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Loans and the Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2020

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 segments, including net deferred fees, as of March 31, 2020 and December 31, 2019:

	March 31,			December 31,
	2020			2019
	(dollars in thousands)
Commercial	$	1,240,227		$	1,129,661
Commercial real estate		3,707,391			3,041,959
Commercial construction		676,836			623,326
Residential real estate		387,400			320,020
Consumer		1,965			3,328
Gross loans		6,013,819			5,118,294
Net deferred loan fees		(4,509	)		(4,767	)
Total loans receivable	$	6,009,310		$	5,113,527

Loans held for sale [Table Text Block]

Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale portfolio at March 31, 2020 and December 31, 2019:

	March 31,		December 31,
	2020		2019
	(dollars in thousands)
Commercial	$	2,276	$	2,285
Commercial real estate		28,427		30,965
Residential real estate		1,722		-
Total carrying amount	$	32,425	$	33,250

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 of those loans is as follows at March 31, 2020 and December 31, 2019.

	March 31,		December 31,
	2020		2019
	(dollars in thousands)
Commercial	$	6,304	$	5,452
Commercial real estate		5,454		1,101
Commercial construction		4,184		-
	$	15,942	$	6,553

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 months ended March 31, 2020 and March 31, 2019:

	Three Months			Three Months
	Ended			Ended
	March 31,			March 31,
	2020			2019
	(dollars in thousands)
Balance at beginning of period	$	1,301		$	1,134
New loans purchased		605			1,286
Accretion of income		(228	)		(146	)
Balance at end of period	$	1,678		$	2,274

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 March 31, 2020 and December 31, 2019:

	March 31,		December 31,
	2020		2019
	(dollars in thousands)
Commercial	$	29,984	$	31,455
Commercial real estate		8,314		8,338
Commercial construction		18,205		6,773
Residential real estate		5,819		2,915
Consumer		51		-
Total nonaccrual loans	$	62,373	$	49,481

Financing Receivable Credit Quality Indicators [Table Text Block]

Credit Quality Indicators - The Company continuously monitors the credit quality of its loans receivable. In addition to its internal monitoring, the Company utilizes the services of a third-party loan review firm to periodically validate the credit quality of its loans receivable on a sample basis. Credit quality is monitored by reviewing certain credit quality indicators. Assets classified “Pass” are deemed to possess average to superior credit quality, requiring no more than normal attention. Assets classified as “Special Mention” have generally acceptable credit quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such conditions include strained liquidity, slow pay, stale financial statements, or other conditions that require more stringent attention from the lending staff. These conditions, if not corrected, may weaken the loan quality or inadequately protect the Company’s credit position at some future date. Assets are classified “Substandard” if the asset has a well-defined weakness that requires management’s attention to a greater degree than for loans classified special mention. Such weakness, if left uncorrected, could possibly result in the compromised ability of the loan to perform to contractual requirements. An asset is classified as “Doubtful” if it is inadequately protected by the net worth and/or paying capacity of the obligor or of the collateral, if any, that secures the obligation. Assets classified as doubtful include assets for which there is a “distinct possibility” that a degree of loss will occur if the inadequacies are not corrected. All loans past due 90 days or greater and all impaired loans are included in the appropriate category below. The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) at March 31, 2020 and December 31, 2019:

	March 31, 2020
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	1,171,739	$	21,226	$	47,262	$	-	$	1,240,227
Commercial real estate		3,673,963		11,837		21,591		-		3,707,391
Commercial construction		646,993		3,505		26,338		-		676,836
Residential real estate		377,359		-		10,041		-		387,400
Consumer		1,965		-		-		-		1,965
Gross loans	$	5,872,019	$	36,858	$	105,232	$	-	$	6,013,819

	December 31, 2019
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	1,059,852	$	22,159	$	47,650	$	-	$	1,129,661
Commercial real estate		3,014,956		10,301		16,702		-		3,041,959
Commercial construction		604,298		4,609		14,419		-		623,326
Residential real estate		316,476		-		3,544		-		320,020
Consumer		3,328		-		-		-		3,328
Gross loans	$	4,998,910	$	37,069	$	82,315	$	-	$	5,118,294

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by class as of March 31, 2020 and December 31, 2019.

	March 31, 2020
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	35,873	$	81,424
Commercial real estate		15,198		15,427
Commercial construction		17,635		17,635
Residential real estate		3,817		4,164
Consumer		-		-
Total (no related allowance)	$	72,523	$	118,650

With an allowance recorded
Commercial construction	$	6,463	$	6,463	$	1,802
Residential real estate		262		262		47
Total (with allowance)	$	6,725	$	6,725	$	1,849

Total
Commercial	$	35,873	$	81,424	$	-
Commercial real estate		15,198		15,427		1,802
Commercial construction		24,099		24,099		-
Residential real estate		4,079		4,426		47
Consumer		-		-		-
Total	$	79,249	$	125,376	$	1,849

	December 31, 2019
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	37,984	$	83,225
Commercial real estate		15,249		15,467
Commercial construction		8,649		8,649
Residential real estate		1,311		1,463
Consumer		-		-
Total (no related allowance)	$	63,193	$	108,804

With an allowance recorded
Commercial construction	$	3,530	$	3,530	$	1,244
Residential real estate		263		263		23
	$	3,793	$	3,793	$	1,267

Total
Commercial	$	37,984	$	83,225	$	-
Commercial real estate		15,249		15,467		-
Commercial construction		12,179		12,179		1,244
Residential real estate		1,574		1,726		23
Consumer		-		-		-
Total	$	66,986	$	112,597	$	1,267

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 class as of and for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
	2020				2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded

Commercial	$	36,442	$	94	$	29,080	$	16
Commercial real estate		15,238		84		10,146		47
Commercial construction		17,371		85		10,400		57
Residential real estate		3,827		-		2,194		-
Consumer		-		-		-		-

Total	$	72,878	$	263	$	51,820	$	120

Impaired loans with an allowance recorded

Commercial real estate	$	-	$	-	$	7,084	$	-
Commercial construction		6,463		-		-		-
Residential real estate		262		3		-		-

Total	$	6,725	$	3	$	7,342	$	-

Total impaired loans

Commercial	$	36,442	$	94	$	29,080	$	16
Commercial real estate		15,238		84		17,230		47
Commercial construction		23,834		85		10,400		57
Residential real estate		4,089		3		2,452		-
Consumer		-		-		-		-

Total	$	79,603	$	266	$	59,162	$	120

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 March 31, 2020 and December 31, 2019:

	March 31, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due and Still Accruing		Nonaccrual		Total Past Due and Nonaccrual		Current		Gross Loans
	(dollars in thousands)
Commercial	$	6,229	$	-	$	4,019	$	29,984	$	40,232	$	1,199,995	$	1,240,227
Commercial real estate		68,291		-		677		8,314		77,282		3,630,109		3,707,391
Commercial construction		7,921		-		-		18,205		26,126		650,710		676,836
Residential real estate		8,501		643		828		5,819		15,791		371,609		387,400
Consumer		2		2		-		51		55		1,910		1,965
Total	$	90,944	$	645	$	5,524	$	62,373	$	159,486	$	5,854,333	$	6,013,819

Included in the 90 days or greater past due and still accruing category as of March 31, 2020 are purchased credit-impaired loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

	December 31, 2019
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due and Still Accruing		Nonaccrual		Total Past Due and Nonaccrual		Current		Total Loans Receivable
Commercial	$	239	$	-	$	3,107	$	31,455	$	34,801	$	1,094,860	$	1,129,661
Commercial real estate		1,980		490		-		8,338		10,808		3,031,151		3,041,959
Commercial construction		-		-		-		6,773		6,773		616,553		623,326
Residential real estate		3,357		143		-		2,915		6,415		313,605		320,020
Consumer		-		-		-		-		-		3,328		3,328
Total	$	5,576	$	633	$	3,107	$	49,481	$	58,797	$	5,059,497	$	5,118,294

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:

	March 31, 2020
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
Individually evaluated for impairment	$	-	$	-	$	1,802	$	47	$	-			$	1,849
Collectively evaluated for impairment		9,018		21,150		5,701		1,634		3				37,506
Acquired portfolio		40		886		316		-		-				1,242
Acquired with deteriorated credit quality		-		-		-		-		-				-
Unallocated		-		-		-		-		-				13,572
Total	$	9,058	$	22,036	$	7,819	$	1,681	$	3	$	13,572	$	54,169

Gross loans
Individually evaluated for impairment	$	35,873	$	15,198	$	24,099	$	4,079	$	-			$	79,249
Collectively evaluated for impairment		1,082,774		2,766,670		574,697		273,948		1,420				4,699,509
Acquired portfolio		115,276		920,069		78,040		105,189		545				1,219,119
Acquired with deteriorated credit quality		6,304		5,454		-		4,184		-				15,942
Total	$	1,240,227	$	3,707,391	$	676,836	$	387,400	$	1,965			$	6,013,819

	December 31, 2019
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	-	$	-	$	1,244	$	23	$	-			$	1,267
Collectively evaluated for impairment		8,309		19,967		5,744		1,662		3				35,784
Acquired portfolio		40		886		316		-		-				1,242
Acquired with deteriorated credit quality		-		-		-		-		-				-
Unallocated		-		-		-		-		-				99
Total	$	8,349	$	20,853	$	7,304	$	1,685	$	3	$	99	$	38,293

Gross loans
Individually evaluated for impairment	$	37,984	$	15,249	$	12,179	$	1,574	$	-			$	66,986
Collectively evaluated for impairment		1,011,708		2,669,999		578,620		276,177		3,064				4,539,568
Acquired portfolio		74,517		355,610		32,527		42,269		264				505,187
Acquired with deteriorated credit quality		5,452		1,101		-		-		-				6,553
	$	1,129,661	$	3,041,959	$	623,326	$	320,020	$	3,328			$	5,118,294
Total

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

A summary of the activity in the allowance for loan losses by loan segment is as follows:

	Three Months Ended March 31, 2020
				Commercial		Commercial		Residential
	Commercial			real estate		construction		real estate			Consumer			Unallocated		Total
	(dollars in thousands)
Balance at December 31, 2019	$	8,349		$	20,853	$	7,304	$	1,685		$	3		$	99	$	38,293


Charge-offs		(124	)		-		-		-			(3	)		-		(127	)

Recoveries		-			-		-		3			-			-		3

Provision for loan losses		833			1,183		515		(7	)		3			13,473		16,000
Balance at March 31, 2020	$	9,058		$	22,036	$	7,819	$	1,681		$	3		$	13,572	$	54,169

	Three Months Ended March 31, 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		-			(2,676	)		-		-			-			-		(2,676	)

Recoveries		71			-			-		2			7			-		80

Provision for loan losses		(1,286	)		5,390			463		(102	)		(8	)		43		4,500
Balance at March 31, 2019	$	8,660		$	21,561		$	4,982	$	1,166		$	1		$	488	$	36,858