10-Q
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
 
 
Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2015.
or
 
o
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from                to             
EverBank Financial Corp
(Exact name of registrant as specified in its charter)
Delaware
 
001-35533
 
52-2024090
(State of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
 
 
 
501 Riverside Ave., Jacksonville, FL
 
 
 
32202
(Address of principal executive offices)
 
 
 
(Zip Code)
904-281-6000
(Registrant’s telephone number, including area code)
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 Q    No o
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 (Section 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 Q  No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer Q
 
Accelerated filer o
 
Non-accelerated filer o (Do not check if a smaller reporting company)
 
Smaller reporting company o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o  No Q
As of October 22, 2015, there were 124,955,383 shares of common stock outstanding.
 

Table of Contents

EverBank Financial Corp
Form 10-Q
Index
Part I - Financial Information
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
Part II - Other Information
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.

Table of Contents

Part I. Financial Information
Item 1. Financial Statements (unaudited)
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(Dollars in thousands, except per share data)



 
September 30,
2015
 
December 31,
2014
Assets
 
 
 
Cash and due from banks
$
64,822

 
$
49,436

Interest-bearing deposits in banks
534,354

 
317,228

Total cash and cash equivalents
599,176

 
366,664

Investment securities:
 
 
 
Available for sale, at fair value
574,104

 
776,311

Held to maturity (fair value of $115,885 and $118,230 as of September 30, 2015 and December 31, 2014, respectively)
112,219

 
115,084

Other investments
240,832

 
196,609

Total investment securities
927,155

 
1,088,004

Loans held for sale (includes $1,101,341 and $728,378 carried at fair value as of September 30, 2015 and December 31, 2014, respectively)
1,483,754

 
973,507

Loans and leases held for investment:
 
 
 
Loans and leases held for investment, net of unearned income
20,877,381

 
17,760,253

Allowance for loan and lease losses
(71,897
)
 
(60,846
)
Total loans and leases held for investment, net
20,805,484

 
17,699,407

Mortgage servicing rights (MSR), net
357,550

 
435,619

Premises and equipment, net
52,425

 
56,457

Other assets
989,199

 
998,130

Total Assets
$
25,214,743

 
$
21,617,788

Liabilities
 
 
 
Deposits:
 
 
 
Noninterest-bearing
$
1,389,644

 
$
984,703

Interest-bearing
16,176,445

 
14,523,994

Total deposits
17,566,089

 
15,508,697

Other borrowings
5,297,000

 
4,004,000

Trust preferred securities and subordinated notes payable
276,103

 
103,750

Accounts payable and accrued liabilities
252,682

 
253,747

Total Liabilities
23,391,874

 
19,870,194

Commitments and Contingencies (Note 14)


 


Shareholders’ Equity
 
 
 
Series A 6.75% Non-Cumulative Perpetual Preferred Stock, $0.01 par value (liquidation preference of $25,000 per share; 10,000,000 shares authorized; 6,000 issued and outstanding at September 30, 2015 and December 31, 2014)
150,000

 
150,000

Common Stock, $0.01 par value (500,000,000 shares authorized; 124,954,523 and 123,679,049 issued and outstanding at September 30, 2015 and December 31, 2014, respectively)
1,250

 
1,237

Additional paid-in capital
873,175

 
851,158

Retained earnings
871,160

 
810,796

Accumulated other comprehensive income (loss) (AOCI)
(72,716
)
 
(65,597
)
Total Shareholders’ Equity
1,822,869

 
1,747,594

Total Liabilities and Shareholders’ Equity
$
25,214,743

 
$
21,617,788


See notes to unaudited condensed consolidated financial statements.

3
Table of Contents
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Income (unaudited)
(Dollars in thousands, except per share data)

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Interest Income
 
 
 
 
 
 
 
Interest and fees on loans and leases
$
215,881

 
$
180,913

 
$
621,077

 
$
509,708

Interest and dividends on investment securities
7,520

 
9,627

 
22,989

 
29,276

Other interest income
226

 
116

 
545

 
388

Total Interest Income
223,627

 
190,656

 
644,611

 
539,372

Interest Expense
 
 
 
 
 
 
 
Deposits
31,921

 
26,755

 
91,904

 
72,804

Other borrowings
22,866

 
17,565

 
59,404

 
49,197

Total Interest Expense
54,787

 
44,320

 
151,308

 
122,001

Net Interest Income
168,840

 
146,336

 
493,303

 
417,371

Provision for Loan and Lease Losses
11,131

 
6,735

 
28,063

 
15,929

Net Interest Income after Provision for Loan and Lease Losses
157,709

 
139,601

 
465,240

 
401,442

Noninterest Income
 
 
 
 
 
 
 
Loan servicing fee income
27,157

 
35,900

 
90,858

 
122,934

Amortization of mortgage servicing rights
(16,760
)
 
(19,572
)
 
(56,065
)
 
(59,170
)
Recovery (impairment) of mortgage servicing rights
(4,450
)
 
3,071

 
(32,075
)
 
8,012

Net loan servicing income (loss)
5,947

 
19,399

 
2,718

 
71,776

Gain on sale of loans
18,037

 
47,920

 
101,248

 
129,474

Loan production revenue
5,861

 
5,783

 
17,443

 
15,709

Deposit fee income
3,844

 
3,828

 
10,946

 
11,696

Other lease income
3,714

 
3,910

 
9,876

 
12,621

Other
3,792

 
7,374

 
15,299

 
20,790

Total Noninterest Income
41,195

 
88,214

 
157,530

 
262,066

Noninterest Expense
 
 
 
 
 
 
 
Salaries, commissions and other employee benefits expense
89,369

 
90,781

 
277,124

 
283,734

Equipment expense
15,576

 
16,623

 
46,879

 
52,616

Occupancy expense
6,679

 
7,209

 
19,691

 
23,166

General and administrative expense
39,882

 
43,140

 
141,822

 
126,769

Total Noninterest Expense
151,506

 
157,753

 
485,516

 
486,285

Income before Provision for Income Taxes
47,398

 
70,062

 
137,254

 
177,223

Provision for Income Taxes
17,815

 
26,543

 
51,874

 
67,162

Net Income
$
29,583

 
$
43,519

 
$
85,380

 
$
110,061

Less: Net Income Allocated to Preferred Stock
(2,532
)
 
(2,532
)
 
(7,594
)
 
(7,594
)
Net Income Allocated to Common Shareholders
$
27,051

 
$
40,987

 
$
77,786

 
$
102,467

Basic Earnings Per Common Share
$
0.22

 
$
0.33

 
$
0.63

 
$
0.83

Diluted Earnings Per Common Share
$
0.21

 
$
0.33

 
$
0.61

 
$
0.82

Dividends Declared Per Common Share
$
0.06

 
$
0.04

 
$
0.14

 
$
0.10

See notes to unaudited condensed consolidated financial statements.

4
Table of Contents
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income (unaudited)
(Dollars in thousands)

 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Net Income
$
29,583

 
$
43,519

 
$
85,380

 
$
110,061

Unrealized Gains (Losses) on Debt Securities
 
 
 
 
 
 
 
Reclassification of unrealized gains to noninterest income
(568
)
 
—

 
(637
)
 
(1,250
)
Unrealized gains (losses) due to changes in fair value
(995
)
 
(2,134
)
 
(3,090
)
 
(4,731
)
Other-than-temporary impairment (OTTI) (noncredit portion), net of accretion
—

 
—

 
—

 
685

Tax effect
594

 
810

 
1,417

 
2,013

Change in unrealized gains (losses) on debt securities
(969
)
 
(1,324
)
 
(2,310
)
 
(3,283
)
Interest Rate Swaps
 
 
 
 
 
 
 
Net unrealized gains (losses) due to changes in fair value
(41,292
)
 
1,932

 
(20,449
)
 
(5,543
)
Reclassification of net unrealized losses to interest expense
4,050

 
4,763

 
12,693

 
13,269

Tax effect
14,154

 
(2,544
)
 
2,947

 
(2,936
)
Change in interest rate swaps
(23,088
)
 
4,151

 
(4,809
)
 
4,790

Other Comprehensive Income (Loss)
(24,057
)
 
2,827

 
(7,119
)
 
1,507

Comprehensive Income (Loss)
$
5,526

 
$
46,346

 
$
78,261

 
$
111,568


See notes to unaudited condensed consolidated financial statements.

5
Table of Contents
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Shareholders' Equity (unaudited)
(Dollars in thousands)


 
Shareholders’ Equity
 
 
 
Preferred Stock
 
Common Stock
 
Additional Paid-In Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
 
Total Equity
Balance, January 1, 2015
$
150,000

 
$
1,237

 
$
851,158

 
$
810,796

 
$
(65,597
)
 
$
1,747,594

Net income
—

 
—

 
—

 
85,380

 
—

 
85,380

Other comprehensive income (loss)
—

 
—

 
—

 
—

 
(7,119
)
 
(7,119
)
Issuance of common stock
—

 
13

 
13,150

 
—

 
—

 
13,163

Share-based grants (including income tax benefits)
—

 
—

 
8,867

 
—

 
—

 
8,867

Cash dividends on common stock
—

 
—

 
—

 
(17,422
)
 
—

 
(17,422
)
Cash dividends on preferred stock
—

 
—

 
—

 
(7,594
)
 
—

 
(7,594
)
Balance, September 30, 2015
$
150,000

 
$
1,250

 
$
873,175

 
$
871,160

 
$
(72,716
)
 
$
1,822,869

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2014
$
150,000

 
$
1,226

 
$
832,351

 
$
690,051

 
$
(52,615
)
 
$
1,621,013

Net income
—

 
—

 
—

 
110,061

 
—

 
110,061

Other comprehensive income (loss)
—

 
—

 
—

 
—

 
1,507

 
1,507

Issuance of common stock
—

 
4

 
1,727

 
—

 
—

 
1,731

Share-based grants (including income tax benefits)
—

 
—

 
6,589

 
—

 
—

 
6,589

Cash dividends on common stock
—

 
—

 
—

 
(12,284
)
 
—

 
(12,284
)
Cash dividends on preferred stock
—

 
—

 
—

 
(7,594
)
 
—

 
(7,594
)
Balance, September 30, 2014
$
150,000

 
$
1,230

 
$
840,667

 
$
780,234

 
$
(51,108
)
 
$
1,721,023


See notes to unaudited condensed consolidated financial statements.

6
Table of Contents
EverBank Financial Corp and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(Dollars in thousands)

 
Nine Months Ended
September 30,
 
2015
 
2014
Operating Activities
 
 
 
Net income
$
85,380

 
$
110,061

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
Amortization of premiums and deferred origination costs
41,313

 
26,313

Depreciation and amortization of tangible and intangible assets
20,411

 
24,405

Reclassification of net loss on settlement of interest rate swaps
12,693

 
13,269

Amortization and impairment of mortgage servicing rights, net of recoveries
88,140

 
51,158

Deferred income taxes (benefit)
(1,859
)
 
47,276

Provision for loan and lease losses
28,063

 
15,929

Loss on other real estate owned (OREO)
3,171

 
2,957

Share-based compensation expense
5,916

 
5,334

Payments for settlement of forward interest rate swaps
—

 
(32,445
)
Other operating activities
(760
)
 
(2,859
)
Changes in operating assets and liabilities:
 
 
 
Loans held for sale, including proceeds from sales and repayments
(330,844
)
 
(83,475
)
Other assets
150,169

 
184,188

Accounts payable and accrued liabilities
(29,569
)
 
17

Net cash provided by (used in) operating activities
72,224

 
362,128

Investing Activities
 
 
 
Investment securities available for sale:
 
 
 
Purchases
(29,772
)
 
(125,387
)
Proceeds from sales
48,527

 
3,875

Proceeds from prepayments and maturities
179,846

 
241,018

Investment securities held to maturity:
 
 
 
Purchases
(11,947
)
 
(19,997
)
Proceeds from prepayments and maturities
14,541

 
12,524

Purchases of other investments
(429,764
)
 
(384,527
)
Proceeds from sales of other investments
385,540

 
318,277

Net change in loans and leases held for investment
(4,226,475
)
 
(3,859,849
)
Purchases of premises and equipment, including equipment under operating leases
(15,476
)
 
(20,255
)
Proceeds related to sale or settlement of other real estate owned
10,933

 
21,778

Proceeds from insured foreclosure claims
688,772

 
131,373

Proceeds from sale of mortgage servicing rights
35,938

 
37,738

Other investing activities
733

 
(217
)
Net cash provided by (used in) investing activities
(3,348,604
)
 
(3,643,649
)
Financing Activities
 
 
 
Net increase (decrease) in nonmaturity deposits
1,072,756

 
(30,001
)
Net increase (decrease) in time deposits
979,752

 
1,244,736

Net change in short-term Federal Home Loan Bank (FHLB) advances
(1,000
)
 
1,425,000

Proceeds from long-term FHLB advances
1,600,000

 
250,000

Repayments of long-term FHLB advances
(306,000
)
 
(75,000
)
Proceeds from issuance of subordinated notes payable, net of issuance costs
172,286

 
—

Proceeds from issuance of common stock
13,163

 
1,731

Dividends paid
(25,016
)
 
(19,878
)
Other financing activities
2,951

 
1,255

Net cash provided by (used in) financing activities
3,508,892

 
2,797,843

Net change in cash and cash equivalents
232,512

 
(483,678
)
Cash and cash equivalents at beginning of period
366,664

 
847,778

Cash and cash equivalents at end of period
$
599,176

 
$
364,100


See Note 1 for disclosures related to supplemental noncash information.
See notes to unaudited condensed consolidated financial statements.

7
Table of Contents

EverBank Financial Corp and Subsidiaries
Notes to Condensed Consolidated Financial Statements (unaudited)
(Dollars in thousands, except per share data)


1.  Organization and Basis of Presentation
a) Organization — EverBank Financial Corp (the Company) is a savings and loan holding company with two direct operating subsidiaries, EverBank (EB) and EverBank Funding, LLC (EBF). EB is a federally chartered thrift institution with its home office located in Jacksonville, Florida. EB's direct banking services are offered nationwide. In addition, EB operates financial centers in Florida and commercial and consumer lending centers across the United States. EB (a) accepts deposits from the general public and commercial entities; (b) originates, purchases, services, sells and securitizes residential real estate mortgage loans, commercial real estate loans and commercial loans and leases; (c) originates consumer and home equity loans; and (d) offers full-service securities brokerage and investment advisory services.
EB’s subsidiaries are:
•AMC Holding, Inc., the parent of CustomerOne Financial Network, Inc.;
•Tygris Commercial Finance Group, Inc., the parent of EverBank Commercial Finance, Inc.;
•EverInsurance, Inc.;
•Elite Lender Services, Inc.;
•EverBank Wealth Management, Inc.; and
•Business Property Lending, Inc.
b) Basis of Presentation — The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes necessary for a complete presentation of financial position, results of operations, comprehensive income, and cash flows in conformity with generally accepted accounting principles. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and accompanying notes to the financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for acquired companies are included from their respective dates of acquisition. In management’s opinion, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations, comprehensive income, and changes in cash flows have been made.
Accounting principles generally accepted in the United States of America require management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingencies at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates relate to the Company’s allowance for loan and lease losses, loans and leases acquired with evidence of credit deterioration, contingent liabilities, and the fair values of investment securities, loans held for sale, MSR and derivative instruments. Because of the inherent uncertainties associated with any estimation process and future changes in market and economic conditions, it is possible that actual results could differ significantly from those estimates.
c) Supplemental Cash Flow Information - Noncash investing activities are presented in the following table:
 
Nine Months Ended
September 30,
 
2015
 
2014
Supplemental Schedules of Noncash Activities:
 
 
 
Loans transferred to foreclosure claims
$
826,295

 
$
431,488

See Note 4 for disclosures relating to noncash activities relating to loan transfers.
2.  Recent Accounting Pronouncements
Consolidation - In February 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-02, Consolidation (Topic 810) - Amendments to the Consolidation Analysis, which (1) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIE) or voting interest entities; (2) eliminates the presumption that a general partner should consolidate a limited partnership; (3) affects the consolidation analysis of reporting entities involved with VIEs that have fee arrangements and related party relationships and (4) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. Upon adoption, ASU 2015-02 provides for transition through either a full retrospective approach or a modified retrospective approach, which requires restatement as of the beginning of the fiscal year of adoption through a cumulative-effect adjustment to retained earnings. ASU 2015-02 is effective for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods with early adoption permitted. The adoption of ASU 2015-02 is not expected to have a material impact on the Company's consolidated financial statements.
Revenue from Contracts with Customers - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Subtopic 606), which supersedes the guidance in former Accounting Standards Codification (ASC) 605, Revenue Recognition. ASU 2014-09 clarifies the principles for recognizing revenue in order to improve comparability of revenue recognition practices across entities and industries with certain scope exceptions including financial instruments, leases, and guarantees. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To satisfy this objective, ASU 2014-09 provides guidance intended to assist in the identification of contracts with customers and separate performance obligations within those contracts, the determination and

8
Table of Contents

allocation of the transaction price to those identified performance obligations and the recognition of revenue when a performance obligation has been satisfied. ASU 2014-09 also implements enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. The effective date of ASU 2014-09 has been deferred by one year from its original effective date through the August 2015 issuance of ASU 2015-14 and thus is effective for annual reporting periods beginning on or after December 15, 2017, and interim periods within those annual periods with early adoption prohibited. Upon adoption, ASU 2014-09 provides for transition through either a full retrospective approach requiring the restatement of all presented prior periods or a modified retrospective approach, which allows the new recognition standard to be applied to only those contracts that are not completed at the date of transition. If the modified retrospective approach is adopted, a cumulative-effect adjustment to retained earnings is performed with additional disclosures required including the amount by which each line item is affected by the transition as compared to the guidance in effect before adoption and an explanation of the reasons for significant changes in these amounts. The Company is currently evaluating the pending adoption of ASU 2014-09 and its impact on its consolidated financial statements and has not yet identified which transition method will be applied upon adoption.
Presentation of Residential Mortgage Loans Upon Foreclosure - In January 2014, the FASB issued ASU 2014-04, Receivables- Troubled Debt Restructurings by Creditors (Subtopic 310-40), which will eliminate diversity in practice regarding the timing of derecognition for residential mortgage loans when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. Under ASU 2014-04, physical possession of residential real estate property is achieved when either the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or the borrower conveys all interest in the residential real estate property through completion of a deed in lieu of foreclosure in order to satisfy that loan. Once physical possession has been achieved, the loan is derecognized and the property recorded within other assets at the lower of cost or fair value (less estimated costs to sell). In addition, the guidance requires interim and annual disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 is effective for annual reporting periods beginning on or after December 15, 2014, and interim periods within those annual periods. The guidance set forth in ASU 2014-04 was consistent with the Company’s current practice for derecognizing residential mortgage loans. As such, the adoption of ASU 2014-04 did not have a material impact on the Company's consolidated financial statements but resulted in additional disclosure, which can be found in Note 6.
3.  Investment Securities
The amortized cost, gross unrealized gains, gross unrealized losses, fair value and carrying value of investment securities were as follows as of September 30, 2015 and December 31, 2014:
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
 
Carrying Amount
September 30, 2015
 
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
Residential collateralized mortgage obligations (CMO) securities - nonagency
$
576,481

 
$
2,581

 
$
6,726

 
$
572,336

 
$
572,336

Asset-backed securities (ABS)
1,664

 
—

 
289

 
1,375

 
1,375

Other
254

 
139

 
—

 
393

 
393

Total available for sale securities
$
578,399

 
$
2,720

 
$
7,015

 
$
574,104

 
$
574,104

Held to maturity:
 
 
 
 
 
 
 
 
 
Residential CMO securities - agency
$
15,933

 
$
438

 
$
—

 
$
16,371

 
$
15,933

Residential mortgage-backed securities (MBS) - agency
96,286

 
3,255

 
27

 
99,514

 
96,286

Total held to maturity securities
$
112,219

 
$
3,693

 
$
27

 
$
115,885

 
$
112,219

December 31, 2014
 
 

 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
 
Residential CMO securities - nonagency
$
774,804

 
$
5,631

 
$
6,200

 
$
774,235

 
$
774,235

ABS
1,800

 
—

 
405

 
1,395

 
1,395

Other
275

 
406

 
—

 
681

 
681

Total available for sale securities
$
776,879

 
$
6,037

 
$
6,605

 
$
776,311

 
$
776,311

Held to maturity:
 
 
 
 
 
 
 
 
 
Residential CMO securities - agency
$
27,801

 
$
788

 
$
—

 
$
28,589

 
$
27,801

Residential MBS - agency
87,283

 
2,680

 
322

 
89,641

 
87,283

Total held to maturity securities
$
115,084

 
$
3,468

 
$
322

 
$
118,230

 
$
115,084

At September 30, 2015 and December 31, 2014, investment securities with a carrying value of $164,872 and $166,836, respectively, were pledged to secure other borrowings and for other purposes as required or permitted by law.
For the three and nine months ended September 30, 2015, there were $568 and $637 gross gains realized on available for sale investments, respectively, with no gross losses having been realized. For the three and nine months ended September 30, 2014, gross gains of $1,250 were realized on available for sale investments with no gross losses having been realized. The cost of investments sold is calculated using the specific identification method.

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Table of Contents

The gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position, at September 30, 2015 and December 31, 2014 were as follows:
 
Less Than 12 Months
 
12 Months or Greater
 
Total
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO securities - nonagency
$
107,552

 
$
844

 
$
225,113

 
$
5,882

 
$
332,665

 
$
6,726

Residential MBS - agency
2,583

 
2

 
9,429

 
25

 
12,012

 
27

ABS
—

 
—

 
1,375

 
289

 
1,375

 
289

Total debt securities
$
110,135

 
$
846

 
$
235,917

 
$
6,196

 
$
346,052

 
$
7,042

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO securities - nonagency
$
317,042

 
$
3,900

 
$
31,010

 
$
2,300

 
$
348,052

 
$
6,200

Residential MBS - agency
6,788

 
63

 
11,670

 
259

 
18,458

 
322

ABS
—

 
—

 
1,395

 
405

 
1,395

 
405

Total debt securities
$
323,830

 
$
3,963

 
$
44,075

 
$
2,964

 
$
367,905

 
$
6,927

The Company had unrealized losses at September 30, 2015 and December 31, 2014 on residential nonagency CMO securities, residential agency MBS, and ABS. These unrealized losses are primarily attributable to weak market conditions. Based on the nature of the impairment, these unrealized losses are considered temporary. The Company does not intend to sell nor is it more likely than not that it will be required to sell these investments before their anticipated recovery.
At September 30, 2015, the Company had 56 debt securities in an unrealized loss position. A total of 17 were in an unrealized loss position for less than 12 months. These 17 securities consisted of 15 residential nonagency CMO securities and two residential agency MBS. The remaining 39 debt securities were in an unrealized loss position for 12 months or longer. These 39 securities consisted of 34 residential nonagency CMO securities, three ABS, and two residential agency MBS. Of the $7,042 in unrealized losses, $4,707 relate to debt securities that are rated investment grade with the remainder representing securities for which the Company believes it has both the intent and ability to hold to recovery.
At December 31, 2014, the Company had 58 debt securities in an unrealized loss position. A total of 39 were in an unrealized loss position for less than 12 months. These 39 securities consisted of 36 residential nonagency CMO securities and three residential agency MBS. The remaining 19 debt securities were in an unrealized loss position for 12 months or longer. These 19 securities consisted of three ABS, three residential agency MBS and 13 residential nonagency CMO securities. Of the $6,927 in unrealized losses, $5,061 relate to debt securities that are rated investment grade with the remainder representing securities for which the Company believes it has both the intent and ability to hold to recovery.
When certain triggers indicate the likelihood of an OTTI or the qualitative evaluation performed cannot support the expectation of recovering the entire amortized cost basis of an investment, the Company performs cash flow analyses that project prepayments, default rates and loss severities on the collateral supporting each security. If the net present value of the investment is less than the amortized cost, the difference is recognized in earnings as a credit-related impairment, while the remaining difference between the fair value and the amortized cost is recognized in AOCI.
There were no OTTI losses recognized on available for sale or held to maturity securities during the three and nine months ended September 30, 2015. For the three and nine months ended September 30, 2014, the Company recognized non-credit OTTI in earnings of $685 on available for sale residential nonagency CMO securities with no OTTI recognized on held to maturity securities. These OTTI losses represented additional declines in fair value on securities originally OTTI at December 31, 2013 as a result of regulatory changes created by the Volcker rule, which classifies these investments as covered funds that cannot be held by an insured depository institution. As a result, management could not assert at September 30, 2014 that the Company had the ability to hold these investments to recovery.
During the three and nine months ended September 30, 2015 and 2014, interest and dividend income on investment securities was comprised of the following:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Interest income on available for sale securities
$
4,279

 
$
7,243

 
$
14,066

 
$
24,020

Interest income on held to maturity securities
755

 
837

 
2,347

 
2,473

Other interest and dividend income
2,486

 
1,547

 
6,576

 
2,783

 
$
7,520

 
$
9,627

 
$
22,989

 
$
29,276

All investment interest income recognized by the Company during the three and nine months ended September 30, 2015 and 2014 was fully taxable.

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Table of Contents

4.  Loans Held for Sale
Loans held for sale as of September 30, 2015 and December 31, 2014, consisted of the following:
 
September 30,
2015
 
December 31,
2014
Mortgage warehouse (carried at fair value)
$
347,038


$
410,948

Other residential (carried at fair value)
754,303


317,430

   Total loans held for sale carried at fair value
1,101,341

 
728,378

Government insured pool buyouts
288


12,583

Other residential
90,874

 
232,546

Commercial and commercial real estate
291,251


—

 Total loans held for sale carried at lower of cost or market
382,413

 
245,129

Total loans held for sale
$
1,483,754


$
973,507

The Company has elected the fair value option for loans it originates with the intent to market and sell in the secondary market either through third party sales or securitizations. Mortgage warehouse loans are largely comprised of agency deliverable products that the Company typically sells within three months subsequent to origination. The Company economically hedges the mortgage warehouse portfolio with forward purchase and sales commitments designed to protect against potential changes in fair value. Due to the short duration that these loans are present on the balance sheet, the Company has elected fair value accounting on this portfolio of loans due to the burden of complying with the requirements of hedge accounting. The Company has also elected the fair value option for originated fixed rate jumbo preferred loans, due to the short duration that these loans are present on the balance sheet. Electing to use fair value accounting allows a better offset of the changes in the fair values of the loans and the derivative instruments used to economically hedge these loans without the burden of complying with the requirements for hedge accounting. The Company has not elected the fair value option for other residential mortgage loans, government insured pool buyouts and commercial and commercial real estate loans because the Company expects to hold these loans for the foreseeable future. These loans are carried at the lower of cost or fair value.
A majority of the loans held for sale that are carried at the lower of cost or market represent loans that were transferred from the held for investment portfolio to the held for sale portfolio. Government insured pool buyouts held at the lower of cost or market represent government insured loans that have re-performed and are now eligible to be re-securitized or sold to third parties. Once the loan re-performs and becomes eligible for securitization or sale, the loan is transferred to the held for sale portfolio and sold. Other residential loans held at the lower of cost or market represent jumbo preferred adjustable rate mortgage (ARM) loans for which the Company has changed its intent and has made a decision to sell the loans and as such transferred the loans to held for sale. Commercial and commercial real estate loans represent multi-family loans for which the Company is actively marketing to sell. As the Company no longer has the intent to hold these loans for the foreseeable future, the loans were transferred to held for sale. Residential loans, commercial and commercial real estate loans and equipment financing receivables are transferred to the held for sale portfolio when the Company has entered into a commitment to sell a specific portion of its held for investment portfolio or when the Company has a formal marketing strategy to sell a certain loan product.
In conjunction with the sale of loans and leases, the Company may be exposed to limited liability related to recourse agreements and repurchase agreements made to its insurers and purchasers, which are included in commitments and contingencies in Note 14. Commitments and contingencies include amounts related to loans sold that the Company may be required to repurchase, or otherwise indemnify or reimburse the investor or insurer for losses incurred, due to a breach with respect to Government Sponsored Enterprises (GSE) purchasers or a material breach with respect to non-GSE purchasers, of contractual representations and warranties. Refer to Note 14 for the maximum exposure to loss for material breach of contractual representations and warranties.
The following is a summary of cash flows related to transfers accounted for as sales for the three and nine months ended September 30, 2015 and 2014:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
Proceeds received from residential agency securitizations
$
1,240,727

 
$
1,426,139

 
$
3,416,119

 
$
3,638,161

 
 
 
 
 
 
 
 
Proceeds received from nonsecuritization sales - residential
610,080

 
821,010

 
2,258,236

 
1,422,271

Proceeds received from nonsecuritization sales - commercial and commercial real estate
61,388

 
15,363

 
164,667

 
94,617

Proceeds received from nonsecuritization sales - equipment financing receivables
3,312

 
9,401

 
43,441

 
13,412

   Proceeds received from nonsecuritization sales
$
674,780

 
$
845,774

 
$
2,466,344

 
$
1,530,300

 
 
 
 
 
 
 
 
Repurchased loans from residential agency sales and securitizations
$
2,212

 
$
1,122

 
$
4,733

 
$
3,666

Repurchased loans from residential nonagency sales
2,420

 
—

 
7,797

 
4,078

Repurchased loans from commercial sales and securitizations (1)
—

 
—

 
105,651

 
—

(1)
Represents loans that were voluntarily repurchased out of the Business Lending Trusts through a clean-up call, which were subsequently sold in third-party sales.
In connection with these transfers, the Company recorded servicing assets in the amount of $17,287 and $46,110 for the three and nine months ended September 30, 2015. All servicing assets are initially recorded at fair value using a Level 3 measurement technique. Refer to

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Table of Contents

Note 7 for information relating to servicing activities and MSR and Note 13 for a description of the valuation process. The gains and losses on the transfers which qualified as sales are recorded in the condensed consolidated statements of income in gain on sale of loans, which includes the gain or loss on sale, change in fair value related to fair value option loans, and the change in fair value related to offsetting hedging positions.
The Company periodically transfers conforming residential Ginnie Mae (GNMA) mortgages in exchange for mortgage-backed securities.  As of September 30, 2015 and December 31, 2014, the Company retained zero and $9,001, respectively, of these securities backed by the transferred loans and maintained effective control over these pools of transferred assets. Accordingly, the Company did not record these transfers as sales. These transferred assets were recorded in the condensed consolidated balance sheets as loans held for sale. The remaining securities were sold to unrelated third parties and were recorded as sales.
The following is a summary of transfers of loans from held for investment to held for sale and transfers of loans from held for sale to held for investment for the three and nine months ended September 30, 2015 and 2014.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Loans Transferred from Held for investment (HFI) to Held for Sale (HFS)
2015
 
2014
 
2015
 
2014
Residential mortgages
$
89,849

 
$
26,614

 
$
799,570

 
$
1,185,050

Government insured pool buyouts
218,413

 
159,243

 
704,085

 
401,499

Commercial and commercial real estate
348,875

 
13,060

 
348,875

 
44,438

Equipment financing receivables
3,130

 
9,401

 
40,320

 
13,271

Total transfers from HFI to HFS
$
660,267

 
$
208,318

 
$
1,892,850

 
$
1,644,258

 


 
 
 
 
 
 
Loans Transferred from HFS to HFI
 
 
 
 
 
 
 
Residential mortgages
$
1,706

 
167,745

 
195,760

 
206,530

Government Insured Pool Buyouts
—

 
24,904

 
—

 
24,904

Total transfers from HFS to HFI
$
1,706

 
$
192,649

 
$
195,760

 
$
231,434

Loans and leases are transferred from loans and leases HFI to HFS when the Company no longer has the intent to hold the loans and leases for the foreseeable future. Loans and leases are transferred from HFS to HFI when the Company determines that it intends to hold these loans and leases for the foreseeable future and no longer has the intent to sell. Loan transfers from HFS to HFI and transfers from HFI to HFS represent noncash activities within the operating and investing sections of the statement of cash flows.
5.  Loans and Leases Held for Investment, Net
Loans and leases held for investment as of September 30, 2015 and December 31, 2014 were comprised of the following:
 
September 30,
2015
 
December 31,
2014
Residential mortgages
$
11,311,881

 
$
9,920,070

Commercial and commercial real estate
6,940,875

 
5,646,690

Equipment financing receivables
2,287,532

 
2,031,570

Home equity lines
332,183

 
156,869

Consumer and credit card
4,910

 
5,054

Total loans and leases held for investment, net of unearned income
20,877,381

 
17,760,253

Allowance for loan and lease losses
(71,897
)
 
(60,846
)
Total loans and leases held for investment, net
$
20,805,484

 
$
17,699,407

As of September 30, 2015 and December 31, 2014, the carrying values presented above include net purchased loan and lease discounts and net deferred loan and lease origination costs as follows:
 
September 30,
2015
 
December 31,
2014
Net purchased loan and lease discounts
$
43,166

 
$
47,108

Net deferred loan and lease origination costs
115,990

 
94,778

During the nine months ended September 30, 2015, significant purchases that impacted the Company's held for investment portfolio included government insured buyouts with an unpaid principal balance (UPB) of $2,138,426, which are categorized as residential mortgages in the table above, and commercial real estate with a UPB of $105,652. The Company also purchased into commercial credit facilities with an outstanding commitment of $818,287 and outstanding balances of $415,374. Please see Note 4 for disclosure of the Company's transfers and sales of financing receivables.
Of the $415,374 in commercial credit facility balances purchased during the nine months ended September 30, 2015, $91,721 of net recorded investment was purchased on May 11, 2015, representing the purchase of a portfolio of asset based lending loans. The purchase was funded entirely by cash with the transaction being accounted for using the acquisition method of accounting. Based on the acquisition method of accounting, consideration paid totaling $91,829 was allocated to the purchased loans and related accrued interest and fees with no additional assets recognized or liabilities assumed in the transaction. No goodwill was recognized in the transaction. The portfolio will continue to be operated out of New York as the Company hired several professionals who previously worked with the purchased portfolio.

12
Table of Contents

Acquired Credit Impaired (ACI) Loans and Leases — At acquisition, the Company estimates the fair value of acquired loans and leases by segregating the portfolio into pools with similar risk characteristics. Fair value estimates for acquired loans and leases require estimates of the amounts and timing of expected future principal, interest and other cash flows. For each pool, the Company uses certain loan and lease information, including outstanding principal balance, probability of default and the estimated loss in the event of default to estimate the expected future cash flows for each loan and lease pool.
Acquisition date details of loans and leases acquired with evidence of credit deterioration during the nine months ended September 30, 2015 and 2014 are as follows:
 
September 30,
2015
 
September 30,
2014
Contractual payments receivable for acquired loans and leases at acquisition
$
3,319,606

 
$
4,334,951

Expected cash flows for acquired loans and leases at acquisition
2,152,753

 
2,689,008

Basis in acquired loans and leases at acquisition
1,986,531

 
2,533,686

Information pertaining to the ACI portfolio as of September 30, 2015 and December 31, 2014 is as follows:
 
Residential
 
Commercial and Commercial Real Estate
 
Total      
September 30, 2015
 
 
 
 
 
Carrying value, net of allowance
$
3,101,072

 
$
129,625

 
$
3,230,697

Outstanding unpaid principal balance
3,147,692

 
134,539

 
3,282,231

Allowance for loan and lease losses, beginning of period
5,974

 
2,042

 
8,016

Allowance for loan and lease losses, end of period
7,417

 
346

 
7,763

December 31, 2014
 
 
 
 
 
Carrying value, net of allowance
$
2,616,728

 
$
194,599

 
$
2,811,327

Outstanding unpaid principal balance
2,655,497

 
198,061

 
2,853,558

Allowance for loan and lease losses, beginning of year
4,925

 
9,834

 
14,759

Allowance for loan and lease losses, end of year
5,974

 
2,042

 
8,016

The Company recorded a reduction of provision for loan loss of $253 and provision for loan loss of $427 for the ACI portfolio for the nine months ended September 30, 2015 and 2014, respectively. The adjustments to provision are the result of changes in expected cash flows on ACI loans.
The following is a summary of the accretable yield activity for the ACI loans during the nine months ended September 30, 2015 and 2014:
 
Residential
 
Commercial and Commercial Real Estate
 
Total      
September 30, 2015
 
 
 
 
 
Balance, beginning of period
$
240,650

 
$
61,256

 
$
301,906

Additions
166,222

 
—

 
166,222

Accretion
(97,781
)
 
(8,986
)
 
(106,767
)
Reclassifications to (from) accretable yield
(83,712
)
 
(6,022
)
 
(89,734
)
Balance, end of period
$
225,379

 
$
46,248

 
$
271,627

September 30, 2014
 
 
 
 
 
Balance, beginning of period
$
101,183

 
$
59,663

 
$
160,846

Additions
155,372

 
—

 
155,372

Accretion
(51,930
)
 
(14,878
)
 
(66,808
)
Reclassifications to (from) accretable yield
(9,440
)
 
25,879

 
16,439

Transfer from loans held for investment to loans held for sale
(2,522
)
 
(344
)
 
(2,866
)
Balance, end of period
$
192,663

 
$
70,320

 
$
262,983


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Table of Contents

6.  Allowance for Loan and Lease Losses
Changes in the allowance for loan and lease losses for the three and nine months ended September 30, 2015 and 2014 are as follows:
Three Months Ended September 30, 2015
Residential Mortgages
 
Commercial
and Commercial Real Estate
 
Equipment Financing Receivables    
 
Home Equity Lines
 
Consumer and Credit Card
 
Total    
Balance, beginning of period
$
24,385

 
$
26,942

 
$
10,391

 
$
4,236

 
$
137

 
$
66,091

Provision for loan and lease losses
4,142

 
5,279

 
2,761

 
(1,051
)
 
—

 
11,131

Charge-offs
(2,630
)
 
(406
)
 
(2,703
)
 
(353
)
 
—

 
(6,092
)
Recoveries
91

 
4

 
602

 
70

 
—

 
767

Balance, end of period
$
25,988

 
$
31,819

 
$
11,051

 
$
2,902

 
$
137

 
$
71,897

Three Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
20,421

 
$
27,943

 
$
5,565

 
$
2,667

 
$
132

 
$
56,728

Transfers to loans held for sale
—

 
(2,482
)
 
—

 
—

 
—

 
(2,482
)
Provision for loan and lease losses
5,115

 
(1,659
)
 
2,917

 
299

 
63

 
6,735

Charge-offs
(2,023
)
 
(568
)
 
(1,548
)
 
(171
)
 
(28
)
 
(4,338
)
Recoveries
127

 
6

 
180

 
289

 
—

 
602

Balance, end of period
$
23,640

 
$
23,240

 
$
7,114

 
$
3,084

 
$
167

 
$
57,245

Nine Months Ended September 30, 2015
Residential Mortgages
 
Commercial
and Commercial Real Estate
 
Equipment Financing Receivables    
 
Home Equity Lines
 
Consumer and Credit Card
 
Total    
Balance, beginning of period
$
25,098

 
$
23,095

 
$
8,649

 
$
3,814

 
$
190

 
$
60,846

   Provision for loan and lease losses
8,304

 
10,924

 
9,071

 
(245
)
 
9

 
28,063

   Charge-offs
(7,616
)
 
(2,424
)
 
(8,172
)
 
(917
)
 
(62
)
 
(19,191
)
   Recoveries
202

 
224

 
1,503

 
250

 
—

 
2,179

Balance, end of period
$
25,988

 
$
31,819

 
$
11,051

 
$
2,902

 
$
137

 
$
71,897

Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
26,497

 
$
29,987

 
$
4,273

 
$
2,812

 
$
121

 
$
63,690

Transfers to loans held for sale
(5,052
)
 
(2,482
)
 
—

 
(191
)
 
—

 
(7,722
)
   Provision for loan and lease losses
8,249

 
1,015

 
5,950

 
609

 
109

 
15,929

   Charge-offs
(6,998
)
 
(5,287
)
 
(3,675
)
 
(650
)
 
(63
)
 
(16,673
)
   Recoveries
944

 
7

 
566

 
504

 
—

 
2,021

Balance, end of period
$
23,640

 
$
23,240

 
$
7,114

 
$
3,084

 
$
167

 
$
57,245


14
Table of Contents

The following tables provide a breakdown of the allowance for loan and lease losses and the recorded investment in loans and leases based on the method for determining the allowance as of September 30, 2015 and December 31, 2014:
September 30, 2015
Individually Evaluated for Impairment
 
Collectively Evaluated for Impairment
 
ACI Loans
 
Total
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
Residential mortgages
$
2,606

 
$
15,965

 
$
7,417

 
$
25,988

Commercial and commercial real estate
7,334

 
24,139

 
346

 
31,819

Equipment financing receivables
281

 
10,770

 
—

 
11,051

Home equity lines
—

 
2,902

 
—

 
2,902

Consumer and credit card
—

 
137

 
—

 
137

Total allowance for loan and lease losses
$
10,221

 
$
53,913

 
$
7,763

 
$
71,897

Loans and Leases Held for Investment at Recorded Investment
 
 
 
 
 
 
 
Residential mortgages
$
17,419

 
$
8,185,973

 
$
3,108,489

 
$
11,311,881

Commercial and commercial real estate
86,237

 
6,724,667

 
129,971

 
6,940,875

Equipment financing receivables
448

 
2,287,084

 
—

 
2,287,532

Home equity lines
—

 
332,183

 
—

 
332,183

Consumer and credit card
—

 
4,910

 
—

 
4,910

Total loans and leases held for investment
$
104,104

 
$
17,534,817

 
$
3,238,460

 
$
20,877,381

 
 
 
 
 
 
 
 
December 31, 2014
Individually Evaluated for Impairment
 
Collectively Evaluated for Impairment
 
ACI Loans
 
Total
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
Residential mortgages
$
2,896

 
$
16,228

 
$
5,974

 
$
25,098

Commercial and commercial real estate
720

 
20,333

 
2,042

 
23,095

Equipment financing receivables
—

 
8,649

 
—

 
8,649

Home equity lines
—

 
3,814

 
—

 
3,814

Consumer and credit card
—

 
190

 
—

 
190

Total allowance for loan and lease losses
$
3,616

 
$
49,214

 
$
8,016

 
$
60,846

Loans and Leases Held for Investment at Recorded Investment
 
 
 
 
 
 
 
Residential mortgages
$
16,642

 
$
7,280,726

 
$
2,622,702

 
$
9,920,070

Commercial and commercial real estate
42,267

 
5,407,782

 
196,641

 
5,646,690

Equipment financing receivables
—

 
2,031,570

 
—

 
2,031,570

Home equity lines
—

 
156,869

 
—

 
156,869

Consumer and credit card
—

 
5,054

 
—

 
5,054

Total loans and leases held for investment
$
58,909

 
$
14,882,001

 
$
2,819,343

 
$
17,760,253

The Company uses a risk grading matrix to monitor credit quality for commercial and commercial real estate loans. Risk grades are continuously monitored and updated by credit administration personnel based on current information and events. The Company monitors the credit quality of all other loan types based on performing status.

15
Table of Contents

The following tables present the recorded investment for loans and leases by credit quality indicator as of September 30, 2015 and December 31, 2014:
 
 
 
Non-performing    
 
 
 
 
 
Performing
 
Accrual
 
Nonaccrual
 
Total
 
 
September 30, 2015
 
 
 
 
 
 
 
 
 
Residential mortgages:
 
 
 
 
 
 
 
 
 
Residential (1)
$
7,337,233

 
$
—

 
$
27,289

 
$
7,364,522

 
 
Government insured pool buyouts (2) (3)
3,537,434

 
409,925

 
—

 
3,947,359

 
 
Equipment financing receivables
2,273,871

 
—

 
13,661

 
2,287,532

 
 
Home equity lines
327,997

 
—

 
4,186

 
332,183

 
 
Consumer and credit card
4,905

 
—

 
5

 
4,910

 
 
Total
$
13,481,440

 
$
409,925

 
$
45,141

 
$
13,936,506

 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
September 30, 2015
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate:
 
 
 
 
 
 
 
 
 
Mortgage warehouse finance
$
2,162,627

 
$
—

 
$
—

 
$
—

 
$
2,162,627

Lender finance
1,117,886

 
—

 
—

 
—

 
1,117,886

Other commercial finance
208,489

 
2,990

 
148

 
—

 
211,627

Commercial real estate
3,312,148

 
14,759

 
121,828

 
—

 
3,448,735

Total commercial and commercial real estate
$
6,801,150

 
$
17,749

 
$
121,976

 
$
—

 
$
6,940,875

 
 
 
 
 
 
 
 
 
 
 
 
 
Non-performing
 
 
 
 
 
Performing
 
Accrual
 
Nonaccrual
 
Total
 
 
December 31, 2014
 
 
 
 
 
 
 
 
 
Residential mortgages:
 
 
 
 
 
 
 
 
 
Residential (1)
$
6,302,172

 
$
—

 
$
22,793

 
$
6,324,965

 
 
Government insured pool buyouts (2) (3)
3,096,877

 
498,228

 
—

 
3,595,105

 
 
Equipment financing receivables
2,020,613

 
—

 
10,957

 
2,031,570

 
 
Home equity lines
154,506

 
—

 
2,363

 
156,869

 
 
Consumer and credit card
5,016

 
—

 
38

 
5,054

 
 
Total
$
11,579,184

 
$
498,228

 
$
36,151

 
$
12,113,563

 
 
 
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2014
 
 
 
 
 
 
 
 
 
Commercial and commercial real estate:
 
 
 
 
 
 
 
 
 
Mortgage warehouse finance
$
1,356,651

 
$
—

 
$