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Loans Receivable (Tables)
12 Months Ended
Dec. 31, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of loans receivable
The amortized cost of loans receivable, net of ACL on loans at December 31, 2020 and December 31, 2019 consisted of the following portfolio segments and classes:
December 31, 2020December 31, 2019
(In thousands)
Commercial business:
Commercial and industrial$733,098 $852,220 
SBA PPP715,121 — 
Owner-occupied CRE856,684 805,234 
Non-owner occupied CRE1,410,303 1,288,779 
Total commercial business3,715,206 2,946,233 
Residential real estate
122,756 131,660 
December 31, 2020December 31, 2019
(In thousands)
Real estate construction and land development:
Residential
78,259 104,296 
Commercial and multifamily
227,454 170,350 
Total real estate construction and land development305,713 274,646 
Consumer324,972 415,340 
Loans receivable4,468,647 3,767,879 
Allowance for credit losses on loans(70,185)(36,171)
 Loans receivable, net$4,398,462 $3,731,708 
Balances included in amortized cost of Loans receivable:
Unamortized net discount on acquired loans$6,575 $8,371 
Unamortized net deferred (fee) cost$(15,458)$2,441 
Loans receivable by credit quality indicator
The following table presents the amortized cost of loans receivable by risk grade as of December 31, 2020:

Term Loans
Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted to Term Loans (1)
Loans Receivable
20202019201820172016Prior
(In thousands)
Commercial business:
Commercial and industrial
Pass$118,971 $127,919 $70,766 $44,231 $37,658 $95,958 $121,440 $819 $617,762 
SM14,430 9,162 10,878 4,171 5,700 3,579 11,790 814 60,524 
SS2,199 11,835 3,416 9,348 1,052 7,651 15,484 3,827 54,812 
Total135,600 148,916 85,060 57,750 44,410 107,188 148,714 5,460 733,098 
SBA PPP
Pass715,121 — — — — — — — 715,121 
Total715,121 — — — — — — — 715,121 
Owner-occupied CRE
Pass89,224 167,095 94,830 80,138 74,902 254,864 — — 761,053 
SM6,146 4,540 16,386 11,231 5,464 12,105 — — 55,872 
SS— — 114 7,320 3,313 29,012 — — 39,759 
Total95,370 171,635 111,330 98,689 83,679 295,981 — — 856,684 
Term Loans
Amortized Cost Basis by Origination Year
Revolving Loans
Revolving Loans Converted to Term Loans (1)
Loans Receivable
20202019201820172016Prior
(In thousands)
Non-owner occupied CRE
Pass197,548 173,153 148,830 172,438 240,614 406,817 — — 1,339,400 
SM— 1,979 357 2,448 6,210 3,539 — — 14,533 
SS— — 3,623 — 35,455 17,292 — — 56,370 
Total197,548 175,132 152,810 174,886 282,279 427,648 — — 1,410,303 
Total commercial business
Pass1,120,864 468,167 314,426 296,807 353,174 757,639 121,440 819 3,433,336 
SM20,576 15,681 27,621 17,850 17,374 19,223 11,790 814 130,929 
SS2,199 11,835 7,153 16,668 39,820 53,955 15,484 3,827 150,941 
Total1,143,639 495,683 349,200 331,325 410,368 830,817 148,714 5,460 3,715,206 
Residential real estate
Pass30,141 41,829 15,730 10,362 7,322 16,825 — — 122,209 
SS— — — 59 — 488 — — 547 
Total30,141 41,829 15,730 10,421 7,322 17,313 — — 122,756 
Real estate construction and land development:
Residential
Pass33,801 36,697 2,725 1,097 971 1,042 — — 76,333 
SS— — — 1,926 — — — — 1,926 
Total33,801 36,697 2,725 3,023 971 1,042 — — 78,259 
Commercial and multifamily
Pass27,423 151,020 38,682 5,660 689 1,407 — — 224,881 
SM67 1,011 — — — 29 — — 1,107 
SS572 450 — — — 444 — — 1,466 
Total28,062 152,481 38,682 5,660 689 1,880 — — 227,454 
Total real estate construction and land development
Pass61,224 187,717 41,407 6,757 1,660 2,449 — — 301,214 
SM67 1,011 — — — 29 — — 1,107 
SS572 450 — 1,926 — 444 — — 3,392 
Total61,863 189,178 41,407 8,683 1,660 2,922 — — 305,713 
Consumer
Pass43,742 77,083 53,195 30,559 13,443 15,453 87,547 315 321,337 
SS34 404 684 648 420 1,319 78 48 3,635 
Total43,776 77,487 53,879 31,207 13,863 16,772 87,625 363 324,972 
Loans receivable
Pass1,255,971 774,796 424,758 344,485 375,599 792,366 208,987 1,134 4,178,096 
SM20,643 16,692 27,621 17,850 17,374 19,252 11,790 814 132,036 
SS2,805 12,689 7,837 19,301 40,240 56,206 15,562 3,875 158,515 
Total$1,279,419 $804,177 $460,216 $381,636 $433,213 $867,824 $236,339 $5,823 $4,468,647 
(1) Represents loans receivable balance at December 31, 2020 which was converted from a revolving loan to an amortizing loan during the year ended December 31, 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
PassSpecial MentionSubstandardDoubtful/LossTotal
(In thousands)
Commercial business:
Commercial and industrial$771,559 $16,340 $64,321 $— $852,220 
Owner-occupied CRE765,411 24,659 15,164 — 805,234 
Non-owner occupied CRE1,274,513 5,662 8,604 — 1,288,779 
Total commercial business2,811,483 46,661 88,089 — 2,946,233 
Residential real estate
130,818 — 842 — 131,660 
Real estate construction and land development:
Residential
101,973 1,516 807 — 104,296 
Commercial and multifamily169,668 682 — — 170,350 
Total real estate construction and land development271,641 2,198 807 — 274,646 
Consumer411,141 — 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:
December 31, 2020December 31,
2019
Nonaccrual without ACLNonaccrual with ACLTotal Nonaccrual
Nonaccrual (1)
(In thousands)
Commercial business:
Commercial and industrial$22,039 $9,208 $31,247 $33,544 
Owner-occupied CRE4,693 13,700 18,393 4,714 
Non-owner occupied CRE3,424 3,722 7,146 6,062 
Total commercial business30,156 26,630 56,786 44,320 
Residential real estate
67 117 184 19 
Real estate construction and land development:
Commercial and multifamily
572 450 1,022 — 
Consumer31 69 100 186 
Total$30,826 $27,266 $58,092 $44,525 
(1) Presentation of December 31, 2019 balances is in accordance with disclosure requirements prior to CECL Adoption.
The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full of previously classified nonaccrual loans during the following periods:
December 31, 2020
December 31, 2019
Interest Income ReversedInterest Income RecognizedInterest Income ReversedInterest Income Recognized
(In thousands)
Commercial business:
Commercial and industrial$(95)$434 $(552)$147 
Owner-occupied CRE(238)89 — 228 
Non-owner occupied CRE(208)67 (32)181 
Total commercial business(541)590 (584)556 
Residential real estate
(2)— — 
Real estate construction and land development:
Residential
— — (3)33 
Commercial and multifamily
(11)— — — 
Total real estate construction and land development(11)— (3)33 
Consumer(1)47 — 
Total$(555)$639 $(587)$595 
Past due financing receivables The amortized cost of past due loans as of December 31, 2020 were as follows:
December 31, 2020
30-89 Days90 Days 
or Greater
Total Past 
Due
CurrentLoans Receivable
(In thousands)
Commercial business:
Commercial and industrial$4,621 $8,082 $12,703 $720,395 $733,098 
SBA PPP— — — 715,121 715,121 
Owner-occupied CRE991 403 1,394 855,290 856,684 
Non-owner occupied CRE412 1,970 2,382 1,407,921 1,410,303 
Total commercial business6,024 10,455 16,479 3,698,727 3,715,206 
Residential real estate
765 16 781 121,975 122,756 
Real estate construction and land development:
Residential
— — — 78,259 78,259 
Commercial and multifamily
2,225 — 2,225 225,229 227,454 
Total real estate construction and land development2,225 — 2,225 303,488 305,713 
Consumer1,407 30 1,437 323,535 324,972 
Total$10,421 $10,501 $20,922 $4,447,725 $4,468,647 
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 Days90 Days or GreaterTotal Past 
Due
CurrentTotalPCI LoansLoans Receivable
(In thousands)
Commercial business:
Commercial and industrial$10,479 $6,772 $17,251 $832,601 $849,852 $2,368 $852,220 
Owner-occupied CRE607 806 1,413 798,907 800,320 4,914 805,234 
Non-owner occupied CRE554 1,843 2,397 1,280,891 1,283,288 5,491 1,288,779 
Total commercial business11,640 9,421 21,061 2,912,399 2,933,460 12,773 2,946,233 
Residential real estate
797 — 797 127,288 128,085 3,575 131,660 
Real estate construction and land development:
Residential
1,516 — 1,516 102,780 104,296 — 104,296 
Commercial and multifamily
— — — 170,350 170,350 — 170,350 
Total real estate construction and land development1,516 — 1,516 273,130 274,646 — 274,646 
Consumer2,071 — 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
The type of collateral securing loans individually evaluated for credit losses and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of December 31, 2020 were as follows:
Loans receivable(1)
CREFarmlandResidential Real EstateEquipment or Accounts ReceivableOtherTotal
(In thousands)
Commercial business:
Commercial and industrial$1,893 $18,738 $584 $774 $631 $22,620 
Owner-occupied CRE4,693 — — — — 4,693 
Non-owner occupied CRE3,424 — — — — 3,424 
Total commercial business10,010 18,738 584 774 631 30,737 
Residential real estate
— — 67 — — 67 
Real estate construction and land development:
Commercial and multifamily
572 — — — — 572 
Consumer— — 30 — — 30 
Total$10,582 $18,738 $681 $774 $631 $31,406 
(1) Balances represent the amortized cost of the loan. If multiple collateral sources secure the loan, the entire balance is presented in the primary collateral category, which generally represents the majority of the collateral balance.
The amortized cost of impaired loans as of December 31, 2019 is 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
Outstanding
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 CRE3,921 2,415 6,336 6,764 426 
Non-owner occupied CRE5,309 1,015 6,324 6,458 146 
Total commercial business39,409 17,059 56,468 58,807 1,944 
Residential real estate
— 215 215 223 56 
Real estate construction and land development:
Residential
237 — 237 237 — 
Consumer— 561 561 570 143 
Total$39,646 $17,835 $57,481 $59,837 $2,143 
Schedule of average recorded investment impaired loans including restructuring loans
The average amortized cost of impaired loans for the year ended December 31, 2019 and 2018 are set forth in the following table:
Year Ended December 31,
20192018
(In thousands)
Commercial business:
Commercial and industrial$31,905 $16,773 
Owner-occupied CRE6,008 11,313 
Non-owner occupied CRE7,751 9,463 
Total commercial business45,664 37,549 
Residential real estate
242 290 
Real estate construction and land development:
Residential
682 1,091 
Commercial and multifamily
— 129 
Total real estate construction and land development682 1,220 
Consumer576 430 
Total$47,164 $39,489 
Troubled debt restructurings on financing receivables
Loans that were modified as TDR loans are set forth in the following table for the periods indicated:
Year Ended December 31,
202020192018
Number of
Contracts (2)
Amortized Cost (1) (2)
Number of
Contracts (2)
Amortized Cost (1) (2)
Number of
Contracts (2)
Amortized Cost (1) (2)
(Dollars in thousands)
Commercial business:
Commercial and industrial75$36,118 44$31,122 31$16,132 
Owner-occupied CRE1419,326 41,695 42,521 
Non-owner occupied CRE25,728 2,208 32,944 
Total commercial business9881,172 5235,025 3821,597 
Residential real estate
122 — — 
Real estate construction and land development:
Residential
41,926 1237 2665 
Commercial and multifamily
450 — — — — 
Total real estate construction and land development2,376 237 665 
Consumer481,198 12157 13243 
Total152$84,768 65$35,419 53$22,505 
(1)Number of contracts and amortized cost represent loans which have balances as of period end, net of subsequent payments after modifications. Certain modified loans may have been paid-down or charged-off during the years ended December 31, 2020, 2019 and 2018.
(2) 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).
Troubled debt restructuring loans, subsequently defaulted
The following table presents loans that were modified in a troubled debt restructure and subsequently defaulted within twelve months from the modification date during the periods indicated:
Year Ended December 31,
202020192018
Number of
Contracts (1)
Amortized Cost (1)
Number of
Contracts (1)
Amortized Cost (1)
Number of
Contracts (1)
Amortized Cost (1)
(Dollars in thousands)
Commercial business:
Commercial and industrial$2,136 13 $12,854 $1,890 
Owner-occupied CRE1,369 1,142 65 
Non-owner occupied CRE1,811 52 — — 
Total commercial business5,316 1714,048 1955
Year Ended December 31,
202020192018
Number of
Contracts (1)
Amortized Cost (1)
Number of
Contracts (1)
Amortized Cost (1)
Number of
Contracts (1)
Amortized Cost (1)
(Dollars in thousands)
Real estate construction and land development:
Residential
— — — — 665 
Total8$5,316 17$14,048 $2,620 
(1)Number of contracts and amortized cost represent loans which have balances as of period end, net of subsequent payments after modifications. Certain modified loans may have been paid-down or charged-off during the years ended December 31, 2020, 2019 and 2018.
Purchased impaired loans The following table reflects the outstanding principal balance and amortized cost of PCI loans at December 31, 2019:
December 31, 2019
Outstanding PrincipalAmortized Cost
(In thousands)
Commercial business:
Commercial and industrial$4,439 $2,368 
Owner-occupied CRE4,925 4,914 
Non-owner occupied CRE7,028 5,491 
Total commercial business16,392 12,773 
Residential real estate
3,095 3,575 
Consumer1,463 1,762 
Total$20,950 $18,110 
Schedule of impaired purchased loans accretable yield The following table summarizes the accretable yield on the PCI loans during the periods indicated:
Year Ended December 31,
20192018
(In thousands)
Balance at the beginning of the year$9,493 $11,224 
Accretion(1,936)(2,674)
Disposal and other(1,600)(2,871)
Reclassification from nonaccretable difference884 3,814 
Balance at the end of the year$6,841 $9,493 
Activity in related party loans Activity in related party loans during the periods indicated was as follows:
Year Ended December 31,
202020192018
(In thousands)
Balance outstanding at the beginning of year$8,144 $8,367 $8,460 
Principal additions199 — 211 
Principal reductions(649)(223)(304)
Balance outstanding at the end of year$7,694 $8,144 $8,367 
Mortgage banking activities
The following table presents information concerning the origination and sale of the Bank's residential real estate loans and the gains from their sale:
 Year Ended December 31,
 202020192018
 (In thousands)
Residential real estate:
Originated (1)
$191,207 $150,030 $121,998 
Sold137,580 68,238 76,834 
Gain on sale of loans, net (2)
5,044 2,159 2,403 
(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 residential real estate loans at December 31, 2020 and December 31, 2019 were as follows:
 December 31, 2020December 31, 2019
 (In thousands)
Commitments to sell residential real estate loans$18,127 $8,815 
Commitments to fund residential real estate loans (at interest rates approximating market rates) for portfolio or for sale:
Fixed rate19,640 15,509 
Variable or adjustable rate98 3,111 
Total commitments to fund residential real estate loans$19,738 $18,620 
Details of SBNA loans serviced
Details of loans serviced for others are as follows:
 December 31, 2020December 31, 2019
 (In thousands)
Loans serviced for others with participating interest, gross loan balance$32,131 $40,616 
Loans serviced for others with participating interest, participation balance owned by Bank (1)
7,842 9,850 
(1) Included in the balance of loans receivable on the Consolidated Statements of Financial Condition.