XML 51 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans Receivable (Tables)
 12 Months Ended
Dec. 31, 2018
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of loans receivable
Loans receivable at December 31, 2018 and December 31, 2017 consisted of the following portfolio segments and classes:
 
December 31, 2018
 
December 31, 2017
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
853,606

 
$
645,396

Owner-occupied commercial real estate
779,814

 
622,150

Non-owner occupied commercial real estate
1,304,463

 
986,594

Total commercial business
2,937,883


2,254,140

One-to-four family residential
101,763

 
86,997

Real estate construction and land development:
 
 
 
One-to-four family residential
102,730

 
51,985

Five or more family residential and commercial properties
112,730

 
97,499

Total real estate construction and land development
215,460


149,484

Consumer
395,545

 
355,091

Gross loans receivable
3,650,651


2,845,712

Net deferred loan costs
3,509

 
3,359

 Loans receivable, net
3,654,160


2,849,071

Allowance for loan losses
(35,042
)
 
(32,086
)
 Total loans receivable, net
$
3,619,118


$
2,816,985
Loans receivable by credit quality indicator
The following tables present the balance of the loans receivable by credit quality indicator as of December 31, 2018 and December 31, 2017.
 
December 31, 2018
 
Pass
 
OAEM
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
788,395

 
$
16,168

 
$
49,043

 
$
—

 
$
853,606

Owner-occupied commercial real estate
741,227

 
27,724

 
10,863

 
—

 
779,814

Non-owner occupied commercial real estate
1,283,077

 
9,438

 
11,948

 
—

 
1,304,463

Total commercial business
2,812,699

 
53,330

 
71,854

 
—

 
2,937,883

One-to-four family residential
100,401

 
—

 
1,362

 
—

 
101,763

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
101,519

 
258

 
953

 
—

 
102,730

Five or more family residential and commercial properties
112,678

 
52

 
—

 
—

 
112,730

Total real estate construction and land development
214,197

 
310

 
953

 
—

 
215,460

Consumer
390,808

 
—

 
4,213

 
524

 
395,545

Gross loans receivable
$
3,518,105

 
$
53,640

 
$
78,382

 
$
524

 
$
3,650,651


 
December 31, 2017
 
Pass
 
OAEM
 
Substandard
 
Doubtful/Loss
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
597,697

 
$
19,536

 
$
28,163

 
$
—

 
$
645,396

Owner-occupied commercial real estate
595,455

 
12,668

 
14,027

 
—

 
622,150

Non-owner occupied commercial real estate
955,450

 
10,494

 
20,650

 
—

 
986,594

Total commercial business
2,148,602

 
42,698

 
62,840

 
—

 
2,254,140

One-to-four family residential
85,762

 
—

 
1,235

 
—

 
86,997

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
49,925

 
537

 
1,523

 
—

 
51,985

Five or more family residential and commercial properties
96,404

 
707

 
388

 
—

 
97,499

Total real estate construction and land development
146,329

 
1,244

 
1,911

 
—

 
149,484

Consumer
349,590

 
—

 
4,976

 
525

 
355,091

Gross loans receivable
$
2,730,283

 
$
43,942

 
$
70,962

 
$
525

 
$
2,845,712
Schedule of nonaccrual loans
Nonaccrual loans, segregated by segments and classes of loans, were as follows as of December 31, 2018 and December 31, 2017:
 
December 31, 2018
 
December 31, 2017
 
(In thousands)
Commercial business:
 
 
 
Commercial and industrial
$
6,639

 
$
3,110

Owner-occupied commercial real estate
4,212

 
4,090

Non-owner occupied commercial real estate
1,713

 
1,898

Total commercial business
12,564


9,098

One-to-four family residential
71

 
81

Real estate construction and land development:
 
 
 
One-to-four family residential
899

 
1,247

Total real estate construction and land development
899


1,247

Consumer
169

 
277

Nonaccrual loans
$
13,703


$
10,703
Past due financing receivables
The balances of past due loans, segregated by segments and classes of loans, as of December 31, 2018 and December 31, 2017 were as follows:
 
December 31, 2018
 
30-89 Days
 
90 Days or
Greater
 
Total Past 
Due
 
Current
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
2,988

 
$
2,281

 
$
5,269

 
$
848,337

 
$
853,606

Owner-occupied commercial real estate
563

 
600

 
1,163

 
778,651

 
779,814

Non-owner occupied commercial real estate
5,347

 
1,461

 
6,808

 
1,297,655

 
1,304,463

Total commercial business
8,898

 
4,342

 
13,240

 
2,924,643

 
2,937,883

One-to-four family residential
227

 
—

 
227

 
101,536

 
101,763

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
665

 
234

 
899

 
101,831

 
102,730

Five or more family residential and commercial properties
—

 
—

 
—

 
112,730

 
112,730

Total real estate construction and land development
665

 
234

 
899

 
214,561

 
215,460

Consumer
2,568

 
—

 
2,568

 
392,977

 
395,545

Gross loans receivable
$
12,358

 
$
4,576

 
$
16,934

 
$
3,633,717

 
$
3,650,651



 
December 31, 2017
 
30-89 Days
 
90 Days or
Greater
 
Total Past 
Due
 
Current
 
Total
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
2,993

 
$
1,172

 
$
4,165

 
$
641,231

 
$
645,396

Owner-occupied commercial real estate
1,277

 
1,225

 
2,502

 
619,648

 
622,150

Non-owner occupied commercial real estate
870

 
3,314

 
4,184

 
982,410

 
986,594

Total commercial business
5,140

 
5,711

 
10,851

 
2,243,289

 
2,254,140

One-to-four family residential
513

 
—

 
513

 
86,484

 
86,997

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
84

 
1,331

 
1,415

 
50,570

 
51,985

Five or more family residential and commercial properties
40

 
—

 
40

 
97,459

 
97,499

Total real estate construction and land development
124

 
1,331

 
1,455

 
148,029

 
149,484

Consumer
1,939

 
687

 
2,626

 
352,465

 
355,091

Gross loans receivable
$
7,716

 
$
7,729

 
$
15,445

 
$
2,830,267

 
$
2,845,712
Schedule of impaired loans, including restructured
Impaired loans include nonaccrual loans and performing TDR loans. The balances of impaired loans as of December 31, 2018 and December 31, 2017 are set forth in the following tables:
 
December 31, 2018
 
Recorded
Investment With
No Specific
Valuation
Allowance
 
Recorded
Investment With
Specific
Valuation
Allowance
 
Total
Recorded
Investment
 
Unpaid
Contractual
Principal
Balance
 
Related
Specific
Valuation
Allowance
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
2,523

 
$
20,119

 
$
22,642

 
$
24,176

 
$
2,607

Owner-occupied commercial real estate
816

 
5,000

 
5,816

 
6,150

 
1,142

Non-owner occupied commercial real estate
3,352

 
2,924

 
6,276

 
6,414

 
206

Total commercial business
6,691

 
28,043

 
34,734

 
36,740

 
3,955

One-to-four family residential
—

 
279

 
279

 
293

 
76

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
899

 
—

 
899

 
1,662

 
—

Total real estate construction and land development
899

 
—

 
899

 
1,662

 
—

Consumer
—

 
527

 
527

 
538

 
139

Total
$
7,590

 
$
28,849

 
$
36,439

 
$
39,233

 
$
4,170

 
December 31, 2017
 
Recorded
Investment With
No Specific
Valuation
Allowance
 
Recorded
Investment With
Specific
Valuation
Allowance
 
Total
Recorded
Investment
 
Unpaid
Contractual
Principal
Balance
 
Related
Specific
Valuation
Allowance
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
2,127

 
$
9,872

 
$
11,999

 
$
12,489

 
$
1,326

Owner-occupied commercial real estate
2,452

 
4,356

 
6,808

 
7,054

 
621

Non-owner occupied commercial real estate
4,722

 
11,297

 
16,019

 
16,172

 
1,222

Total commercial business
9,301

 
25,525

 
34,826

 
35,715

 
3,169

One-to-four family residential
—

 
299

 
299

 
308

 
93

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
One-to-four family residential
938

 
309

 
1,247

 
2,200

 
2

Five or more family residential and commercial properties
—

 
645

 
645

 
645

 
37

Total real estate construction and land development
938

 
954

 
1,892

 
2,845

 
39

Consumer
160

 
282

 
442

 
466

 
54

Total
$
10,399

 
$
27,060

 
$
37,459

 
$
39,334

 
$
3,355
Schedule of average recorded investment impaired loans including restructuring loans
The average recorded investment of impaired loans for the year ended December 31, 2018, 2017 and 2016 are set forth in the following table:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
(In thousands)
Commercial business:
 
 
 
 
 
Commercial and industrial
$
16,773

 
$
11,310

 
$
10,207

Owner-occupied commercial real estate
11,312

 
5,401

 
4,540

Non-owner occupied commercial real estate
9,465

 
12,162

 
11,709

Total commercial business
37,550


28,873


26,456

One-to-four family residential
290

 
309

 
279

Real estate construction and land development:
 
 
 
 
 
One-to-four family residential
1,091

 
2,315

 
3,305

Five or more family residential and commercial properties
129

 
903

 
1,656

Total real estate construction and land development
1,220


3,218


4,961

Consumer
428

 
351

 
645

Total
$
39,488


$
32,751


$
32,341
Recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs
The recorded investment balance and related allowance for loan losses of performing and nonaccrual TDR loans as of December 31, 2018 and December 31, 2017 were as follows:
 
December 31, 2018
 
December 31, 2017
 
Performing
TDRs
 
Nonaccrual
TDRs
 
Performing
TDRs
 
Nonaccrual
TDRs
 
(In thousands)
TDR loans
$
22,736

 
$
6,943

 
$
26,757

 
$
5,193

Allowance for loan losses on TDR loans
2,257

 
658

 
2,635

 
379
Troubled debt restructurings on financing receivables
Loans that were modified as TDR loans during the years ended December 31, 2018, 2017 and 2016 are set forth in the following table:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
Number of
Contracts
 (1)
 
Recorded Investment (1) (2)
 
Number of
Contracts
 (1)
 
Recorded Investment (1) (2)
 
Number of
Contracts
 (1)
 
Recorded Investment (1) (2)
 
(Dollars in thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
31

 
$
16,129

 
19

 
$
7,212

 
19

 
$
7,398

Owner-occupied commercial real estate
4

 
2,521

 
3

 
1,366

 
2

 
569

Non-owner occupied commercial real estate
3

 
2,944

 
4

 
9,574

 
2

 
2,121

Total commercial business
38


21,594


26


18,152

 
23

 
10,088

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
2

 
665

 
2

 
938

 
5

 
2,206

Five or more family residential and commercial properties
—

 
—

 
—

 
—

 
1

 
1,078

Total real estate construction and land development
2


665


2


938

 
6

 
3,284

Consumer
13

 
236

 
8

 
110

 
6

 
66

Total TDR loans
53

 
$
22,495

 
36

 
$
19,200

 
35

 
$
13,438

(1) 
Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-down or charged-off during the years ended December 31, 2018, 2017 and 2016.
(2) 
Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modification, the Bank’s recorded investment in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification), except when the modification was the initial advance on a one-to-four family residential real estate construction and land development loan under a master guidance line. There were no advances on these types of loans during the years ended December 31, 2018, 2017 and 2016.
Troubled debt restructuring loans, subsequently defaulted
Loans that were modified during the previous twelve months that subsequently defaulted during the years ended December 31, 2018, 2017 and 2016 are included in the following table:
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
Number of
Contracts
 
Recorded Investment (1)
 
Number of
Contracts
 
Recorded Investment (1)
 
Number of
Contracts
 
Recorded Investment (1)
 
(Dollars in thousands)
Commercial business:
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
5

 
$
1,890

 
1

 
$
283

 
—

 
$
—

Owner-occupied commercial real estate
1

 
65

 
1

 
80

 
1

 
488

Total commercial business
6


1,955


2


363

 
1

 
488

Real estate construction and land development:
 
 
 
 
 
 
 
 
 
 
 
One-to-four family residential
2

 
665

 
2

 
938

 
2

 
1,143

Total real estate construction and land development
2


665


2


938

 
2

 
1,143

Consumer
—

 
—

 
1

 
7

 
—

 
—

Total
8


$
2,620


5


$
1,308

 
3

 
$
1,631


(1) 
Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-down or charged-off during the years ended December 31, 2018, 2017 and 2016.
Purchased impaired loans
The following table reflects the outstanding principal balance and recorded investment of the PCI loans at December 31, 2018 and December 31, 2017:
 
December 31, 2018
 
December 31, 2017
 
Outstanding Principal
 
Recorded Investment
 
Outstanding Principal
 
Recorded Investment
 
(In thousands)
Commercial business:
 
 
 
 
 
 
 
Commercial and industrial
$
6,319

 
$
3,433

 
$
8,818

 
$
2,912

Owner-occupied commercial real estate
7,830

 
7,215

 
12,230

 
11,515

Non-owner occupied commercial real estate
8,685

 
7,059

 
14,295

 
13,342

Total commercial business
22,834

 
17,707

 
35,343

 
27,769

One-to-four family residential
3,169

 
3,315

 
4,120

 
5,255

Real estate construction and land development:
 
 
 
 
 
 
 
One-to-four family residential
67

 
380

 
841

 
89

Five or more family residential and commercial properties
188

 
43

 
2,361

 
2,035

Total real estate construction and land development
255

 
423

 
3,202

 
2,124

Consumer
2,203

 
3,462

 
3,974

 
5,455

Gross PCI loans
$
28,461

 
$
24,907

 
$
46,639

 
$
40,603
Schedule of impaired purchased loans accretable yield
The following table summarizes the accretable yield on the PCI loans for the years ended December 31, 2018, 2017 and 2016.
 
Year Ended December 31,
 
2018
 
2017
 
2016
 
(In thousands)
Balance at the beginning of the year
$
11,224

 
$
13,860

 
$
17,592

Accretion
(2,674
)
 
(3,471
)
 
(4,962
)
Disposal and other
(2,871
)
 
(2,758
)
 
(3,329
)
Reclassification from (to) nonaccreatable difference
3,814

 
3,593

 
4,559

Balance at the end of the year
$
9,493


$
11,224

 
$
13,860
Activity in related party loans
Activity in related party loans for the years ended December 31, 2018, 2017 and 2016 was as follows:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Balance outstanding at the beginning of year
 
$
8,460

 
$
19,917

 
$
20,775

Elimination of outstanding loan balance due to change in related party status
 
—

 
(10,930
)
 
—

Principal additions
 
211

 
—

 
738

Principal reductions
 
(304
)
 
(527
)
 
(1,596
)
Balance outstanding at the end of year
 
$
8,367

 
$
8,460

 
$
19,917
Mortgage banking activities
The following table presents information concerning the origination and sale of the Bank's one-to-four family residential loans and the gains from the sale of loans as a result of the Bank's mortgage banking activities:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
One-to-four family residential loans:
 
 
 
 
 
 
Originated (1)
 
$
121,998

 
$
144,066

 
$
178,169

Sold
 
76,834

 
113,786

 
141,127

Gain on sale of loans, net (2)
 
2,403

 
3,412

 
3,723

(1) 
Includes loans originated for sale in the secondary market or for the Bank's loan portfolio.
(2) 
Excludes net gains on sales of SBA and other loans.
Contractual amounts of commitments to sell and fund with off-balance sheet risk
The contractual amounts of commitments to sell and fund with off-balance sheet risk at December 31, 2018 and 2017 were as follows:
 
 
December 31, 2018
 
December 31, 2017
 
 
(In thousands)
Commitments to sell mortgage loans
 
$
3,910

 
$
10,140

 
 
 
 
 
Commitments to fund mortgage loans (at interest rates approximating market rates) for portfolio or for sale:
 
 
 
 
Fixed rate
 
$
6,593

 
$
10,894

Variable or adjustable rate
 
1,008

 
56

Total commitments to fund mortgage loans
 
$
7,601

 
$
10,950
Details of SBNA loans serviced
Details of certain SBA loans serviced are as follows:
 
 
December 31, 2018
 
December 31, 2017
 
 
(In thousands)
SBA loans serviced for others with participating interest, gross loan balance
 
$
54,335

 
$
53,809

SBA loans serviced for others with participating interest, participation balance owned by Bank (1)
 
12,715

 
12,394

(1) Included in the balances of total loans receivable, net on the Company's Consolidated Statements of Financial Condition.