| Loans Receivable |
Note 3 — Loans Receivable
The Board of Directors and management review and approve the Bank’s loan policy and procedures on a regular basis to reflect matters such as regulatory and organizational structure changes, strategic planning revisions, concentrations of credit, loan delinquencies and nonperforming loans, and problem loans.
Real estate loans are loans secured by liens or interest in real estate, to provide purchase, construction, and refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit, SBA and international loans. Leases receivable include equipment finance agreements, which are typically secured by the business assets being financed. We maintain management loan review and monitoring departments that review and monitor pass graded loans as well as problem loans to prevent further deterioration.
Concentrations of Credit: The majority of the Bank’s loan portfolio consists of commercial real estate loans.
Loans receivable, net
Loans receivable consisted of the following as of the dates indicated:
|
|
|
December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
824,606
|
|
|
$
|
869,302
|
|
|
Hospitality
|
|
|
859,953
|
|
|
|
922,288
|
|
|
Other (1)
|
|
|
1,610,377
|
|
|
|
1,358,432
|
|
|
Total commercial property loans
|
|
|
3,294,936
|
|
|
|
3,150,022
|
|
|
Construction
|
|
|
58,882
|
|
|
|
76,455
|
|
|
Residential/consumer loans
|
|
|
345,831
|
|
|
|
415,698
|
|
|
Total real estate loans
|
|
|
3,699,649
|
|
|
|
3,642,175
|
|
|
Commercial and industrial loans
|
|
|
757,255
|
|
|
|
484,093
|
|
|
Leases receivable
|
|
|
423,264
|
|
|
|
483,879
|
|
|
Loans receivable
|
|
|
4,880,168
|
|
|
|
4,610,147
|
|
|
Allowance for credit losses
|
|
|
(90,426
|
)
|
|
|
(61,408
|
)
|
|
Loans receivable, net
|
|
$
|
4,789,742
|
|
|
$
|
4,548,739
|
|
|
(1)
|
Includes, among other property types, mixed-use, gas station, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than one percent of the Bank's total loans receivable.
|
The CARES Act allows financial institutions to assist customers in dealing with financial hardship by (a) providing federal funding so that financial institutions can originate SBA loans to borrowers at a low interest rate under the Paycheck Protection Program (“PPP”) loans with eventual debt forgiveness should the borrower continue to meet certain criteria; and (b) allowing financial institutions to temporarily modify loan terms by deferring loan payments, loan fees, etc. without considering them Troubled Debt Restructures.
At December 31, 2020, there were $295.7 million of PPP loans included in commercial and industrial loans in the table above. In addition, during 2020, a total of $1.41 billion of loans entered into payment deferrals under Section 4013 of the CARES Act.
Accrued interest on loans was $15.2 million and $10.0 million at December 31, 2020 and 2019, respectively. Accrued interest at December 31, 2020 included unpaid deferred interest receivable related to loans modified under the CARES Act of $7.5 million, net of a $1.7 million valuation allowance.
At December 31, 2020 and 2019, loans of $2.17 billion and $1.35 billion, respectively, were pledged to secure advances from the FHLB.
Loans Held for Sale
The following table details the information on SBA loans held for sale by portfolio segment for the years ended December 31, 2020 and 2019:
|
|
|
Real Estate
|
|
|
Commercial
and Industrial
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
2,943
|
|
|
$
|
3,077
|
|
|
$
|
6,020
|
|
|
Originations and transfers
|
|
|
44,770
|
|
|
|
26,922
|
|
|
|
71,692
|
|
|
Sales
|
|
|
(39,666
|
)
|
|
|
(29,386
|
)
|
|
|
(69,052
|
)
|
|
Principal paydowns and amortization
|
|
|
(5
|
)
|
|
|
(87
|
)
|
|
|
(92
|
)
|
|
Balance at end of period
|
|
$
|
8,042
|
|
|
$
|
526
|
|
|
$
|
8,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
5,194
|
|
|
$
|
4,196
|
|
|
$
|
9,390
|
|
|
Originations and transfers
|
|
|
43,001
|
|
|
|
33,764
|
|
|
|
76,765
|
|
|
Sales
|
|
|
(45,251
|
)
|
|
|
(34,865
|
)
|
|
|
(80,116
|
)
|
|
Principal paydowns and amortization
|
|
|
(1
|
)
|
|
|
(18
|
)
|
|
|
(19
|
)
|
|
Balance at end of period
|
|
$
|
2,943
|
|
|
$
|
3,077
|
|
|
$
|
6,020
|
|
Allowance for credit losses
Activity in the allowance for credit losses was as follows for the periods indicated:
|
|
|
As of and for the Year Ended December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
(in thousands)
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
61,408
|
|
|
$
|
31,974
|
|
|
$
|
31,043
|
|
|
Adjustment related to adoption of ASU 2016-13
|
|
|
17,433
|
|
|
|
—
|
|
|
|
—
|
|
|
Adjusted balance
|
|
|
78,841
|
|
|
|
31,974
|
|
|
|
31,043
|
|
|
Less loans receivable charged off
|
|
|
33,952
|
|
|
|
4,588
|
|
|
|
7,310
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(3,063
|
)
|
|
|
(3,852
|
)
|
|
|
(4,251
|
)
|
|
Provision for credit losses
|
|
|
42,474
|
|
|
|
30,170
|
|
|
|
3,990
|
|
|
Balance at end of period
|
|
$
|
90,426
|
|
|
$
|
61,408
|
|
|
$
|
31,974
|
|
The following table details the information on the allowance for credit losses by portfolio segment for the years ended December 31, 2020 and 2019:
|
|
|
Real
Estate
|
|
|
Commercial
and
Industrial
|
|
|
Leases
Receivable
|
|
|
Unallocated
|
|
|
Total
|
|
|
|
|
|
(in thousands)
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
36,435
|
|
|
$
|
16,206
|
|
|
$
|
8,767
|
|
|
$
|
—
|
|
|
|
61,408
|
|
|
|
Adjustment related to adoption of ASU 2016-13
|
|
|
14,028
|
|
|
|
(2,497
|
)
|
|
|
5,902
|
|
|
|
—
|
|
|
|
17,433
|
|
|
|
Adjusted balance
|
|
|
50,463
|
|
|
|
13,709
|
|
|
|
14,669
|
|
|
|
—
|
|
|
|
78,841
|
|
|
|
Less loans charged off
|
|
|
15,567
|
|
|
|
13,312
|
|
|
|
5,073
|
|
|
|
—
|
|
|
|
33,952
|
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(2,124
|
)
|
|
|
(336
|
)
|
|
|
(603
|
)
|
|
|
—
|
|
|
|
(3,063
|
)
|
|
|
Provision for credit losses
|
|
|
14,856
|
|
|
|
20,677
|
|
|
|
6,941
|
|
|
|
—
|
|
|
|
42,474
|
|
|
|
Ending balance
|
|
$
|
51,876
|
|
|
$
|
21,410
|
|
|
$
|
17,140
|
|
|
$
|
—
|
|
|
$
|
90,426
|
|
|
|
Individually evaluated
|
|
$
|
20
|
|
|
$
|
7,976
|
|
|
$
|
6,056
|
|
|
$
|
—
|
|
|
$
|
14,052
|
|
|
|
Collectively evaluated
|
|
$
|
51,855
|
|
|
$
|
13,434
|
|
|
$
|
11,085
|
|
|
$
|
—
|
|
|
$
|
76,374
|
|
|
|
Loans receivable
|
|
$
|
3,699,649
|
|
|
$
|
757,255
|
|
|
$
|
423,264
|
|
|
$
|
—
|
|
|
$
|
4,880,168
|
|
|
|
Individually evaluated
|
|
$
|
65,160
|
|
|
$
|
14,568
|
|
|
$
|
11,234
|
|
|
$
|
—
|
|
|
$
|
90,961
|
|
|
|
Collectively evaluated
|
|
$
|
3,634,489
|
|
|
$
|
742,687
|
|
|
$
|
412,030
|
|
|
$
|
—
|
|
|
$
|
4,789,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$
|
18,482
|
|
|
$
|
7,162
|
|
|
$
|
6,303
|
|
|
$
|
27
|
|
|
$
|
31,974
|
|
|
|
Less loans charged off
|
|
|
132
|
|
|
|
1,293
|
|
|
|
3,162
|
|
|
|
—
|
|
|
|
4,588
|
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(2,190
|
)
|
|
|
(1,241
|
)
|
|
|
(422
|
)
|
|
|
—
|
|
|
|
(3,852
|
)
|
|
|
Provision for credit losses
|
|
|
15,896
|
|
|
|
9,097
|
|
|
|
5,205
|
|
|
|
(27
|
)
|
|
|
30,170
|
|
|
|
Ending balance
|
|
$
|
36,435
|
|
|
$
|
16,206
|
|
|
$
|
8,767
|
|
|
$
|
—
|
|
|
$
|
61,408
|
|
|
|
Individually evaluated for impairment
|
|
$
|
14,029
|
|
|
$
|
8,885
|
|
|
$
|
2,863
|
|
|
$
|
—
|
|
|
$
|
25,777
|
|
|
|
Collectively evaluated for impairment
|
|
$
|
22,406
|
|
|
$
|
7,321
|
|
|
$
|
5,904
|
|
|
$
|
—
|
|
|
$
|
35,631
|
|
|
|
Loans receivable
|
|
$
|
3,642,175
|
|
|
$
|
484,093
|
|
|
$
|
483,879
|
|
|
$
|
—
|
|
|
$
|
4,610,147
|
|
|
|
Individually evaluated for impairment
|
|
$
|
45,163
|
|
|
$
|
13,700
|
|
|
$
|
5,902
|
|
|
$
|
—
|
|
|
$
|
64,765
|
|
|
|
Collectively evaluated for impairment
|
|
$
|
3,597,012
|
|
|
$
|
470,393
|
|
|
$
|
477,977
|
|
|
$
|
—
|
|
|
$
|
4,545,382
|
|
|
The table below illustrates the allowance for credit losses by portfolio segment as a percentage of the recorded total allowance for credit losses and as a percentage of the aggregate recorded investment of loans receivable for the years ended December 31, 2020 and 2019:
|
|
|
December 31, 2020
|
|
|
December 31, 2019
|
|
|
|
|
Allowance
Amount
|
|
|
Total
Loans
|
|
|
Percentage
of Total
Loans
|
|
|
Allowance
Amount
|
|
|
Total
Loans
|
|
|
Percentage
of Total
Loans
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
4,855
|
|
|
$
|
824,606
|
|
|
|
16.9
|
%
|
|
$
|
4,911
|
|
|
$
|
869,302
|
|
|
|
18.9
|
%
|
|
Hospitality
|
|
|
28,801
|
|
|
|
859,953
|
|
|
|
17.6
|
%
|
|
|
6,686
|
|
|
|
922,288
|
|
|
|
20.0
|
%
|
|
Other
|
|
|
13,991
|
|
|
|
1,610,377
|
|
|
|
33.0
|
%
|
|
|
8,060
|
|
|
|
1,358,432
|
|
|
|
29.4
|
%
|
|
Total commercial property loans
|
|
|
47,647
|
|
|
|
3,294,936
|
|
|
|
67.5
|
%
|
|
|
19,657
|
|
|
|
3,150,022
|
|
|
|
68.3
|
%
|
|
Construction
|
|
|
2,876
|
|
|
|
58,882
|
|
|
|
1.2
|
%
|
|
|
15,003
|
|
|
|
76,455
|
|
|
|
1.7
|
%
|
|
Residential/consumer loans
|
|
|
1,353
|
|
|
|
345,831
|
|
|
|
7.1
|
%
|
|
|
1,775
|
|
|
|
415,698
|
|
|
|
9.0
|
%
|
|
Total real estate loans
|
|
|
51,876
|
|
|
|
3,699,649
|
|
|
|
75.8
|
%
|
|
|
36,435
|
|
|
|
3,642,175
|
|
|
|
79.0
|
%
|
|
Commercial and industrial loans
|
|
|
21,410
|
|
|
|
757,255
|
|
|
|
15.5
|
%
|
|
|
16,206
|
|
|
|
484,093
|
|
|
|
10.5
|
%
|
|
Leases receivable
|
|
|
17,140
|
|
|
|
423,264
|
|
|
|
8.7
|
%
|
|
|
8,767
|
|
|
|
483,879
|
|
|
|
10.5
|
%
|
|
Total
|
|
$
|
90,426
|
|
|
$
|
4,880,168
|
|
|
|
100.0
|
%
|
|
$
|
61,408
|
|
|
$
|
4,610,147
|
|
|
|
100.0
|
%
|
The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral and any collateral dependent loans that are still accruing but are considered nonperforming.
|
|
|
Amortized
Cost
|
|
|
|
|
(in thousands)
|
|
|
December 31, 2020
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
Retail
|
|
$
|
6,330
|
|
|
Hospitality
|
|
|
20,612
|
|
|
Other
|
|
|
8,410
|
|
|
Commercial property
|
|
|
35,352
|
|
|
Construction
|
|
|
24,854
|
|
|
Residential/consumer loans
|
|
|
2,867
|
|
|
Total real estate loans
|
|
|
63,073
|
|
|
Commercial and industrial loans
|
|
|
41
|
|
|
Total (1)
|
|
$
|
63,114
|
|
|
(1)
|
Includes, among other property types, hospitality, retail and other, mixed-use, gas station, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than one percent of the Bank's total loans receivable.
|
Loan Quality Indicators
As part of the on-going monitoring of the quality of our loan portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan in our portfolio. A third-party loan review is required on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:
Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.
Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.
Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.
Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.
Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.
Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.
As of December 31, 2020 and 2019, the recorded investment in pass/pass-watch, special mention and classified (substandard, doubtful and loss) loans, disaggregated by loan class, were as follows:
|
|
|
Pass/Pass-
Watch
|
|
|
Special
Mention
|
|
|
Classified
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
807,348
|
|
|
$
|
3,382
|
|
|
$
|
13,876
|
|
|
$
|
824,606
|
|
|
Hospitality
|
|
|
788,369
|
|
|
|
26,086
|
|
|
|
45,498
|
|
|
|
859,953
|
|
|
Other
|
|
|
1,571,012
|
|
|
|
23,876
|
|
|
|
15,489
|
|
|
|
1,610,377
|
|
|
Total commercial property loans
|
|
|
3,166,729
|
|
|
|
53,344
|
|
|
|
74,863
|
|
|
|
3,294,936
|
|
|
Construction
|
|
|
34,028
|
|
|
|
—
|
|
|
|
24,854
|
|
|
|
58,882
|
|
|
Residential/consumer loans
|
|
|
337,549
|
|
|
|
5,078
|
|
|
|
3,204
|
|
|
|
345,831
|
|
|
Total real estate loans
|
|
|
3,538,306
|
|
|
|
58,422
|
|
|
|
102,921
|
|
|
|
3,699,649
|
|
|
Commercial and industrial loans
|
|
|
712,685
|
|
|
|
18,556
|
|
|
|
26,014
|
|
|
|
757,255
|
|
|
Leases receivable
|
|
|
412,030
|
|
|
|
—
|
|
|
|
11,234
|
|
|
|
423,264
|
|
|
Total loans receivable
|
|
$
|
4,663,021
|
|
|
$
|
76,978
|
|
|
$
|
140,169
|
|
|
$
|
4,880,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
859,739
|
|
|
$
|
2,835
|
|
|
$
|
6,728
|
|
|
$
|
869,302
|
|
|
Hospitality
|
|
|
915,834
|
|
|
|
939
|
|
|
|
5,515
|
|
|
|
922,288
|
|
|
Other
|
|
|
1,329,817
|
|
|
|
7,807
|
|
|
|
20,809
|
|
|
|
1,358,432
|
|
|
Total commercial property loans
|
|
|
3,105,390
|
|
|
|
11,580
|
|
|
|
33,052
|
|
|
|
3,150,022
|
|
|
Construction
|
|
|
36,956
|
|
|
|
1,613
|
|
|
|
37,886
|
|
|
|
76,455
|
|
|
Residential/consumer loans
|
|
|
410,984
|
|
|
|
3,217
|
|
|
|
1,497
|
|
|
|
415,698
|
|
|
Total real estate loans
|
|
|
3,553,329
|
|
|
|
16,410
|
|
|
|
72,436
|
|
|
|
3,642,175
|
|
|
Commercial and industrial loans
|
|
|
458,184
|
|
|
|
10,222
|
|
|
|
15,687
|
|
|
|
484,093
|
|
|
Leases receivable
|
|
|
477,977
|
|
|
|
—
|
|
|
|
5,902
|
|
|
|
483,879
|
|
|
Total loans receivable
|
|
$
|
4,489,491
|
|
|
$
|
26,632
|
|
|
$
|
94,025
|
|
|
$
|
4,610,147
|
|
At December 31, 2020, of the $155.6 million of loans modified in accordance with the provision of the CARES Act, $99.9 million were in pass/watch, $31.3 million were special mention, and $24.4 million were classified.
Loans by Vintage Year and Risk Rating
|
|
|
Term Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost Basis by Origination Year (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans
Amortized
Cost Basis
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
920,876
|
|
|
$
|
513,962
|
|
|
$
|
479,221
|
|
|
$
|
343,659
|
|
|
$
|
418,362
|
|
|
$
|
459,366
|
|
|
$
|
31,283
|
|
|
$
|
3,166,729
|
|
|
Special Mention
|
|
|
23,429
|
|
|
|
2,484
|
|
|
|
8,630
|
|
|
|
1,672
|
|
|
|
14,971
|
|
|
|
2,158
|
|
|
|
—
|
|
|
|
53,344
|
|
|
Classified
|
|
|
20,307
|
|
|
|
4,276
|
|
|
|
9,239
|
|
|
|
3,084
|
|
|
|
18,712
|
|
|
|
19,115
|
|
|
|
130
|
|
|
|
74,863
|
|
|
Total commercial property
|
|
|
964,612
|
|
|
|
520,722
|
|
|
|
497,090
|
|
|
|
348,415
|
|
|
|
452,045
|
|
|
|
480,639
|
|
|
|
31,413
|
|
|
|
3,294,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
33,415
|
|
|
$
|
613
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,028
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Classified
|
|
|
12,808
|
|
|
|
—
|
|
|
|
12,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,854
|
|
|
Total construction
|
|
|
46,223
|
|
|
|
613
|
|
|
|
12,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential/consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
27,997
|
|
|
$
|
962
|
|
|
$
|
37,122
|
|
|
$
|
127,987
|
|
|
$
|
82,124
|
|
|
$
|
54,004
|
|
|
$
|
7,353
|
|
|
$
|
337,549
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
930
|
|
|
$
|
828
|
|
|
|
1,863
|
|
|
|
1,457
|
|
|
|
—
|
|
|
|
5,078
|
|
|
Classified
|
|
|
—
|
|
|
|
—
|
|
|
|
620
|
|
|
|
2,283
|
|
|
|
301
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,204
|
|
|
Total residential property
|
|
|
27,997
|
|
|
|
962
|
|
|
|
38,672
|
|
|
|
131,098
|
|
|
|
84,288
|
|
|
|
55,461
|
|
|
|
7,353
|
|
|
|
345,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
982,288
|
|
|
$
|
515,537
|
|
|
$
|
516,343
|
|
|
$
|
471,646
|
|
|
$
|
500,486
|
|
|
$
|
513,370
|
|
|
$
|
38,636
|
|
|
$
|
3,538,306
|
|
|
Special Mention
|
|
|
23,429
|
|
|
|
2,484
|
|
|
|
9,560
|
|
|
|
2,500
|
|
|
|
16,834
|
|
|
|
3,615
|
|
|
|
—
|
|
|
|
58,422
|
|
|
Classified
|
|
|
33,115
|
|
|
|
4,276
|
|
|
|
21,905
|
|
|
|
5,367
|
|
|
|
19,013
|
|
|
|
19,115
|
|
|
|
130
|
|
|
|
102,921
|
|
|
Total real estate loans
|
|
|
1,038,832
|
|
|
|
522,297
|
|
|
|
547,808
|
|
|
|
479,513
|
|
|
|
536,333
|
|
|
|
536,100
|
|
|
|
38,766
|
|
|
|
3,699,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
406,486
|
|
|
$
|
73,160
|
|
|
$
|
54,110
|
|
|
$
|
17,834
|
|
|
$
|
4,464
|
|
|
$
|
9,910
|
|
|
$
|
146,721
|
|
|
$
|
712,685
|
|
|
Special Mention
|
|
|
7,239
|
|
|
|
4,509
|
|
|
|
4,146
|
|
|
|
1,110
|
|
|
|
31
|
|
|
|
1,074
|
|
|
|
447
|
|
|
|
18,556
|
|
|
Classified
|
|
|
8,552
|
|
|
|
4,784
|
|
|
|
1,364
|
|
|
|
930
|
|
|
|
4,380
|
|
|
|
1,359
|
|
|
|
4,645
|
|
|
|
26,014
|
|
|
Total commercial and industrial loans
|
|
|
422,277
|
|
|
|
82,453
|
|
|
|
59,620
|
|
|
|
19,874
|
|
|
|
8,875
|
|
|
|
12,343
|
|
|
|
151,813
|
|
|
|
757,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
113,712
|
|
|
$
|
165,242
|
|
|
$
|
91,408
|
|
|
$
|
30,405
|
|
|
$
|
10,096
|
|
|
$
|
1,167
|
|
|
$
|
—
|
|
|
$
|
412,030
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Classified
|
|
|
452
|
|
|
|
5,728
|
|
|
|
3,137
|
|
|
|
876
|
|
|
|
804
|
|
|
|
237
|
|
|
|
—
|
|
|
|
11,234
|
|
|
Total leases receivable
|
|
|
114,164
|
|
|
|
170,970
|
|
|
|
94,545
|
|
|
|
31,281
|
|
|
|
10,900
|
|
|
|
1,404
|
|
|
|
—
|
|
|
|
423,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
1,502,486
|
|
|
$
|
753,939
|
|
|
$
|
661,861
|
|
|
$
|
519,885
|
|
|
$
|
515,046
|
|
|
$
|
524,447
|
|
|
$
|
185,357
|
|
|
$
|
4,663,021
|
|
|
Special Mention
|
|
|
30,668
|
|
|
|
6,993
|
|
|
|
13,706
|
|
|
|
3,610
|
|
|
|
16,865
|
|
|
|
4,689
|
|
|
|
447
|
|
|
|
76,978
|
|
|
Classified
|
|
|
42,119
|
|
|
|
14,788
|
|
|
|
26,406
|
|
|
|
7,173
|
|
|
|
24,197
|
|
|
|
20,711
|
|
|
|
4,775
|
|
|
|
140,169
|
|
|
Total loans receivable
|
|
|
1,575,273
|
|
|
|
775,720
|
|
|
|
701,973
|
|
|
|
530,668
|
|
|
|
556,108
|
|
|
|
549,847
|
|
|
|
190,579
|
|
|
|
4,880,168
|
|
|
(1)
|
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.
|
Loans by Vintage Year and Payment Performance
|
|
|
Term Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost Basis by Origination Year (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans
Amortized
Cost Basis
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
961,973
|
|
|
$
|
520,330
|
|
|
$
|
496,936
|
|
|
$
|
346,029
|
|
|
$
|
437,231
|
|
|
$
|
471,067
|
|
|
$
|
31,283
|
|
|
$
|
3,264,849
|
|
|
Nonperforming
|
|
|
2,639
|
|
|
|
392
|
|
|
|
154
|
|
|
|
2,386
|
|
|
|
14,814
|
|
|
|
9,572
|
|
|
|
130
|
|
|
|
30,087
|
|
|
Total commercial property
|
|
|
964,612
|
|
|
|
520,722
|
|
|
|
497,090
|
|
|
|
348,415
|
|
|
|
452,045
|
|
|
|
480,639
|
|
|
|
31,413
|
|
|
|
3,294,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
33,415
|
|
|
$
|
613
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,028
|
|
|
Nonperforming
|
|
|
12,808
|
|
|
|
—
|
|
|
|
12,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,854
|
|
|
Total construction
|
|
|
46,223
|
|
|
|
613
|
|
|
|
12,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential/consumer loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
27,997
|
|
|
$
|
962
|
|
|
$
|
38,052
|
|
|
$
|
129,669
|
|
|
$
|
83,987
|
|
|
$
|
55,461
|
|
|
$
|
7,353
|
|
|
|
343,481
|
|
|
Nonperforming
|
|
|
—
|
|
|
|
—
|
|
|
|
620
|
|
|
|
1,429
|
|
|
|
301
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,350
|
|
|
Total residential property
|
|
|
27,997
|
|
|
|
962
|
|
|
|
38,672
|
|
|
|
131,098
|
|
|
|
84,288
|
|
|
|
55,461
|
|
|
|
7,353
|
|
|
|
345,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
1,023,385
|
|
|
$
|
521,905
|
|
|
$
|
534,988
|
|
|
$
|
475,698
|
|
|
$
|
521,218
|
|
|
$
|
526,528
|
|
|
$
|
38,636
|
|
|
|
3,642,358
|
|
|
Nonperforming
|
|
|
15,447
|
|
|
|
392
|
|
|
|
12,820
|
|
|
|
3,815
|
|
|
|
15,115
|
|
|
|
9,572
|
|
|
|
130
|
|
|
|
57,291
|
|
|
Total real estate loans
|
|
|
1,038,832
|
|
|
|
522,297
|
|
|
|
547,808
|
|
|
|
479,513
|
|
|
|
536,333
|
|
|
|
536,100
|
|
|
|
38,766
|
|
|
|
3,699,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
413,725
|
|
|
$
|
77,672
|
|
|
$
|
59,436
|
|
|
$
|
19,002
|
|
|
$
|
8,875
|
|
|
$
|
12,228
|
|
|
$
|
151,813
|
|
|
|
742,751
|
|
|
Nonperforming
|
|
|
8,552
|
|
|
|
4,781
|
|
|
|
184
|
|
|
|
872
|
|
|
|
—
|
|
|
|
115
|
|
|
|
—
|
|
|
|
14,504
|
|
|
Total commercial and industrial loans
|
|
|
422,277
|
|
|
|
82,453
|
|
|
|
59,620
|
|
|
|
19,874
|
|
|
|
8,875
|
|
|
|
12,343
|
|
|
|
151,813
|
|
|
|
757,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
113,712
|
|
|
|
165,242
|
|
|
|
91,408
|
|
|
|
30,405
|
|
|
|
10,096
|
|
|
|
1,167
|
|
|
|
—
|
|
|
|
412,030
|
|
|
Nonperforming
|
|
|
452
|
|
|
|
5,728
|
|
|
|
3,137
|
|
|
|
876
|
|
|
|
804
|
|
|
|
237
|
|
|
|
—
|
|
|
|
11,234
|
|
|
Total leases receivable
|
|
|
114,164
|
|
|
|
170,970
|
|
|
|
94,545
|
|
|
|
31,281
|
|
|
|
10,900
|
|
|
|
1,404
|
|
|
|
—
|
|
|
|
423,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
1,550,822
|
|
|
$
|
764,819
|
|
|
$
|
685,832
|
|
|
$
|
525,105
|
|
|
$
|
540,189
|
|
|
$
|
539,923
|
|
|
$
|
190,449
|
|
|
|
4,797,139
|
|
|
Nonperforming
|
|
|
24,451
|
|
|
|
10,901
|
|
|
|
16,141
|
|
|
|
5,563
|
|
|
|
15,919
|
|
|
|
9,924
|
|
|
|
130
|
|
|
|
83,029
|
|
|
Total loans receivable
|
|
$
|
1,575,273
|
|
|
$
|
775,720
|
|
|
$
|
701,973
|
|
|
$
|
530,668
|
|
|
$
|
556,108
|
|
|
$
|
549,847
|
|
|
$
|
190,579
|
|
|
$
|
4,880,168
|
|
|
(1)
|
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision
|
Individually Evaluated Loans
Prior to the adoption of ASU 2016-13, loans were individually evaluated 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 if the loan was collateral dependent, less estimated costs to sell. If the estimated value of the individually evaluated loan was less than the recorded investment in the loan, the Company charged-off the deficiency against the allowance for loan losses or we established a specific allowance in the allowance for loan losses. Additionally, we excluded from the quarterly migration analysis individually evaluated loans when determining the amount of the allowance for loan losses required for the period.
Under ASU 2016-13, the Company reviews all loans on an individual basis when they do not share similar risk characteristics with loan pools.
The following tables provide information on individually evaluated loans receivable as of December 31, 2020 and December 31, 2019, 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
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
|
|
|
(in thousands)
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
6,331
|
|
|
$
|
6,423
|
|
|
$
|
6,330
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
6,728
|
|
|
$
|
—
|
|
|
Hospitality
|
|
|
20,612
|
|
|
|
20,627
|
|
|
|
20,612
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21,120
|
|
|
|
—
|
|
|
Other
|
|
|
10,430
|
|
|
|
11,736
|
|
|
|
9,522
|
|
|
|
908
|
|
|
|
20
|
|
|
|
11,202
|
|
|
|
—
|
|
|
Total commercial property loans
|
|
|
37,373
|
|
|
|
38,786
|
|
|
|
36,464
|
|
|
|
909
|
|
|
|
20
|
|
|
|
39,050
|
|
|
|
—
|
|
|
Construction
|
|
|
24,854
|
|
|
|
26,494
|
|
|
|
24,854
|
|
|
|
—
|
|
|
|
—
|
|
|
|
27,803
|
|
|
|
—
|
|
|
Residential/consumer loans
|
|
|
2,933
|
|
|
|
3,253
|
|
|
|
2,867
|
|
|
|
66
|
|
|
|
1
|
|
|
|
2,997
|
|
|
|
—
|
|
|
Total real estate loans
|
|
|
65,160
|
|
|
|
68,533
|
|
|
|
64,185
|
|
|
|
975
|
|
|
|
21
|
|
|
|
69,850
|
|
|
|
—
|
|
|
Commercial and industrial loans
|
|
|
14,568
|
|
|
|
14,688
|
|
|
|
58
|
|
|
|
14,510
|
|
|
|
7,976
|
|
|
|
14,751
|
|
|
|
—
|
|
|
Leases receivable
|
|
|
11,233
|
|
|
|
11,237
|
|
|
|
2,318
|
|
|
|
8,915
|
|
|
|
6,056
|
|
|
|
13,147
|
|
|
|
758
|
|
|
Total
|
|
$
|
90,961
|
|
|
$
|
94,458
|
|
|
$
|
66,561
|
|
|
$
|
24,400
|
|
|
$
|
14,053
|
|
|
$
|
97,748
|
|
|
$
|
758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
434
|
|
|
$
|
459
|
|
|
$
|
111
|
|
|
$
|
323
|
|
|
$
|
19
|
|
|
$
|
894
|
|
|
$
|
13
|
|
|
Hospitality
|
|
|
244
|
|
|
|
400
|
|
|
|
22
|
|
|
|
223
|
|
|
|
24
|
|
|
|
1,683
|
|
|
|
—
|
|
|
Other
|
|
|
14,864
|
|
|
|
15,151
|
|
|
|
14,696
|
|
|
|
167
|
|
|
|
12
|
|
|
|
10,619
|
|
|
|
168
|
|
|
Total commercial property loans
|
|
|
15,542
|
|
|
|
16,010
|
|
|
|
14,829
|
|
|
|
713
|
|
|
|
55
|
|
|
|
13,196
|
|
|
|
181
|
|
|
Construction
|
|
|
27,201
|
|
|
|
28,000
|
|
|
|
—
|
|
|
|
27,201
|
|
|
|
13,973
|
|
|
|
18,421
|
|
|
|
249
|
|
|
Residential/consumer loans
|
|
|
2,421
|
|
|
|
2,751
|
|
|
|
2,309
|
|
|
|
112
|
|
|
|
1
|
|
|
|
2,845
|
|
|
|
66
|
|
|
Total real estate loans
|
|
|
45,164
|
|
|
|
46,761
|
|
|
|
17,138
|
|
|
|
28,026
|
|
|
|
14,029
|
|
|
|
34,462
|
|
|
|
495
|
|
|
Commercial and industrial loans
|
|
|
13,700
|
|
|
|
14,090
|
|
|
|
143
|
|
|
|
13,557
|
|
|
|
8,885
|
|
|
|
19,361
|
|
|
|
512
|
|
|
Leases receivable
|
|
|
5,902
|
|
|
|
5,909
|
|
|
|
1,112
|
|
|
|
4,790
|
|
|
|
2,863
|
|
|
|
4,854
|
|
|
|
44
|
|
|
Total
|
|
$
|
64,766
|
|
|
$
|
66,760
|
|
|
$
|
18,393
|
|
|
$
|
46,373
|
|
|
$
|
25,778
|
|
|
$
|
58,677
|
|
|
$
|
1,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
2,166
|
|
|
$
|
2,207
|
|
|
$
|
1,894
|
|
|
$
|
272
|
|
|
$
|
—
|
|
|
$
|
2,001
|
|
|
$
|
183
|
|
|
Hospitality
|
|
|
4,282
|
|
|
|
5,773
|
|
|
|
4,032
|
|
|
|
250
|
|
|
|
—
|
|
|
|
7,285
|
|
|
|
482
|
|
|
Other
|
|
|
7,525
|
|
|
|
8,016
|
|
|
|
6,253
|
|
|
|
1,272
|
|
|
|
1
|
|
|
|
7,978
|
|
|
|
601
|
|
|
Total commercial property loans
|
|
|
13,973
|
|
|
|
15,996
|
|
|
|
12,179
|
|
|
|
1,794
|
|
|
|
1
|
|
|
|
17,264
|
|
|
|
1,266
|
|
|
Construction
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Residential/consumer loans
|
|
|
1,627
|
|
|
|
2,002
|
|
|
|
1,534
|
|
|
|
93
|
|
|
|
—
|
|
|
|
2,952
|
|
|
|
151
|
|
|
Total real estate loans
|
|
|
15,600
|
|
|
|
17,998
|
|
|
|
13,713
|
|
|
|
1,887
|
|
|
|
1
|
|
|
|
20,216
|
|
|
|
1,417
|
|
|
Commercial and industrial loans
|
|
|
4,396
|
|
|
|
4,601
|
|
|
|
1,644
|
|
|
|
2,752
|
|
|
|
428
|
|
|
|
3,568
|
|
|
|
211
|
|
|
Leases receivable
|
|
|
5,129
|
|
|
|
5,162
|
|
|
|
1,256
|
|
|
|
3,873
|
|
|
|
1,383
|
|
|
|
5,229
|
|
|
|
46
|
|
|
Total
|
|
$
|
25,125
|
|
|
$
|
27,761
|
|
|
$
|
16,613
|
|
|
$
|
8,512
|
|
|
$
|
1,812
|
|
|
$
|
29,013
|
|
|
$
|
1,674
|
|
The following is a summary of interest foregone on individually evaluated loans for the periods indicated:
|
|
|
Year Ended December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
(in thousands)
|
|
|
Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms
|
|
$
|
5,438
|
|
|
$
|
3,439
|
|
|
$
|
2,808
|
|
|
Less: Interest income recognized on individually evaluated loans
|
|
|
(758
|
)
|
|
|
(1,279
|
)
|
|
|
(1,674
|
)
|
|
Interest foregone on individually evaluated loans
|
|
$
|
4,680
|
|
|
$
|
2,160
|
|
|
$
|
1,134
|
|
There were no commitments to lend additional funds to borrowers whose loans or leases are included above.
Nonaccrual Loans and Nonperforming Assets
The following tables represent the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of December 31, 2020 and 2019.
|
|
|
December 31, 2020
|
|
|
|
|
Nonaccrual Loans
With
No Allowance for
Credit Losses
|
|
|
Nonaccrual Loans
With
Allowance for
Credit Losses
|
|
|
Loans
Past Due
90 Days Still
Accruing
|
|
|
Total
Nonperforming
Loans
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
6,331
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,331
|
|
|
Hospitality
|
|
|
20,612
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,612
|
|
|
Other
|
|
|
2,236
|
|
|
|
909
|
|
|
|
—
|
|
|
|
3,145
|
|
|
Commercial property loans
|
|
|
29,179
|
|
|
|
909
|
|
|
|
—
|
|
|
|
30,088
|
|
|
Construction loans
|
|
|
24,854
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24,854
|
|
|
Residential/consumer loans
|
|
|
2,350
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,350
|
|
|
Total real estate loans
|
|
|
56,383
|
|
|
|
909
|
|
|
|
—
|
|
|
|
57,292
|
|
|
Commercial and industrial loans
|
|
|
58
|
|
|
|
14,449
|
|
|
|
—
|
|
|
|
14,507
|
|
|
Leases receivable
|
|
|
2,318
|
|
|
|
8,915
|
|
|
|
—
|
|
|
|
11,233
|
|
|
Total
|
|
$
|
58,759
|
|
|
$
|
24,273
|
|
|
$
|
—
|
|
|
$
|
83,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
Nonaccrual Loans
With
No Allowance for
Credit Losses
|
|
|
Nonaccrual Loans
With
Allowance for
Credit Losses
|
|
|
Loans
Past Due
90 Days Still
Accruing
|
|
|
Total
Nonperforming
Loans
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
111
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
277
|
|
|
Hospitality
|
|
|
3
|
|
|
|
222
|
|
|
|
—
|
|
|
|
225
|
|
|
Other
|
|
|
14,697
|
|
|
|
167
|
|
|
|
—
|
|
|
|
14,864
|
|
|
Commercial property loans
|
|
|
14,811
|
|
|
|
555
|
|
|
|
—
|
|
|
|
15,366
|
|
|
Construction loans
|
|
|
—
|
|
|
|
27,201
|
|
|
|
—
|
|
|
|
27,201
|
|
|
Residential/consumer loans
|
|
|
1,778
|
|
|
|
35
|
|
|
|
—
|
|
|
|
1,813
|
|
|
Total real estate loans
|
|
|
16,589
|
|
|
|
27,791
|
|
|
|
—
|
|
|
|
44,380
|
|
|
Commercial and industrial loans
|
|
|
143
|
|
|
|
13,336
|
|
|
|
—
|
|
|
|
13,479
|
|
|
Leases receivable
|
|
|
1,112
|
|
|
|
4,790
|
|
|
|
—
|
|
|
|
5,902
|
|
|
Total
|
|
$
|
17,844
|
|
|
$
|
45,917
|
|
|
$
|
—
|
|
|
$
|
63,761
|
|
The following is an aging analysis of 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)
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
824,606
|
|
|
$
|
824,606
|
|
|
Hospitality
|
|
|
—
|
|
|
|
—
|
|
|
|
11,076
|
|
|
|
11,076
|
|
|
|
848,877
|
|
|
|
859,953
|
|
|
Other
|
|
|
—
|
|
|
|
—
|
|
|
|
731
|
|
|
|
731
|
|
|
|
1,609,646
|
|
|
|
1,610,377
|
|
|
Total commercial property loans
|
|
|
—
|
|
|
|
—
|
|
|
|
11,807
|
|
|
|
11,807
|
|
|
|
3,283,129
|
|
|
|
3,294,936
|
|
|
Construction
|
|
|
—
|
|
|
|
12,807
|
|
|
|
—
|
|
|
|
12,807
|
|
|
|
46,075
|
|
|
|
58,882
|
|
|
Residential/consumer loans
|
|
|
4,693
|
|
|
|
461
|
|
|
|
564
|
|
|
|
5,718
|
|
|
|
340,113
|
|
|
|
345,831
|
|
|
Total real estate loans
|
|
|
4,693
|
|
|
|
13,268
|
|
|
|
12,371
|
|
|
|
30,332
|
|
|
|
3,669,317
|
|
|
|
3,699,649
|
|
|
Commercial and industrial loans
|
|
|
282
|
|
|
|
27
|
|
|
|
12,487
|
|
|
|
12,796
|
|
|
|
744,459
|
|
|
|
757,255
|
|
|
Leases receivable
|
|
|
4,051
|
|
|
|
1,786
|
|
|
|
4,675
|
|
|
|
10,512
|
|
|
|
412,752
|
|
|
|
423,264
|
|
|
Total loans receivable
|
|
$
|
9,026
|
|
|
$
|
15,081
|
|
|
$
|
29,533
|
|
|
$
|
53,640
|
|
|
$
|
4,826,528
|
|
|
$
|
4,880,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
6
|
|
|
$
|
132
|
|
|
$
|
111
|
|
|
$
|
249
|
|
|
$
|
869,053
|
|
|
$
|
869,302
|
|
|
Hospitality
|
|
|
907
|
|
|
|
—
|
|
|
|
—
|
|
|
|
907
|
|
|
|
921,381
|
|
|
|
922,288
|
|
|
Other
|
|
|
51
|
|
|
|
—
|
|
|
|
38
|
|
|
|
89
|
|
|
|
1,358,344
|
|
|
|
1,358,432
|
|
|
Total commercial property loans
|
|
|
964
|
|
|
|
132
|
|
|
|
149
|
|
|
|
1,245
|
|
|
|
3,148,778
|
|
|
|
3,150,022
|
|
|
Construction
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
76,455
|
|
|
|
76,455
|
|
|
Residential/consumer loans
|
|
|
540
|
|
|
|
1,657
|
|
|
|
309
|
|
|
|
2,507
|
|
|
|
413,191
|
|
|
|
415,697
|
|
|
Total real estate loans
|
|
|
1,504
|
|
|
|
1,789
|
|
|
|
458
|
|
|
|
3,752
|
|
|
|
3,638,424
|
|
|
|
3,642,175
|
|
|
Commercial and industrial loans
|
|
|
635
|
|
|
|
133
|
|
|
|
143
|
|
|
|
911
|
|
|
|
483,183
|
|
|
|
484,093
|
|
|
Leases receivable
|
|
|
5,358
|
|
|
|
2,138
|
|
|
|
3,493
|
|
|
|
10,990
|
|
|
|
472,889
|
|
|
|
483,879
|
|
|
Total loans receivable
|
|
$
|
7,497
|
|
|
$
|
4,060
|
|
|
$
|
4,094
|
|
|
$
|
15,652
|
|
|
$
|
4,594,496
|
|
|
$
|
4,610,147
|
|
There were no loans that were 90 days or more past due and accruing interest as of December 31, 2020 and 2019. In addition, $53.4 million and $60.9 million of loans past due less than 90 days were classified as nonaccrual at December 31, 2020 and 2019, respectively.
At December 31, 2020, all $155.6 million of currently modified loans under the CARES Act were classified as current. For loans previously modified under the CARES Act, $4.9 million were 30-59 days past due, $1.7 million were 60-89 days past due, and $13.9 million were 90 days or more past due.
The following table details nonaccrual loans, disaggregated by loan class, as of the dates indicated:
|
|
|
As of December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
6,330
|
|
|
$
|
277
|
|
|
Hospitality
|
|
|
20,612
|
|
|
|
225
|
|
|
Other
|
|
|
3,145
|
|
|
|
14,864
|
|
|
Total commercial property loans
|
|
|
30,087
|
|
|
|
15,366
|
|
|
Construction
|
|
|
24,854
|
|
|
|
27,201
|
|
|
Residential/consumer loans
|
|
|
2,350
|
|
|
|
1,813
|
|
|
Total real estate loans
|
|
|
57,291
|
|
|
|
44,380
|
|
|
Commercial and industrial loans
|
|
|
14,507
|
|
|
|
13,479
|
|
|
Leases receivable
|
|
|
11,234
|
|
|
|
5,902
|
|
|
Total nonaccrual loans
|
|
$
|
83,032
|
|
|
$
|
63,761
|
|
The following table details nonperforming assets as of the dates indicated:
|
|
|
As of December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
(in thousands)
|
|
|
Nonaccrual loans
|
|
$
|
83,032
|
|
|
$
|
63,761
|
|
|
Loans receivable 90 days or more past due and still accruing
|
|
|
—
|
|
|
|
—
|
|
|
Total nonperforming loans receivable
|
|
|
83,032
|
|
|
|
63,761
|
|
|
Other real estate owned ("OREO")
|
|
|
2,360
|
|
|
|
63
|
|
|
Total nonperforming assets
|
|
$
|
85,392
|
|
|
$
|
63,824
|
|
OREO consisted of four properties with a combined carrying value of $2.4 million as of December 31, 2020, and two properties with a combined carrying value of $63,000 as of December 31, 2019. OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of December 31, 2020 and 2019.
Troubled Debt Restructuring
The following table details the recorded investment in TDRs, disaggregated by concession type and by loan type, as of December 31, 2020 and 2019:
|
|
|
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)
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans
|
|
$
|
1,095
|
|
|
$
|
3,334
|
|
|
$
|
12,492
|
|
|
$
|
—
|
|
|
$
|
16,921
|
|
|
$
|
513
|
|
|
$
|
—
|
|
|
$
|
67
|
|
|
$
|
7,290
|
|
|
$
|
7,870
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
144
|
|
|
|
—
|
|
|
|
—
|
|
|
|
144
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4
|
|
|
|
56
|
|
|
|
60
|
|
|
Total
|
|
$
|
1,095
|
|
|
$
|
3,478
|
|
|
$
|
12,492
|
|
|
$
|
—
|
|
|
$
|
17,065
|
|
|
$
|
513
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
7,346
|
|
|
$
|
7,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans
|
|
$
|
689
|
|
|
$
|
132
|
|
|
$
|
27,740
|
|
|
$
|
13,926
|
|
|
$
|
42,487
|
|
|
$
|
531
|
|
|
$
|
—
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
608
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
153
|
|
|
|
12,527
|
|
|
|
312
|
|
|
|
12,991
|
|
|
|
—
|
|
|
|
36
|
|
|
|
71
|
|
|
|
114
|
|
|
|
222
|
|
|
Total
|
|
$
|
689
|
|
|
$
|
285
|
|
|
$
|
40,266
|
|
|
$
|
14,238
|
|
|
$
|
55,478
|
|
|
$
|
531
|
|
|
$
|
36
|
|
|
$
|
148
|
|
|
$
|
114
|
|
|
$
|
830
|
|
All TDRs are individually evaluated for specific impairment using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At December 31, 2020 and 2019, TDRs were subjected to specific impairment analysis. We determined an impairment allowance of $16,000 and $22.7 million as of December 31, 2020 and 2019, respectively, related to these loans and such allowances were included in the allowance for credit losses.
The following table presents the number of loans by class modified as troubled debt restructurings that occurred during the years ending December 31, 2020, 2019 and 2018 with their pre- and post-modification recorded amounts.
|
|
|
December 31, 2020
|
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
|
|
|
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
|
|
|
Number
of Loans
|
|
|
Pre-
Modification
Outstanding
Recorded
Investment
|
|
|
Post-
Modification
Outstanding
Recorded
Investment
|
|
|
|
|
(in thousands except for number of loans)
|
|
|
Real estate loans
|
|
|
5
|
|
|
$
|
4,479
|
|
|
$
|
3,676
|
|
|
|
6
|
|
|
$
|
41,292
|
|
|
$
|
42,329
|
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
12,779
|
|
|
|
12,562
|
|
|
|
2
|
|
|
|
684
|
|
|
|
664
|
|
|
Total
|
|
|
5
|
|
|
$
|
4,479
|
|
|
$
|
3,676
|
|
|
|
8
|
|
|
$
|
54,071
|
|
|
$
|
54,892
|
|
|
|
2
|
|
|
$
|
684
|
|
|
$
|
664
|
|
A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. One loan for $398,000 defaulted during the twelve months ended December 31, 2020 following modification. During the year ended December 31, 2019, one loan for $132,000 defaulted within the twelve-month period following modification. The allowance for credit losses resulting from these defaulted loans were $3,000 and $0 as of December 31, 2020 and 2019.
|