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

12 Months Ended

Dec. 31, 2018

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, 2018, 2017 and 2016:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recapture)			Ending Balance		Specific Reserve		General Allocation
Year Ended December 31, 2018	(in thousands)
Commercial business:
Secured	$	29,341	$	(11,560	)	$	3,024	$	22,383		$	43,188	$	2,023	$	41,165
Unsecured	2,000		(159		)	403		382			2,626		—		2,626
Real estate:
One-to-four family residential	701		—			408		(516		)	593		8		585
Commercial and multifamily residential:
Commercial land	4,265		—			99		(417		)	3,947		—		3,947
Income property	5,672		(780		)	912		(1,760		)	4,044		1		4,043
Owner occupied	5,459		—			20		(946		)	4,533		69		4,464
Real estate construction:
One-to-four family residential:
Land and acquisition	963		—			726		(1,140		)	549		—		549
Residential construction	3,709		—			890		937			5,536		—		5,536
Commercial and multifamily residential:
Income property	7,053		—			—		(1,269		)	5,784		—		5,784
Owner occupied	4,413		—			—		(1,809		)	2,604		—		2,604
Consumer	5,163		(1,194		)	1,180		152			5,301		31		5,270
Purchased credit impaired	6,907		(4,862		)	3,847		(2,281		)	3,611		—		3,611
Unallocated	—		—			—		1,053			1,053		—		1,053
Total	$	75,646	$	(18,555	)	$	11,509	$	14,769		$	83,369	$	2,132	$	81,237

	Beginning Balance		Charge-offs			Recoveries		Provision (Recapture)			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 (Recapture)			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

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,
	2018		2017		2016
	(in thousands)
Beginning balance	$	3,130	$	2,705	$	2,930
Net changes in the allowance for unfunded commitments and letters of credit	1,200		425		(225		)
Ending balance	$	4,330	$	3,130	$	2,705

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, 2018 and 2017:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2018	(in thousands)
Loans, excluding PCI loans
Commercial business:
Secured	$	3,160,910	$	48,779	$	103,007	$	5	$	—	$	3,312,701
Unsecured	112,091		21		—		5		—		112,117
Real estate:
One-to-four family residential	234,416		—		1,610		—		—		236,026
Commercial and multifamily residential:
Commercial land	276,348		5,082		4,247		—		—		285,677
Income property	1,876,925		36,998		6,553		—		—		1,920,476
Owner occupied	1,556,852		14,964		45,935		—		—		1,617,751
Real estate construction:
One-to-four family residential:
Land and acquisition	4,099		—		318		—		—		4,417
Residential construction	212,225		—		171		—		—		212,396
Commercial and multifamily residential:
Income property	194,912		—		—		—		—		194,912
Owner occupied	87,063		—		—		—		—		87,063
Consumer	313,817		—		4,398		—		—		318,215
Total	$	8,029,658	$	105,844	$	166,239	$	10	$	—	8,301,751
Less:
Allowance for loan losses											79,758
Loans, excluding PCI loans, net											$	8,221,993

	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

The following is an analysis of the credit quality of our PCI loan portfolio as of December 31, 2018 and 2017:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2018	(in thousands)
PCI loans:
Commercial business:
Secured	$	8,041	$	—	$	840	$	—	$	—	$	8,881
Unsecured	692		—		99		—		—		791
Real estate:
One-to-four family residential	9,633		—		215		—		—		9,848
Commercial and multifamily residential:
Commercial land	10,363		—		—		—		—		10,363
Income property	19,680		—		—		—		—		19,680
Owner occupied	35,944		—		353		—		—		36,297
Real estate construction:
One-to-four family residential:
Land and acquisition	151		—		2		—		—		153
Residential construction	—		—		—		—		—		—
Commercial and multifamily residential:
Income property	507		—		—		—		—		507
Owner occupied	—		—		—		—		—		—
Consumer	9,326		—		439		—		—		9,765
Total	$	94,337	$	—	$	1,948	$	—	$	—	96,285
Less:
Valuation discount resulting from acquisition accounting											6,525
Allowance for loan losses											3,611
PCI loans, net											$	86,149

	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