Quarterly report pursuant to Section 13 or 15(d)

Loans

v3.21.2
Loans
6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Loans

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

Retail

 

$

828,157

 

 

$

824,606

 

Hospitality

 

 

795,651

 

 

 

859,953

 

Other (1)

 

 

1,766,592

 

 

 

1,610,377

 

Total commercial property loans

 

 

3,390,400

 

 

 

3,294,936

 

Construction

 

 

61,614

 

 

 

58,882

 

Residential/consumer loans

 

 

348,730

 

 

 

345,831

 

Total real estate loans

 

 

3,800,744

 

 

 

3,699,649

 

Commercial and industrial loans

 

 

587,729

 

 

 

757,255

 

Leases receivable

 

 

431,619

 

 

 

423,264

 

Loans receivable

 

 

4,820,092

 

 

 

4,880,168

 

Allowance for credit losses

 

 

(83,372

)

 

 

(90,426

)

Loans receivable, net

 

$

4,736,720

 

 

$

4,789,742

 

 

(1)

Includes, among other types, mixed-use, apartment, office, industrial, gas stations, faith-based facilities and warehouse; all other property types represent less than one percent of total loans receivable.

 

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act allows financial institutions to assist customers in dealing with financial hardship by (a) providing federal funding so that financial institutions can originate SBA loans to borrowers at a low interest rate under the Paycheck Protection Program (“PPP”) loans with eventual debt forgiveness should the borrower continue to meet certain criteria; and (b) allowing financial institutions to temporarily modify loan terms by deferring loan payments, loan fees, etc. without considering them Troubled Debt Restructurings (“TDRs”).

At June 30, 2021 and December 31, 2020, there were $144.1 million and $295.7 million, respectively, of PPP loans included in commercial and industrial loans in the table above.  In addition, at June 30, 2021 and December 31, 2020, there were $72.3 million and $155.6 million, respectively, of loans modified under Section 4013 of the CARES Act.

Accrued interest on loans was $12.9 million and $15.2 million at June 30, 2021 and December 31, 2020, respectively. Accrued interest at June 30, 2021 and December 31, 2020 included unpaid deferred interest receivable for loans currently or previously modified under the CARES Act of $4.1 million and $7.5 million, net of a $680,000 and $1.7 million valuation allowance, respectively.

At June 30, 2021 and December 31, 2020, loans of $2.23 billion and $2.17 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the three months ended June 30, 2021 and 2020:

 

 

 

Real Estate

 

 

Commercial and

Industrial

 

 

Total

 

 

 

(in thousands)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

10,930

 

 

$

21,744

 

 

$

32,674

 

Originations and transfers

 

 

26,185

 

 

 

12,938

 

 

 

39,123

 

Sales

 

 

(24,022

)

 

 

(11,738

)

 

 

(35,760

)

Principal paydowns and amortization

 

 

(1

)

 

 

(6

)

 

 

(7

)

Balance at end of period

 

$

13,092

 

 

$

22,938

 

 

$

36,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

 

 

$

 

 

$

 

Originations

 

 

12,661

 

 

 

5,281

 

 

 

17,942

 

Sales

 

 

 

 

 

 

 

 

 

Principal paydowns and amortization

 

 

 

 

 

 

 

 

 

Balance at end of period

 

$

12,661

 

 

$

5,281

 

 

$

17,942

 

 

Loans held for sale was comprised of $22.0 million and $8.6 million of the guaranteed portion of SBA 7(a) loans and $14.1 million and $0 in second draw PPP loans at June 30, 2021 and December 31, 2020, respectively. During the three months ended June 30, 2021, the Company recognized $203,000 of gains on the sale of $9.5 million second draw PPP loans. For the six months ended June 30, 2021, the Company recognized $2.7 million of gains on the sale of $118.1 million second draw PPP loans.

 

The following is the activity for loans held for sale for the six months ended June 30, 2021 and 2020:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Total

 

 

 

(in thousands)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

8,042

 

 

$

526

 

 

$

8,568

 

Originations and transfers

 

 

42,468

 

 

 

38,834

 

 

 

81,302

 

Sales

 

 

(37,417

)

 

 

(16,416

)

 

 

(53,833

)

Principal payoffs and amortization

 

 

(1

)

 

 

(6

)

 

 

(7

)

Balance at end of period

 

$

13,092

 

 

$

22,938

 

 

$

36,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

2,943

 

 

$

3,077

 

 

$

6,020

 

Originations

 

 

19,155

 

 

 

10,984

 

 

 

30,139

 

Sales

 

 

(9,432

)

 

 

(8,780

)

 

 

(18,212

)

Principal payoffs and amortization

 

 

(5

)

 

 

 

 

 

(5

)

Balance at end of period

 

$

12,661

 

 

$

5,281

 

 

$

17,942

 

 

 

Allowance for Credit Losses

 

The following table details the information on the allowance for credit losses by portfolio segment as of and for the three months ended June 30, 2021 and 2020:

 

 

 

Real Estate

 

 

Commercial and

Industrial

 

 

Leases

Receivable

 

 

Total

 

 

 

(in thousands)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

57,762

 

 

$

16,387

 

 

$

14,243

 

 

$

88,392

 

Less loans charged off

 

 

 

 

 

271

 

 

 

1,200

 

 

 

1,471

 

Recoveries on loans receivable previously charged off

 

 

(180

)

 

 

(174

)

 

 

(209

)

 

 

(563

)

Provision for credit losses

 

 

5,087

 

 

 

(8,231

)

 

 

(968

)

 

 

(4,112

)

Ending balance

 

$

63,029

 

 

$

8,059

 

 

$

12,284

 

 

$

83,372

 

Individually evaluated

 

$

270

 

 

$

1,216

 

 

$

3,209

 

 

$

4,695

 

Collectively evaluated

 

$

62,759

 

 

$

6,843

 

 

$

9,075

 

 

$

78,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

3,800,744

 

 

$

587,729

 

 

$

431,619

 

 

$

4,820,092

 

Individually evaluated

 

$

28,832

 

 

$

1,639

 

 

$

9,112

 

 

$

39,583

 

Collectively evaluated

 

$

3,771,912

 

 

$

586,090

 

 

$

422,507

 

 

$

4,780,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

39,132

 

 

$

11,588

 

 

$

15,780

 

 

$

66,500

 

Less loans charged off

 

 

91

 

 

 

438

 

 

 

1,044

 

 

 

1,573

 

Recoveries on loans receivable previously charged off

 

 

(98

)

 

 

(60

)

 

 

(114

)

 

 

(272

)

Provision for credit losses

 

 

17,279

 

 

 

2,178

 

 

 

1,674

 

 

 

21,131

 

Ending balance

 

$

56,418

 

 

$

13,388

 

 

$

16,524

 

 

$

86,330

 

Individually evaluated

 

$

2,809

 

 

$

123

 

 

$

2,262

 

 

$

5,194

 

Collectively evaluated

 

$

53,609

 

 

$

13,265

 

 

$

14,262

 

 

$

81,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

3,632,432

 

 

$

730,399

 

 

$

462,811

 

 

$

4,825,642

 

Individually evaluated

 

$

49,582

 

 

$

13,771

 

 

$

8,456

 

 

$

71,809

 

Collectively evaluated

 

$

3,582,850

 

 

$

716,628

 

 

$

454,355

 

 

$

4,753,833

 

 

 

The following table details the information on the allowance for credit losses by portfolio segment as of and for the six months ended June 30, 2021 and 2020:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Leases Receivable

 

 

Total

 

 

 

(in thousands)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

51,876

 

 

$

21,410

 

 

$

17,140

 

 

 

90,426

 

Less loans charged off

 

 

1,509

 

 

 

365

 

 

 

3,102

 

 

 

4,976

 

Recoveries on loans receivable previously charged off

 

 

(453

)

 

 

(273

)

 

 

(344

)

 

 

(1,070

)

Provision for credit losses

 

 

12,209

 

 

 

(13,259

)

 

 

(2,098

)

 

 

(3,148

)

Ending balance

 

$

63,029

 

 

$

8,059

 

 

$

12,284

 

 

$

83,372

 

Individually evaluated

 

$

270

 

 

$

1,216

 

 

$

3,209

 

 

$

4,695

 

Collectively evaluated

 

$

62,759

 

 

$

6,843

 

 

$

9,075

 

 

$

78,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

3,800,744

 

 

$

587,729

 

 

$

431,619

 

 

$

4,820,092

 

Individually evaluated

 

$

28,832

 

 

$

1,639

 

 

$

9,112

 

 

$

39,583

 

Collectively evaluated

 

$

3,771,912

 

 

$

586,090

 

 

$

422,507

 

 

$

4,780,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

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 as of January 1, 2020

 

 

50,463

 

 

 

13,709

 

 

 

14,669

 

 

 

78,841

 

Less loans charged off

 

 

14,233

 

 

 

12,589

 

 

 

2,224

 

 

 

29,046

 

Recoveries on loans receivable previously charged off

 

 

(156

)

 

 

(144

)

 

 

(188

)

 

 

(488

)

Provision for credit losses

 

 

20,032

 

 

 

12,124

 

 

 

3,891

 

 

 

36,047

 

Ending balance

 

$

56,418

 

 

$

13,388

 

 

$

16,524

 

 

$

86,330

 

Individually evaluated

 

$

2,809

 

 

$

123

 

 

$

2,262

 

 

$

5,194

 

Collectively evaluated

 

$

53,609

 

 

$

13,265

 

 

$

14,262

 

 

$

81,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

3,632,432

 

 

$

730,399

 

 

$

462,811

 

 

$

4,825,642

 

Individually evaluated

 

$

49,582

 

 

$

13,771

 

 

$

8,456

 

 

$

71,809

 

Collectively evaluated

 

$

3,582,850

 

 

$

716,628

 

 

$

454,355

 

 

$

4,753,833

 

 

The table below illustrates the allowance for credit losses by loan portfolio segment and each loan portfolio segment as a percentage of total loans.

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

Allowance Amount

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

Allowance Amount

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

4,496

 

 

$

828,157

 

 

 

17.2

%

 

$

4,855

 

 

$

824,606

 

 

 

16.9

%

Hospitality

 

 

36,166

 

 

 

795,651

 

 

 

16.5

%

 

 

28,801

 

 

 

859,953

 

 

 

17.6

%

Other

 

 

13,129

 

 

 

1,766,592

 

 

 

36.7

%

 

 

13,991

 

 

 

1,610,377

 

 

 

33.0

%

Total commercial property loans

 

 

53,791

 

 

 

3,390,400

 

 

 

70.4

%

 

 

47,647

 

 

 

3,294,936

 

 

 

67.5

%

Construction

 

 

8,489

 

 

 

61,614

 

 

 

1.3

%

 

 

2,876

 

 

 

58,882

 

 

 

1.2

%

Residential/consumer loans

 

 

749

 

 

 

348,730

 

 

 

7.2

%

 

 

1,353

 

 

 

345,831

 

 

 

7.1

%

Total real estate loans

 

 

63,029

 

 

 

3,800,744

 

 

 

78.9

%

 

 

51,876

 

 

 

3,699,649

 

 

 

75.8

%

Commercial and industrial loans

 

 

8,059

 

 

 

587,729

 

 

 

12.2

%

 

 

21,410

 

 

 

757,255

 

 

 

15.5

%

Leases receivable

 

 

12,284

 

 

 

431,619

 

 

 

8.9

%

 

 

17,140

 

 

 

423,264

 

 

 

8.7

%

Total

 

$

83,372

 

 

$

4,820,092

 

 

 

100.0

%

 

$

90,426

 

 

$

4,880,168

 

 

 

100.0

%

 

 

The following table represents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2021 and December 31, 2020, for which repayment is expected to be obtained through the sale of the underlying collateral.

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

Amortized Cost

 

 

Amortized Cost

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

Retail

 

$

6,135

 

 

$

6,330

 

Hospitality

 

 

8,641

 

 

 

20,612

 

Other (1)

 

 

458

 

 

 

8,410

 

Total commercial property loans

 

 

15,234

 

 

 

35,352

 

Construction

 

 

10,046

 

 

 

24,854

 

Residential/consumer loans

 

 

1,702

 

 

 

2,867

 

Total real estate loans

 

 

26,982

 

 

 

63,073

 

Commercial and industrial loans

 

 

 

 

 

41

 

Total

 

$

26,982

 

 

$

63,114

 

 

(1)

Includes, among other types, mixed-use, apartment, office, industrial, gas stations, faith-based facilities and warehouse; all other property types represent less than one percent of total loans receivable.

 

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 0 to 8) for each loan in our portfolio. A third-party loan review is performed at least on an annual basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (0-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention,” “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.

Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.

Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.

Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.

Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.

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)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

473,896

 

 

$

815,959

 

 

$

498,159

 

 

$

448,016

 

 

$

316,594

 

 

$

644,736

 

 

$

51,004

 

 

$

3,248,364

 

Special Mention

 

 

 

 

 

6,391

 

 

 

16,488

 

 

 

2,052

 

 

 

3,055

 

 

 

48,203

 

 

 

1,120

 

 

 

77,309

 

Classified

 

 

 

 

 

 

 

 

5,495

 

 

 

21,496

 

 

 

4,595

 

 

 

33,141

 

 

 

 

 

 

64,727

 

Total commercial property

 

 

473,896

 

 

 

822,350

 

 

 

520,142

 

 

 

471,564

 

 

 

324,244

 

 

 

726,080

 

 

 

52,124

 

 

 

3,390,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass Watch

 

 

9,476

 

 

 

29,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,821

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12,747

 

 

 

 

 

 

12,747

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,046

 

 

 

 

 

 

10,046

 

Total construction

 

 

9,476

 

 

 

29,345

 

 

 

 

 

 

 

 

 

 

 

 

22,793

 

 

 

 

 

 

61,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

77,142

 

 

 

22,757

 

 

 

254

 

 

 

28,284

 

 

 

104,611

 

 

 

101,458

 

 

 

7,483

 

 

 

341,989

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

930

 

 

 

379

 

 

 

2,884

 

 

 

 

 

 

4,193

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,229

 

 

 

319

 

 

 

 

 

 

2,548

 

Total residential/consumer loans

 

 

77,142

 

 

 

22,757

 

 

 

254

 

 

 

29,214

 

 

 

107,219

 

 

 

104,661

 

 

 

7,483

 

 

 

348,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

560,514

 

 

 

868,061

 

 

 

498,413

 

 

 

476,300

 

 

 

421,205

 

 

 

746,194

 

 

 

58,487

 

 

 

3,629,174

 

Special Mention

 

 

 

 

 

6,391

 

 

 

16,488

 

 

 

2,982

 

 

 

3,434

 

 

 

63,834

 

 

 

1,120

 

 

 

94,249

 

Classified

 

 

 

 

 

 

 

 

5,495

 

 

 

21,496

 

 

 

6,824

 

 

 

43,506

 

 

 

 

 

 

77,321

 

Total real estate loans

 

 

560,514

 

 

 

874,452

 

 

 

520,396

 

 

 

500,778

 

 

 

431,463

 

 

 

853,534

 

 

 

59,607

 

 

 

3,800,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

119,307

 

 

 

205,706

 

 

 

39,765

 

 

 

19,031

 

 

 

13,969

 

 

 

10,664

 

 

 

128,019

 

 

 

536,461

 

Special Mention

 

 

429

 

 

 

3,446

 

 

 

4,685

 

 

 

8,038

 

 

 

8,624

 

 

 

55

 

 

 

2,303

 

 

 

27,580

 

Classified

 

 

 

 

 

 

 

 

14,571

 

 

 

205

 

 

 

553

 

 

 

6,317

 

 

 

2,042

 

 

 

23,688

 

Total commercial and industrial loans

 

 

119,736

 

 

 

209,152

 

 

 

59,021

 

 

 

27,274

 

 

 

23,146

 

 

 

17,036

 

 

 

132,364

 

 

 

587,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

103,420

 

 

 

97,760

 

 

 

132,502

 

 

 

67,887

 

 

 

19,069

 

 

 

1,869

 

 

 

 

 

 

422,507

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

 

 

 

502

 

 

 

5,541

 

 

 

2,015

 

 

 

636

 

 

 

418

 

 

 

 

 

 

9,112

 

Total leases receivable

 

 

103,420

 

 

 

98,262

 

 

 

138,043

 

 

 

69,902

 

 

 

19,705

 

 

 

2,287

 

 

 

 

 

 

431,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

783,241

 

 

 

1,171,527

 

 

 

670,680

 

 

 

563,218

 

 

 

454,243

 

 

 

758,727

 

 

 

186,506

 

 

 

4,588,142

 

Special Mention

 

 

429

 

 

 

9,837

 

 

 

21,173

 

 

 

11,020

 

 

 

12,058

 

 

 

63,889

 

 

 

3,423

 

 

 

121,829

 

Classified

 

 

 

 

 

502

 

 

 

25,607

 

 

 

23,716

 

 

 

8,013

 

 

 

50,241

 

 

 

2,042

 

 

 

110,121

 

Total loans receivable

 

$

783,670

 

 

$

1,181,866

 

 

$

717,460

 

 

$

597,954

 

 

$

474,314

 

 

$

872,857

 

 

$

191,971

 

 

$

4,820,092

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Revolving

Loans

Amortized

Cost Basis

 

 

Total

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

920,876

 

 

$

513,962

 

 

$

479,221

 

 

$

343,659

 

 

$

418,361

 

 

$

459,367

 

 

$

31,283

 

 

$

3,166,729

 

Special Mention

 

 

13,680

 

 

 

2,484

 

 

 

8,630

 

 

 

1,671

 

 

 

14,971

 

 

 

11,907

 

 

 

 

 

 

53,343

 

Classified

 

 

 

 

 

3,528

 

 

 

7,303

 

 

 

4,712

 

 

 

21,351

 

 

 

37,840

 

 

 

130

 

 

 

74,864

 

Total commercial property

 

 

934,556

 

 

 

519,974

 

 

 

495,154

 

 

 

350,042

 

 

 

454,683

 

 

 

509,114

 

 

 

31,413

 

 

 

3,294,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

33,415

 

 

 

613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,028

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,854

 

 

 

 

 

 

 

 

 

24,854

 

Total construction

 

 

33,415

 

 

 

613

 

 

 

 

 

 

 

 

 

24,854

 

 

 

 

 

 

 

 

 

58,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

27,997

 

 

 

962

 

 

 

37,123

 

 

 

127,987

 

 

 

82,124

 

 

 

54,003

 

 

 

7,353

 

 

 

337,549

 

Special Mention

 

 

 

 

 

 

 

 

930

 

 

 

829

 

 

 

537

 

 

 

2,782

 

 

 

 

 

 

5,078

 

Classified

 

 

 

 

 

 

 

 

 

 

 

2,259

 

 

 

301

 

 

 

644

 

 

 

 

 

 

3,204

 

Total residential/consumer loans

 

 

27,997

 

 

 

962

 

 

 

38,053

 

 

 

131,075

 

 

 

82,962

 

 

 

57,429

 

 

 

7,353

 

 

 

345,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

982,288

 

 

 

515,537

 

 

 

516,344

 

 

 

471,646

 

 

 

500,485

 

 

 

513,370

 

 

 

38,636

 

 

 

3,538,306

 

Special Mention

 

 

13,680

 

 

 

2,484

 

 

 

9,560

 

 

 

2,500

 

 

 

15,508

 

 

 

14,689

 

 

 

 

 

 

58,421

 

Classified

 

 

 

 

 

3,528

 

 

 

7,303

 

 

 

6,971

 

 

 

46,506

 

 

 

38,484

 

 

 

130

 

 

 

102,922

 

Total real estate loans

 

 

995,968

 

 

 

521,549

 

 

 

533,207

 

 

 

481,117

 

 

 

562,499

 

 

 

566,543

 

 

 

38,766

 

 

 

3,699,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

406,486

 

 

 

73,159

 

 

 

54,110

 

 

 

17,834

 

 

 

4,464

 

 

 

9,910

 

 

 

146,722

 

 

 

712,685

 

Special Mention

 

 

6,950

 

 

 

4,509

 

 

 

4,436

 

 

 

1,110

 

 

 

31

 

 

 

1,074

 

 

 

447

 

 

 

18,557

 

Classified

 

 

 

 

 

890

 

 

 

5,115

 

 

 

9,465

 

 

 

4,380

 

 

 

1,519

 

 

 

4,644

 

 

 

26,013

 

Total commercial and industrial loans

 

 

413,436

 

 

 

78,558

 

 

 

63,661

 

 

 

28,409

 

 

 

8,875

 

 

 

12,503

 

 

 

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

 

 

 

753,938

 

 

 

661,862

 

 

 

519,885

 

 

 

515,045

 

 

 

524,447

 

 

 

185,358

 

 

 

4,663,021

 

Special Mention

 

 

20,630

 

 

 

6,993

 

 

 

13,996

 

 

 

3,610

 

 

 

15,539

 

 

 

15,763

 

 

 

447

 

 

 

76,978

 

Classified

 

 

452

 

 

 

10,146

 

 

 

15,555

 

 

 

17,312

 

 

 

51,690

 

 

 

40,240

 

 

 

4,774

 

 

 

140,169

 

Total loans receivable

 

$

1,523,568

 

 

$

771,077

 

 

$

691,413

 

 

$

540,807

 

 

$

582,274

 

 

$

580,450

 

 

$

190,579

 

 

$

4,880,168

 

 

(1)

Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

 

 

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)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

473,896

 

 

$

822,350

 

 

$

520,142

 

 

$

471,543

 

 

$

321,945

 

 

$

711,316

 

 

$

52,124

 

 

$

3,373,316

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

2,299

 

 

 

14,764

 

 

 

 

 

 

17,084

 

Total commercial property

 

 

473,896

 

 

 

822,350

 

 

 

520,142

 

 

 

471,564

 

 

 

324,244

 

 

 

726,080

 

 

 

52,124

 

 

 

3,390,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

9,476

 

 

 

29,345

 

 

 

 

 

 

 

 

 

 

 

 

12,747

 

 

 

 

 

 

51,568

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10,046

 

 

 

 

 

 

10,046

 

Total construction

 

 

9,476

 

 

 

29,345

 

 

 

 

 

 

 

 

 

 

 

 

22,793

 

 

 

 

 

 

61,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

77,142

 

 

 

22,757

 

 

 

254

 

 

 

29,214

 

 

 

105,836

 

 

 

104,342

 

 

 

7,483

 

 

 

347,028

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,383

 

 

 

319

 

 

 

 

 

 

1,702

 

Total residential/consumer loans

 

 

77,142

 

 

 

22,757

 

 

 

254

 

 

 

29,214

 

 

 

107,219

 

 

 

104,661

 

 

 

7,483

 

 

 

348,730

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

560,514

 

 

 

874,452

 

 

 

520,396

 

 

 

500,757

 

 

 

427,781

 

 

 

828,405

 

 

 

59,607

 

 

 

3,771,912

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

3,682

 

 

 

25,129

 

 

 

 

 

 

28,832

 

Total real estate loans

 

 

560,514

 

 

 

874,452

 

 

 

520,396

 

 

 

500,778

 

 

 

431,463

 

 

 

853,534

 

 

 

59,607

 

 

 

3,800,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

119,736

 

 

 

209,152

 

 

 

58,200

 

 

 

23,371

 

 

 

14,078

 

 

 

16,753

 

 

 

132,364

 

 

 

573,654

 

Nonperforming

 

 

 

 

 

 

 

 

821

 

 

 

3,903

 

 

 

9,068

 

 

 

283

 

 

 

 

 

 

14,075

 

Total commercial and industrial loans

 

 

119,736

 

 

 

209,152

 

 

 

59,021

 

 

 

27,274

 

 

 

23,146

 

 

 

17,036

 

 

 

132,364

 

 

 

587,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leases receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

103,420

 

 

 

97,760

 

 

 

132,502

 

 

 

67,887

 

 

 

19,069

 

 

 

1,869

 

 

 

 

 

 

422,507

 

Nonperforming

 

 

 

 

 

502

 

 

 

5,541

 

 

 

2,015

 

 

 

636

 

 

 

418

 

 

 

 

 

 

9,112

 

Total leases receivable

 

 

103,420

 

 

 

98,262

 

 

 

138,043

 

 

 

69,902

 

 

 

19,705

 

 

 

2,287

 

 

 

 

 

 

431,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

783,670

 

 

 

1,181,364

 

 

 

711,098

 

 

 

592,015

 

 

 

460,928

 

 

 

847,027

 

 

 

191,971

 

 

 

4,768,073

 

Nonperforming

 

 

 

 

 

502

 

 

 

6,362

 

 

 

5,939

 

 

 

13,386

 

 

 

25,830

 

 

 

 

 

 

52,019

 

Total loans receivable

 

$

783,670

 

 

$

1,181,866

 

 

$

717,460

 

 

$

597,954

 

 

$

474,314

 

 

$

872,857

 

 

$

191,971

 

 

$

4,820,092

 

 

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Revolving

Loans

Amortized

Cost Basis

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

934,556

 

 

$

519,582

 

 

$

495,132

 

 

$

347,656

 

 

$

437,230

 

 

$

499,410

 

 

$

31,283

 

 

$

3,264,849

 

Nonperforming

 

 

 

 

 

392

 

 

 

22

 

 

 

2,386

 

 

 

17,453

 

 

 

9,704

 

 

 

130

 

 

 

30,087

 

Total commercial property

 

 

934,556

 

 

 

519,974

 

 

 

495,154

 

 

 

350,042

 

 

 

454,683

 

 

 

509,114

 

 

 

31,413

 

 

 

3,294,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

33,415

 

 

 

613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34,028

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,854

 

 

 

 

 

 

 

 

 

24,854

 

Total construction

 

 

33,415

 

 

 

613

 

 

 

 

 

 

 

 

 

24,854

 

 

 

 

 

 

 

 

 

58,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential/consumer loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

27,997

 

 

 

962

 

 

 

38,053

 

 

 

129,670

 

 

 

82,661

 

 

 

56,785

 

 

 

7,353

 

 

 

343,481

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

1,405

 

 

 

301

 

 

 

644

 

 

 

 

 

 

2,350

 

Total residential/consumer loans

 

 

27,997

 

 

 

962

 

 

 

38,053

 

 

 

131,075

 

 

 

82,962

 

 

 

57,429

 

 

 

7,353

 

 

 

345,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

995,968

 

 

 

521,157

 

 

 

533,185

 

 

 

477,326

 

 

 

519,891

 

 

 

556,195

 

 

 

38,636

 

 

 

3,642,358

 

Nonperforming

 

 

 

 

 

392

 

 

 

22

 

 

 

3,791

 

 

 

42,608

 

 

 

10,348

 

 

 

130

 

 

 

57,291

 

Total real estate loans

 

 

995,968

 

 

 

521,549

 

 

 

533,207

 

 

 

481,117

 

 

 

562,499

 

 

 

566,543

 

 

 

38,766

 

 

 

3,699,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

413,436

 

 

 

77,668

 

 

 

59,726

 

 

 

19,002

 

 

 

8,875

 

 

 

12,227

 

 

 

151,813

 

 

 

742,747

 

Nonperforming

 

 

 

 

 

890

 

 

 

3,935

 

 

 

9,407

 

 

 

 

 

 

276

 

 

 

 

 

 

14,508

 

Total commercial and industrial loans

 

 

413,436

 

 

 

78,558

 

 

 

63,661

 

 

 

28,409

 

 

 

8,875

 

 

 

12,503

 

 

 

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

 

 

1,523,116

 

 

 

764,067

 

 

 

684,319

 

 

 

526,733

 

 

 

538,862

 

 

 

569,589

 

 

 

190,449

 

 

 

4,797,135

 

Nonperforming

 

 

452

 

 

 

7,010

 

 

 

7,094

 

 

 

14,074

 

 

 

43,412

 

 

 

10,861

 

 

 

130

 

 

 

83,033

 

Total loans receivable

 

$

1,523,568

 

 

$

771,077

 

 

$

691,413

 

 

$

540,807

 

 

$

582,274

 

 

$

580,450

 

 

$

190,579

 

 

$

4,880,168

 

 

(2)

Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision. Certain prior period amounts have been reclassified to conform to current period presentation.

 

At June 30, 2021, of the $72.3 million of loans modified in accordance with the provision of the CARES Act, $22.9 million were pass and pass-watch, $36.7 million were special mention, and $12.7 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 pass and pass-watch, $31.3 million were special mention, and $24.4 million were classified.

 

 

The following is an aging analysis of loans, disaggregated by loan class, as of the dates indicated:

 

 

 

30-59

Days

Past Due

 

 

60-89

Days

Past Due

 

 

90 Days

or More

Past Due

 

 

Total

Past Due

 

 

Current

 

 

Total

 

 

Accruing

90 Days

or More

Past Due

 

 

 

(in thousands)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

 

 

$

 

 

$

 

 

$

 

 

$

828,157

 

 

$

828,157

 

 

$

 

Hospitality

 

 

 

 

 

 

 

 

 

 

 

 

 

 

795,651

 

 

 

795,651

 

 

 

 

Other

 

 

 

 

 

 

 

 

458

 

 

 

458

 

 

 

1,766,134

 

 

 

1,766,592

 

 

 

 

Total commercial property loans

 

 

 

 

 

 

 

 

458

 

 

 

458

 

 

 

3,389,942

 

 

 

3,390,400

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61,614

 

 

 

61,614

 

 

 

 

Residential/consumer loans

 

 

 

 

 

2,022

 

 

 

560

 

 

 

2,582

 

 

 

346,148

 

 

 

348,730

 

 

 

 

Total real estate loans

 

 

 

 

 

2,022

 

 

 

1,018

 

 

 

3,040

 

 

 

3,797,704

 

 

 

3,800,744

 

 

 

 

Commercial and industrial loans

 

 

47

 

 

 

4

 

 

 

12,446

 

 

 

12,497

 

 

 

575,232

 

 

 

587,729

 

 

 

12,446

 

Leases receivable

 

 

3,664

 

 

 

709

 

 

 

2,271

 

 

 

6,644

 

 

 

424,975

 

 

 

431,619

 

 

 

 

Total loans receivable

 

$

3,711

 

 

$

2,735

 

 

$

15,735

 

 

$

22,181

 

 

$

4,797,911

 

 

$

4,820,092

 

 

$

12,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

$

 

 

Loans 90 days or more past due and still accruing were $12.4 million as of June 30, 2021 and represented two film tax-credit loans previously included in nonaccrual loans. At June 30, 2021, these loans were well secured and in the process of collection. Subsequent to the end of the second quarter, the Company collected payments of $4.6 million, including accrued interest, representing the full payoff of one of these loans, and $5.4 million, representing the partial paydown of the other. The Company expects to collect the remaining amounts due on the second loan prior to the end of the third quarter. No loans were 90 days or more past due and accruing interest as of December 31, 2020. In addition, $36.0 million and $53.4 million of loans past due less than 90 days were classified as nonaccrual at June 30, 2021 and December 31, 2020, respectively.

 

At June 30, 2021 and December 31, 2020, currently modified loans under the CARES Act were $72.3 million and $155.6 million, respectively. Of the currently modified loans, $260,000 were 30-59 days past due, no loans were 60-89 days past due, and $28,000 were 90 days or more past due at June 30, 2021, and all loans were current at December 31, 2020. For loans previously modified under the CARES Act, $887,000 were 30-59 days past due, $388,000 were 60-89 days past due, and $1.8 million were 90 days or more past due at June 30, 2021 and $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 at December 31, 2020.

Individually Evaluated Loans

The Company reviews all loans on an individual basis when they do not share similar risk characteristics with loan pools.

 

 

The following is a summary of interest foregone on nonaccrual loans for the periods indicated:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

Interest income that would have been recognized had individually evaluated loans performed in accordance with their original terms

 

$

1,091

 

 

$

1,386

 

 

$

2,848

 

 

$

2,998

 

Less: Interest income recognized on individually evaluated loans

 

 

(136

)

 

 

(508

)

 

 

(287

)

 

 

(1,085

)

Interest foregone on individually evaluated loans

 

$

955

 

 

$

878

 

 

$

2,561

 

 

$

1,913

 

 

There were no commitments to lend additional funds to borrowers whose loans are included above.

 

 

Nonaccrual Loans and Nonperforming Assets

 

The following table represents the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of June 30, 2021 and December 31, 2020.

 

 

 

June 30, 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

 

$

6,135

 

 

$

 

 

$

 

 

$

6,135

 

Hospitality

 

 

8,641

 

 

 

 

 

 

 

 

 

8,641

 

Other

 

 

1,581

 

 

 

727

 

 

 

 

 

 

2,308

 

Total commercial property loans

 

 

16,357

 

 

 

727

 

 

 

 

 

 

17,084

 

Construction

 

 

10,046

 

 

 

 

 

 

 

 

 

10,046

 

Residential/consumer loans

 

 

1,702

 

 

 

 

 

 

 

 

 

1,702

 

Total real estate loans

 

 

28,105

 

 

 

727

 

 

 

 

 

 

28,832

 

Commercial and industrial loans

 

 

133

 

 

 

1,496

 

 

 

12,446

 

 

 

14,075

 

Leases receivable

 

 

1,235

 

 

 

7,877

 

 

 

 

 

 

9,112

 

Total

 

$

29,473

 

 

$

10,100

 

 

$

12,446

 

 

$

52,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

6,331

 

 

$

 

 

$

 

 

$

6,331

 

Hospitality

 

 

20,611

 

 

 

 

 

 

 

 

 

20,611

 

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

 

 

 

14,450

 

 

 

 

 

 

14,508

 

Leases receivable

 

 

2,318

 

 

 

8,916

 

 

 

 

 

 

11,234

 

Total

 

$

58,758

 

 

$

24,275

 

 

$

 

 

$

83,033

 

 

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

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(in thousands)

 

Nonaccrual loans

 

$

39,573

 

 

$

83,033

 

Loans receivable 90 days or more past due and still accruing

 

 

12,446

 

 

 

 

Total nonperforming loans receivable

 

 

52,019

 

 

 

83,033

 

Other real estate owned ("OREO")

 

 

712

 

 

 

2,360

 

Total nonperforming assets

 

$

52,731

 

 

$

85,393

 

 

OREO is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020.

 

 

Troubled Debt Restructurings

As of June 30, 2021 and December 31, 2020, total TDRs were $14.7 million and $25.0 million, respectively. A debt restructuring is considered a TDR if we grant a concession that we would not have otherwise been considered, to the borrower for economic or legal reasons related to the borrower’s financial difficulties. In addition, the concession granted must result in a reduction in the borrower’s payment for a period of three months or more in order to be classified as a TDR.

The following table details TDRs as of June 30, 2021 and December 31, 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)

 

June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans

 

$

419

 

 

$

3,070

 

 

$

10,455

 

 

$

 

 

$

13,944

 

 

$

574

 

 

$

 

 

$

 

 

$

 

 

$

574

 

Commercial and industrial loans

 

 

 

 

 

133

 

 

 

 

 

 

 

 

 

133

 

 

 

 

 

 

 

 

 

1

 

 

 

26

 

 

 

27

 

Total

 

$

419

 

 

$

3,203

 

 

$

10,455

 

 

$

 

 

$

14,077

 

 

$

574

 

 

$

 

 

$

1

 

 

$

26

 

 

$

601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

The following table presents the number of loans by class modified as troubled debt restructurings that occurred during the periods indicated, with their pre- and post-modification recorded amounts.

 

 

 

Three Months ended

 

 

Twelve Months ended

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

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

 

Commercial and industrial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

$

 

 

$

 

 

 

5

 

 

$

4,479

 

 

$

3,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months ended

 

 

Twelve Months ended

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

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

 

Commercial and industrial loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

$

 

 

$

 

 

 

5

 

 

$

4,479

 

 

$

3,676

 

 

All TDRs are individually analyzed using one of 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, 2021 and December 31, 2020, the allowance resulting from the individual evaluation of TDRs was inconsequential.

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 three and six months ended June 30, 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 this defaulted loan was inconsequential.