Quarterly report pursuant to Section 13 or 15(d)

Allowance for Loan and Lease Losses (Tables)

v3.21.1
Allowance for Loan and Lease Losses (Tables)
3 Months Ended
Mar. 31, 2021
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 March 31, 2021

 

Beginning

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

9,086

 

 

$

(807

)

 

$

15

 

 

$

1,388

 

 

$

9,682

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

147

 

 

 

 

 

 

 

 

 

(63

)

 

 

84

 

Construction, land and development loans

 

 

1,744

 

 

 

 

 

 

 

 

 

142

 

 

 

1,886

 

Commercial real estate loans (including multifamily)

 

 

4,843

 

 

 

 

 

 

 

 

 

(387

)

 

 

4,456

 

Consumer loans and leases

 

 

145

 

 

 

(20

)

 

 

12

 

 

 

(24

)

 

 

113

 

Municipal and other loans

 

 

61

 

 

 

 

 

 

2

 

 

 

30

 

 

 

93

 

Ending allowance balance

 

$

16,026

 

 

$

(827

)

 

$

29

 

 

$

1,086

 

 

$

16,314

 

 

 

 

 

Allowance Rollforward

 

Three Months Ended March 31, 2020

 

Beginning

Balance

 

 

Charge-offs

 

 

Recoveries

 

 

Provision

 

 

Ending

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,078

 

 

$

(254

)

 

$

4

 

 

$

656

 

 

$

4,484

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

31

 

 

 

 

 

 

 

 

 

4

 

 

 

35

 

Construction, land and development loans

 

 

1,055

 

 

 

 

 

 

 

 

 

238

 

 

 

1,293

 

Commercial real estate loans (including multifamily)

 

 

1,451

 

 

 

 

 

 

 

 

 

298

 

 

 

1,749

 

Consumer loans and leases

 

 

68

 

 

 

(52

)

 

 

12

 

 

 

23

 

 

 

51

 

Municipal and other loans

 

 

54

 

 

 

 

 

 

2

 

 

 

(48

)

 

 

8

 

Ending allowance balance

 

$

6,737

 

 

$

(306

)

 

$

18

 

 

$

1,171

 

 

$

7,620

 

 

 

 

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

 

 

 

 

 

 

 

 

 

March 31, 2021

 

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

 

$

693,533

 

 

$

374

 

 

$

 

 

$

 

 

$

5,989

 

 

$

699,896

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

346,360

 

 

 

1,459

 

 

 

250

 

 

 

 

 

 

839

 

 

 

348,908

 

Construction, land and development

 

 

344,204

 

 

 

 

 

 

 

 

 

136

 

 

 

217

 

 

 

344,557

 

Commercial real estate loans (including multifamily)

 

 

960,352

 

 

 

1,276

 

 

 

136

 

 

 

 

 

 

2,578

 

 

 

964,342

 

Consumer loans and leases

 

 

9,459

 

 

 

53

 

 

 

 

 

 

 

 

 

107

 

 

 

9,619

 

Municipal and other loans

 

 

63,254

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

63,272

 

Total loans

 

$

2,417,162

 

 

$

3,162

 

 

$

386

 

 

$

136

 

 

$

9,748

 

 

$

2,430,594

 

 

 

 

Accruing

 

 

 

 

 

 

 

 

 

December 31, 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

 

$

567,491

 

 

$

2,295

 

 

$

271

 

 

$

-

 

 

$

4,929

 

 

$

574,986

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

362,505

 

 

 

99

 

 

 

28

 

 

 

 

 

 

1,507

 

 

 

364,139

 

Construction, land and development

 

 

415,135

 

 

 

136

 

 

 

 

 

 

 

 

 

217

 

 

 

415,488

 

Commercial real estate loans (including multifamily)

 

 

953,823

 

 

 

1,084

 

 

 

 

 

 

 

 

 

1,836

 

 

 

956,743

 

Consumer loans and leases

 

 

11,618

 

 

 

8

 

 

 

4

 

 

 

 

 

 

108

 

 

 

11,738

 

Municipal and other loans

 

 

65,416

 

 

 

 

 

 

22

 

 

 

 

 

 

 

 

 

65,438

 

Total loans

 

$

2,375,988

 

 

$

3,622

 

 

$

325

 

 

$

-

 

 

$

8,597

 

 

$

2,388,532

 

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:

 

March 31, 2021

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

681,046

 

 

$

2,167

 

 

$

16,581

 

 

$

102

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

346,298

 

 

 

479

 

 

 

2,131

 

 

 

 

Construction, land and development

 

 

336,232

 

 

 

7,232

 

 

 

1,093

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

915,581

 

 

 

36,046

 

 

 

12,715

 

 

 

 

Consumer loans and leases

 

 

9,512

 

 

 

 

 

 

103

 

 

 

4

 

Municipal and other loans

 

 

59,162

 

 

 

4,012

 

 

 

98

 

 

 

 

Total loans

 

$

2,347,831

 

 

$

49,936

 

 

$

32,721

 

 

$

106

 

 

December 31, 2020

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Doubtful

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

554,685

 

 

$

1,332

 

 

$

18,723

 

 

$

246

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

360,337

 

 

 

-

 

 

 

3,802

 

 

 

 

Construction, land and development

 

 

411,151

 

 

 

4,120

 

 

 

217

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

935,865

 

 

 

10,913

 

 

 

9,965

 

 

 

 

Consumer loans and leases

 

 

11,626

 

 

 

 

 

 

112

 

 

 

 

Municipal and other loans

 

 

62,273

 

 

 

3,085

 

 

 

80

 

 

 

 

Total loans

 

$

2,335,937

 

 

$

19,450

 

 

$

32,899

 

 

$

246

 

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

 

March 31, 2021

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

6,033

 

 

$

693,863

 

 

$

4,712

 

 

$

4,970

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

965

 

 

 

347,943

 

 

 

1

 

 

 

83

 

Construction, land and development

 

 

217

 

 

 

344,340

 

 

 

 

 

 

1,886

 

Commercial real estate loans (including multifamily)

 

 

2,578

 

 

 

961,764

 

 

 

770

 

 

 

3,686

 

Consumer loans and leases

 

 

107

 

 

 

9,512

 

 

 

107

 

 

 

6

 

Municipal and other loans

 

 

70

 

 

 

63,202

 

 

 

52

 

 

 

41

 

Total loans

 

$

9,970

 

 

$

2,420,624

 

 

$

5,642

 

 

$

10,672

 

 

 

 

Loans - Recorded Investment

 

 

Allowance for Credit Loss

 

December 31, 2020

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

Individually

Evaluated for

Impairment

 

 

Collectively

Evaluated for

Impairment

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,978

 

 

$

570,008

 

 

$

3,488

 

 

$

5,598

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

1,637

 

 

 

362,502

 

 

 

1

 

 

 

146

 

Construction, land and development

 

 

217

 

 

 

415,271

 

 

 

 

 

 

1,744

 

Commercial real estate loans (including multifamily)

 

 

1,837

 

 

 

954,906

 

 

 

500

 

 

 

4,343

 

Consumer loans and leases

 

 

108

 

 

 

11,630

 

 

 

90

 

 

 

55

 

Municipal and other loans

 

 

52

 

 

 

65,386

 

 

 

 

 

 

61

 

Total loans

 

$

8,829

 

 

$

2,379,703

 

 

$

4,079

 

 

$

11,947

 

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

 

March 31, 2021

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

5,089

 

 

$

5,127

 

 

$

4,712

 

 

$

944

 

 

$

980

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

4

 

 

 

4

 

 

 

1

 

 

 

961

 

 

 

956

 

Construction, land and development

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

215

 

Commercial real estate loans (including multifamily)

 

 

1,284

 

 

 

1,274

 

 

 

770

 

 

 

1,294

 

 

 

1,294

 

Consumer loans and leases

 

 

107

 

 

 

107

 

 

 

107

 

 

 

 

 

 

 

Municipal and other loans

 

 

52

 

 

 

52

 

 

 

52

 

 

 

18

 

 

 

17

 

Total loans

 

$

6,536

 

 

$

6,564

 

 

$

5,642

 

 

$

3,434

 

 

$

3,462

 

 

 

 

 

Impaired Loans - With Allowance

 

 

Impaired Loans - With no

Allowance

 

December 31, 2020

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

Related

Allowance

 

 

Recorded

Investment

 

 

Unpaid

Principal

Balance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

4,407

 

 

$

4,453

 

 

$

3,488

 

 

$

566

 

 

$

571

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

5

 

 

 

5

 

 

 

1

 

 

 

1,632

 

 

 

1,612

 

Construction, land and development

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

215

 

Commercial real estate loans (including multifamily)

 

 

1,308

 

 

 

1,281

 

 

 

500

 

 

 

528

 

 

 

528

 

Consumer loans and leases

 

 

90

 

 

 

90

 

 

 

90

 

 

 

24

 

 

 

28

 

Municipal and other loans

 

 

 

 

 

 

 

 

 

 

 

52

 

 

 

52

 

Total loans

 

$

5,810

 

 

$

5,829

 

 

$

4,079

 

 

$

3,019

 

 

$

3,006

 

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

Average

Recorded

Investment

 

 

Interest

Income

Recognized

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

$

6,700

 

 

$

1

 

 

$

5,247

 

 

$

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

967

 

 

 

1

 

 

 

2,102

 

 

 

 

Construction, land and development

 

 

217

 

 

 

 

 

 

216

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

2,574

 

 

 

 

 

 

2,270

 

 

 

 

Consumer loans and leases

 

 

105

 

 

 

 

 

 

39

 

 

 

 

Municipal and other loans

 

 

72

 

 

 

 

 

 

 

 

 

 

Total loans

 

$

10,635

 

 

$

2

 

 

$

9,874

 

 

$

 

 

 

Summary of Troubled Debt Restructurings (TDRs) Based Upon Delinquency Status

The following table provides a summary of troubled debt restructurings (“TDRs”) based upon delinquency status, all of which are considered impaired, for the periods presented:

 

 

 

March 31, 2021

 

 

December 31, 2020

 

 

 

Number of

contracts

 

 

Recorded

Investment

 

 

Number of

contracts

 

 

Recorded

Investment

 

 

 

(Dollars in thousands)

 

Performing TDRs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

 

 

2

 

 

$

46

 

 

 

2

 

 

$

49

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

3

 

 

 

126

 

 

 

3

 

 

 

130

 

Construction, land and development

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans (including multifamily)

 

 

 

 

 

 

 

 

 

 

 

 

Consumer loans and leases

 

 

 

 

 

 

 

 

 

 

 

 

Municipal and other loans

 

 

1

 

 

 

52

 

 

 

1

 

 

 

52

 

Total performing TDRs

 

 

6

 

 

 

224

 

 

 

6

 

 

 

231

 

Nonperforming TDRs

 

 

7

 

 

 

435

 

 

 

14

 

 

 

652

 

Total TDRs

 

 

13

 

 

$

659

 

 

 

20

 

 

$

883

 

Allowance attributable to TDRs

 

 

 

 

 

$

419

 

 

 

 

 

 

$

421

 

Summary of Newly Designated TDRs and Modifications to Existing TDRs

The following table summarizes TDRs, and includes newly designated TDRs as well as modifications made to existing TDRs, for the periods presented. Modifications may include, but are not limited to, granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these. Post-modification balances represent the recorded investment at the end of Day 2 in which the modification was made.

The CARES Act includes a provision for the Company to opt out of applying the TDR accounting guidance in ASC 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) January 1, 2022 or (ii) 60 days after the President declares a termination of the COVID-19 national emergency are eligible for this relief if the related loans were not more than 30 days past due as of December 31, 2019. Loans with an unpaid principal balance of $11.6 million remained in active deferral periods at March 31, 2021.      

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

 

2020

 

 

 

Number of

Contracts

 

 

Pre-

Modification

Outstanding

Recorded

Investment

 

 

Post-

Modification

Outstanding

Recorded

Investment

 

 

Related

Allowance

 

 

Number

of

Contracts

 

 

Pre-

Modification

Outstanding

Recorded

Investment

 

 

Post-

Modification

Outstanding

Recorded

Investment

 

 

Related

Allowance

 

 

 

(Dollars in thousands)

 

Commercial and industrial loans

 

 

 

 

$

 

 

$

 

 

$

 

 

 

4

 

 

$

168

 

 

$

168

 

 

$

56

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-4 single family residential loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land and development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans (including

   multifamily)

 

 

2

 

 

 

321

 

 

 

321

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer loans and leases