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; Rockville, Maryland; 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 types of loans in the condensed consolidated balance sheets as of March 31, 2016, and December 31, 2015, were as follows: March 31, 2016 December 31, 2015 (In thousands) Type of Loans: Commercial loans $ 2,251,187 $ 2,316,863 Residential mortgage loans 2,043,789 1,932,355 Commercial mortgage loans 5,445,575 5,301,218 Real estate construction loans 453,469 441,543 Equity lines 168,283 168,980 Installment and other loans 1,344 2,493 Gross loans $ 10,363,647 $ 10,163,452 Less: Allowance for loan losses (134,552 ) (138,963 ) Unamortized deferred loan fees (7,585 ) (8,262 ) Total loans, net $ 10,221,510 $ 10,016,227 Loans held for sale $ - $ 6,676 As of March 31, 2016, recorded investment in impaired loans totaled $134.8 million and was comprised of non-accrual loans of $44.6 million and accruing troubled debt restructured loans (TDRs) of $90.2 million. As of December 31, 2015, recorded investment in impaired loans totaled $133.8 million and was comprised of non-accrual loans of $52.1 million and accruing TDRs of $81.7 million. For impaired loans, the amounts previously charged off represent 14.2% as of March 31, 2016, and 22.4% as of December 31, 2015, 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 March 31, Three months ended March 31, 2016 2015 2016 2015 Commercial loans $ 12,670 $ 25,426 $ 120 $ 229 Real estate construction loans 20,292 22,990 65 65 Commercial mortgage loans 87,452 110,293 890 917 Residential mortgage loans and equity lines 16,991 17,280 132 124 Total impaired loans $ 137,405 $ 175,989 $ 1,207 $ 1,335 The following table presents impaired loans and the related allowance for loan losses as of the dates indicated: Impaired Loans March 31, 2016 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Unpaid Principal Balance Recorded Investment Allowance (In thousands) With no allocated allowance Commercial loans $ 10,912 $ 8,968 $ - $ 15,493 $ 6,721 $ - Real estate construction loans 33,009 11,857 - 51,290 22,002 - Commercial mortgage loans 74,480 67,988 - 59,954 54,625 - Residential mortgage loans and equity lines 4,929 4,784 - 3,233 3,026 - Subtotal $ 123,330 $ 93,597 $ - $ 129,970 $ 86,374 $ - With allocated allowance Commercial loans $ 4,188 $ 2,718 $ 225 $ 7,757 $ 6,847 $ 530 Commercial mortgage loans 27,369 26,157 6,593 28,258 27,152 6,792 Residential mortgage loans and equity lines 13,334 12,343 372 14,383 13,437 427 Subtotal $ 44,891 $ 41,218 $ 7,190 $ 50,398 $ 47,436 $ 7,749 Total impaired loans $ 168,221 $ 134,815 $ 7,190 $ 180,368 $ 133,810 $ 7,749 The following tables present the aging of the loan portfolio by type as of March 31, 2016, and as of December 31, 2015: March 31, 2016 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 Type of Loans: (In thousands) Commercial loans $ 35,329 $ 7,920 $ - $ 2,645 $ 45,894 $ 2,205,293 $ 2,251,187 Real estate construction loans 1,529 - - 6,179 7,708 445,761 453,469 Commercial mortgage loans 17,136 1,144 - 28,537 46,817 5,398,758 5,445,575 Residential mortgage loans and equity lines 6,087 - - 7,282 13,369 2,198,703 2,212,072 Installment and other loans - - - - - 1,344 1,344 Total loans $ 60,081 $ 9,064 $ - $ 44,643 $ 113,788 $ 10,249,859 $ 10,363,647 December 31, 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 Type of Loans: (In thousands) Commercial loans $ 8,367 $ 221 $ - $ 3,545 $ 12,133 $ 2,304,730 $ 2,316,863 Real estate construction loans 7,285 - - 16,306 23,591 417,952 441,543 Commercial mortgage loans 2,243 2,223 - 25,231 29,697 5,271,521 5,301,218 Residential mortgage loans and equity lines 4,959 1,038 - 7,048 13,045 2,088,290 2,101,335 Installment and other loans - - - - 2,493 2,493 Total loans $ 22,854 $ 3,482 $ - $ 52,130 $ 78,466 $ 10,084,986 $ 10,163,452 The determination of the amount of the allowance for loan 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 loan losses. The nature of the process by which the Bank determines the appropriate allowance for loan 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. As of March 31, 2016, accruing TDRs were $90.2 million and non-accrual TDRs were $23.2 million compared to accruing TDRs of $81.7 million and non-accrual TDRs of $39.9 million as of December 31, 2015. The Company allocated specific reserves of $1.5 million to accruing TDRs and $5.3 million to non-accrual TDRs as of March 31, 2016, and $2.0 million to accruing TDRs and $5.4 million to non-accrual TDRs as of December 31, 2015. There were no TDRs that were modified during the first quarter of 2016. The following table presents TDRs that were modified during the first quarter of 2015, their specific reserve s a s of March 31, 2015, and charge-off s during the first quarter of 2015: Three months ended March 31, 2015 March 31, 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 3 8,613 8,613 - - Residential mortgage loans and equity lines 4 1,522 1,374 148 46 Total 8 $ 10,985 $ 10,837 $ 148 $ 46 Modifications of the loan terms during the first quarter of 2015 were in the form of changes in the stated interest rate, an extension of maturity dates, and/or a reduction in monthly payment amounts. 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 March 31, 2016, 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 March 31, 2016, and December 31, 2015, is shown below: March 31, 2016 Accruing TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 7,446 $ - $ 1,595 $ 9,041 Real estate construction loans - - 5,679 5,679 Commercial mortgage loans 26,393 6,025 33,189 65,607 Residential mortgage loans 5,154 996 3,695 9,845 Total accruing TDRs $ 38,993 $ 7,021 $ 44,158 $ 90,172 March 31, 2016 Non-accrual TDRs Payment Deferral Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 1,001 $ 90 $ 1,091 Commercial mortgage loans 1,532 20,028 21,560 Residential mortgage loans 381 177 558 Total non-accrual TDRs $ 2,914 $ 20,295 $ 23,209 December 31, 2015 Accruing TDRs Payment Deferral Rate Reduction Rate Reduction and Payment D eferral Total Commercial loans $ 8,298 $ - $ 1,726 $ 10,024 Real estate construction loans - - 5,696 5,696 Commercial mortgage loans 16,701 6,045 33,800 56,546 Residential mortgage loans 5,201 999 3,214 9,414 Total accruing TDRs $ 30,200 $ 7,044 $ 44,436 $ 81,680 December 31, 2015 Non-accrual TDRs Payment Deferral Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 1,033 $ 90 $ 1,123 Real estate construction loans 9,981 5,825 15,806 Commercial mortgage loans 1,544 20,362 21,906 Residential mortgage loans 388 700 1,088 Total non-accrual TDRs $ 12,946 $ 26,977 $ 39,923 The activity within our TDRs for the periods indicated are shown below: Three months ended March 31, Accruing TDRs 2016 2015 (In thousands) Beginning balance $ 81,680 $ 104,356 New restructurings - 10,628 Restructured loans restored to accrual status 10,303 - Charge-offs - (148 ) Payments (1,811 ) (4,254 ) Restructured loans placed on non-accrual status - (10,189 ) Ending balance $ 90,172 $ 100,393 Three months ended March 31, Non-accrual TDRs 2016 2015 (In thousands) Beginning balance $ 39,923 $ 41,618 New restructurings - 209 Restructured loans placed on non-accrual status - 10,189 Charge-offs - (2,754 ) Payments (6,411 ) (4,721 ) Restructured loans restored to accrual status (10,303 ) - Ending balance $ 23,209 $ 44,541 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 did not have any loans that were modified as a TDR during the previous twelve months and which subsequently defaulted as of March 31, 2016. 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 March 31, 2016, 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 March 31, 2016. The following tables present the loan portfolio by risk rating as of March 31, 2016, and as of December 31, 2015: March 31, 2016 Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Commercial loans $ 2,081,780 $ 92,891 $ 75,461 $ 1,055 $ 2,251,187 Real estate construction loans 436,415 5,197 11,357 500 453,469 Commercial mortgage loans 5,131,844 187,237 117,324 9,170 5,445,575 Residential mortgage loans and equity lines 2,200,400 1,931 9,741 - 2,212,072 Installment and other loans 1,344 - - - 1,344 Total gross loans $ 9,851,783 $ 287,256 $ 213,883 $ 10,725 $ 10,363,647 December 31, 2015 Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Commercial loans $ 2,143,270 $ 110,338 $ 61,297 $ 1,958 $ 2,316,863 Real estate construction loans 413,765 5,776 21,502 500 441,543 Commercial mortgage loans 5,018,199 155,553 118,196 9,270 5,301,218 Residential mortgage loans and equity lines 2,091,434 399 9,502 - 2,101,335 Installment and other loans 2,493 - - - 2,493 Total gross loans $ 9,669,161 $ 272,066 $ 210,497 $ 11,728 $ 10,163,452 Loans held for sale $ 732 $ - $ 5,944 $ - $ 6,676 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 March 31, 2016, and as of December 31, 2015: Commercial Loans Real Estate Construction Loans Commercial Mortgage Loans Residential Mortgage Loans and Equity Lines Installment and Other Loans Total (In thousands) March 31, 2016 Loans individually evaluated for impairment Allowance $ 225 $ - $ 6,593 $ 372 $ - $ 7,190 Balance $ 11,686 $ 11,857 $ 94,145 $ 17,127 $ - $ 134,815 Loans collectively evaluated for impairment Allowance $ 56,156 $ 12,744 $ 43,858 $ 14,597 $ 7 $ 127,362 Balance $ 2,239,501 $ 441,612 $ 5,351,430 $ 2,194,945 $ 1,344 $ 10,228,832 Total allowance $ 56,381 $ 12,744 $ 50,451 $ 14,969 $ 7 $ 134,552 Total balance $ 2,251,187 $ 453,469 $ 5,445,575 $ 2,212,072 $ 1,344 $ 10,363,647 December 31, 2015 Loans individually evaluated for impairment Allowance $ 530 $ - $ 6,792 $ 427 $ - $ 7,749 Balance $ 13,568 $ 22,002 $ 81,776 $ 16,464 $ - $ 133,810 Loans collectively evaluated for impairment Allowance $ 55,669 $ 22,170 $ 42,648 $ 10,718 $ 9 $ 131,214 Balance $ 2,303,295 $ 419,541 $ 5,219,442 $ 2,084,871 $ 2,493 $ 10,029,642 Total allowance $ 56,199 $ 22,170 $ 49,440 $ 11,145 $ 9 $ 138,963 Total balance $ 2,316,863 $ 441,543 $ 5,301,218 $ 2,101,335 $ 2,493 $ 10,163,452 The following tables detail activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016, and March 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Commercial Loans Real Estate Construction Loans Commercial Mortgage Loans Residential Mortgage Loans and Equity Lines Installment and Other Loans Total (In thousands) 2016 Beginning Balance $ 56,199 $ 22,170 $ 49,440 $ 11,145 $ 9 $ 138,963 Provision/(credit) for possible credit losses 1,265 (16,702 ) 978 3,961 (2 ) (10,500 ) Charge-offs (2,070 ) - (110 ) (149 ) - (2,329 ) Recoveries 987 7,276 143 12 8,418 Net (charge-offs)/recoveries (1,083 ) 7,276 33 (137 ) - 6,089 March 31, 2016 Ending Balance $ 56,381 $ 12,744 $ 50,451 $ 14,969 $ 7 $ 134,552 Reserve for impaired loans $ 225 $ - $ 6,593 $ 372 $ - $ 7,190 Reserve for non-impaired loans $ 56,156 $ 12,744 $ 43,858 $ 14,597 $ 7 $ 127,362 Reserve for off-balance sheet credit commitments $ 2,641 $ - $ 53 $ - $ - $ 2,694 2015 Beginning Balance $ 47,501 $ 27,652 $ 74,673 $ 11,578 $ 16 $ 161,420 Provision/(credit) for possible credit losses 793 (4,427 ) (1,697 ) 328 3 (5,000 ) Charge-offs (864 ) - (3,452 ) (148 ) - (4,464 ) Recoveries 2,275 45 1,794 19 - 4,133 Net (charge-offs)/recoveries 1,411 45 (1,658 ) (129 ) - (331 ) March 31, 2015 Ending Balance $ 49,705 $ 23,270 $ 71,318 $ 11,777 $ 19 $ 156,089 Reserve for impaired loans $ 3,911 $ - $ 6,635 $ 498 $ - $ 11,044 Reserve for non-impaired loans $ 45,794 $ 23,270 $ 64,683 $ 11,279 $ 19 $ 145,045 Reserve for off-balance sheet credit commitments $ 903 $ 527 $ 181 $ 40 $ 1 $ 1,652 |