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Loans Receivable and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
 
March 31, 2017
 
December 31, 2016
 
(Dollars in thousands)
Loan portfolio composition
 
 
 
Real estate loans:
 
 
 
Residential
$
58,166

 
$
57,884

Commercial
7,948,844

 
7,842,573

Construction
284,178

 
254,113

Total real estate loans
8,291,188

 
8,154,570

Commercial business
1,696,895

 
1,832,021

Trade finance
143,298

 
154,928

Consumer and other
420,169

 
403,470

Total loans outstanding
10,551,550

 
10,544,989

      Deferred loan fees, net
(1,883
)
 
(1,657
)
Loans receivable
10,549,667

 
10,543,332

      Allowance for loan losses
(78,659
)
 
(79,343
)
Loans receivable, net of allowance for loan losses
$
10,471,008

 
$
10,463,989
Loans and Leases Acquired, Accretable Yield Movement Schedule
The following table presents changes in the accretable discount on the PCI loans for the three months ended March 31, 2017 and 2016:
 
Three Months Ended March 31,

2017

2016

(Dollars in thousands)
Balance at beginning of period
$
38,591


$
23,777

Accretion
(5,348
)

(3,029
)
Reclassification from nonaccretable difference
18,408


1,349

Balance at end of period
$
51,651


$
22,097
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, 2017 and 2016:
 
Legacy Loans
 
Acquired Loans
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer
and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(Dollars in thousands)
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
38,956

 
$
23,430

 
$
1,897

 
$
2,116

 
$
12,791

 
$
117

 
$
—

 
$
36

 
$
79,343

Provision (credit) for loan losses
6,106

 
(2,884
)
 
303

 
184

 
975

 
748

 
187

 
(19
)
 
5,600

Loans charged off
(1,154
)
 
(3,190
)
 
(1,576
)
 
(279
)
 
(336
)
 
(70
)
 
—

 
—

 
(6,605
)
Recoveries
21

 
123

 
—

 
1

 
25

 
149

 
—

 
2

 
321

Balance, end of period
$
43,929

 
$
17,479

 
$
624

 
$
2,022

 
$
13,455

 
$
944

 
$
187

 
$
19

 
$
78,659


 
 
Legacy Loans
 
Acquired Loans
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer
and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(Dollars 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
523

 
190

 
—

 
1

 
1

 
52

 
—

 
2

 
769

Balance, end of period
$
42,115

 
$
19,048

 
$
2,085

 
$
768

 
$
12,626

 
$
154

 
$
—

 
$
60

 
$
76,856


The following tables break out the allowance for loan losses and the recorded investment of loans outstanding by individually impaired, general valuation, and PCI impairment, by portfolio segment, at March 31, 2017 and December 31, 2016:
 
March 31, 2017
 
Legacy Loans
 
Acquired Loans
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
2,530

 
$
2,357

 
$
—

 
$
40

 
$
30

 
$
122

 
$
—

 
$
—

 
$
5,079

Collectively evaluated for impairment
41,399

 
15,122

 
624

 
1,982

 
1,289

 
822

 
187

 
19

 
61,444

PCI loans
—

 
—

 
—

 
—

 
12,136

 
—

 
—

 
—

 
12,136

Total
$
43,929

 
$
17,479

 
$
624

 
$
2,022

 
$
13,455

 
$
944

 
$
187

 
$
19

 
$
78,659

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
75,377

 
$
28,421

 
$
4,450

 
$
715

 
$
19,325

 
$
1,019

 
$
—

 
$
272

 
$
129,579

Collectively evaluated for impairment
5,474,703

 
1,065,952

 
59,131

 
206,933

 
2,538,765

 
541,586

 
76,541

 
198,095

 
10,161,706

PCI loans
—

 
—

 
—

 
—

 
183,018

 
59,917

 
3,176

 
14,154

 
260,265

Total
$
5,550,080

 
$
1,094,373

 
$
63,581

 
$
207,648

 
$
2,741,108

 
$
602,522

 
$
79,717

 
$
212,521

 
$
10,551,550


 
December 31, 2016
 
Legacy Loans
 
Acquired Loans
 
Total
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
Real Estate
 
Commercial Business
 
Trade Finance
 
Consumer and Other
 
 
(Dollars in thousands)
Allowance for loan losses:
Individually evaluated for impairment
$
1,889

 
$
4,420

 
$
864

 
$
50

 
$
113

 
$
73

 
$
—

 
$
—

 
$
7,409

Collectively evaluated for impairment
37,067

 
19,010

 
1,033

 
2,066

 
548

 
44

 
—

 
36

 
59,804

PCI loans
—

 
—

 
—

 
—

 
12,130

 
—

 
—

 
—

 
12,130

Total
$
38,956

 
$
23,430

 
$
1,897

 
$
2,116

 
$
12,791

 
$
117

 
$
—

 
$
36

 
$
79,343

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
74,085

 
$
34,783

 
$
6,029

 
$
733

 
$
23,865

 
$
435

 
$
—

 
$
431

 
$
140,361

Collectively evaluated for impairment
5,271,262

 
1,079,348

 
75,365

 
179,961

 
2,597,200

 
650,710

 
70,535

 
206,802

 
10,131,183

PCI loans
—

 
—

 
—

 
—

 
188,158

 
66,745

 
2,999

 
15,543

 
273,445

Total
$
5,345,347

 
$
1,114,131

 
$
81,394

 
$
180,694

 
$
2,809,223

 
$
717,890

 
$
73,534

 
$
222,776

 
$
10,544,989
Impaired Financing Receivables
The recorded investment of individually impaired loans was as follows:
 
March 31, 2017
 
December 31, 2016
 
(Dollars in thousands)
With allocated specific allowance
 
 
 
Without charge off
$
51,944

 
$
59,638

With charge off
196

 
1,120

With no allocated specific allowance
 
 
 
Without charge off
70,466

 
76,775

With charge off
6,973

 
2,828

Specific allowance on impaired loans
(5,079
)
 
(7,409
)
Impaired loans, net of specific allowance
$
124,500

 
$
132,952

The following tables detail the recorded investment of impaired loans (Legacy Loans and Acquired Loans that became impaired subsequent to being originated and acquired, respectfully) as of March 31, 2017 and December 31, 2016 and for the three months ended March 31, 2017 and 2016. Loans with no related allowance are believed by management to be adequately collateralized.
 
 
As of March 31, 2017
 
As of December 31, 2016
Total Impaired Loans
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
Recorded Investment*
 
Unpaid Contractual Principal Balance
 
Related
Allowance
 
 
(Dollars in thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
581

 
581

 
9

 
2,095

 
2,384

 
90

Hotel & motel
 
6,395

 
6,433

 
403

 
6,387

 
6,387

 
337

Gas station & car wash
 
—

 
—

 
—

 
215

 
228

 
41

Mixed use
 
250

 
2,101

 
3

 
206

 
732

 
27

Industrial & warehouse
 
2,882

 
2,882

 
2

 
530

 
530

 
—

Other
 
22,412

 
22,657

 
2,143

 
22,580

 
22,825

 
1,507

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
19,538

 
19,698

 
2,479

 
26,543

 
27,161

 
4,493

Trade finance
 
—

 
—

 
—

 
2,111

 
2,156

 
864

Consumer and other
 
82

 
82

 
40

 
91

 
91

 
50

Subtotal
 
$
52,140

 
$
54,434

 
$
5,079

 
$
60,758

 
$
62,494

 
$
7,409

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
1,465

 
$
1,465

 
$
—

 
$
3,562

 
$
3,562

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
16,752

 
17,724

 
—

 
12,753

 
13,290

 
—

Hotel & motel
 
6,273

 
12,221

 
—

 
6,122

 
11,735

 
—

Gas station & car wash
 
4,160

 
6,634

 
—

 
5,043

 
7,449

 
—

Mixed use
 
6,530

 
7,614

 
—

 
7,303

 
7,822

 
—

Industrial & warehouse
 
8,498

 
8,574

 
—

 
9,673

 
9,748

 
—

Other
 
15,648

 
16,911

 
—

 
20,181

 
21,492

 
—

Real estate—construction
 
2,856

 
2,996

 
—

 
1,300

 
1,441

 
—

Commercial business
 
9,902

 
13,509

 
—

 
8,675

 
9,472

 
—

Trade finance
 
4,450

 
4,450

 
—

 
3,918

 
3,918

 
—

Consumer and other
 
905

 
923

 
—

 
1,073

 
1,136

 
—

Subtotal
 
$
77,439

 
$
93,021

 
$
—

 
$
79,603

 
$
91,065

 
$
—

Total
 
$
129,579

 
$
147,455

 
$
5,079

 
$
140,361

 
$
153,559

 
$
7,409


__________________________________
*
Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts.

 
 
For the Three Months Ended March 31, 2017
 
For the Three Months Ended March 31, 2016
Total Impaired Loans
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(Dollars in thousands)
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
1,338

 
4

 
1,712

 
—

Hotel & motel
 
6,391

 
43

 
4,611

 
57

Gas station & car wash
 
108

 
—

 
1,050

 
—

Mixed use
 
228

 
2

 
563

 
2

Industrial & warehouse
 
1,706

 
32

 
560

 
6

Other
 
22,496

 
253

 
24,462

 
275

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
23,041

 
195

 
35,742

 
265

Trade finance
 
1,055

 
—

 
10,314

 
94

Consumer and other
 
87

 
1

 
128

 
1

Subtotal
 
$
56,450

 
$
530

 
$
79,142

 
$
700

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
2,513

 
$
28

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
14,752

 
159

 
11,105

 
100

Hotel & motel
 
6,198

 
7

 
7,849

 
22

Gas station & car wash
 
4,602

 
10

 
4,665

 
34

Mixed use
 
6,916

 
63

 
2,364

 
12

Industrial & warehouse
 
9,086

 
75

 
9,888

 
85

Other
 
17,915

 
130

 
12,712

 
90

Real estate—construction
 
2,078

 
20

 
1,355

 
—

Commercial business
 
9,289

 
30

 
8,950

 
41

Trade finance
 
4,184

 
51

 
—

 
—

Consumer and other
 
989

 
7

 
1,228

 
7

Subtotal
 
$
78,522

 
$
580

 
$
60,116

 
$
391

Total
 
$
134,972

 
$
1,110

 
$
139,258

 
$
1,091

__________________________________
*
Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts.


 
 
As of March 31, 2017
 
As of December 31, 2016
Impaired Acquired Loans
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
Recorded Investment*
 
Unpaid
Contractual Principal
Balance
 
Related
Allowance
 
 
(Dollars in thousands)
With related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
311

 
311

 
—

 
1,826

 
2,114

 
85

Hotel & motel
 
92

 
89

 
2

 
—

 
—

 
—

Gas station & car wash
 
—

 
—

 
—

 
—

 
—

 
—

Mixed use
 
250

 
2,101

 
3

 
136

 
136

 
2

Industrial & warehouse
 
—

 
—

 
—

 
—

 
—

 
—

Other
 
333

 
337

 
25

 
337

 
341

 
26

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
774

 
828

 
122

 
294

 
339

 
73

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

 
—

Subtotal
 
$
1,760

 
$
3,666

 
$
152

 
$
2,593

 
$
2,930

 
$
186

With no related allowance:
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
679

 
$
679

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
 
Retail
 
4,351

 
4,831

 
—

 
3,148

 
3,214

 
—

Hotel & motel
 
4,840

 
7,352

 
—

 
4,767

 
7,171

 
—

Gas station & car wash
 
618

 
804

 
—

 
1,568

 
1,815

 
—

Mixed use
 
5,283

 
5,510

 
—

 
5,315

 
5,551

 
—

Industrial & warehouse
 
65

 
65

 
—

 
66

 
66

 
—

Other
 
3,182

 
3,853

 
—

 
6,023

 
6,752

 
—

Real estate—construction
 
—

 
—

 
—

 
—

 
—

 
—

Commercial business
 
245

 
313

 
—

 
141

 
386

 
—

Trade finance
 
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
 
272

 
281

 
—

 
431

 
484

 
—

Subtotal
 
$
18,856

 
$
23,009

 
$
—

 
$
22,138

 
$
26,118

 
$
—

Total
 
$
20,616

 
$
26,675

 
$
152

 
$
24,731

 
$
29,048

 
$
186


__________________________________
*
Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts.


 
 
For the Three Months Ended March 31, 2017
 
For the Three Months Ended March 31, 2016
Impaired Acquired Loans
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
Average
Recorded Investment*
 
Interest Income Recognized during Impairment
 
 
(Dollars in thousands)
With related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
1,068

 
4

 
1,169

 
—

Hotel & motel
 
46

 
—

 
—

 
—

Gas station & car wash
 
—

 
—

 
509

 
—

Mixed use
 
193

 
2

 
493

 
2

Industrial & warehouse
 
—

 
—

 
—

 
—

Other
 
335

 
4

 
305

 
4

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
534

 
5

 
576

 
3

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
—

 
—

 
—

 
—

Subtotal
 
$
2,176

 
$
15

 
$
3,052

 
$
9

With no related allowance:
 
 
 
 
 
 
 
 
Real estate—residential
 
$
339

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
Retail
 
3,750

 
31

 
2,571

 
26

Hotel & motel
 
4,803

 
4

 
6,882

 
17

Gas station & car wash
 
1,093

 
10

 
1,392

 
25

Mixed use
 
5,299

 
63

 
273

 
3

Industrial & warehouse
 
66

 
1

 
1,111

 
2

Other
 
4,603

 
13

 
3,826

 
14

Real estate—construction
 
—

 
—

 
—

 
—

Commercial business
 
193

 
1

 
672

 
8

Trade finance
 
—

 
—

 
—

 
—

Consumer and other
 
351

 
2

 
557

 
2

Subtotal
 
$
20,497

 
$
125

 
$
17,284

 
$
97

Total
 
$
22,673

 
$
140

 
$
20,336

 
$
106
Aging of Past Due Loans
The following tables present the recorded investment of past due loans by the number of days past due as of March 31, 2017 and December 31, 2016 by class of loans:
 
As of March 31, 2017
 
Past Due and Accruing
 
 
 
 
 
30-59
Days 
 
60-89 
Days
 
90 or More Days 
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent and Nonaccrual Loans
 
(Dollars in thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
938

 
—

 
—

 
938

 
2,657

 
3,595

Hotel & motel
3,341

 
1,187

 
—

 
4,528

 
4,216

 
8,744

Gas station & car wash
947

 
—

 
—

 
947

 
3,542

 
4,489

Mixed use
—

 
—

 
—

 
—

 
1,247

 
1,247

Industrial & warehouse
57

 
1,028

 
—

 
1,085

 
1,922

 
3,007

Other
4,046

 
1,031

 
—

 
5,077

 
3,114

 
8,191

Real estate—construction
—

 
—

 
—

 
—

 
1,300

 
1,300

Commercial business
640

 
666

 
—

 
1,306

 
9,155

 
10,461

Trade finance
—

 
—

 
—

 
—

 
528

 
528

Consumer and other
229

 
66

 
275

 
570

 
228

 
798

     Subtotal
$
10,198

 
$
3,978

 
$
275

 
$
14,451

 
$
27,909

 
$
42,360

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

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
1,156

 
653

 
—

 
1,809

 
1,578

 
3,387

Hotel & motel
1,546

 
—

 
—

 
1,546

 
4,668

 
6,214

Gas station & car wash
—

 
—

 
—

 
—

 
47

 
47

Mixed use
—

 
354

 
—

 
354

 
162

 
516

Industrial & warehouse
1,406

 
—

 
—

 
1,406

 
—

 
1,406

Other
97

 
—

 
—

 
97

 
2,096

 
2,193

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
360

 
—

 
—

 
360

 
435

 
795

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
684

 
—

 
—

 
684

 
114

 
798

     Subtotal
$
5,249

 
$
1,007

 
$
—

 
$
6,256

 
$
9,100

 
$
15,356

TOTAL
$
15,447

 
$
4,985

 
$
275

 
$
20,707

 
$
37,009

 
$
57,716


__________________________________
(1) 
Acquired Loans exclude PCI loans.
(2) 
Nonaccrual loans exclude guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.2 million. Includes nonaccrual loans less than 30 days past due totaling $15.6 million.

 
As of December 31, 2016
 
Past Due and Accruing
 
 
 
 
 
30-59
Days 
 
60-89 
Days
 
90 or More Days 
 
Total
 
Nonaccrual Loans (2)
 
Total Delinquent and Nonaccrual Loans
 
(Dollars in thousands)
Legacy Loans:
 
Real estate—residential
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
480

 
—

 
—

 
480

 
3,672

 
4,152

Hotel & motel
1,836

 
3,137

 
—

 
4,973

 
1,392

 
6,365

Gas station & car wash
362

 
—

 
—

 
362

 
3,690

 
4,052

Mixed use
—

 
—

 
—

 
—

 
1,305

 
1,305

Industrial & warehouse
—

 
697

 
—

 
697

 
1,922

 
2,619

Other
2,871

 
—

 
—

 
2,871

 
4,007

 
6,878

Real estate—construction
—

 
1,513

 
—

 
1,513

 
1,300

 
2,813

Commercial business
558

 
815

 
—

 
1,373

 
9,371

 
10,744

Trade finance
—

 
500

 
—

 
500

 
2,056

 
2,556

Consumer and other
146

 
58

 
305

 
509

 
229

 
738

     Subtotal
$
6,253

 
$
6,720

 
$
305

 
$
13,278

 
$
28,944

 
$
42,222

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

 
$
—

 
$
—

 
$
—

 
$
679

 
$
679

Real estate—commercial
 
 
 
 
 
 
 
 
 
 
 
Retail
1,611

 
—

 
—

 
1,611

 
1,871

 
3,482

Hotel & motel
95

 
—

 
—

 
95

 
4,501

 
4,596

Gas station & car wash
68

 
340

 
—

 
408

 
993

 
1,401

Mixed use
—

 
—

 
—

 
—

 
48

 
48

Industrial & warehouse
257

 
—

 
—

 
257

 
—

 
257

Other
350

 
—

 
—

 
350

 
2,144

 
2,494

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
1,303

 
684

 
—

 
1,987

 
345

 
2,332

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
331

 
25

 
—

 
356

 
549

 
905

     Subtotal
$
4,015

 
$
1,049

 
$
—

 
$
5,064

 
$
11,130

 
$
16,194

TOTAL
$
10,268

 
$
7,769

 
$
305

 
$
18,342

 
$
40,074

 
$
58,416

__________________________________
(1) 
Acquired Loans exclude PCI loans.
(2) 
Nonaccrual loans exclude guaranteed portion of delinquent SBA loans that are in liquidation totaling $15.9 million.
Risk Category of Loans by Class of Loans
The following tables present the recorded investment of risk ratings for Legacy and Acquired Loans as of March 31, 2017 and December 31, 2016 by class of loans:
 
As of March 31, 2017
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
 
(Dollars in thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
36,883

 
$
219

 
$
1,465

 
$
—

 
$
38,567

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
1,373,943

 
19,057

 
17,634

 
—

 
1,410,634

Hotel & motel
1,171,476

 
15,238

 
9,010

 
—

 
1,195,724

Gas station & car wash
637,755

 
10,280

 
3,542

 
—

 
651,577

Mixed use
396,870

 
957

 
1,408

 
—

 
399,235

Industrial & warehouse
515,640

 
21,839

 
14,970

 
—

 
552,449

Other
1,050,557

 
22,967

 
35,864

 
—

 
1,109,388

Real estate—construction
175,895

 
13,755

 
2,856

 
—

 
192,506

Commercial business
1,000,577

 
18,973

 
74,590

 
233

 
1,094,373

Trade finance
53,839

 
4,142

 
5,600

 
—

 
63,581

Consumer and other
206,835

 
4

 
809

 
—

 
207,648

Subtotal
$
6,620,270

 
$
127,431

 
$
167,748

 
$
233

 
$
6,915,682

Acquired Loans:
 
 
 
 
 
 
 
 
 
Real estate—residential
$
19,330

 
$
269

 
$
—

 
$
—

 
$
19,599

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
750,436

 
11,996

 
17,642

 
—

 
780,074

Hotel & motel
316,099

 
11,955

 
17,562

 
—

 
345,616

Gas station & car wash
243,494

 
8,918

 
9,190

 
—

 
261,602

Mixed use
117,453

 
3,578

 
11,599

 
8

 
132,638

Industrial & warehouse
314,060

 
14,694

 
16,453

 
298

 
345,505

Other
712,484

 
28,529

 
23,389

 
—

 
764,402

Real estate—construction
91,672

 
—

 
—

 
—

 
91,672

Commercial business
549,059

 
17,666

 
35,700

 
97

 
602,522

Trade finance
76,541

 
17

 
3,159

 
—

 
79,717

Consumer and other
204,689

 
914

 
5,270

 
1,648

 
212,521

Subtotal
$
3,395,317

 
$
98,536

 
$
139,964

 
$
2,051

 
$
3,635,868

Total
$
10,015,587

 
$
225,967

 
$
307,712

 
$
2,284

 
$
10,551,550


 
 
As of December 31, 2016
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
 
(Dollars in thousands)
Legacy Loans:
 
 
 
Real estate—residential
$
34,283

 
$
223

 
$
2,883

 
$
—

 
$
37,389

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
1,303,452

 
18,929

 
15,430

 
—

 
1,337,811

Hotel & motel
1,187,709

 
12,763

 
9,026

 
—

 
1,209,498

Gas station & car wash
643,282

 
7,259

 
3,690

 
—

 
654,231

Mixed use
375,312

 
—

 
1,467

 
—

 
376,779

Industrial & warehouse
478,528

 
29,830

 
13,745

 
—

 
522,103

Other
969,024

 
22,220

 
41,017

 
—

 
1,032,261

Real estate—construction
159,230

 
14,745

 
1,300

 
—

 
175,275

Commercial business
1,032,232

 
15,919

 
65,885

 
95

 
1,114,131

Trade finance
68,051

 
5,673

 
7,670

 
—

 
81,394

Consumer and other
179,864

 
1

 
829

 
—

 
180,694

Subtotal
$
6,430,967

 
$
127,562

 
$
162,942

 
$
95

 
$
6,721,566

Acquired Loans:
 
 
 
Real estate—residential
$
18,007

 
$
1,809

 
$
679

 
$
—

 
$
20,495

Real estate—commercial
 
 
 
 
 
 
 
 
 
Retail
772,465

 
9,860

 
21,110

 
—

 
803,435

Hotel & motel
328,396

 
5,419

 
18,233

 
—

 
352,048

Gas station & car wash
249,379

 
8,437

 
11,338

 
—

 
269,154

Mixed use
118,643

 
3,105

 
12,505

 
8

 
134,261

Industrial & warehouse
321,040

 
31,819

 
9,048

 
315

 
362,222

Other
736,385

 
23,286

 
29,099

 
—

 
788,770

Real estate—construction
78,838

 
—

 
—

 
—

 
78,838

Commercial business
649,186

 
31,340

 
37,265

 
99

 
717,890

Trade finance
70,535

 
61

 
2,938

 
—

 
73,534

Consumer and other
214,437

 
958

 
5,949

 
1,432

 
222,776

Subtotal
$
3,557,311

 
$
116,094

 
$
148,164

 
$
1,854

 
$
3,823,423

Total
$
9,988,278

 
$
243,656

 
$
311,106

 
$
1,949

 
$
10,544,989
Loans Sold From Loans Held For Investment
 
Three Months Ended March 31,
 
2017
 
2016
Transfer of loans receivable to held for sale
(Dollars in thousands)
Real estate - commercial
$
8,699

 
$
—

Commercial business
752

 
—

Consumer
—

 
450

     Total
$
9,451

 
$
450
Allowance for Loan Losses and Impaired Loans, Qualitative and Quantitative Analysis
The following table presents breakdown of loans by impairment method at March 31, 2017 and December 31, 2016:
 
As of March 31, 2017
 
Real Estate -
Residential
 
Real Estate -
Commercial
 
Real Estate -
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(Dollars in thousands)
Impaired loans (gross carrying value)
$
1,465

 
$
90,381

 
$
2,856

 
$
29,440

 
$
4,450

 
$
987

 
$
129,579

Specific allowance
$
—

 
$
2,560

 
$
—

 
$
2,479

 
$
—

 
$
40

 
$
5,079

Allowance coverage ratio
N/A

 
2.83
%
 
N/A

 
8.42
%
 
N/A

 
4.05
%
 
3.92
%
Other loans
$
56,701

 
$
7,858,463

 
$
281,322

 
$
1,667,455

 
$
138,848

 
$
419,182

 
$
10,421,971

General allowance
$
287

 
$
52,827

 
$
1,710

 
$
15,944

 
$
811

 
$
2,001

 
$
73,580

Allowance coverage ratio
0.51
%
 
0.67
%
 
0.61
%
 
0.96
%
 
0.58
%
 
0.48
%
 
0.71
%
Total loans
$
58,166

 
$
7,948,844

 
$
284,178

 
$
1,696,895

 
$
143,298

 
$
420,169

 
$
10,551,550

Total allowance for loan losses
$
287

 
$
55,387

 
$
1,710

 
$
18,423

 
$
811

 
$
2,041

 
$
78,659

Allowance coverage ratio
0.49
%
 
0.70
%
 
0.60
%
 
1.09
%
 
0.57
%
 
0.49
%
 
0.75
%

 
As of December 31, 2016
 
Real Estate -
Residential
 
Real Estate -
Commercial
 
Real Estate -
Construction
 
Commercial
Business
 
Trade
Finance
 
Consumer
and Other
 
Total
 
(Dollars in thousands)
Impaired loans (gross carrying value)
$
3,562

 
$
93,088

 
$
1,300

 
$
35,218

 
$
6,029

 
$
1,164

 
$
140,361

Specific allowance
$
—

 
$
2,002

 
$
—

 
$
4,493

 
$
864

 
$
50

 
$
7,409

Allowance coverage ratio
N/A

 
2.15
%
 
N/A

 
12.76
%
 
14.33
%
 
4.30
%
 
5.28
%
Other loans
$
54,322

 
$
7,749,485

 
$
252,813

 
$
1,796,803

 
$
148,899

 
$
402,306

 
$
10,404,628

General allowance
$
209

 
$
47,915

 
$
1,621

 
$
19,054

 
$
1,033

 
$
2,102

 
$
71,934

Allowance coverage ratio
0.38
%
 
0.62
%
 
0.64
%
 
1.06
%
 
0.69
%
 
0.52
%
 
0.69
%
Total loans
$
57,884

 
$
7,842,573

 
$
254,113

 
$
1,832,021

 
$
154,928

 
$
403,470

 
$
10,544,989

Total allowance for loan losses
$
209

 
$
49,917

 
$
1,621

 
$
23,547

 
$
1,897

 
$
2,152

 
$
79,343

Allowance coverage ratio
0.36
%
 
0.64
%
 
0.64
%
 
1.29
%
 
1.22
%
 
0.53
%
 
0.75
%
Troubled Debt Restructurings
The following table presents the recorded investment of loans modified as TDRs during the three months ended March 31, 2017 and March 31, 2016 by class of loans:
 
Three Months Ended March 31, 2017
 
Three Months Ended March 31, 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
1

 
482

 
482

 
—

 
—

 
—

Real estate - construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
2

 
1,681

 
1,218

 
6

 
11,088

 
7,039

Trade finance
—

 
—

 
—

 
1

 
2,199

 
1,586

Consumer and other
—

 
—

 
—

 
—

 
—

 
—

Subtotal
3

 
$
2,163

 
$
1,700

 
7

 
$
13,287

 
$
8,625

Acquired Loans:
 
 
 
 
 
 
 
 
 
 
 
Real estate—commercial
 
 
 

 
 

 
 
 
 

 
 

Retail
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Hotel & motel
—

 
—

 
—

 
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

 
—

 
—

 
—

Mixed use
—

 
—

 
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

 
—

 
—

Other
1

 
93

 
97

 
—

 
—

 
—

Real estate—construction
—

 
—

 
—

 
—

 
—

 
—

Commercial business
2

 
649

 
561

 
—

 
—

 
—

Trade finance
—

 
—

 
—

 
—

 
—

 
—

Consumer and other
—

 
—

 
—

 
1

 
30

 
29

Subtotal
3

 
$
742

 
$
658

 
1

 
$
30

 
$
29

Total
6

 
$
2,905

 
$
2,358

 
8

 
$
13,317

 
$
8,654

A summary of the recorded investment of TDRs on accrual and nonaccrual status by type of concession as of March 31, 2017 and December 31, 2016 is presented below:
 
As of March 31, 2017
 
TDRs on Accrual Status
 
TDRs on Nonaccrual Status
 
Total
 
Real Estate
 
Commercial Business
 
Other
 
Total
 
Real Estate
 
Commercial Business
 
Other
 
Total
 
 
(Dollars in thousands)
Payment concession
$
16,249

 
$
233

 
$
—

 
$
16,482

 
$
2,503

 
$
1,270

 
$
—

 
$
3,773

 
$
20,255

Maturity / amortization concession
2,302

 
17,969

 
4,499

 
24,770

 
1,774

 
4,789

 
853

 
7,416

 
32,186

Rate concession
6,068

 
1,579

 
85

 
7,732

 
5,567

 
365

 
—

 
5,932

 
13,664

Total
$
24,619

 
$
19,781

 
$
4,584

 
$
48,984

 
$
9,844

 
$
6,424

 
$
853

 
$
17,121

 
$
66,105

 
As of December 31, 2016
 
TDRs on Accrual Status
 
TDRs on Nonaccrual Status
 
Total
 
Real Estate
 
Commercial Business
 
Other
 
Total
 
Real Estate
 
Commercial Business
 
Other
 
Total
 
 
(Dollars in thousands)
Payment concession
$
16,358

 
$
29

 
$
—

 
$
16,387

 
$
4,417

 
$
1,717

 
$
—

 
$
6,134

 
$
22,521

Maturity / amortization concession
1,840

 
17,471

 
4,600

 
23,911

 
1,313

 
6,130

 
2,287

 
9,730

 
33,641

Rate concession
6,856

 
1,665

 
55

 
8,576

 
5,590

 
387

 
155

 
6,132

 
14,708

Total
$
25,054

 
$
19,165

 
$
4,655

 
$
48,874

 
$
11,320

 
$
8,234

 
$
2,442

 
$
21,996

 
$
70,870
Summary of Troubled Debt Restructurings with Subsequent Payment Default
The following table presents loans modified as TDRs within the previous twelve months and have subsequently had a payment default during the three months ended March 31, 2017:
 
Three Months Ended March 31, 2017
 
Three Months Ended March 31, 2016
 
Number of Loans
 
Balance
 
Number of Loans
 
Balance
 
(Dollars In thousands)
Legacy Loans:
 
 
 
 
 
 
 
Real estate—commercial
 
 
 
 
 
 
 
Retail
—

 
$
—

 
—

 
$
—

Hotel & motel
—

 
—

 
—

 
—

Gas station & car wash
—

 
—

 
2

 
729

Mixed Use
—

 
—

 
—

 
—

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Real estate—construction
—

 
—

 
—

 
—

Commercial business
1

 
102

 
6

 
2,272

Trade finance
—

 
—

 
—

 
—

Consumer and other
—

 
—

 
—

 
—

Subtotal
1

 
$
102

 
8

 
$
3,001

Acquired Loans:
 
 
 
 
 
 
 
Real estate—commercial
 

 
 

 
 
 
 
Retail
—

 
$
—

 
—

 
$
—

Hotel & motel
—

 
—

 
—

 
—

Gas station & car wash
—

 
—

 
—

 
—

Mixed Use
—

 
—

 
1

 
62

Industrial & warehouse
—

 
—

 
—

 
—

Other
—

 
—

 
—

 
—

Real estate—construction
—

 
—

 
—

 
—

Commercial business
1

 
11

 
—

 
—

Trade finance
—

 
—

 
—

 
—

Consumer and other
—

 
—

 
—

 
—

Subtotal
1

 
$
11

 
1

 
$
62

Total
2

 
$
113

 
9

 
$
3,063
Covered Non-performing Assets
The covered nonperforming assets at March 31, 2017 and December 31, 2016 were as follows:
 
March 31, 2017
 
December 31, 2016
 
(Dollars in thousands)
Covered loans on nonaccrual status
$
181

 
$
189

Covered OREO
1,400

 
2,306

     Total covered nonperforming assets
$
1,581

 
$
2,495

 
 
 
 
Acquired covered loans
$
32,010

 
$
32,367