XML 37 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Held for Investment (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Schedule of components of loans held for investment
The following table sets forth the composition of our loan portfolio in dollar amounts at the dates indicated:
 
June 30, 2018
 
December 31, 2017
 
(dollars in thousands)
Business loans
 
 
 
Commercial and industrial
$
1,102,586

 
$
1,086,659

Franchise
708,957

 
660,414

Commercial owner occupied (1)
1,310,722

 
1,289,213

SBA
176,696

 
185,514

Agribusiness
136,962

 
116,066

    Total business loans
3,435,923

 
3,337,866

Real estate loans
 

 
 
Commercial non-owner occupied
1,219,747

 
1,243,115

Multi-family
805,494

 
794,384

One-to-four family (2)
249,495

 
270,894

Construction
321,423

 
282,811

Farmland
136,548

 
145,393

Land
30,246

 
31,233

    Total real estate loans
2,762,953

 
2,767,830

Consumer loans
 
 
 
Consumer loans
81,973

 
92,931

Gross loans held for investment (3)
6,280,849

 
6,198,627

Deferred loan origination costs/(fees) and premiums/(discounts), net
(3,263
)
 
(2,403
)
Loans held for investment
6,277,586

 
6,196,224

Allowance for loan losses
(31,747
)
 
(28,936
)
Loans held for investment, net
$
6,245,839

 
$
6,167,288

 
 
 
 
Loans held for sale, at lower of cost or fair value
$
13,879

 
$
23,426

______________________________
(1) Secured by real estate.
(2) Includes second trust deeds.
(3) Total gross loans held for investment for June 30, 2018 and December 31, 2017 are net of the unaccreted fair value net purchase discounts of $22.2 million and $29.1 million, respectively.
Summary of loan portfolio by the Company's internal risk grading system
he following tables stratify the loan portfolio by the Company’s internal risk grading as of the periods indicated:

 
 
Credit Risk Grades
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total Gross
Loans
June 30, 2018
 
(dollars in thousands)
Business loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,080,580

 
$
9,952

 
$
12,054

 
$
—

 
$
1,102,586

Franchise
 
708,748

 
—

 
209

 
—

 
708,957

Commercial owner occupied
 
1,296,927

 
641

 
13,154

 
—

 
1,310,722

SBA
 
181,347

 
1,096

 
3,189

 
—

 
185,632

Agribusiness
 
128,709

 
—

 
8,253

 
—

 
136,962

Real estate loans
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
1,222,448

 
—

 
2,242

 
—

 
1,224,690

Multi-family
 
803,977

 
703

 
814

 
—

 
805,494

One-to-four family
 
247,452

 
136

 
1,907

 
—

 
249,495

Construction
 
321,423

 
—

 
—

 
—

 
321,423

Farmland
 
136,422

 
—

 
126

 
—

 
136,548

Land
 
30,036

 
—

 
210

 
—

 
30,246

Consumer loans
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
81,837

 
—

 
136

 
—

 
81,973

     Totals
 
$
6,239,906

 
$
12,528

 
$
42,294

 
$
—

 
$
6,294,728


 
 
Credit Risk Grades
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total Gross
Loans
December 31, 2017
 
(dollars in thousands)
Business loans
 
 

 
 

 
 

 
 
 
 

Commercial and industrial
 
$
1,063,452

 
$
8,163

 
$
15,044

 
$
—

 
$
1,086,659

Franchise
 
660,414

 
—

 
—

 
—

 
660,414

Commercial owner occupied
 
1,273,381

 
654

 
21,180

 
—

 
1,295,215

SBA
 
199,468

 
1

 
3,469

 
—

 
202,938

Agribusiness
 
108,143

 
4,079

 
3,844

 
—

 
116,066

Real estate loans
 
 

 
 

 
 

 
 
 
 
Commercial non-owner occupied
 
1,242,045

 
—

 
1,070

 
—

 
1,243,115

Multi-family
 
794,156

 
—

 
228

 
—

 
794,384

One-to-four family
 
268,776

 
154

 
1,964

 
—

 
270,894

Construction
 
282,294

 
517

 
—

 
—

 
282,811

Farmland
 
144,234

 
44

 
1,115

 
—

 
145,393

Land
 
30,979

 
—

 
254

 
—

 
31,233

Consumer loans
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
92,794

 
—

 
137

 
—

 
92,931

Totals
 
$
6,160,136

 
$
13,612

 
$
48,305

 
$
—

 
$
6,222,053
Schedule of delinquencies in the Company's loan portfolio
The following tables set forth delinquencies in the Company’s loan portfolio at the dates indicated:

 
 
 
 
Days Past Due
 
 
 
 
 
 
Current
 
30-59
 
60-89
 
90+
 
Total Gross Loans
 
Non-accruing
June 30, 2018
 
(dollars in thousands)
Business loans
 
 
 
 

 
 

 
 

 
 
 
 
Commercial and industrial
 
$
1,100,623

 
$
1,863

 
$
—

 
$
100

 
$
1,102,586

 
$
1,062

Franchise
 
708,748

 
—

 
—

 
209

 
708,957

 
209

Commercial owner occupied
 
1,310,722

 
—

 
—

 
—

 
1,310,722

 
—

SBA
 
183,835

 
488

 
—

 
1,309

 
185,632

 
1,423

  Agribusiness
 
136,962

 
—

 
—

 
—

 
136,962

 
—

Real estate loans
 
 

 
 

 
 

 
 

 
 

 
 

Commercial non-owner occupied
 
1,222,694

 
706

 
1,290

 
—

 
1,224,690

 
1,290

Multi-family
 
804,905

 
—

 
—

 
589

 
805,494

 
589

One-to-four family
 
248,608

 
526

 
—

 
361

 
249,495

 
1,445

Construction
 
321,423

 
—

 
—

 
—

 
321,423

 
—

Farmland
 
136,548

 
—

 
—

 
—

 
136,548

 
—

Land
 
30,240

 
—

 
—

 
6

 
30,246

 
6

Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
81,973

 
—

 
—

 
—

 
81,973

 
15

Totals
 
$
6,287,281

 
$
3,583

 
$
1,290

 
$
2,574

 
$
6,294,728

 
$
6,039


 
 
 

 
Days Past Due
 
 

 
 
 
 
Current
 
30-59
 
60-89
 
90+
 
Total Gross Loans
 
Non-accruing
December 31, 2017
 
(dollars in thousands)
Business loans
 
 

 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
1,085,770

 
$
84

 
$
570

 
$
235

 
$
1,086,659

 
$
1,160

Franchise
 
660,414

 
—

 
—

 
—

 
660,414

 
—

Commercial owner occupied
 
1,291,255

 
3,474

 
486

 
—

 
1,295,215

 
97

SBA
 
200,821

 
177

 
—

 
1,940

 
202,938

 
1,201

Agribusiness
 
116,066

 
—

 
—

 
—

 
116,066

 
—

Real estate loans
 
 

 
 

 
 

 
 

 
 

 
 

Commercial non-owner occupied
 
1,243,115

 
—

 
—

 
—

 
1,243,115

 
—

Multi-family
 
792,603

 
1,781

 
—

 
—

 
794,384

 
—

One-to-four family
 
269,725

 
354

 
—

 
815

 
270,894

 
817

Construction
 
282,811

 
—

 
—

 
—

 
282,811

 
—

Farmland
 
145,393

 
—

 
—

 
—

 
145,393

 
—

Land
 
31,141

 
83

 
—

 
9

 
31,233

 
9

Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
92,880

 
11

 
—

 
40

 
92,931

 
—

Totals
 
$
6,211,994

 
$
5,964

 
$
1,056

 
$
3,039

 
$
6,222,053

 
$
3,284
Summary of Company's investment in impaired loans
The following tables provide a summary of the Company’s investment in impaired loans as of the period indicated:

 
 
Impaired Loans
 
 
Unpaid Principal Balance
 
Recorded Investment
 
With Specific Allowance
 
Without Specific Allowance
 
Specific Allowance for Impaired Loans
 
 
(dollars in thousands)
June 30, 2018
 
 
 
 
 
 
 
 
 
 
Business loans
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,523

 
$
1,062

 
$
—

 
$
1,062

 
$
—

Franchise
 
205

 
209

 
—

 
209

 
—

SBA
 
4,926

 
1,423

 
—

 
1,423

 
—

Real estate loans
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
1,287

 
1,290

 
—

 
1,290

 
—

Multi-family
 
589

 
589

 
—

 
589

 
—

One-to-four family
 
1,502

 
1,445

 
—

 
1,445

 
—

Land
 
34

 
6

 
—

 
6

 
—

Consumer loans
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
16

 
15

 
—

 
15

 
—

Totals
 
$
10,082

 
$
6,039

 
$
—

 
$
6,039

 
$
—

  

 
 
Impaired Loans
 
 
Unpaid Principal Balance
 
Recorded Investment
 
With Specific Allowance
 
Without Specific Allowance
 
Specific Allowance for Impaired Loans
 
 
(dollars in thousands)
December 31, 2017
 
 

 
 

 
 

 
 

 
 

Business loans
 
 

 
 

 
 

 
 

 
 

Commercial and industrial
 
$
1,585

 
$
1,160

 
$
—

 
$
1,160

 
$
—

Commercial owner occupied
 
98

 
97

 
97

 
—

 
55

SBA
 
4,329

 
1,201

 
—

 
1,201

 
—

Real estate loans
 
 

 
 

 
 

 
 

 
 

One-to-four family
 
849

 
817

 
—

 
817

 
—

Land
 
35

 
9

 
—

 
9

 
—

Totals
 
$
6,896

 
$
3,284

 
$
97

 
$
3,187

 
$
55

  

 
 
Impaired Loans
 
 
Three Months Ended
 
 
June 30, 2018
 
March 31, 2018
 
June 30, 2017
 
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
 
(dollars in thousands)
Business loans
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,272

 
$
—

 
$
1,181

 
$
—

 
$
7

 
$
—

Franchise
 
70

 
—

 
—

 
—

 
—

 
—

Commercial owner occupied
 
2,317

 
—

 
3,475

 
—

 
125

 
2

SBA
 
1,360

 
—

 
1,241

 
—

 
222

 
4

Real estate loans
 
 
 
 
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
430

 
—

 
—

 
—

 
—

 
—

Multi-family
 
589

 
—

 
821

 
—

 
—

 
—

One-to-four family
 
1,343

 
—

 
1,024

 
—

 
105

 
3

Construction
 
—

 
—

 
—

 
—

 
—

 
—

Land
 
6

 
—

 
8

 
—

 
12

 
1

Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
Consumer loans
 
15

 
$
—

 
94

 
—

 
—

 
—

Totals
 
$
7,402

 
$
—

 
$
7,844

 
$
—

 
$
471

 
$
10

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Cash basis and accrual basis is materially the same.


 
 
Impaired Loans
 
 
Six Months Ended
 
 
June 30,
 
 
2018
 
2017
 
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
Average Recorded Investment
 
Interest Income Recognized (1)
 
 
(dollars in thousands)
Business loans:
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
1,226

 
$
—

 
$
200

 
$
5

Franchise
 
35

 
—

 
—

 
—

Commercial owner occupied
 
2,896

 
—

 
192

 
5

SBA
 
1,300

 
—

 
307

 
9

Real estate loans:
 
 
 
 
 
 
 
 
Commercial non-owner occupied
 
215

 
—

 
—

 
—

Multi-family
 
705

 
—

 
—

 
—

One-to-four family
 
1,184

 
—

 
116

 
6

Land
 
7

 
—

 
14

 
2

Consumer loans:
 
 
 
 
 
 
 
 
Consumer loans
 
55

 
—

 
—

 
—

Totals
 
$
7,623

 
$
—

 
$
829

 
$
27

 
 
 
 
 
 
 
 
 
(1) Cash basis and accrual basis is materially the same.
Summary of additional detail on components of impaired loans
The following table provides additional detail on the components of impaired loans at the period end indicated: 
 
June 30, 2018
 
December 31, 2017
 
(dollars in thousands)
Nonaccruing loans
$
6,039

 
$
3,284

Accruing loans
—

 
—

Total impaired loans
$
6,039

 
$
3,284
Summary of Company's investment in purchased credit impaired loans
The Company has purchased loans, for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is as follows:
 
June 30, 2018
 
December 31, 2017
 
(dollars in thousands)
Business loans
 
 
 
Commercial and industrial
$
3,026

 
$
3,310

Commercial owner occupied
769

 
1,262

SBA
11

 
1,802

Real estate loans
 

 
 

Commercial non-owner occupied
1,247

 
1,650

One-to-four family
—

 
255

   Construction
—

 
517

   Land
79

 
83

   Consumer loans
8

 
10

Total purchase credit impaired
$
5,140

 
$
8,889
Summary of accretable yield on purchased credit impaired
The following table summarizes the accretable yield on the purchased credit impaired loans for the three and six month periods indicated.
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
March 31,
 
June 30,
 
June 30,
 
 
2018
 
2018
 
2017
 
2018
 
2017
 
 
(dollars in thousands)
Balance at the beginning of period
 
$
1,709

 
$
3,019

 
$
3,601

 
$
3,019

 
$
3,747

Additions
 
—

 
—

 
2,036

 
—

 
2,036

Accretion
 
(270
)
 
(236
)
 
(712
)
 
(506
)
 
(1,341
)
Payoffs
 
32

 
(1,850
)
 
—

 
(1,818
)
 
—

Reclassification from (to) nonaccretable difference
 
2

 
776

 
(1,428
)
 
778

 
(945
)
Balance at the end of period
 
$
1,473

 
$
1,709

 
$
3,497

 
$
1,473

 
$
3,497