Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 8 . Loans Most of the Company’s business activities are with customers located in the high-density Asian-populated areas of Southern and Northern California; New York City, New York; Dallas and Houston, Texas; Seattle, Washington; Boston, Massachusetts; Chicago, Illinois; Edison, New Jersey; Rockville, Maryland; Las Vegas, Nevada, and Hong Kong. The Company has no The types of loans in the Company’s condensed consolidated balance sheets as of September 30, 2018, December 31, 2017, September 30, 2018 December 31, 2017 (In thousands) Commercial loans $ 2,674,089 $ 2,461,266 Residential mortgage loans 3,569,111 3,062,050 Commercial mortgage loans 6,580,254 6,482,695 Real estate construction loans 597,018 678,805 Equity lines 221,599 180,304 Installment & other loans 5,575 5,170 Gross loans $ 13,647,646 $ 12,870,290 Allowance for loan losses (123,457 ) (123,279 ) Unamortized deferred loan fees (2,086 ) (3,245 ) Total loans, net $ 13,522,103 $ 12,743,766 Loans held for sale $ - $ 8,000 As of September 30, 2018, $117.0 $42.4 $74.6 December 31, 2017, $117.4 $48.8 $68.6 7.4% September 30, 2018, 7.2% December 31, 2017, 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 Nine months ended Three months ended Nine months ended September 30, September 30, September 30, September 30, 2018 2017 2018 2017 2018 2017 2018 2017 (In thousands) Commercial loans $ 48,772 $ 24,987 $ 46,920 $ 22,572 $ 461 $ 678 $ 1,152 $ 760 Real estate construction loans 5,980 29,780 7,490 29,868 - 99 - 287 Commercial mortgage loans 55,375 58,555 59,314 60,074 576 391 1,757 1,015 Residential mortgage loans and equity lines 13,724 13,937 14,032 15,208 108 96 279 287 Total impaired loans $ 123,851 $ 127,259 $ 127,756 $ 127,722 $ 1,145 $ 1,264 $ 3,188 $ 2,349 The following table presents impaired loans and the related allowance for loan losses as of the dates indicated: Impaired Loans September 30, 2018 December 31, 2017 Unpaid Principal Balance Recorded Investment Allowance Unpaid Principal Balance Recorded Investment Allowance (In thousands) With no allocated allowance Commercial loans $ 40,426 $ 38,556 $ - $ 43,483 $ 42,702 $ - Real estate construction loans 5,776 4,922 - 8,821 8,185 - Commercial mortgage loans 34,276 26,912 - 37,825 31,029 - Residential mortgage loans and equity lines 6,791 6,776 - 1,301 1,301 - Subtotal $ 87,269 $ 77,166 $ - $ 91,430 $ 83,217 $ - With allocated allowance Commercial loans $ 5,792 $ 5,715 $ 2,506 $ 891 $ 793 $ 43 Commercial mortgage loans 27,549 27,523 917 21,733 21,635 1,738 Residential mortgage loans and equity lines 7,670 6,605 281 13,022 11,708 353 Subtotal $ 41,011 $ 39,843 $ 3,704 $ 35,646 $ 34,136 $ 2,134 Total impaired loans $ 128,280 $ 117,009 $ 3,704 $ 127,076 $ 117,353 $ 2,134 The following tables present the aging of the loan portfolio by type as of September 30, 2018, December 31, 2017: September 30, 2018 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 $ 28,212 $ 17,329 $ 3,467 $ 17,118 $ 66,126 $ 2,607,963 $ 2,674,089 Real estate construction loans - - - 4,922 4,922 592,096 597,018 Commercial mortgage loans - 9,157 3,214 13,172 25,543 6,554,711 6,580,254 Residential mortgage loans and equity lines - - - 7,198 7,198 3,783,512 3,790,710 Installment and other loans - - - - - 5,575 5,575 Total loans $ 28,212 $ 26,486 $ 6,681 $ 42,410 $ 103,789 $ 13,543,857 $ 13,647,646 December 31, 2017 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 $ 11,079 $ 5,192 $ - $ 14,296 $ 30,567 $ 2,430,699 $ 2,461,266 Real estate construction loans 3,028 - - 8,185 11,213 667,592 678,805 Commercial mortgage loans 17,573 5,602 - 19,820 42,995 6,439,700 6,482,695 Residential mortgage loans and equity lines 6,613 732 - 6,486 13,831 3,228,523 3,242,354 Installment and other loans 103 - - - 103 5,067 5,170 Total loans $ 38,396 $ 11,526 $ - $ 48,787 $ 98,709 $ 12,771,581 $ 12,870,290 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. 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. 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 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 As of September 30, 2018, $74.6 $27.7 $68.6 $33.4 December 31, 2017. $1.6 $1.9 September 30, 2018, $1.9 $83,000 December 31, 2017. three nine September 30, 2018 2017, September 30, 2018 2017, three nine September 30, 2018 2017: Three months ended September 30, 2018 September 30, 2018 No. of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserve (Dollars in thousands) Commercial loans 3 $ 4,621 $ 4,621 $ - $ 2,467 Commercial mortgage loans 1 339 339 - - Residential mortgage loans and equity lines 2 413 413 - 16 Total 6 $ 5,373 $ 5,373 $ - $ 2,483 Three months ended September 30, 2017 September 30, 2017 No. of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserve (Dollars in thousands) Commercial loans 8 $ 18,873 $ 18,873 $ - $ 636 Commercial mortgage loans 5 4,123 3,818 305 10 Residential mortgage loans and equity lines 1 483 483 - 32 Total 14 $ 23,479 $ 23,174 $ 305 $ 678 Nine months ended September 30, 2018 September 30, 2018 No. of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserve (Dollars in thousands) Commercial loans 21 $ 12,212 $ 12,212 $ - $ 2,493 Commercial mortgage loans 7 14,626 14,626 - 119 Residential mortgage loans and equity lines 4 1,213 1,213 - 24 Total 32 $ 28,051 $ 28,051 $ - $ 2,636 Nine months ended September 30, 2017 September 30, 2017 No. of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Charge-offs Specific Reserve (Dollars in thousands) Commercial loans 13 $ 19,543 $ 19,543 $ - $ 641 Real estate construction loans 2 28,489 28,489 - - Commercial mortgage loans 5 4,123 3,818 305 10 Residential mortgage loans and equity lines 1 483 483 - 32 Total 21 $ 52,638 $ 52,333 $ 305 $ 683 Modifications of the loan terms during the first nine 2018 three twelve We expect that the TDRs on accruing status as of September 30, 2018, September 30, 2018, December 31, 2017, September 30, 2018 Accruing TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 27,153 $ - $ - $ 27,153 Commercial mortgage loans 14,248 7,446 19,568 41,262 Residential mortgage loans 3,433 329 2,421 6,183 Total accruing TDRs $ 44,834 $ 7,775 $ 21,989 $ 74,598 September 30, 2018 Non-accrual TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 14,579 $ - $ - $ 14,579 Commercial mortgage loans 3,863 - 7,261 11,124 Residential mortgage loans 1,901 - 114 2,015 Total non-accrual TDRs $ 20,343 $ - $ 7,375 $ 27,718 December 31, 2017 Accruing TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 29,199 $ - $ - $ 29,199 Commercial mortgage loans 11,504 5,871 15,468 32,843 Residential mortgage loans 3,416 335 2,772 6,523 Total accruing TDRs $ 44,119 $ 6,206 $ 18,240 $ 68,565 December 31, 2017 Non-accrual TDRs Payment Deferral Rate Reduction Rate Reduction and Payment Deferral Total (In thousands) Commercial loans $ 12,944 $ - $ - $ 12,944 Commercial mortgage loans 6,231 1,677 11,113 19,021 Residential mortgage loans 1,297 - 154 1,451 Total non-accrual TDRs $ 20,472 $ 1,677 $ 11,267 $ 33,416 The activity within our TDRs for the periods indicated is shown below: Three months ended September 30, Nine months ended September 30, Accruing TDRs 2018 2017 2018 2017 (In thousands) Beginning balance $ 84,487 $ 79,819 $ 68,566 $ 65,393 New restructurings 2,589 21,790 25,036 49,973 Restructured loans restored to accrual status 577 - 2,895 - Payments (13,055 ) (35,677 ) (19,801 ) (41,372 ) Restructured loans placed on non-accrual status - (3,574 ) (2,098 ) (9,396 ) Expiration of loan concession upon renewal - - - (2,240 ) Ending balance $ 74,598 $ 62,358 $ 74,598 $ 62,358 Three months ended September 30, Nine months ended September 30, Non-accrual TDRs 2018 2017 2018 2017 (In thousands) Beginning balance $ 30,347 $ 30,045 $ 33,415 $ 29,722 New restructurings 2,784 2,360 3,015 2,360 Restructured loans placed on non-accrual status - 3,574 2,098 9,396 Charge-offs - (355 ) (161 ) (1,901 ) Payments (4,836 ) (1,933 ) (7,754 ) (5,160 ) Foreclosures - - - (726 ) Restructured loans restored to accrual status (577 ) - (2,895 ) - Ending balance $ 27,718 $ 33,691 $ 27,718 $ 33,691 The Company considers a loan to be in payment default once it is 60 90 not twelve September 30, 2018. 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 September 30, 2018, no 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 – not may ● Substandard – may not not ● Doubtful – may ● Loss – no The following tables present the loan portfolio by risk rating as of September 30, 2018, December 31, 2017: September 30, 2018 Pass/Watch Special Mention Substandard Doubtful Total (In thousands) Commercial loans $ 2,494,780 $ 125,373 $ 53,936 $ - $ 2,674,089 Real estate construction loans 531,579 60,517 4,922 - 597,018 Commercial mortgage loans 6,181,227 315,010 84,017 - 6,580,254 Residential mortgage loans and equity lines 3,782,077 - 8,633 - 3,790,710 Installment and other loans 5,575 - - - 5,575 Total gross loans $ 12,995,238 $ 500,900 $ 151,508 $ - $ 13,647,646 Loans held for sale $ - $ - $ - $ - $ - December 31, 2017 Pass/Watch Special Mention Substandard Doubtful Total Commercial loans $ 2,281,698 $ 118,056 $ 61,503 $ 9 $ 2,461,266 Real estate construction loans 616,411 54,209 8,185 - 678,805 Commercial mortgage loans 6,004,258 308,924 169,513 - 6,482,695 Residential mortgage loans and equity lines 3,232,606 - 9,748 - 3,242,354 Installment and other loans 5,170 - - - 5,170 Total gross loans $ 12,140,143 $ 481,189 $ 248,949 $ 9 $ 12,870,290 Loans held for sale $ - $ - $ 8,000 $ - $ 8,000 The following table presents the balance in the allowance for loan losses by portfolio segment and based on impairment method as of September 30, 2018, December 31, 2017: Real Estate Commercial Residential Commercial Construction Mortgage Mortgage Loans Installment and Loans Loans Loans and Equity Lines Other Loans Total (In thousands) September 30, 2018 Loans individually evaluated for impairment Allowance $ 2,506 $ - $ 917 $ 281 $ - $ 3,704 Balance $ 44,272 $ 4,922 $ 54,435 $ 13,381 $ - $ 117,010 Loans collectively evaluated for impairment Allowance $ 54,008 $ 21,226 $ 31,865 $ 12,628 $ 26 $ 119,753 Balance $ 2,629,817 $ 592,096 $ 6,525,819 $ 3,777,329 $ 5,575 $ 13,530,636 Total allowance $ 56,514 $ 21,226 $ 32,782 $ 12,909 $ 26 $ 123,457 Total balance $ 2,674,089 $ 597,018 $ 6,580,254 $ 3,790,710 $ 5,575 $ 13,647,646 December 31, 2017 Loans individually evaluated for impairment Allowance $ 43 $ - $ 1,738 $ 353 $ - $ 2,134 Balance $ 43,495 $ 8,185 $ 52,664 $ 13,009 $ - $ 117,353 Loans collectively evaluated for impairment Allowance $ 49,753 $ 24,838 $ 35,872 $ 10,660 $ 22 $ 121,145 Balance $ 2,417,771 $ 670,620 $ 6,430,031 $ 3,229,345 $ 5,170 $ 12,752,937 Total allowance $ 49,796 $ 24,838 $ 37,610 $ 11,013 $ 22 $ 123,279 Total balance $ 2,461,266 $ 678,805 $ 6,482,695 $ 3,242,354 $ 5,170 $ 12,870,290 The following tables detail activity in the allowance for loan losses by portfolio segment for the three nine September 30, 2018, September 30, 2017. one not Three months ended September 30, 2018 2017 Real Estate Commercial Residential Installment Commercial Construction Mortgage Mortgage Loans and Other Loans Loans Loans and Equity Lines Loans Total (In thousands) June 30, 2018 Ending Balance $ 55,179 $ 20,663 $ 33,976 $ 12,062 $ 19 121,899 Provision/(credit) for possible credit losses 1,270 519 (4,138 ) 842 7 (1,500 ) Charge-offs (122 ) - - - - (122 ) Recoveries 187 44 2,944 5 - 3,180 Net (charge-offs)/recoveries 65 44 2,944 5 - 3,058 September 30, 2018 Ending Balance $ 56,514 $ 21,226 $ 32,782 $ 12,909 $ 26 $ 123,457 June 30, 2017 Ending Balance $ 46,744 $ 17,844 $ 36,840 $ 14,364 $ 17 $ 115,809 Provision/(credit) for possible credit losses 3,800 4,117 (4,615 ) (3,309 ) 7 - Charge-offs (80 ) - (305 ) - - (385 ) Recoveries 575 47 5,482 7 - 6,111 Net (charge-offs)/recoveries 495 47 5,177 7 - 5,726 September 30, 2017 Ending Balance $ 51,039 $ 22,008 $ 37,402 $ 11,062 $ 24 $ 121,535 Nine months ended September 30, 2018 2017 Real Estate Commercial Residential Installment Commercial Construction Mortgage Mortgage Loans and Other Loans Loans Loans and Equity Lines Loans Total (In thousands) 2018 Beginning Balance $ 49,796 $ 24,838 $ 37,610 $ 11,013 $ 22 $ 123,279 Provision/(credit) for possible credit losses 6,097 (3,744 ) (8,672 ) 1,815 4 (4,500 ) Charge-offs (629 ) - (390 ) - - (1,019 ) Recoveries 1,250 132 4,234 81 - 5,697 Net recoveries 621 132 3,844 81 - 4,678 September 30, 2018 Ending Balance $ 56,514 $ 21,226 $ 32,782 $ 12,909 $ 26 $ 123,457 Reserve for impaired loans $ 2,506 $ - $ 917 $ 281 $ - $ 3,704 Reserve for non-impaired loans $ 54,008 $ 21,226 $ 31,865 $ 12,628 $ 26 $ 119,753 Reserve for off-balance sheet credit commitments $ 1,615 $ 1,174 $ 78 $ 215 $ 6 $ 3,088 2017 Beginning Balance $ 49,203 $ 23,268 $ 34,864 $ 11,620 $ 11 $ 118,966 (Credit)/provision for possible credit losses 2,245 (1,403 ) (2,775 ) (580 ) 13 (2,500 ) Charge-offs (1,810 ) - (860 ) - - (2,670 ) Recoveries 1,401 143 6,173 22 - 7,739 Net (charge-offs)/recoveries (409 ) 143 5,313 22 - 5,069 September 30, 2017 Ending Balance $ 51,039 $ 22,008 $ 37,402 $ 11,062 $ 24 $ 121,535 Reserve for impaired loans $ 1,461 - $ 823 $ 322 - $ 2,606 Reserve for non-impaired loans $ 49,578 $ 22,008 $ 36,579 $ 10,740 $ 24 $ 118,929 Reserve for off-balance sheet credit commitments $ 2,760 $ 1,206 $ 109 $ 175 $ 4 $ 4,254 |