XML 44 R32.htm IDEA: XBRL DOCUMENT v3.20.2
Loans and Leases Receivable and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Loans and Leases Receivable
The following table presents loans and leases receivable as of September 30, 2020 and December 31, 2019.
(amounts in thousands)September 30, 2020December 31, 2019
Loans and leases receivable, mortgage warehouse, at fair value$3,913,593 $2,245,758 
Loans receivable, PPP4,964,105 — 
Loans receivable:
Commercial:
Multi-family1,950,300 1,907,331 
Commercial and industrial (1)
2,220,715 1,891,152 
Commercial real estate owner occupied557,595 551,948 
Commercial real estate non-owner occupied1,215,516 1,222,772 
Construction122,963 117,617 
Total commercial loans and leases receivable6,067,089 5,690,820 
Consumer:
Residential real estate335,452 382,634 
Manufactured housing64,638 71,359 
Installment1,233,713 1,174,175 
Total consumer loans receivable1,633,803 1,628,168 
Loans and leases receivable (2)
7,700,892 7,318,988 
Allowance for credit losses(155,561)(56,379)
Total loans and leases receivable, net of allowance for credit losses$16,423,029 $9,508,367 
(1)Includes direct finance equipment leases of $106.5 million and $89.2 million at September 30, 2020 and December 31, 2019, respectively.
(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(74.7) million and $2.1 million at September 30, 2020 and December 31, 2019, respectively.
Loans and Leases Receivable by Loan Type and Performance Status
The following tables summarize loans and leases receivable by loan and lease type and performance status as of September 30, 2020 and December 31, 2019:
 September 30, 2020
(amounts in thousands)30-59 Days past due60-89 Days past due90 Days or more past dueTotal past due
Loans and leases not past due (2)
Total loans and leases (3)
Multi-family$— $15,446 $4,790 $20,236 $1,930,064 $1,950,300 
Commercial and industrial— 2,072 7,695 9,767 2,210,948 2,220,715 
Commercial real estate owner occupied— 952 2,436 3,388 554,207 557,595 
Commercial real estate non-owner occupied— — 2,356 2,356 1,213,160 1,215,516 
Construction— — — — 122,963 122,963 
Residential real estate436 3,160 6,327 9,923 325,529 335,452 
Manufactured housing784 608 4,463 5,855 58,783 64,638 
Installment5,468 4,609 3,098 13,175 1,220,538 1,233,713 
Total$6,688 $26,847 $31,165 $64,700 $7,636,192 $7,700,892 

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 industrial2,395 — 2,395 4,531 1,882,700 354 1,889,980 
Commercial real estate owner occupied5,388 — 5,388 1,963 537,992 6,664 552,007 
Commercial real estate non-owner occupied8,034 — 8,034 76 1,211,892 3,527 1,223,529 
Construction— — — — 118,418 — 118,418 
Residential real estate5,924 — 5,924 6,128 359,491 3,471 375,014 
Manufactured housing3,699 1,794 5,493 1,655 61,649 1,601 70,398 
Installment5,756 $— 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 September 30, 2020 table excludes PPP loans of $5.0 billion which are all current as of September 30, 2020.
(3)Includes purchased credit deteriorated loans of $14.4 million at September 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.
 
September 30, 2020 (1)
December 31, 2019 (2)
(amounts in thousands)Nonaccrual loans with no related allowanceNonaccrual loans with related allowanceTotal nonaccrual loansNonaccrual loans with no related allowanceNonaccrual loans with related allowanceTotal nonaccrual loans
Multi-family$8,749 $2,961 $11,710 $4,117 $— $4,117 
Commercial and industrial8,749 884 9,633 3,083 1,448 4,531 
Commercial real estate owner occupied3,399 200 3,599 1,109 854 1,963 
Commercial real estate non-owner occupied2,408 — 2,408 76 — 76 
Residential real estate10,634 — 10,634 4,559 1,569 6,128 
Manufactured housing— 2,778 2,778 — 1,655 1,655 
Installment— 3,118 3,118 140 1,411 1,551 
Total$33,939 $9,941 $43,880 $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 nine months ended September 30, 2020 and 2019 are presented in the tables below.
Three Months Ended September 30, 2020Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
(amounts in thousands)
Ending Balance,
June 30, 2020		$14,697 $12,302 $11,405 $26,493 $5,297 $4,550 $6,014 $79,147 $159,905 
Charge-offs— (2,527)(44)(10,181)— — — (9,194)(21,946)
Recoveries— 2,582 — 1,258 6 17 — 784 4,647 
Provision for credit loss expense329 569 (1,809)2,630 1,120 82 (389)10,423 12,955 
Ending Balance,
September 30, 2020		$15,026 $12,926 $9,552 $20,200 $6,423 $4,649 $5,625 $81,160 $155,561 
Nine Months Ended
September 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 principle2,171 759 5,773 7,918 (98)1,518 3,802 57,986 79,829 
Charge-offs— (2,645)(44)(25,779)— — — (23,744)(52,212)
Recoveries— 2,661 5 1,258 122 72 — 1,759 5,877 
Provision for loan and lease losses6,698 (3,405)1,583 30,560 5,137 (159)763 24,511 65,688 
Ending Balance,
September 30, 2020		$15,026 $12,926 $9,552 $20,200 $6,423 $4,649 $5,625 $81,160 $155,561 
Three Months Ended September 30, 2019Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
(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 
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, 2020 and 2019. There were no modifications that involved forgiveness of debt for the three and nine months ended September 30, 2020 and 2019.
Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investment
Extensions of maturity— $— — $— 6 $385 2 $514 
Interest-rate reductions2 88 7 196 34 1,461 19 628 
Other (1)
65 1,385 — — 65 1,385 — — 
Total67 $1,473 7 $196 105 $3,231 21 $1,142 
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.
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, 2020September 30, 2019
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Manufactured housing5 $201 3 $76 
Commercial real estate owner occupied1 952 — — 
Residential real estate1 95 1 82 
Installment8 $126 — $— 
Total loans15 $1,374 4 $158 
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, 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)20202019201820172016PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Multi-family loans:
Pass$139,734 $23,396 $305,351 $626,402 $271,981 $485,023 $— $— $1,851,887 
Special mention— — — 22,430 10,424 26,836 — — 59,690 
Substandard— — — 17,859 13,799 7,065 — — 38,723 
Doubtful— — — — — — — — — 
Total multi-family loans$139,734 $23,396 $305,351 $666,691 $296,204 $518,924 $— $— $1,950,300 
Commercial and industrial loans and leases:
Pass$564,313 $418,961 $153,659 $118,548 $48,470 $81,179 $739,151 $— $2,124,281 
Special mention13,200 1,193 222 14,739 112 15,348 1,315 — 46,129 
Substandard6,421 9,037 14,343 1,611 8,084 2,925 7,884 — 50,305 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$583,934 $429,191 $168,224 $134,898 $56,666 $99,452 $748,350 $— $2,220,715 
Commercial real estate owner occupied loans:
Pass$46,303 $185,921 $88,291 $71,438 $48,202 $93,679 $741 $— $534,575 
Special mention— — 478 9,260 — 245 — — 9,983 
Substandard— — — 347 2,243 10,447 — — 13,037 
Doubtful— — — — — — — — — 
Total commercial real estate owner occupied loans$46,303 $185,921 $88,769 $81,045 $50,445 $104,371 $741 $— $557,595 
Commercial real estate non-owner occupied:
Pass$135,589 $113,247 $116,794 $225,952 $197,116 $346,107 $— $— $1,134,805 
Special mention— — — — — 10,559 — — 10,559 
Substandard— — — 20,611 2,419 47,122 — — 70,152 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$135,589 $113,247 $116,794 $246,563 $199,535 $403,788 $— $— $1,215,516 
Construction:
Pass$8,679 $98,231 $4,571 $— $9,768 $— $1,714 $— $122,963 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$8,679 $98,231 $4,571 $— $9,768 $— $1,714 $— $122,963 
Total commercial loans and leases receivable$914,239 $849,986 $683,709 $1,129,197 $612,618 $1,126,535 $750,805 $— $6,067,089 
Residential real estate loans:
Performing$7,514 $15,252 $7,647 $12,246 $42,883 $78,365 $161,575 $— $325,482 
Non-performing— — 160 785 1,350 4,395 3,280 — 9,970 
Total residential real estate loans$7,514 $15,252 $7,807 $13,031 $44,233 $82,760 $164,855 $— $335,452 
Manufactured housing loans:
Performing$— $307 $632 $79 $42 $59,193 $— $— $60,253 
Non-performing— — — — — 4,385 — — 4,385 
Total manufactured housing loans$— $307 $632 $79 $42 $63,578 $— $— $64,638 
Installment loans:
Performing$318,780 $790,192 $115,024 $4,726 $513 $1,201 $— $— $1,230,436 
Non-performing305 2,326 485 41 2 118 — — 3,277 
Total installment loans$319,085 $792,518 $115,509 $4,767 $515 $1,319 $— $— $1,233,713 
Total consumer loans$326,599 $808,077 $123,948 $17,877 $44,790 $147,657 $164,855 $— $1,633,803 
Loans and leases receivable$1,240,838 $1,658,063 $807,657 $1,147,074 $657,408 $1,274,192 $915,660 $— $7,700,892 
 December 31, 2019
(amounts in thousands)Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallment
Total (3)
Pass/Satisfactory$1,816,200 $1,841,074 $536,777 $1,129,838 $118,418 $— $— $— $5,442,307 
Special Mention69,637 26,285 8,286 6,949 — — — — 111,157 
Substandard23,437 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 $7,316,903 
(1)Includes residential real estate, manufactured housing, and installment loans not assigned internal ratings.
(2)Includes residential real estate, manufactured housing, and installment loans that are past due and still accruing interest or on nonaccrual status.
(3)Excludes commercial mortgage warehouse loans reported at fair value.
Schedule of Loan Purchases and Sales
Purchases and sales of loans were as follows for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30,Nine Months Ended September 30,
(amounts in thousands)2020201920202019
Purchases (1)
Residential real estate$— $— $495 $105,858 
Installment (2)
15,700 83,898 225,468 534,150 
Total$15,700 $83,898 $225,963 $640,008 
Sales (3)
Commercial and industrial$3,968 $— $3,968 $— 
Commercial real estate non-owner occupied$17,600 $— $17,600 $— 
Installment— — 1,822 — 
Total$21,568 $— $23,390 $— 
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 98.1% and 96.3% of loans outstanding for the three months ended September 30, 2020 and 2019, respectively. The purchase price was 100.2% and 99.4% of loans outstanding for the nine months ended September 30, 2020 and 2019, respectively.
(2)Installment loan purchases for the three and nine months ended September 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 nine months ended September 30, 2019.