Loans Receivable, Net | Loans Receivable, Net The Company’s loan portfolio is comprised of three segments: residential real estate, commercial, and consumer and other loans. The loan segments are further disaggregated into the following classes: residential real estate, commercial real estate, other commercial, home equity and other consumer loans. The following table presents loans receivable for each portfolio class of loans: (Dollars in thousands) December 31, December 31, Residential real estate loans $ 926,388 887,742 Commercial loans Real estate 5,579,307 4,657,561 Other commercial 2,094,254 1,911,171 Total 7,673,561 6,568,732 Consumer and other loans Home equity 617,201 544,688 Other consumer 295,660 286,387 Total 912,861 831,075 Loans receivable 9,512,810 8,287,549 Allowance for loan and lease losses (124,490) (131,239) Loans receivable, net $ 9,388,320 8,156,310 Net deferred origination (fees) costs included in loans receivable $ (6,964) (5,685) Net purchase accounting (discounts) premiums included in loans receivable $ (21,574) (25,172) At December 31, 2019, the Company had loans of $5,228,136,000 pledged as collateral for FHLB advances and FRB discount window. The Company is subject to regulatory limits for the amount of loans to any individual borrower and the Company is in compliance with this regulation as of December 31, 2019 and 2018. No borrower had outstanding loans or commitments exceeding 10 percent of the Company’s consolidated stockholders’ equity as of December 31, 2019. Loans that are serviced for others are not reported as assets. The principal balances of these loans were $185,897,000 and $181,281,000 at December 31, 2019 and 2018, respectively. The fair value of servicing rights was insignificant at December 31, 2019 and 2018. There were no significant purchases or sales of portfolio loans during 2019, 2018 and 2017. The Company has entered into transactions with its executive officers and directors and their affiliates. The aggregate amount of loans outstanding to such related parties at December 31, 2019 and 2018 was $57,825,000 and $59,528,000, respectively. During 2019, new loans to such related parties were $17,504,000 and repayments were $19,207,000. In management’s opinion, such loans were made in the ordinary course of business and were made on substantially the same terms as those prevailing at the time for comparable transaction with other persons. Allowance for Loan and Lease Losses The ALLL is a valuation allowance for probable incurred credit losses. The following tables summarize the activity in the ALLL by loan class: Year ended December 31, 2019 (Dollars in thousands) Total Residential Commercial Other Home Other Balance at beginning of period $ 131,239 10,631 72,448 38,160 5,811 4,189 Provision for loan losses 57 (163) (2,704) (23) (863) 3,810 Charge-offs (15,178) (608) (2,460) (4,189) (90) (7,831) Recoveries 8,372 251 2,212 2,181 79 3,649 Balance at end of period $ 124,490 10,111 69,496 36,129 4,937 3,817 Year ended December 31, 2018 (Dollars in thousands) Total Residential Commercial Other Home Other Balance at beginning of period $ 129,568 10,798 68,515 39,303 6,204 4,748 Provision for loan losses 9,953 474 4,343 1,916 (471) 3,691 Charge-offs (17,807) (728) (3,469) (5,045) (210) (8,355) Recoveries 9,525 87 3,059 1,986 288 4,105 Balance at end of period $ 131,239 10,631 72,448 38,160 5,811 4,189 Year ended December 31, 2017 (Dollars in thousands) Total Residential Commercial Other Home Other Balance at beginning of period $ 129,572 12,436 65,773 37,823 7,572 5,968 Provision for loan losses 10,824 (1,521) 7,152 2,545 (1,103) 3,751 Charge-offs (19,331) (199) (6,188) (2,856) (489) (9,599) Recoveries 8,503 82 1,778 1,791 224 4,628 Balance at end of period $ 129,568 10,798 68,515 39,303 6,204 4,748 The following tables disclose the recorded investment in loans and the balance in the ALLL by loan class: December 31, 2019 (Dollars in thousands) Total Residential Commercial Other Home Other Loans receivable Individually evaluated for impairment $ 94,504 7,804 58,609 21,475 3,745 2,871 Collectively evaluated for impairment 9,418,306 918,584 5,520,698 2,072,779 613,456 292,789 Total loans receivable $ 9,512,810 926,388 5,579,307 2,094,254 617,201 295,660 ALLL Individually evaluated for impairment $ 95 — 73 10 — 12 Collectively evaluated for impairment 124,395 10,111 69,423 36,119 4,937 3,805 Total ALLL $ 124,490 10,111 69,496 36,129 4,937 3,817 December 31, 2018 (Dollars in thousands) Total Residential Commercial Other Home Other Loans receivable Individually evaluated for impairment $ 108,788 12,685 68,837 20,975 3,497 2,794 Collectively evaluated for impairment 8,178,761 875,057 4,588,724 1,890,196 541,191 283,593 Total loans receivable $ 8,287,549 887,742 4,657,561 1,911,171 544,688 286,387 ALLL Individually evaluated for impairment $ 3,223 83 568 2,313 39 220 Collectively evaluated for impairment 128,016 10,548 71,880 35,847 5,772 3,969 Total ALLL $ 131,239 10,631 72,448 38,160 5,811 4,189 Substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas. Aging Analysis The following tables present an aging analysis of the recorded investment in loans by loan class: December 31, 2019 (Dollars in thousands) Total Residential Commercial Other Home Other Accruing loans 30-59 days past due $ 15,944 3,403 4,946 4,685 1,040 1,870 Accruing loans 60-89 days past due 7,248 749 2,317 1,190 1,902 1,090 Accruing loans 90 days or more past due 1,412 753 64 143 — 452 Non-accrual loans 30,883 4,715 15,650 6,592 3,266 660 Total past due and non-accrual loans 55,487 9,620 22,977 12,610 6,208 4,072 Current loans receivable 9,457,323 916,768 5,556,330 2,081,644 610,993 291,588 Total loans receivable $ 9,512,810 926,388 5,579,307 2,094,254 617,201 295,660 December 31, 2018 (Dollars in thousands) Total Residential Commercial Other Home Other Accruing loans 30-59 days past due $ 24,312 5,251 9,477 4,282 3,213 2,089 Accruing loans 60-89 days past due 9,255 860 3,231 3,838 735 591 Accruing loans 90 days or more past due 2,018 788 — 492 428 310 Non-accrual loans 47,252 8,021 27,264 8,619 2,575 773 Total past due and non-accrual loans 82,837 14,920 39,972 17,231 6,951 3,763 Current loans receivable 8,204,712 872,822 4,617,589 1,893,940 537,737 282,624 Total loans receivable $ 8,287,549 887,742 4,657,561 1,911,171 544,688 286,387 Impaired Loans Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. The following tables disclose information related to impaired loans by loan class: At or for the Year ended December 31, 2019 (Dollars in thousands) Total Residential Commercial Other Home Other Loans with a specific valuation allowance Recorded balance $ 5,388 — 5,343 10 — 35 Unpaid principal balance 5,388 — 5,343 10 — 35 Specific valuation allowance 95 — 73 10 — 12 Average balance 10,378 409 6,341 3,490 24 114 Loans without a specific valuation allowance Recorded balance 89,116 7,804 53,266 21,465 3,745 2,836 Unpaid principal balance 99,355 9,220 57,735 24,758 4,494 3,148 Average balance 93,338 9,879 59,107 18,079 3,486 2,787 Total Recorded balance 94,504 7,804 58,609 21,475 3,745 2,871 Unpaid principal balance 104,743 9,220 63,078 24,768 4,494 3,183 Specific valuation allowance 95 — 73 10 — 12 Average balance 103,716 10,288 65,448 21,569 3,510 2,901 At or for the Year ended December 31, 2018 (Dollars in thousands) Total Residential Commercial Other Home Other Loans with a specific valuation allowance Recorded balance $ 19,197 1,957 9,345 7,268 120 507 Unpaid principal balance 19,491 2,220 9,345 7,268 120 538 Specific valuation allowance 3,223 83 568 2,313 39 220 Average balance 19,519 2,686 8,498 7,081 82 1,172 Loans without a specific valuation allowance Recorded balance 89,591 10,728 59,492 13,707 3,377 2,287 Unpaid principal balance 107,486 11,989 71,300 17,689 3,986 2,522 Average balance 106,747 10,269 73,889 17,376 3,465 1,748 Total Recorded balance 108,788 12,685 68,837 20,975 3,497 2,794 Unpaid principal balance 126,977 14,209 80,645 24,957 4,106 3,060 Specific valuation allowance 3,223 83 568 2,313 39 220 Average balance 126,266 12,955 82,387 24,457 3,547 2,920 Interest income recognized on impaired loans for the years ended December 31, 2019, 2018, and 2017 was not significant. Restructured Loans A restructured loan is considered a troubled debt restructuring if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: Year ended December 31, 2019 (Dollars in thousands) Total Residential Commercial Other Home Other TDRs that occurred during the period Number of loans 18 1 6 6 2 3 Pre-modification recorded balance $ 18,508 117 8,524 9,382 214 271 Post-modification recorded balance $ 18,476 123 8,524 9,364 214 251 TDRs that subsequently defaulted Number of loans 1 — 1 — — — Recorded balance $ 106 — 106 — — — Year ended December 31, 2018 (Dollars in thousands) Total Residential Commercial Other Home Other TDRs that occurred during the period Number of loans 25 4 8 10 2 1 Pre-modification recorded balance $ 21,995 724 12,901 7,813 252 305 Post-modification recorded balance $ 21,881 724 12,787 7,813 252 305 TDRs that subsequently defaulted Number of loans 1 1 — — — — Recorded balance $ 47 47 — — — — Year ended December 31, 2017 (Dollars in thousands) Total Residential Commercial Other Home Other TDRs that occurred during the period Number of loans 32 5 13 11 2 1 Pre-modification recorded balance $ 41,521 841 31,109 9,403 158 10 Post-modification recorded balance $ 38,838 841 28,426 9,403 158 10 TDRs that subsequently defaulted Number of loans 1 — — 1 — — Recorded balance $ 18 — — 18 — — The modifications for the loans designated as TDRs during the years ended December 31, 2019, 2018 and 2017 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount. |