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Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2020

Loans and Leases Receivable Disclosure [Abstract]

Financing Receivable Credit Quality Indicators [Table Text Block]

The amortized cost of loans receivable, net of ACL at June 30, 2020 and December 31, 2019 consisted of the following portfolio segments and classes:


	June 30, 2020		December 31, 2019
	(In thousands)
Commercial business:
Commercial and industrial	$	793,217	$	852,220
SBA PPP	856,490		—
Owner-occupied commercial real estate	838,303		805,234
Non-owner occupied commercial real estate	1,351,775		1,288,779
Total commercial business	3,839,785		2,946,233
One-to-four family residential	132,546		131,660
Real estate construction and land development:
One-to-four family residential	108,821		104,296
Five or more family residential and commercial properties	197,163		170,350
Total real estate construction and land development	305,984		274,646
Consumer	388,018		415,340
Loans receivable	4,666,333		3,767,879
Allowance for credit losses on loans	(71,501)		(36,171)
Loans receivable, net	$	4,594,832	$	3,731,708

The following table presents the amortized cost of loans receivable by risk grade as of June 30, 2020:


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans ⁽¹⁾		Loans Receivable
	(In thousands)
Commercial business:
Commercial and industrial
Pass	$	60,290	$	152,475	$	86,904	$	59,048	$	49,096	$	123,041	$	176,396	$	3,654	$	710,904
SM	2,071		3,232		3,128		1,268		1,876		1,872		14,830		42		28,319
SS	1,859		11,198		4,555		8,278		2,286		12,732		9,227		3,859		53,994

Total	64,220		166,905		94,587		68,594		53,258		137,645		200,453		7,555		793,217
SBA PPP
Pass	856,490		—		—		—		—		—		—		—		856,490




Owner-occupied CRE
Pass	46,237		157,457		105,974		89,912		84,671		306,133		—		1,051		791,435
SM	—		—		—		9,836		1,461		12,691		—		—		23,988
SS	—		—		117		4,686		3,380		14,697		—		—		22,880

Total	46,237		157,457		106,091		104,434		89,512		333,521		—		1,051		838,303
Non-owner-occupied CRE
Pass	93,518		163,318		151,550		193,928		284,553		449,656		—		—		1,336,523
SM	—		—		—		—		6,214		1,939		—		—		8,153
SS	—		—		65		—		—		7,034		—		—		7,099

Total	93,518		163,318		151,615		193,928		290,767		458,629		—		—		1,351,775
Total commercial business
Pass	1,056,535		473,250		344,428		342,888		418,320		878,830		176,396		4,705		3,695,352
SM	2,071		3,232		3,128		11,104		9,551		16,502		14,830		42		60,460
SS	1,859		11,198		4,737		12,964		5,666		34,463		9,227		3,859		83,973

Total	1,060,465		487,680		352,293		366,956		433,537		929,795		200,453		8,606		3,839,785
One-to-four family residential
Pass	19,960		42,790		19,958		15,334		9,304		24,507		—		—		131,853

SS	—		—		—		61		124		508		—		—		693

Total	19,960		42,790		19,958		15,395		9,428		25,015		—		—		132,546
Real estate construction and land development:
One-to-four family residential
Pass	17,955		75,844		8,366		2,229		971		1,705		—		—		107,070

SS	—		—		—		1,751		—		—		—		—		1,751

Total	17,955		75,844		8,366		3,980		971		1,705		—		—		108,821
Five or more family residential and commercial properties
Pass	16,898		107,857		61,589		6,993		797		2,536		—		—		196,670
SM	—		—		—		—		—		38		—		—		38
SS	—		—		—		—		—		455		—		—		455

Total	16,898		107,857		61,589		6,993		797		3,029		—		—		197,163
Total real estate and land development
Pass	34,853		183,701		69,955		9,222		1,768		4,241		—		—		303,740
SM	—		—		—		—		—		38		—		—		38
SS	—		—		—		1,751		—		455		—		—		2,206

Total	34,853		183,701		69,955		10,973		1,768		4,734		—		—		305,984


	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans ⁽¹⁾		Loans Receivable
	(In thousands)
Consumer
Pass	36,752		95,262		67,245		40,617		19,622		30,448		94,162		230		384,338

SS	20		257		486		492		471		1,520		430		4		3,680

Total	36,772		95,519		67,731		41,109		20,093		31,968		94,592		234		388,018
Loans receivable
Pass	1,148,100		795,003		501,586		408,061		449,014		938,026		270,558		4,935		4,515,283
SM	2,071		3,232		3,128		11,104		9,551		16,540		14,830		42		60,498
SS	1,879		11,455		5,223		15,268		6,261		36,946		9,657		3,863		90,552

Total	$	1,152,050	$	809,690	$	509,937	$	434,433	$	464,826	$	991,512	$	295,045	$	8,840	$	4,666,333

⁽¹⁾Represents loans receivable balance at June 30, 2020 which was converted from a revolving loan to an amortizing loan during the six months ended June 30, 2020.

The following table presents the amortized cost of loans receivable by credit quality indicator as of December 31, 2019 in accordance with disclosure requirements prior to CECL Adoption:


	December 31, 2019
	Pass		Special Mention		Substandard		Doubtful/Loss		Total
	(In thousands)
Commercial business:
Commercial and industrial	$	771,559	$	16,340	$	64,321	$	—	$	852,220
Owner-occupied CRE	765,411		24,659		15,164		—		805,234
Non-owner occupied CRE	1,274,513		5,662		8,604		—		1,288,779
Total commercial business	2,811,483		46,661		88,089		—		2,946,233
One-to-four family residential	130,818		—		842		—		131,660
Real estate construction and land development:
One-to-four family residential	101,973		1,516		807		—		104,296
Five or more family residential and commercial properties	169,668		682		—		—		170,350
Total real estate construction and land development	271,641		2,198		807		—		274,646
Consumer	411,141		—		3,675		524		415,340
Loans receivable	$	3,625,083	$	48,859	$	93,413	$	524	$	3,767,879

Schedule of nonaccrual loans

The following table presents the amortized cost of nonaccrual loans for the dates indicated:


	June 30, 2020								December 31, 2019
	Nonaccrual with No ACL		Nonaccrual with ACL		Total Nonaccrual ⁽¹⁾		Nonaccrual ⁽²⁾
	(In thousands)
Commercial business:
Commercial and industrial	$	23,359	$	2,458	$	25,817	$	33,544
Owner-occupied CRE	3,042		724		3,766		4,714
Non-owner occupied CRE	3,799		—		3,799		6,062
Total commercial business	30,200		3,182		33,382		44,320
One-to-four family residential	16		144		160		19




Consumer	—		86		86		186
Total	$	30,216	$	3,412	$	33,628	$	44,525

⁽¹⁾ Includes $429,000 of PCI loans which were converted to PCD loans and classified as nonaccrual on January 1, 2020 as part of CECL Adoption.

⁽²⁾ Presentation of December 31, 2019 balances is in accordance with disclosure requirements prior to CECL Adoption.

The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full of previously classified nonaccrual loans during the following period:


	Three Months Ended June 30, 2020						Three Months Ended June 30, 2019
	Interest Income Reversed		Interest Income Recognized		Interest Income Reversed		Interest Income Recognized
	(In thousands)
Commercial business:
Commercial and industrial	$	—	$	89	$	(35)	$	11
Owner-occupied CRE	—		14		(1)		39
Non-owner occupied CRE	—		22		—		—
Total commercial business	—		125		(36)		50

Real estate construction and land development:
One-to-four family residential	—		—		—		23


Consumer	—		37		—		—
Total	$	—	$	162	$	(36)	$	73


	Six Months Ended June 30, 2020						Six months ended June 30, 2019
	Interest Income Reversed		Interest Income Recognized		Interest Income Reversed		Interest Income Recognized
	(in thousands)
Commercial business:
Commercial and industrial	$	(16)	$	308	$	(56)	$	60
Owner-occupied CRE	—		60		—		46
Non-owner occupied CRE	—		67		(34)		—
Total commercial business	(16)		435		(90)		106

Real estate construction and land development:
One-to-four family residential	—		—		(3)		23


Consumer	—		47		—		6
Total	$	(16)	$	482	$	(93)	$	135

Financing Receivable, Past Due [Table Text Block]

The amortized cost of past due loans as of June 30, 2020 were as follows:


	June 30, 2020
	30-89 Days		90 Days or Greater		Total Past Due		Current		Loan Receivable
	(In thousands)
Commercial business:
Commercial and industrial	$	4,273	$	5,300	$	9,573	$	783,644	$	793,217
SBA PPP	—		—		—		856,490		856,490
Owner-occupied CRE	46		441		487		837,816		838,303
Non-owner occupied CRE	—		111		111		1,351,664		1,351,775
Total commercial business	4,319		5,852		10,171		3,829,614		3,839,785
One-to-four family residential	140		—		140		132,406		132,546
Real estate construction and land development:
One-to-four family residential	—		—		—		108,821		108,821
Five or more family residential and commercial properties	—		—		—		197,163		197,163
Total real estate construction and land development	—		—		—		305,984		305,984
Consumer	687		4		691		387,327		388,018
Total	$	5,146	$	5,856	$	11,002	$	4,655,331	$	4,666,333

The following table presents the amortized cost of past due loans as of December 31, 2019 in accordance with disclosure requirements prior to CECL Adoption:


	December 31, 2019
	30-89 Days		90 Days or Greater		Total Past Due		Current		Total		PCI Loans		Loan Receivable
	(In thousands)
Commercial business:
Commercial and industrial	$	10,479	$	6,772	$	17,251	$	832,601	$	849,852	$	2,368	$	852,220
Owner-occupied CRE	607		806		1,413		798,907		800,320		4,914		805,234
Non-owner occupied CRE	554		1,843		2,397		1,280,891		1,283,288		5,491		1,288,779
Total commercial business	11,640		9,421		21,061		2,912,399		2,933,460		12,773		2,946,233
One-to-four family residential	797		—		797		127,288		128,085		3,575		131,660
Real estate construction and land development:
One-to-four family residential	1,516		—		1,516		102,780		104,296		—		104,296
Five or more family residential and commercial properties	—		—		—		170,350		170,350		—		170,350
Total real estate construction and land development	1,516		—		1,516		273,130		274,646		—		274,646
Consumer	2,071		—		2,071		411,507		413,578		1,762		415,340
Total	$	16,024	$	9,421	$	25,445	$	3,724,324	$	3,749,769	$	18,110	$	3,767,879

Loans and Lease Receivable Collateral for Secured Borrowings [Table Text Block]

The types of collateral securing individually evaluated loans for ACL on loans, and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of June 30, 2020, were as follows:


	Loans receivable⁽¹⁾ at June 30, 2020
	CRE		Farmland		Single Family Residence		Equipment or Accounts Receivable		Total
	(In thousands)
Commercial business:
Commercial and industrial	$	2,013	$	19,617	$	1,394	$	1,788	$	24,812
Owner-occupied CRE	3,042		—		—		—		3,042
Non-owner occupied CRE	5,215		—		—		—		5,215
Total commercial business	10,270		19,617		1,394		1,788		33,069
One-to-four family residential	—		—		16		—		16
Real estate construction and land development:
One-to-four family residential	—		—		1,751		—		1,751



Total	$	10,270	$	19,617	$	3,161	$	1,788	$	34,836

⁽¹⁾ Balances represent the amortized cost of loans receivable at date indicated. If multiple collateral secured the loan, the entire loan receivable balance is presented in the primary collateral category, which generally represents the majority of the collateral balance.

Impaired Financing Receivables [Table Text Block]

Impaired loans include nonaccrual loans, performing TDR loans, and other loans with a specific valuation allowance, excluding PCI loans. The amortized cost of impaired loans as of December 31, 2019 are set forth in the following table:


	December 31, 2019
	Amortized Cost With No Specific Valuation Allowance		Amortized Cost With Specific Valuation Allowance		Total Amortized Cost		Unpaid Contractual Principal Balance		Related Specific Valuation Allowance
	(In thousands)
Commercial business:
Commercial and industrial	$	30,179	$	13,629	$	43,808	$	45,585	$	1,372
Owner-occupied CRE	3,921		2,415		6,336		6,764		426
Non-owner occupied CRE	5,309		1,015		6,324		6,458		146
Total commercial business	39,409		17,059		56,468		58,807		1,944
One-to-four family residential	—		215		215		223		56
Real estate construction and land development:
One-to-four family residential	237		—		237		237		—


Consumer	—		561		561		570		143
Total	$	39,646	$	17,835	$	57,481	$	59,837	$	2,143

The average amortized cost of impaired loans for the three and six months ended June 30, 2019 are set forth in the following table:


	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(In thousands)
Commercial business:
Commercial and industrial	$	25,215	$	24,422
Owner-occupied CRE	6,178		6,058
Non-owner occupied CRE	8,221		7,506
Total commercial business	39,614		37,986
One-to-four family residential	248		259
Real estate construction and land development:
One-to-four family residential	858		872


Consumer	613		584
Total	$	41,333	$	39,701

Recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs

The amortized cost and related ACL on loans of performing and nonaccrual TDR loans as of June 30, 2020 and December 31, 2019 were as follows:


	June 30, 2020						December 31, 2019
	Performing TDR loans		Nonaccrual TDR loans		Performing TDR loans		Nonaccrual TDR loans
	(In thousands)
TDR loans	$	20,687	$	20,907	$	14,469	$	26,338
ACL on TDR loans	1,624		371		1,259		218

Loans Receivable

Loans that were modified as TDR loans during the three and six months ended June 30, 2020 and 2019 are set forth in the following tables:


	Three months ended June 30,
	2020				2019
	Number of Contracts	Amortized Cost ⁽¹⁾		Number of Contracts	Amortized Cost ⁽¹⁾
	(Dollars in thousands)
Commercial business:
Commercial and industrial	31	$	11,849	14	$	8,626
Owner-occupied CRE	4	1,657		1	710
Non-owner occupied CRE	2	398		2	3,554
Total commercial business	37	13,904		17	12,890
Real estate construction and land development:
One-to-four family residential	4	1,751		—	—


Consumer	9	82		3	53
Total	50	$	15,737	20	$	12,943


	Six Months Ended June 30,
	2020				2019
	Number of Contracts ⁽²⁾	Amortized Cost ^{(1) (2)}		Number of Contracts ⁽²⁾	Amortized Cost ^{(1) (2)}
	(Dollars in thousands)
Commercial business:
Commercial and industrial	36	$	13,893	20	$	18,061
Owner-occupied CRE	6	3,067		3	1,628
Non-owner occupied CRE	3	2,143		3	5,642
Total commercial business	45	19,103		26	25,331
Real estate construction and land development:
One-to-four family residential	4	1,751		1	560


Consumer	14	173		8	166
Total TDR loans	63	$	21,027	35	$	26,057

⁽¹⁾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 modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification).

⁽²⁾ 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 six months ended June 30, 2020 and 2019.

Troubled debt restructuring loans, subsequently defaulted

Loans that were modified during the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2020 and 2019 are set forth in the following tables:


	Three months ended June 30,
	2020				2019
	Number of Contracts	Amortized Cost		Number of Contracts	Amortized Cost
	(Dollars in thousands)
Commercial business:
Commercial and industrial	2	$	302	6	$	1,278
Owner-occupied CRE	1	445		1	399
Non-owner occupied CRE	1	280		—	—
Total commercial business	4	$	1,027	7	$	1,677
Real estate construction and land development:
One-to-four family residential	—	—		1	560



Total	4	$	1,027	8	$	2,237


	Six Months Ended June 30,
	2020				2019
	Number of Contracts ⁽¹⁾	Amortized Cost ⁽¹⁾		Number of Contracts ⁽¹⁾	Amortized Cost ⁽¹⁾
	(Dollars in thousands)
Commercial business:
Commercial and industrial	4	$	2,155	6	$	1,278
Owner-occupied CRE	1	445		2	1,109
Non-owner occupied CRE	2	398		1	586
Total commercial business	7	2,998		9	2,973
Real estate construction and land development:
One-to-four family residential	—	—		1	560



Total	7	$	2,998	10	$	3,533

(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 six months ended June 30, 2020 and 2019.

Purchased impaired loans

The following table reflects the outstanding principal balance and recorded investment of PCI loans at December 31, 2019:


	December 31, 2019
	Outstanding Principal		Recorded Investment
	(In thousands)
Commercial business:
Commercial and industrial	$	4,439	$	2,368
Owner-occupied CRE	4,925		4,914
Non-owner occupied CRE	7,028		5,491
Total commercial business	16,392		12,773
One-to-four family residential	3,095		3,575




Consumer	1,463		1,762
Gross PCI loans	$	20,950	$	18,110

Schedule of Impaired Purchased Loans Accretable Yield [Table Text Block]

The following table summarizes the accretable yield on the PCI loans for the three and six months ended June 30, 2019:


	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
	(In thousands)
Balance at the beginning of the period	$	8,460	$	9,493
Accretion	(513)		(1,094)
Disposal and other	(198)		(650)
Reclassification from nonaccretable difference	823		823
Balance at the end of the period	$	8,572	$	8,572

Troubled debt restructurings on financing receivables

Loans that were modified as TDR loans during the three and six months ended June 30, 2020 and 2019 are set forth in the following tables:


	Three months ended June 30,
	2020				2019
	Number of Contracts	Amortized Cost ⁽¹⁾		Number of Contracts	Amortized Cost ⁽¹⁾
	(Dollars in thousands)
Commercial business:
Commercial and industrial	31	$	11,849	14	$	8,626
Owner-occupied CRE	4	1,657		1	710
Non-owner occupied CRE	2	398		2	3,554
Total commercial business	37	13,904		17	12,890
Real estate construction and land development:
One-to-four family residential	4	1,751		—	—


Consumer	9	82		3	53
Total	50	$	15,737	20	$	12,943


	Six Months Ended June 30,
	2020				2019
	Number of Contracts ⁽²⁾	Amortized Cost ^{(1) (2)}		Number of Contracts ⁽²⁾	Amortized Cost ^{(1) (2)}
	(Dollars in thousands)
Commercial business:
Commercial and industrial	36	$	13,893	20	$	18,061
Owner-occupied CRE	6	3,067		3	1,628
Non-owner occupied CRE	3	2,143		3	5,642
Total commercial business	45	19,103		26	25,331
Real estate construction and land development:
One-to-four family residential	4	1,751		1	560


Consumer	14	173		8	166
Total TDR loans	63	$	21,027	35	$	26,057