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Loans and the Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at September 30, 2018 and December 31, 2017:

	September 30,			December 31,
	2018			2017
	(dollars in thousands)
Commercial	$	933,169		$	824,082
Commercial real estate		2,739,943			2,592,909
Commercial construction		494,206			483,216
Residential real estate		295,948			271,795
Consumer		2,508			2,808
Gross loans		4,465,774			4,174,810
Net deferred loan fees		(3,287	)		(3,354	)
Total loans receivable	$	4,462,487		$	4,171,456

Loans held for sale [Table Text Block]

The following table sets forth the composition of the Company’s loans held-for-sale portfolio at September 30, 2018 and December 31, 2017:

	September 30,		December 31,
	2018		2017
	(dollars in thousands)
Commercial real estate	$	-	$	24,475
Residential real estate		270		370
Total carrying amount	$	270	$	24,845

Activity in the valuation allowance [Table Text Block]

The following table sets forth the composition of the Company’s valuation allowance within the loans held-for-sale portfolio during the three and nine months ended September 30, 2018 and September 30, 2017:

	Three Months		Three Months
	Ended		Ended
	September 30,		September 30,
	2018		2017
	(dollars in thousands)
Balance at July 1,	$	-	$	12,325
Reduction from loans paid off		-		(38	)
Increase in valuation allowance		-		3,000
Balance at September 30,	$	-	$	15,287

	Nine Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	2018		2017
	(dollars in thousands)
Balance at January 1,	$	-	$	-
Reduction from loans paid off		-		(38	)
Increase in valuation allowance		-		15,325
Balance at September 30,	$	-	$	15,287

Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block]

The recorded investment of those loans is as follows at September 30, 2018 and December 31, 2017.

	September 30,		December 31,
	2018		2017
	(dollars in thousands)
Commercial	$	2,524	$	2,683

Loans and Leases Receivable Purchased Loans [Table Text Block]

The following table presents interest income expected to be recognized on the purchased credit-impaired loans and the related activity for the three and nine months ended September 30, 2018 and September 30, 2017:

	Three Months			Three Months
	Ended			Ended
	September 30,			September 30,
	2018			2017
	(dollars in thousands)
Balance at July 1,	$	1,259		$	2,496
Accretion of income		(63	)		(180	)
Balance at September 30,	$	1,196		$	2,316

	Nine Months			Nine Months
	Ended			Ended
	September 30,			September 30,
	2018			2017
	(dollars in thousands)
Balance at January 1,	$	1,387		$	2,860
Accretion of income		(191	)		(544	)
Balance at September 30,	$	1,196		$	2,316

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following table sets forth the composition of the Company’s nonaccrual loans as of September 30, 2018 and December 31, 2017:

	September 30,		December 31,
	2018		2017
	(dollars in thousands)
Commercial	$	29,562	$	47,363
Commercial real estate		15,927		12,757
Commercial construction		2,934		-
Residential real estate		4,592		5,493
Total nonaccrual loans	$	53,015	$	65,613

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at September 30, 2018 and December 31, 2017:

	September 30, 2018
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial ⁽¹⁾	$	887,024	$	12,639	$	33,506	$	-	$	933,169
Commercial real estate		2,699,338		10,651		29,954		-		2,739,943
Commercial construction		481,226		5,458		7,522		-		494,206
Residential real estate		291,223		-		4,725		-		295,948
Consumer		2,484		-		24		-		2,508
Gross loans	$	4,361,295	$	28,748	$	75,731	$	-	$	4,465,774

	December 31, 2017
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	767,020	$	3,764	$	53,298	$	-	$	824,082
Commercial real estate		2,534,973		34,335		23,601		-		2,592,909
Commercial construction		475,066		5,521		2,629		-		483,216
Residential real estate		266,163		-		5,632		-		271,795
Consumer		2,767		-		41		-		2,808
Gross loans	$	4,045,989	$	43,620	$	85,201	$	-	$	4,174,810

⁽¹⁾

Reflects a $17.0 million charge-off related to the taxi medallion loans classified as “substandard”.

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by category as of September 30, 2018 and December 31, 2017:

	September 30, 2018
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	31,471	$	92,452
Commercial real estate		21,483		21,636
Commercial construction		10,428		10,429
Residential real estate		2,237		2,533
Consumer		-		-
Total (no related allowance)	$	65,619	$	127,050

With an allowance recorded
Commercial real estate	$	8,529	$	8,529	$	709
Residential real estate		263		266		32
Total (with allowance)	$	8,792	$	8,795	$	741

Total
Commercial	$	31,471	$	92,452	$	-
Commercial real estate		30,012		30,165		709
Commercial construction		10,428		10,429		-
Residential real estate		2,500		2,799		32
Consumer		-		-		-
Total	$	74,411	$	135,845	$	741

	December 31, 2017
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	49,761	$	101,066
Commercial real estate		23,905		23,976
Commercial construction		6,662		6,662
Residential real estate		3,203		3,442
Consumer		-		-
Total (no related allowance)	$	83,531	$	135,146

With an allowance recorded
Commercial real estate	$	1,133	$	1,133	$	39

Total
Commercial	$	49,761	$	101,066	$	-
Commercial real estate		25,038		25,109		39
Commercial construction		6,662		6,662		-
Residential real estate		3,203		3,442		-
Consumer		-		-		-
Total	$	84,664	$	136,279	$	39

Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block]

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by category as of and for the three and nine months ended September 30, 2018 and 2017:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2018				2017				2018				2017
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
	(dollars in thousands)
Impaired loans (no allowance):
Commercial ⁽¹⁾	$	31,769	$	36	$	3,100	$	34	$	39,132	$	102	$	3,149	$	115
Commercial real estate		21,557		105		19,302	221			21,714		475		18,813		424
Commercial construction		10,297		92		4,285		63		11,718		387		4,273		215
Residential real estate		2,249		-		2,529		2		2,304		-		2,551		6
Consumer		-		-		48		1		-		-		54		2
Total	$	65,872	$	233	$	29,264	$	321	$	74,868	$	964	$	28,840	$	762
Impaired loans (allowance):
Commercial real estate	$	8,534	$	11	$	1,645	$	2	$	8,544	$	34	$	1,654	$	39
Residential real estate		264		-		-		-		267		-		-		-
Total	$	8,798	$	11	$	1,645	$	2	$	8,811	$	34	$	1,654	$	39
Total impaired loans:
Commercial ⁽¹⁾	$	31,769	$	36	$	3,100	$	34	$	39,132	$	102	$	3,149	$	115
Commercial real estate		30,091		116		20,947		223		30,258		509		20,467		463
Commercial construction		10,297		92		4,285		63		11,718		387		4,273		215
Residential real estate		2,513		-		2,259		2		2,571		-		2,551		6
Consumer		-		-		48		1		-		-		54		2
Total	$	74,670	$	244	$	30,909	$	323	$	83,679	$	998	$	30,494	$	801

⁽¹⁾

Reflects the entire taxi medallion portfolio moving back to the loans held-for-investment category from the loans held-for-sale category in November 2017.

Past Due Financing Receivables [Table Text Block]

The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at September 30, 2018 and December 31, 2017 by segment:

Aging Analysis

	September 30, 2018
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Gross Loans
	(dollars in thousands)
Commercial	$	233	$	246	$	1,648	$	29,562	$	31,689	$	901,480	$	933,169
Commercial real estate		-		3,190		-		15,927		19,117		2,720,826		2,739,943
Commercial construction		-		-		-		2,934		2,934		491,272		494,206
Residential real estate		6		-		-		4,592		4,598		291,350		295,948
Consumer		288		-		-		-		288		2,220		2,508
Total	$	527	$	3,436	$	1,648	$	53,015	$	58,626	$	4,407,148	$	4,465,774



	December 31, 2017
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Gross Loans
	(dollars in thousands)
Commercial	$	1,708	$	183	$	1,664	$	47,363	$	50,918	$	773,164	$	824,082
Commercial real estate		545		1,475		-		12,757		14,777		2,578,132		2,592,909
Commercial construction		-		-		-		-		-		483,216		483,216
Residential real estate		1,578		-		-		5,493		7,071		264,724		271,795
Consumer		18		-		-		-		18		2,790		2,808
Total	$	3,849	$	1,658	$	1,664	$	65,613	$	72,784	$	4,102,026	$	4,174,810

Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment:

	September 30, 2018
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
Individually evaluated for impairment	$	-	$	709	$	-	$	32	$	-	$	-	$	741
Collectively evaluated for impairment		9,749		16,569		4,790		1,183		3		564		32,858
Acquired portfolio		200		950		-		-		-		-		1,150
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	9,949	$	18,228	$	4,790	$	1,215	$	3	$	564	$	34,749

Gross loans
Individually evaluated for impairment	$	31,471	$	30,012	$	10,428	$	2,500	$	-			$	74,411
Collectively evaluated for impairment		891,514		2,438,638		483,778		247,211		2,123				4,063,264
Acquired portfolio		7,660		271,293		-		46,237		385				325,575
Acquired with deteriorated credit quality		2,524		-		-		-		-				2,524
Total	$	933,169	$	2,739,943	$	494,206	$	295,948	$	2,508			$	4,465,774

	December 31, 2017
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
Individually evaluated for impairment	$	-	$	39	$	-	$	-	$	-	$	-	$	39
Collectively evaluated for impairment		8,032		15,472		4,747		1,051		2		605		29,909
Acquired portfolio		200		1,600		-		-		-		-		1,800
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	8,232	$	17,111	$	4,747	$	1,051	$	2	$	605	$	31,748

Gross loans
Individually evaluated for impairment	$	49,761	$	25,038	$	6,662	$	3,203	$	-			$	84,664
Collectively evaluated for impairment		757,923		2,190,686		476,554		212,350		2,338				3,639,851
Acquired portfolio		13,715		377,185		-		56,242		470				447,612
Acquired with deteriorated credit quality		2,683		-		-		-		-				2,683
Total	$	824,082	$	2,592,909	$	483,216	$	271,795	$	2,808			$	4,174,810

Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the ALLL is as follows:

	Three Months Ended September 30, 2018
			Commercial		Commercial			Residential
	Commercial		real estate		construction			real estate		Consumer			Unallocated			Total
	(dollars in thousands)
Balance at June 30, 2018	$	8,960	$	18,221	$	4,812		$	1,167	$	3		$	431		$	33,594

Charge-offs		-		-		-			-		(6	)		-			(6	)

Recoveries		56		-		-			-		5			-			61

Provision for loan losses		933		7		(22	)		48		1			133			1,100

Balance at September 30, 2018	$	9,949	$	18,228	$	4,790		$	1,215	$	3		$	564		$	34,749

	Three Months Ended September 30, 2017
			Commercial		Commercial			Residential
	Commercial		real estate		construction			real estate		Consumer			Unallocated			Total
	(dollars in thousands)
Balance at June 30, 2017	$	7,238	$	15,389	$	4,241		$985		$	2		$	546		$	28,401

Charge-offs		-		-		-			-		(1	)		-			(1	)

Recoveries		17		2		-			-		1			-			20

Provision for loan losses		461		1,443		(301	)		67		-			(220	)		1,450

Balance at September 30, 2017	$	7,716	$	16,834	$	3,940		$	1,052	$	2		$	326		$	29,870

	Nine Months Ended September 30, 2018
				Commercial		Commercial		Residential
	Commercial			real estate		construction		real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at December 31, 2017	$	8,233		$	17,112	$	4,747	$	1,050		$	1		$	605		$	31,748

Charge-offs		(17,066	)		-		-		(18	)		(7	)		-			(17,091	)

Recoveries		87			-		-		-			5			-			92

Provision		18,695			1,116		43		183			4			(41	)		20,000

Balance at September 30, 2018	$	9,949		$	18,228	$	4,790	$	1,215		$	3		$	564		$	34,749

	Nine Months Ended September 30, 2017
			Commercial			Commercial			Residential
	Commercial		real estate			construction			real estate		Consumer			Unallocated			Total
	(dollars in thousands)
Balance at December 31, 2016	$	6,632	$	12,583		$	4,789		$	958	$	3		$	779		$	25,744

Charge-offs		-		(71	)		-			-		(12	)		-			(83	)

Recoveries		158		50			-			-		1			-			209

Provision for loan losses		926		4,272			(849	)		94		10			(453	)		4,000

Balance at September 30, 2017	$	7,716	$	16,834		$	3,940		$	1,052	$	2		$	326		$	29,870

Allowance for Loan and Lease Losses [Table Text Block]

The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented:

	Nine Months Ended					Year Ended
	September 30, 2018					December 31, 2017
	(dollars in thousands)
	Recorded					Recorded
	Investment			ALLL		Investment			ALLL
TDRs
Beginning balance	$	20,518		$	-	$	13,818		$	-
Net additions		18,913			11		10,378			-
Payoffs/paydowns		(7,094	)		-		(3,098	)		-
Transfers		-			-		(580	)		-
Ending balance	$	32,337		$	11	$	20,518		$	-

Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by class modified as TDRs that occurred during the nine months ended September 30, 2018:

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
TDRs	(dollars in thousands)
Commercial	31	$	15,737	$	15,737
Commercial real estate	2		209		209
Commercial construction	2		1,839		1,839
Residential real estate	2		454		454
Total	37	$	18,239	$	18,239

The following table presents loans by segment modified as troubled debt restructurings that occurred during the nine months ended September 30, 2017:

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
TDRs	(dollars in thousands)
Commercial real estate	2	$	3,042	$	3,042
Commercial construction	1		2,589		2,589
Residential real estate	1		17		17
Total	4	$	5,648	$	5,648