Financing Receivables [Text Block] | LOAN PORTFOLIO AND CREDIT QUALITY The Bank’s lending activities are conducted principally in the regions of New England, San Francisco Bay, and Southern California. The Bank originates single and multi-family residential loans, commercial real estate loans, commercial and industrial loans, construction and land loans, and home equity and other consumer loans. Most loans are secured by borrowers’ personal or business assets. The ability of the Bank’s single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic conditions within the Bank’s lending areas. Commercial, construction, and land borrowers’ ability to repay is generally dependent upon the health of the economy and real estate values, including, in particular, the performance of the construction sector. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio is susceptible to changing conditions in the New England, San Francisco Bay, and Southern California economies and real estate markets. Total loans include deferred loan origination (fees)/ costs, net, of $5.6 million and $5.4 million as of December 31, 2015 and 2014 , respectively. Mortgage loans serviced for others totaled $79.7 million and $93.8 million as of December 31, 2015 and 2014 , respectively, and are not included in the Company’s total loans. In 2014, the Bank transferred $57.0 million of commercial real estate loans from its loan portfolio to the loans held for sale category, which subsequently sold for a for a $1.6 million gain. In 2013, the Bank transferred $9.1 million of residential loans from its loan portfolio to the loans held for sale category, which subsequently sold for a $0.2 million net gain. The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated: December 31, 2015 December 31, 2014 (In thousands) Commercial and industrial $ 1,111,555 $ 953,085 Commercial real estate 1,914,134 1,788,403 Construction and land 183,434 125,349 Residential 2,229,540 2,132,095 Home equity 119,828 114,859 Consumer and other 160,721 156,145 Total Loans $ 5,719,212 $ 5,269,936 The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated: December 31, 2015 December 31, 2014 (In thousands) Commercial and industrial $ 1,019 $ 2,129 Commercial real estate 11,232 18,485 Construction and land 3,297 11,422 Residential 9,661 9,713 Home equity 1,306 1,320 Consumer and other 56 1,113 Total $ 26,571 $ 44,182 The Bank’s policy is to discontinue the accrual of interest on a loan when the collectability of principal or interest is in doubt. In certain instances, although infrequent, loans that have become 90 days or more past due may remain on accrual status if the value of the collateral securing the loan is sufficient to cover principal and interest and the loan is in the process of collection. There were no loans 90 days or more past due, but still accruing, as of December 31, 2015 and 2014 . The Bank’s policy for returning a loan to accrual status requires the loan to be brought current and for the client to show a history of making timely payments (generally six consecutive months). For TDRs, a return to accrual status generally requires timely payments for a period of six months in accordance with the restructured loan terms, along with meeting other criteria. The following tables present the payment status of loans receivable by class of receivable as of the dates indicated: December 31, 2015 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current Payment Status 30-89 Days Past Due 90 Days or Greater Past Due Total Non- accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 2,329 $ 338 $ 2,667 $ 726 $ — $ 293 $ 1,019 $ 1,107,869 $ 1,111,555 Commercial real estate 2,091 529 2,620 5,912 — 5,320 11,232 1,900,282 1,914,134 Construction and land — — — 149 34 3,114 3,297 180,137 183,434 Residential 6,267 873 7,140 924 874 7,863 9,661 2,212,739 2,229,540 Home equity 40 — 40 217 — 1,089 1,306 118,482 119,828 Consumer and other 235 392 627 24 9 23 56 160,038 160,721 Total $ 10,962 $ 2,132 $ 13,094 $ 7,952 $ 917 $ 17,702 $ 26,571 $ 5,679,547 $ 5,719,212 December 31, 2014 Accruing Past Due Nonaccrual Loans 30-59 Days Past Due 60-89 Days Past Due Total Accruing Past Due Current Payment Status 30-89 Days Past Due 90 Days or Greater Past Due Total Non- accrual Loans Current Accruing Loans Total Loans Receivable (In thousands) Commercial and industrial $ 723 $ — $ 723 $ 157 $ — $ 1,972 $ 2,129 $ 950,233 $ 953,085 Commercial real estate 167 71 238 14,235 684 3,566 18,485 1,769,680 1,788,403 Construction and land — — — 8,245 86 3,091 11,422 113,927 125,349 Residential 3,878 1,913 5,791 2,770 1,704 5,239 9,713 2,116,591 2,132,095 Home equity — — — 98 — 1,222 1,320 113,539 114,859 Consumer and other 208 — 208 1,041 9 63 1,113 154,824 156,145 Total $ 4,976 $ 1,984 $ 6,960 $ 26,546 $ 2,483 $ 15,153 $ 44,182 $ 5,218,794 $ 5,269,936 Nonaccrual and delinquent loans are affected by many factors, such as economic and business conditions, interest rates, unemployment levels, and real estate collateral values, among others. In periods of prolonged economic decline, borrowers may become more severely affected over time as liquidity levels decline and the borrower’s ability to continue to make payments deteriorates. With respect to real estate collateral values, the declines from the peak, as well as the value of the real estate at the time of origination versus the current value, can impact the level of problem loans. For instance, if the loan to value ratio at the time of renewal has increased due to the decline in the real estate value since origination, the loan may no longer meet the Bank’s underwriting standards and may be considered for classification as a problem loan dependent upon a review of risk factors. Generally when a collateral dependent loan becomes impaired, an updated appraisal of the collateral, if appropriate, is obtained. If the impaired loan has not been upgraded to a performing status within a reasonable amount of time, the Bank will continue to obtain updated appraisals as deemed necessary, especially during periods of declining property values. The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated: December 31, 2015 By Loan Grade or Nonaccrual Status Pass Special Mention Accruing Substandard Nonaccrual Loans Total (In thousands) Commercial and industrial $ 1,070,438 $ 28,643 $ 11,455 $ 1,019 $ 1,111,555 Commercial real estate 1,841,603 27,594 33,705 11,232 1,914,134 Construction and land 162,563 12,974 4,600 3,297 183,434 Residential 2,213,204 — 6,675 9,661 2,229,540 Home equity 118,522 — — 1,306 119,828 Consumer and other 158,686 — 1,979 56 160,721 Total $ 5,565,016 $ 69,211 $ 58,414 $ 26,571 $ 5,719,212 December 31, 2014 By Loan Grade or Nonaccrual Status Pass Special Mention Accruing Substandard Nonaccrual Loans Total (In thousands) Commercial and industrial $ 928,228 $ 15,703 $ 7,025 $ 2,129 $ 953,085 Commercial real estate 1,703,064 47,782 19,072 18,485 1,788,403 Construction and land 100,672 13,255 — 11,422 125,349 Residential 2,112,129 — 10,253 9,713 2,132,095 Home equity 113,017 — 522 1,320 114,859 Consumer and other 153,044 — 1,988 1,113 156,145 Total $ 5,110,154 $ 76,740 $ 38,860 $ 44,182 $ 5,269,936 The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans: As of and for the year ended December 31, 2015 Recorded Investment (1) Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 2,259 $ 2,569 n/a $ 1,638 $ 836 Commercial real estate 12,116 20,113 n/a 17,885 1,494 Construction and land 1,097 2,132 n/a 3,027 92 Residential 7,788 8,576 n/a 9,384 269 Home equity — — n/a 42 2 Consumer and other — — n/a 545 61 Subtotal $ 23,260 $ 33,390 n/a $ 32,521 $ 2,754 With an allowance recorded: Commercial and industrial $ 15 $ 15 $ 270 $ 657 $ 66 Commercial real estate 7,346 7,775 713 8,749 385 Construction and land 2,200 2,356 172 2,200 — Residential 6,351 6,966 474 6,940 186 Home equity — — — — — Consumer and other — — — — — Subtotal $ 15,912 $ 17,112 $ 1,629 $ 18,546 $ 637 Total: Commercial and industrial $ 2,274 $ 2,584 $ 270 $ 2,295 $ 902 Commercial real estate 19,462 27,888 713 26,634 1,879 Construction and land 3,297 4,488 172 5,227 92 Residential 14,139 15,542 474 16,324 455 Home equity — — — 42 2 Consumer and other — — — 545 61 Total $ 39,172 $ 50,502 $ 1,629 $ 51,067 $ 3,391 ___________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, which was applied to principal. As of and for the year ended December 31, 2014 Recorded Investment (1) Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized while Impaired (In thousands) With no related allowance recorded: Commercial and industrial $ 2,011 $ 3,095 n/a $ 2,055 $ 28 Commercial real estate 21,500 28,700 n/a 24,921 2,483 Construction and land 9,221 11,133 n/a 1,597 — Residential 9,650 10,788 n/a 9,221 406 Home equity 50 50 n/a 50 3 Consumer and other 1,006 1,007 n/a 546 1 Subtotal $ 43,438 $ 54,773 n/a $ 38,390 $ 2,921 With an allowance recorded: Commercial and industrial $ 891 $ 954 $ 91 $ 1,111 $ 99 Commercial real estate 9,065 9,493 2,592 7,925 379 Construction and land 2,200 2,356 172 2,545 — Residential 6,749 6,749 1,330 7,742 219 Home equity — — — — — Consumer and other — — — — — Subtotal $ 18,905 $ 19,552 $ 4,185 $ 19,323 $ 697 Total: Commercial and industrial $ 2,902 $ 4,049 $ 91 $ 3,166 $ 127 Commercial real estate 30,565 38,193 2,592 32,846 2,862 Construction and land 11,421 13,489 172 4,142 — Residential 16,399 17,537 1,330 16,963 625 Home equity 50 50 — 50 3 Consumer and other 1,006 1,007 — 546 1 Total $ 62,343 $ 74,325 $ 4,185 $ 57,713 $ 3,618 ____________________ (1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, which was applied to principal. When management determines that it is probable that the Bank will not collect all principal and interest on a loan in accordance with the original loan terms, the loan is designated as impaired. Loans that are designated as impaired require an analysis to determine the amount of impairment, if any. Impairment would be indicated as a result of the carrying value of the loan exceeding the estimated collateral value, less costs to sell, for collateral dependent loans or the net present value of the projected cash flow, discounted at the loan’s contractual effective interest rate, for loans not considered to be collateral dependent. Generally, shortfalls in the analysis on collateral dependent loans would result in the impairment amount being charged-off to the allowance for loan losses. Shortfalls on cash flow dependent loans may be carried as specific allocations to the general reserve unless a known loss is determined to have occurred, in which case such known loss is charged-off. Loans in the held for sale category are carried at the lower of amortized cost or estimated fair value in the aggregate and are excluded from the allowance for loan losses analysis. The Bank may, under certain circumstances, restructure loans as a concession to borrowers who are experiencing financial difficulty. Such loans are classified as TDRs and are included in impaired loans. TDRs typically result from the Bank’s loss mitigation activities which, among other things, could include rate reductions, payment extensions, and/or principal forgiveness. As of December 31, 2015 and 2014 , TDRs totaled $30.6 million and $44.8 million , respectively. As of December 31, 2015 , $18.6 million of the $30.6 million of TDRs were on accrual status. As of December 31, 2014 , $24.3 million of the $44.8 million of TDRs were on accrual status. As of December 31, 2015 and 2014, the Company had no commitments and $0.3 million , respectively, in commitments to lend additional funds to debtors for loans whose terms had been modified in a troubled debt restructuring. Since all TDR loans are considered impaired loans, they are individually evaluated for impairment. The resulting impairment, if any, would have an impact on the allowance for loan losses as a specific reserve or charge-off. If, prior to the classification as a TDR, the loan was not impaired, there would have been a general or allocated reserve on the particular loan. Therefore, depending upon the result of the impairment analysis, there could be an increase or decrease in the related allowance for loan losses. Many loans initially categorized as TDRs are already on nonaccrual status and are already considered impaired. Therefore, there is generally not a material change to the allowance for loan losses when a nonaccruing loan is categorized as a TDR. The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated: As of and for the year ended December 31, 2015 Restructured Year to Date TDRs that defaulted in 2015 that were restructured in a TDR in 2015. # of Loans Pre-modification recorded investment Post-modification recorded investment # of Loans Post-modification recorded investment (In thousands, except number of loans) Commercial and industrial 1 $ 1,298 $ 1,304 — $ — Commercial real estate 2 4,850 4,838 1 3,701 Construction and land — — — — — Residential 8 513 516 — — Home equity — — — — — Consumer and other — — — — — Total 11 $ 6,661 $ 6,658 1 $ 3,701 As of and for the year ended December 31, 2015 Extension of Term Temporary Rate Reduction Payment Deferral Combination of Concessions (1) Total Concessions # of Loans Post- modifi- cation recorded invest- ment # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- (In thousands, except number of loans) Commercial and Industrial — $ — — $ — — $ — 1 $ 1,304 1 $ 1,304 Commercial real estate 1 4,118 — — — — 1 720 2 4,838 Construction and Land — — — — — — — — — — Residential — — 7 491 1 25 — — 8 516 Home Equity — — — — — — — — — — Consumer and other — — — — — — — — — — ____________________ (1) Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral. As of and for the year ended December 31, 2014 Restructured Year to Date TDRs that defaulted in 2014 that were restructured in a TDR in 2014. # of Loans Pre-modification recorded investment Post-modification recorded investment # of Loans Post-modification recorded investment (In thousands, except number of loans) Commercial and industrial — $ — $ — — $ — Commercial real estate 1 189 189 — — Construction and land 2 8,782 7,882 — — Residential 3 287 296 4 663 Home equity — — — — — Consumer and other 1 1,000 1,000 — — Total 7 $ 10,258 $ 9,367 4 $ 663 As of and for the year ended December 31, 2014 Extension of Term Temporary Rate Reduction Payment Deferral Combination of Concessions (1) Total Concessions # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- # of Loans Post- (In thousands, except number of loans) Commercial and Industrial — $ — — $ — — $ — — $ — — $ — Commercial real estate 1 189 — — — — — — 1 189 Construction and Land 2 7,882 — — — — — — 2 7,882 Residential — — 3 296 — — — — 3 296 Home Equity — — — — — — — — — — Consumer and other 1 1,000 — — — — — — 1 1,000 ____________________ (1) Combination of concessions includes loans that have had more than one modification, including extension of term, temporary reduction of interest rate, and/or payment deferral. Any loans to senior management, executive officers, and directors are made in the ordinary course of business, under normal credit terms, including interest rates and collateral requirements prevailing at the time of origination for comparable transactions with other persons and do not represent more than normal credit risk. The Bank’s current policy is generally not to originate these types of loans. At December 31, 2015 , the Bank had two loans outstanding with a combined carrying value of $17.0 million to a company whose managing principal is the spouse of an executive officer of the Company. These loans were made in the ordinary course of business, under normal credit terms, and include interest rates and collateral requirements prevailing at the time of origination for comparable transactions with other persons and do not represent more than normal credit risk. One of these loans was originated prior to the executive officer’s employment with the Company, and the other loan was in the process of being originated when the executive officer started with the Company. At December 31, 2014 , the Company had no loans outstanding to senior management, executive officers, and directors. |