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Loans Receivable, Net (Tables)
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Summary of Loans Receivable
Loans receivable, net, at December 31, 2019 and 2018 consisted of the following (in thousands):
 
 
December 31,
 
 
2019
 
2018
Commercial:
 
 
 
 
Commercial and industrial
 
$
396,091

 
$
304,994

Commercial real estate - owner occupied
 
791,941

 
740,375

Commercial real estate - investor
 
2,284,698

 
2,015,210

Total commercial
 
3,472,730

 
3,060,579

Consumer:
 
 
 
 
Residential real estate
 
2,320,821

 
2,044,286

Home equity loans and lines
 
318,414

 
353,386

Other consumer
 
89,422

 
121,561

Total consumer
 
2,728,657

 
2,519,233

 
 
6,201,387

 
5,579,812

Purchased credit impaired (“PCI”) loans
 
13,265

 
8,901

Total loans
 
6,214,652

 
5,588,713

Deferred origination costs, net
 
9,880

 
7,086

Allowance for loan losses
 
(16,852
)
 
(16,577
)
Loans receivable, net
 
$
6,207,680

 
$
5,579,222
Analysis of Allowance for Loan Losses
An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows (in thousands):
 
 
At or For the Year Ended December 31,
 
 
2019
 
2018
 
2017
Balance at beginning of year
 
$
16,577

 
$
15,721

 
$
15,183

Provision charged to operations
 
1,636

 
3,490

 
4,445

Charge-offs
 
(2,804
)
 
(3,841
)
 
(5,384
)
Recoveries
 
1,443

 
1,207

 
1,477

Balance at end of year
 
$
16,852

 
$
16,577

 
$
15,721
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, 2019 and 2018, 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, 2019 and 2018 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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of year
 
$
1,609

 
$
2,277

 
$
8,770

 
$
2,413

 
$
486

 
$
1,022

 
$
16,577

Provision (benefit) charged to operations
 
(311
)
 
947

 
638

 
792

 
567

 
(997
)
 
1,636

Charge-offs
 
—

 
(663
)
 
(236
)
 
(1,299
)
 
(606
)
 
—

 
(2,804
)
Recoveries
 
160

 
332

 
711

 
96

 
144

 
—

 
1,443

Balance at end of year
 
$
1,458

 
$
2,893

 
$
9,883

 
$
2,002

 
$
591

 
$
25

 
$
16,852

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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributed to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
—

 
$
474

 
$
—

 
$
—

 
$
2

 
$
—

 
$
476

Collectively evaluated for impairment
 
1,458

 
2,419

 
9,883

 
2,002

 
589

 
25

 
16,376

Total ending allowance balance
 
$
1,458

 
$
2,893

 
$
9,883

 
$
2,002

 
$
591

 
$
25

 
$
16,852

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
243

 
$
6,163

 
$
5,584

 
$
11,009

 
$
3,511

 
$
—

 
$
26,510

Loans collectively evaluated for impairment
 
395,848

 
785,778

 
2,279,114

 
2,309,812

 
404,325

 
—

 
6,174,877

Total ending loan balance
 
$
396,091

 
$
791,941

 
$
2,284,698

 
$
2,320,821

 
$
407,836

 
$
—

 
$
6,201,387

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
Summary of Impaired Loans Excluding PCI Loans
A summary of impaired loans at December 31, 2019 and 2018 is as follows, excluding PCI loans (in thousands):
 
 
December 31,
 
 
2019
 
2018
Impaired loans with no allocated allowance for loan losses
 
$
24,313

 
$
29,797

Impaired loans with allocated allowance for loan losses
 
2,197

 
—

 
 
$
26,510

 
$
29,797

Amount of the allowance for loan losses allocated
 
$
476

 
$
—
Impaired Financing Receivables
The summary of loans individually evaluated for impairment by loan portfolio segment as of December 31, 2019 and 2018 and for the years ended December 31, 2019 and 2018 is as follows, excluding PCI loans (in thousands):
 
 
Unpaid
Principal
Balance
 
Recorded
Investment
 
Allowance for
Loan Losses
Allocated
At December 31, 2019
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
Commercial and industrial
 
$
265

 
$
243

 
$
—

Commercial real estate – owner occupied
 
4,062

 
3,968

 
—

Commercial real estate – investor
 
6,665

 
5,584

 
—

Residential real estate
 
11,009

 
11,009

 
—

Consumer
 
3,734

 
3,509

 
—

 
 
$
25,735

 
$
24,313

 
$
—

With an allowance recorded:
 
 
 
 
 
 
Commercial and industrial
 
$
—

 
$
—

 
$
—

Commercial real estate – owner occupied
 
2,376

 
2,195

 
474

Commercial real estate – investor
 
—

 
—

 
—

Residential real estate
 
—

 
—

 
—

Consumer
 
2

 
2

 
2

 
 
$
2,378

 
$
2,197

 
$
476

At December 31, 2018
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
Commercial and industrial
 
$
1,750

 
$
1,626

 
$
—

Commercial real estate – owner occupied
 
5,413

 
5,395

 
—

Commercial real estate – investor
 
12,633

 
9,738

 
—

Residential real estate
 
10,441

 
10,064

 
—

Consumer
 
3,301

 
2,974

 
—

 
 
$
33,538

 
$
29,797

 
$
—

With an allowance recorded:
 
 
 
 
 
 
Commercial and industrial
 
$
—

 
$
—

 
$
—

Commercial real estate – owner occupied
 
—

 
—

 
—

Commercial real estate – investor
 
—

 
—

 
—

Residential real estate
 
—

 
—

 
—

Consumer
 
—

 
—

 
—

 
 
$
—

 
$
—

 
$
—

(continued)
 
 
For the Year Ended December 31,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
Commercial and industrial
 
$
523

 
$
5

 
$
1,075

 
$
107

Commercial real estate – owner occupied
 
4,171

 
179

 
8,264

 
297

Commercial real estate – investor
 
9,012

 
222

 
13,934

 
382

Residential real estate
 
10,275

 
548

 
10,787

 
475

Consumer
 
3,275

 
178

 
2,764

 
155

 
 
$
27,256

 
$
1,132

 
$
36,824

 
$
1,416

With an allowance recorded:
 
 
 
 
 
 
Commercial and industrial
 
$
—

 
$
—

 
$
589

 
$
—

Commercial real estate – owner occupied
 
2,173

 
138

 
—

 
—

Commercial real estate – investor
 
—

 
—

 
670

 
—

Residential real estate
 
—

 
—

 
—

 
—

Consumer
 
—

 
—

 
—

 
—

 
 
$
2,173

 
$
138

 
$
1,259

 
$
—
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, 2019 and 2018, excluding PCI loans (in thousands):
 
 
December 31,
 
 
2019
 
2018
Commercial and industrial
 
$
207

 
$
1,587

Commercial real estate – owner occupied
 
4,811

 
501

Commercial real estate – investor
 
2,917

 
5,024

Residential real estate
 
7,181

 
7,389

Consumer
 
2,733

 
2,914

 
 
$
17,849

 
$
17,415
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, 2019 and 2018 by loan portfolio segment, excluding PCI loans (in thousands):
 
 
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days or Greater
Past Due
 
Total
Past Due
 
Loans Not
Past Due
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
100

 
$
—

 
$
207

 
$
307

 
$
395,784

 
$
396,091

Commercial real estate – owner occupied
 
1,541

 
1,203

 
1,040

 
3,784

 
788,157

 
791,941

Commercial real estate – investor
 
381

 
938

 
2,792

 
4,111

 
2,280,587

 
2,284,698

Residential real estate
 
8,161

 
3,487

 
2,859

 
14,507

 
2,306,314

 
2,320,821

Consumer
 
1,048

 
491

 
2,388

 
3,927

 
403,909

 
407,836

 
 
$
11,231

 
$
6,119

 
$
9,286

 
$
26,636

 
$
6,174,751

 
$
6,201,387

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
Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans
As of December 31, 2019 and 2018, and based on the most recent analysis performed, the risk category of loans by loan portfolio segment, excluding PCI loans, is as follows (in thousands):
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
378,154

 
$
2,657

 
$
15,280

 
$
—

 
$
396,091

Commercial real estate – owner occupied
 
756,592

 
3,985

 
31,364

 
—

 
791,941

Commercial real estate – investor
 
2,240,104

 
23,559

 
21,035

 
—

 
2,284,698

 
 
$
3,374,850

 
$
30,201

 
$
67,679

 
$
—

 
$
3,472,730

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
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, 2019 and 2018, excluding PCI loans (in thousands): 
 
 
Residential
 
Consumer
December 31, 2019
 
 
 
 
Performing
 
$
2,313,640

 
$
405,103

Non-performing
 
7,181

 
2,733

 
 
$
2,320,821

 
$
407,836

December 31, 2018
 
 
 
 
Performing
 
$
2,036,897

 
$
472,033

Non-performing
 
7,389

 
2,914

 
 
$
2,044,286

 
$
474,947
Troubled Debt Restructurings
The following table presents information about troubled debt restructurings which occurred during the years ended December 31, 2019 and 2018, and troubled debt restructurings modified within the previous year and which defaulted during the years ended December 31, 2019 and 2018 (dollars in thousands):
 
 
Number
of Loans
 
Pre-modification
Recorded Investment
 
Post-modification
Recorded Investment
For the year ended December 31, 2019
 
 
 
 
 
 
Troubled Debt Restructurings:
 
 
 
 
 
 
Commercial real estate – owner occupied
 
1
 
$
154

 
$
198

Commercial real estate – investor
 
1
 
272

 
393

Residential real estate
 
6
 
1,036

 
1,091

Consumer
 
7
 
663

 
683

 
 
 
 
Number of Loans
 
Recorded Investment
Troubled Debt Restructurings
 
 
 
 
 
 
Which Subsequently Defaulted:
 
 
 
 
 
 
Consumer
 
 
 
1
 
$
115

 
 
 
 
 
 
 
 
 
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
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 Capital Bank at January 31, 2019 (in thousands):
 
Capital Bank
 
January 31, 2019
Contractually required principal and interest
$
6,877

Contractual cash flows not expected to be collected (non-accretable discount)
(769
)
Expected cash flows to be collected at acquisition
6,108

Interest component of expected cash flows (accretable yield)
(691
)
Fair value of acquired loans
$
5,417

The following table summarizes the changes in accretable yield for PCI loans during the years ended December 31, 2019 and 2018 (in thousands):
 
 
For the Year Ended December 31,
 
 
2019
 
2018
Beginning balance
 
$
3,630

 
$
161

Acquisition
 
691

 
2,646

Accretion
 
(2,613
)
 
(2,257
)
Reclassification from non-accretable difference
 
1,317

 
3,080

Ending balance
 
$
3,025

 
$
3,630