Allowance for Loan and Lease Losses and Unfunded Commitments and Letters of Credit (Tables)

12 Months Ended

Dec. 31, 2017

Financing Receivable, Allowance for Credit Losses [Line Items]

Changes in the Allowance for Loan and Lease Losses

The following tables show a detailed analysis of the allowance for loans for the years ended December 31, 2017, 2016 and 2015:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Year Ended December 31, 2017	(in thousands)
Commercial business:
Secured	$	36,050	$	(7,524	)	$	4,283	$	(3,468	)	$	29,341	$	1,867	$	27,474
Unsecured	960		(89		)	553		576			2,000		3		1,997
Real estate:
One-to-four family residential	599		(460		)	568		(6		)	701		103		598
Commercial and multifamily residential:
Commercial land	1,797		—			53		2,415			4,265		—		4,265
Income property	7,342		(287		)	498		(1,881		)	5,672		185		5,487
Owner occupied	6,439		—			124		(1,104		)	5,459		3		5,456
Real estate construction:
One-to-four family residential:
Land and acquisition	316		(14		)	72		589			963		—		963
Residential construction	669		—			106		2,934			3,709		—		3,709
Commercial and multifamily residential:
Income property	404		—			1		6,648			7,053		—		7,053
Owner occupied	1,192		—			—		3,221			4,413		—		4,413
Consumer	3,534		(1,474		)	1,187		1,916			5,163		199		4,964
Purchased credit impaired	10,515		(6,812		)	6,187		(2,983		)	6,907		—		6,907
Unallocated	226		—			—		(226		)	—		—		—
Total	$	70,043	$	(16,660	)	$	13,632	$	8,631		$	75,646	$	2,360	$	73,286

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Year Ended December 31, 2016	(in thousands)
Commercial business:
Secured	$	32,321	$	(9,993	)	$	2,483	$	11,239		$	36,050	$	664	$	35,386
Unsecured	1,299		(75		)	162		(426		)	960		—		960
Real estate:
One-to-four family residential	916		(35		)	171		(453		)	599		12		587
Commercial and multifamily residential:
Commercial land	1,178		(26		)	2		643			1,797		—		1,797
Income property	6,616		—			966		(240		)	7,342		27		7,315
Owner occupied	5,550		(63		)	434		518			6,439		—		6,439
Real estate construction:
One-to-four family residential:
Land and acquisition	339		(88		)	57		8			316		1		315
Residential construction	733		—			234		(298		)	669		—		669
Commercial and multifamily residential:
Income property	388		—			109		(93		)	404		—		404
Owner occupied	1,006		—			—		186			1,192		—		1,192
Consumer	3,531		(1,238		)	933		308			3,534		57		3,477
Purchased credit impaired	13,726		(9,944		)	7,004		(271		)	10,515		—		10,515
Unallocated	569		—			—		(343		)	226		—		226
Total	$	68,172	$	(21,462	)	$	12,555	$	10,778		$	70,043	$	761	$	69,282

	Beginning Balance		Charge-offs			Recoveries		Provision (Recovery)			Ending Balance		Specific Reserve		General Allocation
Year ended December 31, 2015	(in thousands)
Commercial business:
Secured	$	25,923	$	(7,486	)	$	2,069	$	11,815		$	32,321	$	321	$	32,000
Unsecured	927		(780		)	267		885			1,299		—		1,299
Real estate:
One-to-four family residential	2,281		(376		)	307		(1,296		)	916		314		602
Commercial and multifamily residential:
Commercial land	799		—			291		88			1,178		—		1,178
Income property	9,159		(390		)	3,568		(5,721		)	6,616		—		6,616
Owner occupied	5,007		(115		)	116		542			5,550		—		5,550
Real estate construction:
One-to-four family residential:
Land and acquisition	1,197		—			103		(961		)	339		—		339
Residential construction	1,860		—			90		(1,217		)	733		3		730
Commercial and multifamily residential:
Income property	622		—			8		(242		)	388		—		388
Owner occupied	434		—			—		572			1,006		—		1,006
Consumer	3,180		(2,066		)	931		1,486			3,531		15		3,516
Purchased credit impaired	16,336		(13,854		)	7,329		3,915			13,726		—		13,726
Unallocated	1,844		—			—		(1,275		)	569		—		569
Total	$	69,569	$	(25,067	)	$	15,079	$	8,591		$	68,172	$	653	$	67,519

Changes in the Allowance for Unfunded Commitments and Letters of Credit

Changes in the allowance for unfunded commitments and letters of credit, a component of “Other liabilities” in the Consolidated Balance Sheets, are summarized as follows:

	Years Ended December 31,
	2017		2016			2015
	(in thousands)
Beginning balance	$	2,705	$	2,930		$	2,655
Net changes in the allowance for unfunded commitments and letters of credit	425		(225		)	275
Ending balance	$	3,130	$	2,705		$	2,930

Financing Receivable Credit Quality Indicators [Table Text Block]

The following is an analysis of the credit quality of our loan portfolio, excluding PCI loans as of December 31, 2017 and 2016:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2017	(in thousands)
Loans, excluding PCI loans
Commercial business:
Secured	$	3,049,031	$	64,600	$	122,030	$	—	$	—	$	3,235,661
Unsecured	123,621		—		554		—		—		124,175
Real estate:
One-to-four family residential	183,312		1,186		2,056		—		—		186,554
Commercial and multifamily residential:
Commercial land	283,673		5,204		7,104		—		—		295,981
Income property	1,857,832		17,181		31,323		—		—		1,906,336
Owner occupied	1,546,775		7,380		45,831		—		—		1,599,986
Real estate construction:
One-to-four family residential:
Land and acquisition	9,882		—		25		—		—		9,907
Residential construction	187,863		—		1,828		—		—		189,691
Commercial and multifamily residential:
Income property	293,028		—		—		—		—		293,028
Owner occupied	68,393		—		4,050		—		—		72,443
Consumer	323,129		—		9,096		—		—		332,225
Total	$	7,926,539	$	95,551	$	223,897	$	—	$	—	8,245,987
Less:
Allowance for loan losses											68,739
Loans, excluding PCI loans, net											$	8,177,248

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2016	(in thousands)
Loans, excluding PCI loans
Commercial business:
Secured	$	2,289,307	$	65,846	$	96,437	$	—	$	—	$	2,451,590
Unsecured	93,721		800		216		—		—		94,737
Real estate:
One-to-four family residential	164,797		395		2,740		—		—		167,932
Commercial and multifamily residential:
Commercial land	263,195		3,228		4,391		—		—		270,814
Income property	1,341,978		17,902		9,866		—		—		1,369,746
Owner occupied	1,027,019		6,608		26,351		—		—		1,059,978
Real estate construction:
One-to-four family residential:
Land and acquisition	11,541		—		15		—		—		11,556
Residential construction	108,941		—		688		—		—		109,629
Commercial and multifamily residential:
Income property	103,779		—		—		—		—		103,779
Owner occupied	98,948		88		4,444		—		—		103,480
Consumer	317,728		—		6,794		—		—		324,522
Total	$	5,820,954	$	94,867	$	151,942	$	—	$	—	6,067,763
Less:
Allowance for loan losses											59,528
Loans, excluding PCI loans, net											$	6,008,235

The following is an analysis of the credit quality of our PCI loan portfolio as of December 31, 2017 and 2016:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2017	(in thousands)
PCI loans:
Commercial business:
Secured	$	11,918	$	—	$	723	$	—	$	—	$	12,641
Unsecured	1,045		—		67		—		—		1,112
Real estate:
One-to-four family residential	13,817		—		793		—		—		14,610
Commercial and multifamily residential:
Commercial land	9,460		349		—		—		—		9,809
Income property	25,981		—		35		—		—		26,016
Owner occupied	42,617		—		769		—		—		43,386
Real estate construction:
One-to-four family residential:
Land and acquisition	169		—		8		—		—		177
Residential construction	—		—		—		—		—		—
Commercial and multifamily residential:
Income property	595		—		—		—		—		595
Owner occupied	—		—		—		—		—		—
Consumer	11,705		—		707		—		—		12,412
Total	$	117,307	$	349	$	3,102	$	—	$	—	120,758
Less:
Valuation discount resulting from acquisition accounting											8,088
Allowance for loan losses											6,907
PCI loans, net											$	105,763

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2016	(in thousands)
PCI loans:
Commercial business:
Secured	$	18,824	$	92	$	1,954	$	—	$	—	$	20,870
Unsecured	736		—		—		—		—		736
Real estate:
One-to-four family residential	19,293		—		1,350		—		—		20,643
Commercial and multifamily residential:
Commercial land	7,333		—		213		—		—		7,546
Income property	31,042		—		1,678		—		—		32,720
Owner occupied	53,623		—		906		—		—		54,529
Real estate construction:
One-to-four family residential:
Land and acquisition	744		—		88		—		—		832
Residential construction	—		—		—		—		—		—
Commercial and multifamily residential:
Income property	1,217		—		—		—		—		1,217
Owner occupied	509		—		—		—		—		509
Consumer	17,202		—		447		—		—		17,649
Total	$	150,523	$	92	$	6,636	$	—	$	—	157,251
Less:
Valuation discount resulting from acquisition accounting											11,591
Allowance for loan losses											10,515
PCI loans, net											$	135,145