011,661 |
|
|
$ |
16,640,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Book value per common share |
$ |
17.49 |
|
|
$ |
17.51 |
|
|
$ |
17.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Tangible common equity (“TCE”) per share (1) |
$ |
13.61 |
|
|
$ |
13.63 |
|
|
$ |
13.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
TCE ratio (1) |
|
9.72 |
% |
|
|
9.33 |
% |
|
|
8.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(1) |
TCE per share and TCE ratio are non-GAAP financial measures. Quantitative reconciliations of the most directly comparable GAAP to non-GAAP financial measures are provided in the accompanying financial information on Table Page 10. |
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Three Months Ended |
|
Six Months Ended |
|||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES CHANGES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance at beginning of period |
$ |
158,758 |
|
|
$ |
158,694 |
|
|
$ |
158,809 |
|
|
$ |
172,996 |
|
|
$ |
163,544 |
|
|
$ |
158,694 |
|
|
$ |
162,359 |
|
||
ASU 2022-02 day 1 adoption impact |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(407 |
) |
||
Provision for credit losses on loans |
|
1,700 |
|
|
|
3,600 |
|
|
|
1,700 |
|
|
|
16,800 |
|
|
|
8,900 |
|
|
|
5,300 |
|
|
|
10,600 |
|
||
Recoveries |
|
2,099 |
|
|
|
1,184 |
|
|
|
306 |
|
|
|
2,938 |
|
|
|
1,531 |
|
|
|
3,283 |
|
|
|
1,918 |
|
||
Charge offs |
|
(6,538 |
) |
|
|
(4,720 |
) |
|
|
(2,121 |
) |
|
|
(33,925 |
) |
|
|
(979 |
) |
|
|
(11,258 |
) |
|
|
(1,474 |
) |
||
Balance at end of period |
$ |
156,019 |
|
|
$ |
158,758 |
|
|
$ |
158,694 |
|
|
$ |
158,809 |
|
|
$ |
172,996 |
|
|
$ |
156,019 |
|
|
$ |
172,996 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for unfunded loan commitments |
$ |
2,543 |
|
|
$ |
2,843 |
|
|
$ |
3,843 |
|
|
$ |
3,143 |
|
|
$ |
3,081 |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Provision for credit losses on loans |
$ |
1,700 |
|
|
$ |
3,600 |
|
|
$ |
1,700 |
|
|
$ |
16,800 |
|
|
$ |
8,900 |
|
|
$ |
5,300 |
|
|
$ |
10,600 |
|
||
(Credit) provision for unfunded loan commitments |
|
(300 |
) |
|
|
(1,000 |
) |
|
|
700 |
|
|
|
62 |
|
|
|
110 |
|
|
|
(1,300 |
) |
|
|
1,730 |
|
||
Provision for credit losses |
$ |
1,400 |
|
|
$ |
2,600 |
|
|
$ |
2,400 |
|
|
$ |
16,862 |
|
|
$ |
9,010 |
|
|
$ |
4,000 |
|
|
$ |
12,330 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||
NET LOAN CHARGE OFFS (RECOVERIES): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
CRE loans |
$ |
514 |
|
|
$ |
(497 |
) |
|
$ |
1,560 |
|
|
$ |
(2,227 |
) |
|
$ |
438 |
|
|
$ |
17 |
|
|
$ |
329 |
|
||
C&I loans |
|
3,900 |
|
|
|
4,072 |
|
|
|
138 |
|
|
|
33,145 |
|
|
|
(1,091 |
) |
|
|
7,972 |
|
|
|
(895 |
) |
||
Residential mortgage and other loans |
|
25 |
|
|
|
(39 |
) |
|
|
117 |
|
|
|
69 |
|
|
|
101 |
|
|
|
(14 |
) |
|
|
122 |
|
||
Net loan charge offs (recoveries) |
$ |
4,439 |
|
|
$ |
3,536 |
|
|
$ |
1,815 |
|
|
$ |
30,987 |
|
|
$ |
(552 |
) |
|
$ |
7,975 |
|
|
$ |
(444 |
) |
||
Net charge offs (recoveries)/average loans (annualized) |
|
0.13 |
% |
|
|
0.10 |
% |
|
|
0.05 |
% |
|
|
0.85 |
% |
|
|
(0.01 |
)% |
|
|
0.12 |
% |
|
|
(0.01 |
)% |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||||
NONPERFORMING ASSETS: |
|
|
|
|
|
||||||||||||||||
Loans on nonaccrual status (1) |
$ |
67,003 |
$ |
59,526 |
$ |
45,204 |
$ |
39,081 |
$ |
61,252 |
|||||||||||
Accruing delinquent loans past due 90 days or more |
|
273 |
|
|
47,290 |
|
|
261 |
|
|
21,579 |
|
|
15,182 |
|
||||||
Total nonperforming loans |
|
67,276 |
|
|
106,816 |
|
|
45,465 |
|
|
60,660 |
|
|
76,434 |
|
||||||
Other real estate owned (“OREO”) |
|
— |
|
|
— |
|
|
63 |
|
|
1,043 |
|
|
938 |
|
||||||
Total nonperforming assets |
$ |
67,276 |
|
$ |
106,816 |
|
$ |
45,528 |
|
$ |
61,703 |
|
$ |
77,372 |
|
||||||
Nonperforming assets/total assets |
|
0.39 |
% |
|
0.59 |
% |
|
0.24 |
% |
|
0.31 |
% |
|
0.38 |
% |
||||||
Nonperforming loans/loans receivable |
|
0.50 |
% |
|
0.78 |
% |
|
0.33 |
% |
|
0.42 |
% |
|
0.51 |
% |
||||||
Nonaccrual loans/loans receivable |
|
0.49 |
% |
|
0.43 |
% |
|
0.33 |
% |
|
0.27 |
% |
|
0.41 |
% |
||||||
Allowance for credit losses/loans receivable |
|
1.15 |
% |
|
1.16 |
% |
|
1.15 |
% |
|
1.11 |
% |
|
1.16 |
% |
||||||
Allowance for credit losses/nonperforming loans |
|
231.91 |
% |
|
148.63 |
% |
|
349.05 |
% |
|
261.80 |
% |
|
226.33 |
% |
||||||
(1) |
Excludes delinquent SBA loans that are guaranteed and currently in liquidation totaling |
||||||||||||||||||||
|
|||||||||||||||||||||
NONACCRUAL LOANS BY TYPE: |
|
|
|
|
|
||||||||||||||||
CRE loans |
$ |
27,292 |
|
$ |
37,836 |
|
$ |
33,932 |
|
$ |
26,687 |
|
$ |
29,270 |
|
||||||
C&I loans |
|
33,456 |
|
|
15,070 |
|
|
5,013 |
|
|
4,234 |
|
|
23,042 |
|
||||||
Residential mortgage and other loans |
|
6,255 |
|
|
6,620 |
|
|
6,259 |
|
|
8,160 |
|
|
8,940 |
|
||||||
Total nonaccrual loans |
$ |
67,003 |
|
$ |
59,526 |
|
$ |
45,204 |
|
$ |
39,081 |
|
$ |
61,252 |
|
||||||
Selected Financial Data Unaudited (dollars in thousands) |
|||||||||||||||||||
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE: |
|
|
|
|
|
|
|
|
|
||||||||||
30 - 59 days past due |
$ |
9,073 |
|
$ |
2,273 |
|
$ |
2,833 |
|
$ |
2,906 |
|
$ |
9,295 |
|||||
60 - 89 days past due |
|
552 |
|
|
|
313 |
|
|
|
1,289 |
|
|
|
506 |
|
|
|
178 |
|
Total accruing delinquent loans 30-89 days past due |
$ |
9,625 |
|
|
$ |
2,586 |
|
|
$ |
4,122 |
|
|
$ |
3,412 |
|
|
$ |
9,473 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
ACCRUING DELINQUENT LOANS 30-89 DAYS PAST DUE BY TYPE: |
|
|
|
|
|
|
|
|
|
||||||||||
CRE loans |
$ |
5,586 |
|
|
$ |
1,639 |
|
|
$ |
2,160 |
|
|
$ |
611 |
|
|
$ |
7,339 |
|
C&I loans |
|
2,530 |
|
|
|
551 |
|
|
|
1,643 |
|
|
|
1,168 |
|
|
|
990 |
|
Residential mortgage and other loans |
|
1,509 |
|
|
|
396 |
|
|
|
319 |
|
|
|
1,633 |
|
|
|
1,144 |
|
Total accruing delinquent loans 30-89 days past due |
$ |
9,625 |
|
|
$ |
2,586 |
|
|
$ |
4,122 |
|
|
$ |
3,412 |
|
|
$ |
9,473 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
CRITICIZED LOANS: |
|
|
|
|
|
|
|
|
|
||||||||||
Special mention loans |
$ |
204,167 |
|
|
$ |
215,183 |
|
|
$ |
178,992 |
|
|
$ |
186,600 |
|
|
$ |
210,806 |
|
Substandard loans |
|
243,635 |
|
|
|
206,350 |
|
|
|
143,449 |
|
|
|
174,161 |
|
|
|
134,203 |
|
Total criticized loans |
$ |
447,802 |
|
|
$ |
421,533 |
|
|
$ |
322,441 |
|
|
$ |
360,761 |
|
|
$ |
345,009 |
|
Selected Financial Data Unaudited (dollars in thousands, except share and per share data) |
|||||||||||||||||||
Reconciliation of GAAP financial measures to non-GAAP financial measures |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management reviews select non-GAAP financial measures in evaluating the Company’s and the Bank’s financial performance and in response to market participant interest. Reconciliations of the most directly comparable GAAP to non-GAAP financial measures utilized by management are provided below. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TANGIBLE COMMON EQUITY (“TCE”) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total stockholders’ equity |
$ |
2,111,282 |
|
|
$ |
2,112,270 |
|
|
$ |
2,067,998 |
|
|
|
|
|
|
|
|
|
Less: |
|
(467,583 |
) |
|
|
(467,984 |
) |
|
|
(469,280 |
) |
|
|
|
|
|
|
|
|
TCE |
$ |
1,643,699 |
|
|
$ |
1,644,286 |
|
|
$ |
1,598,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
17,375,091 |
|
|
$ |
18,088,214 |
|
|
$ |
20,366,138 |
|
|
|
|
|
|
|
|
|
Less: |
|
(467,583 |
) |
|
|
(467,984 |
) |
|
|
(469,280 |
) |
|
|
|
|
|
|
|
|
Tangible assets |
$ |
16,907,508 |
|
|
$ |
17,620,230 |
|
|
$ |
19,896,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCE ratio |
|
9.72 |
% |
|
|
9.33 |
% |
|
|
8.04 |
% |
|
|
|
|
|
|
|
|
Common shares outstanding |
|
120,731,342 |
|
|
|
120,610,029 |
|
|
|
120,014,888 |
|
|
|
|
|
|
|
|
|
TCE per share |
$ |
13.61 |
|
|
$ |
13.63 |
|
|
$ |
13.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
RETURN ON AVERAGE TANGIBLE COMMON EQUITY |
|
|
|
|
|
|
|
|
|
||||||||||
Average stockholders’ equity |
$ |
2,097,108 |
|
|
$ |
2,126,333 |
|
|
$ |
2,072,859 |
|
|
$ |
2,111,720 |
|
|
$ |
2,059,583 |
|
Less: Average goodwill and core deposit intangible assets, net |
|
(467,822 |
) |
|
|
(468,229 |
) |
|
|
(469,515 |
) |
|
|
(468,026 |
) |
|
|
(469,752 |
) |
Average TCE |
$ |
1,629,286 |
|
|
$ |
1,658,104 |
|
|
$ |
1,603,344 |
|
|
$ |
1,643,694 |
|
|
$ |
1,589,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
25,270 |
|
|
$ |
25,864 |
|
|
$ |
38,022 |
|
|
$ |
51,134 |
|
|
$ |
77,143 |
|
ROTCE (annualized) |
|
6.20 |
% |
|
|
6.24 |
% |
|
|
9.49 |
% |
|
|
6.22 |
% |
|
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
PROFITABILITY RATIOS EXCLUDING NOTABLE ITEMS |
|
|
|
|
|
|
|
|
|
||||||||||
Net income |
$ |
25,270 |
|
|
$ |
25,864 |
|
|
$ |
38,022 |
|
|
$ |
51,134 |
|
|
$ |
77,143 |
|
Notable items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(309 |
) |
|
|
1,000 |
|
|
|
— |
|
|
|
691 |
|
|
|
— |
|
Restructuring-related costs |
|
576 |
|
|
|
402 |
|
|
|
— |
|
|
|
978 |
|
|
|
— |
|
Merger-related costs |
|
1,589 |
|
|
|
1,044 |
|
|
|
— |
|
|
|
2,633 |
|
|
|
— |
|
Total notable items |
|
1,856 |
|
|
|
2,446 |
|
|
|
— |
|
|
|
4,302 |
|
|
|
— |
|
Less: tax provision |
|
547 |
|
|
|
719 |
|
|
|
— |
|
|
|
1,266 |
|
|
|
— |
|
Total notable items, net of tax provision |
$ |
1,309 |
|
|
$ |
1,727 |
|
|
$ |
— |
|
|
$ |
3,036 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income excluding notable items |
$ |
26,579 |
|
|
$ |
27,591 |
|
|
$ |
38,022 |
|
|
$ |
54,170 |
|
|
$ |
77,143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common shares |
|
120,939,429 |
|
|
|
121,020,292 |
|
|
|
120,129,359 |
|
|
|
120,964,149 |
|
|
|
120,179,443 |
|
EPS excluding notable items |
$ |
0.22 |
|
|
$ |
0.23 |
|
|
$ |
0.32 |
|
|
$ |
0.45 |
|
|
$ |
0.64 |
|
Average Assets |
$ |
17,256,638 |
|
|
$ |
19,140,775 |
|
|
$ |
20,468,810 |
|
|
$ |
18,198,707 |
|
|
$ |
19,781,806 |
|
ROA excluding notable items |
|
0.62 |
% |
|
|
0.58 |
% |
|
|
0.74 |
% |
|
|
0.60 |
% |
|
|
0.78 |
% |
Average Equity |
$ |
2,097,108 |
|
|
$ |
2,126,333 |
|
|
$ |
2,072,859 |
|
|
$ |
2,111,720 |
|
|
$ |
2,059,583 |
|
ROE excluding notable items |
|
5.07 |
% |
|
|
5.19 |
% |
|
|
7.34 |
% |
|
|
5.13 |
% |
|
|
7.49 |
% |
Average TCE |
$ |
1,629,286 |
|
|
$ |
1,658,104 |
|
|
$ |
1,603,344 |
|
|
$ |
1,643,694 |
|
|
$ |
1,589,831 |
|
ROTCE excluding notable items |
|
6.53 |
% |
|
|
6.66 |
% |
|
|
9.49 |
% |
|
|
6.59 |
% |
|
|
9.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
EFFICIENCY RATIO EXCLUDING NOTABLE ITEMS |
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest expense |
$ |
80,987 |
|
|
$ |
84,839 |
|
|
$ |
87,223 |
|
|
$ |
165,826 |
|
|
$ |
175,957 |
|
Less: notable items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
309 |
|
|
|
(1,000 |
) |
|
|
— |
|
|
|
(691 |
) |
|
|
— |
|
Restructuring-related costs |
|
(576 |
) |
|
|
(402 |
) |
|
|
— |
|
|
|
(978 |
) |
|
|
— |
|
Merger-related costs |
|
(1,589 |
) |
|
|
(1,044 |
) |
|
|
— |
|
|
|
(2,633 |
) |
|
|
— |
|
Noninterest expense excluding notable items |
$ |
79,131 |
|
|
$ |
82,393 |
|
|
$ |
87,223 |
|
|
$ |
161,524 |
|
|
$ |
175,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
116,931 |
|
|
$ |
123,333 |
|
|
$ |
147,703 |
|
|
$ |
240,264 |
|
|
$ |
292,559 |
|
Efficiency ratio excluding notable items |
|
67.67 |
% |
|
|
66.81 |
% |
|
|
59.05 |
% |
|
|
67.23 |
% |
|
|
60.14 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729984484/en/
EVP & Chief Financial Officer
213-235-3235
julianna.balicka@bankofhope.com
SVP, Director of Investor Relations & Corporate Communications
213-251-2219
angie.yang@bankofhope.com
Source: