XML 43 R31.htm IDEA: XBRL DOCUMENT

Loans and Leases Receivable and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

The following table presents loans and leases receivable as of June 30, 2020 and December 31, 2019.


(amounts in thousands)	June 30, 2020		December 31, 2019
Loans and leases receivable, mortgage warehouse, at fair value	$	2,793,164	$	2,245,758
Loans receivable, PPP	4,760,427		—
Loans receivable:
Commercial:
Multi-family	1,581,839		1,907,331
Commercial and industrial ⁽¹⁾	2,099,442		1,891,152
Commercial real estate owner occupied	544,772		551,948
Commercial real estate non-owner occupied	1,244,773		1,222,772
Construction	128,834		117,617
Total commercial loans and leases receivable	5,599,660		5,690,820
Consumer:
Residential real estate	348,109		382,634
Manufactured housing	66,865		71,359
Other consumer	1,257,813		1,174,175
Total consumer loans receivable	1,672,787		1,628,168
Loans and leases receivable ⁽²⁾	7,272,447		7,318,988

Allowance for credit losses	(159,905)		(56,379)
Total loans and leases receivable, net of allowance for credit losses	$	14,666,133	$	9,508,367

(1)Includes direct finance equipment leases of $96.4 million and $89.2 million at June 30, 2020 and December 31, 2019, respectively.

(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(83.1) million and $2.1 million at June 30, 2020 and December 31, 2019, 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 June 30, 2020 and December 31, 2019:


	June 30, 2020
(amounts in thousands)	30-59 Days past due		60-89 Days past due		90 Days or more past due		Total past due		Loans and leases not past due ⁽²⁾		Total loans and leases⁽³⁾
Multi-family	$	—	$	16,790	$	7,013	$	23,803	$	1,558,036	$	1,581,839
Commercial and industrial	523		123		9,974		10,620		2,088,822		2,099,442

Commercial real estate owner occupied	—		4,888		4,022		8,910		535,862		544,772
Commercial real estate non-owner occupied	97		—		30,257		30,354		1,214,419		1,244,773
Construction	—		—		—		—		128,834		128,834
Residential real estate	8,631		441		7,857		16,929		331,180		348,109
Manufactured housing ⁽⁵⁾	1,172		—		5,069		6,241		60,624		66,865
Other consumer	11,415		—		4,887		16,302		1,241,511		1,257,813
Total	$	21,838	$	22,242	$	69,079	$	113,159	$	7,159,288	$	7,272,447


	December 31, 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 ⁽⁴⁾		Total loans and leases ⁽⁵⁾
Multi-family	$	2,133	—		$	2,133	$	4,117	$	1,901,336	$	1,688	$	1,909,274
Commercial and industrial	2,395		—		2,395		4,531		1,882,700		354		1,889,980
Commercial real estate owner occupied	5,388		—		5,388		1,963		537,992		6,664		552,007
Commercial real estate non-owner occupied	8,034		—		8,034		76		1,211,892		3,527		1,223,529
Construction	—		—		—		—		118,418		—		118,418
Residential real estate	5,924		—		5,924		6,128		359,491		3,471		375,014
Manufactured housing	3,699		1,794		5,493		1,655		61,649		1,601		70,398
Other consumer	5,756		$	—	5,756		1,551		1,170,793		183		1,178,283
Total	$	33,329	$	1,794	$	35,123	$	20,021	$	7,244,271	$	17,488	$	7,316,903

(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. The June 30, 2020 table excludes PPP loans of $4.8 billion which are all current as of June 30, 2020.

(3)Includes purchased credit deteriorated loans of $15.7 million at June 30, 2020.

(4)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.

(5)Amounts exclude deferred costs and fees and unamortized premiums and discounts.

Amortized cost of Loans and Leases on Nonaccrual Status

The following table presents the amortized cost of loans and leases on nonaccrual status.


	June 30, 2020 ⁽¹⁾										December 31, 2019 ⁽²⁾
(amounts in thousands)	Nonaccrual loans with no related allowance		Nonaccrual loans with related allowance		Total nonaccrual loans		Nonaccrual loans with no related allowance		Nonaccrual loans with related allowance		Total nonaccrual loans
Multi-family	$	4,004	$	3,009	$	7,013	$	4,117	$	—	$	4,117
Commercial and industrial	9,000		974		9,974		3,083		1,448		4,531

Commercial real estate owner occupied	3,933		89		4,022		1,109		854		1,963
Commercial real estate non-owner occupied	30,257		—		30,257		76		—		76
Construction	—		—		—		—		—		—
Residential real estate	7,857		—		7,857		4,559		1,569		6,128
Manufactured housing	536		2,795		3,331		—		1,655		1,655
Other consumer	1,808		3,079		4,887		140		1,411		1,551
Total	$	57,395	$	9,946	$	67,341	$	13,084	$	6,937	$	20,021

(1) Presented at amortized cost basis.

(2) Amounts exclude deferred costs and fees and unamortized premiums and discounts.

Schedule of Allowance for Credit Losses on Loans and Leases

The changes in the allowance for credit losses on loans and leases for the three and six months ended June 30, 2020 and 2019 are presented in the tables below.


Three Months Ended June 30, 2020	Multi-family		Commercial and industrial		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Construction		Residential real estate		Manufactured housing		Other consumer		Total
(amounts in thousands)
Beginning balance, at March 31, 2020	$	8,750	$	18,806	$	8,527	$	18,530	$	1,934	$	4,180	$	4,987	$	83,569	$	149,283


Charge-offs	—		(20)		—		(2,801)		—		—		—		(8,304)		(11,125)
Recoveries	—		25		2		—		113		26		—		635		801
Provision for credit loss expense	5,947		(6,509)		2,876		10,764		3,250		344		1,027		3,247		20,946
Ending Balance, June 30, 2020	$	14,697	$	12,302	$	11,405	$	26,493	$	5,297	$	4,550	$	6,014	$	79,147	$	159,905
Six Months Ended June 30, 2020
Ending Balance, December 31, 2019	$	6,157	$	15,556	$	2,235	$	6,243	$	1,262	$	3,218	$	1,060	$	20,648	$	56,379
Cumulative effect of change in accounting principle	2,171		759		5,773		7,918		(98)		1,518		3,802		57,986		79,829
Charge-offs	—		(117)		—		(15,598)		—		—		—		(14,550)		(30,265)
Recoveries	—		79		5		—		116		55		—		975		1,230
Provision for loan and lease losses	6,369		(3,975)		3,392		27,930		4,017		(241)		1,152		14,088		52,732
Ending Balance, June 30, 2020	$	14,697	$	12,302	$	11,405	$	26,493	$	5,297	$	4,550	$	6,014	$	79,147	$	159,905


Three Months Ended June 30, 2019	Multi-family		Commercial and industrial		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Construction		Residential real estate		Manufactured housing		Other consumer		Total
(amounts in thousands)
Ending Balance, March 31, 2019	$	10,630	$	12,647	$	3,425	$	6,015	$	584	$	6,572	$	117	$	3,689	$	43,679
Charge-offs	—		(183)		(66)		—		—		(69)		—		(932)		(1,250)

Recoveries	7		338		97		—		114		8		—		49		613
Provision for loan and lease losses	(711)		934		(96)		144		(49)		(2,343)		6		7,461		5,346
Ending Balance, June 30, 2019	$	9,926	$	13,736	$	3,360	$	6,159	$	649	$	4,168	$	123	$	10,267	$	48,388
Six Months Ended June 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)		(183)		(74)		—		—		(109)		—		(1,687)		(2,594)

Recoveries	7		457		225		—		120		15		—		73		897
Provision for loan and lease losses	(1,002)		1,317		(111)		66		(95)		608		(22)		9,352		10,113
Ending Balance, June 30, 2019	$	9,926	$	13,736	$	3,360	$	6,159	$	649	$	4,168	$	123	$	10,267	$	48,388

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 six months ended June 30, 2020 and 2019. There were no modifications that involved forgiveness of debt for the three and six months ended June 30, 2020 and 2019.


	Three Months Ended June 30,										Six Months Ended June 30,
	2020				2019					2020			2019
(dollars in thousands)	Number of loans	Recorded investment		Number of loans	Recorded investment		Number of loans	Recorded investment		Number of loans	Recorded investment
Extensions of maturity	2	$	140	—	$	—	6	$	385	2	$	514
Interest-rate reductions	20	843		2	47		32	1,373		12	432
Total	22	$	983	2	$	47	38	$	1,758	14	$	946

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:


	June 30, 2020				June 30, 2019
(dollars in thousands)	Number of loans	Recorded investment		Number of loans	Recorded investment
Manufactured housing	—	$	—	3	$	108
Commercial and industrial	—	—		1	—
Commercial real estate owner occupied	1	958		—	—
Residential real estate	4	313		—	—

Total loans	5	$	1,271	4	$	108

Credit Ratings of Covered and Non-Covered Loan Portfolio

The following tables present the credit ratings of loans and leases receivable as of June 30, 2020 and December 31, 2019. PPP loans are excluded in the tables below as these loans are fully guaranteed by the SBA.


	Term Loans Amortized Cost Basis by Origination Year
(in thousands)	2020		2019		2018		2017		2016		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total






Multi-family loans:
Pass	$	124,920	$	23,534	$	170,856	$	417,942	$	264,780	$	507,568	$	—	$	—	$	1,509,600
Special mention	—		—		—		19,509		1,960		17,753		—		—		39,222
Substandard	—		—		—		12,006		13,862		7,149		—		—		33,017
Doubtful	—		—		—		—		—		—		—		—		—
Total multi-family loans	$	124,920	$	23,534	$	170,856	$	449,457	$	280,602	$	532,470	$	—	$	—	$	1,581,839
Commercial and industrial loans and leases:
Pass	$	439,083	$	462,717	$	152,557	$	109,701	$	52,470	$	94,383	$	698,721	$	—	$	2,009,632
Special mention	—		7,258		2,297		17,402		116		25		17,957		—		45,055
Substandard	6,360		5,327		12,776		1,663		7,530		3,042		8,057		—		44,755
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial and industrial loans and leases	$	445,443	$	475,302	$	167,630	$	128,766	$	60,116	$	97,450	$	724,735	$	—	$	2,099,442
Commercial real estate owner occupied loans:
Pass	$	31,240	$	184,684	$	86,611	$	72,708	$	48,643	$	95,921	$	1,628	$	—	$	521,435
Special mention	—		—		480		9,484		—		392		—		—		10,356
Substandard	—		—		—		350		2,255		10,376		—		—		12,981
Doubtful	—		—		—		—		—		—		—		—		—
Total commercial real estate owner occupied loans	$	31,240	$	184,684	$	87,091	$	82,542	$	50,898	$	106,689	$	1,628	$	—	$	544,772






Commercial real estate non-owner occupied:
Pass	$	117,101	$	117,140	$	117,600	$	249,173	$	199,822	$	376,641	$	—	$	—	$	1,177,477
Special mention	—		—		—		—		—		10,477		—		—		10,477
Substandard	—		—		—		—		2,437		26,461		—		—		28,898
Doubtful	—		—		27,921		—		—		—		—		—		27,921
Total commercial real estate non-owner occupied loans	$	117,101	$	117,140	$	145,521	$	249,173	$	202,259	$	413,579	$	—	$	—	$	1,244,773
Construction:
Pass	$	4,862	$	88,550	$	23,358	$	—	$	9,803	$	—	$	2,261	$	—	$	128,834
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—		—
Total construction loans	$	4,862	$	88,550	$	23,358	$	—	$	9,803	$	—	$	2,261	$	—	$	128,834
Total commercial loans and leases receivable	$	723,566	$	889,210	$	594,456	$	909,938	$	603,678	$	1,150,188	$	728,624	$	—	$	5,599,660
Residential real estate loans:
Performing	$	2,349	$	54,663	$	64,362	$	67,128	$	46,654	$	83,669	$	21,803	$	—	$	340,628
Non-performing	66		—		857		823		865		4,441		429		—		7,481
Total residential real estate loans	$	2,415	$	54,663	$	65,219	$	67,951	$	47,519	$	88,110	$	22,232	$	—	$	348,109
Manufactured housing loans:
Performing	$	—	$	311	$	640	$	80	$	43	$	62,072	$	—	$	—	$	63,146
Non-performing	—		—		—		—		—		3,719		—		—		3,719
Total manufactured housing loans	$	—	$	311	$	640	$	80	$	43	$	65,791	$	—	$	—	$	66,865
Other consumer loans:
Performing	$	165,436	$	943,581	$	135,926	$	6,034	$	648	$	1,292	$	32	$	—	$	1,252,949
Non-performing	243		3,610		853		23		—		135		—		—		4,864
Total other consumer loans	$	165,679	$	947,191	$	136,779	$	6,057	$	648	$	1,427	$	32	$	—	$	1,257,813
Total consumer loans	$	168,094	$	1,002,165	$	202,638	$	74,088	$	48,210	$	155,328	$	22,264	$	—	$	1,672,787
Loans and leases receivable	$	891,660	$	1,891,375	$	797,094	$	984,026	$	651,888	$	1,305,516	$	750,888	$	—	$	7,272,447


	December 31, 2019
(amounts in thousands)	Multi-family		Commercial and industrial		Commercial real estate owner occupied		Commercial real estate non-owner occupied		Construction		Residential real estate		Manufactured housing		Other consumer		Total ⁽³⁾
Pass/Satisfactory	$	1,816,200	$	1,841,074	$	536,777	$	1,129,838	$	118,418	$	—	$	—	$	—	$	5,442,307
Special Mention	69,637		26,285		8,286		6,949		—		—		—		—		111,157
Substandard	23,437		22,621		6,944		86,742		—		—		—		—		139,744
Performing ⁽¹⁾	—		—		—		—		—		362,962		63,250		1,170,976		1,597,188
Non-performing ⁽²⁾	—		—		—		—		—		12,052		7,148		7,307		26,507
Total	$	1,909,274	$	1,889,980	$	552,007	$	1,223,529	$	118,418	$	375,014	$	70,398	$	1,178,283	$	7,316,903

(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 six months ended June 30, 2020 and 2019:


	Three Months Ended June 30,						Six Months Ended June 30,
(amounts in thousands)	2020		2019		2020		2019
Purchases ⁽¹⁾





Residential real estate	$	—	$	39,474	$	495	$	105,858

Other consumer ⁽²⁾	18,008		384,116		209,768		450,252
Total	$	18,008	$	423,590	$	210,263	$	556,110
Sales ⁽³⁾







Other consumer	—		—		1,822		—
Total	$	—	$	—	$	1,822	$	—

(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 98.5% and 100.6% of loans outstanding for the three months ended June 30, 2020 and 2019, respectively. The purchase price was 100.4% and 99.9% of loans outstanding for the six months ended June 30, 2020 and 2019, respectively.

(2)Other consumer loan purchases for the three and six months ended June 30, 2020 and 2019 consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. 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 in the three and six months ended June 30, 2019.