Schedule of changes in allowance for loan losses |
A summary of the changes in the allowance for loan losses during the years ended December 31, 2019, 2018 and 2017 is as follows: | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | | (In thousands) | Balance at the beginning of the year | $ | 35,042 |
| | $ | 32,086 |
| | $ | 31,083 |
| Charge-offs | (4,989 | ) | | (3,605 | ) | | (4,838 | ) | Recoveries of loans previously charged-off | 1,807 |
| | 1,432 |
| | 1,621 |
| Provision for loan losses | 4,311 |
| | 5,129 |
| | 4,220 |
| Balance at the end of the year | $ | 36,171 |
|
| $ | 35,042 |
| | $ | 32,086 |
|
The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | Balance at Beginning of Year | | Charge-offs | | Recoveries | | Provision for Loan Losses | | Balance at End of Year | | (In thousands) | Commercial business: | | | | | | | | | | Commercial and industrial | $ | 11,343 |
| | $ | (2,692 | ) | | $ | 166 |
| | $ | 2,922 |
| | $ | 11,739 |
| Owner-occupied commercial real estate | 4,898 |
| | — |
| | 50 |
| | (436 | ) | | 4,512 |
| Non-owner occupied commercial real estate | 7,470 |
| | — |
| | 441 |
| | (229 | ) | | 7,682 |
| Total commercial business | 23,711 |
| | (2,692 | ) |
| 657 |
|
| 2,257 |
|
| 23,933 |
| One-to-four family residential | 1,203 |
| | (60 | ) | | — |
| | 315 |
| | 1,458 |
| Real estate construction and land development: | | | | | | |
| | | One-to-four family residential | 1,240 |
| | (133 | ) | | 637 |
| | (289 | ) | | 1,455 |
| Five or more family residential and commercial properties | 954 |
| | — |
| | — |
| | 651 |
| | 1,605 |
| Total real estate construction and land development | 2,194 |
| | (133 | ) |
| 637 |
|
| 362 |
|
| 3,060 |
| Consumer | 6,581 |
| | (2,104 | ) | | 513 |
| | 1,831 |
| | 6,821 |
| Unallocated | 1,353 |
| | — |
| | — |
| | (454 | ) | | 899 |
| Total | $ | 35,042 |
| | $ | (4,989 | ) |
| $ | 1,807 |
|
| $ | 4,311 |
|
| $ | 36,171 |
|
The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | Balance at Beginning of Year | | Charge-offs | | Recoveries | | Provision for Loan Losses | | Balance at End of Year | | (In thousands) | Commercial business: | | | | | | | | | | Commercial and industrial | $ | 10,968 |
| | $ | (859 | ) | | $ | 792 |
| | $ | (991 | ) | | $ | 9,910 |
| Owner-occupied commercial real estate | 3,661 |
| | (1,579 | ) | | 155 |
| | 1,755 |
| | 3,992 |
| Non-owner occupied commercial real estate | 7,753 |
| | — |
| | — |
| | 344 |
| | 8,097 |
| Total commercial business | 22,382 |
| | (2,438 | ) | | 947 |
| | 1,108 |
| | 21,999 |
| One-to-four family residential | 1,015 |
| | (30 | ) | | 2 |
| | 69 |
| | 1,056 |
| Real estate construction and land development: | | | | | | | | | | One-to-four family residential | 797 |
| | (556 | ) | | 202 |
| | 419 |
| | 862 |
| Five or more family residential and commercial properties | 1,359 |
| | — |
| | — |
| | (169 | ) | | 1,190 |
| Total real estate construction and land development | 2,156 |
| | (556 | ) | | 202 |
| | 250 |
| | 2,052 |
| Consumer | 5,024 |
| | (1,814 | ) | | 470 |
| | 2,401 |
| | 6,081 |
| Unallocated | 506 |
| | — |
| | — |
| | 392 |
| | 898 |
| Total | $ | 31,083 |
| | $ | (4,838 | ) | | $ | 1,621 |
| | $ | 4,220 |
| | $ | 32,086 |
|
|
The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | Balance at Beginning of Year | | Charge-offs | | Recoveries | | Provision for Loan Losses | | Balance at End of Year | | (In thousands) | Commercial business: | | | | | | | | | | Commercial and industrial | $ | 9,910 |
| | $ | (1,250 | ) | | $ | 901 |
| | $ | 1,782 |
| | $ | 11,343 |
| Owner-occupied commercial real estate | 3,992 |
| | (1 | ) | | 7 |
| | 900 |
| | 4,898 |
| Non-owner occupied commercial real estate | 8,097 |
| | (149 | ) | | — |
| | (478 | ) | | 7,470 |
| Total commercial business | 21,999 |
| | (1,400 | ) | | 908 |
| | 2,204 |
| | 23,711 |
| One-to-four family residential | 1,056 |
| | (45 | ) | | — |
| | 192 |
| | 1,203 |
| Real estate construction and land development: | | | | | | | | | | One-to-four family residential | 862 |
| | — |
| | 11 |
| | 367 |
| | 1,240 |
| Five or more family residential and commercial properties | 1,190 |
| | — |
| | — |
| | (236 | ) | | 954 |
| Total real estate construction and land development | 2,052 |
| | — |
| | 11 |
| | 131 |
| | 2,194 |
| Consumer | 6,081 |
| | (2,160 | ) | | 513 |
| | 2,147 |
| | 6,581 |
| Unallocated | 898 |
| | — |
| | — |
| | 455 |
| | 1,353 |
| Total | $ | 32,086 |
| | $ | (3,605 | ) | | $ | 1,432 |
| | $ | 5,129 |
| | $ | 35,042 |
|
|
Schedule of loan receivables on the basis of impairment method |
The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2018: | | | | | | | | | | | | | | | | | | Loans Individually Evaluated for Impairment | | Loans Collectively Evaluated for Impairment | | PCI Loans | | Total Allowance for Loan Losses | | (In thousands) | Commercial business: | | | | | | | | Commercial and industrial | $ | 2,607 |
| | $ | 7,913 |
| | $ | 823 |
| | $ | 11,343 |
| Owner-occupied commercial real estate | 1,142 |
| | 3,063 |
| | 693 |
| | 4,898 |
| Non-owner occupied commercial real estate | 206 |
| | 6,630 |
| | 634 |
| | 7,470 |
| Total commercial business | 3,955 |
|
| 17,606 |
|
| 2,150 |
|
| 23,711 |
| One-to-four family residential | 76 |
| | 1,015 |
| | 112 |
| | 1,203 |
| Real estate construction and land development: | | | | | | | | One-to-four family residential | — |
| | 1,040 |
| | 200 |
| | 1,240 |
| Five or more family residential and commercial properties | — |
| | 875 |
| | 79 |
| | 954 |
| Total real estate construction and land development | — |
|
| 1,915 |
|
| 279 |
|
| 2,194 |
| Consumer | 139 |
| | 5,965 |
| | 477 |
| | 6,581 |
| Unallocated | — |
| | 1,353 |
| | — |
| | 1,353 |
| Total | $ | 4,170 |
|
| $ | 27,854 |
|
| $ | 3,018 |
|
| $ | 35,042 |
|
The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2018: | | | | | | | | | | | | | | | | | | Loans Individually Evaluated for Impairment | | Loans Collectively Evaluated for Impairment | | PCI Loans | | Total Gross Loans Receivable | | (In thousands) | Commercial business: | | | | | | | | Commercial and industrial | $ | 22,642 |
| | $ | 827,531 |
| | $ | 3,433 |
| | $ | 853,606 |
| Owner-occupied commercial real estate | 5,816 |
| | 766,783 |
| | 7,215 |
| | 779,814 |
| Non-owner occupied commercial real estate | 6,276 |
| | 1,291,128 |
| | 7,059 |
| | 1,304,463 |
| Total commercial business | 34,734 |
|
| 2,885,442 |
|
| 17,707 |
|
| 2,937,883 |
| One-to-four family residential | 279 |
| | 98,169 |
| | 3,315 |
| | 101,763 |
| Real estate construction and land development: | | | | | | | | One-to-four family residential | 899 |
| | 101,451 |
| | 380 |
| | 102,730 |
| Five or more family residential and commercial properties | — |
| | 112,687 |
| | 43 |
| | 112,730 |
| Total real estate construction and land development | 899 |
|
| 214,138 |
|
| 423 |
|
| 215,460 |
| Consumer | 527 |
| | 391,556 |
| | 3,462 |
| | 395,545 |
| Total | $ | 36,439 |
|
| $ | 3,589,305 |
|
| $ | 24,907 |
|
| $ | 3,650,651 |
|
The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2019: | | | | | | | | | | | | | | | | | | Loans Individually Evaluated for Impairment | | Loans Collectively Evaluated for Impairment | | PCI Loans | | Total Allowance for Loan Losses | | (In thousands) | Commercial business: | | | | | | | | Commercial and industrial | $ | 1,372 |
| | $ | 9,772 |
| | $ | 595 |
| | $ | 11,739 |
| Owner-occupied commercial real estate | 426 |
| | 3,558 |
| | 528 |
| | 4,512 |
| Non-owner occupied commercial real estate | 146 |
| | 7,064 |
| | 472 |
| | 7,682 |
| Total commercial business | 1,944 |
| | 20,394 |
| | 1,595 |
| | 23,933 |
| One-to-four family residential | 56 |
| | 1,316 |
| | 86 |
| | 1,458 |
| Real estate construction and land development: | | | | | | | | One-to-four family residential | — |
| | 1,296 |
| | 159 |
| | 1,455 |
| Five or more family residential and commercial properties | — |
| | 1,527 |
| | 78 |
| | 1,605 |
| Total real estate construction and land development | — |
| | 2,823 |
| | 237 |
| | 3,060 |
| Consumer | 143 |
| | 6,327 |
| | 351 |
| | 6,821 |
| Unallocated | — |
| | 899 |
| | — |
| | 899 |
| Total | $ | 2,143 |
|
| $ | 31,759 |
|
| $ | 2,269 |
|
| $ | 36,171 |
|
The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2019: | | | | | | | | | | | | | | | | | | Loans Individually Evaluated for Impairment | | Loans Collectively Evaluated for Impairment | | PCI Loans | | Total Gross Loans Receivable | | (In thousands) | Commercial business: | | | | | | | | Commercial and industrial | $ | 43,818 |
| | $ | 805,649 |
| | $ | 2,367 |
| | $ | 851,834 |
| Owner-occupied commercial real estate | 6,336 |
| | 795,359 |
| | 4,914 |
| | 806,609 |
| Non-owner occupied commercial real estate | 6,330 |
| | 1,279,771 |
| | 5,491 |
| | 1,291,592 |
| Total commercial business | 56,484 |
|
| 2,880,779 |
|
| 12,772 |
|
| 2,950,035 |
| One-to-four family residential | 216 |
| | 128,293 |
| | 3,579 |
| | 132,088 |
| Real estate construction and land development: | | | | | | |
| One-to-four family residential | 237 |
| | 104,673 |
| | — |
| | 104,910 |
| Five or more family residential and commercial properties | — |
| | 171,777 |
| | — |
| | 171,777 |
| Total real estate construction and land development | 237 |
|
| 276,450 |
|
| — |
|
| 276,687 |
| Consumer | 554 |
| | 404,312 |
| | 1,762 |
| | 406,628 |
| Total | $ | 57,491 |
|
| $ | 3,689,834 |
|
| $ | 18,113 |
|
| $ | 3,765,438 |
|
|
|