XML 53 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans and Lease Finance Receivables and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Summary of Components of Loans and Lease Finance Receivables, Excluding PCI Loans
 
 
 
December 31
 
 
 
2018
 
 
2017
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
1,002,209
 
 
$
513,325
 
SBA
 
 
350,043
 
 
 
122,055
 
Real estate:
 
 
 
 
 
 
 
 
Commercial real estate
 
 
5,394,229
 
 
 
3,376,713
 
Construction
 
 
122,782
 
 
 
77,982
 
SFR mortgage
 
 
296,504
 
 
 
236,202
 
Dairy & livestock and agribusiness
 
 
393,843
 
 
 
347,289
 
Municipal lease finance receivables
 
 
64,186
 
 
 
70,243
 
Consumer and other loans
 
 
128,429
 
 
 
64,229
 
Gross loans, excluding PCI loans
 
 
7,752,225
 
 
 
4,808,038
 
Less: Deferred loan fees, net
 
 
(4,828
)
 
 
(6,289
)
Gross loans, excluding PCI loans, net of deferred loan fees
 
 
7,747,397
 
 
 
4,801,749
 
Less: Allowance for loan losses
 
 
(63,409
)
 
 
(59,218
)
Net loans, excluding PCI loans
 
 
7,683,988
 
 
 
4,742,531
 
PCI Loans
 
 
17,214
 
 
 
30,908
 
Discount on PCI loans
 
 
-
 
 
 
(2,026
)
Less: Allowance for loan losses
 
 
(204
)
 
 
(367
)
PCI loans, net
 
 
17,010
 
 
 
28,515
 
Total loans and lease finance receivables
 
$
7,700,998
 
 
$
4,771,046
 
Summary of Loan, Excluding PCI Loans by Internal Risk Ratings
 
 
 
December 31, 2018
 
 
 
Pass
 
 
Special 

Mention
 
 
Substandard (1)
 
 
Doubtful & 

Loss
 
 
Total
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
961,909
 
 
$
29,358
 
 
$
10,942
 
 
$
-
 
 
$
1,002,209
 
SBA
 
 
336,033
 
 
 
7,375
 
 
 
6,635
 
 
 
-
 
 
 
350,043
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
2,008,169
 
 
 
95,841
 
 
 
13,980
 
 
 
-
 
 
 
2,117,990
 
Non-owner occupied
 
 
3,260,822
 
 
 
9,938
 
 
 
5,479
 
 
 
-
 
 
 
3,276,239
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
118,233
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
118,233
 
Non-speculative
 
 
4,549
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
4,549
 
SFR mortgage
 
 
289,607
 
 
 
3,310
 
 
 
3,587
 
 
 
-
 
 
 
296,504
 
Dairy & livestock and agribusiness
 
 
350,044
 
 
 
34,586
 
 
 
9,213
 
 
 
-
 
 
 
393,843
 
Municipal lease finance receivables
 
 
63,650
 
 
 
536
 
 
 
-
 
 
 
-
 
 
 
64,186
 
Consumer and other loans
 
 
126,085
 
 
 
1,263
 
 
 
1,081
 
 
 
-
 
 
 
128,429
 
Total gross loans, excluding PCI loans
 
$
7,519,101
 
 
$
182,207
 
 
$
50,917
 
 
$
-
 
 
$
7,752,225
 
(1)
Includes $
19.0
 
million of classified loans acquired from CB in the third quarter of
2018
.
 
 
 
December 31, 2017
 
 
 
Pass
 
 
Special 

Mention
 
 
Substandard
 
 
Doubtful & 

Loss
 
 
Total
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
483,641
 
 
$
19,566
 
 
$
10,118
 
 
$
-
 
 
$
513,325
 
SBA
 
 
112,835
 
 
 
5,358
 
 
 
3,862
 
 
 
-
 
 
 
122,055
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
1,009,199
 
 
 
76,111
 
 
 
10,970
 
 
 
-
 
 
 
1,096,280
 
Non-owner occupied
 
 
2,257,130
 
 
 
16,434
 
 
 
6,869
 
 
 
-
 
 
 
2,280,433
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
60,042
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
60,042
 
Non-speculative
 
 
17,940
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
17,940
 
SFR mortgage
 
 
229,032
 
 
 
3,124
 
 
 
4,046
 
 
 
-
 
 
 
236,202
 
Dairy & livestock and agribusiness
 
 
321,413
 
 
 
9,047
 
 
 
16,829
 
 
 
-
 
 
 
347,289
 
Municipal lease finance receivables
 
 
69,644
 
 
 
599
 
 
 
-
 
 
 
-
 
 
 
70,243
 
Consumer and other loans
 
 
61,715
 
 
 
1,255
 
 
 
1,259
 
 
 
-
 
 
 
64,229
 
Total gross loans, excluding PCI loans
 
$
4,622,591
 
 
$
131,494
 
 
$
53,953
 
 
$
-
 
 
$
4,808,038
 
Schedule of Balance and Activity Related to Allowance for Loan Losses for Held-for-Investment Loans by Type
 
 
 
For the Year Ended December 31, 2018
 
 
 
Ending 
Balance 

December 31, 

2017
 
 
Charge-offs
 
 
Recoveries
 
 
Provision for

(Recapture of)

Loan Losses
 
 
Ending Balance 

December 31, 

2018
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
7,280
 
 
$
(10
)
 
$
82
 
 
$
168
 
 
$
7,520
 
SBA
 
 
869
 
 
 
(257
)
 
 
20
 
 
 
430
 
 
 
1,062
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
41,722
 
 
 
-
 
 
 
-
 
 
 
3,212
 
 
 
44,934
 
Construction
 
 
984
 
 
 
-
 
 
 
2,506
 
 
 
(2,509
)
 
 
981
 
SFR mortgage
 
 
2,112
 
 
 
(13
)
 
 
51
 
 
 
46
 
 
 
2,196
 
Dairy & livestock and agribusiness
 
 
4,647
 
 
 
-
 
 
 
19
 
 
 
549
 
 
 
5,215
 
Municipal lease finance receivables
 
 
851
 
 
 
-
 
 
 
-
 
 
 
(76
)
 
 
775
 
Consumer and other loans
 
 
753
 
 
 
(11
)
 
 
141
 
 
 
(157
)
 
 
726
 
PCI loans
 
 
367
 
 
 
-
 
 
 
-
 
 
 
(163
)
 
 
204
 
Total allowance for loan losses
 
$
59,585
 
 
$
(291
)
 
$
2,819
 
 
$
1,500
 
 
$
63,613
 
 
 
 
For the Year Ended December 31, 2017
 
 
 
Ending 

Balance 

December 31, 

2016
 
 
Charge-offs
 
 
Recoveries
 
 
(Recapture 

of) 

Provision 

for 

Loan Losses
 
 
Ending 

Balance 

December 31, 

2017
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
8,154
 
 
$
(138
)
 
$
118
 
 
$
(854
)
 
$
7,280
 
SBA
 
 
871
 
 
 
-
 
 
 
78
 
 
 
(80
)
 
 
869
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
37,443
 
 
 
-
 
 
 
154
 
 
 
4,125
 
 
 
41,722
 
Construction
 
 
1,096
 
 
 
-
 
 
 
6,036
 
 
 
(6,148
)
 
 
984
 
SFR mortgage
 
 
2,287
 
 
 
-
 
 
 
212
 
 
 
(387
)
 
 
2,112
 
Dairy & livestock and agribusiness
 
 
8,541
 
 
 
-
 
 
 
19
 
 
 
(3,913
)
 
 
4,647
 
Municipal lease finance receivables
 
 
941
 
 
 
-
 
 
 
-
 
 
 
(90
)
 
 
851
 
Consumer and other loans
 
 
988
 
 
 
(13
)
 
 
79
 
 
 
(301
)
 
 
753
 
PCI loans
 
 
1,219
 
 
 
-
 
 
 
-
 
 
 
(852
)
 
 
367
 
Total allowance for loan losses
 
$
61,540
 
 
$
(151
)
 
$
6,696
 
 
$
(8,500
)
 
$
59,585
 
 
 
For the Y
ear Ended December 31, 2016
 
 
 
Ending 

Balance 
December 31, 
2015
 
 
Charge-offs
 
 
Recoveries
 
 
(Recapture 
of) 
Provision for 
Loan Losses
 
 
Ending 

Balance 
December 31, 
2016
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
8,588
 
 
$
(120
)
 
$
630
 
 
$
(944
)
 
$
8,154
 
SBA
 
 
993
 
 
 
—
 
 
 
40
 
 
 
(162
)
 
 
871
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
36,995
 
 
 
—
 
 
 
792
 
 
 
(344
)
 
 
37,443
 
Construction
 
 
2,389
 
 
 
—
 
 
 
7,174
 
 
 
(8,467
)
 
 
1,096
 
SFR mortgage
 
 
2,103
 
 
 
(102
)
 
 
—
 
 
 
286
 
 
 
2,287
 
Dairy & livestock and agribusiness
 
 
6,029
 
 
 
—
 
 
 
216
 
 
 
2,296
 
 
 
8,541
 
Municipal lease finance receivables
 
 
1,153
 
 
 
—
 
 
 
—
 
 
 
(212
)
 
 
941
 
Consumer and other loans
 
 
906
 
 
 
(16
)
 
 
170
 
 
 
(72
)
 
 
988
 
PCI loans
 
 
—
 
 
 
—
 
 
 
—
 
 
 
1,219
 
 
 
1,219
 
Total allowance for loan losses
 
$
59,156
 
 
$
(238
)
 
$
9,022
 
 
$
(6,400
)
 
$
61,540
 
Schedule of Recorded Investment in Loans Held-for-Investment and Related Allowance for Loan Losses by Loan Type
The following tables present the recorded investment in loans held-for-investment and the related allowance for loan losses by loan type, based on the Company’s methodology for determining the allowance for loan losses for the periods presented. Acquired loans are also supported by a credit discount established through the determination of fair value for the acquired loan portfolio.
 
 
 
December 31, 2018
 
 
 
Recorded Investment in Loans
 
 
Allowance for Loan Losses
 
 
 
Individually 
Evaluated for 
Impairment
 
 
Collectively 
Evaluated for 
Impairment
 
 
Acquired with 

Deterioriated

Credit Quality
 
 
Individually 
Evaluated for
Impairment
 
 
Collectively 
Evaluated for 
Impairment
 
 
  Acquired with

Deterioriated

Credit Quality
 
 
 
(Dollars in thousands)
 
 
 
 
Commercial and industrial
 
$
7,625
 
 
$
994,584
 
 
$
—
 
 
$
3
 
 
$
7,517
 
 
$
—
 
SBA
 
 
3,467
 
 
 
346,576
 
 
 
—
 
 
 
—
 
 
 
1,062
 
 
 
—
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
6,540
 
 
 
5,387,689
 
 
 
—
 
 
 
478
 
 
 
44,456
 
 
 
—
 
Construction
 
 
—
 
 
 
122,782
 
 
 
—
 
 
 
—
 
 
 
981
 
 
 
—
 
SFR mortgage
 
 
5,349
 
 
 
291,155
 
 
 
—
 
 
 
—
 
 
 
2,196
 
 
 
—
 
Dairy & livestock and agribusiness
 
 
78
 
 
 
393,765
 
 
 
—
 
 
 
12
 
 
 
5,203
 
 
 
—
 
Municipal lease finance receivables
 
 
—
 
 
 
64,186
 
 
 
—
 
 
 
—
 
 
 
775
 
 
 
—
 
Consumer and other loans
 
 
486
 
 
 
127,943
 
 
 
—
 
 
 
68
 
 
 
658
 
 
 
—
 
PCI loans
 
 
—
 
 
 
—
 
 
 
17,214
 
 
 
—
 
 
 
—
 
 
 
204
 
Total
 
$
23,545
 
 
$
7,728,680
 
 
$
17,214
 
 
$
561
 
 
$
62,848
 
 
$
204
 
 
 
 
December 31, 2017
 
 
 
Recorded Investment in Loans
 
 
Allowance for Loan Losses
 
 
 
Individually 
Evaluated for 
Impairment
 
 
Collectively 
Evaluated for 
Impairment
 
 
Acquired with 

Deterioriated

Credit Quality
 
 
Individually 
Evaluated for 
Impairment
 
 
Collectively 
Evaluated for 
Impairment
 
 
Acquired with 

Deterioriated

Credit Quality
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
440
 
 
$
512,885
 
 
$
—
 
 
$
—
 
 
$
7,280
 
 
$
—
 
SBA
 
 
1,531
 
 
 
120,524
 
 
 
—
 
 
 
1
 
 
 
868
 
 
 
—
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
8,133
 
 
 
3,368,580
 
 
 
—
 
 
 
—
 
 
 
41,722
 
 
 
—
 
Construction
 
 
—
 
 
 
77,982
 
 
 
—
 
 
 
—
 
 
 
984
 
 
 
—
 
SFR mortgage
 
 
4,040
 
 
 
232,162
 
 
 
—
 
 
 
—
 
 
 
2,112
 
 
 
—
 
Dairy & livestock and agribusiness
 
 
829
 
 
 
346,460
 
 
 
—
 
 
 
—
 
 
 
4,647
 
 
 
—
 
Municipal lease finance receivables
 
 
—
 
 
 
70,243
 
 
 
—
 
 
 
—
 
 
 
851
 
 
 
—
 
Consumer and other loans
 
 
552
 
 
 
63,677
 
 
 
—
 
 
 
74
 
 
 
679
 
 
 
—
 
PCI loans
 
 
—
 
 
 
—
 
 
 
28,882
 
 
 
—
 
 
 
—
 
 
 
367
 
Total
 
$
15,525
 
 
$
4,792,513
 
 
$
28,882
 
 
$
75
 
 
$
59,143
 
 
$
367
 
Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Excluding PCI Loans by Class of Loans
The following tables present the recorded investment in, and the aging of, past due and nonaccrual loans, excluding PCI loans, by type of loans for the periods presented.
 
 
 
 
December 31, 2018
 
 
 
30-59
Days Past
Due
 
 
60
-
89
Days
Past Due
 
 
Total Past Due
and Accruing
 
 
Nonaccrual

(1) (3)
 
 
Current
 
 
Total Loans
and Financing
Receivables
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
820
 
 
$
89
 
 
$
909
 
 
$
7,490
 
 
$
993,810
 
 
$
1,002,209
 
SBA
 
 
1,172
 
 
 
135
 
 
 
1,307
 
 
 
2,892
 
 
 
345,844
 
 
 
350,043
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
2,439
 
 
 
350
 
 
 
2,789
 
 
 
589
 
 
 
2,114,612
 
 
 
2,117,990
 
Non-owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
5,479
 
 
 
3,270,760
 
 
 
3,276,239
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative (2)
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
118,233
 
 
 
118,233
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
4,549
 
 
 
4,549
 
SFR mortgage
 
 
—
 
 
 
285
 
 
 
285
 
 
 
2,937
 
 
 
293,282
 
 
 
296,504
 
Dairy & livestock and agribusiness
 
 
—
 
 
 
—
 
 
 
—
 
 
 
78
 
 
 
393,765
 
 
 
393,843
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
64,186
 
 
 
64,186
 
Consumer and other loans
 
 
—
 
 
 
—
 
 
 
—
 
 
 
486
 
 
 
127,943
 
 
 
128,429
 
Total gross loans, excluding PCI loans
 
$
4,431
 
 
$
859
 
 
$
5,290
 
 
$
19,951
 
 
$
7,726,984
 
 
$
7,752,225
 
 
(1)
As of December 31, 2018, $2.3 million of nonaccruing loans were current, $33,000 were 30-59 days past due, $57,000 were 60-89 days past due and $17.6 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.
(3)
Includes $12.3 million of nonaccrual loans acquired from CB in the third quarter of 2018.
 
 
December 31, 2017
 
 
 
30-59 
Days Past 
Due
 
 
60-89 
Days Past 
Due
 
 
Total Past 
Due and 
Accruing
 
 
Nonaccrual
(1)
 
 
Current
 
 
Total Loans
and Financing 
Receivables
 
 
 
(Dollars in thousands)
 
Commercial and industrial
 
$
768
 
 
$
—
 
 
$
768
 
 
$
250
 
 
$
512,307
 
 
$
513,325
 
SBA
 
 
403
 
 
 
—
 
 
 
403
 
 
 
906
 
 
 
120,746
 
 
 
122,055
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
4,365
 
 
 
1,091,915
 
 
 
1,096,280
 
Non-owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
2,477
 
 
 
2,277,956
 
 
 
2,280,433
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative (2)
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
60,042
 
 
 
60,042
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
17,940
 
 
 
17,940
 
SFR mortgage
 
 
—
 
 
 
—
 
 
 
—
 
 
 
1,337
 
 
 
234,865
 
 
 
236,202
 
Dairy & livestock and agribusiness
 
 
—
 
 
 
—
 
 
 
—
 
 
 
829
 
 
 
346,460
 
 
 
347,289
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
70,243
 
 
 
70,243
 
Consumer and other loans
 
 
1
 
 
 
—
 
 
 
1
 
 
 
552
 
 
 
63,676
 
 
 
64,229
 
Total gross loans, excluding PCI loans
 
$
1,172
 
 
$
—
 
 
$
1,172
 
 
$
10,716
 
 
$
4,796,150
 
 
$
4,808,038
 
 
(1)
As of December 31, 2017, $3.6 million of nonaccruing loans were current, $
376
,000 were 60-89 days past due and $6.8 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.
Schedule of Held-for-Investment Loans, Excluding PCI Loans, Individually Evaluated for Impairment by Class of Loans
The following tables present information for held-for-investment loans, excluding PCI loans, individually evaluated for impairment by type of loans, as and for the periods presented.
 
 
 
As of and For the Year Ended

December 31, 2018
 
 
 
Recorded

Investment
 
 
Unpaid

Principal

Balance
 
 
Related

Allowance
 
 
Average

Recorded

Investment
 
 
Interest

Income

Recognized
 
 
 
(Dollars in thousands)
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
7,436
 
 
$
11,457
 
 
$
—
 
 
$
7,718
 
 
$
7
 
SBA
 
 
3,467
 
 
 
5,746
 
 
 
—
 
 
 
3,919
 
 
 
44
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
589
 
 
 
705
 
 
 
—
 
 
 
624
 
 
 
—
 
Non-owner occupied
 
 
2,808
 
 
 
4,324
 
 
 
—
 
 
 
4,585
 
 
 
32
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SFR mortgage
 
 
5,349
 
 
 
6,270
 
 
 
—
 
 
 
5,484
 
 
 
80
 
Dairy & livestock and agribusiness
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other loans
 
 
418
 
 
 
526
 
 
 
—
 
 
 
459
 
 
 
—
 
Total
 
 
20,067
 
 
 
29,028
 
 
 
—
 
 
 
22,789
 
 
 
163
 
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
189
 
 
 
191
 
 
 
3
 
 
 
203
 
 
 
—
 
SBA
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-owner occupied
 
 
3,143
 
 
 
3,144
 
 
 
478
 
 
 
3,144
 
 
 
—
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SFR mortgage
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Dairy & livestock and agribusiness
 
 
78
 
 
 
78
 
 
 
12
 
 
 
78
 
 
 
—
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other loans
 
 
68
 
 
 
100
 
 
 
68
 
 
 
76
 
 
 
—
 
Total
 
 
3,478
 
 
 
3,513
 
 
 
561
 
 
 
3,501
 
 
 
—
 
Total impaired loans
 
$
23,545
 
 
$
32,541
 
 
$
561
 
 
$
26,290
 
 
$
163
 
 
 
 
As of and For the Year Ended

December 31, 2017
 
 
 
Recorded 

Investment
 
 
Unpaid

Principal

Balance
 
 
Related

Allowance
 
 
Average

Recorded

Investment
 
 
Interest

Income

Recognized
 
 
 
(Dollars in thousands)
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
440
 
 
$
980
 
 
$
—
 
 
$
548
 
 
$
10
 
SBA
 
 
1,530
 
 
 
1,699
 
 
 
—
 
 
 
1,598
 
 
 
47
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
4,365
 
 
 
4,763
 
 
 
—
 
 
 
4,414
 
 
 
36
 
Non-owner occupied
 
 
3,768
 
 
 
5,107
 
 
 
—
 
 
 
3,951
 
 
 
94
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SFR mortgage
 
 
4,040
 
 
 
4,692
 
 
 
—
 
 
 
4,119
 
 
 
118
 
Dairy & livestock and agribusiness
 
 
829
 
 
 
1,091
 
 
 
—
 
 
 
988
 
 
 
1
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other loans
 
 
174
 
 
 
370
 
 
 
—
 
 
 
202
 
 
 
—
 
Total
 
 
15,146
 
 
 
18,702
 
 
 
—
 
 
 
15,820
 
 
 
306
 
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SBA
 
 
1
 
 
 
18
 
 
 
1
 
 
 
6
 
 
 
—
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SFR mortgage
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Dairy & livestock and agribusiness
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other loans
 
 
378
 
 
 
391
 
 
 
74
 
 
 
385
 
 
 
—
 
Total
 
 
379
 
 
 
409
 
 
 
75
 
 
 
391
 
 
 
—
 
Total impaired loans
 
$
15,525
 
 
$
19,111
 
 
$
75
 
 
$
16,211
 
 
$
306
 
 
 
 
As of and For the Year Ended

December 31, 2016
 
 
 
Recorded

Investment
 
 
Unpaid

Principal

Balance
 
 
Related

Allowance
 
 
Average

Recorded

Investment
 
 
Interest

Income

Recognized
 
 
 
(Dollars in thousands)
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
730
 
 
$
1,646
 
 
$
—
 
 
$
832
 
 
$
26
 
SBA
 
 
3,386
 
 
 
4,189
 
 
 
—
 
 
 
3,709
 
 
 
50
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
1,797
 
 
 
2,276
 
 
 
—
 
 
 
1,410
 
 
 
70
 
Non-owner occupied
 
 
13,331
 
 
 
15,842
 
 
 
—
 
 
 
13,517
 
 
 
592
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SFR mortgage
 
 
5,174
 
 
 
6,075
 
 
 
—
 
 
 
5,327
 
 
 
135
 
Dairy & livestock and agribusiness
 
 
747
 
 
 
747
 
 
 
—
 
 
 
692
 
 
 
47
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other loans
 
 
853
 
 
 
1,423
 
 
 
—
 
 
 
919
 
 
 
18
 
Total
 
 
26,018
 
 
 
32,198
 
 
 
—
 
 
 
26,406
 
 
 
938
 
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
171
 
 
 
171
 
 
 
114
 
 
 
233
 
 
 
9
 
SBA
 
 
196
 
 
 
212
 
 
 
27
 
 
 
206
 
 
 
14
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-owner occupied
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Non-speculative
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
SFR mortgage
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Dairy & livestock and agribusiness
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Municipal lease finance receivables
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other loans
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Total
 
 
367
 
 
 
383
 
 
 
141
 
 
 
439
 
 
 
23
 
Total impaired loans
 
$
26,385
 
 
$
32,581
 
 
$
141
 
 
$
26,845
 
 
$
961
 
Summary of Activity Related to Troubled Debt Restructurings
The following table provides a summary of the activity related to TDRs for the periods presented.
      
 
For the Year Ended December 31,
 
 
 
2018
 
 
2017
 
 
 
(Dollars in thousands)
 
Performing TDRs:
 
 
 
 
 
 
 
 
Beginning balance
 
$
4,809
 
 
$
19,233
 
New modifications
 
 
311
 
 
 
3,143
 
Payoffs/payments, net and other
 
 
(1,526
)
 
 
(14,752
)
TDRs returned to accrual status
 
 
-
 
 
 
329
 
TDRs placed on nonaccrual status
 
 
-
 
 
 
(3,144
)
Ending balance
 
$
3,594
 
 
$
4,809
 
Nonperforming TDRs:
 
 
 
 
 
 
 
 
Beginning balance
 
$
4,200
 
 
$
1,626
 
New modifications
 
 
316
 
 
 
2,066
 
Charge-offs
 
 
-
 
 
 
-
 
Payoffs/payments, net and other
 
 
(1,007
)
 
 
(2,307
)
TDRs returned to accrual status
 
 
-
 
 
 
(329
)
TDRs placed on nonaccrual status
 
 
-
 
 
 
3,144
 
Ending balance
 
$
3,509
 
 
$
4,200
 
Total TDRs
 
$
7,103
 
 
$
9,009
 
Summary of Loans Modified as Troubled Debt Restructurings
The following tables summarize loans modified as troubled debt restructurings for the periods presented.
Modifications (1)
 
 
 
For the Year Ended December 31, 2018
 
 
 
Number 
of 
Loans
 
 
Pre-Modification 
Outstanding 
Recorded
Investment
 
 
Post-Modification 
Outstanding 
Recorded 
Investment
 
 
Outstanding 
Recorded 
Investment at 
December 31, 2018
 
 
Financial Effect 
Resulting From 
Modifications (2)
 
 
 
(Dollars in thousands)
 
Commercial and industrial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
Change in amortization period or maturity
 
 
1
 
 
 
38
 
 
 
38
 
 
 
20
 
 
 
-
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Non-owner occupied
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
SFR mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
1
 
 
 
311
 
 
 
311
 
 
 
300
 
 
 
-
 
Dairy & livestock and agribusiness:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
1
 
 
 
278
 
 
 
278
 
 
 
267
 
 
 
-
 
Total loans
 
 
3
 
 
$
627
 
 
$
627
 
 
$
587
 
 
$
-
 
 
 
 
 
For the Year Ended December 31, 2017
 
 
 
Number 
of 
Loans
 
 
Pre-Modification 

Outstanding 
Recorded 
Investment
 
 
Post-Modification 

Outstanding 
Recorded 
Investment
 
 
Outstanding 
Recorded 
Investment at 
December 31, 2017
 
 
Financial Effect 
Resulting From 
Modifications (2)
 
 
 
(Dollars in thousands)
 
Commercial and industrial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
$
-
 
 
$
-
 
 
$
-
 
 
$
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
1
 
 
 
3,143
 
 
 
3,143
 
 
 
3,143
 
 
 
-
 
Non-owner occupied
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
SFR mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Dairy & livestock and agribusiness:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
1
 
 
 
1,984
 
 
 
1,984
 
 
 
78
 
 
 
-
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Total loans
 
 
2
 
 
$
5,127
 
 
$
5,127
 
 
$
3,221
 
 
$
-
 
 
 
 
 
For the Year Ended December 31, 2016
 
 
 
Number 
of 
Loans
 
 
Pre-Modification 
Outstanding 
Recorded 
Investment
 
 
Post-Modification 
Outstanding 
Recorded 
Investment
 
 
Outstanding 
Recorded 
Investment at 
December 31, 2016
 
 
Financial Effect 
Resulting From 
Modifications (2)
 
 
 
(Dollars in thousands)
 
Commercial and industrial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
1
 
 
$
112
 
 
$
112
 
 
$
103
 
 
$
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
SBA:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
2
 
 
 
214
 
 
 
214
 
 
 
196
 
 
 
28
 
Real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Non-owner occupied
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest
rate reduction
 
 
1
 
 
 
759
 
 
 
759
 
 
 
756
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Dairy & livestock and agribusiness:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
SFR mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
-
 
Change in amortization period or maturity
 
 
3
 
 
 
201
 
 
 
201
 
 
 
185
 
 
 
-
 
Total loans
 
 
7
 
 
$
1,286
 
 
$
1,286
 
 
$
1,240
 
 
$
28
 
 
(1)
The tables above exclude modified loans that were paid off prior to the end of the period.
(2)
Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date.