Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2014 |
Allowance for Loan Losses [Abstract] | ' |
ALLOWANCE FOR LOAN LOSSES | ' |
ALLOWANCE FOR LOAN LOSSES |
|
Our allowance for loan losses represents our estimate of probable loan losses inherent in the loan portfolio at a specific point in time. This estimate includes losses associated with specifically identified loans, as well as estimated probable credit losses inherent in the remainder of the loan portfolio. Additions are made to the allowance through both periodic provisions charged to income and recoveries of losses previously incurred. Reductions to the allowance occur as loans are charged off or when the credit history of any of the three loan portfolios improves. Management evaluates the adequacy of the allowance at least quarterly, and in doing so relies on various factors including, but not limited to, assessment of historical loss experience, delinquency and non-accrual trends, portfolio growth, underlying collateral coverage and current economic conditions. This evaluation is subjective and requires material estimates that may change over time. The calculation of the allowance for loan losses takes into consideration the inherent risk identified within each of the Company’s three primary loan portfolios, commercial and industrial, commercial real estate and private banking. In addition, management takes into account the historical loss experience of each loan portfolio, to ensure that the resultant allowance for loan losses is sufficient to cover probable losses inherent in such loan portfolios. Refer to Note 1, Summary of Significant Accounting Policies, for more details on the Company’s allowance for loan losses policy. |
|
The following discusses key characteristics and risks within each primary loan portfolio: |
|
Middle-Market Banking - Commercial and Industrial Loans. This loan portfolio includes primarily loans made to service companies or manufacturers generally for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing, acquisitions and recapitalizations. Cash flow from the borrower’s operations is the primary source of repayment for these loans, except for certain commercial loans that are secured by cash and marketable securities. |
|
The industry of the borrower is an important indicator of risk, but there are also more specific risks depending on the condition of the local/regional economy. Collateral for these types of loans often do not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Any C&I loans collateralized by cash and marketable securities are treated the same as private banking loans for purposes of the allowance for loan loss calculation. In addition, syndicated loans which also involve a private equity sponsor are combined as a homogeneous group and evaluated based on the historical trend of such loans. |
|
Middle-Market Banking - Commercial Real Estate Loans. This loan portfolio includes loans secured by commercial purpose real estate, including both owner occupied properties and investment properties for various purposes including office, retail, industrial, multifamily and hospitality. Individual project cash flows as well as global cash flows from the developer are the primary sources of repayment for these loans. Also included are commercial construction loans, which are loans made to finance the construction or renovation of structures as well as to finance the acquisition and development of raw land for various purposes. The increased level of risk of these loans is generally confined to the construction period. If there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. |
|
The underlying purpose/collateral of the loans is an important indicator of risk for this loan portfolio. Additional risks exist and are dependent on several factors such as condition of the local/regional economy, whether or not the project is owner occupied, and the type of project and the experience and resources of the developer. |
|
Private Banking Channel Loans. Our private banking lending activities are conducted on a national basis. This loan portfolio includes primarily loans made to high-net-worth individuals and/or trusts and businesses that may be secured by cash, marketable securities, residential property or other financial assets, as well as unsecured loans and lines of credit. The primary sources of repayment for these loans are the income and/or assets of the borrower. |
|
The underlying collateral is the most important indicator of risk for this loan portfolio. In addition, the condition of the local economy and the local housing market can also have a significant impact on this portfolio, since low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt. |
|
Management further assesses risk within each loan portfolio using key inherent risk differentiators. The components of the allowance for loan losses represent estimates based upon ASC Topic 450, Contingencies, and ASC Topic 310, Receivables. ASC Topic 450 applies to homogeneous loan pools such as consumer installment, residential mortgages and consumer lines of credit, as well as commercial loans that are not individually evaluated for impairment under ASC Topic 310. |
|
Impaired loans are individually evaluated for impairment under ASC Topic 310. The Company’s internal risk rating system is consistent with definitions found in current regulatory guidelines. |
|
On a monthly basis, management monitors various credit quality indicators for both the commercial and consumer loan portfolios, including delinquency, non-performing status, changes in risk ratings, changes in the underlying performance of the borrowers and other relevant factors. Refer to Note 1, Summary of Significant Accounting Policies, for the Company’s policy for determining past due status of loans. |
|
Management continually monitors the loan portfolio through its internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower. Loan risk ratings are reviewed on an ongoing basis according to internal policies. Loans within the pass rating are believed to have a lower risk of loss than loans risk rated as special mention, substandard and doubtful, which are believed to have an increasing risk of loss. |
|
The Company’s risk ratings are consistent with regulatory guidance and are as follows: |
|
Non-Rated – Loans to individuals and trusts are not individually risk rated, unless they are fully secured by liquid assets or cash, or have an exposure of $250,000 or greater and have certain actionable covenants, such as a liquidity covenant or a financial reporting covenant. In addition, commercial loans with an exposure of less than $500,000 are not required to be individually risk rated. Any loan, regardless of size, is risk rated if it is secured by marketable securities or if it becomes a criticized loan. The majority of the private banking loans that are not risk rated are residential mortgages and home equity loans. We monitor the performance of non-rated loans through ongoing reviews of payment delinquencies. These loans comprised 4.7% and 7.0% of the total loan portfolio, as of September 30, 2014 and December 31, 2013, respectively. For loans that are not risk-rated, the most important indicators of risk are the existence of collateral, the type of collateral and for consumer real estate loans, whether the Bank has a first or second lien position. |
|
Pass – The loan is currently performing in accordance with its contractual terms. |
|
Special Mention – A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in our credit position at some future date. Economic and market conditions, beyond the customer’s control, may in the future necessitate this classification. |
|
Substandard – A substandard loan is not adequately protected by the net worth and/or paying capacity of the obligor or by the collateral pledged, if any. Substandard loans have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. |
|
Doubtful – A doubtful loan has all the weaknesses inherent in a loan categorized as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. |
|
The following tables present the recorded investment in loans by credit quality indicator: |
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| September 30, 2014 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total Loans | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Non-rated | $ | 192 | | $ | — | | $ | 107,849 | | $ | 108,041 | | | | | | | |
| | | | | |
Pass | 632,751 | | 682,694 | | 801,711 | | 2,117,156 | | | | | | | |
| | | | | |
Special mention | 25,616 | | — | | 2,344 | | 27,960 | | | | | | | |
| | | | | |
Substandard | 30,817 | | 3,498 | | 2,226 | | 36,541 | | | | | | | |
| | | | | |
Doubtful | 6,809 | | — | | — | | 6,809 | | | | | | | |
| | | | | |
Total loans | $ | 696,185 | | $ | 686,192 | | $ | 914,130 | | $ | 2,296,507 | | | | | | | |
| | | | | |
|
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total Loans | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Non-rated | $ | 384 | | $ | — | | $ | 129,972 | | $ | 130,356 | | | | | | | |
| | | | | |
Pass | 682,394 | | 548,890 | | 436,944 | | 1,668,228 | | | | | | | |
| | | | | |
Special mention | 28,031 | | — | | 1,207 | | 29,238 | | | | | | | |
| | | | | |
Substandard | 20,639 | | 3,498 | | 1,223 | | 25,360 | | | | | | | |
| | | | | |
Doubtful | 7,593 | | — | | — | | 7,593 | | | | | | | |
| | | | | |
Total loans | $ | 739,041 | | $ | 552,388 | | $ | 569,346 | | $ | 1,860,775 | | | | | | | |
| | | | | |
|
Changes in the allowance for loan losses are as follows for the three months ended September 30, 2014 and 2013: |
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2014 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Balance, beginning of period | $ | 16,459 | | $ | 4,288 | | $ | 2,075 | | $ | 22,822 | | | | | | | |
| | | | | |
Provision for loan losses | 714 | | 103 | | (166 | ) | 651 | | | | | | | |
| | | | | |
Charge-offs | (1,220 | ) | — | | — | | (1,220 | ) | | | | | | |
| | | | | |
Recoveries | 29 | | — | | 94 | | 123 | | | | | | | |
| | | | | |
Balance, end of period | $ | 15,982 | | $ | 4,391 | | $ | 2,003 | | $ | 22,376 | | | | | | | |
| | | | | |
|
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2013 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Balance, beginning of period | $ | 11,299 | | $ | 3,602 | | $ | 2,807 | | $ | 17,708 | | | | | | | |
| | | | | |
Provision for loan losses | 4,843 | | 704 | | (636 | ) | 4,911 | | | | | | | |
| | | | | |
Charge-offs | (4,339 | ) | — | | — | | (4,339 | ) | | | | | | |
| | | | | |
Recoveries | — | | 1 | | — | | 1 | | | | | | | |
| | | | | |
Balance, end of period | $ | 11,803 | | $ | 4,307 | | $ | 2,171 | | $ | 18,281 | | | | | | | |
| | | | | |
|
Charge-offs of $1.2 million for the three months ended September 30, 2014, represent one C&I loan, which was partially offset by recoveries of $123,000 on one C&I loan and one private banking loan. Charge-offs of $4.3 million for the three months ended September 30, 2013, included one C&I loan, which was partially offset by recoveries of $1,000 on one C&I loan. |
|
Changes in the allowance for loan losses are as follows for the nine months ended September 30, 2014 and 2013: |
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2014 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Balance, beginning of period | $ | 11,881 | | $ | 5,104 | | $ | 2,011 | | $ | 18,996 | | | | | | | |
| | | | | |
Provision for loan losses | 11,183 | | (713 | ) | (102 | ) | 10,368 | | | | | | | |
| | | | | |
Charge-offs | (7,577 | ) | — | | — | | (7,577 | ) | | | | | | |
| | | | | |
Recoveries | 495 | | — | | 94 | | 589 | | | | | | | |
| | | | | |
Balance, end of period | $ | 15,982 | | $ | 4,391 | | $ | 2,003 | | $ | 22,376 | | | | | | | |
| | | | | |
|
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2013 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Balance, beginning of period | $ | 9,950 | | $ | 5,120 | | $ | 2,804 | | $ | 17,874 | | | | | | | |
| | | | | |
Provision for loan losses | 7,247 | | 1,100 | | (633 | ) | 7,714 | | | | | | | |
| | | | | |
Charge-offs | (5,508 | ) | (1,936 | ) | — | | (7,444 | ) | | | | | | |
| | | | | |
Recoveries | 114 | | 23 | | — | | 137 | | | | | | | |
| | | | | |
Balance, end of period | $ | 11,803 | | $ | 4,307 | | $ | 2,171 | | $ | 18,281 | | | | | | | |
| | | | | |
|
Charge-offs of $7.6 million for the nine months ended September 30, 2014, represent four C&I loans, which were partially offset by recoveries of $589,000 on two C&I loans and one private banking loan. Charge-offs of $7.4 million for the nine months ended September 30, 2013, included three C&I loans and one CRE loan, which were partially offset by recoveries of $137,000 on three C&I loans and two CRE loans. |
|
The following tables present the age analysis of past due loans segregated by class of loan: |
|
| | | | | | | | | | | | | | | | | | |
| September 30, 2014 |
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Loans Past Due 90 Days or More | Total Past Due | Current | Total Loans |
Commercial and industrial | $ | 888 | | $ | — | | $ | 323 | | $ | 1,211 | | $ | 694,974 | | $ | 696,185 | |
|
Commercial real estate | — | | — | | 3,498 | | 3,498 | | 682,694 | | 686,192 | |
|
Private banking | — | | — | | 837 | | 837 | | 913,293 | | 914,130 | |
|
Total loans | $ | 888 | | $ | — | | $ | 4,658 | | $ | 5,546 | | $ | 2,290,961 | | $ | 2,296,507 | |
|
|
|
| | | | | | | | | | | | | | | | | | |
| December 31, 2013 |
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Loans Past Due 90 Days or More | Total Past Due | Current | Total Loans |
Commercial and industrial | $ | 2,166 | | $ | — | | $ | 3,570 | | $ | 5,736 | | $ | 733,305 | | $ | 739,041 | |
|
Commercial real estate | — | | — | | 3,498 | | 3,498 | | 548,890 | | 552,388 | |
|
Private banking | 520 | | — | | 922 | | 1,442 | | 567,904 | | 569,346 | |
|
Total loans | $ | 2,686 | | $ | — | | $ | 7,990 | | $ | 10,676 | | $ | 1,850,099 | | $ | 1,860,775 | |
|
|
Non-Performing and Impaired Loans |
|
Management monitors the delinquency status of the loan portfolio on a monthly basis. Loans are considered non-performing when interest and principal are 90 days or more past due or management has determined that it is probable the borrower is unable to meet payments as they become due. The risk of loss is generally highest for non-performing loans. |
|
Management determines loans to be impaired when, based upon current information and events, it is probable that the loan will not be repaid according to the original contractual terms of the loan agreement, including both principal and interest, or if a loan is designated as a TDR. Refer to Note 1, Summary of Significant Accounting Policies, for the Company’s policy on evaluating loans for impairment and interest income. |
|
The following tables present the Company’s investment in loans considered to be impaired and related information on those impaired loans: |
| | | |
| | | | | | | | | | | | | | | | | | |
| As of and for the Nine Months Ended September 30, 2014 | | | |
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | | | |
With a related allowance recorded: | | | | | | | | |
Commercial and industrial | $ | 20,954 | | $ | 29,542 | | $ | 6,265 | | $ | 22,207 | | $ | — | | | | |
| | |
Commercial real estate | — | | — | | — | | — | | — | | | | |
| | |
Private banking | 728 | | 805 | | 728 | | 764 | | — | | | | |
| | |
Total with a related allowance recorded | 21,682 | | 30,347 | | 6,993 | | 22,971 | | — | | | | |
| | |
Without a related allowance recorded: | | | | | | | | |
Commercial and industrial | 870 | | 2,091 | | — | | 1,001 | | 21 | | | | |
| | |
Commercial real estate | 3,498 | | 9,705 | | — | | 3,498 | | — | | | | |
| | |
Private banking | 1,395 | | 1,633 | | — | | 1,462 | | — | | | | |
| | |
Total without a related allowance recorded | 5,763 | | 13,429 | | — | | 5,961 | | 21 | | | | |
| | |
Total: | | | | | | | | |
Commercial and industrial | 21,824 | | 31,633 | | 6,265 | | 23,208 | | 21 | | | | |
| | |
Commercial real estate | 3,498 | | 9,705 | | — | | 3,498 | | — | | | | |
| | |
Private banking | 2,123 | | 2,438 | | 728 | | 2,226 | | — | | | | |
| | |
Total | $ | 27,445 | | $ | 43,776 | | $ | 6,993 | | $ | 28,932 | | $ | 21 | | | | |
| | |
|
| | | |
| | | | | | | | | | | | | | | | | | |
| As of and for the Twelve Months Ended December 31, 2013 | | | |
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | | | |
With a related allowance recorded: | | | | | | | | |
Commercial and industrial | $ | 15,157 | | $ | 23,126 | | $ | 4,658 | | $ | 13,261 | | $ | — | | | | |
| | |
Commercial real estate | — | | — | | — | | — | | — | | | | |
| | |
Private banking | 814 | | 869 | | 814 | | 874 | | — | | | | |
| | |
Total with a related allowance recorded | 15,971 | | 23,995 | | 5,472 | | 14,135 | | — | | | | |
| | |
Without a related allowance recorded: | | | | | | | | |
Commercial and industrial | 1,046 | | 2,264 | | — | | 1,473 | | 6 | | | | |
| | |
Commercial real estate | 3,498 | | 9,705 | | — | | 4,170 | | — | | | | |
| | |
Private banking | 305 | | 295 | | — | | 25 | | — | | | | |
| | |
Total without a related allowance recorded | 4,849 | | 12,264 | | — | | 5,668 | | 6 | | | | |
| | |
Total: | | | | | | | | |
Commercial and industrial | 16,203 | | 25,390 | | 4,658 | | 14,734 | | 6 | | | | |
| | |
Commercial real estate | 3,498 | | 9,705 | | — | | 4,170 | | — | | | | |
| | |
Private banking | 1,119 | | 1,164 | | 814 | | 899 | | — | | | | |
| | |
Total | $ | 20,820 | | $ | 36,259 | | $ | 5,472 | | $ | 19,803 | | $ | 6 | | | | |
| | |
|
Impaired loans as of September 30, 2014 and December 31, 2013, were $27.4 million and $20.8 million, respectively. There was no interest income recognized on these loans for the nine months ended September 30, 2014, and the twelve months ended December 31, 2013, while these loans were on non-accrual status. As of September 30, 2014 and December 31, 2013, there were no loans 90 days or more past due and still accruing interest income. |
|
Impaired loans were evaluated using the fair value of the collateral as the measurement method or an evaluation of estimated losses, based on a discounted cash flow method, for non-collateral dependent loans. Based on those evaluations, as of September 30, 2014, there were specific reserves totaling $7.0 million, which is included in the $22.4 million allowance for loan losses. Also included in impaired loans are two C&I loans, two CRE loans and three private banking loans with a combined balance of $5.8 million as of September 30, 2014, with no corresponding specific reserve since these loans were written down to the level which management believes will be recovered from the borrower. |
|
As of December 31, 2013, there was a specific reserve established totaling $5.5 million, which is included in the $19.0 million allowance for loan losses. Also included in impaired loans are two C&I loans, two CRE loans and two private banking loans with a combined balance of $4.8 million as of December 31, 2013, with no corresponding specific reserve since these loans were written down to the level which management believes will be recovered from the borrower. |
|
The following tables present the allowance for loan losses and recorded investment in loans by class: |
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| September 30, 2014 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | |
Individually evaluated for impairment | $ | 6,265 | | $ | — | | $ | 728 | | $ | 6,993 | | | | | | | |
| | | | | |
Collectively evaluated for impairment | 9,717 | | 4,391 | | 1,275 | | 15,383 | | | | | | | |
| | | | | |
Total allowance for loan losses | $ | 15,982 | | $ | 4,391 | | $ | 2,003 | | $ | 22,376 | | | | | | | |
| | | | | |
Portfolio loans: | | | | | | | | | | |
Individually evaluated for impairment | $ | 21,824 | | $ | 3,498 | | $ | 2,123 | | $ | 27,445 | | | | | | | |
| | | | | |
Collectively evaluated for impairment | 674,361 | | 682,694 | | 912,007 | | 2,269,062 | | | | | | | |
| | | | | |
Total portfolio loans | $ | 696,185 | | $ | 686,192 | | $ | 914,130 | | $ | 2,296,507 | | | | | | | |
| | | | | |
|
| | | | | | |
| | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | | | | | |
(Dollars in thousands) | Commercial | Commercial | Private | Total | | | | | | |
and | Real Estate | Banking | | | | | | |
Industrial | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | |
Individually evaluated for impairment | $ | 4,658 | | $ | — | | $ | 814 | | $ | 5,472 | | | | | | | |
| | | | | |
Collectively evaluated for impairment | 7,223 | | 5,104 | | 1,197 | | 13,524 | | | | | | | |
| | | | | |
Total allowance for loan losses | $ | 11,881 | | $ | 5,104 | | $ | 2,011 | | $ | 18,996 | | | | | | | |
| | | | | |
Portfolio loans: | | | | | | | | | | |
Individually evaluated for impairment | $ | 16,203 | | $ | 3,498 | | $ | 1,119 | | $ | 20,820 | | | | | | | |
| | | | | |
Collectively evaluated for impairment | 722,838 | | 548,890 | | 568,227 | | 1,839,955 | | | | | | | |
| | | | | |
Total portfolio loans | $ | 739,041 | | $ | 552,388 | | $ | 569,346 | | $ | 1,860,775 | | | | | | | |
| | | | | |
|
Troubled Debt Restructuring |
|
The following table provides additional information on the Company’s loans designated as troubled debt restructurings: |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(Dollars in thousands) | September 30, | December 31, | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | |
Aggregate recorded investment of impaired loans with terms modified through a troubled debt restructuring: | | | | | | | | | | | | | | |
Accruing interest | $ | 547 | | $ | 527 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Non-accrual | 15,452 | | 13,021 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total troubled debt restructurings | $ | 15,999 | | $ | 13,548 | | | | | | | | | | | | | |
| | | | | | | | | | | |
|
Of the non-accrual loans as of September 30, 2014, four C&I loans, one CRE loan and two residential mortgage loans were designated by the Company as TDRs. There was also one C&I loan that was still accruing interest and designated by the Company as a performing TDR as of September 30, 2014. The aggregate recorded investment of these loans was $16.0 million. There were $605,000 of unused commitments on non-accrual TDRs as of September 30, 2014, and there was $54,000 of unused commitments on the one accruing TDR. |
|
Of the non-accrual loans as of December 31, 2013, four C&I loans, one CRE loan and one residential mortgage loan were designated by the Company as TDRs. There was also one C&I loan that was still accruing interest and designated by the Company as a performing TDR as of December 31, 2013. The aggregate net carrying value of these loans was $13.5 million. There was $820,000 of unused commitments on these loans as of December 31, 2013, of which $149,000 was related to an accruing TDR. |
|
The modifications made to restructured loans typically consist of an extension or reduction of the payment terms, or the deferral of principal payments. We generally do not forgive principal when restructuring loans. There were no payment defaults, during the three and nine months ended September 30, 2014 and 2013, for loans modified as TDRs within twelve months of the corresponding balance sheet dates. |
|
There were no new loans designated as TDRs during the three months ended September 30, 2014 and 2013. |
|
The financial effects of modifications made to loans designated as TDRs during the nine months ended September 30, 2014 and 2013, are as follows: |
| | | | | |
| | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2014 | | | | | |
(Dollars in thousands) | Count | Recorded Investment at the time of Modification | Current Recorded Investment | Allowance for Loan Losses at the time of Modification | Current Allowance for Loan Losses | | | | | |
Commercial and industrial: | | | | | | | | | | |
Extended term, advanced additional funds, forgave principal | 1 | $ | 5,218 | | $ | 4,696 | | $ | 1,968 | | $ | 1,120 | | | | | | |
| | | | |
Private Banking: | | | | | | | | | | |
Extended term, reduced interest rate | 1 | 1,266 | | 1,098 | | 100 | | — | | | | | | |
| | | | |
Total | 2 | $ | 6,484 | | $ | 5,794 | | $ | 2,068 | | $ | 1,120 | | | | | | |
| | | | |
|
| | | | | |
| | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2013 | | | | | |
(Dollars in thousands) | Count | Recorded Investment at the time of Modification | Current Recorded Investment | Allowance for Loan Losses at the time of Modification | Current Allowance for Loan Losses | | | | | |
Commercial and industrial: | | | | | | | | | | |
Extended term | 1 | $ | 2,691 | | $ | 2,577 | | $ | 1,100 | | $ | 1,100 | | | | | | |
| | | | |
Advanced additional funds | 2 | 6,957 | | 8,170 | | 2,000 | | 1,357 | | | | | | |
| | | | |
Total | 3 | $ | 9,648 | | $ | 10,747 | | $ | 3,100 | | $ | 2,457 | | | | | | |
| | | | |
|
Other Real Estate Owned |
|
As of September 30, 2014 and December 31, 2013, the balance of the other real estate owned portfolio was $1.4 million and $1.4 million, respectively. |