XML 45 R33.htm IDEA: XBRL DOCUMENT v3.19.1
Loans Receivable, Net (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Summary of Loans Receivable
A summary of loans receivable at December 31, 2018 and 2017 are as follows (in thousands):
 
 
December 31,
 
 
2018
 
2017
Commercial:
 
 
 
 
Commercial and industrial
 
$
304,994

 
$
187,645

Commercial real estate - owner occupied
 
740,375

 
569,497

Commercial real estate - investor
 
2,015,210

 
1,186,302

Total commercial
 
3,060,579

 
1,943,444

Consumer:
 
 
 
 
Residential mortgage
 
2,044,286

 
1,748,590

Home equity loans and lines
 
353,386

 
281,143

Other consumer
 
121,561

 
1,225

Total consumer
 
2,519,233

 
2,030,958

 
 
5,579,812

 
3,974,402

Purchased credit impaired loans
 
8,901

 
1,712

Total loans
 
5,588,713

 
3,976,114

Deferred origination costs, net
 
7,086

 
5,380

Allowance for loan losses
 
(16,577
)
 
(15,721
)
Loans receivable, net
 
$
5,579,222

 
$
3,965,773
Analysis of Allowance for Loan Losses
An analysis of the allowance for loan losses for the years ended December 31, 2018, 2017 and 2016 is as follows (in thousands):
 
 
At or For the Year Ended December 31,
 
 
2018
 
2017
 
2016
Balance at beginning of year
 
$
15,721

 
$
15,183

 
$
16,722

Provision charged to operations
 
3,490

 
4,445

 
2,623

Charge-offs
 
(3,841
)
 
(5,384
)
 
(4,490
)
Recoveries
 
1,207

 
1,477

 
328

Balance at end of year
 
$
16,577

 
$
15,721

 
$
15,183
Allowance for Loan Loses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans
The following table presents an analysis of the allowance for loan losses for the years ended December 31, 2018 and 2017, the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017 excluding PCI loans (in thousands):
 
 
Commercial
and
Industrial
 
Commercial Real Estate - Owner Occupied
 
Commercial Real Estate - Investor
 
Residential
Real Estate
 
Consumer
 
Unallocated
 
Total
For the year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
 
$
1,801

 
$
3,175

 
$
7,952

 
$
1,804

 
$
614

 
$
375

 
$
15,721

Provision (benefit) charged to operations
 
(66
)
 
(783
)
 
2,550

 
1,056

 
86

 
647

 
3,490

Charge-offs
 
(230
)
 
(314
)
 
(1,939
)
 
(1,021
)
 
(337
)
 
—

 
(3,841
)
Recoveries
 
104

 
199

 
207

 
574

 
123

 
—

 
1,207

Balance at end of year
 
$
1,609

 
$
2,277

 
$
8,770

 
$
2,413

 
$
486

 
$
1,022

 
$
16,577

For the year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
 
$
2,037

 
$
2,999

 
$
6,361

 
$
2,245

 
$
1,110

 
$
431

 
$
15,183

Provision (benefit) charged to operations
 
(379
)
 
203

 
2,444

 
2,742

 
(509
)
 
(56
)
 
4,445

Charge-offs
 
(380
)
 
(150
)
 
(899
)
 
(3,820
)
 
(135
)
 
—

 
(5,384
)
Recoveries
 
523

 
123

 
46

 
637

 
148

 
—

 
1,477

Balance at end of year
 
$
1,801

 
$
3,175

 
$
7,952

 
$
1,804

 
$
614

 
$
375

 
$
15,721

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributed to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively evaluated for impairment
 
1,609

 
2,277

 
8,770

 
2,413

 
486

 
1,022

 
16,577

Total ending allowance balance
 
$
1,609

 
$
2,277

 
$
8,770

 
$
2,413

 
$
486

 
$
1,022

 
$
16,577

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
1,626

 
$
5,395

 
$
9,738

 
$
10,064

 
$
2,974

 
$
—

 
$
29,797

Loans collectively evaluated for impairment
 
303,368

 
734,980

 
2,005,472

 
2,034,222

 
471,973

 
—

 
5,550,015

Total ending loan balance
 
$
304,994

 
$
740,375

 
$
2,015,210

 
$
2,044,286

 
$
474,947

 
$
—

 
$
5,579,812

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributed to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Collectively evaluated for impairment
 
1,801

 
3,175

 
7,952

 
1,804

 
614

 
375

 
15,721

Total ending allowance balance
 
$
1,801

 
$
3,175

 
$
7,952

 
$
1,804

 
$
614

 
$
375

 
$
15,721

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
864

 
$
15,132

 
$
17,923

 
$
10,605

 
$
2,464

 
$
—

 
$
46,988

Loans collectively evaluated for impairment
 
186,781

 
554,365

 
1,168,379

 
1,737,985

 
279,904

 
—

 
3,927,414

Total ending loan balance
 
$
187,645

 
$
569,497

 
$
1,186,302

 
$
1,748,590

 
$
282,368

 
$
—

 
$
3,974,402
Summary of Impaired Loans Excluding PCI Loans
A summary of impaired loans at December 31, 2018 and 2017 is as follows, excluding PCI loans (in thousands):
 
 
December 31,
 
 
2018
 
2017
Impaired loans with no allocated allowance for loan losses
 
$
29,797

 
$
46,988

Impaired loans with allocated allowance for loan losses
 
—

 
—

 
 
$
29,797

 
$
46,988

Amount of the allowance for loan losses allocated
 
$
—

 
$
—
Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans
At December 31, 2018, impaired loans include troubled debt restructured loans of $26.5 million, of which $22.9 million were performing in accordance with their restructured terms for a minimum of six months and were accruing interest. A
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans
The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of December 31, 2018 and 2017, excluding PCI loans (in thousands):
 
 
December 31,
 
 
2018
 
2017
Commercial and industrial
 
$
1,587

 
$
503

Commercial real estate – owner occupied
 
501

 
5,962

Commercial real estate – investor
 
5,024

 
8,281

Residential real estate
 
7,389

 
4,190

Consumer
 
2,914

 
1,929

 
 
$
17,415

 
$
20,865
Aging of Recorded Investment in Past Due Loans Excluding PCI Loans
The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 and 2017 by loan portfolio segment, excluding PCI loans (in thousands):
 
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
Greater
than
90 Days
Past Due
 
Total
Past Due
 
Loans Not
Past Due
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
—

 
$
—

 
$
—

 
$
—

 
$
304,994

 
$
304,994

Commercial real estate – owner occupied
 
5,104

 
236

 
197

 
5,537

 
734,838

 
740,375

Commercial real estate – investor
 
3,979

 
2,503

 
2,461

 
8,943

 
2,006,267

 
2,015,210

Residential real estate
 
10,199

 
4,979

 
4,451

 
19,629

 
2,024,657

 
2,044,286

Consumer
 
2,200

 
955

 
2,464

 
5,619

 
469,328

 
474,947

 
 
$
21,482

 
$
8,673

 
$
9,573

 
$
39,728

 
$
5,540,084

 
$
5,579,812

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,694

 
$
36

 
$
503

 
$
3,233

 
$
184,412

 
$
187,645

Commercial real estate – owner occupied
 
222

 
—

 
5,402

 
5,624

 
563,873

 
569,497

Commercial real estate – investor
 
135

 
1,426

 
4,507

 
6,068

 
1,180,234

 
1,186,302

Residential real estate
 
13,197

 
2,351

 
3,372

 
18,920

 
1,729,670

 
1,748,590

Consumer
 
1,067

 
310

 
1,687

 
3,064

 
279,304

 
282,368

 
 
$
17,315

 
$
4,123

 
$
15,471

 
$
36,909

 
$
3,937,493

 
$
3,974,402
Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans
As of December 31, 2018 and 2017, and based on the most recent analysis performed, the risk category of loans by loan portfolio segment is as follows, excluding PCI loans (in thousands):
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
291,265

 
$
2,777

 
$
10,952

 
$
—

 
$
304,994

Commercial real estate – owner occupied
 
706,825

 
3,000

 
30,550

 
—

 
740,375

Commercial real estate – investor
 
1,966,495

 
23,727

 
24,988

 
—

 
2,015,210

 
 
$
2,964,585

 
$
29,504

 
$
66,490

 
$
—

 
$
3,060,579

December 31, 2017
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
181,438

 
$
3,153

 
$
3,054

 
$
—

 
$
187,645

Commercial real estate – owner occupied
 
546,569

 
4,337

 
18,591

 
—

 
569,497

Commercial real estate – investor
 
1,146,630

 
14,644

 
25,028

 
—

 
1,186,302

 
 
$
1,874,637

 
$
22,134

 
$
46,673

 
$
—

 
$
1,943,444
Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans
The following table presents the recorded investment in residential and consumer loans based on payment activity as of December 31, 2018 and 2017, excluding PCI loans (in thousands): 
 
 
Residential Real Estate
 
 
Residential
 
Consumer
December 31, 2018
 
 
 
 
Performing
 
$
2,036,897

 
$
472,033

Non-performing
 
7,389

 
2,914

 
 
$
2,044,286

 
$
474,947

December 31, 2017
 
 
 
 
Performing
 
$
1,744,400

 
$
280,439

Non-performing
 
4,190

 
1,929

 
 
$
1,748,590

 
$
282,368
Troubled Debt Restructurings
The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2018 and 2017, and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2018 and 2017 (dollars in thousands):
 
 
Number
of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
For the year ended December 31, 2018
 
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
 
Commercial and industrial
 
2
 
$
496

 
$
502

Commercial real estate – owner occupied
 
1
 
49

 
50

Commercial real estate – investor
 
3
 
1,395

 
1,435

Residential real estate
 
5
 
558

 
598

 
 
 
 
Number of Loans
 
Recorded Investment
Troubled Debt Restructurings
 
 
 
 
 
 
Which Subsequently Defaulted:
 
 
 
 
 
 
Consumer
 
 
 
1
 
$
29

 
 
 
 
 
 
 
 
 
Number
of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
For the year ended December 31, 2017
 
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
 
Commercial and industrial
 
1
 
$
665

 
$
665

Commercial real estate – owner occupied
 
7
 
6,977

 
6,977

Commercial real estate – investor
 
7
 
10,904

 
11,026

Residential real estate
 
8
 
1,637

 
1,600

 
 
 
 
Number of Loans
 
Recorded Investment
Troubled Debt Restructurings
 
 
 
 
 
 
Which Subsequently Defaulted:
 
 
 
None
 
None
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period
The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Sun at January 31, 2018 (in thousands):
 
Sun
 
January 31, 2018
Contractually required principal and interest
$
22,556

Contractual cash flows not expected to be collected (non-accretable discount)
(6,115
)
Expected cash flows to be collected at acquisition
16,441

Interest component of expected cash flows (accretable yield)
(3,535
)
Fair value of acquired loans
$
12,906

The following table summarizes the changes in accretable yield for PCI loans during the years ended December 31, 2018 and 2017 (in thousands):
 
 
For the Year Ended December 31,
 
 
2018
 
2017
Beginning balance
 
$
161

 
$
749

Acquisition
 
2,646

 
—

Accretion
 
(2,257
)
 
(921
)
Reclassification from non-accretable difference
 
3,080

 
333

Ending balance
 
$
3,630

 
$
161