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

12 Months Ended

Dec. 31, 2019

Financing Receivable, Allowance for Credit Loss [Line Items]

Changes in the Allowance for Loan and Lease Losses

The following tables show a detailed analysis of the ALLL for the years ended December 31, 2019, 2018 and 2017:

	Beginning Balance		Charge-offs			Recoveries		Provision (Recapture)			Ending Balance		Specific Reserve		General Allocation
Year Ended December 31, 2019	(in thousands)
Commercial business:
Secured	$	43,188	$	(10,249	)	$	2,755	$	7,381		$	43,075	$	93	$	42,982
Unsecured	2,626		(75		)	350		184			3,085		—		3,085
Real estate:
One-to-four family residential	593		(2		)	242		(226		)	607		5		602
Commercial and multifamily residential:
Commercial land	3,947		—			286		2,146			6,379		312		6,067
Income property	4,044		—			320		2,062			6,426		—		6,426
Owner occupied	4,533		—			4		1,567			6,104		29		6,075
Real estate construction:
One-to-four family residential:
Land and acquisition	549		—			362		(799		)	112		—		112
Residential construction	5,536		(170		)	3,092		(3,982		)	4,476		—		4,476
Commercial and multifamily residential:
Income property	5,784		—			1		(3,286		)	2,499		—		2,499
Owner occupied	2,604		—			—		702			3,306		—		3,306
Consumer	5,301		(1,400		)	930		(376		)	4,455		22		4,433
PCI	3,611		(3,319		)	3,979		(1,427		)	2,844		—		2,844
Unallocated	1,053		—			—		(453		)	600		—		600
Total	$	83,369	$	(15,215	)	$	12,321	$	3,493		$	83,968	$	461	$	83,507

	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
PCI	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
PCI	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

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,
	2019			2018		2017
	(in thousands)
Beginning balance	$	4,330		$	3,130	$	2,705
Net changes in the allowance for unfunded commitments and letters of credit	(900		)	1,200		425
Ending balance	$	3,430		$	4,330	$	3,130

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, 2019 and 2018:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2019	(in thousands)
Loans, excluding PCI loans
Commercial business:
Secured	$	3,296,776	$	37,394	$	127,477	$	—	$	—	$	3,461,647
Unsecured	129,518		—		165		—		—		129,683
Real estate:
One-to-four family residential	264,051		—		844		—		—		264,895
Commercial and multifamily residential:
Commercial land	283,254		1,344		18,592		—		—		303,190
Income property	2,014,233		5,658		39,470		—		—		2,059,361
Owner occupied	1,757,757		6,158		37,430		—		—		1,801,345
Real estate construction:
One-to-four family residential:
Land and acquisition	1,364		—		—		—		—		1,364
Residential construction	190,301		—		—		—		—		190,301
Commercial and multifamily residential:
Income property	88,389		—		—		—		—		88,389
Owner occupied	73,203		—		—		—		—		73,203
Consumer	289,588		—		2,983		—		—		292,571
Total	$	8,388,434	$	50,554	$	226,961	$	—	$	—	8,665,949
Less:
ALLL											81,124
Loans, excluding PCI loans, net											$	8,584,825

	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:
ALLL											79,758
Loans, excluding PCI loans, net											$	8,221,993

The following is an analysis of the credit quality of our PCI loan portfolio as of December 31, 2019 and 2018:

	Pass		Special Mention		Substandard		Doubtful		Loss		Total
December 31, 2019	(in thousands)
PCI loans:
Commercial business:
Secured	$	6,109	$	962	$	606	$	—	$	—	$	7,677
Unsecured	406		—		—		—		—		406
Real estate:
One-to-four family residential	8,351		—		102		—		—		8,453
Commercial and multifamily residential:
Commercial land	8,720		497		212		—		—		9,429
Income property	18,386		—		297		—		—		18,683
Owner occupied	21,077		—		7,563		—		—		28,640
Consumer	8,758		—		226		—		—		8,984
Total	$	71,807	$	1,459	$	9,006	$	—	$	—	82,272
Less:
Valuation discount resulting from acquisition accounting											4,756
ALLL											2,844
PCI loans, net											$	74,672

	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
Commercial and multifamily residential:
Income property	507		—		—		—		—		507
Consumer	9,326		—		439		—		—		9,765
Total	$	94,337	$	—	$	1,948	$	—	$	—	96,285
Less:
Valuation discount resulting from acquisition accounting											6,525
ALLL											3,611
PCI loans, net											$	86,149