Stockholders' Equity |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity and Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Regulatory Matters | STOCKHOLDERS’ EQUITY On July 29, 2016 the Company acquired Wilshire in an all-stock transaction. Pursuant to the merger agreement, Wilshire shareholders received 0.7034 shares of the Company’s common stock for each share of Wilshire stock owned. Based on this exchange ratio, 55.5 million shares of the Company’s common stock were issued to Wilshire shareholders at $15.37 per share, the closing price of the Company’s stock on July 29, 2016. As a result, $852.9 million in common stock was issued as consideration in the transaction and $3.4 million in additional paid-in capital was recorded to account for the fair value of stock options and restricted stock assumed. Total stockholders’ equity at December 31, 2017 was $1.93 billion, compared to $1.86 billion at December 31, 2016. Warrants The Company assumed certain warrants (related to the TARP Capital Purchase Plan) to purchase shares of the Company’s common stock. On May 20, 2015, the U.S. Treasury Department completed an auction to sell certain of its warrant positions. The Company submitted the winning bid to repurchase an outstanding warrant to purchase 350,767 shares of the Company’s common stock and repurchased this warrant for $1.2 million. As of December 31, 2017, the U.S. Treasury Department held one remaining warrant for the purchase of 20,379 shares of the Company’s common stock. Dividends The Company’s Board of Directors approved and the Company paid quarterly dividends of $0.12 per common share for the first and second quarter of 2017 and paid dividends of $0.13 per common shares for the third and fourth quarter of 2017. The Company paid aggregate dividends of $67.7 million to common shareholders in 2017. The Company’s Board of Directors paid quarterly dividends of $0.12 per common share for the fourth quarter of 2016 and $0.11 per common share for the first three quarters of 2016. The Company paid aggregate dividends of $42.5 million to common shareholders during 2016. Accumulated Other Comprehensive Loss The following table presents the changes to accumulated other comprehensive loss at December 31, 2017, 2016, and 2015:
The reclassification adjustments were recognized in net gains on sales or called securities available for sale in the consolidated statements of income. As permitted by ASU 2018-02, the Company made the election to reclassify $3.6 million in disproportionate tax effects in accumulated other comprehensive income that resulted from the reduction in corporate tax rates as a result of the Tax Act to retained earnings for the year ended December 31, 2017. The Tax Act, which was enacted on December 22, 2017 and is effective staring January 1, 2018, permanently reduces the corporate tax rate from 35% to 21%. The disproportionate tax effect was a result of the re-evaluation of the Company’s deferred tax assets related to unrealized losses on investment securities available for sale and interest only strip at the lower tax rate. |