XML 37 R24.htm IDEA: XBRL DOCUMENT

Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Loans and Allowance for Credit Losses

Schedule of loans, net of unamortized net deferred fees

Loans, net of unamortized net deferred fees, at June 30, 2020 (unaudited) and December 31, 2019 are summarized by type as follows:


	June 30, 2020					December 31, 2019
(dollars in thousands)	Amount			%		Amount		%
Commercial	$	1,607,056		20	%	$	1,545,906	20	%
PPP loans		456,476		6	%		—	—
Income producing - commercial real estate		3,678,946		46	%		3,702,747	50	%
Owner occupied - commercial real estate		964,077		12	%		985,409	13	%
Real estate mortgage - residential		93,601		1	%		104,221	1	%
Construction - commercial and residential		995,550		12	%		1,035,754	14	%
Construction - C&I (owner occupied)		149,845		2	%		89,490	1	%
Home equity		74,921		1	%		80,061	1	%
Other consumer		1,289		—			2,160	—
Total loans		8,021,761		100	%		7,545,748	100	%
Less: allowance for credit losses		(108,796)					(73,658)
Net loans	$	7,912,965	(1)			$	7,472,090

(1)	Excludes accrued interest receivable of $36.2 million and $21.3 million at June 30, 2020 and December 31, 2019, respectively, which is recorded in other assets.

Schedule of detail activity in the allowance for credit losses by portfolio segment

The following tables detail activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2020 and 2019. PPP loans are excluded from these tables since they do not carry an allowance for credit loss, as these loans are fully guaranteed as to principal and interest by the SBA, whose guarantee is backed by the full faith and credit of the U.S.

Government. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


			Income Producing -		Owner Occupied -		Real Estate		Construction -
			Commercial		Commercial		Mortgage -		Commercial and		Home		Other
(dollars in thousands)	Commercial		Real Estate		Real Estate		Residential		Residential		Equity		Consumer		Total
Three Months Ended June 30, 2020
Allowance for credit losses:
Balance at beginning of period	$	27,346	$	43,551	$	9,867	$	1,369	$	13,341	$	818	$	44		96,336
Loans charged-off		(7,145)		—		—		—		—		—		—		(7,145)
Recoveries of loans previously charged-off		5		—		—		—		—		—		1		6
Net loans charged-off		(7,140)		—		—		—		—		—		1		(7,139)
Provision for credit losses		7,872		8,312		2,474		181		467		294		(1)		19,599
Ending balance	$	28,078	$	51,863	$	12,341	$	1,550	$	13,808	$	1,112	$	44	$	108,796

Six Months Ended June 30, 2020
Allowance for credit losses:
Balance at beginning of period, prior to adoption of ASC 326	$	15,857	$	28,034	$	6,242	$	965	$	18,175	$	599	$	72	$	69,944
Impact of adopting ASC 326		892		11,230		4,674		(301)		(6,143)		245		17		10,614
Loans charged-off		(7,145)		(550)		—		—		(1,768)		—		—		(9,463)
Recoveries of loans previously charged-off		74		—		—		—		—		—		4		78
Net loans (charged-off) recoveries		(7,071)		(550)		—		—		(1,768)		—		4		(9,385)
Provision for credit losses		18,400		13,149		1,425		886		3,544		268		(49)		37,623
Ending balance	$	28,078	$	51,863	$	12,341	$	1,550	$	13,808	$	1,112	$	44	$	108,796

As of June 30, 2020
Allowance for credit losses:
Individually evaluated for impairment	$	8,797	$	5,260	$	405	$	746	$	1,383	$	107	$	3	$	16,701
Collectively evaluated for impairment		19,281		46,603		11,936		804		12,425		1,005		41		92,095
Ending balance	$	28,078	$	51,863	$	12,341	$	1,550	$	13,808	$	1,112	$	44	$	108,796

Three Months Ended June 30, 2019
Allowance for credit losses:
Balance at beginning of period	$	17,195	$	26,765	$	5,980	$	681	$	18,469	$	605	$	248	$	69,943
Loans charged-off		(1)		(1,847)		—		—		—		—		(2)		(1,850)
Recoveries of loans previously charged-off		37		302		2		2		37		—		13		393
Net loans charged-off		36		(1,545)		2		2		37		—		11		(1,457)
Provision for credit losses		905		1,790		(226)		672		500		(24)		(17)		3,600
Ending balance	$	18,136	$	27,010	$	5,756	$	1,355	$	19,006	$	581	$	242	$	72,086

Six Months Ended June 30, 2019
Allowance for credit losses:
Balance at beginning of period	$	15,857	$	28,034	$	6,242	$	965	$	18,175	$	599	$	72	$	69,944
Loans charged-off		(5)		(5,343)		—		—		—		—		(2)		(5,350)
Recoveries of loans previously charged-off		167		302		2		3		37		—		21		532
Net loans (charged-off) recoveries		162		(5,041)		2		3		37		—		19		(4,818)
Provision for credit losses		2,117		4,017		(488)		387		794		(18)		151		6,960
Ending balance	$	18,136	$	27,010	$	5,756	$	1,355	$	19,006	$	581	$	242	$	72,086

As of June 30, 2019
Allowance for credit losses:
Individually evaluated for impairment	$	7,905	$	1,000	$	475	$	650	$	—	$	—	$	—	$	10,030
Collectively evaluated for impairment		10,231		26,010		5,281		705		19,006		581		242		62,056
Ending balance	$	18,136	$	27,010	$	5,756	$	1,355	$	19,006	$	581	$	242	$	72,086

Schedule of amortized cost basis of collateral-dependent loans by class of loans

The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2020:


	Business/Other
(dollars in thousands)	Assets		Real Estate
Commercial	$	15,105	$	2,895
Income producing - commercial real estate		3,193		24,102
Owner occupied - commercial real estate		—		10,815
Real estate mortgage - residential		—		7,960
Construction - commercial and residential		—		5,385
Construction - C&I (owner occupied)		—		—
Home equity		—		600
Other consumer		6		—
Total	$	18,304	$	51,757

Schedule of the risk category of loans by class of loans


June 30, 2020 (dollars in thousands)	2016		2017		2018		2019		2020		Prior		Total
Commercial
Pass		128,724		316,829		275,852		227,726		140,233		439,707		1,529,071
Watch		362		16,583		—		2,275		—		18,743		37,963
Special Mention		—		—		10,977		—		—		933		11,910
Substandard		4,667		2,128		2,565		459		—		18,293		28,112
Total		133,753		335,540		289,394		230,460		140,233		477,676		1,607,056
PPP loans
Pass		—		—		—		—		456,476		—		456,476
Total		—		—		—		—		456,476		—		456,476
Income producing - commercial real estate
Pass		412,724		520,542		726,838		807,571		208,386		970,544		3,646,605
Watch		—		—		—		4,324		—		721		5,045
Special Mention		800		—		—		—		—		4,843		5,643
Substandard		—		4,656		4,883		5,542		—		6,572		21,653
Total		413,524		525,198		731,721		817,437		208,386		982,680		3,678,946
Owner occupied - commercial real estate
Pass		107,303		117,523		221,811		92,496		15,673		358,051		912,857
Watch		—		—		—		—		—		40,465		40,465
Substandard		803		—		360		—		—		9,592		10,755
Total		108,106		117,523		222,171		92,496		15,673		408,108		964,077
Real estate mortgage - residential
Pass		3,423		10,394		15,429		28,234		5,701		21,844		85,025
Watch		—		—		—		—		—		617		617
Substandard		4,154		2,619		—		—		—		1,186		7,959
Total		7,577		13,013		15,429		28,234		5,701		23,647		93,601
Construction - commercial and residential
Pass		71,957		431,635		317,131		108,584		25,385		35,473		990,165
Substandard		2,298		408		—		—		—		2,679		5,385
Total		74,255		432,043		317,131		108,584		25,385		38,152		995,550
Construction - C&I (owner occupied)
Pass		11,689		5,482		41,084		27,557		17,441		32,612		135,865
Watch		—		2,124		11,087		—		—		769		13,980
Total		11,689		7,606		52,171		27,557		17,441		33,381		149,845
Home Equity
Pass		4,859		8,942		8,658		4,468		3,785		42,416		73,128
Watch		—		—		—		—		—		944		944
Substandard		—		—		—		—		—		849		849
Total		4,859		8,942		8,658		4,468		3,785		44,209		74,921
Other Consumer
Pass		177		85		121		106		28		764		1,281
Substandard		—		—		—		—		—		8		8
Total		177		85		121		106		28		772		1,289
Total Recorded Investment	$	753,940	$	1,439,950	$	1,636,796	$	1,309,342	$	873,108	$	2,008,625	$	8,021,761

Schedule of loans by class and credit quality indicators


											Total
(dollars in thousands)	Pass		Watch		Special Mention		Substandard		Doubtful		Loans
December 31, 2019
Commercial	$	1,470,636	$	38,522	$	11,460	$	25,288	$	—	$	1,545,906
Income producing - commercial real estate		3,667,585		16,069		—		19,093		—		3,702,747
Owner occupied - commercial real estate		925,800		53,146		—		6,463		—		985,409
Real estate mortgage - residential		98,228		628		—		5,365		—		104,221
Construction - commercial and residential		1,113,734		—		—		11,510		—		1,125,244
Home equity		78,626		948		—		487		—		80,061
Other consumer		2,160		—		—		—		—		2,160
Total	$	7,356,769	$	109,313	$	11,460	$	68,206	$	—	$	7,545,748

Schedule by class of loan, an aging analysis and the recorded investments in loans past due

The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of June 30, 2020 and December 31, 2019:


	Loans		Loans		Loans								Total Recorded
	30-59 Days		60-89 Days		90 Days or		Total Past		Current				Investment in
(dollars in thousands)	Past Due		Past Due		More Past Due		Due Loans		Loans		Non-Accrual		Loans
June 30, 2020
Commercial	$	603	$	3,046	$	—	$	3,649	$	1,586,686	$	16,721	$	1,607,056
PPP loans		—		—		—		—		456,476		—	$	456,476
Income producing - commercial real estate		—		14,203		—		14,203		3,647,464		17,279		3,678,946
Owner occupied - commercial real estate		542		212		—		754		952,568		10,755		964,077
Real estate mortgage - residential		—		—		—		—		85,385		8,216		93,601
Construction - commercial and residential		—		751		—		751		989,414		5,385		995,550
Construction - C&I (owner occupied)		—		—		—		—		149,845		—		149,845
Home equity		263		254		—		517		73,804		600		74,921
Other consumer		—		3		—		3		1,280		6		1,289
Total	$	1,408	$	18,469	$	—	$	19,877	$	7,942,922	$	58,962	$	8,021,761

December 31, 2019
Commercial	$	3,063	$	781	$	—	$	3,844	$	1,527,134	$	14,928	$	1,545,906
Income producing - commercial real estate		—		5,542		—		5,542		3,687,494		9,711		3,702,747
Owner occupied - commercial real estate		13,008		—		—		13,008		965,938		6,463		985,409
Real estate mortgage – residential		3,533		—		—		3,533		95,057		5,631		104,221
Construction - commercial and residential		—		—		—		—		1,113,735		11,509		1,125,244
Home equity		136		192		—		328		79,246		487		80,061
Other consumer		—		9		—		9		2,151		—		2,160
Total	$	19,740	$	6,524	$	—	$	26,264	$	7,470,755	$	48,729	$	7,545,748

Schedule of information related to nonaccrual loans by class

The following presents the nonaccrual loans as of June 30, 2020 and December 31, 2019:


	June 30, 2020						December 31, 2019
	Nonaccrual with		Nonaccrual with		Total		Total
	No Allowance		an Allowance		Nonaccrual		Nonaccrual
(dollars in thousands)	for Credit Loss		for Credit Loss		Loans		Loans

Commercial		1,507		15,214		16,721		14,928
PPP loans		—		—		—		—
Income producing - commercial real estate		8,544		8,735		17,279		9,711
Owner occupied - commercial real estate		7,065		3,690		10,755		6,463
Real estate mortgage - residential		5,503		2,713		8,216		5,631
Construction - commercial and residential		2,298		3,087		5,385		11,509
Home equity		50		550		600		487
Other consumer		—		6		6		—
Total	$	24,967	$	33,995	$	58,962	$	48,729

(1)	Excludes TDRs that were performing under their restructured terms totaling $12.3 million at June 30, 2020 and $16.6 million at December 31, 2019.

(2)

Gross interest income of $1.7 million and $1.2 million would have been recorded for the six months ended June 30, 2020 and 2019, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $57 thousand and $86 thousand for the six months ended June 30, 2020 and 2019, respectively.

See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.

Schedule of impaired loans, by class of loan

The following table presents, by class of loan, information related to impaired loans at December 31, 2019:


	Unpaid		Recorded		Recorded						Average Recorded		Interest Income
	Contractual		Investment		Investment		Total				Investment		Recognized
	Principal		With No		With		Recorded		Related		Year		Year
(dollars in thousands)	Balance		Allowance		Allowance		Investment		Allowance		To Date		To Date
December 31, 2019
Commercial	$	15,814	$	11,858	$	3,956	$	15,814	$	5,714	$	15,682	$	270
Income producing - commercial real estate		14,093		2,713		11,380		14,093		2,145		18,133		382
Owner occupied - commercial real estate		7,349		6,388		961		7,349		415		6,107		197
Real estate mortgage - residential		5,631		3,175		2,456		5,631		650		5,638		—
Construction - commercial and residential		11,509		11,101		408		11,509		100		8,211		92
Home equity		487		—		487		487		100		487		—
Other consumer		—		—		—		—		—		—		—
Total	$	54,883	$	35,235	$	19,648	$	54,883	$	9,124	$	54,258	$	941

Schedule of loans modified in troubled debt restructurings

The following table presents by class, the recorded investment of loans modified in TDRs held by the Company for the periods ended June 30, 2020 and 2019.


	For the Six Months Ended June 30, 2020
					Income		Owner
	Number				Producing -		Occupied -		Construction -
	of				Commercial		Commercial		Commercial
(dollars in thousands)	Contracts		Commercial		Real Estate		Real Estate		Real Estate		Total
Troubled debt restructurings
Restructured accruing		10	$	1,420	$	10,016	$	836	$	—	$	12,272
Restructured nonaccruing		3		138		5,542		2,370		—		8,050
Total		13	$	1,558	$	15,558	$	3,206	$	—	$	20,322

Specific allowance			$	257	$	1,295	$	—	$	—	$	1,552

Restructured and subsequently defaulted			$	138	$	5,542	$	2,370	$	—	$	8,050


	For the Six Months Ended June 30, 2019
					Income		Owner
	Number				Producing -		Occupied -		Construction -
	of				Commercial		Commercial		Commercial
(dollars in thousands)	Contracts		Commercial		Real Estate		Real Estate		Real Estate		Total
Troubled debt restructurings
Restructured accruing		7	$	909	$	4,390	$	3,309	$	—	$	8,608
Restructured nonaccruing		4		2,831		—		—		—		2,831
Total		11	$	3,740	$	4,390	$	3,309	$	—	$	11,439

Specific allowance			$	—	$	1,000	$	—	$	—	$	1,000

Restructured and subsequently defaulted			$	—	$	2,300	$	—	$	—	$	2,300