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PacWest Bancorp Announces Results for the Second Quarter 2022

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PacWest Bancorp
PacWest Bancorp

LOS ANGELES, July 20, 2022 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq: PACW) -

SECOND QUARTER 2022 RESULTS

$122.4M

 

$1.02

 

$174.6M

24.42%

Net Earnings

 

Diluted Earnings
per Common Share

 

PPNR

ROATCE


SECOND QUARTER 2022 HIGHLIGHTS

  • Net Earnings of $122.4 Million or $1.02 Per Diluted Share

  • Net Interest Income (TE) of $327.8 Million in 2Q22 vs. $312.7 Million in 1Q22; Up 4.8%

  • Provision for Credit Losses of $11.5 Million in 2Q22, of Which $1.5 Million Related to Held-to-Maturity Securities (HTM), vs. No Provision for Credit Losses in 1Q22

  • Noninterest Income of $34.3 Million in 2Q22 vs. $20.8 Million in 1Q22

  • Noninterest Expense of $183.6 Million in 2Q22 vs. $167.4 Million in 1Q22; Driven by Loan Growth

  • Loan Growth of $2.1 Billion or 8.8% from Prior Quarter


  • ACL Ratio of 1.07% and ALLL Ratio of 0.71% at 2Q22 vs. 1.12% and 0.81% at 1Q22, Respectively

  • Core Deposits Down $2.5 Billion or 7.8%, of Which $1.9 Billion related to Venture Banking

  • Tier 1 and Total Capital Ratios Increased Due to Preferred Stock Offering Offset by Growth in Risk-Weighted Assets – Tier 1 Ratio of 10.15% and Total Capital Ratio of 13.12% at 2Q22

  • Available-for-Sale Securities (AFS) Decreased from $10.0 Billion at 1Q22 to $6.8 Billion at 2Q22; $2.3 Billion was Reclassified to HTM on June 1; AOCI Net Unrealized Loss on the AFS Portfolio Increased from $376.5 Million at 1Q22 to $428.2 Million at 2Q22; Total AOCI Net Unrealized Loss of $644.8 Million at 2Q22

CEO COMMENTARY

Matt Wagner, CEO, commented, “Our organic loan growth during the second quarter was exceptionally strong as we continued to see high demand from our clients. Loans grew by $2.1 billion in the second quarter to an all-time high of $26.5 billion. Given the high level of economic uncertainty and interest rate volatility, we are taking a cautious approach and expect slower loan growth in the second half of the year. On the deposits side, we continued to see net outflows in the venture banking business as private fundraising and capital market activities for late stage companies continues to be muted. With venture banking deposits down $1.9 billion during the quarter, we used wholesale deposits to fund the loan growth, which increased deposit costs.”

“Credit quality remains strong as evidenced by net recoveries of two basis points and a slight net recovery on a year-to-date basis, and most credit metrics remain at historically low levels. We recorded a provision for credit losses on loans of $10.0 million during the quarter primarily as a result of the $2.0 billion increase in unfunded commitments. Our ACL ratio of 1.07% remains above the CECL adoption level of 0.97%.”

“Our Tier 1 and Total capital ratios increased during the second quarter of 2022 due to the preferred stock issuance in early June. The increase was partially offset by an increase in risk-weighted assets of $2.7 billion primarily as a result of continued loan growth and increases in unfunded commitments. Capital and balance sheet optimization remain a focus area as we look to grow our capital levels to those more similar to the first half of 2021.”

FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

 

 

 

 

 

 

`

At or For the

 

 

 

At or For the

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

June 30,

 

March 31,

 

Increase

 

June 30,

 

Increase

Financial Highlights (1)

2022

 

2022

 

(Decrease)

 

2022

 

2021

 

(Decrease)

 

(Dollars in thousands, except per share data)

Net earnings

$

122,360

 

 

$

120,128

 

 

$

2,232

 

 

$

242,488

 

 

$

330,918

 

 

$

(88,430

)

Diluted earnings per

 

 

 

 

 

 

 

 

 

 

 

common share

$

1.02

 

 

$

1.01

 

 

$

0.01

 

 

$

2.03

 

 

$

2.78

 

 

-$

0.75

 

Pre-provision, pre-tax net

 

 

 

 

 

 

 

 

 

 

 

revenue ("PPNR") (2)

$

174,626

 

 

$

162,109

 

 

$

12,517

 

 

$

336,735

 

 

$

310,891

 

 

$

25,844

 

Return on average assets

 

1.23

%

 

 

1.22

%

 

 

0.01

 

 

 

1.22

%

 

 

2.03

%

 

 

(0.81

)

PPNR return on average

 

 

 

 

 

 

 

 

 

 

 

assets (2)

 

1.75

%

 

 

1.65

%

 

 

0.10

 

 

 

1.70

%

 

 

1.91

%

 

 

(0.21

)

Return on average

 

 

 

 

 

 

 

 

 

 

 

tangible common equity (2)

 

24.42

%

 

 

20.93

%

 

 

3.49

 

 

 

22.55

%

 

 

27.51

%

 

 

(4.96

)

 

 

 

 

 

 

 

 

 

 

 

 

Yield on average loans and

 

 

 

 

 

 

 

 

 

 

 

leases (tax equivalent)

 

4.65

%

 

 

4.66

%

 

 

(0.01

)

 

 

4.66

%

 

 

5.19

%

 

 

(0.53

)

Cost of average total

 

 

 

 

 

 

 

 

 

 

 

deposits

 

0.18

%

 

 

0.07

%

 

 

0.11

 

 

 

0.13

%

 

 

0.11

%

 

 

0.02

 

Net interest margin ("NIM")

 

 

 

 

 

 

 

 

 

 

 

(tax equivalent)

 

3.56

%

 

 

3.43

%

 

 

0.13

 

 

 

3.50

%

 

 

3.53

%

 

 

(0.03

)

Efficiency ratio

 

49.5

%

 

 

50.1

%

 

 

(0.6

)

 

 

49.8

%

 

 

47.2

%

 

 

2.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

40,950,723

 

 

$

39,249,639

 

 

$

1,701,084

 

 

$

40,950,723

 

 

$

34,867,987

 

 

$

6,082,736

 

Loans and leases held

 

 

 

 

 

 

 

 

 

 

 

for investment,

 

 

 

 

 

 

 

 

 

 

 

net of deferred fees

$

26,501,137

 

 

$

24,352,072

 

 

$

2,149,065

 

 

$

26,501,137

 

 

$

19,506,257

 

 

$

6,994,880

 

Noninterest-bearing

 

 

 

 

 

 

 

 

 

 

 

demand deposits

$

13,338,029

 

 

$

14,057,051

 

 

$

(719,022

)

 

$

13,338,029

 

 

$

11,252,286

 

 

$

2,085,743

 

Core deposits

$

29,218,646

 

 

$

31,676,404

 

 

$

(2,457,758

)

 

$

29,218,646

 

 

$

27,038,161

 

 

$

2,180,485

 

Total deposits

$

33,968,152

 

 

$

33,224,895

 

 

$

743,257

 

 

$

33,968,152

 

 

$

29,647,034

 

 

$

4,321,118

 

 

 

 

 

 

 

 

 

 

 

 

 

As percentage of total

 

 

 

 

 

 

 

 

 

 

 

deposits:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

 

 

 

 

 

 

 

 

 

 

demand deposits

 

39

%

 

 

42

%

 

 

(3

)

 

 

39

%

 

 

38

%

 

 

1

 

Core deposits

 

86

%

 

 

95

%

 

 

(9

)

 

 

86

%

 

 

91

%

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

Equity to assets ratio

 

9.72

%

 

 

9.30

%

 

 

0.42

 

 

 

9.72

%

 

 

11.03

%

 

 

(1.31

)

Common equity tier 1

 

 

 

 

 

 

 

 

 

 

 

capital ratio

 

8.24

%

 

 

8.64

%

 

 

(0.40

)

 

 

8.24

%

 

 

10.41

%

 

 

(2.17

)

Tier 1 capital ratio

 

10.15

%

 

 

9.07

%

 

 

1.08

 

 

 

10.15

%

 

 

10.41

%

 

 

(0.26

)

Total capital ratio

 

13.12

%

 

 

12.27

%

 

 

0.85

 

 

 

13.12

%

 

 

14.99

%

 

 

(1.87

)

Tangible common equity

 

 

 

 

 

 

 

 

 

 

 

ratio (2)

 

5.15

%

 

 

5.83

%

 

 

(0.68

)

 

 

5.15

%

 

 

7.80

%

 

 

(2.65

)

Book value per common

 

 

 

 

 

 

 

 

 

 

 

share

$

28.93

 

 

$

30.52

 

 

$

(1.59

)

 

$

28.93

 

 

$

32.17

 

 

$

(3.24

)

Tangible book value per

 

 

 

 

 

 

 

 

 

 

 

common share (2)

$

16.93

 

 

$

18.42

 

 

$

(1.49

)

 

$

16.93

 

 

$

21.95

 

 

$

(5.02

)

 

 

 

 

 

 

 

 

 

 

 

 

(1) The operations of the HOA Business are included from its October 8, 2021 acquisition date and the operations of Civic are included from its February 1, 2021 acquisition date.

 

 

(2) Non-GAAP measure.

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT HIGHLIGHTS

NET INTEREST INCOME

Net interest income increased by $15.2 million to $323.9 million for the second quarter of 2022 compared to $308.7 million for the first quarter of 2022 due mainly to higher income on loans and leases resulting primarily from higher average balances and higher income on deposits in financial institutions, offset partially by higher interest expense on deposits and borrowings. Income on loans and leases increased by $25.5 million in the second quarter of 2022 due to a $2.0 billion increase in the balance of average loans and leases and one more day compared to the first quarter of 2022. Income on deposits in financial institutions increased by $2.6 million in the second quarter of 2022 due to a 65 basis point increase in the yield on average deposits in financial institutions, offset partially by a $909.1 million decrease in the average balance. The tax equivalent yield on average loans and leases was 4.65% for the second quarter of 2022 compared to 4.66% for the first quarter of 2022. The slight decrease in the tax equivalent yield on average loans and leases was due primarily to interest recapture on nonaccrual loans being lower by $2.3 million and amortized loan fees being lower by $1.3 million. Interest expense on deposits increased by $9.2 million in the second quarter of 2022 due mainly to a higher level of wholesale deposits which contributed to an 11 basis points increase in the cost of deposits. Interest expense on borrowings increased by $2.3 million due to a $1.1 billion increase in average balance and 50 basis points increase in cost of average borrowings.

The tax equivalent NIM was 3.56% for the second quarter of 2022 compared to 3.43% for the first quarter of 2022. The increase in the NIM was due mainly to the change in the interest-earning assets mix driven by the increase in the balance of average loans and leases as a percentage of average interest-earning assets from 64% to 69%, the decrease in the balance of average investment securities as a percentage of average interest-earning assets from 28% to 26%, and the decrease in the balance of average deposits in financial institutions as a percentage of average interest-earning assets from 8% to 5%. The balance of average loans and leases increased by $2.0 billion to $25.4 billion, the balance of average investment securities decreased by $909.1 million to $9.5 billion, and the balance of average deposits in financial institutions decreased by $1.1 billion to $2.0 billion. The increase in the balance of average loans and leases was the result of the Company’s strong organic loan growth.

The cost of average total deposits was 0.18% in the second quarter of 2022 compared to 0.07% in the first quarter of 2022 due mainly to higher average balances and rates on higher-cost wholesale money market and brokered time deposits, as well as higher market rates on our deposit products. Given strong loan growth and declines in core deposits, wholesale deposits increased by $2.9 billion during the second quarter from $0.5 billion to $3.4 billion.

PROVISION FOR CREDIT LOSSES

The following table presents details of the provision for credit losses for the periods indicated:

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30,

 

March 31,

 

Increase

Provision for Credit Losses

2022

 

2022

 

(Decrease)

 

(In thousands)

Reduction in allowance for

 

 

 

 

 

loan and lease losses

$

(10,000

)

 

$

(2,000

)

 

$

(8,000

)

Addition to reserve for

 

 

 

 

 

unfunded loan commitments

 

20,000

 

 

 

2,000

 

 

 

18,000

 

Total loan-related provision

 

10,000

 

 

 

-

 

 

 

10,000

 

Addition to allowance for

 

 

 

 

 

held-to-maturity securities

 

1,500

 

 

 

-

 

 

 

1,500

 

Total provision for credit losses

$

11,500

 

 

$

-

 

 

$

11,500

 

 

 

 

 

 

 

The provision for credit losses was $11.5 million for the second quarter of 2022 compared to no provision for credit losses for the first quarter of 2022. The $10.0 million increase in the loan-related provision was due mainly to the growth in unfunded commitments of $2.0 billion during the second quarter of 2022. The $1.5 million provision for credit losses on held-to-maturity securities is related to our $2.3 billion transfer from available-for-sale securities in the second quarter of 2022 and the estimated current expected credit loss on those held-to-maturity securities.

NONINTEREST INCOME

The following table presents details of noninterest income for the periods indicated:

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30,

 

March 31,

 

Increase

Noninterest Income

2022

 

2022

 

(Decrease)

 

(In thousands)

Service charges on deposit accounts

$

3,634

 

 

$

3,571

 

 

$

63

 

Other commissions and fees

 

10,813

 

 

 

11,580

 

 

 

(767

)

Leased equipment income

 

12,335

 

 

 

13,094

 

 

 

(759

)

Gain on sale of loans and leases

 

12

 

 

 

60

 

 

 

(48

)

(Loss) gain on sale of securities

 

(1,209

)

 

 

104

 

 

 

(1,313

)

Dividends and gains (losses) on equity investments

 

4,097

 

 

 

(11,375

)

 

 

15,472

 

Warrant income

 

1,615

 

 

 

629

 

 

 

986

 

Other income

 

3,049

 

 

 

3,155

 

 

 

(106

)

Total noninterest income

$

34,346

 

 

$

20,818

 

 

$

13,528

 

 

 

 

 

 

 

Noninterest income increased by $13.5 million to $34.3 million for the second quarter of 2022 compared to $20.8 million for the first quarter of 2022 due primarily to an increase of $15.5 million in dividends and gains on equity investments, offset partially by an increase in loss on sale of securities. Dividends and gains on equity investments increased to $4.1 million for the second quarter of 2022 compared to a negative $11.4 million in the first quarter of 2022 due primarily to higher fair value gains on equity investments still held and lower fair value marks and losses on sales of equity investments. The increase in loss on sale of securities resulted from the sale of $393.4 million of securities for a net loss of $1.2 million for the second quarter of 2022 compared to sales of $206.1 million of securities for a net gain of $0.1 million for the first quarter of 2022. Warrant income was higher due primarily to merger and acquisition activities of three underlying companies.

NONINTEREST EXPENSE

The following table presents details of noninterest expense for the periods indicated:

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30,

 

March 31,

 

Increase

Noninterest Expense

 

2022

 

 

 

2022

 

 

(Decrease)

 

(In thousands)

Compensation

$

102,542

 

 

$

92,240

 

 

$

10,302

 

Occupancy

 

15,268

 

 

 

15,200

 

 

 

68

 

Data processing

 

9,258

 

 

 

9,629

 

 

 

(371

)

Other professional services

 

6,726

 

 

 

5,954

 

 

 

772

 

Insurance and assessments

 

5,632

 

 

 

5,490

 

 

 

142

 

Intangible asset amortization

 

3,649

 

 

 

3,649

 

 

 

-

 

Leased equipment depreciation

 

8,934

 

 

 

9,189

 

 

 

(255

)

Foreclosed assets (income) expense, net

 

(28

)

 

 

(3,353

)

 

 

3,325

 

Customer related expense

 

11,748

 

 

 

12,655

 

 

 

(907

)

Loan expense

 

7,037

 

 

 

5,157

 

 

 

1,880

 

Other

 

12,879

 

 

 

11,616

 

 

 

1,263

 

Total noninterest expense

$

183,645

 

 

$

167,426

 

 

$

16,219

 

 

 

 

 

 

 

Noninterest expense increased by $16.2 million to $183.6 million for the second quarter of 2022 compared to $167.4 million for the first quarter of 2022 due primarily to an increase of $10.3 million in compensation expense, a decrease of $3.3 million in foreclosed assets income, an increase of $1.9 million in loan expense, and an increase of $1.3 million in other expense. The increase in compensation expense was due mainly to higher commissions, salaries, and bonus expense attributable mostly to strong loan growth and a full quarter of annual merit increases along with higher headcount which increased by 95 FTEs. The decrease in foreclosed assets income was due to a $3.2 million gain on the sale of our largest foreclosed property in the first quarter of 2022. The increase in loan expense was due mainly to higher loan-related legal expenses related to higher loan production. The increase in other expense was due mostly to higher employee costs for business travel.

INCOME TAXES

The effective income tax rate was 25.0% for the second quarter of 2022 compared to 25.9% for the first quarter of 2022. The decrease was due primarily to higher tax credits in the second quarter of 2022. The effective tax rate for the full year 2022 is currently estimated to be in the range of 25% to 27%.

BALANCE SHEET HIGHLIGHTS

DEPOSITS AND CLIENT INVESTMENT FUNDS

The following table presents the composition of our deposit portfolio as of the dates indicated:

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

March 31, 2022

 

June 30, 2021

 

 

% of

 

 

% of

 

 

% of

Deposit Composition

Balance

Total

 

Balance

Total

 

Balance

Total

 

(Dollars in thousands)

Noninterest-bearing demand

$

13,338,029

 

39

%

 

$

14,057,051

 

42

%

 

$

11,252,286

 

38

%

Interest checking

 

6,197,234

 

18

%

 

 

6,673,696

 

20

%

 

 

7,394,472

 

25

%

Money market

 

9,029,433

 

27

%

 

 

10,301,996

 

31

%

 

 

7,777,199

 

26

%

Savings

 

653,950

 

2

%

 

 

643,661

 

2

%

 

 

614,204

 

2

%

Total core deposits

 

29,218,646

 

86

%

 

 

31,676,404

 

95

%

 

 

27,038,161

 

91

%

Non-core non-maturity deposits

 

2,185,248

 

6

%

 

 

322,732

 

1

%

 

 

1,122,971

 

4

%

Total non-maturity deposits

 

31,403,894

 

92

%

 

 

31,999,136

 

96

%

 

 

28,161,132

 

95

%

Time deposits $250,000 and under

 

1,898,312

 

6

%

 

 

878,383

 

3

%

 

 

913,371

 

3

%

Time deposits over $250,000

 

665,946

 

2

%

 

 

347,376

 

1

%

 

 

572,531

 

2

%

Total time deposits

 

2,564,258

 

8

%

 

 

1,225,759

 

4

%

 

 

1,485,902

 

5

%

Total deposits

$

33,968,152

 

100

%

 

$

33,224,895

 

100

%

 

$

29,647,034

 

100

%

 

 

 

 

 

 

 

 

 

At June 30, 2022, core deposits totaled $29.2 billion or 86% of total deposits, including $13.3 billion of noninterest-bearing demand deposits or 39% of total deposits. Core deposits decreased by $2.5 billion or 7.8% in the second quarter of 2022 driven primarily by a $1.9 billion decrease in balances from our venture banking clients. Total deposits increased by $743.3 million or 2.2% in the second quarter of 2022 due to a $1.9 billion increase in non-core non-maturity deposits and a $1.3 billion increase in time deposits, offset partially by the decrease in core deposits. Total venture banking deposits decreased from $14.0 billion as of March 31, 2022 to $12.1 billion as of June 30, 2022.

In addition to deposit products, we also offer alternative, non-depository cash investment options for select clients. These alternative options include investments managed by Pacific Western Asset Management Inc. (“PWAM”), our registered investment advisor subsidiary, and third-party sweep products. Total off-balance sheet client investment funds increased from $1.7 billion as of March 31, 2022 to $2.1 billion as of June 30, 2022, of which $1.5 billion was managed by PWAM.

LOANS AND LEASES

The following table presents roll forwards of loans and leases held for investment, net of deferred fees, for the periods indicated:

 

 

 

 

 

Three Months Ended

 

Six Months Ended

Roll Forward of Loans and Leases Held

June 30,

 

March 31,

 

June 30,

for Investment, Net of Deferred Fees

2022

 

2022

 

2022

 

(Dollars in thousands)

Balance, beginning of period

$

24,352,072

 

 

$

22,941,548

 

 

$

22,941,548

 

Additions:

 

 

 

 

 

Production

 

2,815,181

 

 

 

2,574,860

 

 

 

5,390,041

 

Disbursements

 

1,871,627

 

 

 

1,589,152

 

 

 

3,460,779

 

Total production and disbursements

 

4,686,808

 

 

 

4,164,012

 

 

 

8,850,820

 

Reductions:

 

 

 

 

 

Payoffs

 

(1,347,447

)

 

 

(1,448,680

)

 

 

(2,796,127

)

Paydowns

 

(1,183,178

)

 

 

(1,264,571

)

 

 

(2,447,749

)

Total payoffs and paydowns

 

(2,530,625

)

 

 

(2,713,251

)

 

 

(5,243,876

)

Sales

 

(4,319

)

 

 

(36,698

)

 

 

(41,017

)

Transfers to foreclosed assets

 

-

 

 

 

(305

)

 

 

(305

)

Charge-offs

 

(2,799

)

 

 

(3,234

)

 

 

(6,033

)

Total reductions

 

(2,537,743

)

 

 

(2,753,488

)

 

 

(5,291,231

)

Net increase (decrease)

 

2,149,065

 

 

 

1,410,524

 

 

 

3,559,589

 

Balance, end of period

$

26,501,137

 

 

$

24,352,072

 

 

$

26,501,137

 

 

 

 

 

 

 

Weighted average rate on production (1)

 

4.61

%

 

 

4.31

%

 

 

4.46

%

 

 

 

 

 

 

(1) The weighted average rate on production presents contractual rates on a tax equivalent basis and excludes amortized fees. Amortized fees added approximately 23 basis points to loan yields in 2022.

Loans and leases held for investment, net of deferred fees, increased by $2.1 billion or 8.8% in the second quarter of 2022 to $26.5 billion at June 30, 2022. The overall increase in the loans and leases balance for the second quarter of 2022 was due primarily to increases in the residential real estate mortgage, asset-based, and residential real estate construction portfolios.

Civic loan production was $847 million for the second quarter of 2022 compared to $559 million for the first quarter of 2022. The Civic loan portfolio as of June 30, 2022 totaled $2.4 billion.

The weighted average rate on the $2.8 billion of production for the second quarter of 2022 increased to 4.61% from 4.31% in the first quarter of 2022 due primarily to the loan mix (lower levels of single-family loan pool purchases and higher level of Civic fundings). In the second quarter of 2022, we purchased $69 million of single-family loan pools compared to $587 million in the first quarter of 2022. The single-family loan pool purchase portfolio as of June 30, 2022 totaled $2.9 billion. Purchases of single-family loan pools ceased in April 2022.

PPP loans declined by $37.4 million in the second quarter of 2022, as the program continues to wind down. Net fees for PPP loans were $1.0 million in the second quarter of 2022, down from $2.5 million in the first quarter of 2022. Remaining PPP loans totaled $33.0 million as of June 30, 2022, with $0.6 million of net fees to amortize over the remaining life of the loans.

The following table presents the composition of loans and leases held for investment by loan portfolio segment and class, net of deferred fees, as of the dates indicated:

 

 

 

 

 

 

 

 

 

 

June 30, 2022

 

March 31, 2022

 

June 30, 2021

 

 

% of

 

 

% of

 

 

% of

Loan and Lease Portfolio

Balance

Total

 

Balance

Total

 

Balance

Total

 

(Dollars in thousands)

Real estate mortgage:

 

 

 

 

 

 

 

 

Commercial

$

3,670,515

14

%

 

$

3,669,741

15

%

 

$

3,792,198

19

%

Residential

 

9,879,131

37

%

 

 

8,369,550

35

%

 

 

4,620,822

24

%

Total real estate mortgage

 

13,549,646

51

%

 

 

12,039,291

50

%

 

 

8,413,020

43

%

Real estate construction and land:

 

 

 

 

 

 

 

 

Commercial

 

837,423

3

%

 

 

802,022

3

%

 

 

930,785

5

%

Residential

 

3,153,616

12

%

 

 

2,891,467

12

%

 

 

2,574,799

13

%

Total real estate construction

 

 

 

 

 

 

 

 

and land

 

3,991,039

15

%

 

 

3,693,489

15

%

 

 

3,505,584

18

%

Total real estate

 

17,540,685

66

%

 

 

15,732,780

65

%

 

 

11,918,604

61

%

Commercial:

 

 

 

 

 

 

 

 

Asset-based

 

5,068,112

19

%

 

 

4,739,220

19

%

 

 

3,550,903

18

%

Venture capital

 

2,179,190

8

%

 

 

2,077,339

9

%

 

 

1,749,432

9

%

Other commercial

 

1,229,504

5

%

 

 

1,298,136

5

%

 

 

1,921,909

10

%

Total commercial

 

8,476,806

32

%

 

 

8,114,695

33

%

 

 

7,222,244

37

%

Consumer

 

483,646

2

%

 

 

504,597

2

%

 

 

365,409

2

%

Total loans and leases held for

 

 

 

 

 

 

 

 

investment, net of deferred fees

$

26,501,137

100

%

 

$

24,352,072

100

%

 

$

19,506,257

100

%

 

 

 

 

 

 

 

 

 

Total unfunded loan commitments

$

11,866,437

 

 

$

9,899,345

 

 

$

7,891,875

 

 

 

 

 

 

 

 

 

 

ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES

The following tables present roll forwards of the allowance for credit losses on loans and leases for the periods indicated:

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

Allowance for

 

Reserve for

 

Total

Allowance for Credit

Loan and

 

Unfunded Loan

 

Allowance for

Losses Rollforward

Lease Losses

 

Commitments

 

Credit Losses

 

(In thousands)

Beginning balance

$

197,398

 

 

$

75,071

 

 

$

272,469

 

Charge-offs

 

(2,799

)

 

 

-

 

 

 

(2,799

)

Recoveries

 

4,106

 

 

 

-

 

 

 

4,106

 

Net recoveries

 

1,307

 

 

 

-

 

 

 

1,307

 

Provision

 

(10,000

)

 

 

20,000

 

 

 

10,000

 

Ending balance

$

188,705

 

 

$

95,071

 

 

$

283,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2022

 

Allowance for

 

Reserve for

 

Total

Allowance for Credit

Loan and

 

Unfunded Loan

 

Allowance for

Losses Rollforward

Lease Losses

 

Commitments

 

Credit Losses

 

(In thousands)

Beginning balance

$

200,564

 

 

$

73,071

 

 

$

273,635

 

Charge-offs

 

(3,234

)

 

 

-

 

 

 

(3,234

)

Recoveries

 

2,068

 

 

 

-

 

 

 

2,068

 

Net charge-offs

 

(1,166

)

 

 

-

 

 

 

(1,166

)