Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 7. Loans Most of the Company’s business activity is with Asian customers located in Southern and Northern California; New York City, New York; Houston and Dallas, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Las Vegas, Nevada, and Hong Kong. The Company has no specific industry concentration, and generally its loans are secured by real property or other collateral of the borrowers. Loans are generally expected to be paid off from the operating profits of the borrowers, from refinancing by other lenders, or through sale by the borrowers of the secured collateral. The components of loans in the condensed consolidated balance sheets as of June 30, 2015, and December 31, 2014, were as follows: June 30, 2015 December 31, 2014 (In thousands) Type of Loans: Commercial loans $ 2,387,450 $ 2,382,493 Residential mortgage loans 1,713,312 1,570,059 Commercial mortgage loans 4,849,381 4,486,443 Equity lines 176,067 172,879 Real estate construction loans 370,828 298,654 Installment and other loans 4,970 3,552 Gross loans $ 9,502,008 $ 8,914,080 Less: Allowance for loan losses (153,437 ) (161,420 ) Unamortized deferred loan fees (10,207 ) (12,392 ) Total loans, net $ 9,338,364 $ 8,740,268 Loans held for sale $ - $ 973 At June 30, 2015, recorded investment in impaired loans totaled $166.1 million and was comprised of non-accrual loans of $66.1 million and accruing troubled debt restructured loans (“TDRs) of $100.0 million. At December 31, 2014, recorded investment in impaired loans totaled $174.5 million and was comprised of non-accrual loans of $70.2 million and accruing TDRs of $104.3 million. For impaired loans, the amounts previously charged off represent 18.6% at June 30, 2015, and 17.1% at December 31, 2014, of the contractual balances for impaired loans. The following table presents the average balance and interest income recognized related to impaired loans for the periods indicated: Impaired Loans Average Recorded Investment Interest Income Recognized Three months ended Six months ended Three months ended Six months ended June 30, June 30, June 30, June 30, 2015 2014 2015 2014 2015 2014 2015 2014 (In thousands) Commercial loans $ 25,620 $ 27,773 $ 25,523 $ 29,300 $ 201 $ 194 $ 412 $ 420 Real estate construction loans 20,790 33,049 21,884 33,552 65 66 130 132 Commercial mortgage loans 105,815 112,982 108,042 112,148 793 995 1,574 2,014 Residential mortgage loans and equity lines 17,025 18,392 17,152 18,772 120 93 240 192 Total impaired loans $ 169,250 $ 192,196 $ 172,601 $ 193,772 $ 1,179 $ 1,348 $ 2,356 $ 2,758 The following table presents impaired loans and the related allowance for credit losses as of the dates indicated: Impaired Loans June 30, 2015 December 31, 2014 Unpaid Principal Balance Recorded Investment Allowance Unpaid Principal Balance Recorded Investment Allowance (In thousands) With no allocated allowance Commercial loans $ 17,657 $ 14,055 $ - $ 19,479 $ 18,452 $ - Real estate construction loans 48,790 22,586 - 32,924 17,025 - Commercial mortgage loans 81,845 76,053 - 77,474 75,172 - Residential mortgage loans and equity lines 2,473 2,473 - 2,518 2,518 - Subtotal $ 150,765 $ 115,167 $ - $ 132,395 $ 113,167 $ - With allocated allowance Commercial loans $ 9,910 $ 9,661 $ 966 $ 7,003 $ 5,037 $ 1,263 Real estate construction loans - - - 19,006 8,703 1,077 Commercial mortgage loans 28,332 26,822 6,554 38,197 34,022 8,993 Residential mortgage loans and equity lines 14,958 14,414 464 14,019 13,590 465 Subtotal $ 53,200 $ 50,897 $ 7,984 $ 78,225 $ 61,352 $ 11,798 Total impaired loans $ 203,965 $ 166,064 $ 7,984 $ 210,620 $ 174,519 $ 11,798 The following tables present the aging of the loan portfolio by type as of June 30, 2015, and as of December 31, 2014: June 30, 2015 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Non-accrual Loans Total Past Due Loans Not Past Due Total (In thousands) Type of Loans: Commercial loans $ 17,641 $ 2,138 $ - $ 7,878 $ 27,657 $ 2,359,793 $ 2,387,450 Real estate construction loans - - - 16,856 16,856 353,972 370,828 Commercial mortgage loans 4,132 3,151 - 33,271 40,554 4,808,827 4,849,381 Residential mortgage loans and equity lines - 234 - 8,047 8,281 1,881,098 1,889,379 Installment and other loans - - - - - 4,970 4,970 Total loans $ 21,773 $ 5,523 $ - $ 66,052 $ 93,348 $ 9,408,660 $ 9,502,008 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Non-accrual Loans Total Past Due Loans Not Past Due Total (In thousands) Type of Loans: Commercial loans $ 11,595 $ 1,238 $ - $ 6,983 $ 19,816 $ 2,362,677 2,382,493 Real estate construction loans 1,416 - - 19,963 21,379 277,275 298,654 Commercial mortgage loans 17,654 3,909 - 35,606 57,169 4,429,274 4,486,443 Residential mortgage loans and equity lines 5,634 732 - 7,611 13,977 1,728,961 1,742,938 Installment and other loans 60 - - - 60 3,492 3,552 Total loans $ 36,359 $ 5,879 $ - $ 70,163 $ 112,401 $ 8,801,679 $ 8,914,080 The determination of the amount of the allowance for credit losses for impaired loans is based on management’s current judgment about the credit quality of the loan portfolio and takes into consideration known relevant internal and external factors that affect collectability when determining the appropriate level for the allowance for credit losses. The nature of the process by which the Bank determines the appropriate allowance for credit losses requires the exercise of considerable judgment. This allowance evaluation process is also applied to troubled debt restructurings since they are considered to be impaired loans. A troubled debt restructuring is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The concessions may be granted in various forms, including a change in the stated interest rate, a reduction in the loan balance or accrued interest, or an extension of the maturity date that causes significant delay in payment. TDRs on accrual status are comprised of the loans that have, pursuant to the Bank’s policy, performed under the restructured terms and have demonstrated sustained performance under the modified terms for six months before being returned to accrual status. The sustained performance considered by management pursuant to its policy includes the periods prior to the modification if the prior performance met or exceeded the modified terms. This would include cash paid by the borrower prior to the restructure to set up interest reserves. At June 30, 2015, accruing TDRs were $100.0 million and non-accrual TDRs were $42.6 million compared to accruing TDRs of $104.3 million and non-accrual TDRs of $41.6 million at December 31, 2014. The Company allocated specific reserves of $1.4 million to accruing TDRs and $5.8 million to non-accrual TDRs at June 30, 2015, and $6.5 million to accruing TDRs and $4.9 million to non-accrual TDRs at December 31, 2014. The following tables present TDRs that were modified during the first six months of 2015 and of 2014, their specific reserve s at June 30, 2015, and 2014, and charge-off s during the first six months of 2015 and of 2014: Six months ended June 30, 2015 June 30, 2015 No. of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserve (Dollars in thousands) Commercial loans 1 $ 850 $ 850 $ - $ - Commercial mortgage loans 4 14,411 14,411 - 40 Residential mortgage loans and equity lines 4 1,522 1,374 148 43 Total 9 $ 16,783 $ 16,635 $ 148 $ 83 Six months ended June 30, 2014 June 30, 2014 No. of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserve (Dollars in thousands) Commercial loans 3 8,490 8,490 $ - $ 20 Residential mortgage loans and equity lines 3 1,393 1,393 - 32 Total 6 $ 9,883 $ 9,883 $ - $ 52 Modifications of the loan terms during the first six months of 2015 were in the form of changes in the stated interest rate, and/or extension of maturity dates, and/or reduction in monthly payment amount. The length of time for which modifications involving a reduction of the stated interest rate or changes in payment terms that were documented ranged from six months to three years from the modification date. We expect that the TDRs on accruing status as of June 30, 2015, which were all performing in accordance with their restructured terms, will continue to comply with the restructured terms because of the reduced principal or interest payments on these loans. A summary of TDRs by type of concession and by type of loan, as of June 30, 2015, and December 31, 2014, is shown below: June 30, 2015 Accruing TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 12,386 $ 1,496 $ 1,957 $ 15,839 Real estate construction loans - - 5,730 5,730 Commercial mortgage loans 29,465 6,082 34,055 69,602 Residential mortgage loans 5,088 1,005 2,747 8,840 Total accruing TDRs $ 46,939 $ 8,583 $ 44,489 $ 100,011 June 30, 2015 Non-accrual TDRs Payment Deferral Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 2,272 $ - $ 2,272 Real estate construction loans 10,366 5,990 16,356 Commercial mortgage loans 1,566 20,540 22,106 Residential mortgage loans 611 1,250 1,861 Total non-accrual TDRs $ 14,815 $ 27,780 $ 42,595 December 31, 2014 Accruing TDRs Payment Deferral Rate Reduction Rate Reduction and Forgiveness of Principal Rate Reduction and Payment Deferral Total Commercial loans $ 11,572 $ - $ - $ 4,934 $ 16,506 Real estate construction loans 5,765 - - - 5,765 Commercial mortgage loans 20,543 26,694 - 26,351 73,588 Residential mortgage loans 3,316 - 410 4,771 8,497 Total accruing TDRs $ 41,196 $ 26,694 $ 410 $ 36,056 $ 104,356 December 31, 2014 Non-accrual TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 1,423 $ 860 $ 1,269 $ 3,552 Real estate construction loans - - 19,462 19,462 Commercial mortgage loans 15,917 - 973 16,890 Residential mortgage loans 1,026 - 688 1,714 Total non-accrual TDRs $ 18,366 $ 860 $ 22,392 $ 41,618 The activity within our TDRs for the periods indicated are shown below: Three months ended June 30, Six months ended June 30, Accruing TDRs 2015 2014 2015 2014 (In thousands) Beginning balance $ 100,393 $ 118,922 $ 104,356 $ 117,597 New restructurings 5,798 722 16,426 8,097 Restructured loans restored to accrual status - - - 962 Charge-offs - - (148 ) - Payments (6,180 ) (1,278 ) (10,434 ) (8,290 ) Restructured loans placed on nonaccrual - (7,230 ) (10,189 ) (7,230 ) Ending balance $ 100,011 $ 111,136 $ 100,011 $ 111,136 Three months ended June 30, Six months ended June 30, Non-accrual TDRs 2015 2014 2015 2014 (In thousands) Beginning balance $ 44,541 $ 37,797 $ 41,618 $ 38,769 New restructurings - 247 209 1,786 Restructured loans placed on nonaccrual - 7,230 10,189 7,230 Charge-offs (489 ) (595 ) (3,243 ) (599 ) Payments (1,457 ) (1,074 ) (6,178 ) (2,619 ) Restructured loans restored to accrual status - - - (962 ) Ending balance $ 42,595 $ 43,605 $ 42,595 $ 43,605 A loan is considered to be in payment default once it is 60 to 90 days contractually past due under the modified terms. The Company had one commercial mortgage loan in the amount of $9.6 million that was modified as a TDR during the previous twelve months and which subsequently defaulted as of June 30, 2015. The Company had previously taken a charge off in the amount of $598,000 on this same commercial mortgage loan during the previous twelve months. Under the Company’s internal underwriting policy, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification in order to determine whether a borrower is experiencing financial difficulty. As of June 30, 2015, there were no commitments to lend additional funds to those borrowers whose loans had been restructured, were considered impaired, or were on non-accrual status. As part of the on-going monitoring of the credit quality of our loan portfolio, the Company utilizes a risk grading matrix to assign a risk grade to each loan. The risk rating categories can be generally described by the following grouping for non-homogeneous loans: ● Pass/Watch – ● Special Mention – ● Substandard – ● Doubtful – ● Loss – The Company had no loans held for sale as of June 30, 2015. The following tables present the loan portfolio by risk rating as of June 30, 2015, and as of December 31, 2014: June 30, 2015 Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Commercial loans $ 2,251,083 $ 64,655 $ 70,240 $ 1,472 $ 2,387,450 Real estate construction loans 348,242 - 22,086 500 370,828 Commercial mortgage loans 4,580,231 114,663 144,897 9,590 4,849,381 Residential mortgage loans and equity lines 1,879,108 - 10,271 - 1,889,379 Installment and other loans 4,970 - - - 4,970 Total gross loans $ 9,063,634 $ 179,318 $ 247,494 $ 11,562 $ 9,502,008 December 31, 2014 Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Commercial loans $ 2,260,474 $ 47,619 $ 72,561 $ 1,839 $ 2,382,493 Real estate construction loans 272,927 - 25,227 500 298,654 Commercial mortgage loans 4,213,453 105,970 167,020 - 4,486,443 Residential mortgage loans and equity lines 1,733,248 - 9,690 - 1,742,938 Installment and other loans 3,552 - - - 3,552 Total gross loans $ 8,483,654 $ 153,589 $ 274,498 $ 2,339 $ 8,914,080 Loans held for sale $ - $ - $ 973 $ - $ 973 The allowance for loan losses and the reserve for off-balance sheet credit commitments are significant estimates that can and do change based on management’s process in analyzing the loan portfolio and on management’s assumptions about specific borrowers, underlying collateral, and applicable economic and environmental conditions, among other factors. The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of June 30, 2015, and as of December 31, 2014: Residential Real Estate Commercial Mortgage Loans Commercial Construction Mortgage and Equity Installment and Loans Loans Loans Lines Other Loans Total (In thousands) June 30, 2015 Loans individually evaluated for impairment Allowance $ 966 $ - $ 6,554 $ 464 $ - $ 7,984 Balance $ 23,717 $ 22,586 $ 102,874 $ 16,887 $ - $ 166,064 Loans collectively evaluated for impairment Allowance $ 46,574 $ 26,304 $ 60,691 $ 11,859 $ 25 $ 145,453 Balance $ 2,363,733 $ 348,242 $ 4,746,507 $ 1,872,492 $ 4,970 $ 9,335,944 Total allowance $ 47,540 $ 26,304 $ 67,245 $ 12,323 $ 25 $ 153,437 Total balance $ 2,387,450 $ 370,828 $ 4,849,381 $ 1,889,379 $ 4,970 $ 9,502,008 December 31, 2014 Loans individually evaluated for impairment Allowance $ 1,263 $ 1,077 $ 8,993 $ 465 $ - $ 11,798 Balance $ 23,489 $ 25,728 $ 109,194 $ 16,108 $ - $ 174,519 Loans collectively evaluated for impairment Allowance $ 46,238 $ 26,575 $ 65,680 $ 11,113 $ 16 $ 149,622 Balance $ 2,359,004 $ 272,926 $ 4,377,249 $ 1,726,830 $ 3,552 $ 8,739,561 Total allowance $ 47,501 $ 27,652 $ 74,673 $ 11,578 $ 16 $ 161,420 Total balance $ 2,382,493 $ 298,654 $ 4,486,443 $ 1,742,938 $ 3,552 $ 8,914,080 The following tables detail activity in the allowance for loan losses by portfolio segment for the three months and six months ended June 30, 2015, and June 30, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Three months ended June 30, 2015 and 2014 Real Estate Commercial Residential Installment Commercial Construction Mortgage Mortgage Loans and Other Loans Loans Loans and Equity Lines Loans Total (In thousands) March 31, 2015 Ending Balance $ 49,705 $ 23,270 $ 71,318 $ 11,777 $ 19 156,089 Provision/(credit) for possible credit losses 184 2,982 (5,880 ) 559 5 (2,150 ) Charge-offs (2,580 ) - (65 ) (13 ) - (2,658 ) Recoveries 231 52 1,872 - 1 2,156 Net (charge-offs)/recoveries (2,349 ) 52 1,807 (13 ) 1 (502 ) June 30, 2015 Ending Balance $ 47,540 $ 26,304 $ 67,245 $ 12,323 $ 25 $ 153,437 March 31, 2014 Ending Balance $ 64,782 $ 10,626 $ 81,326 $ 12,377 $ 27 $ 169,138 Provision/(credit) for possible credit losses (6,111 ) 742 1,185 493 (9 ) (3,700 ) Charge-offs (114 ) (1,813 ) (648 ) - - (2,575 ) Recoveries 4,682 - 1,532 - - 6,214 Net (charge-offs)/recoveries 4,568 (1,813 ) 884 - - 3,639 June 30, 2014 Ending Balance $ 63,239 $ 9,555 $ 83,395 $ 12,870 $ 18 $ 169,077 Six months ended June 30, 2015 and 2014 Real Estate Commercial Residential Installment Commercial Construction Mortgage Mortgage Loans and Other Loans Loans Loans and Equity Lines Loans Total (In thousands) 2015 Beginning Balance $ 47,501 $ 27,652 $ 74,673 $ 11,578 $ 16 $ 161,420 Provision/(credit) for possible credit losses 1,005 (1,470 ) (7,580 ) 886 9 (7,150 ) Charge-offs (3,444 ) - (3,516 ) (161 ) - (7,121 ) Recoveries 2,478 122 3,668 20 - 6,288 Net (charge-offs)/recoveries (966 ) 122 152 (141 ) - (833 ) June 30, 2015 Ending Balance $ 47,540 $ 26,304 $ 67,245 $ 12,323 $ 25 $ 153,437 Reserve for impaired loans $ 966 $ - $ 6,554 $ 464 $ - $ 7,984 Reserve for non-impaired loans $ 46,574 $ 26,304 $ 60,691 $ 11,859 $ 25 $ 145,453 Reserve for off-balance sheet credit commitments $ - $ - $ - $ - $ - $ - 2014 Beginning Balance $ 65,103 $ 11,999 $ 84,753 $ 12,005 $ 29 $ 173,889 Provision/(credit) for possible credit losses (1,228 ) (656 ) (3,041 ) 865 (11 ) (4,071 ) Charge-offs (7,340 ) (1,813 ) (2,424 ) - - (11,577 ) Recoveries 6,704 25 4,107 - - 10,836 Net (charge-offs)/recoveries (636 ) (1,788 ) 1,683 - - (741 ) June 30, 2014 Ending Balance $ 63,239 $ 9,555 $ 83,395 $ 12,870 $ 18 $ 169,077 Reserve for impaired loans $ 2,717 $ 143 $ 6,230 $ 519 $ - $ 9,609 Reserve for non-impaired loans $ 60,522 $ 9,412 $ 77,165 $ 12,351 $ 18 $ 159,468 Reserve for off-balance sheet credit commitments $ 1,014 $ 391 $ 401 $ 36 $ 2 $ 1,844 |