| LOANS AND ALLOWANCE FOR LOAN LOSSES |
4. LOANS AND ALLOWANCE FOR LOAN LOSSES
Loans are stated at their face amount, net of deferred fees and costs, and consist of the following at September 30, 2019 and December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
September 30, 2019 |
|
December 31, 2018 |
Construction and Land Development |
|
$ |
1,201,149 |
|
$ |
1,194,821 |
Commercial Real Estate - Owner Occupied |
|
|
1,979,052 |
|
|
1,337,345 |
Commercial Real Estate - Non-Owner Occupied |
|
|
3,198,580 |
|
|
2,467,410 |
Multifamily Real Estate |
|
|
659,946 |
|
|
548,231 |
Commercial & Industrial |
|
|
2,058,133 |
|
|
1,317,135 |
Residential 1-4 Family - Commercial |
|
|
721,185 |
|
|
640,419 |
Residential 1-4 Family - Consumer |
|
|
913,245 |
|
|
673,909 |
Auto |
|
|
328,456 |
|
|
301,943 |
HELOC |
|
|
660,963 |
|
|
613,383 |
Consumer |
|
|
386,848 |
|
|
379,694 |
Other Commercial |
|
|
199,440 |
|
|
241,917 |
Total loans held for investment, net (1) |
|
$ |
12,306,997 |
|
$ |
9,716,207 |
| (1) |
Loans, as presented, are net of deferred fees and costs totaling $8.1 million and $5.1 million as of September 30, 2019 and December 31, 2018, respectively.
|
The following table shows the aging of the Company’s loan portfolio, by segment, at September 30, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days |
|
60-89 Days |
|
90 Days and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due |
|
Past Due |
|
still Accruing |
|
PCI |
|
Nonaccrual |
|
Current |
|
Total Loans |
Construction and Land Development |
|
$ |
1,062 |
|
$ |
351 |
|
$ |
171 |
|
$ |
8,387 |
|
$ |
7,785 |
|
$ |
1,183,393 |
|
$ |
1,201,149 |
Commercial Real Estate - Owner Occupied |
|
|
4,977 |
|
|
— |
|
|
2,571 |
|
|
27,817 |
|
|
5,684 |
|
|
1,938,003 |
|
|
1,979,052 |
Commercial Real Estate - Non-Owner Occupied |
|
|
5,757 |
|
|
1,878 |
|
|
36 |
|
|
17,285 |
|
|
381 |
|
|
3,173,243 |
|
|
3,198,580 |
Multifamily Real Estate |
|
|
107 |
|
|
164 |
|
|
1,212 |
|
|
93 |
|
|
— |
|
|
658,370 |
|
|
659,946 |
Commercial & Industrial |
|
|
2,079 |
|
|
1,946 |
|
|
265 |
|
|
3,262 |
|
|
1,585 |
|
|
2,048,996 |
|
|
2,058,133 |
Residential 1-4 Family - Commercial |
|
|
1,842 |
|
|
3,081 |
|
|
916 |
|
|
12,237 |
|
|
3,879 |
|
|
699,230 |
|
|
721,185 |
Residential 1-4 Family - Consumer |
|
|
1,527 |
|
|
5,182 |
|
|
3,815 |
|
|
14,977 |
|
|
8,292 |
|
|
879,452 |
|
|
913,245 |
Auto |
|
|
1,787 |
|
|
407 |
|
|
183 |
|
|
7 |
|
|
604 |
|
|
325,468 |
|
|
328,456 |
HELOC |
|
|
4,965 |
|
|
1,747 |
|
|
1,674 |
|
|
4,275 |
|
|
1,641 |
|
|
646,661 |
|
|
660,963 |
Consumer |
|
|
2,000 |
|
|
1,666 |
|
|
1,163 |
|
|
682 |
|
|
84 |
|
|
381,253 |
|
|
386,848 |
Other Commercial |
|
|
579 |
|
|
9 |
|
|
30 |
|
|
713 |
|
|
97 |
|
|
198,012 |
|
|
199,440 |
Total loans held for investment |
|
$ |
26,682 |
|
$ |
16,431 |
|
$ |
12,036 |
|
$ |
89,735 |
|
$ |
30,032 |
|
$ |
12,132,081 |
|
$ |
12,306,997 |
The following table shows the aging of the Company’s loan portfolio, by segment, at December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-59 Days |
|
60-89 Days |
|
90 Days and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due |
|
Past Due |
|
still Accruing |
|
PCI |
|
Nonaccrual |
|
Current |
|
Total Loans |
Construction and Land Development |
|
$ |
759 |
|
$ |
6 |
|
$ |
180 |
|
$ |
8,654 |
|
$ |
8,018 |
|
$ |
1,177,204 |
|
$ |
1,194,821 |
Commercial Real Estate - Owner Occupied |
|
|
8,755 |
|
|
1,142 |
|
|
3,193 |
|
|
25,644 |
|
|
3,636 |
|
|
1,294,975 |
|
|
1,337,345 |
Commercial Real Estate - Non-Owner Occupied |
|
|
338 |
|
|
41 |
|
|
— |
|
|
17,335 |
|
|
1,789 |
|
|
2,447,907 |
|
|
2,467,410 |
Multifamily Real Estate |
|
|
— |
|
|
146 |
|
|
— |
|
|
88 |
|
|
— |
|
|
547,997 |
|
|
548,231 |
Commercial & Industrial |
|
|
3,353 |
|
|
389 |
|
|
132 |
|
|
2,156 |
|
|
1,524 |
|
|
1,309,581 |
|
|
1,317,135 |
Residential 1-4 Family - Commercial |
|
|
6,619 |
|
|
1,577 |
|
|
1,409 |
|
|
13,601 |
|
|
2,481 |
|
|
614,732 |
|
|
640,419 |
Residential 1-4 Family - Consumer |
|
|
12,049 |
|
|
5,143 |
|
|
2,437 |
|
|
16,872 |
|
|
7,276 |
|
|
630,132 |
|
|
673,909 |
Auto |
|
|
3,320 |
|
|
403 |
|
|
195 |
|
|
7 |
|
|
576 |
|
|
297,442 |
|
|
301,943 |
HELOC |
|
|
4,611 |
|
|
1,644 |
|
|
440 |
|
|
5,115 |
|
|
1,518 |
|
|
600,055 |
|
|
613,383 |
Consumer |
|
|
1,504 |
|
|
1,096 |
|
|
870 |
|
|
32 |
|
|
135 |
|
|
376,057 |
|
|
379,694 |
Other Commercial |
|
|
126 |
|
|
— |
|
|
— |
|
|
717 |
|
|
— |
|
|
241,074 |
|
|
241,917 |
Total loans held for investment |
|
$ |
41,434 |
|
$ |
11,587 |
|
$ |
8,856 |
|
$ |
90,221 |
|
$ |
26,953 |
|
$ |
9,537,156 |
|
$ |
9,716,207 |
The following table shows the PCI loan portfolios, by segment and their delinquency status, at September 30, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 Days |
|
Greater than |
|
|
|
|
|
|
|
|
Past Due |
|
90 Days |
|
Current |
|
Total |
Construction and Land Development |
|
$ |
126 |
|
$ |
399 |
|
$ |
7,862 |
|
$ |
8,387 |
Commercial Real Estate - Owner Occupied |
|
|
526 |
|
|
3,262 |
|
|
24,029 |
|
|
27,817 |
Commercial Real Estate - Non-Owner Occupied |
|
|
137 |
|
|
980 |
|
|
16,168 |
|
|
17,285 |
Multifamily Real Estate |
|
|
— |
|
|
— |
|
|
93 |
|
|
93 |
Commercial & Industrial |
|
|
— |
|
|
1,043 |
|
|
2,219 |
|
|
3,262 |
Residential 1-4 Family - Commercial |
|
|
421 |
|
|
479 |
|
|
11,337 |
|
|
12,237 |
Residential 1-4 Family - Consumer |
|
|
844 |
|
|
1,912 |
|
|
12,221 |
|
|
14,977 |
Auto |
|
|
— |
|
|
— |
|
|
7 |
|
|
7 |
HELOC |
|
|
208 |
|
|
287 |
|
|
3,780 |
|
|
4,275 |
Consumer |
|
|
4 |
|
|
15 |
|
|
663 |
|
|
682 |
Other Commercial |
|
|
— |
|
|
— |
|
|
713 |
|
|
713 |
Total |
|
$ |
2,266 |
|
$ |
8,377 |
|
$ |
79,092 |
|
$ |
89,735 |
The following table shows the PCI loan portfolios, by segment and their delinquency status, at December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30-89 Days |
|
Greater than |
|
|
|
|
|
|
|
|
Past Due |
|
90 Days |
|
Current |
|
Total |
Construction and Land Development |
|
$ |
108 |
|
$ |
1,424 |
|
$ |
7,122 |
|
$ |
8,654 |
Commercial Real Estate - Owner Occupied |
|
|
658 |
|
|
4,281 |
|
|
20,705 |
|
|
25,644 |
Commercial Real Estate - Non-Owner Occupied |
|
|
61 |
|
|
1,810 |
|
|
15,464 |
|
|
17,335 |
Multifamily Real Estate |
|
|
— |
|
|
— |
|
|
88 |
|
|
88 |
Commercial & Industrial |
|
|
47 |
|
|
1,092 |
|
|
1,017 |
|
|
2,156 |
Residential 1-4 Family - Commercial |
|
|
871 |
|
|
3,454 |
|
|
9,276 |
|
|
13,601 |
Residential 1-4 Family - Consumer |
|
|
1,959 |
|
|
2,422 |
|
|
12,491 |
|
|
16,872 |
Auto |
|
|
— |
|
|
— |
|
|
7 |
|
|
7 |
HELOC |
|
|
498 |
|
|
252 |
|
|
4,365 |
|
|
5,115 |
Consumer |
|
|
5 |
|
|
9 |
|
|
18 |
|
|
32 |
Other Commercial |
|
|
57 |
|
|
— |
|
|
660 |
|
|
717 |
Total |
|
$ |
4,264 |
|
$ |
14,744 |
|
$ |
71,213 |
|
$ |
90,221 |
The Company measures the amount of impairment by evaluating loans either in their collective homogeneous pools or individually. The following table shows the Company’s impaired loans, excluding PCI loans, by segment at September 30, 2019 and December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
|
Unpaid |
|
|
|
|
|
|
|
Unpaid |
|
|
|
|
|
Recorded |
|
Principal |
|
Related |
|
Recorded |
|
Principal |
|
Related |
|
|
Investment |
|
Balance |
|
Allowance |
|
Investment |
|
Balance |
|
Allowance |
Loans without a specific allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
$ |
9,776 |
|
$ |
14,131 |
|
$ |
— |
|
$ |
10,290 |
|
$ |
12,038 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
|
9,362 |
|
|
9,966 |
|
|
— |
|
|
8,386 |
|
|
9,067 |
|
|
— |
Commercial Real Estate - Non-Owner Occupied |
|
|
2,028 |
|
|
2,578 |
|
|
— |
|
|
6,578 |
|
|
6,929 |
|
|
— |
Multifamily Real Estate |
|
|
1,212 |
|
|
1,212 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Commercial & Industrial |
|
|
2,205 |
|
|
2,221 |
|
|
— |
|
|
3,059 |
|
|
3,251 |
|
|
— |
Residential 1-4 Family - Commercial |
|
|
4,330 |
|
|
4,598 |
|
|
— |
|
|
3,378 |
|
|
3,439 |
|
|
— |
Residential 1-4 Family - Consumer |
|
|
9,432 |
|
|
10,006 |
|
|
— |
|
|
9,642 |
|
|
10,317 |
|
|
— |
HELOC |
|
|
864 |
|
|
867 |
|
|
— |
|
|
1,150 |
|
|
1,269 |
|
|
— |
Consumer |
|
|
— |
|
|
— |
|
|
— |
|
|
30 |
|
|
102 |
|
|
— |
Other Commercial |
|
|
— |
|
|
— |
|
|
— |
|
|
478 |
|
|
478 |
|
|
— |
Total impaired loans without a specific allowance |
|
$ |
39,209 |
|
$ |
45,579 |
|
$ |
— |
|
$ |
42,991 |
|
$ |
46,890 |
|
$ |
— |
Loans with a specific allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
$ |
829 |
|
$ |
868 |
|
$ |
78 |
|
$ |
372 |
|
$ |
491 |
|
$ |
63 |
Commercial Real Estate - Owner Occupied |
|
|
3,570 |
|
|
3,685 |
|
|
234 |
|
|
4,304 |
|
|
4,437 |
|
|
359 |
Commercial Real Estate - Non-Owner Occupied |
|
|
336 |
|
|
384 |
|
|
3 |
|
|
391 |
|
|
391 |
|
|
1 |
Commercial & Industrial |
|
|
1,783 |
|
|
1,810 |
|
|
866 |
|
|
1,183 |
|
|
1,442 |
|
|
752 |
Residential 1-4 Family - Commercial |
|
|
1,763 |
|
|
1,807 |
|
|
170 |
|
|
2,120 |
|
|
2,152 |
|
|
89 |
Residential 1-4 Family - Consumer |
|
|
10,047 |
|
|
10,631 |
|
|
805 |
|
|
6,389 |
|
|
6,645 |
|
|
470 |
Auto |
|
|
605 |
|
|
905 |
|
|
239 |
|
|
576 |
|
|
830 |
|
|
231 |
HELOC |
|
|
1,177 |
|
|
1,312 |
|
|
262 |
|
|
724 |
|
|
807 |
|
|
188 |
Consumer |
|
|
180 |
|
|
345 |
|
|
50 |
|
|
178 |
|
|
467 |
|
|
64 |
Other Commercial |
|
|
565 |
|
|
569 |
|
|
27 |
|
|
— |
|
|
— |
|
|
— |
Total impaired loans with a specific allowance |
|
$ |
20,855 |
|
$ |
22,316 |
|
$ |
2,734 |
|
$ |
16,237 |
|
$ |
17,662 |
|
$ |
2,217 |
Total impaired loans |
|
$ |
60,064 |
|
$ |
67,895 |
|
$ |
2,734 |
|
$ |
59,228 |
|
$ |
64,552 |
|
$ |
2,217 |
The following tables show the average recorded investment and interest income recognized for the Company’s impaired loans, excluding PCI loans, by segment for the three and nine months ended September 30, 2019 and 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2019 |
|
September 30, 2019 |
|
|
|
|
|
Interest |
|
|
|
|
Interest |
|
|
Average |
|
Income |
|
Average |
|
Income |
|
|
Investment |
|
Recognized |
|
Investment |
|
Recognized |
Construction and Land Development |
|
$ |
13,581 |
|
$ |
40 |
|
$ |
13,601 |
|
$ |
351 |
Commercial Real Estate - Owner Occupied |
|
|
13,301 |
|
|
85 |
|
|
13,436 |
|
|
339 |
Commercial Real Estate - Non-Owner Occupied |
|
|
2,748 |
|
|
26 |
|
|
3,543 |
|
|
82 |
Multifamily Real Estate |
|
|
1,217 |
|
|
15 |
|
|
1,234 |
|
|
46 |
Commercial & Industrial |
|
|
3,986 |
|
|
41 |
|
|
4,046 |
|
|
129 |
Residential 1-4 Family - Commercial |
|
|
6,334 |
|
|
41 |
|
|
6,521 |
|
|
125 |
Residential 1-4 Family - Consumer |
|
|
19,802 |
|
|
75 |
|
|
20,007 |
|
|
264 |
Auto |
|
|
691 |
|
|
— |
|
|
781 |
|
|
9 |
HELOC |
|
|
2,125 |
|
|
5 |
|
|
2,242 |
|
|
31 |
Consumer |
|
|
184 |
|
|
2 |
|
|
192 |
|
|
5 |
Other Commercial |
|
|
570 |
|
|
7 |
|
|
579 |
|
|
21 |
Total impaired loans |
|
$ |
64,539 |
|
$ |
337 |
|
$ |
66,182 |
|
$ |
1,402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2018 |
|
September 30, 2018 |
|
|
|
|
|
Interest |
|
|
|
|
Interest |
|
|
Average |
|
Income |
|
Average |
|
Income |
|
|
Investment |
|
Recognized |
|
Investment |
|
Recognized |
Construction and Land Development |
|
$ |
12,481 |
|
$ |
63 |
|
$ |
12,083 |
|
$ |
203 |
Commercial Real Estate - Owner Occupied |
|
|
11,873 |
|
|
102 |
|
|
11,966 |
|
|
322 |
Commercial Real Estate - Non-Owner Occupied |
|
|
6,932 |
|
|
57 |
|
|
7,141 |
|
|
175 |
Commercial & Industrial |
|
|
2,607 |
|
|
15 |
|
|
2,713 |
|
|
57 |
Residential 1-4 Family - Commercial |
|
|
4,233 |
|
|
29 |
|
|
4,322 |
|
|
105 |
Residential 1-4 Family - Consumer |
|
|
16,570 |
|
|
48 |
|
|
16,693 |
|
|
162 |
Auto |
|
|
609 |
|
|
— |
|
|
685 |
|
|
12 |
HELOC |
|
|
1,800 |
|
|
4 |
|
|
1,871 |
|
|
14 |
Consumer |
|
|
180 |
|
|
— |
|
|
218 |
|
|
— |
Other Commercial |
|
|
509 |
|
|
7 |
|
|
538 |
|
|
22 |
Total impaired loans |
|
$ |
57,794 |
|
$ |
325 |
|
$ |
58,230 |
|
$ |
1,072 |
The Company considers TDRs to be impaired loans. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession that it would not otherwise consider to the borrower for economic or legal reasons related to the borrower’s financial difficulties. All loans that are considered to be TDRs are evaluated for impairment in accordance with the Company’s allowance for loan loss methodology and are included in the preceding impaired loan tables. For the three and nine months ended September 30, 2019, the recorded investment in TDRs prior to modifications was not materially impacted by the modifications.
The following table provides a summary, by segment, of TDRs that continue to accrue interest under the terms of the applicable restructuring agreement, which are considered to be performing, and TDRs that have been placed on nonaccrual status, which are considered to be nonperforming, as of September 30, 2019 and December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 |
|
December 31, 2018 |
|
|
No. of |
|
Recorded |
|
Outstanding |
|
No. of |
|
Recorded |
|
Outstanding |
|
|
Loans |
|
Investment |
|
Commitment |
|
Loans |
|
Investment |
|
Commitment |
Performing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
4 |
|
$ |
1,130 |
|
$ |
— |
|
5 |
|
$ |
2,496 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
6 |
|
|
2,228 |
|
|
— |
|
8 |
|
|
2,783 |
|
|
— |
Commercial Real Estate - Non-Owner Occupied |
|
1 |
|
|
1,089 |
|
|
— |
|
4 |
|
|
4,438 |
|
|
— |
Commercial & Industrial |
|
5 |
|
|
1,123 |
|
|
— |
|
4 |
|
|
978 |
|
|
— |
Residential 1-4 Family - Commercial |
|
5 |
|
|
293 |
|
|
— |
|
8 |
|
|
1,075 |
|
|
— |
Residential 1-4 Family - Consumer |
|
64 |
|
|
8,738 |
|
|
— |
|
52 |
|
|
6,882 |
|
|
— |
HELOC |
|
2 |
|
|
56 |
|
|
— |
|
2 |
|
|
58 |
|
|
— |
Consumer |
|
4 |
|
|
31 |
|
|
— |
|
1 |
|
|
13 |
|
|
— |
Other Commercial |
|
1 |
|
|
468 |
|
|
— |
|
1 |
|
|
478 |
|
|
— |
Total performing |
|
92 |
|
$ |
15,156 |
|
$ |
— |
|
85 |
|
$ |
19,201 |
|
$ |
— |
Nonperforming |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
— |
|
$ |
— |
|
$ |
— |
|
2 |
|
$ |
3,474 |
|
$ |
— |
Commercial Real Estate - Owner Occupied |
|
2 |
|
|
180 |
|
|
— |
|
2 |
|
|
198 |
|
|
— |
Commercial & Industrial |
|
1 |
|
|
56 |
|
|
— |
|
6 |
|
|
461 |
|
|
— |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
|
— |
|
1 |
|
|
60 |
|
|
— |
Residential 1-4 Family - Consumer |
|
18 |
|
|
3,288 |
|
|
— |
|
15 |
|
|
3,135 |
|
|
— |
HELOC |
|
2 |
|
|
58 |
|
|
— |
|
2 |
|
|
62 |
|
|
— |
Consumer |
|
— |
|
|
— |
|
|
— |
|
1 |
|
|
7 |
|
|
— |
Total nonperforming |
|
23 |
|
$ |
3,582 |
|
$ |
— |
|
29 |
|
$ |
7,397 |
|
$ |
— |
Total performing and nonperforming |
|
115 |
|
$ |
18,738 |
|
$ |
— |
|
114 |
|
$ |
26,598 |
|
$ |
— |
The Company considers a default of a TDR to occur when the borrower is 90 days past due following the restructure or a foreclosure and repossession of the applicable collateral occurs. During the three and nine months ended September 30, 2019 and 2018, the Company did not have any material loans that went into default that had been restructured in the twelve-month period prior to the time of default.
The following table shows, by segment and modification type, TDRs that occurred during the three and nine months ended September 30, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
All Restructurings |
|
|
Three Months Ended September 30, 2019 |
|
Nine Months Ended September 30, 2019 |
|
|
|
|
Recorded |
|
|
|
Recorded |
|
|
No. of |
|
Investment at |
|
No. of |
|
Investment at |
|
|
Loans |
|
Period End |
|
Loans |
|
Period End |
Modified to interest only, at a market rate |
|
|
|
|
|
|
|
|
|
|
Total interest only at market rate of interest |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Term modification, at a market rate |
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial |
|
1 |
|
$ |
376 |
|
1 |
|
$ |
376 |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
1 |
|
|
73 |
Residential 1-4 Family - Consumer |
|
1 |
|
|
461 |
|
4 |
|
|
761 |
Consumer |
|
2 |
|
|
18 |
|
3 |
|
|
26 |
Total loan term extended at a market rate |
|
4 |
|
$ |
855 |
|
9 |
|
$ |
1,236 |
|
|
|
|
|
|
|
|
|
|
|
Term modification, below market rate |
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
2 |
|
$ |
164 |
|
2 |
|
$ |
164 |
Residential 1-4 Family - Consumer |
|
5 |
|
|
883 |
|
17 |
|
|
2,211 |
Consumer |
|
— |
|
|
— |
|
1 |
|
|
5 |
Total loan term extended at a below market rate |
|
7 |
|
$ |
1,047 |
|
20 |
|
$ |
2,380 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
11 |
|
$ |
1,902 |
|
29 |
|
$ |
3,616 |
|
|
|
|
|
|
|
|
|
|
|
The following table shows, by segment and modification type, TDRs that occurred during the three and nine months ended September 30, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
All Restructurings |
|
|
Three Months Ended September 30, 2018 |
|
Nine Months Ended September 30, 2018 |
|
|
|
|
Recorded |
|
|
|
Recorded |
|
|
No. of |
|
Investment at |
|
No. of |
|
Investment at |
|
|
Loans |
|
Period End |
|
Loans |
|
Period End |
Modified to interest only, at a market rate |
|
|
|
|
|
|
|
|
|
|
Total interest only at market rate of interest |
|
— |
|
$ |
— |
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
Term modification, at a market rate |
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
2 |
|
$ |
3,545 |
|
4 |
|
$ |
4,809 |
Commercial Real Estate - Owner Occupied |
|
— |
|
|
— |
|
5 |
|
|
1,371 |
Commercial Real Estate - Non-Owner Occupied |
|
1 |
|
|
1,089 |
|
1 |
|
|
1,089 |
Commercial & Industrial |
|
2 |
|
|
278 |
|
3 |
|
|
339 |
Residential 1-4 Family - Commercial |
|
— |
|
|
— |
|
1 |
|
|
71 |
Residential 1-4 Family - Consumer |
|
— |
|
|
— |
|
6 |
|
|
759 |
Consumer |
|
1 |
|
|
14 |
|
1 |
|
|
14 |
Total loan term extended at a market rate |
|
6 |
|
$ |
4,926 |
|
21 |
|
$ |
8,452 |
|
|
|
|
|
|
|
|
|
|
|
Term modification, below market rate |
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate - Non-Owner Occupied |
|
1 |
|
$ |
2,782 |
|
1 |
|
$ |
2,782 |
Residential 1-4 Family - Consumer |
|
9 |
|
|
1,598 |
|
16 |
|
|
2,612 |
HELOC |
|
2 |
|
|
46 |
|
2 |
|
|
46 |
Total loan term extended at a below market rate |
|
12 |
|
$ |
4,426 |
|
19 |
|
$ |
5,440 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
18 |
|
$ |
9,352 |
|
40 |
|
$ |
13,892 |
|
|
|
|
|
|
|
|
|
|
|
The following tables show the ALL activity by segment for the nine months ended September 30, 2019 and 2018. The tables below include the provision for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2019 |
|
|
Allowance for loan losses |
|
|
Balance, |
|
Recoveries |
|
Loans |
|
Provision |
|
Balance, |
|
|
beginning of |
|
credited to |
|
charged |
|
charged to |
|
end of |
|
|
the year |
|
allowance |
|
off |
|
operations |
|
period |
Construction and Land Development |
|
$ |
6,803 |
|
$ |
269 |
|
$ |
(4,028) |
|
$ |
2,863 |
|
$ |
5,907 |
Commercial Real Estate - Owner Occupied |
|
|
4,023 |
|
|
118 |
|
|
(483) |
|
|
361 |
|
|
4,019 |
Commercial Real Estate - Non-Owner Occupied |
|
|
8,865 |
|
|
95 |
|
|
(270) |
|
|
996 |
|
|
9,686 |
Multifamily Real Estate |
|
|
649 |
|
|
85 |
|
|
— |
|
|
46 |
|
|
780 |
Commercial & Industrial |
|
|
7,636 |
|
|
936 |
|
|
(2,162) |
|
|
2,739 |
|
|
9,149 |
Residential 1-4 Family - Commercial |
|
|
1,692 |
|
|
244 |
|
|
(397) |
|
|
50 |
|
|
1,589 |
Residential 1-4 Family - Consumer |
|
|
1,492 |
|
|
256 |
|
|
(108) |
|
|
158 |
|
|
1,798 |
Auto |
|
|
1,443 |
|
|
452 |
|
|
(957) |
|
|
614 |
|
|
1,552 |
HELOC |
|
|
1,297 |
|
|
589 |
|
|
(570) |
|
|
(179) |
|
|
1,137 |
Consumer and all other(1) |
|
|
7,145 |
|
|
1,896 |
|
|
(12,215) |
|
|
11,377 |
|
|
8,203 |
Total |
|
$ |
41,045 |
|
$ |
4,940 |
|
$ |
(21,190) |
|
$ |
19,025 |
|
$ |
43,820 |
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2018 |
|
|
Allowance for loan losses |
|
|
Balance, |
|
Recoveries |
|
Loans |
|
Provision |
|
Balance, |
|
|
beginning of |
|
credited to |
|
charged |
|
charged to |
|
end of |
|
|
the year |
|
allowance |
|
off |
|
operations |
|
period |
Construction and Land Development |
|
$ |
9,709 |
|
$ |
400 |
|
$ |
(703) |
|
$ |
(1,218) |
|
$ |
8,188 |
Commercial Real Estate - Owner Occupied |
|
|
2,931 |
|
|
488 |
|
|
(174) |
|
|
(300) |
|
|
2,945 |
Commercial Real Estate - Non-Owner Occupied |
|
|
7,544 |
|
|
82 |
|
|
(94) |
|
|
806 |
|
|
8,338 |
Multifamily Real Estate |
|
|
1,092 |
|
|
5 |
|
|
— |
|
|
525 |
|
|
1,622 |
Commercial & Industrial |
|
|
4,552 |
|
|
413 |
|
|
(692) |
|
|
2,429 |
|
|
6,702 |
Residential 1-4 Family - Commercial |
|
|
4,437 |
|
|
306 |
|
|
(137) |
|
|
(2,512) |
|
|
2,094 |
Residential 1-4 Family - Consumer |
|
|
1,524 |
|
|
235 |
|
|
(640) |
|
|
770 |
|
|
1,889 |
Auto |
|
|
975 |
|
|
365 |
|
|
(759) |
|
|
760 |
|
|
1,341 |
HELOC |
|
|
1,360 |
|
|
554 |
|
|
(488) |
|
|
(70) |
|
|
1,356 |
Consumer and all other(1) |
|
|
4,084 |
|
|
1,234 |
|
|
(6,412) |
|
|
7,913 |
|
|
6,819 |
Total |
|
$ |
38,208 |
|
$ |
4,082 |
|
$ |
(10,099) |
|
$ |
9,103 |
|
$ |
41,294 |
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
The following tables show the loan and ALL balances based on impairment methodology by segment as of September 30, 2019 and December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019 |
|
|
Loans individually |
|
Loans collectively |
|
Loans acquired with |
|
|
|
|
|
|
|
|
evaluated for |
|
evaluated for |
|
deteriorated credit |
|
|
|
|
|
|
|
|
impairment |
|
impairment |
|
quality |
|
Total |
|
|
Loans |
|
ALL |
|
Loans |
|
ALL |
|
Loans |
|
ALL |
|
Loans |
|
ALL |
Construction and Land Development |
|
$ |
10,605 |
|
$ |
78 |
|
$ |
1,182,157 |
|
$ |
5,829 |
|
$ |
8,387 |
|
$ |
— |
|
$ |
1,201,149 |
|
$ |
5,907 |
Commercial Real Estate - Owner Occupied |
|
|
12,932 |
|
|
234 |
|
|
1,938,303 |
|
|
3,785 |
|
|
27,817 |
|
|
— |
|
|
1,979,052 |
|
|
4,019 |
Commercial Real Estate - Non-Owner Occupied |
|
|
2,364 |
|
|
3 |
|
|
3,178,931 |
|
|
9,683 |
|
|
17,285 |
|
|
— |
|
|
3,198,580 |
|
|
9,686 |
Multifamily Real Estate |
|
|
1,212 |
|
|
— |
|
|
658,641 |
|
|
780 |
|
|
93 |
|
|
— |
|
|
659,946 |
|
|
780 |
Commercial & Industrial |
|
|
3,988 |
|
|
866 |
|
|
2,050,883 |
|
|
8,066 |
|
|
3,262 |
|
|
217 |
|
|
2,058,133 |
|
|
9,149 |
Residential 1-4 Family - Commercial |
|
|
6,093 |
|
|
170 |
|
|
702,855 |
|
|
1,419 |
|
|
12,237 |
|
|
— |
|
|
721,185 |
|
|
1,589 |
Residential 1-4 Family - Consumer |
|
|
19,479 |
|
|
805 |
|
|
878,789 |
|
|
993 |
|
|
14,977 |
|
|
— |
|
|
913,245 |
|
|
1,798 |
Auto |
|
|
605 |
|
|
239 |
|
|
327,844 |
|
|
1,313 |
|
|
7 |
|
|
— |
|
|
328,456 |
|
|
1,552 |
HELOC |
|
|
2,041 |
|
|
262 |
|
|
654,647 |
|
|
875 |
|
|
4,275 |
|
|
— |
|
|
660,963 |
|
|
1,137 |
Consumer and all other(1) |
|
|
745 |
|
|
77 |
|
|
584,148 |
|
|
8,126 |
|
|
1,395 |
|
|
— |
|
|
586,288 |
|
|
8,203 |
Total loans held for investment, net |
|
$ |
60,064 |
|
$ |
2,734 |
|
$ |
12,157,198 |
|
$ |
40,869 |
|
$ |
89,735 |
|
$ |
217 |
|
$ |
12,306,997 |
|
$ |
43,820 |
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
|
Loans individually |
|
Loans collectively |
|
Loans acquired with |
|
|
|
|
|
|
|
|
evaluated for |
|
evaluated for |
|
deteriorated credit |
|
|
|
|
|
|
|
|
impairment |
|
impairment |
|
quality |
|
Total |
|
|
Loans |
|
ALL |
|
Loans |
|
ALL |
|
Loans |
|
ALL |
|
Loans |
|
ALL |
Construction and Land Development |
|
$ |
10,662 |
|
$ |
63 |
|
$ |
1,175,505 |
|
$ |
6,740 |
|
$ |
8,654 |
|
$ |
— |
|
$ |
1,194,821 |
|
$ |
6,803 |
Commercial Real Estate - Owner Occupied |
|
|
12,690 |
|
|
359 |
|
|
1,299,011 |
|
|
3,664 |
|
|
25,644 |
|
|
— |
|
|
1,337,345 |
|
|
4,023 |
Commercial Real Estate - Non-Owner Occupied |
|
|
6,969 |
|
|
1 |
|
|
2,443,106 |
|
|
8,864 |
|
|
17,335 |
|
|
— |
|
|
2,467,410 |
|
|
8,865 |
Multifamily Real Estate |
|
|
— |
|
|
— |
|
|
548,143 |
|
|
649 |
|
|
88 |
|
|
— |
|
|
548,231 |
|
|
649 |
Commercial & Industrial |
|
|
4,242 |
|
|
752 |
|
|
1,310,737 |
|
|
6,884 |
|
|
2,156 |
|
|
— |
|
|
1,317,135 |
|
|
7,636 |
Residential 1-4 Family - Commercial |
|
|
5,498 |
|
|
89 |
|
|
621,320 |
|
|
1,603 |
|
|
13,601 |
|
|
— |
|
|
640,419 |
|
|
1,692 |
Residential 1-4 Family - Consumer |
|
|
16,031 |
|
|
470 |
|
|
641,006 |
|
|
1,022 |
|
|
16,872 |
|
|
— |
|
|
673,909 |
|
|
1,492 |
Auto |
|
|
576 |
|
|
231 |
|
|
301,360 |
|
|
1,212 |
|
|
7 |
|
|
— |
|
|
301,943 |
|
|
1,443 |
HELOC |
|
|
1,874 |
|
|
188 |
|
|
606,394 |
|
|
1,109 |
|
|
5,115 |
|
|
— |
|
|
613,383 |
|
|
1,297 |
Consumer and all other(1) |
|
|
686 |
|
|
64 |
|
|
620,176 |
|
|
7,081 |
|
|
749 |
|
|
— |
|
|
621,611 |
|
|
7,145 |
Total loans held for investment, net |
|
$ |
59,228 |
|
$ |
2,217 |
|
$ |
9,566,758 |
|
$ |
38,828 |
|
$ |
90,221 |
|
$ |
— |
|
$ |
9,716,207 |
|
$ |
41,045 |
(1)Consumer and Other Commercial are grouped together as Consumer and all other for reporting purposes.
The Company uses a risk rating system and past due status as the primary credit quality indicators for the loan categories. The risk rating system on a scale of 0 through 9 is used to determine risk level as used in the calculation of the ALL; on those loans without a risk rating, the Company uses past due status to determine risk level. The risk levels, as described below, do not necessarily follow the regulatory definitions of risk levels with the same name. A general description of the characteristics of the risk levels follows:
Pass is determined by the following criteria:
|
● |
Risk rated 0 loans have little or no risk and are with General Obligation Municipal Borrowers; |
|
● |
Risk rated 1 loans have little or no risk and are generally secured by cash or cash equivalents; |
|
● |
Risk rated 2 loans have minimal risk to well qualified borrowers and no significant questions as to safety; |
|
● |
Risk rated 3 loans are satisfactory loans with strong borrowers and secondary sources of repayment; |
|
● |
Risk rated 4 loans are satisfactory loans with borrowers not as strong as risk rated 3 loans and may exhibit a greater degree of financial risk based on the type of business supporting the loan; or |
|
● |
Loans that are not risk rated but that are 0 to 29 days past due. |
Watch & Special Mention is determined by the following criteria:
|
● |
Risk rated 5 loans are watch loans that warrant more than the normal level of supervision and have the possibility of an event occurring that may weaken the borrower’s ability to repay; |
|
● |
Risk rated 6 loans have increasing potential weaknesses beyond those at which the loan originally was granted and if not addressed could lead to inadequately protecting the Company’s credit position; or |
|
● |
Loans that are not risk rated but that are 30 to 89 days past due. |
Substandard is determined by the following criteria:
|
● |
Risk rated 7 loans are substandard loans and are inadequately protected by the current sound worth or paying capacity of the obligor or the collateral pledged; these have well defined weaknesses that jeopardize the liquidation of the debt with the distinct possibility the Company will sustain some loss if the deficiencies are not corrected; or |
|
● |
Loans that are not risk rated but that are 90 to 149 days past due. |
Doubtful is determined by the following criteria:
|
● |
Risk rated 8 loans are doubtful of collection and the possibility of loss is high but pending specific borrower plans for recovery, its classification as a loss is deferred until its more exact status is determined; |
|
● |
Risk rated 9 loans are loss loans which are considered uncollectable and of such little value that their continuance as bankable assets is not warranted; or |
|
● |
Loans that are not risk rated but that are over 149 days past due. |
The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of September 30, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
Watch & Special Mention |
|
Substandard |
|
Doubtful |
|
Total |
Construction and Land Development |
|
$ |
1,148,732 |
|
$ |
33,136 |
|
$ |
10,894 |
|
$ |
— |
|
$ |
1,192,762 |
Commercial Real Estate - Owner Occupied |
|
|
1,850,909 |
|
|
78,451 |
|
|
21,730 |
|
|
145 |
|
|
1,951,235 |
Commercial Real Estate - Non-Owner Occupied |
|
|
3,124,018 |
|
|
54,884 |
|
|
2,297 |
|
|
96 |
|
|
3,181,295 |
Multifamily Real Estate |
|
|
645,193 |
|
|
13,448 |
|
|
1,212 |
|
|
— |
|
|
659,853 |
Commercial & Industrial |
|
|
1,949,546 |
|
|
99,337 |
|
|
5,988 |
|
|
— |
|
|
2,054,871 |
Residential 1-4 Family - Commercial |
|
|
679,023 |
|
|
22,772 |
|
|
7,153 |
|
|
— |
|
|
708,948 |
Residential 1-4 Family - Consumer |
|
|
871,391 |
|
|
4,584 |
|
|
22,293 |
|
|
— |
|
|
898,268 |
Auto |
|
|
324,396 |
|
|
1,990 |
|
|
2,063 |
|
|
— |
|
|
328,449 |
HELOC |
|
|
644,019 |
|
|
6,529 |
|
|
6,140 |
|
|
— |
|
|
656,688 |
Consumer |
|
|
384,744 |
|
|
1,182 |
|
|
240 |
|
|
— |
|
|
386,166 |
Other Commercial |
|
|
196,511 |
|
|
2,057 |
|
|
159 |
|
|
— |
|
|
198,727 |
Total |
|
$ |
11,818,482 |
|
$ |
318,370 |
|
$ |
80,169 |
|
$ |
241 |
|
$ |
12,217,262 |
The following table shows the recorded investment in all loans, excluding PCI loans, by segment with their related risk level as of December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
Watch & Special Mention |
|
Substandard |
|
Doubtful |
|
Total |
Construction and Land Development |
|
$ |
1,130,577 |
|
$ |
43,894 |
|
$ |
11,696 |
|
$ |
— |
|
$ |
1,186,167 |
Commercial Real Estate - Owner Occupied |
|
|
1,231,422 |
|
|
50,939 |
|
|
29,340 |
|
|
— |
|
|
1,311,701 |
Commercial Real Estate - Non-Owner Occupied |
|
|
2,425,500 |
|
|
17,648 |
|
|
6,927 |
|
|
— |
|
|
2,450,075 |
Multifamily Real Estate |
|
|
537,572 |
|
|
10,571 |
|
|
— |
|
|
— |
|
|
548,143 |
Commercial & Industrial |
|
|
1,273,549 |
|
|
34,864 |
|
|
6,566 |
|
|
— |
|
|
1,314,979 |
Residential 1-4 Family - Commercial |
|
|
606,955 |
|
|
14,876 |
|
|
4,987 |
|
|
— |
|
|
626,818 |
Residential 1-4 Family - Consumer |
|
|
624,346 |
|
|
17,065 |
|
|
15,626 |
|
|
— |
|
|
657,037 |
Auto |
|
|
296,907 |
|
|
3,590 |
|
|
1,439 |
|
|
— |
|
|
301,936 |
HELOC |
|
|
598,444 |
|
|
6,316 |
|
|
3,508 |
|
|
— |
|
|
608,268 |
Consumer |
|
|
378,873 |
|
|
547 |
|
|
242 |
|
|
— |
|
|
379,662 |
Other Commercial |
|
|
239,857 |
|
|
864 |
|
|
479 |
|
|
— |
|
|
241,200 |
Total |
|
$ |
9,344,002 |
|
$ |
201,174 |
|
$ |
80,810 |
|
$ |
— |
|
$ |
9,625,986 |
The following table shows the recorded investment in only PCI loans by segment with their related risk level as of September 30, 2019 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
Watch & Special Mention |
|
Substandard |
|
Doubtful |
|
Total |
Construction and Land Development |
|
$ |
1,233 |
|
$ |
3,993 |
|
$ |
3,161 |
|
$ |
— |
|
$ |
8,387 |
Commercial Real Estate - Owner Occupied |
|
|
8,273 |
|
|
10,845 |
|
|
8,699 |
|
|
— |
|
|
27,817 |
Commercial Real Estate - Non-Owner Occupied |
|
|
3,855 |
|
|
9,533 |
|
|
3,897 |
|
|
— |
|
|
17,285 |
Multifamily Real Estate |
|
|
— |
|
|
93 |
|
|
— |
|
|
— |
|
|
93 |
Commercial & Industrial |
|
|
115 |
|
|
57 |
|
|
3,090 |
|
|
— |
|
|
3,262 |
Residential 1-4 Family - Commercial |
|
|
6,490 |
|
|
2,780 |
|
|
2,967 |
|
|
— |
|
|
12,237 |
Residential 1-4 Family - Consumer |
|
|
10,074 |
|
|
233 |
|
|
4,670 |
|
|
— |
|
|
14,977 |
Auto |
|
|
3 |
|
|
— |
|
|
4 |
|
|
— |
|
|
7 |
HELOC |
|
|
3,092 |
|
|
607 |
|
|
576 |
|
|
— |
|
|
4,275 |
Consumer |
|
|
660 |
|
|
4 |
|
|
18 |
|
|
— |
|
|
682 |
Other Commercial |
|
|
122 |
|
|
591 |
|
|
— |
|
|
— |
|
|
713 |
Total |
|
$ |
33,917 |
|
$ |
28,736 |
|
$ |
27,082 |
|
$ |
— |
|
$ |
89,735 |
The following table shows the recorded investment in only PCI loans by segment with their related risk level as of December 31, 2018 (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass |
|
Watch & Special Mention |
|
Substandard |
|
Doubtful |
|
Total |
Construction and Land Development |
|
$ |
1,835 |
|
$ |
1,308 |
|
$ |
5,511 |
|
$ |
— |
|
$ |
8,654 |
Commercial Real Estate - Owner Occupied |
|
|
8,347 |
|
|
6,685 |
|
|
10,612 |
|
|
— |
|
|
25,644 |
Commercial Real Estate - Non-Owner Occupied |
|
|
4,789 |
|
|
7,992 |
|
|
4,554 |
|
|
— |
|
|
17,335 |
Multifamily Real Estate |
|
|
— |
|
|
88 |
|
|
— |
|
|
— |
|
|
88 |
Commercial & Industrial |
|
|
762 |
|
|
134 |
|
|
1,260 |
|
|
— |
|
|
2,156 |
Residential 1-4 Family - Commercial |
|
|
6,476 |
|
|
2,771 |
|
|
4,354 |
|
|
— |
|
|
13,601 |
Residential 1-4 Family - Consumer |
|
|
9,930 |
|
|
1,030 |
|
|
5,912 |
|
|
— |
|
|
16,872 |
Auto |
|
|
7 |
|
|
— |
|
|
— |
|
|
— |
|
|
7 |
HELOC |
|
|
3,438 |
|
|
1,031 |
|
|
646 |
|
|
— |
|
|
5,115 |
Consumer |
|
|
17 |
|
|
— |
|
|
15 |
|
|
— |
|
|
32 |
Other Commercial |
|
|
57 |
|
|
660 |
|
|
— |
|
|
— |
|
|
717 |
Total |
|
$ |
35,658 |
|
$ |
21,699 |
|
$ |
32,864 |
|
$ |
— |
|
$ |
90,221 |
Loans acquired are originally recorded at fair value, with certain loans being identified as impaired at the date of purchase. The fair values were determined based on the credit quality of the portfolio, expected future cash flows, and timing of those expected future cash flows.
The following shows changes in the accretable yield for loans accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, for the periods presented (dollars in thousands):
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, |
|
|
2019 |
|
2018 |
Balance at beginning of period |
|
$ |
31,201 |
|
$ |
14,563 |
Additions |
|
|
2,432 |
|
|
12,225 |
Accretion |
|
|
(9,830) |
|
|
(6,666) |
Reclass of nonaccretable difference due to improvement in expected cash flows |
|
|
1,372 |
|
|
360 |
Measurement period adjustment |
|
|
2,629 |
|
|
2,981 |
Other, net (1) |
|
|
5,083 |
|
|
1,845 |
Balance at end of period |
|
$ |
32,887 |
|
$ |
25,308 |
| (1) |
This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate PCI loans, and discounted payoffs that occurred in the quarter. |
The carrying value of the Company’s PCI loan portfolio, accounted for under ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality, totaled $89.7 million at September 30, 2019 and $90.2 million at December 31, 2018. The outstanding balance of the Company’s PCI loan portfolio totaled $113.8 million at September 30, 2019 and $113.5 million at December 31, 2018. The carrying value of the Company’s acquired performing loan portfolio, accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs, totaled $3.3 billion at September 30, 2019 and $2.0 billion at December 31, 2018; the remaining discount on these loans totaled $54.1 million at September 30, 2019 and $30.3 million at December 31, 2018.
|