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Loans Receivable and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
 
March 31, 2016
 
December 31, 2015
 
(In thousands)
Loan portfolio composition
 
 
 
Real estate loans:
 
 
 
Residential
$
32,390

 
$
33,797

Commercial & industrial
4,957,751

 
4,912,655

Construction
142,376

 
123,030

Total real estate loans
5,132,517

 
5,069,482

Commercial business
1,032,078

 
980,153

Trade finance
86,342

 
99,163

Consumer and other
124,064

 
102,573

Total loans outstanding
6,375,001

 
6,251,371

Less: deferred loan fees
(3,066
)
 
(3,030
)
Loans receivable
6,371,935

 
6,248,341

Less: allowance for loan losses
(76,856
)
 
(76,408
)
Loans receivable, net of allowance for loan losses
$
6,295,079

 
$
6,171,933
Loans and Leases Acquired, Accretable Yield Movement Schedule
The following table presents changes in the accretable discount on the ACILs for the three months ended March 31, 2016 and 2015:
 
Three Months Ended March 31,

2016

2015

(In thousands)
Balance at beginning of period
$
23,777


$
24,051

Accretion
(3,029
)

(1,555
)
Changes in expected cash flows
1,349


149

Balance at end of period
$
22,097


$
22,645
Allowance for Loan Losses by Portfolio Segment
The following tables detail the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015:
 
 
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
42,829

 
$
16,332

 
$
3,592

 
$
556

 
$
12,823

 
$
214

 
$
—

 
$
62

 
$
76,408

Provision (credit) for loan losses
(1,218
)
 
3,147

 
(1,507
)
 
276

 
(82
)
 
(112
)
 
—

 
(4
)
 
500

Loans charged off
(19
)
 
(621
)
 
—

 
(65
)
 
(116
)
 
—

 
—

 
—

 
(821
)
Recoveries of charge offs
523

 
190

 
—

 
1

 
1

 
52

 
—

 
2

 
769

Balance, end of period
$
42,115

 
$
19,048

 
$
2,085

 
$
768

 
$
12,626

 
$
154

 
$
—

 
$
60

 
$
76,856


 
 
 
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
38,775

 
$
15,986

 
$
3,456

 
$
427

 
$
8,573

 
$
485

 
$
—

 
$
56

 
$
67,758

Provision (credit) for loan losses
(3,621
)
 
(22
)
 
(186
)
 
(1
)
 
5,310

 
23

 
—

 
(3
)
 
1,500

Loans charged off
(182
)
 
(451
)
 
(229
)
 
(13
)
 
(159
)
 
(87
)
 
—

 
(4
)
 
(1,125
)
Recoveries of charge offs
800

 
655

 
—

 
3

 
—

 
1

 
—

 
2

 
1,461

Balance, end of period
$
35,772

 
$
16,168

 
$
3,041

 
$
416

 
$
13,724

 
$
422

 
$
—

 
$
51

 
$
69,594


The following tables disaggregate the allowance for loan losses and the loans outstanding by impairment methodology at March 31, 2016 and December 31, 2015:
 
March 31, 2016
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
1,760

 
$
6,513

 
$
1,307

 
$
—

 
$
208

 
$
96

 
$
—

 
$
—

 
$
9,884

Collectively evaluated for impairment
40,355

 
12,535

 
778

 
768

 
541

 
58

 
—

 
60

 
55,095

ACILs
—

 
—

 
—

 
—

 
11,877

 
—

 
—

 
—

 
11,877

Total
$
42,115

 
$
19,048

 
$
2,085

 
$
768

 
$
12,626

 
$
154

 
$
—

 
$
60

 
$
76,856

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
65,354

 
$
46,534

 
$
8,081

 
$
786

 
$
17,952

 
$
1,262

 
$
—

 
$
455

 
$
140,424

Collectively evaluated for impairment
4,815,539

 
949,346

 
78,261

 
84,441

 
166,190

 
16,328

 
—

 
19,813

 
6,129,918

ACILs
—

 
—

 
—

 
—

 
67,482

 
18,608

 
—

 
18,569

 
104,659

Total
$
4,880,893

 
$
995,880

 
$
86,342

 
$
85,227

 
$
251,624

 
$
36,198

 
$
—

 
$
38,837

 
$
6,375,001


 
December 31, 2015
 
Legacy
 
Acquired
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(In thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
1,663

 
$
4,188

 
$
2,603

 
$
—

 
$
225

 
$
128

 
$
—

 
$
—

 
$
8,807

Collectively evaluated for impairment
41,166

 
12,144

 
989

 
556

 
616

 
86

 
—

 
62

 
55,619

ACILs
—

 
—

 
—

 
—

 
11,982

 
—

 
—

 
—

 
11,982

Total
$
42,829

 
$
16,332

 
$
3,592

 
$
556

 
$
12,823

 
$
214

 
$
—

 
$
62

 
$
76,408

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
63,376

 
$
40,352

 
$
12,548

 
$
812

 
$
19,109

 
$
1,235

 
$
—

 
$
658

 
$
138,090

Collectively evaluated for impairment
4,717,300

 
896,041

 
86,615

 
60,570

 
200,753

 
22,660

 
—

 
20,533

 
6,004,472

ACILs
—

 
—

 
—

 
—

 
68,944

 
19,865

 
—

 
20,000

 
108,809

Total
$
4,780,676

 
$
936,393

 
$
99,163

 
$
61,382

 
$
288,806

 
$
43,760

 
$
—

 
$
41,191

 
$
6,251,371
Impaired Financing Receivables
The recorded investment in individually impaired loans was as follows:
 
March 31, 2016
 
December 31, 2015
 
(In thousands)
With allocated allowance
 
 
 
Without charge off
$
79,747

 
$
77,922

With charge off
458

 
155

With no allocated allowance
 
 
 
Without charge off
57,138

 
57,585

With charge off
3,081

 
2,428

Allowance on impaired loans
(9,884
)
 
(8,807
)
Impaired loans, net of allowance
$
130,540

 
$
129,283


The following tables detail impaired loans (Legacy and APLs that became impaired subsequent to being acquired) as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 and for the year ended December 31, 2015. Loans with no related allowance for loan losses are believed by management to have adequate collateral securing their carrying value.
 
 
 
As of March 31, 2016
 
For the Three Months Ended March 31, 2016
Total Impaired Loans
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

Retail
 
1,553

 
1,686

 
195

 
1,712

 
—

Hotel & motel
 
4,526

 
4,526

 
258

 
4,611

 
57

Gas station & car wash
 
530

 
562

 
26

 
1,050

 
—

Mixed use
 
562

 
1,085

 
8

 
563

 
2

Industrial & warehouse
 
556

 
556

 
—

 
560

 
6

Other
 
24,321

 
24,562

 
1,481

 
24,462

 
275

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
39,956

 
40,326

 
6,609

 
35,742

 
265

Trade finance
 
8,081

 
8,083

 
1,307

 
10,314

 
94

Consumer and other
 
120

 
120

 
—

 
128

 
1

 
 
$
80,205

 
$
81,506

 
$
9,884

 
$
79,142

 
$
700

With no related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

Retail
 
10,906

 
11,795

 
—

 
11,105

 
100

Hotel & motel
 
8,107

 
12,173

 
—

 
7,849

 
22

Gas station & car wash
 
5,576

 
8,423

 
—

 
4,665

 
34

Mixed use
 
2,346

 
2,589

 
—

 
2,364

 
12

Industrial & warehouse
 
10,808

 
12,222

 
—

 
9,888

 
85

Other
 
12,173

 
13,473

 
—

 
12,712

 
90

Real estate—construction
 
1,342

 
1,465

 
—

 
1,355

 
—

Commercial business
 
7,840

 
9,770

 
—

 
8,950

 
41

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
1,121

 
1,176

 
—

 
1,228

 
7

 
 
$
60,219

 
$
73,086

 
$
—

 
$
60,116

 
$
391

Total
 
$
140,424

 
$
154,592

 
$
9,884

 
$
139,258

 
$
1,091


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.
 
 
For the Three Months Ended March 31, 2015
Total Impaired Loans
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
Real estate—residential
 
$
—

 
$
—

Real estate—commercial
 
 
 
 
Retail
 
4,406

 
44

Hotel & motel
 
12,493

 
129

Gas station & car wash
 
1,359

 
—

Mixed use
 
481

 
—

Industrial & warehouse
 
4,516

 
76

Other
 
8,845

 
88

Real estate—construction
 
—

 
—

Commercial business
 
33,856

 
287

Trade finance
 
4,509

 
35

Consumer and other
 
7

 
—

 
 
$
70,472

 
$
659

With no related allowance:
 
 
 
 
Real estate—residential
 
$
—

 
$
—

Real estate—commercial
 
 
 
 
Retail
 
10,792

 
87

Hotel & motel
 
5,922

 
—

Gas station & car wash
 
3,245

 
25

Mixed use
 
1,793

 
9

Industrial & warehouse
 
11,917

 
77

Other
 
8,620

 
38

Real estate—construction
 
1,500

 
—

Commercial business
 
7,958

 
79

Trade finance
 
1,638

 
—

Consumer and other
 
1,084

 
7

 
 
$
54,469

 
$
322

Total
 
$
124,941

 
$
981

*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.

 
 
As of March 31, 2016
 
For the Three Months Ended March 31, 2016
Impaired APLs
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
1,168

 
1,263

 
184

 
1,169

 
—

Hotel & motel
 
—

 
—

 
—

 
—

 
—

Gas station & car wash
 
—

 
—

 
—

 
509

 
—

Mixed use
 
493

 
489

 
8

 
493

 
2

Industrial & warehouse
 
—

 
—

 
—

 
—

 
—

Other
 
303

 
303

 
16

 
305

 
4

Real estate—construction
 
—

 
—

 
—

 
—

 


Commercial business
 
586

 
653

 
96

 
576

 
3

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

 
 
$
2,550

 
$
2,708

 
$
304

 
$
3,052

 
$
9

With no related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
2,500

 
2,652

 
—

 
2,571

 
26

Hotel & motel
 
6,751

 
9,058

 
—

 
6,882

 
17

Gas station & car wash
 
1,595

 
1,846

 
—

 
1,392

 
25

Mixed use
 
272

 
282

 
—

 
273

 
3

Industrial & warehouse
 
1,095

 
1,281

 
—

 
1,111

 
2

Other
 
3,775

 
4,784

 
—

 
3,826

 
14

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
676

 
1,036

 
—

 
672

 
8

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
455

 
501

 
—

 
557

 
2

 
 
$
17,119

 
$
21,440

 
$
—

 
$
17,284

 
$
97

Total
 
$
19,669

 
$
24,148

 
$
304

 
$
20,336

 
$
106



*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.



 
 
For the Three Months Ended March 31, 2015
Impaired APLs
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
Real estate—residential
 
$
—

 
$
—

Real estate—commercial
 
 
 
 
Retail
 
2,128

 
37

Hotel & motel
 
—

 
—

Gas station & car wash
 
1,237

 
—

Mixed use
 
352

 
—

Industrial & warehouse
 
180

 
5

Other
 
1,040

 
4

Real estate—construction
 
—

 
—

Commercial business
 
713

 
1

Trade finance
 
—

 
—

Consumer and other
 
1

 
—

 
 
$
5,651

 
$
47

With no related allowance:
 
 
 
 
Real estate—residential
 
$
—

 
$
—

Real estate—commercial
 
 
 
 
Retail
 
2,370

 
6

Hotel & motel
 
5,555

 
—

Gas station & car wash
 
521

 
15

Mixed use
 
111

 
—

Industrial & warehouse
 
1,481

 
1

Other
 
4,490

 
10

Real estate—construction
 
—

 
—

Commercial business
 
1,021

 
3

Trade finance
 
—

 
—

Consumer and other
 
622

 
2

 
 
$
16,171

 
$
37

Total
 
$
21,822

 
$
84


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.






 
 
As of December 31, 2015
 
For the Year Ended
December 31, 2015
Total Impaired Loans
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
1,871

 
1,984

 
230

 
3,388

 
—

Hotel & motel
 
4,697

 
4,707

 
158

 
10,512

 
230

Gas station & car wash
 
1,569

 
1,625

 
47

 
1,542

 
59

Mixed use
 
564

 
1,087

 
13

 
498

 
9

Industrial & warehouse
 
563

 
563

 
—

 
3,686

 
25

Other
 
24,603

 
24,851

 
1,440

 
12,585

 
1,110

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
31,527

 
31,832

 
4,316

 
31,790

 
998

Trade finance
 
12,548

 
12,548

 
2,603

 
6,209

 
527

Consumer and other
 
135

 
135

 
—

 
153

 
7

 
 
$
78,077

 
$
79,332

 
$
8,807

 
$
70,363

 
$
2,965

With no related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
11,305

 
12,051

 
—

 
10,779

 
464

Hotel & motel
 
7,592

 
10,180

 
—

 
6,455

 
93

Gas station & car wash
 
3,754

 
6,435

 
—

 
3,685

 
107

Mixed use
 
2,382

 
2,604

 
—

 
2,375

 
51

Industrial & warehouse
 
8,967

 
10,608

 
—

 
10,186

 
254

Other
 
13,250

 
14,234

 
—

 
9,355

 
362

Real estate—construction
 
1,369

 
1,470

 
—

 
1,153

 
—

Commercial business
 
10,059

 
12,063

 
—

 
8,722

 
345

Trade finance
 
—

 
—

 
—

 
986

 
—

Consumer and other
 
1,335

 
1,431

 
—

 
1,177

 
26

 
 
$
60,013

 
$
71,076

 
$
—

 
$
54,873

 
$
1,702

Total
 
$
138,090

 
$
150,408

 
$
8,807

 
$
125,236

 
$
4,667


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.




 
 
As of December 31, 2015
 
For the Year Ended
December 31, 2015
Impaired APLs
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related Allowance
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
Retail
 
1,171

 
1,173

 
197

 
1,835

 
—

Hotel & motel
 
—

 
—

 
—

 
—

 
—

Gas station & car wash
 
1,017

 
1,062

 
6

 
1,246

 
59

Mixed use
 
494

 
491

 
5

 
380

 
9

Industrial & warehouse
 
—

 
—

 
—

 
72

 
—

Other
 
306

 
306

 
17

 
797

 
16

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
566

 
645

 
128

 
671

 
15

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

 
 
$
3,554

 
$
3,677

 
$
353

 
$
5,001

 
$
99

With no related allowance:
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 

 
 
 
 
 
 
Retail
 
2,642

 
2,756

 
—

 
2,301

 
105

Hotel & motel
 
7,014

 
9,303

 
—

 
5,889

 
73

Gas station & car wash
 
1,188

 
1,299

 
—

 
651

 
64

Mixed use
 
273

 
282

 
—

 
210

 
13

Industrial & warehouse
 
1,127

 
1,298

 
—

 
1,275

 
9

Other
 
3,876

 
4,615

 
—

 
4,162

 
53

Real estate—construction
 
—

 
—

 
—

 
—

 
—

Commercial business
 
668

 
1,039

 
—

 
892

 
55

Trade finance
 
—

 
—

 
—

 
—

 
—

Consumer and other
 
658

 
748

 
—

 
629

 
7

 
 
$
17,446

 
$
21,340

 
$
—

 
$
16,009

 
$
379

Total
 
$
21,000

 
$
25,017

 
$
353

 
$
21,010

 
$
478


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.
Aging of Past Due Loans
The following tables present the aging of past due loans as of March 31, 2016 and December 31, 2015 by class of loans:
 
As of March 31, 2016
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent Loans
 
(In thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
69

 
427

 
—

 
496

 
2,816

 
3,312

Hotel & motel
175

 
—

 
—

 
175

 
953

 
1,128

Gas station & car wash
—

 
—

 
—

 
—

 
3,672

 
3,672

Mixed use
—

 
—

 
—

 
—

 
1,377

 
1,377

Industrial & warehouse
109

 
—

 
—

 
109

 
2,215

 
2,324

Other
—

 
844

 
—

 
844

 
2,866

 
3,710

Real estate—construction
—

 
—

 
—

 
—

 
1,342

 
1,342

Commercial business
1,340

 
101

 
—

 
1,441

 
14,371

 
15,812

Trade finance
—

 
—

 
—

 
—

 
1,937

 
1,937

Consumer and other
2,795

 
138

 
45

 
2,978

 
233

 
3,211

     Subtotal
$
4,488

 
$
1,510

 
$
45

 
$
6,043

 
$
31,782

 
$
37,825

Acquired Loans: (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
1,189

 
—

 
—

 
1,189

 
1,983

 
3,172

Hotel & motel
—

 
—

 
—

 
—

 
4,930

 
4,930

Gas station & car wash
—

 
—

 
—

 
—

 
—

 
—

Mixed use
—

 
—

 
—

 
—

 
414

 
414

Industrial & warehouse
—

 
—

 
—

 
—

 
959

 
959

Other
—

 
—

 
—

 
—

 
2,596

 
2,596

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
267

 
47

 
—

 
314

 
534

 
848

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
—

 
—

 
—

 
—

 
350

 
350

     Subtotal
$
1,456

 
$
47

 
$
—

 
$
1,503

 
$
11,766

 
$
13,269

TOTAL
$
5,944

 
$
1,557

 
$
45

 
$
7,546

 
$
43,548

 
$
51,094

(1) 
The Acquired Loans exclude ACILs.
(2) 
Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.4 million.

 
As of December 31, 2015
 
Past Due and Accruing
 
 
 
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 or More Days Past Due
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent Loans
 
(In Thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
574

 
—

 
—

 
574

 
2,383

 
2,957

Hotel & motel
854

 
—

 
—

 
854

 
318

 
1,172

Gas station & car wash
—

 
640

 
330

 
970

 
2,418

 
3,388

Mixed use
—

 
—

 
—

 
—

 
1,407

 
1,407

Industrial & warehouse
—

 
110

 
—

 
110

 
2,275

 
2,385

Other
—

 
—

 
—

 
—

 
2,930

 
2,930

Real estate—construction
—

 
—

 
—

 
—

 
1,369

 
1,369

Commercial business
905

 
770

 
—

 
1,675

 
13,393

 
15,068

Trade finance
—

 
—

 
—

 
—

 
1,731

 
1,731

Consumer and other
770

 
158

 
45

 
973

 
245

 
1,218

     Subtotal
$
3,103

 
$
1,678

 
$
375

 
$
5,156

 
$
28,469

 
$
33,625

Acquired Loans: (1)
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
2,572

 
—

 
—

 
2,572

 
2,113

 
4,685

Hotel & motel
—

 
—

 
—

 
—

 
5,072

 
5,072

Gas station & car wash
—

 
—

 
—

 
—

 
—

 
—

Mixed use
—

 
—

 
—

 
—

 
415

 
415

Industrial & warehouse
—

 
—

 
—

 
—

 
990

 
990

Other
—

 
—

 
—

 
—

 
2,684

 
2,684

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
310

 
39

 
—

 
349

 
476

 
825

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
287

 
—

 
—

 
287

 
582

 
869

     Subtotal
$
3,169

 
$
39

 
$
—

 
$
3,208

 
$
12,332

 
$
15,540

TOTAL
$
6,272

 
$
1,717

 
$
375

 
$
8,364

 
$
40,801

 
$
49,165

(1) 
The Acquired Loans exclude ACILs.
(2) 
Nonaccrual loans exclude guaranteed portion of delinquent SBA loans that are in liquidation totaling $18.7 million.
Risk Category of Loans by Class of Loans
The following tables present the risk rating for Legacy Loans and Acquired Loans as of March 31, 2016 and December 31, 2015 by class of loans:
 
As of March 31, 2016
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
31,147

 
$
462

 
$
—

 
$
—

 
$
31,609

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
1,198,910

 
26,784

 
14,550

 
—

 
1,240,244

Hotel & motel
1,036,478

 
2,877

 
6,469

 
—

 
1,045,824

Gas station & car wash
629,787

 
6,154

 
3,997

 
—

 
639,938

Mixed use
337,416

 
1,182

 
2,562

 
—

 
341,160

Industrial & warehouse
460,309

 
10,020

 
13,830

 
—

 
484,159

Other
906,232

 
16,073

 
33,277

 
—

 
955,582

Real estate—construction
141,035

 
—

 
1,342

 
—

 
142,377

Commercial business
931,827

 
19,500

 
44,420

 
133

 
995,880

Trade finance
74,291

 
3,970

 
8,081

 
—

 
86,342

Consumer and other
84,438

 
3

 
786

 
—

 
85,227

Subtotal
$
5,831,870

 
$
87,025

 
$
129,314

 
$
133

 
$
6,048,342

Acquired Loans:
 
 
 
 
 
 
 
 
 
Real estate—residential
$
503

 
$
278

 
$
—

 
$
—

 
$
781

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
73,951

 
2,019

 
13,507

 
—

 
89,477

Hotel & motel
12,780

 
4,339

 
13,581

 
—

 
30,700

Gas station & car wash
21,828

 
352

 
6,016

 
—

 
28,196

Mixed use
13,703

 
6,337

 
3,929

 
8

 
23,977

Industrial & warehouse
30,427

 
1,337

 
4,662

 
354

 
36,780

Other
31,802

 
362

 
9,549

 
—

 
41,713

Real estate—construction
—

 
—

 
—

 
—

 
—

Commercial business
21,370

 
897

 
13,813

 
118

 
36,198

Trade finance
—

 
—

 
—

 
—

 
—

Consumer and other
29,327

 
1,096

 
6,897

 
1,517

 
38,837

Subtotal
$
235,691

 
$
17,017

 
$
71,954

 
$
1,997

 
$
326,659

Total
$
6,067,561

 
$
104,042

 
$
201,268

 
$
2,130

 
$
6,375,001


 
 
As of December 31, 2015
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
32,543

 
$
465

 
$
—

 
$
—

 
$
33,008

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
1,168,844

 
25,686

 
14,838

 
—

 
1,209,368

Hotel & motel
1,009,493

 
789

 
5,937

 
—

 
1,016,219

Gas station & car wash
610,749

 
6,192

 
3,758

 
—

 
620,699

Mixed use
326,902

 
1,191

 
2,610

 
—

 
330,703

Industrial & warehouse
461,938

 
10,099

 
11,966

 
—

 
484,003

Other
913,304

 
15,805

 
34,537

 
—

 
963,646

Real estate—construction
121,661

 
—

 
1,369

 
—

 
123,030

Commercial business
875,989

 
21,886

 
38,505

 
13

 
936,393

Trade finance
82,797

 
3,818

 
12,548

 
—

 
99,163

Consumer and other
60,549

 
14

 
812

 
7

 
61,382

Subtotal
$
5,664,769

 
$
85,945

 
$
126,880

 
$
20

 
$
5,877,614

Acquired Loans:
 
 
 
Real estate—residential
$
508

 
$
281

 
$
—

 
$
—

 
$
789

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
91,076

 
2,364

 
14,926

 
—

 
108,366

Hotel & motel
21,306

 
4,339

 
13,835

 
—

 
39,480

Gas station & car wash
22,231

 
356

 
6,548

 
—

 
29,135

Mixed use
14,195

 
6,382

 
3,762

 
—

 
24,339

Industrial & warehouse
31,606

 
1,361

 
4,708

 
378

 
38,053

Other
38,311

 
366

 
9,967

 
—

 
48,644

Real estate—construction
—

 
—

 
—

 
—

 
—

Commercial business
27,413

 
1,149

 
14,835

 
363

 
43,760

Trade finance
—

 
—

 
—

 
—

 
—

Consumer and other
32,194

 
1,643

 
5,901

 
1,453

 
41,191

Subtotal
$
278,840

 
$
18,241

 
$
74,482

 
$
2,194

 
$
373,757

Total
$
5,943,609

 
$
104,186

 
$
201,362

 
$
2,214

 
$
6,251,371
Loans Sold From Loans Held For Investment
 
 
 
 
 
Three Months Ended March 31,
 
2016
 
2015
Reclassification to held for sale
(In thousands)
Real estate - Commercial
$
—

 
$
384

Real estate - Construction
—

 
—

Commercial Business
—

 
66

Consumer
400

 
—

     Total
$
400

 
$
450
Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis
The following table presents loans by portfolio segment and impairment method at March 31, 2016 and December 31, 2015:
 
 
As of March 31, 2016
 
Real Estate—
Residential
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(In thousands)
Impaired loans (gross carrying value)
$
—

 
$
81,964

 
$
1,342

 
$
47,796

 
$
8,081

 
$
1,241

 
$
140,424

Specific allowance
$
—

 
$
1,968

 
$
—

 
$
6,609

 
$
1,307

 
$
—

 
$
9,884

Loss coverage ratio
N/A

 
2.4
%
 
0.0
%
 
13.8
%
 
16.2
%
 
0.0
%
 
7.0
%
Non-impaired loans
$
32,390

 
$
4,875,787

 
$
141,034

 
$
984,282

 
$
78,261

 
$
122,823

 
$
6,234,577

General allowance
$
221

 
$
51,498

 
$
1,054

 
$
12,593

 
$
778

 
$
828

 
$
66,972

Loss coverage ratio
0.7
%
 
1.1
%
 
0.7
%
 
1.3
%
 
1.0
%
 
0.7
%
 
1.1
%
Total loans
$
32,390

 
$
4,957,751

 
$
142,376

 
$
1,032,078

 
$
86,342

 
$
124,064

 
$
6,375,001

Total allowance for loan losses
$
221

 
$
53,466

 
$
1,054

 
$
19,202

 
$
2,085

 
$
828

 
$
76,856

Loss coverage ratio
0.7
%
 
1.1
%
 
0.7
%
 
1.9
%
 
2.4
%
 
0.7
%
 
1.2
%

 
As of December 31, 2015
 
Real Estate—
Residential
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(In thousands)
Impaired loans (gross carrying value)
$
—

 
$
81,117

 
$
1,369

 
$
41,586

 
$
12,548

 
$
1,470

 
$
138,090

Specific allowance
$
—

 
$
1,888

 
$
—

 
$
4,316

 
$
2,603

 
$
—

 
$
8,807

Loss coverage ratio
N/A

 
2.3
%
 
0.0
%
 
10.4
%
 
20.7
%
 
0.0
%
 
6.4
%
Non-impaired loans
$
33,797

 
$
4,831,538

 
$
121,661

 
$
938,567

 
$
86,615

 
$
101,103

 
$
6,113,281

General allowance
$
230

 
$
52,617

 
$
917

 
$
12,231

 
$
989

 
$
617

 
$
67,601

Loss coverage ratio
0.7
%
 
1.1
%
 
0.8
%
 
1.3
%
 
1.1
%
 
0.6
%
 
1.1
%
Total loans
$
33,797

 
$
4,912,655

 
$
123,030

 
$
980,153

 
$
99,163

 
$
102,573

 
$
6,251,371

Total allowance for loan losses
$
230

 
$
54,505

 
$
917

 
$
16,547

 
$
3,592

 
$
617

 
$
76,408

Loss coverage ratio
0.7
%
 
1.1
%
 
0.7
%
 
1.7
%
 
3.6
%
 
0.6
%
 
1.2
%
Troubled Debt Restructurings
The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2016:
 
Three Months Ended March 31, 2016
 
Number of
Loans 
 
Pre-
Modification
 
Post-
Modification 
 
(Dollars in thousands)
Legacy Loans:
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

Retail
—

 
$
—

 
$
—

Hotel & motel
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

Mixed use
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

Other
—

 
—

 
—

Real estate - construction
—

 
—

 
—

Commercial business
6

 
11,088

 
7,039

Trade finance
1

 
2,199

 
1,586

Consumer and other
—

 
—

 
—

Subtotal
7

 
$
13,287

 
$
8,625

Acquired Loans:
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

Retail
—

 
$
—

 
$
—

Hotel & motel
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

Mixed use
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

Other
—

 
—

 
—

Real estate—construction
—

 
—

 
—

Commercial business
—

 
—

 
—

Trade finance
—

 
—

 
—

Consumer and other
1

 
30

 
29

Subtotal
1

 
$
30

 
$
29

Total
8

 
$
13,317

 
$
8,654

A summary of TDRs on accrual and nonaccrual status by type of concession as of March 31, 2016 and December 31, 2015 is presented below:
 
As of March 31, 2016
 
TDRs on Accrual
 
TDRs on Nonaccrual
 
Total
 
Real Estate—
Commercial
 
Commercial Business
 
Other
 
Total
 
Real Estate—
Commercial
 
Commercial Business
 
Other
 
Total
 
 
(In thousands)
Payment concession
$
11,515

 
$
355

 
$
—

 
$
11,870

 
$
3,773

 
$
2,607

 
$
—

 
$
6,380

 
$
18,250

Maturity / amortization concession
3,500

 
23,529

 
6,766

 
33,795

 
2,018

 
7,501

 
2,272

 
11,791

 
45,586

Rate concession
6,694

 
401

 
—

 
7,095

 
6,250

 
453

 
163

 
6,866

 
13,961

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
21,709

 
$
24,285

 
$
6,766

 
$
52,760

 
$
12,041

 
$
10,561

 
$
2,435

 
$
25,037

 
$
77,797


 
As of December 31, 2015
 
TDRs on Accrual
 
TDRs on Nonaccrual
 
Total
 
Real Estate—
Commercial
 
Commercial Business
 
Other
 
Total
 
Real Estate—
Commercial
 
Commercial Business
 
Other
 
Total
 
 
(In thousands)
Payment concession
$
11,604

 
$
375

 
$
—

 
$
11,979

 
$
3,891

 
$
2,410

 
$
—

 
$
6,301

 
$
18,280

Maturity / amortization concession
4,009

 
18,192

 
5,311

 
27,512

 
1,583

 
6,818

 
2,297

 
10,698

 
38,210

Rate concession
7,215

 
1,278

 
—

 
8,493

 
6,445

 
641

 
166

 
7,252

 
15,745

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
$
22,828

 
$
19,845

 
$
5,311

 
$
47,984

 
$
11,919

 
$
9,869

 
$
2,463

 
$
24,251

 
$
72,235
Summary of Troubled Debt Restructurings with Subsequent Payment Default
The following table presents loans by class for TDRs that have been modified within the previous twelve months and have subsequently had a payment default during the three months ended March 31, 2016:

 
Three Months Ended March 31, 2016
 
Number of Loans
 
Balance
 
(Dollars In thousands)
Legacy Loans:
 
 
 
Real estate—commercial
 
 
 
Retail
—

 
$
—

Gas station & car wash
2

 
729

Industrial & warehouse
—

 
—

Other
—

 
—

Commercial business
6

 
2,272

Subtotal
8

 
$
3,001

Acquired Loans:
 
 
 
Real estate—commercial
 

 
 

Retail
—

 
$
—

Gas station & car wash
—

 
—

Hotel & motel
—

 
—

Mixed Use
1

 
62

Industrial & warehouse
—

 
—

Other
—

 
—

Commercial business
—

 
—

Subtotal
1

 
$
62

 
9

 
$
3,063
Covered Non-performing Assets
The covered nonperforming assets at March 31, 2016 and December 31, 2015 were as follows:
 
March 31, 2016
 
December 31, 2015
 
(In thousands)
Covered loans on nonaccrual status
$
1,102

 
$
1,118

Covered OREO
915

 
220

     Total covered nonperforming assets
$
2,017

 
$
1,338

 
 
 
 
Acquired covered loans
$
21,769

 
$
22,989