| Loans |
Note 3 — Loans
Loans Receivable
Loans consisted of the following as of the dates indicated:
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
808,157
|
|
|
$
|
869,302
|
|
|
Hospitality
|
|
|
882,812
|
|
|
|
922,288
|
|
|
Other (1)
|
|
|
1,504,916
|
|
|
|
1,358,432
|
|
|
Total commercial property loans
|
|
|
3,195,885
|
|
|
|
3,150,022
|
|
|
Construction
|
|
|
70,357
|
|
|
|
76,455
|
|
|
Residential property
|
|
|
354,064
|
|
|
|
402,028
|
|
|
Total real estate loans
|
|
|
3,620,306
|
|
|
|
3,628,505
|
|
|
Commercial and industrial loans
|
|
|
730,399
|
|
|
|
484,093
|
|
|
Leases receivable
|
|
|
462,811
|
|
|
|
483,879
|
|
|
Consumer loans (2)
|
|
|
12,126
|
|
|
|
13,670
|
|
|
Loans receivable
|
|
|
4,825,642
|
|
|
|
4,610,147
|
|
|
Allowance for credit losses
|
|
|
(86,330
|
)
|
|
|
(61,408
|
)
|
|
Loans receivable, net
|
|
$
|
4,739,312
|
|
|
$
|
4,548,739
|
|
|
(1)
|
Includes, among other types, mixed-use, apartment, office, industrial, gas stations, faith-based facilities and warehouse; all other property types represent less than one percent of total loans receivable.
|
|
(2)
|
Consumer loans include home equity lines of credit of $7.6 million and $8.2 million as of June 30, 2020 and December 31, 2019, respectively.
|
The CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) was passed by Congress and signed into law by President Trump on March 27, 2020. Among other benefits, 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 after the COVID-19 crisis has abated; and (b) allowing financial institutions to temporarily modify loan terms by deferring loan payments, loan fees, etc. on a short-term basis without considering them Troubled Debt Restructures.
At June 30, 2020, there were $301.8 million of PPP loans included in commercial and industrial loans in the table above. In addition, at June 30, 2020, there were $1.4 billion of loans modified under Section 4013 of the CARES Act.
Accrued interest on loans was $20.3 million and $10.0 million at June 30, 2020 and December 31, 2019, respectively. At June 30, 2020 and December 31, 2019, loans of $2.4 billion and $1.4 billion, respectively, were pledged to secure advances from the FHLB.
Loans Held for Sale
The following is the activity for SBA loans held for sale for the three months ended June 30, 2020 and 2019:
|
|
|
Real Estate
|
|
|
Commercial and
Industrial
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Originations and transfers
|
|
|
12,661
|
|
|
|
5,281
|
|
|
|
17,942
|
|
|
Balance at end of period
|
|
$
|
12,661
|
|
|
$
|
5,281
|
|
|
$
|
17,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
6,500
|
|
|
$
|
640
|
|
|
$
|
7,140
|
|
|
Originations
|
|
|
6,650
|
|
|
|
7,650
|
|
|
|
14,300
|
|
|
Sales
|
|
|
(10,474
|
)
|
|
|
(4,937
|
)
|
|
|
(15,411
|
)
|
|
Balance at end of period
|
|
$
|
2,676
|
|
|
$
|
3,353
|
|
|
$
|
6,029
|
|
The following is the activity for SBA loans held for sale for the six months ended June 30, 2020 and 2019:
|
|
|
Real Estate
|
|
|
Commercial and Industrial
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
2,943
|
|
|
$
|
3,077
|
|
|
$
|
6,020
|
|
|
Originations and transfers
|
|
|
19,155
|
|
|
|
10,984
|
|
|
|
30,139
|
|
|
Sales
|
|
|
(9,432
|
)
|
|
|
(8,780
|
)
|
|
|
(18,212
|
)
|
|
Principal payoffs and amortization
|
|
|
(5
|
)
|
|
|
—
|
|
|
|
(5
|
)
|
|
Balance at end of period
|
|
$
|
12,661
|
|
|
$
|
5,281
|
|
|
$
|
17,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
5,194
|
|
|
$
|
4,196
|
|
|
$
|
9,390
|
|
|
Originations
|
|
|
15,713
|
|
|
|
11,810
|
|
|
|
27,523
|
|
|
Sales
|
|
|
(18,229
|
)
|
|
|
(12,641
|
)
|
|
|
(30,870
|
)
|
|
Principal payoffs and amortization
|
|
|
(2
|
)
|
|
|
(12
|
)
|
|
|
(14
|
)
|
|
Balance at end of period
|
|
$
|
2,676
|
|
|
$
|
3,353
|
|
|
$
|
6,029
|
|
Allowance for Credit Losses
The Company’s estimate of the allowance for credit losses at June 30, 2020 reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring.
At June 30, 2020, the Company used the discounted cash flow (DCF) method to estimate allowances for credit losses for the commercial and industrial loan portfolio and the consumer loan portfolio. For all loan pools utilizing the DCF method, the Company utilizes and forecasts the national unemployment rate as the primary loss driver. In addition, the Company determined that four-quarters represented a reasonable and supportable forecast period and reverted to a historical loss rate over twelve quarters on a straight-line basis. As of and for the quarter ended June 30, 2020, the Company leveraged the economic projections from Moody’s Analytics Economic Scenarios and Forecasts to inform its loss driver forecasts over the four-quarter forecast period. For each of these loan segments, the Company applied an annualized historical Probability of Default/Loss Given Default (PD/LGD) using all available historical periods. The reason for the change from relying on the FRED economic data to Moody’s data was because Moody’s data is updated more frequently and timely than FOMC or FRED, and thus provides a better forecast for PD/LGD models. Since reasonable and supportable forecasts of economic conditions are imbedded directly to DCF model, qualitative adjustments are reduced but considered. Qualitative adjustments were based on the Company's judgment of company, market, industry or business specific data, changes in the underlying loan composition of specific portfolios.
Management determined that, due to model limitations, the regression model that supports the DCF calculation for the SBA and commercial property, construction, and residential real estate portfolios does not take into account the volatile nature of
COVID-19 on these portfolios, as well as the government assistance programs based on the maturities. As a result, at June 30, 2020, the Company utilized the Probability of Default/Loss Given Default (PD/LGD) method for the SBA and commercial property, construction, and residential real estate portfolios. The Company previously applied the DCF method to the real estate secured portfolios in the implementation of CECL at January 1, 2020 and through March 31, 2020 and determined that the change from DCF to PD/LGD was not material. See Note 1 – Organization and Basis of Presentation for a further description of the methodologies applied at the inception of CECL and during the three months ended March 31, 2020. The Company used historical periods that included an economic downturn to derive historical losses for better alignment in the estimation of expected losses. The Company leveraged Frye-Jacobs modeled LGD rates for loan segments with no historical losses. In addition, for those loans granted a loan modification due to COVID-19, the Company used historical periods under PD/LGD as of March 31, 2020 to reflect the moratorium on TDRs under Section 4013 of the CARES Act. The PD/LGD method incorporates a forecast into loss estimates using a qualitative adjustment. Qualitative loss factors were based on the Company's judgment of company, market, industry or business specific data, changes in the underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, nonperforming and adversely rated loans, and reasonable and supportable forecasts of economic conditions.
The Company used a Weighted Average Remaining Maturity (WARM) method to estimate expected credit losses for equipment financing agreements or the equipment lease receivables portfolio. The Company applied an expected loss ratio based on internal historical losses adjusted as appropriate for qualitative factors. The Company's evaluation of market, industry or business specific data, changes in the underlying portfolio composition, trends relating to credit quality, delinquency, nonperforming and adversely rated leases, and reasonable and supportable forecasts of economic conditions inform the estimate of qualitative factors.
Management believes the allowance for credit losses is appropriate to provide for estimated losses inherent in the loans receivable portfolio. However, the allowance is an estimate that is inherently uncertain and depends on the outcome of future events. Management’s methodologies for determining such estimates consists of measuring expected credit losses of financial assets on a collective (pool) basis when similar risk characteristic(s) exist. The Bank segments the loans primarily by loan types, considering that the same type of loans share considerable similar risk characteristics, including the collateral type, loan purpose, contract term, amortization and payment structure. Our lending is concentrated generally in real estate loans, commercial loans and leases and SBA loans to small and middle market businesses primarily in California, Texas, Illinois and New York. Further, our regulators, in reviewing our loans receivable portfolio may require us to increase our allowance for credit losses.
The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended June 30, 2020 and 2019:
|
|
|
Real Estate
|
|
|
Commercial and
Industrial
|
|
|
Leases
Receivable
|
|
|
Consumer
|
|
|
Unallocated
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
38,983
|
|
|
$
|
11,588
|
|
|
$
|
15,780
|
|
|
$
|
149
|
|
|
$
|
—
|
|
|
|
66,500
|
|
|
Less loans charged off
|
|
|
91
|
|
|
|
438
|
|
|
|
1,044
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,573
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(98
|
)
|
|
|
(60
|
)
|
|
|
(114
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(272
|
)
|
|
Provision for credit losses
|
|
|
17,226
|
|
|
|
2,178
|
|
|
|
1,674
|
|
|
|
53
|
|
|
|
—
|
|
|
|
21,131
|
|
|
Ending balance
|
|
$
|
56,216
|
|
|
$
|
13,388
|
|
|
$
|
16,524
|
|
|
$
|
202
|
|
|
$
|
—
|
|
|
$
|
86,330
|
|
|
Individually evaluated for impairment
|
|
$
|
2,807
|
|
|
$
|
123
|
|
|
$
|
2,262
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
5,194
|
|
|
Collectively evaluated for impairment
|
|
$
|
53,409
|
|
|
$
|
13,265
|
|
|
$
|
14,262
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
81,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
3,620,306
|
|
|
$
|
730,399
|
|
|
$
|
462,811
|
|
|
$
|
12,126
|
|
|
$
|
—
|
|
|
$
|
4,825,642
|
|
|
Individually evaluated for impairment
|
|
$
|
48,302
|
|
|
$
|
13,771
|
|
|
$
|
8,456
|
|
|
$
|
1,280
|
|
|
$
|
—
|
|
|
$
|
71,809
|
|
|
Collectively evaluated for impairment
|
|
$
|
3,572,004
|
|
|
$
|
716,628
|
|
|
$
|
454,355
|
|
|
$
|
10,846
|
|
|
$
|
—
|
|
|
$
|
4,753,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
18,306
|
|
|
$
|
8,711
|
|
|
$
|
5,580
|
|
|
$
|
89
|
|
|
$
|
210
|
|
|
$
|
32,896
|
|
|
Less loans charged off
|
|
|
—
|
|
|
|
562
|
|
|
|
974
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,536
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(1,133
|
)
|
|
|
(89
|
)
|
|
|
(105
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,327
|
)
|
|
Provision for credit losses
|
|
|
14,565
|
|
|
|
997
|
|
|
|
1,357
|
|
|
|
(10
|
)
|
|
|
(210
|
)
|
|
|
16,699
|
|
|
Ending balance
|
|
$
|
34,004
|
|
|
$
|
9,235
|
|
|
$
|
6,068
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
49,386
|
|
|
Individually evaluated for impairment
|
|
$
|
14,724
|
|
|
$
|
3,072
|
|
|
$
|
662
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
18,459
|
|
|
Collectively evaluated for impairment
|
|
$
|
19,280
|
|
|
$
|
6,163
|
|
|
$
|
5,406
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
30,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
3,671,463
|
|
|
$
|
409,502
|
|
|
$
|
460,519
|
|
|
$
|
14,318
|
|
|
$
|
—
|
|
|
$
|
4,555,802
|
|
|
Individually evaluated for impairment
|
|
$
|
39,885
|
|
|
$
|
21,706
|
|
|
$
|
3,233
|
|
|
$
|
1,351
|
|
|
$
|
—
|
|
|
$
|
66,175
|
|
|
Collectively evaluated for impairment
|
|
$
|
3,631,578
|
|
|
$
|
387,796
|
|
|
$
|
457,286
|
|
|
$
|
12,967
|
|
|
$
|
—
|
|
|
$
|
4,489,627
|
|
The following table details the information on the allowance for credit losses by portfolio segment as of and for the six months ended June 30, 2020 and 2019:
|
|
|
Real Estate
|
|
|
Commercial and Industrial
|
|
|
Leases Receivable
|
|
|
Consumer
|
|
|
Unallocated
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
36,355
|
|
|
$
|
16,206
|
|
|
$
|
8,767
|
|
|
$
|
80
|
|
|
$
|
—
|
|
|
$
|
61,408
|
|
|
Adjustment related to adoption of ASU 2016-13
|
|
|
13,972
|
|
|
|
(2,497
|
)
|
|
|
5,902
|
|
|
|
56
|
|
|
|
—
|
|
|
|
17,433
|
|
|
Adjusted balance as of January 1, 2020
|
|
|
50,327
|
|
|
|
13,709
|
|
|
|
14,669
|
|
|
|
136
|
|
|
|
—
|
|
|
|
78,841
|
|
|
Less loans charged off
|
|
|
14,233
|
|
|
|
12,589
|
|
|
|
2,224
|
|
|
|
—
|
|
|
|
—
|
|
|
|
29,046
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(156
|
)
|
|
|
(144
|
)
|
|
|
(188
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(488
|
)
|
|
Provision for credit losses
|
|
|
19,966
|
|
|
|
12,124
|
|
|
|
3,891
|
|
|
|
66
|
|
|
|
—
|
|
|
|
36,047
|
|
|
Ending balance
|
|
$
|
56,216
|
|
|
$
|
13,388
|
|
|
$
|
16,524
|
|
|
$
|
202
|
|
|
$
|
—
|
|
|
$
|
86,330
|
|
|
Individually evaluated for impairment
|
|
$
|
2,807
|
|
|
$
|
123
|
|
|
$
|
2,262
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
5,194
|
|
|
Collectively evaluated for impairment
|
|
$
|
53,409
|
|
|
$
|
13,265
|
|
|
$
|
14,262
|
|
|
$
|
200
|
|
|
$
|
—
|
|
|
$
|
81,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
3,620,306
|
|
|
$
|
730,399
|
|
|
$
|
462,811
|
|
|
$
|
12,126
|
|
|
$
|
—
|
|
|
$
|
4,825,642
|
|
|
Individually evaluated for impairment
|
|
$
|
48,302
|
|
|
$
|
13,771
|
|
|
$
|
8,456
|
|
|
$
|
1,280
|
|
|
$
|
—
|
|
|
$
|
71,809
|
|
|
Collectively evaluated for impairment
|
|
$
|
3,572,004
|
|
|
$
|
716,628
|
|
|
$
|
454,355
|
|
|
$
|
10,846
|
|
|
$
|
—
|
|
|
$
|
4,753,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period
|
|
$
|
18,384
|
|
|
$
|
7,162
|
|
|
$
|
6,303
|
|
|
$
|
98
|
|
|
$
|
27
|
|
|
$
|
31,974
|
|
|
Less loans charged off
|
|
|
113
|
|
|
|
695
|
|
|
|
1,826
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,634
|
|
|
Recoveries on loans receivable previously charged off
|
|
|
(1,563
|
)
|
|
|
(471
|
)
|
|
|
(196
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,230
|
)
|
|
Provision for credit losses
|
|
|
14,170
|
|
|
|
2,297
|
|
|
|
1,395
|
|
|
|
(19
|
)
|
|
|
(27
|
)
|
|
|
17,816
|
|
|
Ending balance
|
|
$
|
34,004
|
|
|
$
|
9,235
|
|
|
$
|
6,068
|
|
|
$
|
79
|
|
|
$
|
—
|
|
|
$
|
49,386
|
|
|
Individually evaluated for impairment
|
|
$
|
14,724
|
|
|
$
|
3,072
|
|
|
$
|
662
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
18,459
|
|
|
Collectively evaluated for impairment
|
|
$
|
19,280
|
|
|
$
|
6,163
|
|
|
$
|
5,406
|
|
|
$
|
78
|
|
|
$
|
—
|
|
|
$
|
30,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
3,671,463
|
|
|
$
|
409,502
|
|
|
$
|
460,519
|
|
|
$
|
14,318
|
|
|
$
|
—
|
|
|
$
|
4,555,802
|
|
|
Individually evaluated for impairment
|
|
$
|
39,885
|
|
|
$
|
21,706
|
|
|
$
|
3,233
|
|
|
$
|
1,351
|
|
|
$
|
—
|
|
|
$
|
66,175
|
|
|
Collectively evaluated for impairment
|
|
$
|
3,631,578
|
|
|
$
|
387,796
|
|
|
$
|
457,286
|
|
|
$
|
12,967
|
|
|
$
|
—
|
|
|
$
|
4,489,627
|
|
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.
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|
|
|
Allowance
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
Allowance
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
Amount
|
|
|
Percentage
|
|
|
Loans
|
|
|
Percentage
|
|
|
Amount
|
|
|
Percentage
|
|
|
Loans
|
|
|
Percentage
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
7,341
|
|
|
|
8.5
|
%
|
|
$
|
808,157
|
|
|
|
16.7
|
%
|
|
$
|
4,911
|
|
|
|
8.0
|
%
|
|
$
|
869,302
|
|
|
|
18.9
|
%
|
|
Hospitality
|
|
|
11,984
|
|
|
|
13.9
|
%
|
|
|
882,812
|
|
|
|
18.3
|
%
|
|
|
6,686
|
|
|
|
10.9
|
%
|
|
|
922,288
|
|
|
|
20.0
|
%
|
|
Other
|
|
|
24,920
|
|
|
|
28.9
|
%
|
|
|
1,504,916
|
|
|
|
31.2
|
%
|
|
|
8,060
|
|
|
|
13.1
|
%
|
|
|
1,358,432
|
|
|
|
29.4
|
%
|
|
Total commercial property loans
|
|
|
44,245
|
|
|
|
51.3
|
%
|
|
|
3,195,885
|
|
|
|
66.2
|
%
|
|
|
19,657
|
|
|
|
32.0
|
%
|
|
|
3,150,022
|
|
|
|
68.3
|
%
|
|
Construction
|
|
|
9,331
|
|
|
|
10.8
|
%
|
|
|
70,357
|
|
|
|
1.5
|
%
|
|
|
15,003
|
|
|
|
24.4
|
%
|
|
|
76,455
|
|
|
|
1.7
|
%
|
|
Residential property
|
|
|
2,640
|
|
|
|
3.1
|
%
|
|
|
354,064
|
|
|
|
7.3
|
%
|
|
|
1,695
|
|
|
|
2.8
|
%
|
|
|
402,028
|
|
|
|
8.7
|
%
|
|
Total real estate loans
|
|
|
56,216
|
|
|
|
65.2
|
%
|
|
|
3,620,306
|
|
|
|
75.0
|
%
|
|
|
36,355
|
|
|
|
59.2
|
%
|
|
|
3,628,505
|
|
|
|
78.7
|
%
|
|
Commercial and industrial loans
|
|
|
13,387
|
|
|
|
15.5
|
%
|
|
|
730,399
|
|
|
|
15.1
|
%
|
|
|
16,206
|
|
|
|
26.4
|
%
|
|
|
484,093
|
|
|
|
10.5
|
%
|
|
Leases receivable
|
|
|
16,525
|
|
|
|
19.1
|
%
|
|
|
462,811
|
|
|
|
9.6
|
%
|
|
|
8,767
|
|
|
|
14.3
|
%
|
|
|
483,879
|
|
|
|
10.5
|
%
|
|
Consumer loans
|
|
|
202
|
|
|
|
0.2
|
%
|
|
|
12,126
|
|
|
|
0.3
|
%
|
|
|
80
|
|
|
|
0.1
|
%
|
|
|
13,670
|
|
|
|
0.3
|
%
|
|
Total
|
|
$
|
86,330
|
|
|
|
100.0
|
%
|
|
$
|
4,825,642
|
|
|
|
100.0
|
%
|
|
$
|
61,408
|
|
|
|
100.0
|
%
|
|
$
|
4,610,147
|
|
|
|
100.0
|
%
|
The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 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 impaired.
|
|
|
Amortized Cost
|
|
|
June 30, 2020
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
Commercial property
|
|
$
|
16,796
|
|
|
Construction
|
|
|
25,854
|
|
|
Residential property
|
|
|
2,761
|
|
|
Total real estate loans
|
|
|
45,411
|
|
|
Commercial and industrial loans
|
|
|
288
|
|
|
Consumer Loans
|
|
|
1,208
|
|
|
Total (1)
|
|
$
|
46,907
|
|
|
(1)
|
All loans are secured by real estate, except for one commercial term loan secured by $264,000 in cash.
|
Loan Quality Indicators
As part of the on-going monitoring of the quality of our loans 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 performed at least 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.
The tables below provide a comparison as of June 30, 2020 and December 31, 2019 of the pass/pass-watch, special mention and classified loans, disaggregated by loan segment:
|
|
|
Pass/Pass-
Watch
|
|
|
Special
Mention
|
|
|
Classified
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
800,437
|
|
|
$
|
1,182
|
|
|
$
|
6,538
|
|
|
$
|
808,157
|
|
|
Hospitality
|
|
|
879,131
|
|
|
|
—
|
|
|
|
3,681
|
|
|
|
882,812
|
|
|
Other
|
|
|
1,469,272
|
|
|
|
6,059
|
|
|
|
29,585
|
|
|
|
1,504,916
|
|
|
Total commercial property
|
|
|
3,148,840
|
|
|
|
7,241
|
|
|
|
39,804
|
|
|
|
3,195,885
|
|
|
Construction
|
|
|
44,503
|
|
|
|
—
|
|
|
|
25,854
|
|
|
|
70,357
|
|
|
Residential property
|
|
|
350,520
|
|
|
|
784
|
|
|
|
2,760
|
|
|
|
354,064
|
|
|
Total real estate loans
|
|
|
3,543,863
|
|
|
|
8,025
|
|
|
|
68,418
|
|
|
|
3,620,306
|
|
|
Commercial and industrial loans
|
|
|
702,443
|
|
|
|
12,423
|
|
|
|
15,533
|
|
|
|
730,399
|
|
|
Leases receivable
|
|
|
453,528
|
|
|
|
—
|
|
|
|
9,283
|
|
|
|
462,811
|
|
|
Consumer loans
|
|
|
10,752
|
|
|
|
686
|
|
|
|
688
|
|
|
|
12,126
|
|
|
Total loans receivable
|
|
$
|
4,710,586
|
|
|
$
|
21,134
|
|
|
$
|
93,922
|
|
|
$
|
4,825,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
3,105,390
|
|
|
|
11,580
|
|
|
|
33,052
|
|
|
|
3,150,022
|
|
|
Construction
|
|
|
36,956
|
|
|
|
1,613
|
|
|
|
37,886
|
|
|
|
76,455
|
|
|
Residential property
|
|
|
398,737
|
|
|
|
2,512
|
|
|
|
779
|
|
|
|
402,028
|
|
|
Total real estate loans
|
|
|
3,541,082
|
|
|
|
15,705
|
|
|
|
71,718
|
|
|
|
3,628,505
|
|
|
Commercial and industrial loans
|
|
|
458,184
|
|
|
|
10,222
|
|
|
|
15,687
|
|
|
|
484,093
|
|
|
Leases receivable
|
|
|
477,977
|
|
|
|
—
|
|
|
|
5,902
|
|
|
|
483,879
|
|
|
Consumer loans
|
|
|
12,247
|
|
|
|
705
|
|
|
|
718
|
|
|
|
13,670
|
|
|
Total loans receivable
|
|
$
|
4,489,491
|
|
|
$
|
26,632
|
|
|
$
|
94,025
|
|
|
$
|
4,610,147
|
|
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
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
$
|
438,577
|
|
|
$
|
539,598
|
|
|
$
|
555,748
|
|
|
$
|
429,415
|
|
|
$
|
483,511
|
|
|
$
|
671,096
|
|
|
$
|
30,895
|
|
|
$
|
3,148,840
|
|
|
Special Mention
|
|
|
—
|
|
|
|
2,757
|
|
|
|
455
|
|
|
|
2,351
|
|
|
|
1,271
|
|
|
|
407
|
|
|
|
—
|
|
|
|
7,241
|
|
|
Classified
|
|
|
15,592
|
|
|
|
1,113
|
|
|
|
2,965
|
|
|
|
709
|
|
|
|
3,992
|
|
|
|
15,433
|
|
|
|
—
|
|
|
|
39,804
|
|
|
Total commercial property
|
|
|
454,169
|
|
|
|
543,468
|
|
|
|
559,168
|
|
|
|
432,475
|
|
|
|
488,774
|
|
|
|
686,936
|
|
|
|
30,895
|
|
|
|
3,195,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
18,025
|
|
|
|
5,633
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,845
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44,503
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Classified
|
|
|
—
|
|
|
|
12,808
|
|
|
|
13,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25,854
|
|
|
Total construction
|
|
|
18,025
|
|
|
|
18,441
|
|
|
|
13,046
|
|
|
|
—
|
|
|
|
20,845
|
|
|
|
—
|
|
|
|
—
|
|
|
|
70,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
274
|
|
|
|
954
|
|
|
|
40,468
|
|
|
|
149,532
|
|
|
|
100,367
|
|
|
|
58,925
|
|
|
|
—
|
|
|
|
350,520
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
784
|
|
|
|
—
|
|
|
|
784
|
|
|
Classified
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,890
|
|
|
|
754
|
|
|
|
116
|
|
|
|
—
|
|
|
|
2,760
|
|
|
Total residential property
|
|
|
274
|
|
|
|
954
|
|
|
|
40,468
|
|
|
|
151,422
|
|
|
|
101,121
|
|
|
|
59,825
|
|
|
|
—
|
|
|
|
354,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
456,876
|
|
|
|
546,185
|
|
|
|
596,216
|
|
|
|
578,947
|
|
|
|
604,723
|
|
|
|
730,021
|
|
|
|
30,895
|
|
|
|
3,543,863
|
|
|
Special Mention
|
|
|
—
|
|
|
|
2,757
|
|
|
|
455
|
|
|
|
2,351
|
|
|
|
1,271
|
|
|
|
1,191
|
|
|
|
—
|
|
|
|
8,025
|
|
|
Classified
|
|
|
15,592
|
|
|
|
13,921
|
|
|
|
16,011
|
|
|
|
2,599
|
|
|
|
4,746
|
|
|
|
15,549
|
|
|
|
—
|
|
|
|
68,418
|
|
|
Total real estate loans
|
|
|
472,468
|
|
|
|
562,863
|
|
|
|
612,682
|
|
|
|
583,897
|
|
|
|
610,740
|
|
|
|
746,761
|
|
|
|
30,895
|
|
|
|
3,620,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
369,101
|
|
|
|
124,141
|
|
|
|
60,742
|
|
|
|
21,613
|
|
|
|
5,586
|
|
|
|
14,952
|
|
|
|
106,308
|
|
|
|
702,443
|
|
|
Special Mention
|
|
|
4,281
|
|
|
|
800
|
|
|
|
503
|
|
|
|
78
|
|
|
|
1,733
|
|
|
|
1,585
|
|
|
|
3,443
|
|
|
|
12,423
|
|
|
Classified
|
|
|
8,969
|
|
|
|
3,894
|
|
|
|
568
|
|
|
|
148
|
|
|
|
140
|
|
|
|
1,614
|
|
|
|
200
|
|
|
|
15,533
|
|
|
Total commercial and industrial loans
|
|
|
382,351
|
|
|
|
128,835
|
|
|
|
61,813
|
|
|
|
21,839
|
|
|
|
7,459
|
|
|
|
18,151
|
|
|
|
109,951
|
|
|
|
730,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
67,994
|
|
|
|
203,034
|
|
|
|
119,213
|
|
|
|
44,150
|
|
|
|
18,292
|
|
|
|
845
|
|
|
|
—
|
|
|
|
453,528
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Classified
|
|
|
11
|
|
|
|
3,554
|
|
|
|
2,807
|
|
|
|
1,191
|
|
|
|
1,299
|
|
|
|
421
|
|
|
|
—
|
|
|
|
9,283
|
|
|
Total leases receivable
|
|
|
68,005
|
|
|
|
206,588
|
|
|
|
122,020
|
|
|
|
45,341
|
|
|
|
19,591
|
|
|
|
1,266
|
|
|
|
—
|
|
|
|
462,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
121
|
|
|
|
25
|
|
|
|
15
|
|
|
|
86
|
|
|
|
7
|
|
|
|
2,610
|
|
|
|
7,888
|
|
|
|
10,752
|
|
|
Special Mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
686
|
|
|
|
—
|
|
|
|
686
|
|
|
Classified
|
|
|
—
|
|
|
|
—
|
|
|
|
661
|
|
|
|
27
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
688
|
|
|
Total commercial term loans
|
|
|
121
|
|
|
|
25
|
|
|
|
676
|
|
|
|
113
|
|
|
|
7
|
|
|
|
3,296
|
|
|
|
7,888
|
|
|
|
12,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Risk Rating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass / Pass Watch
|
|
|
894,092
|
|
|
|
873,385
|
|
|
|
776,186
|
|
|
|
644,796
|
|
|
|
628,608
|
|
|
|
748,428
|
|
|
|
145,091
|
|
|
|
4,710,586
|
|
|
Special Mention
|
|
|
4,281
|
|
|
|
3,557
|
|
|
|
958
|
|
|
|
2,429
|
|
|
|
3,004
|
|
|
|
3,462
|
|
|
|
3,443
|
|
|
|
21,134
|
|
|
Classified
|
|
|
24,572
|
|
|
|
21,369
|
|
|
|
20,047
|
|
|
|
3,965
|
|
|
|
6,185
|
|
|
|
17,584
|
|
|
|
200
|
|
|
|
93,922
|
|
|
Total loans receivable
|
|
$
|
922,945
|
|
|
$
|
898,311
|
|
|
$
|
797,191
|
|
|
$
|
651,190
|
|
|
$
|
637,797
|
|
|
$
|
769,474
|
|
|
$
|
148,734
|
|
|
$
|
4,825,642
|
|
|
(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
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
$
|
453,569
|
|
|
$
|
543,468
|
|
|
$
|
559,015
|
|
|
$
|
432,475
|
|
|
$
|
488,673
|
|
|
$
|
681,933
|
|
|
$
|
30,895
|
|
|
$
|
3,190,028
|
|
|
Nonperforming
|
|
|
600
|
|
|
|
—
|
|
|
|
153
|
|
|
|
—
|
|
|
|
101
|
|
|
|
5,003
|
|
|
|
—
|
|
|
|
5,857
|
|
|
Total commercial property
|
|
|
454,169
|
|
|
|
543,468
|
|
|
|
559,168
|
|
|
|
432,475
|
|
|
|
488,774
|
|
|
|
686,936
|
|
|
|
30,895
|
|
|
|
3,195,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
18,025
|
|
|
|
5,633
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20,845
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
44,503
|
|
|
Nonperforming
|
|
|
—
|
|
|
|
12,808
|
|
|
|
13,046
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25,854
|
|
|
Total construction
|
|
|
18,025
|
|
|
|
18,441
|
|
|
|
13,046
|
|
|
|
—
|
|
|
|
20,845
|
|
|
|
—
|
|
|
|
—
|
|
|
|
70,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
274
|
|
|
|
954
|
|
|
|
40,468
|
|
|
|
149,532
|
|
|
|
100,366
|
|
|
|
59,677
|
|
|
|
—
|
|
|
|
351,271
|
|
|
Nonperforming
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,890
|
|
|
|
755
|
|
|
|
148
|
|
|
|
—
|
|
|
|
2,793
|
|
|
Total residential property
|
|
|
274
|
|
|
|
954
|
|
|
|
40,468
|
|
|
|
151,422
|
|
|
|
101,121
|
|
|
|
59,825
|
|
|
|
—
|
|
|
|
354,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
471,868
|
|
|
|
550,055
|
|
|
|
599,483
|
|
|
|
582,007
|
|
|
|
609,884
|
|
|
|
741,610
|
|
|
|
30,895
|
|
|
|
3,585,802
|
|
|
Nonperforming
|
|
|
600
|
|
|
|
12,808
|
|
|
|
13,199
|
|
|
|
1,890
|
|
|
|
856
|
|
|
|
5,151
|
|
|
|
—
|
|
|
|
34,504
|
|
|
Total real estate loans
|
|
|
472,468
|
|
|
|
562,863
|
|
|
|
612,682
|
|
|
|
583,897
|
|
|
|
610,740
|
|
|
|
746,761
|
|
|
|
30,895
|
|
|
|
3,620,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
373,382
|
|
|
|
124,940
|
|
|
|
61,377
|
|
|
|
21,691
|
|
|
|
7,459
|
|
|
|
18,015
|
|
|
|
109,751
|
|
|
|
716,615
|
|
|
Nonperforming
|
|
|
8,969
|
|
|
|
3,895
|
|
|
|
436
|
|
|
|
148
|
|
|
|
—
|
|
|
|
136
|
|
|
|
200
|
|
|
|
13,784
|
|
|
Total commercial and industrial loans
|
|
|
382,351
|
|
|
|
128,835
|
|
|
|
61,813
|
|
|
|
21,839
|
|
|
|
7,459
|
|
|
|
18,151
|
|
|
|
109,951
|
|
|
|
730,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
67,994
|
|
|
|
203,034
|
|
|
|
119,213
|
|
|
|
44,150
|
|
|
|
18,292
|
|
|
|
846
|
|
|
|
—
|
|
|
|
453,529
|
|
|
Nonperforming
|
|
|
11
|
|
|
|
3,554
|
|
|
|
2,807
|
|
|
|
1,191
|
|
|
|
1,299
|
|
|
|
420
|
|
|
|
—
|
|
|
|
9,282
|
|
|
Total leases receivable
|
|
|
68,005
|
|
|
|
206,588
|
|
|
|
122,020
|
|
|
|
45,341
|
|
|
|
19,591
|
|
|
|
1,266
|
|
|
|
—
|
|
|
|
462,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
121
|
|
|
|
25
|
|
|
|
15
|
|
|
|
86
|
|
|
|
7
|
|
|
|
3,296
|
|
|
|
7,888
|
|
|
|
11,438
|
|
|
Nonperforming
|
|
|
—
|
|
|
|
—
|
|
|
|
661
|
|
|
|
27
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
688
|
|
|
Total commercial term loans
|
|
|
121
|
|
|
|
25
|
|
|
|
676
|
|
|
|
113
|
|
|
|
7
|
|
|
|
3,296
|
|
|
|
7,888
|
|
|
|
12,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment performance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing
|
|
|
913,365
|
|
|
|
878,054
|
|
|
|
780,088
|
|
|
|
647,934
|
|
|
|
635,642
|
|
|
|
763,767
|
|
|
|
148,534
|
|
|
|
4,767,384
|
|
|
Nonperforming
|
|
|
9,580
|
|
|
|
20,257
|
|
|
|
17,103
|
|
|
|
3,256
|
|
|
|
2,155
|
|
|
|
5,707
|
|
|
|
200
|
|
|
|
58,258
|
|
|
Total loans receivable
|
|
$
|
922,945
|
|
|
$
|
898,311
|
|
|
$
|
797,191
|
|
|
$
|
651,190
|
|
|
$
|
637,797
|
|
|
$
|
769,474
|
|
|
$
|
148,734
|
|
|
$
|
4,825,642
|
|
|
(1)
|
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.
|
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
|
|
|
Accruing
90 Days
or More
Past Due
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
808,157
|
|
|
$
|
808,157
|
|
|
$
|
—
|
|
|
Hospitality
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
882,812
|
|
|
|
882,812
|
|
|
|
—
|
|
|
Other
|
|
|
—
|
|
|
|
—
|
|
|
|
1,645
|
|
|
|
1,645
|
|
|
|
1,503,271
|
|
|
|
1,504,916
|
|
|
|
—
|
|
|
Total commercial property loans
|
|
|
—
|
|
|
|
—
|
|
|
|
1,645
|
|
|
|
1,645
|
|
|
|
3,194,240
|
|
|
|
3,195,885
|
|
|
|
—
|
|
|
Construction
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
70,357
|
|
|
|
70,357
|
|
|
|
—
|
|
|
Residential property
|
|
|
2,682
|
|
|
|
—
|
|
|
|
2,645
|
|
|
|
5,327
|
|
|
|
348,737
|
|
|
|
354,064
|
|
|
|
—
|
|
|
Total real estate loans
|
|
|
2,682
|
|
|
|
—
|
|
|
|
4,290
|
|
|
|
6,972
|
|
|
|
3,613,334
|
|
|
|
3,620,306
|
|
|
|
—
|
|
|
Commercial and industrial loans
|
|
|
212
|
|
|
|
—
|
|
|
|
12,632
|
|
|
|
12,844
|
|
|
|
717,555
|
|
|
|
730,399
|
|
|
|
—
|
|
|
Leases receivable
|
|
|
3,684
|
|
|
|
5,095
|
|
|
|
5,113
|
|
|
|
13,893
|
|
|
|
448,918
|
|
|
|
462,811
|
|
|
|
—
|
|
|
Consumer loans
|
|
|
—
|
|
|
|
—
|
|
|
|
27
|
|
|
|
27
|
|
|
|
12,099
|
|
|
|
12,126
|
|
|
|
—
|
|
|
Total loans receivable
|
|
$
|
6,578
|
|
|
$
|
5,095
|
|
|
$
|
22,062
|
|
|
$
|
33,736
|
|
|
$
|
4,791,906
|
|
|
$
|
4,825,642
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 property
|
|
|
540
|
|
|
|
1,627
|
|
|
|
309
|
|
|
|
2,477
|
|
|
|
399,551
|
|
|
|
402,028
|
|
|
|
—
|
|
|
Total real estate loans
|
|
|
1,504
|
|
|
|
1,759
|
|
|
|
458
|
|
|
|
3,721
|
|
|
|
3,624,784
|
|
|
|
3,628,505
|
|
|
|
—
|
|
|
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
|
|
|
|
—
|
|
|
Consumer loans
|
|
|
—
|
|
|
|
30
|
|
|
|
—
|
|
|
|
30
|
|
|
|
13,639
|
|
|
|
13,670
|
|
|
|
—
|
|
|
Total loans receivable
|
|
$
|
7,497
|
|
|
$
|
4,060
|
|
|
$
|
4,094
|
|
|
$
|
15,652
|
|
|
$
|
4,594,496
|
|
|
$
|
4,610,147
|
|
|
$
|
—
|
|
As of June 30, 2020 and December 31, 2019, there were no loans 90 days or more past due and accruing interest.
Individually Evaluated Loans
Prior to the adoption of ASU 2016-13, impaired loans were measured 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 impaired loan was less than the recorded investment in the loan, we 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 impaired loans when determining the amount of the allowance for loan losses required for the period.
We review, under ASU 2016-13, 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 June 30, 2020 and impaired loans receivable as of 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
|
|
|
|
|
(in thousands)
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,355
|
|
|
$
|
1,355
|
|
|
$
|
1,355
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Other
|
|
|
18,299
|
|
|
|
19,725
|
|
|
|
17,679
|
|
|
|
620
|
|
|
|
20
|
|
|
Total commercial property loans
|
|
|
19,654
|
|
|
|
21,080
|
|
|
|
19,034
|
|
|
|
620
|
|
|
|
20
|
|
|
Construction
|
|
|
25,854
|
|
|
|
27,330
|
|
|
|
13,046
|
|
|
|
12,808
|
|
|
|
2,787
|
|
|
Residential property
|
|
|
2,794
|
|
|
|
2,770
|
|
|
|
2,761
|
|
|
|
33
|
|
|
|
—
|
|
|
Total real estate loans
|
|
|
48,302
|
|
|
|
51,180
|
|
|
|
34,841
|
|
|
|
13,461
|
|
|
|
2,807
|
|
|
Commercial and industrial loans
|
|
|
13,771
|
|
|
|
14,589
|
|
|
|
12,877
|
|
|
|
893
|
|
|
|
123
|
|
|
Leases receivable
|
|
|
8,456
|
|
|
|
8,521
|
|
|
|
1,797
|
|
|
|
6,660
|
|
|
|
2,262
|
|
|
Consumer loans
|
|
|
1,280
|
|
|
|
1,599
|
|
|
|
1,208
|
|
|
|
72
|
|
|
|
2
|
|
|
Total
|
|
$
|
71,809
|
|
|
$
|
75,889
|
|
|
$
|
50,723
|
|
|
$
|
21,086
|
|
|
$
|
5,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
434
|
|
|
$
|
459
|
|
|
$
|
111
|
|
|
$
|
323
|
|
|
$
|
19
|
|
|
Hospitality
|
|
|
244
|
|
|
|
400
|
|
|
|
22
|
|
|
|
223
|
|
|
|
24
|
|
|
Other
|
|
|
14,864
|
|
|
|
15,151
|
|
|
|
14,696
|
|
|
|
167
|
|
|
|
12
|
|
|
Total commercial property loans
|
|
|
15,542
|
|
|
|
16,010
|
|
|
|
14,829
|
|
|
|
713
|
|
|
|
55
|
|
|
Construction
|
|
|
27,201
|
|
|
|
28,000
|
|
|
|
—
|
|
|
|
27,201
|
|
|
|
13,973
|
|
|
Residential property
|
|
|
1,124
|
|
|
|
1,163
|
|
|
|
1,089
|
|
|
|
35
|
|
|
|
—
|
|
|
Total real estate loans
|
|
|
43,867
|
|
|
|
45,173
|
|
|
|
15,918
|
|
|
|
27,949
|
|
|
|
14,028
|
|
|
Commercial and industrial loans
|
|
|
13,700
|
|
|
|
14,090
|
|
|
|
143
|
|
|
|
13,557
|
|
|
|
8,885
|
|
|
Leases receivable
|
|
|
5,902
|
|
|
|
5,909
|
|
|
|
1,112
|
|
|
|
4,790
|
|
|
|
2,863
|
|
|
Consumer loans
|
|
|
1,297
|
|
|
|
1,588
|
|
|
|
1,220
|
|
|
|
77
|
|
|
|
1
|
|
|
Total
|
|
$
|
64,766
|
|
|
$
|
66,760
|
|
|
$
|
18,393
|
|
|
$
|
46,373
|
|
|
$
|
25,778
|
|
Nonaccrual Loans and Nonperforming Assets
The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of June 30, 2020.
|
|
|
June 30, 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
|
|
$
|
1,355
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,355
|
|
|
Other
|
|
|
3,883
|
|
|
|
620
|
|
|
|
—
|
|
|
|
4,503
|
|
|
Commercial property loans
|
|
|
5,238
|
|
|
|
620
|
|
|
|
—
|
|
|
|
5,858
|
|
|
Construction loans
|
|
|
13,046
|
|
|
|
12,808
|
|
|
|
—
|
|
|
|
25,854
|
|
|
Residential property loans
|
|
|
2,761
|
|
|
|
33
|
|
|
|
—
|
|
|
|
2,794
|
|
|
Total real estate loans
|
|
|
21,045
|
|
|
|
13,461
|
|
|
|
—
|
|
|
|
34,506
|
|
|
Commercial and industrial loans
|
|
|
12,878
|
|
|
|
907
|
|
|
|
—
|
|
|
|
13,785
|
|
|
Leases receivable
|
|
|
1,797
|
|
|
|
7,488
|
|
|
|
—
|
|
|
|
9,285
|
|
|
Consumer loans
|
|
|
688
|
|
|
|
—
|
|
|
|
—
|
|
|
|
688
|
|
|
Total
|
|
$
|
36,408
|
|
|
$
|
21,856
|
|
|
$
|
—
|
|
|
$
|
58,264
|
|
The following is a summary of interest foregone on nonaccrual loans for the periods indicated:
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
(in thousands)
|
|
|
Interest income that would have been recognized had impaired loans performed in accordance with their original terms
|
|
$
|
1,386
|
|
|
$
|
1,120
|
|
|
$
|
2,998
|
|
|
$
|
2,009
|
|
|
Less: Interest income recognized on impaired loans
|
|
|
(508
|
)
|
|
|
(696
|
)
|
|
|
(1,085
|
)
|
|
|
(1,378
|
)
|
|
Interest foregone on impaired loans
|
|
$
|
878
|
|
|
$
|
424
|
|
|
$
|
1,913
|
|
|
$
|
631
|
|
There were no commitments to lend additional funds to borrowers whose loans are included above.
The following table details nonaccrual loans, disaggregated by loan class, as of the dates indicated:
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|
|
|
(in thousands)
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
Commercial property
|
|
|
|
|
|
|
|
|
|
Retail
|
|
$
|
1,355
|
|
|
$
|
277
|
|
|
Hospitality
|
|
|
—
|
|
|
|
225
|
|
|
Other
|
|
|
4,503
|
|
|
|
14,864
|
|
|
Total Commercial property loans
|
|
|
5,858
|
|
|
|
15,366
|
|
|
Construction
|
|
|
25,854
|
|
|
|
27,201
|
|
|
Residential property
|
|
|
2,794
|
|
|
|
1,124
|
|
|
Total real estate loans
|
|
|
34,506
|
|
|
|
43,691
|
|
|
Commercial and industrial loans
|
|
|
13,785
|
|
|
|
13,479
|
|
|
Leases receivable
|
|
|
9,285
|
|
|
|
5,902
|
|
|
Consumer loans
|
|
|
688
|
|
|
|
689
|
|
|
Total nonaccrual loans
|
|
$
|
58,264
|
|
|
$
|
63,761
|
|
The following table details nonperforming assets as of the dates indicated:
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|
|
|
(in thousands)
|
|
|
Nonaccrual loans
|
|
$
|
58,264
|
|
|
$
|
63,761
|
|
|
Loans receivable 90 days or more past due and still accruing
|
|
|
—
|
|
|
|
—
|
|
|
Total nonperforming loans receivable
|
|
|
58,264
|
|
|
|
63,761
|
|
|
Other real estate owned ("OREO")
|
|
|
148
|
|
|
|
63
|
|
|
Total nonperforming assets
|
|
$
|
58,412
|
|
|
$
|
63,824
|
|
OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019.
Troubled Debt Restructurings
As of June 30, 2020 and December 31, 2019, total TDRs were $31.6 million and $56.3 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise considered, to the borrower for economic or legal reasons related to the borrower’s financial difficulties. Loans are considered to be TDRs if they were restructured, such as reducing the amount of principal and interest due monthly, and/or allowing for interest only monthly payments for three months or more or other payment structure modifications.
The following table details TDRs as of June 30, 2020 and December 31, 2019:
|
|
|
Nonaccrual TDRs
|
|
|
Accrual TDRs
|
|
|
|
|
Deferral of
Principal
|
|
|
Deferral of
Principal
and/or Interest
|
|
|
Reduction
of Principal
and/or Interest
|
|
|
Extension
of Maturity
|
|
|
Total
|
|
|
Deferral of
Principal
|
|
|
Deferral of
Principal
and/or Interest
|
|
|
Reduction
of Principal
and/or Interest
|
|
|
Extension
of Maturity
|
|
|
Total
|
|
|
June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans
|
|
$
|
—
|
|
|
$
|
1,483
|
|
|
$
|
13,548
|
|
|
$
|
618
|
|
|
$
|
15,649
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,796
|
|
|
$
|
13,796
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
181
|
|
|
|
247
|
|
|
|
296
|
|
|
|
724
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51
|
|
|
|
85
|
|
|
|
136
|
|
|
Consumer loans
|
|
|
661
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
661
|
|
|
|
521
|
|
|
|
—
|
|
|
|
71
|
|
|
|
—
|
|
|
|
592
|
|
|
Total
|
|
$
|
661
|
|
|
$
|
1,664
|
|
|
$
|
13,795
|
|
|
$
|
914
|
|
|
$
|
17,034
|
|
|
$
|
521
|
|
|
$
|
—
|
|
|
$
|
122
|
|
|
$
|
13,881
|
|
|
$
|
14,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans
|
|
$
|
—
|
|
|
$
|
132
|
|
|
$
|
27,740
|
|
|
$
|
13,926
|
|
|
$
|
41,798
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
153
|
|
|
|
12,527
|
|
|
|
312
|
|
|
|
12,991
|
|
|
|
—
|
|
|
|
36
|
|
|
|
71
|
|
|
|
114
|
|
|
|
222
|
|
|
Consumer loans
|
|
|
689
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
689
|
|
|
|
531
|
|
|
|
—
|
|
|
|
77
|
|
|
|
—
|
|
|
|
608
|
|
|
Total
|
|
$
|
689
|
|
|
$
|
285
|
|
|
$
|
40,266
|
|
|
$
|
14,238
|
|
|
$
|
55,478
|
|
|
$
|
531
|
|
|
$
|
36
|
|
|
$
|
148
|
|
|
$
|
114
|
|
|
$
|
830
|
|
The following table presents the number of loans by class modified as troubled debt restructurings that occurred during the periods indicated, with their pre- and post-modification recorded amounts.
|
|
|
Three Months ended
|
|
|
Twelve Months ended
|
|
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|
|
|
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
|
|
|
2
|
|
|
$
|
2,002
|
|
|
$
|
1,973
|
|
|
|
5
|
|
|
$
|
40,743
|
|
|
$
|
41,798
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
12,779
|
|
|
|
12,562
|
|
|
Consumer loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
549
|
|
|
|
531
|
|
|
Total
|
|
|
2
|
|
|
$
|
2,002
|
|
|
$
|
1,973
|
|
|
|
8
|
|
|
$
|
54,071
|
|
|
$
|
54,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months ended
|
|
|
Twelve Months ended
|
|
|
|
|
June 30, 2020
|
|
|
December 31, 2019
|
|
|
|
|
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
|
|
|
2
|
|
|
$
|
2,002
|
|
|
$
|
1,973
|
|
|
|
5
|
|
|
$
|
40,743
|
|
|
$
|
41,798
|
|
|
Commercial and industrial loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
|
|
12,779
|
|
|
|
12,562
|
|
|
Consumer loans
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
549
|
|
|
|
531
|
|
|
Total
|
|
|
2
|
|
|
$
|
2,002
|
|
|
$
|
1,973
|
|
|
|
8
|
|
|
$
|
54,071
|
|
|
$
|
54,891
|
|
All TDRs are individually analyzed 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 June 30, 2020 and December 31, 2019, TDRs were subjected to specific impairment analysis. We determined impairment allowances of $0.1 million and $22.7 million, respectively, related to these loans and such allowances were included in the allowance for credit losses.
A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. One loan for $33,000 defaulted during the three- and six-months ended June 30, 2020 following modification. During the year ended December 31, 2019, one loan for $132,000 defaulted within the twelve-month period following modification.
|