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CREDIT QUALITY ASSESSMENT
 9 Months Ended
Sep. 30, 2019
Credit Quality Assessment [Abstract]  
CREDIT QUALITY ASSESSMENT

Note 4 – CREDIT QUALITY ASSESSMENT

Allowance for Loan Losses

Summary information on the allowance for loan loss activity for the period indicated is provided in the following table:

 

 

 

 

Nine Months Ended September 30,

(In thousands)

 

2019

 

2018

Balance at beginning of year

 

$

53,486

 

$

45,257

 

Provision for loan losses

 

 

3,029

 

 

5,620

 

Loan charge-offs

 

 

(2,101)

 

 

(1,003)

 

Loan recoveries

 

 

578

 

 

535

 

 

Net charge-offs

 

 

(1,523)

 

 

(468)

Balance at period end

 

$

54,992

 

$

50,409

The following tables provide information on the activity in the allowance for loan losses by the respective loan portfolio segment for the period indicated:

 

 

 

For the Nine Months Ended September 30, 2019

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Commercial

 

Owner

 

 

 

 

Residential

 

Residential

 

 

 

(Dollars in thousands)

 

Business

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Consumer

 

Mortgage

 

Construction

 

Total

Balance at beginning of year

 

$

11,377

 

$

5,944

 

$

17,603

 

$

6,307

 

$

2,113

 

$

8,881

 

$

1,261

 

$

53,486

Provision (credit)

 

 

(422)

 

 

608

 

 

1,892

 

 

148

 

 

224

 

 

834

 

 

(255)

 

 

3,029

Charge-offs

 

 

(1,176)

 

 

-

 

 

-

 

 

-

 

 

(517)

 

 

(408)

 

 

-

 

 

(2,101)

Recoveries

 

 

45

 

 

228

 

 

13

 

 

-

 

 

166

 

 

120

 

 

6

 

 

578

 

Net recoveries (charge-offs)

 

 

(1,131)

 

 

228

 

 

13

 

 

-

 

 

(351)

 

 

(288)

 

 

6

 

 

(1,523)

Balance at end of period

 

$

9,824

 

$

6,780

 

$

19,508

 

$

6,455

 

$

1,986

 

$

9,427

 

$

1,012

 

$

54,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

772,619

 

$

678,906

 

$

2,036,021

 

$

1,278,505

 

$

480,530

 

$

1,199,275

 

$

150,692

 

$

6,596,548

Allowance for loans losses to total loans ratio

 

 

1.27%

 

 

1.00%

 

 

0.96%

 

 

0.50%

 

 

0.41%

 

 

0.79%

 

 

0.67%

 

 

0.83%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance of loans specifically evaluated for impairment

 

$

6,818

 

$

829

 

$

9,229

 

$

3,810

 

 

na.

 

$

1,360

 

$

-

 

$

22,046

Allowance for loans specifically evaluated for impairment

 

$

2,556

 

$

132

 

$

1,558

 

$

26

 

 

na.

 

$

-

 

$

-

 

$

4,272

Specific allowance to specific loans ratio

 

 

37.49%

 

 

15.92%

 

 

16.88%

 

 

0.68%

 

 

na.

 

 

-

 

 

-

 

 

19.38%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance of loans collectively evaluated

 

$

763,211

 

$

678,077

 

$

2,017,134

 

$

1,274,695

 

$

479,502

 

$

1,197,906

 

$

150,692

 

$

6,561,217

Allowance for loans collectively evaluated

 

$

7,268

 

$

6,648

 

$

17,950

 

$

6,429

 

$

1,986

 

$

9,427

 

$

1,012

 

$

50,720

Collective allowance to collective loans ratio

 

 

0.95%

 

 

0.98%

 

 

0.89%

 

 

0.50%

 

 

0.41%

 

 

0.79%

 

 

0.67%

 

 

0.77%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance of loans acquired with deteriorated credit quality

 

$

2,590

 

$

-

 

$

9,658

 

$

-

 

$

1,028

 

$

9

 

$

-

 

$

13,285

Allowance for loans acquired with deteriorated credit quality

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Allowance to loans acquired with deteriorated credit quality ratio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

For the Year Ended December 31, 2018

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Commercial

 

Owner

 

 

 

 

Residential

 

Residential

 

 

 

(Dollars in thousands)

 

Business

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Consumer

 

Mortgage

 

Construction

 

Total

Balance at beginning of year

 

$

8,711

 

$

3,501

 

$

14,970

 

$

7,178

 

$

2,383

 

$

7,268

 

$

1,246

 

$

45,257

Provision (credit)

 

 

2,857

 

 

2,381

 

 

2,677

 

 

(871)

 

 

203

 

 

1,776

 

 

-

 

 

9,023

Charge-offs

 

 

(449)

 

 

-

 

 

(131)

 

 

-

 

 

(611)

 

 

(225)

 

 

-

 

 

(1,416)

Recoveries

 

 

258

 

 

62

 

 

87

 

 

-

 

 

138

 

 

62

 

 

15

 

 

622

 

Net recoveries (charge-offs)

 

 

(191)

 

 

62

 

 

(44)

 

 

-

 

 

(473)

 

 

(163)

 

 

15

 

 

(794)

Balance at end of period

 

$

11,377

 

$

5,944

 

$

17,603

 

$

6,307

 

$

2,113

 

$

8,881

 

$

1,261

 

$

53,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

796,264

 

$

681,201

 

$

1,958,395

 

$

1,202,903

 

$

517,839

 

$

1,228,247

 

$

186,785

 

$

6,571,634

Allowance for loan losses to total loans ratio

 

 

1.43%

 

 

0.87%

 

 

0.90%

 

 

0.52%

 

 

0.41%

 

 

0.72%

 

 

0.68%

 

 

0.81%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance of loans specifically evaluated for impairment

 

$

7,586

 

$

3,306

 

$

5,355

 

$

4,234

 

 

na.

 

$

1,729

 

$

-

 

$

22,210

Allowance for loans specifically evaluated for impairment

 

$

3,594

 

$

-

 

$

1,207

 

$

123

 

 

na.

 

$

-

 

$

-

 

$

4,924

Specific allowance to specific loans ratio

 

 

47.38%

 

 

-

 

 

22.54%

 

 

2.91%

 

 

na.

 

 

-

 

 

-

 

 

22.17%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance of loans collectively evaluated

 

$

780,523

 

$

677,895

 

$

1,938,712

 

$

1,196,487

 

$

516,567

 

$

1,226,508

 

$

186,785

 

$

6,523,477

Allowance for loans collectively evaluated

 

$

7,783

 

$

5,944

 

$

16,396

 

$

6,184

 

$

2,113

 

$

8,881

 

$

1,261

 

$

48,562

Collective allowance to collective loans ratio

 

 

1.00%

 

 

0.88%

 

 

0.85%

 

 

0.52%

 

 

0.41%

 

 

0.72%

 

 

0.68%

 

 

0.74%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance of loans acquired with deteriorated credit quality

 

$

8,155

 

$

-

 

$

14,328

 

$

2,182

 

$

1,272

 

$

10

 

$

-

 

$

25,947

Allowance for loans acquired with deteriorated credit quality

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Allowance to loan acquired with deteriorated credit quality ratio

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

The following table provides summary information regarding impaired loans at the dates indicated and for the periods then ended:

(In thousands)

 

September 30, 2019

 

December 31, 2018

Impaired loans with a specific allowance

 

$

13,371

 

$

12,876

Impaired loans without a specific allowance

 

 

8,675

 

 

9,334

 

Total impaired loans

 

$

22,046

 

$

22,210

 

 

 

 

 

 

 

 

Allowance for loan losses related to impaired loans

 

$

4,272

 

$

4,924

Allowance for loan losses related to loans collectively evaluated

 

 

50,720

 

 

48,562

 

Total allowance for loan losses

 

$

54,992

 

$

53,486

 

 

 

 

 

 

 

 

Average impaired loans for the period

 

$

23,014

 

$

20,211

Contractual interest income due on impaired loans during the period

 

$

1,317

 

$

2,513

Interest income on impaired loans recognized on a cash basis

 

$

362

 

$

506

Interest income on impaired loans recognized on an accrual basis

 

$

114

 

$

138

The following tables present the recorded investment with respect to impaired loans, the associated allowance by the applicable portfolio segment and the principal balance of the impaired loans prior to amounts charged off at the dates indicated:

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Total Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

All

 

Investment in

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

Other

 

Impaired

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Loans

 

Loans

Impaired loans with a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing

 

$

3,559

 

$

829

 

$

5,468

 

$

767

 

$

-

 

$

10,623

 

 

Restructured accruing

 

 

269

 

 

-

 

 

-

 

 

-

 

 

-

 

 

269

 

 

Restructured non-accruing

 

 

1,806

 

 

-

 

 

548

 

 

125

 

 

-

 

 

2,479

 

Balance

 

$

5,634

 

$

829

 

$

6,016

 

$

892

 

$

-

 

$

13,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

$

2,556

 

$

132

 

$

1,558

 

$

26

 

$

-

 

$

4,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans without a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing

 

$

115

 

$

-

 

$

2,438

 

$

1,140

 

$

-

 

$

3,693

 

 

Restructured accruing

 

 

156

 

 

-

 

 

775

 

 

-

 

 

1,087

 

 

2,018

 

 

Restructured non-accruing

 

 

913

 

 

-

 

 

-

 

 

1,778

 

 

273

 

 

2,964

 

Balance

 

$

1,184

 

$

-

 

$

3,213

 

$

2,918

 

$

1,360

 

$

8,675

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing

 

$

3,674

 

$

829

 

$

7,906

 

$

1,907

 

$

-

 

$

14,316

 

 

Restructured accruing

 

 

425

 

 

-

 

 

775

 

 

-

 

 

1,087

 

 

2,287

 

 

Restructured non-accruing

 

 

2,719

 

 

-

 

 

548

 

 

1,903

 

 

273

 

 

5,443

 

Balance

 

$

6,818

 

$

829

 

$

9,229

 

$

3,810

 

$

1,360

 

$

22,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid principal balance in total impaired loans

 

$

9,302

 

$

829

 

$

13,794

 

$

5,686

 

$

2,715

 

$

32,326

 

 

September 30, 2019

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Total Recorded

 

 

 

 

 

 

 

 

 

Commercial

 

All

 

Investment in

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

Other

 

Impaired

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Loans

 

Loans

Average impaired loans for the period

 

$

7,509

 

$

2,358

 

$

7,153

 

$

4,451

 

$

1,543

 

$

23,014

Contractual interest income due on impaired loans during the period

 

$

434

 

$

113

 

$

523

 

$

165

 

$

82

 

 

 

Interest income on impaired loans recognized on a cash basis

 

$

200

 

$

-

 

$

16

 

$

138

 

$

8

 

 

 

Interest income on impaired loans recognized on an accrual basis

 

$

48

 

$

-

 

$

29

 

$

-

 

$

37

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Total Recorded

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

All

 

Investment in

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

Other

 

Impaired

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Loans

 

Loans

Impaired loans with a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing

 

$

4,126

 

$

-

 

$

5,117

 

$

767

 

$

-

 

$

10,010

 

 

Restructured accruing

 

 

328

 

 

-

 

 

-

 

 

-

 

 

-

 

 

328

 

 

Restructured non-accruing

 

 

1,766

 

 

-

 

 

-

 

 

772

 

 

-

 

 

2,538

 

Balance

 

$

6,220

 

$

-

 

$

5,117

 

$

1,539

 

$

-

 

$

12,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance

 

$

3,594

 

$

-

 

$

1,207

 

$

123

 

$

-

 

$

4,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans without a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing

 

$

220

 

$

3,170

 

$

238

 

$

1,216

 

$

-

 

$

4,844

 

 

Restructured accruing

 

 

172

 

 

-

 

 

-

 

 

-

 

 

1,442

 

 

1,614

 

 

Restructured non-accruing

 

 

974

 

 

136

 

 

-

 

 

1,479

 

 

287

 

 

2,876

 

Balance

 

$

1,366

 

$

3,306

 

$

238

 

$

2,695

 

$

1,729

 

$

9,334

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accruing

 

$

4,346

 

$

3,170

 

$

5,355

 

$

1,983

 

$

-

 

$

14,854

 

 

Restructured accruing

 

 

500

 

 

-

 

 

-

 

 

-

 

 

1,442

 

 

1,942

 

 

Restructured non-accruing

 

 

2,740

 

 

136

 

 

-

 

 

2,251

 

 

287

 

 

5,414

 

Balance

 

$

7,586

 

$

3,306

 

$

5,355

 

$

4,234

 

$

1,729

 

$

22,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unpaid principal balance in total impaired loans

 

$

11,056

 

$

4,419

 

$

9,909

 

$

6,656

 

$

3,081

 

$

35,121

 

 

 

 

 

December 31, 2018

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Total Recorded

 

 

 

 

 

 

 

 

 

Commercial

 

All

 

Investment in

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

Other

 

Impaired

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Loans

 

Loans

Average impaired loans for the period

 

$

7,685

 

$

770

 

$

5,696

 

$

3,823

 

$

2,237

 

$

20,211

Contractual interest income due on impaired loans during the period

 

$

858

 

$

495

 

$

610

 

$

407

 

$

143

 

 

 

Interest income on impaired loans recognized on a cash basis

 

$

215

 

$

-

 

$

20

 

$

175

 

$

96

 

 

 

Interest income on impaired loans recognized on an accrual basis

 

$

63

 

$

-

 

$

-

 

$

-

 

$

75

 

 

 

Credit Quality

The following tables provide information on the credit quality of the loan portfolio by segment at the dates indicated:

 

 

 

September 30, 2019

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

 

 

 

Residential

 

Residential

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Consumer

 

Mortgage

 

Construction

 

Total

Non-performing loans and assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans (1)

 

$

6,393

 

$

829

 

$

8,454

 

$

3,810

 

$

4,561

 

$

12,574

 

$

-

 

$

36,621

 

Loans 90 days past due

 

 

17

 

 

-

 

 

1,201

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,218

 

Restructured loans

 

 

425

 

 

-

 

 

775

 

 

-

 

 

-

 

 

1,087

 

 

-

 

 

2,287

Total non-performing loans

 

 

6,835

 

 

829

 

 

10,430

 

 

3,810

 

 

4,561

 

 

13,661

 

 

-

 

 

40,126

 

Other real estate owned

 

 

39

 

 

665

 

 

409

 

 

-

 

 

64

 

 

305

 

 

-

 

 

1,482

Total non-performing assets

 

$

6,874

 

$

1,494

 

$

10,839

 

$

3,810

 

$

4,625

 

$

13,966

 

$

-

 

$

41,608

(1) Includes $2.9 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

 

 

 

December 31, 2018

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

 

 

 

Residential

 

Residential

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Consumer

 

Mortgage

 

Construction

 

Total

Non-performing loans and assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans (1)

 

$

7,086

 

$

3,306

 

$

5,355

 

$

4,234

 

$

4,107

 

$

9,336

 

$

159

 

$

33,583

 

Loans 90 days past due

 

 

49

 

 

-

 

 

-

 

 

-

 

 

219

 

 

221

 

 

-

 

 

489

 

Restructured loans

 

 

500

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,442

 

 

-

 

 

1,942

Total non-performing loans

 

 

7,635

 

 

3,306

 

 

5,355

 

 

4,234

 

 

4,326

 

 

10,999

 

 

159

 

 

36,014

 

Other real estate owned

 

 

39

 

 

315

 

 

409

 

 

-

 

 

-

 

 

821

 

 

-

 

 

1,584

Total non-performing assets

 

$

7,674

 

$

3,621

 

$

5,764

 

$

4,234

 

$

4,326

 

$

11,820

 

$

159

 

$

37,598

(1) Includes $4.8 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

 

 

 

Residential

 

Residential

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Consumer

 

Mortgage

 

Construction

 

Total

Past due loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-60 days

 

$

1,429

 

$

2,828

 

$

885

 

$

3,407

 

$

1,834

 

$

11,229

 

$

1,953

 

$

23,565

 

61-90 days

 

 

916

 

 

-

 

 

2,203

 

 

-

 

 

1,185

 

 

3,602

 

 

477

 

 

8,383

 

> 90 days

 

 

17

 

 

-

 

 

1,201

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1,218

 

Total past due

 

 

2,362

 

 

2,828

 

 

4,289

 

 

3,407

 

 

3,019

 

 

14,831

 

 

2,430

 

 

33,166

 

Non-accrual loans (1)

 

 

6,393

 

 

829

 

 

8,454

 

 

3,810

 

 

4,561

 

 

12,574

 

 

-

 

 

36,621

 

Loans acquired with deteriorated credit quality

 

2,590

 

 

-

 

 

9,658

 

 

-

 

 

1,028

 

 

9

 

 

-

 

 

13,285

 

Current loans

 

 

761,274

 

 

675,249

 

 

2,013,620

 

 

1,271,288

 

 

471,922

 

 

1,171,861

 

 

148,262

 

 

6,513,476

 

 

Total loans

 

$

772,619

 

$

678,906

 

$

2,036,021

 

$

1,278,505

 

$

480,530

 

$

1,199,275

 

$

150,692

 

$

6,596,548

(1) Includes $2.9 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

 

 

 

Residential

 

Residential

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Consumer

 

Mortgage

 

Construction

 

Total

Past due loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31-60 days

 

$

2,737

 

$

474

 

$

3,041

 

$

433

 

$

3,871

 

$

8,181

 

$

3,226

 

$

21,963

 

61-90 days

 

 

-

 

 

-

 

 

789

 

 

-

 

 

1,477

 

 

2,517

 

 

-

 

 

4,783

 

> 90 days

 

 

49

 

 

-

 

 

-

 

 

-

 

 

219

 

 

221

 

 

-

 

 

489

 

Total past due

 

 

2,786

 

 

474

 

 

3,830

 

 

433

 

 

5,567

 

 

10,919

 

 

3,226

 

 

27,235

 

Non-accrual loans (1)

 

 

7,086

 

 

3,306

 

 

5,355

 

 

4,234

 

 

4,107

 

 

9,336

 

 

159

 

 

33,583

 

Loans acquired with deteriorated credit quality

 

8,155

 

 

-

 

 

14,328

 

 

2,182

 

 

1,272

 

 

10

 

 

-

 

 

25,947

 

Current loans

 

 

778,237

 

 

677,421

 

 

1,934,882

 

 

1,196,054

 

 

506,893

 

 

1,207,982

 

 

183,400

 

 

6,484,869

 

 

Total loans

 

$

796,264

 

$

681,201

 

$

1,958,395

 

$

1,202,903

 

$

517,839

 

$

1,228,247

 

$

186,785

 

$

6,571,634

(1) Includes $4.8 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

 

The following tables provide information by credit risk rating indicators for each segment of the commercial loan portfolio at the dates indicated:

 

 

 

September 30, 2019

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Total

 

Pass

 

$

756,295

 

$

678,077

 

$

2,014,378

 

$

1,267,241

 

$

4,715,991

 

Special Mention (1)

 

 

2,242

 

 

-

 

 

2,503

 

 

3,501

 

 

8,246

 

Substandard (2)

 

 

14,082

 

 

829

 

 

19,140

 

 

7,763

 

 

41,814

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Total

 

$

772,619

 

$

678,906

 

$

2,036,021

 

$

1,278,505

 

$

4,766,051

(1) Includes $1.0 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

(2) Includes $11.9 million of purchased credit impaired loans acquired from WashingtonFirst and $6.7 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

 

 

 

December 31, 2018

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Total

 

Pass

 

$

773,958

 

$

677,574

 

$

1,934,886

 

$

1,189,903

 

$

4,576,321

 

Special Mention (1)

 

 

1,942

 

 

321

 

 

3,826

 

 

2,738

 

 

8,827

 

Substandard (2)

 

 

20,364

 

 

3,306

 

 

19,683

 

 

10,262

 

 

53,615

 

Doubtful

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Total

 

$

796,264

 

$

681,201

 

$

1,958,395

 

$

1,202,903

 

$

4,638,763

(1) Includes $4.2 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

(2) Includes $24.3 million of purchased credit impaired loans acquired from WashingtonFirst and $7.2 million of loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

Homogeneous loan pools do not have individual loans subjected to internal risk ratings; therefore, the credit indicator applied to these pools is based on their delinquency status. The following tables provide information by credit risk rating indicators for those remaining segments of the loan portfolio at the dates indicated:

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

Residential

 

Residential

 

 

 

(In thousands)

 

Consumer

 

Mortgage

 

Construction

 

Total

 

Performing

 

$

475,969

 

$

1,185,614

 

$

150,692

 

$

1,812,275

 

Non-performing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90 days past due

 

 

-

 

 

-

 

 

-

 

 

-

 

 

Non-accruing (1)

 

 

4,561

 

 

12,574

 

 

-

 

 

17,135

 

 

Restructured loans

 

 

-

 

 

1,087

 

 

-

 

 

1,087

Total

 

$

480,530

 

$

1,199,275

 

$

150,692

 

$

1,830,497

(1) Includes $1.2 million of consumer loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

Residential Real Estate

 

 

 

 

 

 

 

 

 

 

Residential

 

Residential

 

 

 

(In thousands)

 

Consumer

 

Mortgage

 

Construction

 

Total

 

Performing

 

$

513,513

 

$

1,217,248

 

$

186,626

 

$

1,917,387

 

Non-performing:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

90 days past due

 

 

219

 

 

221

 

 

-

 

 

440

 

 

Non-accruing (1)

 

 

4,107

 

 

9,336

 

 

159

 

 

13,602

 

 

Restructured loans

 

 

-

 

 

1,442

 

 

-

 

 

1,442

Total

 

$

517,839

 

$

1,228,247

 

$

186,785

 

$

1,932,871

(1) Includes $1.3 million of consumer loans acquired from WashingtonFirst and considered performing at the Acquisition Date.

During the nine months ended September 30, 2019, the Company restructured $2.0 million in loans that were designated as troubled debt restructurings. No modifications resulted in the reduction of the principal in the associated loan balances. Restructured loans are subject to periodic credit reviews to determine the necessity and adequacy of a specific loan loss allowance based on the collectability of the recorded investment in the restructured loan. Loans restructured during the nine months ended September 30, 2019 had specific reserves of $0.5 million. For the year ended December 31, 2018, the Company restructured $1.6 million in loans. Modifications consisted principally of interest rate concessions, and no modifications resulted in the reduction of the recorded investment in the associated loan balances. Loans restructured during 2018 had specific reserves of $0.6 million at December 31, 2018. The commitments to lend additional funds on loans that have been restructured at September 30, 2019 and December 31, 2018 were not significant.The following table provides the amounts of the restructured loans at the date of restructuring for specific segments of the loan portfolio during the period indicated:

 

 

 

For the Nine Months Ended September 30, 2019

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

All

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

Other

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Loans

 

Total

Troubled debt restructurings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured accruing

 

$

170

 

$

-

 

$

775

 

$

-

 

$

-

 

$

945

 

Restructured non-accruing

 

 

261

 

 

-

 

 

789

 

 

-

 

 

-

 

 

1,050

Balance

 

$

431

 

$

-

 

$

1,564

 

$

-

 

$

-

 

$

1,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific allowance

 

$

243

 

$

-

 

$

214

 

$

-

 

$

-

 

$

457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured and subsequently defaulted

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

For the Year Ended December 31, 2018

 

 

 

 

 

 

Commercial Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

All

 

 

 

 

 

 

 

 

 

Commercial

 

Commercial

 

Owner

 

Other

 

 

 

(In thousands)

 

Commercial

 

AD&C

 

Investor R/E

 

Occupied R/E

 

Loans

 

Total

Troubled debt restructurings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured accruing

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

Restructured non-accruing

 

 

1,464

 

 

-

 

 

-

 

 

158

 

 

-

 

 

1,622

Balance

 

$

1,464

 

$

-

 

$

-

 

$

158

 

$

-

 

$

1,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specific allowance

 

$

563

 

$

-

 

$

-

 

$

-

 

$

-

 

$

563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructured and subsequently defaulted

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

$

-

Other Real Estate Owned

Other real estate owned totaled $1.5 million and $1.6 million at September 30, 2019 and December 31, 2018, respectively. There were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of September 30, 2019.