XML 59 R27.htm IDEA: XBRL DOCUMENT v3.19.3
Loans and Leases Receivable and Allowance for Loan and Lease Losses (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of Loans and Leases Receivable
The following table presents loans and leases receivable as of September 30, 2019 and December 31, 2018.
(amounts in thousands)September 30, 2019December 31, 2018
Loans receivable, mortgage warehouse, at fair value$2,438,530  $1,405,420  
Loans receivable:
Commercial:
Multi-family2,300,244  3,285,297  
Commercial and industrial (including owner occupied commercial real estate) (1)
2,363,599  1,951,277  
Commercial real estate non-owner occupied1,268,557  1,125,106  
Construction61,200  56,491  
Total commercial loans and leases receivable5,993,600  6,418,171  
Consumer:
Residential real estate628,786  566,561  
Manufactured housing72,616  79,731  
Other consumer643,553  74,035  
Total consumer loans receivable1,344,955  720,327  
Loans and leases receivable7,338,555  7,138,498  
Deferred (fees) costs and unamortized (discounts) premiums, net(2,318) (424) 
Allowance for loan and lease losses(51,053) (39,972) 
Total loans and leases receivable, net of allowance for loan and lease losses$9,723,714  $8,503,522  
(1)Includes direct finance equipment leases of $75.2 million and $54.5 million at September 30, 2019 and December 31, 2018, respectively.
Loans and Leases Receivable by Loan Type and Performance Status
The following tables summarize loans and leases receivable by loan and lease type and performance status as of September 30, 2019 and December 31, 2018:
 September 30, 2019
(amounts in thousands)
30-89 Days past due (1)
90 Days or more past due (1)
Total past due (1)
Non-accrual
Current (2)
Purchased-credit-impaired loans (3)
Total loans and leases (4)
Multi-family$3,662  $—  $3,662  $—  $2,294,926  $1,656  $2,300,244  
Commercial and industrial860  —  860  5,314  1,881,586  374  1,888,134  
Commercial real estate owner occupied686  —  686  2,068  465,934  6,777  475,465  
Commercial real estate non-owner occupied—  —  —  83  1,264,361  4,113  1,268,557  
Construction—  —  —  —  61,200  —  61,200  
Residential real estate2,485  —  2,485  6,093  616,533  3,675  628,786  
Manufactured housing (5)
3,153  1,943  5,096  1,567  64,362  1,591  72,616  
Other consumer3,810  —  3,810  1,140  638,400  203  643,553  
Total$14,656  $1,943  $16,599  $16,265  $7,287,302  $18,389  $7,338,555  
December 31, 2018
(amounts in thousands)
30-89 Days past due (1)
90 Days or more past due (1)
Total past due (1)
Non-accrual
Current (2)
Purchased-credit-impaired loans (3)
Total loans and leases (4)
Multi-family$—  $—  $—  $1,155  $3,282,452  $1,690  $3,285,297  
Commercial and industrial1,914  —  1,914  17,764  1,353,586  536  1,373,800  
Commercial real estate owner occupied193  —  193  1,037  567,809  8,438  577,477  
Commercial real estate non-owner occupied1,190  —  1,190  129  1,119,443  4,344  1,125,106  
Construction—  —  —  —  56,491  —  56,491  
Residential real estate5,940  —  5,940  5,605  550,679  4,337  566,561  
Manufactured housing (5)
3,926  2,188  6,114  1,693  69,916  2,008  79,731  
Other consumer200  —  200  111  73,503  221  74,035  
Total$13,363  $2,188  $15,551  $27,494  $7,073,879  $21,574  $7,138,498  

(1)Includes past due loans and leases that are accruing interest because collection is considered probable.
(2)Loans and leases where next payment due is less than 30 days from the report date.
(3)Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Due to the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans.
(4)Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the ALLL.
(5)Certain manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank of $24 thousand and $0.5 million at September 30, 2019 and December 31, 2018, respectively, which are used to fund past-due payments when the loan becomes 90 days or more delinquent. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio.
Schedule of Allowance for Loan Losses
The changes in the ALLL for the three and nine months ended September 30, 2019 and 2018, and the loans and leases and ALLL by loan and lease type based on impairment-evaluation method as of September 30, 2019 and December 31, 2018 are presented in the tables below.
Three Months Ended September 30, 2019Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingOther consumerTotal
(amounts in thousands)
Ending Balance,
June 30, 2019		$9,926  $13,736  $3,360  $6,159  $649  $4,168  $123  $10,267  $48,388  
Charge-offs—  (349) (45) —  —  —  —  (1,806) (2,200) 
Recoveries—  369  10  —  8  5  —  47  439  
Provision for loan and lease losses(2,428) 2,119  (435) 281  1  (90) 904  4,074  4,426  
Ending Balance,
September 30, 2019		$7,498  $15,875  $2,890  $6,440  $658  $4,083  $1,027  $12,582  $51,053  
Nine Months Ended
September 30, 2019
Ending Balance,
December 31, 2018		$11,462  $12,145  $3,320  $6,093  $624  $3,654  $145  $2,529  $39,972  
Charge-offs(541) (532) (119) —  —  (109) —  (3,493) (4,794) 
Recoveries7  826  235  —  128  20  —  120  1,336  
Provision for loan and lease losses(3,430) 3,436  (546) 347  (94) 518  882  13,426  14,539  
Ending Balance,
September 30, 2019		$7,498  $15,875  $2,890  $6,440  $658  $4,083  $1,027  $12,582  $51,053  
As of September 30, 2019
(amounts in thousands)
Loans and leases receivable:
Individually evaluated for impairment$—  $5,375  $2,084  $83  $—  $9,057  $9,929  $1,140  $27,668  
Collectively evaluated for impairment2,298,588  1,882,385  466,604  1,264,361  61,200  616,054  61,096  642,210  7,292,498  
Loans acquired with credit deterioration1,656  374  6,777  4,113  —  3,675  1,591  203  18,389  
Total loans and leases receivable$2,300,244  $1,888,134  $475,465  $1,268,557  $61,200  $628,786  $72,616  $643,553  $7,338,555  
Allowance for loan and lease losses:
Individually evaluated for impairment$—  $167  $—  $—  $—  $40  $123  $65  $395  
Collectively evaluated for impairment7,498  15,448  2,882  4,555  658  3,727  904  12,362  48,034  
Loans acquired with credit deterioration—  260  8  1,885  —  316  —  155  2,624  
Total allowance for loan and lease losses$7,498  $15,875  $2,890  $6,440  $658  $4,083  $1,027  $12,582  $51,053  
Three Months Ended September 30, 2018Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingOther consumerTotal
(amounts in thousands)
Ending Balance,
June 30, 2018		$12,069  $12,258  $2,988  $6,698  $992  $2,908  $149  $226  $38,288  
Charge-offs—  (90) —  —  —  —  —  (437) (527) 
Recoveries—  30  —  5  11  6  —  4  56  
Provision for loan and lease losses(240) 516  164  (254) 59  987  (55) 1,747  2,924  
Ending Balance,
September 30, 2018		$11,829  $12,714  $3,152  $6,449  $1,062  $3,901  $94  $1,540  $40,741  
Nine Months Ended
September 30, 2018
Ending Balance,
December 31, 2017		$12,168  $10,918  $3,232  $7,437  $979  $2,929  $180  $172  $38,015  
Charge-offs—  (314) (501) —  —  (407) —  (1,155) (2,377) 
Recoveries—  205  326  5  231  69  —  10  846  
Provision for loan and lease losses(339) 1,905  95  (993) (148) 1,310  (86) 2,513  4,257  
Ending Balance,
September 30, 2018		$11,829  $12,714  $3,152  $6,449  $1,062  $3,901  $94  $1,540  $40,741  
As of December 31, 2018
(amounts in thousands)
Loans and leases receivable:
Individually evaluated for impairment$1,155  $17,828  $1,069  $129  $—  $8,631  $10,195  $111  $39,118  
Collectively evaluated for impairment3,282,452  1,355,436  567,970  1,120,633  56,491  553,593  67,528  73,703  7,077,806  
Loans acquired with credit deterioration1,690  536  8,438  4,344  —  4,337  2,008  221  21,574  
Total loans and leases receivable$3,285,297  $1,373,800  $577,477  $1,125,106  $56,491  $566,561  $79,731  $74,035  $7,138,498  
Allowance for loan and lease losses:
Individually evaluated for impairment$539  $261  $1  $—  $—  $41  $3  $—  $845  
Collectively evaluated for impairment10,923  11,516  3,319  4,161  624  3,227  89  2,390  36,249  
Loans acquired with credit deterioration—  368  —  1,932  —  386  53  139  2,878  
Total allowance for loan and lease losses$11,462  $12,145  $3,320  $6,093  $624  $3,654  $145  $2,529  $39,972  
Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans
The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for impaired loans that were individually evaluated for impairment as of September 30, 2019 and December 31, 2018 and the average recorded investment and interest income recognized for the three and nine months ended September 30, 2019 and 2018. Customers had no impaired lease receivables as of September 30, 2019 and December 31, 2018, respectively. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.
 September 30, 2019Three Months Ended
September 30, 2019		Nine Months Ended
September 30, 2019
(amounts in thousands)Recorded investment net of charge-offsUnpaid principal balanceRelated allowanceAverage recorded investmentInterest income recognizedAverage recorded investmentInterest income recognized
With no related allowance recorded:
Multi-family$—  $—  $—  $—  $149  $499  $149  
Commercial and industrial4,602  6,245  —  4,631  991  8,528  1,009  
Commercial real estate owner occupied2,068  2,849  —  1,425  74  1,111  95  
Commercial real estate non-owner occupied83  194  —  89  7  102  7  
Residential real estate4,686  5,007  —  4,526  21  4,654  82  
Manufactured housing4,496  4,496  —  7,229  97  8,656  335  
Other consumer195  195  —  164  76  137  84  
With an allowance recorded:
Multi-family—  —  —  —  —  289  —  
Commercial and industrial773  773  167  3,358  —  4,277  97  
Commercial real estate owner occupied16  16  —  91  —  131  1  
Residential real estate4,371  4,371  40  4,057  47  3,937  101  
Manufactured housing5,433  5,433  123  2,799  45  1,483  49  
Other consumer945  945  65  586  —  293  —  
Total$27,668  $30,524  $395  $28,955  $1,507  $34,097  $2,009  

 December 31, 2018Three Months Ended
September 30, 2018		Nine Months Ended
September 30, 2018
(amounts in thousands)Recorded investment net of charge-offsUnpaid principal balanceRelated allowanceAverage recorded investmentInterest income recognizedAverage recorded investmentInterest income recognized
With no related allowance recorded:
Multi-family$—  $—  $—  $1,343  $—  $672  $8  
Commercial and industrial13,660  15,263  —  7,765  166  7,623  168  
Commercial real estate owner occupied1,037  1,766  —  711  —  711  —  
Commercial real estate non-owner occupied129  241  —  1,347  —  774  8  
Residential real estate4,842  5,128  —  4,281  23  3,952  25  
Manufactured housing10,027  10,027  —  10,147  144  10,011  421  
Other consumer111  111  —  103  1  83  1  
With an allowance recorded:
Multi-family1,155  1,155  539  —  —  —  —  
Commercial and industrial4,168  4,351  261  5,787  27  7,089  39  
Commercial real estate owner occupied32  32  1  336  9  546  11  
Residential real estate3,789  3,789  41  4,398  61  4,760  124  
Manufactured housing168  168  3  227  4  225  10  
Total$39,118  $42,031  $845  $36,445  $435  $36,446  $815  
Summary of Troubled Debt Restructuring Based on Loan Type and Accrual Status
The following table presents total TDRs based on loan type and accrual status at September 30, 2019 and December 31, 2018. Nonaccrual TDRs are included in the reported amount of total non-accrual loans.
 September 30, 2019December 31, 2018
(amounts in thousands)Accruing TDRsNonaccrual TDRsTotalAccruing TDRsNonaccrual TDRsTotal
Commercial and industrial$61  $29  $90  $64  $5,273  $5,337  
Commercial real estate owner occupied16  —  16  32  —  32  
Residential real estate2,964  639  3,603  3,026  667  3,693  
Manufactured housing8,362  1,424  9,786  8,502  1,620  10,122  
Other consumer—  11  11  —  12  12  
Total TDRs$11,403  $2,103  $13,506  $11,624  $7,572  $19,196  
Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession
The following table presents loans modified in a TDR by type of concession for the three and nine months ended September 30, 2019 and 2018. There were no modifications that involved forgiveness of debt for the three and nine months ended September 30, 2019 and 2018.
Three Months Ended September 30,Nine Months Ended September 30,
 2019201820192018
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investment
Extensions of maturity—  $—  —  $—  2  $514  1  $56  
Interest-rate reductions7  196  8  473  19  628  32  1,402  
Total7  $196  8  $473  21  $1,142  33  $1,458  
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment
The following table provides, by loan type, the number of loans modified in TDRs and the related recorded investment for the three and nine months ended September 30, 2019 and 2018.
 Three Months Ended September 30,Nine Months Ended September 30,
2019201820192018
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investment
Commercial and industrial—  $—  —  $—  1  $431  —  $—  
Manufactured housing7  196  7  321  19  628  30  1,093  
Residential real estate—  —  1  152  1  83  2  352  
Other consumer—  —  —  —  —  —  1  13  
Total loans7  $196  8  $473  21  $1,142  33  $1,458  
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment Within Twelve Months
The following table presents, by loan type, the number of loans modified in TDRs and the related recorded investment, for which there was a payment default within twelve months following the modification:
September 30, 2019September 30, 2018
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Manufactured housing3  $76  —  $—  
Residential real estate1  82  —  —  
Total loans4  $158  —  $—  
Changes in Accretable Yield Related to Purchased-credit-impaired Loans
The changes in accretable yield related to PCI loans for the three and nine months ended September 30, 2019 and 2018 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(amounts in thousands)2019201820192018
Accretable yield balance, beginning of period$5,807  $7,403  $6,178  $7,825  
Accretion to interest income(256) (310) (911) (1,164) 
Reclassification from nonaccretable difference and disposals, net(67) (4) 217  428  
Accretable yield balance, end of period$5,484  $7,089  $5,484  $7,089  
Credit Ratings of Covered and Non-Covered Loan Portfolio The following tables present the credit ratings of loans and leases receivable as of September 30, 2019 and December 31, 2018.
 September 30, 2019
(amounts in thousands)Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingOther consumer
Total (3)
Pass/Satisfactory$2,259,366  $1,836,857  $459,549  $1,200,664  $61,200  $—  $—  $—  $5,817,636  
Special Mention21,449  27,454  8,342  11,633  —  —  —  —  68,878  
Substandard19,429  23,823  7,574  56,260  —  —  —  —  107,086  
Performing (1)
—  —  —  —  —  620,208  65,953  638,603  1,324,764  
Non-performing (2)
—  —  —  —  —  8,578  6,663  4,950  20,191  
Total$2,300,244  $1,888,134  $475,465  $1,268,557  $61,200  $628,786  $72,616  $643,553  $7,338,555  

 December 31, 2018
(amounts in thousands)Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingOther consumer
Total (3)
Pass/Satisfactory$3,201,822  $1,306,466  $562,639  $1,054,493  $56,491  $—  $—  $—  $6,181,911  
Special Mention55,696  30,551  9,730  30,203  —  —  —  —  126,180  
Substandard27,779  36,783  5,108  40,410  —  —  —  —  110,080  
Performing (1)
—  —  —  —  —  555,016  71,924  73,724  700,664  
Non-performing (2)
—  —  —  —  —  11,545  7,807  311  19,663  
Total$3,285,297  $1,373,800  $577,477  $1,125,106  $56,491  $566,561  $79,731  $74,035  $7,138,498  
(1)Includes residential real estate, manufactured housing, and other consumer loans not assigned internal ratings.
(2)Includes residential real estate, manufactured housing, and other consumer loans that are past due and still accruing interest or on nonaccrual status.
(3)Excludes commercial mortgage warehouse loans reported at fair value.
Schedule of Loan Purchases and Sales
Purchases and sales of loans were as follows for the three and nine months ended September 30, 2019 and 2018:
Three Months Ended September 30,Nine Months Ended September 30,
(amounts in thousands)2019201820192018
Purchases (1)
Residential real estate$—  $25,807  $105,858  $303,181  
Other consumer (2)
83,898  46,843  534,150  46,843  
Total$83,898  $72,650  $640,008  $350,024  
Sales (3)
Commercial and industrial (4)
$—  $(6,691) $—  $(23,840) 
Commercial real estate owner occupied (4)
—  (5,387) —  (14,968) 
Total$—  $(12,078) $—  $(38,808) 
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 96.3% and 95.3% of loans outstanding for the three months ended September 30, 2019 and 2018, respectively. The purchase price was 99.4% and 99.3% of loans outstanding for the nine months ended September 30, 2019 and 2018, respectively.
(2)Other consumer loan purchases for the three and nine months ended September 30, 2019 consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination or purchase. Customers considers sub-prime borrowers to be those with FICO scores below 660.
(3)Amounts reported in the above table are the unpaid principal balance at time of sale. There were no loan sales for the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2018, loan sales resulted in gains of $1.1 million and $3.4 million, respectively.
(4)Primarily sales of SBA loans.