Quarterly report pursuant to Section 13 or 15(d)

Allowance for Loan and Lease Losses (Tables)

v3.20.2
Allowance for Loan and Lease Losses (Tables)
9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Allowance for Loan and Lease Losses

The following tables present information related to allowance for loan and lease losses for the periods presented:

 

 

 

Allowance Rollforward

 

Three Months Ended September 30, 2020

 

Beginning

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

6,313

 

 

$

(559

)

 

$

33

 

 

$

1,874

 

 

$

7,661

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

107

 

 

 

(21

)

 

 

 

 

 

(4

)

 

 

82

 

Construction, land and development loans

 

 

1,258

 

 

 

 

 

 

 

 

 

200

 

 

 

1,458

 

Commercial real estate loans (including multifamily)

 

 

2,163

 

 

 

 

 

 

 

 

 

686

 

 

 

2,849

 

Consumer loans and leases

 

 

49

 

 

 

(4

)

 

 

20

 

 

 

37

 

 

 

102

 

Municipal and other loans

 

 

15

 

 

 

 

 

 

2

 

 

 

38

 

 

 

55

 

Ending allowance balance

 

$

9,905

 

 

$

(584

)

 

$

55

 

 

$

2,831

 

 

$

12,207

 

 

 

 

Allowance Rollforward

 

Three Months Ended September 30, 2019

 

Beginning

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,217

 

 

$

(687

)

 

$

36

 

 

$

669

 

 

$

4,235

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

32

 

 

 

 

 

 

65

 

 

 

(66

)

 

 

31

 

Construction, land and development loans

 

 

794

 

 

 

 

 

 

 

 

 

90

 

 

 

884

 

Commercial real estate loans (including multifamily)

 

 

1,191

 

 

 

 

 

 

 

 

 

127

 

 

 

1,318

 

Consumer loans and leases

 

 

35

 

 

 

(26

)

 

 

 

 

 

85

 

 

 

94

 

Municipal and other loans

 

 

8

 

 

 

 

 

 

 

 

 

(5

)

 

 

3

 

Ending allowance balance

 

$

6,277

 

 

$

(713

)

 

$

101

 

 

$

900

 

 

$

6,565

 

 

 

 

Allowance Rollforward

 

Nine Months Ended September 30, 2020

 

Beginning

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,078

 

 

$

(1,268

)

 

$

42

 

 

$

4,809

 

 

$

7,661

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

31

 

 

 

(21

)

 

 

 

 

 

72

 

 

 

82

 

Construction, land and development loans

 

 

1,055

 

 

 

 

 

 

 

 

 

403

 

 

 

1,458

 

Commercial real estate loans (including multifamily)

 

 

1,451

 

 

 

 

 

 

 

 

 

1,398

 

 

 

2,849

 

Consumer loans and leases

 

 

68

 

 

 

(163

)

 

 

34

 

 

 

163

 

 

 

102

 

Municipal and other loans

 

 

54

 

 

 

 

 

 

6

 

 

 

(5

)

 

 

55

 

Ending allowance balance

 

$

6,737

 

 

$

(1,452

)

 

$

82

 

 

$

6,840

 

 

$

12,207

 

 

 

 

Allowance Rollforward

 

Nine Months Ended September 30, 2019

 

Beginning

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,453

 

 

$

(1,908

)

 

$

95

 

 

$

1,595

 

 

$

4,235

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

59

 

 

 

 

 

 

65

 

 

 

(93

)

 

 

31

 

Construction, land and development loans

 

 

731

 

 

 

 

 

 

 

 

 

153

 

 

 

884

 

Commercial real estate loans (including multifamily)

 

 

960

 

 

 

 

 

 

 

 

 

358

 

 

 

1,318

 

Consumer loans and leases

 

 

80

 

 

 

(60

)

 

 

5

 

 

 

69

 

 

 

94

 

Municipal and other loans

 

 

3

 

 

 

 

 

 

1

 

 

 

(1

)

 

 

3

 

Ending allowance balance

 

$

6,286

 

 

$

(1,968

)

 

$

166

 

 

$

2,081

 

 

$

6,565

 

 

Summary of Aging Analysis of Recorded Investment for Delinquent Loans by Portfolio and Segment

The following tables present an aging analysis of the recorded investment for delinquent loans by portfolio and segment for the periods presented:

 

 

 

Accruing

 

 

 

 

 

 

 

 

 

September 30, 2020

 

Current

 

 

30 to 59

Days Past

Due

 

 

60 to 89

Days Past

Due

 

 

90 Days or

More Past

Due

 

 

Non-

Accrual

 

 

Total

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

685,416

 

 

$

195

 

 

$

39

 

 

$

 

 

$

4,359

 

 

$

690,009

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

369,983

 

 

 

733

 

 

 

563

 

 

 

 

 

 

1,941

 

 

 

373,220

 

Construction, land and development

 

 

402,259

 

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

402,476

 

Commercial real estate loans (including multifamily)

 

 

903,602

 

 

 

 

 

 

381

 

 

 

 

 

 

2,151

 

 

 

906,134

 

Consumer loans and leases

 

 

12,813

 

 

 

82

 

 

 

20

 

 

 

 

 

 

62

 

 

 

12,977

 

Municipal and other loans

 

 

67,537

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

67,537

 

Total loans

 

$

2,441,610

 

 

$

1,010

 

 

$

1,003

 

 

$

 

 

$

8,730

 

 

$

2,452,353

 

 

 

 

Accruing

 

 

 

 

 

 

 

 

 

December 31, 2019

 

Current

 

 

30 to 59

Days Past

Due

 

 

60 to 89

Days Past

Due

 

 

90 Days or

More Past

Due

 

 

Non-

Accrual

 

 

Total

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

278,922

 

 

$

760

 

 

$

688

 

 

$

-

 

 

$

2,579

 

 

$

282,949

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

372,828

 

 

 

1,018

 

 

 

 

 

 

 

 

 

1,897

 

 

 

375,743

 

Construction, land and development

 

 

258,497

 

 

 

671

 

 

 

 

 

 

 

 

 

216

 

 

 

259,384

 

Commercial real estate loans (including multifamily)

 

 

750,432

 

 

 

1,283

 

 

 

404

 

 

 

 

 

 

1,693

 

 

 

753,812

 

Consumer loans and leases

 

 

22,663

 

 

 

27

 

 

 

3

 

 

 

2

 

 

 

74

 

 

 

22,769

 

Municipal and other loans

 

 

72,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72,525

 

Total loans

 

$

1,755,867

 

 

$

3,759

 

 

$

1,095

 

 

$

2

 

 

$

6,459

 

 

$

1,767,182

 

Summary of Loans by Key Indicators of Credit Quality

The following tables summarize the Company’s loans by key indicators of credit quality for the periods presented:

 

September 30, 2020

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

670,463

 

 

$

2,783

 

 

$

16,462

 

 

$

301

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

369,024

 

 

 

286

 

 

 

3,910

 

 

 

 

Construction, land and development

 

 

398,134

 

 

 

4,125

 

 

 

217

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

889,239

 

 

 

7,339

 

 

 

9,556

 

 

 

 

Consumer loans and leases

 

 

12,901

 

 

 

 

 

 

76

 

 

 

 

Municipal and other loans

 

 

64,498

 

 

 

2,950

 

 

 

89

 

 

 

 

Total loans

 

$

2,404,259

 

 

$

17,483

 

 

$

30,310

 

 

$

301

 

 

December 31, 2019

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

266,688

 

 

$

1,905

 

 

$

14,355

 

 

$

1

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

372,190

 

 

 

893

 

 

 

2,660

 

 

 

 

Construction, land and development

 

 

258,864

 

 

 

304

 

 

 

216

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

734,757

 

 

 

5,312

 

 

 

13,743

 

 

 

 

Consumer loans and leases

 

 

22,632

 

 

 

 

 

 

137

 

 

 

 

Municipal and other loans

 

 

72,134

 

 

 

 

 

 

391

 

 

 

 

Total loans

 

$

1,727,265

 

 

$

8,414

 

 

$

31,502

 

 

$

1

 

Summary of Investment in Loans Disaggregated Based on Method of Evaluating Impairment

The following tables show the Company’s investment in loans disaggregated based on the method of evaluating impairment for the periods presented:

 

 

 

Loans - Recorded Investment

 

 

Allowance for Credit Loss

 

September 30, 2020

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,457

 

 

$

685,552

 

 

$

3,023

 

 

$

4,638

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

2,073

 

 

 

371,147

 

 

 

2

 

 

 

80

 

Construction, land and development

 

 

215

 

 

 

402,261

 

 

 

 

 

 

1,458

 

Commercial real estate loans (including multifamily)

 

 

2,149

 

 

 

903,985

 

 

 

 

 

 

2,849

 

Consumer loans and leases

 

 

61

 

 

 

12,916

 

 

 

51

 

 

 

51

 

Municipal and other loans

 

 

 

 

 

67,537

 

 

 

 

 

 

55

 

Total loans

 

$

8,955

 

 

$

2,443,398

 

 

$

3,076

 

 

$

9,131

 

 

 

 

Loans - Recorded Investment

 

 

Allowance for Credit Loss

 

December 31, 2019

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

2,508

 

 

$

280,441

 

 

$

1,422

 

 

$

2,657

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

1,988

 

 

 

373,755

 

 

 

3

 

 

 

28

 

Construction, land and development

 

 

216

 

 

 

259,168

 

 

 

 

 

 

1,055

 

Commercial real estate loans (including multifamily)

 

 

1,571

 

 

 

752,241

 

 

 

 

 

 

1,451

 

Consumer loans and leases

 

 

24

 

 

 

22,745

 

 

 

19

 

 

 

48

 

Municipal and other loans

 

 

 

 

 

72,525

 

 

 

 

 

 

54

 

Total loans

 

$

6,307

 

 

$

1,760,875

 

 

$

1,444

 

 

$

5,293

 

Summary of Information Regarding Impaired Loans Evaluated for Specific Reserves

The following tables set forth certain information regarding the Company’s impaired loans that were evaluated for specific reserves for the periods presented:

 

 

 

Impaired Loans - With Allowance

 

 

Impaired Loans - With no

Allowance

 

September 30, 2020

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

3,919

 

 

$

3,924

 

 

$

3,023

 

 

$

532

 

 

$

530

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

7

 

 

 

7

 

 

 

2

 

 

 

2,068

 

 

 

2,067

 

Construction, land and development

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

215

 

Commercial real estate loans (including multifamily)

 

 

 

 

 

 

 

 

 

 

 

2,151

 

 

 

2,124

 

Consumer loans and leases

 

 

51

 

 

 

51

 

 

 

51

 

 

 

10

 

 

 

9

 

Municipal and other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

3,977

 

 

$

3,982

 

 

$

3,076

 

 

$

4,978

 

 

$

4,945

 

 

 

 

Impaired Loans - With Allowance

 

 

Impaired Loans - With no

Allowance

 

December 31, 2019

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

2,150

 

 

$

2,168

 

 

$

1,422

 

 

$

358

 

 

$

360

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

12

 

 

 

12

 

 

 

3

 

 

 

1,976

 

 

 

1,965

 

Construction, land and development

 

 

 

 

 

 

 

 

 

 

 

216

 

 

 

214

 

Commercial real estate loans (including multifamily)

 

 

 

 

 

 

 

 

 

 

 

1,571

 

 

 

1,571

 

Consumer loans and leases

 

 

24

 

 

 

24

 

 

 

19

 

 

 

 

 

 

 

Municipal and other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

2,186

 

 

$

2,204

 

 

$

1,444

 

 

$

4,121

 

 

$

4,110

 

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,526

 

 

$

 

 

$

2,758

 

 

$

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

2,005

 

 

 

 

 

 

1,409

 

 

 

 

Construction, land and development

 

 

217

 

 

 

 

 

 

216

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

278

 

 

 

 

 

 

238

 

 

 

 

Consumer loans and leases

 

 

51

 

 

 

 

 

 

22

 

 

 

 

Municipal and other loans

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

7,077

 

 

$

 

 

$

4,643

 

 

$

 

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

5,342

 

 

$

 

 

$

2,905

 

 

$

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

2,024

 

 

 

 

 

 

1,434

 

 

 

 

Construction, land and development

 

 

216

 

 

 

 

 

 

220

 

 

 

 

Commercial real estate loans (including multifamily)