Loans (Tables)

3 Months Ended

Mar. 31, 2020



	March 31,	December 31,
	2020	2019

SBL non-real estate	$ 84,946	$ 84,579
SBL commercial mortgage	233,220	218,110
SBL construction	48,823	45,310
Small business loans *	366,989	347,999
Direct lease financing	445,967	434,460
SBLOC / IBLOC **	1,156,433	1,024,420
Other specialty lending	2,711	3,055
Other consumer loans ***	4,023	4,554
	1,976,123	1,814,488
Unamortized loan fees and costs	9,632	9,757
Total loans, net of unamortized loan fees and costs	$ 1,985,755	$ 1,824,245


	March 31,	December 31,
	2020	2019

SBL loans, including deferred fees and costs of $4,083 and $4,215
for March 31, 2020 and December 31, 2019, respectively	$ 371,072	$ 352,214
SBL loans included in held-for-sale	223,987	220,358
Total small business loans	$ 595,059	$ 572,572

* The preceding table shows small business loans (SBL) and SBL held-for-sale at the dates indicated (in thousands). While the majority of SBL are comprised of SBA loans, SBL also includes $20,923,000 of non-SBA loans as of March 31, 2020 and $16,952,000 at December 31, 2019.

** Securities Backed Lines of Credit (SBLOC) are collateralized by marketable securities, while Insurance Backed Lines of Credit (IBLOC) are collateralized by the cash surrender value of insurance policies. At March 31, 2020 and December 31, 2019, respectively, IBLOC loans amounted to $228.8 million and $144.6 million.

*** Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $455,000 and $882,000 at March 31, 2020 and December 31, 2019, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses.

Impaired Loans



	March 31, 2020
	Recorded investment	Unpaid principal balance	Related allowance	Average recorded investment	Interest income recognized
Without an allowance recorded
SBL non-real estate	$ 266	$ 2,693	$ -	$ 301	$ 3
SBL commercial mortgage	76	76	-	76	-
SBL construction	-	-	-	-	-
Direct lease financing	15,620	15,620	-	7,953	278
Consumer - home equity	585	585	-	537	3
With an allowance recorded
SBL non-real estate	3,731	3,731	(2,805)	3,767	20
SBL commercial mortgage	971	971	(136)	971	-
SBL construction	711	711	(25)	711	-
Direct lease financing	-	-	-	-	-
Consumer - home equity	-	-	-	60	-
Total
SBL non-real estate	3,997	6,424	(2,805)	4,068	23
SBL commercial mortgage	1,047	1,047	(136)	1,047	-
SBL construction	711	711	(25)	711	-
Direct lease financing	15,620	15,620	-	7,953	278
Consumer - home equity	585	585	-	597	3
	$ 21,960	$ 24,387	$ (2,966)	$ 14,376	$ 304



	December 31, 2019
	Recorded investment	Unpaid principal balance	Related allowance	Average recorded investment	Interest income recognized
Without an allowance recorded
SBL non-real estate	$ 335	$ 2,717	$ -	$ 277	$ 5
SBL commercial mortgage	76	76	-	15	-
SBL construction	-	-	-	284	-
Direct lease financing	286	286	-	362	11
Consumer - home equity	489	489	-	1,161	9
With an allowance recorded
SBL non-real estate	3,804	4,371	(2,961)	3,925	30
SBL commercial mortgage	971	971	(136)	561	-
SBL construction	711	711	(36)	284	-
Direct lease financing	-	-	-	244	-
Consumer - home equity	121	121	(9)	344	-
Total
SBL non-real estate	4,139	7,088	(2,961)	4,202	35
SBL commercial mortgage	1,047	1,047	(136)	576	-
SBL construction	711	711	(36)	568	-
Direct lease financing	286	286	-	606	11
Consumer - home equity	610	610	(9)	1,505	9
	$ 6,793	$ 9,742	$ (3,142)	$ 7,457	$ 55

Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses


	March 31, 2020			December 31, 2019
	Non-accrual loans with a related ACL *	Non-accrual loans without a related ACL *	Total non-accrual loans	Total non-accrual loans
SBL non-real estate	$ 3,354	$ 211	$ 3,565	$ 3,693
SBL commercial mortgage	971	76	1,047	1,047
SBL construction	711	-	711	711
Consumer	-	322	322	345
	$ 5,036	$ 609	$ 5,645	$ 5,796

* Allowance for credit losses

Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category



	March 31,	December 31,
	2020	2019

Non-accrual loans
SBL non-real estate	$ 3,565	$ 3,693
SBL commercial mortgage	1,047	1,047
SBL construction	711	711
Consumer	322	345
Total non-accrual loans	5,645	5,796

Loans past due 90 days or more and still accruing	2,245	3,264
Total non-performing loans	7,890	9,060
Other real estate owned	-	-
Total non-performing assets	$ 7,890	$ 9,060

Loans Modified And Considered Troubled Debt Restructurings



	March 31, 2020			December 31, 2019
	Number	Pre-modification recorded investment	Post-modification recorded investment	Number	Pre-modification recorded investment	Post-modification recorded investment
SBL non-real estate	8	$ 1,296	$ 1,296	8	$ 1,309	$ 1,309
Direct lease financing	2	15,620	15,620	1	286	286
Consumer	2	484	484	2	489	489
Total	12	$ 17,400	$ 17,400	11	$ 2,084	$ 2,084

Loans Modified As Troubled Debt Restructurings



	March 31, 2020			December 31, 2019
	Adjusted interest rate	Extended maturity	Combined rate and maturity	Adjusted interest rate	Extended maturity	Combined rate and maturity
SBL non-real estate	$ -	$ 42	$ 1,254	$ -	$ 51	$ 1,258
Direct lease financing	-	286	15,333	-	286	-
Consumer	-	-	485	-	-	489
Total	$ -	$ 328	$ 17,072	$ -	$ 337	$ 1,747

Effect Of The Adoption Of CECL


	December 31, 2019		January 1, 2020		March 31, 2020
	Incurred loss method		CECL (day 1 adoption)		CECL
	Amount	% of Segment	Amount	% of Segment	Amount	% of Segment
Allowance for credit losses on loans and leases
SBL non real estate	$ 4,914	8.33%	$ 4,766	8.08%	$ 4,942	7.98%
SBL commercial mortgage	1,458	0.71%	2,009	0.98%	2,807	1.28%
SBL construction	432	0.95%	571	1.26%	795	1.63%
Direct lease financing	2,426	0.56%	4,788	1.10%	5,558	1.25%
SBLOC	440	0.05%	440	0.05%	462	0.05%
IBLOC	113	0.08%	72	0.05%	114	0.05%
Other specialty lending (1)	97	0.39%	170	0.40%	157	0.40%
Consumer - other	40	0.88%	58	1.27%	48	1.19%
Unallocated	318		-		-
	$ 10,238	0.56%	$ 12,874	0.71%	$ 14,883	0.75%

Liabilities:
Allowance for credit losses on off-balance sheet credit	-		569		786
Total allowance for credit losses	$ 10,238		$ 13,443		$ 15,669

(1) Included in other specialty lending are $36.4 million of SBA loans purchased for CRA purposes. These loans are classified as SBL loans in our loan tables.

Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade


As of March 31, 2020	2020	2019	2018	2017	2016	Prior	Revolving loans at amortized cost	Total
SBL non real estate
Non-rated	$ 1,936	$ -	$ -	$ -	$ -	$ -	$ -	$ 1,936
Pass (I-IV)	2,202	9,430	12,922	7,262	8,134	12,657	-	52,607
Special mention	-	-	1,193	44	541	985	-	2,763
Substandard	-	49	-	761	2,053	1,845	-	4,708
Total SBL non-real estate	4,138	9,479	14,115	8,067	10,728	15,487	-	62,014

SBL commercial mortgage
Non-rated	2,529	-	-	-	-	-	-	2,529
Pass (I-IV)	8,313	58,092	40,063	35,014	29,028	38,929	-	209,439
Special mention	-	-	-	-	-	264	-	264
Substandard	-	-	-	-	76	7,441	-	7,517
Total SBL commercial mortgage	10,842	58,092	40,063	35,014	29,104	46,634	-	219,749

SBL construction
Non-rated	-	-	-	-	-	-	-	-
Pass (I-IV)	-	13,148	23,603	8,425	2,936	-	-	48,112
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	711	-	-	711
Total SBL construction	-	13,148	23,603	8,425	3,647	-	-	48,823

Direct lease financing
Non-rated	15,021	1,549	556	-	-	-	-	17,126
Pass (I-IV)	60,757	161,908	92,587	56,292	26,452	8,748	-	406,744
Special mention	-	-	-	-	-	-	-	-
Substandard	-	15,641	2,664	1,848	1,680	264	-	22,097
Total direct lease financing	75,778	179,098	95,807	58,140	28,132	9,012	-	445,967

SBLOC
Non-rated	-	-	-	-	-	-	14,819	14,819
Pass (I-IV)	-	-	-	-	-	-	912,794	912,794
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total SBLOC	-	-	-	-	-	-	927,613	927,613

IBLOC
Non-rated	-	-	-	-	-	-	55,921	55,921
Pass (I-IV)	-	-	-	-	-	-	172,899	172,899
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total IBLOC	-	-	-	-	-	-	228,820	228,820

Other specialty
Non-rated	-	194	283	649	-	-	-	1,126
Pass (I-IV)	-	3,559	6,824	6,720	7,424	13,462	-	37,989
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total other specialty	-	3,753	7,107	7,369	7,424	13,462	-	39,115

Consumer
Non-rated	-	-	-	17	-	229	1,970	2,216
Pass (I-IV)	-	-	-	-	-	-	1,485	1,485
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	322	322
Total consumer	-	-	-	17	-	229	3,777	4,023
Total	$ 90,758	$ 263,570	$ 180,695	$ 117,032	$ 79,035	$ 84,824	$ 1,160,210	$ 1,976,124

Changes In Allowance For Loan And Lease Losses By Loan Category



	March 31, 2020
	SBL non-real estate	SBL commercial mortgage	SBL construction	Direct lease financing	SBLOC / IBLOC	Other specialty lending	Other consumer loans	Unallocated	Total
Beginning 12/31/2019	$ 4,985	$ 1,472	$ 432	$ 2,426	$ 553	$ 12	$ 40	$ 318	$ 10,238
1/1 CECL adjustment	(220)	537	139	2,362	(41)	158	20	(318)	2,637
Charge-offs	(265)	-	-	(1,193)	-	-	-	-	(1,458)
Recoveries	19	-	-	84	-	-	-	-	103
Provision (credit)	422	798	224	1,879	64	(13)	(11)	-	3,363
Ending balance	$ 4,941	$ 2,807	$ 795	$ 5,558	$ 576	$ 157	$ 49	$ -	$ 14,883

Ending balance: Individually evaluated for expected credit loss	$ 2,805	$ 136	$ 26	$ -	$ -	$ -	$ -	$ -	$ 2,967

Ending balance: Collectively evaluated for expected credit loss	$ 2,136	$ 2,671	$ 769	$ 5,558	$ 576	$ 157	$ 49	$ -	$ 11,916

Loans:
Ending balance	$ 84,946	$ 233,220	$ 48,823	$ 445,967	$ 1,156,433	$ 2,711	$ 4,023	$ 9,632	$ 1,985,755

Ending balance: Individually evaluated for expected credit loss	$ 3,997	$ 1,047	$ 711	$ 15,620	$ -	$ -	$ 585	$ -	$ 21,960

Ending balance: Collectively evaluated for expected credit loss	$ 80,949	$ 232,173	$ 48,112	$ 430,347	$ 1,156,433	$ 2,711	$ 3,438	$ 9,632	$ 1,963,795



	December 31, 2019
	SBL non-real estate	SBL commercial mortgage	SBL construction	Direct lease financing	SBLOC / IBLOC	Other specialty lending	Other consumer loans	Unallocated	Total
Beginning 1/1/2019	$ 4,636	$ 941	$ 250	$ 2,025	$ 393	$ 60	$ 108	$ 240	$ 8,653
Charge-offs	(1,362)	-	-	(528)	-	-	(1,103)	-	(2,993)
Recoveries	125	-	-	51	-	-	2	-	178
Provision (credit)	1,586	531	182	878	160	(48)	1,033	78	4,400
Ending balance	$ 4,985	$ 1,472	$ 432	$ 2,426	$ 553	$ 12	$ 40	$ 318	$ 10,238

Ending balance: Individually evaluated for impairment	$ 2,961	$ 136	$ 36	$ -	$ -	$ -	$ 9	$ -	$ 3,142

Ending balance: Collectively evaluated for impairment	$ 2,024	$ 1,336	$ 396	$ 2,426	$ 553	$ 12	$ 31	$ 318	$ 7,096

Loans:
Ending balance	$ 84,579	$ 218,110	$ 45,310	$ 434,460	$ 1,024,420	$ 3,055	$ 4,554	$ 9,757	$ 1,824,245

Ending balance: Individually evaluated for impairment	$ 4,139	$ 1,047	$ 711	$ 286	$ -	$ -	$ 610	$ -	$ 6,793

Ending balance: Collectively evaluated for impairment	$ 80,440	$ 217,063	$ 44,599	$ 434,174	$ 1,024,420	$ 3,055	$ 3,944	$ 9,757	$ 1,817,452



	March 31, 2019
	SBL non-real estate	SBL commercial mortgage	SBL construction	Direct lease financing	SBLOC	Other specialty lending	Other consumer loans	Unallocated	Total
Beginning 1/1/2019	$ 4,636	$ 941	$ 250	$ 2,025	$ 393	$ 60	$ 108	$ 240	$ 8,653
Charge-offs	(322)	-	-	(106)	-	-	-	-	(428)
Recoveries	17	-	-	12	-	-	-	-	29
Provision (credit)	846	538	(15)	362	3	22	(29)	(27)	1,700
Ending balance	$ 5,177	$ 1,479	$ 235	$ 2,293	$ 396	$ 82	$ 79	$ 213	$ 9,954

Ending balance: Individually evaluated for impairment	$ 3,324	$ 71	$ -	$ 151	$ -	$ -	$ 15	$ -	$ 3,561

Ending balance: Collectively evaluated for impairment	$ 1,853	$ 1,408	$ 235	$ 2,142	$ 396	$ 82	$ 64	$ 213	$ 6,393

Loans:
Ending balance	$ 76,112	$ 179,397	$ 23,979	$ 384,930	$ 791,986	$ 34,425	$ 9,301	$ 10,265	$ 1,510,395

Ending balance: Individually evaluated for impairment	$ 4,614	$ 458	$ 711	$ 812	$ -	$ -	$ 1,732	$ -	$ 8,327

Ending balance: Collectively evaluated for impairment	$ 71,498	$ 178,939	$ 23,268	$ 384,118	$ 791,986	$ 34,425	$ 7,569	$ 10,265	$ 1,502,068

Delinquent Loans By Loan Category



	March 31, 2020
	30-59 Days	60-89 Days	90+ Days		Total		Total
	past due	past due	still accruing	Non-accrual	past due	Current	loans
SBL non-real estate	$ 185	$ 406	$ -	$ 3,565	$ 4,156	$ 80,790	$ 84,946
SBL commercial mortgage	-	-	-	1,047	1,047	232,173	233,220
SBL construction	-	-	-	711	711	48,112	48,823
Direct lease financing	9,079	1,459	2,245	-	12,783	433,184	445,967
SBLOC / IBLOC	10,835	-	-	-	10,835	1,145,598	1,156,433
Other specialty lending	-	-	-	-	-	2,711	2,711
Consumer - other	17	-	-	-	17	684	701
Consumer - home equity	-	-	-	322	322	3,000	3,322
Unamortized loan fees and costs	-	-	-	-	-	9,632	9,632
	$ 20,116	$ 1,865	$ 2,245	$ 5,645	$ 29,871	$ 1,955,884	$ 1,985,755



	December 31, 2019
	30-59 Days	60-89 Days	90+ Days		Total		Total
	past due	past due	still accruing	Non-accrual	past due	Current	loans
SBL non-real estate	$ 36	$ 125	$ -	$ 3,693	$ 3,854	$ 80,725	$ 84,579
SBL commercial mortgage	-	1,983	-	1,047	3,030	215,080	218,110
SBL construction	-	-	-	711	711	44,599	45,310
Direct lease financing	2,008	2,692	3,264	-	7,964	426,496	434,460
SBLOC / IBLOC	290	75	-	-	365	1,024,055	1,024,420
Other specialty lending	-	-	-	-	-	3,055	3,055
Consumer - other	-	-	-	-	-	1,137	1,137
Consumer - home equity	-	-	-	345	345	3,072	3,417
Unamortized loan fees and costs	-	-	-	-	-	9,757	9,757
	$ 2,334	$ 4,875	$ 3,264	$ 5,796	$ 16,269	$ 1,807,976	$ 1,824,245

Loans By Categories



	December 31, 2019
	Pass	Special mention	Substandard	Doubtful	Loss	Unrated subject to review *	Unrated not subject to review *	Total loans
SBL non-real estate	$ 76,108	$ 3,045	$ 4,430	$ -	$ -	$ -	$ 996	$ 84,579
SBL commercial mortgage	208,809	2,249	5,577	-	-	-	1,475	218,110
SBL construction	44,599	-	711	-	-	-	-	45,310
Direct lease financing	420,289	-	8,792	-	-	-	5,379	434,460
SBLOC / IBLOC	942,858	-	-	-	-	-	81,562	1,024,420
Other specialty lending	3,055	-	-	-	-	-	-	3,055
Consumer	2,545	-	345	-	-	-	1,664	4,554
Unamortized loan fees and costs	-	-	-	-	-	-	9,757	9,757
	$ 1,698,263	$ 5,294	$ 19,855	$ -	$ -	$ -	$ 100,833	$ 1,824,245

* For information on targeted loan review thresholds see “Allowance for Loan Losses” in the 2019 Form 10-K Report in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations.