XML 42 R30.htm IDEA: XBRL DOCUMENT v3.19.2
Loans and the Allowance for Loan Losses (Tables)
6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans receivable - The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at June 30, 2019 and December 31, 2018:

        June 30,       December 31,
    2019   2018
    (dollars in thousands)
Commercial   $      1,052,559     $      988,758  
Commercial real estate     3,111,274       2,778,167  
Commercial construction     602,213       465,389  
Residential real estate     326,661       309,991  
Consumer     2,041       2,594  
Gross loans     5,094,748       4,544,899  
Net deferred loan fees     (4,256 )     (3,807 )
Total loans receivable   $ 5,090,492     $ 4,541,092  
Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block]

Purchased Credit-Impaired Loans - The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment in those loans is as follows at June 30, 2019 and December 31, 2018.

    June 30,   December 31,
        2019       2018
    (dollars in thousands)
Commercial   $      5,399   $      2,509
Commercial real estate     1,305     -
    $ 6,704   $ 2,509
Loans and Leases Receivable Purchased Loans [Table Text Block]

The following table presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for three and six months ended June 30, 2019 and June 30, 2018:

Three Months   Three Months
Ended Ended
      June 30, 2019       June 30, 2018
(dollars in thousands)
Balance at April 1   $               2,213   $               1,322
Accretion of income (575 ) (63 )
Balance at June 30   $ 1,638   $ 1,259
   
Six Months Six Months
Ended Ended
June 30, 2019   June 30, 2018
(dollars in thousands)
Balance at January 1   $ 1,134   $ 1,387
New loans purchased 1,286
Accretion of income (782 ) (128 )
Balance at June 30   $ 1,638   $ 1,259
Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans included in loans receivable by loan class as of June 30, 2019 and December 31, 2018:

    June 30,   December 31,
        2019       2018
    (dollars in thousands)
Commercial   $       28,433   $             29,340
Commercial real estate     12,686     15,135
Commercial construction     3,579     2,934
Residential real estate     5,219     4,446
Total nonaccrual loans   $ 49,917   $ 51,855
Financing Receivable Credit Quality Indicators [Table Text Block]
    June 30, 2019
          Special                  
        Pass       Mention       Substandard       Doubtful       Total
    (dollars in thousands)
Commercial   $      997,503   $      19,269   $ 35,787   $              -   $      1,052,559
Commercial real estate     3,084,014     7,622     19,638     -     3,111,274
Commercial construction     589,165     4,106     8,942     -     602,213
Residential real estate     321,316     -     5,345     -     326,661
Consumer     2,034     -     7     -     2,041
Gross loans   $ 4,994,032   $ 30,997   $ 69,719   $ -   $ 5,094,748
     December 31, 2018
          Special                  
        Pass       Mention       Substandard       Doubtful        Total
    (dollars in thousands)
Commercial   $      951,610   $      3,371   $      33,777   $      -   $      988,758
Commercial real estate     2,742,989     12,574     22,604     -     2,778,167
Commercial construction     453,598     5,515     6,276     -     465,389
Residential real estate     305,414     -     4,577     -     309,991
Consumer     2,576     -     18     -     2,594
Gross loans   $ 4,456,187   $ 21,460   $ 67,252   $ -   $ 4,544,899
Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by segment as of June 30, 2019 and December 31, 2018:

    June 30, 2019
    Unpaid
    Recorded   Principal   Related
        Investment       Balance       Allowance
No related allowance recorded   (dollars in thousands)
Commercial   $      32,559   $      79,328      
Commercial real estate     17,162     17,317      
Commercial construction     6,047     6,047      
Residential real estate     3,175     3,519      
Total (no related allowance)   $ 58,943   $ 106,211      
                    
With an allowance recorded                  
Commercial real estate   $ 393   $ 393   $            29
Commercial construction     2,894     2,895     162
Residential real estate     253     265     22
Total (with allowance)   $ 3,540   $ 3,553   $ 213
                    
Total                  
Commercial   $ 32,559   $ 79,328   $ -
Commercial real estate     17,555     17,710     29
Commercial construction     8,941     8,942     162
Residential real estate     3,428     3,784     22
Total   $ 62,483   $ 109,764   $ 213
             
    December 31, 2018
          Unpaid      
    Recorded   Principal   Related
    Investment   Balance   Allowance
No related allowance recorded   (dollars in thousands)
Commercial   $ 29,896   $ 83,596      
Commercial real estate     16,839     17,935      
Commercial construction     9,240     9,240      
Residential real estate     2,209     2,521      
Total (no related allowance)   $ 58,184   $ 113,292      
                 
With an allowance recorded                  
Commercial real estate   $ 1,488   $ 1,488   $ 7
Residential real estate     260     266     29
    $ 1,748   $ 1,754   $ 36
                 
Total                  
Commercial   $ 29,896   $ 83,596   $ -
Commercial real estate     18,327     19,423     7
Commercial construction     9,240     9,240     -
Residential real estate     2,469     2,787     29
Total   $ 59,932   $ 115,046   $ 36
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 segment as of and for the three and six months ended June 30, 2019 and 2018:

 Three Months Ended June 30, Six Months Ended June 30,
2019 2018  2019  2018
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   $         33,663   $ 82   $ 38,770   $ 35 $ 33,066   $ 164   $      42,056   $              66
Commercial real estate 17,205 68 23,422 127 17,170 143 23,504 370
Commercial construction 6,048 25 9,225 176 6,049 80 9,845 295
Residential real estate 3,198 - 2,569 - 3,195 - 2,599 -
Total   $ 60,114   $ 175   $ 73,986   $ 338   $ 59,480   $ 387   $ 78,004   $ 731
Impaired loans (allowance):
               
Commercial real estate $ 393 $ - $ 8,544 $ 11 $ 393 $ - $ 8,548 $ 23
Commercial construction 2,850 42 - - 2,818 85 - -
Residential real estate 255 - - - 256 - - -
Total   $ 3,498   $ 42   $ 8,544   $ 11   $ 3,467   $ 85   $ 8,548   $ 23
Total impaired loans:
                                               
Commercial   $ 33,663   $ 82   $ 38,770   $ 35 $ 33,066   $ 164   $ 42,056   $ 66
Commercial real estate 17,598 68 31,966 138 17,563 143 32,052 393
Commercial construction 8,898 67 9,225 176 8,867 165 9,845 295
Residential mortgage 3,453 - 2,569 - 3,451 - 2,599 -
Total   $ 63,612   $ 217   $ 82,530   $ 349 $ 62,947   $ 472   $ 86,552   $ 754
Past Due Financing Receivables [Table Text Block]

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due at June 30, 2019 and December 31, 2018:

    June 30, 2019
                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   $          1,130   $          3,035   $             3,006   $         28,433   $         35,604   $      1,016,955   $      1,052,559
Commercial real estate     -     1,148     -     12,686     13,834     3,097,440     3,111,274
Commercial construction     -     3,530     -     3,579     7,109     595,104     602,213
Residential real estate     681     -     -     5,219     5,900     320,761     326,661
Consumer     3     20     -     -     23     2,018     2,041
Total   $ 1,814   $ 7,733   $ 3,006   $ 49,917   $ 62,470   $ 5,032,278   $ 5,094,748

The amount reported 90 days or greater past due and still accruing as of June 30, 2019 are comprised of PCI loans, net of their fair value marks, which are accreting income per their valuation at date of acquisition.

December 31, 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
Commercial   $         1,673   $           -   $             1,647   $         29,340   $         32,660   $      956,098   $       988,758
Commercial real estate 6,162 1,840 - 15,135 23,137 2,755,030 2,778,167
Commercial construction 2,496 564 - 2,934 5,994 459,395 465,389
Residential real estate 3,455 119 - 4,446 8,020 301,971 309,991
Consumer - - - - - 2,594 2,594
Total   $ 13,786   $ 2,523   $ 1,647   $ 51,855   $ 69,811   $ 4,475,088   $ 4,544,899
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 quality, and the related portion of the allowance for loan losses that are allocated to each loan portfolio segment:

     June 30, 2019
          Commercial   Commercial   Residential                  
     Commercial    real estate    construction    real estate    Consumer    Unallocated    Total
    (dollars in thousands)
ALLL                                          
Individually evaluated for impairment   $      -   $      29   $      162   $         22   $       -   $          -   $      213
Collectively evaluated for impairment     8,521     20,456     5,380     1,186     2     740     36,285
Acquired portfolio     200     1,000     -     -     -     -     1,200
Acquired with deteriorated credit quality     -     -     -     -     -     -     -
Total   $ 8,721   $ 21,485   $ 5,542   $ 1,208   $ 2   $ 740   $ 37,698
                                           
Gross loans                                          
Individually evaluated for impairment   $ 32,559   $ 17,555   $ 8,941   $ 3,428   $ -         $ 62,483
Collectively evaluated for impairment     901,858     2,694,372     552,712     277,490     1,716           4,428,148
Acquired portfolio     112,743     398,042     40,560     45,743     325           597,413
Acquired with deteriorated credit quality     5,399     1,305     -     -     -           6,704
Total   $ 1,052,559   $ 3,111,274   $ 602,213   $ 326,661   $ 2,041         $ 5,094,748

December 31, 2018
Commercial Commercial Residential
   Commercial    real estate    construction    real estate    Consumer    Unallocated    Total
(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment   $      -   $      7   $      -   $      29   $       -   $          -   $      36
Collectively evaluated for impairment 9,675 17,840 4,519 1,237 2 445 33,718
Acquired portfolio 200 1,000 - - - - 1,200
Acquired with deteriorated credit quality - - - - - - -
Total   $ 9,875   $ 18,847   $ 4,519   $ 1,266   $ 2   $ 445   $ 34,954
Gross loans
Individually evaluated for impairment   $ 29,896   $ 18,327   $ 9,240   $ 2,469   $ -   $ 59,932
Collectively evaluated for impairment 949,129 2,500,132 456,149 263,449 2,484 4,171,343
Acquired portfolio 7,224 259,708 - 44,073 110 311,115
Acquired with deteriorated credit quality 2,509 - - - - 2,509
Total   $ 988,758   $ 2,778,167   $ 465,389   $ 309,991   $ 2,594   $ 4,544,899
Allowance for Credit Losses on Financing Receivables [Table Text Block]

The Company’s allowance for loan losses is analyzed quarterly. Many factors are considered, including growth in the portfolio, delinquencies, nonaccrual loan levels, and other factors inherent in the extension of credit. There have been no material changes to the allowance for loan losses (“ALLL”) methodology as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. A summary of the activity in the ALLL is as follows:

    Three Months Ended June 30, 2019
            Commercial   Commercial   Residential                    
     Commercial    real estate    construction    real estate    Consumer    Unallocated    Total
     (dollars in thousands)
Balance at March 31, 2019   $        8,660     $       21,561     $             4,982   $         1,166   $               1   $               488   $      36,858  
                                                  
Charge-offs     -       (406 )     -     -     -     -     (406 )
                                                  
Recoveries     115       30       -     1     -     -     146  
                                                  
Provision     (54 )     300       560     41     1     252     1,100  
                                                  
Balance at June 30, 2019   $ 8,721     $ 21,485     $ 5,542   $ 1,208   $ 2   $ 740   $ 37,698  

    Three Months Ended June 30, 2018
            Commercial   Commercial   Residential                        
     Commercial    real estate    construction    real estate    Consumer    Unallocated    Total
     (dollars in thousands)
Balance at March 31, 2018   $        8,550     $         17,435   $             4,772   $          1,109   $            2     $           661     $      32,529  
                                                   
Charge-offs     (46 )     -     -     -     (1 )     -       (47 )
                                                   
Recoveries     12       -     -     -     -       -       12  
                                                   
Provision for loan losses     444       786     40     58     2       (230 )     1,100  
                                                    
Balance at June 30, 2018   $ 8,960     $ 18,221   $ 4,812   $ 1,167   $ 3     $ 431     $ 33,594  
    Six Months Ended June 30, 2019
            Commercial   Commercial   Residential                      
    Commercial   real estate   construction   real estate   Consumer   Unallocated   Total
                    (dollars in thousands)            
Balance at December 31, 2018   $        9,875     $       18,847     $ 4,519   $         1,266     $            2     $ 445   $        34,954  
                                                         
Charge-offs     -       (3,082 )     -     -       -       -     (3,082 )
                                                     
Recoveries     186       30       -     3       7       -     226  
                                                     
Provision     (1,340 )     5,690       1,023     (61 )     (7 )     295     5,600  
                                                     
Balance at June 30, 2019   $ 8,721     $ 21,485     $ 5,542   $ 1,208     $ 2     $ 740   $ 37,698  

    Six Months Ended June 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 )     (1 )     -       (17,085 )
                                                     
Recoveries     31       -     -     -       -       -       31  
                                                     
Provision     17,762       1,109     65     135       3       (174 )     18,900  
                                                      
Balance at June 30, 2018   $ 8,960     $ 18,221   $ 4,812   $ 1,167     $ 3     $ 431     $ 33,594  
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 six months ended June 30, 2019:

        Pre-Modification   Post-Modification
        Outstanding   Outstanding
    Number of   Recorded   Recorded
    Loans   Investment   Investment
Troubled debt restructurings:   (dollars in thousands)
Commercial       4       $ 4,186       $ 4,186
Commercial real estate   2     2,635     2,635
Commercial construction   2     2,101     2,101
                 
Total   8   $ 8,922   $ 8,922

These eight loan modifications included interest rate reductions and maturity extensions.

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

        Pre-Modification   Post-Modification
        Outstanding   Outstanding
    Number of   Recorded   Recorded
    Loans   Investment   Investment
Troubled debt restructurings:   (dollars in thousands)
Commercial       30       $ 15,613       $ 15,613
Commercial real estate   1     60     60
Commercial construction   2     1,839     1,839
Residential   2     454     454
                 
Total   35   $ 17,966   $ 17,966