Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Loans and Allowance for Loan Losses

Summary of loans

	June 30,		December 31,
	2020		2019
	(In thousands)
Mortgage warehouse lines of credit	$	1,287,246	$	765,151
Residential real estate		471,807		413,835
Multi-family and healthcare financing		1,848,811		1,347,125
Commercial and commercial real estate		432,222		398,601
Agricultural production and real estate		99,035		85,210
Consumer and margin loans		14,691		18,388
		4,153,812		3,028,310
Less
Allowance for loan losses		20,497		15,842
Loans Receivable	$	4,133,315	$	3,012,468

Summary of activity in the allowance for loans and recorded investment by loan portfolio

	At or For the Three Months Ended June 30, 2020
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	2,709	$	2,062	$	7,694	$	5,662	$	561	$	195	$	18,883
Provision (credit) for loan losses		494		248		2,184		(1,188)		49		(42)		1,745
Loans charged to the allowance		—		—		—		(131)		—		—		(131)
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	3,203	$	2,310	$	9,878	$	4,343	$	610	$	153	$	20,497
Ending balance: individually evaluated for impairment	$	—		16		—		1,060		—		1	$	1,077
Ending balance: collectively evaluated for impairment	$	3,203	$	2,294	$	9,878	$	3,283	$	610	$	152	$	19,420
Loans
Ending balance	$	1,287,246	$	471,807	$	1,848,811	$	432,222	$	99,035	$	14,691	$	4,153,812
Ending balance individually evaluated for impairment	$	—	$	2,827	$	—	$	9,019	$	2,238	$	19	$	14,103
Ending balance collectively evaluated for impairment	$	1,287,246	$	468,980	$	1,848,811	$	423,203	$	96,797	$	14,672	$	4,139,709

	For the Three Months Ended June 30, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	1,254	$	1,990	$	6,377	$	3,122	$	466	$	147	$	13,356
Provision (credit) for loan losses		311		(61)		(1,233)		1,003		52		33		105
Loans charged to the allowance		—		—		—		(854)		(3)		—		(857)
Recoveries of loans previously charged off		—		—		—		—		—		—		—
Balance, end of period	$	1,565	$	1,929	$	5,144	$	3,271	$	515	$	180	$	12,604

	For the Six Months Ended June 30, 2020
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	1,913	$	2,042	$	7,018	$	4,173	$	523	$	173	$	15,842
Provision for loan losses		1,290		268		2,860		257		87		(19)		4,743
Loans charged to the allowance		—		—		—		(131)		—		(1)		(132)
Recoveries of loans previously charged off		—		—		—		44		—		—		44
Balance, end of period	$	3,203	$	2,310	$	9,878	$	4,343	$	610	$	153	$	20,497

	For the Six Months Ended June 30, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, beginning of period	$	1,068	$	1,986	$	6,030	$	3,051	$	429	$	140	$	12,704
Provision (credit) for loan losses		497		(57)		(886)		1,074		86		40		754
Loans charged to the allowance		—		—		—		(854)		(3)		—		(857)
Recoveries of loans previously charged off		—		—		—		—		3		—		3
Balance, end of period	$	1,565	$	1,929	$	5,144	$	3,271	$	515	$	180	$	12,604

Summary of activity in the allowance for loan losses

	December 31, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Allowance for loan losses
Balance, December 31, 2019	$	1,913	$	2,042	$	7,018	$	4,173	$	523	$	173	$	15,842
Ending balance: individually evaluated for impairment	$	—	$	23	$	—	$	650	$	—	$	8	$	681
Ending balance: collectively evaluated for impairment	$	1,913	$	2,019	$	7,018	$	3,523	$	523	$	165	$	15,161
Loans
Balance, December 31, 2019	$	765,151	$	413,835	$	1,347,125	$	398,601	$	85,210	$	18,388	$	3,028,310
Ending balance individually evaluated for impairment	$	233	$	3,109	$	—	$	9,152	$	—	$	23	$	12,517
Ending balance collectively evaluated for impairment	$	764,918	$	410,726	$	1,347,125	$	389,449	$	85,210	$	18,365	$	3,015,793

Schedule of credit risk profile of loan portfolio

	June 30, 2020
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	224	$	721	$	33,314	$	10,486	$	1,651	$	28	$	46,424
Special Mention (Watch) - COVID-19 Deferrals	$	—	$	136	$	48,103	$	15,605	$	—	$	92	$	63,936
Substandard		—		2,827		—		9,019		2,238		19		14,103
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		1,287,022		468,123		1,767,394		397,112		95,146		14,552		4,029,349
Total	$	1,287,246	$	471,807	$	1,848,811	$	432,222	$	99,035	$	14,691	$	4,153,812

	December 31, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Special Mention (Watch)	$	—	$	2,472	$	41,882	$	13,806	$	2,114	$	31	$	60,305
Substandard		233		3,109		—		9,152		—		23		12,517
Doubtful		—		—		—		—		—		—		—
Acceptable and Above		764,918		408,254		1,305,243		375,643		83,096		18,334		2,955,488
Total	$	765,151	$	413,835	$	1,347,125	$	398,601	$	85,210	$	18,388	$	3,028,310

Schedule of aging analysis of the recorded investment in loans

	June 30, 2020
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	1,287,246	$	1,287,246
RES RE		165		138		560		863		470,944		471,807
MF RE		—		—		—		—		1,848,811		1,848,811
CML & CRE		1,522		368		2,750		4,640		427,582		432,222
AG & AGRE		212		97		2,417		2,726		96,309		99,035
CON & MAR		14		11		622		647		14,044		14,691
	$	1,913	$	614	$	6,349	$	8,876	$	4,144,936	$	4,153,812

	December 31, 2019
	30-59 Days		60-89 Days		Greater Than		Total				Total
	Past Due		Past Due		90 Days		Past Due		Current		Loans
	(In thousands)
MTG WHLOC	$	—	$	—	$	—	$	—	$	765,151	$	765,151
RES RE		3,089		562		2,324		5,975		407,860		413,835
MF RE		—		—		—		—		1,347,125		1,347,125
CML & CRE		2,293		335		1,663		4,291		394,310		398,601
AG & AGRE		2,047		—		195		2,242		82,968		85,210
CON & MAR		50		31		19		100		18,288		18,388
	$	7,479	$	928	$	4,201	$	12,608	$	3,015,702	$	3,028,310

Schedule of components of impaired loans and specific valuation allowance

	June 30, 2020
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	—	$	2,755	$	—	$	6,834	$	2,238	$	7	$	11,834
Unpaid principal balance		—		2,755		—		6,834		2,238		7		11,834
Impaired loans with a specific allowance:
Recorded investment		—		72		—		2,185		—		12		2,269
Unpaid principal balance		—		72		—		2,185		—		12		2,269
Specific allowance		—		16		—		1,060		—		1		1,077
Total impaired loans:
Recorded investment		—		2,827		—		9,019		2,238		19		14,103
Unpaid principal balance		—		2,827		—		9,019		2,238		19		14,103
Specific allowance		—		16		—		1,060		—		1		1,077

	December 31, 2019
	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Impaired loans without a specific allowance:
Recorded investment	$	233	$	2,899	$	—	$	6,662	$	—	$	12	$	9,806
Unpaid principal balance		233		2,899		—		6,662		—		12		9,806
Impaired loans with a specific allowance:
Recorded investment		—		210		—		2,490		—		11		2,711
Unpaid principal balance		—		210		—		2,490		—		11		2,711
Specific allowance		—		23		—		650		—		8		681
Total impaired loans:
Recorded investment		233		3,109		—		9,152		—		23		12,517
Unpaid principal balance		233		3,109		—		9,152		—		23		12,517
Specific allowance		—		23		—		650		—		8		681

Schedule of average recorded investment and interest income recognized in impaired loans

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Three Months Ended June 30, 2020
Average recorded investment in impaired loans	$	171	$	2,916	$	—	$	9,229	$	2,092	$	17	$	14,425
Interest income recognized		—		19		—		94		—		—		113
Three Months Ended June 30, 2019
Average recorded investment in impaired loans	$	568	$	4,091	$	—	$	7,659	$	314	$	52	$	12,684
Interest income recognized		—		45		—		118		—		1		164

	MTG WHLOC		RES RE		MF RE		CML & CRE		AG & AGRE		CON & MAR		TOTAL
	(In thousands)
Six Months Ended June 30, 2020
Average recorded investment in impaired loans	$	197	$	2,875	$	—	$	9,231	$	1,195	$	18	$	13,516
Interest income recognized		—		35		—		215		—		1		251
Six Months Ended June 30, 2019
Average recorded investment in impaired loans	$	571	$	3,745	$	—	$	7,857	$	338	$	53	$	12,564
Interest income recognized		—		85		—		255		—		1		341

Schedule of nonaccrual loans and loans past due 90 days or more and still accruing

	June 30,				December 31,
	2020				2019
			Total Loans >				Total Loans >
			90 Days &				90 Days &
	Nonaccrual		Accruing		Nonaccrual		Accruing
	(In thousands)
MTG WHLOC	$	—	$	—	$	233	$	—
RES RE		630		175		740		1,851
MF RE		—		—		—		—
CML & CRE		1,809		1,622		1,118		486
AG & AGRE		195		2,221		—		231
CON & MAR		19		1		18		1
	$	2,653	$	4,019	$	2,109	$	2,569