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Loans Receivable and Allowance for Credit Losses (Tables)
6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Summary of Loans Receivable by Major Category
The following is a summary of loans receivable by major category:
June 30, 2021December 31, 2020
Loan portfolio composition(Dollars in thousands)
Real estate loans:
Residential
$61,360 $54,795 
Commercial
8,518,115 8,425,959 
Construction
252,801 291,380 
Total real estate loans
8,832,276 8,772,134 
Commercial business *
4,001,423 4,157,787 
Residential mortgage543,622 582,232 
Consumer and other46,980 51,060 
Loans receivable13,424,301 13,563,213 
Allowance for credit losses(189,452)(206,741)
Loans receivable, net of allowance for credit losses$13,234,849 $13,356,472 
__________________________________
* Commercial business loans as of June 30, 2021 and December 31, 2020 include $568.8 million and $452.7 million, respectively, in SBA Paycheck Protection Program loans
Allowance for Credit Losses by Portfolio Segment
The tables below details the activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2021 and 2020. Charge offs for the three and six months ended June 30, 2021 included $11.8 million in real estate loan charge offs that resulted from the sale of $119.3 million in hotel/motel loans with elevated credit risk, there were no such sales for the three and six ended June 30, 2020. Accrued interest receivables on loans totaled $47.1 million at June 30, 2021 and $54.6 million at December 31, 2020. The Company set aside an allowance on loan accrued interest receivables of $751 thousand at June 30, 2021 and $1.0 million at December 31, 2020.
Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Three Months Ended June 30, 2021
Balance, beginning of period$162,307 $41,860 $2,735 $1,041 $207,943 
Provision (credit) for credit losses4,227 (12,179)877 75 (7,000)
Loans charged off(12,172)(572)— (48)(12,792)
Recoveries of charge offs891 391 — 19 1,301 
Balance, end of period$155,253 $29,500 $3,612 $1,087 $189,452 
Six Months Ended June 30, 2021
Balance, beginning of period$162,196 $39,155 $4,227 $1,163 $206,741 
Provision (credit) for credit losses6,572 (9,554)(615)(103)(3,700)
Loans charged off(14,990)(1,182)— (141)(16,313)
Recoveries of charge offs1,475 1,081 — 168 2,724 
Balance, end of period$155,253 $29,500 $3,612 $1,087 $189,452 


Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Three Months Ended June 30, 2020
Balance, beginning of period$94,645 $42,883 $5,779 $1,616 $144,923 
Provision (credit) for credit losses24,534 (7,151)89 28 17,500 
Loans charged off(174)(459)— (271)(904)
Recoveries of charge offs25 220 — 252 
Balance, end of period$119,030 $35,493 $5,868 $1,380 $161,771 
Six Months Ended June 30, 2020
Balance, beginning of period$53,593 $33,032 $5,925 $1,594 $94,144 
CECL day 1 adoption27,791 (1,022)(543)(26)26,200 
Provision for credit losses40,025 4,398 486 591 45,500 
Loans charged off(2,571)(3,494)— (796)(6,861)
Recoveries of charge offs192 2,579 — 17 2,788 
Balance, end of period$119,030 $35,493 $5,868 $1,380 $161,771 
The following tables break out the allowance for credit losses and loan balance by measurement methodology at June 30, 2021 and December 31, 2020:
June 30, 2021
Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$27,226 $3,325 $15 $26 $30,592 
Collectively evaluated128,027 26,175 3,597 1,061 158,860 
Total$155,253 $29,500 $3,612 $1,087 $189,452 
Loans outstanding:
Individually evaluated$138,368 $20,978 $3,053 $236 $162,635 
Collectively evaluated8,693,908 3,980,445 540,569 46,744 13,261,666 
Total$8,832,276 $4,001,423 $543,622 $46,980 $13,424,301 

December 31, 2020
Real EstateCommercial BusinessResidential MortgageConsumer and OtherTotal
(Dollars in thousands)
Allowance for credit losses:
Individually evaluated$3,683 $3,575 $25 $42 $7,325 
Collectively evaluated158,513 35,580 4,202 1,121 199,416 
Total$162,196 $39,155 $4,227 $1,163 $206,741 
Loans outstanding:
Individually evaluated$93,476 $25,706 $3,416 $605 $123,203 
Collectively evaluated8,678,658 4,132,081 578,816 50,455 13,440,010 
Total$8,772,134 $4,157,787 $582,232 $51,060 $13,563,213 
The following tables present a breakdown of loans by recorded ACL, broken out by loans evaluated individually and collectively at June 30, 2021 and December 31, 2020:
 As of June 30, 2021
 Real Estate –
Residential
Real Estate –
Commercial
Real Estate –
Construction
Commercial
Business
Residential
Mortgage
Consumer
and Other
Total
 (Dollars in thousands)
Individually evaluated loans
$— $130,944 $7,424 $20,978 $3,053 $236 $162,635 
ACL on individually evaluated loans$— $27,226 $— $3,325 $15 $26 $30,592 
Individually evaluated loans ACL coverageN/A20.79 %N/A15.85 %0.49 %11.02 %18.81 %
Collectively evaluated loans$61,360 $8,387,171 $245,377 $3,980,445 $540,569 $46,744 $13,261,666 
ACL on collectively evaluated loans$330 $126,040 $1,657 $26,175 $3,597 $1,061 $158,860 
Collectively evaluated loans ACL coverage0.54 %1.50 %0.68 %0.66 %0.67 %2.27 %1.20 %
Total loans$61,360 $8,518,115 $252,801 $4,001,423 $543,622 $46,980 $13,424,301 
Total ACL$330 $153,266 $1,657 $29,500 $3,612 $1,087 $189,452 
Total ACL to total loans0.54 %1.80 %0.66 %0.74 %0.66 %2.31 %1.41 %

 
As of December 31, 2020
 
Real Estate –
Residential
Real Estate –
Commercial
Real Estate –
Construction
Commercial
Business
Residential
Mortgage
Consumer
and Other
Total
 
(Dollars in thousands)
Individually evaluated loans
$— $74,753 $18,723 $25,706 $3,416 $605 $123,203 
ACL on individually evaluated loans$— $2,862 $821 $3,575 $25 $42 $7,325 
Individually evaluated loans ACL coverageN/A3.83 %4.38 %13.91 %0.73 %6.94 %5.95 %
Collectively evaluated loans$54,795 $8,351,206 $272,657 $4,132,081 $578,816 $50,455 $13,440,010 
ACL on collectively evaluated loans$391 $156,665 $1,457 $35,580 $4,202 $1,121 $199,416 
Collectively evaluated loans ACL coverage0.71 %1.88 %0.53 %0.86 %0.73 %2.22 %1.48 %
Total loans$54,795 $8,425,959 $291,380 $4,157,787 $582,232 $51,060 $13,563,213 
Total ACL$391 $159,527 $2,278 $39,155 $4,227 $1,163 $206,741 
Total ACL to total loans0.71 %1.89 %0.78 %0.94 %0.73 %2.28 %1.52 %
Schedule of Nonaccrual Loans and Loans Past Due 90 or More Days And Still on Accrual Status
The tables below represent the recorded investment of nonaccrual loans and loans past due 90 or more days and still on accrual status by class of loans and broken out by loans with a recorded ACL and those without a recorded ACL as of June 30, 2021 and December 31, 2020.
June 30, 2021
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 or More Days
(Dollars in thousands)
Real estate – residential$— $— $— $— 
Real estate – commercial
Retail10,463 34,100 44,563 — 
Hotel & motel13,654 5,428 19,082 3,776 
Gas station & car wash575 1,303 1,878 — 
Mixed use9,754 1,610 11,364 — 
Industrial & warehouse2,105 2,332 4,437 — 
Other1,791 5,083 6,874 — 
Real estate – construction7,424 — 7,424 — 
Commercial business5,035 7,182 12,217 26 
Residential mortgage1,440 1,612 3,052 872 
Consumer and other— 117 117 85 
Total$52,241 $58,767 $111,008 $4,759 
December 31, 2020
Nonaccrual with No ACLNonaccrual with an ACL
Total Nonaccrual (1)
Accruing Loans Past Due 90 or More Days
(Dollars in thousands)
Real estate – residential$— $— $— $— 
Real estate – commercial
Retail3,262 8,530 11,792 478 
Hotel & motel15,311 2,195 17,506 — 
Gas station & car wash151 1,493 1,644 — 
Mixed use1,883 788 2,671 — 
Industrial & warehouse5,443 1,022 6,465 — 
Other7,230 1,419 8,649 — 
Real estate – construction— 18,723 18,723 — 
Commercial business5,319 8,592 13,911 — 
Residential mortgage1,440 1,976 3,416 — 
Consumer and other— 461 461 136 
Total$40,039 $45,199 $85,238 $614 
__________________________________
(1)    Total nonaccrual loans exclude the guaranteed portion of SBA loans that are in liquidation totaling $23.6 million and $26.5 million, at June 30, 2021 and December 31, 2020, respectively.
Amortized Cost Basis of Collateral-Dependent Loans
The following table presents the amortized cost basis of collateral-dependent loans as of June 30, 2021 and December 31, 2020:
June 30, 2021
Real Estate CollateralOther CollateralTotal
(Dollars in thousands)
Real estate – residential$— $— $— 
Real estate – commercial97,184 — 97,184 
Real estate – construction7,424 — 7,424 
Commercial business7,518 6,560 14,078 
Residential mortgage1,439 — 1,439 
Consumer and other— — — 
Total$113,565 $6,560 $120,125 

December 31, 2020
Real Estate CollateralOther CollateralTotal
(Dollars in thousands)
Real estate – residential$— $— $— 
Real estate – commercial55,945 — 55,945 
Real estate – construction8,122 — 8,122 
Commercial business7,818 6,312 14,130 
Residential mortgage1,440 — 1,440 
Consumer and other15 — 15 
Total$73,340 $6,312 $79,652 
Aging of Past Due Loans
The following table presents the recorded investment of past due loans, including nonaccrual loans past due 30 or more days, by the number of days past due as of June 30, 2021 and December 31, 2020 by class of loans:
 As of June 30, 2021As of December 31, 2020
 30-59 Days
Past Due 
60-89 Days 
Past Due
90 or More Days
Past Due 
Total
Past Due
30-59 Days
Past Due 
60-89 Days 
Past Due
90 or More Days
Past Due 
Total
Past Due
(Dollars in thousands)
Real estate – residential$— $— $— $— $— $— $— $— 
Real estate – commercial
Retail
788 8,148 10,852 19,788 852 8,141 10,276 19,269 
Hotel & motel
2,487 2,808 16,373 21,668 62 1,401 14,744 16,207 
Gas station & car wash
292 411 443 1,146 619 2,668 563 3,850 
Mixed use
2,547 13,921 295 16,763 116 — 1,269 1,385 
Industrial & warehouse
8,211 154 2,611 10,976 137 — 3,830 3,967 
Other
2,149 42 2,913 5,104 2,738 545 3,000 6,283 
Real estate – construction— — 7,424 7,424 8,122 — — 8,122 
Commercial business431 4,209 5,545 10,185 816 3,683 4,700 9,199 
Residential mortgage6,359 540 2,702 9,601 4,841 — 2,263 7,104 
Consumer and other45 24 202 271 797 21 595 1,413 
Total Past Due$23,309 $30,257 $49,360 $102,926 $19,100 $16,459 $41,240 $76,799 
Financing Receivable Credit Quality Indicators
The following table presents the amortized cost basis of loans receivable by class, credit quality indicator, and year of origination as of June 30, 2021 and December 31, 2020.
As of June 30, 2021
Term Loan by Origination YearRevolving LoansTotal
20212020201920182017Prior
(Dollars in thousands)
Real Estate - Residential
Pass / not rated$12,995 $14,311 $13,556 $5,547 $3,831 $10,098 $658 $60,996 
Special mention— — — — — — 228 228 
Substandard— — — 136 — — — 136 
Doubtful / loss— — — — — — — — 
Subtotal$12,995 $14,311 $13,556 $5,683 $3,831 $10,098 $886 $61,360 
Real Estate - Commercial
Pass / not rated$1,073,045 $1,485,549 $1,340,161 $1,375,076 $1,055,030 $1,544,353 $106,716 $7,979,930 
Special mention4,223 5,706 48,552 29,215 40,713 71,144 11,978 211,531 
Substandard6,508 552 17,395 26,725 52,497 220,280 2,697 326,654 
Doubtful / loss— — — — — — — — 
Subtotal$1,083,776 $1,491,807 $1,406,108 $1,431,016 $1,148,240 $1,835,777 $121,391 $8,518,115 
Real Estate - Construction
Pass / not rated$841 $47,025 $44,574 $39,298 $27,652 $21,200 $8,457 $189,047 
Special mention— — — 45,989 4,428 5,913 — 56,330 
Substandard— — — — — 7,424 — 7,424 
Doubtful / loss— — — — — — — — 
Subtotal$841 $47,025 $44,574 $85,287 $32,080 $34,537 $8,457 $252,801 
Commercial Business
Pass / not rated$889,734 $866,932 $516,793 $147,361 $112,324 $100,388 $1,297,976 $3,931,508 
Special mention1,191 415 3,943 13,581 212 5,466 1,662 26,470 
Substandard1,457 8,552 1,856 2,114 12,840 7,860 8,766 43,445 
Doubtful / loss— — — — — — — — 
Subtotal$892,382 $875,899 $522,592 $163,056 $125,376 $113,714 $1,308,404 $4,001,423 
Residential Mortgage
Pass / not rated$116,677 $4,764 $56,940 $166,777 $123,595 $71,816 $— $540,569 
Special mention— — — — — — — — 
Substandard— — 128 200 541 2,184 — 3,053 
Doubtful / loss— — — — — — — — 
Subtotal$116,677 $4,764 $57,068 $166,977 $124,136 $74,000 $— $543,622 
Consumer and Other
Pass / not rated$2,784 $5,994 $2,243 $1,937 $2,114 $7,611 $24,054 $46,737 
Special mention— — — — — — — — 
Substandard— — — — — 243 — 243 
Doubtful / loss— — — — — — — — 
Subtotal$2,784 $5,994 $2,243 $1,937 $2,114 $7,854 $24,054 $46,980 
Total Loans
Pass / not rated$2,096,076 $2,424,575 $1,974,267 $1,735,996 $1,324,546 $1,755,466 $1,437,861 $12,748,787 
Special mention5,414 6,121 52,495 88,785 45,353 82,523 13,868 294,559 
Substandard7,965 9,104 19,379 29,175 65,878 237,991 11,463 380,955 
Doubtful / loss— — — — — — — — 
Total$2,109,455 $2,439,800 $2,046,141 $1,853,956 $1,435,777 $2,075,980 $1,463,192 $13,424,301 
December 31, 2020
Term Loan by Origination YearRevolving LoansTotal
20202019201820172016Prior
(Dollars in thousands)
Real Estate - Residential
Pass / not rated$15,158 $13,924 $7,587 $4,316 $6,800 $3,460 $3,104 $54,349 
Special mention— — — — — — 227 227 
Substandard— — 139 — — 80 — 219 
Doubtful / loss— — — — — — — — 
Subtotal$15,158 $13,924 $7,726 $4,316 $6,800 $3,540 $3,331 $54,795 
Real Estate - Commercial
Pass / not rated$1,548,595 $1,554,980 $1,533,802 $1,240,973 $767,318 $1,262,125 $130,595 $8,038,388 
Special mention— 2,805 24,569 10,694 8,031 32,048 1,600 79,747 
Substandard126 14,233 28,938 37,174 50,371 173,788 3,194 307,824 
Doubtful / loss— — — — — — — — 
Subtotal$1,548,721 $1,572,018 $1,587,309 $1,288,841 $825,720 $1,467,961 $135,389 $8,425,959 
Real Estate - Construction
Pass / not rated$35,743 $45,290 $103,794 $60,996 $5,740 $10,099 $— $261,662 
Special mention— — — — 5,771 5,224 — 10,995 
Substandard— — — 10,601 — 8,122 — 18,723 
Doubtful / loss— — — — — — — — 
Subtotal$35,743 $45,290 $103,794 $71,597 $11,511 $23,445 $— $291,380 
Commercial Business
Pass / not rated$1,294,368 $584,453 $224,447 $117,708 $77,209 $43,674 $1,686,428 $4,028,287 
Special mention5,996 27,693 30,852 14,629 6,388 3,139 5,172 93,869 
Substandard2,430 1,323 5,539 4,394 6,158 5,463 10,323 35,630 
Doubtful / loss— — — — — — 
Subtotal$1,302,794 $613,469 $260,839 $136,731 $89,755 $52,276 $1,701,923 $4,157,787 
Residential Mortgage
Pass / not rated$5,733 $90,958 $217,343 $168,827 $55,246 $40,554 $— $578,661 
Special mention— — — — — — — — 
Substandard— 122 536 561 1,715 637 — 3,571 
Doubtful / loss— — — — — — — — 
Subtotal$5,733 $91,080 $217,879 $169,388 $56,961 $41,191 $— $582,232 
Consumer and Other
Pass / not rated$8,309 $2,463 $1,818 $2,321 $4,756 $2,811 $27,890 $50,368 
Special mention— — — 103 — — — 103 
Substandard— — — — 55 532 589 
Doubtful / loss— — — — — — — — 
Subtotal$8,309 $2,463 $1,818 $2,424 $4,811 $3,343 $27,892 $51,060 
Total Loans
Pass / not rated$2,907,906 $2,292,068 $2,088,791 $1,595,141 $917,069 $1,362,723 $1,848,017 $13,011,715 
Special mention5,996 30,498 55,421 25,426 20,190 40,411 6,999 184,941 
Substandard2,556 15,678 35,152 52,730 58,299 188,622 13,519 366,556 
Doubtful / loss— — — — — — 
Total$2,916,458 $2,338,244 $2,179,365 $1,673,297 $995,558 $1,591,756 $1,868,535 $13,563,213 
For the three and six months ended June 30, 2021 and the twelve months ended December 31, 2020, there were no revolving loans converted to term loans.
Loans Sold From Loans Held For Investment The breakdown of loans by type that were reclassified from held for investment to held for sale for the three and six months ended June 30, 2021 and 2020 is presented in the following table:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Transfer of loans held for investment to held for sale(Dollars in thousands)
Real estate - commercial$171,175 $— $171,175 $— 
Commercial business9,660 — 9,660 — 
Residential mortgage— — — 1,002 
Total$180,835 $— $180,835 $1,002 
Troubled Debt Restructurings
A summary of the recorded investment of TDR loans on accrual and nonaccrual status by type of concession as of June 30, 2021 and December 31, 2020 is presented below:
As of June 30, 2021
TDR Loans on Accrual StatusTDR Loans on Nonaccrual StatusTotal TDRs
Real EstateCommercial BusinessResidential MortgageOtherReal EstateCommercial BusinessResidential MortgageOther
(Dollars in thousands)
Payment concession$17,305 $808 $— $58 $8,357 $523 $— $— $27,051 
Maturity / amortization concession
19,996 7,380 — 133 22,889 3,404 — 117 53,919 
Rate concession5,303 377 — — 398 1,422 — — 7,500 
Total$42,604 $8,565 $— $191 $31,644 $5,349 $— $117 $88,470 

As of December 31, 2020
TDR Loans on Accrual StatusTDR Loans on Nonaccrual StatusTotal
TDRs
Real EstateCommercial BusinessResidential MortgageOtherReal EstateCommercial BusinessResidential MortgageOther
(Dollars in thousands)
Payment concession$8,328 $814 $— $58 $7,074 $471 $— $— $16,745 
Maturity / amortization concession
11,331 10,219 — 114 925 3,814 — 117 26,520 
Rate concession6,112 378 — — 424 1,430 — — 8,344 
Total$25,771 $11,411 $— $172 $8,423 $5,715 $— $117 $51,609 
The following tables present the recorded investment of loans classified as TDR during the three and six months ended June 30, 2021 and 2020 by class of loans:
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
Number of LoansBalanceNumber of LoansBalance
(Dollars in thousands)
Real estate residential
— $— $216 
Real estate commercial
 
Retail6,527 — — 
Hotel & motel— — — — 
Gas station & car wash— — 479 
Mixed use4,624 464 
Industrial & warehouse— — — — 
Other— — — — 
Real estate construction
— — — — 
Commercial business312 234 
Residential mortgage— — — — 
Consumer and other12 14 
Total$11,475 $1,407 
For the Six Months Ended June 30, 2021For the Six Months Ended June 30, 2020
Number of LoansBalanceNumber of LoansBalance
(Dollars in thousands)
Real estate – residential— $— $216 
Real estate – commercial
Retail30,236 676 
Hotel & motel— — — — 
Gas station & car wash575 527 
Mixed use4,624 464 
Industrial & warehouse9,149 261 
Other— — — — 
Real estate – construction— — — — 
Commercial business331 523 
Residential mortgage— — — — 
Consumer and other54 30 
Total19 $44,969 13 $2,697 
Summary of Troubled Debt Restructurings with Subsequent Payment Default
The following tables present loans modified as TDRs within the previous twelve months ended June 30, 2021 and 2020 that subsequently had payment defaults during the three and six months ended June 30, 2021 and 2020:
Three Months Ended June 30, 2021Three Months Ended June 30, 2020
 Number of LoansBalanceNumber of LoansBalance
 (Dollars in thousands)
Real estate – residential— $— — $— 
Real estate – commercial  
Retail
22,589 — — 
Hotel & motel
— — 543 
Gas station & car wash
— — — — 
Mixed Use
— — — — 
Industrial & warehouse
9,149 — — 
Other
— — 133 
Real estate – construction— — — — 
Commercial business— — 18 
Residential mortgage— — — — 
Consumer and other16 — — 
Total$31,754 $694 
Six Months Ended June 30, 2021Six Months Ended June 30, 2020
Number of LoansBalanceNumber of LoansBalance
(Dollars in thousands)
Real estate – residential— $— $216 
Real estate – commercial  
Retail23,551 676 
Hotel & motel— — 543 
Gas station & car wash— — 478 
Mixed Use— — 464 
Industrial & warehouse9,149 261 
Other— — 133 
Real estate – construction— — — — 
Commercial business131 32 
Residential mortgage— — — — 
Consumer and other42 
Total$32,873 10 $2,809