| Loans |
Loans
Loans Receivable, Net
Loans receivable consisted of the following as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
|
(in thousands) |
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property (1)
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
790,968 |
|
|
$ |
2,543 |
|
|
$ |
793,511 |
|
|
$ |
735,501 |
|
|
$ |
4,849 |
|
|
$ |
740,350 |
|
Hospitality |
602,826 |
|
|
3,250 |
|
|
606,076 |
|
|
539,345 |
|
|
4,080 |
|
|
543,425 |
|
Gas station |
277,873 |
|
|
2,888 |
|
|
280,761 |
|
|
319,363 |
|
|
4,292 |
|
|
323,655 |
|
Other (2)
|
1,123,195 |
|
|
5,151 |
|
|
1,128,346 |
|
|
973,243 |
|
|
5,418 |
|
|
978,661 |
|
Construction |
26,382 |
|
|
— |
|
|
26,382 |
|
|
23,387 |
|
|
— |
|
|
23,387 |
|
Residential property |
295,505 |
|
|
991 |
|
|
296,496 |
|
|
234,879 |
|
|
1,157 |
|
|
236,036 |
|
Total real estate loans |
3,116,749 |
|
|
14,823 |
|
|
3,131,572 |
|
|
2,825,718 |
|
|
19,796 |
|
|
2,845,514 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
143,487 |
|
|
146 |
|
|
143,633 |
|
|
152,602 |
|
|
171 |
|
|
152,773 |
|
Commercial lines of credit |
121,326 |
|
|
— |
|
|
121,326 |
|
|
128,224 |
|
|
— |
|
|
128,224 |
|
International loans |
28,114 |
|
|
— |
|
|
28,114 |
|
|
31,879 |
|
|
— |
|
|
31,879 |
|
Total commercial and industrial loans |
292,927 |
|
|
146 |
|
|
293,073 |
|
|
312,705 |
|
|
171 |
|
|
312,876 |
|
Consumer loans (3)
|
24,614 |
|
|
51 |
|
|
24,665 |
|
|
24,879 |
|
|
47 |
|
|
24,926 |
|
Loans receivable |
3,434,290 |
|
|
15,020 |
|
|
3,449,310 |
|
|
3,163,302 |
|
|
20,014 |
|
|
3,183,316 |
|
Allowance for loans losses |
(34,259 |
) |
|
(5,448 |
) |
|
(39,707 |
) |
|
(37,494 |
) |
|
(5,441 |
) |
|
(42,935 |
) |
Loans receivable, net |
$ |
3,400,031 |
|
|
$ |
9,572 |
|
|
$ |
3,409,603 |
|
|
$ |
3,125,808 |
|
|
$ |
14,573 |
|
|
$ |
3,140,381 |
|
|
|
(1) |
Includes owner-occupied property loans of $1.28 billion and $1.20 billion as of June 30, 2016 and December 31, 2015, respectively.
|
|
|
(2) |
Includes, among other property types, mixed-use, apartment, office, industrial, faith-based facilities and warehouse; the remaining real estate categories represent less than one percent of the Bank's total loans. |
|
|
(3) |
Consumer loans include home equity lines of credit of $20.6 million and $21.8 million as of June 30, 2016 and December 31, 2015, respectively.
|
Accrued interest on loans receivable was $7.3 million and $7.9 million at June 30, 2016 and December 31, 2015, respectively. At June 30, 2016 and December 31, 2015, loans receivable of $758.4 million and $557.7 million, respectively, were pledged to secure borrowing facilities from the FHLB and the FRB's discount window.
Loans Held for Sale
The following table includes the activity for loans held for sale (excluding PCI loans) by portfolio segment for the three months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
Commercial and Industrial |
|
Total Non-PCI |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
Loans held for sale, at beginning of period |
$ |
1,824 |
|
|
$ |
759 |
|
|
$ |
2,583 |
|
Originations |
22,376 |
|
|
8,031 |
|
|
30,407 |
|
Sales |
(14,905 |
) |
|
(5,247 |
) |
|
(20,152 |
) |
Principal payoffs and amortization |
(1 |
) |
|
(4 |
) |
|
(5 |
) |
Loans held for sale, at end of period |
$ |
9,294 |
|
|
$ |
3,539 |
|
|
$ |
12,833 |
|
|
|
|
|
|
|
June 30, 2015 |
|
|
|
|
|
Loans held for sale, at beginning of period |
$ |
7,226 |
|
|
$ |
1,451 |
|
|
$ |
8,677 |
|
Originations |
6,807 |
|
|
8,027 |
|
|
14,834 |
|
Reclassification from loans receivable |
360 |
|
|
— |
|
|
360 |
|
Sales |
(12,321 |
) |
|
(7,368 |
) |
|
(19,689 |
) |
Principal payoffs and amortization |
(5 |
) |
|
(19 |
) |
|
(24 |
) |
Loans held for sale, at end of period |
$ |
2,067 |
|
|
$ |
2,091 |
|
|
$ |
4,158 |
|
The following table includes the activity for loans held for sale (excluding PCI loans) by portfolio segment for the six months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
Commercial and Industrial |
|
Total Non-PCI |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
Loans held for sale, at beginning of period |
$ |
840 |
|
|
$ |
2,034 |
|
|
$ |
2,874 |
|
Originations |
28,849 |
|
|
13,710 |
|
|
42,559 |
|
Sales |
(20,393 |
) |
|
(12,182 |
) |
|
(32,575 |
) |
Principal payoffs and amortization |
(2 |
) |
|
(23 |
) |
|
(25 |
) |
Loans held for sale, at end of period |
$ |
9,294 |
|
|
$ |
3,539 |
|
|
$ |
12,833 |
|
|
|
|
|
|
|
June 30, 2015 |
|
|
|
|
|
Loans held for sale, at beginning of period |
$ |
3,323 |
|
|
$ |
2,128 |
|
|
$ |
5,451 |
|
Originations |
23,734 |
|
|
14,208 |
|
|
37,942 |
|
Reclassification from loans receivable |
360 |
|
|
— |
|
|
360 |
|
Sales |
(25,335 |
) |
|
(14,208 |
) |
|
(39,543 |
) |
Principal payoffs and amortization |
(15 |
) |
|
(37 |
) |
|
(52 |
) |
Loans held for sale, at end of period |
$ |
2,067 |
|
|
$ |
2,091 |
|
|
$ |
4,158 |
|
Allowance for Loan Losses
Activity in the allowance for loan losses was as follows for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
35,381 |
|
|
$ |
5,645 |
|
|
$ |
41,026 |
|
|
$ |
51,515 |
|
|
$ |
1,436 |
|
|
$ |
52,951 |
|
Charge-offs |
(662 |
) |
|
(137 |
) |
|
(799 |
) |
|
(1,221 |
) |
|
52 |
|
|
(1,169 |
) |
Recoveries on loans previously charged off |
995 |
|
|
— |
|
|
995 |
|
|
1,793 |
|
|
(352 |
) |
|
1,441 |
|
Net loan (charge-offs) recoveries |
333 |
|
|
(137 |
) |
|
196 |
|
|
572 |
|
|
(300 |
) |
|
272 |
|
(Negative provision) provision |
(1,455 |
) |
|
(60 |
) |
|
(1,515 |
) |
|
(2,619 |
) |
|
216 |
|
|
(2,403 |
) |
Balance at end of period |
$ |
34,259 |
|
|
$ |
5,448 |
|
|
$ |
39,707 |
|
|
$ |
49,468 |
|
|
$ |
1,352 |
|
|
$ |
50,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
|
Non-PCI Loans |
|
PCI Loans |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
$ |
37,494 |
|
|
$ |
5,441 |
|
|
$ |
42,935 |
|
|
$ |
51,640 |
|
|
$ |
1,026 |
|
|
$ |
52,666 |
|
Charge-offs |
(1,299 |
) |
|
(137 |
) |
|
(1,436 |
) |
|
(1,255 |
) |
|
— |
|
|
(1,255 |
) |
Recoveries on loans previously charged off |
1,248 |
|
|
— |
|
|
1,248 |
|
|
3,485 |
|
|
— |
|
|
3,485 |
|
Net loan (charge-offs) recoveries |
(51 |
) |
|
(137 |
) |
|
(188 |
) |
|
2,230 |
|
|
— |
|
|
2,230 |
|
(Negative provision) provision |
(3,184 |
) |
|
144 |
|
|
(3,040 |
) |
|
(4,402 |
) |
|
326 |
|
|
(4,076 |
) |
Balance at end of period |
$ |
34,259 |
|
|
$ |
5,448 |
|
|
$ |
39,707 |
|
|
$ |
49,468 |
|
|
$ |
1,352 |
|
|
$ |
50,820 |
|
Management believes the allowance for loan losses is appropriate to provide for probable losses inherent in the loan portfolio. However, the allowance is an estimate that is inherently uncertain and depends on the outcome of future events. Management’s estimates are based on previous loss experience; volume, growth and composition of the loan portfolio; the value of collateral; and current economic conditions. Our lending is concentrated generally in real estate, commercial, SBA and trade finance lending to small and middle market businesses primarily in California, Texas and Illinois.
The following table details the information on the allowance for loan losses by portfolio segment as of and for the three months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
Commercial and Industrial |
|
Consumer |
|
Unallocated |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses on Non-PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
28,278 |
|
|
$ |
6,289 |
|
|
$ |
255 |
|
|
$ |
559 |
|
|
$ |
35,381 |
|
Charge-offs |
(156 |
) |
|
(506 |
) |
|
— |
|
|
— |
|
|
(662 |
) |
Recoveries on loans previously charged off |
97 |
|
|
845 |
|
|
53 |
|
|
— |
|
|
995 |
|
Negative provision |
(103 |
) |
|
(1,126 |
) |
|
(66 |
) |
|
(160 |
) |
|
(1,455 |
) |
Ending balance |
$ |
28,116 |
|
|
$ |
5,502 |
|
|
$ |
242 |
|
|
$ |
399 |
|
|
$ |
34,259 |
|
Ending balance: individually evaluated for impairment |
$ |
2,589 |
|
|
$ |
422 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,011 |
|
Ending balance: collectively evaluated for impairment |
$ |
25,527 |
|
|
$ |
5,080 |
|
|
$ |
242 |
|
|
$ |
399 |
|
|
$ |
31,248 |
|
Non-PCI loans receivable: |
|
|
|
|
|
|
|
|
|
Ending balance |
$ |
3,116,749 |
|
|
$ |
292,927 |
|
|
$ |
24,614 |
|
|
$ |
— |
|
|
$ |
3,434,290 |
|
Ending balance: individually evaluated for impairment |
$ |
20,412 |
|
|
$ |
5,089 |
|
|
$ |
686 |
|
|
$ |
— |
|
|
$ |
26,187 |
|
Ending balance: collectively evaluated for impairment |
$ |
3,096,337 |
|
|
$ |
287,838 |
|
|
$ |
23,928 |
|
|
$ |
— |
|
|
$ |
3,408,103 |
|
Allowance for loan losses on PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
5,599 |
|
|
$ |
44 |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
5,645 |
|
Charge-offs |
(137 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(137 |
) |
(Negative provision) provision |
(62 |
) |
|
(3 |
) |
|
5 |
|
|
— |
|
|
(60 |
) |
Ending balance: acquired with deteriorated credit quality |
$ |
5,400 |
|
|
$ |
41 |
|
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
5,448 |
|
|
|
|
|
|
|
|
|
|
|
PCI loans receivable |
$ |
14,823 |
|
|
$ |
146 |
|
|
$ |
51 |
|
|
$ |
— |
|
|
$ |
15,020 |
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses on Non-PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
42,550 |
|
|
$ |
7,786 |
|
|
$ |
185 |
|
|
$ |
994 |
|
|
$ |
51,515 |
|
Charge-offs |
(101 |
) |
|
(1,120 |
) |
|
— |
|
|
— |
|
|
(1,221 |
) |
Recoveries on loans previously charged off |
1,263 |
|
|
530 |
|
|
— |
|
|
— |
|
|
1,793 |
|
(Negative provision) provision |
(3,814 |
) |
|
1,049 |
|
|
(13 |
) |
|
159 |
|
|
(2,619 |
) |
Ending balance |
$ |
39,898 |
|
|
$ |
8,245 |
|
|
$ |
172 |
|
|
$ |
1,153 |
|
|
$ |
49,468 |
|
Ending balance: individually evaluated for impairment |
$ |
3,798 |
|
|
$ |
1,503 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,301 |
|
Ending balance: collectively evaluated for impairment |
$ |
36,100 |
|
|
$ |
6,742 |
|
|
$ |
172 |
|
|
$ |
1,153 |
|
|
$ |
44,167 |
|
Non-PCI loans receivable: |
|
|
|
|
|
|
|
|
|
Ending balance |
$ |
2,553,068 |
|
|
$ |
260,922 |
|
|
$ |
26,274 |
|
|
$ |
— |
|
|
$ |
2,840,264 |
|
Ending balance: individually evaluated for impairment |
$ |
32,795 |
|
|
$ |
10,401 |
|
|
$ |
1,807 |
|
|
$ |
— |
|
|
$ |
45,003 |
|
Ending balance: collectively evaluated for impairment |
$ |
2,520,273 |
|
|
$ |
250,521 |
|
|
$ |
24,467 |
|
|
$ |
— |
|
|
$ |
2,795,261 |
|
Allowance for loan losses on PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
1,318 |
|
|
$ |
118 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,436 |
|
Charge-offs |
52 |
|
|
— |
|
|
— |
|
|
— |
|
|
52 |
|
Recoveries on loans previously charged off |
— |
|
|
(352 |
) |
|
— |
|
|
— |
|
|
(352 |
) |
(Negative provision) provision |
(81 |
) |
|
297 |
|
|
— |
|
|
— |
|
|
216 |
|
Ending balance: acquired with deteriorated credit quality |
$ |
1,289 |
|
|
$ |
63 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,352 |
|
|
|
|
|
|
|
|
|
|
|
PCI loans receivable |
$ |
33,598 |
|
|
$ |
267 |
|
|
$ |
43 |
|
|
$ |
— |
|
|
$ |
33,908 |
|
The following table details the information on the allowance for loan losses by portfolio segment as of and for the six months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
Commercial and Industrial |
|
Consumer |
|
Unallocated |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses on Non-PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
29,800 |
|
|
$ |
7,081 |
|
|
$ |
242 |
|
|
$ |
371 |
|
|
$ |
37,494 |
|
Charge-offs |
(691 |
) |
|
(608 |
) |
|
— |
|
|
— |
|
|
(1,299 |
) |
Recoveries on loans previously charged off |
190 |
|
|
1,005 |
|
|
53 |
|
|
— |
|
|
1,248 |
|
(Negative provision) provision |
(1,183 |
) |
|
(1,976 |
) |
|
(53 |
) |
|
28 |
|
|
(3,184 |
) |
Ending balance |
$ |
28,116 |
|
|
$ |
5,502 |
|
|
$ |
242 |
|
|
$ |
399 |
|
|
$ |
34,259 |
|
Ending balance: individually evaluated for impairment |
$ |
2,589 |
|
|
$ |
422 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,011 |
|
Ending balance: collectively evaluated for impairment |
$ |
25,527 |
|
|
$ |
5,080 |
|
|
$ |
242 |
|
|
$ |
399 |
|
|
$ |
31,248 |
|
Non-PCI loans receivable: |
|
|
|
|
|
|
|
|
|
Ending balance |
$ |
3,116,749 |
|
|
$ |
292,927 |
|
|
$ |
24,614 |
|
|
$ |
— |
|
|
$ |
3,434,290 |
|
Ending balance: individually evaluated for impairment |
$ |
20,412 |
|
|
$ |
5,089 |
|
|
$ |
686 |
|
|
$ |
— |
|
|
$ |
26,187 |
|
Ending balance: collectively evaluated for impairment |
$ |
3,096,337 |
|
|
$ |
287,838 |
|
|
$ |
23,928 |
|
|
$ |
— |
|
|
$ |
3,408,103 |
|
Allowance for loan losses on PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
5,397 |
|
|
$ |
42 |
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
5,441 |
|
Charge-offs |
(137 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(137 |
) |
Provision (negative provision) |
140 |
|
|
(1 |
) |
|
5 |
|
|
— |
|
|
144 |
|
Ending balance: acquired with deteriorated credit quality |
$ |
5,400 |
|
|
$ |
41 |
|
|
$ |
7 |
|
|
$ |
— |
|
|
$ |
5,448 |
|
|
|
|
|
|
|
|
|
|
|
PCI loans receivable |
$ |
14,823 |
|
|
$ |
146 |
|
|
$ |
51 |
|
|
$ |
— |
|
|
$ |
15,020 |
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses on Non-PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
41,194 |
|
|
$ |
9,142 |
|
|
$ |
220 |
|
|
$ |
1,084 |
|
|
$ |
51,640 |
|
Charge-offs |
(101 |
) |
|
(1,154 |
) |
|
— |
|
|
— |
|
|
(1,255 |
) |
Recoveries on loans previously charged off |
1,295 |
|
|
2,190 |
|
|
— |
|
|
— |
|
|
3,485 |
|
(Negative provision) provision |
(2,490 |
) |
|
(1,933 |
) |
|
(48 |
) |
|
69 |
|
|
(4,402 |
) |
Ending balance |
$ |
39,898 |
|
|
$ |
8,245 |
|
|
$ |
172 |
|
|
$ |
1,153 |
|
|
$ |
49,468 |
|
Ending balance: individually evaluated for impairment |
$ |
3,798 |
|
|
$ |
1,503 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,301 |
|
Ending balance: collectively evaluated for impairment |
$ |
36,100 |
|
|
$ |
6,742 |
|
|
$ |
172 |
|
|
$ |
1,153 |
|
|
$ |
44,167 |
|
Non-PCI loans receivable: |
|
|
|
|
|
|
|
|
|
Ending balance |
$ |
2,553,068 |
|
|
$ |
260,922 |
|
|
$ |
26,274 |
|
|
$ |
— |
|
|
$ |
2,840,264 |
|
Ending balance: individually evaluated for impairment |
$ |
32,795 |
|
|
$ |
10,401 |
|
|
$ |
1,807 |
|
|
$ |
— |
|
|
$ |
45,003 |
|
Ending balance: collectively evaluated for impairment |
$ |
2,520,273 |
|
|
$ |
250,521 |
|
|
$ |
24,467 |
|
|
$ |
— |
|
|
$ |
2,795,261 |
|
Allowance for loan losses on PCI loans: |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
895 |
|
|
$ |
131 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,026 |
|
Provision (negative provision) |
394 |
|
|
(68 |
) |
|
— |
|
|
— |
|
|
326 |
|
Ending balance: acquired with deteriorated credit quality |
$ |
1,289 |
|
|
$ |
63 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,352 |
|
|
|
|
|
|
|
|
|
|
|
PCI loans receivable |
$ |
33,598 |
|
|
$ |
267 |
|
|
$ |
43 |
|
|
$ |
— |
|
|
$ |
33,908 |
|
Loan Quality Indicators
As part of the on-going monitoring of the credit quality of our loan portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade, from 0 to 8, for each loan in our loan portfolio. Third party loan reviews are performed throughout the year. 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 in all respects 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 incorporates all performing loans with no credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.
Special Mention: A special mention credit, grade 5, has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment prospects 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 credit, grade 6, has a well-defined weakness that jeopardizes the liquidation of the debt. A credit 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 credit, 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 credit, 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 an active bank asset 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 are 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 June 30, 2016 and December 31, 2015, pass/pass-watch, special mention and classified loans (excluding PCI loans), disaggregated by loan class, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass/Pass-Watch |
|
Special Mention |
|
Classified |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
Retail |
$ |
783,397 |
|
|
$ |
4,786 |
|
|
$ |
2,785 |
|
|
$ |
790,968 |
|
Hospitality |
589,285 |
|
|
6,266 |
|
|
7,275 |
|
|
602,826 |
|
Gas station |
269,141 |
|
|
3,260 |
|
|
5,472 |
|
|
277,873 |
|
Other |
1,110,781 |
|
|
5,203 |
|
|
7,211 |
|
|
1,123,195 |
|
Construction |
26,382 |
|
|
— |
|
|
— |
|
|
26,382 |
|
Residential property |
294,906 |
|
|
53 |
|
|
546 |
|
|
295,505 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
Commercial term |
138,316 |
|
|
2,064 |
|
|
3,107 |
|
|
143,487 |
|
Commercial lines of credit |
121,108 |
|
|
195 |
|
|
23 |
|
|
121,326 |
|
International loans |
25,994 |
|
|
2,120 |
|
|
— |
|
|
28,114 |
|
Consumer loans |
23,642 |
|
|
5 |
|
|
967 |
|
|
24,614 |
|
Total Non-PCI loans |
$ |
3,382,952 |
|
|
$ |
23,952 |
|
|
$ |
27,386 |
|
|
$ |
3,434,290 |
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
Retail |
$ |
722,483 |
|
|
$ |
9,519 |
|
|
$ |
3,499 |
|
|
$ |
735,501 |
|
Hospitality |
517,462 |
|
|
9,604 |
|
|
12,279 |
|
|
539,345 |
|
Gas station |
309,598 |
|
|
5,897 |
|
|
3,868 |
|
|
319,363 |
|
Other |
953,839 |
|
|
8,662 |
|
|
10,742 |
|
|
973,243 |
|
Construction |
23,387 |
|
|
— |
|
|
— |
|
|
23,387 |
|
Residential property |
232,862 |
|
|
58 |
|
|
1,959 |
|
|
234,879 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
Commercial term |
145,773 |
|
|
2,370 |
|
|
4,459 |
|
|
152,602 |
|
Commercial lines of credit |
127,579 |
|
|
195 |
|
|
450 |
|
|
128,224 |
|
International loans |
29,719 |
|
|
2,160 |
|
|
— |
|
|
31,879 |
|
Consumer loans |
22,707 |
|
|
91 |
|
|
2,081 |
|
|
24,879 |
|
Total Non-PCI loans |
$ |
3,085,409 |
|
|
$ |
38,556 |
|
|
$ |
39,337 |
|
|
$ |
3,163,302 |
|
The following is an aging analysis of loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days Past Due |
|
60-89 Days Past Due |
|
90 Days or More Past Due |
|
Total Past Due |
|
Current |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
343 |
|
|
$ |
— |
|
|
$ |
339 |
|
|
$ |
682 |
|
|
$ |
790,286 |
|
|
$ |
790,968 |
|
Hospitality |
1,690 |
|
|
569 |
|
|
127 |
|
|
2,386 |
|
|
600,440 |
|
|
602,826 |
|
Gas station |
— |
|
|
— |
|
|
4,286 |
|
|
4,286 |
|
|
273,587 |
|
|
277,873 |
|
Other |
452 |
|
|
893 |
|
|
1,875 |
|
|
3,220 |
|
|
1,119,975 |
|
|
1,123,195 |
|
Construction |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
26,382 |
|
|
26,382 |
|
Residential property |
— |
|
|
— |
|
|
104 |
|
|
104 |
|
|
295,401 |
|
|
295,505 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
112 |
|
|
50 |
|
|
444 |
|
|
606 |
|
|
142,881 |
|
|
143,487 |
|
Commercial lines of credit |
— |
|
|
— |
|
|
23 |
|
|
23 |
|
|
121,303 |
|
|
121,326 |
|
International loans |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
28,114 |
|
|
28,114 |
|
Consumer loans |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
24,614 |
|
|
24,614 |
|
Total Non-PCI loans |
$ |
2,597 |
|
|
$ |
1,512 |
|
|
$ |
7,198 |
|
|
$ |
11,307 |
|
|
$ |
3,422,983 |
|
|
$ |
3,434,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
441 |
|
|
$ |
343 |
|
|
$ |
399 |
|
|
$ |
1,183 |
|
|
$ |
734,318 |
|
|
$ |
735,501 |
|
Hospitality |
1,250 |
|
|
49 |
|
|
3,840 |
|
|
5,139 |
|
|
534,206 |
|
|
539,345 |
|
Gas station |
959 |
|
|
406 |
|
|
1,517 |
|
|
2,882 |
|
|
316,481 |
|
|
319,363 |
|
Other |
1,144 |
|
|
661 |
|
|
1,636 |
|
|
3,441 |
|
|
969,802 |
|
|
973,243 |
|
Construction |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
23,387 |
|
|
23,387 |
|
Residential property |
— |
|
|
— |
|
|
396 |
|
|
396 |
|
|
234,483 |
|
|
234,879 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
420 |
|
|
253 |
|
|
458 |
|
|
1,131 |
|
|
151,471 |
|
|
152,602 |
|
Commercial lines of credit |
58 |
|
|
— |
|
|
392 |
|
|
450 |
|
|
127,774 |
|
|
128,224 |
|
International loans |
— |
|
|
497 |
|
|
— |
|
|
497 |
|
|
31,382 |
|
|
31,879 |
|
Consumer loans |
250 |
|
|
5 |
|
|
— |
|
|
255 |
|
|
24,624 |
|
|
24,879 |
|
Total Non-PCI loans |
$ |
4,522 |
|
|
$ |
2,214 |
|
|
$ |
8,638 |
|
|
$ |
15,374 |
|
|
$ |
3,147,928 |
|
|
$ |
3,163,302 |
|
There were no loans that were 90 days or more past due and accruing interest as of June 30, 2016 and 2015.
Impaired Loans
Loans are considered impaired when the Bank will be unable to collect all interest and principal payments per the contractual terms of the loan agreement, unless the loan is well-collateralized and in the process of collection; or they are classified as Troubled Debt Restructurings (“TDRs”) because, due to the financial difficulties of the borrowers, we have granted concessions to the borrowers we would not otherwise consider; or when current information or events make it unlikely to collect in full according to the contractual terms of the loan agreements; or there is a deterioration in the borrower’s financial condition that raises uncertainty as to timely collection of either principal or interest; or full payment of both interest and principal is in doubt according to the original contractual terms.
We evaluate loan impairment in accordance with applicable GAAP. Impaired loans are 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 is collateral dependent, less estimated costs to sell. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency is either charged off against the allowance for loan losses or we establish a specific allocation in the allowance for loan losses. Additionally, loans that are considered impaired are specifically excluded from the quarterly migration analysis when determining the amount of the allowance for loan losses required for the period.
The allowance for collateral-dependent loans is determined by calculating the difference between the outstanding loan balance and the value of the collateral as determined by recent appraisals. The allowance for collateral-dependent loans varies from loan to loan based on the collateral coverage of the loan at the time of designation as nonperforming. We continue to monitor the collateral coverage, using recent appraisals, on these loans on a quarterly basis and adjust the allowance accordingly.
The following tables provide information on impaired loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recorded
Investment |
|
Unpaid
Principal
Balance |
|
With No
Related
Allowance
Recorded |
|
With an
Allowance
Recorded |
|
Related
Allowance |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
Retail |
$ |
2,421 |
|
|
$ |
2,723 |
|
|
$ |
1,997 |
|
|
$ |
424 |
|
|
$ |
31 |
|
Hospitality |
3,357 |
|
|
3,774 |
|
|
3,255 |
|
|
102 |
|
|
2,496 |
|
Gas station |
4,623 |
|
|
5,162 |
|
|
3,882 |
|
|
741 |
|
|
12 |
|
Other |
7,482 |
|
|
8,696 |
|
|
7,088 |
|
|
394 |
|
|
50 |
|
Residential property |
2,529 |
|
|
2,576 |
|
|
2,529 |
|
|
— |
|
|
— |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
Commercial term |
5,066 |
|
|
5,127 |
|
|
1,070 |
|
|
3,996 |
|
|
422 |
|
Commercial lines of credit |
23 |
|
|
123 |
|
|
23 |
|
|
— |
|
|
— |
|
International loans |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer loans |
686 |
|
|
748 |
|
|
686 |
|
|
— |
|
|
— |
|
Total Non-PCI loans |
$ |
26,187 |
|
|
$ |
28,929 |
|
|
$ |
20,530 |
|
|
$ |
5,657 |
|
|
$ |
3,011 |
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
Retail |
$ |
2,597 |
|
|
$ |
2,892 |
|
|
$ |
2,435 |
|
|
$ |
162 |
|
|
$ |
27 |
|
Hospitality |
7,168 |
|
|
7,538 |
|
|
2,873 |
|
|
4,295 |
|
|
3,068 |
|
Gas station |
5,393 |
|
|
5,815 |
|
|
4,400 |
|
|
993 |
|
|
112 |
|
Other |
9,288 |
|
|
10,810 |
|
|
7,219 |
|
|
2,069 |
|
|
647 |
|
Residential property |
2,895 |
|
|
3,081 |
|
|
2,608 |
|
|
287 |
|
|
4 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
Commercial term |
5,257 |
|
|
5,621 |
|
|
1,858 |
|
|
3,399 |
|
|
457 |
|
Commercial lines of credit |
381 |
|
|
493 |
|
|
280 |
|
|
101 |
|
|
100 |
|
International loans |
1,215 |
|
|
1,215 |
|
|
647 |
|
|
568 |
|
|
30 |
|
Consumer loans |
1,665 |
|
|
1,898 |
|
|
1,665 |
|
|
— |
|
|
— |
|
Total Non-PCI loans |
$ |
35,859 |
|
|
$ |
39,363 |
|
|
$ |
23,985 |
|
|
$ |
11,874 |
|
|
$ |
4,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
Average Recorded Investment |
|
Interest
Income
Recognized
|
|
Average Recorded Investment |
|
Interest
Income
Recognized
|
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
Retail |
$ |
2,434 |
|
|
$ |
44 |
|
|
$ |
2,653 |
|
|
$ |
85 |
|
Hospitality |
3,362 |
|
|
146 |
|
|
5,032 |
|
|
300 |
|
Gas station |
4,653 |
|
|
99 |
|
|
4,880 |
|
|
261 |
|
Other |
7,525 |
|
|
183 |
|
|
7,887 |
|
|
395 |
|
Construction |
— |
|
|
— |
|
|
— |
|
|
— |
|
Residential property |
2,537 |
|
|
27 |
|
|
2,653 |
|
|
57 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
Commercial term |
5,089 |
|
|
87 |
|
|
5,151 |
|
|
164 |
|
Commercial lines of credit |
28 |
|
|
4 |
|
|
37 |
|
|
9 |
|
International loans |
— |
|
|
— |
|
|
630 |
|
|
— |
|
Consumer loans |
690 |
|
|
8 |
|
|
692 |
|
|
16 |
|
Total Non-PCI loans |
$ |
26,318 |
|
|
$ |
598 |
|
|
$ |
29,615 |
|
|
$ |
1,287 |
|
|
|
|
|
|
|
|
|
June 30, 2015 |
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
Retail |
$ |
4,278 |
|
|
$ |
126 |
|
|
$ |
5,134 |
|
|
$ |
198 |
|
Hospitality |
7,128 |
|
|
118 |
|
|
6,700 |
|
|
300 |
|
Gas station |
8,712 |
|
|
189 |
|
|
8,352 |
|
|
282 |
|
Other |
11,294 |
|
|
196 |
|
|
10,774 |
|
|
404 |
|
Residential property |
2,689 |
|
|
28 |
|
|
2,896 |
|
|
60 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
Commercial term |
7,190 |
|
|
97 |
|
|
7,634 |
|
|
196 |
|
Commercial lines of credit |
2,071 |
|
|
29 |
|
|
2,255 |
|
|
36 |
|
International loans |
1,182 |
|
|
— |
|
|
1,271 |
|
|
— |
|
Consumer loans |
1,812 |
|
|
17 |
|
|
1,821 |
|
|
34 |
|
Total Non-PCI loans |
$ |
46,356 |
|
|
$ |
800 |
|
|
$ |
46,837 |
|
|
$ |
1,510 |
|
The following is a summary of interest foregone on impaired loans (excluding PCI loans) for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
(in thousands) |
Interest income that would have been recognized had impaired loans performed in accordance with their original terms |
$ |
718 |
|
|
$ |
1,177 |
|
|
$ |
1,611 |
|
|
$ |
1,917 |
|
Less: Interest income recognized on impaired loans |
(598 |
) |
|
(800 |
) |
|
(1,287 |
) |
|
(1,510 |
) |
Interest foregone on impaired loans |
$ |
120 |
|
|
$ |
377 |
|
|
$ |
324 |
|
|
$ |
407 |
|
There were no commitments to lend additional funds to borrowers whose loans are included in the table above.
Nonaccrual Loans and Nonperforming Assets
Loans are placed on nonaccrual status when, in the opinion of management, the full timely collection of principal or interest is in doubt. Generally, the accrual of interest is discontinued when principal or interest payments become more than 90 days past due, unless management believes the loan is adequately collateralized and in the process of collection. However, in certain instances, we may place a particular loan on nonaccrual status earlier, depending upon the individual circumstances surrounding the loan’s delinquency. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is reversed against current income. Subsequent collections of cash are applied as principal reductions when received, except when the ultimate collectability of principal is probable, in which case interest payments are credited to income. Nonaccrual loans may be restored to accrual status when principal and interest payments become current and full repayment is expected.
The following table details nonaccrual loans (excluding PCI loans), disaggregated by loan class, as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
(in thousands) |
Real estate loans: |
|
|
|
Commercial property |
|
|
|
Retail |
$ |
832 |
|
|
$ |
946 |
|
Hospitality |
1,956 |
|
|
5,790 |
|
Gas station |
4,540 |
|
|
2,774 |
|
Other |
3,366 |
|
|
4,068 |
|
Residential property |
252 |
|
|
1,386 |
|
Commercial and industrial loans: |
|
|
|
Commercial term |
966 |
|
|
2,193 |
|
Commercial lines of credit |
23 |
|
|
450 |
|
Consumer loans |
406 |
|
|
1,511 |
|
Total nonaccrual Non-PCI loans |
$ |
12,341 |
|
|
$ |
19,118 |
|
The following table details nonperforming assets (excluding PCI loans) as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31, 2015 |
|
(in thousands) |
Nonaccrual Non-PCI loans |
$ |
12,341 |
|
|
$ |
19,118 |
|
Loans 90 days or more past due and still accruing |
— |
|
|
— |
|
Total nonperforming Non-PCI loans |
12,341 |
|
|
19,118 |
|
OREO |
11,846 |
|
|
8,511 |
|
Total nonperforming assets |
$ |
24,187 |
|
|
$ |
27,629 |
|
As of June 30, 2016, OREO consisted of 17 properties with a combined carrying value of $11.8 million. Of the $11.8 million, $6.7 million were OREO acquired in the Central Bancorp Inc. ("CBI") acquisition on August 31, 2014, or were obtained as a result of PCI loan collateral foreclosures subsequent to the acquisition date. As of December 31, 2015, OREO consisted of 14 properties with a combined carrying value of $8.5 million, including a $7.4 million OREO acquired in the CBI acquisition or were obtained as a result of PCI loan collateral foreclosures subsequent to the acquisition date.
Troubled Debt Restructurings
The following table details TDRs (excluding PCI loans), disaggregated by concession type and loan type, as of June 30, 2016 and December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual TDRs |
|
Accrual TDRs |
|
Deferral
of
Principal |
|
Deferral
of
Principal
and
Interest |
|
Reduction
of
Principal
and
Interest |
|
Extension
of
Maturity |
|
Total |
|
Deferral
of
Principal |
|
Deferral
of
Principal
and
Interest |
|
Reduction
of
Principal
and
Interest |
|
Extension
of
Maturity |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
312 |
|
|
$ |
312 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,247 |
|
|
|
|
$ |
1,247 |
|
Hospitality |
1,152 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,152 |
|
|
409 |
|
|
58 |
|
|
— |
|
|
|
|
467 |
|
Gas station |
886 |
|
|
— |
|
|
— |
|
|
— |
|
|
886 |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Other |
399 |
|
|
727 |
|
|
177 |
|
|
— |
|
|
1,303 |
|
|
2,752 |
|
|
|
|
307 |
|
|
1,362 |
|
|
4,421 |
|
Residential property |
— |
|
|
|
|
|
|
|
|
— |
|
|
795 |
|
|
|
|
— |
|
|
294 |
|
|
1,089 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
Commercial term |
39 |
|
|
6 |
|
|
148 |
|
|
466 |
|
|
659 |
|
|
180 |
|
|
207 |
|
|
2,561 |
|
|
969 |
|
|
3,917 |
|
Commercial lines of credit |
— |
|
|
|
|
— |
|
|
23 |
|
|
23 |
|
|
— |
|
|
|
|
|
|
|
|
— |
|
Consumer loans |
|
|
|
|
— |
|
|
|
|
— |
|
|
250 |
|
|
|
|
122 |
|
|
|
|
372 |
|
Total Non-PCI TDR loans |
$ |
2,476 |
|
|
$ |
733 |
|
|
$ |
325 |
|
|
$ |
801 |
|
|
$ |
4,335 |
|
|
$ |
4,386 |
|
|
$ |
265 |
|
|
$ |
4,237 |
|
|
$ |
2,625 |
|
|
$ |
11,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
344 |
|
|
$ |
344 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,227 |
|
|
$ |
— |
|
|
$ |
1,227 |
|
Hospitality |
1,216 |
|
|
28 |
|
|
— |
|
|
— |
|
|
1,244 |
|
|
414 |
|
|
— |
|
|
— |
|
|
— |
|
|
414 |
|
Gas station |
959 |
|
|
— |
|
|
— |
|
|
— |
|
|
959 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other |
— |
|
|
1,301 |
|
|
216 |
|
|
8 |
|
|
1,525 |
|
|
3,537 |
|
|
— |
|
|
322 |
|
|
1,378 |
|
|
5,237 |
|
Residential property |
689 |
|
|
— |
|
|
— |
|
|
— |
|
|
689 |
|
|
— |
|
|
— |
|
|
— |
|
|
299 |
|
|
299 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
45 |
|
|
— |
|
|
997 |
|
|
679 |
|
|
1,721 |
|
|
40 |
|
|
214 |
|
|
1,673 |
|
|
945 |
|
|
2,872 |
|
Commercial lines of credit |
222 |
|
|
— |
|
|
— |
|
|
58 |
|
|
280 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Consumer loans |
— |
|
|
— |
|
|
116 |
|
|
— |
|
|
116 |
|
|
250 |
|
|
— |
|
|
— |
|
|
— |
|
|
250 |
|
Total Non-PCI TDR loans |
$ |
3,131 |
|
|
$ |
1,329 |
|
|
$ |
1,329 |
|
|
$ |
1,089 |
|
|
$ |
6,878 |
|
|
$ |
4,241 |
|
|
$ |
214 |
|
|
$ |
3,222 |
|
|
$ |
2,622 |
|
|
$ |
10,299 |
|
As of June 30, 2016 and December 31, 2015, total TDRs were $15.8 million and $17.2 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 through payment structure modifications such as reducing the amount of principal and interest due monthly and/or allowing for interest only monthly payments for three months or more. All TDRs are impaired and are individually evaluated for specific impairment using one of these three criteria: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price; or (3) the fair value of the collateral if the loan is collateral dependent. At June 30, 2016 and December 31, 2015, $0.4 million and $1.0 million, respectively, of reserves relating to these loans were included in the allowance for loan losses.
The following table details TDRs (excluding PCI loans), disaggregated by loan class, for the three months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
Number of
Loans |
|
Pre-
Modification
Outstanding
Recorded
Investment |
|
Post-
Modification
Outstanding
Recorded
Investment |
|
Number of
Loans |
|
Pre-
Modification
Outstanding
Recorded
Investment |
|
Post-
Modification
Outstanding
Recorded
Investment |
|
(in thousands, except number of loans) |
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
Other (1)
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
1 |
|
|
$ |
313 |
|
|
$ |
313 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial term (2)
|
2 |
|
|
21 |
|
|
9 |
|
|
1 |
|
|
9 |
|
|
9 |
|
Consumer loans (3)
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
250 |
|
|
250 |
|
Total Non-PCI TDR loans |
2 |
|
|
$ |
21 |
|
|
$ |
9 |
|
|
3 |
|
|
$ |
572 |
|
|
$ |
572 |
|
|
|
(1) |
Includes a modification of $313,000 through a payment deferral for the three months ended June 30, 2015.
|
|
|
(2) |
Includes a modification of $6,000 through a payment deferral and $3,000 through an extension of maturity for the three months ended June 30, 2016, and a modifications of $9,000 through a reduction of principal or accrued interest for the three months ended June 30, 2015.
|
|
|
(3) |
Includes a modification of $250,000 through a payment deferral for the three months ended June 30, 2015.
|
The following table details TDRs (excluding PCI loans), disaggregated by loan class, for the six months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
Number of
Loans |
|
Pre-
Modification
Outstanding
Recorded
Investment |
|
Post-
Modification
Outstanding
Recorded
Investment |
|
Number of
Loans |
|
Pre-
Modification
Outstanding
Recorded
Investment |
|
Post-
Modification
Outstanding
Recorded
Investment |
|
(in thousands, except number of loans) |
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
Retail (1)
|
1 |
|
|
$ |
21 |
|
|
$ |
23 |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
Other (2)
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
313 |
|
|
313 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial term (3)
|
4 |
|
|
235 |
|
|
214 |
|
|
5 |
|
|
553 |
|
|
486 |
|
Consumer loans (4)
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
250 |
|
|
250 |
|
Total Non-PCI TDR loans |
5 |
|
|
$ |
256 |
|
|
$ |
237 |
|
|
7 |
|
|
$ |
1,116 |
|
|
$ |
1,049 |
|
|
|
(1) |
Includes a modification of $23,000 through a reduction of principal or accrued interest for the six months ended June 30, 2016.
|
|
|
(2) |
Includes a modification of $313,000 through a payment deferral for the six months ended June 30, 2015.
|
|
|
(3) |
Includes modifications of $156,000 through payment deferrals, $3,000 through a reduction of principal or accrued interest and $55,000 through an extension of maturity for the six months ended June 30, 2016, and modifications of $476,000 through extensions of maturity and a modification of $9,000 through a reduction of principal or accrued interest for the six months ended June 30, 2015.
|
|
|
(4) |
Includes a modification of $250,000 through a payment deferral for the six months ended June 30, 2015.
|
For the restructured loans on accrual status, we determined that, based on the financial capabilities of the borrowers at the time of the loan restructuring and the borrowers’ past performance in the payment of debt service under the previous loan terms, performance and collection under the revised terms are probable.
The following table details TDRs (excluding PCI loans) that defaulted subsequent to the modifications occurring within the previous 12 months, disaggregated by loan class, for the three months ended June 30, 2016 and 2015, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
Number of Loans |
|
Recorded Investment |
|
Number of Loans |
|
Recorded Investment |
|
(in thousands, except number of loans) |
Real estate loans: |
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
Hospitality |
— |
|
|
$ |
— |
|
|
1 |
|
|
$ |
821 |
|
Gas station |
— |
|
|
— |
|
|
1 |
|
|
1,856 |
|
Other |
— |
|
|
— |
|
|
1 |
|
|
379 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
Commercial term |
1 |
|
|
55 |
|
|
— |
|
|
— |
|
Total Non-PCI TDR loans |
1 |
|
|
$ |
55 |
|
|
3 |
|
|
$ |
3,056 |
|
The following table details TDRs (excluding PCI loans) that defaulted subsequent to the modifications occurring within the previous 12 months, disaggregated by loan class, for the six months ended June 30, 2016 and 2015, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
June 30, 2015 |
|
Number of Loans |
|
Recorded Investment |
|
Number of Loans |
|
Recorded Investment |
|
(in thousands, except number of loans) |
Real estate loans: |
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
Retail |
— |
|
|
$ |
— |
|
|
1 |
|
|
$ |
821 |
|
Gas station |
— |
|
|
— |
|
|
1 |
|
|
1,856 |
|
Other |
1 |
|
|
399 |
|
|
1 |
|
|
379 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
Commercial term |
2 |
|
|
85 |
|
|
— |
|
|
— |
|
Total Non-PCI TDR loans |
3 |
|
|
$ |
484 |
|
|
3 |
|
|
$ |
3,056 |
|
Purchased Credit Impaired Loans
As part of the acquisition of CBI, the Company purchased loans for which there was, at acquisition, evidence of deterioration of credit quality subsequent to origination and it was probable that all contractually required payments would not be collected. Outstanding balance of PCI loans, the undiscounted sum of all amounts including amounts deemed principal, interest, fees and penalties, were $19.1 million and $30.9 million, respectively as of June 30, 2016 and December 31, 2015.
For PCI loans, at the time of acquisition we (i) calculated the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”) and (ii) estimated the amount and timing of undiscounted expected principal and interest payments (the “undiscounted expected cash flows”). The difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference represents an estimate of the loss exposure of principal and interest related to the PCI loan portfolios; such amount is subject to change over time based on the performance of such loans. The carrying value of PCI loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income.
The excess of expected cash flows at acquisition over the initial fair value of acquired impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the loans using the effective yield. If estimated cash flows are indeterminable, the recognition of interest income will cease to be recognized.
At acquisition, the Company may aggregate PCI loans into pools having common credit risk characteristics such as product type, geographic location and risk rating. Increases in expected cash flows over those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in the amount and changes in the timing of expected cash flows compared to those previously estimated decrease the accretable yield and usually result in a provision for loan losses and the establishment of an allowance for loan losses. As the accretable yield increases or decreases from changes in cash flow expectations, the offset is a decrease or increase to the nonaccretable difference. The accretable yield is measured at each financial reporting date based on information then currently available and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans.
The Company removes loans from loan pools when the Company receives payment in settlement with the borrower, sells the loan, or foreclose upon the collateral securing the loan. The Company recognizes "Disposition gain on Purchased Credit Impaired Loans" when the cash proceeds or the amount received are in excess of the loan's carrying amount. The removal of the loan from the loan pool and the recognition of disposition gains do not affect the then applicable loan pool accretable yield.
The following table summarizes the changes in carrying value of PCI loans during the six months ended June 30, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
Carrying Amount |
|
Accretable Yield |
|
(in thousands) |
Balance at January 1, 2016 |
$ |
14,573 |
|
|
$ |
(5,944 |
) |
Accretion |
753 |
|
|
753 |
|
Payments received |
(6,713 |
) |
|
— |
|
Disposal/transfer to OREO |
1,103 |
|
|
— |
|
Change in expected cash flows, net |
— |
|
|
683 |
|
Provision for credit losses |
(144 |
) |
|
— |
|
Balance at June 30, 2016 |
$ |
9,572 |
|
|
$ |
(4,508 |
) |
|
|
|
|
Balance at January 1, 2015 |
$ |
43,475 |
|
|
$ |
(11,025 |
) |
Accretion |
1,758 |
|
|
1,758 |
|
Payments received |
(13,792 |
) |
|
— |
|
Disposal/transfer to OREO |
1,441 |
|
|
— |
|
Change in expected cash flows, net |
— |
|
|
92 |
|
Provision for credit losses |
(326 |
) |
|
— |
|
Balance at June 30, 2015 |
$ |
32,556 |
|
|
$ |
(9,175 |
) |
As of June 30, 2016 and December 31, 2015, pass/pass-watch, special mention and classified PCI loans, disaggregated by loan class, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass/Pass-Watch |
|
Special Mention |
|
Classified |
|
Total |
|
Allowance |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
— |
|
|
|
|
$ |
2,543 |
|
|
$ |
2,543 |
|
|
$ |
252 |
|
|
$ |
2,291 |
|
Hospitality |
181 |
|
|
|
|
3,069 |
|
|
3,250 |
|
|
32 |
|
|
3,218 |
|
Gas station |
79 |
|
|
153 |
|
|
2,656 |
|
|
2,888 |
|
|
527 |
|
|
2,361 |
|
Other |
— |
|
|
|
|
5,151 |
|
|
5,151 |
|
|
4,503 |
|
|
648 |
|
Residential property |
985 |
|
|
|
|
6 |
|
|
991 |
|
|
86 |
|
|
905 |
|
Commercial and industrial loans: |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
— |
|
|
|
|
146 |
|
|
146 |
|
|
41 |
|
|
105 |
|
Consumer loans |
— |
|
|
|
|
51 |
|
|
51 |
|
|
7 |
|
|
44 |
|
Total PCI loans |
$ |
1,245 |
|
|
$ |
153 |
|
|
$ |
13,622 |
|
|
$ |
15,020 |
|
|
$ |
5,448 |
|
|
$ |
9,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
— |
|
|
$ |
— |
|
|
$ |
4,849 |
|
|
$ |
4,849 |
|
|
$ |
269 |
|
|
$ |
4,580 |
|
Hospitality |
186 |
|
|
— |
|
|
3,894 |
|
|
4,080 |
|
|
88 |
|
|
3,992 |
|
Gas station |
— |
|
|
176 |
|
|
4,116 |
|
|
4,292 |
|
|
477 |
|
|
3,815 |
|
Other |
— |
|
|
— |
|
|
5,418 |
|
|
5,418 |
|
|
4,412 |
|
|
1,006 |
|
Residential property |
999 |
|
|
— |
|
|
158 |
|
|
1,157 |
|
|
151 |
|
|
1,006 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
— |
|
|
— |
|
|
171 |
|
|
171 |
|
|
42 |
|
|
129 |
|
Consumer loans |
— |
|
|
— |
|
|
47 |
|
|
47 |
|
|
2 |
|
|
45 |
|
Total PCI loans |
$ |
1,185 |
|
|
$ |
176 |
|
|
$ |
18,653 |
|
|
$ |
20,014 |
|
|
$ |
5,441 |
|
|
$ |
14,573 |
|
Loans accounted for as PCI are generally considered accruing and performing loans as the accretable discount is accreted to interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. If the timing and amount of future cash flows is not reasonably estimable, the loans are classified as nonaccrual loans and interest income is not recognized until the timing and amount of future cash flows can be reasonably estimated. As of June 30, 2016 and December 31, 2015, we had no PCI loans on nonaccrual status and included in the delinquency table below.
The following table presents a summary of the borrowers' underlying payment status of PCI loans as of the dates indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days Past Due |
|
60-89 Days Past Due |
|
90 Days or More Past Due |
|
Total Past Due |
|
Current |
|
Total |
|
Allowance Amount |
|
Total |
|
(in thousands) |
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
190 |
|
|
$ |
58 |
|
|
$ |
945 |
|
|
$ |
1,193 |
|
|
$ |
1,350 |
|
|
$ |
2,543 |
|
|
$ |
252 |
|
|
$ |
2,291 |
|
Hospitality |
|
|
|
|
91 |
|
|
91 |
|
|
3,159 |
|
|
3,250 |
|
|
32 |
|
|
3,218 |
|
Gas station |
— |
|
|
|
|
390 |
|
|
390 |
|
|
2,498 |
|
|
2,888 |
|
|
527 |
|
|
2,361 |
|
Other |
2 |
|
|
|
|
4,985 |
|
|
4,987 |
|
|
164 |
|
|
5,151 |
|
|
4,503 |
|
|
648 |
|
Residential property |
|
|
|
|
6 |
|
|
6 |
|
|
985 |
|
|
991 |
|
|
86 |
|
|
905 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
|
|
— |
|
|
7 |
|
|
7 |
|
|
139 |
|
|
146 |
|
|
41 |
|
|
105 |
|
Consumer loans |
|
|
11 |
|
|
40 |
|
|
51 |
|
|
|
|
51 |
|
|
7 |
|
|
44 |
|
Total PCI loans |
$ |
192 |
|
|
$ |
69 |
|
|
$ |
6,464 |
|
|
$ |
6,725 |
|
|
$ |
8,295 |
|
|
$ |
15,020 |
|
|
$ |
5,448 |
|
|
$ |
9,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail |
$ |
— |
|
|
$ |
267 |
|
|
$ |
1,109 |
|
|
$ |
1,376 |
|
|
$ |
3,473 |
|
|
$ |
4,849 |
|
|
$ |
269 |
|
|
$ |
4,580 |
|
Hospitality |
— |
|
|
9 |
|
|
154 |
|
|
163 |
|
|
3,917 |
|
|
4,080 |
|
|
88 |
|
|
3,992 |
|
Gas station |
— |
|
|
— |
|
|
457 |
|
|
457 |
|
|
3,835 |
|
|
4,292 |
|
|
477 |
|
|
3,815 |
|
Other |
4 |
|
|
— |
|
|
4,996 |
|
|
5,000 |
|
|
418 |
|
|
5,418 |
|
|
4,412 |
|
|
1,006 |
|
Residential property |
— |
|
|
— |
|
|
158 |
|
|
158 |
|
|
999 |
|
|
1,157 |
|
|
151 |
|
|
1,006 |
|
Commercial and industrial loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial term |
— |
|
|
— |
|
|
4 |
|
|
4 |
|
|
167 |
|
|
171 |
|
|
42 |
|
|
129 |
|
Consumer loans |
— |
|
|
— |
|
|
47 |
|
|
47 |
|
|
— |
|
|
47 |
|
|
2 |
|
|
45 |
|
Total PCI loans |
$ |
4 |
|
|
$ |
276 |
|
|
$ |
6,925 |
|
|
$ |
7,205 |
|
|
$ |
12,809 |
|
|
$ |
20,014 |
|
|
$ |
5,441 |
|
|
$ |
14,573 |
|
Below is a summary of PCI as of June 30, 2016 and December 31, 2015, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pooled PCI Loans |
|
Non-pooled PCI Loans |
|
|
|
Number of Loans |
|
Number of Pools |
|
Carrying Amount
(in thousands)
|
|
Percentage of Total |
|
Number of Loans |
|
Carrying Amount
(in thousands)
|
|
Percentage of Total |
|
Total PCI Loans
(in thousands)
|
June 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
61 |
|
|
9 |
|
|
$ |
12,876 |
|
|
93.1 |
% |
|
1 |
|
|
$ |
956 |
|
|
6.9 |
% |
|
$ |
13,832 |
|
Residential property |
1 |
|
|
1 |
|
|
6 |
|
|
0.6 |
% |
|
2 |
|
|
985 |
|
|
99.4 |
% |
|
991 |
|
Total real estate loans |
62 |
|
|
10 |
|
|
12,882 |
|
|
86.9 |
% |
|
3 |
|
|
1,941 |
|
|
13.1 |
% |
|
14,823 |
|
Commercial and industrial loans |
7 |
|
|
3 |
|
|
146 |
|
|
100.0 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
146 |
|
Consumer loans |
1 |
|
|
1 |
|
|
51 |
|
|
100.0 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
51 |
|
Total acquired loans |
70 |
|
|
14 |
|
|
13,079 |
|
|
87.1 |
% |
|
3 |
|
|
1,941 |
|
|
12.9 |
% |
|
15,020 |
|
Allowance for loan losses |
|
|
|
|
(5,084 |
) |
|
|
|
|
|
(364 |
) |
|
|
|
(5,448 |
) |
Total carrying amount |
|
|
|
|
$ |
7,995 |
|
|
|
|
|
|
$ |
1,577 |
|
|
|
|
$ |
9,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pooled PCI Loans |
|
Non-pooled PCI Loans |
|
|
|
Number of Loans |
|
Number of Pools |
|
Carrying Amount
(in thousands)
|
|
Percentage of Total |
|
Number of Loans |
|
Carrying Amount
(in thousands)
|
|
Percentage of Total |
|
Total PCI Loans
(in thousands)
|
As of December 31, 2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial property |
71 |
|
|
9 |
|
|
$ |
17,644 |
|
|
94.7 |
% |
|
2 |
|
|
$ |
995 |
|
|
5.3 |
% |
|
$ |
18,639 |
|
Residential property |
2 |
|
|
2 |
|
|
119 |
|
|
10.3 |
% |
|
2 |
|
|
1,038 |
|
|
89.7 |
% |
|
1,157 |
|
Total real estate loans |
73 |
|
|
11 |
|
|
17,763 |
|
|
89.7 |
% |
|
4 |
|
|
2,033 |
|
|
10.3 |
% |
|
19,796 |
|
Commercial and industrial loans |
11 |
|
|
3 |
|
|
171 |
|
|
100.0 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
171 |
|
Consumer loans |
1 |
|
|
1 |
|
|
47 |
|
|
100.0 |
% |
|
— |
|
|
— |
|
|
— |
% |
|
47 |
|
Total acquired loans |
85 |
|
|
15 |
|
|
17,981 |
|
|
89.8 |
% |
|
4 |
|
|
2,033 |
|
|
10.2 |
% |
|
20,014 |
|
Allowance for loan losses |
|
|
|
|
(5,136 |
) |
|
|
|
|
|
(305 |
) |
|
|
|
(5,441 |
) |
Total carrying amount |
|
|
|
|
$ |
12,845 |
|
|
|
|
|
|
$ |
1,728 |
|
|
|
|
$ |
14,573 |
|
|