XML 37 R27.htm IDEA: XBRL DOCUMENT v3.19.1
LOANS AND LEASES (Tables)
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Schedule of composition of loans categorized by the type of loan

Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2019 and December 31, 2018, consisted of the following:

 

 

 

 

 

 

 

% of

 

 

 

 

 

 

% of

 

 

 

March 31,

 

 

Totals

 

 

December 31,

 

 

Total

 

(Dollars in thousands)

 

2019

 

 

Loans

 

 

2018

 

 

Loans

 

Residential mortgage

 

$

569,304

 

 

 

14.61

%

 

$

571,570

 

 

 

14.55

%

Multifamily mortgage

 

 

1,104,406

 

 

 

28.34

 

 

 

1,135,805

 

 

 

28.92

 

Commercial mortgage

 

 

705,221

 

 

 

18.09

 

 

 

702,165

 

 

 

17.88

 

Commercial loans (including equipment financing)

 

 

1,406,215

 

 

 

36.08

 

 

 

1,397,057

 

 

 

35.57

 

Home equity lines of credit

 

 

57,639

 

 

 

1.48

 

 

 

62,191

 

 

 

1.58

 

Consumer loans, including fixed rate home equity loans

 

 

54,276

 

 

 

1.39

 

 

 

58,678

 

 

 

1.49

 

Other loans

 

 

355

 

 

 

0.01

 

 

 

465

 

 

 

0.01

 

Total loans

 

$

3,897,416

 

 

 

100.00

%

 

$

3,927,931

 

 

 

100.00

%

In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal Call Report codes.  The following portfolio classes have been identified as of March 31, 2019 and December 31, 2018:

 

 

 

 

 

 

 

% of

 

 

 

 

 

 

% of

 

 

 

March 31,

 

 

Totals

 

 

December 31,

 

 

Total

 

(Dollars in thousands)

 

2019

 

 

Loans

 

 

2018

 

 

Loans

 

Primary residential mortgage

 

$

598,299

 

 

 

15.37

%

 

$

600,891

 

 

 

15.31

%

Home equity lines of credit

 

 

57,636

 

 

 

1.48

 

 

 

62,191

 

 

 

1.58

 

Junior lien loan on residence

 

 

7,429

 

 

 

0.19

 

 

 

7,418

 

 

 

0.19

 

Multifamily property

 

 

1,104,406

 

 

 

28.36

 

 

 

1,135,805

 

 

 

28.94

 

Owner-occupied commercial real estate

 

 

251,948

 

 

 

6.47

 

 

 

261,193

 

 

 

6.65

 

Investment commercial real estate

 

 

1,005,724

 

 

 

25.83

 

 

 

1,001,918

 

 

 

25.53

 

Commercial and industrial

 

 

633,590

 

 

 

16.27

 

 

 

616,838

 

 

 

15.72

 

Lease financing

 

 

175,517

 

 

 

4.51

 

 

 

172,643

 

 

 

4.40

 

Farmland/agricultural production

 

 

145

 

 

 

—

 

 

 

149

 

 

 

0.01

 

Commercial construction loans

 

 

86

 

 

 

—

 

 

 

86

 

 

 

0.01

 

Consumer and other loans

 

 

59,138

 

 

 

1.52

 

 

 

65,180

 

 

 

1.66

 

Total loans

 

$

3,893,918

 

 

 

100.00

%

 

$

3,924,312

 

 

 

100.00

%

Net deferred costs

 

 

3,498

 

 

 

 

 

 

 

3,619

 

 

 

 

 

Total loans including net deferred costs

 

$

3,897,416

 

 

 

 

 

 

$

3,927,931

 

 

 

 

 
Schedule of loan balances by portfolio segment, based on impairment method, and the corresponding balances in the allowance for loan losses

The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of March 31, 2019 and December 31, 2018:

 

 

 

March 31, 2019

 

 

 

Total

 

 

Ending ALLL

 

 

Total

 

 

Ending ALLL

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

Attributable

 

 

Loans

 

 

Attributable

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

To Loans

 

 

Collectively

 

 

To Loans

 

 

 

 

 

 

 

 

 

 

 

Evaluated

 

 

Individually

 

 

Evaluated

 

 

Collectively

 

 

 

 

 

 

Total

 

 

 

For

 

 

Evaluated for

 

 

For

 

 

Evaluated for

 

 

Total

 

 

Ending

 

(In thousands)

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

Loans

 

 

ALLL

 

Primary residential mortgage

 

$

9,131

 

 

$

258

 

 

$

589,168

 

 

$

3,219

 

 

$

598,299

 

 

$

3,477

 

Home equity lines of credit

 

 

214

 

 

 

—

 

 

 

57,422

 

 

 

152

 

 

 

57,636

 

 

 

152

 

Junior lien loan on residence

 

 

33

 

 

 

—

 

 

 

7,396

 

 

 

15

 

 

 

7,429

 

 

 

15

 

Multifamily property

 

 

—

 

 

 

—

 

 

 

1,104,406

 

 

 

5,768

 

 

 

1,104,406

 

 

 

5,768

 

Owner-occupied commercial real estate

 

 

1,514

 

 

 

—

 

 

 

250,434

 

 

 

2,534

 

 

 

251,948

 

 

 

2,534

 

Investment commercial real estate

 

 

18,293

 

 

 

—

 

 

 

987,431

 

 

 

14,410

 

 

 

1,005,724

 

 

 

14,410

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

633,590

 

 

 

10,185

 

 

 

633,590

 

 

 

10,185

 

Lease financing

 

 

—

 

 

 

—

 

 

 

175,517

 

 

 

1,803

 

 

 

175,517

 

 

 

1,803

 

Farmland/agricultural production

 

 

—

 

 

 

—

 

 

 

145

 

 

 

2

 

 

 

145

 

 

 

2

 

Commercial construction loans

 

 

—

 

 

 

—

 

 

 

86

 

 

 

1

 

 

 

86

 

 

 

1

 

Consumer and other loans

 

 

—

 

 

 

—

 

 

 

59,138

 

 

 

306

 

 

 

59,138

 

 

 

306

 

Total ALLL

 

$

29,185

 

 

$

258

 

 

$

3,864,733

 

 

$

38,395

 

 

$

3,893,918

 

 

$

38,653

 

 

 

 

December 31, 2018

 

 

 

Total

 

 

Ending ALLL

 

 

Total

 

 

Ending ALLL

 

 

 

 

 

 

 

 

 

 

 

Loans

 

 

Attributable

 

 

Loans

 

 

Attributable

 

 

 

 

 

 

 

 

 

 

 

Individually

 

 

To Loans

 

 

Collectively

 

 

To Loans

 

 

 

 

 

 

 

 

 

 

 

Evaluated

 

 

Individually

 

 

Evaluated

 

 

Collectively

 

 

 

 

 

 

Total

 

 

 

For

 

 

Evaluated for

 

 

For

 

 

Evaluated for

 

 

Total

 

 

Ending

 

(In thousands)

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

Impairment

 

 

Loans

 

 

ALLL

 

Primary residential mortgage

 

$

9,518

 

 

$

262

 

 

$

591,373

 

 

$

3,244

 

 

$

600,891

 

 

$

3,506

 

Home equity lines of credit

 

 

255

 

 

 

—

 

 

 

61,936

 

 

 

164

 

 

 

62,191

 

 

 

164

 

Junior lien loan on residence

 

 

36

 

 

 

—

 

 

 

7,382

 

 

 

15

 

 

 

7,418

 

 

 

15

 

Multifamily property

 

 

1,262

 

 

 

—

 

 

 

1,134,543

 

 

 

5,959

 

 

 

1,135,805

 

 

 

5,959

 

Owner-occupied commercial real estate

 

 

1,574

 

 

 

—

 

 

 

259,619

 

 

 

2,614

 

 

 

261,193

 

 

 

2,614

 

Investment commercial real estate

 

 

18,655

 

 

 

—

 

 

 

983,263

 

 

 

14,248

 

 

 

1,001,918

 

 

 

14,248

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

616,838

 

 

 

9,839

 

 

 

616,838

 

 

 

9,839

 

Lease financing

 

 

—

 

 

 

—

 

 

 

172,643

 

 

 

1,772

 

 

 

172,643

 

 

 

1,772

 

Farmland/agricultural production

 

 

—

 

 

 

—

 

 

 

149

 

 

 

2

 

 

 

149

 

 

 

2

 

Commercial construction loans

 

 

—

 

 

 

—

 

 

 

86

 

 

 

1

 

 

 

86

 

 

 

1

 

Consumer and other loans

 

 

—

 

 

 

—

 

 

 

65,180

 

 

 

384

 

 

 

65,180

 

 

 

384

 

Total ALLL

 

$

31,300

 

 

$

262

 

 

$

3,893,012

 

 

$

38,242

 

 

$

3,924,312

 

 

$

38,504

 
Schedule of loans individually evaluated for impairment

The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2019 and December 31, 2018 (The average impaired loans on the following tables represent year to date impaired loans.):

 

 

 

March 31, 2019

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

Principal

 

 

Recorded

 

 

Specific

 

 

Impaired

 

(In thousands)

 

Balance

 

 

Investment

 

 

Reserves

 

 

Loans

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary residential mortgage

 

$

9,314

 

 

$

8,126

 

 

$

—

 

 

$

8,304

 

Owner-occupied commercial real estate

 

 

2,714

 

 

 

1,514

 

 

 

—

 

 

 

1,535

 

Investment commercial real estate

 

 

20,041

 

 

 

18,293

 

 

 

—

 

 

 

18,434

 

Home equity lines of credit

 

 

216

 

 

 

214

 

 

 

—

 

 

 

214

 

Junior lien loan on residence

 

 

100

 

 

 

33

 

 

 

—

 

 

 

34

 

Total loans with no related allowance

 

$

32,385

 

 

$

28,180

 

 

$

—

 

 

$

28,521

 

With related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary residential mortgage

 

$

1,005

 

 

$

1,005

 

 

$

258

 

 

$

1,052

 

Total loans with related allowance

 

$

1,005

 

 

$

1,005

 

 

$

258

 

 

$

1,052

 

Total loans individually evaluated for Impairment

 

$

33,390

 

 

$

29,185

 

 

$

258

 

 

$

29,573

 

 

 

 

December 31, 2018

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

Principal

 

 

Recorded

 

 

Specific

 

 

Impaired

 

(In thousands)

 

Balance

 

 

Investment

 

 

Reserves

 

 

Loans

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary residential mortgage

 

$

9,789

 

 

$

8,502

 

 

$

—

 

 

$

8,042

 

Owner-occupied commercial real estate

 

 

2,741

 

 

 

1,574

 

 

 

—

 

 

 

2,025

 

Investment commercial real estate

 

 

20,179

 

 

 

18,655

 

 

 

—

 

 

 

13,999

 

Home equity lines of credit

 

 

257

 

 

 

255

 

 

 

—

 

 

 

123

 

Junior lien loan on residence

 

 

102

 

 

 

36

 

 

 

—

 

 

 

45

 

Multifamily property

 

 

1,262

 

 

 

1,262

 

 

 

—

 

 

 

105

 

Total loans with no related allowance

 

$

34,330

 

 

$

30,284

 

 

$

—

 

 

$

24,339

 

With related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primary residential mortgage

 

$

1,016

 

 

$

1,016

 

 

$

262

 

 

$

1,144

 

Total loans with related allowance

 

$

1,016

 

 

$

1,016

 

 

$

262

 

 

$

1,144

 

Total loans individually evaluated for impairment

 

$

35,346

 

 

$

31,300

 

 

$

262

 

 

$

25,483

 
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual

The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2019 and December 31, 2018:

 

 

 

March 31, 2019

 

 

 

 

 

 

 

Loans Past Due

 

 

 

 

 

 

 

Over 90 Days

 

 

 

 

 

 

 

And Still

 

(In thousands)

 

Nonaccrual

 

 

Accruing Interest

 

Primary residential mortgage

 

$

4,857

 

 

$

—

 

Home equity lines of credit

 

 

195

 

 

 

—

 

Junior lien loan on residence

 

 

33

 

 

 

—

 

Owner-occupied commercial real estate

 

 

1,514

 

 

 

—

 

Investment commercial real estate

 

 

18,293

 

 

 

—

 

Total

 

$

24,892

 

 

$

—

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

Loans Past Due

 

 

 

 

 

 

 

Over 90 Days

 

 

 

 

 

 

 

And Still

 

(In thousands)

 

Nonaccrual

 

 

Accruing Interest

 

Primary residential mortgage

 

$

5,215

 

 

$

—

 

Home equity lines of credit

 

 

235

 

 

 

—

 

Junior lien loan on residence

 

 

36

 

 

 

—

 

Owner-occupied commercial real estate

 

 

1,574

 

 

 

—

 

Investment commercial real estate

 

 

18,655

 

 

 

—

 

Total

 

$

25,715

 

 

$

—

 
Schedule of aging of past due loans

The following tables present the aging of the recorded investment in past due loans as of March 31, 2019 and December 31, 2018 by class of loans, excluding nonaccrual loans:

 

 

 

March 31, 2019

 

 

 

30-59

 

 

60-89

 

 

Greater Than

 

 

 

 

 

 

 

Days

 

 

Days

 

 

90 Days

 

 

Total

 

(In thousands)

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

Primary residential mortgage

 

$

656

 

 

$

205

 

 

$

—

 

 

$

861

 

Multifamily property

 

 

1,191

 

 

 

—

 

 

 

—

 

 

 

1,191

 

Owner-occupied commercial real estate

 

 

354

 

 

 

—

 

 

 

—

 

 

 

354

 

Commercial construction loans

 

 

86

 

 

 

—

 

 

 

—

 

 

 

86

 

Total

 

$

2,287

 

 

$

205

 

 

$

—

 

 

$

2,492

 

 

 

 

December 31, 2018

 

 

 

30-59

 

 

60-89

 

 

Greater Than

 

 

 

 

 

 

 

Days

 

 

Days

 

 

90 Days

 

 

Total

 

(In thousands)

 

Past Due

 

 

Past Due

 

 

Past Due

 

 

Past Due

 

Primary residential mortgage

 

$

606

 

 

$

491

 

 

$

—

 

 

$

1,097

 

Consumer and other loans

 

 

2

 

 

 

—

 

 

 

—

 

 

 

2

 

Total

 

$

608

 

 

$

491

 

 

$

—

 

 

$

1,099

 
Schedule of the risk category of loans by class of loans

As of March 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

 

 

 

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

(In thousands)

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

Primary residential mortgage

 

$

588,077

 

 

$

1,033

 

 

$

9,189

 

 

$

—

 

Home equity lines of credit

 

 

57,422

 

 

 

—

 

 

 

214

 

 

 

—

 

Junior lien loan on residence

 

 

7,396

 

 

 

—

 

 

 

33

 

 

 

—

 

Multifamily property

 

 

1,102,458

 

 

 

1,599

 

 

 

349

 

 

 

—

 

Owner-occupied commercial real estate

 

 

245,404

 

 

 

1,257

 

 

 

5,287

 

 

 

—

 

Investment commercial real estate

 

 

956,874

 

 

 

20,603

 

 

 

28,247

 

 

 

—

 

Commercial and industrial

 

 

617,523

 

 

 

8,311

 

 

 

7,756

 

 

 

—

 

Lease financing

 

 

175,517

 

 

 

—

 

 

 

—

 

 

 

—

 

Farmland/agricultural production

 

 

145

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial construction loans

 

 

—

 

 

 

86

 

 

 

—

 

 

 

—

 

Consumer and other loans

 

 

58,907

 

 

 

—

 

 

 

231

 

 

 

—

 

Total

 

$

3,809,723

 

 

$

32,889

 

 

$

51,306

 

 

$

—

 

 

As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

 

 

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

(In thousands)

 

Pass

 

 

Mention

 

 

Substandard

 

 

Doubtful

 

Primary residential mortgage

 

$

590,372

 

 

$

943

 

 

$

9,576

 

 

$

—

 

Home equity lines of credit

 

 

61,936

 

 

 

—

 

 

 

255

 

 

 

—

 

Junior lien loan on residence

 

 

7,382

 

 

 

—

 

 

 

36

 

 

 

—

 

Multifamily property

 

 

1,130,926

 

 

 

3,263

 

 

 

1,616

 

 

 

—

 

Owner-occupied commercial real estate

 

 

255,417

 

 

 

249

 

 

 

5,527

 

 

 

—

 

Investment commercial real estate

 

 

948,300

 

 

 

20,756

 

 

 

32,862

 

 

 

—

 

Commercial and industrial

 

 

608,262

 

 

 

417

 

 

 

8,159

 

 

 

—

 

Lease financing

 

 

172,643

 

 

 

—

 

 

 

—

 

 

 

—

 

Farmland/agricultural production

 

 

149

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial construction loans

 

 

—

 

 

 

86

 

 

 

—

 

 

 

—

 

Consumer and other loans

 

 

64,946

 

 

 

—

 

 

 

234

 

 

 

—

 

Total

 

$

3,840,333

 

 

$

25,714

 

 

$

58,265

 

 

$

—

 
Schedule of Activity in Allowance for Loan and Lease Losses

The activity in the allowance for loan and lease losses for the three months ended March 31, 2019 is summarized below:

 

 

 

January 1,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

Provision

 

 

Ending

 

(In thousands)

 

ALLL

 

 

Charge-offs

 

 

Recoveries

 

 

(Credit)

 

 

ALLL

 

Primary residential mortgage

 

$

3,506

 

 

$

—

 

 

$

42

 

 

$

(71

)

 

$

3,477

 

Home equity lines of credit

 

 

164

 

 

 

—

 

 

 

2

 

 

 

(14

)

 

 

152

 

Junior lien loan on residence

 

 

15

 

 

 

—

 

 

 

11

 

 

 

(11

)

 

 

15

 

Multifamily property

 

 

5,959

 

 

 

—

 

 

 

—

 

 

 

(191

)

 

 

5,768

 

Owner-occupied commercial real estate

 

 

2,614

 

 

 

—

 

 

 

—

 

 

 

(80

)

 

 

2,534

 

Investment commercial real estate

 

 

14,248

 

 

 

—

 

 

 

—

 

 

 

162

 

 

 

14,410

 

Commercial and industrial

 

 

9,839

 

 

 

—

 

 

 

4

 

 

 

342

 

 

 

10,185

 

Lease financing

 

 

1,772

 

 

 

—

 

 

 

—

 

 

 

31

 

 

 

1,803

 

Farmland/agricultural production

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

Commercial construction loans

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Consumer and other loans

 

 

384

 

 

 

(11

)

 

 

1

 

 

 

(68

)

 

 

306

 

Total ALLL

 

$

38,504

 

 

$

(11

)

 

$

60

 

 

$

100

 

 

$

38,653

 

 

The activity in the allowance for loan and lease losses for the three months ended March 31, 2018 is summarized below:

 

 

 

January 1,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

Beginning

 

 

 

 

 

 

 

 

 

 

Provision

 

 

Ending

 

(In thousands)

 

ALLL

 

 

Charge-offs

 

 

Recoveries

 

 

(Credit)

 

 

ALLL

 

Primary residential mortgage

 

$

4,085

 

 

$

(77

)

 

$

—

 

 

$

395

 

 

$

4,403

 

Home equity lines of credit

 

 

221

 

 

 

—

 

 

 

2

 

 

 

(31

)

 

 

192

 

Junior lien loan on residence

 

 

12

 

 

 

—

 

 

 

9

 

 

 

(5

)

 

 

16

 

Multifamily property

 

 

10,007

 

 

 

—

 

 

 

—

 

 

 

(867

)

 

 

9,140

 

Owner-occupied commercial real estate

 

 

2,385

 

 

 

—

 

 

 

66

 

 

 

(87

)

 

 

2,364

 

Investment commercial real estate

 

 

11,933

 

 

 

—

 

 

 

—

 

 

 

434

 

 

 

12,367

 

Commercial and industrial

 

 

6,563

 

 

 

—

 

 

 

16

 

 

 

1,174

 

 

 

7,753

 

Lease financing

 

 

884

 

 

 

—

 

 

 

—

 

 

 

152

 

 

 

1,036

 

Farmland/agricultural production

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

2

 

Commercial construction loans

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Consumer and other loans

 

 

349

 

 

 

(11

)

 

 

1

 

 

 

83

 

 

 

422

 

Total ALLL

 

$

36,440

 

 

$

(88

)

 

$

94

 

 

$

1,250

 

 

$

37,696

 

 
Schedule of loans modified as troubled debt restructurings

The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default as March 31, 2019:

 

 

 

Number of

 

 

Recorded

 

(Dollars in thousands)

 

Contracts

 

 

Investment

 

Investment commercial real estate

 

 

1

 

 

$

14,841

 

Total

 

 

1

 

 

$

14,841

 

The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2018:

 

 

 

Number of

 

 

Recorded

 

(Dollars in thousands)

 

Contracts

 

 

Investment

 

Primary residential mortgage

 

 

1

 

 

$

336

 

Total

 

 

1

 

 

$

336