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Loans Receivable and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
 
June 30, 2016
 
December 31, 2015
 
(In thousands)
Loan portfolio composition
 
 
 
Real estate loans:
 
 
 
Residential
$
39,403

 
$
33,797

Commercial & industrial
5,158,900

 
4,912,655

Construction
132,712

 
123,030

Total real estate loans
5,331,015

 
5,069,482

Commercial business
1,027,194

 
980,153

Trade finance
84,025

 
99,163

Consumer and other
145,182

 
102,573

Total loans outstanding
6,587,416

 
6,251,371

Less: deferred loan fees
(3,179
)
 
(3,030
)
Loans receivable
6,584,237

 
6,248,341

Less: allowance for loan losses
(76,425
)
 
(76,408
)
Loans receivable, net of allowance for loan losses
$
6,507,812

 
$
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 and six months ended June 30, 2016 and 2015:
 
Three Months Ended June 30,

Six Months Ended June 30,

2016

2015

2016

2015

(In thousands)
Balance at beginning of period
$
22,097


$
22,645


$
23,777


$
24,051

Additions due to acquisitions during the period
—


—


—


—

Accretion
(2,474
)

(3,096
)

(5,503
)

(6,232
)
Changes in expected cash flows
527


1,840


1,876


3,570

Balance at end of period
$
20,150


$
21,389


$
20,150


$
21,389
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 and six months ended June 30, 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 June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
42,115

 
$
19,048

 
$
2,085

 
$
768

 
$
12,626

 
$
154

 
$
—

 
$
60

 
$
76,856

Provision (credit) for loan losses
1,375

 
(798
)
 
364

 
123

 
187

 
(42
)
 
—

 
(9
)
 
1,200

Loans charged off
—

 
(2,005
)
 
—

 
(50
)
 
(207
)
 
(33
)
 
—

 
—

 
(2,295
)
Recoveries of charge offs
176

 
331

 
—

 
85

 
1

 
69

 
—

 
2

 
664

Balance, end of period
$
43,666

 
$
16,576

 
$
2,449

 
$
926

 
$
12,607

 
$
148

 
$
—

 
$
53

 
$
76,425

Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
42,829

 
$
16,332

 
$
3,592

 
$
556

 
$
12,823

 
$
214

 
$
—

 
$
62

 
$
76,408

Provision (credit) for loan losses
157

 
2,349

 
(1,143
)
 
399

 
105

 
(154
)
 
—

 
(13
)
 
1,700

Loans charged off
(19
)
 
(2,626
)
 
—

 
(115
)
 
(323
)
 
(33
)
 
—

 
—

 
(3,116
)
Recoveries of charge offs
699

 
521

 
—

 
86

 
2

 
121

 
—

 
4

 
1,433

Balance, end of period
$
43,666

 
$
16,576

 
$
2,449

 
$
926

 
$
12,607

 
$
148

 
$
—

 
$
53

 
$
76,425


 
 
 
 
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 June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
35,772

 
$
16,168

 
$
3,041

 
$
416

 
$
13,724

 
$
422

 
$
—

 
$
51

 
$
69,594

Provision (credit) for loan losses
1,224

 
(751
)
 
(522
)
 
521

 
280

 
240

 
—

 
8

 
1,000

Loans charged off
(61
)
 
(448
)
 
(759
)
 
—

 
(13
)
 
(170
)
 
—

 
—

 
(1,451
)
Recoveries of charge offs
61

 
809

 
—

 
92

 
—

 
8

 
—

 
5

 
975

Balance, end of period
$
36,996

 
$
15,778

 
$
1,760

 
$
1,029

 
$
13,991

 
$
500

 
$
—

 
$
64

 
$
70,118

Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
38,775

 
$
15,986

 
$
3,456

 
$
427

 
$
8,573

 
$
485

 
$
—

 
$
56

 
$
67,758

Provision (credit) for loan losses
(2,398
)
 
(773
)
 
(709
)
 
523

 
5,590

 
262

 
—

 
5

 
2,500

Loans charged off
(242
)
 
(899
)
 
(987
)
 
(15
)
 
(172
)
 
(257
)
 
—

 
(4
)
 
(2,576
)
Recoveries of charge offs
861

 
1,464

 
—

 
94

 
—

 
10

 
—

 
7

 
2,436

Balance, end of period
$
36,996

 
$
15,778

 
$
1,760

 
$
1,029

 
$
13,991

 
$
500

 
$
—

 
$
64

 
$
70,118


The following tables disaggregate the allowance for loan losses and the loans outstanding by impairment methodology at June 30, 2016 and December 31, 2015:
 
June 30, 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
$
1,896

 
$
5,052

 
$
1,522

 
$
69

 
$
100

 
$
95

 
$
—

 
$
—

 
$
8,734

Collectively evaluated for impairment
41,770

 
11,524

 
927

 
857

 
558

 
53

 
—

 
53

 
55,742

ACILs
—

 
—

 
—

 
—

 
11,949

 
—

 
—

 
—

 
11,949

Total
$
43,666

 
$
16,576

 
$
2,449

 
$
926

 
$
12,607

 
$
148

 
$
—

 
$
53

 
$
76,425

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
60,744

 
$
48,800

 
$
8,942

 
$
769

 
$
15,754

 
$
1,100

 
$
—

 
$
446

 
$
136,555

Collectively evaluated for impairment
5,051,436

 
946,106

 
75,083

 
107,537

 
138,260

 
14,028

 
—

 
18,615

 
6,351,065

ACILs
—

 
—

 
—

 
—

 
64,821

 
17,160

 
—

 
17,815

 
99,796

Total
$
5,112,180

 
$
994,906

 
$
84,025

 
$
108,306

 
$
218,835

 
$
32,288

 
$
—

 
$
36,876

 
$
6,587,416


 
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:
 
June 30, 2016
 
December 31, 2015
 
(In thousands)
With allocated allowance
 
 
 
Without charge off
$
65,372

 
$
77,922

With charge off
260

 
155

With no allocated allowance
 
 
 
Without charge off
67,169

 
57,585

With charge off
3,754

 
2,428

Allowance on impaired loans
(8,734
)
 
(8,807
)
Impaired loans, net of allowance
$
127,821

 
$
129,283


The following tables detail impaired loans (Legacy and APLs that became impaired subsequent to being acquired) as of June 30, 2016 and December 31, 2015, for the three and six months ended June 30, 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 June 30, 2016
 
For the Six Months Ended June 30, 2016
 
For the Three Months Ended June 30, 2016
Total Impaired Loans
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

 

 

Retail
 
1,419

 
1,562

 
73

 
1,614

 
—

 
1,486

 
—

Hotel & motel
 
1,324

 
1,324

 
125

 
3,515

 
32

 
2,925

 
16

Gas station & car wash
 
1,058

 
1,067

 
311

 
1,052

 
19

 
794

 
9

Mixed use
 
209

 
735

 
5

 
445

 
3

 
386

 
2

Industrial & warehouse
 
547

 
547

 
—

 
555

 
12

 
552

 
6

Other
 
24,191

 
24,437

 
1,481

 
24,372

 
550

 
24,257

 
274

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
31,697

 
32,396

 
5,148

 
34,393

 
481

 
35,826

 
271

Trade finance
 
4,491

 
4,509

 
1,522

 
8,373

 
57

 
6,286

 
16

Consumer and other
 
696

 
696

 
69

 
317

 
17

 
408

 
10

 
 
$
65,632

 
$
67,273

 
$
8,734

 
$
74,636

 
$
1,171

 
$
72,920

 
$
604

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 

 

 

 

Retail
 
9,152

 
9,813

 
—

 
10,454

 
160

 
10,029

 
79

Hotel & motel
 
9,738

 
13,782

 
—

 
8,479

 
98

 
8,922

 
49

Gas station & car wash
 
4,960

 
8,861

 
—

 
4,763

 
50

 
5,268

 
25

Mixed use
 
2,316

 
2,576

 
—

 
2,348

 
24

 
2,331

 
12

Industrial & warehouse
 
11,106

 
12,585

 
—

 
10,294

 
179

 
10,957

 
89

Other
 
9,178

 
10,553

 
—

 
11,534

 
85

 
10,676

 
43

Real estate—construction
 
1,300

 
1,441

 
—

 
1,337

 
—

 
1,321

 
—

Commercial business
 
18,203

 
21,152

 
—

 
12,034

 
281

 
13,022

 
140

Trade finance
 
4,451

 
4,451

 
—

 
1,484

 
109

 
2,225

 
56

Consumer and other
 
519

 
576

 
—

 
991

 
1

 
820

 
—

 
 
$
70,923

 
$
85,790

 
$
—

 
$
63,718

 
$
987

 
$
65,571

 
$
493

Total
 
$
136,555

 
$
153,063

 
$
8,734

 
$
138,354

 
$
2,158

 
$
138,491

 
$
1,097


*
Unpaid contractual principal balance less charge offs, interest applied to principal and purchase discounts.
 
 
For the Six Months Ended June 30, 2015
 
For the Three Months Ended June 30, 2015
Total Impaired Loans
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
4,411

 
88

 
4,165

 
44

Hotel & motel
 
12,134

 
258

 
11,500

 
129

Gas station & car wash
 
1,479

 
29

 
1,266

 
15

Mixed use
 
481

 
—

 
481

 
—

Industrial & warehouse
 
4,489

 
84

 
5,678

 
42

Other
 
8,823

 
176

 
8,344

 
88

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
32,453

 
579

 
30,030

 
286

Trade finance
 
4,678

 
108

 
4,990

 
54

Consumer and other
 
209

 
—

 
314

 
—

 
 
$
69,157

 
$
1,322

 
$
66,768

 
$
658

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
10,260

 
167

 
9,536

 
84

Hotel & motel
 
6,122

 
7

 
6,187

 
3

Gas station & car wash
 
3,391

 
22

 
3,739

 
11

Mixed use
 
2,356

 
21

 
2,740

 
10

Industrial & warehouse
 
11,033

 
154

 
9,362

 
77

Other
 
8,730

 
77

 
9,554

 
40

Real estate—construction
 
1,000

 
—

 
740

 
—

Commercial business
 
8,104

 
81

 
9,502

 
41

Trade finance
 
1,643

 
—

 
1,524

 
—

Consumer and other
 
1,064

 
13

 
1,066

 
7

 
 
$
53,703

 
$
542

 
$
53,950

 
$
273

Total
 
$
122,860

 
$
1,864

 
$
120,718

 
$
931

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

 
 
As of June 30, 2016
 
For the Six Months Ended June 30, 2016
 
For the Three Months Ended June 30, 2016
Impaired APLs
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
1,037

 
1,140

 
65

 
1,125

 
—

 
1,103

 
—

Hotel & motel
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
 
—

 
—

 
—

 
339

 
—

 
—

 
—

Mixed use
 
139

 
139

 
2

 
375

 
3

 
316

 
2

Industrial & warehouse
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other
 
346

 
350

 
33

 
318

 
9

 
324

 
4

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
426

 
489

 
96

 
526

 
6

 
506

 
3

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
159

 
159

 
—

 
53

 
4

 
80

 
2

 
 
$
2,107

 
$
2,277

 
$
196

 
$
2,736

 
$
22

 
$
2,329

 
$
11

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
2,483

 
2,638

 
—

 
2,542

 
52

 
2,491

 
26

Hotel & motel
 
5,055

 
7,335

 
—

 
6,273

 
7

 
5,903

 
3

Gas station & car wash
 
1,592

 
1,836

 
—

 
1,458

 
50

 
1,593

 
25

Mixed use
 
271

 
282

 
—

 
272

 
5

 
271

 
3

Industrial & warehouse
 
1,085

 
1,325

 
—

 
1,103

 
5

 
1,090

 
2

Other
 
3,746

 
4,575

 
—

 
3,799

 
26

 
3,761

 
13

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
674

 
981

 
—

 
673

 
17

 
675

 
8

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
286

 
335

 
—

 
467

 
1

 
371

 
—

 
 
$
15,192

 
$
19,307

 
$
—

 
$
16,587

 
$
163

 
$
16,155

 
$
80

Total
 
$
17,299

 
$
21,584

 
$
196

 
$
19,323

 
$
185

 
$
18,484

 
$
91



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



 
 
For the Six Months Ended June 30, 2015
 
For the Three Months Ended June 30, 2015
Impaired APLs
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(In thousands)
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
2,278

 
74

 
2,591

 
37

Hotel & motel
 
—

 
—

 
—

 
—

Gas station & car wash
 
1,398

 
29

 
1,215

 
15

Mixed use
 
352

 
—

 
352

 
—

Industrial & warehouse
 
120

 
—

 
180

 
—

Other
 
1,123

 
8

 
803

 
4

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
721

 
9

 
697

 
4

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
1

 
—

 
1

 
—

 
 
$
5,993

 
$
120

 
$
5,839

 
$
60

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
2,037

 
7

 
1,476

 
3

Hotel & motel
 
5,613

 
7

 
5,624

 
3

Gas station & car wash
 
347

 
—

 
516

 
—

Mixed use
 
167

 
2

 
251

 
1

Industrial & warehouse
 
1,362

 
2

 
1,174

 
1

Other
 
4,287

 
21

 
4,426

 
10

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
982

 
33

 
968

 
17

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
606

 
4

 
611

 
2

 
 
$
15,401

 
$
76

 
$
15,046

 
$
37

Total
 
$
21,394

 
$
196

 
$
20,885

 
$
97


*
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 June 30, 2016 and December 31, 2015 by class of loans:
 
As of June 30, 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
449

 
427

 
—

 
876

 
2,460

 
3,336

Hotel & motel
—

 
—

 
—

 
—

 
1,118

 
1,118

Gas station & car wash
—

 
—

 
—

 
—

 
3,591

 
3,591

Mixed use
—

 
—

 
—

 
—

 
1,352

 
1,352

Industrial & warehouse
107

 
—

 
—

 
107

 
2,178

 
2,285

Other
220

 
844

 
—

 
1,064

 
3,035

 
4,099

Real estate—construction
—

 
—

 
—

 
—

 
1,300

 
1,300

Commercial business
1,974

 
126

 
—

 
2,100

 
12,992

 
15,092

Trade finance
29

 
—

 
29

 
58

 
2,886

 
2,944

Consumer and other
141

 
30

 
118

 
289

 
356

 
645

     Subtotal
$
2,920

 
$
1,427

 
$
147

 
$
4,494

 
$
31,268

 
$
35,762

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

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
1,220

 
—

 
—

 
1,220

 
1,850

 
3,070

Hotel & motel
—

 
—

 
—

 
—

 
4,785

 
4,785

Gas station & car wash
1,009

 
—

 
—

 
1,009

 
—

 
1,009

Mixed use
—

 
—

 
—

 
—

 
62

 
62

Industrial & warehouse
—

 
—

 
—

 
—

 
950

 
950

Other
328

 
—

 
—

 
328

 
2,625

 
2,953

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
178

 
32

 
—

 
210

 
393

 
603

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
—

 
313

 
—

 
313

 
465

 
778

     Subtotal
$
2,735

 
$
345

 
$
—

 
$
3,080

 
$
11,130

 
$
14,210

TOTAL
$
5,655

 
$
1,772

 
$
147

 
$
7,574

 
$
42,398

 
$
49,972

(1) 
The Acquired Loans exclude ACILs.
(2) 
Nonaccrual loans exclude the guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.5 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 June 30, 2016 and December 31, 2015 by class of loans:
 
As of June 30, 2016
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
38,400

 
$
459

 
$
—

 
$
—

 
$
38,859

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
1,262,782

 
11,126

 
12,769

 
—

 
1,286,677

Hotel & motel
1,110,109

 
6,900

 
7,320

 
—

 
1,124,329

Gas station & car wash
641,800

 
5,785

 
3,591

 
—

 
651,176

Mixed use
352,364

 
1,174

 
1,518

 
—

 
355,056

Industrial & warehouse
484,995

 
9,455

 
14,759

 
—

 
509,209

Other
960,608

 
23,423

 
30,131

 
—

 
1,014,162

Real estate—construction
120,196

 
11,216

 
1,300

 
—

 
132,712

Commercial business
939,420

 
8,792

 
46,586

 
108

 
994,906

Trade finance
71,552

 
2,454

 
10,019

 
—

 
84,025

Consumer and other
107,274

 
139

 
893

 
—

 
108,306

Subtotal
$
6,089,500

 
$
80,923

 
$
128,886

 
$
108

 
$
6,299,417

Acquired Loans:
 
 
 
 
 
 
 
 
 
Real estate—residential
$
269

 
$
276

 
$
—

 
$
—

 
$
545

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
58,180

 
6,608

 
11,712

 
—

 
76,500

Hotel & motel
13,930

 
2,404

 
13,370

 
—

 
29,704

Gas station & car wash
21,123

 
353

 
5,977

 
—

 
27,453

Mixed use
13,642

 
6,299

 
3,410

 
8

 
23,359

Industrial & warehouse
23,337

 
953

 
3,929

 
358

 
28,577

Other
23,115

 
363

 
9,219

 
—

 
32,697

Real estate—construction
—

 
—

 
—

 
—

 
—

Commercial business
17,934

 
797

 
13,471

 
86

 
32,288

Trade finance
—

 
—

 
—

 
—

 
—

Consumer and other
27,160

 
1,394

 
6,172

 
2,150

 
36,876

Subtotal
$
198,690

 
$
19,447

 
$
67,260

 
$
2,602

 
$
287,999

Total
$
6,288,190

 
$
100,370

 
$
196,146

 
$
2,710

 
$
6,587,416


 
 
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 June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Reclassification to held for sale
(In thousands)
Real estate - Commercial
$
—

 
$
235

 
$
—

 
$
685

Real estate - Construction
—

 
—

 
—

 
—

Commercial Business
—

 
—

 
—

 
—

Consumer
—

 
1,088

 
400

 
1,088

     Total
$
—

 
$
1,323

 
$
400

 
$
1,773
Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis
The following table presents loans by portfolio segment and impairment method at June 30, 2016 and December 31, 2015:
 
 
As of June 30, 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)
$
—

 
$
75,198

 
$
1,300

 
$
49,900

 
$
8,942

 
$
1,215

 
$
136,555

Specific allowance
$
—

 
$
1,995

 
$
—

 
$
5,148

 
$
1,522

 
$
69

 
$
8,734

Loss coverage ratio
N/A

 
2.7
%
 
0.0
%
 
10.3
%
 
17.0
%
 
5.7
%
 
6.4
%
Non-impaired loans
$
39,403

 
$
5,083,702

 
$
131,412

 
$
977,294

 
$
75,083

 
$
143,967

 
$
6,450,861

General allowance
$
136

 
$
52,983

 
$
1,159

 
$
11,576

 
$
927

 
$
910

 
$
67,691

Loss coverage ratio
0.3
%
 
1.0
%
 
0.9
%
 
1.2
%
 
1.2
%
 
0.6
%
 
1.0
%
Total loans
$
39,403

 
$
5,158,900

 
$
132,712

 
$
1,027,194

 
$
84,025

 
$
145,182

 
$
6,587,416

Total allowance for loan losses
$
136

 
$
54,978

 
$
1,159

 
$
16,724

 
$
2,449

 
$
979

 
$
76,425

Loss coverage ratio
0.3
%
 
1.1
%
 
0.9
%
 
1.6
%
 
2.9
%
 
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 and six months ended June 30, 2016:
 
Three Months Ended June 30, 2016
 
Six Months Ended June 30, 2016
 
Number of
Loans 
 
Pre-
Modification
 
Post-
Modification 
 
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
2

 
113

 
114

 
8

 
11,201

 
7,755

Trade finance
—

 
—

 
—

 
1

 
2,199

 
1,458

Consumer and other
1

 
—

 
111

 
1

 
—

 
111

Subtotal
3

 
$
113

 
$
225

 
10

 
$
13,400

 
$
9,324

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

 
27

Subtotal
—

 
$
—

 
$
—

 
1

 
$
30

 
$
27

Total
3

 
$
113

 
$
225

 
11

 
$
13,430

 
$
9,351

A summary of TDRs on accrual and nonaccrual status by type of concession as of June 30, 2016 and December 31, 2015 is presented below:
 
As of June 30, 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
$
11,386

 
$
39

 
$
—

 
$
11,425

 
$
3,689

 
$
1,812

 
$
—

 
$
5,501

 
$
16,926

Maturity / amortization concession
3,477

 
20,659

 
6,632

 
30,768

 
1,952

 
7,847

 
3,217

 
13,016

 
43,784

Rate concession
6,650

 
1,847

 
147

 
8,644

 
5,920

 
431

 
160

 
6,511

 
15,155

Principal forgiveness
—

 
—

 
—

 
—

 
—

 
—

 

 
—

 
—

 
$
21,513

 
$
22,545

 
$
6,779

 
$
50,837

 
$
11,561

 
$
10,090

 
$
3,377

 
$
25,028

 
$
75,865


 
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 and six months ended June 30, 2016:

 
Three Months Ended June 30, 2016
 
Six Months Ended June 30, 2016
 
Number of Loans
 
Balance
 
Number of Loans
 
Balance
 
(Dollars In thousands)
Legacy Loans:
 
 
 
 
 
 
 
Real estate—commercial
 
 
 
 
 
 
 
Retail
1

 
$
489

 
1

 
$
489

Gas station & car wash
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Commercial business
8

 
5,210

 
8

 
5,210

Trade finance
1

 
2,886

 
1

 
2,886

Consumer and other
—

 
—

 
—

 
—

Subtotal
10

 
$
8,585

 
10

 
$
8,585

Acquired Loans:
 
 
 
 
 
 
 
Real estate—commercial
 

 
 

 
 
 
 
Retail
—

 
$
—

 
—

 
$
—

Gas station & car wash
—

 
—

 
—

 
—

Hotel & motel
—

 
—

 
—

 
—

Mixed Use
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Commercial business
—

 
—

 
—

 
—

Trade finance
—

 
—

 
—

 
—

Consumer and other
1

 
27

 
1

 
27

Subtotal
1

 
$
27

 
1

 
$
27

 
11

 
$
8,612

 
11

 
$
8,612
Covered Non-performing Assets
The covered nonperforming assets at June 30, 2016 and December 31, 2015 were as follows:
 
June 30, 2016
 
December 31, 2015
 
(In thousands)
Covered loans on nonaccrual status
$
1,252

 
$
1,118

Covered OREO
915

 
220

     Total covered nonperforming assets
$
2,167

 
$
1,338

 
 
 
 
Acquired covered loans
$
20,813

 
$
22,989