Quarterly report pursuant to Section 13 or 15(d)

Loans (Tables)

v3.5.0.2
Loans (Tables)
 9 Months Ended
Sep. 30, 2016
Loans Receivable
Loans receivable consisted of the following as of the dates indicated:
 
September 30, 2016
 
December 31, 2015
 
Non-PCI Loans
 
PCI Loans
 
Total
 
Non-PCI Loans
 
PCI Loans
 
Total
 
(in thousands)
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property (1)
 
 
 
 
 
 
 
 
 
 
 
Retail
$
819,604

 
$
2,470

 
$
822,074

 
$
735,501

 
$
4,849

 
$
740,350

Hospitality
618,355

 
3,925

 
622,280

 
539,345

 
4,080

 
543,425

Gas station
271,552

 
2,833

 
274,385

 
319,363

 
4,292

 
323,655

Other (2)
1,088,687

 
5,147

 
1,093,834

 
973,243

 
5,418

 
978,661

Construction
67,439

 
—

 
67,439

 
23,387

 
—

 
23,387

Residential property
329,695

 
980

 
330,675

 
234,879

 
1,157

 
236,036

Total real estate loans
3,195,332

 
15,355

 
3,210,687

 
2,825,718

 
19,796

 
2,845,514

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial term
144,754

 
135

 
144,889

 
152,602

 
171

 
152,773

Commercial lines of credit
145,738

 
—

 
145,738

 
128,224

 
—

 
128,224

International loans
29,029

 
—

 
29,029

 
31,879

 
—

 
31,879

Total commercial and industrial loans
319,521

 
135

 
319,656

 
312,705

 
171

 
312,876

Consumer loans (3)
22,266

 
50

 
22,316

 
24,879

 
47

 
24,926

Loans receivable
3,537,119

 
15,540

 
3,552,659

 
3,163,302

 
20,014

 
3,183,316

Allowance for loans losses
(33,439
)
 
(5,533
)
 
(38,972
)
 
(37,494
)
 
(5,441
)
 
(42,935
)
Loans receivable, net
$
3,503,680

 
$
10,007

 
$
3,513,687

 
$
3,125,808

 
$
14,573

 
$
3,140,381

 
(1) 
Includes owner-occupied property loans of $715.9 million and $737.5 million as of September 30, 2016 and December 31, 2015, respectively.
(2) 
Includes, among other property types, mixed-use, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than one percent of the Bank's total loans.
(3) 
Consumer loans include home equity lines of credit of $19.3 million and $21.8 million as of September 30, 2016 and December 31, 2015, respectively.
Loans Receivable to Loans Held for Sale
The following table includes the activity for loans held for sale (excluding PCI loans) by portfolio segment for the three months ended September 30, 2016 and 2015:
 
Real Estate
 
Commercial and Industrial
 
Total Non-PCI
 
(in thousands)
September 30, 2016
 
 
 
 
 
Loans held for sale, at beginning of period
$
9,293

 
$
3,540

 
$
12,833

Originations
11,272

 
6,417

 
17,689

Sales
(15,968
)
 
(8,122
)
 
(24,090
)
Principal payoffs and amortization
(2
)
 
(5
)
 
(7
)
Loans held for sale, at end of period
$
4,595

 
$
1,830

 
$
6,425

 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
Loans held for sale, at beginning of period
$
2,067

 
$
2,091

 
$
4,158

Originations
13,867

 
7,464

 
21,331

Sales
(12,199
)
 
(8,408
)
 
(20,607
)
Principal payoffs and amortization
(3
)
 
(8
)
 
(11
)
Loans held for sale, at end of period
$
3,732

 
$
1,139

 
$
4,871



The following table includes the activity for loans held for sale (excluding PCI loans) by portfolio segment for the nine months ended September 30, 2016 and 2015:
 
Real Estate
 
Commercial and Industrial
 
Total Non-PCI
 
(in thousands)
September 30, 2016
 
 
 
 
 
Loans held for sale, at beginning of period
$
840

 
$
2,034

 
$
2,874

Originations
40,120

 
20,128

 
60,248

Sales
(36,361
)
 
(20,304
)
 
(56,665
)
Principal payoffs and amortization
(4
)
 
(28
)
 
(32
)
Loans held for sale, at end of period
$
4,595

 
$
1,830

 
$
6,425

 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
Loans held for sale, at beginning of period
$
3,323

 
$
2,128

 
$
5,451

Originations
37,601

 
21,672

 
59,273

Reclassification from loans receivable
360

 
—

 
360

Sales
(37,534
)
 
(22,616
)
 
(60,150
)
Principal payoffs and amortization
(18
)
 
(45
)
 
(63
)
Loans held for sale, at end of period
$
3,732

 
$
1,139

 
$
4,871

Allowance for Non-PCI Losses and Allowance for Off-Balance Sheet Items
Activity in the allowance for loan losses was as follows for the periods indicated:
 
As of and for the Three Months Ended
 
September 30, 2016
 
September 30, 2015
 
Non-PCI Loans
 
PCI Loans
 
Total
 
Non-PCI Loans
 
PCI Loans
 
Total
 
(in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
34,259

 
$
5,448

 
$
39,707

 
$
49,468

 
$
1,352

 
$
50,820

Charge-offs
(111
)
 
(5
)
 
(116
)
 
(1,748
)
 
—

 
(1,748
)
Recoveries on loans previously charged off
831

 
—

 
831

 
992

 
—

 
992

Net loan (charge-offs) recoveries
720

 
(5
)
 
715

 
(756
)
 
—

 
(756
)
(Negative provision) provision
(1,540
)
 
90

 
(1,450
)
 
(5,490
)
 
1,786

 
(3,704
)
Balance at end of period
$
33,439

 
$
5,533

 
$
38,972

 
$
43,222

 
$
3,138

 
$
46,360



 
As of and for the Nine Months Ended
 
September 30, 2016
 
September 30, 2015
 
Non-PCI Loans
 
PCI Loans
 
Total
 
Non-PCI Loans
 
PCI Loans
 
Total
 
(in thousands)
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
$
37,494

 
$
5,441

 
$
42,935

 
$
51,640

 
$
1,026

 
$
52,666

Charge-offs
(1,410
)
 
(142
)
 
(1,552
)
 
(3,004
)
 
—

 
(3,004
)
Recoveries on loans previously charged off
2,079

 
—

 
2,079

 
4,477

 
—

 
4,477

Net loan (charge-offs) recoveries
669

 
(142
)
 
527

 
1,473

 
—

 
1,473

(Negative provision) provision
(4,724
)
 
234

 
(4,490
)
 
(9,891
)
 
2,112

 
(7,779
)
Balance at end of period
$
33,439

 
$
5,533

 
$
38,972

 
$
43,222

 
$
3,138

 
$
46,360

Activity in the allowance for loan off-balance sheet items was as follows for the periods indicated:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Balance at beginning of period
$
1,475

 
$
962

 
$
986

 
$
1,366

Provision (negative provision)
16

 
(406
)
 
505

 
(810
)
Balance at end of period
$
1,491

 
$
556

 
$
1,491

 
$
556

Allowance for Loan Losses by Portfolio Segment
The following table details the information on the allowance for loan losses by portfolio segment as of and for the three months ended September 30, 2016 and 2015:
 
Real Estate
 
Commercial and Industrial
 
Consumer
 
Unallocated
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
Allowance for loan losses on Non-PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
28,116

 
$
5,502

 
$
242

 
$
399

 
$
34,259

Charge-offs
(18
)
 
(93
)
 
—

 
—

 
(111
)
Recoveries on loans previously charged off
337

 
494

 
—

 
—

 
831

Negative provision
(479
)
 
(622
)
 
(40
)
 
(399
)
 
(1,540
)
Ending balance
$
27,956

 
$
5,281

 
$
202

 
$
—

 
$
33,439

Ending balance: individually evaluated for impairment
$
2,723

 
$
495

 
$
—

 
$
—

 
$
3,218

Ending balance: collectively evaluated for impairment
$
25,233

 
$
4,786

 
$
202

 
$
—

 
$
30,221

Non-PCI loans receivable:
 
 
 
 
 
 
 
 
 
Ending balance
$
3,195,332

 
$
319,521

 
$
22,266

 
$
—

 
$
3,537,119

Ending balance: individually evaluated for impairment
$
18,522

 
$
4,705

 
$
680

 
$
—

 
$
23,907

Ending balance: collectively evaluated for impairment
$
3,176,810

 
$
314,816

 
$
21,586

 
$
—

 
$
3,513,212

Allowance for loan losses on PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,400

 
$
41

 
$
7

 
$
—

 
$
5,448

Charge-offs
(5
)
 
—

 
—

 
—

 
(5
)
Provision
89

 
1

 
—

 
—

 
90

Ending balance: acquired with deteriorated credit quality
$
5,484

 
$
42

 
$
7

 
$
—

 
$
5,533


 
 
 
 
 
 
 
 
 
PCI loans receivable
$
15,355

 
$
135

 
$
50

 
$
—

 
$
15,540

 
 
 
 
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
 
 
 
 
Allowance for loan losses on Non-PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
39,898

 
$
8,245

 
$
172

 
$
1,153

 
$
49,468

Charge-offs
(334
)
 
(1,414
)
 
—

 
—

 
(1,748
)
Recoveries on loans previously charged off
745

 
244

 
3

 
—

 
992

(Negative provision) provision
(5,867
)
 
700

 
(78
)
 
(245
)
 
(5,490
)
Ending balance
$
34,442

 
$
7,775

 
$
97

 
$
908

 
$
43,222

Ending balance: individually evaluated for impairment
$
3,500

 
$
846

 
$
—

 
$
—

 
$
4,346

Ending balance: collectively evaluated for impairment
$
30,942

 
$
6,929

 
$
97

 
$
908

 
$
38,876

Non-PCI loans receivable:
 
 
 
 
 
 
 
 
 
Ending balance
$
2,714,645

 
$
280,591

 
$
24,691

 
$
—

 
$
3,019,927

Ending balance: individually evaluated for impairment
$
28,372

 
$
7,851

 
$
1,689

 
$
—

 
$
37,912

Ending balance: collectively evaluated for impairment
$
2,686,273

 
$
272,740

 
$
23,002

 
$
—

 
$
2,982,015

Allowance for loan losses on PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
1,289

 
$
63

 
$
—

 
$
—

 
$
1,352

Provision (negative provision)
1,830

 
(46
)
 
2

 
—

 
1,786

Ending balance: acquired with deteriorated credit quality
$
3,119

 
$
17

 
$
2

 
$
—

 
$
3,138

 
 
 
 
 
 
 
 
 
 
PCI loans receivable
$
24,909

 
$
193

 
$
43

 
$
—

 
$
25,145


The following table details the information on the allowance for loan losses by portfolio segment as of and for the nine months ended September 30, 2016 and 2015:
 
Real Estate
 
Commercial and Industrial
 
Consumer
 
Unallocated
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
Allowance for loan losses on Non-PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
29,800

 
$
7,081

 
$
242

 
$
371

 
$
37,494

Charge-offs
(709
)
 
(701
)
 
—

 
—

 
(1,410
)
Recoveries on loans previously charged off
527

 
1,499

 
53

 
—

 
2,079

Negative provision
(1,662
)
 
(2,598
)
 
(93
)
 
(371
)
 
(4,724
)
Ending balance
$
27,956

 
$
5,281

 
$
202

 
$
—

 
$
33,439

Ending balance: individually evaluated for impairment
$
2,723

 
$
495

 
$
—

 
$
—

 
$
3,218

Ending balance: collectively evaluated for impairment
$
25,233

 
$
4,786

 
$
202

 
$
—

 
$
30,221

Non-PCI loans receivable:
 
 
 
 
 
 
 
 
 
Ending balance
$
3,195,332

 
$
319,521

 
$
22,266

 
$
—

 
$
3,537,119

Ending balance: individually evaluated for impairment
$
18,522

 
$
4,705

 
$
680

 
$
—

 
$
23,907

Ending balance: collectively evaluated for impairment
$
3,176,810

 
$
314,816

 
$
21,586

 
$
—

 
$
3,513,212

Allowance for loan losses on PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,397

 
$
42

 
$
2

 
$
—

 
$
5,441

Charge-offs
(142
)
 
—

 
—

 
—

 
(142
)
Provision
229

 
—

 
5

 
—

 
234

Ending balance: acquired with deteriorated credit quality
$
5,484

 
$
42

 
$
7

 
$
—

 
$
5,533

 
 
 
 
 
 
 
 
 
 
PCI loans receivable
$
15,355

 
$
135

 
$
50

 
$
—

 
$
15,540

 
 
 
 
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
 
 
 
 
Allowance for loan losses on Non-PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
41,194

 
$
9,142

 
$
220

 
$
1,084

 
$
51,640

Charge-offs
(435
)
 
(2,569
)
 
—

 
—

 
(3,004
)
Recoveries on loans previously charged off
2,040

 
2,434

 
3

 
—

 
4,477

Negative provision
(8,357
)
 
(1,232
)
 
(126
)
 
(176
)
 
(9,891
)
Ending balance
$
34,442

 
$
7,775

 
$
97

 
$
908

 
$
43,222

Ending balance: individually evaluated for impairment
$
3,500

 
$
846

 
$
—

 
$
—

 
$
4,346

Ending balance: collectively evaluated for impairment
$
30,942

 
$
6,929

 
$
97

 
$
908

 
$
38,876

Non-PCI loans receivable:
 
 
 
 
 
 
 
 
 
Ending balance
$
2,714,645

 
$
280,591

 
$
24,691

 
$
—

 
$
3,019,927

Ending balance: individually evaluated for impairment
$
28,372

 
$
7,851

 
$
1,689

 
$
—

 
$
37,912

Ending balance: collectively evaluated for impairment
$
2,686,273

 
$
272,740

 
$
23,002

 
$
—

 
$
2,982,015

Allowance for loan losses on PCI loans:
 
 
 
 
 
 
 
 
 
Beginning balance
$
895

 
$
131

 
$
—

 
$
—

 
$
1,026

Provision (negative provision)
2,224

 
(114
)
 
2

 
—

 
2,112

Ending balance: acquired with deteriorated credit quality
$
3,119

 
$
17

 
$
2

 
$
—

 
$
3,138

 
 
 
 
 
 
 
 
 
 
PCI loans receivable
$
24,909

 
$
193

 
$
43

 
$
—

 
$
25,145

Information on Impaired Loans, Disaggregated by Loan Class
The following tables provide information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
 
Recorded
Investment
 
Unpaid 
Principal
Balance
 
With No
Related
Allowance
Recorded
 
With an
Allowance
Recorded
 
Related
Allowance
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
Retail
$
1,976

 
$
2,028

 
$
1,813

 
$
163

 
$
4

Hospitality
3,060

 
3,595

 
2,794

 
266

 
2,542

Gas station
4,496

 
5,144

 
4,496

 
—

 
—

Other
6,491

 
7,203

 
5,790

 
701

 
177

Residential property
2,499

 
2,550

 
2,499

 
—

 
—

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
Commercial term
4,697

 
4,767

 
1,246

 
3,451

 
495

Commercial lines of credit
8

 
112

 
8

 
—

 
—

Consumer loans
680

 
746

 
680

 
—

 
—

Total Non-PCI loans
$
23,907

 
$
26,145

 
$
19,326

 
$
4,581

 
$
3,218

 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
Retail
$
2,597

 
$
2,892

 
$
2,435

 
$
162

 
$
27

Hospitality
7,168

 
7,538

 
2,873

 
4,295

 
3,068

Gas station
5,393

 
5,815

 
4,400

 
993

 
112

Other
9,288

 
10,810

 
7,219

 
2,069

 
647

Residential property
2,895

 
3,081

 
2,608

 
287

 
4

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
Commercial term
5,257

 
5,621

 
1,858

 
3,399

 
457

Commercial lines of credit
381

 
493

 
280

 
101

 
100

International loans
1,215

 
1,215

 
647

 
568

 
30

Consumer loans
1,665

 
1,898

 
1,665

 
—

 
—

Total Non-PCI loans
$
35,859

 
$
39,363

 
$
23,985

 
$
11,874

 
$
4,445


 
Three Months Ended
 
Nine Months Ended
 
Average Recorded Investment
 
Interest
Income
Recognized
 
Average Recorded Investment
 
Interest
Income
Recognized
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Retail
$
1,985

 
$
31

 
$
2,430

 
$
117

Hospitality
3,222

 
66

 
4,429

 
367

Gas station
4,557

 
134

 
4,772

 
395

Other
6,541

 
138

 
7,438

 
533

Residential property
2,512

 
28

 
2,606

 
85

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
4,792

 
71

 
5,032

 
235

Commercial lines of credit
15

 
3

 
29

 
12

International loans
—

 
—

 
420

 
—

Consumer loans
682

 
7

 
688

 
22

Total Non-PCI loans
$
24,306

 
$
478

 
$
27,844

 
$
1,766

 
 
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Retail
$
2,635

 
$
46

 
$
4,301

 
$
244

Hospitality
6,151

 
143

 
6,517

 
443

Gas station
6,298

 
117

 
7,668

 
399

Other
9,967

 
202

 
10,505

 
606

Residential property
2,655

 
28

 
2,815

 
88

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
5,918

 
86

 
7,062

 
282

Commercial lines of credit
901

 
4

 
1,804

 
40

International loans
1,236

 
—

 
1,259

 
—

Consumer loans
1,695

 
17

 
1,779

 
51

Total Non-PCI loans
$
37,456

 
$
643

 
$
43,710

 
$
2,153

Summary of Interest Foregone on Impaired Loans
The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Interest income that would have been recognized had impaired loans performed in accordance with their original terms
$
695

 
$
1,444

 
$
2,306

 
$
3,361

Less: Interest income recognized on impaired loans
(478
)
 
(643
)
 
(1,766
)
 
(2,153
)
Interest foregone on impaired loans
$
217

 
$
801

 
$
540

 
$
1,208

Non-Accrual Loans, Disaggregated by Loan Class
The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
 
September 30, 2016
 
December 31, 2015
 
(in thousands)
Real estate loans:
 
 
 
Commercial property
 
 
 
Retail
$
397

 
$
946

Hospitality
2,095

 
5,790

Gas station
4,343

 
2,774

Other
2,421

 
4,068

Residential property
244

 
1,386

Commercial and industrial loans:
 
 
 
Commercial term
1,038

 
2,193

Commercial lines of credit
8

 
450

Consumer loans
402

 
1,511

Total nonaccrual Non-PCI loans
$
10,948

 
$
19,118

Non-Performing Assets
The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:
 
September 30, 2016
 
December 31, 2015
 
(in thousands)
Nonaccrual Non-PCI loans
$
10,948

 
$
19,118

Loans 90 days or more past due and still accruing
—

 
—

Total nonperforming Non-PCI loans
10,948

 
19,118

OREO
10,971

 
8,511

Total nonperforming assets
$
21,919

 
$
27,629

Troubled Debt Restructurings, Disaggregated by Type of Concession and by Loan Type
The following table details TDRs (excluding PCI loans), disaggregated by concession type and loan type, as of September 30, 2016 and December 31, 2015:
 
Nonaccrual TDRs
 
Accrual TDRs
 
Deferral
of
Principal
 
Deferral
of
Principal
and
Interest
 
Reduction
of
Principal
and
Interest
 
Extension
of
Maturity
 
Total
 
Deferral
of
Principal
 
Deferral
of
Principal
and
Interest
 
Reduction
of
Principal
and
Interest
 
Extension
of
Maturity
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
—

 
$
—

 
$
—

 
$
140

 
$
140

 
$
—

 
$
—

 
$
1,238

 
$
—

 
$
1,238

Hospitality
1,319

 
—

 
—

 
—

 
1,319

 
—

 
—

 
—

 
—

 
—

Gas station
854

 
—

 
—

 
—

 
854

 
—

 
—

 
—

 
—

 
—

Other
394

 
658

 
158

 
—

 
1,210

 
2,716

 
—

 
296

 
1,349

 
4,361

Residential property
—

 
—

 
—

 
—

 
—

 
789

 
—

 
—

 
291

 
1,080

Commercial and industrial loans:
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 


Commercial term
155

 
6

 
216

 
447

 
824

 
26

 
202

 
2,496

 
723

 
3,447

Commercial lines of credit
—

 
—

 
—

 
8

 
8

 
—

 
—

 
—

 
—

 
—

Consumer loans
—

 
—

 
—

 
—

 
—

 
250

 
 
 
121

 
—

 
371

Total Non-PCI TDR loans
$
2,722

 
$
664

 
$
374

 
$
595

 
$
4,355

 
$
3,781

 
$
202

 
$
4,151

 
$
2,363

 
$
10,497

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
—

 
$
—

 
$
—

 
$
344

 
$
344

 
$
—

 
$
—

 
$
1,227

 
$
—

 
$
1,227

Hospitality
1,216

 
28

 
—

 
—

 
1,244

 
414

 
—

 
—

 
—

 
414

Gas station
959

 
—

 
—

 
—

 
959

 
—

 
—

 
—

 
—

 
—

Other
—

 
1,301

 
216

 
8

 
1,525

 
3,537

 
—

 
322

 
1,378

 
5,237

Residential property
689

 
—

 
—

 
—

 
689

 
—

 
—

 
—

 
299

 
299

Commercial and industrial loans:
 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 
 


Commercial term
45

 
—

 
997

 
679

 
1,721

 
40

 
214

 
1,673

 
945

 
2,872

Commercial lines of credit
222

 
—

 
—

 
58

 
280

 
—

 
—

 
—

 
—

 
—

Consumer loans
—

 
—

 
116

 
—

 
116

 
250

 
—

 
—

 
—

 
250

Total Non-PCI TDR loans
$
3,131

 
$
1,329

 
$
1,329

 
$
1,089

 
$
6,878

 
$
4,241

 
$
214

 
$
3,222

 
$
2,622

 
$
10,299

Troubled Debt Restructurings, Disaggregated by Loan Class
The following table details TDRs (excluding PCI loans), disaggregated by loan class, for the three months ended September 30, 2016 and 2015:
 
September 30, 2016
 
September 30, 2015
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
(in thousands, except number of loans)
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail (1)
—

 
$
—

 
$
—

 
1

 
$
1,230

 
$
1,228

Other (2)
—

 
—

 
—

 
1

 
412

 
412

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial term (3)
1

 
100

 
89

 
5

 
420

 
396

Total Non-PCI TDR loans
1

 
$
100

 
$
89

 
7

 
$
2,062

 
$
2,036

                               
(1) 
Includes a modification of $1.2 million through a reduction of principal or accrued interest for the three months ended September 30, 2015.
(2) 
Includes a modification of $412,000 through a payment deferral for the three months ended September 30, 2015.
(3) 
Includes a modification of $89,000 through a reduction of principal or accrued interest for the three months ended September 30, 2016, and modifications of $31,000 through a reduction of principal or accrued interest, $71,000 through payment deferrals and $293,000 through extensions of maturity for the three months ended September 30, 2015.

The following table details TDRs (excluding PCI loans), disaggregated by loan class, for the nine months ended September 30, 2016 and 2015:
 
September 30, 2016
 
September 30, 2015
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
(in thousands, except number of loans)
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail (1)
1

 
$
21

 
$
23

 
1

 
$
1,248

 
$
1,228

Other (2)
—

 
—

 
—

 
2

 
731

 
725

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial term (3)
4

 
335

 
296

 
10

 
1,052

 
858

Consumer loans (4)
—

 
—

 
—

 
1

 
250

 
250

Total Non-PCI TDR loans
5

 
$
356

 
$
319

 
14

 
$
3,281

 
$
3,061

                               
(1) 
Includes a modification of $23,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2016, and a modification of $1.2 million through a reduction of principal or accrued interest for the nine months ended September 30, 2015.
(2) 
Includes modifications of $725,000 through a payment deferral for the nine months ended September 30, 2015.
(3) 
Includes modifications of $154,000 through payment deferrals, $89,000 through a reduction of principal or accrued interest and $53,000 through an extension of maturity for the nine months ended September 30, 2016, and modifications of $749,000 through extensions of maturity, $38,000 through payment deferrals and $71,000 through a reduction of principal or accrued interest for the nine months ended September 30, 2015.
(4) 
Includes a modification of $250,000 through a payment deferral for the nine months ended September 30, 2015.
Troubled Debt Restructurings that Defaulted Subsequent to Modifications Occurring Within Previous Twelve Months, Disaggregated by Loan Class
The following table details TDRs (excluding PCI loans) that defaulted subsequent to the modifications occurring within the previous 12 months, disaggregated by loan class, for the three months ended September 30, 2016 and 2015, respectively:
 
September 30, 2016
 
September 30, 2015
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(in thousands, except number of loans)
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Hospitality
—

 
$
—

 
1

 
$
466

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
1

 
53

 
—

 
—

Total Non-PCI TDR loans
1

 
$
53

 
1

 
$
466



The following table details TDRs (excluding PCI loans) that defaulted subsequent to the modifications occurring within the previous 12 months, disaggregated by loan class, for the nine months ended September 30, 2016 and 2015, respectively:
 
September 30, 2016
 
September 30, 2015
 
Number of Loans
 
Recorded Investment
 
Number of Loans
 
Recorded Investment
 
(in thousands, except number of loans)
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Hospitality
—

 
$
—

 
1

 
$
466

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
1

 
53

 
—

 
—

Total Non-PCI TDR loans
1

 
$
53

 
1

 
$
466

Schedule of Changes in Outstanding Balance and Carrying Amount of PCI Loans
The following table summarizes the changes in carrying value of PCI loans during the nine months ended September 30, 2016 and 2015:
 
Carrying Amount
 
Accretable Yield
 
(in thousands)
Balance at January 1, 2016
$
14,573

 
$
(5,944
)
Accretion
933

 
933

Payments received
(6,408
)
 
—

Disposal/transfer to OREO
1,143

 
—

Change in expected cash flows, net
—

 
(900
)
Provision for credit losses
(234
)
 
—

Balance at September 30, 2016
$
10,007

 
$
(5,911
)
 
 
 
 
Balance at January 1, 2015
$
43,475

 
$
(11,025
)
Accretion
2,462

 
2,462

Payments received
(26,060
)
 
—

Disposal/transfer to OREO
4,242

 
—

Change in expected cash flows, net
—

 
1,349

Provision for credit losses
(2,112
)
 
—

Balance at September 30, 2016
$
22,007

 
$
(7,214
)
Summary of Acquired Purchased Credit Impaired Loans
Below is a summary of PCI as of September 30, 2016 and December 31, 2015, respectively:
 
Pooled PCI Loans
 
Non-pooled PCI Loans
 
 
 
Number of Loans
 
Number of Pools
 
Carrying Amount
(in thousands)
 
Percentage of Total
 
Number of Loans
 
Carrying Amount
(in thousands)
 
Percentage of Total
 
Total PCI Loans
 (in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
54

 
7

 
$
13,437

 
93.5
%
 
1

 
$
938

 
6.5
%
 
$
14,375

Residential property
—

 
—

 
—

 
—
%
 
2

 
980

 
100.0
%
 
980

Total real estate loans
54

 
7

 
13,437

 
87.5
%
 
3

 
1,918

 
12.5
%
 
15,355

Commercial and industrial loans
6

 
3

 
135

 
100.0
%
 
—

 
—

 
—
%
 
135

Consumer loans
1

 
1

 
50

 
100.0
%
 
—

 
—

 
—
%
 
50

Total acquired loans
61

 
11

 
13,622

 
87.7
%
 
3

 
1,918

 
12.3
%
 
15,540

Allowance for loan losses
 
 
 
 
(5,169
)
 
 
 
 
 
(364
)
 
 
 
(5,533
)
Total carrying amount
 
 
 
 
$
8,453

 
 
 
 
 
$
1,554

 
 
 
$
10,007




 
Pooled PCI Loans
 
Non-pooled PCI Loans
 
 
 
Number of Loans
 
Number of Pools
 
Carrying Amount
(in thousands)
 
Percentage of Total
 
Number of Loans
 
Carrying Amount
(in thousands)
 
Percentage of Total
 
Total PCI Loans
 (in thousands)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
71

 
9

 
$
17,644

 
94.7
%
 
2

 
$
995

 
5.3
%
 
$
18,639

Residential property
2

 
2

 
119

 
10.3
%
 
2

 
1,038

 
89.7
%
 
1,157

Total real estate loans
73

 
11

 
17,763

 
89.7
%
 
4

 
2,033

 
10.3
%
 
19,796

Commercial and industrial loans
11

 
3

 
171

 
100.0
%
 
—

 
—

 
—
%
 
171

Consumer loans
1

 
1

 
47

 
100.0
%
 
—

 
—

 
—
%
 
47

Total acquired loans
85

 
15

 
17,981

 
89.8
%
 
4

 
2,033

 
10.2
%
 
20,014

Allowance for loan losses
 
 
 
 
(5,136
)
 
 
 
 
 
(305
)
 
 
 
(5,441
)
Total carrying amount
 
 
 
 
$
12,845

 
 
 
 
 
$
1,728

 
 
 
$
14,573

Non-PCI Loans [Member]  
Credit Quality of Loan Portfolio
As of September 30, 2016 and December 31, 2015, pass/pass-watch, special mention and classified loans (excluding PCI loans), disaggregated by loan class, were as follows:
 
Pass/Pass-Watch
 
Special Mention
 
Classified
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Retail
$
811,506

 
$
3,608

 
$
4,490

 
$
819,604

Hospitality
597,533

 
4,811

 
16,011

 
618,355

Gas station
263,947

 
1,917

 
5,688

 
271,552

Other
1,080,597

 
1,701

 
6,389

 
1,088,687

Construction
67,439

 
—

 
—

 
67,439

Residential property
329,159

 
—

 
536

 
329,695

Commercial and industrial loans:
 
 
 
 
 
 

Commercial term
139,999

 
1,980

 
2,775

 
144,754

Commercial lines of credit
145,535

 
195

 
8

 
145,738

International loans
26,649

 
2,380

 
—

 
29,029

Consumer loans
21,309

 
—

 
957

 
22,266

Total Non-PCI loans
$
3,483,673

 
$
16,592

 
$
36,854

 
$
3,537,119

 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
Retail
$
722,483

 
$
9,519

 
$
3,499

 
$
735,501

Hospitality
517,462

 
9,604

 
12,279

 
539,345

Gas station
309,598

 
5,897

 
3,868

 
319,363

Other
953,839

 
8,662

 
10,742

 
973,243

Construction
23,387

 
—

 
—

 
23,387

Residential property
232,862

 
58

 
1,959

 
234,879

Commercial and industrial loans:
 
 
 
 
 
 
 
Commercial term
145,773

 
2,370

 
4,459

 
152,602

Commercial lines of credit
127,579

 
195

 
450

 
128,224

International loans
29,719

 
2,160

 
—

 
31,879

Consumer loans
22,707

 
91

 
2,081

 
24,879

Total Non-PCI loans
$
3,085,409

 
$
38,556

 
$
39,337

 
$
3,163,302

Analysis of Past Due Loans, Disaggregated by Loan Class
The following is an aging analysis of loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total Past Due
 
Current
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail
$
300

 
$
—

 
$
223

 
$
523

 
$
819,081

 
$
819,604

Hospitality
489

 
47

 
1,607

 
2,143

 
616,212

 
618,355

Gas station
—

 
662

 
3,433

 
4,095

 
267,457

 
271,552

Other
(1
)
 
627

 
1,236

 
1,862

 
1,086,825

 
1,088,687

Construction
—

 
—

 
—

 
—

 
67,439

 
67,439

Residential property
—

 
—

 
101

 
101

 
329,594

 
329,695

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial term
617

 
18

 
246

 
881

 
143,873

 
144,754

Commercial lines of credit
176

 
—

 
8

 
184

 
145,554

 
145,738

International loans
—

 
—

 
—

 
—

 
29,029

 
29,029

Consumer loans
90

 
92

 
—

 
182

 
22,084

 
22,266

Total Non-PCI loans
$
1,671

 
$
1,446

 
$
6,854

 
$
9,971

 
$
3,527,148

 
$
3,537,119

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail
$
441

 
$
343

 
$
399

 
$
1,183

 
$
734,318

 
$
735,501

Hospitality
1,250

 
49

 
3,840

 
5,139

 
534,206

 
539,345

Gas station
959

 
406

 
1,517

 
2,882

 
316,481

 
319,363

Other
1,144

 
661

 
1,636

 
3,441

 
969,802

 
973,243

Construction
—

 
—

 
—

 
—

 
23,387

 
23,387

Residential property
—

 
—

 
396

 
396

 
234,483

 
234,879

Commercial and industrial loans:
 
 
 
 
 
 


 
 
 


Commercial term
420

 
253

 
458

 
1,131

 
151,471

 
152,602

Commercial lines of credit
58

 
—

 
392

 
450

 
127,774

 
128,224

International loans
—

 
497

 
—

 
497

 
31,382

 
31,879

Consumer loans
250

 
5

 
—

 
255

 
24,624

 
24,879

Total Non-PCI loans
$
4,522

 
$
2,214

 
$
8,638

 
$
15,374

 
$
3,147,928

 
$
3,163,302

PCI Loans [Member]  
Credit Quality of Loan Portfolio
As of September 30, 2016 and December 31, 2015, pass/pass-watch, special mention and classified PCI loans, disaggregated by loan class, were as follows:
 
Pass/Pass-Watch
 
Special Mention
 
Classified
 
Total
 
Allowance
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail
$
—

 
$
—

 
$
2,470

 
$
2,470

 
$
282

 
$
2,188

Hospitality
179

 
—

 
3,746

 
3,925

 
52

 
3,873

Gas station
—

 
1,164

 
1,669

 
2,833

 
575

 
2,258

Other
—

 
—

 
5,147

 
5,147

 
4,495

 
652

Residential property
980

 
—

 
—

 
980

 
80

 
900

Commercial and industrial loans:
 
 
 
 
 
 


 
 
 


Commercial term
—

 
—

 
135

 
135

 
42

 
93

Consumer loans
—

 
—

 
50

 
50

 
7

 
43

Total PCI loans
$
1,159

 
$
1,164

 
$
13,217

 
$
15,540

 
$
5,533

 
$
10,007

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
Retail
$
—

 
$
—

 
$
4,849

 
$
4,849

 
$
269

 
$
4,580

Hospitality
186

 
—

 
3,894

 
4,080

 
88

 
3,992

Gas station
—

 
176

 
4,116

 
4,292

 
477

 
3,815

Other
—

 
—

 
5,418

 
5,418

 
4,412

 
1,006

Residential property
999

 
—

 
158

 
1,157

 
151

 
1,006

Commercial and industrial loans:
 
 
 
 
 
 


 
 
 


Commercial term
—

 
—

 
171

 
171

 
42

 
129

Consumer loans
—

 
—

 
47

 
47

 
2

 
45

Total PCI loans
$
1,185

 
$
176

 
$
18,653

 
$
20,014

 
$
5,441

 
$
14,573

Analysis of Past Due Loans, Disaggregated by Loan Class
The following table presents a summary of the borrowers' underlying payment status of PCI loans as of the dates indicated:
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More Past Due
 
Total Past Due
 
Current
 
Total
 
Allowance Amount
 
Total
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
—

 
$
—

 
$
966

 
$
966

 
$
1,504

 
$
2,470

 
$
282

 
$
2,188

Hospitality
—

 
—

 
97

 
97

 
3,828

 
3,925

 
52

 
3,873

Gas station
—

 
—

 
336

 
336

 
2,497

 
2,833

 
575

 
2,258

Other
—

 
—

 
4,991

 
4,991

 
156

 
5,147

 
4,495

 
652

Residential property
—

 
—

 
—

 
—

 
980

 
980

 
80

 
900

Commercial and industrial loans:
 
 
 
 
 
 

 
 
 

 
 
 

Commercial term
—

 
—

 
6

 
6

 
129

 
135

 
42

 
93

Consumer loans
—

 
—

 
50

 
50

 
 
 
50

 
7

 
43

Total PCI loans
$
—

 
$
—

 
$
6,446

 
$
6,446

 
$
9,094

 
$
15,540

 
$
5,533

 
$
10,007

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial property
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
$
—

 
$
267

 
$
1,109

 
$
1,376

 
$
3,473

 
$
4,849

 
$
269

 
$
4,580

Hospitality
—

 
9

 
154

 
163

 
3,917

 
4,080

 
88

 
3,992

Gas station
—

 
—

 
457

 
457

 
3,835

 
4,292

 
477

 
3,815

Other
4

 
—

 
4,996

 
5,000

 
418

 
5,418

 
4,412

 
1,006

Residential property
—

 
—

 
158

 
158

 
999

 
1,157

 
151

 
1,006

Commercial and industrial loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial term
—

 
—

 
4

 
4

 
167

 
171

 
42

 
129

Consumer loans
—

 
—

 
47

 
47

 
—

 
47

 
2

 
45

Total PCI loans
$
4

 
$
276

 
$
6,925

 
$
7,205

 
$
12,809

 
$
20,014

 
$
5,441

 
$
14,573