Annual report pursuant to Section 13 and 15(d)

Loans Receivable

v3.22.0.1
Loans Receivable
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
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 for the purchase, construction or refinance on real estate properties. Commercial and industrial loans consist of commercial term loans, commercial lines of credit and can include SBA loans. Alternatively, SBA loans can be real estate secured. 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,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

Retail

 

$

970,134

 

 

$

824,606

 

Hospitality

 

 

717,692

 

 

 

859,953

 

Other (1)

 

 

1,919,033

 

 

 

1,610,377

 

Total commercial property loans

 

 

3,606,859

 

 

 

3,294,936

 

Construction

 

 

95,006

 

 

 

58,882

 

Residential/consumer loans

 

 

400,546

 

 

 

345,831

 

Total real estate loans

 

 

4,102,411

 

 

 

3,699,649

 

Commercial and industrial loans

 

 

561,831

 

 

 

757,255

 

Leases receivable

 

 

487,299

 

 

 

423,264

 

Loans receivable

 

 

5,151,541

 

 

 

4,880,168

 

Allowance for credit losses

 

 

(72,557

)

 

 

(90,426

)

Loans receivable, net

 

$

5,078,984

 

 

$

4,789,742

 

 

(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”) 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 TDRs.

At December 31, 2021 and 2020, there were $3.0 million and $295.7 million, respectively, of PPP loans included in commercial and industrial loans in the table above.

Accrued interest on loans was $10.1 million and $15.2 million at December 31, 2021 and 2020, respectively. Accrued interest at December 31, 2021 and 2020 included unpaid deferred interest receivable related to loans modified under the CARES Act of $3.4 million, net of a $0 valuation allowance and $7.5 million, net of a $1.7 million valuation allowance, respectively.

At December 31, 2021 and 2020, loans of $2.30 billion and $2.17 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, 2021 and 2020:

 

 

 

Real Estate

 

 

Commercial

and Industrial

 

 

Total

 

 

 

(in thousands)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

8,042

 

 

$

526

 

 

$

8,568

 

Originations and transfers

 

 

87,775

 

 

 

177,968

 

 

 

265,743

 

Sales

 

 

(88,858

)

 

 

(172,995

)

 

 

(261,853

)

Principal paydowns and amortization

 

 

(5

)

 

 

889

 

 

 

884

 

Balance at end of period

 

$

6,954

 

 

$

6,388

 

 

$

13,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

Loans held for sale was comprised of $13.3 million and $8.6 million of the guaranteed portion of SBA 7(a) loans at December 31, 2021 and 2020, respectively. There were no second draw PPP loans held for sale at December 31, 2021. For the year ended December 31, 2021, the Company recognized $3.0 million of gains on the sale of $132.7 million second draw PPP loans. There were no such sales in 2020.

 

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,

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

90,426

 

 

$

61,408

 

 

$

31,974

 

Adjustment related to adoption of ASU 2016-13

 

 

 

 

 

17,433

 

 

 

 

Adjusted balance

 

 

90,426

 

 

 

78,841

 

 

 

31,974

 

Less loans receivable charged off

 

 

6,373

 

 

 

33,952

 

 

 

4,588

 

Recoveries on loans receivable previously charged off

 

 

(12,650

)

 

 

(3,063

)

 

 

(3,852

)

Provision (recovery) for credit losses

 

 

(24,146

)

 

 

42,474

 

 

 

30,170

 

Balance at end of period

 

$

72,557

 

 

$

90,426

 

 

$

61,408

 

 

 

The following table details the information on the allowance for credit losses by portfolio segment for the years ended December 31, 2021, 2020 and 2019:

 

 

 

Real

Estate

 

 

Commercial

and

Industrial

 

 

Leases

Receivable

 

 

Unallocated

 

 

Total

 

 

 

(in thousands)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

51,876

 

 

$

21,410

 

 

$

17,140

 

 

$

 

 

$

90,426

 

Less loans charged off

 

 

1,427

 

 

 

546

 

 

 

4,400

 

 

 

 

 

 

6,373

 

Recoveries on loans receivable previously charged off

 

 

(10,807

)

 

 

(897

)

 

 

(946

)

 

 

 

 

 

(12,650

)

Provision (recovery) for credit losses

 

 

(12,366

)

 

 

(9,343

)

 

 

(2,437

)

 

 

 

 

 

(24,146

)

Ending balance

 

$

48,890

 

 

$

12,418

 

 

$

11,249

 

 

$

 

 

$

72,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (recovery) for credit losses

 

 

15,896

 

 

 

9,097

 

 

 

5,205

 

 

 

(27

)

 

 

30,170

 

Ending balance

 

$

36,435

 

 

$

16,206

 

 

$

8,767

 

 

$

 

 

$

61,408

 

 

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable for the years ended December 31, 2021 and 2020:

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Allowance

Amount

 

 

Percentage

of Total

Allowance

 

 

Total

Loans

 

 

Percentage

of Total

Loans

 

 

Allowance

Amount

 

 

Percentage

of Total

Allowance

 

 

Total

Loans

 

 

Percentage

of Total

Loans

 

 

 

(dollars in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

6,579

 

 

 

9.1

%

 

$

970,134

 

 

 

18.8

%

 

$

4,855

 

 

 

5.4

%

 

$

824,606

 

 

 

16.9

%

Hospitality

 

 

22,670

 

 

 

31.2

%

 

 

717,692

 

 

 

13.9

%

 

 

28,801

 

 

 

31.9

%

 

 

859,953

 

 

 

17.6

%

Other

 

 

15,065

 

 

 

20.8

%

 

 

1,919,033

 

 

 

37.3

%

 

 

13,991

 

 

 

15.4

%

 

 

1,610,377

 

 

 

33.0

%

Total commercial property loans

 

 

44,314

 

 

 

61.1

%

 

 

3,606,859

 

 

 

70.0

%

 

 

47,647

 

 

 

52.7

%

 

 

3,294,936

 

 

 

67.5

%

Construction

 

 

4,078

 

 

 

5.6

%

 

 

95,006

 

 

 

1.8

%

 

 

2,876

 

 

 

3.2

%

 

 

58,882

 

 

 

1.2

%

Residential/consumer loans

 

 

498

 

 

 

0.7

%

 

 

400,546

 

 

 

7.8

%

 

 

1,353

 

 

 

1.5

%

 

 

345,831

 

 

 

7.1

%

Total real estate loans

 

 

48,890

 

 

 

67.4

%

 

 

4,102,411

 

 

 

79.6

%

 

 

51,876

 

 

 

57.4

%

 

 

3,699,649

 

 

 

75.8

%

Commercial and industrial loans

 

 

12,418

 

 

 

17.1

%

 

 

561,831

 

 

 

10.9

%

 

 

21,410

 

 

 

23.6

%

 

 

757,255

 

 

 

15.5

%

Leases receivable

 

 

11,249

 

 

 

15.5

%

 

 

487,299

 

 

 

9.5

%

 

 

17,140

 

 

 

19.0

%

 

 

423,264

 

 

 

8.7

%

Total

 

$

72,557

 

 

 

100.0

%

 

$

5,151,541

 

 

 

100.0

%

 

$

90,426

 

 

 

100.0

%

 

$

4,880,168

 

 

 

100.0

%

 

 

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2021 and 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.

 

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

Retail

 

$

1,917

 

 

$

6,330

 

Hospitality

 

 

 

 

 

20,612

 

Other

 

 

499

 

 

 

8,410

 

Total commercial property loans

 

 

2,416

 

 

 

35,352

 

Construction

 

 

 

 

 

24,854

 

Residential/consumer loans

 

 

982

 

 

 

2,867

 

Total real estate loans

 

 

3,398

 

 

 

63,073

 

Commercial and industrial loans

 

 

 

 

 

41

 

Total (1)

 

$

3,398

 

 

$

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 1 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 (1-4), 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, 2021 and 2020, 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, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

952,651

 

 

$

5,949

 

 

$

11,534

 

 

$

970,134

 

Hospitality

 

 

662,834

 

 

 

36,248

 

 

 

18,610

 

 

 

717,692

 

Other

 

 

1,891,877

 

 

 

9,846

 

 

 

17,310

 

 

 

1,919,033

 

Total commercial property loans

 

 

3,507,362

 

 

 

52,043

 

 

 

47,454

 

 

 

3,606,859

 

Construction

 

 

74,439

 

 

 

20,567

 

 

 

 

 

 

95,006

 

Residential/consumer loans

 

 

396,007

 

 

 

3,557

 

 

 

982

 

 

 

400,546

 

Total real estate loans

 

 

3,977,808

 

 

 

76,167

 

 

 

48,436

 

 

 

4,102,411

 

Commercial and industrial loans

 

 

537,652

 

 

 

19,127

 

 

 

5,052

 

 

 

561,831

 

Leases receivable

 

 

480,154

 

 

 

 

 

 

7,145

 

 

 

487,299

 

Total loans receivable

 

$

4,995,614

 

 

$

95,294

 

 

$

60,633

 

 

$

5,151,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

At December 31, 2021, of the $2.3 million of loans modified in accordance with the provision of the CARES Act, $1.1 million were in pass/pass-watch, $0 were special mention, and $1.2 million were classified. 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/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)

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Revolving

Loans

Amortized

Cost Basis

 

 

Total

 

 

 

(in thousands)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

$

1,203,197

 

 

$

706,470

 

 

$

488,250

 

 

$

406,288

 

 

$

277,680

 

 

$

384,064

 

 

$

41,413

 

 

$

3,507,362

 

Special Mention

 

 

 

 

 

18,869

 

 

 

7,593

 

 

 

 

 

 

6,999

 

 

 

16,879

 

 

 

1,703

 

 

 

52,043

 

Classified

 

 

 

 

 

 

 

 

5,450

 

 

 

17,247

 

 

 

2,965

 

 

 

21,792

 

 

 

 

 

 

47,454

 

Total commercial property

 

 

1,203,197

 

 

 

725,339

 

 

 

501,293

 

 

 

423,535

 

 

 

287,644

 

 

 

422,735

 

 

 

43,116

 

 

 

3,606,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

73,808

 

 

 

631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

74,439

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20,567

 

 

 

 

 

 

20,567

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

73,808

 

 

 

631

 

 

 

 

 

 

 

 

 

 

 

 

20,567

 

 

 

 

 

 

95,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

194,948

 

 

 

16,975

 

 

 

247

 

 

 

19,813

 

 

 

73,567

 

 

 

82,076

 

 

 

8,381

 

 

 

396,007

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

930

 

 

 

406

 

 

 

2,221

 

 

 

 

 

 

3,557

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

965

 

 

 

17

 

 

 

 

 

 

982

 

Total residential/consumer loans

 

 

194,948

 

 

 

16,975

 

 

 

247

 

 

 

20,743

 

 

 

74,938

 

 

 

84,314

 

 

 

8,381

 

 

 

400,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

1,471,953

 

 

 

724,076

 

 

 

488,497

 

 

 

426,101

 

 

 

351,247

 

 

 

466,140

 

 

 

49,794

 

 

 

3,977,808

 

Special Mention

 

 

 

 

 

18,869

 

 

 

7,593

 

 

 

930

 

 

 

7,405

 

 

 

39,667

 

 

 

1,703

 

 

 

76,167

 

Classified

 

 

 

 

 

 

 

 

5,450

 

 

 

17,247

 

 

 

3,930

 

 

 

21,809

 

 

 

 

 

 

48,436

 

Total real estate loans

 

 

1,471,953

 

 

 

742,945

 

 

 

501,540

 

 

 

444,278

 

 

 

362,582

 

 

 

527,616

 

 

 

51,497

 

 

 

4,102,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

264,762

 

 

 

55,135

 

 

 

36,937

 

 

 

15,780

 

 

 

10,874

 

 

 

6,016

 

 

 

148,148

 

 

 

537,652

 

Special Mention

 

 

 

 

 

274

 

 

 

13,989

 

 

 

 

 

 

67

 

 

 

4,802

 

 

 

(5

)

 

 

19,127

 

Classified

 

 

 

 

 

3

 

 

 

708

 

 

 

145

 

 

 

19

 

 

 

886

 

 

 

3,291

 

 

 

5,052

 

Total commercial and industrial loans

 

 

264,762

 

 

 

55,412

 

 

 

51,634

 

 

 

15,925

 

 

 

10,960

 

 

 

11,704

 

 

 

151,434

 

 

 

561,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

239,738

 

 

 

79,400

 

 

 

101,460

 

 

 

47,485

 

 

 

10,683

 

 

 

1,388

 

 

 

 

 

 

480,154

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

716

 

 

 

981

 

 

 

3,575

 

 

 

1,328

 

 

 

347

 

 

 

198

 

 

 

 

 

 

7,145

 

Total leases receivable

 

 

240,454

 

 

 

80,381

 

 

 

105,035

 

 

 

48,813

 

 

 

11,030

 

 

 

1,586

 

 

 

 

 

 

487,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

1,976,453

 

 

 

858,611

 

 

 

626,894

 

 

 

489,366

 

 

 

372,804

 

 

 

473,544

 

 

 

197,942

 

 

 

4,995,614

 

Special Mention

 

 

 

 

 

19,143

 

 

 

21,582

 

 

 

930

 

 

 

7,472

 

 

 

44,469

 

 

 

1,698

 

 

 

95,294

 

Classified

 

 

716

 

 

 

984

 

 

 

9,733

 

 

 

18,720

 

 

 

4,296

 

 

 

22,893

 

 

 

3,291

 

 

 

60,633

 

Total loans receivable

 

$

1,977,169

 

 

$

878,738

 

 

$

658,209

 

 

$

509,016

 

 

$

384,572

 

 

$

540,906

 

 

$

202,931

 

 

$

5,151,541

 

 

(1)

Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Revolving

Loans

Amortized

Cost Basis

 

 

Total

 

 

 

(in thousands)

 

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/consumer loans

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

Prior

 

 

Revolving

Loans

Amortized

Cost Basis

 

 

Total

 

 

 

(in thousands)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

1,203,197

 

 

$

725,339

 

 

$

501,293

 

 

$

423,515

 

 

$

286,935

 

 

$

419,464

 

 

$

43,116

 

 

$

3,602,859

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

709

 

 

 

3,271

 

 

 

 

 

 

4,000

 

Total commercial property

 

 

1,203,197

 

 

 

725,339

 

 

 

501,293

 

 

 

423,535

 

 

 

287,644

 

 

 

422,735

 

 

 

43,116

 

 

 

3,606,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

73,808

 

 

 

631

 

 

 

 

 

 

 

 

 

 

 

 

20,567

 

 

 

 

 

 

95,006

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

73,808

 

 

 

631

 

 

 

 

 

 

 

 

 

 

 

 

20,567

 

 

 

 

 

 

95,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

194,948

 

 

 

16,975

 

 

 

247

 

 

 

20,743

 

 

 

73,973

 

 

 

84,052

 

 

 

8,381

 

 

 

399,319

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

965

 

 

 

262

 

 

 

 

 

 

1,227

 

Total residential/consumer loans

 

 

194,948

 

 

 

16,975

 

 

 

247

 

 

 

20,743

 

 

 

74,938

 

 

 

84,314

 

 

 

8,381

 

 

 

400,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

1,471,953

 

 

 

742,945

 

 

 

501,540

 

 

 

444,258

 

 

 

360,908

 

 

 

524,083

 

 

 

51,497

 

 

 

4,097,184

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

1,674

 

 

 

3,533

 

 

 

 

 

 

5,227

 

Total real estate loans

 

 

1,471,953

 

 

 

742,945

 

 

 

501,540

 

 

 

444,278

 

 

 

362,582

 

 

 

527,616

 

 

 

51,497

 

 

 

4,102,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

264,762

 

 

 

55,409

 

 

 

50,926

 

 

 

15,925

 

 

 

10,956

 

 

 

11,431

 

 

 

151,434

 

 

 

560,843

 

Nonperforming

 

 

 

 

 

3

 

 

 

708

 

 

 

 

 

 

4

 

 

 

273

 

 

 

 

 

 

988

 

Total commercial and industrial loans

 

 

264,762

 

 

 

55,412

 

 

 

51,634

 

 

 

15,925

 

 

 

10,960

 

 

 

11,704

 

 

 

151,434

 

 

 

561,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

239,738

 

 

 

79,400

 

 

 

101,460

 

 

 

47,484

 

 

 

10,684

 

 

 

1,388

 

 

 

 

 

 

480,154

 

Nonperforming

 

 

716

 

 

 

981

 

 

 

3,575

 

 

 

1,329

 

 

 

346

 

 

 

198

 

 

 

 

 

 

7,145

 

Total leases receivable

 

 

240,454

 

 

 

80,381

 

 

 

105,035

 

 

 

48,813

 

 

 

11,030

 

 

 

1,586

 

 

 

 

 

 

487,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

1,976,453

 

 

 

877,754

 

 

 

653,926

 

 

 

507,667

 

 

 

382,548

 

 

 

536,902

 

 

 

202,931

 

 

 

5,138,181

 

Nonperforming

 

 

716

 

 

 

984

 

 

 

4,283

 

 

 

1,349

 

 

 

2,024

 

 

 

4,004

 

 

 

 

 

 

13,360

 

Total loans receivable

 

$

1,977,169

 

 

$

878,738

 

 

$

658,209

 

 

$

509,016

 

 

$

384,572

 

 

$

540,906

 

 

$

202,931

 

 

$

5,151,541

 

 

(1)

Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Revolving

Loans

Amortized

Cost Basis

 

 

Total

 

 

 

(in thousands)

 

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/consumer loans

 

 

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 credit losses or we established a specific allowance in the allowance for credit losses. Additionally, we excluded from the quarterly migration analysis individually evaluated loans when determining the amount of the allowance for credit 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. Individually evaluated loans are measured for expected credit losses based on the present value of expected cash flows discounted at the effective interest rate, the observable market price, or the fair value of collateral. The allowance for collateral-dependent loans is calculated as the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals, less estimated costs to sell. The allowance for collateral-dependent loans varies based on the collateral coverage of the loan at the time of the designation as nonperforming. We continue to monitor the collateral coverage on these loans on a quarterly basis, based on recent appraisals, and adjust the allowance accordingly.

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, 2021 and 2020.

 

 

 

December 31, 2021

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

1,918

 

 

$

 

 

$

 

 

$

1,918

 

Hospitality

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

1,745

 

 

 

337

 

 

 

 

 

 

2,082

 

Total commercial property loans

 

 

3,663

 

 

 

337

 

 

 

 

 

 

4,000

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

982

 

 

 

245

 

 

 

 

 

 

1,227

 

Total real estate loans

 

 

4,645

 

 

 

582

 

 

 

 

 

 

5,227

 

Commercial and industrial loans

 

 

8

 

 

 

980

 

 

 

 

 

 

988

 

Leases receivable

 

 

1,172

 

 

 

5,973

 

 

 

 

 

 

7,145

 

Total

 

$

5,825

 

 

$

7,535

 

 

$

 

 

$

13,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

6,330

 

 

$

 

 

$

 

 

$

6,330

 

Hospitality

 

 

20,612

 

 

 

 

 

 

 

 

 

20,612

 

Other

 

 

2,236

 

 

 

909

 

 

 

 

 

 

3,145

 

Total commercial property loans

 

 

29,178

 

 

 

909

 

 

 

 

 

 

30,087

 

Construction

 

 

24,854

 

 

 

 

 

 

 

 

 

24,854

 

Residential/consumer loans

 

 

2,350

 

 

 

 

 

 

 

 

 

2,350

 

Total real estate loans

 

 

56,382

 

 

 

909

 

 

 

 

 

 

57,291

 

Commercial and industrial loans

 

 

58

 

 

 

14,449

 

 

 

 

 

 

14,507

 

Leases receivable

 

 

2,318

 

 

 

8,916

 

 

 

 

 

 

11,234

 

Total

 

$

58,758

 

 

$

24,274

 

 

$

 

 

$

83,032

 

 

 

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, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

 

$

 

 

$

 

 

$

 

 

$

970,134

 

 

$

970,134

 

Hospitality

 

 

556

 

 

 

 

 

 

 

 

 

556

 

 

 

717,136

 

 

 

717,692

 

Other

 

 

92

 

 

 

691

 

 

 

499

 

 

 

1,282

 

 

 

1,917,751

 

 

 

1,919,033

 

Total commercial property loans

 

 

648

 

 

 

691

 

 

 

499

 

 

 

1,838

 

 

 

3,605,021

 

 

 

3,606,859

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95,006

 

 

 

95,006

 

Residential/consumer loans

 

 

570

 

 

 

750

 

 

 

556

 

 

 

1,876

 

 

 

398,670

 

 

 

400,546

 

Total real estate loans

 

 

1,218

 

 

 

1,441

 

 

 

1,055

 

 

 

3,714

 

 

 

4,098,697

 

 

 

4,102,411

 

Commercial and industrial loans

 

 

56

 

 

 

9

 

 

 

 

 

 

65

 

 

 

561,766

 

 

 

561,831

 

Leases receivable

 

 

3,764

 

 

 

1,992

 

 

 

1,181

 

 

 

6,937

 

 

 

480,362

 

 

 

487,299

 

Total loans receivable

 

$

5,038

 

 

$

3,442

 

 

$

2,236

 

 

$

10,716

 

 

$

5,140,825

 

 

$

5,151,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

There were no loans that were 90 days or more past due and accruing interest as of December 31, 2021 and 2020. In addition, $11.1 million and $53.4 million of loans current or past due less than 90 days were classified as nonaccrual at December 31, 2021 and 2020, respectively.

 

At December 31, 2021, for loans currently modified under the CARES Act, $47,000 were 30-59 days past due, $5,000 were 60-89 days past due, and no loans were 90 days or more past due.  For loans previously modified under the CARES Act, $1.2 million were 30-59 days past due, $1.1 million were 60-89 days past due, and $1.1 million were 90 days or more past due. 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,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

Retail

 

$

1,918

 

 

$

6,330

 

Hospitality

 

 

 

 

 

20,612

 

Other

 

 

2,082

 

 

 

3,145

 

Total commercial property loans

 

 

4,000

 

 

 

30,087

 

Construction

 

 

 

 

 

24,854

 

Residential/consumer loans

 

 

1,227

 

 

 

2,350

 

Total real estate loans

 

 

5,227

 

 

 

57,291

 

Commercial and industrial loans

 

 

988

 

 

 

14,507

 

Leases receivable

 

 

7,145

 

 

 

11,234

 

Total nonaccrual loans

 

$

13,360

 

 

$

83,032

 

 

The following table details nonperforming assets as of the dates indicated:

 

 

 

As of December 31,

 

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Nonaccrual loans

 

$

13,360

 

 

$

83,032

 

Loans receivable 90 days or more past due and still accruing

 

 

 

 

 

 

Total nonperforming loans receivable

 

 

13,360

 

 

 

83,032

 

Other real estate owned ("OREO")

 

 

675

 

 

 

2,360

 

Total nonperforming assets

 

$

14,035

 

 

$

85,392

 

 

OREO consisted of one property with a carrying value of $675,000 as of December 31, 2021, and four properties with a combined carrying value of $2.4 million as of December 31, 2020. OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of December 31, 2021 and 2020.

Troubled Debt Restructuring

The following table details the recorded investment in TDRs, disaggregated by concession type and by loan type, as of December 31, 2021 and 2020:

 

 

 

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, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans

 

$

346

 

 

$

2,046

 

 

$

372

 

 

$

 

 

$

2,764

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Commercial and industrial loans

 

 

 

 

 

124

 

 

 

 

 

 

 

 

 

124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

346

 

 

$

2,170

 

 

$

372

 

 

$

 

 

$

2,888

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

As of December 31, 2021, accruing TDRs are collectively evaluated along with performing and accruing loans and nonaccrual TDRs are individually evaluated for specific expected credit losses 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, 2021 and 2020, nonaccrual TDRs were subjected to specific expected credit losses analysis. We determined an expected credit losses allowance of $4,000 and $16,000 as of December 31, 2021 and 2020, 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, 2021, 2020 and 2019 with their pre- and post-modification recorded amounts.

 

 

 

December 31, 2021

 

 

December 31, 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

 

 

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

 

Total

 

 

 

 

$

 

 

$

 

 

 

5

 

 

$

4,479

 

 

$

3,676

 

 

 

8

 

 

$

54,071

 

 

$

54,892

 

 

A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. No loans defaulted during the twelve months ended December 31, 2021 following modification. During the year ended December 31, 2020, one loan for $398,000 defaulted within the twelve-month period following modification. The allowance for credit losses resulting from these defaulted loans were $0 and $3,000 as of December 31, 2021 and 2020, respectively.