Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND THE ALLOWANCE FOR LOAN LOSSES The following is a summary of loans by major category at December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Loan portfolio composition (Dollars in thousands) Real estate loans: Residential $ 52,437 $ 51,197 Commercial 8,316,382 8,395,327 Construction 296,146 275,076 Total real estate loans 8,664,965 8,721,600 Commercial business 2,558,351 2,127,630 Trade finance 160,859 197,190 Consumer and other 889,090 1,051,486 Total loans outstanding 12,273,265 12,097,906 Deferred loan costs, net 2,742 209 Loans receivable 12,276,007 12,098,115 Allowance for loan losses (94,144 ) (92,557 ) Loans receivable, net of allowance for loan losses $ 12,181,863 $ 12,005,558 The loan portfolio is made up of four segments: real estate loans, commercial business, trade finance, and consumer and other. Real estate loans are extended for the purchase and refinance of commercial real estate and are generally secured by first deeds of trust and are collateralized by residential or commercial properties. Commercial business loans are loans provided to businesses for various purposes such as for working capital, purchasing inventory, debt refinancing, business acquisitions and other business related financing needs. Trade finance loans generally serves businesses involved in international trade activities. Consumer and other loans consist mostly of single family residential mortgage loans but also includes home equity, credit cards, and other personal loans. The four segments are further segregated between loans accounted for under the amortized cost method (“Legacy Loans”), and previously acquired loans that were originally recorded at fair value with no carryover of the related pre-acquisition allowance for loan losses (“Acquired Loans”). Acquired Loans are further segregated between purchased credit impaired loans (loans with credit deterioration on the date of acquisition and accounted for under ASC 310-30, or “PCI loans”), and Acquired Performing Loans (loans that were pass graded on the acquisition date and the fair value adjustment is amortized over the contractual life under ASC 310-20, or “non-PCI loans”). The following table presents changes in the accretable discount on PCI loans for the years ended December 31, 2019 and 2018 : Year ended December 31, 2019 2018 (Dollars in thousands) Balance at beginning of period $ 49,697 $ 55,002 Accretion (23,874 ) (21,837 ) Reclassification from nonaccretable difference 12,330 16,532 Balance at end of period $ 38,153 $ 49,697 On the acquisition date, the amount by which the undiscounted expected cash flows exceed the estimated fair value of PCI loans is considered the “accretable yield”. The accretable yield is measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the loans. The accretable yield may change from period to period due to the following: 1) estimates of the remaining life of acquired loans will affect the amount of future interest income; 2) indices for variable rates of interest on PCI loans may change; and 3) estimates of the amount of the contractual principal and interest that will not be collected (nonaccretable difference) may change. The following tables detail the activity in the allowance for loan losses by portfolio segment for the years indicated: Legacy Loans Acquired Loans Total Real Estate Commercial Business Trade Finance Consumer and Other Real Commercial Business Trade Finance Consumer and Other (Dollars in thousands) December 31, 2019 Balance, beginning of period $ 49,446 $ 21,826 $ 719 $ 6,269 $ 7,321 $ 5,939 $ — $ 1,037 $ 92,557 Provision (credit) for loan losses (2,993 ) 9,517 (481 ) 1,978 (482 ) (120 ) — (119 ) 7,300 Loans charged off (1,159 ) (4,121 ) — (1,144 ) (644 ) (965 ) — (76 ) (8,109 ) Recoveries of charge offs 1,706 1,083 216 34 398 297 — 2 3,736 PCI allowance adjustment — — — — — (878 ) — (462 ) (1,340 ) Balance, end of period $ 47,000 $ 28,305 $ 454 $ 7,137 $ 6,593 $ 4,273 $ — $ 382 $ 94,144 December 31, 2018 Balance, beginning of period $ 45,360 $ 17,228 $ 1,674 $ 3,385 $ 13,322 $ 3,527 $ 42 $ 3 $ 84,541 Provision (credit) for loan losses 9,334 3,389 (588 ) 4,098 (5,551 ) 3,253 (42 ) 1,007 14,900 Loans charged off (6,273 ) (1,400 ) (408 ) (1,245 ) (453 ) (1,083 ) — (13 ) (10,875 ) Recoveries of charge offs 1,025 2,609 41 31 3 242 — 40 3,991 Balance, end of period $ 49,446 $ 21,826 $ 719 $ 6,269 $ 7,321 $ 5,939 $ — $ 1,037 $ 92,557 December 31, 2017 Balance, beginning of period $ 38,956 $ 23,430 $ 1,897 $ 2,116 $ 12,791 $ 117 $ — $ 36 $ 79,343 Provision (credit) for loan losses 8,524 (1,036 ) 1,825 2,207 1,341 4,500 42 (43 ) 17,360 Loans charged off (2,292 ) (9,881 ) (2,104 ) (943 ) (850 ) (1,315 ) — (25 ) (17,410 ) Recoveries of charged offs 172 4,715 56 5 40 225 — 35 5,248 Balance, end of period $ 45,360 $ 17,228 $ 1,674 $ 3,385 $ 13,322 $ 3,527 $ 42 $ 3 $ 84,541 The following tables break out the allowance for loan losses and the recorded investment of loans outstanding (not including accrued interest receivable and net deferred loan costs or fees) by individually impaired, general valuation, and PCI impairment, by portfolio segment at December 31, 2019 and December 31, 2018 : December 31, 2019 Legacy Loans Acquired Loans Total Real Commercial Business Trade Finance Consumer and Other Real Commercial Business Trade Finance Consumer and Other (Dollars in thousands) Allowance for loan losses: Individually evaluated for impairment $ 202 $ 2,198 $ — $ 11 $ 110 $ 875 $ — $ 6 $ 3,402 Collectively evaluated for impairment 46,798 26,107 454 7,126 1,818 353 — 7 82,663 PCI loans — — — — 4,665 3,045 — 369 8,079 Total $ 47,000 $ 28,305 $ 454 $ 7,137 $ 6,593 $ 4,273 $ — $ 382 $ 94,144 Loans outstanding: Individually evaluated for impairment $ 37,218 $ 19,044 $ 103 $ 2,202 $ 27,380 $ 3,695 $ — $ 852 $ 90,494 Collectively evaluated for impairment 7,445,529 2,479,744 160,756 843,061 1,057,074 48,968 — 42,070 12,077,202 PCI loans — — — — 97,764 6,900 — 905 105,569 Total $ 7,482,747 $ 2,498,788 $ 160,859 $ 845,263 $ 1,182,218 $ 59,563 $ — $ 43,827 $ 12,273,265 December 31, 2018 Legacy Loans Acquired Loans Total Real Commercial Business Trade Finance Consumer and Other Real Commercial Business Trade Finance Consumer and Other (Dollars in thousands) Allowance for loan losses: Individually evaluated for impairment $ 176 $ 4,221 $ — $ 3 $ 261 $ 130 $ — $ — $ 4,791 Collectively evaluated for impairment 49,270 17,605 719 6,266 1,264 460 — 19 75,603 PCI loans — — — — 5,796 5,349 — 1,018 12,163 Total $ 49,446 $ 21,826 $ 719 $ 6,269 $ 7,321 $ 5,939 $ — $ 1,037 $ 92,557 Loans outstanding: Individually evaluated for impairment $ 39,976 $ 29,624 $ 5,887 $ 441 $ 18,080 $ 5,734 $ 3,124 $ 1,141 $ 104,007 Collectively evaluated for impairment 7,037,392 1,988,067 188,179 910,292 1,507,858 80,916 — 133,942 11,846,646 PCI loans — — — — 118,294 23,289 — 5,670 147,253 Total $ 7,077,368 $ 2,017,691 $ 194,066 $ 910,733 $ 1,644,232 $ 109,939 $ 3,124 $ 140,753 $ 12,097,906 At December 31, 2019 and December 31, 2018 , the balance of PCI loans that had credit deterioration subsequent to acquisition was $18.8 million and $57.9 million , respectively. PCI loans with subsequent credit deterioration had an allowance for loan losses balance of $8.1 million and $12.2 million at December 31, 2019 and December 31, 2018 , respectively As of December 31, 2019 and December 31, 2018 , the reserves for unfunded commitments recorded in other liabilities was $636 thousand and $736 thousand , respectively. For the years ended December 31, 2019 and 2018 , the Company recorded reductions to reserves for unfunded commitments recorded in credit related expenses totaling $100 thousand . The recorded investment of individually impaired loans and the total impaired loans net of specific allowance is presented in the following table as of the dates indicated: December 31, 2019 December 31, 2018 (Dollars in thousands) With allocated specific allowance: Without charge-off $ 33,344 $ 35,365 With charge-off 3,453 681 With no allocated specific allowance: Without charge-off 41,904 59,607 With charge-off 11,793 8,354 Specific allowance on impaired loans (3,402 ) (4,791 ) Impaired loans, net of specific allowance $ 87,092 $ 99,216 The following tables detail the recorded investment of impaired loans (Legacy Loans and Acquired Loans that became impaired subsequent to being originated and acquired, respectfully) by portfolio segment, the average recorded investment, and interest income recognized during the year. Loans with no related allowance for loan losses are believed by management to be adequately collateralized. As of December 31, 2019 Year Ended December 31, 2019 Total Impaired Loans (1) Recorded Investment (2) Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (2) Interest Income Recognized during Impairment (Dollars in thousands) With related allowance: Real estate – residential $ — $ — $ — $ — $ — Real estate – commercial Retail 2,593 2,904 66 2,105 48 Hotel & motel 1,877 5,925 65 1,723 — Gas station & car wash 54 55 2 35 — Mixed use 611 709 10 763 6 Industrial & warehouse 8,168 9,481 155 6,465 351 Other 2,636 2,902 14 3,337 88 Real estate – construction — — — — — Commercial business 19,254 20,849 3,073 21,814 601 Trade finance 103 103 — 606 2 Consumer and other 1,501 1,581 17 1,010 4 Subtotal $ 36,797 $ 44,509 $ 3,402 $ 37,858 $ 1,100 With no related allowance: Real estate – residential $ — $ — $ — $ — $ — Real estate – commercial Retail 4,557 5,027 — 10,657 172 Hotel & motel 9,024 16,831 — 9,917 — Gas station & car wash 217 2,671 — 433 — Mixed use 3,229 3,246 — 4,844 198 Industrial & warehouse 12,757 14,261 — 11,168 206 Other 8,710 13,811 — 10,880 260 Real estate – construction 10,165 10,165 — 2,033 — Commercial business 3,485 8,628 — 8,545 126 Trade finance — — — 4,127 — Consumer and other 1,553 1,577 — 1,515 — Subtotal $ 53,697 $ 76,217 $ — $ 64,119 $ 962 Total $ 90,494 $ 120,726 $ 3,402 $ 101,977 $ 2,062 __________________________________ (1) Impaired loans exclude acquired PCI loans (2) Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts As of December 31, 2019 Year Ended December 31, 2019 Impaired acquired loans (1) Recorded Investment (2) Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (2) Interest Income Recognized during Impairment (Dollars in thousands) With related allowance: Real estate – residential $ — $ — $ — $ — $ — Real estate – commercial Retail 759 833 20 646 — Hotel & motel 54 345 1 65 — Gas station & car wash 54 55 2 35 — Mixed use 273 282 9 293 6 Industrial & warehouse 229 1,012 74 269 — Other 1,712 1,712 4 1,142 71 Real estate – construction — — — — — Commercial business 3,575 3,795 875 3,490 213 Trade finance — — — — — Consumer and other 738 781 6 255 — Subtotal $ 7,394 $ 8,815 $ 991 $ 6,195 $ 290 With no related allowance: Real estate – residential $ — $ — $ — $ — $ — Real estate – commercial Retail 3,635 3,833 — 4,913 172 Hotel & motel 5,003 6,681 — 5,287 — Gas station & car wash 217 2,671 — 215 — Mixed use — — — 1,564 — Industrial & warehouse 93 894 — 61 — Other 5,186 9,279 — 4,180 260 Real estate – construction 10,165 10,165 — 2,033 — Commercial business 120 1,413 — 1,034 — Trade finance — — — 1,902 — Consumer and other 114 137 — 649 — Subtotal $ 24,533 $ 35,073 $ — $ 21,838 $ 432 Total $ 31,927 $ 43,888 $ 991 $ 28,033 $ 722 __________________________________ (1) Impaired loans exclude acquired PCI loans (2) Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts As of December 31, 2018 Year Ended December 31, 2018 Total Impaired Loans (1) Recorded Investment (2) Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (2) Interest Income Recognized during Impairment (Dollars in thousands) With related allowance: Real estate – residential $ — $ — $ — $ 50 $ — Real estate – commercial Retail 1,375 1,487 156 3,554 30 Hotel & motel 1,949 2,310 119 2,700 — Gas station & car wash — — — — — Mixed use 881 947 43 2,032 6 Industrial & warehouse 1,305 2,139 93 1,579 70 Other 7,759 8,174 26 6,038 372 Real estate – construction — — — — — Commercial business 22,203 23,928 4,351 23,146 511 Trade finance — — — 2,143 — Consumer and other 575 575 3 710 7 Subtotal $ 36,047 $ 39,560 $ 4,791 $ 41,952 $ 996 With no related allowance: Real estate – residential $ — $ — $ — $ — $ — Real estate – commercial Retail 8,005 11,234 — 9,913 143 Hotel & motel 10,877 22,590 — 6,085 — Gas station & car wash 545 3,653 — 520 19 Mixed use 7,048 7,058 — 3,404 347 Industrial & warehouse 12,343 13,467 — 11,560 298 Other 5,969 7,122 — 13,107 106 Real estate – construction — — — 520 — Commercial business 13,155 17,850 — 18,041 531 Trade finance 9,011 9,011 — 5,405 487 Consumer and other 1,007 1,156 — 1,457 — Subtotal $ 67,960 $ 93,141 $ — $ 70,012 $ 1,931 Total $ 104,007 $ 132,701 $ 4,791 $ 111,964 $ 2,927 __________________________________ (1) Impaired loans exclude acquired PCI loans (2) Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts As of December 31, 2018 Year Ended December 31, 2018 Impaired acquired loans (1) Recorded Investment (2) Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (2) Interest Income Recognized during Impairment (Dollars in thousands) With related allowance: Real estate – residential $ — $ — $ — $ 50 $ — Real estate – commercial Retail 198 220 118 510 — Hotel & motel 72 345 4 78 — Gas station & car wash — — — — — Mixed use 312 312 38 1,813 6 Industrial & warehouse 230 1,050 88 246 — Other 3,454 3,454 13 2,133 221 Real estate – construction — — — — — Commercial business 4,064 5,041 130 5,380 162 Trade finance — — — — — Consumer and other 144 144 — 89 7 Subtotal $ 8,474 $ 10,566 $ 391 $ 10,299 $ 396 With no related allowance: Real estate – residential $ — $ — $ — $ — $ — Real estate – commercial Retail 3,285 4,151 — 3,202 123 Hotel & motel 5,428 6,874 — 2,685 — Gas station & car wash 247 2,673 — 176 — Mixed use 3,722 3,726 — 789 148 Industrial & warehouse 119 894 — 253 — Other 1,013 1,326 — 4,662 39 Real estate – construction — — — — — Commercial business 1,670 2,681 — 4,658 92 Trade finance 3,124 3,124 — 3,134 189 Consumer and other 997 1,144 — 1,298 — Subtotal $ 19,605 $ 26,593 $ — $ 20,857 $ 591 Total $ 28,079 $ 37,159 $ 391 $ 31,156 $ 987 __________________________________ (1) Impaired loans exclude acquired PCI loans (2) Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts Year Ended December 31, 2017 Total Impaired Loans (1) Average Recorded Investment (2) Interest Income Recognized during Impairment (Dollars in thousands) With related allowance: Real estate – residential $ — $ — Real estate – commercial Retail 1,120 — Hotel & motel 4,050 67 Gas station & car wash 43 — Mixed use 245 6 Industrial & warehouse 1,135 — Other 11,707 237 Real estate – construction — — Commercial business 23,695 631 Trade finance 2,842 217 Consumer and other 240 4 Subtotal $ 45,077 $ 1,162 With no related allowance: Real estate – residential $ 1,105 $ — Real estate – commercial Retail 12,288 434 Hotel & motel 7,245 — Gas station & car wash 3,168 — Mixed use 3,496 — Industrial & warehouse 8,676 262 Other 17,116 608 Real estate – construction 1,611 — Commercial business 16,312 697 Trade finance 2,994 253 Consumer and other 1,225 25 Subtotal $ 75,236 $ 2,279 Total $ 120,313 $ 3,441 __________________________________ (1) Impaired loans exclude acquired PCI loans (2) Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts Year Ended December 31, 2017 Impaired acquired loans (1) Average Recorded Investment (2) Interest Income Recognized during Impairment (Dollars in thousands) With related allowance: Real estate – residential $ — $ — Real estate – commercial Retail 851 — Hotel & motel 105 — Gas station & car wash — — Mixed use 179 6 Industrial & warehouse 225 — Other 319 17 Real estate – construction — — Commercial business 1,111 47 Trade finance — — Consumer and other — — Subtotal $ 2,790 $ 70 With no related allowance: Real estate – residential $ 235 $ — Real estate – commercial Retail 2,866 141 Hotel & motel 3,086 — Gas station & car wash 619 — Mixed use 2,191 — Industrial & warehouse 59 3 Other 5,190 340 Real estate – construction — — Commercial business 5,794 182 Trade finance 1,274 248 Consumer and other 645 7 Subtotal $ 21,959 $ 921 Total $ 24,749 $ 991 __________________________________ (1) Impaired loans exclude acquired PCI loans (2) Unpaid contractual principal balance less charge offs, interest collected applied to principal if on nonaccrual and purchase discounts Generally, loans are placed on nonaccrual status if principal and/or interest payments become 90 days or more past due and/or management deems the collectability of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to customers whose financial condition has deteriorated are considered for nonaccrual status whether or not the loan is 90 days or more past due. Generally, payments received on nonaccrual loans are recorded as principal reductions. Loans are returned to accrual status only when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The Company did not recognize any cash basis interest income for the twelve months ended December 31, 2019 or 2018 . The following table represents the recorded investment of nonaccrual loans and loans past due 90 or more days and still on accrual status by class of loans as of December 31, 2019 or 2018 . Nonaccrual Loans (1) Accruing Loans Past Due 90 or More Days December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 (Dollars in thousands) Legacy Loans: Real estate – residential $ — $ — $ — $ — Real estate – commercial Retail 2,029 5,153 449 — Hotel & motel 5,844 7,325 — — Gas station & car wash — 31 — — Mixed use 505 749 634 — Industrial & warehouse 10,222 6,111 — — Other 4,176 5,940 919 — Real estate – construction — — 3,850 — Commercial business 10,204 14,837 1,096 — Trade finance — 1,661 — — Consumer and other 2,105 441 599 243 Subtotal $ 35,085 $ 42,248 $ 7,547 $ 243 Acquired Loans: (2) Real estate – residential $ — $ — $ — $ — Real estate – commercial Retail 905 829 — — Hotel & motel 5,057 5,500 — 1,286 Gas station & car wash 271 247 — — Mixed use 160 1,224 — — Industrial & warehouse 322 349 — — Other 1,279 259 — — Real estate – construction 10,165 — — — Commercial business 689 1,632 — — Trade finance — — — — Consumer and other 852 998 — — Subtotal $ 19,700 $ 11,038 $ — $ 1,286 Total $ 54,785 $ 53,286 $ 7,547 $ 1,529 __________________________________ (1) Total nonaccrual loans exclude guaranteed portion of delinquent SBA loans that are in liquidation totaling $28.1 million and $29.2 million , at December 31, 2019 and December 31, 2018 , respectively. (2) Acquired Loans exclude PCI loans. The following tables present the recorded investment of past due loans, including nonaccrual loans past due 30 or more days, by the number of days past due as of December 31, 2019 and December 31, 2018 by class of loans: As of December 31, 2019 As of December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 or More Days Past Due Total Past Due 30-59 Days 60-89 Days 90 or More Days Past Due Total (Dollars in thousands) Legacy Loans: Real estate – residential $ — $ — $ — $ — $ — $ — $ — $ — Real estate – commercial Retail 1,083 1,424 2,417 4,924 733 — 809 1,542 Hotel & motel 821 936 2,025 3,782 153 — 5,215 5,368 Gas station & car wash 318 1,984 — 2,302 — — 31 31 Mixed use 593 — 801 1,394 — — — — Industrial & warehouse — — 3,853 3,853 1,465 — 1,922 3,387 Other — — 3,409 3,409 1,837 — 2,405 4,242 Real estate – construction — — 3,850 3,850 — — — — Commercial business 344 126 5,475 5,945 5,500 435 7,003 12,938 Trade finance — — — — 1,036 — 1,661 2,697 Consumer and other 8,871 914 2,175 11,960 16,413 140 247 16,800 Subtotal $ 12,030 $ 5,384 $ 24,005 $ 41,419 $ 27,137 $ 575 $ 19,293 $ 47,005 Acquired Loans: (1) Real estate – residential $ — $ — $ — $ — $ — $ — $ — $ — Real estate – commercial Retail — — 620 620 347 — 602 949 Hotel & motel 525 — 4,384 4,909 — — 5,206 5,206 Gas station & car wash 679 54 196 929 154 — 221 375 Mixed use — — — — 107 — 1,034 1,141 Industrial & warehouse 94 45 93 232 142 — 119 261 Other 811 785 295 1,891 183 219 — 402 Real estate – construction — — 10,165 10,165 — — — — Commercial business 57 226 242 525 397 613 253 1,263 Trade finance — — — — — — — — Consumer and other 981 — 477 1,458 — — 334 334 Subtotal $ 3,147 $ 1,110 $ 16,472 $ 20,729 $ 1,330 $ 832 $ 7,769 $ 9,931 Total Past Due $ 15,177 $ 6,494 $ 40,477 $ 62,148 $ 28,467 $ 1,407 $ 27,062 $ 56,936 __________________________________ (1) Acquired Loans exclude PCI loans. Loans accounted for under ASC 310-30 are generally considered accruing and performing and the accretable discount is accreted to interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due can still considered to be accruing and performing loans. The loans may be classified as nonaccrual if the timing and amount of future cash flows is not reasonably estimable. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans with the exception of homogeneous loans, or loans that are evaluated together in pools of similar loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans). Homogeneous loans are not risk rated and credit risk is analyzed largely by the number of days past due. This analysis is performed at least on a quarterly basis. The following tables presents the recorded investment of risk ratings for Legacy and Acquired Loans as of December 31, 2019 and December 31, 2018 by class of loans: December 31, 2019 Pass/ Not Rated Special Mention Substandard Doubtful Total (Dollars in thousands) Legacy Loans: Real estate – residential $ 48,414 $ — $ 143 $ — $ 48,557 Real estate – commercial Retail 1,884,336 29,478 38,164 — 1,951,978 Hotel & motel 1,482,398 1,237 20,864 — 1,504,499 Gas station & car wash 738,988 1,707 4,560 — 745,255 Mixed use 634,186 1,974 8,211 — 644,371 Industrial & warehouse 834,514 7,641 35,739 — 877,894 Other 1,386,594 15,625 21,994 — 1,424,213 Real estate – construction 253,765 24,641 7,574 — 285,980 Commercial business 2,435,892 38,160 24,723 13 2,498,788 Trade finance 160,859 — — — 160,859 Consumer and other 842,947 157 2,159 — 845,263 Subtotal $ 10,702,893 $ 120,620 $ 164,131 $ 13 $ 10,987,657 Acquired Loans: Real estate – residential $ 3,563 $ — $ 317 $ — $ 3,880 Real estate – commercial Retail 322,519 3,442 10,597 — 336,558 Hotel & motel 147,647 158 11,294 — 159,099 Gas station & car wash 92,852 454 2,953 — 96,259 Mixed use 65,268 2,932 8,144 — 76,344 Industrial & warehouse 138,928 4,039 10,015 — 152,982 Other 311,674 9,791 25,466 — 346,931 Real estate – construction — — 10,165 — 10,165 Commercial business 45,185 7 14,371 — 59,563 Trade finance — — — — — Consumer and other 41,993 9 1,825 — 43,827 Subtotal $ 1,169,629 $ 20,832 $ 95,147 $ — $ 1,285,608 Total $ 11,872,522 $ 141,452 $ 259,278 $ 13 $ 12,273,265 December 31, 2018 Pass/ Special Mention Substandard Doubtful Total (Dollars in thousands) Legacy Loans: Real estate – residential $ 44,066 $ — $ 546 $ — $ 44,612 Real estate – commercial Retail 1,815,170 18,072 30,686 — 1,863,928 Hotel & motel 1,389,349 21,932 15,869 — 1,427,150 Gas station & car wash 814,291 2,810 2,464 — 819,565 Mixed use 510,021 12,480 13,292 — 535,793 Industrial & warehouse 711,236 1,665 38,332 — 751,233 Other 1,326,795 35,539 34,618 — 1,396,952 Real estate – construction 227,231 10,904 — — 238,135 Commercial business 1,944,783 18,220 54,688 — 2,017,691 Trade finance 191,508 — 2,558 — 194,066 Consumer and other 910,292 — 441 — 910,733 Subtotal $ 9,884,742 $ 121,622 $ 193,494 $ — $ 10,199,858 Acquired Loans: Real estate – residential $ 5,812 $ 393 $ 380 $ — $ 6,585 Real estate – commercial Retail 483,939 4,651 17,332 35 505,957 Hotel & motel 186,761 807 19,472 — 207,040 Gas station & car wash 148,702 274 6,032 — 155,008 Mixed use 77,100 3,986 8,151 — 89,237 Industrial & warehouse 171,574 9,451 18,071 223 199,319 Other 402,247 12,902 28,996 — 444,145 Real estate – construction 29,058 7,883 — — 36,941 Commercial business 89,611 1,083 19,237 8 109,939 Trade finance — — 3,124 — 3,124 Consumer and other 136,944 37 3,626 146 140,753 Subtotal $ 1,731,748 $ 41,467 $ 124,421 $ 412 $ 1,898,048 Total $ 11,616,490 $ 163,089 $ 317,915 $ 412 $ 12,097,906 The Company may reclassify loans held for investment to loans held for sale in the event that the Company plans to sell loans that were originated with the intent to hold to maturity. Loans transferred from held for investment to held for sale are transferred at the lower of cost or fair value. The breakdown of loans by type that were reclassified from held for investment to held for sale for the years ended December 31, 2019 , 2018 , and 2017 are presented in the table below. Year ended December 31, 2019 2018 2017 (Dollars in thousands) Transfer of loans held for investment to held for sale Real estate - commercial $ 25,988 $ — $ 429 Consumer 140,006 21,581 — Total $ 165,994 $ 21,581 $ 429 The following table presents the breakdown of loans by impairment method at December 31, 2019 and December 31, 2018 : December 31, 2019 Real Estate - Residential Real Estate - Commercial Real Estate - Construction Commercial Business Trade Finance Consumer and Other Total (Dollars in thousands) Impaired loans (recorded investment) $ — $ 54,433 $ 10,165 $ 22,739 $ 103 $ 3,054 $ 90,494 Specific allowance $ — $ 312 $ — $ 3,073 $ — $ 17 $ 3,402 Specific allowance to impaired loans N/A 0.57 % — % 13.51 % — % 0.56 % 3.76 % Other loans $ 52,437 $ 8,261,949 $ 285,981 $ 2,535,612 $ 160,756 $ 886,036 $ 12,182,771 General allowance $ 204 $ 51,400 $ 1,677 $ 29,505 $ 454 $ 7,502 $ 90,742 General allowance to other loans 0.39 % 0.62 % 0.59 % 1.16 % 0.28 % 0.85 % 0.74 % Total loans outstanding $ 52,437 $ 8,316,382 $ 296,146 $ 2,558,351 $ 160,859 $ 889,090 $ 12,273,265 Total allowance for loan losses $ 204 $ 51,712 $ 1,677 $ 32,578 $ 454 $ 7,519 $ 94,144 Total allowance to total loans 0.39 % 0.62 % 0.57 % 1.27 % 0.28 % 0.85 % 0.77 % December 31, 2018 Real Estate - Real Estate - Real Estate - Commercial Trade Consumer Total (Dollars in thousands) Impaired loans (recorded investment) $ — $ 58,056 $ — $ 35,358 $ 9,011 $ 1,582 $ 104,007 Specific allowance $ — $ 437 $ — $ 4,351 $ — $ 3 $ 4,791 Specific allowance to impaired loans N/A 0.75 % N/A 12.31 % — % 0.19 % 4.61 % Other loans $ 51,197 $ 8,337,271 $ 275,076 $ 2,092,272 $ 188,179 $ 1,049,904 $ 11,993,899 General allowance $ 112 $ 55,453 $ 765 $ 23,414 $ 719 $ 7,303 $ 87,766 General allowance to other loans 0.22 % 0.67 % 0.28 % 1.12 % 0.38 % 0.70 % 0.73 % Total loans outstanding $ 51,197 $ 8,395,327 $ 275,076 $ 2,127,630 $ 197,190 $ 1,051,486 $ 12,097,906 Total allowance for loan losses $ 112 $ 55,890 $ 765 $ 27,765 $ 719 $ 7,306 $ 92,557 Total allowance to total loans 0.22 % 0.67 % 0.28 % 1.30 % 0.36 % 0.69 % 0.77 % Under certain circumstances, the Company provides borrowers relief through loan modifications. These modifications are either temporary in nature (“temporary modifications”) or are more substantive. The temporary modifications generally consist of interest only payments for a three to six month period, whereby principal payments are deferred. At the end of the modification period, the remaining principal balance is re-amortized based on the original maturity date. Loans subject to temporary modifications are generally downgraded to Special Mention or Substandard. At the end of the modification period, the loan either 1) returns to the original contractual terms; 2) is further modified and accounted for as a troubled debt restructuring in accordance with ASC 310-10-35; or 3) is disposed of through foreclosure or liquidation. Troubled Debt Restructurings (“TDRs”) of loans are defined by ASC 310-40, “Troubled Debt Restructurings by Creditors”, and ASC 470-60, “Troubled Debt Restructurings by Debtors” , and evaluated for impairment in accordance with ASC 310-10-35. The concessions may be granted in various forms, including reduction in the stated interest rate, reduction in the amount of principal amortization, forgiveness of a portion of a loan balance or accrued interest, or extension of the maturity date. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed on the probability that the borrower will be in payment default their debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. At December 31, 2019 , total TDR loans were $46.7 million , compared to $64.0 million at December 31, 2018 . A summary of the recorded investment of TDR loans on accrual and nonaccrual status by type of concession as of December 31, 2019 and December 31, 2018 are presented below: December 31, 2019 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs Real Estate Commercial Business Other Total Real Commercial Other Total (Dollars in thousands) Payment concession $ 4,708 $ 886 $ 54 $ 5,648 $ 4,306 $ 259 $ — $ 4,565 $ 10,213 Maturity / amortization concession 14,537 10,778 43 25,358 — 5,931 122 6,053 31,411 Rate concession 4,419 181 103 4,703 334 65 — 399 5,102 Total $ 23,664 $ 11,845 $ 200 $ 35,709 $ 4,640 $ 6,255 $ 122 $ 11,017 $ 46,726 December 31, 2018 TDRs on Accrual Status TDRs on Nonaccrual Status Total TDRs Real Commercial Other Total Real Commercial Other Total (Dollars in thousands) Payment concession $ 5,142 $ 961 $ — $ 6,103 $ 2,216 $ 746 $ — $ 2,962 $ 9,065 Maturity / amortization concession 14,012 17,257 7,391 38,660 — 10,166 73 10,239 48,899 Rate concession 4,872 672 103 5,647 401 — — 401 6,048 Total $ 24,026 $ 18,890 $ 7,494 $ 50,410 $ 2,617 $ 10,912 $ 73 $ 13,602 $ 64,012 TDR loans on accrual status are comprised of loans that were accruing at the time of restructuring and for which the Company anticipates full repayment of both principal and interest under the restructured terms. TDR loans that are on nonaccrual status can be returned to accrual status after a period of sustained performance, generally determined to be six months of timely payments as modified. Sustained performance includes the periods prior to the modification if the prior performance met or exceeded the modified terms. TDR loans on accrual status at December 31, 2019 were comprised of 15 commercial real estate loans totaling $23.7 million , 27 commercial business loans totaling $11.8 million and 12 consumer and other loans totaling $200 thousand . TDRs on accrual status at December 31, 2018 were comprised of 20 commercial real estate loans totaling $24.0 million , 37 commercial business loans totaling $18.9 million , and 6 consumer and other loans totaling $7.5 million . The Company expects that TDR loans on accrual status as of December 31, 2019, which were all performing in accordance with their restructured terms, to continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. TDR loans that were restructured at market interest rates and had sustained performance as agreed under the modified loan terms may be reclassified as non-TDR after each year end but are reserved for under ASC 310-10. The Company has allocated $3.1 million , $3.0 million , and $4.8 million of specific reserves on TDR loans as of December 31, 2019 , 2018 , and 2017 , respectively. As of December 31, 2019 and 2018 , the Company had outstanding commitments to extend additional funds to these borrowers totaling $742 thousand and $302 thousand , respectively. The following table presents loans by class modified as TDRs that occ |