| Loans |
NOTE 5: LOANS
The following is a summary of our loans as of December 31:
|
(dollars in thousands) |
|
2017 |
|
|
2016 |
|
|
Recorded investment balance: |
|
|
|
|
|
|
|
|
|
Loans secured by real estate: |
|
|
|
|
|
|
|
|
|
Residential properties: |
|
|
|
|
|
|
|
|
|
Multifamily |
|
$ |
1,935,429 |
|
|
$ |
1,178,003 |
|
|
Single family |
|
|
645,816 |
|
|
|
602,886 |
|
|
Total real estate loans secured by residential properties |
|
|
2,581,245 |
|
|
|
1,780,889 |
|
|
Commercial properties |
|
|
696,748 |
|
|
|
476,959 |
|
|
Land |
|
|
37,160 |
|
|
|
24,100 |
|
|
Total real estate loans |
|
|
3,315,153 |
|
|
|
2,281,948 |
|
|
Commercial and industrial loans |
|
|
310,779 |
|
|
|
237,941 |
|
|
Consumer loans |
|
|
29,330 |
|
|
|
32,127 |
|
|
Total loans |
|
|
3,655,262 |
|
|
|
2,552,016 |
|
|
Deferred expenses, net |
|
|
8,465 |
|
|
|
3,693 |
|
|
Total |
|
$ |
3,663,727 |
|
|
$ |
2,555,709 |
|
As of December 31, 2017 and 2016, the principal balances shown above are net of unaccreted discount related to loans acquired in acquisitions of $4.0 million and $1.6 million, respectively.
In 2012, 2015, and 2017 the Company purchased loans, for which there was, at acquisition, evidence of deterioration in credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of these purchased credit impaired loans is as follows at December 31:
|
(dollars in thousands) |
|
2017 |
|
|
2016 |
|
|
Outstanding principal balance: |
|
|
|
|
|
|
|
|
|
Loans secured by real estate: |
|
|
|
|
|
|
|
|
|
Commercial properties |
|
$ |
1,525 |
|
|
$ |
295 |
|
|
Land |
|
|
1,096 |
|
|
|
— |
|
|
Total real estate loans |
|
|
2,621 |
|
|
|
295 |
|
|
Commercial and industrial loans |
|
|
2,774 |
|
|
|
4,258 |
|
|
Consumer loans |
|
|
— |
|
|
|
17 |
|
|
Total loans |
|
|
5,395 |
|
|
|
4,570 |
|
|
Unaccreted discount on purchased credit impaired loans |
|
|
(1,638 |
) |
|
|
(1,197 |
) |
|
Total |
|
$ |
3,757 |
|
|
$ |
3,373 |
|
Accretable yield, or income expected to be collected on purchased credit impaired loans, is as follows at December 31:
|
(dollars in thousands) |
|
2017 |
|
|
2016 |
|
|
Beginning balance |
|
$ |
289 |
|
|
$ |
582 |
|
|
Accretion of income |
|
|
(108 |
) |
|
|
(185 |
) |
|
Reclassifications from nonaccretable difference |
|
|
66 |
|
|
|
— |
|
|
Acquisitions |
|
|
603 |
|
|
|
— |
|
|
Disposals |
|
|
— |
|
|
|
(108 |
) |
|
Ending balance |
|
$ |
850 |
|
|
$ |
289 |
|
The following table summarizes our delinquent and nonaccrual loans as of December 31:
|
|
|
Past Due and Still Accruing |
|
|
|
Total Past
Due and
Nonaccrual |
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
30–59 Days |
|
|
60-89 Days |
|
|
90 Days
or More |
|
|
Nonaccrual |
|
|
|
Current |
|
|
Total |
|
|
2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential properties |
|
$ |
78 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
78 |
|
|
$ |
2,581,167 |
|
|
$ |
2,581,245 |
|
|
Commercial properties |
|
|
— |
|
|
|
— |
|
|
|
1,320 |
|
|
|
1,742 |
|
|
|
3,062 |
|
|
|
693,686 |
|
|
|
696,748 |
|
|
Land |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
37,160 |
|
|
|
37,160 |
|
|
Commercial and industrial loans |
|
|
— |
|
|
|
— |
|
|
|
789 |
|
|
|
9,617 |
|
|
|
10,406 |
|
|
|
300,373 |
|
|
|
310,779 |
|
|
Consumer loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,330 |
|
|
|
29,330 |
|
|
Total |
|
$ |
78 |
|
|
$ |
— |
|
|
$ |
2,109 |
|
|
$ |
11,359 |
|
|
$ |
13,546 |
|
|
$ |
3,641,716 |
|
|
$ |
3,655,262 |
|
|
Percentage of total loans |
|
|
0.00 |
% |
|
|
— |
% |
|
|
0.06 |
% |
|
|
0.31 |
% |
|
|
0.37 |
% |
|
|
|
|
|
|
|
|
|
2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential properties |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,759 |
|
|
$ |
3,759 |
|
|
$ |
1,777,130 |
|
|
$ |
1,780,889 |
|
|
Commercial properties |
|
|
— |
|
|
|
— |
|
|
|
2,128 |
|
|
|
1,120 |
|
|
|
3,248 |
|
|
|
473,711 |
|
|
|
476,959 |
|
|
Land |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,100 |
|
|
|
24,100 |
|
|
Commercial and industrial loans |
|
|
— |
|
|
|
2 |
|
|
|
3,800 |
|
|
|
3,359 |
|
|
|
7,161 |
|
|
|
230,780 |
|
|
|
237,941 |
|
|
Consumer loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,127 |
|
|
|
32,127 |
|
|
Total |
|
$ |
— |
|
|
$ |
2 |
|
|
$ |
5,928 |
|
|
$ |
8,238 |
|
|
$ |
14,168 |
|
|
$ |
2,537,848 |
|
|
$ |
2,552,016 |
|
|
Percentage of total loans |
|
|
— |
% |
|
|
0.00 |
% |
|
|
0.23 |
% |
|
|
0.32 |
% |
|
|
0.56 |
% |
|
|
|
|
|
|
|
|
As of December 31, 2017, the Company had seven loans with a balance of $4.5 million classified as troubled debt restructurings (“TDR”). All seven loans were classified as a TDR as a result of a reduction in required principal payments and an extension of the maturity date of the loans. As of December 31, 2016, the Company had five loans with a balance of $3.4 million classified as troubled debt restructurings (“TDR”). These loans have been paying in accordance with the terms of their restructure.
The following table presents the composition of TDRs by accrual and nonaccrual status as of:
|
|
|
December 31, 2017 |
|
|
|
December 31, 2016 |
|
|
(dollars in thousands) |
|
Accrual |
|
|
|
Nonaccrual |
|
|
Total |
|
|
|
Accrual |
|
|
Nonaccrual |
|
|
Total |
|
|
Commercial and industrial |
|
$ |
195 |
|
|
$ |
4,296 |
|
|
$ |
4,491 |
|
|
$ |
317 |
|
|
$ |
3,109 |
|
|
$ |
3,426 |
|
These loans were classified as a TDR as a result of a reduction in required principal payments and/or an extension of the maturity date of the loans.
The following tables provide information on loans that were modified as TDRs during the years ended December 31, 2017 and 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding Recorded Investment |
|
|
|
|
|
|
|
Number of loans |
|
Pre-Modification |
|
Post-Modification |
|
Financial Impact |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
|
1 |
|
$ |
1,598 |
|
|
$ |
1,598 |
|
|
$ |
— |
|
|
Commercial loans |
|
1 |
|
|
218 |
|
|
|
218 |
|
|
|
— |
|
|
Total |
|
2 |
|
$ |
1,816 |
|
|
$ |
1,816 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans |
|
— |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Commercial loans |
|
5 |
|
|
3,109 |
|
|
|
3,109 |
|
|
|
— |
|
|
Total |
|
5 |
|
$ |
3,109 |
|
|
$ |
3,109 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|