Commitments and Contingencies (Notes)

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

Commitments and Contingencies

In the ordinary course of business, the Company may enter into various types of transactions that include commitments to extend credit that are not included in its Condensed Consolidated Financial Statements. The Company applies the same credit standards to these commitments as it uses in all its lending activities and has included these commitments in its lending risk evaluations. The majority of the commitments presented below are variable rate. Loan commitments can be either revolving or nonrevolving. The Company’s exposure to credit and market risk under commitments to extend credit is represented by the amount of these commitments.

Upon adoption of ASU 2016-13, as described in Note (1) Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements, the Company recorded an increase in the beginning ACL on unfunded commitments of $3.7 million, representing the change in methodology from an estimate of incurred losses at the balance sheet date, with an estimated probability of funding, to an estimate of losses on future utilization over the entire contractual period.

The following table presents outstanding commitments to extend credit, including letters of credit, at the dates indicated:

	March 31, 2020		December 31, 2019
	(In thousands)
Commercial business:
Commercial and industrial	$	557,050	$	584,287
Owner-occupied commercial real estate	13,665		17,193
Non-owner occupied commercial real estate	30,132		35,573
Total commercial business	600,847		637,053
Real estate construction and land development:
One-to-four family residential	65,740		75,066
Five or more family residential and commercial properties	201,003		230,343
Total real estate construction and land development	266,743		305,409
Consumer	256,312		269,898
Total outstanding commitments	$	1,123,902	$	1,212,360

The following table details the activity in the ACL on unfunded commitments during the three months ended March 31, 2020:

	Three Months Ended
	March 31, 2020			March 31, 2019
	(In thousands)
Balance, beginning of period	$	306		$	306
Impact of CECL adoption	3,702			—
Adjusted balance, beginning of period	4,008			306
Reversal of provision for credit losses on unfunded commitments	(2,018		)	—
Balance, end of period	$	1,990		$	306