10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2019

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number: 001-32550 

WESTERN ALLIANCE BANCORPORATION

(Exact name of registrant as specified in its charter)

Delaware	88-0365922
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One E. Washington Street, Suite 1400	Phoenix	Arizona	85004
(Address of principal executive offices)			(Zip Code)

(602) 389-3500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 Par Value	WAL	New York Stock Exchange
6.25% Subordinated Debentures due 2056	WALA	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☒    No  ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ☐    No  ☒

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  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” "accelerated filer" "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The aggregate market value of the registrant’s voting stock held by non-affiliates was approximately $4.28 billion based on the June 30, 2019 closing price of said stock on the New York Stock Exchange ($44.72 per share).

As of February 24, 2020, Western Alliance Bancorporation had 102,479,213 shares of common stock outstanding.

Portions of the registrant’s definitive proxy statement for its 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this report.

INDEX

		Page
PART I
Forward-Looking Statements		3
Item 1.	Business	5
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	26
Item 2.	Properties	26
Item 3.	Legal Proceedings	26
Item 4.	Mine Safety Disclosures	26
PART II
Item 5.	Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	27
Item 6.	Selected Financial Data	29
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	67
Item 8.	Financial Statements and Supplementary Data	69
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	145
Item 9A.	Controls and Procedures	145
Item 9B.	Other Information	147
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	148
Item 11.	Executive Compensation	148
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	148
Item 13.	Certain Relationships and Related Transactions, and Director Independence	148
Item 14.	Principal Accountant Fees and Services	148
PART IV
Item 15.	Exhibits and Financial Statement Schedules	148
Item 16.	Form 10-K Summary	150
SIGNATURES		151

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PART I

Forward-Looking Statements

Certain statements contained in this Annual Report on Form 10-K for the fiscal year ended December 31, 2019 (this “Form 10-K”) are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Statements that constitute forward-looking statements within the meaning of the Reform Act are generally identified through the inclusion of words such as “aim,” “anticipate,” “believe,” “drive,” “estimate,” “expect,” “expressed confidence,” “forecast,” “future,” “goals,” “guidance,” “intend,” “may,” “opportunity,” “plan,” “position,” “potential,” “project,” “ seek,” “should,” “strategy,” “target,” “will,” “would” or similar statements or variations of such words and other similar expressions. All statements other than historical fact are “forward-looking statements” within the meaning of the Reform Act, including statements that are related to or are dependent on estimates or assumptions relating to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions that are not historical facts. These forward-looking statements reflect the Company's current views about future events and financial performance and involve certain risks, uncertainties, assumptions, and changes in circumstances that may cause the Company's actual results to differ significantly from historical results and those expressed in any forward-looking statement. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to, those described in “Risk Factors” in Item 1A of this Form 10-K. Forward-looking statements speak only as of the date they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statements included in this Form 10-K or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this Form 10-K might not occur, and you should not put undue reliance on any forward-looking statements.

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GLOSSARY OF ENTITIES AND TERMS

The acronyms and abbreviations identified below are used in various sections of this Form 10-K, including "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Item 7 and the Consolidated Financial Statements and the Notes to Consolidated Financial Statements in Item 8 of this Form 10-K:

ENTITIES / DIVISIONS:
ABA	Alliance Bank of Arizona	HOA Services	Homeowner Associations Services
BON	Bank of Nevada	LVSP	Las Vegas Sunset Properties
Bridge	Bridge Bank	TPB	Torrey Pines Bank
Company	Western Alliance Bancorporation and subsidiaries	WA PWI	Western Alliance Public Welfare Investments, LLC
CSI	CS Insurance Company	WAB or Bank	Western Alliance Bank
FIB	First Independent Bank	WABT	Western Alliance Business Trust
HFF	Hotel Franchise Finance	WAL or Parent	Western Alliance Bancorporation
TERMS:
ACL	Allowance for Credit Losses	FRB	Federal Reserve Bank
AFS	Available-for-Sale	FVO	Fair Value Option
ALCO	Asset and Liability Management Committee	GAAP	U.S. Generally Accepted Accounting Principles
ALLL	Allowance for Loan and Lease Losses	GLBA	Gramm-Leach-Bliley Act
AOCI	Accumulated Other Comprehensive Income	GNMA	Government National Mortgage Association
APIC	Additional paid in capital	GSE	Government-Sponsored Enterprise
ARRC	Alternative Reference Rate Committee	HFI	Held for Investment
ASC	Accounting Standards Codification	HFS	Held for Sale
ASU	Accounting Standards Update	HTM	Held-to-Maturity
Basel Committee	Basel Committee on Banking Supervision	ICS	Insured Cash Sweep Service
Basel III	Banking Supervision's December 2010 final capital framework	IRC	Internal Revenue Code
BHCA	Bank Holding Company Act of 1956	ISDA	International Swaps and Derivatives Association
BOD	Board of Directors	IT	Information Technology
BOLI	Bank Owned Life Insurance	LIBOR	London Interbank Offered Rate
CAMELS	Capital Adequacy, Assets, Management Capability, Earnings, Liquidity, Sensitivity	LIHTC	Low-Income Housing Tax Credit
Capital Rules	The FRB, the OCC, and the FDIC 2013 approved final rules	MBS	Mortgage-Backed Securities
CCO	Chief Credit Officer	MOU	Memorandum of Understanding
CDARS	Certificate Deposit Account Registry Service	NBL	National Business Lines
CDO	Collateralized Debt Obligation	NOL	Net Operating Loss
CECL	Current Expected Credit Loss	NPV	Net Present Value
CEO	Chief Executive Officer	NYSE	New York Stock Exchange
CET1	Common Equity Tier 1	OCC	Office of the Comptroller of the Currency
CFO	Chief Financial Officer	OCI	Other Comprehensive Income
CFPB	Consumer Financial Protection Bureau	OFAC	Office of Foreign Asset Control
CLO	Collateralized Loan Obligation	OREO	Other Real Estate Owned
CMO	Collateralized Mortgage Obligation	OTTI	Other-than-Temporary Impairment
COSO	Committee of Sponsoring Organizations of the Treadway Commission	PCAOB	Public Company Accounting Oversight Board
CRA	Community Reinvestment Act	PCI	Purchased Credit Impaired
CRE	Commercial Real Estate	PPNR	Pre-Provision Net Revenue
DIF	FDIC's Deposit Insurance Fund	ROU	Right of use
Dodd-Frank Act	The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010	SBA	Small Business Administration
DTA	Deferred Tax Asset	SBIC	Small Business Investment Company
DTL	Deferred Tax Liability	SBLF	Small Business Lending Fund
EGRRCPA	The Economic Growth, Regulatory Relief, and Consumer Protection Act	SEC	Securities and Exchange Commission
EPS	Earnings per share	SERP	Supplemental Executive Retirement Plan
EVE	Economic Value of Equity	SLC	Senior Loan Committee
Exchange Act	Securities Exchange Act of 1934, as amended	SOFR	Secured Overnight Funding Rate
FASB	Financial Accounting Standards Board	SR	Supervision and Regulation Letters
FCRA	Fair Credit Reporting Act of 1971	TCJA	Tax Cuts and Jobs Act of 2017
FDIA	Federal Deposit Insurance Act	TDR	Troubled Debt Restructuring
FDIC	Federal Deposit Insurance Corporation	TEB	Tax Equivalent Basis
FHLB	Federal Home Loan Bank	TSR	Total Shareholder Return
FHLMC	Federal Home Loan Mortgage Corporation	USDA	United States Department of Agriculture
FICO	The Financing Corporation	VIE	Variable Interest Entity
FNMA	Federal National Mortgage Association	XBRL	eXtensible Business Reporting Language
FRA	Federal Reserve Act

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Item 1. Business.

Organization Structure and Description of Services

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, Bridge, FIB, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which held and managed certain OREO properties, and CSI, a captive insurance company formed and licensed under the laws of the State of Arizona, and established as part of the Company's overall enterprise risk management strategy.

WAL also has eight unconsolidated subsidiaries used as business trusts in connection with issuance of trust-preferred securities as described in "Note 9. Qualifying Debt" in Item 8 of this Form 10-K.

Bank Subsidiary

At December 31, 2019, WAL has the following bank subsidiary:

Bank Name	Headquarters	Location Cities	Total Assets		Net Loans		Deposits
			(in millions)
Western Alliance Bank	Phoenix, Arizona	Arizona: Chandler, Flagstaff, Gilbert, Mesa, Phoenix, Scottsdale, and Tucson	$	26,862.7	$	20,955.5	$	23,086.0
		Nevada: Carson City, Fallon, Reno, Sparks, Henderson, Las Vegas, Mesquite, and North Las Vegas
		California: Beverly Hills, Carlsbad, Costa Mesa, La Mesa, Los Angeles, Menlo Park, Oakland, Palo Alto, Pleasanton, San Diego, San Francisco, and San Jose
		Other: Atlanta, Georgia; Boston, Massachusetts; and Reston, Virginia

WAB also has the following significant wholly-owned subsidiaries:

• Western Alliance Business Trust holds certain investment securities, municipal and non-profit loans, and leases.

• WA PWI, LLC holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations.

• BW Real Estate, Inc. operates as a real estate investment trust and holds certain real estate loans and related securities.

• Helios Prime, Inc. holds certain equity interests in renewable energy tax credit transactions.

Market Segments

The Company’s reportable segments are defined primarily by geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The Company's NBL segments provide specialized banking services to niche markets. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately within the Company's core market areas. The Corporate & Other segment consists of the Company's investment portfolio, corporate borrowings and other related items, income and expense items not allocated to other reportable segments, and inter-segment eliminations.

Loan and deposit accounts are typically assigned directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities with a funds credit provided for the use of this equity as a funding source. Any excess equity not allocated to segments based on risk is assigned to the Corporate & Other segment.

5

Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segments to the extent that the amounts are directly attributable to those segments. Net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. Net income amounts for each reportable segment are further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, average loan balances, and average deposit balances. Income taxes are applied to each segment based on the effective tax rate for the geographic location of the segment. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.

Lending Activities

General

Through WAB and its banking divisions and operating subsidiaries, the Company provides a variety of financial services to customers, including CRE loans, construction and land development loans, commercial loans, and consumer loans. The Company’s lending has focused primarily on meeting the needs of business customers.

Commercial and Industrial: Commercial and industrial loans are a significant portion of the Company's loan portfolio and include working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans. Loans to technology companies, tax-exempt municipalities, and not-for-profit organizations are also categorized as commercial and industrial loans.

CRE: Loans to fund the purchase or refinancing of CRE for investors (non-owner occupied) or owner occupants are a significant portion of the Company's loan portfolio. These CRE loans are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties. As of December 31, 2019 and 2018, 31% and 36% of the Company's CRE loans were owner occupied. Owner occupied CRE loans are loans secured by owner occupied non-farm nonresidential properties for which the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. Non-owner occupied CRE loans are CRE loans for which the primary source of repayment is rental income generated from the collateral property.

Construction and Land Development: Construction and land development loans include single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments. These loans are primarily originated to experienced local developers with whom the Company has a satisfactory lending history. An analysis of each construction project is performed as part of the underwriting process to determine whether the type of property, location, construction costs, and contingency funds are appropriate and adequate. Loans to finance commercial raw land are primarily to borrowers who plan to initiate active development of the property within two years.

Residential: The Company has a residential mortgage acquisition program, in which it partners with strategic third parties to execute flow and bulk residential loan purchases that meet the Company's goals and underwriting criteria. These loan purchases consist of both conforming and non-conforming loans. Non-conforming loan purchases are considered to be high quality as the borrowers have high FICO scores and the loans generally have low loan-to-values. Residential loans made up 10% of the Company's total loan portfolio as of December 31, 2019, compared to 7% as of December 31, 2018.

Consumer: Limited types of consumer loans are offered to meet customer demand and to respond to community needs. Examples of these consumer loans include home equity loans and lines of credit, home improvement loans, personal lines of credit, and loans to individuals for investment purposes.

6

At December 31, 2019, the Company's loan portfolio totaled $21.12 billion, or approximately 79% of total assets. The following table sets forth the composition of the Company's HFI loan portfolio as of the periods presented: 

	December 31,
	2019					2018
	Amount			Percent		Amount			Percent
	(dollars in thousands)
Commercial and industrial	$	9,382,043		44.5	%	$	7,762,642		43.8	%
Commercial real estate - non-owner occupied	5,245,634			24.8		4,213,428			23.8
Commercial real estate - owner occupied	2,316,913			11.0		2,325,380			13.1
Construction and land development	1,952,156			9.2		2,134,753			12.1
Residential real estate	2,147,664			10.2		1,204,355			6.8
Consumer	57,083			0.3		70,071			0.4
Loans, net of deferred loan fees and costs	$	21,101,493		100.0	%	$	17,710,629		100.0	%
Allowance for credit losses	(167,797		)			(152,717		)
Total loans HFI	$	20,933,696				$	17,557,912

For additional information concerning loans, see "Note 3. Loans, Leases and Allowance for Credit Losses" of the Consolidated Financial Statements contained herein or "Management's Discussion and Analysis of Financial Condition and Results of Operations—Financial Condition – Loans discussions" in Item 8 of this Form 10-K.

The Company adheres to a specific set of credit standards that are intended to ensure appropriate management of credit risk. Furthermore, the Bank's senior management team plays an active role in monitoring compliance with such standards.

Loan originations are subject to a process that includes the credit evaluation of borrowers, utilizing established lending limits, analysis of collateral, and procedures for continual monitoring and identification of credit deterioration. Loan officers actively monitor their individual credit relationships in order to report suspected risks and potential downgrades as early as possible. The BOD approves all material changes to loan policy, as well as lending limit authorities. The Bank's lending policies generally incorporate consistent underwriting standards across all geographic regions in which the Bank operates, customized as necessary to conform to state law and local market conditions. The Bank's credit culture emphasizes timely identification of troubled credits to allow management to take prompt corrective action, when necessary.

Loan Approval Procedures and Authority

The Company's loan approval procedures are executed through a tiered loan limit authorization process, which is structured as follows:

• Individual Credit Authorities. The credit approval levels for individual divisional and senior credit officers are set by policy and certain credit administration officers' approval authorities are established on a delegated basis.

• Management Loan Committees. Credits in excess of individual divisional or senior credit officer approval authority are submitted to the appropriate divisional or NBL loan committee. The divisional committees consist of members of the Bank's senior management team of each division and the NBL loan committees consist of the Bank's divisional or senior credit officers.

• Credit Administration. Credits in excess of the divisional or NBL loan committee approval authority require the additional approval of the Bank's CCO and any credits in excess of the CCO's individual approval authority are submitted to the WAB SLC. In addition, the SLC reviews all other loan approvals to any one new borrower in excess of established thresholds. The SLC is chaired by the WAB CCO and includes the Company’s CEO.

Loans to One Borrower. In addition to the limits set forth above, subject to certain exceptions, state banking laws generally limit the amount of funds that a bank may lend to a single borrower. Under Arizona law, the obligations of one borrower to a bank generally may not exceed 20% of the bank’s capital, plus an additional 10% of its capital if the additional amounts are fully secured by readily marketable collateral. Arizona law does not specifically require aggregation of loans to affiliated entities in determining compliance with the lending limit. As a matter of longstanding practice, the Arizona Department of Financial Institutions uses the same aggregation analysis as applied to national banks by the OCC.

7

Concentrations of Credit Risk. The Company's lending policies also establish customer and product concentration limits, which are based on commitment amounts, to control single customer and product exposures. The Company's lending policies have several different measures to limit concentration exposures. Set forth below are the primary segmentation limits and actual measures as of December 31, 2019:

	Percent of Total Capital
	Policy Limit		Actual
CRE	435	%	232	%
Commercial and industrial	400		289
Construction and land development	85		59
Residential real estate	100		66
Consumer	5		2

Asset Quality

General

To measure asset quality, the Company has instituted a loan grading system consisting of nine different categories. The first five are considered satisfactory "pass" ratings. The other four "non-pass" grades range from a “Special mention” category to a “Loss” category and are consistent with the grading systems used by federal banking regulators. All loans are assigned a credit risk grade at the time they are made, and each assigned loan officer reviews the credit with his or her immediate supervisor on a quarterly basis to determine whether a change in the credit risk grade is warranted. In addition, the grading of the Company's loan portfolio is reviewed on a regular basis by its internal Loan Review Department.

Collection Procedure

If a borrower fails to make a scheduled payment on a loan, Bank personnel attempt to remedy the deficiency by contacting the borrower and seeking payment. Contacts generally are made within 15 business days after the payment becomes past due. The Bank maintains regional Special Assets Departments, which generally service and collect loans rated Substandard or worse. Each division is responsible for monitoring activity that may indicate an increased risk rating, including, but not limited to, past-dues, overdrafts, and loan agreement covenant defaults. Loans deemed uncollectible are charged-off.

Nonperforming Assets

Nonperforming assets include loans past due 90 days or more and still accruing interest, non-accrual loans, TDR loans, and repossessed assets, including OREO. In general, loans are placed on non-accrual status when the Company determines that ultimate collection of principal and interest is in doubt due to the borrower’s financial condition, collateral value, and collection efforts. A TDR loan is a loan for which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. Other repossessed assets result from loans where the Company has received title or physical possession of the borrower’s assets. The Company generally re-appraises OREO and collateral dependent impaired loans every 12 months. The total net realized and unrealized gains and losses of repossessed and other assets was not significant during each of the years ended December 31, 2019, 2018, and 2017. However, losses may be experienced in future periods.

Criticized Assets

Federal bank regulators require banks to classify its assets on a regular basis. In addition, in connection with their examinations of the Bank, examiners have authority to identify problem assets and, if appropriate, re-classify them. A loan grade of "Special Mention" from the Company's internal loan grading system is utilized to identify potential problem assets and loan grades of "Substandard," "Doubtful," and "Loss" are utilized to identify actual problem assets.

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The following describes the potential and actual problem assets using the Company's internal loan grading system definitions:

• "Special Mention" (Grade 6): Generally these are assets that possess potential weaknesses that warrant management's close attention. These loans may involve borrowers with adverse financial trends, higher debt to equity ratios, or weaker liquidity positions, but not to the degree of being considered a “problem loan” where risk of loss may be apparent. Loans in this category are usually performing as agreed, although there may be non-compliance with financial covenants.

• “Substandard” (Grade 7): These assets are characterized by well-defined credit weaknesses and carry the distinct possibility that the Company will sustain some loss if such weakness or deficiency is not corrected. All loans 90 days or more past due and all loans on non-accrual status are considered at least "Substandard," unless extraordinary circumstances would suggest otherwise.

• “Doubtful” (Grade 8): These assets have all the weaknesses inherent in those classified as "Substandard" with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable, but because of certain known factors which may work to the advantage and strengthening of the asset (for example, capital injection, perfecting liens on additional collateral and refinancing plans), classification as an estimated loss is deferred until a more precise status may be determined.

• “Loss” (Grade 9): These assets are considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practicable or desirable to defer writing off the asset, even though partial recovery may be achieved in the future.

Allowance for Credit Losses

The Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses and is reflected as a reduction in earnings. Loans are charged against the allowance for credit losses when management believes that collectability of the contractual principal or interest is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance is reported at an amount believed adequate to absorb probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. For a detailed discussion of the Company’s methodology see “Management’s Discussion and Analysis and Financial Condition – Critical Accounting Policies – Allowance for Credit Losses” in Item 7 of this Form 10-K.

The Company also records estimated losses on unfunded loan commitments, which are classified as non-interest expense, with corresponding reserves in other liabilities.

Investment Activities

The Company has an investment policy, which was approved by the BOD. This policy dictates that investment decisions be made based on the safety of the investment, liquidity requirements of the Bank and holding company, potential returns, cash flow targets, and consistency with the Company's interest rate risk management. The Bank’s ALCO is responsible for making securities portfolio decisions in accordance with established policies. The CFO and Treasurer have the authority to purchase and sell securities within specified guidelines. All investment transactions for the Bank and for the holding company were reviewed by the ALCO and BOD.

Generally, the Company's investment policy limits new securities investments to the following: securities backed by the full faith and credit of the U.S. government, including U.S. treasury bills, notes, and bonds, direct obligations of Ginnie Mae, USDA and SBA loans; MBS or CMO issued by a GSE, such as Fannie Mae or Freddie Mac; debt securities issued by a GSE, such as Fannie Mae, Freddie Mac, and the FHLB; tax-exempt securities with a rating of “Single-A” or higher; preferred stock where the issuing company is rated “BBB” or higher; corporate debt with a rating of “Single-A” or better; investment grade corporate bond mutual funds; private label collateralized mortgage obligations with a single rating of “AA” or higher; commercial mortgage-backed securities with a rating of “AAA;” low income housing development bonds; and mandatory purchases of equity securities of the FRB and FHLB.

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Investment securities are further subject to the following quantitative limits of the Bank:

Securities Category	Basis Limit	Percentage or Dollar Limit
Preferred stock	Common equity tier 1	10.0	%
Tax-exempt municipal securities	Total assets	5.0	%
Tax-exempt low income housing development bonds	Total capital	30.0	%
Investment grade corporate bond mutual funds	Tier 1 capital	5.0	%
Corporate debt holdings	Total assets	2.5	%
Commercial mortgage-backed securities	Aggregate purchases	$50.0 million

The Company no longer purchases (although it may continue to hold previously acquired) CDOs. The Company's policies also govern the use of derivatives, and provide that the Company prudently use derivatives in accordance with applicable regulations as a risk management tool to reduce the overall exposure to interest rate risk, and not for speculative purposes.

As of December 31, 2019, the Company's investment securities portfolio includes debt and equity securities. Debt securities are classified as AFS or HTM pursuant to ASC Topic 320, Investments and ASC Topic 825, Financial Instruments. Equity securities are reported at fair value in accordance with Topic 321, Equity Securities. For further discussion of significant accounting policies related to the Company's investment securities portfolio refer to "Note 1. Summary of Significant Accounting Policies" in Item 8 of this Form 10-K.

As of December 31, 2019, the Company's investment securities portfolio totals $4.0 billion, representing approximately 14.8% of the Company's total assets, with the majority of the portfolio invested in AAA/AA+ rated securities. The average duration of the Company's investment securities is 4.6 years as of December 31, 2019.

The following table summarizes the carrying value of investment securities as of December 31, 2019 and 2018:

	December 31,
	2019				2018
	Amount		Percent		Amount		Percent
	(dollars in thousands)
Available-for-sale debt securities
CDO	$	10,142	0.3	%	$	15,327	0.4	%
Commercial MBS issued by GSEs	94,253		2.4		100,106		2.7
Corporate debt securities	99,961		2.5		99,380		2.7
Municipal securities	7,773		0.2		—		—
Private label residential MBS	1,129,227		28.4		924,594		25.0
Residential MBS issued by GSEs	1,412,060		35.6		1,530,124		41.4
Tax-exempt	1,039,962		26.2		841,573		22.8
Trust preferred securities	27,040		0.7		28,617		0.8
U.S. government sponsored agency securities	10,000		0.3		38,188		1.0
U.S. treasury securities	999		0.0		1,984		0.1
Total debt securities	$	3,831,417	96.5	%	$	3,579,893	96.9	%
Equity securities
CRA investments	$	52,504	1.3	%	$	51,142	1.4	%
Preferred stock	86,197		2.2		63,919		1.7
Total equity securities	$	138,701	3.5	%	$	115,061	3.1	%
Total investment securities	$	3,970,118	100.0	%	$	3,694,954	100.0	%

As of December 31, 2019 and 2018, the Company had investments in BOLI of $174.0 million and $170.1 million, respectively. BOLI is used to help offset employee benefit costs. For additional information concerning investments, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Financial Condition – Investments” in Item 7 of this Form 10-K.

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Deposit Products

The Company offers a variety of deposit products, including checking accounts, savings accounts, money market accounts, and other types of deposit accounts, including fixed-rate, fixed maturity certificates of deposit. The Company has historically focused on growing its lower cost core customer deposits. As of December 31, 2019, the deposit portfolio was comprised of 37% non-interest-bearing deposits and 63% interest-bearing deposits.

The competition for deposits in the Company's markets is strong. The Company has historically been successful in attracting and retaining deposits due to several factors, including its:

• knowledgeable and empowered bankers committed to providing personalized and responsive service that translates into long lasting relationships;

• broad selection of cash management services offered; and

• incentives to employees for business development and retention.

Deposit balances are generally influenced by national and local economic conditions, changes in prevailing interest rates, competiveness of the Company's offered rates, perceived stability of financial institutions and competition. In order to attract and retain deposits, the Company relies on providing quality service and introducing new products and services that meet the needs of its customers.

The Bank's deposit rates are determined through an internal oversight process under the direction of its ALCO. The Bank considers a number of factors when determining deposit rates, including:

• current and projected national and local economic conditions and the outlook for interest rates;

• local competition;

• loan and deposit positions and forecasts, including any concentrations in either; and

• rates charged on FHLB advances and other funding sources.

The following table shows the Company's deposit composition: 

	December 31,
	2019				2018
	Amount		Percent		Amount		Percent
	(in thousands)
Non-interest-bearing demand deposits	$	8,537,905	37.4	%	$	7,456,141	38.9	%
Interest-bearing transaction accounts	2,760,865		12.1		2,555,609		13.3
Savings and money market accounts	9,120,747		40.0		7,330,709		38.2
Time certificates of deposit ($250,000 or more)	1,426,133		6.3		1,009,900		5.3
Other time deposits	950,843		4.2		825,088		4.3
Total deposits	$	22,796,493	100.0	%	$	19,177,447	100.0	%

Although the Company does not pay interest to depositors of non-interest-bearing accounts, earnings credits are awarded to some account holders, which offset charges incurred by account holders for other services. Earnings credits earned in excess of charges incurred by account holders are recorded in deposit costs as part of non-interest expense and fluctuate as a result of deposit balances eligible for earnings credits, along with the earnings credit rates on these deposit balances.

In addition to the Company's deposit base, it has access to other sources of funding, including FHLB and FRB advances, Federal funds purchased, repurchase agreements, and unsecured lines of credit with other financial institutions. Previously, the Company has also accessed the capital markets through trust preferred, subordinated debt, and Senior Note offerings. For additional information concerning the Company's deposits, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Balance Sheet Analysis – Deposits” in Item 7 of this Form 10-K.

Other Financial Products and Services

In addition to traditional commercial banking activities, the Company offers other financial services to its customers, including internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services.

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Customer, Product, and Geographic Concentrations

Approximately 45% and 49% of the Company's loan portfolio at December 31, 2019 and 2018, respectively, was represented by CRE and construction and land development loans. The Company’s business is concentrated primarily in the Las Vegas, Los Angeles, Phoenix, Reno, San Francisco, San Jose, San Diego and Tucson metropolitan areas. Consequently, the Company is dependent on the trends of these regional economies.

Although commercial and industrial loans make up approximately 44% of the Company's loan portfolio as of December 31, 2019 and 2018, the Company does not consider this to be a significant concentration risk as these loans are well diversified in terms of customers and product offerings.

The Company's lending activities, including those within its NBLs, are driven in large part by the customers served in the market areas where the Company has offices in the states of Arizona, Nevada, and California. The following table presents a breakout of the in-footprint and out-of-footprint distribution of loans:

	December 31, 2019						December 31, 2018
	In-Footprint		Out-of-Footprint		Total		In-Footprint		Out-of-Footprint		Total
Arizona	16.2	%	2.0	%	18.2	%	18.1	%	2.5	%	20.6	%
Nevada	10.0		0.7		10.7		11.1		0.2		11.3
Southern California	10.7		—		10.7		12.2		—		12.2
Northern California	5.7		0.5		6.2		6.8		0.5		7.3
HOA Services	0.3		0.8		1.1		0.3		0.9		1.2
Hotel Franchise Finance	2.8		6.3		9.1		1.5		6.9		8.4
Public & Nonprofit Finance	6.8		1.0		7.8		7.8		1.0		8.8
Technology & Innovation	2.4		4.9		7.3		2.4		4.4		6.8
Other NBLs	13.7		15.2		28.9		10.3		13.1		23.4
Total	68.6	%	31.4	%	100.0	%	70.5	%	29.5	%	100.0	%

The Company is not dependent upon any single or limited number of customers, the loss of which would have a material adverse effect on the Company. Neither the Company nor any of its reportable segments have customer relationships that individually account for 10% or more of consolidated or segment revenues. No material portion of the Company’s business is seasonal.

Competition

The financial services industry is highly competitive. Many of the Company's competitors are much larger in total assets and capitalization, have greater access to capital markets, offer a broader range of financial services than the Company can offer, and may have lower cost structures.

This increasingly competitive environment is primarily a result of long-term changes in regulation that made mergers and geographic expansion easier, changes in technology and product delivery systems and web-based tools, and the accelerating pace of consolidation among financial services providers. The Company competes for loans, deposits, and customers with other banks, credit unions, brokerage companies, mortgage companies, insurance companies, finance companies, financial technology firms, and other non-bank financial services providers. This strong competition for deposit and loan products directly affects the interest rates on those products and the terms on which they are offered to customers.

Technological innovation continues to contribute to greater competition in domestic and international financial services markets.

Mergers between financial institutions have placed additional pressure on banks to consolidate their operations, reduce expenses, and increase revenues to remain competitive. The competitive environment is also significantly impacted by federal and state legislation that makes it easier for non-bank financial institutions to compete with the Company.

Employees

As of December 31, 2019, the Company has 1,835 full-time equivalent employees. The Company’s employees are not represented by a union or covered by a collective bargaining agreement. Management believes that its employee relations are good.

Supervision and Regulation

The Company and its subsidiaries are extensively regulated and supervised under both federal and state laws. A summary description of the laws and regulations that relate to the Company’s operations are discussed in Item 7 of this Form 10-K.

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Additional Available Information

The Company maintains an internet website at http://www.westernalliancebancorporation.com. The Company makes available its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Exchange Act and other information related to the Company free of charge, through this site, as soon as reasonably practicable after it electronically files those documents with, or otherwise furnishes them to the SEC. The SEC maintains an internet site at http://www.sec.gov, from which all forms filed electronically may be accessed. The Company’s internet website and the information contained therein are not incorporated into this Form 10-K.

In addition, copies of the Company’s annual report will be made available, free of charge, upon written request. 

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Item 1A. Risk Factors.

Investing in the Company’s common stock involves various risks, many of which are specific to the Company’s business. The discussion below addresses the material risks and uncertainties, of which the Company is currently aware, that could have a material adverse effect on the Company’s business, results of operations, and financial condition. Other risks that the Company does not know about now, or that the Company does not currently believe are significant, could negatively impact the Company’s business or the trading price of the Company’s securities. See additional discussions about credit, interest rate, market, and litigation risks in "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations."

Risks Relating to the Company's Business

The Company’s financial performance may be adversely affected by conditions in the financial markets and economic conditions generally.

The Company’s financial performance is highly dependent upon the business environment in the markets where the Company operates and in the U.S. as a whole. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity, or investor or business confidence, limitations on the availability or increases in the cost of credit and capital, increases in inflation or interest rates, government shutdowns, the imposition of tariffs on trade, natural disasters, the emergence of widespread health emergencies or pandemics, terrorist attacks, acts of war, or a combination of these or other factors. The specific impact on the Company of many of these factors is difficult to predict, could be long or short term, and may be indirect, such as disruptions in our customers' supply chain or a reduction in the demand for their products or services. A worsening of business and economic conditions generally or specifically in the principal markets in which the Company conducts business could have adverse effects, including the following:

• a decrease in deposit balances or the demand for loans and other products and services the Company offers;

• an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to the Company, which could lead to higher levels of nonperforming assets, net charge-offs, and provisions for credit losses;

• a decrease in the value of loans and other assets or in the value of collateral;

• a decrease in net interest income from the Company’s lending and deposit gathering activities;

• an impairment of certain intangible assets such as goodwill; and

• an increase in competition resulting from increasing consolidation within the financial services industry.

In the U.S. financial services industry, the commercial soundness of financial institutions is closely interrelated as a result of credit, trading, clearing or other relationships between the institutions. As a result, concerns about, or a default or threatened default by, one institution could lead to significant market-wide liquidity and credit problems, losses or defaults by other institutions. This is sometimes referred to as “systemic risk” and may adversely affect financial intermediaries, such as clearing agencies, clearing houses, banks, securities firms, and exchanges, with which the Company interacts on a daily basis, and therefore could adversely affect the Company.

It is possible that the business environment in the U.S. will experience volatility in the future. There can be no assurance that these conditions will improve in the near term or that conditions will not worsen. Such conditions could adversely affect the Company’s business, results of operations, and financial condition.

The Company is highly dependent on real estate and events that negatively impact the real estate market will hurt the Company’s business and earnings.

The Company is located in areas in which economic growth is largely dependent on the real estate market, and a majority of the Company’s loan portfolio is secured by or otherwise dependent on real estate. The market for real estate is cyclical and the outlook for this sector is uncertain. A decline in real estate activity would likely cause a decline in asset and deposit growth and negatively impact the Company’s earnings and financial condition.

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The Company’s loan portfolio consists primarily of commercial and industrial and CRE loans, which contain concentrations in certain business lines or product types that have unique risk characteristics and may expose the Company to increased lending risks.

The Company’s loan portfolio consists primarily of commercial and industrial and CRE loans, which contain material concentrations in certain business lines or product types, such as mortgage warehouse, real estate, corporate finance, municipal and nonprofit loans, as well as in specific business sectors such as technology and innovation. These loan concentrations present unique risks and involve specialized underwriting and management as they often involve large loan balances to a single borrower or group of related borrowers. Consequently, an adverse development with respect to one commercial loan or one credit relationship may adversely affect the Company. In addition, based on the nature of lending to these specialty markets, repayment of loans may be dependent upon borrowers receiving additional equity financing or, in some cases, a successful sale to a third party, public offering, or other form of liquidity event. Unforeseen adverse events, changes in regulatory policy, or a general decline in the borrower's industry may have a material adverse effect on the Company’s financial condition and results of operations.

Due to the inherent risk associated with accounting estimates, the Company’s allowance for credit losses may be insufficient, which could require the Company to raise additional capital or otherwise adversely affect the Company’s financial condition and results of operations.

Credit losses are inherent in the business of making loans. Management makes various assumptions and judgments about the collectability of the Company’s consolidated loan portfolio and maintains an allowance for estimated credit losses based on a number of factors, including the size of the portfolio, asset classifications, economic trends, industry experience and trends, industry and geographic concentrations, estimated collateral values, management’s assessment of the credit risk inherent in the portfolio, historical loan loss experience, and loan underwriting policies. In addition, the Company evaluates all loans identified as problem loans and augments the allowance based upon its estimation of the potential loss associated with those problem loans. Additions to the allowance for credit losses recorded through the Company’s provision for credit losses decrease the Company’s net income. If such assumptions and judgments are incorrect, the Company’s actual credit losses may exceed the Company’s allowance for credit losses.

At December 31, 2019, the Company's allowance for credit losses and loss contingency on unfunded loan commitments and letters of credit is $167.8 million and $9.0 million, respectively. Deterioration in the real estate market or general economic conditions could affect the ability of the Company’s loan customers to service their debt, which could result in additional loan provisions and increases in the Company’s allowance for credit losses. In addition, the Company may be required to record additional loan provisions or increase the Company’s allowance for credit losses based on new information regarding existing loans, input from regulators in connection with their review of the Company’s allowance, changes in regulatory guidance, regulations or accounting standards, identification of additional problem loans, changes in economic outlook, and other factors, both within and outside of the Company’s management’s control. Moreover, because future events are uncertain and because the Company may not successfully identify all deteriorating loans in a timely manner, there may be loans that deteriorate in an accelerated time frame.

Any increases in the provision or allowance for credit losses will result in a decrease in the Company’s net income and, potentially, capital, and may have a material adverse effect on the Company’s financial condition and results of operations. If actual credit losses materially exceed the Company’s allowance for credit losses, the Company may be required to raise additional capital, which may not be available to the Company on acceptable terms or at all. The Company’s inability to raise additional capital on acceptable terms when needed could materially and adversely affect the Company’s financial condition, results of operations, and capital.

Recent changes to the FASB accounting standards will result in a significant change to the Company’s recognition of credit losses and may materially impact the Company’s financial condition or results of operations.

The incurred loss model for recognizing credit losses was replaced with an expected loss model referred to as CECL, which became effective on January 1, 2020 and will be reported in the Company's first quarter 2020 financial results. Under the incurred loss model, the Company delays recognition of losses until it is probable that a loss has been incurred. The CECL model represents a dramatic departure from the incurred loss model.  The CECL model requires the Company to present certain financial assets carried at amortized cost, such as loans held for investment and held-to-maturity debt securities, at the net amount expected to be collected. Additionally, the measurement of expected credit losses will take place at the time the financial asset is first added to the balance sheet (with periodic updates thereafter) and will be based on current conditions, information about past events, including historical experience, and reasonable and supportable forecasts that impact the collectability of the reported amount. As such, the CECL model will materially impact how the Company determines its ACL and the Company’s ACL may experience more fluctuations under the CECL model, which may result in significant volatility in the provision for credit losses and, therefore, earnings. Upon transition from the incurred loss model to the CECL model, on January 1, 2020, the Company recognized an increase to its allowance for credit losses on loans and unfunded loan commitments of $19 million and $15 million, respectively, and established

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an allowance of $3 million on its HTM securities. These increases resulted in a one-time cumulative adjustment to retained earnings of $25 million, which is net of related tax effects. 

The Company could be subject to tax audits, challenges to its tax positions, or adverse changes or interpretations of tax laws.

The Company is subject to federal and applicable state income tax laws and regulations. Income tax laws and regulations are often complex and require significant judgment in determining the Company’s effective tax rate and in evaluating its tax positions. The Company’s determination of its tax liability is subject to review by applicable tax authorities. Any audits or challenges of such determinations may adversely affect the Company’s effective tax rate, tax payments or financial condition.

U.S. tax legislation enacted in late 2017 made significant changes to federal tax law, including the taxation of corporations, by, among other things, reducing the corporate income tax rate, disallowing certain deductions that had previously been allowed, and altering the expensing of capital expenditures. Further changes in tax laws, changes in interpretations, guidance or regulations that may be promulgated, or challenges to judgments or actions that the Company may take with respect to tax laws could negatively impact the Company's business.

Because of the geographic concentration of the Company’s assets, changes in local economic conditions could adversely affect the Company’s business and results of operations.

The Company’s business is primarily concentrated in selected markets in Arizona, California, and Nevada. As a result of this geographic concentration, the Company’s financial condition and results of operations depend largely upon economic conditions in these market areas. Deterioration in economic conditions in these markets could result in one or more of the following: an increase in loan delinquencies and charge-offs; an increase in problem assets and foreclosures; a decrease in the demand for the Company’s products and services; or a decrease in the value of collateral for loans, especially real estate.

The Company’s financial instruments expose the Company to certain market risks and may increase the volatility of earnings and AOCI.

The Company holds certain financial instruments measured at fair value. For those financial instruments measured at fair value, the Company is required to recognize the changes in the fair value of such instruments in earnings or AOCI each quarter. Therefore, any increases or decreases in the fair value of these financial instruments have a corresponding impact on reported earnings or AOCI. Fair value can be affected by a variety of factors, many of which are beyond the Company’s control, including the Company’s credit position, interest rate volatility, capital markets volatility, and other economic factors. Accordingly, the Company is subject to mark-to-market risk and the application of fair value accounting may cause the Company’s earnings and AOCI to be more volatile than would be suggested by the Company’s underlying performance.

If the Company loses a significant portion of its core deposits or a significant deposit relationship, or its cost of funding deposits increases significantly, the Company's liquidity and/or profitability would be adversely impacted.

The Company’s success depends on its ability to maintain sufficient liquidity to fund its current obligations and support loan growth and, specifically, to attract and retain a stable base of relatively low-cost deposits. The competition for these deposits in the Company's markets is strong and customers may demand higher interest rates on their deposits or seek other investments offering higher rates of return. The Company offers reciprocal deposit products, through third party networks to customers seeking federal insurance for deposit amounts that exceed the applicable deposit insurance limit at a single institution. The Company also from time to time offers other credit enhancements to depositors, such as FHLB letters of credit and, for certain deposits of public monies, pledges of collateral in the form of readily marketable securities. Any event or circumstance that interferes with or limits the Company's ability to offer these products to customers that require greater security for their deposits, such as a significant regulatory enforcement action or a significant decline in capital levels at the Company's bank subsidiary, could negatively impact the Company's ability to attract and retain deposits. If the Company were to lose a significant deposit relationship or a significant portion of its low-cost deposits, the Company would be required to borrow from other sources at higher rates and the Company's liquidity and profitability would be adversely impacted.

From time to time, the Company has utilized borrowings from the FHLB and the FRB, and there can be no assurance these programs will be available as needed.

As of December 31, 2019, the Company has no borrowings from the FHLB of San Francisco or the FRB. However, in the past, the Company has utilized borrowings from the FHLB of San Francisco and the FRB to satisfy its short-term liquidity needs. The Company’s borrowing capacity is generally dependent on the value of its collateral pledged to these entities. These lenders could reduce the Company’s borrowing capacity or eliminate certain types of collateral and could otherwise modify or even terminate their loan programs. Any change or termination could have an adverse effect on the Company’s liquidity and profitability.

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The Company's business may be adversely affected by fraud.

As a financial institution, the Company is inherently exposed to a wide range of operational risks, including, but not limited to, theft and other fraudulent activity by employees, customers, and other third parties targeting the Company and/or the Company’s customers or data. Such activity may take many forms, including check fraud, electronic fraud, wire fraud, phishing, social engineering and other dishonest acts.

Although the Company devotes substantial resources to maintaining effective policies and internal controls to identify and prevent such incidents, given the persistence and increasing sophistication of possible perpetrators, the Company may experience financial losses or reputational harm as a result of fraud.

A failure in or breach of the Company’s operational or security systems or infrastructure, or those of the Company’s third-party vendors and other service providers, including as a result of cyber-attacks, could disrupt the Company’s businesses, result in the disclosure or misuse of confidential or proprietary information, damage the Company’s reputation, increase the Company’s costs, and cause losses.

The Company’s operations rely on the secure processing, storage, and transmission of confidential and other information. Although the Company takes numerous protective measures to maintain the confidentiality, integrity, and availability of the Company’s and its customers’ information across all geographies and product lines, and endeavors to modify these protective measures as circumstances warrant, the nature of the threats continues to evolve. As a result, the Company’s computer systems, software, and networks and those of the Company’s customers and third-party vendors may be vulnerable to unauthorized payments and account access, loss or destruction of data (including confidential client information), account takeovers, unavailability of service, computer viruses or other malicious code, cyber-attacks, and other events that could have an adverse security impact and result in significant losses to the Company and/or its customers. These threats may originate externally from increasingly sophisticated third parties, including foreign governments, organized criminal groups, and other hackers, or from outsourced or infrastructure-support providers and application developers, or the threats may originate from within the Company’s organization.

The Company also faces the risk of operational disruption, failure, termination, or capacity constraints of any of the third parties that facilitate the Company’s business activities, including vendors, exchanges, clearing agents, clearing houses, or other financial intermediaries. Such parties could also be the source or cause of an attack on, or breach of, the Company’s operational systems, data or infrastructure. In addition, the Company may be at risk of an operational failure with respect to its customers’ systems. The Company’s risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, the outsourcing of many of the Company’s business operations, and the continued uncertain global economic environment. As cyber threats continue to evolve, the Company may be required to expend significant additional resources to continue to modify or enhance its protective measures or to investigate and remediate any information security vulnerabilities.

The Company maintains insurance policies that it believes provide reasonable coverage at a manageable expense for an institution of the Company’s size and scope with similar technological systems. However, the Company cannot assure that these policies will afford coverage for all possible losses or would be sufficient to cover all financial losses, damages, or penalties, including lost revenues, should the Company experience any one or more of its or a third party’s systems failing or experiencing an attack.

The Company relies on third parties to provide key components of its business infrastructure.

The Company relies on third parties to provide key components for its business operations, such as data processing and storage, recording and monitoring transactions, online banking interfaces and services, internet connections, and network access. While the Company selects these third-party vendors carefully, it does not control their actions. Any problems caused by these third parties, including those resulting from breakdowns or other disruptions in communication services provided by a vendor, failure of a vendor to handle current or higher volumes, cyber-attacks and security breaches at a vendor, failure of a vendor to provide services for any reason, or poor performance by a vendor, could adversely affect the Company’s ability to deliver products and services to its customers and otherwise conduct its business. Financial or operational difficulties of a third-party vendor could also hurt the Company’s operations if those difficulties interfere with the vendor's ability to serve the Company. Replacing these third-party vendors also could create significant delays and expense. Any of these things could adversely affect the Company’s business and financial performance.

A change in the Company’s creditworthiness could increase the Company’s cost of funding or adversely affect its liquidity.

Market participants regularly evaluate the Company’s creditworthiness and the creditworthiness of the Company’s long-term debt based on a number of factors, some of which are not entirely within the Company’s control, including the Company’s financial strength and conditions within the financial services industry generally. There can be no assurance that the Company's perceived creditworthiness will remain the same. Changes could adversely affect the cost and other terms upon which the Company is able to obtain funding and its access to the capital markets, and could increase the Company’s cost of capital. Likewise, any loss of or

17

decline in the credit rating assigned to WAB could impair its ability to attract deposits or to obtain other funding sources, or increase its cost of funding.

The Company's controls and processes, its reporting systems and procedures, and its operational infrastructure may not be able to keep pace with its growth, which could cause it to experience compliance and operational problems or lose customers, or incur additional expenditures beyond current projections, any one of which could adversely affect the Company’s financial results.

The Company’s future success will depend on the ability of officers and other key employees to effectively implement solutions designed to improve operational, credit, financial, management and other internal risk controls and processes, as well as improve reporting systems and procedures, while at the same time maintaining and growing existing businesses and client relationships. The Company may not successfully implement such changes or improvements in an efficient or timely manner, or it may discover deficiencies in its existing systems and controls that adversely affect the Company’s ability to support and grow its existing businesses and client relationships, and could require the Company to incur additional expenditures to expand its administrative and operational infrastructure. If the Company is unable to maintain and implement improvements to its controls, processes, and reporting systems and procedures, the Company may lose customers, experience compliance and operational problems or incur additional expenditures beyond current projections, any one of which could adversely affect the Company’s financial results.

The Company’s expansion strategy may not prove to be successful and its market value and profitability may suffer.

The Company continually evaluates expansion through acquisitions of banks and other financial assets and businesses. Like previous acquisitions by the Company, any future acquisitions will be accompanied by risks commonly encountered in such transactions, including, among other things:

• time and expense incurred while identifying, evaluating and negotiating potential acquisitions and transactions;

• difficulty in accurately estimating the value of target companies or assets and in evaluating target companies' or assets’ credit, operations, management, and market risks;

• potential payment of a premium over book and market values that may cause dilution of the Company’s tangible book value or earnings per share;

• exposure to unknown or contingent liabilities of the target company;

• potential exposure to asset quality issues of the target company;

• difficulty of integrating the operations and personnel;

• potential disruption of the Company’s ongoing business;

• failure to retain key personnel at the acquired business;

• inability of the Company’s management to maximize its financial and strategic position by the successful implementation of uniform product offerings and the incorporation of uniform technology into the Company’s product offerings and control systems; and

• failure to realize any expected revenue increases, cost savings, and other projected benefits from an acquisition.

The Company expects that competition for suitable acquisition candidates may be significant. The Company may compete with other banks or financial service companies with similar acquisition strategies, many of which are larger and have greater financial and other resources. The Company cannot assure that it will be able to successfully identify and acquire suitable acquisition targets on acceptable terms and conditions, or that it will be able to obtain the regulatory approvals needed to complete any such transactions.

The Company cannot provide any assurance that it will be successful in overcoming these risks or any other problems encountered in connection with acquisitions. Potential regulatory enforcement actions could also adversely affect the Company's ability to engage in certain acquisition activities. The Company’s inability to overcome the risks inherent in the successful completion and integration of acquisitions could have an adverse effect on the achievement of the Company's business strategy.

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There are substantial risks and uncertainties associated with the introduction or expansion of lines of business or new products and services within existing lines of business.

From time to time, the Company may implement new lines of business, offer new products and services within existing lines of business, or offer existing products or services to new industries or market segments. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed or industries are heavily regulated. In developing and marketing new lines of business and/or new products and services, the Company may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved and price and profitability targets may not prove attainable. External factors, such as compliance with laws and regulations, competitive alternatives, and shifting market preferences or government policies, may also impact the successful implementation of a new line of business, product or service or the offering of existing products and services to an emerging industry. Furthermore, any new line of business and/or new product or service could have a significant impact on the effectiveness of the Company’s system of internal controls. Failure to successfully manage these risks in the development and implementation of new lines of business or new products or services could have a material adverse effect on the Company’s business, results of operations, and financial condition.

The Company’s future success depends on its ability to compete effectively in a highly competitive and rapidly evolving market.

The Company faces substantial competition in all phases of its operations from a variety of different competitors. The Company’s competitors, including large commercial banks, community banks, thrift institutions, mutual savings banks, credit unions, finance companies, insurance companies, securities dealers, brokers, mortgage bankers, investment advisors, money market mutual funds, and other financial institutions, compete with lending and deposit-gathering services offered by the Company. Increased competition in the Company’s markets may result in reduced loans and deposits or less favorable pricing.

There is competition for financial services in the markets in which the Company conduct its businesses, including from many local commercial banks, as well as numerous national and regionally based commercial banks. In particular, the Company has experienced intense price and terms competition in some of the lending lines of business and deposits in recent years. Many of these competing institutions have much greater financial and marketing resources than the Company has. Due to their size, larger competitors can achieve economies of scale and may offer a broader range of products and services or more attractive pricing than the Company. In addition, some of the financial services organizations with which the Company competes are not subject to the same degree of regulation as is imposed on bank holding companies and federally insured depository institutions. As a result, these non-bank competitors have certain advantages over the Company in accessing funding and in providing various services.

The banking business in the Company’s primary market areas is very competitive, and the level of competition facing the Company may increase further, which may limit its asset growth and financial results. In particular, the Company's predominate source of revenue is net interest income from its loan portfolio. Therefore, if the Company is unable to compete effectively, including sustaining loan and deposit growth at its historical levels, its business and results of operations may be adversely affected.

The financial services industry also is facing increasing competitive pressure from the introduction of disruptive new technologies, often by non-traditional competitors and financial technology companies. Among other things, technology and other changes are allowing customers to complete financial transactions that historically have involved banks at one or both ends of the transaction. The elimination of banks as intermediaries for certain transactions, as well as further disruption of traditional bank businesses and products by non-banks, could result in the loss of fee income and deposits and otherwise adversely affect our business and results.

The Company’s success is dependent upon its ability to recruit and retain qualified employees, including members of its divisional and business line leadership and management teams.

The Company’s business plan includes and is dependent upon hiring and retaining highly qualified and motivated executives and employees at every level. In particular, the Company’s relative success to date has been partly the result of its management’s ability to identify and retain highly qualified employees in administrative support roles, as well as those with expertise in certain specialty areas or that have long-standing relationships in their communities or markets. These professionals bring with them valuable knowledge, specialized skills and expertise, and customer relationships and have been an integral part of the Company’s ability to attract deposits and to expand its market share.

Additionally, as part of the Company's strategy, the Company depends on divisional and business line leadership and management teams in each of its significant geographic locations. In addition to their skills and experience as bankers, these persons provide the Company with extensive ties within markets upon which the Company’s competitive strategy is based.

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The Company’s ability to retain these highly qualified and motivated persons may be hindered by the fact that it has not entered into employment agreements with most of them. The Company incentivizes employee retention through its equity incentive plans; however, the Company cannot guarantee the effectiveness of its equity incentive plans in retaining these key employees and executives. Were the Company to lose key employees, it may not be able to replace them with equally qualified persons who bring the same knowledge of and ties to the communities and markets within which the Company operates. If the Company is unable to hire or retain qualified employees, it may not be able to successfully execute its business strategy or may incur additional costs to achieve its objectives.

The Company could be harmed if its succession planning is inadequate to mitigate the loss of key members of its senior management team.

The Company believes that its senior management team, including, but not limited to, Robert Sarver, its Executive Chairman and Kenneth Vecchione, its CEO, have contributed greatly to its performance. In addition, the Company from time to time experiences retirements and other changes to its senior management team. The Company's future performance depends on a smooth transition of its senior management, including finding and training highly qualified replacements who are properly equipped to lead the Company. The Company has adopted retention strategies, including equity awards, from which its senior management team benefits in order to achieve its goals, and entered into an employment agreement with Mr. Vecchione, which expires in 2020. However, the Company cannot assure its succession planning and retention strategies will be effective and the loss of senior management could have an adverse effect on the Company’s business.

The Company's risk management practices may prove to be inadequate or not fully effective.

The Company's risk management framework seeks to mitigate risk and appropriately balance risk and return. The Company has established policies and procedures intended to identify, monitor, and manage the types of risk to which it is subject, including, but not limited to, credit risk, market risk, liquidity risk, operational risk, legal and compliance risk, and reputational risk. A BOD level risk committee approves and reviews the Company's key risk management policies and oversees operation of the Company's risk management framework. Although the Company has devoted significant resources to developing its risk management policies and procedures and expects to continue to do so in the future, these policies and procedures, as well as the Company's risk management techniques, may not be fully effective. In addition, as regulations and the markets in which the Company operates continue to evolve, the Company's risk management framework may not always keep sufficient pace with those changes. If the Company's risk management framework does not effectively identify or mitigate its risks, the Company could suffer unexpected losses or other material adverse impact. Management of the Company's risks in some cases depends upon the use of analytical and/or forecasting models. If the models the Company uses to mitigate these risks are inadequate, or are subject to ineffective governance, the Company may incur increased losses. In addition, there may be risks that exist, or that develop in the future, that the Company has not appropriately anticipated, identified, or mitigated.

The Company's internal controls and procedures may fail or be circumvented and the accuracy of the Company's judgments and estimates about financial and accounting matters may impact operating results and financial condition.

The Company's management regularly reviews and updates its internal controls over financial reporting, disclosure controls and procedures, and corporate governance policies and procedures. Any system of controls and procedures, however well designed and operated, is based in part on certain assumptions and can provide only reasonable, not absolute, assurances that the objectives of the system are met.  Any failure or circumvention of the Company's controls and procedures, or failure to comply with regulations related to controls and procedures, could result in materially inaccurate reported financial statements and/or have a material adverse effect on the Company's business, results of operations, and financial condition. Similarly, the Company's management makes certain estimates and judgments in preparing the Company's financial statements.  The quality and accuracy of those estimates and judgments will impact the Company's operating results and financial condition.

If the Company is unable to understand and adapt to technological change, the Company’s business could be adversely affected.

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services. The effective use of technology can increase efficiency and enable financial institutions to better serve customers and to reduce costs. However, some new technologies needed to compete effectively result in incremental operating costs. The Company’s future success depends, in part, upon its ability to address the needs of its customers by using technology to provide products and services that will satisfy customer demands, as well as to create additional efficiencies in operations. Many of the Company’s competitors, because of their larger size and available capital, have substantially greater resources to invest in technological improvements. The Company may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to its customers. Failure to successfully keep pace with technological change affecting the financial services industry could have a material adverse impact on the Company’s business and, in turn, its financial condition and results of operations.

20

The markets in which the Company operates are subject to the risk of both natural and man-made disasters.

Many of the real and personal properties securing the Company's loans are located in California. Much of California experiences wildfires from time to time that cause significant damage throughout the state. While these wildfires did not significantly damage the Company's own properties, it is possible that its borrowers may experience losses as a result, which may materially impair their ability to meet the terms of their obligations. California is also prone to other natural disasters, including, but not limited to, drought, earthquakes, flooding, and mudslides. Additional significant natural or man-made disasters in the state of California or in the Company's other markets could lead to damage or injury to the Company's own properties and/or employees, and could increase the risk that many of its borrowers may experience losses or sustained job interruption, which may materially impair their ability to maintain deposits or meet the terms of their loan obligations. Therefore, additional natural disasters, a man-made disaster or a catastrophic event, or a combination of these or other factors, in any of the Company's markets could have a material adverse effect on the Company's business, financial condition, results of operations, and cash flows.

Risks Related to the Banking Industry

The Company operates in a highly regulated environment and the laws and regulations that govern the Company’s operations, corporate governance, executive compensation, and accounting principles, or changes in them, or the Company’s failure to comply with them, may adversely affect the Company.

The Company is subject to extensive regulation, supervision, and legislation that govern almost all aspects of its operations. Intended to protect customers, depositors, and the DIF, these laws and regulations, among other matters, prescribe minimum capital requirements, impose limitations on the business activities in which the Company can engage, require monitoring and reporting of suspicious activity and of customers who are perceived to present a heightened risk of money laundering or other illegal activity, limit the dividends or distributions that WAB can pay to the Company or that the Company can pay to its stockholders, restrict the ability of affiliates to guarantee the Company’s debt, impose certain specific accounting requirements on the Company that may be more restrictive and may result in greater or earlier charges to earnings or reductions in the Company’s capital than does GAAP, among other things. Compliance with laws and regulations can be difficult and costly, and changes to laws and regulations often impose significant additional compliance costs. To the extent the Company continues to grow larger and become more complex, regulatory oversight and risk and the cost of compliance will likely increase, which may adversely affect the Company. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Supervision and Regulation” included in this Form 10-K for a more detailed summary of the regulations and supervision to which the Company are subject.

Changes to the legal and regulatory framework governing the Company’s operations, including the passage and continued implementation of the Dodd-Frank Act and EGRRCPA, have drastically revised the laws and regulations under which the Company operates. In general, bank regulators have increased their focus on risk management and regulatory compliance, and the Company expects this focus to continue. Additional compliance requirements may be costly to implement, may require additional compliance personnel, and may limit the Company’s ability to offer competitive products to its customers.

The Company is also subject to changes in federal and state law, as well as regulations and governmental policies, income tax laws, and accounting principles. Regulations affecting banks and other financial institutions are undergoing continuous review and frequently change, and the ultimate effect of such changes cannot be predicted. Regulations and laws may be modified at any time, and new legislation may be enacted that will affect the Company, WAB, and the Company’s other subsidiaries. Any changes in federal and state law, as well as regulations and governmental policies, income tax laws, and accounting principles, could affect the Company in substantial and unpredictable ways, including ways that may adversely affect the Company’s business, financial condition, or results of operations. Failure to appropriately comply with any such laws, regulations or principles or an alleged failure to comply, even if the Company acted in good faith or the alleged failure reflects a difference in interpretation, could result in sanctions by regulatory agencies, civil money penalties or damage to the Company’s reputation, all of which could adversely affect the Company’s business, financial condition, or results of operations.

21

State and federal banking agencies periodically conduct examinations of the Company’s business, including compliance with laws and regulations, and the Company’s failure to comply with any supervisory actions to which the Company is or becomes subject as a result of such examinations may adversely affect the Company.

State and federal banking agencies periodically conduct examinations of the Company’s business, including for compliance with laws and regulations. If, as a result of an examination, an agency were to determine that the financial condition, capital resources, asset quality, earnings prospects, management, liquidity, or other aspects of any of the Company’s operations had become unsatisfactory, or that the Company or its management was in violation of any law or regulation, federal banking agencies may take a number of different remedial or enforcement actions it deems appropriate to remedy such a deficiency. These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative actions to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in the Company’s capital, to restrict the Company’s growth, and to assess civil monetary penalties against the Company and/or officers or directors, and to remove officers and directors. If the FDIC concludes that such conditions cannot be corrected or there is an imminent risk of loss to depositors, it may terminate WAB’s deposit insurance. Under Arizona law, the state banking supervisory authority has many of the same enforcement powers with respect to its state-chartered banks. Finally, the CFPB has the authority to examine the Company and has authority to take enforcement actions, including the issuance of cease-and-desist orders or civil monetary penalties against the Company if it finds that the Company offers consumer financial products and services in violation of federal consumer financial protection laws or in an unfair, deceptive, or abusive manner.

If the Company were unable to comply with regulatory directives in the future, or if the Company were unable to comply with the terms of any future supervisory requirements to which the Company may become subject, then it could become subject to a variety of supervisory actions and orders, including cease and desist orders, prompt corrective actions, MOUs, and/or other regulatory enforcement actions. If the Company’s regulators were to take such supervisory actions, then the Company could, among other things, become subject to restrictions on its ability to enter into acquisitions and develop any new business, as well as restrictions on its existing business. The Company also could be required to raise additional capital, dispose of certain assets and liabilities within a prescribed period of time, or both. Failure to implement the measures in the time frames provided, or at all, could result in additional orders or penalties from federal and state regulators, which could result in one or more of the remedial actions described above. In the event the Company was ultimately unable to comply with the terms of a regulatory enforcement action, it could fail and be placed into receivership by the FDIC or the chartering agency. The terms of any such supervisory action and the consequences associated with any failure to comply therewith could have a material negative effect on the Company’s business, operating flexibility, and financial condition.

Uncertainty about the future of LIBOR, and its accepted alternatives, may adversely affect our business.

The United Kingdom Financial Conduct Authority, the agency that regulates LIBOR, has announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021, which may result in the use of LIBOR in financial contracts being phased out by the end of 2021. The ARRC has proposed that the SOFR represents best practice as the alternative to LIBOR for use in derivatives and other financial contracts that are currently indexed to LIBOR. ARRC has proposed a paced market transition plan to SOFR from LIBOR and organizations are currently working on industry wide and company specific transition plans as it relates to derivatives and cash markets exposed to LIBOR. It is not possible at this time to predict what rate or rates may become accepted alternatives to LIBOR, or what the effect of any such changes in views or alternatives may be on the markets for LIBOR-indexed financial instruments. The market transition away from LIBOR to an alternative reference rate, such as the SOFR, is complex and could have a range of adverse effects on our loan and lease and investment portfolios, asset-liability management, business, financial condition and results of operations. LIBOR is the reference rate for many transactions in which the Company lends and borrows money, issues, purchases and sells securities and enters into derivative contracts to manage its or its customers’ risk related to these transactions. Accordingly, management has established a LIBOR transition team to lead the Company in the execution of its project plan. Despite these efforts, the manner and impact of this transition and related developments, as well as the effect of these developments on the Company's funding costs, investment and trading securities portfolios, and business, is uncertain and could have a material adverse impact on the Company's profitability.

22

Changes in interest rates and increased rate competition could adversely affect the Company’s profitability, business, and prospects.

Most of the Company’s assets and liabilities are monetary in nature, which subjects the Company to significant risks from changes in interest rates and can impact the Company’s net income and the valuation of its assets and liabilities. Increases or decreases in prevailing interest rates could have an adverse effect on the Company’s business, asset quality, and prospects. The Company derives substantially all of its revenue from net interest income and, therefore, its operating income and net income depend to a great extent on its net interest margin. Net interest margin is the difference between the interest yields the Company receives on loans, securities, and other earning assets and the interest rates the Company pays on interest-bearing deposits, borrowings, and other liabilities. These rates are highly sensitive to many factors beyond the Company’s control, including competition, general economic conditions, and monetary and fiscal policies of various governmental and regulatory authorities, including the FRB. In a rising rate environment, the rate of interest the Company pays on its interest-bearing deposits, borrowings, and other liabilities may increase more quickly than the rate of interest the Company receives on loans, securities, and other earning assets, which could adversely impact the Company’s net interest income and earnings. The Company’s earnings also could be adversely affected in a declining rate environment if the rates on the Company’s loans and other investments fall more quickly than those on its deposits and other liabilities. Because of the Company's relatively high reliance on net interest income, its revenue and earnings are more sensitive to changes in market rates than other financial institutions that have more diversified sources of revenue. The Company experiences substantial competition on the basis of interest rates for both loans and deposits.

In addition, loan volumes are affected by market interest rates on loans. Lower interest rates are usually associated with higher loan originations, while rising interest rates are generally associated with a lower volume of loan originations. Conversely, in falling interest rate environments, loan repayment rates will increase and, in rising interest rate environments, loan repayment rates will decline. The Company cannot guarantee that it will be able to minimize interest rate risk. In addition, an increase in the general level of interest rates may adversely affect the ability of certain borrowers to pay the interest on and principal of their obligations.

Interest rates also affect how much money the Company can lend. When interest rates rise, the cost of borrowing increases. Accordingly, changes in market interest rates could materially and adversely affect the Company’s net interest income, asset quality, loan origination volume, business, financial condition, results of operations, and cash flows.

The Company is exposed to risk of environmental liabilities with respect to properties to which the Company obtains title.

Approximately 55% of the Company’s loan portfolio at December 31, 2019 was secured by real estate. In the course of the Company’s business, the Company may foreclose on and take title to real estate, and could be subject to environmental liabilities with respect to these properties. The Company may be held liable to a governmental entity or to third parties for property damage, personal injury, investigation, and clean-up costs incurred by these parties in connection with environmental contamination, or may be required to investigate or clean up hazardous or toxic substances, or chemical releases at a property. The costs associated with investigation or remediation activities could be substantial. In addition, if the Company is the owner or former owner of a contaminated site, the Company may be subject to common law claims by third parties based on damages and costs resulting from environmental contamination emanating from the property. These costs and claims could be substantial and adversely affect the Company’s business and prospects.

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Risks Related to the Company's Common Stock

The price of the Company’s common stock may fluctuate significantly in the future.

The price of the Company’s common stock on the New York Stock Exchange constantly changes. The Company expects that the market price of its common stock will continue to fluctuate and there can be no assurances about the market price for its common stock.

The Company’s stock price may fluctuate as a result of a variety of factors, many of which are beyond the Company’s control. These factors include:

• actual or anticipated changes in the political climate or public policy, including international trade policy;

• sales of the Company’s equity securities;

• the Company’s financial condition, performance, creditworthiness, and prospects;

• quarterly variations in the Company’s operating results or the quality of its assets;

• operating results that vary from the expectations of management, securities analysts, and investors;

• changes in expectations as to the Company’s future financial performance;

• announcements of strategic developments, acquisitions, and other material events by the Company or its competitors;

• the operating and securities price performance of other companies that investors believe are comparable to the Company;

• the credit, mortgage, and housing markets, the markets for securities relating to mortgages or housing, and developments with respect to financial institutions generally;

• changes in interest rates and the slope of the yield curve;

• changes in national and global financial markets and economies and general market conditions, such as interest or foreign exchange rates, stock, commodity or real estate valuations or volatility and other geopolitical, regulatory or judicial events; and

• the Company’s past and future dividend and share repurchase practices.

There may be future sales or other dilution of the Company’s equity, which may adversely affect the market price of the Company’s common stock.

The Company is not restricted from issuing additional common stock, including any securities that are convertible into or exchangeable for, or that represent the right to receive, common stock. The Company also grants a significant number of shares of common stock to employees and directors under the Company’s Incentive Plan each year. The issuance of any additional shares of the Company’s common stock or preferred stock or securities convertible into, exchangeable for or that represent the right to receive common stock, or the exercise of such securities could be substantially dilutive to stockholders of the Company’s common stock. Holders of the Company’s common stock have no preemptive rights that entitle such holders to purchase their pro rata share of any offering of shares of any class or series. Because the Company’s decision to issue securities in any future offering will depend on market conditions, its acquisition activity, and other factors, the Company cannot predict or estimate the amount, timing, or nature of its future offerings. Thus, the Company’s stockholders bear the risk of the Company’s future offerings reducing the market price of the Company’s common stock and diluting their stock holdings in the Company.

There can be no assurance that the Company will continue to declare cash dividends or repurchase stock.

On June 4, 2019, the Company announced that its BOD authorized the initiation of regular quarterly dividends pursuant to which the Company intends to pay dividends on its common stock, subject to quarterly declarations by the BOD. During 2019, the Company declared and paid two quarterly cash dividends of $0.25 per common share. In December 2018, the Company adopted a common stock repurchase program, pursuant to which the Company was authorized to repurchase up to $250.0 million of its outstanding common stock through December 2019. During 2019, the Company repurchased an aggregate of 2,822,402 shares of common stock. The common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

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The Company’s dividend payments and/or stock repurchases may change from time-to-time, and no assurance can be provided that it will continue to declare dividends and/or repurchase stock in any particular amounts or at all. Dividends and/or stock repurchases are subject to capital availability and the discretion of the Company’s BOD, which must evaluate, among other things, whether cash dividends and/or stock repurchases are in the best interest of its stockholders and are in compliance with all applicable laws and any agreements containing provisions that limit the Company’s ability to declare and pay cash dividends and/or repurchase stock. In addition, the amount the Company spends and the number of shares that it is able to repurchase under its stock repurchase program may be further affected by a number of other factors, including the stock price and blackout periods in which the Company is restricted from repurchasing shares. A reduction in or elimination of the Company’s dividend payments, dividend program and/or stock repurchases could have a negative effect on the Company’s stock price.

Offerings of debt, which would be senior to the Company’s common stock upon liquidation, and/or preferred equity securities that may be senior to the Company’s common stock for purposes of dividend distributions or upon liquidation, may adversely affect the market price of the Company’s common stock.

The Company may from time to time issue debt securities, borrow money through other means, or issue preferred stock. From time to time the Company borrows money from the FRB, the FHLB, other financial institutions, and other lenders. At December 31, 2019, the Company had outstanding $175,000,000 of 6.25% subordinated debentures with a maturity date of July 1, 2056, and WAB had outstanding $150,000,000 aggregate principal amount of 5.00% Fixed-to-Floating Rate Subordinated Notes due July 15, 2025. All of these securities or borrowings have priority over the common stock in a liquidation, which could affect the market price of the Company’s stock.

The Company’s BOD is authorized to issue one or more classes or series of preferred stock from time to time without any action on the part of the stockholders. The Company’s BOD also has the power, without stockholder approval, to set the terms of any such classes or series of preferred stock that may be issued, including voting rights, dividend rights, and preferences over the Company’s common stock with respect to dividends or upon the Company’s dissolution, winding-up, and liquidation and other terms. If the Company issues preferred stock in the future that has a preference over its common stock, with respect to the payment of dividends or upon the Company’s liquidation, dissolution, or winding up, or if the Company issues preferred stock with voting rights that dilute the voting power of its common stock and/or the rights of holders of its common stock, the market price of its common stock could be adversely affected.

Anti-takeover provisions could negatively impact the Company’s stockholders.

Provisions of Delaware law and provisions of the Company’s Certificate of Incorporation, as amended, and its Amended and Restated Bylaws could make it more difficult for a third party to acquire control of the Company or have the effect of discouraging a third party from attempting to acquire control of the Company. Additionally, the Company’s Certificate of Incorporation, as amended, authorizes the Company’s BOD to issue additional series of preferred stock and such preferred stock could be issued as a defensive measure in response to a takeover proposal. These provisions could make it more difficult for a third party to acquire the Company even if an acquisition might be in the best interest of the Company’s stockholders.

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Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

The Company and WAB are headquartered at One E. Washington Street in Phoenix, Arizona. WAB operates 38 domestic branch locations, which include six executive and administrative offices, of which 20 of these locations are owned and 18 are leased.  The Company also has several loan production offices across the United States. In addition, WAB owns and occupies a 36,000 square foot operations facility in Las Vegas, Nevada.  See "Item 1. Business” for location cities. For information regarding rental payments, see "Note 4. Premises and Equipment" of the Consolidated Financial Statements included in this Form 10-K.

Item 3. Legal Proceedings

There are no material pending legal proceedings to which the Company is a party or to which any of its properties are subject. There are no material proceedings known to the Company to be contemplated by any governmental authority. See the “Supervision and Regulation” section of "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Form 10-K for additional information. From time to time, the Company is involved in a variety of litigation matters in the ordinary course of its business and anticipates that it will become involved in new litigation matters in the future.

Item 4. Mine Safety Disclosures

Not applicable.

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PART II

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Market Information

The Company’s common stock began trading on the New York Stock Exchange under the symbol “WAL” on June 30, 2005. The Company has filed, without qualifications, its 2019 Domestic Company Section 303A CEO Certification regarding its compliance with the NYSE’s corporate governance listing standards.

Holders

At December 31, 2019, there were approximately 1,476 stockholders of record. This number does not include stockholders who hold shares in the name of brokerage firms or other financial institutions. The Company is not provided the exact number of or identities of these stockholders. There are no other classes of common equity outstanding.

Dividends

During the fourth quarter of 2019, the Company's Board of Directors approved a cash dividend of $0.25 per share. The dividend payment to shareholders totaled $25.6 million and was paid on November 29, 2019.

Share Repurchases

The following table provides information about the Company's purchases of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act for the periods indicated:

	Total Number of Shares Purchased (1)(2)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares That May Yet to be Purchased Under the Plans or Programs
October 2019	21,998	$	48.80	20,000	$	97,874,800
November 2019	44,399	51.43		44,399	95,591,561
December 2019	24,530	53.23		24,400	94,293,079
Total	90,927	$	51.28	88,799	$	94,293,079

(1) Shares purchased during the period outside of the publicly announced repurchase program were transferred to the Company from employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted stock awards during the period.

(2) On December 12, 2018, the Company announced that it had adopted a common stock repurchase program, pursuant to which the Company was authorized to repurchase up to $250 million of its shares of common stock through December 31, 2019. The Company had $94.3 million in authorized common stock repurchase capacity that expired under the original program as of December 31, 2019. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

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Performance Graph

The following graph summarizes a five year comparison of the cumulative total returns for the Company’s common stock, the Standard & Poor’s 500 stock index and the KBW Regional Banking Total Return Index, each of which assumes an initial value of $100.00 on December 31, 2014 and reinvestment of dividends.

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Item 6. Selected Financial Data.

The following selected financial data have been derived from the Company’s consolidated financial condition and results of operations, as of and for the years ended December 31, 2019, 2018, 2017, 2016, and 2015, and should be read in conjunction with the Consolidated Financial Statements and the related notes included elsewhere in this report: 

	Year Ended December 31,
	2019		2018		2017		2016		2015
	(in thousands)
Results of Operations:
Interest income	$	1,225,045	$	1,033,483	$	845,513	$	700,506	$	525,144
Interest expense	184,633		117,604		60,849		43,293		32,568
Net interest income	1,040,412		915,879		784,664		657,213		492,576
Provision for credit losses	18,500		23,000		17,250		8,000		3,200
Net interest income after provision for credit losses	1,021,912		892,879		767,414		649,213		489,376
Non-interest income	65,095		43,116		45,344		42,915		29,768
Non-interest expense	482,781		425,667		360,941		330,949		260,606
Income before provision for income taxes	604,226		510,328		451,817		361,179		258,538
Income tax expense	105,055		74,540		126,325		101,381		64,294
Net income	$	499,171	$	435,788	$	325,492	$	259,798	$	194,244

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	As of and for the Year Ended December 31,
	2019			2018			2017			2016			2015
	(dollars in thousands, except per share data)
Per Share Data:
Earnings per share available to common stockholders - basic	$	4.86		$	4.16		$	3.12		$	2.52		$	2.05
Earnings per share available to common stockholders - diluted	4.84			4.14			3.10			2.50			2.03
Dividends paid per share	0.50			—			—			—			—
Book value per common share	29.42			24.90			21.14			18.00			15.44
Tangible book value per share1	26.54			22.07			18.31			15.17			12.54
Shares outstanding at period end	102,524			104,949			105,487			105,071			103,087
Weighted average shares outstanding - basic	102,667			104,669			104,179			103,042			94,570
Weighted average shares outstanding - diluted	103,133			105,370			104,997			103,843			95,219
Selected Balance Sheet Data:
Cash and cash equivalents	$	434,596		$	498,572		$	416,768		$	284,491		$	224,640
Investment securities and money market investments	3,970,118			3,694,961			3,754,569			2,702,512			1,984,126
Loans, net of deferred loan fees and costs	21,123,296			17,710,629			15,093,935			13,208,436			11,136,663
Allowance for credit losses	167,797			152,717			140,050			124,704			119,068
Total assets	26,821,948			23,109,486			20,329,085			17,200,842			14,275,089
Total deposits	22,796,493			19,177,447			16,972,532			14,549,863			12,030,624
Other borrowings	—			491,000			390,000			80,000			150,000
Qualifying debt	393,563			360,458			376,905			367,937			210,328
Total stockholders' equity	3,016,748			2,613,734			2,229,698			1,891,529			1,591,502
Selected Other Balance Sheet Data:
Average assets	$	24,914,123		$	21,246,315		$	18,869,553		$	16,134,263		$	12,420,803
Average earning assets	23,586,512			20,064,545			17,770,939			15,117,364			11,621,977
Average stockholders' equity	2,845,379			2,411,709			2,079,287			1,770,914			1,323,952
Selected Financial and Liquidity Ratios:
Return on average assets	2.00		%	2.05		%	1.72		%	1.61		%	1.56		%
Return on average tangible common equity1	19.60			20.64			18.31			17.71			17.83
Net interest margin	4.52			4.68			4.65			4.58			4.51
Loan to deposit ratio	92.66			92.35			88.93			90.78			92.57
Capital Ratios:
Tier 1 leverage ratio	10.6		%	10.9		%	10.3		%	9.9		%	9.8		%
Tier 1 capital ratio	10.9			11.1			10.8			10.5			10.2
Total capital ratio	12.8			13.2			13.3			13.2			12.2
Selected Asset Quality Ratios:
Net charge-offs (recoveries) to average loans outstanding	0.02		%	0.06		%	0.01		%	0.02		%	(0.06		)%
Non-accrual loans to gross loans	0.27			0.16			0.29			0.31			0.44
Non-accrual loans and repossessed assets to total assets	0.26			0.20			0.36			0.51			0.65
Loans past due 90 days or more and still accruing to gross loans	—			0.00			0.00			0.01			0.03
Allowance for credit losses to gross loans	0.80			0.86			0.93			0.95			1.07
Allowance for credit losses to non-accrual loans	299.81			550.41			318.84			309.65			246.10

¹ See Non-GAAP Financial Measures section beginning on page 33.

30

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis is designed to provide insight on the financial condition and results of operations of Western Alliance Bancorporation and its subsidiaries and should be read in conjunction with “Item 8. Financial Statements and Supplementary Data.” This discussion and analysis contains forward-looking statements that involve risk, uncertainties, and assumptions. Certain risks, uncertainties, and other factors, including, but not limited to, those set forth under “Forward-Looking Statements” at the beginning of Part I of this Form 10-K and those discussed in Part I, Item 1A of this Form 10-K under the heading "Risk Factors," may cause actual results to differ materially from those projected in the forward-looking statements.

For a comparison of the 2018 results to the 2017 results and other 2017 information not included herein, refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Financial Overview and Highlights

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON and FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services.

Financial Results Highlights of 2019

• Net income of $499.2 million for 2019, compared to $435.8 million for 2018

• Diluted earnings per share of $4.84 for 2019, compared to $4.14 per share for 2018

• Net operating revenue of $1.1 billion, constituting year-over-year growth of 13.1%, or $127.0 million, compared to an increase in operating non-interest expenses of 14.9%, or $62.2 million¹

• Operating PPNR increased $64.8 million to $618.3 million, compared to $553.5 million in 2018¹

• Income tax expense increased $30.5 million to $105.1 million, compared to $74.5 million in 2018

• Total loans of $21.1 billion, up $3.4 billion from December 31, 2018

• Total deposits of $22.8 billion, up $3.6 billion from December 31, 2018

• Stockholders' equity of $3.0 billion, an increase of $403.0 million from December 31, 2018

• Nonperforming assets (nonaccrual loans and repossessed assets) increased to 0.26% of total assets, from 0.20% at December 31, 2018

• Net loan charge-offs to average loans outstanding of 0.02% for 2019, compared to 0.06% for 2018

• Net interest margin of 4.52% in 2019, compared to 4.68% in 2018

• Return on average assets of 2.00% for 2019, compared to 2.05% for 2018

• Tangible common equity ratio of 10.3%, compared to 10.2% at December 31, 2018¹

• Tangible book value per share, net of tax, of $26.54, an increase of 20.3% from $22.07 at December 31, 2018¹

• Operating efficiency ratio of 42.7% in 2019, compared to 41.9% in 2018¹ 

The impact to the Company from these items, and others of both a positive and negative nature, are discussed in more detail below as they pertain to the Company’s overall comparative performance for the year ended December 31, 2019.

¹ See Non-GAAP Financial Measures section beginning on page 33.

31

As a bank holding company, management focuses on key ratios in evaluating the Company's financial condition and results of operations.

Results of Operations and Financial Condition

A summary of the Company's results of operations, financial condition, and selected metrics are included in the following tables: 

	Year Ended December 31,
	2019			2018			2017
	(dollars in thousands, except per share amounts)
Net income	$	499,171		$	435,788		$	325,492
Earnings per share - basic	4.86			4.16			3.12
Earnings per share - diluted	4.84			4.14			3.10
Return on average assets	2.00		%	2.05		%	1.72		%
Return on average tangible common equity1	19.60			20.64			18.31
Net interest margin	4.52			4.68			4.65
Operating efficiency ratio1	42.68			41.93			41.51

	December 31,
	2019		2018
	(in thousands)
Total assets	$	26,821,948	$	23,109,486
Total loans, net of deferred loan fees and costs	21,123,296		17,710,629
Securities and money market investments	3,970,118		3,694,961
Total deposits	22,796,493		19,177,447
Other borrowings	—		491,000
Qualifying debt	393,563		360,458
Stockholders' equity	3,016,748		2,613,734
Tangible common equity, net of tax1	2,721,061		2,316,464

¹ See Non-GAAP Financial Measures section beginning on page 33.

Asset Quality

For all banks and bank holding companies, asset quality plays a significant role in the overall financial condition of the institution and results of operations. The Company measures asset quality in terms of non-accrual loans as a percentage of gross loans and net charge-offs as a percentage of average loans. Net charge-offs are calculated as the difference between charged-off loans and recovery payments received on previously charged-off loans. The following table summarizes the Company's key asset quality metrics: 

	At or for the Year Ended December 31,
	2019			2018			2017
	(dollars in thousands)
Non-accrual loans	$	55,968		$	27,746		$	43,925
Repossessed assets	13,850			17,924			28,540
Non-performing assets	98,174			82,722			114,939
Loans past due 90 days and still accruing	—			594			43
Non-accrual loans to gross loans	0.27		%	0.16		%	0.29		%
Nonaccrual and repossessed assets to total assets	0.26			0.20			0.36
Loans past due 90 days and still accruing to gross loans	—			0.00			0.00
Allowance for credit losses to gross loans	0.80			0.86			0.93
Allowance for credit losses to non-accrual loans	299.81			550.41			318.84
Net charge-offs to average loans outstanding	0.02			0.06			0.01

32

Asset and Liability Growth

The Company’s assets and liabilities are comprised primarily of loans and deposits. Therefore, the ability to originate new loans and attract new deposits is fundamental to the Company’s growth.

Total assets increased to $26.8 billion at December 31, 2019 from $23.1 billion at December 31, 2018. The increase in total assets of $3.7 billion, or 16.1%, relates primarily to organic loan growth of $3.4 billion or 19.3%, to $21.1 billion as of December 31, 2019, compared to $17.7 billion as of December 31, 2018. The increase in loans from December 31, 2018 was driven by commercial and industrial loans of $1.6 billion, CRE non-owner occupied loans of $1.0 billion, and residential real estate loans of $943.3 million. Total deposits increased $3.6 billion, or 18.9%, to $22.8 billion as of December 31, 2019 from $19.2 billion as of December 31, 2018. The increase in deposits from December 31, 2018 was driven by an increase in savings and money market deposits of $1.8 billion, non-interest-bearing demand deposit of $1.1 billion, and certificates of deposits of $542.0 million from December 31, 2018.

RESULTS OF OPERATIONS

The following table sets forth a summary financial overview for the comparable periods:

	Year Ended December 31,				Increase
	2019		2018		(Decrease)
	(in thousands, except per share amounts)
Consolidated Income Statement Data:
Interest income	$	1,225,045	$	1,033,483	$	191,562
Interest expense	184,633		117,604		67,029
Net interest income	1,040,412		915,879		124,533
Provision for credit losses	18,500		23,000		(4,500		)
Net interest income after provision for credit losses	1,021,912		892,879		129,033
Non-interest income	65,095		43,116		21,979
Non-interest expense	482,781		425,667		57,114
Income before provision for income taxes	604,226		510,328		93,898
Income tax expense	105,055		74,540		30,515
Net income	$	499,171	$	435,788	$	63,383
Earnings per share - basic	$	4.86	$	4.16	$	0.70
Earnings per share - diluted	$	4.84	$	4.14	$	0.70

Non-GAAP Financial Measures

The following discussion and analysis contains financial information determined by methods other than those prescribed by GAAP. The Company's management uses these non-GAAP financial measures in their analysis of the Company's performance. These measurements typically adjust GAAP performance measures to exclude the effects of certain activities or transactions that, in management's opinion, do not reflect recurring period-to-period comparisons of the Company's performance. Management believes presentation of these non-GAAP financial measures provides useful supplemental information that is essential to a complete understanding of the operating results of the Company's core businesses. Since the presentation of these non-GAAP performance measures and their impact differ between companies, these non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Operating Pre-Provision Net Revenue

Operating PPNR is defined by the Federal Reserve in SR 14-3, which requires companies subject to the rule to project PPNR over the planning horizon for each of the economic scenarios defined annually by the regulators. Banking regulations define PPNR as net interest income plus non-interest income less non-interest expense. Management has further adjusted this metric to exclude any non-recurring or non-operational elements of non-interest income or non-interest expense, which are outlined in the table below. Management believes that this is an important metric as it illustrates the underlying performance of the Company, enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies.

33

The following table shows the components of operating PPNR for the years ended December 31, 2019, 2018, and 2017:

	Year Ended December 31,
	2019		2018			2017
	(in thousands)
Total non-interest income	$	65,095	$	43,116		$	45,344
Less:
Gain (loss) on sales of investment securities, net (1)	3,152		(7,656		)	2,343
Fair value gain (loss) adjustments on assets measured at fair value, net (1)	5,119		(3,611		)	(1		)
Total operating non-interest income	56,824		54,383			43,002
Plus: net interest income	1,040,412		915,879			784,664
Net operating revenue	$	1,097,236	$	970,262		$	827,666
Total non-interest expense	$	482,781	$	425,667		$	360,941
Less:
Contribution to charitable foundation (2)	—		7,645			—
401(k) plan change and other miscellaneous items (2)	—		1,218			—
Net loss (gain) on sales / valuations of repossessed and other assets (1)	3,818		9			(80		)
Total operating non-interest expense	$	478,963	$	416,795		$	361,021
Operating pre-provision net revenue	$	618,273	$	553,467		$	466,645
Plus:
Revenue adjustments	8,271		(11,267		)	2,342
Less:
Provision for credit losses	18,500		23,000			17,250
Expense adjustments	3,818		8,872			(80		)
Income before provision for income taxes	604,226		510,328			451,817
Income tax expense	105,055		74,540			126,325
Net income	$	499,171	$	435,788		$	325,492

(1) The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of this non-operational item.

(2) The operating PPNR non-GAAP performance metric is adjusted to exclude the effects of these non-recurring items. See "Note 19. Related Party Transactions" for further information regarding the charitable contribution.

34

Tangible Common Equity

The following table presents financial measures related to tangible common equity. Tangible common equity represents total stockholders' equity, less identifiable intangible assets and goodwill. Management believes that tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses. In addition, management believes that these measures improve comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangible assets.

	December 31
	2019			2018
	(dollars and shares in thousands)
Total stockholders' equity	$	3,016,748		$	2,613,734
Less: goodwill and intangible assets	297,608			299,155
Total tangible stockholders' equity	2,719,140			2,314,579
Plus: deferred tax - attributed to intangible assets	1,921			1,885
Total tangible common equity, net of tax	$	2,721,061		$	2,316,464
Total assets	$	26,821,948		$	23,109,486
Less: goodwill and intangible assets, net	297,608			299,155
Tangible assets	26,524,340			22,810,331
Plus: deferred tax - attributed to intangible assets	1,921			1,885
Total tangible assets, net of tax	$	26,526,261		$	22,812,216
Tangible common equity ratio	10.3		%	10.2		%
Common shares outstanding	102,524			104,949
Book value per share	$	29.42		$	24.90
Tangible book value per share, net of tax	26.54			22.07

Operating Efficiency Ratio

The following table shows the components used in the calculation of the operating efficiency ratio, which management uses as a metric for assessing cost efficiency:

	Year Ended December 31,
	2019			2018			2017
	(dollars in thousands)
Total operating non-interest expense	$	478,963		$	416,795		$	361,021
Divided by:
Total net interest income	$	1,040,412		$	915,879		$	784,664
Plus:
Tax equivalent interest adjustment	25,094			23,809			41,989
Operating non-interest income	56,824			54,383			43,002
Net operating revenue - TEB	$	1,122,330		$	994,071		$	869,655
Operating efficiency ratio - TEB	42.7		%	41.9		%	41.5		%

35

Regulatory Capital

The following table presents certain financial measures related to regulatory capital under Basel III, which includes Common Equity Tier 1 and total capital. The FRB and other banking regulators use Common Equity Tier 1 and total capital as a basis for assessing a bank's capital adequacy; therefore, management believes it is useful to assess financial condition and capital adequacy using this same basis. Specifically, the total capital ratio takes into consideration the risk levels of assets and off-balance sheet financial instruments. In addition, management believes that the classified assets to Common Equity Tier 1 plus allowance measure is an important regulatory metric for assessing asset quality.

	December 31,
	2019			2018
	(dollars in thousands)
Common Equity Tier 1:
Common Equity	$	3,016,748		$	2,613,734
Less:
Non-qualifying goodwill and intangibles	295,607			296,769
Disallowed deferred tax asset	2,243			768
AOCI related adjustments	21,379			(47,055		)
Unrealized gain on changes in fair value liabilities	3,629			13,432
Common Equity Tier 1	$	2,693,890		$	2,349,820
Divided by: Risk-weighted assets	$	25,390,142		$	21,983,976
Common Equity Tier 1 ratio	10.6		%	10.7		%
Common Equity Tier 1	$	2,693,890		$	2,349,820
Plus:
Trust preferred securities	81,500			81,500
Less:
Disallowed deferred tax asset	—			—
Unrealized gain on changes in fair value liabilities	—			—
Tier 1 capital	$	2,775,390		$	2,431,320
Divided by: Tangible average assets	$	26,110,275		$	22,204,799
Tier 1 leverage ratio	10.6		%	10.9		%
Total Capital:
Tier 1 capital	$	2,775,390		$	2,431,320
Plus:
Subordinated debt	305,732			305,131
Qualifying allowance for credit losses	167,797			152,717
Other	8,955			8,188
Less: Tier 2 qualifying capital deductions	—			—
Tier 2 capital	$	482,484		$	466,036
Total capital	$	3,257,874		$	2,897,356
Total capital ratio	12.8		%	13.2		%
Classified assets to Tier 1 capital plus allowance for credit losses:
Classified assets	$	171,246		$	242,101
Divided by:
Tier 1 capital	2,775,390			2,431,320
Plus: Allowance for credit losses	167,797			152,717
Total Tier 1 capital plus allowance for credit losses	$	2,943,187		$	2,584,037
Classified assets to Tier 1 capital plus allowance	5.8		%	9.4		%

36

Net Interest Margin

The net interest margin is reported on a TEB. A tax equivalent adjustment is added to reflect interest earned on certain securities and loans that are exempt from federal and state income tax. The following tables set forth the average balances, interest income, interest expense, and average yield (on a fully TEB) for the periods indicated:

	Year Ended December 31,
	2019							2018
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	(dollars in thousands)
Interest earning assets
Loans:
Commercial and industrial	$	8,200,542		$	461,918	5.78	%	$	7,039,090		$	387,422	5.68	%
CRE - non-owner occupied	4,629,580			270,353		5.85		3,952,702			234,753		5.95
CRE - owner occupied	2,284,746			120,607		5.38		2,263,112			118,351		5.34
Construction and land development	2,176,595			155,459		7.16		1,975,587			137,227		6.96
Residential real estate	1,663,544			80,669		4.85		616,159			29,681		4.82
Consumer	64,291			3,712		5.77		54,078			3,143		5.81
Loans held for sale	5,556			352		6.34		—			—		—
Total loans (1), (2), (3)	19,024,854			1,093,070		5.83		15,900,728			910,577		5.82
Securities:
Securities - taxable	2,904,567			79,124		2.72		2,803,350			78,630		2.80
Securities - tax-exempt	1,008,655			36,765		4.57		879,888			33,042		4.69
Total securities (1)	3,913,222			115,889		3.20		3,683,238			111,672		3.26
Other	648,436			16,086		2.48		480,579			11,234		2.34
Total interest earning assets	23,586,512			1,225,045		5.30		20,064,545			1,033,483		5.27
Non-interest earning assets
Cash and due from banks	214,470							145,246
Allowance for credit losses	(159,907		)					(146,288		)
Bank owned life insurance	171,960							168,685
Other assets	1,101,088							1,014,127
Total assets	$	24,914,123						$	21,246,315
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	2,545,806		$	20,988	0.82	%	$	1,891,160		$	11,584	0.61	%
Savings and money market accounts	8,125,832			95,533		1.18		6,501,241			54,962		0.85
Certificates of deposit	2,117,177			41,884		1.98		1,748,675			23,918		1.37
Total interest-bearing deposits	12,788,815			158,405		1.24		10,141,076			90,464		0.89
Short-term borrowings	134,622			2,838		2.11		260,662			4,853		1.86
Qualifying debt	379,675			23,390		6.16		362,410			22,287		6.15
Total interest-bearing liabilities	13,303,112			184,633		1.39		10,764,148			117,604		1.09
Interest cost of funding earning assets						0.78	%						0.59	%
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	8,246,232							7,712,791
Other liabilities	519,400							357,667
Stockholders’ equity	2,845,379							2,411,709
Total liabilities and stockholders' equity	$	24,914,123						$	21,246,315
Net interest income and margin (4)				$	1,040,412	4.52	%				$	915,879	4.68	%

(1) Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $25.1 million and $23.8 million for 2019 and 2018, respectively.

(2) Included in the yield computation are net loan fees of $56.2 million and accretion on acquired loans of $12.7 million for 2019, compared to $44.8 million and $18.6 million for 2018, respectively.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets.

37

	Year Ended December 31,
	2019 versus 2018
	Increase (Decrease) Due to Changes in (1)
	Volume			Rate			Total
	(in thousands)
Interest income:
Loans:
Commercial and industrial	$	65,422		$	9,074		$	74,496
CRE - non-owner occupied	39,528			(3,928		)	35,600
CRE - owner occupied	1,142			1,114			2,256
Construction and land development	14,357			3,875			18,232
Residential real estate	50,790			198			50,988
Consumer	590			(21		)	569
Loans held for sale	352			—			352
Total loans	172,181			10,312			182,493
Securities:
Securities - taxable	2,757			(2,263		)	494
Securities - tax-exempt	4,693			(970		)	3,723
Total securities	7,450			(3,233		)	4,217
Other	4,164			688			4,852
Total interest income	183,795			7,767			191,562
Interest expense:
Interest-bearing transaction accounts	$	5,397		$	4,007		$	9,404
Savings and money market	19,100			21,471			40,571
Time certificates of deposit	7,290			10,676			17,966
Short-term borrowings	(2,657		)	642			(2,015		)
Qualifying debt	1,064			39			1,103
Total interest expense	30,194			36,835			67,029
Net increase	$	153,601		$	(29,068	)	$	124,533

 

(1) Changes due to both volume and rate have been allocated to volume changes.

Comparison of interest income, interest expense and net interest margin

The Company's primary source of revenue is interest income. For the year ended December 31, 2019, interest income was $1.2 billion, an increase of $191.6 million, or 18.5%, compared to $1.0 billion for the year ended December 31, 2018. This increase was primarily the result of a $3.1 billion increase in the average loan balance that drove a $182.5 million increase in loan interest income for the year ended December 31, 2019. Interest income from investment securities increased by $4.2 million for the comparable period primarily due to an increase in the average investment balance of $230.0 million, partially offset by a decrease in interest rates from December 31, 2018. Other interest income increased $4.9 million from the comparable period due primarily to an increase in interest-bearing cash account balances. Average yield on interest earning assets increased to 5.30% for the year ended December 31, 2019, compared to 5.27% in 2018, which was primarily the result of increased yields on the Company's interest-bearing cash accounts.

For the year ended December 31, 2019, interest expense was $184.6 million, compared to $117.6 million for the year ended December 31, 2018. Interest expense on deposits increased $67.9 million for the same period as average interest-bearing deposits increased $2.6 billion, which was paired with a 35-basis point increase in the average cost of interest-bearing deposits. Interest expense on short-term borrowings decreased by $2.0 million as a result of a $126.0 million decrease in average short-term borrowings for the year ended December 31, 2019 compared to the same period in 2018. Interest expense on qualifying debt increased by $1.1 million due to changes in related interest rate swap expense arising from fluctuations in interest rates.

For the year ended December 31, 2019, net interest income was $1.0 billion, compared to $915.9 million for the year ended December 31, 2018. The increase in net interest income reflects a $3.5 billion increase in average interest earning assets, offset by a $2.5 billion increase in average interest-bearing liabilities. The decrease in net interest margin of 16 basis points compared to 2018 is the result of higher deposit and funding costs.

38

Provision for Credit Losses

The provision for credit losses on loans in each period is reflected as a reduction in earnings for that period. The provision is equal to the amount required to maintain the allowance for credit losses at a level that is adequate to absorb probable credit losses inherent in the loan portfolio. For the year ended December 31, 2019, the provision for credit losses was $18.5 million, compared to $23.0 million for the year ended December 31, 2018. The decrease in the provision was primarily due to a reduction in net charge-offs and loan mix.

The Company may also establish an additional allowance for credit losses on PCI loans through provision for credit losses when impairment is determined as a result of lower than expected cash flows. As of December 31, 2019 and 2018, the allowance for credit losses on PCI loans was $0.1 million. For non-PCI loans, an additional allowance for credit losses is established when the remaining credit marks on these loans are lower than the Company's calculated allowance for similar types of organic loans. As of December 31, 2019 and 2018, the allowance for credit losses on non-PCI loans was $0.9 million and $3.4 million, respectively.

The Company also records estimated losses on unfunded loan commitments, which are classified as non-interest expense, with corresponding reserves in other liabilities. For the years ended December 31, 2019 and 2018, the Company recorded $0.8 million and $2.0 million, respectively, in non-interest expense for estimated losses on unfunded loan commitments. As of December 31, 2019 and 2018, the loss contingency for unfunded loan commitments and letters of credit was $9.0 million and $8.2 million as of December 31, 2019 and 2018, respectively.

Non-interest Income

The following table presents a summary of non-interest income for the periods presented: 

	Year Ended December 31,
	2019		2018			Increase (Decrease)
	(in thousands)
Service charges and fees	$	23,353	$	22,295		$	1,058
Income from equity investments	8,290		8,595			(305		)
Card income	6,979		8,009			(1,030		)
Foreign currency income	4,987		4,760			227
Income from bank owned life insurance	3,901		3,946			(45		)
Lending related income and gains (losses) on sale of loans, net	3,158		4,340			(1,182		)
Gain (loss) on sales of investment securities, net	3,152		(7,656		)	10,808
Fair value gain (loss) adjustments on assets measured at fair value, net	5,119		(3,611		)	8,730
Other income	6,156		2,438			3,718
Total non-interest income	$	65,095	$	43,116		$	21,979

Total non-interest income for the year ended December 31, 2019 compared to 2018, increased by $22.0 million, or 51.0%. The increase is due to sales of investment securities and fair value adjustments. The net gain on sales of investment securities of $3.2 million during the year ended December 31, 2019 was the result of a portfolio re-balancing initiative. The net loss on sales of investment securities of $7.7 million during the year ended December 31, 2018 relates to sales of low yielding investment securities, which were replaced with investment securities with shorter durations and higher yields, as well as losses on sales of equity securities. The net fair value gain on assets measured at fair value was $5.1 million for the year ended December 31, 2019, compared to a net loss of $3.6 million for the year ended December 31, 2018, which resulted from changes in the fair market value of the Company's equity securities. Other increases in non-interest income were due to increases in service charges and fees and other non-interest income. The increase in service charges and fees of $1.1 million is due to continued growth in the Company's deposit base, which increased $3.6 billion during the year ended December 31, 2019. The increase in other non-interest income of $3.7 million is due primarily to an increase in rental income on equipment leases. These increases were partially offset by a decrease in lending income of $1.2 million due to fewer gains on the sale of loans compared to the same period in 2018.

39

Non-interest Expense

The following table presents a summary of non-interest expense for the periods presented:

	Year Ended December 31,
	2019		2018		Increase (Decrease)
	(in thousands)
Salaries and employee benefits	$	279,274	$	253,238	$	26,036
Legal, professional, and directors' fees	37,009		28,722		8,287
Occupancy	32,507		29,404		3,103
Deposit costs	31,719		18,900		12,819
Data processing	30,577		22,716		7,861
Insurance	11,924		14,005		(2,081		)
Loan and repossessed asset expenses	7,571		4,578		2,993
Business development	7,043		5,960		1,083
Marketing	4,199		3,770		429
Card expense	2,346		4,301		(1,955		)
Intangible amortization	1,547		1,594		(47		)
Net loss (gain) on sales / valuations of repossessed and other assets	3,818		9		3,809
Other expense	33,247		38,470		(5,223		)
Total non-interest expense	$	482,781	$	425,667	$	57,114

Total non-interest expense for the year ended December 31, 2019 compared to 2018, increased $57.1 million, or 13.4%. This increase primarily relates to salaries and employee benefits, deposit costs, legal, professional, and directors' fees, data processing, net loss on sales/valuations of repossessed and other assets, and occupancy expenses. Salaries and employee benefits have increased as the Company supports its continued growth through hiring and incentives. Full-time equivalent employees increased 2.7% to 1,835 during the year ended December 31, 2019. Deposit costs consist of fees to the Promontory Interfinancial Network and others for reciprocal deposits as well as earnings credits on select deposits. The increase in deposit costs of $12.8 million for 2019 compared to 2018 relates primarily to an increase in deposit earnings credits paid to account holders due to a higher amount of deposits eligible for these credits. The increase to legal, professional, and directors' fees of $8.3 million largely relates to consulting projects aimed at the implementation of CECL and other technology initiatives that will help position the Company for continued growth. The net loss on sales/valuations of repossessed and other assets of $3.8 million primarily relates to valuation adjustments on OREO properties. The other significant increases to non-interest expense consist of increases in data processing and occupancy of $7.9 million and $3.1 million, respectively, which relate to the Company's support of its continued growth. These increases were partially offset by a decrease in other non-interest expense of $5.2 million, which primarily relates to a non-recurring charitable donation of $7.6 million made in 2018 as well as a decrease in FDIC insurance costs of $2.4 million due to the elimination of the FDIC assessment surcharge in the fourth quarter of 2018. The decrease in other non-interest expense was offset in part by a $3.2 million increase in depreciation expense on leased equipment.

Income Taxes

For the years ended December 31, 2019, 2018, and 2017 the Company's effective tax rate was 17.39%, 14.61%, and 27.96%, respectively. The increase in the effective tax rate from 2018 to 2019 is due primarily to management's decision during the third quarter of 2018 to carryback its 2017 federal NOLs. The decrease in the effective tax rate from 2017 to 2018 is due primarily to the decrease in the federal statutory rate effective in 2018, a reduction in excise taxes, and management's decision during the third quarter 2018 to carryback its 2017 federal NOLs. The reduction in excise taxes from 2017 to 2018 resulted from not deferring WAB's 2018 dividend from BW Real Estate as was the case in 2017. The Company's 2017 federal NOLs resulted from the acceleration of deductions into and deferral of revenue from 2017. As the federal income tax rate was higher in the years to which the carryback is applicable, a larger tax benefit results from the decision to carryback the 2017 federal NOLs, rather than carryforward these losses to future taxable years.

40

Business Segment Results

The Company's reportable segments are defined primarily based on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The Company's NBL segments, which include HOA services, Public & Nonprofit Finance, Technology & Innovation, HFF, and Other NBLs, provide specialized banking services to niche markets. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately located within the Company's core market areas. The Corporate & Other segment consists of corporate-related items, income and expense items not allocated to the Company's other reportable segments, and inter-segment eliminations.

The following tables present selected operating segment information for the periods presented:

			Regional Segments
	Consolidated Company		Arizona		Nevada		Southern California		Northern California
December 31, 2019	(in millions)
Loans, net of deferred loan fees and costs	$	21,123.3	$	3,847.9	$	2,252.5	$	2,253.9	$	1,311.2
Deposits	22,796.5		5,384.7		4,350.1		2,585.3		2,373.6
December 31, 2018
Loans, net of deferred loan fees and costs	$	17,710.6	$	3,647.9	$	2,003.5	$	2,161.1	$	1,300.2
Deposits	19,177.4		5,090.2		3,996.4		2,347.5		1,839.1

Year Ended December 31, 2019	(in thousands)
Income (loss) before income taxes	$	604,226	$	156,493	$	111,001	$	73,649	$	53,079
Year Ended December 31, 2018
Income (loss) before income taxes	$	510,328	$	139,047	$	99,322	$	59,334	$	48,132

	National Business Lines
	HOA Services		Public & Nonprofit Finance		Technology & Innovation		Hotel Franchise Finance		Other NBL		Corporate & Other
December 31, 2019	(in millions)
Loans, net of deferred loan fees and costs	$	237.2	$	1,635.6	$	1,552.0	$	1,930.8	$	6,098.7	$	3.5
Deposits	3,210.1		0.1		3,771.5		—		36.9		1,084.2
December 31, 2018
Loans, net of deferred loan fees and costs	$	210.0	$	1,547.5	$	1,200.9	$	1,479.9	$	4,154.9	$	4.7
Deposits	2,607.2		—		2,559.0		—		—		738.0

Year Ended December 31, 2019	(in thousands)
Income (loss) before income taxes	$	49,823	$	5,668	$	93,748	39,935	$	78,895	—	$	(58,065	)
Year Ended December 31, 2018
Income (loss) before income taxes	$	35,097	$	8,288	$	72,334	42,467	$	44,281		$	(37,974	)

41

BALANCE SHEET ANALYSIS

Total assets increased $3.7 billion, or 16.1%, to $26.8 billion at December 31, 2019 compared to $23.1 billion at December 31, 2018. The increase in total assets relates primarily to organic loan growth. Loans increased $3.4 billion, or 19.3%, to $21.1 billion at December 31, 2019, compared to $17.7 billion at December 31, 2018. The increase in loans from December 31, 2018 was driven by commercial and industrial loans of $1.6 billion, CRE, non-owner occupied loans of $1.0 billion, and residential real estate loans of $943.3 million.

Total liabilities increased $3.3 billion, or 16.1%, to $23.8 billion at December 31, 2019, compared to $20.5 billion at December 31, 2018. The increase in liabilities is due primarily to an increase in total deposits. Total deposits increased $3.6 billion, or 18.9%, to $22.8 billion at December 31, 2019. The increase in deposits from December 31, 2018 was driven by an increase in savings and money market deposits of $1.8 billion, non-interest-bearing demand deposit of $1.1 billion, and certificates of deposits of $542.0 million from December 31, 2018.

Total stockholders’ equity increased by $403.0 million, or 15.4%, to $3.0 billion at December 31, 2019 compared to $2.6 billion at December 31, 2018. The increase in stockholders' equity relates primarily to net income for the year ended December 31, 2019 and an increase in the fair value of the Company's AFS portfolio, which is recognized as part of AOCI, partially offset by share repurchases under its common stock repurchase plan and dividends paid to shareholders.

Investment securities

Debt securities are classified at the time of acquisition as either HTM, AFS, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are securities that may be sold prior to maturity based upon asset/liability management decisions. Investment securities classified as AFS are carried at fair value. Unrealized gains or losses on AFS securities are recorded as part of AOCI in stockholders’ equity. Amortization of premiums or accretion of discounts on MBS is periodically adjusted for estimated prepayments. Trading securities are reported at fair value, with unrealized gains and losses included in current period earnings.

The Company's investment securities portfolio is utilized as collateral for borrowings, required collateral for public deposits and customer repurchase agreements, and to manage liquidity, capital, and interest rate risk.

The following table summarizes the carrying value of the investment securities portfolio for each of the periods below: 

	At December 31,
	2019		2018		2017		2016		2015
	(in thousands)
Debt securities
CDO	$	10,142	$	15,327	$	21,857	$	13,490	$	10,060
Commercial MBS issued by GSEs	94,253		100,106		109,077		117,792		19,114
Corporate debt securities	99,961		99,380		103,483		64,144		13,251
Municipal securities	7,773		—		—		—		—
Private label commercial MBS	—		—		—		—		4,691
Private label residential MBS	1,129,227		924,594		868,524		433,685		257,128
Residential MBS issued by GSEs	1,412,060		1,530,124		1,689,295		1,356,258		1,171,702
Tax-exempt	1,039,962		841,573		765,960		500,312		334,830
Trust preferred securities	27,040		28,617		28,617		26,532		24,314
U.S. government sponsored agency securities	10,000		38,188		61,462		56,022		—
U.S. treasury securities	999		1,984		2,482		2,502		2,993
Total debt securities	$	3,831,417	$	3,579,893	$	3,650,757	$	2,570,737	$	1,838,083
Equity securities
CRA investments	$	52,504	$	51,142	$	50,616	$	37,113	$	34,685
Preferred stock	86,197		63,919		53,196		94,662		111,236
Total equity securities	$	138,701	$	115,061	$	103,812	$	131,775	$	145,921

42

Weighted average yield on investment securities is calculated by dividing income within each maturity range by the outstanding amount of the related investment and has not been tax-effected on tax-exempt obligations. For purposes of calculating the weighted average yield, AFS securities are carried at amortized cost in the table below. The maturity distribution and weighted average yield of the Company's investment security portfolios at December 31, 2019 are summarized in the table below: 

	December 31, 2019
	Due Under 1 Year				Due 1-5 Years				Due 5-10 Years				Due Over 10 Years				Total
	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(dollars in thousands)
Held-to-maturity
Tax-exempt	$	7,330	5.27	%	$	17,414	4.30	%	$	—	—	%	$	460,363	4.57	%	$	485,107	4.57	%
Available-for-sale
CDO	$	—	—	%	$	—	—	%	$	—	—	%	$	50	—	%	$	50	—	%
Commercial MBS issued by GSEs (1)	—		—		18,445		2.26		1,680		4.28		74,937		2.28		95,062		2.31
Corporate debt securities	—		—		5,015		4.32		100,000		2.35		—		—		105,015		2.45
Municipal securities	—		—		—		—		—		—		7,494		5.57		7,494		5.57
Private label residential MBS (1)	99		5.39		—		—		—		—		1,129,886		3.24		1,129,985		3.24
Residential MBS issued by GSEs (1)	3		5.26		1,423		2.74		8,429		2.53		1,396,739		2.66		1,406,594		2.66
Tax-exempt	—		—		9,751		3.58		39,236		3.43		481,742		3.01		530,729		3.05
Trust preferred securities	—		—		—		—		—		—		32,000		2.45		32,000		2.45
U.S. government sponsored agency securities	—		—		—		—		10,000		2.40		—		—		10,000		2.40
U.S. treasury securities	999		1.68		—		—		—		—		—		—		999		1.68
Total AFS securities	$	1,101	2.02	%	$	34,634	2.95	%	$	159,345	2.65	%	$	3,122,848	2.92	%	$	3,317,928	2.91	%
Equity
CRA investments	$	44,555	2.89	%	$	5,250	2.51	%	$	3,000	3.00	%	$	—	—	%	$	52,805	2.86	%
Preferred stock	—		—		—		—		—		—		82,514		5.81		82,514		5.81
Total equity securities	$	44,555	2.89	%	$	5,250	2.51	%	$	3,000	3.00	%	$	82,514	5.81	%	$	135,319	4.66	%

(1) MBS are comprised of pools of loans with varying maturities, the majority of which are due after 10 years.

The Company does not own any subprime MBS in its investment portfolio. The majority of its MBS are GSE issued. The remaining MBS that are not GSE issued consist of $1.1 billion rated AAA, $30.7 million rated AA, $0.2 million rated A, $0.3 million rated BBB, and $1.2 million non-investment grade.

Gross unrealized losses at December 31, 2019 relate primarily to market interest rate increases since the securities' original purchase date. The Company has reviewed securities on which there is an unrealized loss in accordance with its accounting policy for OTTI securities described in "Note 2. Investment Securities" to the Consolidated Financial Statements contained herein. There were no impairment charges recorded during the years ended December 31, 2019, 2018, and 2017.

The Company does not consider any securities to be other-than-temporarily impaired as of December 31, 2019, 2018, and 2017. However, the Company cannot guarantee that OTTI will not occur in future periods. At December 31, 2019, the Company has the intent and ability to retain its investments for a period of time sufficient to allow for any anticipated recovery in fair value.

43

Loans

The table below summarizes the distribution of the Company’s held for investment loan portfolio at the end of each of the periods indicated: 

	December 31,
	2019			2018			2017			2016			2015
	(in thousands)
Loans, held for investment
Commercial and industrial	$	9,391,760		$	7,765,100		$	6,841,247		$	5,859,446		$	5,264,856
Commercial real estate - non-owner occupied	5,261,018			4,223,427			3,911,313			3,549,876			2,289,480
Commercial real estate - owner occupied	2,320,237			2,329,205			2,245,060			2,015,671			2,085,738
Construction and land development	1,971,633			2,155,625			1,647,726			1,489,488			1,143,228
Residential real estate	2,147,652			1,203,613			425,291			258,734			322,265
Consumer	56,932			69,995			48,583			38,572			26,474
Deferred loan fees and costs	(47,739		)	(36,336		)	(25,285		)	(22,260		)	(19,187		)
Loans, net of deferred loan fees and costs	21,101,493			17,710,629			15,093,935			13,189,527			11,112,854
Allowance for credit losses	(167,797		)	(152,717		)	(140,050		)	(124,704		)	(119,068		)
Total loans HFI	$	20,933,696		$	17,557,912		$	14,953,885		$	13,064,823		$	10,993,786

Loans that are held for investment are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, purchase accounting fair value adjustments, and an allowance for credit losses. Net deferred loan fees as of December 31, 2019 and 2018 total $47.7 million and $36.3 million, respectively, which is a reduction in the carrying value of loans. Net unamortized purchase premiums on secondary market loan purchases total $29.9 million and $2.0 million as of December 31, 2019 and 2018, respectively. Total loans held for investment are also net of interest rate and credit marks on acquired loans, which are a net reduction in the carrying value of loans. Interest rate marks were $3.8 million and $7.1 million as of December 31, 2019 and 2018, respectively. Credit marks were $6.5 million and $14.6 million as of December 31, 2019 and 2018, respectively.

As of December 31, 2019, the Company also had $21.8 million of HFS loans. There were no HFS loans as of December 31, 2018.

44

The following table sets forth the amount of loans, including HFS loans, outstanding by type of loan as of December 31, 2019 that were contractually due in one year or less, more than one year and less than five years, and more than five years based on remaining scheduled repayments of principal. Lines of credit or other loans having no stated final maturity and no stated schedule of repayments are reported as due in one year or less. The table also presents an analysis of the rate structure for loans within the same maturity time periods. Actual cash flows from these loans may differ materially from contractual maturities due to prepayment, refinancing, or other factors.

	Due in one year or less		Due after one year to five years		Due after five years		Total
	(in thousands)
Commercial and industrial
Floating rate	$	2,451,864	$	3,441,591	$	1,369,159	$	7,262,614
Fixed rate	91,335		833,937		1,215,960		2,141,232
Commercial real estate — non-owner occupied
Floating rate	543,071		2,113,368		642,467		3,298,906
Fixed rate	190,053		1,194,158		562,517		1,946,728
Commercial real estate — owner occupied
Floating rate	82,498		192,699		929,909		1,205,106
Fixed rate	51,837		301,032		758,938		1,111,807
Construction and land development
Floating rate	746,293		932,849		142,057		1,821,199
Fixed rate	24,303		57,846		48,808		130,957
Residential real estate
Floating rate	25,962		35,122		719,539		780,623
Fixed rate	3,218		6,888		1,356,935		1,367,041
Consumer
Floating rate	31,735		12,063		2,350		46,148
Fixed rate	3,477		3,509		3,949		10,935
Total	$	4,245,646	$	9,125,062	$	7,752,588	$	21,123,296

As of December 31, 2019, approximately $9.7 billion, or 67.6%, of total variable rate loans were subject to rate floors with a weighted average interest rate of 4.8%. At December 31, 2018, approximately $8.3 billion, or 69.3% of total variable rate loans were subject to rate floors with a weighted average interest rate of 4.8%. At December 31, 2019, total loans consisted of 68.2% with floating rates and 31.8% with fixed rates, compared to 67.3% with floating rates and 32.7% with fixed rates at December 31, 2018.

Concentrations of Lending Activities

The Company monitors concentrations within four broad categories: product, collateral, geography, and industry. The Company’s loan portfolio includes significant credit exposure to the CRE market. At December 31, 2019 and 2018, CRE related loans accounted for approximately 45% and 49% of total loans, respectively. Substantially all of these loans are secured by first liens with an initial loan to value ratio of generally not more than 75%. Approximately 31% and 36% of these CRE loans, excluding construction and land loans, were owner occupied at December 31, 2019 and 2018, respectively.

Impaired loans

A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310 based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are charged against the allowance for credit losses.

In addition to the Company's own internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

45

Total non-performing loans increased by $19.5 million, or 30.1%, at December 31, 2019 to $84.3 million from $64.8 million at December 31, 2018.

	December, 31
	2019			2018			2017			2016			2015
	(dollars in thousands)
Total non-accrual loans (1)	$	55,968		$	27,746		$	43,925		$	40,272		$	48,381
Loans past due 90 days or more on accrual status	—			594			43			1,067			3,028
Accruing troubled debt restructured loans	28,356			36,458			42,431			53,637			70,707
Total nonperforming loans, excluding loans acquired with deteriorated credit quality	84,324			64,798			86,399			94,976			122,116
Other impaired loans	31,979			47,454			12,155			4,233			6,758
Total impaired loans	$	116,303		$	112,252		$	98,554		$	99,209		$	128,874
Other assets acquired through foreclosure, net	$	13,850		$	17,924		$	28,540		$	47,815		$	43,942
Non-accrual loans to gross loans held for investment	0.27		%	0.16		%	0.29		%	0.31		%	0.44		%
Loans past due 90 days or more on accrual status to gross loans held for investment	—			0.00			0.00			0.01			0.03
Interest income that would have been recorded under the original terms of non-accrual loans	2,170			2,268			2,444			2,045			2,549

(1) Includes non-accrual TDR loans of $10.6 million and $8.0 million at December 31, 2019 and 2018, respectively.

The composition of non-accrual loans by loan type and by segment were as follows: 

	December 31, 2019						December 31, 2018
	Non-accrual Balance		Percent of Non-Accrual Balance		Percent of Total HFI Loans		Non-accrual Balance		Percent of Non-Accrual Balance		Percent of Total HFI Loans
	(dollars in thousands)
Commercial and industrial	$	24,501	43.77	%	0.12	%	$	15,090	54.39	%	0.09	%
Commercial real estate	23,720		42.38		0.11		—		—		—
Construction and land development	2,147		3.84		0.01		476		1.71		0.00
Residential real estate	5,600		10.01		0.03		11,939		43.03		0.07
Consumer	—		—		—		241		0.87		0.00
Total non-accrual loans	$	55,968	100.00	%	0.27	%	$	27,746	100.00	%	0.16	%

	December 31, 2019				December 31, 2018
	Nonaccrual Loans		Percent of Segment's Total HFI Loans		Nonaccrual Loans		Percent of Segment's Total HFI Loans
	(dollars in thousands)
Arizona	$	29,062	0.76	%	$	8,312	0.23	%
Nevada	8,001		0.36		6,374		0.32
Southern California	1,759		0.08		8,564		0.40
Northern California	5,193		0.40		4,255		0.33
Public & Nonprofit Finance	2,147		0.13		—		—
Technology and Innovation	5,867		0.38		—		—
Other NBLs	3,939		0.06		241		0.00
Total non-accrual loans	$	55,968	0.27	%	$	27,746	0.16	%

46

Troubled Debt Restructured Loans

A TDR loan is a loan that is granted a concession, for reasons related to a borrower’s financial difficulties, that the lender would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in accrued interest, extensions, deferrals, renewals, and rewrites. A TDR loan is also considered impaired. Generally, a loan that is modified at an effective market rate of interest is no longer disclosed as a TDR in years subsequent to the restructuring if it is performing based on the terms specified by the restructuring agreement. However, such loans continue to be considered impaired.

As of December 31, 2019 and 2018, the aggregate amount of loans classified as impaired was $116.3 million and $112.3 million, respectively, a net increase of 3.6%. The total specific allowance for credit losses related to these loans was $2.8 million and $0.7 million at December 31, 2019 and 2018, respectively. The Company had $28.4 million and $36.5 million in loans classified as accruing restructured loans at December 31, 2019 and 2018, respectively.

The following tables present a breakdown of total impaired loans and the related specific reserves for the periods indicated: 

	December 31, 2019
	Impaired Balance		Percent of Impaired Balance		Percent of Total HFI Loans		Reserve Balance		Percent of Reserve Balance		Percent of Total Allowance
	(dollars in thousands)
Commercial and industrial	$	48,984	42.12	%	0.23	%	$	1,050	37.83	%	0.62	%
Commercial real estate	53,274		45.81		0.25		1,219		43.91		0.73
Construction and land development	8,421		7.23		0.04		507		18.26		0.30
Residential real estate	5,600		4.82		0.03		—		—		—
Consumer	24		0.02		0.00		—		—		—
Total impaired loans	$	116,303	100.00	%	0.55	%	$	2,776	100.00	%	1.65	%

 

	December 31, 2018
	Impaired Balance		Percent of Impaired Balance		Percent of Total HFI Loans		Reserve Balance		Percent of Reserve Balance		Percent of Total Allowance
	(dollars in thousands)
Commercial and industrial	$	63,896	56.92	%	0.36	%	$	621	91.19	%	0.41	%
Commercial real estate	18,937		16.87		0.11		—		—		—
Construction and land development	9,403		8.38		0.05		—		—		—
Residential real estate	19,744		17.59		0.11		60		8.81		0.04
Consumer	272		0.24		0.00		—		—		—
Total impaired loans	$	112,252	100.00	%	0.63	%	$	681	100.00	%	0.45	%

Impaired loans by segment at December 31, 2019 and 2018 were as follows:

	December 31,
	2019		2018
	(in thousands)
Arizona	$	62,175	$	34,899
Nevada	25,667		33,860
Southern California	6,630		8,576
Northern California	9,878		4,928
Public & Nonprofit Finance	2,147		—
Technology & Innovation	5,867		29,748
Other NBLs	3,939		241
Total impaired loans	$	116,303	$	112,252

47

The amount of interest income recognized on impaired loans for the years ended December 31, 2019, 2018, and 2017 was approximately $5.0 million, $4.5 million, and $4.0 million, respectively.

Allowance for Credit Losses

The following table summarizes the activity in the Company's allowance for credit losses for the period indicated: 

	Year Ended December 31,
	2019			2018			2017			2016			2015
	(dollars in thousands)
Allowance for credit losses:
Balance at beginning of period	$	152,717		$	140,050		$	124,704		$	119,068		$	110,216
Provision charged to operating expense:
Commercial and industrial	3,039			13,198			14,268			10,638			18,411
Commercial real estate	11,674			2,177			5,347			(2,449		)	(9,762		)
Construction and land development	1,431			1,482			(2,805		)	1,732			(1,454		)
Residential real estate	2,620			5,867			318			(2,137		)	(3,539		)
Consumer	(264		)	276			122			216			(456		)
Total Provision	18,500			23,000			17,250			8,000			3,200
Recoveries of loans previously charged-off:
Commercial and industrial	(4,265		)	(2,427		)	(3,112		)	(3,991		)	(3,754		)
Commercial real estate	(909		)	(1,237		)	(2,897		)	(5,690		)	(4,139		)
Construction and land development	(91		)	(1,433		)	(1,229		)	(485		)	(1,872		)
Residential real estate	(412		)	(947		)	(1,778		)	(875		)	(2,181		)
Consumer	(25		)	(43		)	(84		)	(144		)	(203		)
Total recoveries	(5,702		)	(6,087		)	(9,100		)	(11,185		)	(12,149		)
Loans charged-off:
Commercial and industrial	8,120			15,034			8,186			12,477			5,550
Commercial real estate	139			233			2,269			728			—
Construction and land development	141			1			—			18			—
Residential real estate	594			1,038			447			165			820
Consumer	128			114			102			161			127
Total charged-off	9,122			16,420			11,004			13,549			6,497
Net charge-offs (recoveries)	3,420			10,333			1,904			2,364			(5,652		)
Balance at end of period	$	167,797		$	152,717		$	140,050		$	124,704		$	119,068
Net charge-offs (recoveries) to average loans outstanding	0.02		%	0.06		%	0.01		%	0.02		%	(0.06		)%
Allowance for credit losses to gross loans	0.80			0.86			0.93			0.95			1.07
Allowance for credit losses to gross organic loans	0.82			0.92			1.03			1.11			1.23

48

The following table summarizes the allocation of the allowance for credit losses by loan type. However, the allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. 

	Commercial and Industrial			Commercial Real Estate			Construction and Land Development			Residential Real Estate			Consumer			Total
	(dollars in thousands)
December 31, 2019
Allowance for credit losses	$	82,302		$	47,273		$	23,894		$	13,714		$	614		$	167,797
Percent of total allowance for credit losses	49.0		%	28.2		%	14.2		%	8.2		%	0.4		%	100.0		%
Percent of loan type to total HFI loans	44.5			35.8			9.2			10.2			0.3			100.0
December 31, 2018
Allowance for credit losses	$	83,118		$	34,829		$	22,513		$	11,276		$	981		$	152,717
Percent of total allowance for credit losses	54.4		%	22.8		%	14.8		%	7.4		%	0.6		%	100.0		%
Percent of loan type to total HFI loans	43.8			36.9			12.1			6.8			0.4			100.0
December 31, 2017
Allowance for credit losses	$	82,527		$	31,648		$	19,599		$	5,500		$	776		$	140,050
Percent of total allowance for credit losses	58.9		%	22.6		%	14.0		%	3.9		%	0.6		%	100.0		%
Percent of loan type to total HFI loans	45.2			40.8			10.9			2.8			0.3			100.0
December 31, 2016
Allowance for credit losses	$	73,333		$	25,673		$	21,175		$	3,851		$	672		$	124,704
Percent of total allowance for credit losses	58.8		%	20.6		%	17.0		%	3.1		%	0.5		%	100.0		%
Percent of loan type to total HFI loans	44.3			42.1			11.3			2.0			0.3			100.0
December 31, 2015
Allowance for Credit Losses	$	71,181		$	23,160		$	18,976		$	5,278		$	473		$	119,068
Percent of Total Allowance for Credit Losses	59.8		%	19.5		%	15.9		%	4.4		%	0.4		%	100.0		%
Percent of loan type to total HFI loans	47.4			39.3			10.2			2.9			0.2			100.0

Problem Loans

The Company classifies loans consistent with federal banking regulations using a nine category grading system. These loan grades are described in further detail in "Item 1. Business” of this Form 10-K. The following table presents information regarding potential and actual problem loans, consisting of loans graded Special Mention, Substandard, Doubtful, and Loss, but still performing, and excluding acquired loans:

	December 31, 2019
	Number of Loans	Loan Balance		Percent of Loan Balance		Percent of Total HFI Loans
	(dollars in thousands)
Commercial and industrial	73	$	96,464	43.06	%	0.46	%
Commercial real estate	37	107,839		48.14		0.51
Construction and land development	10	18,971		8.47		0.09
Residential real estate	3	727		0.33		0.00
Consumer	1	10		0.00		0.00
Total	124	$	224,011	100.00	%	1.06	%

	December 31, 2018
	Number of Loans	Loan Balance		Percent of Loan Balance		Percent of Total HFI Loans
	(dollars in thousands)
Commercial and industrial	107	$	125,585	62.37	%	0.71	%
Commercial real estate	42	71,116		35.32		0.40
Construction and land development	3	4,040		2.01		0.02
Residential real estate	1	527		0.26		0.00
Consumer	2	75		0.04		0.00
Total	155	$	201,343	100.00	%	1.13	%

49

Goodwill and Other Intangible Assets

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill of $289.9 million and intangible assets totaling $7.7 million as of December 31, 2019, which have been allocated to the Nevada, Northern California, Technology & Innovation, and HFF operating segments.

The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. During the years ended December 31, 2019, 2018, and 2017, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary and, based on the Company's annual goodwill and intangibles impairment tests as of October 1 of each of these years, it was determined that goodwill and intangible assets are not impaired.

The following is a summary of acquired intangible assets:

	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	7,284	$	7,363	$	14,647	$	5,737	$	8,910
	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

Deferred Tax Assets

Net deferred tax assets decreased $14.0 million to $18.0 million from December 31, 2018. This overall decrease in net deferred tax assets was primarily the result of increases in the fair market value of AFS securities. In addition, there was a large decrease to the overall estimated loss reserve, which was largely offset by increases to DTLs related to premises and equipment and income associated with tax credits for lease pass-through transactions (50(d) income).

As of December 31, 2019, the Company has no deferred tax valuation allowance. As of December 31, 2018, the Company's deferred tax valuation allowance of $2.4 million related to net capital loss carryovers.

Deposits

Deposits are the primary source for funding the Company's asset growth. Total deposits increased to $22.8 billion at December 31, 2019 from $19.2 billion at December 31, 2018, an increase of $3.6 billion, or 18.9%. The increase in deposits is attributable to an increase across all deposit types, with the largest increases in savings and money market deposits of $1.8 billion and non-interest-bearing demand deposits of $1.1 billion from December 31, 2018.

WAB is a participant in the Promontory Interfinancial Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. At December 31, 2019, the Company has $407.7 million of CDARS deposits and $661.8 million of ICS deposits, compared to $322.9 million of CDARS deposits and $706.9 million of ICS deposits at December 31, 2018. At December 31, 2019 and 2018, the Company also has $1.1 billion and $718.2 million, respectively, of wholesale brokered deposits.

In addition, deposits for which the Company provides account holders with earnings credits or referral fees totaled $3.1 billion and $2.3 billion at December 31, 2019 and 2018, respectively. The Company incurred $30.5 million and $18.0 million in deposit related costs on these deposits during the year ended December 31, 2019 and 2018, respectively. These costs are reported in deposit costs as part of non-interest expense. The increase in these costs relates to both an increase in deposits eligible for earnings credits, along with higher average earnings credits paid during the first half of 2019.

50

The average balances and weighted average rates paid on deposits are presented below:

	Year Ended December 31,
	2019				2018				2017
	Average Balance		Rate		Average Balance		Rate		Average Balance		Rate
	(dollars in thousands)
Interest-bearing transaction accounts	$	2,545,806	0.82	%	$	1,891,160	0.61	%	$	1,467,231	0.27	%
Savings and money market accounts	8,125,832		1.18		6,501,241		0.85		6,208,057		0.42
Certificates of deposit	2,117,177		1.98		1,748,675		1.37		1,560,896		0.76
Total interest-bearing deposits	12,788,815		1.24		10,141,076		0.89		9,236,184		0.45
Non-interest-bearing demand deposits	8,246,232		—		7,712,791		—		6,788,783		—
Total deposits	$	21,035,047	0.75	%	$	17,853,867	0.51	%	$	16,024,967	0.26	%

Certificates of Deposit of $100,000 or More

The table below discloses the remaining maturity for certificates of deposit of $100,000 or more: 

	December 31,
	2019		2018
	(in thousands)
3 months or less	$	945,551	$	682,549
3 to 6 months	596,467		446,847
6 to 12 months	597,496		409,736
Over 12 months	101,615		99,211
Total	$	2,241,129	$	1,638,343

Other Borrowings

The Company from time to time utilizes short-term borrowed funds to support short-term liquidity needs generally created by increased loan demand. The majority of these short-term borrowed funds consist of advances from the FHLB, Federal funds purchased, and customer repurchase agreements. The Company’s borrowing capacity with the FHLB is determined based on collateral pledged, generally consisting of securities and loans. In addition, the Company has borrowing capacity from other sources, including Federal funds purchased and securities sold under agreements to repurchase. Federal funds purchased are unsecured borrowings with other banks. Securities sold under agreements to repurchase are collateralized by securities and are reflected at the amount of cash received in connection with the transaction, and may require additional collateral based on the fair value of the underlying securities. At December 31, 2019, total short-term borrowed funds consist of customer repurchase agreements of $16.7 million. At December 31, 2018, total short-term borrowed funds consisted of Federal funds purchased of $256.0 million, FHLB overnight advances of $235.0 million, and customer repurchase agreements of $22.4 million.

51

Qualifying Debt

Qualifying debt consists of subordinated debt and junior subordinated debt, inclusive of issuance costs and fair market value adjustments. At December 31, 2019, the carrying value of all subordinated debt issuances, which includes the fair value of related hedges, was $319.2 million, compared to $299.4 million at December 31, 2018.

The junior subordinated debt has contractual balances and maturity dates as follows:

		December 31,
Name of Trust	Maturity	2019			2018
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(4,812		)	(17,812		)
Junior subordinated debt, at fair value		$	61,685		$	48,685
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(4,845		)	(5,155		)
Junior subordinated debt, at amortized cost		$	12,682		$	12,372
Total junior subordinated debt		$	74,367		$	61,057

(1) The purchase accounting adjustment is being amortized over the remaining life of the trusts, pursuant to accounting guidance.

The weighted average interest rate of all junior subordinated debt as of December 31, 2019 was 4.25%, which is three-month LIBOR plus the contractual spread of 2.34%, compared to a weighted average interest rate of 5.15% at December 31, 2018.

52

Capital Resources

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items (discussed in "Note 15. Commitments and Contingencies" to the Consolidated Financial Statements) as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

As of December 31, 2019 and 2018, the Company and the Bank's capital ratios exceeded the well-capitalized thresholds, as defined by the banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2019
WAL	$	3,257,874	$	2,775,390	$	25,390,142	$	26,110,275	12.8	%	10.9	%	10.6	%	10.6	%
WAB	3,030,301		2,703,549		25,452,261		26,134,431		11.9		10.6		10.3		10.6
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

Common Stock Repurchase Plan

On December 12, 2018, the Company announced that it had adopted a common stock repurchase plan, pursuant to which the Company was authorized to repurchase up to $250 million of its shares of common stock through December 31, 2019. The Company had $94.3 million in authorized common stock repurchase capacity that expired under the original program as of December 31, 2019. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

Contractual Obligations and Off-Balance Sheet Arrangements

The Company enters into contracts for services in the ordinary course of business that may require payment for services to be provided in the future and may contain penalty clauses for early termination of the contracts. To meet the financing needs of customers, the Company has financial instruments with off-balance sheet risk, including commitments to extend credit and standby letters of credit. The Company has also committed to irrevocably and unconditionally guarantee the payments or distributions with respect to the holders of preferred securities of the Company's eight statutory business trusts to the extent that the trusts have not made such payments or distributions, including: 1) accrued and unpaid distributions; 2) the redemption price; and 3) upon a dissolution or termination of the trust, the lesser of the liquidation amount and all accrued and unpaid distributions and the amount of assets of the trust remaining available for distribution. The Company does not believe that these off-balance sheet arrangements have or are reasonably likely to have a material effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources. However, there can be no assurance that such arrangements will not have a future effect.

53

The following table sets forth the Company's significant contractual obligations as of December 31, 2019:

	Payments Due by Period
	Total		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Time deposit maturities	$	2,376,976	$	2,259,182	$	113,190	$	4,604	$	—
Qualifying debt	409,024		—		—		—		409,024
Operating lease obligations	90,145		12,369		19,637		18,067		40,072
Purchase obligations	103,303		42,683		49,301		11,319		—
Total	$	2,979,448	$	2,314,234	$	182,128	$	33,990	$	449,096

Purchase obligations primarily relate to contracts for software licensing, maintenance, and outsourced service providers.

Off-balance sheet commitments associated with outstanding letters of credit, commitments to extend credit, and credit card guarantees as of December 31, 2019 are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. 

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	8,348,421	$	2,873,303	$	3,170,848	$	1,299,506	$	1,004,764
Credit card commitments and financial guarantees	302,909		302,909		—		—		—
Letters of credit	175,778		156,375		18,786		617		—
Total	$	8,827,108	$	3,332,587	$	3,189,634	$	1,300,123	$	1,004,764

The following table sets forth certain information regarding short-term borrowings as of December 31, 2019 and the respective prior year-end balances for customer repurchase agreements, FHLB advances, and Federal funds purchased: 

	December 31,
	2019			2018			2017
	(dollars in thousands)
Customer Repurchase Accounts:
Maximum month-end balance	$	20,288		$	30,559		$	41,153
Balance at end of year	16,675			22,411			26,017
Average balance	17,182			24,421			33,842
Federal Funds Purchased
Maximum month-end balance	335,000			256,000			—
Balance at end of year	—			256,000			—
Average balance	67,851			20,542			—
FHLB Advances:
Maximum month-end balance	380,000			625,000			440,000
Balance at end of year	—			235,000			390,000
Average balance	49,589			215,699			29,781
Total Short-Term Borrowed Funds	$	16,675		$	513,411		$	416,017
Weighted average interest rate at end of year	0.15		%	2.46		%	1.33		%
Weighted average interest rate during year	1.99			1.73			0.53

54

Critical Accounting Policies

The Notes to the Consolidated Financial Statements contain a discussion of the Company's significant accounting policies, including information regarding recently issued accounting pronouncements, adoption of such policies, and the related impact of their adoption. The Company believes that certain of these policies, along with various estimates that it is required to make in recording its financial transactions, are important to have a complete understanding of the Company's financial position. In addition, these estimates require management to make complex and subjective judgments, many of which include matters with a high degree of uncertainty. The following is a summary of these critical accounting policies and significant estimates.

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains independent collateral valuation analysis for each loan over a specified dollar threshold every 12 months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, 10-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Income taxes

The Company’s income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best estimate of current and future taxes to be paid. The Company is subject to federal and state income taxes in the United States. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating the Company's ability to recover its deferred tax assets in the jurisdictions from which they arise, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates used to manage the underlying business.

Liquidity

Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates. Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in the Company's business operations or unanticipated events.

55

The ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors, creditors, and regulators. The Company's liquidity, represented by cash and amounts due from banks, federal funds sold, and non-pledged marketable securities, is a result of the Company's operating, investing, and financing activities and related cash flows. In order to ensure that funds are available when necessary, on at least a quarterly basis, the Company projects the amount of funds that will be required over a 12-month period and it also strives to maintain relationships with a diversified customer base. Liquidity requirements can also be met through short-term borrowings or the disposition of short-term assets.

The following table presents the available and outstanding balances on the Company's lines of credit:

	December 31, 2019
	Available Balance		Outstanding Balance
	(in millions)
Unsecured fed funds credit lines at correspondent banks	$	1,215.0	$	—

In addition to lines of credit, the Company has borrowing capacity with the FHLB and FRB from pledged loans and securities. The borrowing capacity, outstanding borrowings, and available credit as of December 31, 2019 are presented in the following table:

	December 31, 2019
	(in millions)
FHLB:
Borrowing capacity	$	4,483.4
Outstanding borrowings	—
Letters of credit	21.0
Total available credit	$	4,462.4
FRB:
Borrowing capacity	$	1,149.4
Outstanding borrowings	—
Total available credit	$	1,149.4

The Company has a formal liquidity policy and, in the opinion of management, its liquid assets are considered adequate to meet cash flow needs for loan funding and deposit cash withdrawals for the next 90-120 days. At December 31, 2019, there is $2.9 billion in liquid assets, comprised of $434.6 million in cash and cash equivalents and $2.5 billion in unpledged marketable securities. At December 31, 2018, the Company maintained $3.0 billion in liquid assets, comprised of $498.6 million of cash, cash equivalents, and money market investments, and $2.5 billion in unpledged marketable securities.

The Parent maintains liquidity that would be sufficient to fund its operations and certain non-bank affiliate operations for an extended period should funding from normal sources be disrupted. Since deposits are taken by WAB and not by the Parent, Parent liquidity is not dependent on the Bank's deposit balances. In the Company's analysis of Parent liquidity, it is assumed that the Parent is unable to generate funds from additional debt or equity issuances, receives no dividend income from subsidiaries and does not pay dividends to stockholders, while continuing to make nondiscretionary payments needed to maintain operations and repayment of contractual principal and interest payments owed by the Parent and affiliated companies. Under this scenario, the amount of time the Parent and its non-bank subsidiaries can operate and meet all obligations before the current liquid assets are exhausted is considered as part of the Parent liquidity analysis. Management believes the Parent maintains adequate liquidity capacity to operate without additional funding from new sources for over 12 months.

WAB maintains sufficient funding capacity to address large increases in funding requirements, such as deposit outflows. This capacity is comprised of liquidity derived from a reduction in asset levels and various secured funding sources. On a long-term basis, the Company’s liquidity will be met by changing the relative distribution of its asset portfolios (for example, by reducing investment or loan volumes, or selling or encumbering assets). Further, the Company can increase liquidity by soliciting higher levels of deposit accounts through promotional activities and/or borrowing from the FHLB of San Francisco and the FRB. At December 31, 2019, the Company's long-term liquidity needs primarily relate to funds required to support loan originations, commitments, and deposit withdrawals, which can be met by cash flows from investment payments and maturities, and investment sales, if necessary.

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The Company’s liquidity is comprised of three primary classifications: 1) cash flows provided by operating activities; 2) cash flows used in investing activities; and 3) cash flows provided by financing activities. Net cash provided by or used in operating activities consists primarily of net income, adjusted for changes in certain other asset and liability accounts and certain non-cash income and expense items, such as the provision for credit losses, investment and other amortization and depreciation. For the years ended December 31, 2019, 2018, and 2017, net cash provided by operating activities was $717.8 million, $541.0 million, and $383.8 million, respectively.

The Company's primary investing activities are the origination of real estate and commercial loans, the collection of repayments of these loans, and the purchase and sale of securities. The Company's net cash provided by and used in investing activities has been primarily influenced by its loan and securities activities. The net increase in loans for the years ended December 31, 2019, 2018, and 2017, was $3.4 billion, $2.6 billion, and $1.9 billion, respectively. The net increase in investment securities for the years ended December 31, 2019, 2018, and 2017 was $109.5 million, $12.4 million, and $1.1 billion, respectively.

Net cash provided by financing activities has been impacted significantly by increased deposit levels. During the years ended December 31, 2019, 2018, and 2017, net deposits increased $3.6 billion, $2.2 billion, and $2.4 billion, respectively.

Fluctuations in core deposit levels may increase the Company's need for liquidity as certificates of deposit mature or are withdrawn before maturity, and as non-maturity deposits, such as checking and savings account balances, are withdrawn. Additionally, the Company is exposed to the risk that customers with large deposit balances will withdraw all or a portion of such deposits, due in part to the FDIC limitations on the amount of insurance coverage provided to depositors. To mitigate the uninsured deposit risk, the Company participates in the CDARS and ICS programs, which allow an individual customer to invest up to $50.0 million and $120.0 million, respectively, through one participating financial institution, or a combined total of $185.0 million per individual customer, with the entire amount being covered by FDIC insurance. As of December 31, 2019, the Company has $407.7 million of CDARS and $661.8 million of ICS deposits.

As of December 31, 2019, the Company has $1.1 billion of wholesale brokered deposits outstanding. Brokered deposits are generally considered to be deposits that have been received from a third party who is engaged in the business of placing deposits on behalf of others. A traditional deposit broker will direct deposits to the banking institution offering the highest interest rate available. Federal banking laws and regulations place restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship based and are at a greater risk of being withdrawn and placed on deposit at another institution offering a higher interest rate, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts.

Federal and state banking regulations place certain restrictions on dividends paid. The total amount of dividends that may be paid at any date is generally limited to the retained earnings of the bank. Dividends paid by WAB to the Parent would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. During the year ended December 31, 2019, WAB and LVSP paid dividends to the Parent of $130.0 million and $4.0 million, respectively. Subsequent to December 31, 2019, WAB paid dividends to the Parent of $35.0 million.

Recent accounting pronouncements

See "Note 1. Summary of Significant Accounting Policies," of the Notes to Consolidated Financial Statements contained in Item 8. Financial Statements and Supplementary Data for information on recent and recently adopted accounting pronouncements and their expected impact, if any, on the Company's Consolidated Financial Statements.

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SUPERVISION AND REGULATION

WAL, WAB, and certain of its non-banking subsidiaries are subject to comprehensive regulation under federal and state laws. The regulatory framework applicable to bank holding companies and their subsidiary banks is intended to protect depositors, the DIF, and the U.S. banking system as a whole. This system is not designed to protect equity investors in bank holding companies such as WAL.

Set forth below is a summary of the significant laws and regulations applicable to WAL and its subsidiaries. The description that follows is qualified in its entirety by reference to the full text of the statutes, regulations, and policies that are described. Such statutes, regulations, and policies are subject to ongoing review by Congress and state legislatures and federal and state regulatory agencies. A change in any of the statutes, regulations, or regulatory policies applicable to WAL and its subsidiaries could have a material effect on the results of the Company.

Overview

WAL is a separate and distinct legal entity from WAB and its other subsidiaries. As a registered bank holding company, WAL is subject to inspection, examination, and supervision by the FRB, and is regulated under the BHCA. WAL is also under the jurisdiction of the SEC and is subject to the disclosure and other regulatory requirements of the Securities Act of 1933, as amended, and the Exchange Act, as administered by the SEC. The Company’s common stock is listed on the NYSE under the trading symbol “WAL” and the Company is subject to the rules of the NYSE for listed companies. The Company is a financial institution holding company within the meaning of Arizona law. WAL provides a full spectrum of deposit, lending, treasury management, and online banking products and services through WAB, its wholly-owned banking subsidiary. WAB is an Arizona chartered bank and a member of the Federal Reserve System. WAB operates the following full-service banking divisions: ABA, BON, Bridge, FIB, and TPB. WAB is subject to the supervision of, and to regular examination by, the Arizona Department of Financial Institutions, the FRB as its primary federal regulator, and the FDIC as its deposit insurer. WAB's deposits are insured by the FDIC up to the applicable deposit insurance limits in accordance with FDIC laws and regulations. The Company also serves business customers through a national platform of specialized financial services providers.

WAL and WAB are also supervised by the CFPB for compliance with federal consumer financial protection laws. The Company’s non-bank subsidiaries are subject to federal and state laws and regulations, including regulations of the FRB.

The Dodd-Frank Act significantly changed the financial regulatory regime in the United States. Since the enactment of the Dodd-Frank Act, U.S. banks and financial services firms have been subject to enhanced regulation and oversight. Several provisions of the Dodd-Frank Act are subject to further rulemaking, guidance, and interpretation by the federal banking agencies. While the current administration and its appointees to the federal banking agencies have expressed interest in reviewing, revising, and perhaps repealing portions of the Dodd-Frank Act and certain of its implementing regulations, is not clear whether any such legislation or regulatory changes will be enacted or, if enacted, what the effect on the Company would be. 

EGRRCPA

On May 24, 2018, the President signed into law the EGRRCPA which, among other things, amended certain provisions of the Dodd-Frank Act. The EGRRCPA provides limited regulatory relief to certain financial institutions while preserving the existing framework under which U.S. financial institutions are regulated. The EGRRCPA relieves bank holding companies with less than $100 billion in assets, such as the Company, from the enhanced prudential standards imposed under Section 165 of the Dodd-Frank Act (including, but not limited to, resolution planning and enhanced liquidity and risk management requirements). In addition to amending the Dodd-Frank Act, the EGRRCPA also includes certain additional banking-related provisions, consumer protection provisions and securities law-related provisions. While many of the EGRRCPA’s changes have been implemented through rules adopted by federal agencies, the Company expects to continue to evaluate the potential impact of the EGRRCPA as it is further implemented.

Bank Holding Company Regulation

WAL is a bank holding company as defined under the BHCA. The BHCA generally limits the business of bank holding companies to banking, managing or controlling banks, and other activities that the FRB has determined to be so closely related to banking as to be a proper incident thereto. Business activities that have been determined to be related to banking, and therefore appropriate for bank holding companies and their affiliates to engage in, include securities brokerage services, investment advisory services, fiduciary services, and certain management advisory and data processing services, among others. Bank holding companies that have elected to become financial holding companies may engage in any activity, or acquire and retain the shares of a company engaged in any activity that is either: (i) financial in nature or incidental to such financial activity (as determined by the FRB in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity, and that does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the FRB).

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Activities that are financial in nature include securities underwriting and dealing, insurance underwriting, and making merchant banking investments.

Mergers and Acquisitions

The BHCA, the Bank Merger Act, and other federal and state statutes regulate the direct and indirect acquisition of depository institutions. The BHCA requires prior FRB approval for a bank holding company to acquire, directly or indirectly, 5% or more of any class of voting securities of a commercial bank or its parent holding company and for a company, other than a bank holding company, to acquire 25% or more of any class of voting securities of a bank or bank holding company. Under the Change in Bank Control Act, any person, including a company, may not acquire, directly or indirectly, control of a bank without providing 60 days’ prior notice and receiving a non-objection from the appropriate federal banking agency.

Under the Bank Merger Act, the prior approval of the appropriate federal banking agency is required for insured depository institutions to merge or enter into purchase and assumption transactions. In reviewing applications seeking approval of merger and purchase and assumption transactions, the federal banking agencies will consider, among other things, the competitive effect and public benefits of the transactions, the capital position of the combined banking organization, the applicant's performance record under the CRA, and the effectiveness of the subject organizations in combating money laundering activities. For further information relating to the CRA, see the section titled “Community Reinvestment Act and Fair Lending Laws.”

Under Section 6-142 of the Arizona Revised Statutes, no person may acquire control of a company that controls an Arizona bank without the prior approval of the Arizona Superintendent of Financial Institutions, or Arizona Superintendent. A person who has the power to vote 15% or more of the voting stock of a controlling company is presumed to control the company.

Enhanced Prudential Standards

Section 165 of the Dodd-Frank Act imposes enhanced prudential standards on larger banking organizations, with certain of these standards applicable to banking organizations over $10 billion, including WAL and WAB, as of the quarter ending June 30, 2014. In October 2012, the FDIC, the OCC, and the FRB issued separate but similar rules requiring covered banks and bank holding companies with $10 billion to $50 billion in total consolidated assets to conduct an annual company-run stress test. WAL and WAB conducted a company-run capital stress test as required by the Dodd-Frank Act in 2017 and provided the results to the FRB. WAL found the Company would have sufficient capital to maintain regulatory capital levels throughout an economic downturn.

As a result of passage of the EGRRCPA, bank holding companies with less than $100 billion in assets, such as the Company, are exempt from the enhanced prudential standards imposed under Section 165 of the Dodd-Frank Act (including, but not limited to, the resolution planning and enhanced liquidity and risk management requirements therein). Notwithstanding these changes, the capital planning and risk management practices of the Company and the Bank will continue to be reviewed through the regular supervisory processes of the FRB.

In February 2014, the FRB issued a rule further implementing the enhanced prudential standards required by the Dodd-Frank Act. Although most of the standards apply only to bank holding companies with more than $50 billion in assets, as directed by the Dodd-Frank Act, the rule contains certain standards that apply to bank holding companies with more than $10 billion in assets, including a requirement to establish a risk committee of the Company's BOD to manage enterprise-wide risk. The Company meets these requirements. The EGRRCPA increased the asset threshold for requiring a bank holding company to establish a separate risk committee of independent directors from $10 billion to $50 billion. Notwithstanding this change, the Company has retained its separate risk committee of independent directors.

Volcker Rule

Section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule, restricts the ability of banking entities, such as the Company and WAB, from: (i) engaging in “proprietary trading” and (ii) investing in or sponsoring certain covered funds, subject to certain limited exceptions. Under the Volcker Rule, the term "covered funds" is defined as any issuer that would be an investment company under the Investment Company Act but for the exemption in Section 3(c)(1) or 3(c)(7) of that Act, which includes CLO and CDO securities. There are also several exemptions from the definition of covered fund, including, among other things, loan securitizations, joint ventures, certain types of foreign funds, entities issuing asset-backed commercial paper, and registered investment companies. Further, the final rules permit banking entities, subject to certain conditions and limitations, to invest in or sponsor a covered fund in connection with: (1) organizing and offering the covered fund; (2) certain risk-mitigating hedging activities; and (3) de minimis investments in covered funds. The EGRRCPA and subsequent promulgation of inter-agency final rules have aimed at simplifying and tailoring requirements related to the Volcker Rule, including by eliminating collection of certain metrics and reducing the compliance burdens associated with other metrics for banks with less than $20 billion in average trading assets and liabilities. Compliance with the Volcker Rule was required by July 21, 2017 and the Company believes it is fully compliant.

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Dividends

Historically, the Company has not declared or paid cash dividends on its common stock, electing instead to retain earnings for growth. On July 30, 2019, WAL's BOD authorized the payment of regular quarterly dividends, declaring the Company's first quarterly cash dividend of $0.25 per share of common stock, which was paid on August 30, 2019. Whether the Company continues to pay quarterly dividends and the amount of any such dividends will be at the discretion of WAL's BOD and will depend on the Company’s earnings, financial condition, results of operations, business prospects, capital requirements, regulatory restrictions, contractual restrictions, and other factors that the BOD may deem relevant.

The Company’s ability to pay dividends is subject to the regulatory authority of the FRB. The supervisory concern of the FRB focuses on a bank holding company’s capital position, its ability to meet its financial obligations as they come due, and its capacity to act as a source of financial strength to its insured depository institution subsidiaries. In addition, FRB policy discourages the payment of dividends by a bank holding company that is not supported by current operating earnings.

As a Delaware corporation, the Company is also subject to limitations under Delaware law on the payment of dividends. Under the Delaware General Corporation Law, dividends may only be paid out of surplus or out of net profits for the year in which the dividend is declared or the preceding year, and no dividends may be paid on common stock at any time during which the capital of outstanding preferred stock or preference stock exceeds the Company's net assets.

From time to time, the Company may become a party to financing agreements and other contractual obligations that have the effect of limiting or prohibiting the declaration or payment of dividends under certain circumstances. Holding company expenses and obligations with respect to its outstanding trust preferred securities and corresponding subordinated debt also may limit or impair the Company’s ability to declare and pay dividends.

Since the Company has no significant assets other than the voting stock of its subsidiaries, it currently depends on dividends from WAB and, to a lesser extent, its non-bank subsidiaries, for a substantial portion of its revenue and as the primary sources of its cash flow. The ability of a state member bank, such as WAB, to pay cash dividends is restricted by the FRB and the State of Arizona. The FRB’s Regulation H states that a member bank may not declare or pay a dividend if the total of all dividends declared during that calendar year exceed the bank’s net income during that calendar year and the retained net income of the prior two years. Further, without receiving prior approval from both the FRB and two-thirds of its shareholders, a bank cannot declare or pay a dividend that would exceed its undivided profits or withdraw any portion of its permanent capital.

Under Section 6-187 of the Arizona Revised Statutes, WAB may pay dividends on the same basis as any other Arizona corporation, except that cash dividends paid out of capital surplus require the prior approval of the Arizona Superintendent. Under Section 10-640 of the Arizona Revised Statutes, a corporation may not make a distribution to stockholders if to do so would render the corporation insolvent or unable to pay its debts as they become due. However, an Arizona bank may not declare a non-stock dividend out of capital surplus without the approval of the Arizona Superintendent.

Federal Reserve System

As a member of the Federal Reserve System, WAB is required by law to maintain reserves against its transaction deposits. The reserves must be held in cash or with the FRB. Banks are permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total of reserve balances was approximately $164.1 million and $145.9 million as of December 31, 2019 and 2018, respectively.

Source of Strength Doctrine

FRB policy requires bank holding companies to act as a source of financial and managerial strength to their subsidiary banks. Section 616 of the Dodd-Frank Act codified the requirement that bank holding companies act as a source of financial strength. As a result, the Company is expected to commit resources to support WAB, including at times when the Company may not be in a financial position to provide such resources. Any capital loans by a bank holding company to any of its subsidiary banks are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary banks. The U.S. Bankruptcy Code provides that, in the event of a bank holding company's bankruptcy, any commitment by the bank holding company to a federal banking agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to priority of payment.

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Capital Adequacy and Prompt Corrective Action

The Capital Rules established a comprehensive capital framework for U.S. banking organizations. The Capital Rules generally implement the Basel Committee's Basel III final capital framework for strengthening international capital standards. The Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replaced the existing general risk-weighting approach with a more risk-sensitive approach.

The Capital Rules: (i) include CET1 and the related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to existing regulations. Under the Capital Rules, for most banking organizations, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated notes and a portion of the allocation for loan and lease losses, in each case, subject to the Capital Rules’ specific requirements.

Pursuant to the Capital Rules, the minimum capital ratios are as follows:

• 4.5% CET1 to risk-weighted assets;

• 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

• 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

• 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (called “leverage ratio”).

The Capital Rules also include a “capital conservation buffer,” composed entirely of CET1, in addition to these minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity, and other capital instrument repurchases and compensation based on the amount of the shortfall. The Capital Rules became fully phased-in on January 1, 2019. Thus, the capital standards applicable to the Company include an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios inclusive of the capital conservation buffer of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%.

The Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing assets, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1. The Capital Rules further prescribe that the effects of accumulated other comprehensive income or loss items reported as a component of stockholders’ equity be included in CET1 capital; however, non-advanced approaches banking organizations may make a one-time permanent election to exclude these items. The Company, as a non-advanced approaches institution, has made this one-time election.

The Capital Rules also preclude certain hybrid securities, such as trust preferred securities, issued on or after May 19, 2010 from inclusion in bank holding companies’ Tier 1 capital. The Company has used trust preferred securities in the past as a tool for raising additional Tier 1 capital and otherwise improving its regulatory capital ratios. Although the Company may continue to include its existing trust preferred securities as Tier 1 capital, the prohibition on the use of these securities as Tier 1 capital going forward may limit the Company’s ability to raise capital in the future.

The risk-weighting categories in the Capital Rules are standardized and include a risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset classes.

In September 2017, the federal banking agencies proposed simplifying the Capital Rules. On July 9, 2019, the federal banking agencies adopted a final rule (replacing a substantially similar interim rule) to simplify several requirements of the regulatory capital rules for non-advanced approaches institutions, such as the Company. The final rule simplifies the capital treatment for mortgage servicing assets, certain deferred tax assets, investments in the capital instruments of unconsolidated financial institutions, and minority interest. The final rule will be effective as of April 1, 2020 for the amendments to simplify the capital rules.

Management believes the Company is in compliance, and will continue to be in compliance, with the targeted capital ratios.

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Prompt Corrective Action and Safety and Soundness

Pursuant to Section 38 of the FDIA, federal banking agencies are required to take “prompt corrective action” should a depository institution fail to meet certain capital adequacy standards. At each successive lower capital category, an insured depository institution is subject to more restrictions and prohibitions, including restrictions on growth, restrictions on interest rates paid on deposits, restrictions or prohibitions on payment of dividends and restrictions on the acceptance of brokered deposits. Furthermore, if an insured depository institution is classified in one of the undercapitalized categories, it is required to submit a capital restoration plan to the appropriate federal banking agency, and the holding company must guarantee the performance of that plan. Based upon its capital levels, a bank that is classified as well-capitalized, adequately capitalized, or undercapitalized may be treated as though it were in the next lower capital category if the appropriate federal banking agency, after notice and opportunity for hearing, determines that an unsafe or unsound condition, or an unsafe or unsound practice, warrants such treatment.

For purposes of prompt corrective action, to be: (i) well-capitalized, a bank must have a total risk based capital ratio of at least 10%, a Tier 1 risk based capital ratio of at least 8%, a CET1 risk based capital ratio of at least 6.5%, and a Tier 1 leverage ratio of at least 5%; (ii) adequately capitalized, a bank must have a total risk based capital ratio of at least 8%, a Tier 1 risk based capital ratio of at least 6%, a CET1 risk based capital ratio of at least 4.5%, and a Tier 1 leverage ratio of at least 4%; (iii) undercapitalized, a bank would have a total risk based capital ratio of less than 8%, a Tier 1 risk based capital ratio of less than 6%, a CET1 risk based capital ratio of less than 4.5%, and a Tier 1 leverage ratio of less than 4%; (iv) significantly undercapitalized, a bank would have a total risk based capital ratio of less than 6%, a Tier 1 risk based capital ratio of less than 4%, a CET1 risk based capital ratio of less than 3%, and a Tier 1 leverage ratio of less than 3%; (v) critically undercapitalized, a bank would have a ratio of tangible equity to total assets that is less than or equal to 2%.

Bank holding companies and insured banks also may be subject to potential enforcement actions of varying levels of severity by the federal banking agencies for unsafe or unsound practices in conducting their business, or for violation of any law, rule, regulation, condition imposed in writing by the agency or term of a written agreement with the agency. In more serious cases, enforcement actions may include: (i) the issuance of directives to increase capital; (ii) the issuance of formal and informal agreements; (iii) the imposition of civil monetary penalties; (iv) the issuance of a cease and desist order that can be judicially enforced; (v) the issuance of removal and prohibition orders against officers, directors, and other institution-affiliated parties; (vi) the termination of the bank’s deposit insurance; (vii) the appointment of a conservator or receiver for the bank; and (viii) the enforcement of such actions through injunctions or restraining orders based upon a judicial determination that the agency would be harmed if such equitable relief was not granted.

Transactions with Affiliates and Insiders

Under federal law, transactions between insured depository institutions and their affiliates are governed by Sections 23A and 23B of the FRA and implementing Regulation W. In a bank holding company context, at a minimum, the parent holding company of a bank, and any companies which are controlled by such parent holding company, are affiliates of the bank. Generally, Sections 23A and 23B of the FRA are intended to protect insured depository institutions from losses arising from transactions with non-insured affiliates by limiting the extent to which a bank or its subsidiaries may engage in covered transactions with any one affiliate and with all affiliates of the bank in the aggregate, and requiring that such transactions be on terms consistent with safe and sound banking practices.

Further, Section 22(h) of the FRA and its implementing Regulation O restricts loans to directors, executive officers, and principal stockholders (“insiders”). Under Section 22(h), loans to insiders and their related interests may not exceed, together with all other outstanding loans to such persons and affiliated entities, the institution's total capital and surplus. Loans to insiders above specified amounts must receive the prior approval of the BOD. Further, under Section 22(h) of the FRA, loans to directors, executive officers, and principal stockholders must be made on terms substantially the same as offered in comparable transactions to other persons, except that such insiders may receive preferential loans made under a benefit or compensation program that is widely available to the bank's employees and does not give preference to the insider over the employees. Section 22(g) of the FRA places additional limitations on loans to executive officers.

Lending Limits

In addition to the requirements set forth above, state banking law generally limits the amount of funds that a state-chartered bank may lend to a single borrower. Under Section 6-352 of the Arizona Revised Statutes, the obligations of one borrower to a bank may not exceed 20% of the bank’s capital, plus an additional 10% of its capital if the additional amounts are fully secured by readily marketable collateral.

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Brokered Deposits

Section 29 of the FDIA and FDIC regulations generally limit the ability of any bank to accept, renew or roll over any brokered deposit unless it is “well capitalized” or, with the FDIC’s approval, “adequately capitalized.” However, as a result of the EGRRCPA, the FDIC has undertaken a comprehensive review of its regulatory approach to brokered deposits, including reciprocal deposits, and interest rate caps applicable to banks that are less than “well capitalized.” On December 12, 2019, the FDIC issued a notice of proposed rulemaking to modernize its brokered deposit regulations. At this time, it is difficult to predict what changes, if any, to the brokered deposit regulations will actually be implemented or the effect of such changes on the Bank.

Consumer Protection and CFPB Supervision

The Dodd-Frank Act centralized responsibility for consumer financial protection by creating the CFPB, an independent agency charged with responsibility for implementing, enforcing, and examining compliance with federal consumer financial protection laws. The Company is subject to a number of federal and state laws designed to protect borrowers and promote lending to various sectors of the economy and population. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Procedures Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Practices Act, various state law counterparts, and the Consumer Financial Protection Act of 2010, which is part of the Dodd-Frank Act. The Dodd-Frank Act does not prevent states from adopting stricter consumer protection standards. State regulation of financial products and potential enforcement actions could also adversely affect the Company’s business, financial condition, or operations.

Depositor Preference

The FDIA provides that, in the event of the “liquidation or other resolution” of an insured depository institution, the claims of depositors of the institution, including the claims of the FDIC as subrogee of insured depositors, and certain claims for administrative expenses of the FDIC as a receiver, will have priority over other general unsecured claims against the institution. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including the parent bank holding company, with respect to any extensions of credit they have made to such insured depository institution.

Federal Deposit Insurance

Substantially all of the deposits of WAB are insured up to applicable limits by the FDIC’s DIF. The basic limit on FDIC deposit insurance is $250,000 per depositor. WAB is subject to deposit insurance assessments to maintain the DIF.

The FDIC uses a risk-based assessment system that imposes insurance premiums based upon a risk matrix that takes into account a bank's CAMELS rating. The risk matrix utilizes different risk categories distinguished by capital levels and supervisory ratings. As a result of the Dodd-Frank Act, the base for insurance assessments is now consolidated average assets less average tangible equity. Assessment rates are calculated using formulas that take into account the risk of the institution being assessed. WAB is classified as, and subject to the scorecard for, a large and highly complex institution to determine its total base assessment rate.

The Dodd-Frank Act requires that the FDIC raise the minimum reserve ratio of the DIF from 1.15% to 1.35%, and that the FDIC offset the effect of this increase on insured depository institutions with total consolidated assets of less than $10 billion. In March 2016, the FDIC finalized a rule to impose a surcharge of 4.5 cents per $100 of their assessment base on deposit insurance assessment rates paid by insured depository institutions with total consolidated assets of more than $10 billion. As of June 30, 2016, the minimum reserve ratio reached 1.17% and as such, WAB was subject to the surcharge beginning July 1, 2016. At September 30, 2018, the reserve ratio reached 1.36%, exceeding the statutorily required minimum. As a result, WAB was no longer subject to the surcharge as of September 30, 2018. The FDIC also has authority to further increase deposit insurance assessments. FDIC deposit insurance expense also includes FICO assessments related to outstanding FICO bonds. These assessments will continue until the FICO bonds mature, with such maturities beginning in 2017 and continuing through 2019.

Under the FDIA, the FDIC may terminate deposit insurance upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC. The Company’s management is not aware of any practice, condition, or violation that might lead to the termination of its deposit insurance.

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Financial Privacy and Data Security

The Company is subject to federal laws, including the GLBA, and certain state laws containing consumer privacy protection provisions. These provisions limit the ability of banks and other financial institutions to disclose non-public information about consumers to affiliated and non-affiliated third parties and limit the reuse of certain consumer information received from non-affiliated institutions. These provisions require notice of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to affiliates or non-affiliated third parties by means of “opt out” or “opt in” authorizations.

For example, in August 2018, the CFPB published its final rule to update Regulation P pursuant to the amended GLBA. Under this rule, certain qualifying financial institutions are not required to provide annual privacy notices to customers. To qualify, a financial institution must not share nonpublic personal information about customers except as described in certain statutory exceptions that do not trigger a customer’s statutory opt-out right. In addition, the financial institution must not have changed its disclosure policies and practices from those disclosed in its most recent privacy notice. The rule sets forth timing requirements for delivery of annual privacy notices in the event that a financial institution that qualified for the annual notice exemption later changes its policies or practices in such a way that it no longer qualifies for the exemption.

The GLBA also requires that financial institutions implement comprehensive written information security programs that include administrative, technical, and physical safeguards to protect consumer information. Further, pursuant to interpretive guidance issued under the GLBA and certain state laws, financial institutions are required to notify customers of security breaches that result in unauthorized access to their nonpublic personal information.

For example, under California law, every business that owns or licenses personal information about a California resident must maintain reasonable security procedures and policies to protect that information and comply with specific requirements relating to the destruction of records containing personal information and disclosure of breaches to customers, and restrictions on the use of customer information unless the customer "opts in." Other states, including Arizona and Nevada where WAB has branches, may also have applicable laws requiring businesses that retain consumer personal information to develop reasonable security policies and procedures, notify consumers of a security breach, or provide disclosures about the use and sharing of consumer personal information.

The federal banking agencies, including the FRB, through the Federal Financial Institutions Examination Council, have adopted guidelines to encourage financial institutions to address cybersecurity risks and identify, assess, and mitigate these risks, both internally and at critical third-party services providers. In October 2016, the federal bank regulatory agencies issued proposed rules on enhanced cybersecurity risk management and resilience standards that would apply to very large financial institutions and to services provided by third parties to these institutions. The comment period for these proposed rules has closed and a final rule has not been published. Although the proposed rules would apply only to bank holding companies and banks with $50 billion or more in total consolidated assets, these rules could influence the federal bank regulatory agencies’ expectations and supervisory requirements for information security standards and cybersecurity programs of financial institutions with less than $50 billion in total consolidated assets.

These laws and regulations impose compliance costs and create obligations and, in some cases, reporting obligations, and compliance with these laws, regulations, and obligations require significant resources of WAL and WAB.

Community Reinvestment Act and Fair Lending Laws

WAB has a responsibility under the CRA to help meet the credit needs of its communities, including low and moderate income neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions nor does it limit an institution's discretion to develop the types of products and services that it believes are best suited to its particular community, consistent with the CRA. In addition, the Equal Credit Opportunity Act and the Fair Housing Act prohibit discrimination in lending practices on the basis of characteristics specified in those statutes. WAB’s failure to comply with the provisions of the CRA could, at a minimum, result in regulatory restrictions on its activities and the activities of the Company. WAB’s failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions. WAB received a rating of “Satisfactory” in its most recent CRA examination, in January 2019.

On December 17, 2019, the OCC and the FDIC issued a joint notice of proposed rulemaking to modernize the regulations implementing the CRA. While the proposed rule will not apply to WAB because its primary federal regulator is the FRB, it may impact the overall environment as it relates to CRA compliance and portend future changes by the FRB. Under the rulemaking, the federal banking agencies intend to: (i) clarify which activities qualify for CRA credit; (ii) update where activities count for CRA credit; (iii) create a more transparent and objective method for measuring CRA performance; and (iv) provide for more transparent, consistent, and timely CRA-related data collection, record keeping, and reporting. WAL and WAB expect to monitor

64

developments with respect to this rulemaking and assess the impact, if any, of changes to the CRA regulations proposed by the federal banking agencies.

Federal Home Loan Bank of San Francisco

WAB is a member of the FHLB of San Francisco, which is one of 12 regional FHLBs that provide funding to their members to support residential lending, as well as affordable housing and community development loans. Each FHLB serves as a reserve, or central bank, for the members within its assigned region. Each FHLB makes loans to its members in accordance with policies and procedures established by the board of directors of the FHLB. As a member, WAB must purchase and maintain stock in the FHLB of San Francisco. At December 31, 2019, WAB’s total investment in FHLB stock was $17.3 million.

Incentive Compensation

The Dodd-Frank Act requires the federal banking agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities, including the Company and WAB, with at least $1 billion in total consolidated assets, that encourage inappropriate risks by providing an executive officer, employee, director, or principal shareholder with excessive compensation, fees, or benefits that could lead to material financial loss to the entity. The federal banking agencies and the SEC most recently proposed such regulations in 2016, but the regulations have not yet been finalized. If the regulations are adopted in the form initially proposed, they will restrict the manner in which executive compensation is structured.

The Dodd-Frank Act also requires publicly traded companies to give stockholders a non-binding vote on executive compensation at least every three years and on so-called “golden parachute” payments in connection with approvals of mergers and acquisitions. WAL gives stockholders a non-binding vote on executive compensation annually.

Preventing Suspicious Activity

Under Title III of the USA PATRIOT Act, all financial institutions are required to take certain measures to identify their customers, prevent money laundering, monitor customer transactions, and report suspicious activity to U.S. law enforcement agencies. Financial institutions also are required to respond to requests for information from federal banking agencies and law enforcement agencies. Information sharing among financial institutions for the above purposes is encouraged by an exemption granted to complying financial institutions from the privacy provisions of the GLBA and other privacy laws. Financial institutions that hold correspondent accounts for foreign banks or provide private banking services to foreign individuals are required to take measures to avoid dealing with certain foreign individuals or entities, including foreign banks with profiles that raise money laundering concerns, and are prohibited from dealing with foreign “shell banks” and persons from jurisdictions of particular concern. The primary federal banking agencies and the Secretary of the Treasury have adopted regulations to implement several of these provisions. The new Customer Due Diligence Rule, that was effective beginning May 11, 2018, clarified and strengthened the existing obligations for identifying new and existing customers and explicitly included risk-based procedures for conducting ongoing customer due diligence. All financial institutions also are required to establish internal anti-money laundering programs. The effectiveness of a financial institution in combating money laundering activities is a factor to be considered in any application submitted by the financial institution under the Bank Merger Act. The Company has a Bank Secrecy Act and USA PATRIOT Act Board-approved compliance program and engages in relatively few transactions with foreign financial institutions or foreign persons.

The FCRA’s Red Flags Rule requires financial institutions with covered accounts (e.g., consumer bank accounts and loans) to develop, implement, and administer an identity theft prevention program. This program must include reasonable policies and procedures to detect suspicious patterns or practices that indicate the possibility of identity theft, such as inconsistencies in personal information or changes in account activity.

Office of Foreign Assets Control Regulation

The United States has imposed economic sanctions that affect transactions with designated foreign countries, nationals, and others. These are typically known as the OFAC rules based on their administration by the OFAC. The OFAC-administered sanctions targeting countries take many different forms. Generally, they contain one or more of the following elements: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on “U.S. persons” engaging in financial transactions relating to making investments in, or providing investment-related advice or assistance to, a sanctioned country; and (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons). Blocked assets (property and bank deposits) cannot be paid out, withdrawn, set off, or transferred in any manner without a license from OFAC. Failure to comply with these sanctions could have serious legal and reputational consequences.

65

Future Legislative Initiatives

Federal and state legislatures may introduce legislation that will impact the financial services industry. In addition, federal banking agencies may introduce regulatory initiatives that are likely to impact the financial services industry, generally. However it is not clear whether such changes will be enacted or, if enacted, what their effect on the Company will be. New legislation could change banking statutes and the operating environment of the Company in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities, or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions. The Company cannot predict whether any such legislation will be enacted, and, if enacted, the effect that it or any implementing regulations would have on the financial condition or results of operations of the Company. A change in statutes, regulations, or regulatory policies applicable to WAL or any of its subsidiaries could have a material effect on the business of the Company.

66

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

Market risk is the risk of loss in a financial instrument arising from adverse changes in market prices, interest rates, foreign currency exchange rates, commodity prices, and equity prices. The Company's market risk arises primarily from interest rate risk inherent in its lending, investing, and deposit taking activities. To that end, management actively monitors and manages the Company's interest rate risk exposure. The Company generally manages its interest rate sensitivity by evaluating re-pricing opportunities on its earning assets to those on its funding liabilities.

Management uses various asset/liability strategies to manage the re-pricing characteristics of the Company's assets and liabilities, all of which are designed to ensure that exposure to interest rate fluctuations is limited to within the Company's guidelines of acceptable levels of risk-taking. Hedging strategies, including the terms and pricing of loans and deposits and management of the deployment of its securities, are used to reduce mismatches in interest rate re-pricing opportunities of portfolio assets and their funding sources.

Interest rate risk is addressed by the ALCO, which includes members of executive management, finance, and operations. ALCO monitors interest rate risk by analyzing the potential impact on the net EVE and net interest income from potential changes in interest rates and considers the impact of alternative strategies or changes in balance sheet structure. The Company manages its balance sheet in part to maintain the potential impact on EVE and net interest income within acceptable ranges despite changes in interest rates.

The Company's exposure to interest rate risk is reviewed at least quarterly by the ALCO. Interest rate risk exposure is measured using interest rate sensitivity analysis to determine its change in both EVE and net interest income in the event of hypothetical changes in interest rates. If potential changes to EVE and net interest income resulting from hypothetical interest rate changes are not within the limits established by the BOD, the BOD may direct management to adjust the asset and liability mix to bring interest rate risk within Board-approved limits.

Net Interest Income Simulation. In order to measure interest rate risk at December 31, 2019, the Company uses a simulation model to project changes in net interest income that result from forecasted changes in interest rates. This analysis calculates the difference between a baseline net interest income forecast using current yield curves that do not take into consideration any future anticipated rate hikes, compared to forecasted net income resulting from an immediate parallel shift in rates upward or downward, along with other scenarios directed by ALCO. The income simulation model includes various assumptions regarding the re-pricing relationships for each of the Company's products. Many of the Company's assets are floating rate loans, which are assumed to re-price immediately and, proportional to the change in market rates, depending on their contracted index, including the impact of caps or floors. Some loans and investments contain contractual prepayment features (embedded options) and, accordingly, the simulation model incorporates prepayment assumptions. The Company's non-term deposit products re-price concurrently with interest rate changes taken by the Federal Open Market Committee.

This analysis indicates the impact of changes in net interest income for the given set of rate changes and assumptions. It assumes the balance sheet remains static and that its structure does not change over the course of the year. It does not account for all factors that could impact the Company's results, including changes by management to mitigate interest rate changes or secondary factors, such as changes to the Company's credit risk profile as interest rates change.

Furthermore, loan prepayment rate estimates and spread relationships change regularly. Interest rate changes create changes in actual loan prepayment speeds that will differ from the market estimates incorporated in this analysis. Changes that vary significantly from the modeled assumptions may have significant effects on the Company's actual net interest income.

This simulation model assesses the changes in net interest income that would occur in response to an instantaneous and sustained increase or decrease (shock) in market interest rates. At December 31, 2019, the Company's net interest income exposure for the next 12 months related to these hypothetical changes in market interest rates was within the Company's current guidelines.

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Sensitivity of Net Interest Income

	Parallel Shift Rate Scenario (change in basis points from Base)
	Down 100			Base		Up 100			Up 200
	(in thousands)
Interest Income	$	1,198,091		$	1,302,915	$	1,437,503		$	1,576,092
Interest Expense	96,043			157,552		222,366			287,172
Net Interest Income	1,102,048			1,145,363		1,215,137			1,288,920
% Change	(3.8		)%			6.1		%	12.5		%

	Interest Rate Ramp Scenario (change in basis points from Base)
	Down 100			Base		Up 100			Up 200
	(in thousands)
Interest Income	$	1,253,569		$	1,302,915	$	1,359,077		$	1,421,736
Interest Expense	127,741			157,552		172,436			186,619
Net Interest Income	1,125,828			1,145,363		1,186,641			1,235,117
% Change	(1.7		)%			3.6		%	7.8		%

Economic Value of Equity. The Company measures the impact of market interest rate changes on the NPV of estimated cash flows from its assets, liabilities, and off-balance sheet items, defined as EVE, using a simulation model. This simulation model assesses the changes in the market value of interest rate sensitive financial instruments that would occur in response to an instantaneous and sustained increase or decrease (shock) in market interest rates.

At December 31, 2019, the Company's EVE exposure related to these hypothetical changes in market interest rates was within the Company's current guidelines. The following table shows the Company's projected change in EVE for this set of rate shocks at December 31, 2019:

Economic Value of Equity 

	Interest Rate Scenario (change in basis points from Base)
	Down 100			Base		Up 100			Up 200			Up 300			Up 400
	(in thousands)
Assets	$	27,618,706		$	27,087,840	$	26,546,699		$	26,026,259		$	25,542,390		$	25,085,162
Liabilities	22,634,719			22,035,566		21,519,248			21,072,481			20,685,165			20,346,458
Net Present Value	4,983,987			5,052,274		5,027,451			4,953,778			4,857,225			4,738,704
% Change	(1.4		)%			(0.5		)%	(1.9		)%	(3.9		)%	(6.2		)%

The computation of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates, asset prepayments, and deposit decay, and should not be relied upon as indicative of actual results. Further, the computations do not contemplate any actions the Company may undertake in response to changes in interest rates. Actual amounts may differ from the projections set forth above should market conditions vary from the underlying assumptions.

Derivative Contracts. In the normal course of business, the Company uses derivative instruments to meet the needs of its customers and manage exposure to fluctuations in interest rates. The following table summarizes the aggregate notional amounts, market values, and terms of the Company’s derivative positions as of December 31, 2019 and 2018:

Outstanding Derivatives Positions

December 31,
2019						2018
Notional		Net Value			Weighted Average Term (Years)	Notional		Net Value			Weighted Average Term (Years)
(dollars in thousands)
$	872,595	$	(53,667	)	16.1	$	1,017,773	$	(42,477	)	15.8

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Item 8. Financial Statements and Supplementary Data

The Company's Consolidated Financial Statements and Supplementary Data included in this Annual Report is immediately following the Index to Consolidated Financial Statements page to this Annual Report.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 

	PAGE
Report of Independent Registered Public Accounting Firm	70
Consolidated Balance Sheets	72
Consolidated Income Statements	73
Consolidated Statements of Comprehensive Income	75
Consolidated Statements of Stockholders’ Equity	76
Consolidated Statements of Cash Flows	77
Notes to Consolidated Financial Statements	79

69

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of

Western Alliance Bancorporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Western Alliance Bancorporation and Subsidiaries (the Company) as of December 31, 2019 and 2018, the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2019, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report, dated March 2, 2020, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for Credit Losses

As described in Notes 1 and 3 of the consolidated financial statements, the Company’s allowance for credit losses totaled $168 million as of December 31, 2019. The allowance for credit losses represents an amount considered adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors.

The allowance for credit losses consists of two components: the specific allowance for impaired loans and the general allowance for non-impaired loans. The general allowance is comprised of a quantitative reserve based on the Company’s historical charge-off experience and a qualitative reserve based on management’s evaluation of several judgmental factors. The qualitative factors evaluated by management include levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs

70

and recoveries; trends in volume and terms of loans; changes in underwriting standards and lending policies; experience, ability and depth of lending staff; national and local economic trends and conditions; changes in credit concentrations; out-of-market exposures; changes in quality of loan review system; and changes in the value of underlying collateral. The evaluation and measurement of these qualitative factors requires management to apply a significant amount of judgment and involves a high degree of estimation.

We identified the qualitative reserve of the allowance for credit losses as a critical audit matter because auditing the underlying qualitative factors used in the qualitative reserve involved a high degree of auditor judgment given the high degree of subjectivity exercised by management in developing the qualitative adjustment, which resulted in high estimation uncertainty.

Our audit procedures related to management’s evaluation and establishment of the qualitative reserve of the allowance for credit losses include the following, among others:

• We obtained an understanding of the relevant controls related to the evaluation and establishment of the qualitative reserve of the allowance for credit losses and tested such controls for design and operating effectiveness, including controls related to management’s assessment and review of the qualitative factor changes and conclusions.

• We tested management’s process and significant judgments in the evaluation and establishment of the qualitative reserve of the allowance for credit losses, which included:

◦ Evaluating management’s considerations and data utilized as a basis for the adjustments relating to qualitative reserve factors, as well as testing the completeness and accuracy of the underlying data.

◦ Evaluating the reasonableness of management’s judgments related to the qualitative and quantitative assessment of the considerations and data utilized in the determination of qualitative general reserve factors and the resulting qualitative component of the allowance for credit losses.

/s/ RSM US LLP

We have served as the Company’s auditor since 1994.

Phoenix, Arizona

March 2, 2020

71

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	December 31,
	2019			2018
	(in thousands, except shares and per share amounts)
Assets:
Cash and due from banks	$	185,977		$	180,053
Interest-bearing deposits in other financial institutions	248,619			318,519
Cash, cash equivalents, and restricted cash	434,596			498,572
Money market investments	—			7
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	3,346,310			3,276,988
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	485,107			302,905
Investment securities - equity	138,701			115,061
Investments in restricted stock, at cost	66,509			66,132
Loans - HFS	21,803			—
Loans, net of deferred loan fees and costs	21,101,493			17,710,629
Less: allowance for credit losses	(167,797		)	(152,717		)
Net loans held for investment	20,933,696			17,557,912
Premises and equipment, net	125,838			119,474
Operating lease right of use asset	72,558			—
Other assets acquired through foreclosure, net	13,850			17,924
Bank owned life insurance	174,046			170,145
Goodwill	289,895			289,895
Other intangible assets, net	7,713			9,260
Deferred tax assets, net	18,025			31,990
Investments in LIHTC and renewable energy	409,365			369,648
Other assets	283,936			283,573
Total assets	$	26,821,948		$	23,109,486
Liabilities:
Deposits:
Non-interest-bearing demand	$	8,537,905		$	7,456,141
Interest-bearing	14,258,588			11,721,306
Total deposits	22,796,493			19,177,447
Customer repurchase agreements	16,675			22,411
Other borrowings	—			491,000
Qualifying debt	393,563			360,458
Operating lease liability	78,112			—
Other liabilities	520,357			444,436
Total liabilities	23,805,200			20,495,752
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock - par value $0.0001; 200,000,000 authorized; 104,527,544 shares issued at December 31, 2019 and 106,741,870 at December 31, 2018	10			10
Treasury stock, at cost (2,003,873 shares at December 31, 2019 and 1,793,231 shares at December 31, 2018)	(62,728		)	(53,083		)
Additional paid in capital	1,374,141			1,417,724
Accumulated other comprehensive income (loss)	25,008			(33,622		)
Retained earnings	1,680,317			1,282,705
Total stockholders’ equity	3,016,748			2,613,734
Total liabilities and stockholders’ equity	$	26,821,948		$	23,109,486

See accompanying Notes to Consolidated Financial Statements.

72

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

	Year Ended December 31,
	2019		2018			2017
	(in thousands, except per share amounts)
Interest income:
Loans, including fees	$	1,093,070	$	910,577		$	747,510
Investment securities	111,939		106,752			83,354
Dividends	6,133		7,915			7,740
Other	13,903		8,239			6,909
Total interest income	1,225,045		1,033,483			845,513
Interest expense:
Deposits	158,405		90,464			41,965
Other borrowings	1,372		4,329			561
Qualifying debt	23,390		22,287			18,273
Other	1,466		524			50
Total interest expense	184,633		117,604			60,849
Net interest income	1,040,412		915,879			784,664
Provision for credit losses	18,500		23,000			17,250
Net interest income after provision for credit losses	1,021,912		892,879			767,414
Non-interest income:
Service charges and fees	23,353		22,295			20,346
Income from equity investments	8,290		8,595			4,496
Card income	6,979		8,009			6,313
Foreign currency income	4,987		4,760			3,536
Income from bank owned life insurance	3,901		3,946			3,861
Lending related income and gains (losses) on sale of loans, net	3,158		4,340			2,212
Gain (loss) on sales of investment securities, net	3,152		(7,656		)	2,343
Fair value gain (loss) adjustments on assets measured at fair value, net	5,119		(3,611		)	(1		)
Other income	6,156		2,438			2,238
Total non-interest income	65,095		43,116			45,344
Non-interest expense:
Salaries and employee benefits	279,274		253,238			214,344
Legal, professional, and directors' fees	37,009		28,722			29,814
Occupancy	32,507		29,404			27,860
Deposit costs	31,719		18,900			9,731
Data processing	30,577		22,716			19,225
Insurance	11,924		14,005			14,042
Loan and repossessed asset expenses	7,571		4,578			4,617
Business development	7,043		5,960			6,128
Marketing	4,199		3,770			3,804
Card expense	2,346		4,301			3,413
Intangible amortization	1,547		1,594			2,074
Net loss (gain) on sales / valuations of repossessed and other assets	3,818		9			(80		)
Other expense	33,247		38,470			25,969
Total non-interest expense	482,781		425,667			360,941
Income before provision for income taxes	604,226		510,328			451,817
Income tax expense	105,055		74,540			126,325
Net income	$	499,171	$	435,788		$	325,492

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	Year Ended December 31,
	2019		2018		2017
	(in thousands, except per share amounts)
Earnings per share:
Basic	$	4.86	$	4.16	$	3.12
Diluted	4.84		4.14		3.10
Weighted average number of common shares outstanding:
Basic	102,667		104,669		104,179
Diluted	103,133		105,370		104,997

See accompanying Notes to Consolidated Financial Statements.

74

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Net income	$	499,171		$	435,788		$	325,492
Other comprehensive income (loss), net:
Unrealized gain (loss) on AFS securities, net of tax effect of $(23,205), $13,354, and $(3,973), respectively	71,222			(40,808		)	6,334
Unrealized (loss) gain on SERP, net of tax effect of $138, $24, and $(79), respectively	(412		)	(77		)	264
Unrealized (loss) gain on junior subordinated debt, net of tax effect of $3,197, $(1,857), and $2,220, respectively	(9,804		)	5,693			(3,604		)
Realized (gain) loss on sale of AFS securities included in income, net of tax effect of $776, $(1,883), and $899, respectively	(2,376		)	5,773			(1,444		)
Net other comprehensive income (loss)	58,630			(29,419		)	1,550
Comprehensive income	$	557,801		$	406,369		$	327,042

See accompanying Notes to Consolidated Financial Statements.

75

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

		Common Stock				Additional Paid in Capital			Treasury Stock			Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total Stockholders’ Equity
		Shares		Amount
	(in thousands)
Balance, December 31, 2016		105,071		$	10	$	1,400,140		$	(26,362	)	$	(4,695	)	$	522,436		$	1,891,529
Balance, January 1, 2017 (1)		105,071		10		1,400,140			(26,362		)	(4,695		)	522,974			1,892,067
Net income		—		—		—			—			—			325,492			325,492
Exercise of stock options		38		—		846			—			—			—			846
Restricted stock, performance stock units, and other grants, net		648		—		23,554			—			—			—			23,554
Restricted stock surrendered (2)		(270	)	—		—			(13,811		)	—			—			(13,811		)
Other comprehensive income, net		—		—		—			—			1,550			—			1,550
Balance, December 31, 2017		105,487		$	10	$	1,424,540		$	(40,173	)	$	(3,145	)	$	848,466		$	2,229,698
Balance, January 1, 2018 (3)		105,487		10		1,424,540			(40,173		)	(4,203		)	849,524			2,229,698
Net income		—		—		—			—			—			435,788			435,788
Exercise of stock options		22		—		554			—			—			—			554
Restricted stock, performance stock units, and other grants, net		564		—		25,711			—			—			—			25,711
Restricted stock surrendered (2)		(223	)	—		—			(12,910		)	—			—			(12,910		)
Stock repurchase		(901	)	—		(33,081		)	—			—			(2,607		)	(35,688		)
Other comprehensive loss, net		—		—		—			—			(29,419		)	—			(29,419		)
Balance, December 31, 2018		104,949		$	10	$	1,417,724		$	(53,083	)	$	(33,622	)	$	1,282,705		$	2,613,734
Net income		—		—		—			—			—			499,171			499,171
Exercise of stock options		3		—		80			—			—			—			80
Restricted stock, performance stock unit, and other grants, net		605		—		26,238			—			—			—			26,238
Restricted stock surrendered (2)		(211	)	—		—			(9,645		)	—			—			(9,645		)
Stock repurchase		(2,822	)	—		(69,901		)	—			—			(50,230		)	(120,131		)
Dividends paid		—		—		—			—			—			(51,329		)	(51,329		)
Other comprehensive income, net		—		—		—			—			58,630			—			58,630
Balance, December 31, 2019		102,524		$	10	$	1,374,141		$	(62,728	)	$	25,008		$	1,680,317		$	3,016,748

(1) As adjusted for adoption of ASU 2017-12. The cumulative effect of adoption of this guidance at January 1, 2017 resulted in an increase to retained earnings of $0.5 million and a corresponding increase to loans for the fair market value adjustment on the swaps.

(2) Share amounts represent Treasury Shares, see "Note 1. Summary of Significant Accounting Policies" for further discussion.

(3) As adjusted for adoption of ASU 2016-01 and ASU 2018-02. The cumulative effect of adoption of this guidance at January 1, 2018 resulted in an increase to retained earnings of $1.1 million and a corresponding decrease to accumulated other comprehensive income.

See accompanying Notes to Consolidated Financial Statements.

76

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	December 31,
	2019			2018			2017
	(in thousands)
Cash flows from operating activities:
Net income	$	499,171		$	435,788		$	325,492
Adjustments to reconcile net income to cash provided by operating activities:
Provision for credit losses	18,500			23,000			17,250
Depreciation and amortization	18,457			14,319			13,393
Stock-based compensation	26,238			25,711			23,554
Deferred income taxes	(5,129		)	(16,709		)	88,471
Amortization of net premiums for investment securities	17,095			14,247			16,938
Amortization of tax credit investments	41,501			35,898			25,355
Amortization of operating lease right of use asset	10,458			—			—
Accretion of fair market value adjustments on loans acquired from business combinations	(12,678		)	(18,565		)	(28,235		)
Accretion and amortization of fair market value adjustments on other assets and liabilities acquired from business combinations	1,857			1,904			2,385
Income from bank owned life insurance	(3,901		)	(3,946		)	(3,861		)
(Gains) / Losses on:
Sales of investment securities	(3,152		)	7,656			(2,343		)
Assets measured at fair value, net	(5,119		)	3,611			1
Sale of loans	(690		)	(2,638		)	(945		)
Other assets acquired through foreclosure, net	(604		)	(1,214		)	(228		)
Valuation adjustments of other repossessed assets, net	4,144			1,267			120
Sale of premises, equipment, and other assets, net	278			(44		)	28
Changes in other assets and liabilities, net	111,346			20,687			(93,564		)
Net cash provided by operating activities	717,772			540,972			383,811
Cash flows from investing activities:
Investment securities - trading
Proceeds from sales	—			—			994
Investment securities - AFS
Purchases	(927,589		)	(520,734		)	(1,429,434		)
Principal pay downs and maturities	785,659			425,151			430,934
Proceeds from sales	150,377			154,434			110,104
Investment securities - HTM
Purchases	(131,384		)	(56,575		)	(169,400		)
Principal pay downs and maturities	21,594			8,987			6,174
Proceeds from sales	10,000			—			—
Equity securities carried at fair value
Purchases	(32,725		)	(71,728		)	—
Redemption of principal (reinvestment of dividends)	14,598			(577		)	—
Proceeds from sales	—			48,639			—
Purchase of investment tax credits	(141,668		)	(109,598		)	(38,098		)
Purchase of SBIC investments	(8,688		)	(4,129		)	(5,819		)
Sale (purchase) of money market investments, net	7			(7		)	—
Proceeds from bank owned life insurance	—			1,655			607
(Purchase) liquidation of restricted stock, net	(377		)	(347		)	(535		)
Loan fundings and principal collections, net	(3,429,014		)	(2,586,703		)	(1,873,387		)
Purchase of premises, equipment, and other assets, net	(35,148		)	(11,313		)	(8,862		)
Proceeds from sale of other real estate owned and repossessed assets, net	1,325			9,412			21,195
Net cash used in investing activities	(3,723,033		)	(2,713,433		)	(2,955,527		)

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	December 31,
	2019			2018			2017
	(in thousands)
Cash flows from financing activities:
Net increase (decrease) in deposits	$	3,619,046		$	2,204,915		$	2,422,669
Net (decrease) increase in borrowings	(496,736		)	97,394			294,289
Proceeds from exercise of common stock options	80			554			846
Cash paid for tax withholding on vested restricted stock	(9,645		)	(12,910		)	(13,811		)
Common stock repurchases	(120,131		)	(35,688		)	—
Cash dividends paid on common stock	(51,329		)	—			—
Net cash provided by financing activities	2,941,285			2,254,265			2,703,993
Net (decrease) increase in cash, cash equivalents, and restricted cash	(63,976		)	81,804			132,277
Cash, cash equivalents, and restricted cash at beginning of period	498,572			416,768			284,491
Cash, cash equivalents, and restricted cash at end of period	$	434,596		$	498,572		$	416,768
Supplemental disclosure:
Cash paid (received) during the period for:
Interest	$	180,436		$	113,507		$	59,838
Income taxes, net of refunds	(23,403		)	18,760			99,430
Non-cash operating, investing, and financing activity:
Transfers to other assets acquired through foreclosure, net	898			5,744			1,812

See accompanying Notes to Consolidated Financial Statements.

78

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of operation

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which held and managed certain OREO properties, and CSI, a captive insurance company formed and licensed under the laws of the State of Arizona and established as part of the Company's overall enterprise risk management strategy.

Basis of presentation

The accounting and reporting policies of the Company are in accordance with GAAP and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiaries are included in the Consolidated Financial Statements.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management's estimates and judgments are ongoing and are based on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities, as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from those estimates and assumptions used in the Consolidated Financial Statements and related notes. Material estimates that are particularly susceptible to significant changes in the near term relate to: the determination of the allowance for credit losses; certain assets and liabilities carried at fair value; and accounting for income taxes.

Principles of consolidation

As of December 31, 2019, WAL has the following significant wholly-owned subsidiaries: WAB and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.

The Bank has the following significant wholly-owned subsidiaries: WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; WA PWI, which holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; and BW Real Estate, Inc., which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities.

The Company does not have any other significant entities that should be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain amounts reported in prior periods may have been reclassified in the Consolidated Financial Statements to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and customer deposit accounts are reported net.

The Company maintains deposit accounts with other banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.

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Cash reserve requirements

Depository institutions are required by law to maintain reserves against their transaction deposits. The reserves must be held in cash or with the FRB. Banks are permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total of reserve balances was approximately $164.1 million and $145.9 million as of December 31, 2019 and 2018, respectively.

Investment securities

Investment securities include debt securities and equity securities. Debt securities may be classified as HTM, AFS, or trading. The appropriate classification is initially decided at the time of purchase. Securities classified as HTM are those debt securities that the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or general economic conditions. These securities are carried at amortized cost. The sale of an HTM security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure.

Securities classified as AFS or trading securities are reported as an asset on the Consolidated Balance Sheet at their estimated fair value. As the fair values of AFS debt securities change, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gains or losses are reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are securities that the Company does not have the positive intent and ability to hold to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations.

Equity securities are reported as an asset on the Consolidated Balance Sheet at their estimated fair value, with fair value changes recognized as part of non-interest income in the Consolidated Income Statement.

Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security, adjusted for prepayments estimates, using the interest method.

In estimating whether there are any OTTI losses on AFS securities, management considers the: 1) length of time and the extent to which the fair value has been less than amortized cost; 2) financial condition and near term prospects of the issuer; 3) impact of changes in market interest rates; and 4) intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and whether it is not more-likely-than-not the Company would be required to sell the security.

Declines in the fair value of individual AFS securities that are deemed to be other-than-temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in fair value of the debt security related to: 1) credit loss is recognized in earnings; and 2) interest rate, market, or other factors is recognized in OCI.

For individual debt securities where the Company either intends to sell the security or when it is more-likely-than-not the Company will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized in income on a cash basis.

Restricted stock

WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in capital stock of the FHLB based on the borrowing capacity used. The Bank also maintains an investment in its primary correspondent bank. These investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted investment securities. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. No impairment has been recorded to date.

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Loans held for sale

Loans held for sale consist of loans that the Company originates (or acquires) and intends to sell. These loans are carried at the lower of aggregate cost or fair value. Fair value is determined based on available market data for similar assets, expected cash flows, and appraisals of underlying collateral or the credit quality of the borrower. Gains and losses on the sale of loans are recognized pursuant to ASC 860, Transfers and Servicing. Interest income on these loans is accrued daily and loan origination fees and costs are deferred and included in the cost basis of the loan. The Company issues various representations and warranties associated with these loan sales. The Company has not experienced any losses as a result of these representations and warranties.

Loans, held for investment

The Company generally holds loans for investment and has the intent and ability to hold loans until their maturity. Therefore, they are reported at book value. Net loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, purchase accounting fair value adjustments, and an allowance for credit losses. In addition, the book values of loans subject to a fair value hedge are adjusted for changes in value attributable to the effective portion of the hedged benchmark interest rate risk.

The Company may also acquire loans through a business combination. These acquired loans are recorded at their estimated fair value on the date of purchase, which is comprised of unpaid principal adjusted for estimated credit losses and interest rate fair value adjustments. Loans are evaluated individually at the acquisition date to determine if there has been credit deterioration since origination. Such loans may then be aggregated and accounted for as a pool of loans based on common characteristics. When the Company acquires such loans, the yield that may be accreted (accretable yield) is limited to the excess of the Company’s estimate of undiscounted cash flows expected to be collected over the Company’s initial investment in the loan. The excess of contractual cash flows over the cash flows expected to be collected may not be recognized as an adjustment to yield, loss, or a valuation allowance. Subsequent increases in cash flows expected to be collected generally are recognized prospectively through adjustment of the loan’s yield over the remaining life. Subsequent decreases to cash flows expected to be collected are recognized as impairment losses. The Company may not carry over or create a valuation allowance in the initial accounting for loans acquired under these circumstances. For purchased loans that are not deemed impaired at the acquisition date, fair value adjustments attributable to both credit and interest rates are accreted (or amortized) over the contractual life of the individual loan. For additional information, see "Note 3. Loans, Leases and Allowance for Credit Losses" of these Notes to Consolidated Financial Statements.

Deferred loan fees and costs, premiums and discounts, and certain purchase accounting fair value adjustments, are amortized over the contractual life of the loan through interest income. If a loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If a loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of premiums, discounts, or net deferred fees are recognized as interest income.

Non-accrual loans: When a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. The Company ceases accruing interest income when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if the loans are well secured by collateral and in the process of collection.

For all loan types, when a loan is placed on non-accrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed, and the Company makes a loan-level decision to apply either the cash basis or cost recovery method. The Company recognizes income on a cash basis only for those non-accrual loans for which the collection of the remaining principal balance is not in doubt. Under the cost recovery method, subsequent payments received from the customer are applied to principal and generally no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required.

Impaired loans: A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310, Receivables, based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are recorded as a provision for credit losses. Losses are recorded as a charge-off when losses are confirmed. In addition to management's internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

81

Troubled Debt Restructured Loans: A TDR loan is a loan in which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. A TDR loan is also considered impaired. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual restructured principal and interest is no longer in doubt. However, such loans continue to be considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains an independent collateral valuation analysis for each loan over a specified dollar threshold every 12 months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, 10-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make adjustments to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Transfers of financial assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed surrendered when the: 1) assets have been isolated from the Company; 2) transferee obtains the right to pledge or exchange the transferred assets; and 3) Company no longer maintains effective control over the transferred assets through an agreement to repurchase the transferred assets before maturity.

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Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the term of the lease or the estimated life of the improvement, whichever is shorter. Depreciation and amortization is computed using the following estimated lives: 

	Years
Bank premises	31
Furniture, fixtures, and equipment	3 - 10
Leasehold improvements (1)	3 - 10

(1) Depreciation is recorded over the lesser of the relevant 3 to 10 year term or the remaining life of the lease.

Management periodically reviews premises and equipment in order to determine if facts and circumstances suggest that the value of an asset is not recoverable.

Leases (lessee)

At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding ROU asset and operating lease liability are recorded in separate line items on the Consolidated Balance Sheet. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made and is reduced by lease incentives that are paid or are payable to the Company. Variable lease payments that depend on an index or rate such as the Consumer Price Index are included in lease payments based on the rate in effect at the commencement date of the lease. Lease payments are recognized on a straight-line basis as part of occupancy expense over the lease term.

As the rate implicit in the lease is not readily determinable, the Company's incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s Consolidated Balance Sheet, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the options will be exercised.

In addition to the package of practical expedients, the Company also elected the practical expedient that allows lessees to make an accounting policy election to not separate non-lease components from the associated lease component, and instead account for them all together as part of the applicable lease component. This practical expedient can be elected separately for each underlying class of asset. The majority of the Company’s non-lease components such as common area maintenance, parking, and taxes are variable, and are expensed as incurred. Variable payment amounts are determined in arrears by the landlord depending on actual costs incurred.

Goodwill and other intangible assets

The Company records as goodwill the excess of the purchase price in a business combination over the fair value of the identifiable net assets acquired in accordance with applicable guidance. The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. The Company can first elect to assess, through qualitative factors, whether it is more likely than not that goodwill is impaired. If the qualitative assessment indicates potential impairment, a quantitative impairment test is necessary. If, based on the quantitative test, a reporting unit's carrying amount exceeds its fair value, a goodwill impairment charge for this difference is recorded to current period earnings as non-interest expense.

The Company’s intangible assets consist primarily of core deposit intangible assets that are amortized over periods ranging from five to 10 years. The Company considers the remaining useful lives of its core deposit intangible assets each reporting period, as required by ASC 350, Intangibles—Goodwill and Other, to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company has not revised its estimates of the useful lives of its core deposit intangibles during the years ended December 31, 2019, 2018, or 2017.

83

Low income housing and renewable energy tax credits

The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. Renewable energy projects are accounted for under the deferral method, whereby the investment tax credits are reflected as an immediate reduction in income taxes payable and the carrying value of the asset in the period that the investment tax credits are claimed. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion.

The Company evaluates its interests in these entities to determine if it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity. A VIE is broadly defined as an entity where either: 1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or 2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIE when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as: 1) the Company's ability to direct the activities that most significantly impact the entity's economic performance; 2) its form of ownership interest; 3) its representation on the entity's governing body; 4) the size and seniority of its investment; and 5) its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration.

The Company’s investments in qualified affordable housing and renewable energy projects meet the definition of a VIE as the entities are structured such that the limited partner investors lack substantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required consolidate these entities.

Bank owned life insurance

BOLI is carried at its cash surrender value with changes recorded in other non-interest income in the Consolidated Income Statements. The face amount of the underlying policies including death benefits was $359.0 million and $358.7 million as of December 31, 2019 and 2018, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds.

Customer repurchase agreements

The Company enters into repurchase agreements with customers, whereby it pledges securities against overnight investments made from the customer’s excess collected funds. The Company records these at the amount of cash received in connection with the transaction.

Stock compensation plans

The Company has the Incentive Plan, as amended, which is described more fully in "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements. Compensation expense for stock options and non-vested restricted stock awards is based on the fair value of the award on the measurement date which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. Forfeitures are estimated at the time of the award grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of stock options. The fair value of non-vested restricted stock awards is the market price of the Company’s stock on the date of grant.

See "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements for further discussion of stock options and restricted stock awards.

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Dividends

WAL is a legal entity separate and distinct from its subsidiaries. As a holding company with limited significant assets other than the capital stock of its subsidiaries, WAL's ability to pay dividends depends primarily upon the receipt of dividends or other capital distributions from its subsidiaries. The Company's subsidiaries' ability to pay dividends to WAL is subject to, among other things, their individual earnings, financial condition, and need for funds, as well as federal and state governmental policies and regulations applicable to WAL and each of those subsidiaries, which limit the amount that may be paid as dividends without prior approval. In addition, the terms and conditions of other securities the Company issues may restrict its ability to pay dividends to holders of the Company's common stock. For example, if any required payments on outstanding trust preferred securities are not made, WAL would be prohibited from paying cash dividends on its common stock.

Treasury shares

The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost.

Common stock repurchases

On December 11, 2018, the Company adopted its common stock repurchase program, pursuant to which the Company was authorized to repurchase up to $250.0 million of its shares of common stock through December 31, 2019. All shares repurchased under the plan are retired upon settlement. The Company has elected the method to allocate the excess of the repurchase price over the par value of its common stock between APIC and retained earnings, with the portion allocated to APIC limited to the amount of APIC that was recorded at the time that the shares were initially issued, which is calculated on a last-in, first-out basis. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

Derivative financial instruments

The Company uses interest-rate swaps to mitigate interest-rate risk associated with changes to the fair value of certain fixed-rate financial instruments (fair value hedges).

The Company recognizes derivatives as assets or liabilities on the Consolidated Balance Sheet at their fair value in accordance with ASC 815, Derivatives and Hedging. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period earnings. Changes in the fair value of derivatives not considered to be highly effective in hedging the change in fair value of the hedged item are recognized in earnings as non-interest income during the period of the change.

The Company documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction after the derivative contract is executed. At inception, the Company performs a quantitative assessment to determine whether the derivatives used in hedging transactions are highly effective (as defined in the guidance) in offsetting changes in the fair value of the hedged item. Retroactive effectiveness is assessed, as well as the continued expectation that the hedge will remain effective prospectively. After the initial quantitative assessment is performed, on a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty's risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. The Company discontinues hedge accounting prospectively when it is determined that a hedge is no longer highly effective. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative instrument continues to be reported at fair value on the Consolidated Balance Sheet, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings.

Derivative instruments that are not designated as hedges, so called free-standing derivatives, are reported on the Consolidated Balance Sheet at fair value and the changes in fair value are recognized in earnings as non-interest income during the period of change.

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The Company may in the normal course of business purchase a financial instrument or originate a loan that contains an embedded derivative instrument. Upon purchasing the instrument or originating the loan, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current earnings, or the Company is unable to reliably identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the Consolidated Balance Sheet at fair value and is not designated as a hedging instrument.

Off-balance sheet instruments

In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Financial Statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the Consolidated Balance Sheet. Losses could be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and, in certain instances, may be unconditionally cancelable. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for credit losses on off-balance sheet instruments is included in other liabilities and the charge to income that establishes this liability is included in non-interest expense.

The Company also has off-balance sheet arrangements related to its derivative instruments. Derivative instruments are recognized in the Consolidated Financial Statements at fair value and their notional values are carried off-balance sheet. See "Note 12. Derivatives and Hedging Activities" of these Notes to Consolidated Financial Statements for further discussion.

Business combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes all of the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including identified intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Changes to estimated fair values from a business combination are recognized as an adjustment to goodwill during the measurement period and are recognized in the proper reporting period in which the adjustment amounts are determined. Results of operations of an acquired business are included in the Consolidated Income Statement from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred.

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Fair values of financial instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a three-level valuation hierarchy for disclosure of fair value measurement, as well as enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The Company uses various valuation approaches, including market, income, and/or cost approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.

• Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.

The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant who may purchase the asset or assume the liability, rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date.

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2019 and 2018. The estimated fair value amounts for December 31, 2019 and 2018 have been measured as of period-end, and have not been re-evaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end.

The information in "Note 16. Fair Value Accounting" of these Notes to Consolidated Financial Statements should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities.

Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful.

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The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, cash equivalents, and restricted cash

The carrying amounts reported on the Consolidated Balance Sheet for cash and due from banks approximate their fair value.

Money market investments

The carrying amounts reported on the Consolidated Balance Sheet for money market investments approximate their fair value.

Investment securities

The fair values of CRA investments, exchange-listed preferred stock, trust preferred securities, and certain corporate debt securities are based on quoted market prices and are categorized as Level 1 in the fair value hierarchy.

The fair values of debt securities are primarily determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings, and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy. For a small subset of securities, other pricing sources are used, including observed prices on publicly-traded securities and dealer quotes.

Restricted stock

WAB is a member of the Federal Reserve System and the FHLB and, accordingly, maintains investments in the capital stock of the FRB and the FHLB. WAB also maintains an investment in its primary correspondent bank. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. The fair values of these investments have been categorized as Level 2 in the fair value hierarchy.

Loans

The fair value of loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality and adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy, excluding impaired loans, which are categorized as Level 3.

Accrued interest receivable and payable

The carrying amounts reported on the Consolidated Balance Sheet for accrued interest receivable and payable approximate their fair value.

Derivative financial instruments

All derivatives are recognized on the Consolidated Balance Sheets at their fair value. The fair value for derivatives is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. As a result, the fair values have been categorized as Level 2 in the fair value hierarchy.

Deposits

The fair value disclosed for demand and savings deposits is by definition equal to the amount payable on demand at their reporting date (that is, their carrying amount), which the Company believes a market participant would consider in determining fair value. The carrying amount for variable-rate deposit accounts approximates their fair value. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on these deposits. The fair value measurement of the deposit liabilities is categorized as Level 2 in the fair value hierarchy.

FHLB advances and customer repurchase agreements

The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances and customer repurchase agreements have been categorized as Level 2 in the fair value hierarchy due to their short durations.

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Subordinated debt

The fair value of subordinated debt is based on the market rate for the respective subordinated debt security. Subordinated debt has been categorized as Level 2 in the fair value hierarchy.

Junior subordinated debt

Junior subordinated debt is valued based on a discounted cash flow model which uses as inputs Treasury Bond rates and the 'BB' rated financial index. Junior subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Off-balance sheet instruments

The fair value of the Company’s off-balance sheet instruments (lending commitments and letters of credit) is based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, and the counterparties’ credit standing.

Income taxes

The Company is subject to income taxes in the United States and files a consolidated federal income tax return with all of its subsidiaries, with the exception of BW Real Estate, Inc. Deferred income taxes are recorded to reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their income tax bases using enacted tax rates that are expected to be in effect when the taxes are actually paid or recovered. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets are recorded to the extent that these assets will more-likely-than-not be realized. In making these determinations, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. If it is determined that deferred income tax assets to be realized in the future are in excess of their net recorded amount, an adjustment to the valuation allowance will be recorded, which will reduce the Company's provision for income taxes.

A tax benefit from an unrecognized tax benefit may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including related appeals or litigation, based on technical merits. Income tax benefits must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

Interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes in the Consolidated Income Statement. Accrued interest and penalties are included in the related tax liability line with other liabilities on the Consolidated Balance Sheets. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion on income taxes.

Non-interest income

Non-interest income includes service charges and fees, income from equity investments, card income, foreign currency income, income from bank owned life insurance, lending related income, net gain or loss on sales of investment securities, net unrealized gains or losses on assets measured at fair value, and other income. Service charges and fees consist of fees earned from performance of account analysis, general account services, and other deposit account services. These fees are recognized as the related services are provided in accordance with ASC 606, Revenue from Contracts with Customers. Income from equity investments includes gains on equity warrant assets, SBIC equity income, and success fees. Card income includes fees earned from customer use of debit and credit cards, interchange income from merchants, and international charges. Card income is generally within the scope of ASC 310, Receivables; however, certain processing transactions for merchants, such as interchange fees, are within the scope of ASC 606. Foreign currency income represents fees earned on the differential between purchases and sales of foreign currency on behalf of the Company’s clients. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Lending related income includes fees earned from gains or losses on the sale of loans, SBA income, and letter of credit fees. Gains and losses on the sale of loans and SBA income are recognized pursuant to ASC 860, Transfers and Servicing. Net unrealized gains or losses on assets measured at fair value represent fair value changes in equity securities and are accounted for in accordance with ASC 321, Investments - Equity Securities. Fees related to standby letters of credit are accounted for in accordance with ASC 440, Commitments. Other income includes operating lease income, which is recognized on a straight-line basis over the lease term in accordance with ASC 840, Leases. Net gain or loss on sales / valuations of repossessed and other assets is presented as a component of non-interest expense, but may also be presented as a component of non-interest income in the event that a net gain is recognized. Net gain or loss on sales of repossessed and other assets are accounted for in accordance with ASC 610, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. See "Note 22. Revenue from Contracts with Customers" of these Notes to Consolidated Financial Statements for further details related to the nature and timing of revenue recognition for non-interest income revenue streams within the scope of the new standard.

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Recent accounting pronouncements

In June 2016, the FASB issued guidance within ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard significantly changes the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. The amendments in ASU 2016-13 to Topic 326, Financial Instruments - Credit Losses, require that an organization measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosures, including qualitative and quantitative disclosures that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company has completed its implementation of the new CECL standard, in all material respects, as model findings have been addressed, the Company's internal control CECL framework has been implemented, and accounting policies and governance processes have been finalized.

The following table summarizes the estimated allowance for credit losses related to financial assets and off-balance sheet credit exposures upon adoption of ASC 326:

	January 1, 2020
	Pre-ASC 326 Adoption		Post-ASC 326 Adoption		Impact of ASC 326 Adoption
	(in millions)
Assets:
Allowance for credit losses on HTM securities
Tax-exempt	$	—	$	3	$	3
Allowance for credit losses on loans	$	168	$	187	$	19
Liabilities:
Off-balance sheet credit exposures	$	9	$	24	$	15

As the impact to the Company was not significant, management elected to take the full charge to regulatory capital at the adoption date.

In August 2018, the FASB issued guidance within ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments within ASU 2018-13 remove, modify, and supplement the disclosure requirements for fair value measurements. Disclosure requirements that were removed include: the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additional disclosure requirements include: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. With the exception of the above additional disclosure requirements, which will be applied prospectively, all other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In August 2018, the FASB issued guidance within ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments in this Update also require that the capitalized implementation costs of a hosting arrangement that is a service contract be expensed over the term of the hosting arrangement. Presentation requirements include: expense related to the capitalized implementation costs should be presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, payments for capitalized implementation costs in the statement of cash flows should be classified in the same manner as payments made for fees associated with the hosting element, and capitalized implementation costs in the statement of financial position should be presented in the same line item that a prepayment for the fees of the associated

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hosting arrangement would be presented. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In April 2019, the FASB issued guidance within ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in ASU 2019-04 clarify or correct the guidance in these Topics. With respect to Topic 326, ASU 2019-04 addresses a number of issues as it relates to the CECL standard including consideration of accrued interest, recoveries, variable-rate financial instruments, prepayments, and extension and renewal options, among other things, in the measurement of expected credit losses. The amendments to Topic 326 have the same effective dates as ASU 2016-13 and are not expected to have a significant impact on the Company’s Consolidated Financial Statements. With respect to Topic 815, Derivatives and Hedging, ASU 2019-04 clarifies issues related to partial-term hedges, hedged debt securities, and transitioning from a quantitative method of assessing hedge effectiveness to a more simplified method. The Company does not have partial-term hedges or any hedged debt securities and the transition issues discussed in the ASU 2019-04 are not applicable to the Company. Accordingly, the amendments to Topic 815 will not have an impact on the Company's Consolidated Financial Statements. With respect to Topic 825, Financial Instruments, on recognizing and measuring financial instruments, ASU 2019-04 addresses: 1) the scope of the guidance; 2) the requirement for remeasurement under ASC 820 when using the measurement alternative; 3) certain disclosure requirements; and 4) which equity securities have to be remeasured at historical exchange rates. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the Company’s Consolidated Financial Statements.

In May 2019, the FASB issued guidance within ASU 2019-05, Financial Instruments - Credit Losses, to provide entities with an option to irrevocably elect the fair value option for eligible financial assets measured at amortized cost. The election is to be applied on an instrument-by-instrument basis upon adoption of Topic 326 and is not available for either AFS or HTM debt securities. The amendments in ASU 2019-05 should be applied on a modified-retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings as of the date that an entity adopts the amendments in ASU 2016-13. The Company did not elect this fair value option as part of its adoption of ASU 2016-13 on January 1, 2020.

In November 2019, the FASB issued guidance within ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The amendments in ASU 2019-11 clarify or address specific issues about certain aspects of the amendments in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. These issues include measurement and reporting requirements related to: 1) the allowance for credit losses for purchased assets with credit deterioration; 2) prepayment assumptions on existing troubled debt restructurings; 3) extension of disclosure relief for accrued interest receivable balances; and 4) expected credit losses on collateralized financial assets. The adoption of ASU 2019-11 is concurrent with ASU 2016-13 and, adoption of these amendments on January 1, 2020, did not have a significant impact on the Company's Consolidated Financial Statements.

In December 2019, the FASB issued guidance within ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 are intended to reduce the cost and complexity of applying ASC 740. The amendments that are applicable to the Company address: 1) franchise and other taxes partially based on income; 2) step-up in basis of goodwill in a business combination; 3) allocation of tax expense in separate entity financial statements; and 4) interim recognition of enactment of tax laws or rate changes. The amendments to Topic 740 are effective for interim and annual reporting periods beginning after December 15, 2020 and are not expected to have a material impact on the Company’s Consolidated Financial Statements.

Recently adopted accounting guidance

In February 2016, the FASB issued guidance within ASU 2016-02, Leases. The amendments in ASU 2016-02 to Topic 842, Leases, require lessees to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The Company adopted the amendments to Topic 842 on January 1, 2019 using the modified retrospective approach. The Company elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, which allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted. The Company also elected to apply the package of practical expedients permitting entities to forgo reassessment of: 1) expired or existing contracts that may contain leases; 2) lease classification of expired or existing leases; and 3) initial direct costs for any existing leases. The Company established internal controls and implemented lease accounting software to facilitate the preparation of financial information and disclosures related to leases. The most significant impact of the new standard on the Company’s Consolidated Financial Statements was the recognition of a ROU asset and lease liability for operating leases for which the Company is the lessee. The accounting for finance and operating leases for which the Company is the lessor remains substantially unchanged. Upon adoption of this guidance on January 1, 2019, the Company recorded

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a ROU asset and corresponding lease liability of $42.5 million and $46.1 million, respectively, on the Consolidated Balance Sheet. No cumulative effect adjustment to retained earnings resulted from adoption of this guidance. The new standard did not have a material impact on the Company’s results of operations or cash flows.

In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. As of December 31, 2019, the Company does not hold these types of securities; therefore, adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements.

In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The Company's share-based payment awards to nonemployees consist only of grants made to the Company's BOD as compensation solely related to the individual's role as a Director. As such, in accordance with ASC 718, the Company accounts for these share-based payment awards to its Directors in the same manner as share-based payment awards for its employees. Accordingly, the adoption of this guidance did not have an impact on the accounting for the Company's share-based payment awards to its Directors.

In July 2018, the FASB issued guidance within ASU 2018-09, Codification Improvements. The amendments in ASU 2018-09 are intended to clarify or correct unintended guidance in the FASB Codification and affect a wide variety of Topics in the Codification. The topics that are applicable to the Company include: 1) debt modifications and extinguishments; 2) stock compensation; and 3) derivatives and hedging. For debt modifications and extinguishments, the amendment clarifies that, in an early extinguishment of debt for which the fair value option has been elected, the net carrying amount of the extinguished debt is equal to its fair value at the reacquisition date, and upon extinguishment, the cumulative amount of the gain or loss on the extinguished debt that resulted from changes in instrument-specific credit risk should be presented in net income. The Company has junior subordinated debt that is recorded at fair value at each reporting period due to election of the FVO. Accordingly, if, in the future, the Company chooses to repay this debt prior to its contractual maturity, this amendment would be applicable. For stock compensation, the amendment clarifies that excess tax benefits or tax deficiencies should be recognized in the period in which the amount of the tax deduction is determined, which is typically when an award is exercised (in the case of share options) or vests (in the case of non-vested stock awards). The Company already records excess tax benefits or tax deficiencies in the periods in which the tax deduction is determined. Therefore, adoption of this amendment did not have an effect on the Company's accounting for excess tax benefits or tax deficiencies. For derivatives and hedging, previous guidance permits derivatives to be offset only when all four conditions (including the intent to set off) are met. This amendment clarifies that the intent to set off is not required to offset fair value amounts recognized for derivative instruments that are executed with the same counterparty under a master netting agreement. This amendment did not have an effect on the offsetting of the Company's derivative assets and liabilities.

92

2. INVESTMENT SECURITIES

The carrying amounts and fair values of investment securities at December 31, 2019 and 2018 are summarized as follows: 

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	485,107	$	31,303	$	(149	)	$	516,261
Available-for-sale debt securities
CDO	$	50	$	10,092	$	—		$	10,142
Commercial MBS issued by GSEs	95,062		366		(1,175		)	94,253
Corporate debt securities	105,015		112		(5,166		)	99,961
Municipal securities	7,494		279		—			7,773
Private label residential MBS	1,129,985		3,572		(4,330		)	1,129,227
Residential MBS issued by GSEs	1,406,594		9,283		(3,817		)	1,412,060
Tax-exempt	530,729		24,548		(422		)	554,855
Trust preferred securities	32,000		—		(4,960		)	27,040
U.S. government sponsored agency securities	10,000		—		—			10,000
U.S. treasury securities	999		—		—			999
Total AFS debt securities	$	3,317,928	$	48,252	$	(19,870	)	$	3,346,310
Equity securities
CRA investments	$	52,805	$	—	$	(301	)	$	52,504
Preferred stock	82,514		3,881		(198		)	86,197
Total equity securities	$	135,319	$	3,881	$	(499	)	$	138,701

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	302,905	$	3,163	$	(7,420	)	$	298,648
Available-for-sale debt securities
CDO	$	50	$	15,277	$	—		$	15,327
Commercial MBS issued by GSEs	106,385		82		(6,361		)	100,106
Corporate debt securities	105,029		—		(5,649		)	99,380
Private label residential MBS	948,161		945		(24,512		)	924,594
Residential MBS issued by GSEs	1,564,181		1,415		(35,472		)	1,530,124
Tax-exempt	542,086		4,335		(7,753		)	538,668
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	40,000		—		(1,812		)	38,188
U.S. treasury securities	1,996		—		(12		)	1,984
Total AFS debt securities	$	3,339,888	$	22,054	$	(84,954	)	$	3,276,988
Equity securities
CRA investments	$	52,210	$	—	$	(1,068	)	$	51,142
Preferred stock	65,954		148		(2,183		)	63,919
Total equity securities	$	118,164	$	148	$	(3,251	)	$	115,061

93

The Company conducts an OTTI analysis on a quarterly basis. The initial indication of OTTI is a decline in the market value below the amount recorded for an investment, and taking into account the severity and duration of the decline. Another potential indication of OTTI is a downgrade below investment grade. In determining whether an impairment is OTTI, the Company considers the length of time and the extent to which the market value has been below cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

For debt securities, for the purpose of an OTTI analysis, the Company also considers the cause of the price decline (general level of interest rates, credit spreads, and industry and issuer-specific factors), whether downgrades by bond rating agencies have occurred, the issuer’s financial condition, near-term prospects, and current ability to make future payments in a timely manner, as well as the issuer’s ability to service debt, and any change in agencies’ ratings at the evaluation date from the acquisition date and any likely imminent action.

At December 31, 2019 and 2018, the Company’s unrealized losses relate primarily to market interest rate increases since the securities' original purchase date. The total number of AFS securities in an unrealized loss position at December 31, 2019 is 158, compared to 373 at December 31, 2018. The Company has reviewed securities for which there is an unrealized loss in accordance with its accounting policy for OTTI described above and determined that there are no impairment charges for the years ended December 31, 2019, 2018, and 2017. The Company does not consider any securities to be other-than-temporarily impaired as of December 31, 2019 and 2018. No assurance can be made that OTTI will not occur in future periods.

Information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 

	December 31, 2019
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	149	$	24,325	$	—	$	—	$	149	$	24,325
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	85	$	9,035	$	1,090	$	54,604	$	1,175	$	63,639
Corporate debt securities	—		—		5,166		94,834		5,166		94,834
Private label residential MBS	1,776		337,285		2,554		258,791		4,330		596,076
Residential MBS issued by GSEs	1,740		385,643		2,077		150,419		3,817		536,062
Tax-exempt	422		67,150		—		—		422		67,150
Trust preferred securities	—		—		4,960		27,040		4,960		27,040
Total AFS securities	$	4,023	$	799,113	$	15,847	$	585,688	$	19,870	$	1,384,801

94

	December 31, 2018
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	3,868	$	91,095	$	3,552	$	69,991	$	7,420	$	161,086
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	—	$	—	$	6,361	$	98,275	$	6,361	$	98,275
Corporate debt securities	16		5,013		5,633		94,367		5,649		99,380
Private label residential MBS	5,173		217,982		19,339		537,316		24,512		755,298
Residential MBS issued by GSEs	1,363		141,493		34,109		1,215,490		35,472		1,356,983
Tax-exempt	3,562		209,767		4,191		72,382		7,753		282,149
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	—		—		1,812		38,188		1,812		38,188
U.S. treasury securities	—		—		12		1,984		12		1,984
Total AFS securities	$	10,114	$	574,255	$	74,840	$	2,086,619	$	84,954	$	2,660,874

The amortized cost and fair value of securities as of December 31, 2019, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.

	December 31, 2019
	Amortized Cost		Estimated Fair Value
	(in thousands)
Held-to-maturity
Due in one year or less	$	7,330	$	7,384
After one year through five years	17,414		17,947
After ten years	460,363		490,930
Total HTM securities	$	485,107	$	516,261
Available-for-sale
Due in one year or less	$	999	$	999
After one year through five years	14,765		14,971
After five years through ten years	149,236		144,996
After ten years	521,287		549,804
Mortgage-backed securities	2,631,641		2,635,540
Total AFS securities	$	3,317,928	$	3,346,310

95

The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2019 and 2018:

	December 31, 2019
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	485,107	$	485,107
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	10,142	$	—	$	10,142
Commercial MBS issued by GSEs	—		94,253		—		—		—		—		—		94,253
Corporate debt securities	—		—		—		66,530		33,431		—		—		99,961
Municipal securities	—		—		—		—		—		—		7,773		7,773
Private label residential MBS	1,096,909		—		30,675		181		288		1,174		—		1,129,227
Residential MBS issued by GSEs	—		1,412,060		—		—		—		—		—		1,412,060
Tax-exempt	52,610		2,856		327,657		171,732		—		—		—		554,855
Trust preferred securities	—		—		—		—		27,040		—		—		27,040
U.S. government sponsored agency securities	—		10,000		—		—		—		—		—		10,000
U.S. treasury securities	—		999		—		—		—		—		—		999
Total AFS securities (1)	$	1,149,519	$	1,520,168	$	358,332	$	238,443	$	60,759	$	11,316	$	7,773	$	3,346,310
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	27,129	$	52,504
Preferred stock	—		—		—		—		82,851		2,105		1,241		86,197
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	82,851	$	2,105	$	28,370	$	138,701

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

	December 31, 2018
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	302,905	$	302,905
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		—		—		—		—		100,106
Corporate debt securities	—		—		—		66,515		32,865		—		—		99,380
Private label residential MBS	887,520		—		34,342		343		947		1,442		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		—		—		—		—		1,530,124
Tax-exempt	66,160		12,146		306,409		152,330		—		—		1,623		538,668
Trust preferred securities	—		—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—		38,188		—		—		—		—		—		38,188
U.S. treasury securities	—		1,984		—		—		—		—		—		1,984
Total AFS securities (1)	$	953,680	$	1,682,548	$	340,751	$	219,188	$	62,429	$	16,769	$	1,623	$	3,276,988
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	25,767	$	51,142
Preferred stock	—		—		—		—		45,771		3,693		14,455		63,919
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	45,771	$	3,693	$	40,222	$	115,061

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

96

Securities with carrying amounts of approximately $962.5 million and $788.4 million at December 31, 2019 and 2018, respectively, were pledged for various purposes as required or permitted by law.

The following table presents gross gains and losses on sales of investment securities: 

	Year Ended December 31,
	2019		2018			2017
	(in thousands)
Available-for-sale securities
Gross gains	$	3,152	$	8,074		$	3,204
Gross losses	—		(7,738		)	(861		)
Net gains (losses) on AFS securities	$	3,152	$	336		$	2,343
Equity securities
Gross gains	$	—	$	—		$	—
Gross losses	—		(7,992		)	—
Net gains (losses) on equity securities	$	—	$	(7,992	)	$	—

During the year ended December 31, 2019, the Company sold certain AFS securities as part of a portfolio re-balancing initiative. These securities had a carrying value of $147.2 million and a net gain of $3.2 million was recognized on the sale of these securities. During the year ended December 31, 2019, the Company also sold one of its securities classified as HTM. The security had a par value of $10.0 million and no gain or loss was realized upon the sale. The sale of this HTM security was made as a result of significant deterioration in the issuer’s creditworthiness, representative of a change in circumstance contemplated in ASC 320-10-25 that would not call into question the Company’s intent to hold other debt securities to maturity in the future. Accordingly, management concluded that the Company’s remaining HTM securities continue to be appropriately classified as such.

During the year ended December 31, 2018, the Company sold certain available-for-sale securities with a carrying value of $119.8 million and recognized a loss on sale of these securities of $7.7 million. The sales resulted from management’s review of its investment portfolio, which led to its decision to sell lower yielding securities and reinvest in securities with higher yields and shorter durations.

97

3. LOANS, LEASES AND ALLOWANCE FOR CREDIT LOSSES

The composition of the Company’s held for investment loan portfolio is as follows:

	December 31,
	2019			2018
	(in thousands)
Commercial and industrial	$	9,382,043		$	7,762,642
Commercial real estate - non-owner occupied	5,245,634			4,213,428
Commercial real estate - owner occupied	2,316,913			2,325,380
Construction and land development	1,952,156			2,134,753
Residential real estate	2,147,664			1,204,355
Consumer	57,083			70,071
Loans, net of deferred loan fees and costs	21,101,493			17,710,629
Allowance for credit losses	(167,797		)	(152,717		)
Total loans HFI	$	20,933,696		$	17,557,912

Loans that are held for investment are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, purchase accounting fair value adjustments, and an allowance for credit losses. Net deferred loan fees as of December 31, 2019 and 2018 total $47.7 million and $36.3 million, respectively, which is a reduction in the carrying value of loans. Net unamortized purchase premiums on secondary market loan purchases total $29.9 million and $2.0 million as of December 31, 2019 and 2018, respectively. Total loans held for investment are also net of interest rate and credit marks on acquired loans, which are a net reduction in the carrying value of loans. Interest rate marks were $3.8 million and $7.1 million as of December 31, 2019 and 2018, respectively. Credit marks were $6.5 million and $14.6 million as of December 31, 2019 and 2018, respectively.

As of December 31, 2019, the Company also had $21.8 million of HFS loans. There were no HFS loans as of December 31, 2018.

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	9,376,377	$	2,501	$	637	$	2,528	$	5,666	$	9,382,043
Commercial real estate
Owner occupied	2,316,165		624		—		124		748		2,316,913
Non-owner occupied	5,007,644		4,661		—		11,913		16,574		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,176,908		—		—		—		—		1,176,908
Land	775,248		—		—		—		—		775,248
Residential real estate	2,134,346		7,627		1,721		3,970		13,318		2,147,664
Consumer	57,083		—		—		—		—		57,083
Total loans	$	21,065,187	$	15,413	$	2,358	$	18,535	$	36,306	$	21,101,493

 

98

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,753,111	$	3,187	$	416	$	5,928	$	9,531	$	7,762,642
Commercial real estate
Owner occupied	2,320,321		4,441		—		618		5,059		2,325,380
Non-owner occupied	4,051,837		—		—		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,382,664		—		—		—		—		1,382,664
Land	751,613		—		476		—		476		752,089
Residential real estate	1,182,933		9,316		4,010		8,096		21,422		1,204,355
Consumer	69,830		—		—		241		241		70,071
Total loans	$	17,673,900	$	16,944	$	4,902	$	14,883	$	36,729	$	17,710,629

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	December 31, 2019								December 31, 2018
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial and industrial	$	19,080	$	5,421	$	24,501	$	—	$	7,639	$	7,451	$	15,090	$	—
Commercial real estate
Owner occupied	4,418		124		4,542		—		—		—		—		594
Non-owner occupied	7,265		11,913		19,178		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	2,147		—		2,147		—		—		476		476		—
Land	—		—		—		—		—		—		—		—
Residential real estate	1,231		4,369		5,600		—		552		11,387		11,939		—
Consumer	—		—		—		—		—		241		241		—
Total	$	34,141	$	21,827	$	55,968	$	—	$	8,191	$	19,555	$	27,746	$	594

The reduction in interest income associated with loans on non-accrual status was approximately $2.2 million, $2.3 million, and $2.4 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as Special Mention, Substandard, Doubtful, and Loss. Substandard loans include those characterized by well-defined weaknesses and carry the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful, or risk rated eight, have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The final rating of Loss covers loans considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that warrant management’s close attention, are deemed to be Special Mention. Risk ratings are updated, at a minimum, quarterly.

99

The following tables present loans held for investment by risk rating: 

	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	9,265,823	$	65,893	$	49,878	$	449	$	—	$	9,382,043
Commercial real estate
Owner occupied	2,265,566		9,579		41,768		—		—		2,316,913
Non-owner occupied	4,913,007		64,161		47,050		—		—		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,157,169		17,592		2,147		—		—		1,176,908
Land	773,868		1,380		—		—		—		775,248
Residential real estate	2,141,336		366		5,962		—		—		2,147,664
Consumer	57,073		10		—		—		—		57,083
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	20,785,118	$	158,907	$	120,897	$	265	$	—	$	21,065,187
Past due 30 - 59 days	8,263		58		7,092		—		—		15,413
Past due 60 - 89 days	1,481		16		861		—		—		2,358
Past due 90 days or more	396		—		17,955		184		—		18,535
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,574,506	$	61,202	$	126,356	$	578	$	—	$	7,762,642
Commercial real estate
Owner occupied	2,255,513		12,860		57,007		—		—		2,325,380
Non-owner occupied	4,030,350		12,982		8,505		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,378,624		1,210		2,830		—		—		1,382,664
Land	751,012		—		1,077		—		—		752,089
Residential real estate	1,191,571		527		12,257		—		—		1,204,355
Consumer	69,755		75		241		—		—		70,071
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	17,400,616	$	87,264	$	186,020	$	—	$	—	$	17,673,900
Past due 30 - 59 days	11,255		1,580		4,109		—		—		16,944
Past due 60 - 89 days	719		12		3,767		404		—		4,902
Past due 90 days or more	332		—		14,377		174		—		14,883
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

100

The table below reflects the recorded investment in loans classified as impaired: 

	December 31,
	2019			2018
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	20,979		$	986
Impaired loans without a specific valuation allowance under ASC 310 (2)	95,324			111,266
Total impaired loans	$	116,303		$	112,252
Valuation allowance related to impaired loans	$	(2,776	)	$	(681	)

(1) Includes no TDR loans at December 31, 2019 and 2018.

(2) Includes TDR loans of $38.9 million and $44.5 million at December 31, 2019 and 2018, respectively.

The following table presents impaired loans by class: 

	December 31,
	2019		2018
	(in thousands)
Commercial and industrial	$	48,984	$	63,896
Commercial real estate
Owner occupied	17,736		6,530
Non-owner occupied	35,538		12,407
Multi-family	—		—
Construction and land development
Construction	2,147		—
Land	6,274		9,403
Residential real estate	5,600		19,744
Consumer	24		272
Total	$	116,303	$	112,252

A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are written down to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table above as “Impaired loans without a specific valuation allowance under ASC 310.” However, before concluding that an impaired loan needs no associated valuation allowance, an assessment is made to consider all available and relevant information for the method used to evaluate impairment and the type of loan being assessed. The valuation allowance disclosed above is included in the allowance for credit losses reported on the Consolidated Balance Sheets as of December 31, 2019 and 2018.

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The following table presents average investment in impaired loans by loan class: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Commercial and industrial	$	45,223	$	52,496	$	33,519
Commercial real estate
Owner occupied	15,829		7,682		18,692
Non-owner occupied	25,163		15,375		22,000
Multi-family	—		—		—
Construction and land development
Construction	13,315		—		—
Land	7,716		9,547		13,558
Residential real estate	13,882		19,425		16,893
Consumer	159		300		204
Total	$	121,287	$	104,825	$	104,866

The average investment in TDR loans for the years ended December 31, 2019, 2018, and 2017 was $52.9 million, $51.2 million, and $55.5 million, respectively.

The following table presents interest income on impaired loans by class: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Commercial and industrial	$	1,857	$	2,113	$	1,077
Commercial real estate
Owner occupied	815		491		677
Non-owner occupied	821		937		1,074
Multi-family	—		—		—
Construction and land development
Construction	715		—		—
Land	474		566		699
Residential real estate	329		381		516
Consumer	1		2		3
Total	$	5,012	$	4,490	$	4,046

The Company is not committed to lend significant additional funds on these impaired loans.

The following table summarizes nonperforming assets: 

	December 31,
	2019		2018
	(in thousands)
Non-accrual loans (1)	$	55,968	$	27,746
Loans past due 90 days or more on accrual status	—		594
Accruing troubled debt restructured loans	28,356		36,458
Total nonperforming loans	84,324		64,798
Other assets acquired through foreclosure, net	13,850		17,924
Total nonperforming assets	$	98,174	$	82,722

(1) Includes non-accrual TDR loans of $10.6 million and $8.0 million at December 31, 2019 and 2018, respectively.

102

Loans Acquired with Deteriorated Credit Quality

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Balance, at beginning of period	$	3,767		$	9,324		$	15,177
Additions due to acquisition	—			—			—
Reclassifications from non-accretable to accretable yield (1)	—			683			2,086
Accretion to interest income	(570		)	(1,018		)	(2,797		)
Reversal of fair value adjustments upon disposition of loans	(923		)	(5,222		)	(5,142		)
Balance, at end of period	$	2,274		$	3,767		$	9,324

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

Allowance for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Year Ended December 31,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2019
Beginning Balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
Charge-offs	141			139			594			8,120			128			9,122
Recoveries	(91		)	(909		)	(412		)	(4,265		)	(25		)	(5,702		)
Provision	1,431			11,674			2,620			3,039			(264		)	18,500
Ending balance	$	23,894		$	47,273		$	13,714		$	82,302		$	614		$	167,797
2018
Beginning Balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
Charge-offs	1			233			1,038			15,034			114			16,420
Recoveries	(1,433		)	(1,237		)	(947		)	(2,427		)	(43		)	(6,087		)
Provision	1,482			2,177			5,867			13,198			276			23,000
Ending balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			2,269			447			8,186			102			11,004
Recoveries	(1,229		)	(2,897		)	(1,778		)	(3,112		)	(84		)	(9,100		)
Provision	(2,805		)	5,347			318			14,268			122			17,250
Ending balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050

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The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2019;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	11,913	$	6,919	$	—	$	2,147	$	—	$	20,979
Impaired loans with no allowance recorded	17,736		23,625		42,065		5,600		6,274		24		95,324
Total loans individually evaluated for impairment	17,736		35,538		48,984		5,600		8,421		24		116,303
Loans collectively evaluated for impairment	2,296,342		5,159,921		9,333,059		2,142,045		1,943,735		57,059		20,932,161
Loans acquired with deteriorated credit quality	2,835		50,175		—		19		—		—		53,029
Total recorded investment	$	2,316,913	$	5,245,634	$	9,382,043	$	2,147,664	$	1,952,156	$	57,083	$	21,101,493
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	11,949	$	9,844	$	—	$	2,262	$	—	$	24,055
Impaired loans with no allowance recorded	18,681		24,738		43,848		5,708		6,413		52		99,440
Total loans individually evaluated for impairment	18,681		36,687		53,692		5,708		8,675		52		123,495
Loans collectively evaluated for impairment	2,297,168		5,177,477		9,312,100		2,113,893		1,963,116		57,383		20,921,137
Loans acquired with deteriorated credit quality	3,577		60,191		—		72		—		—		63,840
Total unpaid principal balance	$	2,319,426	$	5,274,355	$	9,365,792	$	2,119,673	$	1,971,791	$	57,435	$	21,108,472
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	1,219	$	1,050	$	—	$	507	$	—	$	2,776
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		1,219		1,050		—		507		—		2,776
Loans collectively evaluated for impairment	13,842		32,114		81,252		13,714		23,387		614		164,923
Loans acquired with deteriorated credit quality	—		98		—		—		—		—		98
Total allowance for credit losses	$	13,842	$	33,431	$	82,302	$	13,714	$	23,894	$	614	$	167,797

104

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2018;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	623	$	363	$	—	$	—	$	986
Impaired loans with no allowance recorded	6,530		12,407		63,273		19,381		9,403		272		111,266
Total loans individually evaluated for impairment	6,530		12,407		63,896		19,744		9,403		272		112,252
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	3,979		79,557		—		19		—		—		83,555
Total recorded investment	$	2,325,380	$	4,213,428	$	7,762,642	$	1,204,355	$	2,134,753	$	70,071	$	17,710,629
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	1,482	$	363	$	—	$	—	$	1,845
Impaired loans with no allowance recorded	11,852		18,155		103,992		27,979		25,624		10,632		198,234
Total loans individually evaluated for impairment	11,852		18,155		105,474		28,342		25,624		10,632		200,079
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	5,315		95,680		4,352		72		—		—		105,419
Total unpaid principal balance	$	2,332,038	$	4,235,299	$	7,808,572	$	1,213,006	$	2,150,974	$	80,431	$	17,820,320
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	621	$	60	$	—	$	—	$	681
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		621		60		—		—		681
Loans collectively evaluated for impairment	14,286		20,456		82,488		11,216		22,513		981		151,940
Loans acquired with deteriorated credit quality	—		87		9		—		—		—		96
Total allowance for credit losses	$	14,286	$	20,543	$	83,118	$	11,276	$	22,513	$	981	$	152,717

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Troubled Debt Restructurings

A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. The majority of the Company's modifications are extensions in terms or deferral of payments which result in no lost principal or interest followed by reductions in interest rates or accrued interest. A TDR loan is also considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

The following table presents information on the financial effects of TDR loans by class for the periods presented:

	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	4	$	11,451	$	—	$	—	$	11,451	$	—
Commercial real estate
Owner occupied	2	2,026		—		—		2,026		—
Non-owner occupied	2	11,546		—		—		11,546		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	1	17,022		—		—		17,022		—
Land	—	—		—		—		—		—
Residential real estate	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	9	$	42,045	$	—	$	—	$	42,045	$	—

	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	35,132	$	—	$	—	$	35,132	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	294		—		—		294		—
Consumer	—	—		—		—		—		—
Total	12	$	35,426	$	—	$	—	$	35,426	$	—

106

	Year Ended December 31, 2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	3,513	$	—	$	—	$	3,513	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	3	2,993		—		—		2,993		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	122		—		—		122		—
Consumer	—	—		—		—		—		—
Total	15	$	6,628	$	—	$	—	$	6,628	$	—

The following table presents TDR loans by class for which there was a payment default during the period: 

	Year Ended December 31,
	2019			2018			2017
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	—	$	—	1	$	87
Commercial real estate
Owner occupied	—	—		—	—		1	135
Non-owner occupied	—	—		—	—		1	308
Multi-family	—	—		—	—		—	—
Construction and land development
Construction	—	—		—	—		2	1,119
Land	—	—		—	—		—	—
Residential real estate	2	371		—	—		1	48
Consumer	—	—		—	—		—	—
Total	2	$	371	—	$	—	6	$	1,697

A TDR loan is deemed to have a payment default when it becomes past due 90 days, goes on non-accrual, or is restructured again. Payment defaults, along with other qualitative indicators, are considered by management in the determination of the allowance for credit losses.

At December 31, 2019 and 2018, commitments outstanding on TDR loans totaled $0.2 million and $1.5 million, respectively.

107

Loan Purchases and Sales

The Company has a residential mortgage acquisition program, in which it partners with strategic third parties to execute flow and bulk residential loan purchases that meet the Company's goals and underwriting criteria. The following table presents these residential and other secondary market loan purchases and sales by loan portfolio segment: 

	Year Ended December 31,
	2019		2018
	(in thousands)
Loan purchases
Commercial and industrial	$	1,014,894	$	690,122
Commercial real estate - non-owner occupied	49,211		—
Construction and land development	34,490		27,517
Residential real estate	1,434,812		883,179
Total	$	2,533,407	$	1,600,818
Loan sales
Carrying value	$	98,963	$	66,477
Gain on sale	690		2,638

4. PREMISES AND EQUIPMENT

 The following is a summary of the major categories of premises and equipment:

	December 31,
	2019			2018
	(in thousands)
Bank premises	$	91,574		$	89,930
Land and improvements	32,954			32,954
Furniture, fixtures, and equipment	53,621			42,729
Leasehold improvements	28,477			25,919
Construction in progress	10,449			6,302
Total	217,075			197,834
Accumulated depreciation and amortization	(91,237		)	(78,360		)
Premises and equipment, net	$	125,838		$	119,474

5. LEASES

Adoption of ASU 2016-02, Leases

On January 1, 2019, the Company adopted the amendments to ASC 842, Leases, which requires lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, allowing entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted.

The Company has operating leases under which it leases its branch offices, corporate headquarters, other offices, and data facility centers. Upon adoption of the new lease guidance, on January 1, 2019, the Company recorded a ROU asset and corresponding lease liability of $42.5 million and $46.1 million, respectively, on the Consolidated Balance Sheet. As of December 31, 2019, the Company's operating lease ROU asset and operating lease liability totaled $72.6 million and $78.1 million, respectively. The increase in the operating lease ROU asset and the operating lease liability from the adoption date is due to execution of multiple office lease extensions and new office lease agreements subsequent to the adoption date. A weighted average discount rate of 3.08% was used in the measurement of the ROU asset and lease liability as of December 31, 2019.

The Company's leases have remaining lease terms of one to 11 years, with a weighted average lease term of 8.4 years at December 31, 2019. Some leases include multiple five-year renewal options. The Company’s decision to exercise these renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. Currently, the Company has

108

no leases for which the option to renew is reasonably certain and therefore, options to renew were not factored into the calculation of its ROU asset and lease liability as of December 31, 2019.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of December 31, 2019:

	(in thousands)
2020	$	12,369
2021	10,413
2022	9,224
2023	9,060
2024	9,007
Thereafter	40,072
Total lease payments	$	90,145
Less: imputed interest	12,033
Total present value of lease liabilities	$	78,112

The Company also has additional operating leases for its corporate headquarters and a branch location that have not yet commenced as of December 31, 2019. The aggregate future commitment related to the additional leases total $3.1 million. These operating leases will commence within the next 12 months and will have lease terms of five and 11 years.

Total operating lease costs of $12.9 million and other lease costs of $4.0 million, which include common area maintenance, parking, and taxes during the year ended December 31, 2019, were included as part of occupancy expense. Short-term lease costs were not material for the year ended December 31, 2019. For the years ended December 31, 2018 and 2017, rent expense associated with the Company's operating leases totaled $11.0 million and $10.4 million, respectively.

The below table shows the supplemental cash flow information related to the Company's operating leases for the year ended December 31, 2019:

	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,435
Right-of-use assets obtained in exchange for new operating lease liabilities	43,681

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill of $289.9 million as of December 31, 2019, which has been allocated to the Nevada, Northern California, Technology & Innovation, and HFF operating segments.

The Company performs its annual goodwill and intangibles impairment tests as of October 1 of each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. During the years ended December 31, 2019, 2018, and 2017, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary and, based on the Company's annual goodwill and intangibles impairment tests as of October 1 of each of these years, it was determined that goodwill and intangible assets are not impaired.

109

The following is a summary of the Company's acquired intangible assets:

	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	7,284	$	7,363	$	14,647	$	5,737	$	8,910
	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

As of December 31, 2019, the Company's core deposit intangible assets had a weighted average estimated useful life of 5.5 years. The Company's remaining core deposit intangible assets consist of those acquired in the acquisition of Bridge and are being amortized using an accelerated amortization method over a period of 10 years. Amortization expense recognized on amortizable intangibles totaled $1.5 million, $1.6 million, and $2.1 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Below is a summary of future estimated aggregate amortization expense:

	December 31, 2019
	(in thousands)
2020	$	1,494
2021	1,433
2022	1,364
2023	1,289
2024	1,206
Thereafter	577
Total	$	7,363

110

7. DEPOSITS

The table below summarizes deposits by type: 

	December 31,
	2019		2018
	(in thousands)
Non-interest-bearing demand deposits	$	8,537,905	$	7,456,141
Interest-bearing transaction accounts	2,760,865		2,555,609
Savings and money market accounts	9,120,747		7,330,709
Time certificates of deposit ($250,000 or more)	1,426,133		1,009,900
Other time deposits	950,843		825,088
Total deposits	$	22,796,493	$	19,177,447

The summary of the contractual maturities for all time deposits as of December 31, 2019 is as follows: 

	December 31,
	(in thousands)
2020	$	2,259,182
2021	105,237
2022	7,953
2023	3,502
2024	1,102
Total	$	2,376,976

WAB is a participant in the Promontory Interfinancial Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. Federal banking law and regulation places restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship-based and are at a greater risk of being withdrawn, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts. At December 31, 2019 and 2018, the Company had $407.7 million and $322.9 million, respectively, of reciprocal CDARS deposits and $661.8 million and $706.9 million, respectively, of ICS deposits. At December 31, 2019 and 2018, the Company had $1.1 billion and $718.2 million, respectively, of wholesale brokered deposits. In addition, non-interest-bearing deposits for which the Company provides account holders with earnings credits or referral fees totaled $3.1 billion and $2.3 billion at December 31, 2019 and 2018, respectively. The Company incurred $30.5 million and $18.0 million in deposit related costs on these deposits during the years ended December 31, 2019 and 2018, respectively.

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8. OTHER BORROWINGS

The following table summarizes the Company’s borrowings as of December 31, 2019 and 2018: 

	December 31,
	2019		2018
	(in thousands)
Short-Term:
Federal funds purchased	$	—	$	256,000
FHLB advances	—		235,000
Total short-term borrowings	$	—	$	491,000

The Company maintains federal fund lines of credit totaling $1.2 billion as of December 31, 2019, which have rates comparable to the federal funds effective rate plus 0.10% to 0.20%. As of December 31, 2019, there were no outstanding balances on the Company's lines of credit. As of December 31, 2018, outstanding balances on these federal fund lines of credit totaled $256.0 million.

The Company also maintains secured lines of credit with the FHLB and the FRB. The Company’s borrowing capacity is determined based on collateral pledged, generally consisting of investment securities and loans, at the time of the borrowing. At December 31, 2019, the Company had no short-term FHLB overnight advances. At December 31, 2018, short-term FHLB advances of $235.0 million had an interest rate of 2.56%.

Other short-term borrowing sources available to the Company include customer repurchase agreements, which have a weighted average rate of 0.15% and totaled $16.7 million and $22.4 million as of December 31, 2019 and 2018, respectively.

As of December 31, 2019 and 2018, the Company had additional available credit with the FHLB of approximately $4.5 billion and $2.5 billion, respectively, and with the FRB of approximately $1.1 billion and $1.3 billion, respectively.

9. QUALIFYING DEBT

Subordinated Debt

The Parent has $175.0 million of subordinated debentures, which were recorded net of issuance costs of $5.5 million, and mature July 1, 2056. Beginning on or after July 1, 2021, the Company may redeem the debentures, in whole or in part, at their principal amount plus any accrued and unpaid interest. The debentures have a fixed interest rate of 6.25% per annum.

WAB has $150.0 million of subordinated debt, which was recorded net of debt issuance costs of $1.8 million, and matures July 15, 2025. The subordinated debt has a fixed interest rate of 5.00% through June 30, 2020 and then converts to a variable rate of 3.20% plus three-month LIBOR through maturity.

To hedge the interest rate risk on the Company's subordinated debt issuances, the Company entered into fair value interest rate hedges with receive fixed/pay variable swaps.

The carrying value of all subordinated debt issuances, which includes the fair value of the related hedges, totals $319.2 million and $299.4 million at December 31, 2019 and 2018, respectively.

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Junior Subordinated Debt

The Company has formed or acquired through acquisition eight statutory business trusts, which exist for the exclusive purpose of issuing Cumulative Trust Preferred Securities.

The Company's junior subordinated debt has contractual balances and maturity dates as follows: 

		December 31,
Name of Trust	Maturity	2019			2018
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(4,812		)	(17,812		)
Junior subordinated debt, at fair value		$	61,685		$	48,685
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(4,845		)	(5,155		)
Junior subordinated debt, at amortized cost		$	12,682		$	12,372
Total junior subordinated debt		$	74,367		$	61,057

(1) The purchase accounting adjustment is being accreted over the remaining life of the trusts, pursuant to accounting guidance.

With the exception of debt issued by Bridge Capital Trust I and Bridge Capital Trust II, junior subordinated debt is recorded at fair value at each reporting date due to the FVO election made by the Company under ASC 825. The Company did not make the FVO election for the junior subordinated debt acquired as part of the Bridge acquisition. Accordingly, the carrying value of these trusts does not reflect the current fair value of the debt and includes a fair market value adjustment established at acquisition that is being accreted over the remaining life of the trusts.

The weighted average interest rate of all junior subordinated debt as of December 31, 2019 was 4.25%, which is three-month LIBOR plus the contractual spread of 2.34%, compared to a weighted average interest rate of 5.15% at December 31, 2018.

In the event of certain changes or amendments to regulatory requirements or federal tax rules, the debt is redeemable in whole. The obligations under these instruments are fully and unconditionally guaranteed by the Company and rank subordinate and junior in right of payment to all other liabilities of the Company. Based on guidance issued by the FRB, the Company's securities continue to qualify as Tier 1 Capital.

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10. STOCKHOLDERS' EQUITY

Stock-Based Compensation

Restricted Stock Awards

The Incentive Plan, as amended, gives the BOD the authority to grant up to 10.5 million in stock awards consisting of unrestricted stock, stock units, dividend equivalent rights, stock options (incentive and non-qualified), stock appreciation rights, restricted stock, and performance and annual incentive awards. The Incentive Plan limits the maximum number of shares of common stock that may be awarded to any person eligible for an award to 300,000 per calendar year and also limits the total compensation (cash and stock) that can be awarded to a non-employee director to $600,000 in any calendar year. Stock awards available for grant at December 31, 2019 were 2.9 million.

Restricted stock awards granted to employees generally vest over a three-year period. Stock grants made to non-employee WAL directors in 2019 became fully vested on July 1, 2019. The Company estimates the compensation cost for stock grants based upon the grant date fair value. Stock compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. Stock compensation expense related to restricted stock awards and stock options granted to employees are included in Salaries and employee benefits in the Consolidated Income Statement. For restricted stock awards granted to WAL directors, related stock compensation expense is included in Legal, professional, and directors' fees. For the year ended December 31, 2019, the Company recognized $17.4 million in stock-based compensation expense related to these stock grants, compared to $16.6 million in 2018, and $14.3 million in 2017.

In addition, the Company previously granted shares of restricted stock to certain members of executive management that had both performance and service conditions that affect vesting. There were no such grants made during the years ended December 31, 2019 and 2018; however, expense is still being recognized for the grants made in 2017 as they also have a three-year vesting period. For the year ended December 31, 2019, the Company recognized $1.9 million in stock-based compensation expense related to these performance-based restricted stock grants, compared to $2.5 million in 2018, and $2.3 million in 2017.

A summary of the status of the Company’s unvested shares of restricted stock and changes during the years then ended is presented below: 

	December 31,
	2019				2018
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except per share amounts)
Balance, beginning of period	1,027		$	47.53	1,142		$	36.96
Granted	516		46.04		425		58.02
Vested	(469	)	39.60		(477	)	32.31
Forfeited	(114	)	50.80		(63	)	43.62
Balance, end of period	960		$	49.98	1,027		$	47.53

The total weighted average grant date fair value of all stock awards, including the performance-based restricted stock awards, granted during the years ended December 31, 2019, 2018, and 2017 was $23.7 million, $24.7 million, and $26.1 million, respectively. The total fair value of restricted stock that vested during the years ended December 31, 2019, 2018, and 2017 was $21.3 million, $27.4 million, and $29.1 million, respectively.

As of December 31, 2019, there was $23.0 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Incentive Plan. That cost is expected to be recognized over a weighted average period of 1.62 years.

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Performance Stock Units

The Company grants to members of its executive management performance stock units that do not vest unless the Company achieves a specified cumulative EPS target and a TSR performance measure over a three-year performance period. The number of shares issued will vary based on the cumulative EPS target and relative TSR performance factor that is achieved. The Company estimates the cost of performance stock units based upon the grant date fair value and expected vesting percentage over the three-year performance period. For the year ended December 31, 2019, the Company recognized $6.9 million in stock-based compensation expense related to these performance stock units, compared to $6.4 million and $6.5 million in stock-based compensation expense for such units in 2018 and 2017, respectively.

The three-year performance period for the 2016 grant ended on December 31, 2018, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, executive management members were entitled to the maximum award of 202,776 shares, which was paid out in the first quarter of 2019.

The three-year performance period for the 2017 grant ended on December 31, 2019, and the Company's cumulative EPS and TSR performance measure for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, 163,901 shares will become fully vested and distributed to executive management in the first quarter of 2020.

Common Stock Repurchase

On December 12, 2018, the Company announced that it had adopted a common stock repurchase plan, pursuant to which the Company was authorized to repurchase up to $250 million of its shares of common stock through December 31, 2019. During the year ended December 31, 2019, the Company repurchased 2,822,402 shares of its common stock, pursuant to the repurchase plan. The shares were repurchased at a weighted average price of $42.53, for a total payment of $120.1 million. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

Cash Dividend

During the year ended December 31, 2019, the Company's Board of Directors declared two quarterly cash dividends of $0.25 per share of common stock, totaling $51.3 million.

Treasury Shares

Treasury share purchases represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. During the year ended December 31, 2019, the Company purchased treasury shares of 210,657 at a weighted average price of $45.80 per share, compared to 223,125 shares at a weighted average price per share of $57.88 in 2018, and 269,865 shares at a weighted average price per share of $51.16 in 2017.

115

11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated: 

	Unrealized holding gains (losses) on AFS			Unrealized holding gains (losses) on SERP			Unrealized holding gains (losses) on junior subordinated debt			Impairment loss on securities			Total
	(in thousands)
Balance, December 31, 2016	$	(14,916	)	$	121		$	9,956		$	144		$	(4,695	)
Other comprehensive income (loss) before reclassifications	6,334			264			(3,604		)	—			2,994
Amounts reclassified from AOCI	(1,444		)	—			—			—			(1,444		)
Net current-period other comprehensive income (loss)	4,890			264			(3,604		)	—			1,550
Balance, December 31, 2017	$	(10,026	)	$	385		$	6,352		$	144		$	(3,145	)
Balance, January 1, 2018 (1)	(12,556		)	469			7,740			144			(4,203		)
Other comprehensive (loss) income before reclassifications	(40,808		)	(77		)	5,693			—			(35,192		)
Amounts reclassified from accumulated other comprehensive income	5,773			—			—			—			5,773
Net current-period other comprehensive (loss) income	(35,035		)	(77		)	5,693			—			(29,419		)
Balance, December 31, 2018	$	(47,591	)	$	392		$	13,433		$	144		$	(33,622	)
Other comprehensive income (loss) before reclassifications	71,222			(412		)	(9,804		)	—			61,006
Amounts reclassified from AOCI	(2,232		)	—			—			(144		)	(2,376		)
Net current-period other comprehensive income (loss)	68,990			(412		)	(9,804		)	(144		)	58,630
Balance, December 31, 2019	$	21,399		$	(20	)	$	3,629		$	—		$	25,008

(1) As adjusted for adoption of ASU 2016-01 and ASU 2018-02. The cumulative effect of adoption of this guidance at January 1, 2018 resulted in an increase to retained earnings of $1.1 million and a corresponding decrease to accumulated other comprehensive income.

The following table presents reclassifications out of accumulated other comprehensive income: 

	Year Ended December 31,
Income Statement Classification	2019			2018			2017
	(in thousands)
Gain (loss) on sales of investment securities, net	$	3,152		$	(7,656	)	$	2,343
Income tax (expense) benefit	(776		)	1,883			(899		)
Net of tax	$	2,376		$	(5,773	)	$	1,444

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12. DERIVATIVES AND HEDGING ACTIVITIES

The Company is a party to various derivative instruments. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require a small or no initial investment, and allow for the net settlement of positions. A derivative’s notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. A derivative’s underlying variable is a specified interest rate, security price, commodity price, foreign exchange rate, index, or other variable. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the fair value of the derivative contract.

The primary type of derivatives that the Company uses are interest rate swaps. Generally, these instruments are used to help manage the Company's exposure to interest rate risk and meet client financing and hedging needs.

Derivatives are recorded at fair value on the Consolidated Balance Sheets, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow the Company to settle all derivative contracts held with the same counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable.

As of December 31, 2019, 2018, and 2017, the Company does not have any outstanding cash flow hedges.

Derivatives Designated in Hedge Relationships

The Company utilizes derivatives that have been designated as part of a hedge relationship in accordance with the applicable accounting guidance to minimize the exposure to changes in benchmark interest rates and volatility of net interest income and EVE to interest rate fluctuations. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index.

The Company has entered into pay fixed/receive variable interest rate swaps designated as fair value hedges of certain fixed rate loans. As a result, the Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts.

The Company has also entered into receive fixed/pay variable interest rate swaps, designated as fair value hedges on its fixed rate subordinated debt offerings. As a result, the Company is paying a floating rate of three month LIBOR plus 3.16% and is receiving semi-annual fixed payments of 5.00% to match the payments on the $150.0 million subordinated debt. For the fair value hedge on the Parent's $175.0 million subordinated debentures issued on June 16, 2016, the Company is paying a floating rate of three- month LIBOR plus 3.25% and is receiving quarterly fixed payments at 6.25% to match the payments on the debt.

Derivatives Not Designated in Hedge Relationships

Management also enters into certain foreign exchange derivative contracts and back-to-back interest rate swaps that are not designated as accounting hedges. Foreign exchange derivative contracts include spot, forward, and forward window contracts. The purpose of these derivative contracts is to mitigate foreign currency risk on transactions entered into or on behalf of customers. Contracts with customers, along with the related derivative trades the Company places, are both remeasured at fair value, and are referred to as economic hedges since they economically offset the Company's exposure. The Company's back-to-back interest rate swaps are used to manage long-term interest rate risk.

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As of December 31, 2019 and 2018, the following amounts are reflected on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

	December 31, 2019					December 31, 2018
	Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)		Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)
	(in thousands)
Loans - HFI, net of deferred loan fees and costs	$	578,063		$	53,292	$	650,428		$	23,039
Qualifying debt	(319,197		)	401		(299,401		)	19,691

(1) Included in the carrying value of the hedged assets/(liabilities)

For the Company's derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans, the gain or loss on the hedged item is included in interest income and for subordinated debt, the gain or loss on the hedged item is included in interest expense.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of the Company's derivative instruments on a gross and net basis as of December 31, 2019, 2018, and 2017. The change in the notional amounts of these derivatives from December 31, 2017 to December 31, 2019 indicates the volume of the Company's derivative transaction activity during these periods. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow the Company to settle all derivative contracts with the same counterparty on a net basis and to offset the net derivative position with the related collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, the Company does not adjust those derivative amounts with counterparties. The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities on the Consolidated Balance Sheets, as indicated in the following table:

	December 31, 2019						December 31, 2018						December 31, 2017
			Fair Value						Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swaps	$	862,952	$	1,778	$	55,471	$	965,705	$	2,162	$	44,892	$	993,432	$	1,703	$	53,581
Total	862,952		1,778		55,471		965,705		2,162		44,892		993,432		1,703		53,581
Netting adjustments (1)	—		21		21		—		2,162		2,162		—		896		896
Net derivatives in the balance sheet	$	862,952	$	1,757	$	55,450	$	965,705	$	—	$	42,730	$	993,432	$	807	$	52,685
Derivatives not designated as hedging instruments:
Foreign currency contracts	$	6,711	$	44	$	18	$	49,690	$	454	$	201	$	85,335	$	1,232	$	983
Interest rate swaps	2,932		81		81		2,378		27		27		36,969		776		776
Total	$	9,643	$	125	$	99	$	52,068	$	481	$	228	$	122,304	$	2,008	$	1,759

(1) Netting adjustments represent the amounts recorded to convert the Company's derivative balances from a gross basis to a net basis in accordance with the applicable accounting guidance.

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Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected positive replacement value of the contracts. Management generally enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types. In general, the Company has a zero credit threshold with regard to derivative exposure with counterparties. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises, such as GNMA, FNMA, and FHLMC. The total collateral netted against net derivative liabilities totaled $55.5 million at December 31, 2019, $44.9 million at December 31, 2018, and $53.6 million at December 31, 2017.

The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated:

	December 31,
	2019		2018		2017
	(in thousands)
Largest gross exposure (derivative asset) to an individual counterparty	$	1,757	$	1,411	$	893
Collateral posted by this counterparty	1,610		—		—
Derivative liability with this counterparty	—		23,906		40,340
Collateral pledged to this counterparty	—		25,761		60,476
Net exposure after netting adjustments and collateral	$	147	$	—	$	—

Credit Risk Contingent Features

Management has entered into certain derivative contracts that require the Company to post collateral to the counterparties when these contracts are in a net liability position. Conversely, the counterparties may be required to post collateral when these contracts are in a net asset position. The amount of collateral to be posted is based on the amount of the net liability and exposure thresholds. As of December 31, 2019, 2018, and 2017, the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting provisions) held by the Company that were in a net liability position totaled $55.5 million, $44.9 million, and $53.6 million, respectively. As of December 31, 2019, the Company was in an over-collateralized net position of $29.2 million after considering $84.7 million of collateral held in the form of cash and securities. As of December 31, 2018 and 2017, the Company was in an over-collateralized position of $7.6 million and $25.0 million, respectively.

13. EARNINGS PER SHARE

Diluted EPS is based on the weighted average outstanding common shares during the period, including common stock equivalents. Basic EPS is based on the weighted average outstanding common shares during the period.

The following table presents the calculation of basic and diluted EPS: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands, except per share amounts)
Weighted average shares - basic	102,667		104,669		104,179
Dilutive effect of stock awards	466		701		818
Weighted average shares - diluted	103,133		105,370		104,997
Net income	$	499,171	$	435,788	$	325,492
Earnings per share - basic	4.86		4.16		3.12
Earnings per share - diluted	4.84		4.14		3.10

The Company had no anti-dilutive stock options outstanding as of December 31, 2019 and 2018.

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14. INCOME TAXES

The provision for income taxes charged to operations consists of the following: 

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Current	$	110,184		$	91,249		$	37,854
Deferred	(5,129		)	(16,709		)	88,471
Total tax provision	$	105,055		$	74,540		$	126,325

The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate is summarized as follows: 

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Income tax at statutory rate	$	126,888		$	107,169		$	158,136
Increase (decrease) resulting from:
State income taxes, net of federal benefits	11,004			9,015			9,765
Tax-exempt income	(19,527		)	(18,322		)	(26,403		)
Change in federal rate applied to deferred items	—			—			(10,411		)
Federal NOL and other carryback items	—			(15,341		)	—
Excise tax	—			(137		)	9,689
Investment tax credits	(15,000		)	(6,673		)	(7,361		)
Other, net	1,690			(1,171		)	(7,090		)
Total tax provision	$	105,055		$	74,540		$	126,325

For the years ended December 31, 2019, 2018, and 2017 the Company's effective tax rate was 17.39%, 14.61%, and 27.96%, respectively. The increase in the effective tax rate from 2018 to 2019 is due primarily to management's decision during the third quarter of 2018 to carryback its 2017 federal NOLs. The decrease in the effective tax rate from 2017 to 2018 is due primarily to the decrease in the federal statutory rate effective in 2018, a reduction in excise taxes, and management's decision to carryback its 2017 federal NOLs. The reduction in excise taxes from 2017 to 2018 resulted from not deferring WAB's 2018 dividend from BW Real Estate as was the case in 2017. The Company's 2017 federal NOLs resulted from the acceleration of deductions into and deferral of revenue from 2017. As the federal income tax rate was higher in the years to which the carryback is applicable, a larger tax benefit results from the decision to carryback the 2017 federal NOLs, rather than carry forward these losses to future taxable years.

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The cumulative tax effects of the primary temporary differences are shown in the following table:

	December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	44,809		$	42,833
Lease liability (1)	20,264			—
Stock-based compensation	7,351			8,718
Net operating loss carryovers	5,619			6,255
Unrealized loss on AFS securities	—			16,047
Other	19,361			20,687
Total gross deferred tax assets	97,404			94,540
Deferred tax asset valuation allowance	—			(2,373		)
Total deferred tax assets	97,404			92,167
Deferred tax liabilities:
Right of use asset (1)	(18,823		)	—
Unrealized gain on AFS securities	(7,264		)	—
Unrealized gain on junior subordinated debt	(1,229		)	(5,833		)
Deferred loan costs	(10,789		)	(9,528		)
Insurance premiums	(4,514		)	(6,527		)
Premises and equipment	(8,372		)	(1,201		)
Estimated loss reserve	(14,890		)	(31,592		)
50(d) income	(6,792		)	(1,624		)
Other	(6,706		)	(3,872		)
Total deferred tax liabilities	(79,379		)	(60,177		)
Deferred tax assets, net	$	18,025		$	31,990

(1) Upon adoption of ASC 842 on January 1, 2019, a lease liability DTA and a right of use asset DTL were established and totaled $9.7 million and $9.1 million, respectively. While there may be significant changes in the separate DTA and DTL balances of these two items, the aggregate effect of these two changes will generally offset and therefore are not discussed as significant changes to the net deferred balance.

Deferred tax assets and liabilities are included in the Consolidated Financial Statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be reversed. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets decreased $14.0 million to $18.0 million from December 31, 2018. This overall decrease in net deferred tax assets was primarily the result of the increases in the fair market value of AFS securities. In addition, there was a large decrease to the overall estimated loss reserve, which was largely offset by increases to DTLs related to premises and equipment and income associated with tax credits for lease pass-through transactions (50(d) income).

Although realization is not assured, the Company believes that the realization of the recognized net deferred tax asset of $18.0 million at December 31, 2019 is more-likely-than-not based on expectations as to future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring.

As of December 31, 2019, the Company has no deferred tax valuation allowance. As of December 31, 2018, the Company had a deferred tax valuation allowance of $2.4 million related to net capital loss carryovers.

As of December 31, 2019, the Company’s gross federal NOL carryovers, all of which are subject to limitations under Section 382 of the IRC, totaled $45.8 million, for which a deferred tax asset of $5.5 million has been recorded, reflecting the expected benefit of these federal NOL carryovers remaining after application of the Section 382 limitation. The Company also has varying gross amounts of state NOL carryovers, primarily in Arizona. The gross Arizona NOL carryovers totaled approximately $2.2 million. A deferred tax asset of $0.2 million has been recorded to reflect the expected benefit of all state NOL carryovers remaining. If not utilized, a portion of the federal and state NOL carryovers will begin to expire in 2024. As of December 31, 2019, the Company had no federal tax credit carryovers and $1.4 million of state tax credit carryovers. If not utilized, a portion of the state tax credit carryovers will begin to expire in 2023. In management’s opinion, it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize all of the deferred tax benefits related to these NOL and tax credit carryovers.

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The Company files income tax returns in the U.S. federal jurisdiction and in various states. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2015.

When tax returns are filed, it is highly certain that most positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the Consolidated Financial Statements in the period in which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits on the accompanying Consolidated Balance Sheets along with any associated interest and penalties payable to the taxing authorities upon examination.

The total gross activity of unrecognized tax benefits related to the Company's uncertain tax positions are shown in the following table:

	December 31,
	2019		2018
	(in thousands)
Beginning balance	$	484	$	1,038
Gross increases
Tax positions in prior periods	—		—
Current period tax positions	1,255		—
Gross decreases
Tax positions in prior periods	—		(247		)
Settlements	—		(307		)
Lapse of statute of limitations	—		—
Ending balance	$	1,739	$	484

During the year ended December 31, 2019, the Company added a new current year position, which resulted in a tax detriment of $0.8 million, inclusive of interest and penalties.

As of December 31, 2019 and 2018, the total amount of unrecognized tax benefits, net of associated deferred tax benefits, that would impact the effective tax rate, if recognized, is $1.1 million and $0.3 million, respectively. The Company anticipates that $0.1 million of the unrecognized tax benefits will be resolved within the next 12 months.

During the years ended December 31, 2019, 2018, and 2017, the Company recognized no additional amounts for interest and penalties. As of December 31, 2019 and 2018, the Company has accrued total liabilities of $0.1 million for penalties and no amounts for interest.

LIHTC and renewable energy projects

As discussed in "Note 1. Summary of Significant Accounting Policies," the Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The limited liability entities are considered to be VIEs; however, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities.

At December 31, 2019, the Company’s exposure to loss as a result of its involvement in these entities was limited to $487.3 million, which reflects the Company’s recorded investment in these projects, net of certain unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities. During the years ended December 31, 2019, 2018, and 2017, the Company did not provide financial or other support to these entities that was not contractually required.

Investments in LIHTC and renewable energy total $409.4 million and $369.6 million as of December 31, 2019 and 2018, respectively. Unfunded LIHTC and renewable energy obligations are included as part of other liabilities on the Consolidated Balance Sheet and total $191.0 million and $196.3 million as of December 31, 2019 and 2018, respectively. For the years ended December 31, 2019, 2018, and 2017, $41.5 million, $35.9 million, and $25.4 million of amortization related to LIHTC investments was recognized as a component of income tax expense, respectively.

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15. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments and Letters of Credit

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the Consolidated Balance Sheets.

Lines of credit are obligations to lend money to a borrower. Credit risk arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made. In the case of letters of credit, the risk arises from the potential failure of the customer to perform according to the terms of a contract. In such a situation, the third party might draw on the letter of credit to pay for completion of the contract and the Company would look to its customer to repay these funds with interest. To minimize the risk, the Company uses the same credit policies in making commitments and conditional obligations as it would for a loan to that customer.

Letters of credit and financial guarantees are commitments issued by the Company to guarantee the performance of a customer to a third party in borrowing arrangements. The Company generally has recourse to recover from the customer any amounts paid under the guarantees. Typically, letters of credit issued have expiration dates within one year.

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: 

	December 31,
	2019		2018
	(in thousands)
Commitments to extend credit, including unsecured loan commitments of $895,175 at December 31, 2019 and $770,114 at December 31, 2018	$	8,348,421	$	7,556,741
Credit card commitments and financial guarantees	302,909		237,312
Letters of credit, including unsecured letters of credit of $5,850 at December 31, 2019 and $21,879 at December 31, 2018	175,778		390,161
Total	$	8,827,108	$	8,184,214

The following table represents the contractual commitments for lines and letters of credit by maturity at December 31, 2019: 

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	8,348,421	$	2,873,303	$	3,170,848	$	1,299,506	$	1,004,764
Credit card commitments and financial guarantees	302,909		302,909		—		—		—
Letters of credit	175,778		156,375		18,786		617		—
Total	$	8,827,108	$	3,332,587	$	3,189,634	$	1,300,123	$	1,004,764

Commitments to extend credit are agreements to lend to a customer provided that there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

The Company has exposure to credit losses from unfunded commitments and letters of credit. As funds have not been disbursed on these commitments, they are not reported as loans outstanding. Credit losses related to these commitments are included in other liabilities as a separate loss contingency and are not included in the allowance for credit losses reported in "Note 3. Loans, Leases and Allowance for Credit Losses" of these Consolidated Financial Statements. This loss contingency for unfunded loan commitments and letters of credit was $9.0 million and $8.2 million as of December 31, 2019 and 2018, respectively. Changes to this liability are adjusted through other expense in the Consolidated Income Statements.

123

Concentrations of Lending Activities

The Company’s lending activities are driven in large part by the customers served in the market areas where the Company has branch offices in the states of Arizona, Nevada, and California. Despite the geographic concentration of lending activities, the Company does not have a single external customer from which it derives 10% or more of its revenues. The Company monitors concentrations within four broad categories: geography, industry, product, and collateral. The Company's loan portfolio includes significant credit exposure to the CRE market. As of December 31, 2019 and 2018, CRE related loans accounted for approximately 45% and 49% of total loans, respectively. Substantially all of these loans are secured by first liens with an initial loan-to-value ratio of generally not more than 75%. Approximately 31% and 36% of these CRE loans, excluding construction and land loans, were owner occupied as of December 31, 2019 and 2018, respectively.

Contingencies

The Company is involved in various lawsuits of a routine nature that are being handled and defended in the ordinary course of the Company’s business. Expenses are being incurred in connection with these lawsuits, but in the opinion of management, based in part on consultation with outside legal counsel, the resolution of these lawsuits and associated defense costs will not have a material impact on the Company’s financial position, results of operations, or cash flows.

16. FAIR VALUE ACCOUNTING

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 825 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 825 are described in "Note 1. Summary of Significant Accounting Policies" of these Notes to Consolidated Financial Statements.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally-developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels in the fair value hierarchy are recognized as of the end of the month following the event or change in circumstances that caused the transfer.

Under ASC 825, the Company elected the FVO treatment for junior subordinated debt issued by WAL. This election is irrevocable and results in the recognition of unrealized gains and losses on these items at each reporting date. These unrealized gains and losses are recognized as part of other comprehensive income rather than earnings. The Company did not elect FVO treatment for the junior subordinated debt assumed in the Bridge Capital Holdings acquisition.

For the years ended December 31, 2019, 2018, and 2017, unrealized gains and losses from fair value changes on junior subordinated debt were as follows:

	Year Ended December 31,
	2019			2018		2017
	(in thousands)
Unrealized gains/(losses)	$	(13,001	)	$	7,550	$	(5,824	)
Changes included in OCI, net of tax	(9,804		)	5,693		(3,604		)

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Fair value on a recurring basis

Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

AFS securities: Securities classified as AFS are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include quoted prices in active markets, dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things.

Equity securities: Preferred stock and CRA investments are reported at fair value utilizing Level 1 inputs.

Independent pricing service: The Company's independent pricing service provides pricing information on the majority of the Company's Level 1 and 2 AFS securities. For a small subset of securities, other pricing sources are used, including observed prices on publicly-traded securities and dealer quotes. Management independently evaluates the fair value measurements received from the Company's third-party pricing service through multiple review steps. First, management reviews what has transpired in the marketplace with respect to interest rates, credit spreads, volatility, and mortgage rates, among other things, and develops an expectation of changes to the securities' valuations from the previous quarter. Then, management selects a sample of investment securities and compares the values provided by its primary third-party pricing service to the market values obtained from secondary sources, including other pricing services and safekeeping statements, and evaluates those with notable variances. In instances where there are discrepancies in pricing from various sources and management expectations, management may manually price securities using currently observed market data to determine whether they can develop similar prices or may utilize bid information from broker dealers. Any remaining discrepancies between management's review and the prices provided by the vendor are discussed with the vendor and/or the Company's other valuation advisors.

Interest rate swaps: Interest rate swaps are reported at fair value utilizing Level 2 inputs. The Company obtains dealer quotations to value its interest rate swaps.

Junior subordinated debt: The Company estimates the fair value of its junior subordinated debt using a discounted cash flow model which incorporates the effect of the Company’s own credit risk in the fair value of the liabilities (Level 3). The Company’s cash flow assumptions are based on contractual cash flows as the Company anticipates that it will pay the debt according to its contractual terms.

125

The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs as of the periods presented: 

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2019
Assets:
Available-for-sale debt securities
CDO	$	—	$	10,142	$	—	$	10,142
Commercial MBS issued by GSEs	—		94,253		—		94,253
Corporate debt securities	5,127		94,834		—		99,961
Municipal securities	—		7,773		—		7,773
Private label residential MBS	—		1,129,227		—		1,129,227
Residential MBS issued by GSEs	—		1,412,060		—		1,412,060
Tax-exempt	—		554,855		—		554,855
Trust preferred securities	27,040		—		—		27,040
U.S. government sponsored agency securities	—		10,000		—		10,000
U.S. treasury securities	—		999		—		999
Total AFS debt securities	$	32,167	$	3,314,143	$	—	$	3,346,310
Equity securities
CRA investments	$	52,504	$	—	$	—	$	52,504
Preferred stock	86,197		—		—		86,197
Total equity securities	$	138,701	$	—	$	—	$	138,701
Loans - HFS	$	—	$	21,803	$	—	$	21,803
Derivative assets (1)	—		1,903		—		1,903
Liabilities:
Junior subordinated debt (2)	$	—	$	—	$	61,685	$	61,685
Derivative liabilities (1)	—		55,570		—		55,570

(1) Derivative assets and liabilities relate to interest rate swaps, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $53,292 and the net carrying value of subordinated debt is decreased by $401 as of December 31, 2019 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.

(2) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

126

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2018
Assets:
Available-for-sale debt securities
CDO	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		100,106
Corporate debt securities	—		99,380		—		99,380
Private label residential MBS	—		924,594		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		1,530,124
Tax-exempt	—		538,668		—		538,668
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		38,188		—		38,188
U.S. treasury securities	—		1,984		—		1,984
Total AFS debt securities	$	—	$	3,276,988	$	—	$	3,276,988
Equity securities
CRA investments	$	51,142	$	—	$	—	$	51,142
Preferred stock	63,919		—		—		63,919
Total equity securities	$	115,061	$	—	$	—	$	115,061
Derivative assets (1)	$	—	$	2,643	$	—	$	2,643
Liabilities:
Junior subordinated debt (2)	$	—	$	—	$	48,684	$	48,684
Derivative liabilities (1)	—		45,120		—		45,120

(1) Derivative assets and liabilities relate to interest rate swaps, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $23,039 and the net carrying value of subordinated debt is decreased by $19,691 as of December 31, 2018, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.

(2) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

For the years ended December 31, 2019, 2018, and 2017, the change in Level 3 liabilities measured at fair value on a recurring basis was as follows: 

	Junior Subordinated Debt
	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	(48,684	)	$	(56,234	)	$	(50,410	)
Change in fair value (1)	(13,001		)	7,550			(5,824		)
Ending balance	$	(61,685	)	$	(48,684	)	$	(56,234	)

 

(1) Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled $(9.8) million, $5.7 million, and $(3.6) million for the years ended December 31, 2019, 2018, and 2017, respectively.

127

For Level 3 liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018, the significant unobservable inputs used in the fair value measurements were as follows: 

	December 31, 2019		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	61,685	Discounted cash flow	Implied credit rating of the Company	5.09	%

 

	December 31, 2018		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	48,684	Discounted cash flow	Implied credit rating of the Company	7.82	%

The significant unobservable input used in the fair value measurement of the Company’s junior subordinated debt as of December 31, 2019 and 2018 was the implied credit risk for the Company, calculated as the difference between the 15-year 'BB' rated financial index over the corresponding swap index.

As of December 31, 2019, the Company estimates the discount rate at 5.09%, which represents an implied credit spread of 3.18% plus three-month LIBOR (1.91%). As of December 31, 2018, the Company estimated the discount rate at 7.82%, which was a 5.01% credit spread plus three-month LIBOR (2.81%).

Fair value on a nonrecurring basis

Certain assets are measured at fair value on a nonrecurring basis. That is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents such assets carried on the balance sheet by caption and by level within the ASC 825 hierarchy:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of December 31, 2019
Impaired loans with specific valuation allowance	$	18,203	$	—	$	—	$	18,203
Impaired loans without specific valuation allowance (1)	92,069		—		—		92,069
Other assets acquired through foreclosure	13,850		—		—		13,850
As of December 31, 2018
Impaired loans with specific valuation allowance	$	305	$	—	$	—	$	305
Impaired loans without specific valuation allowance (1)	91,821		—		—		91,821
Other assets acquired through foreclosure	17,924		—		—		17,924

(1) Net of loan balances with charge-offs of $3.3 million and $19.4 million as of December 31, 2019 and 2018, respectively.

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018, the significant unobservable inputs used in the fair value measurements were as follows:

	December 31, 2019		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	110,272	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	13,850		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

128

	December 31, 2018		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	92,126	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	17,924		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

Impaired loans: The specific reserves for collateral dependent impaired loans are based on collateral value, net of estimated disposition costs and other identified quantitative inputs. Collateral value is determined based on independent third-party appraisals or internally-developed discounted cash flow analyses. Appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. In addition, when adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. Internal discounted cash flow analyses are also utilized to estimate the fair value of impaired loans, which considers internally-developed, unobservable inputs such as discount rates, default rates, and loss severity.

Total Level 3 impaired loans had an estimated fair value of $110.3 million and $92.1 million at December 31, 2019 and 2018, respectively. Impaired loans with a specific valuation allowance had a gross estimated fair value of $21.0 million and $1.0 million at December 31, 2019 and 2018, respectively, which was reduced by a specific valuation allowance of $2.8 million and $0.7 million, respectively.

Other assets acquired through foreclosure: Other assets acquired through foreclosure consist of properties acquired as a result of, or in-lieu-of, foreclosure. These assets are initially reported at the fair value determined by independent appraisals using appraised value less estimated cost to sell. Such properties are generally re-appraised every 12 months. There is risk for subsequent volatility. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense.

Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. When significant adjustments are based on unobservable inputs, such as when a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the resulting fair value measurement has been categorized as a Level 3 measurement. The Company had $13.9 million and $17.9 million of such assets at December 31, 2019 and 2018, respectively.

Credit vs. non-credit losses

Under the provisions of ASC 320, Investments-Debt and Equity Securities, OTTI is separated into the amount of total impairment related to the credit loss and the amount of the total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in OCI.

For the years ended December 31, 2019, 2018, and 2017, the Company determined that there were no securities that experienced credit losses.

There is no OTTI balance recognized in comprehensive income as of December 31, 2019 and 2018.

129

FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of the Company’s financial instruments is as follows: 

	December 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	485,107	$	—	$	516,261	$	—	$	516,261
AFS	3,346,310		32,167		3,314,143		—		3,346,310
Equity securities	138,701		138,701		—		—		138,701
Derivative assets	1,903		—		1,903		—		1,903
Loans, net	20,955,499		—		—		21,256,462		21,256,462
Accrued interest receivable	108,694		—		108,694		—		108,694
Financial liabilities:
Deposits	$	22,796,493	$	—	$	22,813,265	$	—	$	22,813,265
Customer repurchase agreements	16,675		—		16,675		—		16,675
Qualifying debt	393,563		—		332,635		74,155		406,790
Derivative liabilities	55,570		—		55,570		—		55,570
Accrued interest payable	24,661		—		24,661		—		24,661

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	302,905	$	—	$	298,648	$	—	$	298,648
AFS	3,276,988		—		3,276,988		—		3,276,988
Equity securities	115,061		115,061		—		—		115,061
Derivative assets	2,643		—		2,643		—		2,643
Loans, net	17,557,912		—		16,857,852		92,126		16,949,978
Accrued interest receivable	101,275		—		101,275		—		101,275
Financial liabilities:
Deposits	$	19,177,447	$	—	$	19,188,216	$	—	$	19,188,216
Customer repurchase agreements	22,411		—		22,411		—		22,411
Other borrowings	491,000		—		491,000		—		491,000
Qualifying debt	360,458		—		323,572		57,924		381,496
Derivative liabilities	45,120		—		45,120		—		45,120
Accrued interest payable	20,463		—		20,463		—		20,463

Interest rate risk

The Company assumes interest rate risk (the risk to the Company’s earnings and capital from changes in interest rate levels) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments, as well as its future net interest income will change when interest rate levels change and that change may be either favorable or unfavorable to the Company.

Interest rate risk exposure is measured using interest rate sensitivity analysis to determine the Company's change in EVE and net interest income resulting from hypothetical changes in interest rates. If potential changes to EVE and net interest income resulting from hypothetical interest rate changes are not within the limits established by the BOD, the BOD may direct management to adjust the asset and liability mix to bring interest rate risk within BOD-approved limits.

WAB has an ALCO charged with managing interest rate risk within the BOD-approved limits. Limits are structured to preclude an interest rate risk profile that does not conform to both management and BOD risk tolerances without ALCO approval. There

130

is also ALCO reporting at the Parent level for reviewing interest rate risk for the Company, which gets reported to the BOD and its Finance and Investment Committee.

Fair value of commitments

The estimated fair value of standby letters of credit outstanding at December 31, 2019 and 2018 is insignificant. Loan commitments on which the committed interest rates are less than the current market rate are also insignificant at December 31, 2019 and 2018.

17. REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

As of December 31, 2019 and 2018, the Company and the Bank's capital ratios exceeded the well-capitalized thresholds, as defined by the federal banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2019
WAL	$	3,257,874	$	2,775,390	$	25,390,142	$	26,110,275	12.8	%	10.9	%	10.6	%	10.6	%
WAB	3,030,301		2,703,549		25,452,261		26,134,431		11.9		10.6		10.3		10.6
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

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18. EMPLOYEE BENEFIT PLANS

The Company has a qualified 401(k) employee benefit plan for all eligible employees. Participants are able to defer between 1% and 75% (up to a maximum of $19,000 for those under 50 years of age and up to a maximum of $25,000 for those over 50 years of age in 2019) of their annual compensation. The Company may elect to match a discretionary amount each year, which is 75% of the first 6% of the participant’s compensation deferred into the plan. The Company’s contributions to this plan total $6.2 million, $5.6 million, and $3.1 million for the years ended December 31, 2019, 2018, and 2017, respectively.

In addition, the Company maintains a non-qualified 401(k) restoration plan for the benefit of executives of the Company and certain affiliates. Participants are able to defer a portion of their annual salary and receive a matching contribution based primarily on the contribution structure in effect under the Company’s 401(k) plan, but without regard to certain statutory limitations applicable under the 401(k) plan. The Company’s total contribution to the restoration plan was $0.1 million for the years ended December 31, 2019, 2018, and 2017.

In connection with the Bridge acquisition, the Company assumed Bridge's SERP, an unfunded noncontributory defined benefit pension plan. The SERP provides retirement benefits to certain Bridge officers based on years of service and final average salary. The Company uses a December 31 measurement date for this plan.

The following table reflects the accumulated benefit obligation and funded status of the SERP:

	December 31,
	2019			2018
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of period	$	9,991		$	8,891
Service cost	632			614
Interest cost	569			512
Actuarial losses/(gains)	834			41
Expected benefits paid	(270		)	(67		)
Projected benefit obligation at end of year	$	11,756		$	9,991
Unfunded projected/accumulated benefit obligation	(11,756		)	(9,991		)
Additional liability	$	—		$	—
Weighted average assumptions to determine benefit obligation
Discount rate	5.25		%	5.75		%
Rate of compensation increase	3.00		%	3.00		%

The components of net periodic benefit cost recognized for the year ended December 31, 2019 and 2018 and the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2020 are as follows:

	Year Ended December 31,
	2020			2019			2018
	(in thousands)
Components of net periodic benefit cost
Service cost	$	511		$	632		$	614
Interest cost	612			569			512
Amortization of prior service cost	19			64			103
Amortization of actuarial (gains)/losses	(35		)	(159		)	(164		)
Net periodic benefit cost	$	1,107		$	1,106		$	1,065
Other comprehensive income (cost)	$	(16	)	$	(95	)	$	(61	)

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19. RELATED PARTY TRANSACTIONS

Principal stockholders, directors, and executive officers of the Company, their immediate family members, and companies they control or own more than a 10% interest in, are considered to be related parties. In the ordinary course of business, the Company engages in various related party transactions, including extending credit and bank service transactions. All related party transactions are subject to review and approval pursuant to the Company's Related Party Transactions policy.

Federal banking regulations require that any extensions of credit to insiders and their related interests not be offered on terms more favorable than would be offered to non-related borrowers of similar creditworthiness. The following table summarizes the aggregate activity in such loans for the periods indicated:

	Year Ended December 31,
	2019			2018
	(in thousands)
Balance, beginning	$	4,580		$	5,918
New loans	—			—
Advances	323			—
Repayments and other	(1,091		)	(1,338		)
Balance, ending	$	3,812		$	4,580

None of these loans are past due, on non-accrual status or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2019 or 2018. The interest income associated with these loans was approximately $0.2 million, $0.3 million and $0.5 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Loan commitments outstanding with related parties totaled approximately $10.6 million and $30.7 million at December 31, 2019 and 2018, respectively.

The Company also accepts deposits from related parties, which totaled $100.1 million and $87.9 million at December 31, 2019 and 2018, respectively, with related interest expense totaling approximately $0.3 million during the year ended December 31, 2019, and $0.2 million during each of the years ended December 31, 2018 and 2017.

Donations, sponsorships, and other payments to related parties totaled less than $1.0 million during the years ended December 31, 2019 and 2017 and totaled $8.1 million during the year ended December 31, 2018. Total related party payments of $8.1 million for the year ended December 31, 2018 include a donation to the Company's charitable foundation of $7.6 million, which consisted of a non-cash donation of OREO property of $6.9 million and a cash donation of $0.7 million.

During the year ended December 31, 2018, the Company sold an OREO property to a related party with a carrying value $0.9 million and recognized a loss of $0.2 million on the sale.

133

20. PARENT COMPANY FINANCIAL INFORMATION

The condensed financial statements of the holding company are presented in the following tables:

WESTERN ALLIANCE BANCORPORATION

Condensed Balance Sheets 

	December 31,
	2019		2018
	(in thousands)
ASSETS:
Cash and cash equivalents	$	75,885	$	115,721
Money market investments	—		7
Investment securities - AFS	12,767		16,454
Investment securities - equity	47,123		49,824
Investment in bank subsidiaries	3,063,470		2,568,027
Investment in non-bank subsidiaries	52,337		80,019
Other assets	22,488		27,200
Total assets	$	3,274,070	$	2,857,252
LIABILITIES AND STOCKHOLDERS' EQUITY:
Qualifying debt	$	242,000	$	211,376
Accrued interest and other liabilities	15,322		32,142
Total liabilities	257,322		243,518
Total stockholders’ equity	3,016,748		2,613,734
Total liabilities and stockholders’ equity	$	3,274,070	$	2,857,252

WESTERN ALLIANCE BANCORPORATION

Condensed Income Statements 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Income:
Dividends from subsidiaries	$	134,000	$	152,116	$	97,264
Interest income	2,818		2,905		2,547
Non-interest income	5,112		761		2,470
Total income	141,930		155,782		102,281
Expense:
Interest expense	14,554		13,949		11,459
Non-interest expense	19,543		19,025		16,293
Total expense	34,097		32,974		27,752
Income before income taxes and equity in undistributed earnings of subsidiaries	107,833		122,808		74,529
Income tax benefit	5,628		10,436		5,229
Income before equity in undistributed earnings of subsidiaries	113,461		133,244		79,758
Equity in undistributed earnings of subsidiaries	385,710		302,544		245,734
Net income	$	499,171	$	435,788	$	325,492

134

Western Alliance Bancorporation

Condensed Statements of Cash Flows

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Cash flows from operating activities:
Net income	$	499,171		$	435,788		$	325,492
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net undistributed earnings of subsidiaries	(385,710		)	(302,544		)	(245,734		)
Other operating activities, net	9,885			(5,889		)	16,921
Net cash provided by operating activities	123,346			127,355			96,679
Cash flows from investing activities:
Purchases of securities	(10,841		)	(44,409		)	(11,765		)
Principal pay downs, calls, maturities, and sales proceeds of securities	19,032			11,362			23,196
Capital contributions to subsidiaries	—			—			(50,000		)
Other investing activities, net	7			(7		)	—
Net cash provided by (used in) investing activities	8,198			(33,054		)	(38,569		)
Cash flows from financing activities:
Share repurchases	(120,131		)	(35,688		)	—
Other financing activities, net	80			554			(12,965		)
Dividends paid on common stock	(51,329		)	—			—
Net cash used in financing activities	(171,380		)	(35,134		)	(12,965		)
Net (decrease) increase in cash and cash equivalents	(39,836		)	59,167			45,145
Cash and cash equivalents at beginning of year	115,721			56,554			11,409
Cash and cash equivalents at end of year	$	75,885		$	115,721		$	56,554

135

21. SEGMENTS

The Company's reportable segments are aggregated based primarily on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: ABA in Arizona, BON and FIB in Nevada, TPB in Southern California, and Bridge in Northern California.

The Company's NBL segments provide specialized banking services to niche markets. The Company's NBL reportable segments include HOA Services, Public & Nonprofit Finance, Technology & Innovation, HFF, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately located within the Company's core market areas.

The Corporate & Other segment consists of corporate-related items, income and expense items not allocated to the Company's other reportable segments, and inter-segment eliminations.

The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 12% during the year, with a funds credit provided for the use of this equity as a funding source. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.

Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segment to the extent that the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.

Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average life of the assets or liabilities in the portfolio.

Net income amounts for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, average loan balances, and average deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.

Income taxes are applied to each segment based on the effective tax rate for the geographic location of the segment. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.

136

The following is a summary of operating segment balance sheet information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2019:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,471.2		$	1.8		$	9.0		$	2.3		$	2.2
Loans, net of deferred loan fees and costs	21,123.3			3,847.9			2,252.5			2,253.9			1,311.2
Less: allowance for credit losses	(167.8		)	(31.6		)	(18.0		)	(18.3		)	(9.7		)
Total loans	20,955.5			3,816.3			2,234.5			2,235.6			1,301.5
Other assets acquired through foreclosure, net	13.9			—			13.0			0.9			—
Goodwill and other intangible assets, net	297.6			—			23.2			—			154.6
Other assets	1,083.7			48.6			59.4			15.0			19.8
Total assets	$	26,821.9		$	3,866.7		$	2,339.1		$	2,253.8		$	1,478.1
Liabilities:
Deposits	$	22,796.5		$	5,384.7		$	4,350.1		$	2,585.3		$	2,373.6
Borrowings and qualifying debt	393.6			—			—			—			—
Other liabilities	615.1			17.8			11.9			1.2			15.9
Total liabilities	23,805.2			5,402.5			4,362.0			2,586.5			2,389.5
Allocated equity:	3,016.7			453.6			301.0			253.3			312.5
Total liabilities and stockholders' equity	$	26,821.9		$	5,856.1		$	4,663.0		$	2,839.8		$	2,702.0
Excess funds provided (used)	—			1,989.4			2,323.9			586.0			1,223.9

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	10.1		$	4,445.8
Loans, net of deferred loan fees and costs	237.2			1,635.6			1,552.0			1,930.8			6,098.7			3.5
Less: allowance for credit losses	(2.0		)	(13.7		)	(12.6		)	(12.6		)	(49.3		)	—
Total loans	235.2			1,621.9			1,539.4			1,918.2			6,049.4			3.5
Other assets acquired through foreclosure, net	—			—			—			—			—			—
Goodwill and other intangible assets, net	—			—			119.7			0.1			—			—
Other assets	1.2			18.3			7.3			8.8			64.3			841.0
Total assets	$	236.4		$	1,640.2		$	1,666.4		$	1,927.1		$	6,123.8		$	5,290.3
Liabilities:
Deposits	$	3,210.1		$	0.1		$	3,771.5		$	—		$	36.9		$	1,084.2
Borrowings and qualifying debt	—			—			—			—			—			393.6
Other liabilities	1.8			52.9			0.1			—			2.8			510.7
Total liabilities	3,211.9			53.0			3,771.6			—			39.7			1,988.5
Allocated equity:	84.5			131.6			317.5			158.5			494.3			509.9
Total liabilities and stockholders' equity	$	3,296.4		$	184.6		$	4,089.1		$	158.5		$	534.0		$	2,498.4
Excess funds provided (used)	3,060.0			(1,455.6		)	2,422.7			(1,768.6		)	(5,589.8		)	(2,791.9		)

137

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2018:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,259.7		$	2.5		$	10.9		$	2.5		$	3.0
Loans, net of deferred loan fees and costs	17,710.6			3,647.9			2,003.5			2,161.1			1,300.2
Less: allowance for credit losses	(152.7		)	(30.7		)	(18.7		)	(19.8		)	(10.7		)
Total loans	17,557.9			3,617.2			1,984.8			2,141.3			1,289.5
Other assets acquired through foreclosure, net	17.9			0.8			13.9			—			—
Goodwill and other intangible assets, net	299.2			—			23.2			—			155.5
Other assets	974.8			46.9			57.8			14.2			23.9
Total assets	$	23,109.5		$	3,667.4		$	2,090.6		$	2,158.0		$	1,471.9
Liabilities:
Deposits	$	19,177.4		$	5,090.2		$	3,996.4		$	2,347.5		$	1,839.1
Borrowings and qualifying debt	851.5			—			—			—			—
Other liabilities	466.9			10.4			14.5			4.5			12.2
Total liabilities	20,495.8			5,100.6			4,010.9			2,352.0			1,851.3
Allocated equity:	2,613.7			441.0			277.4			242.9			304.1
Total liabilities and stockholders' equity	$	23,109.5		$	5,541.6		$	4,288.3		$	2,594.9		$	2,155.4
Excess funds provided (used)	—			1,874.2			2,197.7			436.9			683.5

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,240.8
Loans, net of deferred loan fees and costs	210.0			1,547.5			1,200.9			1,479.9			4,154.9			4.7
Less: allowance for credit losses	(1.9		)	(14.2		)	(10.0		)	(8.5		)	(38.2		)	—
Total loans	208.1			1,533.3			1,190.9			1,471.4			4,116.7			4.7
Other assets acquired through foreclosure, net	—			—			—			—			—			3.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	0.9			20.1			6.3			7.2			37.1			760.4
Total assets	$	209.0		$	1,553.4		$	1,317.6		$	1,478.7		$	4,153.8		$	5,009.1
Liabilities:
Deposits	$	2,607.2		$	—		$	2,559.0		$	—		$	—		$	738.0
Borrowings and qualifying debt	—			—			—			—			—			851.5
Other liabilities	2.1			25.2			0.1			0.4			49.6			347.9
Total liabilities	2,609.3			25.2			2,559.1			0.4			49.6			1,937.4
Allocated equity:	70.7			123.9			268.7			122.3			340.0			422.7
Total liabilities and stockholders' equity	$	2,680.0		$	149.1		$	2,827.8		$	122.7		$	389.6		$	2,360.1
Excess funds provided (used)	2,471.0			(1,404.3		)	1,510.2			(1,356.0		)	(3,764.2		)	(2,649.0		)

138

The following is a summary of operating segment income statement information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2019:	(in thousands)
Net interest income	$	1,040,412		$	249,083		$	161,801		$	131,053		$	95,697
Provision for (recovery of) credit losses	18,500			3,181			545			1,243			(500		)
Net interest income after provision for credit losses	1,021,912			245,902			161,256			129,810			96,197
Non-interest income	65,095			7,169			12,021			4,149			8,591
Non-interest expense	(482,781		)	(96,578		)	(62,276		)	(60,310		)	(51,709		)
Income (loss) before income taxes	604,226			156,493			111,001			73,649			53,079
Income tax expense (benefit)	105,055			39,124			23,310			20,621			14,862
Net income	$	499,171		$	117,369		$	87,691		$	53,028		$	38,217

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	86,594		$	13,342		$	130,299		$	52,905		$	125,467		$	(5,829	)
Provision for (recovery of) credit losses	60			57			2,844			3,790			7,280			—
Net interest income after provision for credit losses	86,534			13,285			127,455			49,115			118,187			(5,829		)
Non-interest income	367			—			14,267			—			5,269			13,262
Non-interest expense	(37,078		)	(7,617		)	(47,974		)	(9,180		)	(44,561		)	(65,498		)
Income (loss) before income taxes	49,823			5,668			93,748			39,935			78,895			(58,065		)
Income tax expense (benefit)	11,459			1,304			21,562			9,185			18,146			(54,518		)
Net income	$	38,364		$	4,364		$	72,186		$	30,750		$	60,749		$	(3,547	)

139

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2018:	(in thousands)
Net interest income	$	915,879		$	224,754		$	148,085		$	115,561		$	92,583
Provision for (recovery of) credit losses	23,000			2,235			(2,447		)	2,292			1,809
Net interest income (expense) after provision for credit losses	892,879			222,519			150,532			113,269			90,774
Non-interest income	43,116			7,689			11,326			3,800			9,932
Non-interest expense	(425,667		)	(91,161		)	(62,536		)	(57,735		)	(52,574		)
Income (loss) before income taxes	510,328			139,047			99,322			59,334			48,132
Income tax expense (benefit)	74,540			34,824			20,951			16,709			13,565
Net income	$	435,788		$	104,223		$	78,371		$	42,625		$	34,567

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	67,154		$	15,149		$	105,029		$	55,332		$	80,073		$	12,159
Provision for (recovery of) credit losses	281			(1,101		)	5,657			3,275			11,046			(47		)
Net interest income (expense) after provision for credit losses	66,873			16,250			99,372			52,057			69,027			12,206
Non-interest income	614			158			14,121			13			2,076			(6,613		)
Non-interest expense	(32,390		)	(8,120		)	(41,159		)	(9,603		)	(26,822		)	(43,567		)
Income (loss) before income taxes	35,097			8,288			72,334			42,467			44,281			(37,974		)
Income tax expense (benefit)	8,072			1,905			16,637			9,768			10,184			(58,075		)
Net income	$	27,025		$	6,383		$	55,697		$	32,699		$	34,097		$	20,101

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,118		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,108			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income	$	325,492		$	76,791		$	63,661		$	35,136		$	24,807

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,550		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,401			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income	$	16,354		$	13,053		$	32,093		$	26,471		$	23,401		$	13,725

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22. REVENUE FROM CONTRACTS WITH CUSTOMERS

ASC 606, Revenue from Contracts with Customers, requires revenue to be recognized at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. ASC 606 applies to all contracts with customers to provide goods or services in the ordinary course of business, except for contracts that are specifically excluded from its scope. The majority of the Company’s revenue streams including interest income, credit and debit card fees, income from equity investments, including warrants and SBIC equity income, income from bank owned life insurance, foreign currency income, lending related income, and gains and losses on sales of investment securities are outside the scope of ASC 606. Revenue streams including service charges and fees, interchange fees on credit and debit cards, and success fees are within the scope of ASC 606.

Disaggregation of Revenue

The following table represents a disaggregation of revenue from contracts with customers for the periods indicated along with the reportable segment for each revenue category:

			Regional Segments
	Consolidated Company		Arizona			Nevada			Southern California		Northern California
Year Ended December 31, 2019	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	23,353	$	4,781	—	$	8,131	—	$	3,012	$	3,885
Debit and credit card interchange (1)	5,839		1,151		—	1,212		—	583		2,859
Success fees (2)	1,580		—		—	—		—	—		—
Other income	288		15		—	14		—	5		65
Total revenue from contracts with customers	$	31,060	$	5,947		$	9,357		$	3,600	$	6,809
Revenues outside the scope of ASC 606 (3)	34,035		1,222			2,664			549		1,782
Total non-interest income	$	65,095	$	7,169		$	12,021		$	4,149	$	8,591

	National Business Lines
	HOA Services		Public & Nonprofit Finance		Technology & Innovation		Hotel Franchise Finance		Other NBLs		Corporate & Other
Year Ended December 31, 2019	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	329	$	—	$	3,211	$	—	$	4	$	—
Debit and credit card interchange (1)	34		—		—		—		—		—
Success fees (2)	—		—		1,580		—		—		—
Other income	3		—		4		—		171		11
Total revenue from contracts with customers	$	366	$	—	$	4,795	$	—	$	175	$	11
Revenues outside the scope of ASC 606 (3)	1		—		9,472		—		5,094		13,251
Total non-interest income	$	367	$	—	$	14,267	$	—	$	5,269	$	13,262

(1) Included as part of Card income in the Consolidated Income Statement.

(2) Included as part of Income from equity investments in the Consolidated Income Statement.

(3) Amounts are accounted for under separate guidance. Refer to discussion of revenue sources not subject to ASC 606 under the Non-interest income section in "Note 1. Summary of Significant Accounting Policies."

141

			Regional Segments
	Consolidated Company		Arizona		Nevada		Southern California		Northern California
Year Ended December 31, 2018	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	22,295	$	3,902	$	8,151	$	2,666	$	3,795
Debit and credit card interchange (1)	6,801		1,132		1,379		650		3,616
Success fees (2)	3,335		—		—		—		96
Other income	626		181		194		59		161
Total revenue from contracts with customers	$	33,057	$	5,215	$	9,724	$	3,375	$	7,668
Revenues outside the scope of ASC 606 (3)	10,059		2,474		1,602		425		2,264
Total non-interest income	$	43,116	$	7,689	$	11,326	$	3,800	$	9,932

	National Business Lines
	HOA Services		Public & Nonprofit Finance		Technology & Innovation		Hotel Franchise Finance		Other NBLs		Corporate & Other
Year Ended December 31, 2018	(in thousands)
Revenue from contracts with customers:
Service charges and fees	$	585	$	—	$	3,201	$	—	$	—	$	(5	)
Debit and credit card interchange (1)	24		—		—		—		—		—
Success fees (2)	—		—		3,239		—		—		—
Other income	4		—		—		—		1		26
Total revenue from contracts with customers	$	613	$	—	$	6,440	$	—	$	1	$	21
Revenues outside the scope of ASC 606 (3)	1		158		7,681		13		2,075		(6,634		)
Total non-interest income	$	614	$	158	$	14,121	$	13	$	2,076	$	(6,613	)

(1) Included as part of Card income in the Consolidated Income Statement.

(2) Included as part of Income from equity investments in the Consolidated Income Statement.

(3) Amounts are accounted for under separate guidance. Refer to discussion of revenue sources not subject to ASC 606 under the Non-interest income section in "Note 1. Summary of Significant Accounting Policies."

Performance Obligations

Many of the services the Company performs for its customers are ongoing, and either party may cancel at any time. The fees for these contracts are dependent upon various underlying factors, such as customer deposit balances, and as such may be considered variable. The Company’s performance obligations for these services are satisfied as the services are rendered and payment is collected on a monthly, quarterly, or semi-annual basis. Other contracts with customers are for services to be provided at a point in time, and fees are recognized at the time such services are rendered. The Company had no material unsatisfied performance obligations as of December 31, 2019. The revenue streams within the scope of ASC 606 are described in further detail below.

Service Charges and Fees

The Company performs deposit account services for its customers, which include analysis and treasury management services, use of safe deposit boxes, check upcharges, and other ancillary services. The depository arrangements the Company holds with its customers are considered day-to-day contracts with ongoing renewals and optional purchases, and as such, the contract duration does not extend beyond the services performed. Due to the short-term nature of such contracts, the Company generally recognizes revenue for deposit related fees as services are rendered. From time to time, the Company may waive certain fees for its customers. The Company considers historical experience when recognizing revenue from contracts with customers, and may reduce the transaction price to account for fee waivers or refunds.

Debit and Credit Card Interchange

When a credit or debit card issued by the Company is used to purchase goods or services from a merchant, the Company earns an interchange fee. The Company considers the merchant its customer in these transactions as the Company provides the merchant with the service of enabling the cardholder to purchase the merchant’s goods or services with increased convenience, and it enables the merchants to transact with a class of customer that may not have access to sufficient funds at the time of purchase. The Company acts as an agent to the payment network by providing nightly settlement services between the network and the merchant. This transmission of data and funds represents the Company’s performance obligation and is performed nightly. As the payment network

142

is in direct control of setting the rates and the Company is acting as an agent, the interchange fee is recorded net of expenses as the services are provided.

Success Fees

Success fees are one-time fees detailed as part of certain loan agreements and are earned immediately upon occurrence of a triggering event. Examples of triggering events include a borrower obtaining its next round of funding, an acquisition, or completion of a public offering. Success fees are variable consideration as the transaction price can vary and is contingent on the occurrence or non-occurrence of a future event. As the consideration is highly susceptible to factors outside of the Company’s influence and uncertainty about the amount of consideration is not expected to be resolved for an extended period of time, the variable consideration is constrained and is not recognized until the achievement of the triggering event.

Principal versus Agent Considerations

When more than one party is involved in providing goods or services to a customer, ASC 606 requires the Company to determine whether it is the principal or an agent in these transactions by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis, if it controls a promised good or service before transferring that good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. The Company most commonly acts as a principal and records revenue on a gross basis, except in certain circumstances. As an example, revenues earned from interchange fees, in which the Company acts as an agent, are recorded as non-interest income, net of the related expenses paid to the principal.

Contract Balances

The timing of revenue recognition may differ from the timing of cash settlements or invoicing to customers. The Company records contract liabilities, or deferred revenue, when payments from customers are received or due in advance of providing services to customers. The Company generally receives payments for its services during the period or at the time services are provided, and therefore does not have material contract liability balances at period-end. The Company records contract assets or receivables when revenue is recognized prior to receipt of cash from the customer. Accounts receivable totals $1.6 million and $1.4 million as of December 31, 2019 and December 31, 2018, respectively, and are presented in Other Assets on the Consolidated Balance Sheets.

143

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Year Ended December 31, 2019
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	315,420		$	315,608		$	302,848		$	291,168
Interest expense	43,447			49,186			48,167			43,832
Net interest income	271,973			266,422			254,681			247,336
Provision for credit losses	4,000			4,000			7,000			3,500
Net interest income after provision for credit losses	267,973			262,422			247,681			243,836
Non-interest income	16,027			19,441			14,218			15,410
Non-interest expense	(129,699		)	(125,955		)	(114,213		)	(112,914		)
Income before provision for income taxes	154,301			155,908			147,686			146,332
Income tax expense	26,236			28,533			24,750			25,536
Net income	$	128,065		$	127,375		$	122,936		$	120,796
Earnings per share:
Basic	$	1.26		$	1.25		$	1.19		$	1.16
Diluted	$	1.25		$	1.24		$	1.19		$	1.16

	Year Ended December 31, 2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	281,968		$	265,216		$	251,602		$	234,697
Interest expense	38,455			31,178			27,494			20,477
Net interest income	243,513			234,038			224,108			214,220
Provision for credit losses	6,000			6,000			5,000			6,000
Net interest income after provision for credit losses	237,513			228,038			219,108			208,220
Non-interest income	13,611			4,418			13,444			11,643
Non-interest expense	(111,129		)	(113,841		)	(102,548		)	(98,149		)
Income before provision for income taxes	139,995			118,615			130,004			121,714
Income tax expense	20,909			7,492			25,325			20,814
Net income	$	119,086		$	111,123		$	104,679		$	100,900
Earnings per share:
Basic	$	1.14		$	1.06		$	1.00		$	0.97
Diluted	$	1.13		$	1.05		$	0.99		$	0.96

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures.

As of the end of the period covered by this Annual Report on Form 10-K, an evaluation was carried out by the Company’s management, with the participation of its CEO and CFO, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e), under the Exchange Act). Based upon that evaluation, the Company’s CEO and CFO concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report. No changes were made to the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The management of WAL is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process designed under the supervision of the Company’s CEO and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with U.S. generally accepted accounting principles.

As of December 31, 2019, management assessed the effectiveness of the Company’s internal control over financial reporting based on the criteria for effective internal control over financial reporting established in “Internal Control-Integrated Framework” issued by the COSO in 2013. Based on this assessment, management determined that the Company maintained effective internal control over financial reporting as of December 31, 2019, based on those criteria.

RSM US LLP, the independent registered public accounting firm that audited the Consolidated Financial Statements of the Company included in this Annual Report on Form 10-K, has audited the effectiveness of the Company’s internal control over financial reporting as of December 31, 2019. Their report, which expresses an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2019, is included herein.

145

Report of Independent Registered Public Accounting Firm 

To the Stockholders and the Board of Directors of Western Alliance Bancorporation 

Opinion on the Internal Control Over Financial Reporting

We have audited Western Alliance Bancorporation and Subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. 

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets as of December 31, 2019 and 2018, and the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2019 of the Company and our report, dated March 2, 2020, expressed an unqualified opinion. 

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 

Definition and Limitations of Internal Control Over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ RSM US LLP

Phoenix, Arizona

March 2, 2020

146

Item 9B. Other Information

On February 25, 2020, the BOD of WAL approved the Western Alliance Bancorporation Severance and Change in Control Plan, as amended and restated effective February 25, 2020 (the “Plan”). The Plan amends and restates and replaces in its entirety the prior Western Alliance Bancorporation Change in Control Severance Plan, originally effective September 19, 2012.

Under the Plan, certain executives, including WAL’s named executive officers, who are designated by the BOD and who enter into individual participation agreements (“Executives”) are eligible to participate in the Plan and to receive severance and certain other payments under the circumstances set forth in the Plan.

The Plan generally provides that severance benefits will be paid upon (i) the termination of an Executive’s employment for unsatisfactory work performance (“Poor Performance”) that does not provide grounds for termination with Cause (as defined in the Plan), (ii) the termination of an Executive’s employment without Cause (other than a termination for Poor Performance), (iii) a retirement at or after age sixty with at least ten years of continuous service (a “Qualified Retirement”), and (iv) the termination of an Executive’s employment without Cause (other than a termination for Poor Performance) or by the Executive for Good Reason (as defined in the Plan), in either case within the twenty-four month period following a Change in Control (as defined in the Plan) (a “Change in Control Termination”).

Under the Plan, in the event of a qualifying termination of employment in any of the circumstances described above, and contingent upon the Executive’s execution of a binding release agreement and waiver of claims, the Executive will be entitled to receive accrued benefits, payable in accordance with WAL’s normal payroll practice, and the severance and other payments set forth in the Plan. Following a termination for Poor Performance, the Executive will receive a lump sum cash payment in an amount equal to nine months of the Executive’s annual base salary for the year in which the termination occurs. Following a termination without Cause (other than a termination for Poor Performance), the Executive will receive (i) a lump sum cash payment in an amount equal to one-and-a-half times the Executive’s annual base salary for the year in which the termination occurs, plus (ii) a lump sum cash payment in an amount equal to WAL’s portion of premiums paid for continuation coverage for up to twenty-four months following termination of employment pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (the “COBRA Premium Payment”). Following a Qualified Retirement, the Executive will be entitled to receive a lump sum cash payment of a pro rata amount of the Executive’s annual bonus for the year in which the Qualified Retirement occurs, based on WAL’s actual projected performance at the time of the Qualified Retirement.

Following a Change in Control Termination, the Executive will receive (i) a lump sum cash payment in an amount equal to the sum of (a) two times the Executive’s annual base salary (using the greater of the base salary for the year in which the Change in Control occurs or the year in which the termination occurs), and (b) two times the Executive’s target annual bonus (using the greater of the annual bonus for the year in which the Change in Control occurs or the year in which the termination occurs), plus (ii) a lump sum cash payment in an amount equal to the COBRA Premium Payment. In addition, upon a Change in Control, each Executive will receive any unpaid annual bonus that was earned by the Executive in the year prior to the year in which the Change in Control occurs, regardless of whether the Executive’s employment is terminated.

In order to be eligible to receive benefits under the Plan, each Executive must comply with the confidentiality, non-solicitation and non-disparagement covenants set forth in the Plan. In addition, an Executive whose employment terminates due to a Qualified Retirement or a Change in Control Termination must also comply with the non-competition covenants set forth in the Plan. If any amount or benefits to be paid or provided to an Executive under the Plan or any other arrangement would trigger the excise tax imposed on “excess parachute payments,” the Executive’s payments and benefits will be reduced to the one dollar less than the amount that would cause the payments and benefits to be subject to the excise tax, unless the Executive would be better off (on an after-tax basis) receiving all payments and benefits and paying all applicable excise and income taxes.

The foregoing description is a summary of the material terms of the Plan and related participation agreements. This summary does not purport to be complete and is qualified in its entirety by reference to the full and complete terms of the Plan and form of participation agreement, copies of which are filed as Exhibit 10.8 and Exhibit 10.13, respectively, to this Annual Report on Form 10-K and are incorporated herein by reference.

147

PART III 

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be held on June 11, 2020.

Item 11. Executive Compensation

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be held on June 11, 2020.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be held on June 11, 2020.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be held on June 11, 2020.

Item 14. Principal Accountant Fees and Services

The information required by this item is incorporated by reference from the Company’s Definitive Proxy Statement for the 2020 Annual Meeting of Stockholders to be held on June 11, 2020.

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(1) The following financial statements are incorporated by reference from Item 8 hereto:

Report of Independent Registered Public Accounting Firm	70
Consolidated Balance Sheets as of December 31, 2019 and 2018	72
Consolidated Income Statements for the three years ended December 2019, 2018, and 2017	73
Consolidated Statements of Comprehensive Income for the three years ended December 31, 2019, 2018, and 2017	75
Consolidated Statements of Stockholders’ Equity for the three years ended December 31, 2019, 2018, and 2017	76
Consolidated Statements of Cash Flows for the three years ended December 31, 2019, 2018, and 2017	77
Notes to Consolidated Financial Statements	79

(2) Financial Statement Schedules

Not applicable.

148

EXHIBITS

3.1	Amended and Restated Certificate of Incorporation of Western Alliance, effective as of May 19, 2015 (incorporated by reference to Exhibit 3.1 of Western Alliance's Form 10-K filed with the SEC on March 1, 2019).
3.2	Amended and Restated Bylaws of Western Alliance, effective as of May 19, 2015 (incorporated by reference to Exhibit 3.2 of Western Alliance's Form 8-K filed with the SEC on May 22, 2015).
3.3	Articles of Conversion, as filed with the Nevada Secretary of State on May 29, 2014 (incorporated by reference to Exhibit 3.1 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
3.4	Certificate of Conversion, as filed with the Delaware Secretary of State on May 29, 2014 (incorporated by reference to Exhibit 3.2 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
3.5	Certificate of Designation of Non-Cumulative Perpetual Preferred Stock, Series B, as filed with the Delaware Secretary of State on May 29, 2014 (incorporated by reference to Exhibit 3.4 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
4.1*	Description of Securities of the Registrant, effective as of December 31, 2019.
4.2	Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 of Western Alliance’s Form 8-K filed with the SEC on June 3, 2014).
4.3	Senior Debt Indenture, dated August 25, 2010, between Western Alliance and Wells Fargo Bank, National Association, as trustee (incorporated by reference to Exhibit 4.1 of Western Alliance’s Form 8-K filed with the SEC on August 25, 2010).
4.4	Form of Senior Debt Indenture (incorporated by reference to Exhibit 4.2 of Western Alliance's Form S-3 filed with the SEC on May 7, 2015).
4.5	Form of Subordinated Debt Indenture (incorporated by reference to Exhibit 4.3 of Western Alliance's Form S-3 filed with the SEC on May 7, 2015).
4.6	Form of 5.00% Fixed to Floating Rate Subordinated Bank Note due July 15, 2025 (incorporated by reference to Exhibit 4.1 of Western Alliance's Form 8-K filed with the SEC on July 2, 2015).
4.7	Subordinated Debt Indenture, dated June 16, 2016, between Western Alliance and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.1 of Western Alliance's Form 8-K filed with the SEC on June 16, 2016).
4.8	First Supplemental Indenture (including Form of Debenture) dated June 16, 2016 between Western Alliance and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 of Western Alliance's Form 8-K filed with the SEC on June 16, 2016).
4.9	Form of Global Debenture dated June 16, 2016 (incorporated by reference to Exhibit 4.3 of Western Alliance's Form 8-K filed with the SEC on June 16, 2016).
10.1	Western Alliance 2005 Stock Incentive Plan, as amended (incorporated by reference to Appendix G of the Registrant's definitive Proxy Statement on Schedule 14A filed with the Commission on April 2, 2014). ±
10.2	Bridge Capital Holdings 2006 Equity Incentive Plan (incorporated by reference to Exhibit 4.11 of Western Alliance's Form S-8 filed with the SEC on July 2, 2015). ±
10.3	Form of BankWest Nevada Corporation Incentive Stock Option Plan Agreement (incorporated by reference to Exhibit 10.3 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.4	Form of Western Alliance Incentive Stock Option Plan Agreement (incorporated by reference to Exhibit 10.4 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.5	Form of Western Alliance 2002 Stock Option Plan Agreement (incorporated by reference to Exhibit 10.5 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.6	Form of Western Alliance 2002 Stock Option Plan Agreement (with double trigger acceleration clause) (incorporated by reference to Exhibit 10.6 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.7	Form of Non-Competition Agreement (incorporated by reference to Exhibit 10.8 of Western Alliance’s Registration Statement on Form S-1 filed with the SEC on April 28, 2005). ±
10.8*	Western Alliance Severance and Change in Control Plan. ±
10.9	Form of Indemnification Agreement, by and between Western Alliance and each of Western Alliance's directors and executive officers (incorporated by reference to Exhibit 10.10 of Western Alliance's Form 10-K/A filed with the SEC on March 1, 2017). ±
10.10	Offer Letter, dated May 1, 2017, by and between Kenneth A. Vecchione and Western Alliance (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the SEC on May 5, 2017). ±

149

10.11 Employment Letter Agreement, dated February 7, 2018, by and between Barbara J. Kennedy and Western Alliance (incorporated by reference to Exhibit 10.1 of Western Alliance's Form 10-Q filed with the SEC on April 30, 2019). ±

10.12*	Separation and Release of Claims Agreement, dated November 2, 2019, by and between James Haught and Western Alliance. ±
10.13*	Form of participation agreement under the Company's Change in Control Severance Plan. ±
10.14*	Form of Performance-Based Stock Unit Agreement pursuant to the Company's 2005 Stock Incentive Plan. ±
10.15*	Form of Executive Restricted Stock Agreement pursuant to the Company's 2005 Stock Incentive Plan. ±
21.1*	List of Subsidiaries of Western Alliance.
23.1*	Consent of RSM US LLP.
24.1*	Power of Attorney (see signature page).
31.1*	CEO Certification Pursuant Rule 13a-14(a)/15d-14(a).
31.2*	CFO Certification Pursuant Rule 13a-14(a)/15d-14(a).
32**	CEO and CFO Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

* Filed herewith.

** Furnished herewith.

± Management contract or compensatory arrangement.

Stockholders may obtain copies of exhibits by writing to: Dale Gibbons, Western Alliance Bancorporation, One East Washington Street Suite 1400, Phoenix, AZ 85004.

Item 16. FORM 10-K SUMMARY

Not applicable.

150

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

	WESTERN ALLIANCE BANCORPORATION
March 2, 2020	By:	/s/ Kenneth A. Vecchione
		Kenneth A. Vecchione
		Chief Executive Officer

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Kenneth A. Vecchione and Dale Gibbons, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection therewith the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully and to all intents and purposes as he or she might or could do in person hereby ratifying and confirming all that said attorneys-in-fact and agents, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant in their listed capacities on March 2, 2020.

151

Name	Title
/s/ Kenneth A. Vecchione	President and Chief Executive Officer
Kenneth A. Vecchione
/s/ Robert Sarver	Executive Chairman
Robert Sarver
/s/ Dale Gibbons	Vice Chairman and Chief Financial Officer
Dale Gibbons	(Principal Financial Officer)
/s/ J. Kelly Ardrey Jr.	Senior Vice President and Chief Accounting Officer
J. Kelly Ardrey Jr.	(Principal Accounting Officer)
/s/ Bruce D. Beach	Director
Bruce D. Beach
/s/ Howard Gould	Director
Howard Gould
/s/ Steven J. Hilton	Director
Steven J. Hilton
/s/ Marianne Boyd Johnson	Director
Marianne Boyd Johnson
/s/ Robert Latta	Director
Robert Latta
/s/ Todd Marshall	Director
Todd Marshall
/s/ Adriane C. McFetridge	Director
Adriane C. McFetridge
/s/ James Nave	Director
James Nave
/s/ Michael Patriarca	Director
Michael Patriarca
/s/ Donald D. Snyder	Director
Donald D. Snyder
/s/ Sung Won Sohn	Director
Sung Won Sohn

152

EX-4.1

Exhibit 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2019, Western Alliance Bancorporation (“Western Alliance,” “we,” “us,” “our,” or the “Company”) had two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (i) common stock, $0.0001 par value per share (the “common stock”); and (ii) 6.25% Subordinated Debentures due 2056 (the “debentures”). Each of the Company’s securities registered under Section 12 of the Exchange Act are listed on The New York Stock Exchange.

DESCRIPTION OF COMMON STOCK

The following description is a general summary of the terms of our common stock. The description below does not purport to be complete and is subject to and qualified in its entirety by reference to our certificate of incorporation and bylaws. The description herein does not contain all of the information that you may find useful or that may be important to you. You should refer to the provisions of our certificate of incorporation, bylaws, and the applicable provisions of the Delaware General Corporation Law (the “DGCL” or “Delaware Law”) because they, and not the summary, define the rights of holders of shares of our common stock.

General

Our certificate of incorporation provides the authority to issue 200,000,000 shares of common stock, par value $0.0001 per share. Each share of our common stock has the same relative rights and is identical in all respects to each other share of our common stock. Our common stock is non-withdrawable capital, is not of an insurable type and is not insured by the Federal Deposit Insurance Corporation or any other governmental entity.

Voting Rights

Holders of our common stock are entitled to one vote per share on each matter properly submitted to stockholders for their vote, including the election of directors. Holders of our common stock do not have the right to cumulate their votes for the election of directors, which means that the holders of more than 50% of the shares of common stock voting for the election of directors can elect 100% of the directors standing for election at any meeting if they choose to do so. In that event, the holders of the remaining shares voting for the election of directors will not be able to elect any person or persons to our board of directors at that meeting. Generally, in matters other than the election of directors and business combinations and other extraordinary transactions, the affirmative vote of the majority of shares present and entitled to vote on the subject matter constitutes the act of the stockholders. A nominee to our board of directors will be elected, in uncontested elections (as defined in our bylaws), if the votes cast for such nominee’s election exceed the votes cast against such nominee’s election. In all director elections other than uncontested elections, the vote standard will continue to be a plurality of votes cast, and stockholders shall not be permitted to vote against any nominee for director.

Liquidation Rights

The holders of our common stock and the holders of any class or series of stock entitled to participate with the holders of our common stock as to the distribution of assets in the event of any liquidation, dissolution or winding-up of us, whether voluntary or involuntary, will become entitled to participate equally in the distribution of any of our assets remaining after we have paid, or provided for the payment of, all of our debts and liabilities and after we have paid, or set aside for payment, to the holders of any class of stock having preference over the common stock in the event of liquidation, dissolution or winding-up, the full preferential amounts, if any, to which they are entitled.

Dividends

The holders of our common stock and any class or series of stock entitled to participate with the holders of our common stock are entitled to receive dividends declared by our board of directors out of any assets legally available for distribution. The board may declare dividends out of surplus, or if no surplus exists, out of net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year, only if the amount of capital is greater than or equal to the aggregate amount of the capital represented by the issued and outstanding stock of all classes having a preference upon the distribution of assets. The terms and conditions of other securities we issue may restrict our ability to pay dividends to holders of our common stock. In addition, as a holding company, our main source of funds to pay dividends is distributions from our subsidiaries and, therefore, our ability to pay distributions is affected by the ability of our subsidiaries to pay dividends. The ability of our bank subsidiary, and our ability, to pay dividends in the future is, and could in the future be further, influenced by bank regulatory requirements and capital guidelines.

Miscellaneous

The holders of our common stock have no preemptive or conversion rights for any shares that may be issued. Our common stock is not subject to additional calls or assessments, and all shares of our common stock currently outstanding are fully paid and non-assessable.

Anti-Takeover Effects of Provisions of our Certificate of Incorporation and Bylaws and Delaware Law

Some provisions of Delaware Law and our certificate of incorporation and bylaws contain provisions that could make it more difficult to (1) acquire us by means of a tender offer, proxy contest or otherwise or (2) remove our incumbent officers and directors. These provisions, summarized below, are intended to encourage persons seeking to acquire control of us to first negotiate with our board of directors. These provisions also serve to discourage hostile takeover practices and inadequate takeover bids.

Undesignated Preferred Stock

Our board of directors has the ability to authorize undesignated preferred stock, which allows the board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any unsolicited attempt to change control of our company. This ability may have the effect of deferring hostile takeovers or delaying changes in control or management of our company.

Special Stockholders’ Meetings and Advanced Notice Requirements for Stockholder Proposals

Our certificate of incorporation and bylaws provide that a special meeting of stockholders may be called only by our board of directors, the chairman of the board, or by our chief executive officer or president. In addition, our bylaws require advance notice procedures for stockholder proposals to be brought before an annual meeting of the stockholders, including the nomination of directors. Stockholders at an annual meeting may only consider the proposals specified in the notice of meeting or brought before the meeting by or at the direction of the board, or by a stockholder of record on the record date for the meeting who (1) is entitled to vote at the meeting, (2) has delivered a timely written notice in proper form to our secretary of the stockholder’s intention to bring such business before the meeting, (3) attends (or has a qualified representative attend) the stockholder meeting and (4) has otherwise complied with the provisions of our bylaws and applicable law. These provisions could have the effect of delaying any stockholder actions until the next stockholder meeting, even if they are favored by the holders of a majority of our outstanding voting stock.

No Action by Written Consent

Our certificate of incorporation and bylaws do not permit stockholders to act by written consent in lieu of a meeting.

Election and Removal of Directors

Our certificate of incorporation provides for the annual election of directors. Once elected, directors may be removed by the holders of a majority of shares then entitled to vote in an election of directors. In addition, our certificate of incorporation and bylaws provide that any vacancies on the board of directors may be filled only by a majority of the remaining directors.

Amendment of Certain Provisions of our Organizational Documents

Any amendment to our certificate of incorporation must be approved by our board of directors and a majority of the outstanding shares of each class of shares entitled to vote thereon at a duly called annual or special meeting; provided, that in addition to any vote of any class of shares required by law or the certificate of incorporation, the affirmative vote of holders of at least a majority of the voting power of all of the then outstanding shares of our capital stock entitled to vote generally in the election of directors, voting together as a single class, is required to amend certain of the provisions contained in the certificate of incorporation regarding stockholder actions, classification of directors, removal of directors, filling of director vacancies, bylaw amendments, limitation of liability of directors, the exclusive forum for certain litigation, and amendments to the certificate of incorporation. Our bylaws may be amended by the affirmative vote of a majority of the directors present at a meeting at which a quorum is present or by the affirmative vote of the holders of at least 66-2/3% of the voting power of all of the shares of capital stock issued and outstanding and entitled to vote in any election of directors, voting as a single class.

Business Combinations

We have not opted out of Section 203 of the DGCL, an anti-takeover law, and are therefore subject to its provisions. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a business combination, such as a merger, with a person or group owning 15% or more of the corporation’s outstanding voting stock, referred to as an “interested stockholder” under Section 203, for a period of three years following the date the person became an interested stockholder, unless (with certain exceptions) the business combination or the transaction in which the person became an interested stockholder is approved in a prescribed manner.

These and other provisions of Delaware Law and our certificate of incorporation and bylaws could have the effect of discouraging others from attempting hostile takeovers or delaying changes in control and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. Such provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions which shareholders may otherwise deem to be in their best interests.

NYSE Listing

Our common stock is listed on the New York Stock Exchange under the symbol “WAL.”

DESCRIPTION OF DEBENTURES

The following description of our 6.25% Subordinated Debentures due 2056 is a summary and does not purport to be complete. This description is qualified in its entirety by reference to the Subordinated Debt Indenture dated as of June 16, 2016, as supplemented by a First Supplemental Indenture, dated as June 16, 2016, which we collectively refer to as the “Indenture,” between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee, which we refer to as the “trustee.”

General

On June 16, 2016, we issued $175,000,000 aggregate principal amount of the debentures pursuant to the Indenture. The debentures are unsecured, subordinated debt instruments and are intended to qualify as Tier 2 Capital under the guidelines established by the Federal Reserve for bank holding companies. The debentures were issued in fully-registered book-entry form without coupons and in denominations of $25 and integral multiples of $25 in excess thereof. The debentures have a maturity date of July 1, 2056.

Holders of the debentures and the trustee have no right to accelerate the maturity of the debentures in the event we fail to pay interest or principal on the debentures, fail to perform any other obligation under the debentures or in the Indenture or default on any other securities issued by us. See “Description of Debentures-Events of Default” below.

The Indenture does not require the maintenance of any financial ratios or specified levels of net worth or liquidity. The Indenture does not contain provisions that would afford holders of debentures protection in the event of a sudden and dramatic decline in our credit quality resulting from any highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving us that may adversely affect holders. The Indenture does not restrict us in any way, now or in the future, from incurring additional indebtedness, including Senior Indebtedness (as defined below) that would rank senior in right of payment to the debentures. The debentures are not entitled to a sinking fund and cannot be redeemed at the option of the holder.

Interest Rate

Subject to applicable law, as described below, interest on the debentures accrues from and including the original issue date to, but excluding, the maturity date or earlier acceleration or redemption at an annual rate equal to 6.25%, and are payable quarterly July 1, October 1, January 1 and April 1 of each year, commencing on October 1, 2016, to the record holders at the close of business on the June 15, September 15, December 15 or March 15, as applicable (whether or not a Business Day). If the interest payment date falls on a day that is not a Business Day, interest will be paid on the next succeeding Business Day (and without any interest or other payment in respect of any such delay).

Interest payments include accrued interest from, and including, the original issue date, or, if interest has already been paid, from and including the last date in respect of which interest has been paid or duly provided for to, but excluding, the next succeeding interest payment date, the maturity date or the redemption date, as the case may be. The amount of interest payable for any interest payment period is computed on the basis of a 360-day year comprised of twelve 30-day months. The term “interest payment period” refers to the quarterly period from and including an interest payment date (or, if no interest has been paid, from and including the original issue date) to, but excluding, the next succeeding interest payment date. Interest not paid on any payment date accrues and compounds quarterly at a rate per year equal to the rate of interest on the debentures until paid. References to “interest” include interest accruing on the debentures, interest on unpaid amounts and compounded interest, as applicable.

We may choose to pay interest by making wire or other electronic funds transfers or alternatively, by mailing a check to the address of the person entitled thereto as it appears in the Security Register.

“Business day” means any day which is not a Saturday, a Sunday, a legal holiday in New York, New York or a day on which banking institutions or trust companies located in New York, New York are authorized or obligated by law to close.

Ranking

The payment of the principal of and interest on the debentures is expressly subordinated, to the extent and in the manner set forth in the Indenture, to the prior payment in full of all of our Senior Indebtedness.

“Senior Indebtedness” is defined to include principal of (and premium, if any) and interest, if any, on, and any other payment due pursuant to, any of the following:

• our obligations for money borrowed;

• indebtedness evidenced by bonds, debentures, notes or similar instruments;

• similar obligations arising from off-balance sheet guarantees and direct credit substitutes;

• reimbursement obligations with respect to letters of credit, bankers’ acceptances or similar facilities;

• obligations issued or assumed as the deferred purchase price of property or services (but excluding trade accounts payable or accrued liabilities arising in the ordinary course of business);

• capital lease obligations;

• obligations associated with derivative products including but not limited to securities contracts, foreign currency exchange contracts, swap agreements (including interest rate and foreign exchange rate swap agreements), cap agreements, floor agreements, collar agreements, interest rate agreements, foreign exchange rate agreements, options, commodity futures contracts, commodity option contracts and similar financial instruments;

• debt of others described in the preceding clauses that we have guaranteed or for which we are otherwise liable;

• any deferrals, renewals or extensions of Senior Indebtedness; and

• General Obligations (as defined below),

unless, in any case, in the instrument creating or evidencing any such indebtedness or obligation, or pursuant to which the same is outstanding, it is expressly provided that such indebtedness or obligation is not superior in right of payment to the debentures or to other debt that is pari passu with or subordinate to the debentures.

Senior Indebtedness does not include:

• indebtedness owed by us to Western Alliance Bank or other subsidiaries; or

• any indebtedness the terms of which expressly provide that such indebtedness ranks equally with, or junior to, the debentures, including guarantees of such indebtedness.

“General Obligations” are defined as all of our obligations to pay claims of general creditors, other than obligations on the debentures and our indebtedness for money borrowed ranking equally or subordinate to the debentures. Notwithstanding the foregoing, if the Federal Reserve (or other competent regulatory agency or authority) promulgates any rule or issues any interpretation that defines general creditor(s) the main purpose of which is to establish a criteria for determining whether the subordinated debt of a bank holding company is to be included in its capital, then the term “General Obligations” will mean obligations to general creditors as described in that rule or interpretation.

The term “claim” when used in the previous definition has the meaning stated in section 101(5) of Title 11 of the United States Code, as now or hereafter in effect.

In addition, the debentures are structurally subordinated to all existing and future indebtedness, liabilities and other obligations, including deposits, of our subsidiaries. Because we are a bank holding company, we rely primarily on dividends and other payments from our subsidiaries to pay interest and principal on our outstanding debt obligations and to make payments on our other securities. Regulatory rules restrict our ability to withdraw capital from Western Alliance Bank by dividends, loans or other means.

If certain events in bankruptcy, insolvency or reorganization occur, we will first pay all Senior Indebtedness, including any interest accrued after the events occur, in full before we make any payment or distribution, whether in cash, securities or other property, on account of the principal of or interest on the debentures. In such an event, we will pay or deliver directly to the holders of Senior Indebtedness, any payment or distribution otherwise payable or deliverable to holders of the debentures. We will make the payments to the holders of Senior Indebtedness according to priorities existing among those holders until we have paid all

Senior Indebtedness, including accrued interest, in full. If, notwithstanding the preceding sentence, the trustee or the holder of any debenture receives any payment or distribution before all Senior Indebtedness is paid in full, and if such fact shall, at or prior to the time of such payment or distribution, have been made known to the trustee or such holder, then such payment or distribution shall be paid over or delivered for application to the payment of all Senior Indebtedness remaining unpaid, to the extent necessary to pay all Senior Indebtedness in full, after giving effect to any concurrent payment or distribution to or for the holders of Senior Indebtedness.

If such events of bankruptcy, insolvency or reorganization occur, after we have paid in full all amounts owed on Senior Indebtedness, the holders of debentures together with the holders of any of our other obligations that rank equally with the debentures will be entitled to receive from our remaining assets any principal, premium or interest due at that time on the debentures and such other obligations before we make any payment or other distribution on account of any of our capital stock or obligations ranking junior to the debentures.

In addition, if any principal, premium or interest in respect of Senior Indebtedness is not paid within any applicable grace period (including at maturity) or any other default on Senior Indebtedness occurs and the maturity of such Senior Indebtedness is accelerated in accordance with its terms, we may not pay the principal of, or premium, if any, or interest on, the debentures or repurchase, redeem or otherwise retire any debentures, unless, in each case, the default has been cured or waived and any such acceleration has been rescinded or such Senior Indebtedness has been paid in full in cash, subject to certain exceptions as provided in the Indenture. If the debentures are declared due and payable before their stated maturity, the holders of Senior Indebtedness outstanding at the time the debentures so become due and payable shall be entitled to receive payment in full of all amounts due or to become due on or in respect of such Senior Indebtedness before the holders of the debentures are entitled to receive any payment on the debentures. If, notwithstanding the foregoing, we make any payment to the trustee or the holder of any debenture prohibited by the preceding sentences, and if such fact shall, at or prior to the time of such payment, have been made known to the trustee or such holder, such payment must be paid over and delivered to us.

Because of the subordination provisions of the Indenture, if we become insolvent, holders of Senior Indebtedness may receive more, ratably, and holders of the debentures may receive less, ratably, than our other creditors.

The debentures do not limit our or our subsidiaries’ ability to incur additional debt, including debt that ranks senior or pari passu (i) in right of payment and (ii) upon our liquidation to the debentures. The debentures are effectively subordinated to all of the existing and future indebtedness and other liabilities of our subsidiaries, including Western Alliance Bank.

Optional Redemption

We may redeem the debentures in $25 increments in whole or in part on July 1, 2021, or on any interest payment date thereafter, at a redemption price equal to 100% of the principal amount of the debentures being redeemed plus accrued and unpaid interest to, but not including, the date of redemption. If we redeem only a portion of the debentures on any date of redemption, we may subsequently redeem additional debentures.

The debentures are also redeemable by us, in whole but not in part, at a redemption price equal to 100% of the principal amount of the debentures plus accrued and unpaid interest to, but excluding, the date of redemption, upon the occurrence of the following:

(i) a “tax event,” which means the receipt by us of an opinion of independent tax counsel of nationally recognized standing to the effect that, as a result of any:

(a)    amendment to or change (including any announced prospective amendment or change) in any law or treaty, or any regulation thereunder, of the United States or any of its political subdivisions or taxing authorities,

(b)    judicial decision, administrative action, official administrative pronouncement, ruling, regulatory procedure, regulation, notice or announcement, including any notice or announcement of intent to adopt or promulgate any ruling, regulatory procedure or regulation,

(c)    amendment to or change in any official position with respect to, or any interpretation of, an administrative or judicial action or a law or regulation of the United States that differs from the previously generally accepted position or interpretation, or

(d)    threatened challenge asserted in writing in connection with an audit of our federal income tax returns or positions or a similar audit of any of our subsidiaries or a publicly known threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that are substantially similar to the debentures,

in each case, occurring, enacted or becoming publicly known on or after the date of the issuance of the debentures, there is more than an insubstantial risk that the interest payable on the debentures is not, or within 90 days of receipt of such opinion of tax counsel, will not be, deductible by us, in whole or in part, for U.S. federal income tax purposes;

(ii) a “capital event,” which means the receipt by us of an opinion of independent bank regulatory counsel to the effect that, as a result of (a) any amendment to, or change (including any announced prospective change) in, the laws or any regulations thereunder of the United States or any rules, guidelines or policies of an applicable regulatory authority for us or (b) any official administrative pronouncement or judicial decision interpreting or applying such laws or regulations, which amendment or change is effective or which pronouncement or decision is announced on or after the date of original issuance of the debentures, the debentures do not constitute, or within 90 days of the date of such opinion will not constitute, Tier 2 capital (or its then equivalent if we are subject to such capital requirement) for purposes of capital adequacy guidelines of the Federal Reserve (or any successor regulatory authority with jurisdiction over bank holding companies), as then in effect and applicable to us; or

(iii) an “investment company event,” which means us becoming required to register as an investment company pursuant to the Investment Company Act of 1940, as amended.

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of debentures to be redeemed at its registered address, provided that the notice of redemption will be given within 90 days of the effective date of a tax event, capital event or investment company event. Unless we default in payment of the redemption price on the debentures, on and after the redemption date, interest will cease to accrue on the debentures or portions called for redemption.

Under the Federal Reserve’s current risk-based capital guidelines applicable to bank holding companies, any redemption of the debentures will be subject to prior approval of the Federal Reserve.

Redemption Procedures

If we give a notice of redemption in respect of any debentures, then prior to the redemption date, we will:

• irrevocably deposit with the trustee or a paying agent for the debentures funds sufficient to pay the applicable redemption price of, and (unless the redemption date is an interest payment date) accrued interest (including compounded interest, if any) on, the debentures to be redeemed; and

• give the trustee or such paying agent, as applicable, irrevocable instructions and authority to pay the redemption price to the holders upon surrender of the global certificate or such other certificates as we may have issued evidencing the debentures.

Notwithstanding the above, interest payable on or prior to the redemption date for any debentures called for redemption will be payable to the holders of the debentures on the relevant record dates for the related interest payment dates.

Once notice of redemption has been given and funds deposited as required, then upon the date of the deposit, all rights of the holders of the debentures so called for redemption will cease, except the right of the holders of the debentures to receive the redemption price and any interest payable in respect of the debentures on or prior to the redemption date and the debentures will cease to be outstanding. In the event that any date fixed for redemption of debentures is not a business day, then payment of the redemption price will be made on the next business day (without any interest or other payment in connection with this delay) with the same force and effect as if made on the original date. In the event that payment of the redemption price in respect of debentures called for redemption is not paid by us, interest on the debentures will continue to accrue at the then applicable rate from the redemption date originally established by us for the debentures to the date the redemption price is actually paid, in which case the actual payment date will be the date fixed for redemption for purposes of calculating the redemption price.

Subject to applicable law (including, without limitation, U.S. federal securities law), we or our subsidiaries may at any time and from time to time purchase outstanding debentures by tender, in the open market or by private agreement.

If less than all of the debentures are to be redeemed, the particular debentures to be redeemed will be determined, in the case of global securities, in accordance with the procedures of the depositary and, in the case of definitive debt securities, by the trustee by such method as in its sole discretion it shall deem appropriate and fair, provided that the unredeemed portion of the principal amount of any debenture shall be in an authorized denomination (which shall not be less than the minimum authorized denomination) for such debenture. The trustee will promptly notify us in writing of the debentures selected for redemption and, in the case of any debentures selected for partial redemption, the principal amount thereof to be redeemed.

We may not redeem the debentures in part if the principal amount has been accelerated and such acceleration has not been rescinded or unless all accrued and unpaid interest, has been paid in full on all outstanding debentures for all interest payment periods terminating on or before the redemption date.

Denominations

The debentures were issued only in fully-registered book-entry form without coupons in denominations of $25 each and integral multiples of $25 in excess thereof.

Events of Default

The Indenture provides that certain events of bankruptcy, insolvency or receivership relating to us or a “principal subsidiary bank” are events of default with respect to the debentures.

The term “principal subsidiary bank” means (i) any bank subsidiary the consolidated assets of which constitute 25% or more of our consolidated assets and (ii) any other bank subsidiary designated as a “principal subsidiary bank” by our Board of Directors; provided that if the Federal Reserve notifies us that any bank subsidiary that is a principal subsidiary bank applying the tests in clause (i) or (ii) above does not qualify as a “major subsidiary depository institution” within the requirements of the Federal Reserve’s risk-based capital guidelines applicable to bank holding companies, such bank subsidiary will not be a principal subsidiary bank from and after the time we receive from the Federal Reserve such a notice. Currently, Western Alliance Bank is our only principal subsidiary bank.

The Indenture will define a default with respect to the debentures as:

• failure to pay interest on the debentures for 30 days after the payment is due,

• failure to pay the principal of or premium, if any, on the debentures when due, or

• failure to perform any other covenant or warranty in the Indenture that applies to the debentures for 90 days after we have received written notice of the failure to perform in the manner specified in the Indenture.

There is only a right of acceleration in the case of an event of default. There is no right of acceleration in the case of a default. Accordingly, payment of principal of the debentures may be accelerated only in the case of the bankruptcy or reorganization of us or any principal subsidiary bank. Notwithstanding the foregoing, in the case of a default in the payment of principal of or interest on the debentures including any compound interest, the holder of a debenture may, or, if directed by the holders of a majority in principal amount of the debentures, the trustee will, subject to the conditions set forth in the indenture, demand payment of the amount then due and payable and may institute legal proceedings for the collection of such amount if we fail to make payment thereof upon demand.

If an event of default occurs and is continuing with respect to the debentures, either the trustee or the holders of at least 25% in principal amount of the debentures may declare the principal of the debentures to be due and payable immediately. Subject to certain conditions, the holders of a majority in principal amount of the debentures may rescind such declaration.

In cases specified in the Indenture, the holders of a majority in principal amount of the debentures may waive any default on behalf of all holders of the debentures, except a default in the payment of principal or interest or a default in the performance of a covenant or provision of the Indenture which cannot be modified without the consent of each holder. We are required to file annually with the trustee a certificate as to whether or not we are in compliance with all the conditions and covenants applicable to us under the Indenture.

Within 90 days after the trustee’s knowledge of the occurrence of any default with respect to the debentures, the trustee shall transmit by mail to all holders of debentures, notice of such default unless such default shall have been cured or waived.

The holders of a majority of the aggregate outstanding principal amount of the debentures have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee with respect to the debentures.

Consolidation, Merger or Transfer of Assets

The Company may not, in a single transaction or through a series of related transactions, consolidate with or merge with or into any other Person (as defined in the Indenture), or, directly or indirectly, sell, transfer or convey all or substantially all of its properties and assets to another Person or group of affiliated Persons, unless:

• the Company shall be the continuing Person, or the Person (if other than the Company) formed by such consolidation or into which the Company is merged or to which all or substantially all of the properties and assets of the Company are sold, transferred or conveyed (the Company or such other Person being the “Surviving Person”), shall be organized and validly existing under the laws of the United States, any State thereof or the District of Columbia, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the trustee, in form satisfactory to the trustee, all the obligations of the Company under the debentures and the Indenture;

• immediately after giving effect to such transaction and the assumption of the obligations as set forth in the preceding bullet point, no event of default, default or any event that is, or after notice or passage of time or both, would be, a default or an event of default shall have occurred and be continuing; and

• the Company has delivered to the trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale, transfer or conveyance and such supplemental indenture, if any, comply with the applicable provisions of the Indenture and that all conditions precedent therein provided relating to such transaction have been satisfied.

Modification and Waiver

Without the consent of any holders, the Company and the trustee, at any time and from time to time, may amend the Indenture for any of the following purposes:

• to evidence the succession of another Person to the Company pursuant to the merger covenant described above;

• to add to the covenants of the Company for the benefit of the holders of the debentures or to surrender any right or power herein conferred upon the Company;

• to add any additional events of default or defaults;

• to secure the debentures;

• to evidence and provide for a successor trustee;

• to cure any ambiguity, or to correct or supplement any provision therein which may be defective or inconsistent with any other provision therein; or

• to make any other provisions with respect to matters or questions arising under the Indenture, provided that such action shall not adversely affect the interests of the holders of the debentures.

With the consent of the holders of not less than a majority in principal amount of the debentures (including consents obtained in connection with a tender offer or exchange offer for the debentures), the Company and the trustee may amend the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner the rights of the holders of the debentures; provided, however, that no such amendment shall, without the consent of the holder of each debenture affected thereby:

• change the stated maturity of the principal of, or any installment of principal of or interest on, any debenture, or reduce the principal amount thereof or the rate of interest or the time of payment of interest thereon or any premium payable upon the redemption thereof, or change the coin or currency in which, any debenture or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the stated maturity thereof (or, in the case of redemption, on or after the redemption date), or adversely affect any rights of the holders of the debentures to require the Company to repay, repurchase or redeem the debentures;

• reduce the percentage in principal amount of the debentures, the consent of whose holders is required for any such supplemental indenture, or the consent of whose holders is required for any waiver of compliance with certain provisions of the Indenture or certain defaults thereunder and their consequences;

• modify any of the provisions relating to approval of amendments or waivers, except to increase any such percentage; or

• change any obligation of the Company to maintain an office or agency.

Satisfaction and Discharge

We may satisfy and discharge our obligations under the debentures and the Indenture (except with respect to the registration of transfer or exchange of the debentures), if either

• all outstanding debentures have been delivered to the trustee for cancellation; or

• all outstanding debentures have become due and payable, or will become due and payable at their stated maturity within one year, or are to be called for redemption within one year and we have deposited or caused to be deposited with the trustee in trust an amount sufficient to pay and discharge the entire indebtedness on the debentures for principal and any premium and interest to the date of such deposit or to the stated maturity or redemption date, as the case may be; and

• in either case, we have complied with certain other obligations set forth in the Indenture.

Defeasance and Covenant Defeasance

Defeasance

We may terminate or “defease” our obligations under the Indenture with respect to the debentures, provided that certain conditions are met, including:

• we must irrevocably deposit in trust for the benefit of all holders, a combination of U.S. dollars or U.S. government obligations that will generate enough cash to make interest, principal and any other payments on the debentures on their applicable due dates;

• there must be a change in current federal tax law or an Internal Revenue Service (“IRS”) ruling that lets us make the above deposit without causing Holders to be taxed on the debentures any differently than if we did not make the deposit; and

• we must deliver an opinion of counsel to the trustee to the effect that the holders of the debentures will have no federal income tax consequences as a result of such deposit and termination.

If we ever fully defease the debentures, holders will have to rely solely on the trust deposit for payments on the debentures. Holders could not look to us for repayment in the unlikely event of any shortfall.

Covenant Defeasance

The “covenant defeasance” provisions of the Indenture, which would allow us to cease to comply with any restrictive covenants applicable to the debentures, are not applicable to the debentures because there are no restrictive covenants applicable to the debentures.

Governing Law

The Indenture and the debentures are governed by and construed in accordance with the laws of the State of New York. The Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended.

Listing

The debentures are listed on the New York Stock Exchange under the symbol “WALA.”

Debentures Intended to Qualify as Tier 2 Capital

The debentures are intended to qualify as Tier 2 Capital under the capital rules established by the Federal Reserve for bank holding companies that became effective January 1, 2014. The rules set forth specific criteria for instruments to qualify as Tier 2 Capital. Among other things, the debentures must:

• be unsecured;

• have a minimum original maturity of at least five years;

• be subordinated to general creditors and all senior indebtedness of the Company; that is, the debentures must be subordinated at a minimum to all borrowed money, similar obligations arising from off-balance sheet guarantees and direct credit substitutes, and obligations associated with derivative products such as interest rate and foreign exchange contracts, commodity contracts, and similar arrangements;

• not contain provisions permitting the holders of the debentures to accelerate payment of principal prior to maturity except in the event of receivership, insolvency, liquidation or similar proceedings of the Company or of a major subsidiary depository institution of the Company;

• by their terms be callable by the Company only after five years, unless there occurs (i) an event which precludes the debentures from being included in Tier 2 capital, (ii) a tax event, or (iii) the Company is required to register as an investment company pursuant to the Investment Company Act of 1940;

• not contain credit sensitive features, such as an interest rate reset, based in whole or in part, on the credit standing of the Company;

• redemption or repurchase of the debentures requires prior Federal Reserve approval; and

• not contain provisions permitting the institution to redeem or repurchase the debentures prior to the maturity date without prior approval of the Federal Reserve.

Further Issuances

We may, from time to time, without the consent of the holders of the debentures, create and issue additional notes having the same terms and conditions as the debentures that are equal in rank to the debentures offered by the prospectus supplement in all respects (or in all respects except for the issue date, the issue price and, if applicable, the first interest payment date and the initial interest accrual date). These notes will be consolidated and form a single series with the debentures, provided, however, that a separate CUSIP, common code or “ISIN,” as applicable, will be issued for any additional notes unless the additional notes and the debentures of such series offered under the prospectus supplement are fungible for U.S. federal income tax purposes.

About the Trustee

The Bank of New York Mellon Trust Company, N.A. is the trustee under the Indenture and is the principal paying agent and registrar for the debentures. We have entered, and from time to time may continue to enter, into banking or other relationships with The Bank of New York Mellon Trust Company, N.A. or its affiliates. The trustee under the Indenture may resign or be removed with respect to one or more series of debt securities under the Indenture and a successor trustee may be appointed to act with respect to such series.

EX-10.8

Exhibit 10.8

Execution Copy

WESTERN ALLIANCE BANCORPORATION

SEVERANCE AND CHANGE IN CONTROL PLAN

(As Amended and Restated Effective February 25, 2020)

(And Summary Plan Description)

ARTICLE 1. Establishment and Term of the Plan

1.1    Establishment of the Plan. The Company established the Western Alliance Bancorporation Severance and Change in Control Plan, effective September 19, 2012. The Company has amended and restated the Change in Control Severance Plan in the form of this Western Alliance Bancorporation Severance and Change in Control Plan, effective February 25, 2020 (the “Plan”). The purpose of the Plan is to provide Severance Benefits (as defined in the Plan) to certain eligible Executives of the Company and its Affiliates in accordance with the terms of the Plan. No individuals other than the Executives shall be eligible to receive Severance Benefits. Severance Benefits for the Executives will be determined exclusively under the Plan.

The Plan, as set forth herein, is an employee welfare benefit plan within the meaning of ERISA Section 3(1), and the Company intends that the Plan be administered in accordance with the applicable requirements of ERISA. This Plan document, including the information provided in Appendix A hereto and each Executive’s Participation Agreement, is also the summary plan description of the Plan.

1.2    Plan Term. The Plan originally was established as the Western Alliance Bancorporation Change in Control Severance Plan, effective September 19, 2012 (the “Original Effective Date”) with an initial expiration date of December 31, 2013 (the “InitialExpiration Date”). The Plan was automatically extended by its terms for additional one (1) year periods after the Initial Expiration Date and each subsequent anniversary of the Initial Expiration Date, until this amendment and restatement on the Effective Date. On and after the Effective Date, the Plan shall continue in effect until terminated by the Company, subject to Section 9.1 herein.

1.3    Administration. The Committee is the named fiduciary and Plan Administrator of the Plan. The Committee may appoint, as it deems necessary or advisable, an individual or committee to act as its representative in matters affecting the Plan. The Committee shall have authority to control and manage the operation and administration of the Plan, and may adopt rules and regulations it deems consistent with the terms of the Plan and necessary or advisable to administer the Plan properly and efficiently. In administering the Plan and providing Severance Benefits prior to a Change in Control, the Committee shall have discretionary authority to construe and interpret the Plan’s terms and to make factual determinations under it, including the authority to determine an individual’s eligibility for Severance Benefits, the reason for Separation from Service, and the amount of Severance Benefits payable. Prior to a Change in Control, any interpretation of the Plan made in good faith by the Committee, and any decision made in good faith on any matter within the discretion of the Committee under the Plan, will be binding on all persons, subject to review under Article 6 . In administering the Plan and providing Severance Benefits on or after a Change in Control, the Committee shall make initial determinations of entitlement to benefits and the amounts thereof in good faith and in accordance with the terms of the Plan, subject to review under Article 6. Notwithstanding anything in this Section 1.3 to the contrary, following a Change in Control, the Committee shall administer the Plan in a manner consistent with the administration of the Plan prior to such Change in Control.

ARTICLE 2.Definitions

Wherever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized:

“Affiliate” means, with respect to the Company, any company or other trade or business that directly or indirectly controls, is controlled by or is under common control with the Company within the meaning of Rule 405 of Regulation C under the Securities Act of 1933 and the regulations thereunder, as amended from time to time., including, without limitation, any Subsidiary.

“Annual Bonus” means the target incentive bonus amount set by the Committee (or Company management, if applicable) under the Western Alliance Bancorporation Annual Bonus Plan (or any similar or successor plan) for the applicable Plan Year.

“Base Salary” means, at any time, the then regular annual base rate of pay that the Company is paying the Executive as annual salary, as shown in the Company’s records. Base Salary does not include any incentive, non-cash, equity or similar compensation or award, or Employee Benefit Plan contributions made by the Company or an Affiliate (other than Employee Benefit Plan contributions made by the Company or an Affiliate pursuant to an Executive’s salary reduction election under Code Section 401(k) or 125).

“Board” means the Board of Directors of the Company.

“Cause” means, as determined by the Committee in its sole discretion and solely with respect to the Plan, the Executive’s (a) willful and continued failure to perform his or her material duties with the Company or an Affiliate, or the commission of any activities constituting a violation or breach under any Federal, state or local law or regulation applicable to the activities of the Company or an Affiliate, (b) fraud, breach of fiduciary duty, dishonesty, misappropriation or other action that causes damage to the property or business of the Company or an Affiliate, (c) repeated absences from work such that the Executive is unable to perform his or her employment or other duties in all material respects, (d) admission or conviction of, or plea of nolo contendere to, any felony, or any other crime that, in the reasonable judgment of the Board or Committee, adversely affects the Company’s or an Affiliate’s reputation or the Executive’s ability to carry out the obligations of his or her employment, (e) loss of any license or registration that is necessary for the Executive to perform his or her duties for the Company or an Affiliate, (f) failure to cooperate with the Company or an Affiliate in any internal investigation or administrative, regulatory or judicial proceeding or, (g) act or omission in violation or disregard of the Company’s or an Affiliate’s policies, including but not limited to the Company’s or an Affiliate’s harassment and discrimination policies and standards of conduct then in effect, in such a manner as to cause loss, damage or injury to the property, reputation or employees of the Company or an Affiliate.

In addition, the Executive’s employment will be deemed to have terminated for Cause if, within six (6) months after the Executive’s employment has terminated, facts and circumstances are discovered that would have justified atermination for Cause. For purposes of this Plan, no act or failure to act on the Executive’s part shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the action or omission was in the best interests of the Company or an Affiliate. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, in good faith and in the best interests of the Company.

“Change in Control” means (i) the dissolution or liquidation of the Company or a merger, consolidation, or reorganization of the Company with one or more other entities in which the Company is not the surviving entity, (ii) the consummation of a sale of all or substantially all of the assets of the Company to another person or entity, or (iii) the consummation of any transaction (including without limitation a merger or reorganization in which the Company is the surviving entity) which results in any person or entity (other than persons who are stockholders or Affiliates immediately prior to the transaction) owning fifty (50%) or more of the combined voting power of all classes of stock of the Company. Notwithstanding the foregoing, unless a majority of the individuals who constitute the Board immediately prior to the Change in Control determine otherwise, no Change in Control will be deemed to have occurred with respect to a particular Executive if the Change in Control results from actions or events in which such Executive is a participant in a capacity other than solely as an officer, employee or director of the Company.

“COBRA” means the continuation of heath care coverage requirements of Code Section 4980B as added by the Consolidated Omnibus Budget Reconciliation Act of 1985 and the regulations thereunder, as amended from time to time.

“Code” means the U.S. Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time.

“Committee” means the Compensation Committee of the Board.

“Company” means Western Alliance Bancorporation, a Delaware corporation, and any successor thereto as provided in Article 7 herein.

“Confidential Information” includes proprietary, confidential and trade secret information of the Company and its Affiliates, including but not limited to records, notes, memoranda, data, writings, research, personnel information, the database of customer accounts; customer, supplier and distributor lists; customer profiles; information regarding sales and marketing activities and strategies; trade secrets; data regarding technology, products and services; information regarding pricing, pricing techniques and procurement; financial data and forecasts regarding the Company, its Affiliates, and customers, suppliers and distributors of the Company and its Affiliates; software programs and intellectual property, or any other information of whatever nature in the possession or control of the Company or an Affiliate, that has not been published or disclosed to the general public

or the financial industry, provided that such term does not include knowledge, skills, and information that is common to the trade or profession of the Executive.

“Effective Date” means February 25, 2020, the date the Plan became effective.

“Employee Benefit Plan” has the meaning given in ERISA Section 3(3).

“ERISA” means the Employee Retirement Income Security Act of 1974 and the regulations thereunder, as amended from time to time.

“Executive” means an eligible employee of the Company or an Affiliate (i) designated by the Board by written resolution from time to time, as an Executive eligible to participate in the Plan and (ii) who has entered into a Participation Agreement, each occurring before the time of Separation from Service. No other individuals will be eligible to receive Severance Benefits.

“Good Reason” shall be deemed to exist if, and only if, on or in the twenty-four (24) months following a Change in Control and without the Executive’s express written consent, the Company or an Affiliate:

(a)    reduces the Executive’s Target Total Direct Compensation for a Plan Year by ten percent (10%) or more;

(b)    materially diminishes the Executive’s authorities, duties or responsibilities, or materially diminishes the authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a requirement that the Executive report to a corporate officer or employee instead of reporting directly to the Board, Chief Executive Officer, or President of the Company, whichever the Executive reported to immediately prior to the Change in Control;

(c)    relocates the Executive’s principal place of employment to a location that is more than thirty (30) miles from the Executive’s principal place of employment immediately prior to the Change in Control;

(d)    materially diminishes the budget over which the Executive retains authority; or

(e)    takes any other action or inaction that constitutes a material breach of any agreement under which the Executive provides services to the Company or Affiliate.

The Executive may terminate the Executive’s employment at any time for Good Reason as of a date at least thirty (30) days after the date the Executive delivers written notice of such termination to the Committee (and in no event later than twenty-four (24) months following the initial existence of the event constituting Good Reason), unless the condition constituting Good Reason is fully corrected within thirty (30) days after the Executive gives the Committee written notice thereof. The Executive must deliver to the Committee written notice of such termination, if any, within sixty (60) days of the event constituting Good Reason, setting forth in reasonable detail the specific conduct of the Company or Affiliate that constitutes Good Reason.

“Participation Agreement” means the latest participation agreement entered into by the Company and the Executive.

“Plan” means this Western Alliance Bancorporation Severance and Change in Control Plan, including the Appendices that are attached hereto and made a part hereof, together with each Executive’s Participation Agreement.

“Plan Year” means the 12-month period that begins each January 1 and ends on the next December 31.

“Poor Performance” means unsatisfactory work performance, documented in accordance with the procedures of the Company or an Affiliate. The Company or Affiliate may terminate the Executive’s employment at any time for Poor Performance as of a date thirty (30) days after the date the Company or Affiliate delivers written notice of such Poor Performance to the Executive, unless the conditions constituting Poor Performance are fully corrected to the satisfaction of the Company or Affiliate within thirty (30) days after the Company or Affiliate gives the Executive written notice thereof.

“Release” has the meaning given to such term in Section 3.8 herein.

“Separation from Service” with respect to the Company, has the meaning of Code Section 409A. For purposes of the Plan, and in accordance with Treasury Regulation §1.409A-1(h)(1)(ii) (or any similar or successor provisions), a Separation from Service shall be deemed to occur, without limitation, if the Company and the Executive reasonably anticipate that the level of bona fide services the Executive will perform after a certain date (whether as an employee or as an independent contractor) will permanently decrease to less than fifty percent (50%) of the average level of bona fide services provided in the immediately

preceding thirty-six (36) months. Subject to the preceding sentence, the Committee shall determine whether the Executive has incurred a Separation from Service for purposes of the Plan, which determination shall be final, binding, and conclusive. For purposes of the Plan, an Executive’s employment with the Company shall be deemed to be terminated when the Executive has a Separation from Service, and all references in the Plan to employment termination or termination of employment shall be deemed to refer to such a Separation from Service from the Company.

“Severance Benefits” has the meaning given to such term in Section 3.4 herein.

“Stock Plan” means the Company’s 2005 Stock Incentive Plan, as amended, or any other similar or successor plan that provides for award based on Company stock, adopted or maintained by the Company or an Affiliate.

“Subsidiary” means any “subsidiary corporation” of the Company within the meaning of Code Section 424(f).

“Target Total Direct Compensation” means, for any Plan Year, the sum of an Executive’s Base Salary, Annual Bonus and annual stock or other long-term incentive award for that Plan Year, each calculated at the target level specified by the Committee for that Plan Year.

ARTICLE 3. Severance Benefits

3.1    Eligibility for Severance Benefits. Subject to the conditions and limitations of the Plan and the Executive’s Participation Agreement, an Executive who experiences an Involuntary Termination or Qualified Retirement shall be entitled to receive Severance Benefits as set forth below. For purposes of the Plan, an Executive’s employment with the Company and its Affiliates shall be deemed to be terminated when the Executive has a “Separation from Service,” and all references in the Plan to “termination of employment,” “employment termination,” “Involuntary Termination” or “Qualified Retirement” will be deemed to refer to such a separation from service. Upon the Executive’s Separation from Service for any reason, the Executive will be deemed to have resigned as of the date of the Executive’s separation from service from all offices, directorships, and fiduciary positions with the Company, its Affiliates, and Employee Benefit Plans. To the extent an Executive is party to a Bridge Bank, National Association Executive Supplemental Retirement Plan Executive Agreement and has attained age fifty-five (55) prior to Executive’s Separation from Service, such Executive shall only be eligible for Severance Benefits pursuant to a termination described at Sections 3.2(c) and 3.3.

3.2    Involuntary Termination. An Executive shall be deemed to experience an Involuntary Termination upon each of the following events:

(a)A termination of employment for Poor Performance by the Company or Affiliate;

(b)A termination of employment without Cause (other than a termination for Poor Performance) by the Company or Affiliate; or

(c)If during the twenty-four (24) month period following a Change in Control (i) an Executive is terminated by the Company or Affiliate without Cause and other than for Poor Performance, or (ii) the Executive terminates his or her employment with the Company or Affiliate for Good Reason.

Notwithstanding the foregoing, if it is reasonably demonstrated by Executive that a termination of employment by the Company or Affiliate other than for Cause or Poor Performance was (x) at the request of a third party who had taken steps reasonably calculated to effect a Change in Control or (y) otherwise arose in connection with or in anticipation of a Change in Control, then for purposes of this Section, Section 3.4 and the Executive’s Participation Agreement, Executive’s termination date shall be deemed to have occurred immediately after the Change in Control.

3.3    Qualified Retirement. An Executive shall be deemed to experience a “Qualified Retirement” on the date that the Executive retires from the Company or Affiliate, so long as the Executive has attained age sixty (60) and has provided at least ten (10) years of continuous service (as defined under the Company’s Stock Plan).

3.4    Severance Benefits. Subject to the conditions and limitations of the Plan, if an Executive is deemed to experience an Involuntary Termination or a Qualified Retirement, the Company shall pay or provide to the Executive, within sixty (60) days following the date of such termination, subject to Section 3.8 of the Plan, the “Severance Benefits” set forth below:

(a)The Company shall pay or provide the Executive’s “Accrued Benefits,” which include accrued but unpaid Base Salary (based upon the annual rate in effect on the date of Separation from Service) through the date of Separation from Service, payable in accordance with the Company’s normal payroll practice; business expenses incurred

but not paid prior to the date of Separation from Service in accordance with the Company’s expense reimbursement policy; accrued but unused vacation through the date of Separation from Service; and other benefits mandated under the terms of any of the Company’s Employee Benefit Plans or programs; and

(b)The Company shall pay or provide such other payments and benefits, as set forth in the Executive’s Participation Agreement.

3.5    Indemnification and Insurance. The Company shall continue the Executive’s coverage under the directors’ and officers’ liability coverage maintained by the Company, as in effect from time to time, to the same extent as other current or former senior executive officers of the Company for a period of at least five (5) years. The Company also shall indemnify and hold the Executive harmless against expenses, including reasonable attorney’s fees judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with any proceeding arising by reason of actions taken by the Executive within the scope of his or her duties as an officer, employee, or director of the Company or any Affiliate. The Plan shall not affect any indemnification or other rights and benefits afforded to the Executive by the Company’s certificate of incorporation or by laws.

The Severance Benefits under the Plan will not be deemed compensation for purposes of any other Employee Benefit Plan of the Company or an Affiliate.

3.6    Termination for Cause or by the Executive Other Than for Good Reason. If the Executive’s employment is terminated either (a) by the Company for Cause or (b) by the Executive other than for Good Reason, the Company shall pay to the Executive the Executive’s Accrued Benefit through the date of Separation from Service, payable in accordance with the Company’s normal payroll practice. The Executive shall not receive any other benefits under the Plan.

3.7    Notice of Termination. Any termination of the Executive’s employment by the Company or Affiliate for Cause or Poor Performance or by the Executive for Good Reason shall be communicated by a written notice to the other party that (i) indicates the specific termination provision in the Plan relied upon, and (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated. Any termination of the Executive’s employment by the Executive other than for Good Reason shall be communicated in writing sixty (60) days prior to the Executive’s resignation date; provided that, the Company or Affiliate may waive such notice period in its sole discretion, in which case, the Executive’s employment shall be terminated as of the date specified by the Company.

3.8    Release. Notwithstanding anything in the Plan to the contrary, as a condition to receiving any Severance Benefits, the Executive (or, in the event of the Executive’s death or incompetence, the Executive’s designated beneficiary, surviving spouse, estate, or legal representative) shall execute a comprehensive release agreement and waiver of claims against the Company in a form substantially the same as that attached hereto as Appendix B (the “Release”). The Company shall deliver the Release to the Executive within ten (10) days of the Executive’s Separation from Service. Notwithstanding anything in the Plan or Participation Agreement to the contrary, no Severance Benefits will be provided prior to the date that both (a) the Executive has delivered an original, signed Release to the Company and (b) the revocability period (if any) has elapsed; provided that (i) any Severance Benefits that otherwise would have been provided before such date but for the fact that the Executive had not yet delivered an original, signed Release (or the revocability period had not yet elapsed) shall be made as soon as administratively practicable but not later than the sixtieth (60^th) day following the Executive’s Separation from Service; and (ii) if the Executive’s Separation from Service occurs within the sixty (60) day period preceding December 31 of any calendar year, any cash Severance Benefits shall not be paid until the Company’s first business day of the next calendar year. If the Executive does not deliver an original, signed Release to the Company within the applicable revocability period (e.g., twenty-one days or forty-five (45) days, (x) the Executive’s rights shall be limited to those made available to the Executive as if the Executive were terminated under Section 3.6 above, and (y) the Company shall have no obligation otherwise to provide the Executive any Severance Benefits, or any other monies on account of the Executive’s Separation from Service.

By accepting Severance Benefits, the Executive acknowledges and agrees that if the Executive files a lawsuit or accepts recoveries, payments or benefits based on any claims that the Executive has released under the Release, as a condition precedent for maintaining or participating in any lawsuit or claim, or accepting any recoveries, payments or benefits, the Executive shall forfeit immediately such Severance Benefits and reimburse the Company for any Severance Benefits already provided.

3.9    Golden Parachute Provisions; No Tax Gross-Up.

(a)Excess Parachute Payments. In the event that any amount or benefits made or provided to the Executive under the Plan and any other plans, programs, or agreements of the Company and its Affiliates (collectively, the “Covered Payments”), are determined to constitute a parachute payment, as such term is defined in Code Section 280G(b)(2) and would subject the Executive to an excise tax under Code Section 4999 (the “Excise Tax”), the Covered Payments shall be reduced so that the maximum amount of the Covered Payments (after reduction) shall be one dollar ($1.00) less than the amount that would cause the Covered Payments to be subject to the Excise Tax; provided, however, that the Covered Payments shall be reduced under this Section only to the extent that the after-tax value of amounts received by the Executive after application of the above reduction would exceed the after-tax value of the amounts received without application of such reduction. For this purpose, the after-tax value of an amount shall be determined taking into account all federal, state, and local income, employment, and excise taxes applicable to such amount. In making any determination as to whether the Covered Payments would be subject to an Excise Tax, consideration shall be given to whether any portion of the Covered Payments could reasonably be considered, based on the relevant facts and circumstances, including but not limited to the provisions of Article 4, to be reasonable compensation for services rendered (whether before or after the consummation of the applicable Change in Control).

(b)Procedure for Determinations. All determinations required to be made under this Section and the assumptions to be utilized in arriving at such determinations shall be made by the independent public accountants then regularly retained by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within fifteen (15) business days of the receipt of notice from the Company or the Executive that there have been Covered Payments, or such earlier time as the Company requests. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). The Company shall pay all fees and expenses of the Accounting Firm.

(c)Internal Revenue Service Claims. In the event that upon any audit of the Covered Payments by the Internal Revenue Service or by a state or local taxing authority, a change is formally determined to be required in the amount of taxes paid by the Executive, appropriate adjustments will be made under the Plan such that the net amount that is payable to the Executive after taking into account the provisions of Code Section 4999 will reflect the intent of the parties as expressed in this Section. The Executive shall notify the Company in writing of any claim by the Internal Revenue Service or other taxing authority that, if successful, would require payment of an Excise Tax or an additional Excise Tax on the Covered Payments (a “Claim”). Such notification shall be given as soon as practicable but no later than ten (10) business days after the Executive is informed in writing of such Claim and shall apprise the Company of the nature of such Claim and the date on which such Claim is requested to be paid. The Executive shall not pay such Claim prior to the expiration of the thirty (30)-day period following the date on which the Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such Claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such Claim, the Executive shall:

(i)give the Company any information reasonably requested by the Company relating to such Claim,

(ii)take such action in connection with contesting such Claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such Claim by an attorney reasonably selected by the Company,

(iii)cooperate with the Company in good faith in order effectively to contest such Claim, and

(iv)permit the Company to participate in any proceedings relating to such Claim;

provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax, additional Excise Tax, or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this paragraph (c), the Company, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such Claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or contest the Claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one (1) or more appellate courts, as the Company shall determine, provided, however, that if the Company directs the Executive to pay such Claim and sue for a refund, the Company shall advance the amount of

such payment to the Executive on an interest-free basis or, if such an advance is not permissible thereunder, pay the amount of such payment to the Executive as additional compensation, and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax, additional Excise Tax, or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or additional compensation; and further provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. The Company shall reimburse any fees and expenses provided for under this Section on or before the last day of the Executive’s taxable year following the taxable year in which the fee or expense was incurred, and in accordance with the other requirements of Code Section 409A and Treasury Regulation §1.409A-3(i)(1)(v) (or any similar or successor provisions).

(d)Refund. If, after the receipt by the Executive of an amount advanced or paid by the Company pursuant to paragraph (c), the Executive becomes entitled to receive any refund with respect to such Claim, the Executive shall (subject to the Company’s complying with the requirements of paragraph (c)) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Company pursuant to paragraph (c), a determination is made that the Executive shall not be entitled to any refund with respect to such Claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then such advance shall be forgiven and shall not be required to be repaid.

3.10    No Further Obligations. Except as provided in the Plan, the Stock Plan, or any other Employee Benefit Plan, the Company shall have no obligation to the Executive following the Executive’s Separation from Service for any reason, including any obligation for severance payments or benefits. Except as provided in the Plan, the provision of Severance Benefits shall have no effect upon the Executive’s rights under any Employee Benefit Plan, the Stock Plan, or any other employee policy or practice of the Company applicable to the Executive’s termination for any reason. If an Executive become entitled to severance benefits under any other Employee Benefit Plan or due to a reduction in force or other severance event, Severance Benefits shall not be paid or provided under this Plan to the extent such Severance Benefits duplicate the severance benefits provided under any other Employee Benefit Plan or due to a reduction in force or other severance event.

ARTICLE 4.Trade Secrets, Confidential Information, and Protective Covenants

Notwithstanding anything in the Plan to the contrary, all Severance Benefits are expressly conditioned on the Executive’s compliance with each of the provisions and protective covenants of this Article 4. In consideration for the Executive’s eligibility for Severance Benefits under the Plan, each Executive agrees to the restrictions provided for below, which will apply during and after the Executive’s Separation from Service. The nature of the Executives’ employment with and performance of services for the Company permits each Executive to have access to certain of its trade secrets and confidential and proprietary information that is, and always shall remain, the sole property of the Company. Any unauthorized disclosure or use of this information would be wrongful and would cause the Company irreparable harm. For purposes of this Article 4, each reference to the “Company” shall include the Company and its Affiliates.

4.1    Trade Secrets and Confidential Information. During the course of an Executive’s employment the Executive has acquired, and will acquire, knowledge of the Company’s Trade Secrets (as defined below) and Confidential Information. For purposes of the Plan, “Trade Secrets” are defined as information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process, that: (1) derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The Company’s Trade Secrets include, but are not limited to, the following:

(a)the names, address, and contact information of the Company’s customers or clients and prospective customers and clients, as well as any other personal or financial information relating to any customer, client, or prospect, including, without limitation, account numbers, balances, portfolios, maturity and/or expiration or renewal dates, loans, policies, investment activities, purchasing practices, financial plans, insurance, annuity policies and objectives;

(b)any information concerning the Company’s operations, including without limitation, information related to its methods, services, pricing, costs, margins and mark-ups, finances, practices, strategies, business plans, agreements, decision-making, systems, technology, policies, procedures, marketing, sales, techniques, agent information and processes;

(c)any other proprietary and/or confidential information relating to the Company’s customers, clients, employees, products, services, sales, technologies, or business affairs.

Records of the Company also constitute Confidential Information. The Executive’s obligation to maintain the confidentiality of the Company’s Records continues at all times during and after the Executive’s employment. “Records” include, but are not limited to, original, duplicated, computerized, memorized, handwritten or any other form of information, whether contained in materials provided to the Executive by the Company, or by any institution acquired by the Company, or compiled by the Executive or others in any form or manner including information in documents or electronic devices, such as software, flowcharts, graphs, spreadsheets, resource manuals, videotapes, calendars, day timers, planners, rolodexes, or telephone directories maintained in personal computers, laptop computers, personal digital assistants or any other devices. Records do not become any less confidential or proprietary to the Company because the Executive may commit some of them to memory or because the Executive may otherwise maintain them outside of the Company’s offices.

Each Executive agrees that Confidential Information of the Company is to be used by the Executive solely and exclusively for the purpose of conducting business on behalf of the Company. An Executive shall keep such Confidential Information confidential and not divulge, use or disclose this information except for that purpose. If the Executive resigns or is terminated from employment for any reason, the Executive shall immediately return to the Company all Records and Confidential Information, including information maintained by the Executive in the Executive’s office, personal electronic devices, and/or at home. Confidential Information also includes any organizational information or staffing information learned by the Executive in connection with the Executive’s employment by the Company, and the Executive shall not (i) share such information with any recruiters or any other employers, either during or subsequent to the Executive’s employment with the Company, or (ii) use or permit use of such as a means to recruit or solicit any Company Employee (as defined below) away from the Company.

4.2    Protective Covenants. Plan provisions and/or an agreement not to disclose or use the Company’s Confidential Information after the Executive’s Separation from Service would be inadequate, standing alone, to protect the Company’s legitimate business interests because some activities by a former employee who had held a position like that of an Executive would, by their nature, compromise such Confidential Information as well as the goodwill and customer relationships that the Company has paid the Executive to develop for the Company during the Executive’s employment by the Company. Activities that violate the Company’s rights in this regard, whether or not intentional, are often undetectable by the Company until it is too late to obtain any effective remedy, and such activities will cause irreparable injury to the Company. To prevent this kind of irreparable harm, in consideration for the Executive’s eligibility for Severance Benefits under the Plan, each the Executive shall abide by the following Protective Covenants set forth below:

(a)No Conflicting Business Activities. During the Executive’s employment with the Company and for a period of twelve (12) months following the Executive’s Separation from Service under Section 3.2(c) or due to Qualified Retirement, the Executive shall not provide services to a Competitor (as defined below) in any role or position (as an employee, consultant, owner, or otherwise) that would involve Conflicting Business Activities (as defined below); provided that, while an Executive is a resident of the state of California and subject to the laws of the state of California, the restriction in this paragraph (a) will apply only to Conflicting Business Activities that result in unauthorized use or disclosure of the Company’s Confidential Information or Trade Secrets;

(b)No Solicitation of Clients, Customers, or Prospective Clients or Customers. During the Executive’s employment with the Company and for a period of twelve (12) months following the Executive’s Separation from Service for any reason, the Executive shall not (in person or through assistance to others) solicit, participate in, or promote the solicitation of or communication with, any clients, customers, or prospective clients or customer of the Company in association with or pursuit of a Competing Line of Business (as defined below) if the Executive either had business-related contact with that client, customer, or prospective client or customer or received Confidential Information about that client, customer or prospective client or customer in the last two (2) years of the Executive’s employment at the Company; provided that, while the Executive is a resident of the state of California and subject to the laws of the state of California, the restriction in this paragraph (b) will apply only to solicitations or communications made with the assistance of the Company’s Confidential Information or Trade Secrets;

(c)No Solicitation of the Company Employees. During the Executive’s employment with the Company and for a period of twelve (12) months following the Executive’s Separation from Service for any reason, the Executive will not (in person or through assistance to others) participate in soliciting, recruiting, or communicating with a Company Employee for the purpose of persuading or helping the Company Employee to end or reduce his or her employment or other relationship with the Company if the Executive either worked with that the Company Employee or received Confidential Information or Trade Secrets about that Company Employee in the last two (2) years of the Executive’s employment with the Company;

(d)No Solicitation of the Company Suppliers During the Executive’s employment with the Company and for a period of twelve (12) months following the Executive’s Separation from Service for any reason, the Executive will not (in person or through assistance to others) participate in soliciting or communicating with a Company Supplier (as defined below) for the purpose of persuading or helping the Company Supplier to end or modify to the Company’s detriment an existing business relationship with the Company if the Executive either worked with that Company Supplier or received Confidential Information or Trade Secrets about that Company Supplier in the last two (2) years of the Executive’s employment with the Company; and

(e)Non-Disparagement. During the Executive’s employment with the Company and following the Executive’s Separation from Service for any reason, the Executive will not, directly or indirectly, make any statements, written or verbal, or cause or encourage others to make any statements, written or verbal, that defame, disparage or in any way criticize the personal or business reputation, practices, or conduct of the Company, its employees, directors, or officers. This prohibition extends to statements, written or verbal, made to anyone, including but not limited to the news media, investors, potential investors, any board of directors, industry analysts, competitors, strategic partners, vendors, employees (past and present), clients, and customers.

As used in this Section 4.2, “Competitor” means an individual, corporation, other business entity or separately operated business unit of an entity that engages in a Competing Line of Business. “Competing Line of Business” means a business that involves a product or service offered by anyone other than the Company that would replace or compete with any product or service offered or to be offered by the Company with which the Executive had involvement or substantial knowledgewhile employed by the Company (unless the Company and its subsidiaries are no longer engaged in or planning to engage in that line of business). “Conflicting Business Activities” means job duties or other business-related activities in the states of Arizona, California or Nevada, or management or supervision of such job duties or business-related activities, if such job duties or business-related activities are the same as or similar to the job duties or business-related activities in which the Executive participated or as to which the Executive received Confidential Information or Trade Secrets in the last two (2) years of the Executive’s employment with the Company. “Company Employee” means an individual employed by or retained as a consultant or contractor to the Company. “Company Supplier” means an individual, corporation, other business entity or separately operated business unit of an entity that regularly provides goods or services to the Company.

This Section 4.2 is not intended to limit the Company’s right to prevent misappropriation of its Confidential Information, Records, or Trade Secrets beyond the twelve (12) month period.

4.3    Enforcement. The payment or provision of Severance Benefits is subject to and contingent upon the Executive’s adherence to the covenants of this Article 4. The Executives agree to the covenants of this Article 4 to avoid any future dispute between an Executive and the Company regarding specific restrictions on an Executive’s post-employment conduct that will be reasonable, necessary, and enforceable to protect the Company’s Confidential Information and other legitimate business interests. The Protective Covenants are ancillary to the other terms of this Plan and the Executive’s employment relationship with the Company. The Plan and these covenants benefit both the Executive and the Company because, among other things, they provide finality and predictability for both the Executive and the Company regarding enforceable boundaries on the Executive’s future conduct. Accordingly, the Executive agrees that the Plan and the restrictions in it should be enforced under common law rules favoring the enforcement of such agreements. For these reasons, an Executive may not pursue any legal action to set aside or avoid application of the Protective Covenants.

4.4    Notice of Post-Employment Activities. If an Executive accepts a position with a Competitor at any time within twelve (12) months following the Executive’s Separation from Service, the Executive will promptly give written notice to the Company’s senior Human Resources officer, with a copy to the Company’s General Counsel, and will provide the Company with the information it needs about the Executive’s new position to determine whether such position would likely lead to a violation of this Article 4 (except that the Executive need not provide any information that would include the Competitor’s trade secrets).

4.5    Remedies; Extension. In the event of a breach or threatened breach of any of the provisions or covenants contained in this Article 4, in addition to any other penalties or restrictions that may apply under any agreement, state law, or otherwise, the Executive shall forfeit and repay to the Company any and all Severance Benefits. The Company shall have the right to recapture and receive repayment of any such Severance Benefits. The forfeiture provisions of this Section 4.5 will continue to apply, in accordance with their terms, after the provisions of any agreement between the Company and the Executive have lapsed. If an Executive violates or threatens to violate any provisions or covenants of this Article 4, the Company or its successors in interest shall be entitled, in addition to any other remedies that they may

have, including money damages, to a temporary restraining order, temporary injunction, and/or permanent injunction to be issued by a court of competent jurisdiction restraining the Executive from committing or continuing any violation of this Article 4. If an Executive is found to have violated any restrictions in the Protective Covenants or breached any provision set forth in this Article 4, the time period for such provisions and covenant will be extended by one day for each day that the Executive is found to have violated them, up to a maximum extension equal to the time period originally prescribed for the provision or covenant.

4.6    Severability; Authority for Revision. The provisions of this Article 4 shall be separately construed. If any provision contained in this Article 4 is determined to be void, illegal or unenforceable by a court of competent jurisdiction, in whole or in part, then the other provisions of this Article will remain in full force and effect as if the provision so determined had not been contained herein. If the restrictions provided in this Article 4 are deemed unenforceable as written, the parties expressly authorize the court to revise, delete, or add to such restrictions to the extent necessary to enforce the intent of the parties and to protect the Company’s goodwill, Confidential Information, and other business interests. If the invalid or unenforceable provision cannot be modified, that provision shall be severed from the Plan and all other provisions of this Article 4 shall remain valid and enforceable.

ARTICLE 5.Code Section 409A

5.1    Exemption or Compliance. The Plan and Severance Benefits paid under it are intended to be exempt from or otherwise comply with Code Section 409A, including the exceptions for short-term deferrals, separation pay arrangements, reimbursements, payments upon a change in control event, and in-kind distributions, and shall be administered, construed and interpreted in accordance with such intent. Any Severance Benefits that fail to qualify for the exemptions under Code Section 409A shall be paid or provided in accordance with the requirements of Code Section 409A. Notwithstanding anything else in the Plan or an Executive’s Participation Agreement to the contrary, Severance Benefits payable due to a Change in Control that are subject to and not exempt from Code Section 409A, shall only be payable if the Change in Control meets one of the permissible payment events provided in Code Section 1.409A-3(i)(5) (or any similar or successor provisions).

5.2    Payments and Reimbursements. Each payment under the Plan or any Company benefit plan is intended to be treated as one of a series of separate payments for purposes of Code Section 409A. To the extent any reimbursements or in-kind benefit payments under the Plan are subject to Code Section 409A, such reimbursements and in-kind benefit payments will be made in accordance with Treasury Regulation §1.409A-3(i)(1)(iv) (or any similar or successor provisions).

5.3    Specified Employees. Notwithstanding anything in the Plan to the contrary, to the extent the Executive is considered a “specified employee” (as defined in Code Section 409A) and would be entitled to a payment during the six-month period beginning on the Executive’s Separation from Service that is not otherwise excluded under Code Section 409A under the exception for short-term deferrals, separation pay arrangements, reimbursements, in-kind distributions, or any otherwise applicable exemption, the payment will not be made to the Executive until the earlier of the six-month anniversary of the Executive’s Separation from Service or the Executive’s death and will be accumulated and paid on the first day of the seventh month following the Separation from Service.

5.4    Amendment. The Company may amend the Plan to the minimum extent necessary to satisfy the applicable provisions of Code Section 409A.

5.5    No Guarantee. The Company cannot guarantee that the Severance Benefits provided under the Plan will satisfy all applicable provisions of Code Section 409A.

ARTICLE 6.Claims Procedures

6.1    Claims Procedures. The Company will provide Severance Benefits without the necessity of a formal written claim by the Executive. However, if any person believes he or she is being denied any rights or benefits under the Plan, such person (or the person’s duly authorized representative) may file a claim in writing with the Committee within one (1) year following the applicable Executive’s Separation from Service. If any such claim is wholly or partially denied, the Committee will notify the claimant of its decision in writing. The notification will set forth, in a manner calculated to be understood by the claimant, the following: (a) the specific reason or reasons for the adverse determination, (b) reference to the specific Plan provisions on which the determination is based, (c) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary, and (d) a description of the Plan’s review procedures and the time limits applicable to such procedures, including

a statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. Such notification will be given within ninety (90) days after the Committee receives the claim, or within one hundred eighty (180) days, if the Committee determines that special circumstances require an extension of time for processing the claim. If the Committee determines that an extension of time for processing is required, written notice of the extension will be furnished to the claimant prior to the end of the initial 90-day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Committee expects to render a benefit determination.

6.2    Review Procedures. Within sixty (60) days after the receipt of notification of an adverse benefit determination, a claimant (or the claimant’s duly authorized representative) may file a written request with the Committee for a review of the claimant’s adverse benefit determination and submit written comments, documents, records, and other information relating to the claim for benefits. A request for review will be deemed filed as of the date of receipt of such written request by the Committee. A claimant will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits. The Committee shall take into account all comments, documents, records, and other information submitted by the claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. The Committee will notify the claimant of its decision on review in writing. Such notification will be written in a manner calculated to be understood by the claimant and will contain the following: (a) the specific reason or reasons for the adverse determination, (b) reference to the specific Plan provisions on which the benefit determination is based, (c) a statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant’s claim for benefits, and (d) a statement of the claimant’s right to bring a civil action under ERISA Section 502(a). The decision on review will be made within sixty (60) days after the request for review is received by the Committee, or within one hundred twenty (120) days if the Committee determines that special circumstances require an extension of time for processing the claim. If the Committee determines that an extension of time for processing is required, written notice of the extension will be furnished to the claimant prior to the termination of the initial 60-day period. The extension notice will indicate the special circumstances requiring an extension of time and the date by which the Plan expects to render the determination on review. The Committee’s decision on review will be final and binding on the claimant.

6.3    Legal Actions. The claims and review procedures described in this Article 6 must be utilized before a legal action may be brought against the Company or the Plan. Any legal action must be filed within one (1) year of receiving final notice of a denied claim. If the claimant believes that the Committee failed to comply with the Claims Procedures herein, the claimant may request a written explanation of the violation from the Committee, and the Committee will provide such explanation within ten (10) days, including a specific description of its basis, if any, for asserting that the violation should not cause the administrative remedies available under the Plan to be deemed exhausted. With respect to any decision or determination of the Committee that is or was made after a Change in Control, a reviewing arbitrator or court shall apply a de novo standard of review.

ARTICLE 7.Successors

7.1    Successors to the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) of fifty percent (50%) or more of the stock or assets of the Company by agreement, to expressly assume and agree to maintain the Plan in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place, subject to Section 9.1 herein. Regardless of whether such agreement is executed, the Plan will be binding upon any successor in accordance with the operation of law and such successor shall be deemed the “Company” for purposes of the Plan.

7.2    Assignment by the Executive. The Plan will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive dies while any Severance Benefits still would be owed to the Executive hereunder had the Executive continued to live, the Company will continue to provide such Severance Benefits, unless otherwise provided herein, in accordance with the terms of the Plan to the Executive’s surviving spouse. If there is no surviving spouse, the Company shall pay any remaining Severance Benefits to the legal representative of the Executive’s estate, or if none is appointed within ninety (90) days of the date of death, to the Executive’s heirs at law under the laws of the state in which the Executive is domiciled at the date of death.

7.3    Payment of Benefits in Case of Incompetency. If an Executive entitled to Severance Benefits becomes physically or mentally incapable of receiving or acknowledging such Severance Benefits, the Company upon receipt of

satisfactory evidence of such legal incapacity may, in its sole discretion, cause such Severance Benefits to be paid or provided to the Executive’s estate or legal representative.

ARTICLE 8.Miscellaneous

8.1    Employment Status. The Plan is not a contract of employment, and eligibility under the Plan does not give the Executive the right to be rehired or retained in the employ of the Company on a full-time, part-time or any other basis, or to receive any benefit under any other plan of the Company. Eligibility under the Plan does not give the Executive any right, claim, or legal entitlement to any Severance Benefits, unless that right or claim has specifically accrued under the terms of the Plan.

8.2    Effect of Receiving Severance Benefits. An Executive’s receipt of Severance Benefits does not constitute any sort of extension or perpetuation of employment beyond the Executive’s actual date of Separation from Service.

8.3    Ethical Standards. By accepting Severance Benefits, the Executive acknowledges and agrees that the Executive has been given an adequate opportunity to advise the Company’s human resources, legal, or other relevant management division, and has so advised such division in writing, of any facts of which the Executive is aware that constitute or might constitute a violation of any ethical, legal, or contractual standards or obligations of the Company or any Affiliate, including, but not limited to federal securities laws. The Executive further acknowledges and agrees that the Executive is not aware of any existing or threatened claims, charges, or lawsuits that the Executive has not disclosed to the Company.

8.4    Interests Not Transferable. The interests of persons entitled to Severance Benefits are not subject to their debts or other obligations and, except as may be required by the tax withholding provisions of the Code or any state’s income tax act, or pursuant to an agreement between the Executive and the Company, may not be voluntarily sold, transferred, alienated, assigned, or encumbered.

8.5    Entire Plan. The Plan contains the entire understanding of the Company and the Executive with respect to the subject matter herein. The Severance Benefits shall be in lieu of and reduced by any severance, notice, termination pay or the like that may be payable under any plan or practice of the Company, other than the Bridge Bank, National Association Executive Supplemental Retirement Plan Executive Agreement, or that may be payable by any Federal, state, local, or foreign law, statute, regulation, ordinance, or the like (including the WARN Act or any similar state or foreign law). Any Severance Benefits will be offset against any severance, notice, or termination pay required to be paid by the Company or its Affiliates pursuant to federal, state, or local law or ordinance.

8.6    Conflicting Plans. The Plan supersedes any other generally applicable severance-related plan or policy of the Company in effect on the date the Company adopts the Plan. Payments or benefits provided to an Executive under any Employee Benefit Plan are governed solely by the terms of that plan. Any obligations or duties of an Executive pursuant to any separate non-competition or other agreement with the Company will be governed solely by the terms of that agreement, and will not be affected by the terms of the Plan, except to the extent that agreement expressly provides otherwise. Severance Benefits are not taken into account for purposes of contributions or benefits under any other Employee Benefit Plans, except as expressly provided therein. Further, the period of coverage under any Employee Benefit Plan is not extended due to the provision of Severance Benefits, except as otherwise provided in an Executive’s Participation Agreement. For the avoidance of doubt, (i) in no event shall an Executive be eligible to receive Severance Benefits and additional severance payments or benefits in any amount or of any kind under a separate employment or severance arrangement with the Company or any Affiliate, and (ii) this Plan shall not supersede the provisions of any equity award agreement between an Executive and the Company or any Affiliate.

8.7    Notices. All notices, requests, demands, and other communications hereunder shall be sufficient if in writing and shall be deemed to have been duly given if delivered by hand, or if sent by registered or certified mail or nationally-recognized overnight carrier to the Executive at the last address the Executive has filed in writing with the Company or, in the case of the Company, at its principal offices, with attention to the “Compensation Committee of the Board of Directors of Western Alliance Bancorporation” with a copy to the attention of the Company’s General Counsel.

8.8    Tax Withholding. The Company shall withhold from any Severance Benefits all Federal, state, city, or other taxes as legally required to be withheld, as well as any other amounts authorized or required by policy, including, but not limited to, withholding for garnishments and judgments or other court orders.

8.9    Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Plan, and the Plan must be construed and enforced as if the illegal

or invalid provision had not been included. Further, the captions of the Plan are not part of the provisions herein and will have no force or effect.

8.10    Gender and Number. Except where otherwise indicated by the context, any masculine term used herein includes the feminine, the plural includes the singular and the singular includes the plural.

8.11    Applicable Law. To the extent not preempted by the laws of the United States, the laws of the State of Arizona will be the controlling law in all matters relating to the Plan without giving effect to principles of conflicts of laws. The jurisdiction and venue for any disputes arising under, or any action brought to enforce, or otherwise relating to, the Plan will be exclusively in the courts in State of Arizona, Maricopa County, including the Federal Courts located therein (should Federal jurisdiction exist).

8.12    Action by Company. Any action required of or permitted to be taken by the Company under the Plan must be by written resolution of the Board, by written resolution of a duly authorized committee of the Board, by a person or persons authorized by resolutions of the Board, or a by duly authorized committee.

8.13    Plan Funding. The Company will provide all Severance Benefits due and owing directly out of its general assets. To the extent that an Executive acquires a right to receive Severance Benefits, such right shall be no greater than the right of an unsecured general creditor of the Company. Nothing herein contained may require or be deemed to require, or prohibit or be deemed to prohibit, the Company to segregate, earmark, or otherwise set aside any funds or other assets, in trust or otherwise, to provide for any Severance Benefits.

8.14    Contravening Law or Order. Notwithstanding anything in the Plan to the contrary, the Company shall have no obligation to provide any Severance Benefits to the Executive hereunder to the extent, but only to the extent, that such provision is prohibited by the terms of any law or final order of a Federal, state, or local court or regulatory agency of competent jurisdiction, provided that such an order shall not affect, impair, or invalidate any provision of the Plan not expressly subject to such order.

8.15    Compensation Recovery Policy. Severance Benefit under the Plan may be subject to any Compensation Recovery Policy established by the Company and amended from time to time.

8.16    Full Settlement; No Mitigation. The Company’s obligation to pay or provide Severance Benefits under the Plan and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that the Company or an Affiliate may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Plan, and such amounts shall not be reduced whether or not the Executive obtains other employment.

8.17    Indemnification. Each person who is or has been a member of the Committee, and any individual or individuals to whom the Company has delegated authority under Section 1.3 herein, shall be indemnified and held harmless by the Company from and against any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or as a result of any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken, or failure to act, under the Plan. Each such person also will be indemnified and held harmless by the Company from and against any and all amounts paid by him or her in a settlement approved by the Company, or paid by him or her in satisfaction of any judgment, of or in a claim, action, suit or proceeding against him or her and described in the previous sentence, so long as he or she gives the Company an opportunity, at its own expense, to handle and defend the claim, action, suit or proceeding before he or she undertakes to handle and defend it. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which a person may be entitled under the Company’s Articles of Incorporation or By-Laws, as a matter of law, or otherwise, or any power that the Company may have to indemnify him or her or hold him or her harmless.

8.18    No Limitations on Company. Nothing in the Plan shall affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets.

8.19    No Reinstatement. By accepting Severance Benefits, the Executive waives any reinstatement or future employment with the Company and agrees never to apply for employment or otherwise seek to be hired, rehired, employed, reemployed, or reinstated by the Company.

8.20    Days. All references in the Plan to days shall mean calendar days, unless otherwise specifically noted to the contrary.

ARTICLE 9.Amendment and Termination

9.1    Amendment and Termination. The Company reserves the right, on a case-by-case basis or on a general basis, to amend the Plan at any time and to thereby alter, reduce or eliminate any benefit under the Plan, in whole or in part, at any time, provided that:

(a)No amendment or termination of the Plan that has the effect of (i) removing an Executive from the list of Executives the Board has designated by written resolution as eligible to participate in the Plan and who have entered into Participation Agreements, (ii) eliminating or reducing the amount of Severance Benefits payable (if any) to any Executive, or (iii) adversely affecting the benefits or rights of an Executive under the Plan, may be, without the express written consent of such Executive, retroactive or effective until the date that is twenty-four (24) months after the later of (A) the date the Committee adopts such amendment or termination or (B) the date the Committee or the Company provides written notice of such amendment or termination to the affected Executive(s), (with the later of such dates referred to herein as the “Amendment EffectiveDate”); provided that any such amendment or termination shall not eliminate or reduce any benefit with respect to any Change in Control that occurs on or before the Amendment Effective Date; and

(b)If a Change in Control occurs before the Amendment Effective Date, then the effective date of an amendment described in Section 9.1(a) or termination of the Plan shall be postponed as to the affected Executive(s) until the date that is twenty-four (24) months after the Change in Control occurs.

(c)By way of illustration of the protective provisions of this Section 9.1 and for the avoidance of doubt, if the Company removed Executive A from the list of Executives eligible to participate in the Plan (and gave Executive A notice of such removal) on January 1, 2021, a Change in Control occurred on December 1, 2021, and the Company (or its successor) terminated Executive A without Cause on March 1, 2022, Executive A would be entitled to Severance Benefits under the Plan under the terms and conditions of the Plan in effect immediately prior to January 1, 2021.

9.2    Notice of Amendment or Termination. The Committee or the Company will notify the Executives, including, but not limited to, Executives receiving Severance Benefits, of any material amendment or termination of the Plan within a reasonable time.

Appendix A

Additional Information for Summary Plan Description

This Appendix A, together with the Plan document, constitutes the summary plan description of the Plan. References in this Appendix A to “you” or “your” are references to the Executive. Any term capitalized but not defined in this Appendix A will have the meaning set forth in the Plan.

Your Rights Under ERISA

As a participant in the Plan, you are entitled to certain rights and protections under ERISA. ERISA provides that all Plan participants shall be entitled to:

• Receive information about the Plan and benefits offered under the Plan.

• Examine, without charge, at the Plan Administrator’s office and at other specified locations, all documents governing the Plan, and a copy of the latest annual report filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefit Security Administration.

• Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, and copies of the latest annual report and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies.

Prudent Action by Plan Fiduciaries

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including the Company, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from exercising your rights under ERISA.

Enforce Your Rights

If your claim for a benefit is denied in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or Federal court. If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance With Your Questions

If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You also may obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

General Plan Information

Plan Sponsor	Western Alliance Bancorporation One E. Washington Street, Suite 1400 Phoenix, AZ 85004
Plan Name	Western Alliance Bancorporation Severance and Change in Control Plan
Type of Plan	Welfare benefit plan
Source of Funds	The Company will pay all benefits due and owing under the Plan directly out of its general assets. To the extent that an Executive acquires a right to receive benefits under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company.
Plan Number	503
Company’s Employer Identification Number	88-0365922
Plan Administrator	The Compensation Committee of the Board of Directors of Western Alliance Bancorporation One E. Washington Street, Suite 1400 Phoenix, AZ 85004 Attn: Barbara Kennedy, CHRO (602) 389-3500
Agent for Service of Legal Process	Plan Administrator
Plan Year	Calendar Year (January 1 - December 31)
Successors	The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation, acquisition of property or stock, liquidation, or otherwise) of all or a significant portion of the stock or assets of the Company by agreement, to expressly assume and agree to maintain the Plan in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. Regardless of whether such agreement is executed, the Plan will be binding upon any successor in accordance with the operation of law and such successor shall be deemed the “Company” for purposes of the Plan.
Controlling Law	Arizona, to the extent not preempted by Federal law

Appendix B

EXECUTIVE SEPARATION AND RELEASE OF CLAIMS AGREEMENT

This Separation and Release of Claims Agreement (“Agreement”) is entered into by and between Western Alliance Bank, an Arizona corporation (the “Employer”), Western Alliance Bancorporation, a Delaware corporation (“WAL”), their subsidiaries and other corporate affiliates and each of their respective employees, officers, directors, owners, shareholders and agents (collectively referred to herein as the “Employer Group”), and [INSERT NAME] (the “Employee”) (the Employer Group and the Employee are collectively referred to herein as the “Parties”).

1. Eligibility for Severance Benefits. On or about [INSERT DATE], Employee was informed that he/she was eligible to participate in the Western Alliance Bancorporation Severance and Change in Control Plan (“Plan”), and receive certain severance pay and benefits that would not otherwise be due to Employee, which he/she agrees are specific and sufficient consideration in exchange for execution of this Agreement. Capitalized terms used but not defined herein have the meanings assigned to them in the Plan.

2. Eligibility Information. Employee has been informed that this Plan is available to designated executive officers of WAL and its affiliates (“Executives”), who are not party to an employment contract or agreement and are not covered by any other severance or separation pay plan or arrangement, and who are eligible solely for the benefits provided under the Plan and under the Executive’s participation agreement to which the Executive and the Employer Group are party. Employee understands that an Executive who does not experience an Involuntary Termination or Qualified Retirement under the Plan is not eligible for the Severance Benefits under the Plan. Additional information required by the Older Worker Benefit Protection Act will be provided as “Exhibit A” to this Agreement at the time of termination of employment.

3. Separation Date. The Employee’s last day of employment with the Employer is [INSERT DATE], (the “Separation Date”). After the Separation Date, the Employee will not represent himself/herself as being an employee, officer, attorney, agent or representative of the Employer Group for any purpose. Except as otherwise set forth in this Agreement, the Separation Date will be the employment termination date for the Employee for all purposes, meaning the Employee will no longer be entitled to any further compensation, monies, or other benefits as an employee of the Employer Group, including coverage under any benefits plans or programs sponsored by the Employer Group. Notwithstanding the foregoing, the Employee will be eligible for continuation of health insurance pursuant to COBRA.

4. Return of Property. By the Separation Date, the Employee must return all Employer property, including identification cards or badges, access codes or devices, keys, laptops, computers, telephones, mobile phones, hand-held electronic devices, credit cards, electronically stored documents or files, physical files and any other Employer property in the Employee’s possession.

5. Employee Representations. The Employee specifically represents, warrants and confirms that: (a) he/she has no claims, complaints or actions of any kind filed against the Employer Group with any court of law, or local, state or federal government or agency; and (b) he/she has been properly paid for all hours worked for the Employer, and that all commissions, bonuses and other compensation due to him/her has been paid, with the exception of his/her final payroll check for his/her salary and any other unpaid compensation through and including the Separation Date, which will be paid on the Separation Date. Any vested benefits under any of the Employer Group’s employee benefit plans are excluded and shall be governed by the terms of the applicable plan documents and award agreements. The Employee specifically represents, warrants and confirms that he/she has not engaged in, and is not aware of, any unlawful conduct in relation to the business of the Employer Group. If any of these statements are not true, the Employee cannot sign this Agreement and must notify the Employer immediately, in writing, of the statements that are not true. Such notice will not automatically disqualify the Employee from receiving these benefits, but will require the Employer Group’s review and consideration.

6. General Release and Waiver of Claims. In exchange for the consideration provided in this Agreement, the Employee and his/her heirs, executors, representatives, agents, insurers, administrators, successors and assigns (collectively, the “Releasors”) irrevocably and unconditionally fully and forever waive, release and discharge the Employer Group, including the Employer’s parents, subsidiaries, affiliates, predecessors, successors and assigns, and all of their respective officers, directors, employees, and shareholders, in their corporate and individual capacities (collectively, the “Releasees”) from any and all claims, demands, actions, causes of actions, obligations, judgments, rights, fees, damages, debts, obligations, liabilities and expenses (inclusive of attorneys’ fees) of any kind whatsoever (collectively, “Claims”), whether known or unknown, from the beginning of time to the date of the Employee’s execution of this Agreement, including,

without limitation, any claims under any federal, state, local or foreign law, that Releasors may have, have ever had or may in the future have arising out of, or in any way related to the Employee’s hire, benefits, employment, termination or separation from employment with the Employer and any actual or alleged act, omission, transaction, practice, conduct, occurrence or other matter, including, but not limited to (i) any and all claims under Title VII of the Civil Rights Act, as amended, the Americans with Disabilities Act, as amended, the Family and Medical Leave Act, as amended, with respect to existing but not prospective claims, the Equal Pay Act, as amended, the Employee Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights Act of 1991, as amended, Section 1981 of U.S.C. Title 42, the Worker Adjustment and Retraining Notification Act, as amended, the Age Discrimination in Employment Act (“ADEA”), as amended, the Uniform Services Employment and Reemployment Rights Act, as amended, the Genetic Information Nondiscrimination Act of 2008, and any claims arising under the Arizona Civil Rights Act, Arizona Employment Protection Act, Arizona Medical Marijuana Act, and amendments to those laws to the extent that such Claims may be legally waived and released, as well as any claims under local statutes and ordinances that may be legally waived and released, and/or any other Federal, state, local, or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; (ii) any and all claims for compensation of any type whatsoever, including but not limited to claims for salary, wages, bonuses, commissions, incentive compensation, vacation and/or severance; (iii) any and all claims arising under tort, contract and/or quasi-contract law, including, but not limited to, claims of breach of an expressed or implied contract, tortious interference with contract or prospective business advantage, breach of the covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm, wrongful or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment, negligent or intentional infliction of emotional distress; and (iv) any and all claims for monetary or equitable relief, including, but not limited, to attorneys’ fees, back pay, front pay, reinstatement, experts’ fees, medical fees or expenses, costs and disbursements.

7. Right to Participate In Agency Proceedings/Covenant Not to Sue. Nothing in this Agreement is intended to limit or impair in any way Employee’s right to participate in any manner in any charge or complaint, or any investigation of a charge or complaint by any local, state, or federal agency, including the Equal Employment Opportunity Commission (“EEOC”), the National Labor Relations Board, the Occupational Safety and Health Administration, and the Securities and Exchange Commission (“SEC”). This includes providing documents or other information, without notice to Employer. Employee waives any claim or right to receive damages or compensation on the basis of any such charge, complaint, or investigation; provided, however, that nothing herein shall be construed to waive or limit Employee’s ability to receive any bounty or award for information provided to the SEC concerning suspected violations of law. This release does not waive any rights to unemployment or any rights that may not be released by private agreement. Employee also understands that Employee is not releasing or giving up any claims for any events or actions that happen after Employee executes this Agreement.

Employee agrees, however, that he/she will not pursue the charges, and will not bring a lawsuit against the Releasees asserting any of the claims released in this Agreement. Employee acknowledges and agrees that this Agreement may be pled as a complete bar to any lawsuit before any court with respect to any complaint or claim arising under any federal, state, local, or other law relating to any possible claim that existed or may have existed as a result of his/her employment or termination with Employer. This Agreement shall not preclude Employee from bringing a charge or suit to challenge the validity or enforceability of this Agreement under the Age Discrimination in employment Act (29 U.S.C. § 620, et seq.), as amended by the Older Workers Benefit Protection Act.

If Employee or Employee’s counsel is asked or subpoenaed or otherwise requested to testify or give evidence in any forum or form regarding this Agreement, Employee agrees to notify Employer in writing: (a) within 48 hours after receiving the subpoena or other verbal request to give evidence; or (b) before the date of Employee’s testimony, whichever is earlier. Such notice shall be in writing and delivered to Employer through its representative, Chief Human Resources Officer, Western Alliance Bank, One E. Washington, Suite 1400, Phoenix, Arizona 85004. No part of this Agreement is intended to interfere with any function of the EEOC or any other comparable agency.

8. Knowing and Voluntary Acknowledgement. The Employee specifically agrees and acknowledges that:

(a) the Employee has read this Agreement in its entirety and understands all of its terms;

(b) the Employee has been advised of and has availed himself/herself of his/her right to consult with his/her attorney prior to executing this Agreement;

(c) the Employee knowingly, freely and voluntarily assents to all of its terms and conditions including, without limitation, the waiver, release and covenants contained herein;

(d) the Employee is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which he/she is otherwise entitled;

(e) the Employee is not waiving or releasing rights or claims that may arise after his/her execution of this Agreement;

and

(f) the Employee understands that the waiver and release in this Agreement is being requested in connection with the cessation of his/her employment with the Employer.

9. Periods for Considering and Revoking Agreement. This Agreement is intended to release and discharge any claims of Employee under the Age Discrimination in Employment Act (ADEA). To satisfy the requirements of the Older Workers Benefit Protection Act, 29 U.S.C. Section 626(f) (OWBPA), the Employee acknowledges that he/she has been given at least [twenty-one (21) or forty-five (45)] days to consider this Agreement and consult with an attorney of his/her choice. Employee agrees that, if he/she signs this Agreement before the end of the above [21-day or 45-day] period, his/her signature is intended to waive his/her right to consider the Agreement for [21 or 45] days. The Parties agree that Employee may revoke this Agreement at any time within seven days after signing the Agreement by written notice, delivered by overnight mail, to Chief Human Resources Officer, Western Alliance Bank, One E. Washington, Suite 1400, Phoenix, Arizona 85004. The Parties agree that this Agreement shall not become effective or enforceable until the seven days have passed without a revocation being received. This Agreement will be revoked in its entirety if such notice is given, and Employer will have no obligation to take any of the actions or make any payment provided by this Agreement.

This Agreement shall not become effective, until the eighth (8th) day after the Employee and the Employer execute this Agreement (“Effective Date”). Such date shall be the Effective Date of this Agreement. No payments due to the Employee under the Plan shall be made or begin before the Effective Date.

10. Confidentiality. The Employee agrees and covenants that he/she shall not disclose any of the terms of or amount paid under this Agreement or the negotiation thereof to any individual or entity; provided, however, that the Employee will not be prohibited from making disclosures to his/her attorney, tax and financial advisors and/or immediate family members, or as may be required by law.

This Section does not, in any way, restrict or impede the Employee from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order. The Employee shall promptly provide written notice of any such order to the Employer’s Chief Human Resources Officer.

11. Remedies. In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement, the Employee hereby consents and agrees that the Employer shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

If the Employee fails to abide by any of the terms of this Agreement or post-termination obligations contained herein, or if he/she revokes the ADEA release contained in Section 6 within the seven-day revocation period, the Employer may, in addition to any other remedies it may have, reclaim any amounts paid to the Employee under the provisions of the Plan or terminate any benefits or payments that are later due under the Plan, without waiving the releases provided herein.

12. Successors and Assigns. The Employer may freely assign this Agreement at any time. This Agreement shall inure to the benefit of the Employer Group and its successors and assigns. The Employee may not assign this Agreement or any part hereof. Any purported assignment by the Employee shall be null and void from the initial date of purported assignment.

13. Medicare. Employee affirms, covenants, and warrants he/she is not a Medicare beneficiary and is not currently receiving, has not received in the past, will not have received at the time of payment pursuant to this Agreement, is not entitled to, is not eligible for, and has not applied for or sought Social Security Disability or Medicare benefits. In the event any statement in the preceding sentence is incorrect (for example, but not limited to, if Employee is a Medicare beneficiary, etc.), the following sentences (i.e., the remaining sentences of this Section) apply. Employee affirms, covenants, and warrants he/she has made no claim for illness or injury against, nor is he/she aware of any facts supporting any claim against, the Releasees under which the Releasees could be liable for medical expenses incurred by the Employee before or after the execution of this agreement. Furthermore, Employee is aware of no medical expenses which Medicare has paid and for which the Releasees are or could be liable now or in the future. Employee agrees and affirms that, to the best of his/her knowledge, no liens of any governmental entities, including those for Medicare conditional payments, exist. Employee will indemnify, defend, and hold the Releasees harmless from Medicare claims, liens, damages, conditional payments, and rights to payment, if any, including attorneys’ fees, and Employee further agrees to waive any and all future private causes of action for damages pursuant to 42 U.S.C. § 1395y(b)(3)(A) et seq.

14. Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Arizona without regard to conflicts-of-law principles. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought only in any state or federal court located in the state of Arizona, county of Maricopa. The Parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

15. Entire Agreement. Unless specifically provided herein, this Agreement contains all the understandings and representations between the Employee and the Employer Group pertaining to Employee’s termination of employment with Employer and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. The Parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.

16. Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Employee and an Executive Officer of the Employer. No waiver by either of the Parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the Parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

17. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.

The Parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the Parties as embodied herein to the maximum extent permitted by law.

The Parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

18. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

19. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

20. Nonadmission. Nothing in this Agreement shall be construed as an admission of wrongdoing or liability on the part of the Employer Group.

21. Notices. All notices under this Agreement must be given in writing by overnight delivery at the addresses indicated in this Agreement or any other address designated in writing by either party.

(a) Notice to the Employer:

Chief Human Resources Officer

Western Alliance Bank

One E. Washington, Suite 1400

Phoenix, AZ 85004 

(b) Notice to the Employee will be directed to the last known address provided by Employee to Employer.

22. Acknowledgment of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE/SHE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE/SHE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS/HER CHOICE BEFORE SIGNING THIS AGREEMENT. THE EMPLOYEE FURTHER ACKNOWLEDGES THAT HIS/HER SIGNATURE BELOW IS AN AGREEMENT TO RELEASE WESTERN ALLIANCE BANK AND THE EMPLOYER GROUP FROM ANY AND ALL CLAIMS.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Date provided below.

EMPLOYEE	WESTERN ALLIANCE BANCORPORATION WESTERN ALLIANCE BANK
Signature:_______________________________ Printed Name: ___________________________ Date: __________________________________	Signature:_______________________________ Printed Name: ___________________________ Date: __________________________________ Title: ________________________________

EXHIBIT A

OLDER WORKERS BENEFIT PROTECTION ACT DISCLOSURE NOTICE

The Older Workers Benefit Protection Act (OWBPA) requires that employers provide specific information to employees who are 40 years of age or older and asked to execute a release of claims in connection with a group termination program. This document provides this information.

The class, unit, or group of individuals covered by the program includes [SPECIFIC EMPLOYEE GROUP] in the [OFFICE/DEPARTMENT/DIVISION/AREA] who will be [terminated/offered an exit incentive] [ANY TIME LIMITS APPLICABLE TO THE PROGRAM]. [SPECIFIC EMPLOYEE GROUP] in the [OFFICE/DEPARTMENT/DIVISION/AREA] are eligible for the program. [Eligibility factors include [ANY ELIGIBILITY FACTORS].] The following is a list of the ages and job titles of employees who were and were not selected for termination and offered consideration for signing a waiver:

Job Title Age No. Selected No. Not Selected

EX-10.12

Exhibit 10.12

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

This Separation and Release of Claims Agreement ("Agreement") is entered into by and between Western Alliance Bank, an Arizona corporation (the "Employer"), Western Alliance Bancorporation, a Delaware corporation ("WAL"), their subsidiaries and other corporate affiliates and each of their respective employees, officers, directors, owners, shareholders and agents ( collectively referred to herein as the "Employer Group"), and James Haught (the "Employee") (the Employer Group and the Employee are collectively referred to herein as the "Parties").

Employer informed Employee of its determination to make a leadership change in its organization, and that Employee's last day of employment with the Employer would be October 29, 2019 (the "Separation Date"). After the Separation Date, the Employee will not represent himself as being an employee, officer, attorney, agent or representative of the Employer Group for any purpose. Except as otherwise set forth in this Agreement, the Separation Date will be the employment termination date for the Employee for all purposes, meaning the Employee will no longer be entitled to any further compensation, monies, or other benefits as an employee of the Employer Group, including coverage under any benefits plans or programs sponsored by the Employer Group. Notwithstanding the foregoing, the Employee will be eligible for continuation of health insurance pursuant to COBRA.

1. Return of Property. Within 3 business days following the Separation Date, the Employee must return all Employer property, including identification cards or badges, access codes or devices, keys, laptops, computers, telephones, mobile phones, hand-held electronic devices, credit cards, electronically stored documents or files, physical files and any other Employer property in the Employee's possession.

2. Employee Representations. The Employee specifically represents, warrants and confirms that: (a) he has no claims, complaints or actions of any kind filed against the Employer Group with any court of law, or local, state or federal government or agency; and (b) he has been properly paid for all hours worked for the Employer, and that all commissions, bonuses and other compensation due to him has been paid, with the exception of his final payroll check for his salary and any other unpaid compensation through and including the Separation Date, which will be paid on the Separation Date. Any vested benefits under any of the Employer Group's employee benefit plans are excluded and shall be governed by the terms of the applicable plan documents and award agreements. The Employee specifically represents, warrants and confirms that he has not engaged in, and is not aware of, any unlawful conduct in relation to the business of the Employer Group. If any of these statements are not true, the Employee cannot sign this Agreement and must notify the Employer immediately, in writing, of the statements that are not true. Such notice will not automatically disqualify the Employee from receiving these benefits, but will require the Employer Group's review and consideration.

3. Separation Benefits. In consideration for the Employee's execution and compliance with this Agreement, including the waiver and release of claims in Section 4, the Employer agrees to provide the following benefits:

(a) A lump sum payment of $1,500,000.00 (the "Separation Payment"), less applicable employment and income tax withholdings, which shall be reported to the Employee on an IRS Form W-2. If Employee has provided the executed Agreement and this Agreement has not been revoked, Employer will send the Separation Payment to Employee within ten (10) business days after this Agreement becomes effective pursuant to Section 7.

The Employee understands, acknowledges, and agrees that these benefits stated in this Agreement exceed what he is otherwise entitled to receive, and that these benefits are in exchange for executing this Agreement. The Employee further acknowledges no entitlement to any additional payment or consideration not specifically referenced herein.

4. General Release and Waiver of Claims. In exchange for the consideration provided in this Agreement, the Employee and his heirs, executors, representatives, agents, insurers, administrators, successors and assigns ( collectively, the "Releasors") irrevocably and unconditionally fully and forever waive, release and discharge the Employer Group, including the Employer's parents, subsidiaries, affiliates, predecessors, successors and assigns, and all of their respective officers, directors, employees, and shareholders, in their corporate and individual capacities (collectively, the "Releasees") from any and all claims, demands, actions, causes of actions, obligations, judgments, rights, fees, damages, debts, obligations, liabilities and expenses (inclusive of attorneys' fees) of any kind whatsoever ( collectively, "Claims"), whether known or unknown, from the beginning of time to the date of the Employee's execution of this Agreement, including, without limitation, any claims under any federal, state, local or foreign law, that Releasors may have, have ever had or may in the future have arising out of, or in any way related to the Employee's hire, benefits, employment, termination or separation from employment with the Employer and any actual or alleged act, omission, transaction, practice, conduct, occurrence or other matter, including, but not limited to (i) any and all claims under Title VII of the Civil Rights Act, as

amended, the Americans with Disabilities Act, as amended, the Family and Medical Leave Act, as amended, with respect to existing but not prospective claims, the Equal Pay Act, as amended, the Employee Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights Act of 1991, as amended, Section 1981 of U.S.C. Title 42, the Worker Adjustment and Retraining Notification Act, as amended, the Age Discrimination in Employment Act ("ADEA''), as amended, the Uniform Services Employment and Reemployment Rights Act, as amended, the Genetic Information Nondiscrimination Act of 2008, and any claims arising under the Arizona Civil Rights Act, Arizona Employment Protection Act, Arizona Medical Marijuana Act, and amendments to those laws to the extent that such Claims may be legally waived and released, as well as any claims under local statutes and ordinances that may be legally waived and released, and/or any other Federal, state, local, or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; (ii) any and all claims for compensation of any type whatsoever, including but not limited to claims for salary, wages, bonuses, commissions, incentive compensation, vacation and/or severance; (iii) any and all claims arising under tort, contract and/or quasi-contract law, including, but not limited to, claims of breach of an expressed or implied contract, tortious interference with contract or prospective business advantage, breach of the covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal injury or sickness or any other harm, wrongful or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment, negligent or intentional infliction of emotional distress; and (iv) any and all claims for monetary or equitable relief, including, but not limited, to attorneys' fees, back pay, front pay, reinstatement, experts' fees, medical fees or expenses, costs and disbursements.

5. Right to Participate In Agency Proceedings/Covenant Not to Sue. Nothing in this Agreement is intended to limit or impair in any way Employee's right to participate in any manner in any charge or complaint, or any investigation of a charge or complaint by any local, state, or federal agency, including the Equal Employment Opportunity Commission ("EEOC"), the National Labor Relations Board, the Occupational Safety and Health Administration, and the Securities and Exchange Conm1ission ("SEC"). This includes providing documents or other info1mation, without notice to Employer. Employee waives any claim or right to receive damages or compensation on the basis of any such charge, complaint, or investigation; provided, however, that nothing herein shall be construed to waive or limit Employee's ability to receive any bounty or award for information provided to the SEC concerning suspected violations of law. This release does not waive any rights to unemployment or any rights that may not be released by private agreement. Employee also understands that Employee is not releasing or giving up any claims for any events or actions that happen after Employee executes this Agreement.

Employee agrees, however, that he will not pursue the charges, and will not bring a lawsuit against the Releasees asserting any of the claims released in this Agreement. Employee acknowledges and agrees that this Agreement may be pled as a complete bar to any lawsuit before any court with respect to any complaint or claim arising under any federal, state, local, or other law relating to any possible claim that existed or may have existed as a result of his employment or termination with Employer. This Agreement shall not preclude Employee from bringing a charge or suit to challenge the validity or enforceability of this Agreement under the Age Discrimination in employment Act (29 U.S.C. § 620, et seq.), as amended by the Older Workers Benefit Protection Act.

If Employee or Employee's counsel is asked or subpoenaed or otherwise requested to testify or give evidence in any forum or form regarding this Agreement, Employee agrees to notify Employer in writing: (a) within 48 hours after receiving the subpoena or other verbal request to give evidence; or (b) before the date of Employee's testimony, whichever is earlier. Such notice shall be in writing and delivered to Employer through its representative, Barbara Kennedy, Chief Human Resources Officer, Western Alliance Bank, One E. Washington, Suite 1400, Phoenix, Arizona 85004. No part of this Agreement is intended to interfere with any function of the EEOC or any other comparable agency.

6. Knowing and Voluntary Acknowledgment. The Employee specifically agrees and acknowledges that:

(a) the Employee has read this Agreement in its entirety and understands all of its terms;

(b) the Employee has been advised of and has availed himself of his right to consult with his attorney prior to executing this Agreement;

(c) the Employee knowingly, freely and voluntarily assents to all of its terms and conditions including, without limitation, the waiver, release and covenants contained herein;

(d) the Employee is executing this Agreement, including the waiver and release, in exchange for good and valuable consideration in addition to anything of value to which he is otherwise entitled;

(e) the Employee is not waiving or releasing rights or claims that may arise after his execution of this Agreement; and

(f) the Employee understands that the waiver and release in this Agreement is being requested in connection with the cessation of his employment with the Employer.

7. Periods for Considering and Revoking Agreement. This Agreement is intended to release and discharge any claims of Employee under the Age Discrimination in Employment Act (ADEA). To satisfy the requirements of the Older Workers Benefit Protection Act, 29 U.S.C. Section 626(f) (OWBPA), the Employee acknowledges that he has been given at least twenty-one (21) days to consider this Agreement and consult with an attorney of his choice. Employee agrees that, if he signs this Agreement before the end of the above 21-day period, his signature is intended to waive his right to consider the Agreement for 21 days. The Parties agree that Employee may revoke this Agreement at any time within 7 days after signing the Agreement by written notice, delivered by overnight mail, to Barbara Kennedy, Chief Human Resources Officer, Western Alliance Bank, One E. Washington, Suite 1400, Phoenix, Arizona 85004. The Parties agree that this Agreement shall not become effective or enforceable until the 7 days have passed without a revocation being received. This Agreement will be revoked in its entirety if such notice is given, and Employer will have no obligation to take any of the actions or make any payment provided by this Agreement.

8. Obligations Regarding Confidential Information.

(a) Acknowledgment

The Employee understands and acknowledges that by virtue of his employment with the Employer he had access to and knowledge of Confidential Information related to the business. The Employee further understands and acknowledges that the restrictive covenant below is necessary to protect the Employer's legitimate business interests in its Confidential Information. The Employee further understands and acknowledges that the Employer's ability to reserve these for the exclusive knowledge and use of the Employer is of great competitive importance and commercial value to the Employer and that the Employer would be irreparably harmed if the Employee violates the restrictive covenants below.

(b) Definition of Confidential Information

The Employee understands and acknowledges that during the course of his employment by the Employer, he has had access to and learned about confidential, secret and proprietary documents, materials and other information, in tangible and intangible form, of and relating to the Employer's business and existing and prospective customers ("Confidential Information"). The Employee further understands and acknowledges that this Confidential Information and the Employer's ability to reserve it for the exclusive knowledge and use of the Employer is of great competitive importance and commercial value to the Employer, and that improper use or disclosure of the Confidential Information by the Employee might cause the Employer to incur financial costs, loss of business advantage, liability under confidentiality agreements with third parties, civil damages and criminal penalties.

For purposes of this Agreement, Confidential Information includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, strategies, agreements, terms of agreements, transactions, potential transactions, financial information, results, credit inf 01mation, market studies, sales information, customer/client information, and customer/client lists of the Employer, or of any other person or entity that has entrusted information to the Employer in confidence.

The Employee understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.

The Employee understands and agrees that Confidential Information developed by him in the course of his employment by the Employer shall be subject to the terms and conditions of this Agreement as if the Employer furnished the same Confidential Information to the Employee in the first instance. Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to the Employee, provided that such disclosure is through no direct or indirect fault of the Employee or person( s) acting on the Employee's behalf.

(c) Disclosure and Use Restrictions

The Employee agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees of the Employer) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Employer and, in any event, not to anyone outside of the direct employ of the Employer except as required in the performance of any of the Employee's remaining authorized employment duties to the Employer or with the prior consent of an authorized officer acting on behalf of the Employer in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent); and (iii) not to access or use any Confidential lnfo1mation, and not to copy any documents, records, files, media or other resources containing any Confidential Information, or remove any such documents, records, files, media or other resources from the premises or control of the Employer, except as required in the performance of any of the Employee's remaining authorized employment duties to the Employer or with the prior consent of an authorized officer acting on behalf of the Employer in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order. The Employee shall promptly provide written notice of any such order to an authorized officer of the Employer.

The Employee understands and acknowledges that his obligations under this Agreement with regard to any particular Confidential Information shall commence immediately and shall continue during and after his employment by the Employer until such time as such Confidential Information has become public knowledge other than as a result of the Employee's breach of this Agreement or breach by those acting in concert with the Employee or on the Employee's behalf.

9. Cooperation. The Parties agree that for a limited time following Employee's Separation Date the Employer may require information on certain matters for which the Employee was responsible or was involved with during his employment, and the Employer may seek the Employee's cooperation to transition those matters. Accordingly, for a period of 60 days after the Separation Date, the Employee shall cooperate with the Employer regarding matters arising out of or related to the Employee's service to the Employer. Employer's requests pursuant to this Section shall be reasonable in time and scope, and Employee acknowledges and agrees the Separation Payment is sufficient consideration for all provisions of this Agreement, including reasonable requests pursuant to this Section.

10. Non-Disparagement. The Employee agrees and covenants that the Employee shall not at any time make, publish, or communicate to any person or entity or in any public forum any defamatory, derogatory, or disparaging remarks, comments, or statements concerning the Employer Group or its businesses, or any of its employees, officers, or directors and its existing and prospective customers, suppliers, investors, and other associated third parties, now or in the future.

11. Future Employment. Employee understands and agrees that, as a condition of this Agreement, he shall not be entitled to any employment with Employer Group, and he hereby agrees not to seek future employment with Employer Group. Employee further acknowledges and agrees that the forbearance to seek future employment stated in this Section 11 is purely contractual, and is in no way involuntary, discriminatory, or retaliatory.

12. Confidentiality. The Employee agrees and covenants that he shall not disclose any of the terms of or amount paid under this Agreement or the negotiation thereof to any individual or entity; provided, however, that the Employee will not be prohibited from making disclosures to his attorney, tax and financial advisors and/or immediate family members, or as may be required by law.

This Section does not, in any way, restrict or impede the Employee from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order. The Employee shall promptly provide written notice of any such order to the Employer's Chief Human Resources Officer.

13. Remedies. In the event of a breach or threatened breach by the Employee of any of the provisions of this Agreement, the Employee hereby consents and agrees that the Employer shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford

an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief.

If the Employee fails to abide by any of the terms of this Agreement or post-termination obligations contained herein, or if he revokes the ADEA release contained in Section 4 within the seven-day revocation period, the Employer may, in addition to any other remedies it may have, reclaim any amounts paid to the Employee under the provisions of this Agreement or terminate any benefits or payments that are later due under this Agreement, without waiving the releases provided herein.

14. Successors and Assigns. The Employer may freely assign this Agreement at any time. This Agreement shall inure to the benefit of the Employer Group and its successors and assigns. The Employee may not assign this Agreement or any part hereof. Any purported assignment by the Employee shall be null and void from the initial date of purported assignment.

15. Medicare. Employee affirms, covenants, and warrants he is not a Medicare beneficiary and is not currently receiving, has not received in the past, will not have received at the time of payment pursuant to this Agreement, is not entitled to, is not eligible for, and has not applied for or sought Social Security Disability or Medicare benefits. In the event any statement in the preceding sentence is incorrect (for example, but not limited to, if Employee is a Medicare beneficiary, etc.), the following sentences (i.e., the remaining sentences of this Section) apply. Employee affirms, covenants, and warrants he has made no claim for illness or injury against, nor is he aware of any facts supporting any claim against, the Releasees under which the Releasees could be liable for medical expenses incurred by the Employee before or after the execution of this agreement. Furthermore, Employee is aware of no medical expenses which Medicare has paid and for which the Releasees are or could be liable now or in the future. Employee agrees and affirms that, to the best of his knowledge, no liens of any governmental entities, including those for Medicare conditional payments, exist. Employee will indemnify, defend, and hold the Releasees harmless from Medicare claims, liens, damages, conditional payments, and rights to payment, if any, including attorneys' fees, and Employee further agrees to waive any and all future private causes of action for damages pursuant to 42 U.S.C. § 1395y(b)(3)(A) et seq.

16. Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of Arizona without regard to conflicts-of-law principles. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought only in any state or federal court located in the state of Arizona, county of Maricopa. The Parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

17. Entire Agreement. Unless specifically provided herein, this Agreement contains all the understandings and representations between the Employee and the Employer Group pertaining to Employee's termination of employment with Employer and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. The Parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the Agreement.

18. Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Employee and an Executive Officer of the Employer. No waiver by either of the Parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the Parties in exercising any right, power or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege.

19. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the Parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.

The Parties further agree that any such court is expressly authorized to modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the off ending provision, deleting any or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the Parties as embodied herein to the maximum extent permitted by law.

The Parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof,

and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein.

20. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

21. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

22. Nonadmission. Nothing in this Agreement shall be construed as an admission of wrongdoing or liability on the part of the Employer Group.

23. Notices. All notices under this Agreement must be given in writing by overnight delivery at the addresses indicated in this Agreement or any other address designated in writing by either party.

(a) Notice to the Employer:

Barbara Kennedy

Chief Human Resources Officer

Western Alliance Bank

One E. Washington, Suite 1400

Phoenix, AZ 85004

(b) Notice to the Employee will be directed to the last known address provided by Employee to Employer.

24. Acknowledgment of Full Understanding. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. THE EMPLOYEE FURTHER ACKNOWLEDGES THAT HIS SIGNATURE BELOW IS AN AGREEMENT TO RELEASE WESTERN ALLIANCE BANK AND THE EMPLOYER GROUP FROM ANY AND ALL CLAIMS.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Date provided below.

EMPLOYEE		WESTERN ALLIANCE BANCORPORATION
		WESTERN ALLIANCE BANK
Signature:	/s/ James Haught	Signature:	/s/ Barbara Kennedy
Printed Name:	James Haught	Printed Name:	Barbara Kennedy
Date:	November 2, 2019	Date:	November 2, 2019
		Title:	Chief Human Resources Officer

EX-10.13

Exhibit 10.13

[DATE], 2020

[NAME]

[ADDRESS]

Dear [NAME],

Re: Executive Participation Agreement

Western Alliance Bancorporation Severance and Change in Control Plan

Western Alliance Bancorporation (the “Company”) has established the Western Alliance Bancorporation Severance and Change in Control Plan (the “Plan”). The Plan provides severance payments and benefits to certain eligible executives in the event of an Involuntary Termination or Qualified Retirement. You are eligible to participate in the Plan.

By the signatures below of the Executive named herein and the representative of the Company, the Company and the Executive acknowledge that the Committee has designated the Executive as eligible to participate in the Plan, and the Executive hereby acknowledges and accepts such participation, subject to the terms and conditions of the Plan, and agrees to the terms of this Participation Agreement (this “Agreement”) and the Plan, which is attached hereto and made a part hereof.

Name of Executive:	[NAME]
Date of Eligibility and Participation:	[DATE]

Unless otherwise defined herein, any capitalized terms used in this Agreement shall have the meanings set forth in the Plan.

In consideration of the mutual covenants contained herein, the parties hereby agree as follows:

1. Annual Bonus for the Plan Year in Which a Change in Control Occurs. Upon consummation of a Change in Control, regardless of whether the Executive has incurred a Separation from Service in that Plan Year, the Company will pay the Executive (a) any annual bonus that the Executive had earned in the Plan Year prior to the Plan Year in which the Change in Control occurred, but which was unpaid as of the consummation of the Change in Control, and (b) a pro rata amount of the Target Annual Bonus for the Plan Year in which the Change in Control occurs, based on the number of days elapsed in the Plan Year as of the date of the Change in Control.

2. Severance Benefits. Subject to the conditions and limitations of the Plan and this Agreement, if the Executive experiences an Involuntary Termination or Qualified Retirement, in addition to any Accrued Benefits, the Company shall pay or provide to the Executive, within sixty (60) days following the date of such termination, subject to the Executive’s execution of a Release in accordance with Section 3.8 of the Plan, the following payments and benefits (constituting the “Severance Benefits” under Section 3.4(b) of the Plan):

(a) Termination for Poor Performance. Upon an Involuntary Termination under Section 3.2(a) of the Plan, the Company shall make a lump sum cash severance payment to the Executive in an amount equal to nine (9) months of the Executive’s Base Salary in the Plan Year in which the Executive’s Separation from Service occurs.

(b) Termination without Cause. Upon an Involuntary Termination under Section 3.2(b) of the Plan:

(i) The Company shall make a lump sum cash severance payment to the Executive in an amount equal to one-and-one-half (1 ½) times the Executive’s Base Salary in the Plan Year in which the Executive’s Separation from Service occurs.

(ii) The Company shall make a lump sum payment to the Executive in an amount equal to the sum of (A) any annual bonus that the Executive had earned in the Plan Year prior to the Plan Year in which the Executive’s Separation from Service occurred, but which was unpaid as of the Executive’s Separation from Service, and (B) a pro rata amount of the Executive’s Target Annual Bonus for the Plan Year in which the Executive’s Separation from Service occurs, based on the number of days elapsed in the Plan Year as of the Executive’s Separation from Service.

(iii) To the extent permitted by law, the Company shall pay the Executive a lump sum amount equal to the Company portion of the cost of continuing coverage under the Company’s group health benefits plan (so-called “COBRA premiums”) for the Executive and the Executive’s family (if the Executive qualifies for and elects that coverage) for a period of up to twenty-four (24) months (“COBRA Premium Period”) following the Executive’s Separation from Service, if the Executive is eligible and elects such continuing coverage, at the same costs (e.g., employee contribution) and coverage levels and under the same general terms and provisions of such plan as apply to active employees after the Executive’s Separation from Service. Nothing in this Agreement shall be construed to extend the period over which COBRA continuation coverage must be provided to the Executive or the Executive’s dependents beyond that mandated by law. To the extent the provision of health benefits to Executive under to this Section 2(b)(iii) extends beyond the period required by COBRA, such benefits will be provided in accordance with the requirements of Code Section 409A and Treasury Regulation §1.409A-3(i)(1)(iv) (or any similar or successor provisions).

(c) Certain Involuntary Terminations following a Change in Control. Upon an Involuntary Termination under Section 3.2(c) of the Plan:

(i) The Company shall make a lump sum cash severance payment to the Executive in an amount equal to the sum of (i) two (2) times the Executive’s Base Salary (using the greater of the Executive’s Base Salary for the Plan Year in which the Change in Control occurs or the Plan Year in which the Executive’s Separation from Service occurs), and (ii) two (2) times the Executive’s Target Annual Bonus (using the greater of the Annual Bonus for the Plan Year in which the Change in Control occurs or the Plan Year in which the Executive’s Separation from Service occurs).

(ii) The Company shall make a lump sum payment to the Executive in an amount equal to a pro rata amount of the Executive’s Target Annual Bonus for the Plan Year in which the Executive’s Separation from Service occurs, based on the number of days elapsed in the Plan Year as of the Executive’s Separation from Service; provided, that, if the Executive’s Separation from Service occurs in the same Plan Year as the Change in Control, to the extent the payment made by the Company under Section 1(b) of this Agreement is less than the Executive would have received under this Section 2(b)(ii), Executive will be entitled only to the difference between the amount payable under this Section 2(b)(ii) and the amount previously paid at the time of the Change in Control under Section 1(b) of this Agreement.

(iii) The same payment as is provided under Section 2(b)(iii) of this Agreement, subject to the restrictions set forth in Section 2(b)(iii) and applicable law.

(d) Qualified Retirement. Upon a Qualified Retirement under Section 3.3 of the Plan, a pro rata Annual Bonus paid based on the Company’s actual projected performance at the time of retirement.

3. State Unemployment Benefits. For purposes of state unemployment benefits, Severance Benefits under the Plan shall be deemed allocated over nine (9) months for Section 2(a), eighteen (18) months for Section 2(b) and twenty-four (24) months for Section 2(c), respectively, following the Executive’s Separation from Service, even if paid in a single lump sum.

4. At Will Employment. Other than the notice requirements set out in Section 3.8 of the Plan, nothing in this Agreement or in the Plan confers upon the Executive any right to continue in employment for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or of the Executive, which rights are hereby expressly reserved by each, terminate the Executive’s employment at any time for any reason.

5. Protective Covenants. In consideration for the Executive’s eligibility for Severance Benefits under the Plan, the Executive agrees to the provisions and protective covenants provided for in Article 4 of the Plan, which will apply during and after the Executive’s Separation from Service.

6. Recovery of Severance. If the Executive violates the Protective Covenants set forth in Article 4 of the Plan, the Company shall be entitled to recover, and the Executive shall be obligated to repay, all Severance Benefits paid or provide to the Executive under the Plan and this Agreement.

7. Acknowledgement. You acknowledge and agree that you have fully read, understand, and voluntarily enter into this Agreement. You acknowledge and agree that you have had an opportunity to consult with your personal tax, financial planning advisor, and/or attorney about the tax, financial, and legal consequences of your participation in the Plan before signing this Agreement.

8. Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Company has executed this Agreement by its duly authorized officer as of the date set forth below. Please sign below and return this Agreement to the Company’s Chief Human Resources Officer by [DATE].

[Signature Page Follows]

EXECUTIVE:	WESTERN ALLIANCE BANCORPORATION
[NAME]
	By:
	Title:

Attachment:

Western Alliance Bancorporation Severance and Change in Control Plan and the Appendices thereto.

EX-10.14

Exhibit 10.14

WESTERN ALLIANCE BANCORPORATION

NOTICE OF GRANT OF STOCK UNITS

The Participant has been granted an award of Stock Units (the “Award”) pursuant to the Western Alliance Bancorporation 2005 Stock Incentive Plan (the “Plan”) and the Stock Unit Agreement attached hereto (the “Agreement”), as follows:

Participant:	________________________
Grant Date:	________________________
Target Number of Stock Units:	______, subject to adjustment as provided by the Agreement.
Maximum Number of Stock Units:	______, subject to adjustment as provided by the Agreement.
Performance Period:	The three fiscal years of the Company beginning January 1, ____ and ending December 31, ____.
Performance Measures:	Set forth on Exhibit A hereto.
Vesting Date:	December 31, ____, except as provided by the Agreement.
Vested Stock Units:	Except as provided by the Agreement, on the Vesting Date the number of Vested Stock Units (not to exceed the Maximum Number of Stock Units) shall be determined by the Plan Administrator based on the level of achievement of the Performance Measures in accordance with Exhibit A.
Settlement Date:	Except as otherwise provided by the Agreement, a date determined by the Plan Administrator which shall in any event be no later than the 15th day of the third month following the end of the calendar year of the Vesting Date.

By their signatures below or by electronic acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Award is governed by this Notice and by the provisions of the Plan and the Agreement, both of which are made a part of this document. The Participant acknowledges that copies of the Plan, the Agreement and the prospectus for the Plan are available on the Company’s internal web site and may be viewed and printed by the Participant for attachment to the Participant’s copy of this Grant Notice. The Participant represents that the Participant has read and is familiar with the provisions of the Plan and the Agreement, and hereby accepts the Award subject to all of their terms and conditions.

WESTERN ALLIANCE BANCORPORATION		PARTICIPANT
By:		Signature
Its:		Date
Address:	1 E. Washington St., Suite 1400	Address
	Phoenix, AZ 85004, USA

ATTACHMENTS: Stock Unit Agreement

WESTERN ALLIANCE BANCORPORATION

STOCK UNIT AGREEMENT

Western Alliance Bancorporation has granted to the Participant named in the Notice of Grant of Stock Units (the “Grant Notice”) to which this Stock Unit Agreement (the “Agreement”) is attached an Award consisting of Stock Units subject to the terms and conditions set forth in the Grant Notice and this Agreement. The Award has been granted pursuant to the Western Alliance Bancorporation 2005 Stock Incentive Plan (the “Plan”), as amended to the Grant Date, the provisions of which are incorporated herein by reference. By signing the Grant Notice, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with the Grant Notice, this Agreement, the Plan and a prospectus for the Plan (the “Plan Prospectus”) in the form most recently prepared in connection with the registration with the Securities and Exchange Commission of shares issuable pursuant to the Plan, (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Plan Administrator upon any questions arising under the Grant Notice, this Agreement or the Plan.

1.Definitions and Construction.

1.1    Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan.

(a) “Plan Administrator” shall mean the Compensation Committee of the Board.

(b)“Qualified Retirement” means the voluntary resignation of an individual who is (i) at least sixty (60) years old, (ii) has provided at least ten (10) years of Service, and (iii) does not take a job with another financial services company during the performance period.

(c)“Stock Unit” means, if such Stock Unit is then a Vested Stock Unit, a right to receive on the Settlement Date one (1) share of Stock or, at the sole discretion of the Plan Administrator, an amount in cash equal to the Fair Market Value of one (1) share of Stock.

1.2Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

2.Administration.

All questions of interpretation concerning the Grant Notice, this Agreement and the Plan shall be determined by the Plan Administrator. All determinations by the Plan Administrator shall be final and binding upon all persons having an interest in the Award. Any officer of the Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided that such officer has apparent authority with respect to such matter, right, obligation, or election. If the Participant is a Covered Employee (as defined by the Plan), compensation realized by the Participant pursuant to the Award is intended to constitute qualified performance-based compensation within the meaning of Section 162(m) of the Code and the regulations thereunder, and the provisions of this Agreement shall be construed and administered in a manner consistent with this intent. Furthermore, the Company intends that compensation provided pursuant to the Award shall not be treated as nonqualified deferred compensation for purposes of Section 409A of the Code pursuant to the exclusion of “short-term deferrals” as defined by Section 1.409A-1(b)(4) thereunder, and the provisions of this Agreement shall be construed and administered in a manner consistent with this intent.

3.The Award.

3.1Grant of Stock Units. On the Grant Date, the Participant shall acquire, subject to the provisions of this Agreement, a right to receive a number of Stock Units which shall not exceed the Maximum Number of Stock Units set forth in the Grant Notice, subject to adjustment as provided in Section 10. The number of Stock Units ultimately earned by the Participant, if any, shall be that number of Stock Units which become Vested Stock Units.

3.2No Monetary Payment Required. The Participant is not required to make any monetary payment (other than applicable tax withholding, if any) as a condition to receiving the Stock Units or shares of Stock issued upon settlement of the Stock Units, the consideration for which shall be past services actually rendered and/or future services to be rendered to the Company (or any Affiliate) or for its benefit. Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to the Company (or any Affiliate) or for its benefit having a value not less than the par value of the shares of Stock issued upon settlement of the Stock Units.

4.Certification of Plan Administrator.

4.1Level of Performance Measure Attained. As soon as practicable following completion of the Performance Period, and in any event prior to the Settlement Date, the Plan Administrator shall certify in writing the level of Performance Measures obtained during the Performance Period and the resulting number of Stock Units which have become Vested Stock Units on the Vesting Date, in accordance with Exhibit A, subject to the Participant’s continued Service until the Vesting Date, except as otherwise provided in Section 5. The Company shall promptly notify the Participant of the determination by the Plan Administrator.

5.Vesting of Stock Units.

5.1In General. Except as provided by this Section and Section 9, the Stock Units shall vest and become Vested Stock Units as provided in Exhibit A and certified by the Plan Administrator.

5.2Effect of Death, Termination Due to Disability, or Qualified Retirement. In the event of the death, termination of Service due to Disability, or Qualified Retirement of the Participant prior to the Vesting Date, then on the Vesting Date, the number of Stock Units determined to be Vested Stock Units, if any, without regard to such termination of Service shall be prorated on the basis of the number of days during the Performance Period and prior to the Vesting Date that the Participant was a Service Provider prior to such death, termination of Service due to Disability or Qualified Retirement. Any pro rata vesting of Stock Units upon a Participant’s death, termination of Service due to Disability, or Qualified Retirement is effective only upon the Vesting Date and the Company’s achievement of at least the threshold Performance Measures, as set forth in Exhibit A, except as provided by Section 9.1.

6.Termination of Service; Forfeiture of Unvested Stock Units.

Except as provided by Section 5.2 and Section 9, in the event that the Participant’s Service terminates prior to the Vesting Date for any reason or no reason, with or without cause, the Participant shall forfeit and the Company shall automatically reacquire all Stock Units subject to this Award. On the Vesting Date, the Participant shall forfeit and the Company shall automatically reacquire all Stock Units which have not become Vested Stock Units. The Participant shall not be entitled to any payment for such forfeited Stock Units.

7.Settlement of the Award.

7.1Issuance of Shares of Stock. Subject to the provisions of Section 7.3 below, the Company shall issue to the Participant on the Settlement Date with respect to each Vested Stock Unit one (1) share of Stock or, at the Committee’s discretion, pay to the Participant a sum of cash equal to the Fair Market Value of one (1) share of Stock. Shares of Stock issued in settlement of Stock Units shall not be subject to any restriction on transfer other than any such restriction as may be required pursuant to Section 7.3, Section 8 or the Company’s Insider Trading Policy.

7.2Beneficial Ownership of Shares; Certificate Registration. The Participant hereby authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice any or all shares acquired by the Participant pursuant to the settlement of the Award. Except as provided by the preceding sentence, a certificate for the shares as to which the Award is settled shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.

7.3Restrictions on Grant of the Award and Issuance of Shares. The grant of the Award and issuance of shares of Stock upon settlement of the Award shall be subject to compliance with all applicable requirements of federal, state law or foreign law with respect to such securities. No shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to the Award shall relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority shall not have been obtained. As a condition to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.

7.4Fractional Shares. The Company shall not be required to issue fractional shares upon the settlement of the Award. Any fractional share resulting from the determination of the number of Vested Stock Units shall be rounded down to the nearest whole number, or, at the Committee’s discretion, settled in cash.

8.Tax Withholding.

8.1In General. At the time the Grant Notice is executed, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company, if any, which arise in connection with the Award or the issuance of shares of Stock or payment of cash in settlement thereof. The Company shall have no obligation to process the settlement of the Award or to deliver shares until the tax withholding obligations as described in this Section have been satisfied by the Participant.

8.2Withholding in Shares. Subject to applicable law, the Company shall require the Participant to satisfy its tax withholding obligations by deducting from the shares of Stock otherwise deliverable to the Participant in settlement of the Award a number of whole shares having a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates.

9.Corporate Transaction.

9.1Effect of Corporate Transaction on the Award. In the event of a Corporate Transaction prior to the completion of the Performance Period, the Vesting Date shall be accelerated to the date immediately preceding the consummation of the Corporate Transaction (the “Accelerated Vesting Date”), and the vesting of the Stock Units as of such Vesting Date shall be determined as follows:

(a)    The Target Number of Stock Units, if any, which shall be deemed Vested Stock Units as of the Accelerated Vesting Date will be determined in accordance with Exhibit A, except that, (i) the number of EPS Units earned, if any, shall be based on an EPS value equal to three (3) multiplied by the average of the Company’s actual annualized EPS for the completed portion of the Performance Period, and (ii) the number of Relative TSR Units earned, if any, shall be based on the TSR for each company as of the Accelerated Vesting Date.

(b)    In the event the Company’s projected annualized EPS for the remainder of the Performance Period is more than 10% higher or lower than the Company’s actual annualized EPS for the completed portion of the Performance Period, the Plan Administrator may, in its discretion, adjust the EPS value calculated pursuant to Section 9.1(a) to account for the Company’s projected performance.

The vesting of Stock Units and settlement of the Award that was permissible solely by reason of this Section shall be conditioned upon the consummation of the Corporate Transaction.

9.2Federal Excise Tax Under Section 4999 of the Code.

(a)    Excess Parachute Payment. In the event that any acceleration of vesting the Stock Units and any other payment or benefit received or to be received by the Participant would subject the Participant to any excise tax pursuant to Section 4999 of the Code due to the characterization of such acceleration of vesting, payment or benefit as an “excess parachute payment” under Section 280G of the Code, the Participant may elect, in his or her sole discretion, to reduce the amount of any acceleration of vesting called for by this Agreement in order to avoid such characterization.

(b)    Determination by Professional Tax Firm. To aid the Participant in making any election called for under Section 9.2(a), no later than the date of the occurrence of any event that might reasonably be anticipated to result in an “excess parachute payment” to the Participant as described in Section 9.2(a), the Company shall request a determination in writing by professional firm then engaged by the Company for general tax purposes. If the tax firm so engaged by the Company is serving as accountant or auditor for the acquiring company, the Company will appoint a nationally recognized tax firm to make the determinations required by this Section. As soon as practicable thereafter, the tax firm shall determine and report to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest after-tax benefit to the Participant. For the purposes of such determination, the tax firm may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and the Participant shall furnish to the tax firm such information and documents as it may reasonably request in order to make its required determination. The Company shall bear all fees and expenses the tax firm may charge in connection with its services contemplated by this Section 9.2(b).

10.Adjustments for Changes in Capital Structure.

Subject to any required action by the stockholders of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, appropriate adjustments shall be made in the number of Stock Units subject to the Award and/or the number and kind of shares to be issued in settlement of the Award, in order to prevent dilution or enlargement of the Participant’s rights under the Award. For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.” Any fractional share resulting from an adjustment pursuant to this Section shall be rounded down to the nearest whole number. Such adjustments shall be determined by the Plan Administrator, and its determination shall be final, binding and conclusive.

11.Rights as a Stockholder or Employee.

The Participant shall have no rights as a stockholder with respect to any shares which may be issued in settlement of this Award until the date of the issuance of a certificate for such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 10. If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between the Company or an Affiliate and the Participant, the Participant’s employment is “at will” and is for no specified term. Nothing in this Agreement shall confer upon the Participant any right to continue in Service interfere in any way with any right of the Company or any Affiliate to terminate the Participant’s Service at any time.

12.Legends.

The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of Stock issued pursuant to this Agreement. The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to this Award in the possession of the Participant in order to carry out the provisions of this Section.

13.Miscellaneous Provisions.

13.1Termination or Amendment. The Plan Administrator may terminate or amend the Plan or this Agreement at any time; provided, however, that except as provided in Section 9 in connection with a Corporate Transaction, no such termination or amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant unless such termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A of the Code. No amendment or addition to this Agreement shall be effective unless in writing.

13.2Nontransferability of the Award. Prior the issuance of shares of Stock on the Settlement Date, neither this Award nor any Stock Units subject to this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.

13.3Unfunded Obligation. The Participant shall have the status of a general unsecured creditor of the Company. Any amounts payable to the Participant pursuant to the Award shall be an unfunded and unsecured obligation for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974. The Company shall not be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Plan Administrator or the Company and the Participant, or otherwise create any vested or beneficial interest in the Participant or the Participant’s creditors in any assets of the Company. The Participant shall have no claim against the Company for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Award.

13.4Further Instruments. The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

13.5Binding Effect. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

13.6Delivery of Documents and Notices. Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by the Company or an Affiliate, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the address shown below that party’s signature to the Grant Notice or at such other address as such party may designate in writing from time to time to the other party.

(a)    Description of Electronic Delivery. The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically. In addition, the Participant may deliver electronically the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time to time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.

(b)    Consent to Electronic Delivery. The Participant acknowledges that the Participant has read Section 13.6(a) of this Agreement and consents to the electronic delivery of the Plan documents and Grant Notice, as described in Section 13.6(a). The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing. The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails. Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails. The Participant may revoke his or her consent to the electronic delivery of documents described in Section 13.6(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Section 13.6(a).

13.7Integrated Agreement. The Grant Notice, this Agreement and the Plan shall constitute the entire understanding and agreement of the Participant and the Company with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations, or warranties between the Participant and the Company with respect to such subject matter other than those as set forth or provided for herein or therein. To the extent contemplated herein or therein, the provisions of the Grant Notice and the Agreement shall survive any settlement of the Award and shall remain in full force and effect.

13.8Applicable Law. This Agreement shall be governed by the laws of the State of Arizona as such laws are applied to agreements between Arizona residents entered into and to be performed entirely within the State of Arizona.

13.9Counterparts. The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

EX-10.15

Exhibit 10.15

EXECUTIVE RESTRICTED STOCK AGREEMENT

Western Alliance Bancorporation (the "Company") has granted to the Participant (or "you") named in the Notice of Grant of Restricted Stock (the "Grant Notice") to which this Executive Restricted Stock Agreement (the "Agreement") is attached an Award consisting of Restricted Stock subject to the terms and conditions set forth in the Grant Notice and this Agreement. The Award has been granted pursuant to the Western Alliance Bancorporation 2005 Stock Incentive Plan (the "Plan"), as amended to the Grant Date, the provisions of which are incorporated herein by reference. By signing the Grant Notice, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with the Grant Notice, this Agreement, the Plan and a prospectus for the Plan (the "Plan Prospectus") in the form most recently prepared in connection with the registration with the Securities and Exchange Commission of shares issuable pursuant to the Plan, (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Plan Administrator upon any questions arising under the Grant Notice, this Agreement or the Plan.

1.    Definitions and Construction.

1.1.    Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan.

(a)     "Competing Line of Business" means a business that involves a product or service offered by anyone other than the Company that would replace or compete with any product or service offered or to be offered by the Company with which Participant had involvement or substantial knowledge while employed by the Company (unless the Company and its subsidiaries are no longer engaged in or planning to engage in that line of business).

(b)     "Plan Administrator" shall mean the Compensation Committee of the Board.

(c)     "Qualified Retirement" means a voluntary resignation of an individual who is (i) at least sixty (60) years old, (ii) has provided at least ten (10) years of Service, and (iii) does not take a job with another financial services company or participate in a Competing Line of Business with the Company during the vesting period.

1.2.    Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term or is not intended to be exclusive, unless the context clearly requires otherwise.

2.    Administration.

All questions of interpretation concerning the Grant Notice, this Agreement and the Plan shall be determined by the Plan Administrator. All determinations by the Plan Administrator shall be final and binding upon all persons having an interest in the Award. Any officer of the company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided that such officer has apparent authority with respect to such matter, right, obligation, or election.

3.    The Award.

3.1.    Grant of Restricted Stock. This grant is an award of Stock in the Number of Restricted Shares set forth on the Grant Notice, subject to the vesting conditions described below ("Restricted Stock").

3.2.    No Monetary Payment Required. The Participant is not required to make any monetary payment (other than applicable tax withholding, if any) as a condition to receiving the Restricted Stock, the consideration for which shall be past services actually rendered and/or future services to be rendered to the Company (or any Affiliate) or for its benefit. Notwithstanding the foregoing, if required by applicable state corporate law, the Participant shall furnish consideration in the form of cash or past services rendered to the Company (or any Affiliate) or for its benefit having a value not less than the par value of the shares of Stock.

4.    Issuance and Vesting.

4.1.    In General. On the Grant Date, the Participant will acquire and the Company will issue in the Participant’s name, subject to the provisions of this Agreement, the Restricted Stock.

4.2.    Time of Vesting. Except as provided below, shares of Restricted Stock shall become Vested Shares to the extent and on each applicable date (each a "Vesting Date") as provided in the Grant Notice. If, however, any such Vesting Date occurs during a period in which Participant is (i) subject to a lock-up agreement restricting his/her ability to sell shares of Stock in the open market or (ii) restricted from selling shares of Stock in the open market because he/she is not then eligible to sell under the Company’s insider trading or similar plan as then in effect (whether because a trading window is not open or Participant is otherwise restricted from trading), vesting in such shares of Stock will be delayed until the first date (which shall the be treated as the applicable Vesting Date) on which Participant is no longer prohibited from selling shares of Stock due to a lock-up agreement or insider trading plan restriction provided that Participant has been continuously in Service to the Company or an Affiliate from the Grant Date until such delayed Vesting Date.

4.3.    Effect of Death, Termination Due to Disability or Qualified Retirement. In the event of the death, termination of Service due to Disability, or Qualified Retirement of the Participant prior to any Vesting Date, outstanding shares of Restricted Stock become Vested Shares on such Vesting Date if Participant continues to satisfy the definition of Disability and Qualified Retirement on each Vesting Date. If Participant does not satisfy the definition of Disability or Qualified Retirement at any point during the vesting period, Participant’s Service shall be terminated and all unvested shares of Restricted Stock shall be forfeited as provided below.

5.    Termination of Service; Forfeiture of Unvested Restricted Stock.

Unless specifically provided above, in the event that Participant’s Service terminates prior to any Vesting Date for any reason or no reason, with or without cause, Participant shall forfeit and the Company shall automatically reacquire all shares of Restricted Stock subject to this Award which are not then Vested Shares.

6.    Tax Withholding.

6.1.    In General. At the time the Grant Notice is executed, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax and withholding obligations of the Company, if any, which arise in connection with the Award or the vesting of shares arising from this grant.

6.2.    Withholding in Shares. Subject to applicable law, the Company shall require the Participant to satisfy its tax withholding obligations by deducting from the shares of Stock otherwise deliverable to the Participant upon the Vesting Date of the Award a number of whole shares having a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates.

7.    Section 83(b) Election.

Under Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"), the difference between the purchase price paid for the shares of Stock and their fair market value on the date any forfeiture restrictions applicable to such shares lapse will be reportable as ordinary income at that time. For this purpose, "forfeiture restrictions" include the forfeiture as to unvested Stock described above. Participant may elect to be taxed at the time the shares are acquired, rather than when such shares cease to be subject to such forfeiture restrictions, by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days after the Grant Date. Participant will have to make a tax payment to the extent the purchase price is less than the fair market value of the shares on the Grant Date. No tax payment will have to be made to the extent the purchase price is at least equal to the fair market value of the shares on the Grant Date. The form for making this election is attached as Exhibit A hereto. Failure to make this filing within the thirty (30) day period will result in the recognition of ordinary income by Participant (in the event the fair market value of the shares as of the vesting date exceeds the purchase price) as the forfeiture restrictions lapse.

YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY'S, TO FILE A TIMELY ELECTION UNDER SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON YOUR BEHALF. YOU ARE RELYING SOLELY ON YOUR OWN ADVISORS WITH RESPECT TO THE DECISION AS TO WHETHER OR NOT TO FILE ANY 83(b) ELECTION.

8.    Adjustments for Changes in Capital Structure.

In the event of a stock split, a stock dividend or a similar change in the Company stock, the number of shares covered by this grant may be adjusted (and rounded down to the nearest whole number) pursuant to the Plan. Participant’s Restricted Stock shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

9.    Book-Entry Shares.

Unless you are notified otherwise, the Company will use the book-entry method of recording share issuance. Notwithstanding the foregoing, in lieu of the using the book-entry method, the Company may issue certificates under this Agreement and hold the share certificates in escrow until the applicable Vesting Date.

10.    Legends.

The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of Restricted Stock issued pursuant to this Agreement. The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to this Award in the possession of the Participant in order to carry out the provisions of this Section.

11.    Rights as a Stockholder or Employee.

11.1.    Stockholder Rights. Participant has the right to vote the Restricted Stock and to receive any dividends declared or paid on such stock. Any distributions Participant receives as a result of any stock split, stock dividend, combination of shares or other similar transaction shall be deemed to be a part of the Restricted Stock and subject to the same conditions and restrictions applicable thereto. The Company may in its sole discretion require any dividends paid on the Restricted Stock to be reinvested in shares of Stock, which the Company may in its sole discretion deem to be a part of the shares of Restricted Stock and subject to the same conditions and restrictions applicable thereto. Except as described in the Plan, no adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued.

11.2.    Retention Rights. If the Participant is an Employee, the Participant understands and acknowledges that the Participant’s employment is at will and for no specified term. Nothing in this Agreement shall confer upon the Participant any right to continue in Service or interferes in any way with any right of the Company or any Affiliate to terminate the Participant’s Service at any time.

12.    Trade Secrets, Confidential Information & Non-Solicitation.

12.1.    Use of Trade Secrets and Confidential Information. During the course of your Service you will acquire, knowledge of the Company’s Trade Secrets (as defined below) and other proprietary information relating to its business, business methods, personnel, customers, and clients (collectively referenced as "Confidential Information"). You agree that Confidential Information of the Company is to be used by you solely and exclusively for the purpose of conducting business on behalf of the Company. You shall keep such Confidential Information confidential and not divulge, use or disclose this information except for that purpose. If you resign or are terminated from Service for any reason, you shall immediately return to the Company all Records and Confidential Information, including information maintained by you in your office, personal electronic devices, and/or at home. Confidential Information also includes any organizational information or staffing information learned in connection with your Service to the Company, and you shall not (i) share such information with any recruiters or any other employers, either during or subsequent to your Service to the Company, or (ii) use or permit use of such as a means to recruit or solicit any Company Employee (as defined below) away from the Company.

"Trade Secrets" are defined as information, including but not limited to, a formula, pattern, compilation, program, device, method, technique, or process, that: (1) derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. The Company’s Trade Secrets include, but are not limited to, the following:

(a)    the names, address, and contact information of the Company’s customers or clients and prospective customers and clients, as well as any other personal or financial information relating to any customer, client, or prospect, including, without limitation, account numbers, balances, portfolios, maturity and/or expiration or renewal dates, loans, policies, investment activities, purchasing practices, financial plans, insurance, annuity policies and objectives;

(b)    any information concerning the Company’s operations, including without limitation, information related to its methods, services, pricing, costs, margins and mark-ups, finances, practices, strategies, business plans, agreements, decision-making, systems, technology, policies, procedures, marketing, sales, techniques, agent information and processes;

(c)    any other proprietary and/or confidential information relating to the Company’s customers, clients, employees, products, services, sales, technologies, or business affairs.

Records of the Company also constitute Confidential Information. Your obligation to maintain the confidentiality of the Company’s Records continues at all times during and after your Service to the Company. "Records" include, but are not limited to, original, duplicated, computerized, memorized, handwritten or any other form of information, whether contained in materials provided to you by the Company, or by any institution acquired by the Company, or compiled by you or others in any form or manner including information in documents or electronic devices, such as software, flowcharts, graphs, spreadsheets, resource manuals, videotapes, calendars, day timers, planners, rolodexes, or telephone directories maintained in personal computers, laptop computers, personal digital assistants or any other devices. Records do not become any less confidential or proprietary to the Company because you may commit some of them to memory or because you may otherwise maintain them outside of the Company’s offices.

12.2.    Non-Solicitation. In consideration of the Company entering into this Agreement with you, and due to your access to certain of the Company’s Trade Secrets and confidential and proprietary information that could cause irreparable harm to the Company in the event of an unauthorized disclosure, you agree to abide by the following protective covenants set forth below:

(a)    No Solicitation of Clients, Customers, or Prospective Clients or Customers. During your employment with the Company and for a period of twelve (12) months following your resignation or the termination of your employment for any reason, you shall not (in person or through assistance to others) solicit, participate in, or promote the solicitation of or communication with, any clients, customers, or prospective clients or customer of the Company in association with or pursuit of a Competing Line of Business (as defined below) if you either had business-related contact with that client, customer, or prospective client or customer or received Confidential Information about that client, customer or prospective client or customer in the last two years of your employment at the Company; provided that, if you are a resident of the state of California and subject to the laws of the state of California, the restriction in this paragraph will apply only to solicitations or communications made with the assistance of the Company’s Confidential Information or Trade Secrets

(b)    No Solicitation of the Company Employees. During your employment with the Company and for a period of twelve (12) months following your resignation or the termination of your employment for any reason, you will not (in person or through assistance to others) participate in soliciting, recruiting, or communicating with a Company Employee for the purpose of persuading or helping the Company Employee to end or reduce his or her employment or other relationship with the Company if you either worked with that the Company Employee or received Confidential Information or Trade Secrets about that Company Employee in the last two years of your employment with the Company.

As used in this section, a reference to the "Company" shall include Western Alliance Bancorporation and its affiliates. "Company Employee" means an individual employed by or retained as a consultant or contractor to the Company.

This section is not intended to limit the Company’s right to prevent misappropriation of its Confidential Information, Records, or Trade Secrets beyond the twelve month period.

13.    Miscellaneous Provisions.

13.1.    Termination or Amendment. The Plan Administrator may terminate or amend the Plan or this Agreement at any time; provided, however, no such termination or amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant unless such termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A of the Code. No amendment or addition to this Agreement shall be effective unless in writing.

13.2.    Nontransferability of the Award. To the extent not yet vested, neither this Award nor any Restricted Stock subject to this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.

13.3.    Further Instruments. The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

13.4.    Binding Effect. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

13.5.    Delivery of Documents and Notices. Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by the Company or an Affiliate, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the address shown below that party’s signature to the Grant Notice or at such other address as such party may designate in writing from time to time to the other party.

(a)    Description of Electronic Delivery. The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically. In addition, the Participant may deliver electronically the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time to time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.

(b)    Consent to Electronic Delivery. The Participant acknowledges that the Participant has read Section 13.5(a) of this Agreement and consents to the electronic delivery of the Plan documents and Grant Notice, as described in Section 13.5(a). The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing. The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails. Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails. The Participant may revoke his or her consent to the electronic delivery of documents described in Section 13.5(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Section 13.5(a).

13.6.    Integrated Agreement. The Grant Notice, this Agreement and the Plan shall constitute the entire understanding and agreement of the Participant and the Company with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations, or warranties between the Participant and the Company with respect to such subject matter other than those as set forth or provided for herein or therein. To the extent contemplated herein or therein, the provisions of the Grant Notice and the Agreement shall survive any settlement of the Award and shall remain in full force and effect.

13.7.    Applicable Law. This Agreement shall be governed by the laws of the State of Arizona as such laws are applied to agreements between Arizona residents entered into and to be performed entirely within the State of Arizona.

13.8.    Counterparts. The Grant Notice may be executed in counterparts, each of which is deemed an original, but all of which together constitute one and the same instrument.

EXHIBIT A

ELECTION UNDER SECTION 83(b) OF

THE INTERNAL REVENUE CODE

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder:

1.     The name, address and social security number of the undersigned:

Name:_______________________________________________

Address:_____________________________________________

Social Security No. :____________________________________

2.     Description of property with respect to which the election is being made:

_____________ shares of common stock, par value $.0001 per share, Western Alliance Corporation, a Delaware corporation, (the “Company”).

3.     The date on which the property was transferred is ____________ __, 20__.

4.     The taxable year to which this election relates is calendar year 20__.

5.     Nature of restrictions to which the property is subject:

The shares of stock are subject to the provisions of a Restricted Stock Agreement between the undersigned and the Company. The shares of stock are subject to forfeiture under the terms of the Agreement.

6. The fair market value of the property at the time of transfer (determined without regard to any lapse restriction) was $__________ per share, for a total of $__________.

7.    The amount paid by taxpayer for the property was $__________.

8.    A copy of this statement has been furnished to the Company.

Dated: _____________, 20__

_______________________________________

Taxpayer’s Signature

_______________________________________

Taxpayer’s Printed Name

PROCEDURES FOR MAKING ELECTION

UNDER INTERNAL REVENUE CODE SECTION 83(b)

Whether or not to make the election is your decision and may create tax consequences for you. You are advised to consult your tax advisor if you are unsure whether or not to make the election. The following procedures must be followed with respect to the attached form for making an election under Internal Revenue Code section 83(b) in order for the election to be effective:

1. You must file one copy of the completed election form with the IRS Service Center where you file your federal income tax returns within 30 days after the Grant Date of your Restricted Stock.

2. At the same time you file the election form with the IRS, you must also give a copy of the election form to the Secretary of the Company.

3. You must file another copy of the election form with your federal income tax return (generally, Form 1040) for the taxable year in which the stock is transferred to you.

EX-21.1

Exhibit 21.1

WESTERN ALLIANCE BANCORPORATION

LIST OF SUBSIDIARIES

(As of December 31, 2019)

Name	Doing Business As	Jurisdiction of Incorporation or Organization
Western Alliance Bank	Alliance Bank of Arizona Bridge Bank First Independent Bank Bank of Nevada Torrey Pines Bank Alliance Association Bank Western Alliance Corporate Finance Western Alliance Public Finance Western Alliance Resort Finance Western Alliance Warehouse Lending	Arizona
CS Insurance Co.	Not applicable	Arizona
Las Vegas Sunset Properties	Not applicable	Nevada
Helios Prime, Inc.	Not applicable	Delaware
Western Alliance Business Trust	Not applicable	Delaware
WA PWI, LLC	Not applicable	Arizona
Western One, LLC	Not applicable	Arizona
Western Alliance Equipment Finance	Not applicable	Arizona
BW Real Estate, Inc.	Not applicable	Nevada
BankWest Nevada Capital Trust II	Not applicable	Delaware
Intermountain First Statutory Trust I	Not applicable	Connecticut
First Independent Statutory Trust I	Not applicable	Delaware
WAL Trust No. 1	Not applicable	Delaware
WAL Statutory Trust No. 2	Not applicable	Connecticut
WAL Statutory Trust No. 3	Not applicable	Connecticut
Bridge Capital Holdings Trust I	Not applicable	Delaware
Bridge Capital Holdings Trust II	Not applicable	Delaware

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statement (Nos. 333-205437, 333-199727, 333-127032, 333-145548, 333-162107, and 333-183574) on Forms S-8 and Registration Statement (No. 333-203959) on Form S-3 of Western Alliance Bancorporation and Subsidiaries of our reports dated March 2, 2020 relating to the consolidated financial statements and the effectiveness of internal control over financial reporting of Western Alliance Bancorporation and Subsidiaries appearing in this Annual Report on Form 10-K of Western Alliance Bancorporation and Subsidiaries for the year ended December 31, 2019.

/s/ RSM US LLP

Phoenix, Arizona

March 2, 2020

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Kenneth A. Vecchione, certify that:

1. I have reviewed this Annual Report on Form 10-K of Western Alliance Bancorporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

		/s/ Kenneth A. Vecchione
		Kenneth A. Vecchione
		Chief Executive Officer
Date:	March 2, 2020	Western Alliance Bancorporation

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Dale Gibbons, certify that:

1. I have reviewed this Annual Report on Form 10-K of Western Alliance Bancorporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

		/s/ Dale Gibbons
		Dale Gibbons
		Chief Financial Officer
Date:	March 2, 2020	Western Alliance Bancorporation

EX-32

Exhibit 32

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is given by the undersigned Chief Executive Officer and Chief Financial Officer of Western Alliance Bancorporation (the “Registrant”) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Each of the undersigned hereby certifies, with respect to the Registrant's annual report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), that, to each of their knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	March 2, 2020	/s/ Kenneth A. Vecchione
		Chief Executive Officer
		Western Alliance Bancorporation
Date:	March 2, 2020	/s/ Dale Gibbons
		Chief Financial Officer
		Western Alliance Bancorporation

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Payments of Ordinary Dividends, Common Stock	$ 51,329	$ 0	$ 0
Cash flows from operating activities:
Net income	499,171	435,788	325,492
Adjustments to reconcile net income to cash provided by operating activities:
Provision for credit losses	18,500	23,000	17,250
Depreciation and amortization	18,457	14,319	13,393
Stock-based compensation	26,238	25,711	23,554
Deferred income taxes	(5,129)	(16,709)	88,471
Amortization of net premiums for investment securities	17,095	14,247	16,938
Amortization of tax credit investments	41,501	35,898	25,355
Amortization of operating lease right of use asset	10,458	0	0
Accretion of fair market value adjustments on loans acquired from business combinations	(12,678)	(18,565)	(28,235)
Accretion and amortization of fair market value adjustments on other assets and liabilities acquired from business combinations	1,857	1,904	2,385
Income from bank owned life insurance	(3,901)	(3,946)	(3,861)
(Gains) / Losses on:
Gain (loss) on sales of investment securities, net	3,152	(7,656)	2,343
Assets measured at fair value, net	(5,119)	3,611	1
Sale of loans	(690)	(2,638)	(945)
Other assets acquired through foreclosure, net	(604)	(1,214)	(228)
Valuation adjustments of other repossessed assets, net	4,144	1,267	120
Sale of premises, equipment, and other assets, net	278	(44)	28
Changes in other assets and liabilities, net	111,346	20,687	(93,564)
Changes in other assets and liabilities, net
Net cash provided by operating activities	717,772	540,972	383,811
Investment securities - trading
Proceeds from sales	0	0	994
Investment securities - AFS
Purchases	(927,589)	(520,734)	(1,429,434)
Principal pay downs and maturities	785,659	425,151	430,934
Proceeds from sales	150,377	154,434	110,104
Purchases	(131,384)	(56,575)	(169,400)
Principal pay downs and maturities	21,594	8,987	6,174
Proceeds from sales	10,000	0	0
Purchases	(32,725)	(71,728)	0
Redemption of principal (reinvestment of dividends)	14,598	(577)	0
Proceeds from sales	0	48,639	0
Purchase of investment tax credits	(141,668)	(109,598)	(38,098)
Purchase of SBIC investments	(8,688)	(4,129)	(5,819)
Sale (purchase) of money market investments, net	7	(7)	0
Proceeds from bank owned life insurance	0	1,655	607
(Purchase) liquidation of restricted stock, net	(377)	(347)	(535)
Loan fundings and principal collections, net	(3,429,014)	(2,586,703)	(1,873,387)
Purchase of premises, equipment, and other assets, net	(35,148)	(11,313)	(8,862)
Proceeds from sale of other real estate owned and repossessed assets, net	1,325	9,412	21,195
Net cash used in investing activities	(3,723,033)	(2,713,433)	(2,955,527)
Cash flows from financing activities:
Net increase (decrease) in deposits	3,619,046	2,204,915	2,422,669
Net (decrease) increase in borrowings	(496,736)	97,394	294,289
Proceeds from exercise of common stock options	80	554	846
Payment, Tax Withholding, Share-based Payment Arrangement	9,645	12,910	13,811
Common stock repurchases	120,131	35,688	0
Net cash provided by financing activities	2,941,285	2,254,265	2,703,993
Net (decrease) increase in cash, cash equivalents, and restricted cash	(63,976)	81,804	132,277
Cash, cash equivalents, and restricted cash at beginning of period	498,572	416,768	284,491
Cash, cash equivalents, and restricted cash at end of period	434,596	498,572	416,768
Cash paid (received) during the period for:
Interest	180,436	113,507	59,838
Income taxes, net of refunds	(23,403)	18,760	99,430
Non-cash operating, investing, and financing activity:
Transfers to other assets acquired through foreclosure, net	898	5,744	1,812
Change in unrealized (loss) gain on junior subordinated debt, net of tax	$ (9,804)	$ 5,693	$ (3,604)

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest income:
Loans, including fees	$ 1,093,070	$ 910,577	$ 747,510
Investment securities	111,939	106,752	83,354
Dividends	6,133	7,915	7,740
Other	13,903	8,239	6,909
Total interest income	1,225,045	1,033,483	845,513
Interest expense:
Deposits	158,405	90,464	41,965
Other borrowings	1,372	4,329	561
Qualifying debt	23,390	22,287	18,273
Other	1,466	524	50
Total interest expense	184,633	117,604	60,849
Net interest income	1,040,412	915,879	784,664
Provision for credit losses	18,500	23,000	17,250
Net interest income after provision for credit losses	1,021,912	892,879	767,414
Non-interest income:
Service charges and fees	23,353	22,295	20,346
Income from equity investments	8,290	8,595	4,496
Card income	6,979	8,009	6,313
Foreign currency income	4,987	4,760	3,536
Income from bank owned life insurance	3,901	3,946	3,861
Lending related income and gains (losses) on sale of loans, net	3,158	4,340	2,212
Gain (loss) on sales of investment securities, net	3,152	(7,656)	2,343
Fair value gain (loss) adjustments on assets measured at fair value, net	5,119	(3,611)	(1)
Other income	6,156	2,438	2,238
Total non-interest income	65,095	43,116	45,344
Non-interest expense:
Salaries and employee benefits	279,274	253,238	214,344
Legal, professional, and directors' fees	37,009	28,722	29,814
Occupancy	32,507	29,404	27,860
Deposit costs	31,719	18,900	9,731
Data processing	30,577	22,716	19,225
Insurance	11,924	14,005	14,042
Loan and repossessed asset expenses	7,571	4,578	4,617
Business Development	7,043	5,960	6,128
Marketing	4,199	3,770	3,804
Card expense	2,346	4,301	3,413
Intangible amortization	1,547	1,594	2,074
Net loss (gain) on sales / valuations of repossessed and other assets	3,818	9	(80)
Other expense	33,247	38,470	25,969
Total non-interest expense	482,781	425,667	360,941
Income before provision for income taxes	604,226	510,328	451,817
Income tax expense	105,055	74,540	126,325
Net income	$ 499,171	$ 435,788	$ 325,492
Earnings per share:
Basic	$ 4.86	$ 4.16	$ 3.12
Diluted	$ 4.84	$ 4.14	$ 3.10
Weighted average number of common shares outstanding:
Basic	102,667	104,669	104,179
Diluted	103,133	105,370	104,997

XML

Parent Company (Notes)

12 Months Ended

Dec. 31, 2019

Parent Company Financial Information [Abstract]

Parent Company Financial Information

20. PARENT COMPANY FINANCIAL INFORMATION

The condensed financial statements of the holding company are presented in the following tables:

WESTERN ALLIANCE BANCORPORATION

Condensed Balance Sheets 

	December 31,
	2019		2018
	(in thousands)
ASSETS:
Cash and cash equivalents	$	75,885	$	115,721
Money market investments	—		7
Investment securities - AFS	12,767		16,454
Investment securities - equity	47,123		49,824
Investment in bank subsidiaries	3,063,470		2,568,027
Investment in non-bank subsidiaries	52,337		80,019
Other assets	22,488		27,200
Total assets	$	3,274,070	$	2,857,252
LIABILITIES AND STOCKHOLDERS' EQUITY:
Qualifying debt	$	242,000	$	211,376
Accrued interest and other liabilities	15,322		32,142
Total liabilities	257,322		243,518
Total stockholders’ equity	3,016,748		2,613,734
Total liabilities and stockholders’ equity	$	3,274,070	$	2,857,252

WESTERN ALLIANCE BANCORPORATION

Condensed Income Statements 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Income:
Dividends from subsidiaries	$	134,000	$	152,116	$	97,264
Interest income	2,818		2,905		2,547
Non-interest income	5,112		761		2,470
Total income	141,930		155,782		102,281
Expense:
Interest expense	14,554		13,949		11,459
Non-interest expense	19,543		19,025		16,293
Total expense	34,097		32,974		27,752
Income before income taxes and equity in undistributed earnings of subsidiaries	107,833		122,808		74,529
Income tax benefit	5,628		10,436		5,229
Income before equity in undistributed earnings of subsidiaries	113,461		133,244		79,758
Equity in undistributed earnings of subsidiaries	385,710		302,544		245,734
Net income	$	499,171	$	435,788	$	325,492

Western Alliance Bancorporation

Condensed Statements of Cash Flows

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Cash flows from operating activities:
Net income	$	499,171		$	435,788		$	325,492
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net undistributed earnings of subsidiaries	(385,710		)	(302,544		)	(245,734		)
Other operating activities, net	9,885			(5,889		)	16,921
Net cash provided by operating activities	123,346			127,355			96,679
Cash flows from investing activities:
Purchases of securities	(10,841		)	(44,409		)	(11,765		)
Principal pay downs, calls, maturities, and sales proceeds of securities	19,032			11,362			23,196
Capital contributions to subsidiaries	—			—			(50,000		)
Other investing activities, net	7			(7		)	—
Net cash provided by (used in) investing activities	8,198			(33,054		)	(38,569		)
Cash flows from financing activities:
Share repurchases	(120,131		)	(35,688		)	—
Other financing activities, net	80			554			(12,965		)
Dividends paid on common stock	(51,329		)	—			—
Net cash used in financing activities	(171,380		)	(35,134		)	(12,965		)
Net (decrease) increase in cash and cash equivalents	(39,836		)	59,167			45,145
Cash and cash equivalents at beginning of year	115,721			56,554			11,409
Cash and cash equivalents at end of year	$	75,885		$	115,721		$	56,554

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Derivatives and Hedging

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

12. DERIVATIVES AND HEDGING ACTIVITIES

The Company is a party to various derivative instruments. Derivative instruments are contracts between two or more parties that have a notional amount and an underlying variable, require a small or no initial investment, and allow for the net settlement of positions. A derivative’s notional amount serves as the basis for the payment provision of the contract and takes the form of units, such as shares or dollars. A derivative’s underlying variable is a specified interest rate, security price, commodity price, foreign exchange rate, index, or other variable. The interaction between the notional amount and the underlying variable determines the number of units to be exchanged between the parties and influences the fair value of the derivative contract.

The primary type of derivatives that the Company uses are interest rate swaps. Generally, these instruments are used to help manage the Company's exposure to interest rate risk and meet client financing and hedging needs.

Derivatives are recorded at fair value on the Consolidated Balance Sheets, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow the Company to settle all derivative contracts held with the same counterparty on a net basis, and to offset net derivative positions with related cash collateral, where applicable.

As of December 31, 2019, 2018, and 2017, the Company does not have any outstanding cash flow hedges.

Derivatives Designated in Hedge Relationships

The Company utilizes derivatives that have been designated as part of a hedge relationship in accordance with the applicable accounting guidance to minimize the exposure to changes in benchmark interest rates and volatility of net interest income and EVE to interest rate fluctuations. The primary derivative instruments used to manage interest rate risk are interest rate swaps, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) to another interest rate index.

The Company has entered into pay fixed/receive variable interest rate swaps designated as fair value hedges of certain fixed rate loans. As a result, the Company receives variable-rate interest payments in exchange for making fixed-rate payments over the lives of the contracts without exchanging the notional amounts.

The Company has also entered into receive fixed/pay variable interest rate swaps, designated as fair value hedges on its fixed rate subordinated debt offerings. As a result, the Company is paying a floating rate of three month LIBOR plus 3.16% and is receiving semi-annual fixed payments of 5.00% to match the payments on the $150.0 million subordinated debt. For the fair value hedge on the Parent's $175.0 million subordinated debentures issued on June 16, 2016, the Company is paying a floating rate of three- month LIBOR plus 3.25% and is receiving quarterly fixed payments at 6.25% to match the payments on the debt.

Derivatives Not Designated in Hedge Relationships

Management also enters into certain foreign exchange derivative contracts and back-to-back interest rate swaps that are not designated as accounting hedges. Foreign exchange derivative contracts include spot, forward, and forward window contracts. The purpose of these derivative contracts is to mitigate foreign currency risk on transactions entered into or on behalf of customers. Contracts with customers, along with the related derivative trades the Company places, are both remeasured at fair value, and are referred to as economic hedges since they economically offset the Company's exposure. The Company's back-to-back interest rate swaps are used to manage long-term interest rate risk.

As of December 31, 2019 and 2018, the following amounts are reflected on the Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges:

	December 31, 2019					December 31, 2018
	Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)		Carrying Value of Hedged Assets/(Liabilities)			Cumulative Fair Value Hedging Adjustment (1)
	(in thousands)
Loans - HFI, net of deferred loan fees and costs	$	578,063		$	53,292	$	650,428		$	23,039
Qualifying debt	(319,197		)	401		(299,401		)	19,691

(1) Included in the carrying value of the hedged assets/(liabilities)

For the Company's derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings in the same line item as the offsetting loss or gain on the related interest rate swaps. For loans, the gain or loss on the hedged item is included in interest income and for subordinated debt, the gain or loss on the hedged item is included in interest expense.

Fair Values, Volume of Activity, and Gain/Loss Information Related to Derivative Instruments

The following table summarizes the fair values of the Company's derivative instruments on a gross and net basis as of December 31, 2019, 2018, and 2017. The change in the notional amounts of these derivatives from December 31, 2017 to December 31, 2019 indicates the volume of the Company's derivative transaction activity during these periods. The derivative asset and liability balances are presented on a gross basis, prior to the application of bilateral collateral and master netting agreements. Total derivative assets and liabilities are adjusted to take into account the impact of legally enforceable master netting agreements that allow the Company to settle all derivative contracts with the same counterparty on a net basis and to offset the net derivative position with the related collateral. Where master netting agreements are not in effect or are not enforceable under bankruptcy laws, the Company does not adjust those derivative amounts with counterparties. The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities on the Consolidated Balance Sheets, as indicated in the following table:

	December 31, 2019						December 31, 2018						December 31, 2017
			Fair Value						Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swaps	$	862,952	$	1,778	$	55,471	$	965,705	$	2,162	$	44,892	$	993,432	$	1,703	$	53,581
Total	862,952		1,778		55,471		965,705		2,162		44,892		993,432		1,703		53,581
Netting adjustments (1)	—		21		21		—		2,162		2,162		—		896		896
Net derivatives in the balance sheet	$	862,952	$	1,757	$	55,450	$	965,705	$	—	$	42,730	$	993,432	$	807	$	52,685
Derivatives not designated as hedging instruments:
Foreign currency contracts	$	6,711	$	44	$	18	$	49,690	$	454	$	201	$	85,335	$	1,232	$	983
Interest rate swaps	2,932		81		81		2,378		27		27		36,969		776		776
Total	$	9,643	$	125	$	99	$	52,068	$	481	$	228	$	122,304	$	2,008	$	1,759

(1) Netting adjustments represent the amounts recorded to convert the Company's derivative balances from a gross basis to a net basis in accordance with the applicable accounting guidance.

Counterparty Credit Risk

Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected positive replacement value of the contracts. Management generally enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types. In general, the Company has a zero credit threshold with regard to derivative exposure with counterparties. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises, such as GNMA, FNMA, and FHLMC. The total collateral netted against net derivative liabilities totaled $55.5 million at December 31, 2019, $44.9 million at December 31, 2018, and $53.6 million at December 31, 2017.

The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated:

	December 31,
	2019		2018		2017
	(in thousands)
Largest gross exposure (derivative asset) to an individual counterparty	$	1,757	$	1,411	$	893
Collateral posted by this counterparty	1,610		—		—
Derivative liability with this counterparty	—		23,906		40,340
Collateral pledged to this counterparty	—		25,761		60,476
Net exposure after netting adjustments and collateral	$	147	$	—	$	—

Credit Risk Contingent Features

Management has entered into certain derivative contracts that require the Company to post collateral to the counterparties when these contracts are in a net liability position. Conversely, the counterparties may be required to post collateral when these contracts are in a net asset position. The amount of collateral to be posted is based on the amount of the net liability and exposure thresholds. As of December 31, 2019, 2018, and 2017, the aggregate fair value of all derivative contracts with credit risk contingent features (i.e., those containing collateral posting provisions) held by the Company that were in a net liability position totaled $55.5 million, $44.9 million, and $53.6 million, respectively. As of December 31, 2019, the Company was in an over-collateralized net position of $29.2 million after considering $84.7 million of collateral held in the form of cash and securities. As of December 31, 2018 and 2017, the Company was in an over-collateralized position of $7.6 million and $25.0 million, respectively.

XML

Fair Value Accounting

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Accounting

16. FAIR VALUE ACCOUNTING

The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 825 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 825 are described in "Note 1. Summary of Significant Accounting Policies" of these Notes to Consolidated Financial Statements.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally-developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the reported fair value amounts have not been comprehensively revalued since the presentation dates, and therefore, estimates of fair value after the balance sheet date may differ significantly from the amounts presented herein. A more detailed description of the valuation methodologies used for assets and liabilities measured at fair value is set forth below. Transfers between levels in the fair value hierarchy are recognized as of the end of the month following the event or change in circumstances that caused the transfer.

Under ASC 825, the Company elected the FVO treatment for junior subordinated debt issued by WAL. This election is irrevocable and results in the recognition of unrealized gains and losses on these items at each reporting date. These unrealized gains and losses are recognized as part of other comprehensive income rather than earnings. The Company did not elect FVO treatment for the junior subordinated debt assumed in the Bridge Capital Holdings acquisition.

For the years ended December 31, 2019, 2018, and 2017, unrealized gains and losses from fair value changes on junior subordinated debt were as follows:

	Year Ended December 31,
	2019			2018		2017
	(in thousands)
Unrealized gains/(losses)	$	(13,001	)	$	7,550	$	(5,824	)
Changes included in OCI, net of tax	(9,804		)	5,693		(3,604		)

Fair value on a recurring basis

Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

AFS securities: Securities classified as AFS are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include quoted prices in active markets, dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things.

Equity securities: Preferred stock and CRA investments are reported at fair value utilizing Level 1 inputs.

Independent pricing service: The Company's independent pricing service provides pricing information on the majority of the Company's Level 1 and 2 AFS securities. For a small subset of securities, other pricing sources are used, including observed prices on publicly-traded securities and dealer quotes. Management independently evaluates the fair value measurements received from the Company's third-party pricing service through multiple review steps. First, management reviews what has transpired in the marketplace with respect to interest rates, credit spreads, volatility, and mortgage rates, among other things, and develops an expectation of changes to the securities' valuations from the previous quarter. Then, management selects a sample of investment securities and compares the values provided by its primary third-party pricing service to the market values obtained from secondary sources, including other pricing services and safekeeping statements, and evaluates those with notable variances. In instances where there are discrepancies in pricing from various sources and management expectations, management may manually price securities using currently observed market data to determine whether they can develop similar prices or may utilize bid information from broker dealers. Any remaining discrepancies between management's review and the prices provided by the vendor are discussed with the vendor and/or the Company's other valuation advisors.

Interest rate swaps: Interest rate swaps are reported at fair value utilizing Level 2 inputs. The Company obtains dealer quotations to value its interest rate swaps.

Junior subordinated debt: The Company estimates the fair value of its junior subordinated debt using a discounted cash flow model which incorporates the effect of the Company’s own credit risk in the fair value of the liabilities (Level 3). The Company’s cash flow assumptions are based on contractual cash flows as the Company anticipates that it will pay the debt according to its contractual terms.

The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs as of the periods presented: 

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2019
Assets:
Available-for-sale debt securities
CDO	$	—	$	10,142	$	—	$	10,142
Commercial MBS issued by GSEs	—		94,253		—		94,253
Corporate debt securities	5,127		94,834		—		99,961
Municipal securities	—		7,773		—		7,773
Private label residential MBS	—		1,129,227		—		1,129,227
Residential MBS issued by GSEs	—		1,412,060		—		1,412,060
Tax-exempt	—		554,855		—		554,855
Trust preferred securities	27,040		—		—		27,040
U.S. government sponsored agency securities	—		10,000		—		10,000
U.S. treasury securities	—		999		—		999
Total AFS debt securities	$	32,167	$	3,314,143	$	—	$	3,346,310
Equity securities
CRA investments	$	52,504	$	—	$	—	$	52,504
Preferred stock	86,197		—		—		86,197
Total equity securities	$	138,701	$	—	$	—	$	138,701
Loans - HFS	$	—	$	21,803	$	—	$	21,803
Derivative assets (1)	—		1,903		—		1,903
Liabilities:
Junior subordinated debt (2)	$	—	$	—	$	61,685	$	61,685
Derivative liabilities (1)	—		55,570		—		55,570

(1) Derivative assets and liabilities relate to interest rate swaps, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $53,292 and the net carrying value of subordinated debt is decreased by $401 as of December 31, 2019 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.

(2) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2018
Assets:
Available-for-sale debt securities
CDO	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		100,106
Corporate debt securities	—		99,380		—		99,380
Private label residential MBS	—		924,594		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		1,530,124
Tax-exempt	—		538,668		—		538,668
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		38,188		—		38,188
U.S. treasury securities	—		1,984		—		1,984
Total AFS debt securities	$	—	$	3,276,988	$	—	$	3,276,988
Equity securities
CRA investments	$	51,142	$	—	$	—	$	51,142
Preferred stock	63,919		—		—		63,919
Total equity securities	$	115,061	$	—	$	—	$	115,061
Derivative assets (1)	$	—	$	2,643	$	—	$	2,643
Liabilities:
Junior subordinated debt (2)	$	—	$	—	$	48,684	$	48,684
Derivative liabilities (1)	—		45,120		—		45,120

(1) Derivative assets and liabilities relate to interest rate swaps, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $23,039 and the net carrying value of subordinated debt is decreased by $19,691 as of December 31, 2018, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.

(2) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

For the years ended December 31, 2019, 2018, and 2017, the change in Level 3 liabilities measured at fair value on a recurring basis was as follows: 

	Junior Subordinated Debt
	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	(48,684	)	$	(56,234	)	$	(50,410	)
Change in fair value (1)	(13,001		)	7,550			(5,824		)
Ending balance	$	(61,685	)	$	(48,684	)	$	(56,234	)

 

(1) Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled $(9.8) million, $5.7 million, and $(3.6) million for the years ended December 31, 2019, 2018, and 2017, respectively.

For Level 3 liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018, the significant unobservable inputs used in the fair value measurements were as follows: 

	December 31, 2019		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	61,685	Discounted cash flow	Implied credit rating of the Company	5.09	%

 

	December 31, 2018		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	48,684	Discounted cash flow	Implied credit rating of the Company	7.82	%

The significant unobservable input used in the fair value measurement of the Company’s junior subordinated debt as of December 31, 2019 and 2018 was the implied credit risk for the Company, calculated as the difference between the 15-year 'BB' rated financial index over the corresponding swap index.

As of December 31, 2019, the Company estimates the discount rate at 5.09%, which represents an implied credit spread of 3.18% plus three-month LIBOR (1.91%). As of December 31, 2018, the Company estimated the discount rate at 7.82%, which was a 5.01% credit spread plus three-month LIBOR (2.81%).

Fair value on a nonrecurring basis

Certain assets are measured at fair value on a nonrecurring basis. That is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents such assets carried on the balance sheet by caption and by level within the ASC 825 hierarchy:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of December 31, 2019
Impaired loans with specific valuation allowance	$	18,203	$	—	$	—	$	18,203
Impaired loans without specific valuation allowance (1)	92,069		—		—		92,069
Other assets acquired through foreclosure	13,850		—		—		13,850
As of December 31, 2018
Impaired loans with specific valuation allowance	$	305	$	—	$	—	$	305
Impaired loans without specific valuation allowance (1)	91,821		—		—		91,821
Other assets acquired through foreclosure	17,924		—		—		17,924

(1) Net of loan balances with charge-offs of $3.3 million and $19.4 million as of December 31, 2019 and 2018, respectively.

For Level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2019 and 2018, the significant unobservable inputs used in the fair value measurements were as follows:

	December 31, 2019		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	110,272	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	13,850		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

	December 31, 2018		Valuation Technique(s)		Significant Unobservable Inputs	Range
	(in thousands)
Impaired loans	$	92,126	Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%
			Discounted cash flow method	Discount rate	Contractual loan rate	4.0% to 7.0%
				Scheduled cash collections	Probability of default	0% to 20.0%
				Proceeds from non-real estate collateral	Loss given default	0% to 70.0%
Other assets acquired through foreclosure	17,924		Collateral method	Third party appraisal	Costs to sell	4.0% to 10.0%

Impaired loans: The specific reserves for collateral dependent impaired loans are based on collateral value, net of estimated disposition costs and other identified quantitative inputs. Collateral value is determined based on independent third-party appraisals or internally-developed discounted cash flow analyses. Appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. In addition, when adjustments are made to an appraised value to reflect various factors such as the age of the appraisal or known changes in the market or the collateral, such valuation inputs are considered unobservable and the fair value measurement is categorized as a Level 3 measurement. Internal discounted cash flow analyses are also utilized to estimate the fair value of impaired loans, which considers internally-developed, unobservable inputs such as discount rates, default rates, and loss severity.

Total Level 3 impaired loans had an estimated fair value of $110.3 million and $92.1 million at December 31, 2019 and 2018, respectively. Impaired loans with a specific valuation allowance had a gross estimated fair value of $21.0 million and $1.0 million at December 31, 2019 and 2018, respectively, which was reduced by a specific valuation allowance of $2.8 million and $0.7 million, respectively.

Other assets acquired through foreclosure: Other assets acquired through foreclosure consist of properties acquired as a result of, or in-lieu-of, foreclosure. These assets are initially reported at the fair value determined by independent appraisals using appraised value less estimated cost to sell. Such properties are generally re-appraised every 12 months. There is risk for subsequent volatility. Costs relating to the development or improvement of the assets are capitalized and costs relating to holding the assets are charged to expense.

Fair value is determined, where possible, using market prices derived from an appraisal or evaluation, which are considered to be Level 2. However, certain assumptions and unobservable inputs are often used by the appraiser, therefore qualifying the assets as Level 3 in the fair value hierarchy. When significant adjustments are based on unobservable inputs, such as when a current appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the resulting fair value measurement has been categorized as a Level 3 measurement. The Company had $13.9 million and $17.9 million of such assets at December 31, 2019 and 2018, respectively.

Credit vs. non-credit losses

Under the provisions of ASC 320, Investments-Debt and Equity Securities, OTTI is separated into the amount of total impairment related to the credit loss and the amount of the total impairment related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total impairment related to all other factors is recognized in OCI.

For the years ended December 31, 2019, 2018, and 2017, the Company determined that there were no securities that experienced credit losses.

There is no OTTI balance recognized in comprehensive income as of December 31, 2019 and 2018.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The estimated fair value of the Company’s financial instruments is as follows: 

	December 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	485,107	$	—	$	516,261	$	—	$	516,261
AFS	3,346,310		32,167		3,314,143		—		3,346,310
Equity securities	138,701		138,701		—		—		138,701
Derivative assets	1,903		—		1,903		—		1,903
Loans, net	20,955,499		—		—		21,256,462		21,256,462
Accrued interest receivable	108,694		—		108,694		—		108,694
Financial liabilities:
Deposits	$	22,796,493	$	—	$	22,813,265	$	—	$	22,813,265
Customer repurchase agreements	16,675		—		16,675		—		16,675
Qualifying debt	393,563		—		332,635		74,155		406,790
Derivative liabilities	55,570		—		55,570		—		55,570
Accrued interest payable	24,661		—		24,661		—		24,661

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	302,905	$	—	$	298,648	$	—	$	298,648
AFS	3,276,988		—		3,276,988		—		3,276,988
Equity securities	115,061		115,061		—		—		115,061
Derivative assets	2,643		—		2,643		—		2,643
Loans, net	17,557,912		—		16,857,852		92,126		16,949,978
Accrued interest receivable	101,275		—		101,275		—		101,275
Financial liabilities:
Deposits	$	19,177,447	$	—	$	19,188,216	$	—	$	19,188,216
Customer repurchase agreements	22,411		—		22,411		—		22,411
Other borrowings	491,000		—		491,000		—		491,000
Qualifying debt	360,458		—		323,572		57,924		381,496
Derivative liabilities	45,120		—		45,120		—		45,120
Accrued interest payable	20,463		—		20,463		—		20,463

Interest rate risk

The Company assumes interest rate risk (the risk to the Company’s earnings and capital from changes in interest rate levels) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments, as well as its future net interest income will change when interest rate levels change and that change may be either favorable or unfavorable to the Company.

Interest rate risk exposure is measured using interest rate sensitivity analysis to determine the Company's change in EVE and net interest income resulting from hypothetical changes in interest rates. If potential changes to EVE and net interest income resulting from hypothetical interest rate changes are not within the limits established by the BOD, the BOD may direct management to adjust the asset and liability mix to bring interest rate risk within BOD-approved limits.

WAB has an ALCO charged with managing interest rate risk within the BOD-approved limits. Limits are structured to preclude an interest rate risk profile that does not conform to both management and BOD risk tolerances without ALCO approval. There

is also ALCO reporting at the Parent level for reviewing interest rate risk for the Company, which gets reported to the BOD and its Finance and Investment Committee.

Fair value of commitments

The estimated fair value of standby letters of credit outstanding at December 31, 2019 and 2018 is insignificant. Loan commitments on which the committed interest rates are less than the current market rate are also insignificant at December 31, 2019 and 2018.

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Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Billed Contracts Receivable	$ 1,600				$ 1,400				$ 1,600	$ 1,400
Service charges and fees									23,353	22,295	$ 20,346
Debit and credit card interchange fees									5,839	6,801
Success Fees									1,580	3,335
Other non-interest income									288	626
Contract with Customer, Liability, Revenue Recognized									31,060	33,057
Other revenue									34,035	10,059
Non-interest income	$ 16,027	$ 19,441	$ 14,218	$ 15,410	$ 13,611	$ 4,418	$ 13,444	$ 11,643	$ 65,095	$ 43,116	$ 45,344

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Income Taxes Reconciliation between Statutory Federal Income Tax Rate and Company's Effective Tax Rate (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Income tax at statutory rate	$	126,888		$	107,169		$	158,136
Increase (decrease) resulting from:
State income taxes, net of federal benefits	11,004			9,015			9,765
Tax-exempt income	(19,527		)	(18,322		)	(26,403		)
Change in federal rate applied to deferred items	—			—			(10,411		)
Federal NOL and other carryback items	—			(15,341		)	—
Excise tax	—			(137		)	9,689
Investment tax credits	(15,000		)	(6,673		)	(7,361		)
Other, net	1,690			(1,171		)	(7,090		)
Total tax provision	$	105,055		$	74,540		$	126,325

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Summary of Changes in Accumulated Other Comprehensive Income

The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated: 

	Unrealized holding gains (losses) on AFS			Unrealized holding gains (losses) on SERP			Unrealized holding gains (losses) on junior subordinated debt			Impairment loss on securities			Total
	(in thousands)
Balance, December 31, 2016	$	(14,916	)	$	121		$	9,956		$	144		$	(4,695	)
Other comprehensive income (loss) before reclassifications	6,334			264			(3,604		)	—			2,994
Amounts reclassified from AOCI	(1,444		)	—			—			—			(1,444		)
Net current-period other comprehensive income (loss)	4,890			264			(3,604		)	—			1,550
Balance, December 31, 2017	$	(10,026	)	$	385		$	6,352		$	144		$	(3,145	)
Balance, January 1, 2018 (1)	(12,556		)	469			7,740			144			(4,203		)
Other comprehensive (loss) income before reclassifications	(40,808		)	(77		)	5,693			—			(35,192		)
Amounts reclassified from accumulated other comprehensive income	5,773			—			—			—			5,773
Net current-period other comprehensive (loss) income	(35,035		)	(77		)	5,693			—			(29,419		)
Balance, December 31, 2018	$	(47,591	)	$	392		$	13,433		$	144		$	(33,622	)
Other comprehensive income (loss) before reclassifications	71,222			(412		)	(9,804		)	—			61,006
Amounts reclassified from AOCI	(2,232		)	—			—			(144		)	(2,376		)
Net current-period other comprehensive income (loss)	68,990			(412		)	(9,804		)	(144		)	58,630
Balance, December 31, 2019	$	21,399		$	(20	)	$	3,629		$	—		$	25,008

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive income: 

	Year Ended December 31,
Income Statement Classification	2019			2018			2017
	(in thousands)
Gain (loss) on sales of investment securities, net	$	3,152		$	(7,656	)	$	2,343
Income tax (expense) benefit	(776		)	1,883			(899		)
Net of tax	$	2,376		$	(5,773	)	$	1,444

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Fair Value Accounting (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Gains and Losses from Fair Value Changes Included in Consolidated Statement of Operations

For the years ended December 31, 2019, 2018, and 2017, unrealized gains and losses from fair value changes on junior subordinated debt were as follows:

	Year Ended December 31,
	2019			2018		2017
	(in thousands)
Unrealized gains/(losses)	$	(13,001	)	$	7,550	$	(5,824	)
Changes included in OCI, net of tax	(9,804		)	5,693		(3,604		)

Fair Value of Assets and Liabilities

The fair value of assets and liabilities measured at fair value on a recurring basis was determined using the following inputs as of the periods presented: 

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2019
Assets:
Available-for-sale debt securities
CDO	$	—	$	10,142	$	—	$	10,142
Commercial MBS issued by GSEs	—		94,253		—		94,253
Corporate debt securities	5,127		94,834		—		99,961
Municipal securities	—		7,773		—		7,773
Private label residential MBS	—		1,129,227		—		1,129,227
Residential MBS issued by GSEs	—		1,412,060		—		1,412,060
Tax-exempt	—		554,855		—		554,855
Trust preferred securities	27,040		—		—		27,040
U.S. government sponsored agency securities	—		10,000		—		10,000
U.S. treasury securities	—		999		—		999
Total AFS debt securities	$	32,167	$	3,314,143	$	—	$	3,346,310
Equity securities
CRA investments	$	52,504	$	—	$	—	$	52,504
Preferred stock	86,197		—		—		86,197
Total equity securities	$	138,701	$	—	$	—	$	138,701
Loans - HFS	$	—	$	21,803	$	—	$	21,803
Derivative assets (1)	—		1,903		—		1,903
Liabilities:
Junior subordinated debt (2)	$	—	$	—	$	61,685	$	61,685
Derivative liabilities (1)	—		55,570		—		55,570

(1) Derivative assets and liabilities relate to interest rate swaps, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $53,292 and the net carrying value of subordinated debt is decreased by $401 as of December 31, 2019 for the effective portion of the hedge, which relates to the fair value of the hedges put in place to mitigate against fluctuations in interest rates.

(2) Includes only the portion of junior subordinated debt that is recorded at fair value at each reporting period pursuant to the election of FVO treatment.

	Fair Value Measurements at the End of the Reporting Period Using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
	(in thousands)
December 31, 2018
Assets:
Available-for-sale debt securities
CDO	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		100,106
Corporate debt securities	—		99,380		—		99,380
Private label residential MBS	—		924,594		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		1,530,124
Tax-exempt	—		538,668		—		538,668
Trust preferred securities	—		28,617		—		28,617
U.S. government sponsored agency securities	—		38,188		—		38,188
U.S. treasury securities	—		1,984		—		1,984
Total AFS debt securities	$	—	$	3,276,988	$	—	$	3,276,988
Equity securities
CRA investments	$	51,142	$	—	$	—	$	51,142
Preferred stock	63,919		—		—		63,919
Total equity securities	$	115,061	$	—	$	—	$	115,061
Derivative assets (1)	$	—	$	2,643	$	—	$	2,643
Liabilities:
Junior subordinated debt (2)	$	—	$	—	$	48,684	$	48,684
Derivative liabilities (1)	—		45,120		—		45,120

(1)

Derivative assets and liabilities relate to interest rate swaps, see "Note 12. Derivatives and Hedging Activities." In addition, the carrying value of loans is increased by $23,039 and the net carrying value of subordinated debt is decreased by $19,691 as of December 31, 2018, which relates to the effective portion of the hedges put in place to mitigate against fluctuations in interest rates.

Change in Level 3 Liabilities Measured at Fair Value on Recurring Basis

For the years ended December 31, 2019, 2018, and 2017, the change in Level 3 liabilities measured at fair value on a recurring basis was as follows: 

	Junior Subordinated Debt
	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Beginning balance	$	(48,684	)	$	(56,234	)	$	(50,410	)
Change in fair value (1)	(13,001		)	7,550			(5,824		)
Ending balance	$	(61,685	)	$	(48,684	)	$	(56,234	)

 

(1) Unrealized gains/(losses) attributable to changes in the fair value of junior subordinated debt are recorded as part of OCI, net of tax, and totaled $(9.8) million, $5.7 million, and $(3.6) million for the years ended December 31, 2019, 2018, and 2017, respectively.

For Level 3 liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018, the significant unobservable inputs used in the fair value measurements were as follows: 

	December 31, 2019		Valuation Technique	Significant Unobservable Inputs	Input Value
	(in thousands)
Junior subordinated debt	$	61,685	Discounted cash flow	Implied credit rating of the Company	5.09	%

 

Assets Measured at Fair Value on Nonrecurring Basis

The following table presents such assets carried on the balance sheet by caption and by level within the ASC 825 hierarchy:

	Fair Value Measurements at the End of the Reporting Period Using
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Active Markets for Similar Assets (Level 2)		Unobservable Inputs (Level 3)
	(in thousands)
As of December 31, 2019
Impaired loans with specific valuation allowance	$	18,203	$	—	$	—	$	18,203
Impaired loans without specific valuation allowance (1)	92,069		—		—		92,069
Other assets acquired through foreclosure	13,850		—		—		13,850
As of December 31, 2018
Impaired loans with specific valuation allowance	$	305	$	—	$	—	$	305
Impaired loans without specific valuation allowance (1)	91,821		—		—		91,821
Other assets acquired through foreclosure	17,924		—		—		17,924

(1)

Net of loan balances with charge-offs of $3.3 million and $19.4 million as of December 31, 2019 and 2018, respectively

Estimated Fair Value of Financial Instruments

The estimated fair value of the Company’s financial instruments is as follows: 

	December 31, 2019
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	485,107	$	—	$	516,261	$	—	$	516,261
AFS	3,346,310		32,167		3,314,143		—		3,346,310
Equity securities	138,701		138,701		—		—		138,701
Derivative assets	1,903		—		1,903		—		1,903
Loans, net	20,955,499		—		—		21,256,462		21,256,462
Accrued interest receivable	108,694		—		108,694		—		108,694
Financial liabilities:
Deposits	$	22,796,493	$	—	$	22,813,265	$	—	$	22,813,265
Customer repurchase agreements	16,675		—		16,675		—		16,675
Qualifying debt	393,563		—		332,635		74,155		406,790
Derivative liabilities	55,570		—		55,570		—		55,570
Accrued interest payable	24,661		—		24,661		—		24,661

	December 31, 2018
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Investment securities:
HTM	$	302,905	$	—	$	298,648	$	—	$	298,648
AFS	3,276,988		—		3,276,988		—		3,276,988
Equity securities	115,061		115,061		—		—		115,061
Derivative assets	2,643		—		2,643		—		2,643
Loans, net	17,557,912		—		16,857,852		92,126		16,949,978
Accrued interest receivable	101,275		—		101,275		—		101,275
Financial liabilities:
Deposits	$	19,177,447	$	—	$	19,188,216	$	—	$	19,188,216
Customer repurchase agreements	22,411		—		22,411		—		22,411
Other borrowings	491,000		—		491,000		—		491,000
Qualifying debt	360,458		—		323,572		57,924		381,496
Derivative liabilities	45,120		—		45,120		—		45,120
Accrued interest payable	20,463		—		20,463		—		20,463

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Parent Company Parent Company Balance Sheet (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018	Dec. 31, 2017	Jan. 01, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	$ 434,596,000	$ 498,572,000		$ 416,768,000		$ 284,491,000
Money market investments	0	7,000
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Other assets	283,936,000	283,573,000
Total assets	26,821,948,000	23,109,486,000
Qualifying debt	393,563,000	360,458,000
Total liabilities	23,805,200,000	20,495,752,000
Total stockholders’ equity	3,016,748,000	2,613,734,000	$ 2,229,698,000	2,229,698,000	$ 1,892,067,000	1,891,529,000
Total liabilities and stockholders’ equity	26,821,948,000	23,109,486,000
Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Cash and cash equivalents	75,885,000	115,721,000		$ 56,554,000		$ 11,409,000
Money market investments	0	7,000
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	12,767,000	16,454,000
Investment securities - equity	47,123,000	49,824,000
Investment in bank subsidiaries	3,063,470,000	2,568,027,000
Investment in non-bank subsidiaries	52,337,000	80,019,000
Other assets	22,488,000	27,200,000
Total assets	3,274,070,000	2,857,252,000
Qualifying debt	242,000,000	211,376,000
Accrued interest and other liabilities	15,322,000	32,142,000
Total liabilities	257,322,000	243,518,000
Total stockholders’ equity	3,016,748,000	2,613,734,000
Total liabilities and stockholders’ equity	$ 3,274,070,000	$ 2,857,252,000

XML

Employee Benefit Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan Initial Percentage Of Discretionary Deferred Compensation	6.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 6,200,000	$ 5,600,000	$ 3,100,000
Defined Contribution Plan Percentage Of Discretionary Deferred Compensation	75.00%
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount	$ 19,000
Defined Contribution Plan Age Of Participants	50 years
Minimum [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan Initial Percentage Of Discretionary Deferred Compensation	1.00%
Maximum [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	75.00%
Restoration Plan [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 100,000

XML

Investment Securities - Investment Securities by Credit Rating Type Parenthetical (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	$ 3,346,310	$ 3,276,988

XML

Stockholders' Equity - Summary of Unvested Shares of Restricted Stock and Changes (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	516,000	425,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	960,000	1,027,000	1,142,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$ 49.98	$ 47.53	$ 36.96
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(469,000)	(477,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$ 39.60	$ 32.31
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(114,000)	(63,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 50.80	$ 43.62
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Intrinsic Value	$ 23.7	$ 24.7	$ 26.1
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	21.3	27.4	29.1
Share-based Payment Arrangement, Expense	17.4	16.6	14.3
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 6.9	6.4	6.5
Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0
Share-based Payment Arrangement, Expense	$ 1.9	$ 2.5	$ 2.3

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Stockholders' Equity Dividend (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares
Dividends [Abstract]
Common Stock, Dividends, Per Share, Cash Paid | $ / shares	$ 0.25
Dividends | $	$ 51,329

XML

Loans, Leases and Allowance for Credit Losses - Summary of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 Days Still Accruing Interest by Loan Class (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	$ 21,101,493,000	$ 17,710,629,000
Current	21,065,187,000	17,673,900,000
Total Past Due	36,306,000	36,729,000
Financing Receivable, Nonaccrual	55,968,000	27,746,000
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	594,000
Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,316,913,000	2,325,380,000
Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	5,245,634,000	4,213,428,000
Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	9,382,043,000	7,762,642,000
Current	9,376,377,000	7,753,111,000
Total Past Due	5,666,000	9,531,000
Financing Receivable, Nonaccrual	24,501,000	15,090,000
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,316,913,000	2,325,380,000
Current	2,316,165,000	2,320,321,000
Total Past Due	748,000	5,059,000
Financing Receivable, Nonaccrual	4,542,000	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	594,000
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	5,024,218,000	4,051,837,000
Current	5,007,644,000	4,051,837,000
Total Past Due	16,574,000	0
Financing Receivable, Nonaccrual	19,178,000	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	221,416,000	161,591,000
Current	221,416,000	161,591,000
Total Past Due	0	0
Financing Receivable, Nonaccrual	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	1,176,908,000	1,382,664,000
Current	1,176,908,000	1,382,664,000
Total Past Due	0	0
Financing Receivable, Nonaccrual	2,147,000	476,000
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	775,248,000	752,089,000
Current	775,248,000	751,613,000
Total Past Due	0	476,000
Financing Receivable, Nonaccrual	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,147,664,000	1,204,355,000
Current	2,134,346,000	1,182,933,000
Total Past Due	13,318,000	21,422,000
Financing Receivable, Nonaccrual	5,600,000	11,939,000
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Consumer [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	57,083,000	70,071,000
Current	57,083,000	69,830,000
Total Past Due	0	241,000
Financing Receivable, Nonaccrual	0	241,000
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	15,413,000	16,944,000
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	2,501,000	3,187,000
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	624,000	4,441,000
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	4,661,000	0
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 30 to 59 Days Past Due [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 30 to 59 Days Past Due [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 30 to 59 Days Past Due [Member] | Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	7,627,000	9,316,000
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	2,358,000	4,902,000
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	637,000	416,000
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	476,000
Financial Asset, 60 to 89 Days Past Due [Member] | Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	1,721,000	4,010,000
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	18,535,000	14,883,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	2,528,000	5,928,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	124,000	618,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	11,913,000	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	3,970,000	8,096,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	241,000
Pass [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	20,795,258,000	17,412,922,000
Current	20,785,118,000	17,400,616,000
Pass [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	8,263,000	11,255,000
Pass [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	1,481,000	719,000
Pass [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	396,000	332,000
Special Mention [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	158,981,000	88,856,000
Current	158,907,000	87,264,000
Special Mention [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	58,000	1,580,000
Special Mention [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	16,000	12,000
Special Mention [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Substandard [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	146,805,000	208,273,000
Current	120,897,000	186,020,000
Substandard [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	7,092,000	4,109,000
Substandard [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	861,000	3,767,000
Substandard [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	17,955,000	14,377,000
Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	449,000	578,000
Current	265,000	0
Doubtful [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Doubtful [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	404,000
Doubtful [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	184,000	174,000
Loss [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Current	0	0
Loss [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Loss [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Loss [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Total Past Due	0	0
Consumer [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	57,083,000	70,071,000
Consumer [Member] | Pass [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	57,073,000	69,755,000
Consumer [Member] | Special Mention [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	10,000	75,000
Consumer [Member] | Substandard [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	241,000
Consumer [Member] | Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Consumer [Member] | Loss [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,147,664,000	1,204,355,000
Residential real estate [Member] | Pass [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,141,336,000	1,191,571,000
Residential real estate [Member] | Special Mention [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	366,000	527,000
Residential real estate [Member] | Substandard [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	5,962,000	12,257,000
Residential real estate [Member] | Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Residential real estate [Member] | Loss [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Land [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	775,248,000	752,089,000
Land [Member] | Pass [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	773,868,000	751,012,000
Land [Member] | Special Mention [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	1,380,000	0
Land [Member] | Substandard [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	1,077,000
Land [Member] | Doubtful [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Land [Member] | Loss [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Construction [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	1,176,908,000	1,382,664,000
Construction [Member] | Pass [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	1,157,169,000	1,378,624,000
Construction [Member] | Special Mention [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	17,592,000	1,210,000
Construction [Member] | Substandard [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,147,000	2,830,000
Construction [Member] | Doubtful [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Construction [Member] | Loss [Member] | Construction and land development [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Multi-family [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	221,416,000	161,591,000
Multi-family [Member] | Pass [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	221,416,000	161,591,000
Multi-family [Member] | Special Mention [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Multi-family [Member] | Substandard [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Multi-family [Member] | Doubtful [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Multi-family [Member] | Loss [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Non-owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	5,024,218,000	4,051,837,000
Non-owner occupied [Member] | Pass [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	4,913,007,000	4,030,350,000
Non-owner occupied [Member] | Special Mention [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	64,161,000	12,982,000
Non-owner occupied [Member] | Substandard [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	47,050,000	8,505,000
Non-owner occupied [Member] | Doubtful [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Non-owner occupied [Member] | Loss [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,316,913,000	2,325,380,000
Owner occupied [Member] | Pass [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	2,265,566,000	2,255,513,000
Owner occupied [Member] | Special Mention [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	9,579,000	12,860,000
Owner occupied [Member] | Substandard [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	41,768,000	57,007,000
Owner occupied [Member] | Doubtful [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Owner occupied [Member] | Loss [Member] | Commercial real estate [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	0	0
Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	9,382,043,000	7,762,642,000
Commercial And Industrial [Member] | Pass [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	9,265,823,000	7,574,506,000
Commercial And Industrial [Member] | Special Mention [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	65,893,000	61,202,000
Commercial And Industrial [Member] | Substandard [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	49,878,000	126,356,000
Commercial And Industrial [Member] | Doubtful [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	449,000	578,000
Commercial And Industrial [Member] | Loss [Member]
Financing Receivable, Past Due [Line Items]
Loans, net of deferred loan fees and costs	$ 0	$ 0

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Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Anti-dilutive stock options outstanding that were not included in computation of diluted earnings per common share									0
Basic									102,667	104,669	104,179
Dilutive Effect Of Stock Options Restricted Stock And Equity Settled Awards									466	701	818
Diluted									103,133	105,370	104,997
Net income available to common stockholders									$ 499,171	$ 435,788	$ 325,492
Earnings (loss) per share - basic	$ 1.26	$ 1.25	$ 1.19	$ 1.16	$ 1.14	$ 1.06	$ 1.00	$ 0.97	$ 4.86	$ 4.16	$ 3.12
Earnings Per Share, Diluted	$ 1.25	$ 1.24	$ 1.19	$ 1.16	$ 1.13	$ 1.05	$ 0.99	$ 0.96	$ 4.84	$ 4.14	$ 3.10

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Income Taxes Income Taxes - Cumulative Tax Effects of Primary Differences (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Deferred Tax Liabilities, Property, Plant and Equipment	$ 8,372	$ 1,201
Deferred Tax Liabilities, Deferred Expense, Reserves and Accruals	(14,890)	(31,592)
Deferred Tax Liabilities, Tax Deferred Income	(6,792)	(1,624)
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	1,100	300
Deferred Tax Assets, Net of Valuation Allowance	97,404	92,167
Deferred Tax Liabilities, Leasing Arrangements	(18,823)	0
Deferred Tax Liabilities, Tax Deferred Income	(7,264)	0
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Provision for Loan Losses	44,809	42,833
Deferred Tax Assets, Leasing Arrangements	20,264	0
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost	7,351	8,718
Deferred Tax Assets, Operating Loss Carryforwards	5,619	6,255
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross	0	16,047
Deferred Tax Assets, Other	19,361	20,687
Deferred Tax Assets, Gross	97,404	94,540
Deferred Tax Liabilities, Unrealized Gains on Debt Instruments Measured at Fair Value	(1,229)	(5,833)
Deferred Tax Liabilities, Deferred Expense, Deferred Financing Costs	(10,789)	(9,528)
Deferred Tax Liabilities, Insurance Premiums	(4,514)	(6,527)
Deferred Tax Liabilities, Other	(6,706)	(3,872)
Deferred Tax Liabilities, Gross	(79,379)	(60,177)
Deferred tax assets, net	18,025	31,990
Deferred Tax Assets, Valuation Allowance	$ 0	$ (2,373)

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Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Data Disclosure [Abstract]
Interest and Dividend Income, Operating	$ 315,420	$ 315,608	$ 302,848	$ 291,168	$ 281,968	$ 265,216	$ 251,602	$ 234,697	$ 1,225,045	$ 1,033,483	$ 845,513
Interest expense	43,447	49,186	48,167	43,832	38,455	31,178	27,494	20,477	184,633	117,604	60,849
Interest Income (Expense), Net	271,973	266,422	254,681	247,336	243,513	234,038	224,108	214,220	1,040,412	915,879	784,664
Provision for Loan, Lease, and Other Losses	4,000	4,000	7,000	3,500	6,000	6,000	5,000	6,000	18,500	23,000	17,250
Interest Income (Expense), after Provision for Loan Loss	267,973	262,422	247,681	243,836	237,513	228,038	219,108	208,220	1,021,912	892,879	767,414
Non-interest income	16,027	19,441	14,218	15,410	13,611	4,418	13,444	11,643	65,095	43,116	45,344
Non-interest expense	(129,699)	(125,955)	(114,213)	(112,914)	(111,129)	(113,841)	(102,548)	(98,149)	(482,781)	(425,667)	(360,941)
Income before income taxes and equity in undistributed earnings of subsidiaries	154,301	155,908	147,686	146,332	139,995	118,615	130,004	121,714	604,226	510,328	451,817
Income tax benefit	26,236	28,533	24,750	25,536	20,909	7,492	25,325	20,814	105,055	74,540	126,325
Net income	$ 128,065	$ 127,375	$ 122,936	$ 120,796	$ 119,086	$ 111,123	$ 104,679	$ 100,900	499,171	435,788	325,492
Net income available to common stockholders									$ 499,171	$ 435,788	$ 325,492
Earnings Per Share, Basic	$ 1.26	$ 1.25	$ 1.19	$ 1.16	$ 1.14	$ 1.06	$ 1.00	$ 0.97	$ 4.86	$ 4.16	$ 3.12
Earnings Per Share, Diluted	$ 1.25	$ 1.24	$ 1.19	$ 1.16	$ 1.13	$ 1.05	$ 0.99	$ 0.96	$ 4.84	$ 4.14	$ 3.10

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Investment Securities - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($) positions	Dec. 31, 2018 USD ($) positions	Dec. 31, 2017 USD ($)
Investment Identifier [Line Items]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | positions	158	373
Amount of impairment losses reclassified out of accumulated other comprehensive income into earnings	$ 0	$ 0	$ 0
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	19,870,000	84,954,000
Securities with carrying amounts were pledged	$ 962,500,000	$ 788,400,000

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Regulatory Capital Requirements (Tables)

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Summary of Actual Capital Amount and Ratio

The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2019
WAL	$	3,257,874	$	2,775,390	$	25,390,142	$	26,110,275	12.8	%	10.9	%	10.6	%	10.6	%
WAB	3,030,301		2,703,549		25,452,261		26,134,431		11.9		10.6		10.3		10.6
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

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Segments (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Operating Segment Information

The following is a summary of operating segment balance sheet information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2019:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,471.2		$	1.8		$	9.0		$	2.3		$	2.2
Loans, net of deferred loan fees and costs	21,123.3			3,847.9			2,252.5			2,253.9			1,311.2
Less: allowance for credit losses	(167.8		)	(31.6		)	(18.0		)	(18.3		)	(9.7		)
Total loans	20,955.5			3,816.3			2,234.5			2,235.6			1,301.5
Other assets acquired through foreclosure, net	13.9			—			13.0			0.9			—
Goodwill and other intangible assets, net	297.6			—			23.2			—			154.6
Other assets	1,083.7			48.6			59.4			15.0			19.8
Total assets	$	26,821.9		$	3,866.7		$	2,339.1		$	2,253.8		$	1,478.1
Liabilities:
Deposits	$	22,796.5		$	5,384.7		$	4,350.1		$	2,585.3		$	2,373.6
Borrowings and qualifying debt	393.6			—			—			—			—
Other liabilities	615.1			17.8			11.9			1.2			15.9
Total liabilities	23,805.2			5,402.5			4,362.0			2,586.5			2,389.5
Allocated equity:	3,016.7			453.6			301.0			253.3			312.5
Total liabilities and stockholders' equity	$	26,821.9		$	5,856.1		$	4,663.0		$	2,839.8		$	2,702.0
Excess funds provided (used)	—			1,989.4			2,323.9			586.0			1,223.9

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	10.1		$	4,445.8
Loans, net of deferred loan fees and costs	237.2			1,635.6			1,552.0			1,930.8			6,098.7			3.5
Less: allowance for credit losses	(2.0		)	(13.7		)	(12.6		)	(12.6		)	(49.3		)	—
Total loans	235.2			1,621.9			1,539.4			1,918.2			6,049.4			3.5
Other assets acquired through foreclosure, net	—			—			—			—			—			—
Goodwill and other intangible assets, net	—			—			119.7			0.1			—			—
Other assets	1.2			18.3			7.3			8.8			64.3			841.0
Total assets	$	236.4		$	1,640.2		$	1,666.4		$	1,927.1		$	6,123.8		$	5,290.3
Liabilities:
Deposits	$	3,210.1		$	0.1		$	3,771.5		$	—		$	36.9		$	1,084.2
Borrowings and qualifying debt	—			—			—			—			—			393.6
Other liabilities	1.8			52.9			0.1			—			2.8			510.7
Total liabilities	3,211.9			53.0			3,771.6			—			39.7			1,988.5
Allocated equity:	84.5			131.6			317.5			158.5			494.3			509.9
Total liabilities and stockholders' equity	$	3,296.4		$	184.6		$	4,089.1		$	158.5		$	534.0		$	2,498.4
Excess funds provided (used)	3,060.0			(1,455.6		)	2,422.7			(1,768.6		)	(5,589.8		)	(2,791.9		)

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2018:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,259.7		$	2.5		$	10.9		$	2.5		$	3.0
Loans, net of deferred loan fees and costs	17,710.6			3,647.9			2,003.5			2,161.1			1,300.2
Less: allowance for credit losses	(152.7		)	(30.7		)	(18.7		)	(19.8		)	(10.7		)
Total loans	17,557.9			3,617.2			1,984.8			2,141.3			1,289.5
Other assets acquired through foreclosure, net	17.9			0.8			13.9			—			—
Goodwill and other intangible assets, net	299.2			—			23.2			—			155.5
Other assets	974.8			46.9			57.8			14.2			23.9
Total assets	$	23,109.5		$	3,667.4		$	2,090.6		$	2,158.0		$	1,471.9
Liabilities:
Deposits	$	19,177.4		$	5,090.2		$	3,996.4		$	2,347.5		$	1,839.1
Borrowings and qualifying debt	851.5			—			—			—			—
Other liabilities	466.9			10.4			14.5			4.5			12.2
Total liabilities	20,495.8			5,100.6			4,010.9			2,352.0			1,851.3
Allocated equity:	2,613.7			441.0			277.4			242.9			304.1
Total liabilities and stockholders' equity	$	23,109.5		$	5,541.6		$	4,288.3		$	2,594.9		$	2,155.4
Excess funds provided (used)	—			1,874.2			2,197.7			436.9			683.5

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,240.8
Loans, net of deferred loan fees and costs	210.0			1,547.5			1,200.9			1,479.9			4,154.9			4.7
Less: allowance for credit losses	(1.9		)	(14.2		)	(10.0		)	(8.5		)	(38.2		)	—
Total loans	208.1			1,533.3			1,190.9			1,471.4			4,116.7			4.7
Other assets acquired through foreclosure, net	—			—			—			—			—			3.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	0.9			20.1			6.3			7.2			37.1			760.4
Total assets	$	209.0		$	1,553.4		$	1,317.6		$	1,478.7		$	4,153.8		$	5,009.1
Liabilities:
Deposits	$	2,607.2		$	—		$	2,559.0		$	—		$	—		$	738.0
Borrowings and qualifying debt	—			—			—			—			—			851.5
Other liabilities	2.1			25.2			0.1			0.4			49.6			347.9
Total liabilities	2,609.3			25.2			2,559.1			0.4			49.6			1,937.4
Allocated equity:	70.7			123.9			268.7			122.3			340.0			422.7
Total liabilities and stockholders' equity	$	2,680.0		$	149.1		$	2,827.8		$	122.7		$	389.6		$	2,360.1
Excess funds provided (used)	2,471.0			(1,404.3		)	1,510.2			(1,356.0		)	(3,764.2		)	(2,649.0		)

The following is a summary of operating segment income statement information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2019:	(in thousands)
Net interest income	$	1,040,412		$	249,083		$	161,801		$	131,053		$	95,697
Provision for (recovery of) credit losses	18,500			3,181			545			1,243			(500		)
Net interest income after provision for credit losses	1,021,912			245,902			161,256			129,810			96,197
Non-interest income	65,095			7,169			12,021			4,149			8,591
Non-interest expense	(482,781		)	(96,578		)	(62,276		)	(60,310		)	(51,709		)
Income (loss) before income taxes	604,226			156,493			111,001			73,649			53,079
Income tax expense (benefit)	105,055			39,124			23,310			20,621			14,862
Net income	$	499,171		$	117,369		$	87,691		$	53,028		$	38,217

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	86,594		$	13,342		$	130,299		$	52,905		$	125,467		$	(5,829	)
Provision for (recovery of) credit losses	60			57			2,844			3,790			7,280			—
Net interest income after provision for credit losses	86,534			13,285			127,455			49,115			118,187			(5,829		)
Non-interest income	367			—			14,267			—			5,269			13,262
Non-interest expense	(37,078		)	(7,617		)	(47,974		)	(9,180		)	(44,561		)	(65,498		)
Income (loss) before income taxes	49,823			5,668			93,748			39,935			78,895			(58,065		)
Income tax expense (benefit)	11,459			1,304			21,562			9,185			18,146			(54,518		)
Net income	$	38,364		$	4,364		$	72,186		$	30,750		$	60,749		$	(3,547	)

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2018:	(in thousands)
Net interest income	$	915,879		$	224,754		$	148,085		$	115,561		$	92,583
Provision for (recovery of) credit losses	23,000			2,235			(2,447		)	2,292			1,809
Net interest income (expense) after provision for credit losses	892,879			222,519			150,532			113,269			90,774
Non-interest income	43,116			7,689			11,326			3,800			9,932
Non-interest expense	(425,667		)	(91,161		)	(62,536		)	(57,735		)	(52,574		)
Income (loss) before income taxes	510,328			139,047			99,322			59,334			48,132
Income tax expense (benefit)	74,540			34,824			20,951			16,709			13,565
Net income	$	435,788		$	104,223		$	78,371		$	42,625		$	34,567

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	67,154		$	15,149		$	105,029		$	55,332		$	80,073		$	12,159
Provision for (recovery of) credit losses	281			(1,101		)	5,657			3,275			11,046			(47		)
Net interest income (expense) after provision for credit losses	66,873			16,250			99,372			52,057			69,027			12,206
Non-interest income	614			158			14,121			13			2,076			(6,613		)
Non-interest expense	(32,390		)	(8,120		)	(41,159		)	(9,603		)	(26,822		)	(43,567		)
Income (loss) before income taxes	35,097			8,288			72,334			42,467			44,281			(37,974		)
Income tax expense (benefit)	8,072			1,905			16,637			9,768			10,184			(58,075		)
Net income	$	27,025		$	6,383		$	55,697		$	32,699		$	34,097		$	20,101

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,118		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,108			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income	$	325,492		$	76,791		$	63,661		$	35,136		$	24,807

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,550		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,401			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income	$	16,354		$	13,053		$	32,093		$	26,471		$	23,401		$	13,725

XML

Fair Value Accounting - Estimated Fair Value of Financial Instruments (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	$ 485,107,000	$ 302,905,000
Impaired Financing Receivable, Recorded Investment	116,303,000	112,252,000
Financial assets
Securities available for sale	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Net loans held for investment	20,933,696,000	17,557,912,000
Financial liabilities
Total deposits	22,796,493,000	19,177,447,000
Customer repurchases	16,675,000	22,411,000
Repossessed Assets	13,850,000	17,924,000
FHLB and FRB advances	0	235,000,000.0
Junior subordinated debt	61,685,000	48,684,000
Fair Value, Nonrecurring [Member]
Financial liabilities
Repossessed Assets	13,850,000	17,924,000
Fair Value, Nonrecurring [Member] | Level 1 [Member]
Financial liabilities
Repossessed Assets	0	0
Fair Value, Nonrecurring [Member] | Level 2 [Member]
Financial liabilities
Repossessed Assets	0	0
Fair Value, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	110,272,000	92,126,000
Financial liabilities
Repossessed Assets	13,850,000	17,924,000
Fair Value, Nonrecurring [Member] | Carrying Amount [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	485,107,000	302,905,000
Financial assets
Net loans held for investment	20,955,499,000	17,557,912,000
Financial liabilities
Total deposits	22,796,493,000	19,177,447,000
Junior subordinated debt	393,563,000	360,458,000
Fair Value, Nonrecurring [Member] | Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	516,261,000	298,648,000
Financial assets
Net loans held for investment	21,256,462,000	16,949,978,000
Financial liabilities
Total deposits	22,813,265,000	19,188,216,000
Junior subordinated debt	406,790,000	381,496,000
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Financial assets
Net loans held for investment	0	0
Financial liabilities
Total deposits	0	0
Junior subordinated debt	0	0
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	516,261,000	298,648,000
Financial assets
Net loans held for investment	0	16,857,852,000
Financial liabilities
Total deposits	22,813,265,000	19,188,216,000
Junior subordinated debt	332,635,000	323,572,000
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Financial assets
Net loans held for investment	110,272,000	92,126,000
Financial liabilities
Total deposits	0	0
Junior subordinated debt	74,155,000	57,924,000
Fair Value, Recurring [Member]
Financial assets
Securities available for sale	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Derivative Asset	1,903,000	2,643,000
Financial liabilities
Derivative Liability	55,570,000	45,120,000
Fair Value, Recurring [Member] | Level 1 [Member]
Financial assets
Securities available for sale	32,167,000	0
Investment securities - equity	138,701,000	115,061,000
Derivative Asset	0	0
Financial liabilities
Junior subordinated debt	0	0
Derivative Liability	0	0
Fair Value, Recurring [Member] | Level 2 [Member]
Financial assets
Securities available for sale	3,314,143,000	3,276,988,000
Investment securities - equity	0	0
Derivative Asset	1,903,000	2,643,000
Financial liabilities
Junior subordinated debt	0	0
Derivative Liability	55,570,000	45,120,000
Fair Value, Recurring [Member] | Level 3 [Member]
Financial assets
Securities available for sale	0	0
Investment securities - equity	0	0
Derivative Asset	0	0
Financial liabilities
Junior subordinated debt	61,685,000	48,684,000
Derivative Liability	0	0
Fair Value, Recurring [Member] | Carrying Amount [Member]
Financial assets
Accrued Investment Income Receivable	108,694,000	101,275,000
Securities available for sale	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Derivative Asset	1,903,000	2,643,000
Financial liabilities
Interest Payable, Current	24,661,000	20,463,000
Customer repurchases	16,675,000	22,411,000
Other Borrowings Fair Value Disclosure		491,000,000
Derivative Liability	55,570,000	45,120,000
Fair Value, Recurring [Member] | Fair Value [Member]
Financial assets
Accrued Investment Income Receivable	108,694,000	101,275,000
Securities available for sale	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Derivative Asset	1,903,000	2,643,000
Financial liabilities
Interest Payable, Current	24,661,000	20,463,000
Customer repurchases	16,675,000	22,411,000
Other Borrowings Fair Value Disclosure		491,000,000
Derivative Liability	55,570,000	45,120,000
Fair Value, Recurring [Member] | Fair Value [Member] | Level 1 [Member]
Financial assets
Accrued Investment Income Receivable	0	0
Securities available for sale	32,167,000	0
Investment securities - equity	138,701,000	115,061,000
Derivative Asset	0	0
Financial liabilities
Interest Payable, Current	0	0
Customer repurchases	0	0
Other Borrowings Fair Value Disclosure		0
Derivative Liability	0	0
Fair Value, Recurring [Member] | Fair Value [Member] | Level 2 [Member]
Financial assets
Accrued Investment Income Receivable	108,694,000	101,275,000
Securities available for sale	3,314,143,000	3,276,988,000
Investment securities - equity	0	0
Derivative Asset	1,903,000	2,643,000
Financial liabilities
Interest Payable, Current	24,661,000	20,463,000
Customer repurchases	16,675,000	22,411,000
Other Borrowings Fair Value Disclosure		491,000,000
Derivative Liability	55,570,000	45,120,000
Fair Value, Recurring [Member] | Fair Value [Member] | Level 3 [Member]
Financial assets
Accrued Investment Income Receivable	0	0
Securities available for sale	0	0
Investment securities - equity	0	0
Derivative Asset	0	0
Financial liabilities
Interest Payable, Current	0	0
Customer repurchases	0	0
Other Borrowings Fair Value Disclosure		0
Derivative Liability	0	0
CRA investments [Member] | Fair Value, Recurring [Member]
Financial assets
Investment securities - equity	52,504,000	51,142,000
CRA investments [Member] | Fair Value, Recurring [Member] | Level 1 [Member]
Financial assets
Investment securities - equity	52,504,000	51,142,000
CRA investments [Member] | Fair Value, Recurring [Member] | Level 2 [Member]
Financial assets
Investment securities - equity	0	0
CRA investments [Member] | Fair Value, Recurring [Member] | Level 3 [Member]
Financial assets
Investment securities - equity	0	0
Preferred Stock [Member] | Fair Value, Recurring [Member]
Financial assets
Investment securities - equity	86,197,000	63,919,000
Preferred Stock [Member] | Fair Value, Recurring [Member] | Level 1 [Member]
Financial assets
Investment securities - equity	86,197,000	63,919,000
Preferred Stock [Member] | Fair Value, Recurring [Member] | Level 2 [Member]
Financial assets
Investment securities - equity	0	0
Preferred Stock [Member] | Fair Value, Recurring [Member] | Level 3 [Member]
Financial assets
Investment securities - equity	$ 0	$ 0

XML

Fair Value Accounting - Gains and Losses from Fair Value Changes Included in Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized (loss) gain on junior subordinated debt, net of tax	$ (9,804)	$ 5,693	$ (3,604)
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss)	$ (13,001)	$ 7,550	$ (5,824)

XML

Loans, Leases and Allowance for Credit Losses - Summary of Impairment Method Information Related to Loans and Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	$ 20,979	$ 986
Impaired loans with no allowance recorded	95,324	111,266
Total loans individually evaluated for impairment	116,303	112,252
Loans collectively evaluated for impairment	20,932,161	17,514,822
Impaired Financing Receivable, Recorded Investment	116,303	112,252
Total recorded investment	21,101,493	17,710,629
Impaired loans with an allowance recorded	24,055	1,845
Impaired loans with no allowance recorded	99,440	198,234
Total loans individually evaluated for impairment	123,495	200,079
Loans collectively evaluated for impairment	20,921,137	17,514,822
Total unpaid principal balance	21,108,472	17,820,320
Impaired loans with an allowance recorded	2,776	681
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	2,776	681
Loans collectively evaluated for impairment	164,923	151,940
Total loans held for investment	167,797	152,717
Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	17,736	6,530
Total loans individually evaluated for impairment	17,736	6,530
Loans collectively evaluated for impairment	2,296,342	2,314,871
Total recorded investment	2,316,913	2,325,380
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	18,681	11,852
Total loans individually evaluated for impairment	18,681	11,852
Loans collectively evaluated for impairment	2,297,168	2,314,871
Total unpaid principal balance	2,319,426	2,332,038
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	13,842	14,286
Total loans held for investment	13,842	14,286
Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	11,913	0
Impaired loans with no allowance recorded	23,625	12,407
Total loans individually evaluated for impairment	35,538	12,407
Loans collectively evaluated for impairment	5,159,921	4,121,464
Total recorded investment	5,245,634	4,213,428
Impaired loans with an allowance recorded	11,949	0
Impaired loans with no allowance recorded	24,738	18,155
Total loans individually evaluated for impairment	36,687	18,155
Loans collectively evaluated for impairment	5,177,477	4,121,464
Total unpaid principal balance	5,274,355	4,235,299
Impaired loans with an allowance recorded	1,219	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	1,219	0
Loans collectively evaluated for impairment	32,114	20,456
Total loans held for investment	33,431	20,543
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	6,919	623
Impaired loans with no allowance recorded	42,065	63,273
Total loans individually evaluated for impairment	48,984	63,896
Loans collectively evaluated for impairment	9,333,059	7,698,746
Total recorded investment	9,382,043	7,762,642
Impaired loans with an allowance recorded	9,844	1,482
Impaired loans with no allowance recorded	43,848	103,992
Total loans individually evaluated for impairment	53,692	105,474
Loans collectively evaluated for impairment	9,312,100	7,698,746
Total unpaid principal balance	9,365,792	7,808,572
Impaired loans with an allowance recorded	1,050	621
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	1,050	621
Loans collectively evaluated for impairment	81,252	82,488
Total loans held for investment	82,302	83,118
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	363
Impaired loans with no allowance recorded	5,600	19,381
Total loans individually evaluated for impairment	5,600	19,744
Loans collectively evaluated for impairment	2,142,045	1,184,592
Total recorded investment	2,147,664	1,204,355
Impaired loans with an allowance recorded	0	363
Impaired loans with no allowance recorded	5,708	27,979
Total loans individually evaluated for impairment	5,708	28,342
Loans collectively evaluated for impairment	2,113,893	1,184,592
Total unpaid principal balance	2,119,673	1,213,006
Impaired loans with an allowance recorded	0	60
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	60
Loans collectively evaluated for impairment	13,714	11,216
Total loans held for investment	13,714	11,276
Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	2,147	0
Impaired loans with no allowance recorded	6,274	9,403
Total loans individually evaluated for impairment	8,421	9,403
Loans collectively evaluated for impairment	1,943,735	2,125,350
Total recorded investment	1,952,156	2,134,753
Impaired loans with an allowance recorded	2,262	0
Impaired loans with no allowance recorded	6,413	25,624
Total loans individually evaluated for impairment	8,675	25,624
Loans collectively evaluated for impairment	1,963,116	2,125,350
Total unpaid principal balance	1,971,791	2,150,974
Impaired loans with an allowance recorded	507	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	507	0
Loans collectively evaluated for impairment	23,387	22,513
Total loans held for investment	23,894	22,513
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	24	272
Total loans individually evaluated for impairment	24	272
Loans collectively evaluated for impairment	57,059	69,799
Total recorded investment	57,083	70,071
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	52	10,632
Total loans individually evaluated for impairment	52	10,632
Loans collectively evaluated for impairment	57,383	69,799
Total unpaid principal balance	57,435	80,431
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	0	0
Total loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	614	981
Total loans held for investment	614	981
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	53,029	83,555
Loans acquired with deteriorated credit quality	63,840	105,419
Impaired loans with an allowance recorded	98	96
Financial Asset Acquired with Credit Deterioration [Member] | Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	2,835	3,979
Loans acquired with deteriorated credit quality	3,577	5,315
Impaired loans with an allowance recorded	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	50,175	79,557
Loans acquired with deteriorated credit quality	60,191	95,680
Impaired loans with an allowance recorded	98	87
Financial Asset Acquired with Credit Deterioration [Member] | Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	0
Loans acquired with deteriorated credit quality	0	4,352
Impaired loans with an allowance recorded	0	9
Financial Asset Acquired with Credit Deterioration [Member] | Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	19	19
Loans acquired with deteriorated credit quality	72	72
Impaired loans with an allowance recorded	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	0
Loans acquired with deteriorated credit quality	0	0
Impaired loans with an allowance recorded	0	0
Financial Asset Acquired with Credit Deterioration [Member] | Consumer [Member]
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, Recorded Investment	0	0
Loans acquired with deteriorated credit quality	0	0
Impaired loans with an allowance recorded	$ 0	$ 0

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Other Borrowings - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019
Debt [Line Items]
Weighted average interest rate of FHLB and FRB Short-term advances	2.56%
FHLB advances	$ 235,000	$ 0
Federal Home Loan Bank Advances [Member]
Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	2,500,000	4,500,000
FRB [Member]
Debt [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 1,300,000	1,100,000
Unsecured Credit Facility [Member]
Debt [Line Items]
Secured borrowing credit line		$ 1,200,000

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Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
Operating Lease, Payments	$ 12,435
Lessee, operating lease, leases not yet commenced, aggregated commitment	3,100
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	12,369
Operating Lease, Right-of-Use Asset	72,558	$ 0
Operating Lease, Liability	$ 78,112	0
Operating Lease, Weighted Average Discount Rate, Percent	3.08%
Operating Lease, Weighted Average Remaining Lease Term	8 years 4 months 24 days
Lessee, Operating Lease, Liability, Payments, Due Year Two	$ 10,413
Lessee, Operating Lease, Liability, Payments, Due Year Three	9,224
Lessee, Operating Lease, Liability, Payments, Due Year Four	9,060
Lessee, Operating Lease, Liability, Payments, Due Year Five	9,007
Lessee, Operating Lease, Liability, Payments, Due after Year Five	40,072
Lessee, Operating Lease, Liability, Payments, Due	90,145
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	12,033
Lease, Cost	12,900
Lessee, operating lease, other cost	4,000
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 43,681
Operating Leases, Rent Expense		$ 11,000	$ 10,400

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Loans, Leases and Allowance for Credit Losses - Interest Income on Impaired Loans by Loan Class (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	$ 5,012	$ 4,490	$ 4,046
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	1,857	2,113	1,077
Owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	815	491	677
Non-owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	821	937	1,074
Multi-family [Member] | Commercial real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	0	0	0
Construction [Member] | Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	715	0	0
Land [Member] | Construction and land development [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	474	566	699
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	329	381	516
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total interest income on impaired loans by class	$ 1	$ 2	$ 3

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Premises and Equipment (Notes)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

4. PREMISES AND EQUIPMENT

 The following is a summary of the major categories of premises and equipment:

	December 31,
	2019			2018
	(in thousands)
Bank premises	$	91,574		$	89,930
Land and improvements	32,954			32,954
Furniture, fixtures, and equipment	53,621			42,729
Leasehold improvements	28,477			25,919
Construction in progress	10,449			6,302
Total	217,075			197,834
Accumulated depreciation and amortization	(91,237		)	(78,360		)
Premises and equipment, net	$	125,838		$	119,474

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Other Borrowings

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Other Borrowings

8. OTHER BORROWINGS

The following table summarizes the Company’s borrowings as of December 31, 2019 and 2018: 

	December 31,
	2019		2018
	(in thousands)
Short-Term:
Federal funds purchased	$	—	$	256,000
FHLB advances	—		235,000
Total short-term borrowings	$	—	$	491,000

The Company maintains federal fund lines of credit totaling $1.2 billion as of December 31, 2019, which have rates comparable to the federal funds effective rate plus 0.10% to 0.20%. As of December 31, 2019, there were no outstanding balances on the Company's lines of credit. As of December 31, 2018, outstanding balances on these federal fund lines of credit totaled $256.0 million.

The Company also maintains secured lines of credit with the FHLB and the FRB. The Company’s borrowing capacity is determined based on collateral pledged, generally consisting of investment securities and loans, at the time of the borrowing. At December 31, 2019, the Company had no short-term FHLB overnight advances. At December 31, 2018, short-term FHLB advances of $235.0 million had an interest rate of 2.56%.

Other short-term borrowing sources available to the Company include customer repurchase agreements, which have a weighted average rate of 0.15% and totaled $16.7 million and $22.4 million as of December 31, 2019 and 2018, respectively.

As of December 31, 2019 and 2018, the Company had additional available credit with the FHLB of approximately $4.5 billion and $2.5 billion, respectively, and with the FRB of approximately $1.1 billion and $1.3 billion, respectively.

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Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of December 31, 2019:

	(in thousands)
2020	$	12,369
2021	10,413
2022	9,224
2023	9,060
2024	9,007
Thereafter	40,072
Total lease payments	$	90,145
Less: imputed interest	12,033
Total present value of lease liabilities	$	78,112

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Repurchase Agreements, Collateral, Policy [Policy Text Block]

Customer repurchase agreements

The Company enters into repurchase agreements with customers, whereby it pledges securities against overnight investments made from the customer’s excess collected funds. The Company records these at the amount of cash received in connection with the transaction.

Share-based Payment Arrangement [Policy Text Block]

Stock compensation plans

The Company has the Incentive Plan, as amended, which is described more fully in "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements. Compensation expense for stock options and non-vested restricted stock awards is based on the fair value of the award on the measurement date which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. Forfeitures are estimated at the time of the award grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of stock options. The fair value of non-vested restricted stock awards is the market price of the Company’s stock on the date of grant.

Dividends

Dividends

WAL is a legal entity separate and distinct from its subsidiaries. As a holding company with limited significant assets other than the capital stock of its subsidiaries, WAL's ability to pay dividends depends primarily upon the receipt of dividends or other capital distributions from its subsidiaries. The Company's subsidiaries' ability to pay dividends to WAL is subject to, among other things, their individual earnings, financial condition, and need for funds, as well as federal and state governmental policies and regulations applicable to WAL and each of those subsidiaries, which limit the amount that may be paid as dividends without prior approval. In addition, the terms and conditions of other securities the Company issues may restrict its ability to pay dividends to holders of the Company's common stock. For example, if any required payments on outstanding trust preferred securities are not made, WAL would be prohibited from paying cash dividends on its common stock.

Treasury shares

The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost.

Common stock repurchases

On December 11, 2018, the Company adopted its common stock repurchase program, pursuant to which the Company was authorized to repurchase up to $250.0 million of its shares of common stock through December 31, 2019. All shares repurchased under the plan are retired upon settlement. The Company has elected the method to allocate the excess of the repurchase price over the par value of its common stock between APIC and retained earnings, with the portion allocated to APIC limited to the amount of APIC that was recorded at the time that the shares were initially issued, which is calculated on a last-in, first-out basis. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

Nature of Operation

Nature of operation

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which held and managed certain OREO properties, and CSI, a captive insurance company formed and licensed under the laws of the State of Arizona and established as part of the Company's overall enterprise risk management strategy.

Basis of Presentation

Basis of presentation

The accounting and reporting policies of the Company are in accordance with GAAP and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiaries are included in the Consolidated Financial Statements.

Use of Estimates

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management's estimates and judgments are ongoing and are based on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities, as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from those estimates and assumptions used in the Consolidated Financial Statements and related notes. Material estimates that are particularly susceptible to significant changes in the near term relate to: the determination of the allowance for credit losses; certain assets and liabilities carried at fair value; and accounting for income taxes.

Principles of Consolidation

Principles of consolidation

As of December 31, 2019, WAL has the following significant wholly-owned subsidiaries: WAB and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.

The Bank has the following significant wholly-owned subsidiaries: WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; WA PWI, which holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; and BW Real Estate, Inc., which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities.

The Company does not have any other significant entities that should be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications

Certain amounts reported in prior periods may have been reclassified in the Consolidated Financial Statements to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Business Combinations

Business combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes all of the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including identified intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Changes to estimated fair values from a business combination are recognized as an adjustment to goodwill during the measurement period and are recognized in the proper reporting period in which the adjustment amounts are determined. Results of operations of an acquired business are included in the Consolidated Income Statement from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and customer deposit accounts are reported net.

The Company maintains deposit accounts with other banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.

Investment Securities

Investment securities

Investment securities include debt securities and equity securities. Debt securities may be classified as HTM, AFS, or trading. The appropriate classification is initially decided at the time of purchase. Securities classified as HTM are those debt securities that the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or general economic conditions. These securities are carried at amortized cost. The sale of an HTM security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure.

Securities classified as AFS or trading securities are reported as an asset on the Consolidated Balance Sheet at their estimated fair value. As the fair values of AFS debt securities change, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gains or losses are reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are securities that the Company does not have the positive intent and ability to hold to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations.

Equity securities are reported as an asset on the Consolidated Balance Sheet at their estimated fair value, with fair value changes recognized as part of non-interest income in the Consolidated Income Statement.

Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security, adjusted for prepayments estimates, using the interest method.

In estimating whether there are any OTTI losses on AFS securities, management considers the: 1) length of time and the extent to which the fair value has been less than amortized cost; 2) financial condition and near term prospects of the issuer; 3) impact of changes in market interest rates; and 4) intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and whether it is not more-likely-than-not the Company would be required to sell the security.

Declines in the fair value of individual AFS securities that are deemed to be other-than-temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in fair value of the debt security related to: 1) credit loss is recognized in earnings; and 2) interest rate, market, or other factors is recognized in OCI.

For individual debt securities where the Company either intends to sell the security or when it is more-likely-than-not the Company will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized in income on a cash basis.

Restricted Stock

Restricted stock

WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in capital stock of the FHLB based on the borrowing capacity used. The Bank also maintains an investment in its primary correspondent bank. These investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted investment securities. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists.

Loans, Interest and Fees from Loans

Loans, held for investment

The Company generally holds loans for investment and has the intent and ability to hold loans until their maturity. Therefore, they are reported at book value. Net loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, purchase accounting fair value adjustments, and an allowance for credit losses. In addition, the book values of loans subject to a fair value hedge are adjusted for changes in value attributable to the effective portion of the hedged benchmark interest rate risk.

The Company may also acquire loans through a business combination. These acquired loans are recorded at their estimated fair value on the date of purchase, which is comprised of unpaid principal adjusted for estimated credit losses and interest rate fair value adjustments. Loans are evaluated individually at the acquisition date to determine if there has been credit deterioration since origination. Such loans may then be aggregated and accounted for as a pool of loans based on common characteristics. When the Company acquires such loans, the yield that may be accreted (accretable yield) is limited to the excess of the Company’s estimate of undiscounted cash flows expected to be collected over the Company’s initial investment in the loan. The excess of contractual cash flows over the cash flows expected to be collected may not be recognized as an adjustment to yield, loss, or a valuation allowance. Subsequent increases in cash flows expected to be collected generally are recognized prospectively through adjustment of the loan’s yield over the remaining life. Subsequent decreases to cash flows expected to be collected are recognized as impairment losses. The Company may not carry over or create a valuation allowance in the initial accounting for loans acquired under these circumstances. For purchased loans that are not deemed impaired at the acquisition date, fair value adjustments attributable to both credit and interest rates are accreted (or amortized) over the contractual life of the individual loan. For additional information, see "Note 3. Loans, Leases and Allowance for Credit Losses" of these Notes to Consolidated Financial Statements.

Deferred loan fees and costs, premiums and discounts, and certain purchase accounting fair value adjustments, are amortized over the contractual life of the loan through interest income. If a loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If a loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of premiums, discounts, or net deferred fees are recognized as interest income.

Non-accrual loans: When a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. The Company ceases accruing interest income when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if the loans are well secured by collateral and in the process of collection.

For all loan types, when a loan is placed on non-accrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed, and the Company makes a loan-level decision to apply either the cash basis or cost recovery method. The Company recognizes income on a cash basis only for those non-accrual loans for which the collection of the remaining principal balance is not in doubt. Under the cost recovery method, subsequent payments received from the customer are applied to principal and generally no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required.

Impaired loans: A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310, Receivables, based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are recorded as a provision for credit losses. Losses are recorded as a charge-off when losses are confirmed. In addition to management's internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

Troubled Debt Restructured Loans: A TDR loan is a loan in which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. A TDR loan is also considered impaired. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual restructured principal and interest is no longer in doubt. However, such loans continue to be considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

Allowance for Credit Losses

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains an independent collateral valuation analysis for each loan over a specified dollar threshold every 12 months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, 10-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make adjustments to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Sales, Policy [Policy Text Block]

Transfers of financial assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed surrendered when the: 1) assets have been isolated from the Company; 2) transferee obtains the right to pledge or exchange the transferred assets; and 3) Company no longer maintains effective control over the transferred assets through an agreement to repurchase the transferred assets before maturity.

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the term of the lease or the estimated life of the improvement, whichever is shorter. Depreciation and amortization is computed using the following estimated lives: 

	Years
Bank premises	31
Furniture, fixtures, and equipment	3 - 10
Leasehold improvements (1)	3 - 10

(1) Depreciation is recorded over the lesser of the relevant 3 to 10 year term or the remaining life of the lease.

Management periodically reviews premises and equipment in order to determine if facts and circumstances suggest that the value of an asset is not recoverable.

Lessee, Leases [Policy Text Block]

Leases (lessee)

At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding ROU asset and operating lease liability are recorded in separate line items on the Consolidated Balance Sheet. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made and is reduced by lease incentives that are paid or are payable to the Company. Variable lease payments that depend on an index or rate such as the Consumer Price Index are included in lease payments based on the rate in effect at the commencement date of the lease. Lease payments are recognized on a straight-line basis as part of occupancy expense over the lease term.

As the rate implicit in the lease is not readily determinable, the Company's incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s Consolidated Balance Sheet, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the options will be exercised.

In addition to the package of practical expedients, the Company also elected the practical expedient that allows lessees to make an accounting policy election to not separate non-lease components from the associated lease component, and instead account for them all together as part of the applicable lease component. This practical expedient can be elected separately for each underlying class of asset. The majority of the Company’s non-lease components such as common area maintenance, parking, and taxes are variable, and are expensed as incurred. Variable payment amounts are determined in arrears by the landlord depending on actual costs incurred.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Goodwill and other intangible assets

The Company records as goodwill the excess of the purchase price in a business combination over the fair value of the identifiable net assets acquired in accordance with applicable guidance. The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. The Company can first elect to assess, through qualitative factors, whether it is more likely than not that goodwill is impaired. If the qualitative assessment indicates potential impairment, a quantitative impairment test is necessary. If, based on the quantitative test, a reporting unit's carrying amount exceeds its fair value, a goodwill impairment charge for this difference is recorded to current period earnings as non-interest expense.

The Company’s intangible assets consist primarily of core deposit intangible assets that are amortized over periods ranging from five to 10 years. The Company considers the remaining useful lives of its core deposit intangible assets each reporting period, as required by ASC 350, Intangibles—Goodwill and Other, to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life.

Consolidation, Variable Interest Entity, Policy [Policy Text Block]

Low income housing and renewable energy tax credits

The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. Renewable energy projects are accounted for under the deferral method, whereby the investment tax credits are reflected as an immediate reduction in income taxes payable and the carrying value of the asset in the period that the investment tax credits are claimed. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion.

The Company evaluates its interests in these entities to determine if it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity. A VIE is broadly defined as an entity where either: 1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or 2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIE when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as: 1) the Company's ability to direct the activities that most significantly impact the entity's economic performance; 2) its form of ownership interest; 3) its representation on the entity's governing body; 4) the size and seniority of its investment; and 5) its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration.

The Company’s investments in qualified affordable housing and renewable energy projects meet the definition of a VIE as the entities are structured such that the limited partner investors lack substantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required consolidate these entities.

Derivative Financial Instruments

Derivative financial instruments

The Company uses interest-rate swaps to mitigate interest-rate risk associated with changes to the fair value of certain fixed-rate financial instruments (fair value hedges).

The Company recognizes derivatives as assets or liabilities on the Consolidated Balance Sheet at their fair value in accordance with ASC 815, Derivatives and Hedging. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period earnings. Changes in the fair value of derivatives not considered to be highly effective in hedging the change in fair value of the hedged item are recognized in earnings as non-interest income during the period of the change.

The Company documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction after the derivative contract is executed. At inception, the Company performs a quantitative assessment to determine whether the derivatives used in hedging transactions are highly effective (as defined in the guidance) in offsetting changes in the fair value of the hedged item. Retroactive effectiveness is assessed, as well as the continued expectation that the hedge will remain effective prospectively. After the initial quantitative assessment is performed, on a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty's risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. The Company discontinues hedge accounting prospectively when it is determined that a hedge is no longer highly effective. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative instrument continues to be reported at fair value on the Consolidated Balance Sheet, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings.

Derivative instruments that are not designated as hedges, so called free-standing derivatives, are reported on the Consolidated Balance Sheet at fair value and the changes in fair value are recognized in earnings as non-interest income during the period of change.

The Company may in the normal course of business purchase a financial instrument or originate a loan that contains an embedded derivative instrument. Upon purchasing the instrument or originating the loan, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current earnings, or the Company is unable to reliably identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the Consolidated Balance Sheet at fair value and is not designated as a hedging instrument.

Income Taxes

Income taxes

The Company is subject to income taxes in the United States and files a consolidated federal income tax return with all of its subsidiaries, with the exception of BW Real Estate, Inc. Deferred income taxes are recorded to reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their income tax bases using enacted tax rates that are expected to be in effect when the taxes are actually paid or recovered. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets are recorded to the extent that these assets will more-likely-than-not be realized. In making these determinations, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. If it is determined that deferred income tax assets to be realized in the future are in excess of their net recorded amount, an adjustment to the valuation allowance will be recorded, which will reduce the Company's provision for income taxes.

A tax benefit from an unrecognized tax benefit may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including related appeals or litigation, based on technical merits. Income tax benefits must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

Interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes in the Consolidated Income Statement. Accrued interest and penalties are included in the related tax liability line with other liabilities on the Consolidated Balance Sheets. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion on income taxes.

Revenue [Policy Text Block]

Non-interest income

Non-interest income includes service charges and fees, income from equity investments, card income, foreign currency income, income from bank owned life insurance, lending related income, net gain or loss on sales of investment securities, net unrealized gains or losses on assets measured at fair value, and other income. Service charges and fees consist of fees earned from performance of account analysis, general account services, and other deposit account services. These fees are recognized as the related services are provided in accordance with ASC 606, Revenue from Contracts with Customers. Income from equity investments includes gains on equity warrant assets, SBIC equity income, and success fees. Card income includes fees earned from customer use of debit and credit cards, interchange income from merchants, and international charges. Card income is generally within the scope of ASC 310, Receivables; however, certain processing transactions for merchants, such as interchange fees, are within the scope of ASC 606. Foreign currency income represents fees earned on the differential between purchases and sales of foreign currency on behalf of the Company’s clients. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Lending related income includes fees earned from gains or losses on the sale of loans, SBA income, and letter of credit fees. Gains and losses on the sale of loans and SBA income are recognized pursuant to ASC 860, Transfers and Servicing. Net unrealized gains or losses on assets measured at fair value represent fair value changes in equity securities and are accounted for in accordance with ASC 321, Investments - Equity Securities. Fees related to standby letters of credit are accounted for in accordance with ASC 440, Commitments. Other income includes operating lease income, which is recognized on a straight-line basis over the lease term in accordance with ASC 840, Leases. Net gain or loss on sales / valuations of repossessed and other assets is presented as a component of non-interest expense, but may also be presented as a component of non-interest income in the event that a net gain is recognized. Net gain or loss on sales of repossessed and other assets are accounted for in accordance with ASC 610, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. See "Note 22. Revenue from Contracts with Customers" of these Notes to Consolidated Financial Statements for further details related to the nature and timing of revenue recognition for non-interest income revenue streams within the scope of the new standard.

Off-Balance Sheet Instruments

Off-balance sheet instruments

In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Financial Statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the Consolidated Balance Sheet. Losses could be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and, in certain instances, may be unconditionally cancelable. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for credit losses on off-balance sheet instruments is included in other liabilities and the charge to income that establishes this liability is included in non-interest expense.

The Company also has off-balance sheet arrangements related to its derivative instruments. Derivative instruments are recognized in the Consolidated Financial Statements at fair value and their notional values are carried off-balance sheet. See "Note 12. Derivatives and Hedging Activities" of these Notes to Consolidated Financial Statements for further discussion.

Fair Values of Financial Instruments

Fair values of financial instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a three-level valuation hierarchy for disclosure of fair value measurement, as well as enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The Company uses various valuation approaches, including market, income, and/or cost approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.

• Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.

The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant who may purchase the asset or assume the liability, rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date.

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2019 and 2018. The estimated fair value amounts for December 31, 2019 and 2018 have been measured as of period-end, and have not been re-evaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end.

The information in "Note 16. Fair Value Accounting" of these Notes to Consolidated Financial Statements should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities.

Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, cash equivalents, and restricted cash

The carrying amounts reported on the Consolidated Balance Sheet for cash and due from banks approximate their fair value.

Money market investments

The carrying amounts reported on the Consolidated Balance Sheet for money market investments approximate their fair value.

Investment securities

The fair values of CRA investments, exchange-listed preferred stock, trust preferred securities, and certain corporate debt securities are based on quoted market prices and are categorized as Level 1 in the fair value hierarchy.

The fair values of debt securities are primarily determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings, and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy. For a small subset of securities, other pricing sources are used, including observed prices on publicly-traded securities and dealer quotes.

Restricted stock

WAB is a member of the Federal Reserve System and the FHLB and, accordingly, maintains investments in the capital stock of the FRB and the FHLB. WAB also maintains an investment in its primary correspondent bank. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. The fair values of these investments have been categorized as Level 2 in the fair value hierarchy.

Loans

The fair value of loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality and adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy, excluding impaired loans, which are categorized as Level 3.

Accrued interest receivable and payable

The carrying amounts reported on the Consolidated Balance Sheet for accrued interest receivable and payable approximate their fair value.

Derivative financial instruments

All derivatives are recognized on the Consolidated Balance Sheets at their fair value. The fair value for derivatives is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. As a result, the fair values have been categorized as Level 2 in the fair value hierarchy.

Deposits

The fair value disclosed for demand and savings deposits is by definition equal to the amount payable on demand at their reporting date (that is, their carrying amount), which the Company believes a market participant would consider in determining fair value. The carrying amount for variable-rate deposit accounts approximates their fair value. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on these deposits. The fair value measurement of the deposit liabilities is categorized as Level 2 in the fair value hierarchy.

FHLB advances and customer repurchase agreements

The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances and customer repurchase agreements have been categorized as Level 2 in the fair value hierarchy due to their short durations.

Subordinated debt

The fair value of subordinated debt is based on the market rate for the respective subordinated debt security. Subordinated debt has been categorized as Level 2 in the fair value hierarchy.

Junior subordinated debt

Junior subordinated debt is valued based on a discounted cash flow model which uses as inputs Treasury Bond rates and the 'BB' rated financial index. Junior subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Off-balance sheet instruments

The fair value of the Company’s off-balance sheet instruments (lending commitments and letters of credit) is based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, and the counterparties’ credit standing.

Recent Accounting Pronouncements

Recent accounting pronouncements

In June 2016, the FASB issued guidance within ASU 2016-13, Measurement of Credit Losses on Financial Instruments. The new standard significantly changes the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. The amendments in ASU 2016-13 to Topic 326, Financial Instruments - Credit Losses, require that an organization measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU also requires enhanced disclosures, including qualitative and quantitative disclosures that provide additional information about the amounts recorded in the financial statements. Additionally, the ASU amends the accounting for credit losses on AFS debt securities and purchased financial assets with credit deterioration. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company has completed its implementation of the new CECL standard, in all material respects, as model findings have been addressed, the Company's internal control CECL framework has been implemented, and accounting policies and governance processes have been finalized.

The following table summarizes the estimated allowance for credit losses related to financial assets and off-balance sheet credit exposures upon adoption of ASC 326:

	January 1, 2020
	Pre-ASC 326 Adoption		Post-ASC 326 Adoption		Impact of ASC 326 Adoption
	(in millions)
Assets:
Allowance for credit losses on HTM securities
Tax-exempt	$	—	$	3	$	3
Allowance for credit losses on loans	$	168	$	187	$	19
Liabilities:
Off-balance sheet credit exposures	$	9	$	24	$	15

As the impact to the Company was not significant, management elected to take the full charge to regulatory capital at the adoption date.

In August 2018, the FASB issued guidance within ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments within ASU 2018-13 remove, modify, and supplement the disclosure requirements for fair value measurements. Disclosure requirements that were removed include: the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additional disclosure requirements include: the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. With the exception of the above additional disclosure requirements, which will be applied prospectively, all other amendments should be applied retrospectively to all periods presented upon their effective date. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In August 2018, the FASB issued guidance within ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments in this Update require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The amendments in this Update also require that the capitalized implementation costs of a hosting arrangement that is a service contract be expensed over the term of the hosting arrangement. Presentation requirements include: expense related to the capitalized implementation costs should be presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, payments for capitalized implementation costs in the statement of cash flows should be classified in the same manner as payments made for fees associated with the hosting element, and capitalized implementation costs in the statement of financial position should be presented in the same line item that a prepayment for the fees of the associated

hosting arrangement would be presented. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this guidance is not expected to have a significant impact on the Company's Consolidated Financial Statements.

In April 2019, the FASB issued guidance within ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments in ASU 2019-04 clarify or correct the guidance in these Topics. With respect to Topic 326, ASU 2019-04 addresses a number of issues as it relates to the CECL standard including consideration of accrued interest, recoveries, variable-rate financial instruments, prepayments, and extension and renewal options, among other things, in the measurement of expected credit losses. The amendments to Topic 326 have the same effective dates as ASU 2016-13 and are not expected to have a significant impact on the Company’s Consolidated Financial Statements. With respect to Topic 815, Derivatives and Hedging, ASU 2019-04 clarifies issues related to partial-term hedges, hedged debt securities, and transitioning from a quantitative method of assessing hedge effectiveness to a more simplified method. The Company does not have partial-term hedges or any hedged debt securities and the transition issues discussed in the ASU 2019-04 are not applicable to the Company. Accordingly, the amendments to Topic 815 will not have an impact on the Company's Consolidated Financial Statements. With respect to Topic 825, Financial Instruments, on recognizing and measuring financial instruments, ASU 2019-04 addresses: 1) the scope of the guidance; 2) the requirement for remeasurement under ASC 820 when using the measurement alternative; 3) certain disclosure requirements; and 4) which equity securities have to be remeasured at historical exchange rates. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019 and are not expected to have a material impact on the Company’s Consolidated Financial Statements.

In May 2019, the FASB issued guidance within ASU 2019-05, Financial Instruments - Credit Losses, to provide entities with an option to irrevocably elect the fair value option for eligible financial assets measured at amortized cost. The election is to be applied on an instrument-by-instrument basis upon adoption of Topic 326 and is not available for either AFS or HTM debt securities. The amendments in ASU 2019-05 should be applied on a modified-retrospective basis through a cumulative-effect adjustment to the opening balance of retained earnings as of the date that an entity adopts the amendments in ASU 2016-13. The Company did not elect this fair value option as part of its adoption of ASU 2016-13 on January 1, 2020.

In November 2019, the FASB issued guidance within ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The amendments in ASU 2019-11 clarify or address specific issues about certain aspects of the amendments in ASU 2016-13, Measurement of Credit Losses on Financial Instruments. These issues include measurement and reporting requirements related to: 1) the allowance for credit losses for purchased assets with credit deterioration; 2) prepayment assumptions on existing troubled debt restructurings; 3) extension of disclosure relief for accrued interest receivable balances; and 4) expected credit losses on collateralized financial assets. The adoption of ASU 2019-11 is concurrent with ASU 2016-13 and, adoption of these amendments on January 1, 2020, did not have a significant impact on the Company's Consolidated Financial Statements.

In December 2019, the FASB issued guidance within ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 are intended to reduce the cost and complexity of applying ASC 740. The amendments that are applicable to the Company address: 1) franchise and other taxes partially based on income; 2) step-up in basis of goodwill in a business combination; 3) allocation of tax expense in separate entity financial statements; and 4) interim recognition of enactment of tax laws or rate changes. The amendments to Topic 740 are effective for interim and annual reporting periods beginning after December 15, 2020 and are not expected to have a material impact on the Company’s Consolidated Financial Statements.

Recently adopted accounting guidance

In February 2016, the FASB issued guidance within ASU 2016-02, Leases. The amendments in ASU 2016-02 to Topic 842, Leases, require lessees to recognize the lease assets and lease liabilities arising from operating leases in the statement of financial position. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The Company adopted the amendments to Topic 842 on January 1, 2019 using the modified retrospective approach. The Company elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, which allows entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted. The Company also elected to apply the package of practical expedients permitting entities to forgo reassessment of: 1) expired or existing contracts that may contain leases; 2) lease classification of expired or existing leases; and 3) initial direct costs for any existing leases. The Company established internal controls and implemented lease accounting software to facilitate the preparation of financial information and disclosures related to leases. The most significant impact of the new standard on the Company’s Consolidated Financial Statements was the recognition of a ROU asset and lease liability for operating leases for which the Company is the lessee. The accounting for finance and operating leases for which the Company is the lessor remains substantially unchanged. Upon adoption of this guidance on January 1, 2019, the Company recorded

a ROU asset and corresponding lease liability of $42.5 million and $46.1 million, respectively, on the Consolidated Balance Sheet. No cumulative effect adjustment to retained earnings resulted from adoption of this guidance. The new standard did not have a material impact on the Company’s results of operations or cash flows.

In March 2017, the FASB issued guidance within ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. The amendments in ASU 2017-08 to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs, shorten the amortization period for certain purchased callable debt securities held at a premium to the earliest call date, which more closely align the amortization period of premiums and discounts to expectations incorporated in market pricing on the underlying securities. Under current GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. As of December 31, 2019, the Company does not hold these types of securities; therefore, adoption of this guidance did not have an impact on the Company's Consolidated Financial Statements.

In June 2018, the FASB issued guidance within ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments in ASU 2018-07 to Topic 718, Compensation-Stock Compensation, are intended to align the accounting for share-based payment awards issued to employees and nonemployees. Changes to the accounting for nonemployee awards include: 1) equity classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; 2) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; and 3) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The new guidance also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The Company's share-based payment awards to nonemployees consist only of grants made to the Company's BOD as compensation solely related to the individual's role as a Director. As such, in accordance with ASC 718, the Company accounts for these share-based payment awards to its Directors in the same manner as share-based payment awards for its employees. Accordingly, the adoption of this guidance did not have an impact on the accounting for the Company's share-based payment awards to its Directors.

In July 2018, the FASB issued guidance within ASU 2018-09, Codification Improvements. The amendments in ASU 2018-09 are intended to clarify or correct unintended guidance in the FASB Codification and affect a wide variety of Topics in the Codification. The topics that are applicable to the Company include: 1) debt modifications and extinguishments; 2) stock compensation; and 3) derivatives and hedging. For debt modifications and extinguishments, the amendment clarifies that, in an early extinguishment of debt for which the fair value option has been elected, the net carrying amount of the extinguished debt is equal to its fair value at the reacquisition date, and upon extinguishment, the cumulative amount of the gain or loss on the extinguished debt that resulted from changes in instrument-specific credit risk should be presented in net income. The Company has junior subordinated debt that is recorded at fair value at each reporting period due to election of the FVO. Accordingly, if, in the future, the Company chooses to repay this debt prior to its contractual maturity, this amendment would be applicable. For stock compensation, the amendment clarifies that excess tax benefits or tax deficiencies should be recognized in the period in which the amount of the tax deduction is determined, which is typically when an award is exercised (in the case of share options) or vests (in the case of non-vested stock awards). The Company already records excess tax benefits or tax deficiencies in the periods in which the tax deduction is determined. Therefore, adoption of this amendment did not have an effect on the Company's accounting for excess tax benefits or tax deficiencies. For derivatives and hedging, previous guidance permits derivatives to be offset only when all four conditions (including the intent to set off) are met. This amendment clarifies that the intent to set off is not required to offset fair value amounts recognized for derivative instruments that are executed with the same counterparty under a master netting agreement. This amendment did not have an effect on the offsetting of the Company's derivative assets and liabilities.

Life Insurance, Corporate or Bank Owned [Text Block]

Bank owned life insurance

BOLI is carried at its cash surrender value with changes recorded in other non-interest income in the Consolidated Income Statements. The face amount of the underlying policies including death benefits was $359.0 million and $358.7 million as of December 31, 2019 and 2018, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds.

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Qualifying Debt Junior Subordinated Debt Table (Tables)

12 Months Ended

Dec. 31, 2019

Junior Subordinated Debt Table [Abstract]

Schedule of Subordinated Borrowing [Table Text Block]

		December 31,
Name of Trust	Maturity	2019			2018
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(4,812		)	(17,812		)
Junior subordinated debt, at fair value		$	61,685		$	48,685
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(4,845		)	(5,155		)
Junior subordinated debt, at amortized cost		$	12,682		$	12,372
Total junior subordinated debt		$	74,367		$	61,057

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Employee Benefit Plan (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Schedule of Net Funded Status [Table Text Block]

The following table reflects the accumulated benefit obligation and funded status of the SERP:

	December 31,
	2019			2018
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of period	$	9,991		$	8,891
Service cost	632			614
Interest cost	569			512
Actuarial losses/(gains)	834			41
Expected benefits paid	(270		)	(67		)
Projected benefit obligation at end of year	$	11,756		$	9,991
Unfunded projected/accumulated benefit obligation	(11,756		)	(9,991		)
Additional liability	$	—		$	—
Weighted average assumptions to determine benefit obligation
Discount rate	5.25		%	5.75		%
Rate of compensation increase	3.00		%	3.00		%

Schedule of Net Benefit Costs [Table Text Block]

The components of net periodic benefit cost recognized for the year ended December 31, 2019 and 2018 and the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2020 are as follows:

	Year Ended December 31,
	2020			2019			2018
	(in thousands)
Components of net periodic benefit cost
Service cost	$	511		$	632		$	614
Interest cost	612			569			512
Amortization of prior service cost	19			64			103
Amortization of actuarial (gains)/losses	(35		)	(159		)	(164		)
Net periodic benefit cost	$	1,107		$	1,106		$	1,065
Other comprehensive income (cost)	$	(16	)	$	(95	)	$	(61	)

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Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data Disclosure [Abstract]

Condensed Financial Statements [Table Text Block]

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Year Ended December 31, 2019
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	315,420		$	315,608		$	302,848		$	291,168
Interest expense	43,447			49,186			48,167			43,832
Net interest income	271,973			266,422			254,681			247,336
Provision for credit losses	4,000			4,000			7,000			3,500
Net interest income after provision for credit losses	267,973			262,422			247,681			243,836
Non-interest income	16,027			19,441			14,218			15,410
Non-interest expense	(129,699		)	(125,955		)	(114,213		)	(112,914		)
Income before provision for income taxes	154,301			155,908			147,686			146,332
Income tax expense	26,236			28,533			24,750			25,536
Net income	$	128,065		$	127,375		$	122,936		$	120,796
Earnings per share:
Basic	$	1.26		$	1.25		$	1.19		$	1.16
Diluted	$	1.25		$	1.24		$	1.19		$	1.16

	Year Ended December 31, 2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	281,968		$	265,216		$	251,602		$	234,697
Interest expense	38,455			31,178			27,494			20,477
Net interest income	243,513			234,038			224,108			214,220
Provision for credit losses	6,000			6,000			5,000			6,000
Net interest income after provision for credit losses	237,513			228,038			219,108			208,220
Non-interest income	13,611			4,418			13,444			11,643
Non-interest expense	(111,129		)	(113,841		)	(102,548		)	(98,149		)
Income before provision for income taxes	139,995			118,615			130,004			121,714
Income tax expense	20,909			7,492			25,325			20,814
Net income	$	119,086		$	111,123		$	104,679		$	100,900
Earnings per share:
Basic	$	1.14		$	1.06		$	1.00		$	0.97
Diluted	$	1.13		$	1.05		$	0.99		$	0.96

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Investment Securities - Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	$ 4,023	$ 10,114
Available-for-sale securities, Less Than Twelve Months, Fair Value	799,113	574,255
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	15,847	74,840
Available-for-sale securities, Twelve Months or Longer, Fair Value	585,688	2,086,619
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	19,870	84,954
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	1,384,801	2,660,874
Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	149	3,868
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	24,325	91,095
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	3,552
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	0	69,991
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain	149	7,420
Held-to-maturity Securities, Fair Value	24,325	161,086
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	422	3,562
Available-for-sale securities, Less Than Twelve Months, Fair Value	67,150	209,767
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	0	4,191
Available-for-sale securities, Twelve Months or Longer, Fair Value	0	72,382
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	422	7,753
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	67,150	282,149
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses		0
Available-for-sale securities, Less Than Twelve Months, Fair Value		0
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses		1,812
Available-for-sale securities, Twelve Months or Longer, Fair Value		38,188
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total		1,812
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total		38,188
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	0	16
Available-for-sale securities, Less Than Twelve Months, Fair Value	0	5,013
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	5,166	5,633
Available-for-sale securities, Twelve Months or Longer, Fair Value	94,834	94,367
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	5,166	5,649
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	94,834	99,380
Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	1,740	1,363
Available-for-sale securities, Less Than Twelve Months, Fair Value	385,643	141,493
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	2,077	34,109
Available-for-sale securities, Twelve Months or Longer, Fair Value	150,419	1,215,490
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	3,817	35,472
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	536,062	1,356,983
Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	1,776	5,173
Available-for-sale securities, Less Than Twelve Months, Fair Value	337,285	217,982
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	2,554	19,339
Available-for-sale securities, Twelve Months or Longer, Fair Value	258,791	537,316
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	4,330	24,512
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	596,076	755,298
Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	0	0
Available-for-sale securities, Less Than Twelve Months, Fair Value	0	0
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	4,960	3,383
Available-for-sale securities, Twelve Months or Longer, Fair Value	27,040	28,617
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	4,960	3,383
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	27,040	28,617
Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses	85	0
Available-for-sale securities, Less Than Twelve Months, Fair Value	9,035	0
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses	1,090	6,361
Available-for-sale securities, Twelve Months or Longer, Fair Value	54,604	98,275
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total	1,175	6,361
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total	$ 63,639	98,275
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Available-for-sale securities, Less Than Twelve Months, Aggregate Losses		0
Available-for-sale securities, Less Than Twelve Months, Fair Value		0
Available-for-sale securities, Twelve Months or Longer, Aggregate Losses		12
Available-for-sale securities, Twelve Months or Longer, Fair Value		1,984
Available-for-sale securities, Continuous Unrealized Loss Position, Aggregate Losses, Total		12
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value, Total		$ 1,984

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Loans, Leases and Allowance for Credit Losses - Allowances for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Valuation Allowance [Line Items]
Beginning Balance				$ 152,717				$ 140,050	$ 152,717	$ 140,050	$ 124,704
Charge-offs									9,122	16,420	11,004
Recoveries									(5,702)	(6,087)	(9,100)
Provision for credit losses	$ (4,000)	$ (4,000)	$ (7,000)	(3,500)	$ (6,000)	$ (6,000)	$ (5,000)	(6,000)	(18,500)	(23,000)	(17,250)
Ending balance	167,797				152,717				167,797	152,717	140,050
Construction and land development [Member]
Valuation Allowance [Line Items]
Beginning Balance				22,513				19,599	22,513	19,599	21,175
Charge-offs									141	1	0
Recoveries									(91)	(1,433)	(1,229)
Provision for credit losses									(1,431)	(1,482)	(2,805)
Ending balance	23,894				22,513				23,894	22,513	19,599
Commercial real estate [Member]
Valuation Allowance [Line Items]
Beginning Balance				34,829				31,648	34,829	31,648	25,673
Charge-offs									139	233	2,269
Recoveries									(909)	(1,237)	(2,897)
Provision for credit losses									(11,674)	(2,177)	(5,347)
Ending balance	47,273				34,829				47,273	34,829	31,648
Residential real estate [Member]
Valuation Allowance [Line Items]
Beginning Balance				11,276				5,500	11,276	5,500	3,851
Charge-offs									594	1,038	447
Recoveries									(412)	(947)	(1,778)
Provision for credit losses									(2,620)	(5,867)	(318)
Ending balance	13,714				11,276				13,714	11,276	5,500
Commercial And Industrial [Member]
Valuation Allowance [Line Items]
Beginning Balance				83,118				82,527	83,118	82,527	73,333
Charge-offs									8,120	15,034	8,186
Recoveries									(4,265)	(2,427)	(3,112)
Provision for credit losses									(3,039)	(13,198)	(14,268)
Ending balance	82,302				83,118				82,302	83,118	82,527
Consumer [Member]
Valuation Allowance [Line Items]
Beginning Balance				$ 981				$ 776	981	776	672
Charge-offs									128	114	102
Recoveries									(25)	(43)	(84)
Provision for credit losses									(264)	(276)	(122)
Ending balance	$ 614				$ 981				$ 614	$ 981	$ 776

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Other Borrowings - Company's Borrowings (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Short Term
Federal Funds Purchased	$ 0	$ 256,000
FHLB advances	0	235,000
Short-term Debt	0	491,000
Customer repurchase agreements	16,675	22,411
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity	$ 4,500,000	$ 2,500,000

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Premises and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Buildings and Improvements, Gross	$ 91,574	$ 89,930
Land and Land Improvements	32,954	32,954
Furniture Fixtures And Equipment Gross	53,621	42,729
Leasehold Improvements, Gross	28,477	25,919
Construction in Progress, Gross	10,449	6,302
Property, Plant and Equipment, Gross	217,075	197,834
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(91,237)	(78,360)
Premises and equipment, net	$ 125,838	$ 119,474

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Loans, Leases and Allowance for Credit Losses - Average Investment in Impaired Loans by Loan Class (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	$ 121,287	$ 104,825	$ 104,866
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	45,223	52,496	33,519
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	13,882	19,425	16,893
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	159	300	204
Troubled Debt Restructured Loans [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	52,900	51,200	55,500
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	15,829	7,682	18,692
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	25,163	15,375	22,000
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	0	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	13,315	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Impaired [Line Items]
Total average investment in impaired loans by loan class	$ 7,716	$ 9,547	$ 13,558

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Fair Value Accounting - Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	$ 116,303	$ 112,252
Impaired loans with an allowance recorded	20,979	986
Impaired loans without specific valuation allowance	95,324	111,266
Repossessed Assets	13,850	17,924
Impaired Financing Receivables, With No related Allowance, Balances with Charge-offs	3,300	19,400
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	18,203	305
Impaired loans without specific valuation allowance	92,069	91,821
Repossessed Assets	13,850	17,924
Fair Value, Nonrecurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans without specific valuation allowance	0	0
Repossessed Assets	0	0
Fair Value, Nonrecurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans without specific valuation allowance	0	0
Repossessed Assets	0	0
Fair Value, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	110,272	92,126
Impaired loans with an allowance recorded	18,203	305
Impaired loans without specific valuation allowance	92,069	91,821
Repossessed Assets	$ 13,850	$ 17,924
Loans and Finance Receivables [Member] | Third Party Appraisal [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Costs to sell	Costs to sell
Loans and Finance Receivables [Member] | Discount Rate [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Contractual loan rate	Contractual loan rate
Loans and Finance Receivables [Member] | Scheduled Cash Collections [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Probability of default	Probability of default
Loans and Finance Receivables [Member] | Proceeds from Non-Real Estate Collateral [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Loss given default	Loss given default
Other Assets [Member] | Third Party Appraisal [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Level 3 Fair Value Measurement Inputs	Costs to sell	Costs to sell

XML

Commitments and Contingencies Concentration of Lending Activities (Details)	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Percent of commercial real estate loans owner occupied	31.00%	36.00%

XML

Leases (Notes)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lessee, Operating Leases [Text Block]

5. LEASES

Adoption of ASU 2016-02, Leases

On January 1, 2019, the Company adopted the amendments to ASC 842, Leases, which requires lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. The Company adopted the new lease guidance using the modified retrospective approach and elected the transition option issued under ASU 2018-11, Leases (Topic 842) Targeted Improvements, allowing entities to continue to apply the legacy guidance in ASC 840, Leases, to prior periods, including disclosure requirements. Accordingly, prior period financial results and disclosures have not been adjusted.

The Company has operating leases under which it leases its branch offices, corporate headquarters, other offices, and data facility centers. Upon adoption of the new lease guidance, on January 1, 2019, the Company recorded a ROU asset and corresponding lease liability of $42.5 million and $46.1 million, respectively, on the Consolidated Balance Sheet. As of December 31, 2019, the Company's operating lease ROU asset and operating lease liability totaled $72.6 million and $78.1 million, respectively. The increase in the operating lease ROU asset and the operating lease liability from the adoption date is due to execution of multiple office lease extensions and new office lease agreements subsequent to the adoption date. A weighted average discount rate of 3.08% was used in the measurement of the ROU asset and lease liability as of December 31, 2019.

The Company's leases have remaining lease terms of one to 11 years, with a weighted average lease term of 8.4 years at December 31, 2019. Some leases include multiple five-year renewal options. The Company’s decision to exercise these renewal options is based on an assessment of its current business needs and market factors at the time of the renewal. Currently, the Company has

no leases for which the option to renew is reasonably certain and therefore, options to renew were not factored into the calculation of its ROU asset and lease liability as of December 31, 2019.

The following is a schedule of the Company's operating lease liabilities by contractual maturity as of December 31, 2019:

	(in thousands)
2020	$	12,369
2021	10,413
2022	9,224
2023	9,060
2024	9,007
Thereafter	40,072
Total lease payments	$	90,145
Less: imputed interest	12,033
Total present value of lease liabilities	$	78,112

The Company also has additional operating leases for its corporate headquarters and a branch location that have not yet commenced as of December 31, 2019. The aggregate future commitment related to the additional leases total $3.1 million. These operating leases will commence within the next 12 months and will have lease terms of five and 11 years.

Total operating lease costs of $12.9 million and other lease costs of $4.0 million, which include common area maintenance, parking, and taxes during the year ended December 31, 2019, were included as part of occupancy expense. Short-term lease costs were not material for the year ended December 31, 2019. For the years ended December 31, 2018 and 2017, rent expense associated with the Company's operating leases totaled $11.0 million and $10.4 million, respectively.

The below table shows the supplemental cash flow information related to the Company's operating leases for the year ended December 31, 2019:

	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,435
Right-of-use assets obtained in exchange for new operating lease liabilities	43,681

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Qualifying Debt Qualifying Debt (Notes)

12 Months Ended

Dec. 31, 2019

Qualifying Debt Disclosure [Abstract]

Subordinated Borrowings Disclosure [Text Block]

9. QUALIFYING DEBT

Subordinated Debt

The Parent has $175.0 million of subordinated debentures, which were recorded net of issuance costs of $5.5 million, and mature July 1, 2056. Beginning on or after July 1, 2021, the Company may redeem the debentures, in whole or in part, at their principal amount plus any accrued and unpaid interest. The debentures have a fixed interest rate of 6.25% per annum.

WAB has $150.0 million of subordinated debt, which was recorded net of debt issuance costs of $1.8 million, and matures July 15, 2025. The subordinated debt has a fixed interest rate of 5.00% through June 30, 2020 and then converts to a variable rate of 3.20% plus three-month LIBOR through maturity.

To hedge the interest rate risk on the Company's subordinated debt issuances, the Company entered into fair value interest rate hedges with receive fixed/pay variable swaps.

The carrying value of all subordinated debt issuances, which includes the fair value of the related hedges, totals $319.2 million and $299.4 million at December 31, 2019 and 2018, respectively.

Junior Subordinated Debt

The Company has formed or acquired through acquisition eight statutory business trusts, which exist for the exclusive purpose of issuing Cumulative Trust Preferred Securities.

The Company's junior subordinated debt has contractual balances and maturity dates as follows: 

		December 31,
Name of Trust	Maturity	2019			2018
At fair value		(in thousands)
BankWest Nevada Capital Trust II	2033	$	15,464		$	15,464
Intermountain First Statutory Trust I	2034	10,310			10,310
First Independent Statutory Trust I	2035	7,217			7,217
WAL Trust No. 1	2036	20,619			20,619
WAL Statutory Trust No. 2	2037	5,155			5,155
WAL Statutory Trust No. 3	2037	7,732			7,732
Total contractual balance		66,497			66,497
FVO on junior subordinated debt		(4,812		)	(17,812		)
Junior subordinated debt, at fair value		$	61,685		$	48,685
At amortized cost
Bridge Capital Holdings Trust I	2035	$	12,372		$	12,372
Bridge Capital Holdings Trust II	2036	5,155			5,155
Total contractual balance		17,527			17,527
Purchase accounting adjustment, net of accretion (1)		(4,845		)	(5,155		)
Junior subordinated debt, at amortized cost		$	12,682		$	12,372
Total junior subordinated debt		$	74,367		$	61,057

(1) The purchase accounting adjustment is being accreted over the remaining life of the trusts, pursuant to accounting guidance.

With the exception of debt issued by Bridge Capital Trust I and Bridge Capital Trust II, junior subordinated debt is recorded at fair value at each reporting date due to the FVO election made by the Company under ASC 825. The Company did not make the FVO election for the junior subordinated debt acquired as part of the Bridge acquisition. Accordingly, the carrying value of these trusts does not reflect the current fair value of the debt and includes a fair market value adjustment established at acquisition that is being accreted over the remaining life of the trusts.

The weighted average interest rate of all junior subordinated debt as of December 31, 2019 was 4.25%, which is three-month LIBOR plus the contractual spread of 2.34%, compared to a weighted average interest rate of 5.15% at December 31, 2018.

In the event of certain changes or amendments to regulatory requirements or federal tax rules, the debt is redeemable in whole. The obligations under these instruments are fully and unconditionally guaranteed by the Company and rank subordinate and junior in right of payment to all other liabilities of the Company. Based on guidance issued by the FRB, the Company's securities continue to qualify as Tier 1 Capital.

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Other Borrowings (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Company's Borrowings

The following table summarizes the Company’s borrowings as of December 31, 2019 and 2018: 

	December 31,
	2019		2018
	(in thousands)
Short-Term:
Federal funds purchased	$	—	$	256,000
FHLB advances	—		235,000
Total short-term borrowings	$	—	$	491,000

XML

Label	Element	Value
Treasury Stock [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ (40,173,000)
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(26,362,000)
AOCI Attributable to Parent [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(4,203,000)
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(4,695,000)
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	1,424,540,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 1,400,140,000
Common Stock [Member]
Shares, Issued	us-gaap_SharesIssued	105,487,000
Shares, Issued	us-gaap_SharesIssued	105,071,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 10,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	10,000
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	849,524,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 522,974,000

XML

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

	December 31,
	2019			2018
	(in thousands)
Bank premises	$	91,574		$	89,930
Land and improvements	32,954			32,954
Furniture, fixtures, and equipment	53,621			42,729
Leasehold improvements	28,477			25,919
Construction in progress	10,449			6,302
Total	217,075			197,834
Accumulated depreciation and amortization	(91,237		)	(78,360		)
Premises and equipment, net	$	125,838		$	119,474

XML

Quarterly Financial Data (Notes)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data Disclosure [Abstract]

Quarterly Financial Information

23. QUARTERLY FINANCIAL DATA (UNAUDITED)

	Year Ended December 31, 2019
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	315,420		$	315,608		$	302,848		$	291,168
Interest expense	43,447			49,186			48,167			43,832
Net interest income	271,973			266,422			254,681			247,336
Provision for credit losses	4,000			4,000			7,000			3,500
Net interest income after provision for credit losses	267,973			262,422			247,681			243,836
Non-interest income	16,027			19,441			14,218			15,410
Non-interest expense	(129,699		)	(125,955		)	(114,213		)	(112,914		)
Income before provision for income taxes	154,301			155,908			147,686			146,332
Income tax expense	26,236			28,533			24,750			25,536
Net income	$	128,065		$	127,375		$	122,936		$	120,796
Earnings per share:
Basic	$	1.26		$	1.25		$	1.19		$	1.16
Diluted	$	1.25		$	1.24		$	1.19		$	1.16

	Year Ended December 31, 2018
	Fourth Quarter			Third Quarter			Second Quarter			First Quarter
	(in thousands, except per share amounts)
Interest income	$	281,968		$	265,216		$	251,602		$	234,697
Interest expense	38,455			31,178			27,494			20,477
Net interest income	243,513			234,038			224,108			214,220
Provision for credit losses	6,000			6,000			5,000			6,000
Net interest income after provision for credit losses	237,513			228,038			219,108			208,220
Non-interest income	13,611			4,418			13,444			11,643
Non-interest expense	(111,129		)	(113,841		)	(102,548		)	(98,149		)
Income before provision for income taxes	139,995			118,615			130,004			121,714
Income tax expense	20,909			7,492			25,325			20,814
Net income	$	119,086		$	111,123		$	104,679		$	100,900
Earnings per share:
Basic	$	1.14		$	1.06		$	1.00		$	0.97
Diluted	$	1.13		$	1.05		$	0.99		$	0.96

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, Tax	$ 3,197	$ (1,857)	$ 2,220
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	61,006	(35,192)	2,994
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2,376)	5,773	(1,444)
Net income	499,171	435,788	325,492
Other comprehensive income (loss), net:
Unrealized gain (loss) on AFS securities, net of tax effect of $(23,205), $13,354, and $(3,973), respectively	71,222	(40,808)	6,334
Unrealized (loss) gain on SERP, net of tax effect of $138, $24, and $(79), respectively	(412)	(77)	264
Change in unrealized (loss) gain on junior subordinated debt, net of tax	(9,804)	5,693	(3,604)
Realized (gain) loss on sale of AFS securities included in income, net of tax effect of $776, $(1,883), and $899, respectively	(2,376)	5,773	(1,444)
Net other comprehensive income (loss)	58,630	(29,419)	1,550
Accumulated other comprehensive income (loss)	25,008	(33,622)	(3,145)
Comprehensive income	557,801	406,369	327,042
Unrealized holding gains (losses) on AFS
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	71,222	(40,808)	6,334
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2,232)	5,773	(1,444)
Other comprehensive income (loss), net:
Net other comprehensive income (loss)	68,990	(35,035)	4,890
Accumulated other comprehensive income (loss)	21,399	(47,591)	(10,026)
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(9,804)	5,693	(3,604)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Other comprehensive income (loss), net:
Net other comprehensive income (loss)	(9,804)	5,693	(3,604)
Accumulated other comprehensive income (loss)	3,629	13,433	6,352
Impairment loss on securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(144)	0	0
Other comprehensive income (loss), net:
Net other comprehensive income (loss)	(144)	0	0
Accumulated other comprehensive income (loss)	0	144	144
Supplemental Employee Retirement Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(412)	(77)	264
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Other comprehensive income (loss), net:
Net other comprehensive income (loss)	(412)	(77)	264
Accumulated other comprehensive income (loss)	$ (20)	$ 392	$ 385

XML

Document and Entity Information - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Feb. 24, 2020	Jun. 30, 2019
Entity Information [Line Items]
Document Annual Report	true
Document Transition Report	false
Entity Address, Address Line One	One E. Washington Street, Suite 1400
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Incorporation, State or Country Code	DE
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	WESTERN ALLIANCE BANCORPORATION
City Area Code	602
Local Phone Number	389-3500
Entity Central Index Key	0001212545
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Shares Issued, Price Per Share	$ 44.72
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		102,479,213
Entity Shell Company	false
Entity Public Float			$ 4,280
Entity File Number	001-32550
Entity Tax Identification Number	88-0365922
Entity Address, Postal Zip Code	85004
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.0001 Par Value
Trading Symbol	WAL
Security Exchange Name	NYSE
Subordinated Debt [Member]
Entity Information [Line Items]
Title of 12(b) Security	6.25% Subordinated Debentures due 2056
Trading Symbol	WALA
Security Exchange Name	NYSE

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Nature of operation

WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of deposit, lending, treasury management, international banking, and online banking products and services through its wholly-owned banking subsidiary, WAB.

WAB operates the following full-service banking divisions: ABA, BON, FIB, Bridge, and TPB. The Company also serves business customers through a national platform of specialized financial services. In addition, the Company has two non-bank subsidiaries, LVSP, which held and managed certain OREO properties, and CSI, a captive insurance company formed and licensed under the laws of the State of Arizona and established as part of the Company's overall enterprise risk management strategy.

Basis of presentation

The accounting and reporting policies of the Company are in accordance with GAAP and conform to practices within the financial services industry. The accounts of the Company and its consolidated subsidiaries are included in the Consolidated Financial Statements.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management's estimates and judgments are ongoing and are based on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities, as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Actual results may differ from those estimates and assumptions used in the Consolidated Financial Statements and related notes. Material estimates that are particularly susceptible to significant changes in the near term relate to: the determination of the allowance for credit losses; certain assets and liabilities carried at fair value; and accounting for income taxes.

Principles of consolidation

As of December 31, 2019, WAL has the following significant wholly-owned subsidiaries: WAB and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.

The Bank has the following significant wholly-owned subsidiaries: WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; WA PWI, which holds certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; and BW Real Estate, Inc., which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities.

The Company does not have any other significant entities that should be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation.

Reclassifications

Certain amounts reported in prior periods may have been reclassified in the Consolidated Financial Statements to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Cash and cash equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks (including cash items in process of clearing), and federal funds sold. Cash flows from loans originated by the Company and customer deposit accounts are reported net.

The Company maintains deposit accounts with other banks, which at times may exceed federally insured limits. The Company has not experienced any losses in such accounts.

Cash reserve requirements

Depository institutions are required by law to maintain reserves against their transaction deposits. The reserves must be held in cash or with the FRB. Banks are permitted to meet this requirement by maintaining the specified amount as an average balance over a two-week period. The total of reserve balances was approximately $164.1 million and $145.9 million as of December 31, 2019 and 2018, respectively.

Investment securities

Investment securities include debt securities and equity securities. Debt securities may be classified as HTM, AFS, or trading. The appropriate classification is initially decided at the time of purchase. Securities classified as HTM are those debt securities that the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or general economic conditions. These securities are carried at amortized cost. The sale of an HTM security within three months of its maturity date or after the majority of the principal outstanding has been collected is considered a maturity for purposes of classification and disclosure.

Securities classified as AFS or trading securities are reported as an asset on the Consolidated Balance Sheet at their estimated fair value. As the fair values of AFS debt securities change, the changes are reported net of income tax as an element of OCI, except for other-than-temporarily-impaired securities. When AFS debt securities are sold, the unrealized gains or losses are reclassified from OCI to non-interest income. The changes in the fair values of trading securities are reported in non-interest income. Securities classified as AFS are securities that the Company does not have the positive intent and ability to hold to maturity. Any decision to sell a security classified as AFS would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, decline in credit quality, and regulatory capital considerations.

Equity securities are reported as an asset on the Consolidated Balance Sheet at their estimated fair value, with fair value changes recognized as part of non-interest income in the Consolidated Income Statement.

Interest income is recognized based on the coupon rate and increased by accretion of discounts earned or decreased by the amortization of premiums paid over the contractual life of the security, adjusted for prepayments estimates, using the interest method.

In estimating whether there are any OTTI losses on AFS securities, management considers the: 1) length of time and the extent to which the fair value has been less than amortized cost; 2) financial condition and near term prospects of the issuer; 3) impact of changes in market interest rates; and 4) intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value and whether it is not more-likely-than-not the Company would be required to sell the security.

Declines in the fair value of individual AFS securities that are deemed to be other-than-temporary are reflected in earnings when identified. The fair value of the debt security then becomes the new cost basis. For individual debt securities where the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery of its amortized cost basis, the other-than-temporary decline in fair value of the debt security related to: 1) credit loss is recognized in earnings; and 2) interest rate, market, or other factors is recognized in OCI.

For individual debt securities where the Company either intends to sell the security or when it is more-likely-than-not the Company will not recover all of its amortized cost, the OTTI is recognized in earnings equal to the entire difference between the security's cost basis and its fair value at the balance sheet date. For individual debt securities for which a credit loss has been recognized in earnings, interest accruals and amortization and accretion of premiums and discounts are suspended when the credit loss is recognized. Interest received after accruals have been suspended is recognized in income on a cash basis.

Restricted stock

WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in capital stock of the FHLB based on the borrowing capacity used. The Bank also maintains an investment in its primary correspondent bank. These investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted investment securities. These investments are carried at cost, which is equal to the value at which they may be redeemed. The dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. No impairment has been recorded to date.

Loans held for sale

Loans held for sale consist of loans that the Company originates (or acquires) and intends to sell. These loans are carried at the lower of aggregate cost or fair value. Fair value is determined based on available market data for similar assets, expected cash flows, and appraisals of underlying collateral or the credit quality of the borrower. Gains and losses on the sale of loans are recognized pursuant to ASC 860, Transfers and Servicing. Interest income on these loans is accrued daily and loan origination fees and costs are deferred and included in the cost basis of the loan. The Company issues various representations and warranties associated with these loan sales. The Company has not experienced any losses as a result of these representations and warranties.

Loans, held for investment

The Company generally holds loans for investment and has the intent and ability to hold loans until their maturity. Therefore, they are reported at book value. Net loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, purchase accounting fair value adjustments, and an allowance for credit losses. In addition, the book values of loans subject to a fair value hedge are adjusted for changes in value attributable to the effective portion of the hedged benchmark interest rate risk.

The Company may also acquire loans through a business combination. These acquired loans are recorded at their estimated fair value on the date of purchase, which is comprised of unpaid principal adjusted for estimated credit losses and interest rate fair value adjustments. Loans are evaluated individually at the acquisition date to determine if there has been credit deterioration since origination. Such loans may then be aggregated and accounted for as a pool of loans based on common characteristics. When the Company acquires such loans, the yield that may be accreted (accretable yield) is limited to the excess of the Company’s estimate of undiscounted cash flows expected to be collected over the Company’s initial investment in the loan. The excess of contractual cash flows over the cash flows expected to be collected may not be recognized as an adjustment to yield, loss, or a valuation allowance. Subsequent increases in cash flows expected to be collected generally are recognized prospectively through adjustment of the loan’s yield over the remaining life. Subsequent decreases to cash flows expected to be collected are recognized as impairment losses. The Company may not carry over or create a valuation allowance in the initial accounting for loans acquired under these circumstances. For purchased loans that are not deemed impaired at the acquisition date, fair value adjustments attributable to both credit and interest rates are accreted (or amortized) over the contractual life of the individual loan. For additional information, see "Note 3. Loans, Leases and Allowance for Credit Losses" of these Notes to Consolidated Financial Statements.

Deferred loan fees and costs, premiums and discounts, and certain purchase accounting fair value adjustments, are amortized over the contractual life of the loan through interest income. If a loan has scheduled payments, the amortization of the net deferred loan fee is calculated using the interest method over the contractual life of the loan. If a loan does not have scheduled payments, such as a line of credit, the net deferred loan fee is recognized as interest income on a straight-line basis over the contractual life of the loan commitment. Commitment fees based on a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. When loans are repaid, any remaining unamortized balances of premiums, discounts, or net deferred fees are recognized as interest income.

Non-accrual loans: When a borrower discontinues making payments as contractually required by the note, the Company must determine whether it is appropriate to continue to accrue interest. The Company ceases accruing interest income when the loan has become delinquent by more than 90 days or when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely. The Company may decide to continue to accrue interest on certain loans more than 90 days delinquent if the loans are well secured by collateral and in the process of collection.

For all loan types, when a loan is placed on non-accrual status, all interest accrued but uncollected is reversed against interest income in the period in which the status is changed, and the Company makes a loan-level decision to apply either the cash basis or cost recovery method. The Company recognizes income on a cash basis only for those non-accrual loans for which the collection of the remaining principal balance is not in doubt. Under the cost recovery method, subsequent payments received from the customer are applied to principal and generally no further interest income is recognized until the principal has been paid in full or until circumstances have changed such that payments are again consistently received as contractually required.

Impaired loans: A loan is identified as impaired when it is no longer probable that interest and principal will be collected according to the contractual terms of the original loan agreement. Impaired loans are measured for reserve requirements in accordance with ASC 310, Receivables, based on the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, at the loan's observable market price or the fair value of the collateral less applicable disposition costs if the loan is collateral dependent. The amount of an impairment reserve, if any, and any subsequent changes are recorded as a provision for credit losses. Losses are recorded as a charge-off when losses are confirmed. In addition to management's internal loan review process, regulators may from time to time direct the Company to modify loan grades, loan impairment calculations, or loan impairment methodology.

Troubled Debt Restructured Loans: A TDR loan is a loan in which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. A TDR loan is also considered impaired. A TDR loan may be returned to accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectability of the total contractual restructured principal and interest is no longer in doubt. However, such loans continue to be considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

Allowance for credit losses

Credit risk is inherent in the business of extending loans and leases to borrowers, for which the Company must maintain an adequate allowance for credit losses. The allowance for credit losses is established through a provision for credit losses recorded to expense. Loans are charged against the allowance for credit losses when management believes that the contractual principal or interest will not be collected. Subsequent recoveries, if any, are credited to the allowance. The allowance is an amount believed adequate to absorb estimated probable losses on existing loans that may become uncollectable, based on evaluation of the collectability of loans and prior credit loss experience, together with other factors. The Company formally re-evaluates and establishes the appropriate level of the allowance for credit losses on a quarterly basis.

The allowance consists of specific and general components. The specific allowance applies to impaired loans. For impaired collateral dependent loans, the reserve is calculated based on the collateral value, net of estimated disposition costs. Generally, the Company obtains an independent collateral valuation analysis for each loan over a specified dollar threshold every 12 months. Loans not collateral dependent are evaluated based on the expected future cash flows discounted at the original contractual interest rate.

The general allowance covers all non-impaired loans and incorporates several quantitative and qualitative factors, which are used for all of the Company's portfolio segments. Quantitative factors include company-specific, 10-year historical net charge-offs stratified by loans with similar characteristics. Qualitative factors include: 1) levels of and trends in delinquencies and impaired loans; 2) levels of and trends in charge-offs and recoveries; 3) trends in volume and terms of loans; 4) changes in underwriting standards or lending policies; 5) experience, ability, depth of lending staff; 6) national and local economic trends and conditions; 7) changes in credit concentrations; 8) out-of-market exposures; 9) changes in quality of loan review system; and 10) changes in the value of underlying collateral.

Due to the credit concentration of the Company's loan portfolio in real estate secured loans, the value of collateral is heavily dependent on real estate values in Arizona, Nevada, and California. While management uses the best information available to make its evaluation, future adjustments to the allowance may be necessary if there are significant changes in economic or other conditions. In addition, regulators, as an integral part of their examination processes, periodically review the Bank's allowance for credit losses, and may require the Bank to make adjustments to the allowance based on their judgment about information available to them at the time of their examination. Management regularly reviews the assumptions and formulae used in determining the allowance and makes adjustments if required to reflect the current risk profile of the portfolio.

Transfers of financial assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed surrendered when the: 1) assets have been isolated from the Company; 2) transferee obtains the right to pledge or exchange the transferred assets; and 3) Company no longer maintains effective control over the transferred assets through an agreement to repurchase the transferred assets before maturity.

Premises and equipment

Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the term of the lease or the estimated life of the improvement, whichever is shorter. Depreciation and amortization is computed using the following estimated lives: 

	Years
Bank premises	31
Furniture, fixtures, and equipment	3 - 10
Leasehold improvements (1)	3 - 10

(1) Depreciation is recorded over the lesser of the relevant 3 to 10 year term or the remaining life of the lease.

Management periodically reviews premises and equipment in order to determine if facts and circumstances suggest that the value of an asset is not recoverable.

Leases (lessee)

At inception, contracts are evaluated to determine whether the contract constitutes a lease agreement. For contracts that are determined to be an operating lease, a corresponding ROU asset and operating lease liability are recorded in separate line items on the Consolidated Balance Sheet. A ROU asset represents the Company’s right to use an underlying asset during the lease term and a lease liability represents the Company’s commitment to make contractually obligated lease payments. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease and are based on the present value of lease payments over the lease term. The measurement of the operating lease ROU asset includes any lease payments made and is reduced by lease incentives that are paid or are payable to the Company. Variable lease payments that depend on an index or rate such as the Consumer Price Index are included in lease payments based on the rate in effect at the commencement date of the lease. Lease payments are recognized on a straight-line basis as part of occupancy expense over the lease term.

As the rate implicit in the lease is not readily determinable, the Company's incremental collateralized borrowing rate is used to determine the present value of lease payments. This rate gives consideration to the applicable FHLB collateralized borrowing rates and is based on the information available at the commencement date. The Company has elected to apply the short-term lease measurement and recognition exemption to leases with an initial term of 12 months or less; therefore, these leases are not recorded on the Company’s Consolidated Balance Sheet, but rather, lease expense is recognized over the lease term on a straight-line basis. The Company’s lease agreements may include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that the options will be exercised.

In addition to the package of practical expedients, the Company also elected the practical expedient that allows lessees to make an accounting policy election to not separate non-lease components from the associated lease component, and instead account for them all together as part of the applicable lease component. This practical expedient can be elected separately for each underlying class of asset. The majority of the Company’s non-lease components such as common area maintenance, parking, and taxes are variable, and are expensed as incurred. Variable payment amounts are determined in arrears by the landlord depending on actual costs incurred.

Goodwill and other intangible assets

The Company records as goodwill the excess of the purchase price in a business combination over the fair value of the identifiable net assets acquired in accordance with applicable guidance. The Company performs its annual goodwill and intangibles impairment tests as of October 1 each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. The Company can first elect to assess, through qualitative factors, whether it is more likely than not that goodwill is impaired. If the qualitative assessment indicates potential impairment, a quantitative impairment test is necessary. If, based on the quantitative test, a reporting unit's carrying amount exceeds its fair value, a goodwill impairment charge for this difference is recorded to current period earnings as non-interest expense.

The Company’s intangible assets consist primarily of core deposit intangible assets that are amortized over periods ranging from five to 10 years. The Company considers the remaining useful lives of its core deposit intangible assets each reporting period, as required by ASC 350, Intangibles—Goodwill and Other, to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life has changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company has not revised its estimates of the useful lives of its core deposit intangibles during the years ended December 31, 2019, 2018, or 2017.

Low income housing and renewable energy tax credits

The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. Renewable energy projects are accounted for under the deferral method, whereby the investment tax credits are reflected as an immediate reduction in income taxes payable and the carrying value of the asset in the period that the investment tax credits are claimed. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion.

The Company evaluates its interests in these entities to determine if it has a variable interest and whether it is required to consolidate these entities. A variable interest is an investment or other interest that will absorb portions of an entity's expected losses or receive portions of the entity's expected residual returns. If the Company determines that it has a variable interest in an entity, it evaluates whether such interest is in a variable interest entity. A VIE is broadly defined as an entity where either: 1) the equity investors as a group, if any, lack the power through voting or similar rights to direct the activities of an entity that most significantly impact the entity's economic performance or 2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support. The Company is required to consolidate any VIE when it is determined to be the primary beneficiary of the VIE's operations.

A variable interest holder is considered to be the primary beneficiary of a VIE if it has both the power to direct the activities of a VIE that most significantly impact the entity's economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to the VIE. The Company’s assessment of whether it is the primary beneficiary of a VIE includes consideration of various factors such as: 1) the Company's ability to direct the activities that most significantly impact the entity's economic performance; 2) its form of ownership interest; 3) its representation on the entity's governing body; 4) the size and seniority of its investment; and 5) its ability and the rights of other investors to participate in policy making decisions and to replace the manager of and/or liquidate the entity. The Company is required to evaluate whether to consolidate a VIE both at inception and on an ongoing basis as changes in circumstances require reconsideration.

The Company’s investments in qualified affordable housing and renewable energy projects meet the definition of a VIE as the entities are structured such that the limited partner investors lack substantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required consolidate these entities.

Bank owned life insurance

BOLI is carried at its cash surrender value with changes recorded in other non-interest income in the Consolidated Income Statements. The face amount of the underlying policies including death benefits was $359.0 million and $358.7 million as of December 31, 2019 and 2018, respectively. There are no loans offset against cash surrender values, and there are no restrictions as to the use of proceeds.

Customer repurchase agreements

The Company enters into repurchase agreements with customers, whereby it pledges securities against overnight investments made from the customer’s excess collected funds. The Company records these at the amount of cash received in connection with the transaction.

Stock compensation plans

The Company has the Incentive Plan, as amended, which is described more fully in "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements. Compensation expense for stock options and non-vested restricted stock awards is based on the fair value of the award on the measurement date which, for the Company, is the date of the grant and is recognized ratably over the service period of the award. Forfeitures are estimated at the time of the award grant and revised in subsequent periods if actual forfeitures differ from those estimates. The Company utilizes the Black-Scholes option-pricing model to calculate the fair value of stock options. The fair value of non-vested restricted stock awards is the market price of the Company’s stock on the date of grant.

See "Note 10. Stockholders' Equity" of these Notes to Consolidated Financial Statements for further discussion of stock options and restricted stock awards.

Dividends

WAL is a legal entity separate and distinct from its subsidiaries. As a holding company with limited significant assets other than the capital stock of its subsidiaries, WAL's ability to pay dividends depends primarily upon the receipt of dividends or other capital distributions from its subsidiaries. The Company's subsidiaries' ability to pay dividends to WAL is subject to, among other things, their individual earnings, financial condition, and need for funds, as well as federal and state governmental policies and regulations applicable to WAL and each of those subsidiaries, which limit the amount that may be paid as dividends without prior approval. In addition, the terms and conditions of other securities the Company issues may restrict its ability to pay dividends to holders of the Company's common stock. For example, if any required payments on outstanding trust preferred securities are not made, WAL would be prohibited from paying cash dividends on its common stock.

Treasury shares

The Company separately presents treasury shares, which represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. Treasury shares are carried at cost.

Common stock repurchases

On December 11, 2018, the Company adopted its common stock repurchase program, pursuant to which the Company was authorized to repurchase up to $250.0 million of its shares of common stock through December 31, 2019. All shares repurchased under the plan are retired upon settlement. The Company has elected the method to allocate the excess of the repurchase price over the par value of its common stock between APIC and retained earnings, with the portion allocated to APIC limited to the amount of APIC that was recorded at the time that the shares were initially issued, which is calculated on a last-in, first-out basis. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

Derivative financial instruments

The Company uses interest-rate swaps to mitigate interest-rate risk associated with changes to the fair value of certain fixed-rate financial instruments (fair value hedges).

The Company recognizes derivatives as assets or liabilities on the Consolidated Balance Sheet at their fair value in accordance with ASC 815, Derivatives and Hedging. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset or liability attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, along with changes in the fair value of the hedged asset or liability that are attributable to the hedged risk, are recorded in current-period earnings. Changes in the fair value of derivatives not considered to be highly effective in hedging the change in fair value of the hedged item are recognized in earnings as non-interest income during the period of the change.

The Company documents its hedge relationships, including identification of the hedging instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction after the derivative contract is executed. At inception, the Company performs a quantitative assessment to determine whether the derivatives used in hedging transactions are highly effective (as defined in the guidance) in offsetting changes in the fair value of the hedged item. Retroactive effectiveness is assessed, as well as the continued expectation that the hedge will remain effective prospectively. After the initial quantitative assessment is performed, on a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty's risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. The Company discontinues hedge accounting prospectively when it is determined that a hedge is no longer highly effective. When hedge accounting is discontinued on a fair value hedge that no longer qualifies as an effective hedge, the derivative instrument continues to be reported at fair value on the Consolidated Balance Sheet, but the carrying amount of the hedged item is no longer adjusted for future changes in fair value. The adjustment to the carrying amount of the hedged item that existed at the date hedge accounting is discontinued is amortized over the remaining life of the hedged item into earnings.

Derivative instruments that are not designated as hedges, so called free-standing derivatives, are reported on the Consolidated Balance Sheet at fair value and the changes in fair value are recognized in earnings as non-interest income during the period of change.

The Company may in the normal course of business purchase a financial instrument or originate a loan that contains an embedded derivative instrument. Upon purchasing the instrument or originating the loan, the Company assesses whether the economic characteristics of the embedded derivative are clearly and closely related to the economic characteristics of the remaining component of the financial instrument (i.e., the host contract) and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is separated from the host contract and carried at fair value. However, in cases where the host contract is measured at fair value, with changes in fair value reported in current earnings, or the Company is unable to reliably identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the Consolidated Balance Sheet at fair value and is not designated as a hedging instrument.

Off-balance sheet instruments

In the ordinary course of business, the Company has entered into off-balance sheet financial instrument arrangements consisting of commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Financial Statements when they are funded. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the Consolidated Balance Sheet. Losses could be experienced when the Company is contractually obligated to make a payment under these instruments and must seek repayment from the borrower, which may not be as financially sound in the current period as they were when the commitment was originally made. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and, in certain instances, may be unconditionally cancelable. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

As with outstanding loans, the Company applies qualitative factors and utilization rates to its off-balance sheet obligations in determining an estimate of losses inherent in these contractual obligations. The estimate for credit losses on off-balance sheet instruments is included in other liabilities and the charge to income that establishes this liability is included in non-interest expense.

The Company also has off-balance sheet arrangements related to its derivative instruments. Derivative instruments are recognized in the Consolidated Financial Statements at fair value and their notional values are carried off-balance sheet. See "Note 12. Derivatives and Hedging Activities" of these Notes to Consolidated Financial Statements for further discussion.

Business combinations

Business combinations are accounted for under the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes all of the acquired assets and assumed liabilities at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including identified intangible assets, exceeds the purchase price, a bargain purchase gain is recognized. Changes to estimated fair values from a business combination are recognized as an adjustment to goodwill during the measurement period and are recognized in the proper reporting period in which the adjustment amounts are determined. Results of operations of an acquired business are included in the Consolidated Income Statement from the date of acquisition. Acquisition-related costs, including conversion and restructuring charges, are expensed as incurred.

Fair values of financial instruments

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities. ASC 820, Fair Value Measurement, establishes a framework for measuring fair value and a three-level valuation hierarchy for disclosure of fair value measurement, as well as enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The Company uses various valuation approaches, including market, income, and/or cost approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would consider in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs, as follows:

• Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

• Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, prepayment speeds, volatilities, etc.) or model-based valuation techniques where all significant assumptions are observable, either directly or indirectly, in the market.

• Level 3 - Valuation is generated from model-based techniques where one or more significant inputs are not observable, either directly or indirectly, in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques may include use of matrix pricing, discounted cash flow models, and similar techniques.

The availability of observable inputs varies based on the nature of the specific financial instrument. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant who may purchase the asset or assume the liability, rather than an entity-specific measure. When market assumptions are available, ASC 820 requires the Company to make assumptions regarding the assumptions that market participants would use to estimate the fair value of the financial instrument at the measurement date.

ASC 825, Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value.

Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction at December 31, 2019 and 2018. The estimated fair value amounts for December 31, 2019 and 2018 have been measured as of period-end, and have not been re-evaluated or updated for purposes of these Consolidated Financial Statements subsequent to those dates. As such, the estimated fair values of these financial instruments subsequent to the reporting date may be different than the amounts reported at period-end.

The information in "Note 16. Fair Value Accounting" of these Notes to Consolidated Financial Statements should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities.

Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimate, comparisons between the Company’s disclosures and those of other companies or banks may not be meaningful.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash, cash equivalents, and restricted cash

The carrying amounts reported on the Consolidated Balance Sheet for cash and due from banks approximate their fair value.

Money market investments

The carrying amounts reported on the Consolidated Balance Sheet for money market investments approximate their fair value.

Investment securities

The fair values of CRA investments, exchange-listed preferred stock, trust preferred securities, and certain corporate debt securities are based on quoted market prices and are categorized as Level 1 in the fair value hierarchy.

The fair values of debt securities are primarily determined based on matrix pricing. Matrix pricing is a mathematical technique that utilizes observable market inputs including, for example, yield curves, credit ratings, and prepayment speeds. Fair values determined using matrix pricing are generally categorized as Level 2 in the fair value hierarchy. For a small subset of securities, other pricing sources are used, including observed prices on publicly-traded securities and dealer quotes.

Restricted stock

WAB is a member of the Federal Reserve System and the FHLB and, accordingly, maintains investments in the capital stock of the FRB and the FHLB. WAB also maintains an investment in its primary correspondent bank. These investments are carried at cost since no ready market exists for them, and they have no quoted market value. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. The fair values of these investments have been categorized as Level 2 in the fair value hierarchy.

Loans

The fair value of loans is estimated based on discounted cash flows using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality and adjustments that the Company believes a market participant would consider in determining fair value based on a third party independent valuation. As a result, the fair value for loans is categorized as Level 2 in the fair value hierarchy, excluding impaired loans, which are categorized as Level 3.

Accrued interest receivable and payable

The carrying amounts reported on the Consolidated Balance Sheet for accrued interest receivable and payable approximate their fair value.

Derivative financial instruments

All derivatives are recognized on the Consolidated Balance Sheets at their fair value. The fair value for derivatives is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. As a result, the fair values have been categorized as Level 2 in the fair value hierarchy.

Deposits

The fair value disclosed for demand and savings deposits is by definition equal to the amount payable on demand at their reporting date (that is, their carrying amount), which the Company believes a market participant would consider in determining fair value. The carrying amount for variable-rate deposit accounts approximates their fair value. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on these deposits. The fair value measurement of the deposit liabilities is categorized as Level 2 in the fair value hierarchy.

FHLB advances and customer repurchase agreements

The fair values of the Company’s borrowings are estimated using discounted cash flow analyses, based on the market rates for similar types of borrowing arrangements. The FHLB advances and customer repurchase agreements have been categorized as Level 2 in the fair value hierarchy due to their short durations.

Subordinated debt

The fair value of subordinated debt is based on the market rate for the respective subordinated debt security. Subordinated debt has been categorized as Level 2 in the fair value hierarchy.

Junior subordinated debt

Junior subordinated debt is valued based on a discounted cash flow model which uses as inputs Treasury Bond rates and the 'BB' rated financial index. Junior subordinated debt has been categorized as Level 3 in the fair value hierarchy.

Off-balance sheet instruments

The fair value of the Company’s off-balance sheet instruments (lending commitments and letters of credit) is based on quoted fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, and the counterparties’ credit standing.

Income taxes

The Company is subject to income taxes in the United States and files a consolidated federal income tax return with all of its subsidiaries, with the exception of BW Real Estate, Inc. Deferred income taxes are recorded to reflect the effects of temporary differences between the financial reporting carrying amounts of assets and liabilities and their income tax bases using enacted tax rates that are expected to be in effect when the taxes are actually paid or recovered. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets are recorded to the extent that these assets will more-likely-than-not be realized. In making these determinations, all available positive and negative evidence is considered, including scheduled reversals of deferred tax liabilities, tax planning strategies, projected future taxable income, and recent operating results. If it is determined that deferred income tax assets to be realized in the future are in excess of their net recorded amount, an adjustment to the valuation allowance will be recorded, which will reduce the Company's provision for income taxes.

A tax benefit from an unrecognized tax benefit may be recognized when it is more-likely-than-not that the position will be sustained upon examination, including related appeals or litigation, based on technical merits. Income tax benefits must meet a more-likely-than-not recognition threshold at the effective date to be recognized.

Interest and penalties related to unrecognized tax benefits are recognized as part of the provision for income taxes in the Consolidated Income Statement. Accrued interest and penalties are included in the related tax liability line with other liabilities on the Consolidated Balance Sheets. See "Note 14. Income Taxes" of these Notes to Consolidated Financial Statements for further discussion on income taxes.

Non-interest income

Non-interest income includes service charges and fees, income from equity investments, card income, foreign currency income, income from bank owned life insurance, lending related income, net gain or loss on sales of investment securities, net unrealized gains or losses on assets measured at fair value, and other income. Service charges and fees consist of fees earned from performance of account analysis, general account services, and other deposit account services. These fees are recognized as the related services are provided in accordance with ASC 606, Revenue from Contracts with Customers. Income from equity investments includes gains on equity warrant assets, SBIC equity income, and success fees. Card income includes fees earned from customer use of debit and credit cards, interchange income from merchants, and international charges. Card income is generally within the scope of ASC 310, Receivables; however, certain processing transactions for merchants, such as interchange fees, are within the scope of ASC 606. Foreign currency income represents fees earned on the differential between purchases and sales of foreign currency on behalf of the Company’s clients. Income from bank owned life insurance is accounted for in accordance with ASC 325, Investments - Other. Lending related income includes fees earned from gains or losses on the sale of loans, SBA income, and letter of credit fees. Gains and losses on the sale of loans and SBA income are recognized pursuant to ASC 860, Transfers and Servicing. Net unrealized gains or losses on assets measured at fair value represent fair value changes in equity securities and are accounted for in accordance with ASC 321, Investments - Equity Securities. Fees related to standby letters of credit are accounted for in accordance with ASC 440, Commitments. Other income includes operating lease income, which is recognized on a straight-line basis over the lease term in accordance with ASC 840, Leases. Net gain or loss on sales / valuations of repossessed and other assets is presented as a component of non-interest expense, but may also be presented as a component of non-interest income in the event that a net gain is recognized. Net gain or loss on sales of repossessed and other assets are accounted for in accordance with ASC 610, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets. See "Note 22. Revenue from Contracts with Customers" of these Notes to Consolidated Financial Statements for further details related to the nature and timing of revenue recognition for non-interest income revenue streams within the scope of the new standard.

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Earnings per Share (Notes)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

13. EARNINGS PER SHARE

Diluted EPS is based on the weighted average outstanding common shares during the period, including common stock equivalents. Basic EPS is based on the weighted average outstanding common shares during the period.

The following table presents the calculation of basic and diluted EPS: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands, except per share amounts)
Weighted average shares - basic	102,667		104,669		104,179
Dilutive effect of stock awards	466		701		818
Weighted average shares - diluted	103,133		105,370		104,997
Net income	$	499,171	$	435,788	$	325,492
Earnings per share - basic	4.86		4.16		3.12
Earnings per share - diluted	4.84		4.14		3.10

The Company had no anti-dilutive stock options outstanding as of December 31, 2019 and 2018.

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Regulatory Capital Requirements

12 Months Ended

Dec. 31, 2019

Banking and Thrift [Abstract]

Regulatory Capital Requirements

17. REGULATORY CAPITAL REQUIREMENTS

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company’s business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

As of December 31, 2019 and 2018, the Company and the Bank's capital ratios exceeded the well-capitalized thresholds, as defined by the federal banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables as of the periods indicated:

	Total Capital		Tier 1 Capital		Risk-Weighted Assets		Tangible Average Assets		Total Capital Ratio		Tier 1 Capital Ratio		Tier 1 Leverage Ratio		Common Equity Tier 1
	(dollars in thousands)
December 31, 2019
WAL	$	3,257,874	$	2,775,390	$	25,390,142	$	26,110,275	12.8	%	10.9	%	10.6	%	10.6	%
WAB	3,030,301		2,703,549		25,452,261		26,134,431		11.9		10.6		10.3		10.6
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5
December 31, 2018
WAL	$	2,897,356	$	2,431,320	$	21,983,976	$	22,204,799	13.2	%	11.1	%	10.9	%	10.7	%
WAB	2,628,650		2,317,745		22,040,765		22,209,700		11.9		10.5		10.4		10.5
Well-capitalized ratios									10.0		8.0		5.0		6.5
Minimum capital ratios									8.0		6.0		4.0		4.5

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Segments

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segments

21. SEGMENTS

The Company's reportable segments are aggregated based primarily on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: ABA in Arizona, BON and FIB in Nevada, TPB in Southern California, and Bridge in Northern California.

The Company's NBL segments provide specialized banking services to niche markets. The Company's NBL reportable segments include HOA Services, Public & Nonprofit Finance, Technology & Innovation, HFF, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than the Company's other segments, though still predominately located within the Company's core market areas.

The Corporate & Other segment consists of corporate-related items, income and expense items not allocated to the Company's other reportable segments, and inter-segment eliminations.

The Company's segment reporting process begins with the assignment of all loan and deposit accounts directly to the segments where these products are originated and/or serviced. Equity capital is assigned to each segment based on the risk profile of their assets and liabilities. With the exception of goodwill, which is assigned a 100% weighting, equity capital allocations ranged from 0% to 12% during the year, with a funds credit provided for the use of this equity as a funding source. Any excess or deficient equity not allocated to segments based on risk is assigned to the Corporate & Other segment.

Net interest income, provision for credit losses, and non-interest expense amounts are recorded in their respective segment to the extent that the amounts are directly attributable to those segments. Net interest income is recorded in each segment on a TEB with a corresponding increase in income tax expense, which is eliminated in the Corporate & Other segment.

Further, net interest income of a reportable segment includes a funds transfer pricing process that matches assets and liabilities with similar interest rate sensitivity and maturity characteristics. Using this funds transfer pricing methodology, liquidity is transferred between users and providers. A net user of funds has lending/investing in excess of deposits/borrowings and a net provider of funds has deposits/borrowings in excess of lending/investing. A segment that is a user of funds is charged for the use of funds, while a provider of funds is credited through funds transfer pricing, which is determined based on the average life of the assets or liabilities in the portfolio.

Net income amounts for each reportable segment is further derived by the use of expense allocations. Certain expenses not directly attributable to a specific segment are allocated across all segments based on key metrics, such as number of employees, average loan balances, and average deposit balances. These types of expenses include information technology, operations, human resources, finance, risk management, credit administration, legal, and marketing.

Income taxes are applied to each segment based on the effective tax rate for the geographic location of the segment. Any difference in the corporate tax rate and the aggregate effective tax rates in the segments are adjusted in the Corporate & Other segment.

The following is a summary of operating segment balance sheet information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2019:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,471.2		$	1.8		$	9.0		$	2.3		$	2.2
Loans, net of deferred loan fees and costs	21,123.3			3,847.9			2,252.5			2,253.9			1,311.2
Less: allowance for credit losses	(167.8		)	(31.6		)	(18.0		)	(18.3		)	(9.7		)
Total loans	20,955.5			3,816.3			2,234.5			2,235.6			1,301.5
Other assets acquired through foreclosure, net	13.9			—			13.0			0.9			—
Goodwill and other intangible assets, net	297.6			—			23.2			—			154.6
Other assets	1,083.7			48.6			59.4			15.0			19.8
Total assets	$	26,821.9		$	3,866.7		$	2,339.1		$	2,253.8		$	1,478.1
Liabilities:
Deposits	$	22,796.5		$	5,384.7		$	4,350.1		$	2,585.3		$	2,373.6
Borrowings and qualifying debt	393.6			—			—			—			—
Other liabilities	615.1			17.8			11.9			1.2			15.9
Total liabilities	23,805.2			5,402.5			4,362.0			2,586.5			2,389.5
Allocated equity:	3,016.7			453.6			301.0			253.3			312.5
Total liabilities and stockholders' equity	$	26,821.9		$	5,856.1		$	4,663.0		$	2,839.8		$	2,702.0
Excess funds provided (used)	—			1,989.4			2,323.9			586.0			1,223.9

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	10.1		$	4,445.8
Loans, net of deferred loan fees and costs	237.2			1,635.6			1,552.0			1,930.8			6,098.7			3.5
Less: allowance for credit losses	(2.0		)	(13.7		)	(12.6		)	(12.6		)	(49.3		)	—
Total loans	235.2			1,621.9			1,539.4			1,918.2			6,049.4			3.5
Other assets acquired through foreclosure, net	—			—			—			—			—			—
Goodwill and other intangible assets, net	—			—			119.7			0.1			—			—
Other assets	1.2			18.3			7.3			8.8			64.3			841.0
Total assets	$	236.4		$	1,640.2		$	1,666.4		$	1,927.1		$	6,123.8		$	5,290.3
Liabilities:
Deposits	$	3,210.1		$	0.1		$	3,771.5		$	—		$	36.9		$	1,084.2
Borrowings and qualifying debt	—			—			—			—			—			393.6
Other liabilities	1.8			52.9			0.1			—			2.8			510.7
Total liabilities	3,211.9			53.0			3,771.6			—			39.7			1,988.5
Allocated equity:	84.5			131.6			317.5			158.5			494.3			509.9
Total liabilities and stockholders' equity	$	3,296.4		$	184.6		$	4,089.1		$	158.5		$	534.0		$	2,498.4
Excess funds provided (used)	3,060.0			(1,455.6		)	2,422.7			(1,768.6		)	(5,589.8		)	(2,791.9		)

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2018:	(in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,259.7		$	2.5		$	10.9		$	2.5		$	3.0
Loans, net of deferred loan fees and costs	17,710.6			3,647.9			2,003.5			2,161.1			1,300.2
Less: allowance for credit losses	(152.7		)	(30.7		)	(18.7		)	(19.8		)	(10.7		)
Total loans	17,557.9			3,617.2			1,984.8			2,141.3			1,289.5
Other assets acquired through foreclosure, net	17.9			0.8			13.9			—			—
Goodwill and other intangible assets, net	299.2			—			23.2			—			155.5
Other assets	974.8			46.9			57.8			14.2			23.9
Total assets	$	23,109.5		$	3,667.4		$	2,090.6		$	2,158.0		$	1,471.9
Liabilities:
Deposits	$	19,177.4		$	5,090.2		$	3,996.4		$	2,347.5		$	1,839.1
Borrowings and qualifying debt	851.5			—			—			—			—
Other liabilities	466.9			10.4			14.5			4.5			12.2
Total liabilities	20,495.8			5,100.6			4,010.9			2,352.0			1,851.3
Allocated equity:	2,613.7			441.0			277.4			242.9			304.1
Total liabilities and stockholders' equity	$	23,109.5		$	5,541.6		$	4,288.3		$	2,594.9		$	2,155.4
Excess funds provided (used)	—			1,874.2			2,197.7			436.9			683.5

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
Assets:	(in millions)
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,240.8
Loans, net of deferred loan fees and costs	210.0			1,547.5			1,200.9			1,479.9			4,154.9			4.7
Less: allowance for credit losses	(1.9		)	(14.2		)	(10.0		)	(8.5		)	(38.2		)	—
Total loans	208.1			1,533.3			1,190.9			1,471.4			4,116.7			4.7
Other assets acquired through foreclosure, net	—			—			—			—			—			3.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	0.9			20.1			6.3			7.2			37.1			760.4
Total assets	$	209.0		$	1,553.4		$	1,317.6		$	1,478.7		$	4,153.8		$	5,009.1
Liabilities:
Deposits	$	2,607.2		$	—		$	2,559.0		$	—		$	—		$	738.0
Borrowings and qualifying debt	—			—			—			—			—			851.5
Other liabilities	2.1			25.2			0.1			0.4			49.6			347.9
Total liabilities	2,609.3			25.2			2,559.1			0.4			49.6			1,937.4
Allocated equity:	70.7			123.9			268.7			122.3			340.0			422.7
Total liabilities and stockholders' equity	$	2,680.0		$	149.1		$	2,827.8		$	122.7		$	389.6		$	2,360.1
Excess funds provided (used)	2,471.0			(1,404.3		)	1,510.2			(1,356.0		)	(3,764.2		)	(2,649.0		)

The following is a summary of operating segment income statement information for the periods indicated:

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2019:	(in thousands)
Net interest income	$	1,040,412		$	249,083		$	161,801		$	131,053		$	95,697
Provision for (recovery of) credit losses	18,500			3,181			545			1,243			(500		)
Net interest income after provision for credit losses	1,021,912			245,902			161,256			129,810			96,197
Non-interest income	65,095			7,169			12,021			4,149			8,591
Non-interest expense	(482,781		)	(96,578		)	(62,276		)	(60,310		)	(51,709		)
Income (loss) before income taxes	604,226			156,493			111,001			73,649			53,079
Income tax expense (benefit)	105,055			39,124			23,310			20,621			14,862
Net income	$	499,171		$	117,369		$	87,691		$	53,028		$	38,217

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	86,594		$	13,342		$	130,299		$	52,905		$	125,467		$	(5,829	)
Provision for (recovery of) credit losses	60			57			2,844			3,790			7,280			—
Net interest income after provision for credit losses	86,534			13,285			127,455			49,115			118,187			(5,829		)
Non-interest income	367			—			14,267			—			5,269			13,262
Non-interest expense	(37,078		)	(7,617		)	(47,974		)	(9,180		)	(44,561		)	(65,498		)
Income (loss) before income taxes	49,823			5,668			93,748			39,935			78,895			(58,065		)
Income tax expense (benefit)	11,459			1,304			21,562			9,185			18,146			(54,518		)
Net income	$	38,364		$	4,364		$	72,186		$	30,750		$	60,749		$	(3,547	)

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2018:	(in thousands)
Net interest income	$	915,879		$	224,754		$	148,085		$	115,561		$	92,583
Provision for (recovery of) credit losses	23,000			2,235			(2,447		)	2,292			1,809
Net interest income (expense) after provision for credit losses	892,879			222,519			150,532			113,269			90,774
Non-interest income	43,116			7,689			11,326			3,800			9,932
Non-interest expense	(425,667		)	(91,161		)	(62,536		)	(57,735		)	(52,574		)
Income (loss) before income taxes	510,328			139,047			99,322			59,334			48,132
Income tax expense (benefit)	74,540			34,824			20,951			16,709			13,565
Net income	$	435,788		$	104,223		$	78,371		$	42,625		$	34,567

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income	$	67,154		$	15,149		$	105,029		$	55,332		$	80,073		$	12,159
Provision for (recovery of) credit losses	281			(1,101		)	5,657			3,275			11,046			(47		)
Net interest income (expense) after provision for credit losses	66,873			16,250			99,372			52,057			69,027			12,206
Non-interest income	614			158			14,121			13			2,076			(6,613		)
Non-interest expense	(32,390		)	(8,120		)	(41,159		)	(9,603		)	(26,822		)	(43,567		)
Income (loss) before income taxes	35,097			8,288			72,334			42,467			44,281			(37,974		)
Income tax expense (benefit)	8,072			1,905			16,637			9,768			10,184			(58,075		)
Net income	$	27,025		$	6,383		$	55,697		$	32,699		$	34,097		$	20,101

				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,118		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,108			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income	$	325,492		$	76,791		$	63,661		$	35,136		$	24,807

	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,550		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,401			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income	$	16,354		$	13,053		$	32,093		$	26,471		$	23,401		$	13,725

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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of Contractual Amounts for Unfunded Commitments and Letters of Credit

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: 

	December 31,
	2019		2018
	(in thousands)
Commitments to extend credit, including unsecured loan commitments of $895,175 at December 31, 2019 and $770,114 at December 31, 2018	$	8,348,421	$	7,556,741
Credit card commitments and financial guarantees	302,909		237,312
Letters of credit, including unsecured letters of credit of $5,850 at December 31, 2019 and $21,879 at December 31, 2018	175,778		390,161
Total	$	8,827,108	$	8,184,214

Contractual Obligation, Fiscal Year Maturity [Table Text Block]

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	8,348,421	$	2,873,303	$	3,170,848	$	1,299,506	$	1,004,764
Credit card commitments and financial guarantees	302,909		302,909		—		—		—
Letters of credit	175,778		156,375		18,786		617		—
Total	$	8,827,108	$	3,332,587	$	3,189,634	$	1,300,123	$	1,004,764

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Related Parties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	$ 3,812	$ 4,580	$ 5,918
Origination of Notes Receivable from Related Parties	0	0
Loans and Leases Receivable Advances, Related Parties	323	0
Loans and Leases Receivable Repayments, Related Parties	(1,091)	(1,338)
Related Party Deposit Liabilities	100,100	87,900
Interest Expense, Related Party	300	200	200
Related Party Transaction, Expenses from Transactions with Related Party	1,000	8,100	1,000
Interest Income, Related Party	200	300	$ 500
Loan and Leases Receivable, Commitment Outstanding, Related Parties	$ 10,600	30,700
Related Party, OREO Sale		900
Related Party, Loss on OREO Sale		$ 200

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Regulatory Capital Requirements - Summary of Actual Capital Amount and Ratio (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier 1 Capital Ratio	6.00%	6.00%
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Common Equity Tier One Capital Required to be Well-Capitalized	$ 0.065	$ 0.065
Tier 1 Leverage Ratio	4.00%	4.00%
Common Equity Tier One Capital Required for Capital Adequacy	$ 0.045	$ 0.045
Consolidated Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital	3,257,874,000	2,897,356,000
Tier 1 Capital	2,775,390,000	2,431,320,000
Risk-Weighted Assets	25,390,142,000	21,983,976,000
Tangible Average Assets	$ 26,110,275,000	$ 22,204,799,000
Capital to Risk Weighted Assets	12.80%	13.20%
Tier One Risk Based Capital to Risk Weighted Assets	10.90%	11.10%
Tier One Leverage Capital to Average Assets	10.60%	10.90%
Common Equity Tier One Capital Ratio	10.60%	10.70%
Western Alliance Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital	$ 3,030,301,000	$ 2,628,650,000
Tier 1 Capital	2,703,549,000	2,317,745,000
Risk-Weighted Assets	25,452,261,000	22,040,765,000
Tangible Average Assets	$ 26,134,431,000	$ 22,209,700,000
Capital to Risk Weighted Assets	11.90%	11.90%
Tier One Risk Based Capital to Risk Weighted Assets	10.60%	10.50%
Tier One Leverage Capital to Average Assets	10.30%	10.40%
Common Equity Tier One Capital Ratio	10.60%	10.50%

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Segments - Operating Segment Information (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018	Jan. 01, 2017	Dec. 31, 2016
Operating Statistics [Line Items]
Service charges and fees									$ 23,353,000	$ 22,295,000	$ 20,346,000
Debit and credit card interchange fees									5,839,000	6,801,000
Success Fees									1,580,000	3,335,000
Other non-interest income									288,000	626,000
Contract with Customer, Liability, Revenue Recognized									31,060,000	33,057,000
Other revenue									34,035,000	10,059,000
Total assets	$ 26,821,948,000				$ 23,109,486,000				26,821,948,000	23,109,486,000
Cash, Cash Equivalents and Investment Securities	4,471,200,000				4,259,700,000				4,471,200,000	4,259,700,000
Loans, net of deferred loan fees and costs	21,101,493,000				17,710,629,000				21,101,493,000	17,710,629,000
Less: Allowance for credit losses	(167,797,000)				(152,717,000)				(167,797,000)	(152,717,000)
Loans and Leases Receivable, Net Amount	20,933,696,000				17,557,912,000				20,933,696,000	17,557,912,000
Loans and Leases Receivable Including Held for Sale, Net	20,955,500,000								20,955,500,000
Intangible Assets, Net (Including Goodwill)	297,600,000				299,200,000				297,600,000	299,200,000
Other Assets Segment	1,083,700,000				974,800,000				1,083,700,000	974,800,000
Total deposits	22,796,493,000				19,177,447,000				22,796,493,000	19,177,447,000
Total stockholders’ equity	3,016,748,000				2,613,734,000				3,016,748,000	2,613,734,000	2,229,698,000	$ 2,229,698,000	$ 1,892,067,000	$ 1,891,529,000
Net interest income	271,973,000	$ 266,422,000	$ 254,681,000	$ 247,336,000	243,513,000	$ 234,038,000	$ 224,108,000	$ 214,220,000	1,040,412,000	915,879,000	784,664,000
Provision for Loan, Lease, and Other Losses	(4,000,000)	(4,000,000)	(7,000,000)	(3,500,000)	(6,000,000)	(6,000,000)	(5,000,000)	(6,000,000)	(18,500,000)	(23,000,000)	(17,250,000)
Net interest income (loss) after provision for credit losses	267,973,000	262,422,000	247,681,000	243,836,000	237,513,000	228,038,000	219,108,000	208,220,000	1,021,912,000	892,879,000	767,414,000
Non-interest income	16,027,000	19,441,000	14,218,000	15,410,000	13,611,000	4,418,000	13,444,000	11,643,000	65,095,000	43,116,000	45,344,000
Non-interest expense	(129,699,000)	(125,955,000)	(114,213,000)	(112,914,000)	(111,129,000)	(113,841,000)	(102,548,000)	(98,149,000)	(482,781,000)	(425,667,000)	(360,941,000)
Income from continuing operations before income taxes	154,301,000	155,908,000	147,686,000	146,332,000	139,995,000	118,615,000	130,004,000	121,714,000	604,226,000	510,328,000	451,817,000
Income Tax Expense (Benefit)	26,236,000	28,533,000	24,750,000	25,536,000	20,909,000	7,492,000	25,325,000	20,814,000	105,055,000	74,540,000	126,325,000
Other Repossessed Assets	13,900,000				17,900,000				13,900,000	17,900,000
Other liabilities	615,100,000				466,900,000				615,100,000	466,900,000
Total liabilities	23,805,200,000				20,495,752,000				23,805,200,000	20,495,752,000
Liabilities and Equity	26,821,948,000				23,109,486,000				26,821,948,000	23,109,486,000
Excess Funds Provided by (Used in) Segment Basis	0				0				0	0
Other borrowings	393,600,000				851,500,000				393,600,000	851,500,000
Net income	128,065,000	$ 127,375,000	$ 122,936,000	$ 120,796,000	119,086,000	$ 111,123,000	$ 104,679,000	$ 100,900,000	499,171,000	435,788,000	325,492,000
Operating Segments [Member] | HOA Services [Member]
Operating Statistics [Line Items]
Service charges and fees									329,000	585,000
Debit and credit card interchange fees									34,000	24,000
Success Fees									0	0
Other non-interest income									3,000	4,000
Contract with Customer, Liability, Revenue Recognized									366,000	613,000
Other revenue									1,000	1,000
Total assets	236,400,000				209,000,000.0				236,400,000	209,000,000.0
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	237,200,000				210,000,000.0				237,200,000	210,000,000.0
Less: Allowance for credit losses	(2,000,000.0)				(1,900,000)				(2,000,000.0)	(1,900,000)
Loans and Leases Receivable, Net Amount					208,100,000					208,100,000
Loans and Leases Receivable Including Held for Sale, Net	235,200,000								235,200,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	1,200,000				900,000				1,200,000	900,000
Total deposits	3,210,100,000				2,607,200,000				3,210,100,000	2,607,200,000
Total stockholders’ equity	84,500,000				70,700,000				84,500,000	70,700,000
Net interest income									86,594,000	67,154,000	54,102,000
Provision for Loan, Lease, and Other Losses									(60,000)	(281,000)	(341,000)
Net interest income (loss) after provision for credit losses									86,534,000	66,873,000	53,761,000
Non-interest income									367,000	614,000	558,000
Non-interest expense									(37,078,000)	(32,390,000)	(28,289,000)
Income from continuing operations before income taxes									49,823,000	35,097,000	26,030,000
Income Tax Expense (Benefit)									11,459,000	8,072,000	9,676,000
Other Repossessed Assets	0				0				0	0
Other liabilities	1,800,000				2,100,000				1,800,000	2,100,000
Total liabilities	3,211,900,000				2,609,300,000				3,211,900,000	2,609,300,000
Liabilities and Equity	3,296,400,000				2,680,000,000.0				3,296,400,000	2,680,000,000.0
Excess Funds Provided by (Used in) Segment Basis	3,060,000,000.0				2,471,000,000.0				3,060,000,000.0	2,471,000,000.0
Other borrowings	0				0				0	0
Net income									38,364,000	27,025,000	16,354,000
Operating Segments [Member] | HFF Loan Portfolio [Member]
Operating Statistics [Line Items]
Service charges and fees									0	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									0	0
Contract with Customer, Liability, Revenue Recognized									0	0
Other revenue									0	13,000
Total assets	1,927,100,000				1,478,700,000				1,927,100,000	1,478,700,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	1,930,800,000				1,479,900,000				1,930,800,000	1,479,900,000
Less: Allowance for credit losses	(12,600,000)				(8,500,000)				(12,600,000)	(8,500,000)
Loans and Leases Receivable, Net Amount					1,471,400,000					1,471,400,000
Loans and Leases Receivable Including Held for Sale, Net	1,918,200,000								1,918,200,000
Intangible Assets, Net (Including Goodwill)	100,000				100,000				100,000	100,000
Other Assets Segment	8,800,000				7,200,000				8,800,000	7,200,000
Total deposits	0				0				0	0
Total stockholders’ equity	158,500,000				122,300,000				158,500,000	122,300,000
Net interest income									52,905,000	55,332,000	56,961,000
Provision for Loan, Lease, and Other Losses									(3,790,000)	(3,275,000)	(4,493,000)
Net interest income (loss) after provision for credit losses									49,115,000	52,057,000	52,468,000
Non-interest income									0	13,000	52,000
Non-interest expense									(9,180,000)	(9,603,000)	(10,166,000)
Income from continuing operations before income taxes									39,935,000	42,467,000	42,354,000
Income Tax Expense (Benefit)									9,185,000	9,768,000	15,883,000
Other Repossessed Assets	0				0				0	0
Other liabilities	0				400,000				0	400,000
Total liabilities	0				400,000				0	400,000
Liabilities and Equity	158,500,000				122,700,000				158,500,000	122,700,000
Excess Funds Provided by (Used in) Segment Basis	(1,768,600,000)				(1,356,000,000.0)				(1,768,600,000)	(1,356,000,000.0)
Other borrowings	0				0				0	0
Net income									30,750,000	32,699,000	26,471,000
Operating Segments [Member] | Other National Business Lines [Member]
Operating Statistics [Line Items]
Service charges and fees									4,000	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									171,000	1,000
Contract with Customer, Liability, Revenue Recognized									175,000	1,000
Other revenue									5,094,000	2,075,000
Total assets	6,123,800,000				4,153,800,000				6,123,800,000	4,153,800,000
Cash, Cash Equivalents and Investment Securities	10,100,000				0				10,100,000	0
Loans, net of deferred loan fees and costs	6,098,700,000				4,154,900,000				6,098,700,000	4,154,900,000
Less: Allowance for credit losses	(49,300,000)				(38,200,000)				(49,300,000)	(38,200,000)
Loans and Leases Receivable, Net Amount					4,116,700,000					4,116,700,000
Loans and Leases Receivable Including Held for Sale, Net	6,049,400,000								6,049,400,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	64,300,000				37,100,000				64,300,000	37,100,000
Total deposits	36,900,000				0				36,900,000	0
Total stockholders’ equity	494,300,000				340,000,000.0				494,300,000	340,000,000.0
Net interest income									125,467,000	80,073,000	65,908,000
Provision for Loan, Lease, and Other Losses									(7,280,000)	(11,046,000)	(9,729,000)
Net interest income (loss) after provision for credit losses									118,187,000	69,027,000	56,179,000
Non-interest income									5,269,000	2,076,000	1,772,000
Non-interest expense									(44,561,000)	(26,822,000)	(20,550,000)
Income from continuing operations before income taxes									78,895,000	44,281,000	37,401,000
Income Tax Expense (Benefit)									18,146,000	10,184,000	14,000,000
Other Repossessed Assets	0				0				0	0
Other liabilities	2,800,000				49,600,000				2,800,000	49,600,000
Total liabilities	39,700,000				49,600,000				39,700,000	49,600,000
Liabilities and Equity	534,000,000.0				389,600,000				534,000,000.0	389,600,000
Excess Funds Provided by (Used in) Segment Basis	(5,589,800,000)				(3,764,200,000)				(5,589,800,000)	(3,764,200,000)
Other borrowings	0				0				0	0
Net income									60,749,000	34,097,000	23,401,000
Operating Segments [Member] | Public and Non-Profit Finance [Member]
Operating Statistics [Line Items]
Service charges and fees									0	0
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									0	0
Contract with Customer, Liability, Revenue Recognized									0	0
Other revenue									0	158,000
Total assets	1,640,200,000				1,553,400,000				1,640,200,000	1,553,400,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	1,635,600,000				1,547,500,000				1,635,600,000	1,547,500,000
Less: Allowance for credit losses	(13,700,000)				(14,200,000)				(13,700,000)	(14,200,000)
Loans and Leases Receivable, Net Amount					1,533,300,000					1,533,300,000
Loans and Leases Receivable Including Held for Sale, Net	1,621,900,000								1,621,900,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	18,300,000				20,100,000				18,300,000	20,100,000
Total deposits	100,000				0				100,000	0
Total stockholders’ equity	131,600,000				123,900,000				131,600,000	123,900,000
Net interest income									13,342,000	15,149,000	28,485,000
Provision for Loan, Lease, and Other Losses									(57,000)	(1,101,000)	(593,000)
Net interest income (loss) after provision for credit losses									13,285,000	16,250,000	27,892,000
Non-interest income									0	158,000	0
Non-interest expense									(7,617,000)	(8,120,000)	(8,522,000)
Income from continuing operations before income taxes									5,668,000	8,288,000	19,370,000
Income Tax Expense (Benefit)									1,304,000	1,905,000	6,317,000
Other Repossessed Assets	0				0				0	0
Other liabilities	52,900,000				25,200,000				52,900,000	25,200,000
Total liabilities	53,000,000.0				25,200,000				53,000,000.0	25,200,000
Liabilities and Equity	184,600,000				149,100,000				184,600,000	149,100,000
Excess Funds Provided by (Used in) Segment Basis	(1,455,600,000)				(1,404,300,000)				(1,455,600,000)	(1,404,300,000)
Other borrowings	0				0				0	0
Net income									4,364,000	6,383,000	13,053,000
Operating Segments [Member] | Technology and Innovation [Member]
Operating Statistics [Line Items]
Service charges and fees									3,211,000	3,201,000
Debit and credit card interchange fees									0	0
Success Fees									1,580,000	3,239,000
Other non-interest income									4,000	0
Contract with Customer, Liability, Revenue Recognized									4,795,000	6,440,000
Other revenue									9,472,000	7,681,000
Total assets	1,666,400,000				1,317,600,000				1,666,400,000	1,317,600,000
Cash, Cash Equivalents and Investment Securities	0				0				0	0
Loans, net of deferred loan fees and costs	1,552,000,000.0				1,200,900,000				1,552,000,000.0	1,200,900,000
Less: Allowance for credit losses	(12,600,000)				(10,000,000.0)				(12,600,000)	(10,000,000.0)
Loans and Leases Receivable, Net Amount					1,190,900,000					1,190,900,000
Loans and Leases Receivable Including Held for Sale, Net	1,539,400,000								1,539,400,000
Intangible Assets, Net (Including Goodwill)	119,700,000				120,400,000				119,700,000	120,400,000
Other Assets Segment	7,300,000				6,300,000				7,300,000	6,300,000
Total deposits	3,771,500,000				2,559,000,000.0				3,771,500,000	2,559,000,000.0
Total stockholders’ equity	317,500,000				268,700,000				317,500,000	268,700,000
Net interest income									130,299,000	105,029,000	82,473,000
Provision for Loan, Lease, and Other Losses									(2,844,000)	(5,657,000)	(2,821,000)
Net interest income (loss) after provision for credit losses									127,455,000	99,372,000	79,652,000
Non-interest income									14,267,000	14,121,000	8,422,000
Non-interest expense									(47,974,000)	(41,159,000)	(36,726,000)
Income from continuing operations before income taxes									93,748,000	72,334,000	51,348,000
Income Tax Expense (Benefit)									21,562,000	16,637,000	19,255,000
Other Repossessed Assets	0				0				0	0
Other liabilities	100,000				100,000				100,000	100,000
Total liabilities	3,771,600,000				2,559,100,000				3,771,600,000	2,559,100,000
Liabilities and Equity	4,089,100,000				2,827,800,000				4,089,100,000	2,827,800,000
Excess Funds Provided by (Used in) Segment Basis	2,422,700,000				1,510,200,000				2,422,700,000	1,510,200,000
Other borrowings	0				0				0	0
Net income									72,186,000	55,697,000	32,093,000
Reportable Geographical Components [Member] | ARIZONA
Operating Statistics [Line Items]
Service charges and fees									4,781,000	3,902,000
Debit and credit card interchange fees									1,151,000	1,132,000
Success Fees									0	0
Other non-interest income									15,000	181,000
Contract with Customer, Liability, Revenue Recognized									5,947,000	5,215,000
Other revenue									1,222,000	2,474,000
Total assets	3,866,700,000				3,667,400,000				3,866,700,000	3,667,400,000
Cash, Cash Equivalents and Investment Securities	1,800,000				2,500,000				1,800,000	2,500,000
Loans, net of deferred loan fees and costs	3,847,900,000				3,647,900,000				3,847,900,000	3,647,900,000
Less: Allowance for credit losses	(31,600,000)				(30,700,000)				(31,600,000)	(30,700,000)
Loans and Leases Receivable, Net Amount					3,617,200,000					3,617,200,000
Loans and Leases Receivable Including Held for Sale, Net	3,816,300,000								3,816,300,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	48,600,000				46,900,000				48,600,000	46,900,000
Total deposits	5,384,700,000				5,090,200,000				5,384,700,000	5,090,200,000
Total stockholders’ equity	453,600,000				441,000,000.0				453,600,000	441,000,000.0
Net interest income									249,083,000	224,754,000	198,622,000
Provision for Loan, Lease, and Other Losses									(3,181,000)	(2,235,000)	(1,153,000)
Net interest income (loss) after provision for credit losses									245,902,000	222,519,000	197,469,000
Non-interest income									7,169,000	7,689,000	4,757,000
Non-interest expense									(96,578,000)	(91,161,000)	(76,118,000)
Income from continuing operations before income taxes									156,493,000	139,047,000	126,108,000
Income Tax Expense (Benefit)									39,124,000	34,824,000	49,317,000
Other Repossessed Assets	0				800,000				0	800,000
Other liabilities	17,800,000				10,400,000				17,800,000	10,400,000
Total liabilities	5,402,500,000				5,100,600,000				5,402,500,000	5,100,600,000
Liabilities and Equity	5,856,100,000				5,541,600,000				5,856,100,000	5,541,600,000
Excess Funds Provided by (Used in) Segment Basis	1,989,400,000				1,874,200,000				1,989,400,000	1,874,200,000
Other borrowings	0				0				0	0
Net income									117,369,000	104,223,000	76,791,000
Reportable Geographical Components [Member] | NEVADA
Operating Statistics [Line Items]
Service charges and fees									8,131,000	8,151,000
Debit and credit card interchange fees									1,212,000	1,379,000
Success Fees									0	0
Other non-interest income									14,000	194,000
Contract with Customer, Liability, Revenue Recognized									9,357,000	9,724,000
Other revenue									2,664,000	1,602,000
Total assets	2,339,100,000				2,090,600,000				2,339,100,000	2,090,600,000
Cash, Cash Equivalents and Investment Securities	9,000,000.0				10,900,000				9,000,000.0	10,900,000
Loans, net of deferred loan fees and costs	2,252,500,000				2,003,500,000				2,252,500,000	2,003,500,000
Less: Allowance for credit losses	(18,000,000.0)				(18,700,000)				(18,000,000.0)	(18,700,000)
Loans and Leases Receivable, Net Amount					1,984,800,000					1,984,800,000
Loans and Leases Receivable Including Held for Sale, Net	2,234,500,000								2,234,500,000
Intangible Assets, Net (Including Goodwill)	23,200,000				23,200,000				23,200,000	23,200,000
Other Assets Segment	59,400,000				57,800,000				59,400,000	57,800,000
Total deposits	4,350,100,000				3,996,400,000				4,350,100,000	3,996,400,000
Total stockholders’ equity	301,000,000.0				277,400,000				301,000,000.0	277,400,000
Net interest income									161,801,000	148,085,000	145,001,000
Provision for Loan, Lease, and Other Losses									(545,000)	(2,447,000)	(4,724,000)
Net interest income (loss) after provision for credit losses									161,256,000	150,532,000	149,725,000
Non-interest income									12,021,000	11,326,000	9,135,000
Non-interest expense									(62,276,000)	(62,536,000)	(61,066,000)
Income from continuing operations before income taxes									111,001,000	99,322,000	97,794,000
Income Tax Expense (Benefit)									23,310,000	20,951,000	34,133,000
Other Repossessed Assets	13,000,000.0				13,900,000				13,000,000.0	13,900,000
Other liabilities	11,900,000				14,500,000				11,900,000	14,500,000
Total liabilities	4,362,000,000.0				4,010,900,000				4,362,000,000.0	4,010,900,000
Liabilities and Equity	4,663,000,000.0				4,288,300,000				4,663,000,000.0	4,288,300,000
Excess Funds Provided by (Used in) Segment Basis	2,323,900,000				2,197,700,000				2,323,900,000	2,197,700,000
Other borrowings	0				0				0	0
Net income									87,691,000	78,371,000	63,661,000
Reportable Geographical Components [Member] | CALIFORNIA
Operating Statistics [Line Items]
Service charges and fees									3,012,000	2,666,000
Debit and credit card interchange fees									583,000	650,000
Success Fees									0	0
Other non-interest income									5,000	59,000
Contract with Customer, Liability, Revenue Recognized									3,600,000	3,375,000
Other revenue									549,000	425,000
Total assets	2,253,800,000				2,158,000,000.0				2,253,800,000	2,158,000,000.0
Cash, Cash Equivalents and Investment Securities	2,300,000				2,500,000				2,300,000	2,500,000
Loans, net of deferred loan fees and costs	2,253,900,000				2,161,100,000				2,253,900,000	2,161,100,000
Less: Allowance for credit losses	(18,300,000)				(19,800,000)				(18,300,000)	(19,800,000)
Loans and Leases Receivable, Net Amount					2,141,300,000					2,141,300,000
Loans and Leases Receivable Including Held for Sale, Net	2,235,600,000								2,235,600,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	15,000,000.0				14,200,000				15,000,000.0	14,200,000
Total deposits	2,585,300,000				2,347,500,000				2,585,300,000	2,347,500,000
Total stockholders’ equity	253,300,000				242,900,000				253,300,000	242,900,000
Net interest income									131,053,000	115,561,000	109,177,000
Provision for Loan, Lease, and Other Losses									(1,243,000)	(2,292,000)	(100,000)
Net interest income (loss) after provision for credit losses									129,810,000	113,269,000	109,077,000
Non-interest income									4,149,000	3,800,000	3,396,000
Non-interest expense									(60,310,000)	(57,735,000)	(51,808,000)
Income from continuing operations before income taxes									73,649,000	59,334,000	60,665,000
Income Tax Expense (Benefit)									20,621,000	16,709,000	25,529,000
Other Repossessed Assets	900,000				0				900,000	0
Other liabilities	1,200,000				4,500,000				1,200,000	4,500,000
Total liabilities	2,586,500,000				2,352,000,000.0				2,586,500,000	2,352,000,000.0
Liabilities and Equity	2,839,800,000				2,594,900,000				2,839,800,000	2,594,900,000
Excess Funds Provided by (Used in) Segment Basis	586,000,000.0				436,900,000				586,000,000.0	436,900,000
Other borrowings	0				0				0	0
Net income									53,028,000	42,625,000	35,136,000
Reportable Geographical Components [Member] | Northern California [Member]
Operating Statistics [Line Items]
Service charges and fees									3,885,000	3,795,000
Debit and credit card interchange fees									2,859,000	3,616,000
Success Fees									0	96,000
Other non-interest income									65,000	161,000
Contract with Customer, Liability, Revenue Recognized									6,809,000	7,668,000
Other revenue									1,782,000	2,264,000
Total assets	1,478,100,000				1,471,900,000				1,478,100,000	1,471,900,000
Cash, Cash Equivalents and Investment Securities	2,200,000				3,000,000.0				2,200,000	3,000,000.0
Loans, net of deferred loan fees and costs	1,311,200,000				1,300,200,000				1,311,200,000	1,300,200,000
Less: Allowance for credit losses	(9,700,000)				(10,700,000)				(9,700,000)	(10,700,000)
Loans and Leases Receivable, Net Amount					1,289,500,000					1,289,500,000
Loans and Leases Receivable Including Held for Sale, Net	1,301,500,000								1,301,500,000
Intangible Assets, Net (Including Goodwill)	154,600,000				155,500,000				154,600,000	155,500,000
Other Assets Segment	19,800,000				23,900,000				19,800,000	23,900,000
Total deposits	2,373,600,000				1,839,100,000				2,373,600,000	1,839,100,000
Total stockholders’ equity	312,500,000				304,100,000				312,500,000	304,100,000
Net interest income									95,697,000	92,583,000	85,360,000
Provision for Loan, Lease, and Other Losses									(500,000)	(1,809,000)	(4,575,000)
Net interest income (loss) after provision for credit losses									96,197,000	90,774,000	80,785,000
Non-interest income									8,591,000	9,932,000	10,000,000
Non-interest expense									(51,709,000)	(52,574,000)	(48,387,000)
Income from continuing operations before income taxes									53,079,000	48,132,000	42,398,000
Income Tax Expense (Benefit)									14,862,000	13,565,000	17,591,000
Other Repossessed Assets	0				0				0	0
Other liabilities	15,900,000				12,200,000				15,900,000	12,200,000
Total liabilities	2,389,500,000				1,851,300,000				2,389,500,000	1,851,300,000
Liabilities and Equity	2,702,000,000.0				2,155,400,000				2,702,000,000.0	2,155,400,000
Excess Funds Provided by (Used in) Segment Basis	1,223,900,000				683,500,000				1,223,900,000	683,500,000
Other borrowings	0				0				0	0
Net income									38,217,000	34,567,000	24,807,000
Corporate & Other
Operating Statistics [Line Items]
Service charges and fees									0	(5,000)
Debit and credit card interchange fees									0	0
Success Fees									0	0
Other non-interest income									11,000	26,000
Contract with Customer, Liability, Revenue Recognized									11,000	21,000
Other revenue									13,251,000	(6,634,000)
Total assets	5,290,300,000				5,009,100,000				5,290,300,000	5,009,100,000
Cash, Cash Equivalents and Investment Securities	4,445,800,000				4,240,800,000				4,445,800,000	4,240,800,000
Loans, net of deferred loan fees and costs	3,500,000				4,700,000				3,500,000	4,700,000
Less: Allowance for credit losses	0				0				0	0
Loans and Leases Receivable, Net Amount					4,700,000					4,700,000
Loans and Leases Receivable Including Held for Sale, Net	3,500,000								3,500,000
Intangible Assets, Net (Including Goodwill)	0				0				0	0
Other Assets Segment	841,000,000.0				760,400,000				841,000,000.0	760,400,000
Total deposits	1,084,200,000				738,000,000.0				1,084,200,000	738,000,000.0
Total stockholders’ equity	509,900,000				422,700,000				509,900,000	422,700,000
Net interest income									(5,829,000)	12,159,000	(41,425,000)
Provision for Loan, Lease, and Other Losses									0	47,000	1,831,000
Net interest income (loss) after provision for credit losses									(5,829,000)	12,206,000	(39,594,000)
Non-interest income									13,262,000	(6,613,000)	7,252,000
Non-interest expense									(65,498,000)	(43,567,000)	(19,309,000)
Income from continuing operations before income taxes									(58,065,000)	(37,974,000)	(51,651,000)
Income Tax Expense (Benefit)									(54,518,000)	(58,075,000)	(65,376,000)
Other Repossessed Assets	0				3,200,000				0	3,200,000
Other liabilities	510,700,000				347,900,000				510,700,000	347,900,000
Total liabilities	1,988,500,000				1,937,400,000				1,988,500,000	1,937,400,000
Liabilities and Equity	2,498,400,000				2,360,100,000				2,498,400,000	2,360,100,000
Excess Funds Provided by (Used in) Segment Basis	(2,791,900,000)				(2,649,000,000.0)				(2,791,900,000)	(2,649,000,000.0)
Other borrowings	$ 393,600,000				$ 851,500,000				393,600,000	851,500,000
Net income									$ (3,547,000)	$ 20,101,000	$ 13,725,000

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Income Taxes Provision Current & Deferred Table (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Expense Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Current	$	110,184		$	91,249		$	37,854
Deferred	(5,129		)	(16,709		)	88,471
Total tax provision	$	105,055		$	74,540		$	126,325

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Stockholders' Equity Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block]

A summary of the status of the Company’s unvested shares of restricted stock and changes during the years then ended is presented below: 

	December 31,
	2019				2018
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except per share amounts)
Balance, beginning of period	1,027		$	47.53	1,142		$	36.96
Granted	516		46.04		425		58.02
Vested	(469	)	39.60		(477	)	32.31
Forfeited	(114	)	50.80		(63	)	43.62
Balance, end of period	960		$	49.98	1,027		$	47.53

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Income Taxes Provision for Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent									17.39%	14.61%	27.96%
Current Income Tax Expense (Benefit)									$ 110,184	$ 91,249	$ 37,854
Deferred Income Tax Expense (Benefit)									(5,129)	(16,709)	88,471
Income tax benefit	$ 26,236	$ 28,533	$ 24,750	$ 25,536	$ 20,909	$ 7,492	$ 25,325	$ 20,814	$ 105,055	$ 74,540	$ 126,325

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Income Taxes - Low Income Housing Tax Credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 487,300
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	409,400	$ 369,600
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities	191,000	196,300
Amortization of tax credit investments	$ 41,501	$ 35,898	$ 25,355

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Investment Securities - Gross Gains and (Losses) on Sales of Investments (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Gain (Loss) on Securities [Line Items]
Equity Securities, FV-NI, Realized Loss	$ 0	$ 7,992	$ 0
Gross gains	3,152	8,074	3,204
Gross (losses)	0	(7,738)	(861)
Available-for-sale Securities, Gross Realized Gain (Loss)	3,152	336	2,343
Equity Securities, FV-NI, Realized Gain	0	0	0
Equity Securities, FV-NI, Realized Gain (Loss)	$ 0	$ (7,992)	$ 0

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Stockholders' Equity Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2.9
Stock Repurchased and Retired During Period, Value	$ 120,131	$ 35,688
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 46.04	$ 58.02
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Intrinsic Value	$ 23,700	$ 24,700	$ 26,100
Share-based Payment Arrangement, Expense	17,400	16,600	14,300
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	6,900	6,400	6,500
Executive Officer [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 1,900	$ 2,500	$ 2,300

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Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	$ (33,622)	$ (33,622)	$ (3,145)	$ (4,203)
Unrealized (loss) gain on SERP, net of tax effect of $138, $24, and $(79), respectively	(412)	(77)	264
Beginning balance	(33,622)	(3,145)	(4,695)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	61,006	(35,192)	2,994
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2,376)	5,773	(1,444)
Net other comprehensive income (loss)	58,630	(29,419)	1,550
Ending balance	25,008	(33,622)	(3,145)
Unrealized holding gains (losses) on AFS
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	21,399	(47,591)	(10,026)	(12,556)
Beginning balance	(47,591)	(10,026)	(14,916)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	71,222	(40,808)	6,334
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(2,232)	5,773	(1,444)
Net other comprehensive income (loss)	68,990	(35,035)	4,890
Ending balance	21,399	(47,591)	(10,026)
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	3,629	13,433	6,352	7,740
Beginning balance	13,433	6,352	9,956
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(9,804)	5,693	(3,604)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Net other comprehensive income (loss)	(9,804)	5,693	(3,604)
Ending balance	3,629	13,433	6,352
Impairment loss on securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	0	144	144	144
Beginning balance	144	144	144
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	0	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	(144)	0	0
Net other comprehensive income (loss)	(144)	0	0
Ending balance	0	144	144
Supplemental Employee Retirement Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income (loss)	(20)	392	385	$ 469
Beginning balance	392	385	121
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(412)	(77)	264
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0	0
Net other comprehensive income (loss)	(412)	(77)	264
Ending balance	$ (20)	$ 392	$ 385

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Loans, Leases and Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Line Items]
Loans and Leases Receivable, Deferred Income	$ 47,700	$ 36,300
Receivable with Imputed Interest, Premium	29,900	2,000
Interest Rate Marks on Acquired Loans	3,800	7,100
Credit Mark on Acquired Loans	6,500	14,600
Financing Receivable, Nonaccrual	55,968	27,746
Impaired Financing Receivable, Average Recorded Investment	121,287	104,825	$ 104,866
Impaired loans with an allowance recorded	20,979	986
Reduction in interest income due to nonaccrual loans	2,200	2,300	2,400
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	200	1,500
Financing Receivable, Sale	98,963	66,477
Impaired loans with no allowance recorded	95,324	111,266
Impaired loans with an allowance recorded	2,776	681
Loans and Leases Receivable, Gain (Loss) on Sales, Net	690	2,638
Loans - HFS	21,803	0
Troubled Debt Restructured Loans [Member]
Leases [Line Items]
Impaired Financing Receivable, Average Recorded Investment	52,900	51,200	$ 55,500
Impaired loans with an allowance recorded	0
Impaired loans with no allowance recorded	38,900	44,500
Construction and land development [Member]
Leases [Line Items]
Impaired loans with an allowance recorded	2,147	0
Impaired loans with no allowance recorded	6,274	9,403
Impaired loans with an allowance recorded	507	0
Residential real estate [Member]
Leases [Line Items]
Impaired loans with an allowance recorded	0	363
Impaired loans with no allowance recorded	5,600	19,381
Impaired loans with an allowance recorded	0	60
Commercial And Industrial [Member]
Leases [Line Items]
Impaired loans with an allowance recorded	6,919	623
Impaired loans with no allowance recorded	42,065	63,273
Impaired loans with an allowance recorded	1,050	621
Consumer [Member]
Leases [Line Items]
Impaired loans with an allowance recorded	0	0
Impaired loans with no allowance recorded	24	272
Impaired loans with an allowance recorded	$ 0	$ 0

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Fair Value Accounting - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized (loss) gain on junior subordinated debt, net of tax	$ (9,804)	$ 5,693	$ (3,604)
Subordinated Debt Obligations, Fair Value Disclosure	61,685	48,684
Impaired Financing Receivables, With No related Allowance, Balances with Charge-offs	3,300	19,400
Impaired loans with an allowance recorded	20,979	986
Impaired loans with an allowance recorded	(2,776)	(681)
Repossessed Assets	13,850	17,924
Other assets acquired through foreclosure	$ 13,900	17,900
Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities contained credit losses	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	$ (2,800)	$ (700)
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.18%	5.01%
Percentage Of Basis Spread On Variable Rate	1.91%	2.81%
Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Debt Obligations, Fair Value Disclosure	$ 61,685	$ 48,684
Junior subordinated debt, Significant Unobservable Inputs	Implied credit rating of the Company	Implied credit rating of the Company
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	$ 18,203	$ 305
Repossessed Assets	13,850	17,924
Fair Value, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans with an allowance recorded	18,203	305
Repossessed Assets	$ 13,850	$ 17,924
Valuation Technique, Discounted Cash Flow [Member] | Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discounted cash flow	Discounted cash flow

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Loans, Leases and Allowance for Credit Losses - Tabular Disclosure of Nonperforming Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans past due 90 days or more on accrual status	$ 0	$ 594
Total nonperforming loans	84,324	64,798
Other assets acquired through foreclosure, net	13,850	17,924
Total nonperforming assets	98,174	82,722
Performing Financial Instruments [Member]
Troubled debt restructured loans	28,356	36,458
Nonperforming Financial Instruments [Member]
Troubled debt restructured loans	$ 10,600	$ 8,000

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Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 289,895	$ 289,895
Finite-Lived Trade Names, Gross	350	350
Trade Name, Impaired, Accumulated Impairment Loss	0	0
Indefinite-Lived Trade Names	350	350
Finite-Lived Intangible Assets, Net	7,363
Intangible amortization	1,547	1,594	$ 2,074
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	14,647	14,647
Finite-Lived Intangible Assets, Accumulated Amortization	7,284	5,737
Finite-Lived Intangible Assets, Net	$ 7,363	$ 8,910

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Loans, Leases and Allowance for Credit Losses - Summary of Aggregate Activity in Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Finance Receivable Transferred To Held For Sale [Line Items]
Financing Receivable, Nonaccrual	$ 55,968	$ 27,746
Impaired Financing Receivable, Average Recorded Investment	121,287	104,825	$ 104,866
Impaired loans with an allowance recorded	20,979	986
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans	2,200	2,300	2,400
Impaired loans with no allowance recorded	95,324	111,266
Impaired loans with an allowance recorded	2,776	681
Financing Receivable, Sale	98,963	66,477
Loans and Leases Receivable, Gain (Loss) on Sales, Net	690	2,638
Troubled Debt Restructured Loans [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired Financing Receivable, Average Recorded Investment	52,900	51,200	$ 55,500
Impaired loans with an allowance recorded	0
Impaired loans with no allowance recorded	38,900	44,500
Commercial And Industrial [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired loans with an allowance recorded	6,919	623
Impaired loans with no allowance recorded	42,065	63,273
Impaired loans with an allowance recorded	1,050	621
Construction and land development [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired loans with an allowance recorded	2,147	0
Impaired loans with no allowance recorded	6,274	9,403
Impaired loans with an allowance recorded	507	0
Residential real estate [Member]
Finance Receivable Transferred To Held For Sale [Line Items]
Impaired loans with an allowance recorded	0	363
Impaired loans with no allowance recorded	5,600	19,381
Impaired loans with an allowance recorded	$ 0	$ 60

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Loans, Leases and Allowance for Credit Losses - Impaired Loans by Loan Class (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	$ 116,303	$ 112,252
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	48,984	63,896
Residential real estate [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	5,600	19,744
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	24	272
Commercial And Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	48,984	63,896
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	17,736	6,530
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	35,538	12,407
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	2,147	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Impaired [Line Items]
Total impaired loans by class	$ 6,274	$ 9,403

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Qualifying Debt Subordinated Debt Details (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Jun. 16, 2016	Jun. 29, 2015
Debt Instrument [Line Items]
Subordinated Debt	$ 319,200,000	$ 299,400,000
Subordinated Debt [Member] | Subordinated Debentures Maturing July 2056 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 175,000,000.0		$ 175,000,000.0
Debt Issuance Cost			$ 5,500,000
Debt Instrument, Interest Rate, Stated Percentage			6.25%
Subordinated Debt [Member] | Subordinated Debentures Maturing July 2025 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 150,000,000.0
Debt Issuance Cost				$ 1,800,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%

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Loans, Leases and Allowance for Credit Losses - Troubled Debt Restructured Loans by Loan Class (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) SecurityLoan	Dec. 31, 2018 USD ($) SecurityLoan	Dec. 31, 2017 USD ($) SecurityLoan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 200	$ 1,500
Number of Loans | SecurityLoan	9	12	15
Pre-Modification Outstanding Recorded Investment	$ 42,045	$ 35,426	$ 6,628
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	42,045	35,426	6,628
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Commercial And Industrial [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	4	11	11
Pre-Modification Outstanding Recorded Investment	$ 11,451	$ 35,132	$ 3,513
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	11,451	35,132	3,513
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Residential real estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	1	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 294	$ 122
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	294	122
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Consumer [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	2	0	0
Pre-Modification Outstanding Recorded Investment	$ 2,026	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	2,026	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Non-owner occupied [Member] | Commercial real estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	2	0	3
Pre-Modification Outstanding Recorded Investment	$ 11,546	$ 0	$ 2,993
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	11,546	0	2,993
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Multi-family [Member] | Commercial real estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Construction [Member] | Construction and land development [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	1	0	0
Pre-Modification Outstanding Recorded Investment	$ 17,022	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	17,022	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0
Land [Member] | Construction and land development [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	0
Pre-Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0
Forgiven Principal Balance	0	0	0
Lost Interest Income	0	0	0
Post-Modification Outstanding Recorded Investment	0	0	0
Waived Fees and Other Expenses	$ 0	$ 0	$ 0

XML

Fair Value Accounting - Fair Value of Assets and Liabilities (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease)	$ 53,292,000	$ 23,039,000
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	401,000	19,691,000
Securities available for sale	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Subordinated Debt Obligations, Fair Value Disclosure	61,685,000	48,684,000
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	3,346,310,000	3,276,988,000
Investment securities - equity	138,701,000	115,061,000
Loans Held-for-sale, Fair Value Disclosure	21,803,000
Derivative Liability	55,570,000	45,120,000
Derivative Asset	1,903,000	2,643,000
Fair Value, Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	32,167,000	0
Investment securities - equity	138,701,000	115,061,000
Loans Held-for-sale, Fair Value Disclosure	0
Derivative Liability	0	0
Derivative Asset	0	0
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Fair Value, Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	3,314,143,000	3,276,988,000
Investment securities - equity	0	0
Loans Held-for-sale, Fair Value Disclosure	21,803,000
Derivative Liability	55,570,000	45,120,000
Derivative Asset	1,903,000	2,643,000
Subordinated Debt Obligations, Fair Value Disclosure	0	0
Fair Value, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Investment securities - equity	0	0
Loans Held-for-sale, Fair Value Disclosure	0
Derivative Liability	0	0
Derivative Asset	0	0
Subordinated Debt Obligations, Fair Value Disclosure	61,685,000	48,684,000
Fair Value, Recurring [Member] | Residential mortgage-backed securities issued by GSEs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,412,060,000	1,530,124,000
Fair Value, Recurring [Member] | Residential mortgage-backed securities issued by GSEs | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Residential mortgage-backed securities issued by GSEs | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,412,060,000	1,530,124,000
Fair Value, Recurring [Member] | Residential mortgage-backed securities issued by GSEs | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Nontaxable Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	554,855,000	538,668,000
Fair Value, Recurring [Member] | Nontaxable Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Nontaxable Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	554,855,000	538,668,000
Fair Value, Recurring [Member] | Nontaxable Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Private label residential mortgage-backed securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,129,227,000	924,594,000
Fair Value, Recurring [Member] | Private label residential mortgage-backed securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Private label residential mortgage-backed securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	1,129,227,000	924,594,000
Fair Value, Recurring [Member] | Private label residential mortgage-backed securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	94,253,000	100,106,000
Fair Value, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	94,253,000	100,106,000
Fair Value, Recurring [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	99,961,000	99,380,000
Fair Value, Recurring [Member] | Corporate debt securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	5,127,000	0
Fair Value, Recurring [Member] | Corporate debt securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	94,834,000	99,380,000
Fair Value, Recurring [Member] | Corporate debt securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Taxable Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,773,000
Fair Value, Recurring [Member] | Taxable Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0
Fair Value, Recurring [Member] | Taxable Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	7,773,000
Fair Value, Recurring [Member] | Taxable Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0
Fair Value, Recurring [Member] | CRA investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	52,504,000	51,142,000
Fair Value, Recurring [Member] | CRA investments [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	52,504,000	51,142,000
Fair Value, Recurring [Member] | CRA investments [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	0	0
Fair Value, Recurring [Member] | CRA investments [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	0	0
Fair Value, Recurring [Member] | Collateralized debt obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,142,000	15,327,000
Fair Value, Recurring [Member] | Collateralized debt obligations [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Collateralized debt obligations [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,142,000	15,327,000
Fair Value, Recurring [Member] | Collateralized debt obligations [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Trust preferred securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	27,040,000	28,617,000
Fair Value, Recurring [Member] | Trust preferred securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	27,040,000	0
Fair Value, Recurring [Member] | Trust preferred securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	28,617,000
Fair Value, Recurring [Member] | Trust preferred securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,000,000	38,188,000
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	10,000,000	38,188,000
Fair Value, Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	999,000	1,984,000
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	999,000	1,984,000
Fair Value, Recurring [Member] | US Treasury Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities available for sale	0	0
Fair Value, Recurring [Member] | Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	86,197,000	63,919,000
Fair Value, Recurring [Member] | Preferred Stock [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	86,197,000	63,919,000
Fair Value, Recurring [Member] | Preferred Stock [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	0	0
Fair Value, Recurring [Member] | Preferred Stock [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - equity	0	0
Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Subordinated Debt Obligations, Fair Value Disclosure	$ 61,685,000	$ 48,684,000
Junior subordinated debt, Significant Unobservable Inputs	Implied credit rating of the Company	Implied credit rating of the Company
Valuation Technique, Discounted Cash Flow [Member] | Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discounted cash flow	Discounted cash flow

XML

Commitments and Contingencies - Summary of Contractual Amounts for Unfunded Commitments and Letters of Credit (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Other Commitments [Line Items]
Total amount	$ 8,827,108	$ 8,184,214
Percent of commercial real estate loans owner occupied	31.00%	36.00%
Unfunded Loan Commitment [Member]
Other Commitments [Line Items]
Loss Contingency Accrual	$ 9,000	$ 8,200
Standby letters of credit [Member]
Other Commitments [Line Items]
Total amount	175,778	390,161
Unsecured Letters Of Credit	5,850
Credit card guarantees [Member]
Other Commitments [Line Items]
Total amount	302,909	237,312
Commitments to extend credit [Member]
Other Commitments [Line Items]
Total amount	$ 8,348,421	$ 7,556,741
Loans Receivable [Member] | Credit Concentration Risk [Member] | Commercial Real Estate Portfolio Segment [Member]
Other Commitments [Line Items]
Concentration Risk, Percentage	45.00%	49.00%

XML

Parent Company (Tables)

12 Months Ended

Dec. 31, 2019

Parent Company Financial Information [Abstract]

Condensed Balance Sheet [Table Text Block]

WESTERN ALLIANCE BANCORPORA

Schedule Of Condensed Income Statement And Comprehensive Income Table [Text Block]

Condensed Income Statements 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Income:
Dividends from subsidiaries	$	134,000	$	152,116	$	97,264
Interest income	2,818		2,905		2,547
Non-interest income	5,112		761		2,470
Total income	141,930		155,782		102,281
Expense:
Interest expense	14,554		13,949		11,459
Non-interest expense	19,543		19,025		16,293
Total expense	34,097		32,974		27,752
Income before income taxes and equity in undistributed earnings of subsidiaries	107,833		122,808		74,529
Income tax benefit	5,628		10,436		5,229
Income before equity in undistributed earnings of subsidiaries	113,461		133,244		79,758
Equity in undistributed earnings of subsidiaries	385,710		302,544		245,734
Net income	$	499,171	$	435,788	$	325,492

Condensed Cash Flow Statement [Table Text Block]

Condensed Statements of Cash Flows

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Cash flows from operating activities:
Net income	$	499,171		$	435,788		$	325,492
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net undistributed earnings of subsidiaries	(385,710		)	(302,544		)	(245,734		)
Other operating activities, net	9,885			(5,889		)	16,921
Net cash provided by operating activities	123,346			127,355			96,679
Cash flows from investing activities:
Purchases of securities	(10,841		)	(44,409		)	(11,765		)
Principal pay downs, calls, maturities, and sales proceeds of securities	19,032			11,362			23,196
Capital contributions to subsidiaries	—			—			(50,000		)
Other investing activities, net	7			(7		)	—
Net cash provided by (used in) investing activities	8,198			(33,054		)	(38,569		)
Cash flows from financing activities:
Share repurchases	(120,131		)	(35,688		)	—
Other financing activities, net	80			554			(12,965		)
Dividends paid on common stock	(51,329		)	—			—
Net cash used in financing activities	(171,380		)	(35,134		)	(12,965		)
Net (decrease) increase in cash and cash equivalents	(39,836		)	59,167			45,145
Cash and cash equivalents at beginning of year	115,721			56,554			11,409
Cash and cash equivalents at end of year	$	75,885		$	115,721		$	56,554

XML

Investment Securities - Carrying Amounts and Fair Values of Investment Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	$ 138,701	$ 115,061
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	485,107	302,905
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	31,303	3,163
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(149)	(7,420)
Debt Securities, Held-to-maturity, Fair Value	516,261	298,648
Securities available for sale Total, Amortized Cost	3,317,928	3,339,888
Securities available-for-sale, Gross Unrealized Gains	48,252	22,054
Securities available-for-sale, Gross Unrealized (Losses)	(19,870)	(84,954)
Securities available for sale Total, Estimated Fair Value	3,346,310	3,276,988
Equity Securities, FV-NI, Cost	135,319	118,164
Equity securities, FV-NI, Accumulated Gross Unrealized Gain, Before Tax	3,881	148
Equity securities, FV-NI, Accumulated Gross Unrealized Loss, Before Tax	499	3,251
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	10,000	40,000
Securities available-for-sale, Gross Unrealized Gains	0	0
Securities available-for-sale, Gross Unrealized (Losses)	0	(1,812)
Securities available for sale Total, Estimated Fair Value	10,000	38,188
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	999	1,996
Securities available-for-sale, Gross Unrealized Gains	0	0
Securities available-for-sale, Gross Unrealized (Losses)	0	(12)
Securities available for sale Total, Estimated Fair Value	999	1,984
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	105,015	105,029
Securities available-for-sale, Gross Unrealized Gains	112	0
Securities available-for-sale, Gross Unrealized (Losses)	(5,166)	(5,649)
Securities available for sale Total, Estimated Fair Value	99,961	99,380
Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	7,494
Securities available-for-sale, Gross Unrealized Gains	279
Securities available-for-sale, Gross Unrealized (Losses)	0
Securities available for sale Total, Estimated Fair Value	7,773
Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	86,197	63,919
Equity Securities, FV-NI, Cost	82,514	65,954
Equity securities, FV-NI, Accumulated Gross Unrealized Gain, Before Tax	3,881	148
Equity securities, FV-NI, Accumulated Gross Unrealized Loss, Before Tax	198	2,183
Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	1,406,594	1,564,181
Securities available-for-sale, Gross Unrealized Gains	9,283	1,415
Securities available-for-sale, Gross Unrealized (Losses)	(3,817)	(35,472)
Securities available for sale Total, Estimated Fair Value	1,412,060	1,530,124
Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	485,107	302,905
Securities available for sale Total, Amortized Cost	530,729	542,086
Securities available-for-sale, Gross Unrealized Gains	24,548	4,335
Securities available-for-sale, Gross Unrealized (Losses)	(422)	(7,753)
Securities available for sale Total, Estimated Fair Value	554,855	538,668
Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	95,062	106,385
Securities available-for-sale, Gross Unrealized Gains	366	82
Securities available-for-sale, Gross Unrealized (Losses)	(1,175)	(6,361)
Securities available for sale Total, Estimated Fair Value	94,253	100,106
Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	1,129,985	948,161
Securities available-for-sale, Gross Unrealized Gains	3,572	945
Securities available-for-sale, Gross Unrealized (Losses)	(4,330)	(24,512)
Securities available for sale Total, Estimated Fair Value	1,129,227	924,594
Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	32,000	32,000
Securities available-for-sale, Gross Unrealized Gains	0	0
Securities available-for-sale, Gross Unrealized (Losses)	(4,960)	(3,383)
Securities available for sale Total, Estimated Fair Value	27,040	28,617
CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	52,504	51,142
Equity Securities, FV-NI, Cost	52,805	52,210
Equity securities, FV-NI, Accumulated Gross Unrealized Gain, Before Tax	0	0
Equity securities, FV-NI, Accumulated Gross Unrealized Loss, Before Tax	301	1,068
Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Amortized Cost	50	50
Securities available-for-sale, Gross Unrealized Gains	10,092	15,277
Securities available-for-sale, Gross Unrealized (Losses)	0	0
Securities available for sale Total, Estimated Fair Value	10,142	15,327
AAA [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Securities available for sale Total, Estimated Fair Value	1,149,519	953,680
AAA [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0
AAA [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
AAA [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Securities available for sale Total, Estimated Fair Value	52,610	66,160
AAA [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	1,096,909	887,520
AAA [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AAA [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
AAA [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	25,375	25,375
Securities available for sale Total, Estimated Fair Value	1,520,168	1,682,548
Split-rated AAA/AA Plus [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	10,000	38,188
Split-rated AAA/AA Plus [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	999	1,984
Split-rated AAA/AA Plus [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0
Split-rated AAA/AA Plus [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Split-rated AAA/AA Plus [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	1,412,060	1,530,124
Split-rated AAA/AA Plus [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Securities available for sale Total, Estimated Fair Value	2,856	12,146
Split-rated AAA/AA Plus [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	94,253	100,106
Split-rated AAA/AA Plus [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Split-rated AAA/AA Plus [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	25,375	25,375
Split-rated AAA/AA Plus [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Securities available for sale Total, Estimated Fair Value	358,332	340,751
AA Plus to AA- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0
AA Plus to AA- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
AA Plus to AA- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Securities available for sale Total, Estimated Fair Value	327,657	306,409
AA Plus to AA- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	30,675	34,342
AA Plus to AA- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
AA Plus to AA- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
AA Plus to AA- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Securities available for sale Total, Estimated Fair Value	238,443	219,188
A Plus to A- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	66,530	66,515
A Plus to A- [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0
A Plus to A- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
A Plus to A- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Securities available for sale Total, Estimated Fair Value	171,732	152,330
A Plus to A- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	181	343
A Plus to A- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
A Plus to A- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
A Plus to A- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	82,851	45,771
Securities available for sale Total, Estimated Fair Value	60,759	62,429
BBB Plus to BBB- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	33,431	32,865
BBB Plus to BBB- [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0
BBB Plus to BBB- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	82,851	45,771
BBB Plus to BBB- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BBB Plus to BBB- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	288	947
BBB Plus to BBB- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	27,040	28,617
BBB Plus to BBB- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
BBB Plus to BBB- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	2,105	3,693
Securities available for sale Total, Estimated Fair Value	11,316	16,769
BB Plus and below [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0
BB Plus and below [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	2,105	3,693
BB Plus and below [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	0	0
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	1,174	1,442
BB Plus and below [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
BB Plus and below [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
BB Plus and below [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	10,142	15,327
Corporate Credit Quality Indicator Unrated [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	28,370	40,222
Securities available for sale Total, Estimated Fair Value	7,773	1,623
Corporate Credit Quality Indicator Unrated [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	7,773
Corporate Credit Quality Indicator Unrated [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	1,241	14,455
Corporate Credit Quality Indicator Unrated [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Nontaxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	485,107	302,905
Securities available for sale Total, Estimated Fair Value	0	1,623
Corporate Credit Quality Indicator Unrated [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	0	0
Corporate Credit Quality Indicator Unrated [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	27,129	25,767
Corporate Credit Quality Indicator Unrated [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Securities available for sale Total, Estimated Fair Value	$ 0	$ 0

XML

Goodwill and Other Intangible Assets (Tables) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Goodwill and Intangible Assets Amortization Schedule [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The following is a summary of the Company's acquired intangible assets:

	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	7,284	$	7,363	$	14,647	$	5,737	$	8,910
	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Below is a summary of future estimated aggregate amortization expense:

	December 31, 2019
	(in thousands)
2020	$	1,494
2021	1,433
2022	1,364
2023	1,289
2024	1,206
Thereafter	577
Total	$	7,363

Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months

$ 1,494

Finite-Lived Intangible Assets, Amortization Expense, Year Two

1,433

Finite-Lived Intangible Assets, Amortization Expense, Year Three

1,364

Finite-Lived Intangible Assets, Amortization Expense, Year Four

1,289

Finite-Lived Intangible Assets, Amortization Expense, Year Five

1,206

Finite-Lived Intangible Assets, Amortization Expense, after Year Five

577

Other intangible assets, net

$ 7,713

$ 9,260

XML

Investment Securities (Tables)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Carrying Amounts and Fair Values of Investment Securities

The carrying amounts and fair values of investment securities at December 31, 2019 and 2018 are summarized as follows: 

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	485,107	$	31,303	$	(149	)	$	516,261
Available-for-sale debt securities
CDO	$	50	$	10,092	$	—		$	10,142
Commercial MBS issued by GSEs	95,062		366		(1,175		)	94,253
Corporate debt securities	105,015		112		(5,166		)	99,961
Municipal securities	7,494		279		—			7,773
Private label residential MBS	1,129,985		3,572		(4,330		)	1,129,227
Residential MBS issued by GSEs	1,406,594		9,283		(3,817		)	1,412,060
Tax-exempt	530,729		24,548		(422		)	554,855
Trust preferred securities	32,000		—		(4,960		)	27,040
U.S. government sponsored agency securities	10,000		—		—			10,000
U.S. treasury securities	999		—		—			999
Total AFS debt securities	$	3,317,928	$	48,252	$	(19,870	)	$	3,346,310
Equity securities
CRA investments	$	52,805	$	—	$	(301	)	$	52,504
Preferred stock	82,514		3,881		(198		)	86,197
Total equity securities	$	135,319	$	3,881	$	(499	)	$	138,701

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	302,905	$	3,163	$	(7,420	)	$	298,648
Available-for-sale debt securities
CDO	$	50	$	15,277	$	—		$	15,327
Commercial MBS issued by GSEs	106,385		82		(6,361		)	100,106
Corporate debt securities	105,029		—		(5,649		)	99,380
Private label residential MBS	948,161		945		(24,512		)	924,594
Residential MBS issued by GSEs	1,564,181		1,415		(35,472		)	1,530,124
Tax-exempt	542,086		4,335		(7,753		)	538,668
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	40,000		—		(1,812		)	38,188
U.S. treasury securities	1,996		—		(12		)	1,984
Total AFS debt securities	$	3,339,888	$	22,054	$	(84,954	)	$	3,276,988
Equity securities
CRA investments	$	52,210	$	—	$	(1,068	)	$	51,142
Preferred stock	65,954		148		(2,183		)	63,919
Total equity securities	$	118,164	$	148	$	(3,251	)	$	115,061

Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position

Information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 

	December 31, 2019
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	149	$	24,325	$	—	$	—	$	149	$	24,325
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	85	$	9,035	$	1,090	$	54,604	$	1,175	$	63,639
Corporate debt securities	—		—		5,166		94,834		5,166		94,834
Private label residential MBS	1,776		337,285		2,554		258,791		4,330		596,076
Residential MBS issued by GSEs	1,740		385,643		2,077		150,419		3,817		536,062
Tax-exempt	422		67,150		—		—		422		67,150
Trust preferred securities	—		—		4,960		27,040		4,960		27,040
Total AFS securities	$	4,023	$	799,113	$	15,847	$	585,688	$	19,870	$	1,384,801

	December 31, 2018
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	3,868	$	91,095	$	3,552	$	69,991	$	7,420	$	161,086
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	—	$	—	$	6,361	$	98,275	$	6,361	$	98,275
Corporate debt securities	16		5,013		5,633		94,367		5,649		99,380
Private label residential MBS	5,173		217,982		19,339		537,316		24,512		755,298
Residential MBS issued by GSEs	1,363		141,493		34,109		1,215,490		35,472		1,356,983
Tax-exempt	3,562		209,767		4,191		72,382		7,753		282,149
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	—		—		1,812		38,188		1,812		38,188
U.S. treasury securities	—		—		12		1,984		12		1,984
Total AFS securities	$	10,114	$	574,255	$	74,840	$	2,086,619	$	84,954	$	2,660,874

Amortized Cost and Fair Value of Investment Securities by Contractual Maturities

The amortized cost and fair value of securities as of December 31, 2019, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.

	December 31, 2019
	Amortized Cost		Estimated Fair Value
	(in thousands)
Held-to-maturity
Due in one year or less	$	7,330	$	7,384
After one year through five years	17,414		17,947
After ten years	460,363		490,930
Total HTM securities	$	485,107	$	516,261
Available-for-sale
Due in one year or less	$	999	$	999
After one year through five years	14,765		14,971
After five years through ten years	149,236		144,996
After ten years	521,287		549,804
Mortgage-backed securities	2,631,641		2,635,540
Total AFS securities	$	3,317,928	$	3,346,310

Investment Securities by Credit Rating Type

The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2019 and 2018:

	December 31, 2019
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	485,107	$	485,107
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	10,142	$	—	$	10,142
Commercial MBS issued by GSEs	—		94,253		—		—		—		—		—		94,253
Corporate debt securities	—		—		—		66,530		33,431		—		—		99,961
Municipal securities	—		—		—		—		—		—		7,773		7,773
Private label residential MBS	1,096,909		—		30,675		181		288		1,174		—		1,129,227
Residential MBS issued by GSEs	—		1,412,060		—		—		—		—		—		1,412,060
Tax-exempt	52,610		2,856		327,657		171,732		—		—		—		554,855
Trust preferred securities	—		—		—		—		27,040		—		—		27,040
U.S. government sponsored agency securities	—		10,000		—		—		—		—		—		10,000
U.S. treasury securities	—		999		—		—		—		—		—		999
Total AFS securities (1)	$	1,149,519	$	1,520,168	$	358,332	$	238,443	$	60,759	$	11,316	$	7,773	$	3,346,310
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	27,129	$	52,504
Preferred stock	—		—		—		—		82,851		2,105		1,241		86,197
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	82,851	$	2,105	$	28,370	$	138,701

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

	December 31, 2018
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	302,905	$	302,905
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		—		—		—		—		100,106
Corporate debt securities	—		—		—		66,515		32,865		—		—		99,380
Private label residential MBS	887,520		—		34,342		343		947		1,442		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		—		—		—		—		1,530,124
Tax-exempt	66,160		12,146		306,409		152,330		—		—		1,623		538,668
Trust preferred securities	—		—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—		38,188		—		—		—		—		—		38,188
U.S. treasury securities	—		1,984		—		—		—		—		—		1,984
Total AFS securities (1)	$	953,680	$	1,682,548	$	340,751	$	219,188	$	62,429	$	16,769	$	1,623	$	3,276,988
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	25,767	$	51,142
Preferred stock	—		—		—		—		45,771		3,693		14,455		63,919
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	45,771	$	3,693	$	40,222	$	115,061

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

Gross Gains and (Losses) on Sales of Investment Securities

The following table presents gross gains and losses on sales of investment securities: 

	Year Ended December 31,
	2019		2018			2017
	(in thousands)
Available-for-sale securities
Gross gains	$	3,152	$	8,074		$	3,204
Gross losses	—		(7,738		)	(861		)
Net gains (losses) on AFS securities	$	3,152	$	336		$	2,343
Equity securities
Gross gains	$	—	$	—		$	—
Gross losses	—		(7,992		)	—
Net gains (losses) on equity securities	$	—	$	(7,992	)	$	—

XML

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income

11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods indicated: 

	Unrealized holding gains (losses) on AFS			Unrealized holding gains (losses) on SERP			Unrealized holding gains (losses) on junior subordinated debt			Impairment loss on securities			Total
	(in thousands)
Balance, December 31, 2016	$	(14,916	)	$	121		$	9,956		$	144		$	(4,695	)
Other comprehensive income (loss) before reclassifications	6,334			264			(3,604		)	—			2,994
Amounts reclassified from AOCI	(1,444		)	—			—			—			(1,444		)
Net current-period other comprehensive income (loss)	4,890			264			(3,604		)	—			1,550
Balance, December 31, 2017	$	(10,026	)	$	385		$	6,352		$	144		$	(3,145	)
Balance, January 1, 2018 (1)	(12,556		)	469			7,740			144			(4,203		)
Other comprehensive (loss) income before reclassifications	(40,808		)	(77		)	5,693			—			(35,192		)
Amounts reclassified from accumulated other comprehensive income	5,773			—			—			—			5,773
Net current-period other comprehensive (loss) income	(35,035		)	(77		)	5,693			—			(29,419		)
Balance, December 31, 2018	$	(47,591	)	$	392		$	13,433		$	144		$	(33,622	)
Other comprehensive income (loss) before reclassifications	71,222			(412		)	(9,804		)	—			61,006
Amounts reclassified from AOCI	(2,232		)	—			—			(144		)	(2,376		)
Net current-period other comprehensive income (loss)	68,990			(412		)	(9,804		)	(144		)	58,630
Balance, December 31, 2019	$	21,399		$	(20	)	$	3,629		$	—		$	25,008

(1) As adjusted for adoption of ASU 2016-01 and ASU 2018-02. The cumulative effect of adoption of this guidance at January 1, 2018 resulted in an increase to retained earnings of $1.1 million and a corresponding decrease to accumulated other comprehensive income.

The following table presents reclassifications out of accumulated other comprehensive income: 

	Year Ended December 31,
Income Statement Classification	2019			2018			2017
	(in thousands)
Gain (loss) on sales of investment securities, net	$	3,152		$	(7,656	)	$	2,343
Income tax (expense) benefit	(776		)	1,883			(899		)
Net of tax	$	2,376		$	(5,773	)	$	1,444

XML

Loans, Leases and Allowance for Credit Losses

12 Months Ended

Dec. 31, 2019

Receivables [Abstract]

Loans, Leases and Allowance for Credit Losses

3. LOANS, LEASES AND ALLOWANCE FOR CREDIT LOSSES

The composition of the Company’s held for investment loan portfolio is as follows:

	December 31,
	2019			2018
	(in thousands)
Commercial and industrial	$	9,382,043		$	7,762,642
Commercial real estate - non-owner occupied	5,245,634			4,213,428
Commercial real estate - owner occupied	2,316,913			2,325,380
Construction and land development	1,952,156			2,134,753
Residential real estate	2,147,664			1,204,355
Consumer	57,083			70,071
Loans, net of deferred loan fees and costs	21,101,493			17,710,629
Allowance for credit losses	(167,797		)	(152,717		)
Total loans HFI	$	20,933,696		$	17,557,912

Loans that are held for investment are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts, purchase accounting fair value adjustments, and an allowance for credit losses. Net deferred loan fees as of December 31, 2019 and 2018 total $47.7 million and $36.3 million, respectively, which is a reduction in the carrying value of loans. Net unamortized purchase premiums on secondary market loan purchases total $29.9 million and $2.0 million as of December 31, 2019 and 2018, respectively. Total loans held for investment are also net of interest rate and credit marks on acquired loans, which are a net reduction in the carrying value of loans. Interest rate marks were $3.8 million and $7.1 million as of December 31, 2019 and 2018, respectively. Credit marks were $6.5 million and $14.6 million as of December 31, 2019 and 2018, respectively.

As of December 31, 2019, the Company also had $21.8 million of HFS loans. There were no HFS loans as of December 31, 2018.

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	9,376,377	$	2,501	$	637	$	2,528	$	5,666	$	9,382,043
Commercial real estate
Owner occupied	2,316,165		624		—		124		748		2,316,913
Non-owner occupied	5,007,644		4,661		—		11,913		16,574		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,176,908		—		—		—		—		1,176,908
Land	775,248		—		—		—		—		775,248
Residential real estate	2,134,346		7,627		1,721		3,970		13,318		2,147,664
Consumer	57,083		—		—		—		—		57,083
Total loans	$	21,065,187	$	15,413	$	2,358	$	18,535	$	36,306	$	21,101,493

 

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,753,111	$	3,187	$	416	$	5,928	$	9,531	$	7,762,642
Commercial real estate
Owner occupied	2,320,321		4,441		—		618		5,059		2,325,380
Non-owner occupied	4,051,837		—		—		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,382,664		—		—		—		—		1,382,664
Land	751,613		—		476		—		476		752,089
Residential real estate	1,182,933		9,316		4,010		8,096		21,422		1,204,355
Consumer	69,830		—		—		241		241		70,071
Total loans	$	17,673,900	$	16,944	$	4,902	$	14,883	$	36,729	$	17,710,629

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	December 31, 2019								December 31, 2018
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial and industrial	$	19,080	$	5,421	$	24,501	$	—	$	7,639	$	7,451	$	15,090	$	—
Commercial real estate
Owner occupied	4,418		124		4,542		—		—		—		—		594
Non-owner occupied	7,265		11,913		19,178		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	2,147		—		2,147		—		—		476		476		—
Land	—		—		—		—		—		—		—		—
Residential real estate	1,231		4,369		5,600		—		552		11,387		11,939		—
Consumer	—		—		—		—		—		241		241		—
Total	$	34,141	$	21,827	$	55,968	$	—	$	8,191	$	19,555	$	27,746	$	594

The reduction in interest income associated with loans on non-accrual status was approximately $2.2 million, $2.3 million, and $2.4 million for the years ended December 31, 2019, 2018, and 2017, respectively.

The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, the Company classifies problem and potential problem loans as Special Mention, Substandard, Doubtful, and Loss. Substandard loans include those characterized by well-defined weaknesses and carry the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful, or risk rated eight, have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The final rating of Loss covers loans considered uncollectible and having such little recoverable value that it is not practical to defer writing off the asset. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that warrant management’s close attention, are deemed to be Special Mention. Risk ratings are updated, at a minimum, quarterly.

The following tables present loans held for investment by risk rating: 

	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	9,265,823	$	65,893	$	49,878	$	449	$	—	$	9,382,043
Commercial real estate
Owner occupied	2,265,566		9,579		41,768		—		—		2,316,913
Non-owner occupied	4,913,007		64,161		47,050		—		—		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,157,169		17,592		2,147		—		—		1,176,908
Land	773,868		1,380		—		—		—		775,248
Residential real estate	2,141,336		366		5,962		—		—		2,147,664
Consumer	57,073		10		—		—		—		57,083
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	20,785,118	$	158,907	$	120,897	$	265	$	—	$	21,065,187
Past due 30 - 59 days	8,263		58		7,092		—		—		15,413
Past due 60 - 89 days	1,481		16		861		—		—		2,358
Past due 90 days or more	396		—		17,955		184		—		18,535
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,574,506	$	61,202	$	126,356	$	578	$	—	$	7,762,642
Commercial real estate
Owner occupied	2,255,513		12,860		57,007		—		—		2,325,380
Non-owner occupied	4,030,350		12,982		8,505		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,378,624		1,210		2,830		—		—		1,382,664
Land	751,012		—		1,077		—		—		752,089
Residential real estate	1,191,571		527		12,257		—		—		1,204,355
Consumer	69,755		75		241		—		—		70,071
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	17,400,616	$	87,264	$	186,020	$	—	$	—	$	17,673,900
Past due 30 - 59 days	11,255		1,580		4,109		—		—		16,944
Past due 60 - 89 days	719		12		3,767		404		—		4,902
Past due 90 days or more	332		—		14,377		174		—		14,883
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

The table below reflects the recorded investment in loans classified as impaired: 

	December 31,
	2019			2018
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	20,979		$	986
Impaired loans without a specific valuation allowance under ASC 310 (2)	95,324			111,266
Total impaired loans	$	116,303		$	112,252
Valuation allowance related to impaired loans	$	(2,776	)	$	(681	)

(1) Includes no TDR loans at December 31, 2019 and 2018.

(2) Includes TDR loans of $38.9 million and $44.5 million at December 31, 2019 and 2018, respectively.

The following table presents impaired loans by class: 

	December 31,
	2019		2018
	(in thousands)
Commercial and industrial	$	48,984	$	63,896
Commercial real estate
Owner occupied	17,736		6,530
Non-owner occupied	35,538		12,407
Multi-family	—		—
Construction and land development
Construction	2,147		—
Land	6,274		9,403
Residential real estate	5,600		19,744
Consumer	24		272
Total	$	116,303	$	112,252

A valuation allowance is established for an impaired loan when the fair value of the loan is less than the recorded investment. In certain cases, portions of impaired loans are written down to realizable value instead of establishing a valuation allowance and are included, when applicable, in the table above as “Impaired loans without a specific valuation allowance under ASC 310.” However, before concluding that an impaired loan needs no associated valuation allowance, an assessment is made to consider all available and relevant information for the method used to evaluate impairment and the type of loan being assessed. The valuation allowance disclosed above is included in the allowance for credit losses reported on the Consolidated Balance Sheets as of December 31, 2019 and 2018.

The following table presents average investment in impaired loans by loan class: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Commercial and industrial	$	45,223	$	52,496	$	33,519
Commercial real estate
Owner occupied	15,829		7,682		18,692
Non-owner occupied	25,163		15,375		22,000
Multi-family	—		—		—
Construction and land development
Construction	13,315		—		—
Land	7,716		9,547		13,558
Residential real estate	13,882		19,425		16,893
Consumer	159		300		204
Total	$	121,287	$	104,825	$	104,866

The average investment in TDR loans for the years ended December 31, 2019, 2018, and 2017 was $52.9 million, $51.2 million, and $55.5 million, respectively.

The following table presents interest income on impaired loans by class: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Commercial and industrial	$	1,857	$	2,113	$	1,077
Commercial real estate
Owner occupied	815		491		677
Non-owner occupied	821		937		1,074
Multi-family	—		—		—
Construction and land development
Construction	715		—		—
Land	474		566		699
Residential real estate	329		381		516
Consumer	1		2		3
Total	$	5,012	$	4,490	$	4,046

The Company is not committed to lend significant additional funds on these impaired loans.

The following table summarizes nonperforming assets: 

	December 31,
	2019		2018
	(in thousands)
Non-accrual loans (1)	$	55,968	$	27,746
Loans past due 90 days or more on accrual status	—		594
Accruing troubled debt restructured loans	28,356		36,458
Total nonperforming loans	84,324		64,798
Other assets acquired through foreclosure, net	13,850		17,924
Total nonperforming assets	$	98,174	$	82,722

(1) Includes non-accrual TDR loans of $10.6 million and $8.0 million at December 31, 2019 and 2018, respectively.

Loans Acquired with Deteriorated Credit Quality

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Balance, at beginning of period	$	3,767		$	9,324		$	15,177
Additions due to acquisition	—			—			—
Reclassifications from non-accretable to accretable yield (1)	—			683			2,086
Accretion to interest income	(570		)	(1,018		)	(2,797		)
Reversal of fair value adjustments upon disposition of loans	(923		)	(5,222		)	(5,142		)
Balance, at end of period	$	2,274		$	3,767		$	9,324

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

Allowance for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Year Ended December 31,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2019
Beginning Balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
Charge-offs	141			139			594			8,120			128			9,122
Recoveries	(91		)	(909		)	(412		)	(4,265		)	(25		)	(5,702		)
Provision	1,431			11,674			2,620			3,039			(264		)	18,500
Ending balance	$	23,894		$	47,273		$	13,714		$	82,302		$	614		$	167,797
2018
Beginning Balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
Charge-offs	1			233			1,038			15,034			114			16,420
Recoveries	(1,433		)	(1,237		)	(947		)	(2,427		)	(43		)	(6,087		)
Provision	1,482			2,177			5,867			13,198			276			23,000
Ending balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			2,269			447			8,186			102			11,004
Recoveries	(1,229		)	(2,897		)	(1,778		)	(3,112		)	(84		)	(9,100		)
Provision	(2,805		)	5,347			318			14,268			122			17,250
Ending balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050

The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2019;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	11,913	$	6,919	$	—	$	2,147	$	—	$	20,979
Impaired loans with no allowance recorded	17,736		23,625		42,065		5,600		6,274		24		95,324
Total loans individually evaluated for impairment	17,736		35,538		48,984		5,600		8,421		24		116,303
Loans collectively evaluated for impairment	2,296,342		5,159,921		9,333,059		2,142,045		1,943,735		57,059		20,932,161
Loans acquired with deteriorated credit quality	2,835		50,175		—		19		—		—		53,029
Total recorded investment	$	2,316,913	$	5,245,634	$	9,382,043	$	2,147,664	$	1,952,156	$	57,083	$	21,101,493
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	11,949	$	9,844	$	—	$	2,262	$	—	$	24,055
Impaired loans with no allowance recorded	18,681		24,738		43,848		5,708		6,413		52		99,440
Total loans individually evaluated for impairment	18,681		36,687		53,692		5,708		8,675		52		123,495
Loans collectively evaluated for impairment	2,297,168		5,177,477		9,312,100		2,113,893		1,963,116		57,383		20,921,137
Loans acquired with deteriorated credit quality	3,577		60,191		—		72		—		—		63,840
Total unpaid principal balance	$	2,319,426	$	5,274,355	$	9,365,792	$	2,119,673	$	1,971,791	$	57,435	$	21,108,472
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	1,219	$	1,050	$	—	$	507	$	—	$	2,776
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		1,219		1,050		—		507		—		2,776
Loans collectively evaluated for impairment	13,842		32,114		81,252		13,714		23,387		614		164,923
Loans acquired with deteriorated credit quality	—		98		—		—		—		—		98
Total allowance for credit losses	$	13,842	$	33,431	$	82,302	$	13,714	$	23,894	$	614	$	167,797

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2018;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	623	$	363	$	—	$	—	$	986
Impaired loans with no allowance recorded	6,530		12,407		63,273		19,381		9,403		272		111,266
Total loans individually evaluated for impairment	6,530		12,407		63,896		19,744		9,403		272		112,252
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	3,979		79,557		—		19		—		—		83,555
Total recorded investment	$	2,325,380	$	4,213,428	$	7,762,642	$	1,204,355	$	2,134,753	$	70,071	$	17,710,629
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	1,482	$	363	$	—	$	—	$	1,845
Impaired loans with no allowance recorded	11,852		18,155		103,992		27,979		25,624		10,632		198,234
Total loans individually evaluated for impairment	11,852		18,155		105,474		28,342		25,624		10,632		200,079
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	5,315		95,680		4,352		72		—		—		105,419
Total unpaid principal balance	$	2,332,038	$	4,235,299	$	7,808,572	$	1,213,006	$	2,150,974	$	80,431	$	17,820,320
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	621	$	60	$	—	$	—	$	681
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		621		60		—		—		681
Loans collectively evaluated for impairment	14,286		20,456		82,488		11,216		22,513		981		151,940
Loans acquired with deteriorated credit quality	—		87		9		—		—		—		96
Total allowance for credit losses	$	14,286	$	20,543	$	83,118	$	11,276	$	22,513	$	981	$	152,717

Troubled Debt Restructurings

A TDR loan is a loan on which the Company, for reasons related to a borrower’s financial difficulties, grants a concession to the borrower that the Company would not otherwise consider. The loan terms that have been modified or restructured due to a borrower’s financial situation include, but are not limited to, a reduction in the stated interest rate, an extension of the maturity or renewal of the loan at an interest rate below current market, a reduction in the face amount of the debt, a reduction in the accrued interest, or deferral of interest payments. The majority of the Company's modifications are extensions in terms or deferral of payments which result in no lost principal or interest followed by reductions in interest rates or accrued interest. A TDR loan is also considered impaired. Consistent with regulatory guidance, a TDR loan that is subsequently modified in another restructuring agreement but has shown sustained performance and classification as a TDR, will be removed from TDR status provided that the modified terms were market-based at the time of modification.

The following table presents information on the financial effects of TDR loans by class for the periods presented:

	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	4	$	11,451	$	—	$	—	$	11,451	$	—
Commercial real estate
Owner occupied	2	2,026		—		—		2,026		—
Non-owner occupied	2	11,546		—		—		11,546		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	1	17,022		—		—		17,022		—
Land	—	—		—		—		—		—
Residential real estate	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	9	$	42,045	$	—	$	—	$	42,045	$	—

	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	35,132	$	—	$	—	$	35,132	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	294		—		—		294		—
Consumer	—	—		—		—		—		—
Total	12	$	35,426	$	—	$	—	$	35,426	$	—

	Year Ended December 31, 2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	3,513	$	—	$	—	$	3,513	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	3	2,993		—		—		2,993		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	122		—		—		122		—
Consumer	—	—		—		—		—		—
Total	15	$	6,628	$	—	$	—	$	6,628	$	—

The following table presents TDR loans by class for which there was a payment default during the period: 

	Year Ended December 31,
	2019			2018			2017
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	—	$	—	1	$	87
Commercial real estate
Owner occupied	—	—		—	—		1	135
Non-owner occupied	—	—		—	—		1	308
Multi-family	—	—		—	—		—	—
Construction and land development
Construction	—	—		—	—		2	1,119
Land	—	—		—	—		—	—
Residential real estate	2	371		—	—		1	48
Consumer	—	—		—	—		—	—
Total	2	$	371	—	$	—	6	$	1,697

A TDR loan is deemed to have a payment default when it becomes past due 90 days, goes on non-accrual, or is restructured again. Payment defaults, along with other qualitative indicators, are considered by management in the determination of the allowance for credit losses.

At December 31, 2019 and 2018, commitments outstanding on TDR loans totaled $0.2 million and $1.5 million, respectively.

Loan Purchases and Sales

The Company has a residential mortgage acquisition program, in which it partners with strategic third parties to execute flow and bulk residential loan purchases that meet the Company's goals and underwriting criteria. The following table presents these residential and other secondary market loan purchases and sales by loan portfolio segment: 

	Year Ended December 31,
	2019		2018
	(in thousands)
Loan purchases
Commercial and industrial	$	1,014,894	$	690,122
Commercial real estate - non-owner occupied	49,211		—
Construction and land development	34,490		27,517
Residential real estate	1,434,812		883,179
Total	$	2,533,407	$	1,600,818
Loan sales
Carrying value	$	98,963	$	66,477
Gain on sale	690		2,638

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Deposits (Notes)

12 Months Ended

Dec. 31, 2019

Deposit [Abstract]

Deposits [Abstract]

7. DEPOSITS

The table below summarizes deposits by type: 

	December 31,
	2019		2018
	(in thousands)
Non-interest-bearing demand deposits	$	8,537,905	$	7,456,141
Interest-bearing transaction accounts	2,760,865		2,555,609
Savings and money market accounts	9,120,747		7,330,709
Time certificates of deposit ($250,000 or more)	1,426,133		1,009,900
Other time deposits	950,843		825,088
Total deposits	$	22,796,493	$	19,177,447

The summary of the contractual maturities for all time deposits as of December 31, 2019 is as follows: 

	December 31,
	(in thousands)
2020	$	2,259,182
2021	105,237
2022	7,953
2023	3,502
2024	1,102
Total	$	2,376,976

WAB is a participant in the Promontory Interfinancial Network, a network that offers deposit placement services such as CDARS and ICS, which offer products that qualify large deposits for FDIC insurance. Federal banking law and regulation places restrictions on depository institutions regarding brokered deposits because of the general concern that these deposits are not relationship-based and are at a greater risk of being withdrawn, thus posing liquidity risk for institutions that gather brokered deposits in significant amounts. At December 31, 2019 and 2018, the Company had $407.7 million and $322.9 million, respectively, of reciprocal CDARS deposits and $661.8 million and $706.9 million, respectively, of ICS deposits. At December 31, 2019 and 2018, the Company had $1.1 billion and $718.2 million, respectively, of wholesale brokered deposits. In addition, non-interest-bearing deposits for which the Company provides account holders with earnings credits or referral fees totaled $3.1 billion and $2.3 billion at December 31, 2019 and 2018, respectively. The Company incurred $30.5 million and $18.0 million in deposit related costs on these deposits during the years ended December 31, 2019 and 2018, respectively.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

15. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments and Letters of Credit

The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. They involve, to varying degrees, elements of credit risk in excess of amounts recognized on the Consolidated Balance Sheets.

Lines of credit are obligations to lend money to a borrower. Credit risk arises when the borrower's current financial condition may indicate less ability to pay than when the commitment was originally made. In the case of letters of credit, the risk arises from the potential failure of the customer to perform according to the terms of a contract. In such a situation, the third party might draw on the letter of credit to pay for completion of the contract and the Company would look to its customer to repay these funds with interest. To minimize the risk, the Company uses the same credit policies in making commitments and conditional obligations as it would for a loan to that customer.

Letters of credit and financial guarantees are commitments issued by the Company to guarantee the performance of a customer to a third party in borrowing arrangements. The Company generally has recourse to recover from the customer any amounts paid under the guarantees. Typically, letters of credit issued have expiration dates within one year.

A summary of the contractual amounts for unfunded commitments and letters of credit are as follows: 

	December 31,
	2019		2018
	(in thousands)
Commitments to extend credit, including unsecured loan commitments of $895,175 at December 31, 2019 and $770,114 at December 31, 2018	$	8,348,421	$	7,556,741
Credit card commitments and financial guarantees	302,909		237,312
Letters of credit, including unsecured letters of credit of $5,850 at December 31, 2019 and $21,879 at December 31, 2018	175,778		390,161
Total	$	8,827,108	$	8,184,214

The following table represents the contractual commitments for lines and letters of credit by maturity at December 31, 2019: 

			Amount of Commitment Expiration per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		After 5 Years
	(in thousands)
Commitments to extend credit	$	8,348,421	$	2,873,303	$	3,170,848	$	1,299,506	$	1,004,764
Credit card commitments and financial guarantees	302,909		302,909		—		—		—
Letters of credit	175,778		156,375		18,786		617		—
Total	$	8,827,108	$	3,332,587	$	3,189,634	$	1,300,123	$	1,004,764

Commitments to extend credit are agreements to lend to a customer provided that there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company enters into credit arrangements that generally provide for the termination of advances in the event of a covenant violation or other event of default. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. The commitments are collateralized by the same types of assets used as loan collateral.

The Company has exposure to credit losses from unfunded commitments and letters of credit. As funds have not been disbursed on these commitments, they are not reported as loans outstanding. Credit losses related to these commitments are included in other liabilities as a separate loss contingency and are not included in the allowance for credit losses reported in "Note 3. Loans, Leases and Allowance for Credit Losses" of these Consolidated Financial Statements. This loss contingency for unfunded loan commitments and letters of credit was $9.0 million and $8.2 million as of December 31, 2019 and 2018, respectively. Changes to this liability are adjusted through other expense in the Consolidated Income Statements.

Concentrations of Lending Activities

The Company’s lending activities are driven in large part by the customers served in the market areas where the Company has branch offices in the states of Arizona, Nevada, and California. Despite the geographic concentration of lending activities, the Company does not have a single external customer from which it derives 10% or more of its revenues. The Company monitors concentrations within four broad categories: geography, industry, product, and collateral. The Company's loan portfolio includes significant credit exposure to the CRE market. As of December 31, 2019 and 2018, CRE related loans accounted for approximately 45% and 49% of total loans, respectively. Substantially all of these loans are secured by first liens with an initial loan-to-value ratio of generally not more than 75%. Approximately 31% and 36% of these CRE loans, excluding construction and land loans, were owner occupied as of December 31, 2019 and 2018, respectively.

Contingencies

The Company is involved in various lawsuits of a routine nature that are being handled and defended in the ordinary course of the Company’s business. Expenses are being incurred in connection with these lawsuits, but in the opinion of management, based in part on consultation with outside legal counsel, the resolution of these lawsuits and associated defense costs will not have a material impact on the Company’s financial position, results of operations, or cash flows.

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Related Parties (Notes)

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

19. RELATED PARTY TRANSACTIONS

Principal stockholders, directors, and executive officers of the Company, their immediate family members, and companies they control or own more than a 10% interest in, are considered to be related parties. In the ordinary course of business, the Company engages in various related party transactions, including extending credit and bank service transactions. All related party transactions are subject to review and approval pursuant to the Company's Related Party Transactions policy.

Federal banking regulations require that any extensions of credit to insiders and their related interests not be offered on terms more favorable than would be offered to non-related borrowers of similar creditworthiness. The following table summarizes the aggregate activity in such loans for the periods indicated:

	Year Ended December 31,
	2019			2018
	(in thousands)
Balance, beginning	$	4,580		$	5,918
New loans	—			—
Advances	323			—
Repayments and other	(1,091		)	(1,338		)
Balance, ending	$	3,812		$	4,580

None of these loans are past due, on non-accrual status or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2019 or 2018. The interest income associated with these loans was approximately $0.2 million, $0.3 million and $0.5 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Loan commitments outstanding with related parties totaled approximately $10.6 million and $30.7 million at December 31, 2019 and 2018, respectively.

The Company also accepts deposits from related parties, which totaled $100.1 million and $87.9 million at December 31, 2019 and 2018, respectively, with related interest expense totaling approximately $0.3 million during the year ended December 31, 2019, and $0.2 million during each of the years ended December 31, 2018 and 2017.

Donations, sponsorships, and other payments to related parties totaled less than $1.0 million during the years ended December 31, 2019 and 2017 and totaled $8.1 million during the year ended December 31, 2018. Total related party payments of $8.1 million for the year ended December 31, 2018 include a donation to the Company's charitable foundation of $7.6 million, which consisted of a non-cash donation of OREO property of $6.9 million and a cash donation of $0.7 million.

During the year ended December 31, 2018, the Company sold an OREO property to a related party with a carrying value $0.9 million and recognized a loss of $0.2 million on the sale.

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid in Capital [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Accumulated (Deficit) [Member]
Beginning balance at Dec. 31, 2016	$ 1,891,529	$ 10	$ 1,400,140	$ (26,362)	$ (4,695)	$ 522,436
Beginning balance, shares at Dec. 31, 2016		105,071,000
Net income	325,492					325,492
Exercise of stock options, shares		38,000
Exercise of stock options	846		846
Restricted stock grants, net, shares		648,000
Restricted stock grants, net	$ 23,554		23,554
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	269,865	270,000
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 13,811			13,811
Other comprehensive (loss) income, net	1,550				1,550
Ending balance at Dec. 31, 2017	2,229,698	$ 10	1,424,540	(40,173)	(3,145)	848,466
Ending balance, shares at Dec. 31, 2017		105,487,000
Net income	435,788					435,788
Exercise of stock options, shares		22,000
Exercise of stock options	554		554
Restricted stock grants, net, shares		564,000
Restricted stock grants, net	$ 25,711		25,711
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	223,125	223,000
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 12,910			(12,910)
Stock Repurchased and Retired During Period, Shares		(901,000)
Stock Repurchased and Retired During Period, Value	(35,688)		(33,081)			(2,607)
Other comprehensive (loss) income, net	(29,419)				(29,419)
Ending balance at Dec. 31, 2018	2,613,734	$ 10	1,417,724	(53,083)	(33,622)	1,282,705
Ending balance, shares at Dec. 31, 2018		104,949,000
Stock Repurchase Program, Authorized Amount	250,000
Net income	499,171					499,171
Exercise of stock options, shares		3,000
Exercise of stock options	80		80
Restricted stock grants, net, shares		605,000
Restricted stock grants, net	$ 26,238		26,238
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	210,657	211,000
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation	$ 9,645			9,645
Stock Repurchased and Retired During Period, Shares	(2,822,402)	(2,822,000)
Stock Repurchased and Retired During Period, Value	$ (120,131)		(69,901)			(50,230)
Dividends, Common Stock, Cash	(51,329)					(51,329)
Other comprehensive (loss) income, net	58,630				58,630
Ending balance at Dec. 31, 2019	$ 3,016,748	$ 10	$ 1,374,141	$ (62,728)	$ 25,008	$ 1,680,317
Ending balance, shares at Dec. 31, 2019		102,524,000

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale, Amortized Cost		$ 3,339,888
Debt Securities, Held-to-maturity, Fair Value		$ 298,648
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued		106,741,870
Common stock, shares outstanding	102,524,000	104,949,000

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Derivatives and Hedging Additional Information (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 16, 2016	Jun. 29, 2015
Derivative [Line Items]
Derivative, Fair Value, Amount Offset Against Collateral, Net	$ 55,500,000	$ 44,900,000	$ 53,600,000
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease)	53,292,000	23,039,000
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease)	401,000	19,691,000
Derivative, Collateral, Right to Reclaim Securities	29,200,000	7,600,000	25,000,000.0
Collateral posted by this counterparty	$ 84,700,000
Subordinated Debentures Maturing July 2025 [Member] | Subordinated Debt [Member]
Derivative [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Instrument, Face Amount					$ 150,000,000.0
Subordinated Debentures Maturing July 2056 [Member] | Subordinated Debt [Member]
Derivative [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				6.25%
Debt Instrument, Face Amount	$ 175,000,000.0			$ 175,000,000.0
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	862,952,000	965,705,000	993,432,000
Derivative Asset, Fair Value, Gross Asset	1,778,000	2,162,000	1,703,000
Derivative Liability, Fair Value, Gross Liability	55,471,000	44,892,000	53,581,000
Derivative Instruments Notional Amount Netting Adjustments	0	0	0
Derivative Netting Adjustments	21,000	2,162,000	896,000
Largest gross exposure (positive derivative NPV) to an individual counterparty	1,757,000	0	807,000
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	862,952,000	965,705,000	993,432,000
Derivative Asset, Fair Value, Gross Asset	1,778,000	2,162,000	1,703,000
Derivative Liability, Fair Value, Gross Liability	55,471,000	44,892,000	53,581,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	9,643,000	52,068,000	122,304,000
Derivative Liability, Fair Value, Gross Liability	99,000	228,000	1,759,000
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	125,000	481,000	2,008,000
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Derivative, Notional Amount	2,932,000	2,378,000	36,969,000
Derivative Asset, Fair Value, Gross Asset	81,000	27,000	776,000
Derivative Liability, Fair Value, Gross Liability	81,000	27,000	776,000
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivative [Line Items]
Derivative, Notional Amount	6,711,000	49,690,000	85,335,000
Derivative Asset, Fair Value, Gross Asset	44,000	454,000	1,232,000
Derivative Liability, Fair Value, Gross Liability	$ 18,000	$ 201,000	$ 983,000

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	$ 5,619	$ 6,255
Effective Income Tax Rate Reconciliation, Percent	17.39%	14.61%	27.96%
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 1,100	$ 300
Decreased deferred tax assets net	14,000
Recognized net deferred tax asset	18,025	31,990
Operating Loss Carryforwards, Valuation Allowance	0	$ 2,373
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	200
Tax Credit Carryforward, Amount	1,400
Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Operating Loss Carryforwards	5,500
Tax Credit Carryforward, Amount	0
Operating Loss Carryforwards	45,800
ARIZONA
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 2,200

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Loans, Leases and Allowance for Credit Losses - Recorded Investment in Loans Classified as Impaired (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Impaired loans with an allowance recorded	$ 20,979	$ 986
Impaired loans with no allowance recorded	95,324	111,266
Total impaired loans	116,303	112,252
Valuation allowance related to impaired loans	(2,776)	(681)
Troubled Debt Restructured Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Impaired loans with an allowance recorded	0
Impaired loans with no allowance recorded	$ 38,900	$ 44,500

XML

Derivatives and Hedging Fair Value of Derivative Contracts (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Hedged Liability, Fair Value Hedge	$ (319,197)	$ (299,401)
Hedged Asset, Fair Value Hedge	578,063	650,428
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	862,952	965,705	$ 993,432
Derivative Asset, Fair Value, Gross Asset	1,778	2,162	1,703
Derivative Liability, Fair Value, Gross Liability	55,471	44,892	53,581
Derivative Instruments Notional Amount Netting Adjustments	0	0	0
Derivative Netting Adjustments	21	2,162	896
Positive NPVs	1,757	0	807
Negative NPVs	55,450	42,730	52,685
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	862,952	965,705	993,432
Derivative Asset, Fair Value, Gross Asset	1,778	2,162	1,703
Derivative Liability, Fair Value, Gross Liability	55,471	44,892	53,581
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	9,643	52,068	122,304
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value	125	481	2,008
Derivative Liability, Fair Value, Gross Liability	99	228	1,759
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	2,932	2,378	36,969
Derivative Asset, Fair Value, Gross Asset	81	27	776
Derivative Liability, Fair Value, Gross Liability	81	27	776
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	6,711	49,690	85,335
Derivative Asset, Fair Value, Gross Asset	44	454	1,232
Derivative Liability, Fair Value, Gross Liability	$ 18	$ 201	$ 983

XML

Investment Securities - Investment Securities by Credit Rating Type (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	$ 485,107	$ 302,905
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	3,346,310	3,276,988
Investment securities - equity	138,701	115,061
Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,412,060	1,530,124
Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	94,253	100,106
Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,129,227	924,594
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	10,000	38,188
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	999	1,984
Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	86,197	63,919
Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	27,040	28,617
Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	10,142	15,327
Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	99,961	99,380
Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	7,773
CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	52,504	51,142
AAA [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,149,519	953,680
Investment securities - equity	0	0
AAA [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,096,909	887,520
AAA [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
AAA [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AAA [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0
AAA [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Split-rated AAA/AA Plus [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,520,168	1,682,548
Investment securities - equity	25,375	25,375
Split-rated AAA/AA Plus [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,412,060	1,530,124
Split-rated AAA/AA Plus [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	94,253	100,106
Split-rated AAA/AA Plus [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Split-rated AAA/AA Plus [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	10,000	38,188
Split-rated AAA/AA Plus [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	999	1,984
Split-rated AAA/AA Plus [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Split-rated AAA/AA Plus [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Split-rated AAA/AA Plus [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Split-rated AAA/AA Plus [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Split-rated AAA/AA Plus [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0
Split-rated AAA/AA Plus [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	25,375	25,375
AA Plus to AA- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	358,332	340,751
Investment securities - equity	0	0
AA Plus to AA- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	30,675	34,342
AA Plus to AA- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
AA Plus to AA- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
AA Plus to AA- [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0
AA Plus to AA- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
A Plus to A- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	238,443	219,188
Investment securities - equity	0	0
A Plus to A- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
A Plus to A- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
A Plus to A- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	181	343
A Plus to A- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
A Plus to A- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
A Plus to A- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
A Plus to A- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
A Plus to A- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
A Plus to A- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	66,530	66,515
A Plus to A- [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0
A Plus to A- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
BBB Plus to BBB- [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	60,759	62,429
Investment securities - equity	82,851	45,771
BBB Plus to BBB- [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BBB Plus to BBB- [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BBB Plus to BBB- [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	288	947
BBB Plus to BBB- [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BBB Plus to BBB- [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BBB Plus to BBB- [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	82,851	45,771
BBB Plus to BBB- [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	27,040	28,617
BBB Plus to BBB- [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BBB Plus to BBB- [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	33,431	32,865
BBB Plus to BBB- [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0
BBB Plus to BBB- [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
BB Plus and below [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	11,316	16,769
Investment securities - equity	2,105	3,693
BB Plus and below [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BB Plus and below [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BB Plus and below [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	1,174	1,442
BB Plus and below [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BB Plus and below [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BB Plus and below [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	2,105	3,693
BB Plus and below [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BB Plus and below [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	10,142	15,327
BB Plus and below [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
BB Plus and below [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0
BB Plus and below [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	0	0
Corporate Credit Quality Indicator Unrated [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	7,773	1,623
Investment securities - equity	28,370	40,222
Corporate Credit Quality Indicator Unrated [Member] | Residential mortgage-backed securities issued by GSEs
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | Commercial Mortgage Backed Securities Issued By US Government Sponsored Enterprise [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | Private label residential mortgage-backed securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | Preferred Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	1,241	14,455
Corporate Credit Quality Indicator Unrated [Member] | Trust preferred securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | Collateralized debt obligations [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | Corporate debt securities [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Corporate Credit Quality Indicator Unrated [Member] | Taxable Municipal Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	7,773
Corporate Credit Quality Indicator Unrated [Member] | CRA investments [Member]
Debt Securities, Available-for-sale [Line Items]
Investment securities - equity	$ 27,129	$ 25,767

XML

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		10,500,000
Treasury Stock Acquired, Average Cost Per Share		$ 45.80	$ 57.88	$ 51.16
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount		$ 23.0
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term		1 year 7 months 13 days
Common Stock, Shares, Issued	104,527,544		106,741,870
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		516,000	425,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		960,000	1,027,000	1,142,000
Weighted Average Selling Price Per Share	$ 42.53
Stock Repurchase Program, Authorized Amount			$ 250.0		$ 250.0
Stock Repurchased and Retired During Period, Shares		2,822,402
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchased and Retired During Period, Shares		2,822,000	901,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense		$ 6.9	$ 6.4	$ 6.5
Tax Year 2016 [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		202,776
Grant year 2017 [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		163,901

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Stockholders' Equity Common Stock Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020
Common Stock Repurchase [Abstract]
Stock Repurchase Program, Authorized Amount			$ 250,000	$ 250,000
Stock Repurchased and Retired During Period, Shares		2,822,402
Weighted Average Selling Price Per Share	$ 42.53
Stock Repurchased and Retired During Period, Value		$ 120,131	$ 35,688

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Loans, Leases and Allowance for Credit Losses - Contractual Aging of Loan Portfolio by Class of Loans Including Loans Held for Sale and Excluding Deferred Fees/Costs (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	$ 55,968	$ 27,746
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	594
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	4,542	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	594
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	19,178	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	24,501	15,090
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	2,147	476
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	5,600	11,939
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Consumer [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	241
Financing Receivable, 90 Days or More Past Due, Still Accruing	0	0
Performing Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	34,141	8,191
Performing Financial Instruments [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	4,418	0
Performing Financial Instruments [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	7,265	0
Performing Financial Instruments [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Performing Financial Instruments [Member] | Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	19,080	7,639
Performing Financial Instruments [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	2,147	0
Performing Financial Instruments [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Performing Financial Instruments [Member] | Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	1,231	552
Performing Financial Instruments [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Nonperforming Financial Instruments [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	21,827	19,555
Nonperforming Financial Instruments [Member] | Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	124	0
Nonperforming Financial Instruments [Member] | Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	11,913	0
Nonperforming Financial Instruments [Member] | Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Nonperforming Financial Instruments [Member] | Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	5,421	7,451
Nonperforming Financial Instruments [Member] | Construction and land development [Member] | Construction [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	476
Nonperforming Financial Instruments [Member] | Construction and land development [Member] | Land [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	0	0
Nonperforming Financial Instruments [Member] | Residential real estate [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	4,369	11,387
Nonperforming Financial Instruments [Member] | Consumer [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual	$ 0	$ 241

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Letters of credit expiration period	1 year
Percentage of first liens initial loan to value ratio	75.00%
Percent of commercial real estate loans owner occupied	31.00%	36.00%
Commercial Real Estate Portfolio Segment [Member] | Loans Receivable [Member] | Credit Concentration Risk [Member]
Loss Contingencies [Line Items]
Percent of commercial real estate related loans	45.00%	49.00%
Unfunded Loan Commitment [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual	$ 9.0	$ 8.2

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Parent Company Parent Company Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Financial Statements, Captions [Line Items]
Non-interest income	$ 16,027	$ 19,441	$ 14,218	$ 15,410	$ 13,611	$ 4,418	$ 13,444	$ 11,643	$ 65,095	$ 43,116	$ 45,344
Interest expense	43,447	49,186	48,167	43,832	38,455	31,178	27,494	20,477	184,633	117,604	60,849
Non-interest expense	129,699	125,955	114,213	112,914	111,129	113,841	102,548	98,149	482,781	425,667	360,941
Income before income taxes and equity in undistributed earnings of subsidiaries	154,301	155,908	147,686	146,332	139,995	118,615	130,004	121,714	604,226	510,328	451,817
Income tax benefit	(26,236)	(28,533)	(24,750)	(25,536)	(20,909)	(7,492)	(25,325)	(20,814)	(105,055)	(74,540)	(126,325)
Net income	$ 128,065	$ 127,375	$ 122,936	$ 120,796	$ 119,086	$ 111,123	$ 104,679	$ 100,900	499,171	435,788	325,492
Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends from subsidiaries									134,000	152,116	97,264
Interest income									2,818	2,905	2,547
Non-interest income									5,112	761	2,470
Total income									141,930	155,782	102,281
Interest expense									14,554	13,949	11,459
Non-interest expense									19,543	19,025	16,293
Total expense									34,097	32,974	27,752
Income before income taxes and equity in undistributed earnings of subsidiaries									107,833	122,808	74,529
Income tax benefit									5,628	10,436	5,229
Income before equity in undistributed earnings of subsidiaries									113,461	133,244	79,758
Equity in undistributed earnings of subsidiaries									385,710	302,544	245,734
Net income									$ 499,171	$ 435,788	$ 325,492

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Employee Benefit Plan Accumulated Benefit Obligation and Funded Status of SERP (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Defined Benefit Plan, Benefit Obligation	$ 11,756	$ 9,991	$ 8,891
Defined Benefit Plan, Service Cost	632	614
Defined Benefit Plan, Interest Cost	569	512
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	834	41
Defined Benefit Plan, Benefit Obligation, Benefits Paid	270	67
Defined Benefit Plan, Accumulated Benefit Obligation	$ (11,756)	$ (9,991)
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	5.25%	5.75%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	3.00%	3.00%

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Income Taxes Cumulative Tax Effects of Primary Difference (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	44,809		$	42,833
Lease liability (1)	20,264			—
Stock-based compensation	7,351			8,718
Net operating loss carryovers	5,619			6,255
Unrealized loss on AFS securities	—			16,047
Other	19,361			20,687
Total gross deferred tax assets	97,404			94,540
Deferred tax asset valuation allowance	—			(2,373		)
Total deferred tax assets	97,404			92,167
Deferred tax liabilities:
Right of use asset (1)	(18,823		)	—
Unrealized gain on AFS securities	(7,264		)	—
Unrealized gain on junior subordinated debt	(1,229		)	(5,833		)
Deferred loan costs	(10,789		)	(9,528		)
Insurance premiums	(4,514		)	(6,527		)
Premises and equipment	(8,372		)	(1,201		)
Estimated loss reserve	(14,890		)	(31,592		)
50(d) income	(6,792		)	(1,624		)
Other	(6,706		)	(3,872		)
Total deferred tax liabilities	(79,379		)	(60,177		)
Deferred tax assets, net	$	18,025		$	31,990

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Derivatives and Hedging (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position

The fair value of derivative contracts, after taking into account the effects of master netting agreements, is included in other assets or other liabilities on the Consolidated Balance Sheets, as indicated in the following table:

	December 31, 2019						December 31, 2018						December 31, 2017
			Fair Value						Fair Value						Fair Value
	Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities		Notional Amount		Derivative Assets		Derivative Liabilities
	(in thousands)
Derivatives designated as hedging instruments:
Fair value hedges
Interest rate swaps	$	862,952	$	1,778	$	55,471	$	965,705	$	2,162	$	44,892	$	993,432	$	1,703	$	53,581
Total	862,952		1,778		55,471		965,705		2,162		44,892		993,432		1,703		53,581
Netting adjustments (1)	—		21		21		—		2,162		2,162		—		896		896
Net derivatives in the balance sheet	$	862,952	$	1,757	$	55,450	$	965,705	$	—	$	42,730	$	993,432	$	807	$	52,685
Derivatives not designated as hedging instruments:
Foreign currency contracts	$	6,711	$	44	$	18	$	49,690	$	454	$	201	$	85,335	$	1,232	$	983
Interest rate swaps	2,932		81		81		2,378		27		27		36,969		776		776
Total	$	9,643	$	125	$	99	$	52,068	$	481	$	228	$	122,304	$	2,008	$	1,759

Largest Exposure To Individual Counterparty

The following table summarizes the Company's largest exposure to an individual counterparty at the dates indicated:

	December 31,
	2019		2018		2017
	(in thousands)
Largest gross exposure (derivative asset) to an individual counterparty	$	1,757	$	1,411	$	893
Collateral posted by this counterparty	1,610		—		—
Derivative liability with this counterparty	—		23,906		40,340
Collateral pledged to this counterparty	—		25,761		60,476
Net exposure after netting adjustments and collateral	$	147	$	—	$	—

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Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

14. INCOME TAXES

The provision for income taxes charged to operations consists of the following: 

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Current	$	110,184		$	91,249		$	37,854
Deferred	(5,129		)	(16,709		)	88,471
Total tax provision	$	105,055		$	74,540		$	126,325

The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate is summarized as follows: 

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Income tax at statutory rate	$	126,888		$	107,169		$	158,136
Increase (decrease) resulting from:
State income taxes, net of federal benefits	11,004			9,015			9,765
Tax-exempt income	(19,527		)	(18,322		)	(26,403		)
Change in federal rate applied to deferred items	—			—			(10,411		)
Federal NOL and other carryback items	—			(15,341		)	—
Excise tax	—			(137		)	9,689
Investment tax credits	(15,000		)	(6,673		)	(7,361		)
Other, net	1,690			(1,171		)	(7,090		)
Total tax provision	$	105,055		$	74,540		$	126,325

For the years ended December 31, 2019, 2018, and 2017 the Company's effective tax rate was 17.39%, 14.61%, and 27.96%, respectively. The increase in the effective tax rate from 2018 to 2019 is due primarily to management's decision during the third quarter of 2018 to carryback its 2017 federal NOLs. The decrease in the effective tax rate from 2017 to 2018 is due primarily to the decrease in the federal statutory rate effective in 2018, a reduction in excise taxes, and management's decision to carryback its 2017 federal NOLs. The reduction in excise taxes from 2017 to 2018 resulted from not deferring WAB's 2018 dividend from BW Real Estate as was the case in 2017. The Company's 2017 federal NOLs resulted from the acceleration of deductions into and deferral of revenue from 2017. As the federal income tax rate was higher in the years to which the carryback is applicable, a larger tax benefit results from the decision to carryback the 2017 federal NOLs, rather than carry forward these losses to future taxable years.

The cumulative tax effects of the primary temporary differences are shown in the following table:

	December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Allowance for credit losses	$	44,809		$	42,833
Lease liability (1)	20,264			—
Stock-based compensation	7,351			8,718
Net operating loss carryovers	5,619			6,255
Unrealized loss on AFS securities	—			16,047
Other	19,361			20,687
Total gross deferred tax assets	97,404			94,540
Deferred tax asset valuation allowance	—			(2,373		)
Total deferred tax assets	97,404			92,167
Deferred tax liabilities:
Right of use asset (1)	(18,823		)	—
Unrealized gain on AFS securities	(7,264		)	—
Unrealized gain on junior subordinated debt	(1,229		)	(5,833		)
Deferred loan costs	(10,789		)	(9,528		)
Insurance premiums	(4,514		)	(6,527		)
Premises and equipment	(8,372		)	(1,201		)
Estimated loss reserve	(14,890		)	(31,592		)
50(d) income	(6,792		)	(1,624		)
Other	(6,706		)	(3,872		)
Total deferred tax liabilities	(79,379		)	(60,177		)
Deferred tax assets, net	$	18,025		$	31,990

(1) Upon adoption of ASC 842 on January 1, 2019, a lease liability DTA and a right of use asset DTL were established and totaled $9.7 million and $9.1 million, respectively. While there may be significant changes in the separate DTA and DTL balances of these two items, the aggregate effect of these two changes will generally offset and therefore are not discussed as significant changes to the net deferred balance.

Deferred tax assets and liabilities are included in the Consolidated Financial Statements at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be reversed. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net deferred tax assets decreased $14.0 million to $18.0 million from December 31, 2018. This overall decrease in net deferred tax assets was primarily the result of the increases in the fair market value of AFS securities. In addition, there was a large decrease to the overall estimated loss reserve, which was largely offset by increases to DTLs related to premises and equipment and income associated with tax credits for lease pass-through transactions (50(d) income).

Although realization is not assured, the Company believes that the realization of the recognized net deferred tax asset of $18.0 million at December 31, 2019 is more-likely-than-not based on expectations as to future taxable income and based on available tax planning strategies that could be implemented if necessary to prevent a carryover from expiring.

As of December 31, 2019, the Company has no deferred tax valuation allowance. As of December 31, 2018, the Company had a deferred tax valuation allowance of $2.4 million related to net capital loss carryovers.

As of December 31, 2019, the Company’s gross federal NOL carryovers, all of which are subject to limitations under Section 382 of the IRC, totaled $45.8 million, for which a deferred tax asset of $5.5 million has been recorded, reflecting the expected benefit of these federal NOL carryovers remaining after application of the Section 382 limitation. The Company also has varying gross amounts of state NOL carryovers, primarily in Arizona. The gross Arizona NOL carryovers totaled approximately $2.2 million. A deferred tax asset of $0.2 million has been recorded to reflect the expected benefit of all state NOL carryovers remaining. If not utilized, a portion of the federal and state NOL carryovers will begin to expire in 2024. As of December 31, 2019, the Company had no federal tax credit carryovers and $1.4 million of state tax credit carryovers. If not utilized, a portion of the state tax credit carryovers will begin to expire in 2023. In management’s opinion, it is more-likely-than-not that the results of future operations will generate sufficient taxable income to realize all of the deferred tax benefits related to these NOL and tax credit carryovers.

The Company files income tax returns in the U.S. federal jurisdiction and in various states. With few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for years before 2015.

When tax returns are filed, it is highly certain that most positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the Consolidated Financial Statements in the period in which, based on all available evidence, management believes it is more-likely-than-not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits on the accompanying Consolidated Balance Sheets along with any associated interest and penalties payable to the taxing authorities upon examination.

The total gross activity of unrecognized tax benefits related to the Company's uncertain tax positions are shown in the following table:

	December 31,
	2019		2018
	(in thousands)
Beginning balance	$	484	$	1,038
Gross increases
Tax positions in prior periods	—		—
Current period tax positions	1,255		—
Gross decreases
Tax positions in prior periods	—		(247		)
Settlements	—		(307		)
Lapse of statute of limitations	—		—
Ending balance	$	1,739	$	484

During the year ended December 31, 2019, the Company added a new current year position, which resulted in a tax detriment of $0.8 million, inclusive of interest and penalties.

As of December 31, 2019 and 2018, the total amount of unrecognized tax benefits, net of associated deferred tax benefits, that would impact the effective tax rate, if recognized, is $1.1 million and $0.3 million, respectively. The Company anticipates that $0.1 million of the unrecognized tax benefits will be resolved within the next 12 months.

During the years ended December 31, 2019, 2018, and 2017, the Company recognized no additional amounts for interest and penalties. As of December 31, 2019 and 2018, the Company has accrued total liabilities of $0.1 million for penalties and no amounts for interest.

LIHTC and renewable energy projects

As discussed in "Note 1. Summary of Significant Accounting Policies," the Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing and renewable energy projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions. The limited liability entities are considered to be VIEs; however, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities.

At December 31, 2019, the Company’s exposure to loss as a result of its involvement in these entities was limited to $487.3 million, which reflects the Company’s recorded investment in these projects, net of certain unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities. During the years ended December 31, 2019, 2018, and 2017, the Company did not provide financial or other support to these entities that was not contractually required.

Investments in LIHTC and renewable energy total $409.4 million and $369.6 million as of December 31, 2019 and 2018, respectively. Unfunded LIHTC and renewable energy obligations are included as part of other liabilities on the Consolidated Balance Sheet and total $191.0 million and $196.3 million as of December 31, 2019 and 2018, respectively. For the years ended December 31, 2019, 2018, and 2017, $41.5 million, $35.9 million, and $25.4 million of amortization related to LIHTC investments was recognized as a component of income tax expense, respectively.

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Employee Benefit Plan (Notes)

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Plans

18. EMPLOYEE BENEFIT PLANS

The Company has a qualified 401(k) employee benefit plan for all eligible employees. Participants are able to defer between 1% and 75% (up to a maximum of $19,000 for those under 50 years of age and up to a maximum of $25,000 for those over 50 years of age in 2019) of their annual compensation. The Company may elect to match a discretionary amount each year, which is 75% of the first 6% of the participant’s compensation deferred into the plan. The Company’s contributions to this plan total $6.2 million, $5.6 million, and $3.1 million for the years ended December 31, 2019, 2018, and 2017, respectively.

In addition, the Company maintains a non-qualified 401(k) restoration plan for the benefit of executives of the Company and certain affiliates. Participants are able to defer a portion of their annual salary and receive a matching contribution based primarily on the contribution structure in effect under the Company’s 401(k) plan, but without regard to certain statutory limitations applicable under the 401(k) plan. The Company’s total contribution to the restoration plan was $0.1 million for the years ended December 31, 2019, 2018, and 2017.

In connection with the Bridge acquisition, the Company assumed Bridge's SERP, an unfunded noncontributory defined benefit pension plan. The SERP provides retirement benefits to certain Bridge officers based on years of service and final average salary. The Company uses a December 31 measurement date for this plan.

The following table reflects the accumulated benefit obligation and funded status of the SERP:

	December 31,
	2019			2018
	(in thousands)
Change in benefit obligation
Benefit obligation at beginning of period	$	9,991		$	8,891
Service cost	632			614
Interest cost	569			512
Actuarial losses/(gains)	834			41
Expected benefits paid	(270		)	(67		)
Projected benefit obligation at end of year	$	11,756		$	9,991
Unfunded projected/accumulated benefit obligation	(11,756		)	(9,991		)
Additional liability	$	—		$	—
Weighted average assumptions to determine benefit obligation
Discount rate	5.25		%	5.75		%
Rate of compensation increase	3.00		%	3.00		%

The components of net periodic benefit cost recognized for the year ended December 31, 2019 and 2018 and the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost during 2020 are as follows:

	Year Ended December 31,
	2020			2019			2018
	(in thousands)
Components of net periodic benefit cost
Service cost	$	511		$	632		$	614
Interest cost	612			569			512
Amortization of prior service cost	19			64			103
Amortization of actuarial (gains)/losses	(35		)	(159		)	(164		)
Net periodic benefit cost	$	1,107		$	1,106		$	1,065
Other comprehensive income (cost)	$	(16	)	$	(95	)	$	(61	)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Unrealized gain on securities available-for-sale securities, tax	$ 23,205	$ (13,354)	$ 3,973
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	138	24	(79)
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, Tax	3,197	(1,857)	2,220
Realized gain on sale of securities, tax	$ (776)	$ 1,883	$ 899

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CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Assets:
Cash and due from banks	$ 185,977,000	$ 180,053,000
Interest-bearing deposits in other financial institutions	248,619,000	318,519,000
Cash, cash equivalents, and restricted cash	434,596,000	498,572,000
Money market investments	0	7,000
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	3,346,310,000	3,276,988,000
Investment securities - HTM, at amortized cost; fair value of $516,261 at December 31, 2019 and $298,648 at December 31, 2018	485,107,000	302,905,000
Investment securities - equity	138,701,000	115,061,000
Investments in restricted stock, at cost	66,509,000	66,132,000
Loans - HFS	21,803,000	0
Loans:
Loans, net of deferred loan fees and costs	21,101,493,000	17,710,629,000
Less: Allowance for credit losses	(167,797,000)	(152,717,000)
Net loans held for investment	20,933,696,000	17,557,912,000
Premises and equipment, net	125,838,000	119,474,000
Operating Lease, Right-of-Use Asset	72,558,000	0
Other assets acquired through foreclosure, net	13,850,000	17,924,000
Bank owned life insurance	174,046,000	170,145,000
Goodwill	289,895,000	289,895,000
Other intangible assets, net	7,713,000	9,260,000
Deferred tax assets, net	18,025,000	31,990,000
Investments in LIHTC and renewable energy	409,365,000	369,648,000
Other assets	283,936,000	283,573,000
Total assets	26,821,948,000	23,109,486,000
Deposits:
Non-interest-bearing demand	8,537,905,000	7,456,141,000
Interest-bearing	14,258,588,000	11,721,306,000
Total deposits	22,796,493,000	19,177,447,000
Customer repurchase agreements	16,675,000	22,411,000
Other borrowings	0	491,000,000
Qualifying debt	393,563,000	360,458,000
Operating Lease, Liability	78,112,000	0
Other liabilities	520,357,000	444,436,000
Total liabilities	23,805,200,000	20,495,752,000
Commitments and Contingencies
Stockholders’ equity:
Common stock - par value $0.0001; 200,000,000 authorized; 104,527,544 shares issued at December 31, 2019 and 106,741,870 at December 31, 2018	10,000	10,000
Treasury stock, at cost (2,003,873 shares at December 31, 2019 and 1,793,231 shares at December 31, 2018)	(62,728,000)	(53,083,000)
Additional paid in capital	1,374,141,000	1,417,724,000
Accumulated other comprehensive income (loss)	25,008,000	(33,622,000)
Retained earnings	1,680,317,000	1,282,705,000
Total stockholders’ equity	3,016,748,000	2,613,734,000
Total liabilities and stockholders’ equity	$ 26,821,948,000	$ 23,109,486,000

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Investment Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	$ 7,330
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	7,384
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	17,414
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	17,947
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Amortized Cost	460,363
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	490,930
Debt Securities, Held-to-maturity	485,107	$ 302,905
Debt Securities, Held-to-maturity, Fair Value	516,261	298,648
Securities available for sale, Due in one year or less, Amortized Cost	999
Securities available for sale, After one year through five years, Amortized Cost	14,765
Securities available for sale, After five years through ten years, Amortized Cost	149,236
Securities available for sale, After ten years, Amortized Cost	521,287
Securities available for sale, Mortgage backed securities, Amortized Cost	2,631,641
Securities available for sale Total, Amortized Cost	3,317,928	3,339,888
Securities available for sale, Due in one year or less, Estimated Fair Value	999
Securities available for sale, After one year through five years, Estimated Fair Value	14,971
Securities available for sale, After five years through ten years, Estimated Fair Value	144,996
Securities available for sale, After ten years, Estimated Fair Value	549,804
Securities available for sale, Mortgage backed securities, Estimated Fair Value	2,635,540
Securities available for sale Total, Estimated Fair Value	$ 3,346,310	$ 3,276,988

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Qualifying Debt Supplemental Schedule - Adoption of ASU 2016-01 (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018	Dec. 31, 2016
New Accounting Pronouncement, Early Adoption [Line Items]
Accumulated other comprehensive income (loss)	$ 25,008				$ (33,622)				$ 25,008	$ (33,622)	$ (3,145)	$ (4,203)	$ (4,695)
Retained earnings	1,680,317				1,282,705				1,680,317	1,282,705
Non-interest income	16,027	$ 19,441	$ 14,218	$ 15,410	13,611	$ 4,418	$ 13,444	$ 11,643	65,095	43,116	45,344
Income Tax Expense (Benefit)	26,236	28,533	24,750	25,536	20,909	7,492	25,325	20,814	105,055	74,540	126,325
Net income	$ 128,065	$ 127,375	$ 122,936	$ 120,796	$ 119,086	$ 111,123	$ 104,679	$ 100,900	499,171	435,788	325,492
Net income available to common stockholders									$ 499,171	$ 435,788	$ 325,492
Earnings Per Share, Basic	$ 1.26	$ 1.25	$ 1.19	$ 1.16	$ 1.14	$ 1.06	$ 1.00	$ 0.97	$ 4.86	$ 4.16	$ 3.12
Earnings Per Share, Diluted	$ 1.25	$ 1.24	$ 1.19	$ 1.16	$ 1.13	$ 1.05	$ 0.99	$ 0.96	$ 4.84	$ 4.14	$ 3.10

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Stockholders' Equity Treasury shares (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Share-based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	210,657	223,125	269,865
Equity, Class of Treasury Stock [Line Items]
Treasury Stock Acquired, Average Cost Per Share	$ 45.80	$ 57.88	$ 51.16

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Loans, Leases and Allowance for Credit Losses - Schedule of Held for Investment Loan Portfolio Composition of Loans, Leases and Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Interest Rate Marks on Acquired Loans	$ 3,800	$ 7,100
Net deferred loan fees and costs	(47,700)	(36,300)
Loans, net of deferred loan fees and costs	21,101,493	17,710,629
Allowance for credit losses	(167,797)	(152,717)
Net loans held for investment	20,933,696	17,557,912
Commercial Real Estate Non Owner Occupied Multi Family [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans, net of deferred loan fees and costs	5,245,634	4,213,428
Owner occupied [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans, net of deferred loan fees and costs	2,316,913	2,325,380
Allowance for credit losses	(13,842)	(14,286)
Construction and land development [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans, net of deferred loan fees and costs	1,952,156	2,134,753
Allowance for credit losses	(23,894)	(22,513)
Residential real estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans, net of deferred loan fees and costs	2,147,664	1,204,355
Allowance for credit losses	(13,714)	(11,276)
Consumer [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans, net of deferred loan fees and costs	57,083	70,071
Allowance for credit losses	(614)	(981)
Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans, net of deferred loan fees and costs	$ 9,382,043	$ 7,762,642

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Income Taxes Gross Activity of Unrecognized Tax Benefits Related to Uncertain Tax Positions (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Income Tax Penalties Expense	$ 0	$ 0	$ 0
Unrecognized Tax Benefits, Income Tax Penalties Accrued	0.1	100,000.0
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	1,100,000	300,000
Decrease in Unrecognized Tax Benefits is Reasonably Possible	100,000
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions	0	0
Unrecognized Tax Benefits, Decrease Resulting from Current Period Tax Positions	1,255,000	0
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions	0	(247,000)
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	0	(307,000)
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations	0	0
Unrecognized Tax Benefits	1,739,000	484,000	$ 1,038,000
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 0	$ 0

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Derivatives and Hedging Largest Exposure to Individual Counterparty (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Collateral posted by this counterparty	$ 84,700
Largest individual counterparty [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Largest gross exposure (positive derivative NPV) to an individual counterparty	1,757	$ 1,411	$ 893
Collateral posted by this counterparty	1,610	0	0
Derivative, Net Liability Position, Aggregate Fair Value	0	23,906	40,340
Collateral pledged to this counterparty	0	25,761	60,476
Net exposure after netting adjustments and collateral	$ 147	$ 0	$ 0

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Income Taxes Reconciliation between Statutory Federal Income Tax and Company's Effective Tax Rate (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Interest on Income Taxes Accrued	$ 0				$ 0				$ 0	$ 0
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount									126,888,000	107,169,000	$ 158,136,000
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount									11,004,000	9,015,000	9,765,000
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Amount									(19,527,000)	18,322,000	(26,403,000)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount									0	0	(10,411,000)
Effective Income Tax Rate Reconciliation, NOL and Other Carryback, Amount									0	(15,341,000)	0
Effective Income Tax Reconciliation, Excise Tax									0	(137,000)	9,689,000
Income Tax Reconciliation Low Income Housing And Other Tax Credits									(15,000,000)	(6,673,000)	(7,361,000)
Income Tax Reconciliation Tax On Earnings Other Than Statutory Tax Rate									1,690,000	(1,171,000)	(7,090,000)
Income tax benefit	$ 26,236,000	$ 28,533,000	$ 24,750,000	$ 25,536,000	$ 20,909,000	$ 7,492,000	$ 25,325,000	$ 20,814,000	$ 105,055,000	$ 74,540,000	$ 126,325,000
Effective Income Tax Rate Reconciliation, Percent									17.39%	14.61%	27.96%

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Loans, Leases and Allowance for Credit Losses - Loans by Risk Rating (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Financing Receivable, Allowance for Credit Loss [Line Items]
Current	$ 21,065,187,000	$ 17,673,900,000
Total Past Due	36,306,000	36,729,000
Pass [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Current	20,785,118,000	17,400,616,000
Special Mention [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Current	158,907,000	87,264,000
Substandard [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Current	120,897,000	186,020,000
Doubtful [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Current	265,000	0
Loss [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Current	0	0
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	15,413,000	16,944,000
Financial Asset, 30 to 59 Days Past Due [Member] | Pass [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	8,263,000	11,255,000
Financial Asset, 30 to 59 Days Past Due [Member] | Special Mention [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	58,000	1,580,000
Financial Asset, 30 to 59 Days Past Due [Member] | Substandard [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	7,092,000	4,109,000
Financial Asset, 30 to 59 Days Past Due [Member] | Doubtful [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Financial Asset, 30 to 59 Days Past Due [Member] | Loss [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	2,358,000	4,902,000
Financial Asset, 60 to 89 Days Past Due [Member] | Pass [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	1,481,000	719,000
Financial Asset, 60 to 89 Days Past Due [Member] | Special Mention [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	16,000	12,000
Financial Asset, 60 to 89 Days Past Due [Member] | Substandard [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	861,000	3,767,000
Financial Asset, 60 to 89 Days Past Due [Member] | Doubtful [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	404,000
Financial Asset, 60 to 89 Days Past Due [Member] | Loss [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	18,535,000	14,883,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Pass [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	396,000	332,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Special Mention [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	0	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Substandard [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	17,955,000	14,377,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Doubtful [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	184,000	174,000
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Loss [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total Past Due	$ 0	$ 0

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Accumulated Other Comprehensive Income - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Realized gains on sales of investment securities	$ 3,152	$ (7,656)	$ 2,343
Amount reclassified from accumulated other comprehensive income	776	(1,883)	(899)
Amount reclassified from accumulated other comprehensive income	$ 2,376	$ (5,773)	1,444
Income Tax Expense [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive income			$ 899

XML

Income Taxes Gross Activity of Unrecognized Tax Benefits Related to Uncertain Tax Positions (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Contingency [Line Items]

Summary of Income Tax Contingencies [Table Text Block]

	December 31,
	2019		2018
	(in thousands)
Beginning balance	$	484	$	1,038
Gross increases
Tax positions in prior periods	—		—
Current period tax positions	1,255		—
Gross decreases
Tax positions in prior periods	—		(247		)
Settlements	—		(307		)
Lapse of statute of limitations	—		—
Ending balance	$	1,739	$	484

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Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of basic and diluted EPS: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands, except per share amounts)
Weighted average shares - basic	102,667		104,669		104,179
Dilutive effect of stock awards	466		701		818
Weighted average shares - diluted	103,133		105,370		104,997
Net income	$	499,171	$	435,788	$	325,492
Earnings per share - basic	4.86		4.16		3.12
Earnings per share - diluted	4.84		4.14		3.10

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Parent Company Parent Company Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]
Net income	$ 128,065	$ 127,375	$ 122,936	$ 120,796	$ 119,086	$ 111,123	$ 104,679	$ 100,900	$ 499,171	$ 435,788	$ 325,492
Net cash provided by operating activities									717,772	540,972	383,811
Sale (purchase) of money market investments, net									7	(7)	0
Net cash used in investing activities									(3,723,033)	(2,713,433)	(2,955,527)
Payments for Repurchase of Common Stock									(120,131)	(35,688)	0
Net cash provided by financing activities									2,941,285	2,254,265	2,703,993
Net (decrease) increase in cash and cash equivalents									(63,976)	81,804	132,277
Cash and cash equivalents	434,596				498,572				434,596	498,572	416,768	$ 284,491
Interest									180,436	113,507	59,838
Change in unrealized gain (loss) on junior subordinated debt, net of tax									(9,804)	5,693	(3,604)
Consolidated Company [Member]
Condensed Financial Statements, Captions [Line Items]
Payments of Dividends									51,329	0	0
Net income									499,171	435,788	325,492
Equity in net undistributed earnings of subsidiaries									(385,710)	(302,544)	(245,734)
Other operating activities, net									9,885	(5,889)	16,921
Net cash provided by operating activities									123,346	127,355	96,679
Purchases of securities									(10,841)	(44,409)	(11,765)
Principal pay downs and maturities									19,032	11,362	23,196
Capital contributions to subsidiaries									0	0	(50,000)
Other investing activities, net									7	(7)	0
Net cash used in investing activities									8,198	(33,054)	(38,569)
Payments for Repurchase of Common Stock									(120,131)	(35,688)	0
Proceeds from exercise of common stock options									80	554	(12,965)
Net cash provided by financing activities									(171,380)	(35,134)	(12,965)
Net (decrease) increase in cash and cash equivalents									(39,836)	59,167	45,145
Cash and cash equivalents	$ 75,885				$ 115,721				75,885	115,721	56,554	$ 11,409
Interest									11,991	13,950	11,182
Loan and OREO contributions to subsidiaries									$ 0	$ 1,116	$ 11,264

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Employee Benefit Plan Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Contribution Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost		$ 632	$ 614
Defined Benefit Plan, Interest Cost		569	512
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)		64	103
Defined Benefit Plan, Amortization of Gain (Loss)		(159)	(164)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)		1,106	1,065
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent		$ (95)	$ (61)
Forecast [Member]
Defined Contribution Plan Disclosure [Line Items]
Defined Benefit Plan, Service Cost	$ 511
Defined Benefit Plan, Interest Cost	612
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	19
Defined Benefit Plan, Amortization of Gain (Loss)	(35)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	1,107
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent	$ (16)

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Qualifying Debt Junior Subordinated Debt (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) Trust	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Number of Statutory Business Trusts Formed or Acquired | Trust	8
Subordinated Debt Obligations, Fair Value Disclosure	$ 61,685	$ 48,684
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	74,367	61,057
Unrealized gain or loss on junior subordinated debt [Line Items]	(4,812)	(17,812)
Business Combination, Fair Market Value Adjustment on Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	(4,845)	(5,155)
BankWest Nevada Capital Trust II [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	15,464	15,464
Intermountain First Statutory Trust I [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	10,310	10,310
First Independent Capital Trust I [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	7,217	7,217
WAL Trust No. 1 [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	20,619	20,619
WAL Statutory Trust No. 2 [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	5,155	5,155
WAL Statutory Trust No. 3 [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	7,732	7,732
Bridge Capital Trust I [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	12,372	12,372
Bridge Capital Trust II [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	$ 5,155	$ 5,155
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate, at Point in Time	4.25%	5.15%
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Subordinated Debt Obligations, Fair Value Disclosure	$ 61,685	$ 48,685
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	66,497	66,497
Bridge Capital Holdings [Member]
Debt Instrument [Line Items]
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	17,527	17,527
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Junior Subordinated Debt	$ 12,682	$ 12,372

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Loans, Leases and Allowance for Credit Losses - Troubled Debt Restructured Loans by Class for Which There was Payment Default (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) SecurityLoan	Dec. 31, 2018 USD ($) SecurityLoan	Dec. 31, 2017 USD ($) SecurityLoan
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	2	0	6
Recorded Investment | $	$ 371	$ 0	$ 1,697
Commercial real estate [Member] | Multi-family [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	0
Recorded Investment | $	$ 0	$ 0	$ 0
Commercial real estate [Member] | Non-owner occupied [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	1
Recorded Investment | $	$ 0	$ 0	$ 308
Commercial real estate [Member] | Owner occupied [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	1
Recorded Investment | $	$ 0	$ 0	$ 135
Commercial And Industrial [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	1
Recorded Investment | $	$ 0	$ 0	$ 87
Construction and land development [Member] | Land [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	0
Recorded Investment | $	$ 0	$ 0	$ 0
Construction and land development [Member] | Construction [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	2
Recorded Investment | $	$ 0	$ 0	$ 1,119
Residential real estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	2	0	1
Recorded Investment | $	$ 371	$ 0	$ 48
Consumer [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Number of Loans | SecurityLoan	0	0	0
Recorded Investment | $	$ 0	$ 0	$ 0

XML

Fair Value Accounting - Change in Level 3 Liabilities Measured at Fair Value on Recurring Basis (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in unrealized (loss) gain on junior subordinated debt, net of tax	$ (9,804)	$ 5,693	$ (3,604)
Impaired Financing Receivable, Recorded Investment	116,303	112,252
Other assets acquired through foreclosure, net	13,850	17,924
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	3,346,310	3,276,988
Impaired loans with an allowance recorded	20,979	986
Junior subordinated debt	(61,685)	(48,684)
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other assets acquired through foreclosure, net	13,850	17,924
Impaired loans with an allowance recorded	18,203	305
Fair Value, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, Recorded Investment	110,272	92,126
Other assets acquired through foreclosure, net	13,850	17,924
Impaired loans with an allowance recorded	18,203	305
Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	3,346,310	3,276,988
Fair Value, Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities - AFS, at fair value; amortized cost of $3,317,928 at December 31, 2019 and $3,339,888 at December 31, 2018	0	0
Junior subordinated debt	$ (61,685)	$ (48,684)
Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discounted cash flow method	Discounted cash flow method
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)			(5,824)
Other Assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Collateral method	Collateral method
Junior Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss)	$ (13,001)	$ 7,550
Debt Instrument, Measurement Input	0.0509	0.0782
Debt Instrument, Basis Spread on Variable Rate	3.18%	5.01%
Percentage Of Basis Spread On Variable Rate	1.91%	2.81%
Junior Subordinated Debt [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Implied credit rating of the Company	Implied credit rating of the Company
Junior subordinated debt	$ (61,685)	$ (48,684)
Junior Subordinated Debt [Member] | Fair Value, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	(48,684)	(56,234)	50,410
Closing balance	$ (61,685)	$ (48,684)	$ (56,234)
Collateral Method [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Collateral method	Collateral method
Third Party Appraisal [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Third party appraisal	Third party appraisal
Third Party Appraisal [Member] | Other Assets [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Third party appraisal	Third party appraisal
Discount Rate [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Discount rate	Discount rate
Scheduled Cash Collections [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Scheduled cash collections	Scheduled cash collections
Proceeds from Non-Real Estate Collateral [Member] | Loans and Finance Receivables [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Junior subordinated debt, Significant Unobservable Inputs	Proceeds from non-real estate collateral	Proceeds from non-real estate collateral

XML

Commitments and Contingencies - Contractual Commitments for Lines and Letters of Credit by Maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loss Contingencies [Line Items]
Total Amount Committed	$ 8,827,108	$ 8,184,214
Other Commitment, Due in Next Twelve Months	3,332,587
Other Commitment, Due in Second and Third Year	3,189,634
Other Commitment, Due in Fourth and Fifth Year	1,300,123
Other Commitment, Due after Fifth Year	1,004,764
Commitments to extend credit [Member]
Loss Contingencies [Line Items]
Total Amount Committed	8,348,421	7,556,741
Other Commitment, Due in Next Twelve Months	2,873,303
Other Commitment, Due in Second and Third Year	3,170,848
Other Commitment, Due in Fourth and Fifth Year	1,299,506
Other Commitment, Due after Fifth Year	1,004,764
Credit card guarantees [Member]
Loss Contingencies [Line Items]
Total Amount Committed	302,909	237,312
Other Commitment, Due in Next Twelve Months	302,909
Other Commitment, Due in Second and Third Year	0
Other Commitment, Due in Fourth and Fifth Year	0
Other Commitment, Due after Fifth Year	0
Standby letters of credit [Member]
Loss Contingencies [Line Items]
Total Amount Committed	175,778	$ 390,161
Other Commitment, Due in Next Twelve Months	156,375
Other Commitment, Due in Second and Third Year	18,786
Other Commitment, Due in Fourth and Fifth Year	617
Other Commitment, Due after Fifth Year	$ 0

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Fair Value Accounting Additional Details (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Fair Value Disclosures [Abstract]
Other Repossessed Assets	$ 13.9	$ 17.9

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Loans, Leases and Allowance for Credit Losses - Changes in Accretable Discount for Loans Purchased with Credit Quality Deterioration (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Loss [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions			$ 0
Balance at beginning of period		$ 9,324	15,177
Reclassifications from non-accretable to accretable yield (1)	$ 0		2,086
Accretion to interest income	(570)	(1,018)	(2,797)
Reversal of fair value adjustments upon disposition of loans			(5,142)
Balance at end of period			9,324
Financial Asset Acquired with Credit Deterioration [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions	0	0
Balance at beginning of period	3,767	9,324
Reclassifications from non-accretable to accretable yield (1)		683
Reversal of fair value adjustments upon disposition of loans	(923)	(5,222)
Balance at end of period	$ 2,274	$ 3,767	$ 9,324

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Deposits (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deposit [Abstract]
Non-interest-bearing demand	$ 8,537,905,000	$ 7,456,141,000
Certificates of Deposit, CDARS	407,700,000	322,900,000
Non-interest-bearing demand	3,100,000,000	2,300,000,000
Time Deposit Maturities, Next Twelve Months	2,259,182,000
Time Deposit Maturities, Year Two	105,237,000
Time Deposit Maturities, Year Three	7,953,000
Time Deposit Maturities, Year Four	3,502,000
Time Deposit Maturities, Year Five	1,102,000
Time Deposits	2,376,976,000
Interest Bearing Deposit Demand	2,760,865,000	2,555,609,000
Deposits, Savings Deposits	9,120,747,000	7,330,709,000
Time Deposits, $250,000 or more	1,426,133,000	1,009,900,000
Time Deposits, Less than $250,000	950,843,000	825,088,000
Total deposits	22,796,493,000	19,177,447,000
Deposits, ICS	661,800,000	706,900,000
Deposits, Wholesale	1,100,000,000	718,200,000
Deposits costs, deposits with earnings credits	$ 30,500,000	$ 18,000,000.0

XML

Loans, Leases and Allowance for Credit Losses Loan Purchases and Sales (Details) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]
Financing Receivable, Purchase	$ 2,533,407	$ 1,600,818
Financing Receivable, Sale	98,963	66,477
Loans and Leases Receivable, Gain (Loss) on Sales, Net	690	2,638
Commercial And Industrial [Member]
Loans and Leases Receivable Disclosure [Line Items]
Financing Receivable, Purchase	1,014,894	690,122
Non-owner occupied [Member]
Loans and Leases Receivable Disclosure [Line Items]
Financing Receivable, Purchase	49,211	0
Construction and land development [Member]
Loans and Leases Receivable Disclosure [Line Items]
Financing Receivable, Purchase	34,490	27,517
Residential real estate [Member]
Loans and Leases Receivable Disclosure [Line Items]
Financing Receivable, Purchase	$ 1,434,812	$ 883,179

XML

Loans, Leases and Allowance for Credit Losses - Schedule of Average Investment in Impaired Loans and Income Recognized on Impaired Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Impaired Financing Receivable, Average Recorded Investment	$ 121,287	$ 104,825	$ 104,866
Interest income recognized on impaired loans	$ 5,012	$ 4,490	$ 4,046

XML

Related Parties (Tables)

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

The following table summarizes the aggregate activity in such loans for the periods indicated:

	Year Ended December 31,
	2019			2018
	(in thousands)
Balance, beginning	$	4,580		$	5,918
New loans	—			—
Advances	323			—
Repayments and other	(1,091		)	(1,338		)
Balance, ending	$	3,812		$	4,580

XML

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) Subsidiary	Dec. 31, 2018 USD ($)
Significant Of Accounting Policies [Line Items]
Life Insurance, Corporate or Bank Owned, Amount | $	$ 359.0	$ 358.7
Number Of Unconsolidated Subsidiaries | Subsidiary	8

XML

Deposits (Tables)

12 Months Ended

Dec. 31, 2019

Deposit [Abstract]

Schedule Of Deposits Table [Text Block]

The table below summarizes deposits by type: 

	December 31,
	2019		2018
	(in thousands)
Non-interest-bearing demand deposits	$	8,537,905	$	7,456,141
Interest-bearing transaction accounts	2,760,865		2,555,609
Savings and money market accounts	9,120,747		7,330,709
Time certificates of deposit ($250,000 or more)	1,426,133		1,009,900
Other time deposits	950,843		825,088
Total deposits	$	22,796,493	$	19,177,447

Scheduled Maturities Of Time Deposits Table [Text Block]

The summary of the contractual maturities for all time deposits as of December 31, 2019 is as follows: 

	December 31,
	(in thousands)
2020	$	2,259,182
2021	105,237
2022	7,953
2023	3,502
2024	1,102
Total	$	2,376,976

XML

Loans, Leases and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Dec. 31, 2017

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]

Schedule of Held for Investment Loan Portfolio Composition of Loans, Leases and Allowance for Credit Losses

The composition of the Company’s held for investment loan portfolio is as follows:

	December 31,
	2019			2018
	(in thousands)
Commercial and industrial	$	9,382,043		$	7,762,642
Commercial real estate - non-owner occupied	5,245,634			4,213,428
Commercial real estate - owner occupied	2,316,913			2,325,380
Construction and land development	1,952,156			2,134,753
Residential real estate	2,147,664			1,204,355
Consumer	57,083			70,071
Loans, net of deferred loan fees and costs	21,101,493			17,710,629
Allowance for credit losses	(167,797		)	(152,717		)
Total loans HFI	$	20,933,696		$	17,557,912

Contractual Aging of Loan Portfolio by Class of Loans Including Loans Held for Sale and Excluding Deferred Fees/Costs

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	9,376,377	$	2,501	$	637	$	2,528	$	5,666	$	9,382,043
Commercial real estate
Owner occupied	2,316,165		624		—		124		748		2,316,913
Non-owner occupied	5,007,644		4,661		—		11,913		16,574		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,176,908		—		—		—		—		1,176,908
Land	775,248		—		—		—		—		775,248
Residential real estate	2,134,346		7,627		1,721		3,970		13,318		2,147,664
Consumer	57,083		—		—		—		—		57,083
Total loans	$	21,065,187	$	15,413	$	2,358	$	18,535	$	36,306	$	21,101,493

 

	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,753,111	$	3,187	$	416	$	5,928	$	9,531	$	7,762,642
Commercial real estate
Owner occupied	2,320,321		4,441		—		618		5,059		2,325,380
Non-owner occupied	4,051,837		—		—		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,382,664		—		—		—		—		1,382,664
Land	751,613		—		476		—		476		752,089
Residential real estate	1,182,933		9,316		4,010		8,096		21,422		1,204,355
Consumer	69,830		—		—		241		241		70,071
Total loans	$	17,673,900	$	16,944	$	4,902	$	14,883	$	36,729	$	17,710,629

Summary of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 Days Still Accruing Interest by Loan Class

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	December 31, 2019								December 31, 2018
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial and industrial	$	19,080	$	5,421	$	24,501	$	—	$	7,639	$	7,451	$	15,090	$	—
Commercial real estate
Owner occupied	4,418		124		4,542		—		—		—		—		594
Non-owner occupied	7,265		11,913		19,178		—		—		—		—		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	2,147		—		2,147		—		—		476		476		—
Land	—		—		—		—		—		—		—		—
Residential real estate	1,231		4,369		5,600		—		552		11,387		11,939		—
Consumer	—		—		—		—		—		241		241		—
Total	$	34,141	$	21,827	$	55,968	$	—	$	8,191	$	19,555	$	27,746	$	594

Loans by Risk Rating

The following tables present loans held for investment by risk rating: 

	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	9,265,823	$	65,893	$	49,878	$	449	$	—	$	9,382,043
Commercial real estate
Owner occupied	2,265,566		9,579		41,768		—		—		2,316,913
Non-owner occupied	4,913,007		64,161		47,050		—		—		5,024,218
Multi-family	221,416		—		—		—		—		221,416
Construction and land development
Construction	1,157,169		17,592		2,147		—		—		1,176,908
Land	773,868		1,380		—		—		—		775,248
Residential real estate	2,141,336		366		5,962		—		—		2,147,664
Consumer	57,073		10		—		—		—		57,083
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	20,785,118	$	158,907	$	120,897	$	265	$	—	$	21,065,187
Past due 30 - 59 days	8,263		58		7,092		—		—		15,413
Past due 60 - 89 days	1,481		16		861		—		—		2,358
Past due 90 days or more	396		—		17,955		184		—		18,535
Total	$	20,795,258	$	158,981	$	146,805	$	449	$	—	$	21,101,493

 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,574,506	$	61,202	$	126,356	$	578	$	—	$	7,762,642
Commercial real estate
Owner occupied	2,255,513		12,860		57,007		—		—		2,325,380
Non-owner occupied	4,030,350		12,982		8,505		—		—		4,051,837
Multi-family	161,591		—		—		—		—		161,591
Construction and land development
Construction	1,378,624		1,210		2,830		—		—		1,382,664
Land	751,012		—		1,077		—		—		752,089
Residential real estate	1,191,571		527		12,257		—		—		1,204,355
Consumer	69,755		75		241		—		—		70,071
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

 

	December 31, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	17,400,616	$	87,264	$	186,020	$	—	$	—	$	17,673,900
Past due 30 - 59 days	11,255		1,580		4,109		—		—		16,944
Past due 60 - 89 days	719		12		3,767		404		—		4,902
Past due 90 days or more	332		—		14,377		174		—		14,883
Total	$	17,412,922	$	88,856	$	208,273	$	578	$	—	$	17,710,629

Recorded Investment in Loans Classified as Impaired

The table below reflects the recorded investment in loans classified as impaired: 

	December 31,
	2019			2018
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	20,979		$	986
Impaired loans without a specific valuation allowance under ASC 310 (2)	95,324			111,266
Total impaired loans	$	116,303		$	112,252
Valuation allowance related to impaired loans	$	(2,776	)	$	(681	)

(1) Includes no TDR loans at December 31, 2019 and 2018.

(2)

Includes TDR loans of $38.9 million and $44.5 million at December 31, 2019 and 2018, respectively.

Impaired Loans by Loan Class

The following table presents impaired loans by class: 

	December 31,
	2019		2018
	(in thousands)
Commercial and industrial	$	48,984	$	63,896
Commercial real estate
Owner occupied	17,736		6,530
Non-owner occupied	35,538		12,407
Multi-family	—		—
Construction and land development
Construction	2,147		—
Land	6,274		9,403
Residential real estate	5,600		19,744
Consumer	24		272
Total	$	116,303	$	112,252

Average Investment in Impaired Loans by Loan Class

The following table presents average investment in impaired loans by loan class: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Commercial and industrial	$	45,223	$	52,496	$	33,519
Commercial real estate
Owner occupied	15,829		7,682		18,692
Non-owner occupied	25,163		15,375		22,000
Multi-family	—		—		—
Construction and land development
Construction	13,315		—		—
Land	7,716		9,547		13,558
Residential real estate	13,882		19,425		16,893
Consumer	159		300		204
Total	$	121,287	$	104,825	$	104,866

Interest Income on Impaired Loans by Loan Class

The following table presents interest income on impaired loans by class: 

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Commercial and industrial	$	1,857	$	2,113	$	1,077
Commercial real estate
Owner occupied	815		491		677
Non-owner occupied	821		937		1,074
Multi-family	—		—		—
Construction and land development
Construction	715		—		—
Land	474		566		699
Residential real estate	329		381		516
Consumer	1		2		3
Total	$	5,012	$	4,490	$	4,046

Tabular Disclosure of Nonperforming Assets

The following table summarizes nonperforming assets: 

	December 31,
	2019		2018
	(in thousands)
Non-accrual loans (1)	$	55,968	$	27,746
Loans past due 90 days or more on accrual status	—		594
Accruing troubled debt restructured loans	28,356		36,458
Total nonperforming loans	84,324		64,798
Other assets acquired through foreclosure, net	13,850		17,924
Total nonperforming assets	$	98,174	$	82,722

(1)

Includes non-accrual TDR loans of $10.6 million and $8.0 million at December 31, 2019 and 2018, respectively.

Accretable Yield Table

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Balance, at beginning of period	$	3,767		$	9,324		$	15,177
Additions due to acquisition	—			—			—
Reclassifications from non-accretable to accretable yield (1)	—			683			2,086
Accretion to interest income	(570		)	(1,018		)	(2,797		)
Reversal of fair value adjustments upon disposition of loans	(923		)	(5,222		)	(5,142		)
Balance, at end of period	$	2,274		$	3,767		$	9,324

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

Allowances for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Year Ended December 31,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2019
Beginning Balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
Charge-offs	141			139			594			8,120			128			9,122
Recoveries	(91		)	(909		)	(412		)	(4,265		)	(25		)	(5,702		)
Provision	1,431			11,674			2,620			3,039			(264		)	18,500
Ending balance	$	23,894		$	47,273		$	13,714		$	82,302		$	614		$	167,797
2018
Beginning Balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050
Charge-offs	1			233			1,038			15,034			114			16,420
Recoveries	(1,433		)	(1,237		)	(947		)	(2,427		)	(43		)	(6,087		)
Provision	1,482			2,177			5,867			13,198			276			23,000
Ending balance	$	22,513		$	34,829		$	11,276		$	83,118		$	981		$	152,717
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			2,269			447			8,186			102			11,004
Recoveries	(1,229		)	(2,897		)	(1,778		)	(3,112		)	(84		)	(9,100		)
Provision	(2,805		)	5,347			318			14,268			122			17,250
Ending balance	$	19,599		$	31,648		$	5,500		$	82,527		$	776		$	140,050

The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2019;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	11,913	$	6,919	$	—	$	2,147	$	—	$	20,979
Impaired loans with no allowance recorded	17,736		23,625		42,065		5,600		6,274		24		95,324
Total loans individually evaluated for impairment	17,736		35,538		48,984		5,600		8,421		24		116,303
Loans collectively evaluated for impairment	2,296,342		5,159,921		9,333,059		2,142,045		1,943,735		57,059		20,932,161
Loans acquired with deteriorated credit quality	2,835		50,175		—		19		—		—		53,029
Total recorded investment	$	2,316,913	$	5,245,634	$	9,382,043	$	2,147,664	$	1,952,156	$	57,083	$	21,101,493
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	11,949	$	9,844	$	—	$	2,262	$	—	$	24,055
Impaired loans with no allowance recorded	18,681		24,738		43,848		5,708		6,413		52		99,440
Total loans individually evaluated for impairment	18,681		36,687		53,692		5,708		8,675		52		123,495
Loans collectively evaluated for impairment	2,297,168		5,177,477		9,312,100		2,113,893		1,963,116		57,383		20,921,137
Loans acquired with deteriorated credit quality	3,577		60,191		—		72		—		—		63,840
Total unpaid principal balance	$	2,319,426	$	5,274,355	$	9,365,792	$	2,119,673	$	1,971,791	$	57,435	$	21,108,472
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	1,219	$	1,050	$	—	$	507	$	—	$	2,776
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		1,219		1,050		—		507		—		2,776
Loans collectively evaluated for impairment	13,842		32,114		81,252		13,714		23,387		614		164,923
Loans acquired with deteriorated credit quality	—		98		—		—		—		—		98
Total allowance for credit losses	$	13,842	$	33,431	$	82,302	$	13,714	$	23,894	$	614	$	167,797

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2018;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	623	$	363	$	—	$	—	$	986
Impaired loans with no allowance recorded	6,530		12,407		63,273		19,381		9,403		272		111,266
Total loans individually evaluated for impairment	6,530		12,407		63,896		19,744		9,403		272		112,252
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	3,979		79,557		—		19		—		—		83,555
Total recorded investment	$	2,325,380	$	4,213,428	$	7,762,642	$	1,204,355	$	2,134,753	$	70,071	$	17,710,629
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	1,482	$	363	$	—	$	—	$	1,845
Impaired loans with no allowance recorded	11,852		18,155		103,992		27,979		25,624		10,632		198,234
Total loans individually evaluated for impairment	11,852		18,155		105,474		28,342		25,624		10,632		200,079
Loans collectively evaluated for impairment	2,314,871		4,121,464		7,698,746		1,184,592		2,125,350		69,799		17,514,822
Loans acquired with deteriorated credit quality	5,315		95,680		4,352		72		—		—		105,419
Total unpaid principal balance	$	2,332,038	$	4,235,299	$	7,808,572	$	1,213,006	$	2,150,974	$	80,431	$	17,820,320
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	621	$	60	$	—	$	—	$	681
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		621		60		—		—		681
Loans collectively evaluated for impairment	14,286		20,456		82,488		11,216		22,513		981		151,940
Loans acquired with deteriorated credit quality	—		87		9		—		—		—		96
Total allowance for credit losses	$	14,286	$	20,543	$	83,118	$	11,276	$	22,513	$	981	$	152,717

Troubled Debt Restructured Loans by Loan Class

The following table presents information on the financial effects of TDR loans by class for the periods presented:

	Year Ended December 31, 2019
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	4	$	11,451	$	—	$	—	$	11,451	$	—
Commercial real estate
Owner occupied	2	2,026		—		—		2,026		—
Non-owner occupied	2	11,546		—		—		11,546		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	1	17,022		—		—		17,022		—
Land	—	—		—		—		—		—
Residential real estate	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	9	$	42,045	$	—	$	—	$	42,045	$	—

	Year Ended December 31, 2018
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	35,132	$	—	$	—	$	35,132	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	—	—		—		—		—		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	294		—		—		294		—
Consumer	—	—		—		—		—		—
Total	12	$	35,426	$	—	$	—	$	35,426	$	—

	Year Ended December 31, 2017
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Forgiven Principal Balance		Lost Interest Income		Post-Modification Outstanding Recorded Investment		Waived Fees and Other Expenses
	(dollars in thousands)
Commercial and industrial	11	$	3,513	$	—	$	—	$	3,513	$	—
Commercial real estate
Owner occupied	—	—		—		—		—		—
Non-owner occupied	3	2,993		—		—		2,993		—
Multi-family	—	—		—		—		—		—
Construction and land development
Construction	—	—		—		—		—		—
Land	—	—		—		—		—		—
Residential real estate	1	122		—		—		122		—
Consumer	—	—		—		—		—		—
Total	15	$	6,628	$	—	$	—	$	6,628	$	—

Troubled Debt Restructured Loans by Class for Which There was a Payment Default

The following table presents TDR loans by class for which there was a payment default during the period: 

	Year Ended December 31,
	2019			2018			2017
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Commercial and industrial	—	$	—	—	$	—	1	$	87
Commercial real estate
Owner occupied	—	—		—	—		1	135
Non-owner occupied	—	—		—	—		1	308
Multi-family	—	—		—	—		—	—
Construction and land development
Construction	—	—		—	—		2	1,119
Land	—	—		—	—		—	—
Residential real estate	2	371		—	—		1	48
Consumer	—	—		—	—		—	—
Total	2	$	371	—	$	—	6	$	1,697

XML

Investment Securities

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

2. INVESTMENT SECURITIES

The carrying amounts and fair values of investment securities at December 31, 2019 and 2018 are summarized as follows: 

	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	485,107	$	31,303	$	(149	)	$	516,261
Available-for-sale debt securities
CDO	$	50	$	10,092	$	—		$	10,142
Commercial MBS issued by GSEs	95,062		366		(1,175		)	94,253
Corporate debt securities	105,015		112		(5,166		)	99,961
Municipal securities	7,494		279		—			7,773
Private label residential MBS	1,129,985		3,572		(4,330		)	1,129,227
Residential MBS issued by GSEs	1,406,594		9,283		(3,817		)	1,412,060
Tax-exempt	530,729		24,548		(422		)	554,855
Trust preferred securities	32,000		—		(4,960		)	27,040
U.S. government sponsored agency securities	10,000		—		—			10,000
U.S. treasury securities	999		—		—			999
Total AFS debt securities	$	3,317,928	$	48,252	$	(19,870	)	$	3,346,310
Equity securities
CRA investments	$	52,805	$	—	$	(301	)	$	52,504
Preferred stock	82,514		3,881		(198		)	86,197
Total equity securities	$	135,319	$	3,881	$	(499	)	$	138,701

	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	302,905	$	3,163	$	(7,420	)	$	298,648
Available-for-sale debt securities
CDO	$	50	$	15,277	$	—		$	15,327
Commercial MBS issued by GSEs	106,385		82		(6,361		)	100,106
Corporate debt securities	105,029		—		(5,649		)	99,380
Private label residential MBS	948,161		945		(24,512		)	924,594
Residential MBS issued by GSEs	1,564,181		1,415		(35,472		)	1,530,124
Tax-exempt	542,086		4,335		(7,753		)	538,668
Trust preferred securities	32,000		—		(3,383		)	28,617
U.S. government sponsored agency securities	40,000		—		(1,812		)	38,188
U.S. treasury securities	1,996		—		(12		)	1,984
Total AFS debt securities	$	3,339,888	$	22,054	$	(84,954	)	$	3,276,988
Equity securities
CRA investments	$	52,210	$	—	$	(1,068	)	$	51,142
Preferred stock	65,954		148		(2,183		)	63,919
Total equity securities	$	118,164	$	148	$	(3,251	)	$	115,061

The Company conducts an OTTI analysis on a quarterly basis. The initial indication of OTTI is a decline in the market value below the amount recorded for an investment, and taking into account the severity and duration of the decline. Another potential indication of OTTI is a downgrade below investment grade. In determining whether an impairment is OTTI, the Company considers the length of time and the extent to which the market value has been below cost, recent events specific to the issuer, including investment downgrades by rating agencies and economic conditions of its industry, and the Company’s ability and intent to hold the investment for a period of time sufficient to allow for any anticipated recovery.

For debt securities, for the purpose of an OTTI analysis, the Company also considers the cause of the price decline (general level of interest rates, credit spreads, and industry and issuer-specific factors), whether downgrades by bond rating agencies have occurred, the issuer’s financial condition, near-term prospects, and current ability to make future payments in a timely manner, as well as the issuer’s ability to service debt, and any change in agencies’ ratings at the evaluation date from the acquisition date and any likely imminent action.

At December 31, 2019 and 2018, the Company’s unrealized losses relate primarily to market interest rate increases since the securities' original purchase date. The total number of AFS securities in an unrealized loss position at December 31, 2019 is 158, compared to 373 at December 31, 2018. The Company has reviewed securities for which there is an unrealized loss in accordance with its accounting policy for OTTI described above and determined that there are no impairment charges for the years ended December 31, 2019, 2018, and 2017. The Company does not consider any securities to be other-than-temporarily impaired as of December 31, 2019 and 2018. No assurance can be made that OTTI will not occur in future periods.

Information pertaining to securities with gross unrealized losses at December 31, 2019 and 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: 

	December 31, 2019
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity
Tax-exempt	$	149	$	24,325	$	—	$	—	$	149	$	24,325
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	85	$	9,035	$	1,090	$	54,604	$	1,175	$	63,639
Corporate debt securities	—		—		5,166		94,834		5,166		94,834
Private label residential MBS	1,776		337,285		2,554		258,791		4,330		596,076
Residential MBS issued by GSEs	1,740		385,643		2,077		150,419		3,817		536,062
Tax-exempt	422		67,150		—		—		422		67,150
Trust preferred securities	—		—		4,960		27,040		4,960		27,040
Total AFS securities	$	4,023	$	799,113	$	15,847	$	585,688	$	19,870	$	1,384,801

	December 31, 2018
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	3,868	$	91,095	$	3,552	$	69,991	$	7,420	$	161,086
Available-for-sale debt securities
Commercial MBS issued by GSEs	$	—	$	—	$	6,361	$	98,275	$	6,361	$	98,275
Corporate debt securities	16		5,013		5,633		94,367		5,649		99,380
Private label residential MBS	5,173		217,982		19,339		537,316		24,512		755,298
Residential MBS issued by GSEs	1,363		141,493		34,109		1,215,490		35,472		1,356,983
Tax-exempt	3,562		209,767		4,191		72,382		7,753		282,149
Trust preferred securities	—		—		3,383		28,617		3,383		28,617
U.S. government sponsored agency securities	—		—		1,812		38,188		1,812		38,188
U.S. treasury securities	—		—		12		1,984		12		1,984
Total AFS securities	$	10,114	$	574,255	$	74,840	$	2,086,619	$	84,954	$	2,660,874

The amortized cost and fair value of securities as of December 31, 2019, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.

	December 31, 2019
	Amortized Cost		Estimated Fair Value
	(in thousands)
Held-to-maturity
Due in one year or less	$	7,330	$	7,384
After one year through five years	17,414		17,947
After ten years	460,363		490,930
Total HTM securities	$	485,107	$	516,261
Available-for-sale
Due in one year or less	$	999	$	999
After one year through five years	14,765		14,971
After five years through ten years	149,236		144,996
After ten years	521,287		549,804
Mortgage-backed securities	2,631,641		2,635,540
Total AFS securities	$	3,317,928	$	3,346,310

The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2019 and 2018:

	December 31, 2019
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	485,107	$	485,107
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	10,142	$	—	$	10,142
Commercial MBS issued by GSEs	—		94,253		—		—		—		—		—		94,253
Corporate debt securities	—		—		—		66,530		33,431		—		—		99,961
Municipal securities	—		—		—		—		—		—		7,773		7,773
Private label residential MBS	1,096,909		—		30,675		181		288		1,174		—		1,129,227
Residential MBS issued by GSEs	—		1,412,060		—		—		—		—		—		1,412,060
Tax-exempt	52,610		2,856		327,657		171,732		—		—		—		554,855
Trust preferred securities	—		—		—		—		27,040		—		—		27,040
U.S. government sponsored agency securities	—		10,000		—		—		—		—		—		10,000
U.S. treasury securities	—		999		—		—		—		—		—		999
Total AFS securities (1)	$	1,149,519	$	1,520,168	$	358,332	$	238,443	$	60,759	$	11,316	$	7,773	$	3,346,310
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	27,129	$	52,504
Preferred stock	—		—		—		—		82,851		2,105		1,241		86,197
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	82,851	$	2,105	$	28,370	$	138,701

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

	December 31, 2018
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in thousands)
Held-to-maturity debt securities
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	302,905	$	302,905
Available-for-sale debt securities
CDO	$	—	$	—	$	—	$	—	$	—	$	15,327	$	—	$	15,327
Commercial MBS issued by GSEs	—		100,106		—		—		—		—		—		100,106
Corporate debt securities	—		—		—		66,515		32,865		—		—		99,380
Private label residential MBS	887,520		—		34,342		343		947		1,442		—		924,594
Residential MBS issued by GSEs	—		1,530,124		—		—		—		—		—		1,530,124
Tax-exempt	66,160		12,146		306,409		152,330		—		—		1,623		538,668
Trust preferred securities	—		—		—		—		28,617		—		—		28,617
U.S. government sponsored agency securities	—		38,188		—		—		—		—		—		38,188
U.S. treasury securities	—		1,984		—		—		—		—		—		1,984
Total AFS securities (1)	$	953,680	$	1,682,548	$	340,751	$	219,188	$	62,429	$	16,769	$	1,623	$	3,276,988
Equity securities
CRA investments	$	—	$	25,375	$	—	$	—	$	—	$	—	$	25,767	$	51,142
Preferred stock	—		—		—		—		45,771		3,693		14,455		63,919
Total equity securities (1)	$	—	$	25,375	$	—	$	—	$	45,771	$	3,693	$	40,222	$	115,061

(1) Where ratings differ, the Company uses an average of the available ratings by major credit agencies.

Securities with carrying amounts of approximately $962.5 million and $788.4 million at December 31, 2019 and 2018, respectively, were pledged for various purposes as required or permitted by law.

The following table presents gross gains and losses on sales of investment securities: 

	Year Ended December 31,
	2019		2018			2017
	(in thousands)
Available-for-sale securities
Gross gains	$	3,152	$	8,074		$	3,204
Gross losses	—		(7,738		)	(861		)
Net gains (losses) on AFS securities	$	3,152	$	336		$	2,343
Equity securities
Gross gains	$	—	$	—		$	—
Gross losses	—		(7,992		)	—
Net gains (losses) on equity securities	$	—	$	(7,992	)	$	—

During the year ended December 31, 2019, the Company sold certain AFS securities as part of a portfolio re-balancing initiative. These securities had a carrying value of $147.2 million and a net gain of $3.2 million was recognized on the sale of these securities. During the year ended December 31, 2019, the Company also sold one of its securities classified as HTM. The security had a par value of $10.0 million and no gain or loss was realized upon the sale. The sale of this HTM security was made as a result of significant deterioration in the issuer’s creditworthiness, representative of a change in circumstance contemplated in ASC 320-10-25 that would not call into question the Company’s intent to hold other debt securities to maturity in the future. Accordingly, management concluded that the Company’s remaining HTM securities continue to be appropriately classified as such.

During the year ended December 31, 2018, the Company sold certain available-for-sale securities with a carrying value of $119.8 million and recognized a loss on sale of these securities of $7.7 million. The sales resulted from management’s review of its investment portfolio, which led to its decision to sell lower yielding securities and reinvest in securities with higher yields and shorter durations.

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Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Notes)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair value. Goodwill and other intangible assets acquired in a business combination that are determined to have an indefinite useful life are not subject to amortization, but are subsequently evaluated for impairment at least annually. The Company has goodwill of $289.9 million as of December 31, 2019, which has been allocated to the Nevada, Northern California, Technology & Innovation, and HFF operating segments.

The Company performs its annual goodwill and intangibles impairment tests as of October 1 of each year, or more often if events or circumstances indicate that the carrying value may not be recoverable. During the years ended December 31, 2019, 2018, and 2017, there were no events or circumstances that indicated an interim impairment test of goodwill or other intangible assets was necessary and, based on the Company's annual goodwill and intangibles impairment tests as of October 1 of each of these years, it was determined that goodwill and intangible assets are not impaired.

The following is a summary of the Company's acquired intangible assets:

	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in thousands)
Subject to amortization
Core deposit intangibles	$	14,647	$	7,284	$	7,363	$	14,647	$	5,737	$	8,910
	December 31, 2019						December 31, 2018
	Gross Carrying Amount		Impairment		Net Carrying Amount		Gross Carrying Amount		Impairment		Net Carrying Amount
	(in thousands)
Not subject to amortization
Trade name	$	350	$	—	$	350	$	350	$	—	$	350

As of December 31, 2019, the Company's core deposit intangible assets had a weighted average estimated useful life of 5.5 years. The Company's remaining core deposit intangible assets consist of those acquired in the acquisition of Bridge and are being amortized using an accelerated amortization method over a period of 10 years. Amortization expense recognized on amortizable intangibles totaled $1.5 million, $1.6 million, and $2.1 million for the years ended December 31, 2019, 2018, and 2017, respectively.

Below is a summary of future estimated aggregate amortization expense:

	December 31, 2019
	(in thousands)
2020	$	1,494
2021	1,433
2022	1,364
2023	1,289
2024	1,206
Thereafter	577
Total	$	7,363

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Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Stockholder's Equity

10. STOCKHOLDERS' EQUITY

Stock-Based Compensation

Restricted Stock Awards

The Incentive Plan, as amended, gives the BOD the authority to grant up to 10.5 million in stock awards consisting of unrestricted stock, stock units, dividend equivalent rights, stock options (incentive and non-qualified), stock appreciation rights, restricted stock, and performance and annual incentive awards. The Incentive Plan limits the maximum number of shares of common stock that may be awarded to any person eligible for an award to 300,000 per calendar year and also limits the total compensation (cash and stock) that can be awarded to a non-employee director to $600,000 in any calendar year. Stock awards available for grant at December 31, 2019 were 2.9 million.

Restricted stock awards granted to employees generally vest over a three-year period. Stock grants made to non-employee WAL directors in 2019 became fully vested on July 1, 2019. The Company estimates the compensation cost for stock grants based upon the grant date fair value. Stock compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. Stock compensation expense related to restricted stock awards and stock options granted to employees are included in Salaries and employee benefits in the Consolidated Income Statement. For restricted stock awards granted to WAL directors, related stock compensation expense is included in Legal, professional, and directors' fees. For the year ended December 31, 2019, the Company recognized $17.4 million in stock-based compensation expense related to these stock grants, compared to $16.6 million in 2018, and $14.3 million in 2017.

In addition, the Company previously granted shares of restricted stock to certain members of executive management that had both performance and service conditions that affect vesting. There were no such grants made during the years ended December 31, 2019 and 2018; however, expense is still being recognized for the grants made in 2017 as they also have a three-year vesting period. For the year ended December 31, 2019, the Company recognized $1.9 million in stock-based compensation expense related to these performance-based restricted stock grants, compared to $2.5 million in 2018, and $2.3 million in 2017.

A summary of the status of the Company’s unvested shares of restricted stock and changes during the years then ended is presented below: 

	December 31,
	2019				2018
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
	(in thousands, except per share amounts)
Balance, beginning of period	1,027		$	47.53	1,142		$	36.96
Granted	516		46.04		425		58.02
Vested	(469	)	39.60		(477	)	32.31
Forfeited	(114	)	50.80		(63	)	43.62
Balance, end of period	960		$	49.98	1,027		$	47.53

The total weighted average grant date fair value of all stock awards, including the performance-based restricted stock awards, granted during the years ended December 31, 2019, 2018, and 2017 was $23.7 million, $24.7 million, and $26.1 million, respectively. The total fair value of restricted stock that vested during the years ended December 31, 2019, 2018, and 2017 was $21.3 million, $27.4 million, and $29.1 million, respectively.

As of December 31, 2019, there was $23.0 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Incentive Plan. That cost is expected to be recognized over a weighted average period of 1.62 years.

Performance Stock Units

The Company grants to members of its executive management performance stock units that do not vest unless the Company achieves a specified cumulative EPS target and a TSR performance measure over a three-year performance period. The number of shares issued will vary based on the cumulative EPS target and relative TSR performance factor that is achieved. The Company estimates the cost of performance stock units based upon the grant date fair value and expected vesting percentage over the three-year performance period. For the year ended December 31, 2019, the Company recognized $6.9 million in stock-based compensation expense related to these performance stock units, compared to $6.4 million and $6.5 million in stock-based compensation expense for such units in 2018 and 2017, respectively.

The three-year performance period for the 2016 grant ended on December 31, 2018, and the Company's cumulative EPS for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, executive management members were entitled to the maximum award of 202,776 shares, which was paid out in the first quarter of 2019.

The three-year performance period for the 2017 grant ended on December 31, 2019, and the Company's cumulative EPS and TSR performance measure for the performance period exceeded the level required for a maximum award under the terms of the grant. As a result, 163,901 shares will become fully vested and distributed to executive management in the first quarter of 2020.

Common Stock Repurchase

On December 12, 2018, the Company announced that it had adopted a common stock repurchase plan, pursuant to which the Company was authorized to repurchase up to $250 million of its shares of common stock through December 31, 2019. During the year ended December 31, 2019, the Company repurchased 2,822,402 shares of its common stock, pursuant to the repurchase plan. The shares were repurchased at a weighted average price of $42.53, for a total payment of $120.1 million. The Company's common stock repurchase program was renewed through December 2020, authorizing the Company to repurchase up to an additional $250.0 million of its outstanding common stock.

Cash Dividend

During the year ended December 31, 2019, the Company's Board of Directors declared two quarterly cash dividends of $0.25 per share of common stock, totaling $51.3 million.

Treasury Shares

Treasury share purchases represent shares surrendered to the Company equal in value to the statutory payroll tax withholding obligations arising from the vesting of employee restricted stock awards. During the year ended December 31, 2019, the Company purchased treasury shares of 210,657 at a weighted average price of $45.80 per share, compared to 223,125 shares at a weighted average price per share of $57.88 in 2018, and 269,865 shares at a weighted average price per share of $51.16 in 2017.