Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 000-29480 |
Entity Registrant Name | HERITAGE FINANCIAL CORP |
Entity Central Index Key | 0001046025 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Incorporation, State or Country Code | WA |
Entity Tax Identification Number | 91-1857900 |
Entity Address, Address Line One | 201 Fifth Avenue SW, |
Entity Address, City or Town | Olympia |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98501 |
City Area Code | 360 |
Local Phone Number | 943-1500 |
Title of 12(b) Security | Common stock, no par value |
Trading Symbol | HFWA |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 35,888,494 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash on hand and in banks | $ 105,097 | $ 95,039 |
Interest earning deposits | 57,816 | 133,529 |
Cash and cash equivalents | 162,913 | 228,568 |
Investment securities available for sale, at fair value, net (amortized cost of $937,828 and $939,160 at March 31, 2020 and December 31, 2019) | 961,092 | 952,312 |
Loans held for sale | 3,808 | 5,533 |
Loans receivable | 3,852,376 | 3,767,879 |
Financing Receivable, Allowance for Credit Loss | 47,540 | |
Allowance for credit losses on loans | (36,171) | |
Loans receivable, net | 3,804,836 | 3,731,708 |
Other real estate owned | 841 | 841 |
Premises and equipment, net | 87,958 | 87,888 |
Federal Home Loan Bank stock, at cost | 6,661 | 6,377 |
Bank owned life insurance | 106,756 | 103,616 |
Accrued interest receivable | 14,940 | 14,446 |
Prepaid expenses and other assets | 180,846 | 164,129 |
Other intangible assets, net | 15,710 | 16,613 |
Goodwill | 240,939 | 240,939 |
Total assets | 5,587,300 | 5,552,970 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Deposits | 4,617,948 | 4,582,676 |
Junior subordinated debentures | 20,668 | 20,595 |
Securities sold under agreement to repurchase | 11,792 | 20,169 |
Accrued expenses and other liabilities | 138,454 | 120,219 |
Total liabilities | 4,788,862 | 4,743,659 |
Stockholders’ equity: | ||
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding at March 31, 2020 and December 31, 2019 | 0 | 0 |
Common stock, no par value, 50,000,000 shares authorized; 35,888,494 and 36,618,729 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 568,439 | 586,459 |
Retained earnings | 211,707 | 212,474 |
Accumulated other comprehensive income, net | 18,292 | 10,378 |
Total stockholders’ equity | 798,438 | 809,311 |
Total liabilities and stockholders’ equity | $ 5,587,300 | $ 5,552,970 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Other Real Estate, Covered | $ 0 | |
Preferred stock, no par value (in usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, no par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 35,888,494 | 36,618,729 |
Common stock, shares outstanding (in shares) | 35,888,494 | 36,618,729 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
INTEREST INCOME | ||
Interest and fees on loans | $ 46,277 | $ 46,699 |
Taxable interest on investment securities | 5,639 | 5,823 |
Nontaxable interest on investment securities | 756 | 950 |
Interest on other interest earning assets | 420 | 335 |
Total interest income | 53,092 | 53,807 |
INTEREST EXPENSE | ||
Deposits | 4,216 | 3,603 |
Junior subordinated debentures | 285 | 354 |
Interest Expense, Other | 34 | 62 |
Total interest expense | 4,535 | 4,019 |
Net interest income | 48,557 | 49,788 |
Financing Receivable, Credit Loss, Expense (Reversal) | 7,946 | |
Provision for credit losses | 9,964 | 920 |
Net interest income after provision for credit losses | 40,611 | 48,868 |
NONINTEREST INCOME | ||
Service charges and other fees | 4,376 | 4,485 |
Gain on sale of investment securities, net | 1,014 | 15 |
Gain on sale of loans, net | 547 | 252 |
Interest rate swap fees | 296 | 0 |
Other income | 3,247 | 2,677 |
Total noninterest income | 9,480 | 7,429 |
NONINTEREST EXPENSE | ||
Compensation and employee benefits | 22,506 | 21,914 |
Occupancy and equipment | 5,731 | 5,458 |
Data processing | 2,360 | 2,173 |
Marketing | 866 | 1,098 |
Professional services | 1,377 | 1,173 |
State/municipal business and use taxes | 757 | 798 |
Federal deposit insurance premium | 0 | 285 |
Other real estate owned, net | 25 | 86 |
Amortization of intangible assets | 903 | 1,025 |
Other expense | 2,735 | 2,515 |
Total noninterest expense | 37,260 | 36,525 |
Income before income taxes | 12,831 | 19,772 |
Income tax expense | 640 | 3,220 |
Net income | $ 12,191 | $ 16,552 |
Basic earnings per common share (in usd per share) | $ 0.34 | $ 0.45 |
Diluted earnings per common share (in usd per share) | 0.33 | $ 0.45 |
Dividends declared per common share (in usd per share) | $ 0.20 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,191 | $ 16,552 |
Other comprehensive income | 7,914 | 8,016 |
Comprehensive income | $ 20,105 | $ 24,568 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Change in fair value of securities available for sale, tax | $ 2,419 | $ 2,145 |
Reclassification adjustment of net gain from sale of investment securities included in income, tax | $ (221) | $ (3) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Retained earnings | Accumulated other comprehensive income (loss), net |
Beginning balance, shares at Dec. 31, 2018 | 36,874 | |||
Beginning balance at Dec. 31, 2018 | $ 760,723 | $ 591,806 | $ 176,372 | $ (7,455) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Restricted stock awards forfeited, shares | 49 | |||
Restricted stock units vested, net of forfeitures of restricted stock awards | 0 | |||
Exercise of stock options, shares | 2 | |||
Exercise of stock options | 22 | $ 22 | ||
Stock-based compensation expense | 741 | $ 741 | ||
Common stock repurchased, shares | (26) | |||
Common stock repurchased | (802) | $ (802) | ||
Net income | 16,552 | 16,552 | ||
Other comprehensive income (loss), net of tax | 8,016 | 8,016 | ||
Cash dividends declared on common stock | (6,662) | (6,662) | ||
Ending balance, shares at Mar. 31, 2019 | 36,899 | |||
Ending balance at Mar. 31, 2019 | 778,191 | $ 591,767 | 185,863 | 561 |
Beginning balance, shares at Dec. 31, 2018 | 36,874 | |||
Beginning balance at Dec. 31, 2018 | 760,723 | $ 591,806 | 176,372 | (7,455) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 16,552 | |||
Ending balance, shares at Dec. 31, 2019 | 36,619 | |||
Ending balance at Dec. 31, 2019 | 809,311 | $ 586,459 | 212,474 | 10,378 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options, shares | 5 | |||
Exercise of stock options | 71 | $ 71 | ||
Stock-based compensation expense | 969 | $ 969 | ||
Common stock repurchased, shares | (822) | |||
Common stock repurchased | (19,060) | $ (19,060) | ||
Net income | 12,191 | 12,191 | ||
Other comprehensive income (loss), net of tax | 7,914 | 7,914 | ||
Cash dividends declared on common stock | (7,343) | $ (7,343) | ||
Ending balance at Mar. 31, 2020 | $ 798,438 | 18,292 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Effects of implementation of accounting change related to operating leases | $ 0 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | Jan. 22, 2020 | Oct. 23, 2019 | Jul. 24, 2019 | Apr. 24, 2019 | Jan. 23, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Stockholders' Equity [Abstract] | |||||||
Cash dividends declared on common stock (in usd per share) | $ 0.20 | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.20 | $ 0.18 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 12,191 | $ 16,552 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment, amortization of securities available for sale, and amortization of discount of junior subordinated debentures | 2,095 | 2,234 |
Changes in net deferred loan costs, net of amortization | (239) | 276 |
Provision for Loan, Lease, and Other Losses | 7,946 | 920 |
Net change in accrued interest receivable, prepaid expenses and other assets, and accrued expenses and other liabilities | (7,581) | 1,345 |
Stock-based compensation expense | 969 | 741 |
Amortization of intangible assets | 903 | 1,025 |
Origination of mortgage loans held for sale | (16,026) | (8,607) |
Proceeds from sale of mortgage loans held for sale | 18,298 | 7,458 |
Earnings on bank owned life insurance | (885) | (487) |
Loss on sale of other real estate owned, net | 4 | 0 |
Gain on sale of loans, net | (547) | (252) |
Gain on sale of investment securities, net | (1,014) | (15) |
Gain (Loss) of Assets Held for Sale | 9 | 0 |
Impairment for right of use asset | 0 | 117 |
(Gain) loss on sale of premises and equipment, net | (9) | 5 |
Net cash provided by operating activities | 16,096 | 21,312 |
Bank Owned Life Insurance Death Benefit | 1,324 | 0 |
Cash flows from investing activities: | ||
Loans originated, net of principal payments | (86,596) | (42,357) |
Maturities, calls and payments of investment securities available for sale | 74,320 | 47,004 |
Purchase of investment securities available for sale | (90,517) | (57,606) |
Proceeds from sales of investment securities available for sale | 25,177 | 10,932 |
Purchase of premises and equipment | (1,423) | (1,030) |
Proceeds from sales of other real estate owned | 266 | 79 |
Proceeds from Sale of Assets Held for Sale | 394 | 0 |
Proceeds from Sale of Federal Home Loan Bank Stock | 760 | 2,276 |
Purchases of Federal Home Loan Bank stock | (1,044) | (3,577) |
Proceeds from sales of premises and equipment | 9 | 0 |
Purchase bank owned life insurance | 3,579 | 0 |
Capital contributions to low-income housing tax credit partnerships and new market tax credit partnerships, net | (1,434) | (80) |
Net cash used in investing activities | (82,343) | (44,359) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 35,272 | (38,687) |
Federal Home Loan Bank advances | (19,000) | 76,900 |
Repayment of Federal Home Loan Bank advances | (19,000) | (51,900) |
Common stock cash dividends paid | (7,314) | (6,662) |
Net decrease in securities sold under agreement to repurchase | (8,377) | (6,564) |
Proceeds from exercise of stock options | 71 | 22 |
Repurchase of common stock | (19,060) | (802) |
Net cash provided by (used in) financing activities | 592 | (27,693) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (65,655) | |
Cash and cash equivalents at end of period | 162,913 | 228,568 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 4,507 | 3,801 |
Cash paid for income taxes, net of refunds | 58 | 0 |
Supplemental non-cash disclosures of cash flow information: | ||
Transfers of loans receivable to other real estate owned | 270 | 0 |
Transfers of properties held for sale recorded in premises and equipment, net to prepaid expenses and other assets | 0 | 763 |
Assets acquired (liabilities assumed) in acquisitions: | ||
Purchase of investment securities available for sale not settled | 7,303 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 162,913 | $ 228,568 |
Description of Business, Basis
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies [Text Block] | (c) Significant Accounting Policies The significant accounting policies used in preparation of the Company's Condensed Consolidated Financial Statements are disclosed in the 2019 Annual Form 10-K. Other than the adoption of new accounting standard discussed below, there have not been any material changes in the Company's significant accounting policies from those contained in the 2019 Annual Form 10-K. Adoption of New Accounting Standard On January 1, 2020, the Company adopted FASB ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivable. It also applies to off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. In addition, the CECL Adoption made changes to the accounting for investment securities available for sale. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and unfunded commitments. The Company elected not to measure an ACL on accrued interest receivable on loans receivable or accrued interest receivable on investment securities available for sale as Company policy is to reverse interest income for uncollectible accrued interest receivable balances in a timely manner. Results for the reporting period beginning after January 1, 2020 are presented under ASU 2016-13, while prior period amounts were not restated and continue to be reported in accordance with previously applicable GAAP. The accounting policies for prior periods are included in the 2019 Form 10-K. The accounting policies for all financial instruments impacted by the CECL adoption are as follows: Investment Securities A debt security is placed on nonaccrual status at the time any principal or payments become more than 90 days delinquent. Interest accrued, but not received for a security placed on nonaccrual, is reversed against interest income during the period that the debt security is placed on nonaccrual status. Allowance for Credit Losses on Investment Securities Management evaluates the need for an ACL on investment securities on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For investment securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL on investment securities available for sale is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an ACL on investment securities for sale is recognized in other comprehensive income. Changes in the ACL on investment securities available for sale are recorded as provision (reversal of provision) for credit losses expense. Losses are charged against the allowance when management believes the uncollectability of an investment security available for sale is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on investment securities available for sale is excluded from the estimate of credit losses as interest accrued, but not received, is reversed timely in accordance with the policy for investment securities above. Loans Receivable Loans receivable include loans originated and indirect loans purchased by the Bank as well as loans acquired in business combinations. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the outstanding principal balance, net of purchased premiums and discounts, unearned discounts, and net deferred loan origination fees and costs. Accrued interest receivable for loans receivable is reported in prepaid expenses and other assets on the Condensed Consolidated Statements of Financial Condition. Purchased Loans: Loans acquired in a business combination are designated as “purchased” loans. Upon adoption of ASU 2016-13, the Bank's PCI loans were transitioned to PCD loans. The Bank elected to account for the PCD loans individually, terminating the pools of loans that were previously accounted for under ASC 310-30. Loans purchased after January 1, 2020 are recorded at their fair value at acquisition date net of an ACL on loans expected to be incurred over the life of the loan. The initial ACL on purchased loans is determined using the same methodology as originated loans. For non-PCD loans, the initial ACL is recorded to provision for credit losses expense. For PCD loans, the initial ACL is incorporated into the calculation of the fair value of net assets acquired on the merger date and the net of the PCD loan purchase price and the initial ACL becomes the initial amortized cost basis. The difference between the initial amortized cost basis and the par value of PCD loans is the noncredit discount or premium for PCD loans. The noncredit discount or premium for PCD loans and both the noncredit and credit discount or premium for non-PCD loans are accreted through the interest and fees on loans line item on the Condensed Consolidated Statements of Income over the life of the loan using the effective interest method for non-revolving credits or the straight-line method, which approximates the effective interest method, for revolving credits. Any unrecognized discount or premium for a purchased loan that is subsequently repaid in full is recognized immediately into income. Subsequent changes to the ACL on loans for purchased loans are recorded through provision for credit losses expense. Troubled Debt Restructures : The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined by the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the amortized cost of loans receivable to present the net amount expected to be collected. Loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. Subsequent recoveries, if any, are credited to the allowance. The Bank record the changes in the ACL through earnings, as a provision for credit losses on the Condensed Consolidated Statements of Income. Accrued interest receivable on loans receivable is excluded from the estimate of credit losses. Instead, interest accrued, but not received, is reversed timely in accordance with the policy for loans receivable above. Management has adopted a historic loss, open pool CECL methodology to calculate the ACL on loans. The same methodology is applied to all loans consistent with the guidance of the accounting standard which does not require undue complexity. Under this allowance approach, the Company has identified segments of loans with similar risk characteristics that align with its identified loan classes. Nonaccrual loans are not considered similar to other loans; therefore, they are evaluated for allowance on an individual basis. The allowance for individually evaluated loans is calculated using either the collateral value method, which considers the likely source of repayment as the value of the collateral, less estimated costs to sell, or the net present value method, which considers the contractual principal and interest terms and estimated cash flows available from the borrower to satisfy the debt. When the net present value method is used, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The ACL on a TDR loan is measured using the same method as all other loans, except that the original interest rate is used to discount the expected cash flows, not the rate specified in the restructuring. Nonperforming TDR loans, including defaulted TDR loans, are evaluated for allowance on an individual basis. A performing TDR loan is evaluated for allowance on a collective basis with loans with similar risk characteristics if a) it is classified as a risk rating of "Pass", b) it has paid a minimum of six months of principal and interest in accordance with the restructured terms and c) it has not been over 30 days delinquent in the most recent six month period. If all three criteria on a performing TDR loan are not met, the loan is evaluated for allowance on an individual basis as it is not deemed to have similar characteristics of other loans in the portfolio. For each loan segment collectively measured, the baseline loss rates are calculated using the bank's average quarterly historical loss information. The Bank evaluates the historical period on a quarterly basis, with the assumption that economic cycles have historically lasted between 10 and 15 years. The baseline loss rates are applied to each loan's estimated cash flows over the life of the loan under the remaining life method to determine the baseline loss estimate for each loan. Estimated cash flows consider the principal and interest in accordance with the contractual term of the loan and estimated prepayments. Contractual cash flows are based on the amortized cost, as adjusted for balances guaranteed by governmental entities, such as SBA or USDA, or the unguaranteed amortized cost. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: 1) management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or 2) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Prepayments are established for each segment based on rolling historical averages for the segments, which management believes is an accurate representation of future prepayment activity. Management reviews the adequacy of the prepayment period assumption on a quarterly basis. The CECL methodology includes consideration of the forecasted direction of the economic and business environment and its likely impact to the estimated allowance as compared to the historical losses over the reasonable and supportable time frame. Economic forecast models for the current period are uploaded to the model, which targets 16 forecasted macroeconomic factors, such as unemployment rate, GDP, housing price index, commercial real estate price index, disposable income growth, mortgage rates, and certain rate indices. Each of the forecasted segments is impacted by a mix of these macroeconomic factors. Further, each of the macroeconomic factors is utilized differently by segment, including the application of lagged factors and various transformations such as percent change year over year. The macroeconomic sensitive model is developed for each segment given the current and forecasted conditions, and a macroeconomic multiplier is calculated for each forecast period considering the forecasted losses as compared to the long-term average actual losses of the dataset. The impact of those macroeconomic factors to each segment, positive or negative, using the reasonable and supportable period, are added to the calculated baseline loss rate. After the reasonable and supportable period, the estimated credit losses are reverted back to historical baseline loss levels under a reversion period on a straight-lined, input reversion basis. The Bank also considers other qualitative risk factors to adjust the estimated ACL calculated by the above mentioned model. The Bank will have a bias for minimal factors unless internal or external factors outside those considered in its historical losses or macroeconomic forecast indicate otherwise. The Bank will establish metrics to estimate the qualitative risk factor by segment based on the identified risk. In general, management's estimate of the ACL on loans uses relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for loan losses evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. While management utilizes its best judgment and information available to recognize losses on loans, future additions to the allowance may be necessary based on further declines in local and national economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s ACL on loans. Such agencies may require the Bank to make adjustments to the allowance based on their judgments about information available to them at the time of their examinations. The Company believes the ACL on loans is appropriate given all of the above considerations. Allowance for Credit Losses on Unfunded Commitments The Bank estimates expected credit losses on unfunded, off-balance sheet commitments over the contractual period in which the Bank is exposed to credit risk from a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The Bank has determined that no allowance is necessary for its credit card portfolio as it has the ability to unconditionally cancel the available lines of credit. The allowance methodology is similar to the ACL on loans, but additionally includes an estimate of the future utilization of the commitment as determined by historical commitment utilizations and the Bank's estimates of future utilizations given current economic forecasts. The credit risks associated with the unfunded commitments are consistent with the risks outlined for each loan class. The allowance is recognized in accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition and is adjusted as a provision (reversal of provision) for credit losses on the Condensed Consolidated Statements of Income. |
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements | Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements (a) Description of Business Heritage Financial Corporation is a bank holding company that was incorporated in the State of Washington in August 1997. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, Heritage Bank. The Bank is a Washington-chartered commercial bank and its deposits are insured by the FDIC. The Bank is headquartered in Olympia, Washington and conducts business from its 62 branch offices as of March 31, 2020 located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans, consumer loans and originates first mortgage loans on residential properties primarily located in its market areas. (b) Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is recommended that these unaudited Condensed Consolidated Financial Statements and accompanying Notes be read with the audited Consolidated Financial Statements and the accompanying Notes included in the 2019 Annual Form 10-K. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . To prepare unaudited Condensed Consolidated Financial Statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. It is reasonably possible management's estimate of ACL on loans and the fair value of financial instruments could change from $47.5 million and the amounts disclosed in Note (13) Fair Value Measurements, respectively. The resulting change in these estimates would be material to the unaudited Condensed Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Namely, loan receivable balances in the disclosures of Note (3) Loans Receivable and Note (4) Allowance for Credit Losses on Loans have been reclassified to conform to the current period presentation, which is net of deferred fees and costs. Reclassifications had no effect on the prior years' net income or stockholders’ equity. (c) Significant Accounting Policies The significant accounting policies used in preparation of the Company's Condensed Consolidated Financial Statements are disclosed in the 2019 Annual Form 10-K. Other than the adoption of new accounting standard discussed below, there have not been any material changes in the Company's significant accounting policies from those contained in the 2019 Annual Form 10-K. Adoption of New Accounting Standard On January 1, 2020, the Company adopted FASB ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivable. It also applies to off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. In addition, the CECL Adoption made changes to the accounting for investment securities available for sale. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and unfunded commitments. The Company elected not to measure an ACL on accrued interest receivable on loans receivable or accrued interest receivable on investment securities available for sale as Company policy is to reverse interest income for uncollectible accrued interest receivable balances in a timely manner. Results for the reporting period beginning after January 1, 2020 are presented under ASU 2016-13, while prior period amounts were not restated and continue to be reported in accordance with previously applicable GAAP. The accounting policies for prior periods are included in the 2019 Form 10-K. The accounting policies for all financial instruments impacted by the CECL adoption are as follows: Investment Securities A debt security is placed on nonaccrual status at the time any principal or payments become more than 90 days delinquent. Interest accrued, but not received for a security placed on nonaccrual, is reversed against interest income during the period that the debt security is placed on nonaccrual status. Allowance for Credit Losses on Investment Securities Management evaluates the need for an ACL on investment securities on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For investment securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL on investment securities available for sale is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an ACL on investment securities for sale is recognized in other comprehensive income. Changes in the ACL on investment securities available for sale are recorded as provision (reversal of provision) for credit losses expense. Losses are charged against the allowance when management believes the uncollectability of an investment security available for sale is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on investment securities available for sale is excluded from the estimate of credit losses as interest accrued, but not received, is reversed timely in accordance with the policy for investment securities above. Loans Receivable Loans receivable include loans originated and indirect loans purchased by the Bank as well as loans acquired in business combinations. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the outstanding principal balance, net of purchased premiums and discounts, unearned discounts, and net deferred loan origination fees and costs. Accrued interest receivable for loans receivable is reported in prepaid expenses and other assets on the Condensed Consolidated Statements of Financial Condition. Purchased Loans: Loans acquired in a business combination are designated as “purchased” loans. Upon adoption of ASU 2016-13, the Bank's PCI loans were transitioned to PCD loans. The Bank elected to account for the PCD loans individually, terminating the pools of loans that were previously accounted for under ASC 310-30. Loans purchased after January 1, 2020 are recorded at their fair value at acquisition date net of an ACL on loans expected to be incurred over the life of the loan. The initial ACL on purchased loans is determined using the same methodology as originated loans. For non-PCD loans, the initial ACL is recorded to provision for credit losses expense. For PCD loans, the initial ACL is incorporated into the calculation of the fair value of net assets acquired on the merger date and the net of the PCD loan purchase price and the initial ACL becomes the initial amortized cost basis. The difference between the initial amortized cost basis and the par value of PCD loans is the noncredit discount or premium for PCD loans. The noncredit discount or premium for PCD loans and both the noncredit and credit discount or premium for non-PCD loans are accreted through the interest and fees on loans line item on the Condensed Consolidated Statements of Income over the life of the loan using the effective interest method for non-revolving credits or the straight-line method, which approximates the effective interest method, for revolving credits. Any unrecognized discount or premium for a purchased loan that is subsequently repaid in full is recognized immediately into income. Subsequent changes to the ACL on loans for purchased loans are recorded through provision for credit losses expense. Troubled Debt Restructures : The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined by the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the amortized cost of loans receivable to present the net amount expected to be collected. Loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. Subsequent recoveries, if any, are credited to the allowance. The Bank record the changes in the ACL through earnings, as a provision for credit losses on the Condensed Consolidated Statements of Income. Accrued interest receivable on loans receivable is excluded from the estimate of credit losses. Instead, interest accrued, but not received, is reversed timely in accordance with the policy for loans receivable above. Management has adopted a historic loss, open pool CECL methodology to calculate the ACL on loans. The same methodology is applied to all loans consistent with the guidance of the accounting standard which does not require undue complexity. Under this allowance approach, the Company has identified segments of loans with similar risk characteristics that align with its identified loan classes. Nonaccrual loans are not considered similar to other loans; therefore, they are evaluated for allowance on an individual basis. The allowance for individually evaluated loans is calculated using either the collateral value method, which considers the likely source of repayment as the value of the collateral, less estimated costs to sell, or the net present value method, which considers the contractual principal and interest terms and estimated cash flows available from the borrower to satisfy the debt. When the net present value method is used, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The ACL on a TDR loan is measured using the same method as all other loans, except that the original interest rate is used to discount the expected cash flows, not the rate specified in the restructuring. Nonperforming TDR loans, including defaulted TDR loans, are evaluated for allowance on an individual basis. A performing TDR loan is evaluated for allowance on a collective basis with loans with similar risk characteristics if a) it is classified as a risk rating of "Pass", b) it has paid a minimum of six months of principal and interest in accordance with the restructured terms and c) it has not been over 30 days delinquent in the most recent six month period. If all three criteria on a performing TDR loan are not met, the loan is evaluated for allowance on an individual basis as it is not deemed to have similar characteristics of other loans in the portfolio. For each loan segment collectively measured, the baseline loss rates are calculated using the bank's average quarterly historical loss information. The Bank evaluates the historical period on a quarterly basis, with the assumption that economic cycles have historically lasted between 10 and 15 years. The baseline loss rates are applied to each loan's estimated cash flows over the life of the loan under the remaining life method to determine the baseline loss estimate for each loan. Estimated cash flows consider the principal and interest in accordance with the contractual term of the loan and estimated prepayments. Contractual cash flows are based on the amortized cost, as adjusted for balances guaranteed by governmental entities, such as SBA or USDA, or the unguaranteed amortized cost. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: 1) management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or 2) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Prepayments are established for each segment based on rolling historical averages for the segments, which management believes is an accurate representation of future prepayment activity. Management reviews the adequacy of the prepayment period assumption on a quarterly basis. The CECL methodology includes consideration of the forecasted direction of the economic and business environment and its likely impact to the estimated allowance as compared to the historical losses over the reasonable and supportable time frame. Economic forecast models for the current period are uploaded to the model, which targets 16 forecasted macroeconomic factors, such as unemployment rate, GDP, housing price index, commercial real estate price index, disposable income growth, mortgage rates, and certain rate indices. Each of the forecasted segments is impacted by a mix of these macroeconomic factors. Further, each of the macroeconomic factors is utilized differently by segment, including the application of lagged factors and various transformations such as percent change year over year. The macroeconomic sensitive model is developed for each segment given the current and forecasted conditions, and a macroeconomic multiplier is calculated for each forecast period considering the forecasted losses as compared to the long-term average actual losses of the dataset. The impact of those macroeconomic factors to each segment, positive or negative, using the reasonable and supportable period, are added to the calculated baseline loss rate. After the reasonable and supportable period, the estimated credit losses are reverted back to historical baseline loss levels under a reversion period on a straight-lined, input reversion basis. The Bank also considers other qualitative risk factors to adjust the estimated ACL calculated by the above mentioned model. The Bank will have a bias for minimal factors unless internal or external factors outside those considered in its historical losses or macroeconomic forecast indicate otherwise. The Bank will establish metrics to estimate the qualitative risk factor by segment based on the identified risk. In general, management's estimate of the ACL on loans uses relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for loan losses evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. While management utilizes its best judgment and information available to recognize losses on loans, future additions to the allowance may be necessary based on further declines in local and national economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s ACL on loans. Such agencies may require the Bank to make adjustments to the allowance based on their judgments about information available to them at the time of their examinations. The Company believes the ACL on loans is appropriate given all of the above considerations. Allowance for Credit Losses on Unfunded Commitments The Bank estimates expected credit losses on unfunded, off-balance sheet commitments over the contractual period in which the Bank is exposed to credit risk from a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The Bank has determined that no allowance is necessary for its credit card portfolio as it has the ability to unconditionally cancel the available lines of credit. The allowance methodology is similar to the ACL on loans, but additionally includes an estimate of the future utilization of the commitment as determined by historical commitment utilizations and the Bank's estimates of future utilizations given current economic forecasts. The credit risks associated with the unfunded commitments are consistent with the risks outlined for each loan class. The allowance is recognized in accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition and is adjusted as a provision (reversal of provision) for credit losses on the Condensed Consolidated Statements of Income. Provision for Credit Losses The provision for credit losses as presented in the Company's Condensed Consolidated Statements of Income includes the provision for credit losses on loans and the provision for credit losses on unfunded commitments. (d) Recently Issued Accounting Pronouncements FASB ASU 2016-13 , Financial Instruments: Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, and 2020-02, was originally issued in June 2016. This ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years with early adoption permitted for fiscal years after December 15, 2018. The Company adopted the Update on January 1, 2020 as discussed in the Significant Accounting Policies section above. The adoption had the following impacts: Investment Securities As of December 31, 2019, the Company had no historical charge-off or recovery history and did not have any investment securities available for sale outstanding at the adoption date for which an other-than-temporary impairment was previously recorded. At the adoption date of ASU 2016-13, the unrealized losses present in the portfolio of investment securities available for sale were primarily due to decreases in market interest rates on floating rate investment securities since the purchase of the securities and the fair value of these securities was expected to recover as the securities approach their maturity dates. The basis of management’s conclusion was that at December 31, 2019, 83.5% of the investment securities were issued by or guaranteed by the United States government or its agencies, 14.0% were issued and guaranteed by State and local governments and the remainder of the portfolio was invested in at least investment-grade securities. As a result of the analysis, no allowance for credit losses on investment securities available for sale was recorded upon adoption. See Note (2) Investment Securities for more information. Loan Receivable ASU 2016-13 was applied prospectively and replaced the allowance for loan losses with the ACL on loans on the Condensed Consolidated Statements of Financial Condition and replaced the related provision for loan losses with the provision for credit losses on loans as presented on the Condensed Consolidated Statements of Income, net of provision for credit losses on unfunded commitments. The adoption was completed in a specific order beginning with the transition of PCI loans to PCD loans. The Bank elected to account for the PCD loans individually, terminating the pools of loans that were previously accounted for under ASC 310-30. First, an ACL was determined for each PCI loan. The ACL on PCI loans was added to the loans' carrying amount to establish a PCD loan at its amortized cost basis. The difference between the unpaid principal balance and the amortized cost basis of the PCD loan is a noncredit premium or discount, which will be amortized into interest income over the remaining life of the PCD loan. The PCI to PCD transition did not have an impact on beginning retained earnings; however, it did have the effect of reducing the existing allowance for PCI loans by $1.6 million under the CECL methodology as compared to ASC 310-30 methodology. Following the PCI to PCD transition, the Bank recorded a pretax increase to the ACL on loans of $3.4 million to increase the reserve to the estimated credit losses at January 1, 2020 based on its CECL methodology as part of the cumulative-effect adjustment to beginning retained earnings. The pretax increase to the ACL on loans of $3.4 million and the reduction in ACL on loans due to the PCI to PCD transition of $1.6 million resulted in a $1.8 million increase in the ACL on loans at January 1, 2020. Upon adoption, the adjusted beginning balance of the ACL on loans as a percentage of loans receivable was 1.01% as compared to 0.96% at December 31, 2019 under the prior incurred loss methodology. At March 31, 2020, the ACL on loans as a percentage of loans receivable was 1.23% . The PCI to PCD transition also resulted in a net discount of $4.3 million for PCD loans, or an increase in the net discount for PCD loans of $1.6 million . Following the transition, the total net discount for purchased loans increased to $10.0 million at January 1, 2020 compared to $8.4 million as of December 31, 2019. The total net discount for purchased loans was $9.0 million at March 31, 2020. The Company accretes the net discount or premium on purchased loans to interest and fees on loans using the effective interest method. See Note (3) Loans Receivable and Note (4) Allowance for Credit Losses on Loans for more information. Unfunded Commitments ASU 2016-13 was applied prospectively and replaced the reserve for unfunded commitments with the ACL on unfunded commitments as included in accrued liabilities and other expenses on the Condensed Consolidated Statements of Financial Condition and replaced the provision for unfunded commitments with the provision for credit losses on unfunded commitments as presented on the Condensed Consolidated Statements of Income, net of provision for credit losses on loans. Upon adoption, the Bank recorded a pretax increase in the beginning ACL on unfunded commitments of $3.7 million . See Note (15) Commitments and Contingencies for more information. Overall CECL Impact The adoption of ASU 2016-13, including the above mentioned increase to the ACL on loans of $3.4 million and the increase to the ACL on unfunded commitments of $3.7 million , resulted in a pretax cumulative-effect adjustment of $7.1 million . The impact of this adjustment to beginning retained earnings on January 1, 2020 was $5.6 million , net of tax. FASB ASU 2017-04 , Goodwill (Topic 350) , was issued in January 2017 and eliminates Step 2 from the goodwill impairment test. The ASU is effective for annual periods or any interim goodwill impairment tests beginning after December 15, 2019 using a prospective transition method and early adoption is permitted. The Company adopted the guidance on January 1, 2020. The adoption did not have a material impact on its Condensed Consolidated Financial Statements as of or for the three month ended March 31, 2020 as the Company's qualitative assessment indicated no goodwill impairment. FASB ASU 2018-13 , Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, was issued in August 2018 and modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the guidance on January 1, 2020. The adoption did not have a material impact to Note (13) Fair Value Measurements in its Condensed Consolidated Financial Statements. FASB ASU 2020-03 , Codification Improvements to Financial Instruments was issued in March 2020 and revised a wide variety of topics in the Codification with the intent to make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. The Update was effective immediately upon its release and did not have a material impact on the Company's Condensed Consolidated Financial Statements. FASB ASU 2020-04 , Reference Rate Reform (Topic 848) was issued in March 2020 and provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. The Update also provides numerous optional expedients for derivative accounting. The Update is effective March 12, 2020 through December 31, 2022. An entity may elect to apply the Update for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company anticipates this Update will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. The Company is evaluating the impacts of this Update and have not yet determined whether LIBOR transition and this Update will have material effects on our business operations and Condensed Consolidated Financial Statements. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities (a) Securities by Type and Maturity The following tables present the amortized cost and fair value of investment securities available for sale at the dates indicated and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss): March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 85,868 $ 1,314 $ (120 ) $ 87,062 Municipal securities 174,614 5,409 (415 ) 179,608 Mortgage-backed securities and collateralized mortgage obligations: Residential 313,710 9,204 (230 ) 322,684 Commercial 316,683 10,348 (1,275 ) 325,756 Corporate obligations 23,897 195 (260 ) 23,832 Other asset-backed securities (1) 23,056 — (906 ) 22,150 Total $ 937,828 $ 26,470 $ (3,206 ) $ 961,092 (1) Issued and guaranteed by U.S. Government-sponsored agencies. December 31, 2019 Amortized Gross Gross Fair (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 104,709 $ 598 $ (84 ) $ 105,223 Municipal securities 128,183 4,933 (102 ) 133,014 Mortgage-backed securities and collateralized mortgage obligations: Residential 336,929 3,184 (505 ) 339,608 Commercial 322,169 5,575 (649 ) 327,095 Corporate obligations 23,893 316 (15 ) 24,194 Other asset-backed securities (1) 23,277 54 (153 ) 23,178 Total $ 939,160 $ 14,660 $ (1,508 ) $ 952,312 (1) Issued and guaranteed by U.S. Government-sponsored agencies. There were no securities classified as trading or held to maturity at March 31, 2020 or December 31, 2019 . For the three months ended March 31, 2020 , there was no provision for credit loss on investment securities available for sale recorded to net income. There was no ACL on investment securities at March 31, 2020 . The amortized cost and fair value of investment securities available for sale at March 31, 2020 , by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (In thousands) Due in one year or less $ 33,547 $ 33,806 Due after one year through five years 162,455 166,232 Due after five years through ten years 255,123 263,149 Due after ten years 486,703 497,905 Total $ 937,828 $ 961,092 There were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity at March 31, 2020 and December 31, 2019 . (b) Unrealized Losses and Other-Than-Temporary Impairments The following tables show the gross unrealized losses and fair value of the Company's investment securities available for sale, for which an ACL has not been recorded, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of March 31, 2020 and December 31, 2019 : March 31, 2020 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 5,880 $ (120 ) $ — $ — $ 5,880 $ (120 ) Municipal securities 27,434 (415 ) — — 27,434 (415 ) Mortgage-backed securities and collateralized mortgage obligations: Residential 2,045 (6 ) 27,992 (224 ) 30,037 (230 ) Commercial 32,562 (683 ) 25,485 (592 ) 58,047 (1,275 ) Corporate obligations 7,788 (240 ) 1,980 (20 ) 9,768 (260 ) Other asset-backed securities (1) 20,644 (848 ) 1,506 (58 ) 22,150 (906 ) Total $ 96,353 $ (2,312 ) $ 56,963 $ (894 ) $ 153,316 $ (3,206 ) (1) Issued and guaranteed by U.S. Government-sponsored agencies. December 31, 2019 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 45,999 $ (84 ) $ — $ — $ 45,999 $ (84 ) Municipal securities 13,761 (102 ) — — 13,761 (102 ) Mortgage-backed securities and collateralized mortgage obligations: Residential 14,272 (66 ) 60,232 (439 ) 74,504 (505 ) Commercial 56,263 (177 ) 43,623 (472 ) 99,886 (649 ) Corporate obligations 998 (2 ) 1,987 (13 ) 2,985 (15 ) Other asset-backed securities (1) 14,383 (127 ) 1,609 (26 ) 15,992 (153 ) Total $ 145,676 $ (558 ) $ 107,451 $ (950 ) $ 253,127 $ (1,508 ) (1) Issued and guaranteed by U.S. Government-sponsored agencies. The Company has evaluated these investment securities available for sale as of March 31, 2020 and December 31, 2019 and determined that no ACL is necessary. Unrealized losses on investment securities have not been recognized into income because the issuers of bonds are investment grade (rated A- or higher), the securities carry governmental guarantees, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the bonds and the fair value is expected to recover as the bonds approach maturity. (c) Realized Gains and Losses The following table presents the gross realized gains and losses on the sale of securities available for sale for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) Gross realized gains $ 1,028 $ 89 Gross realized losses (14 ) (74 ) Net realized gains $ 1,014 $ 15 (d) Pledged Securities The following table summarizes the amortized cost and fair value of investment securities available for sale that are pledged as collateral for the following obligations at March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state public deposits $ 179,570 $ 184,231 $ 187,700 $ 190,773 Securities sold under agreement to repurchase 26,420 26,473 22,156 22,294 Other securities pledged 21,164 22,214 19,333 19,850 Total $ 227,154 $ 232,918 $ 229,189 $ 232,917 (e) Accrued Interest Receivable Accrued interest receivable excluded from amortized cost on investment securities available for sale totaled $3.9 million and $3.7 million at March 31, 2020 and December 31, 2019 , respectively. No amounts of accrued interest receivable were reversed against interest income on investment securities during the three months ended March 31, 2020 or 2019. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivables [Text Block] | Loans Receivable (a) Loan Origination/Risk Management The Company originates loans in the ordinary course of business and has also acquired loans through mergers and acquisitions. Accrued interest receivable was excluded from disclosures presenting the Company's amortized cost of loans receivable as it was deemed insignificant. Accrued interest receivable on loans totaled $11.1 million and $10.7 million at March 31, 2020 and December 31, 2019 , respectively. The Company categorizes loans in one of the four segments of the total loan portfolio: commercial business, one-to-four family residential, real estate construction and land development and consumer. Within these segments are classes of loans for which management monitors and assesses credit risk in the loan portfolios. A detailed description of the portfolio segments and classes is contained in the 2019 Annual Form 10-K. The Company adopted ASU 2016-13 effective January 1, 2020, which increased the beginning ACL on loans as discussed in Note (4) Allowance for Credit Losses on Loans. The amortized cost of loans receivable, net of ACL at March 31, 2020 and December 31, 2019 consisted of the following portfolio segments and classes: March 31, 2020 December 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 889,685 $ 852,220 Owner-occupied commercial real estate 805,636 805,234 Non-owner occupied commercial real estate 1,312,308 1,288,779 Total commercial business 3,007,629 2,946,233 One-to-four family residential 136,782 131,660 Real estate construction and land development: One-to-four family residential 98,730 104,296 Five or more family residential and commercial properties 188,304 170,350 Total real estate construction and land development 287,034 274,646 Consumer 420,931 415,340 Loans receivable 3,852,376 3,767,879 Allowance for credit losses on loans (47,540 ) (36,171 ) Loans receivable, net $ 3,804,836 $ 3,731,708 (b) Concentrations of Credit As of March 31, 2020 , and December 31, 2019 , there were no concentrations of loans related to any single industry in excess of 10% of the Company’s total loans. (c) Credit Quality Indicators As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade of the loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions of the United States of America and specifically the states of Washington and Oregon. The Company utilizes a risk grading matrix to assign a risk grade to each loan on a numerical scale of 1 to 10. Risk grades are aggregated to create the risk categories of "Pass" for grades 1 to 6, "Special Mention" ("SM") for grade 7, "Substandard" ("SS") for grade 8, "Doubtful" for grade 9 and "Loss" for grade 10. Descriptions of the general characteristics of the risk grades, including qualitative information on how the risk grades relate to the risk of loss, are contained in the 2019 Annual Form 10-K. Numerical loan grades for loans are established at the origination of the loan. Changes to loan grades are considered at the time new information about the performance of a loan becomes available, including the receipt of updated financial information from the borrower, and scheduled loan reviews performed by the Bank’s internal Loan Review department. For consumer loans, the Bank follows the FDIC’s Uniform Retail Credit Classification and Account Management Policy for subsequent classification in the event of payment delinquencies or default. Typically, an individual loan grade will not be changed from the prior period unless there is a specific indication of credit deterioration or improvement. Credit deterioration is evidenced by delinquency, direct communications with the borrower, or other borrower information that becomes known to management. Credit improvements are evidenced by known facts regarding the borrower or the collateral property. The following table presents the amortized cost of loans receivable by risk grade as of March 31, 2020 : Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Loans Receivable (In thousands) As of March 31, 2020 Commercial business: Commercial and industrial Pass $ 24,236 $ 159,463 $ 91,045 $ 68,613 $ 52,123 $ 132,283 $ 271,477 $ 710 $ 799,950 SM 2,291 3,479 3,495 436 1,787 1,805 22,187 42 35,522 SS 106 9,482 4,758 8,578 2,427 13,712 14,807 343 54,213 Total 26,633 172,424 99,298 77,627 56,337 147,800 308,471 1,095 889,685 Owner-occupied properties Pass 21,643 144,743 100,332 98,228 85,554 314,552 — 1,056 766,108 SM 107 — — 2,073 1,897 13,268 — — 17,345 SS — — 117 4,731 2,010 15,325 — — 22,183 Total 21,750 144,743 100,449 105,032 89,461 343,145 — 1,056 805,636 Non-owner-occupied properties Pass 33,205 157,063 154,514 203,143 282,734 466,239 — — 1,296,898 SM — — — — 6,216 2,846 — — 9,062 SS — — 67 — — 6,281 — — 6,348 Total 33,205 157,063 154,581 203,143 288,950 475,366 — — 1,312,308 Total commercial business Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Loans Receivable (In thousands) Pass 79,084 461,269 345,891 369,984 420,411 913,074 271,477 1,766 2,862,956 SM 2,398 3,479 3,495 2,509 9,900 17,919 22,187 42 61,929 SS 106 9,482 4,942 13,309 4,437 35,318 14,807 343 82,744 Total 81,588 474,230 354,328 385,802 434,748 966,311 308,471 2,151 3,007,629 One-to-four family residential Pass 9,097 47,795 22,506 17,566 11,664 27,371 — — 135,999 SS — — — 63 124 596 — — 783 Total 9,097 47,795 22,506 17,629 11,788 27,967 — — 136,782 Real estate construction and land development : One-to-four family residential Pass 8,102 73,501 10,405 2,433 971 1,802 — — 97,214 SS — — — 1,516 — — — — 1,516 Total 8,102 73,501 10,405 3,949 971 1,802 — — 98,730 Five or more family residential and commercial properties Pass 13,994 97,928 65,440 6,978 880 2,592 — — 187,812 SM — — — — — 39 — — 39 SS — — — — — 453 — — 453 Total 13,994 97,928 65,440 6,978 880 3,084 — — 188,304 Total real estate and land development Pass 22,096 171,429 75,845 9,411 1,851 4,394 — — 285,026 SM — — — — — 39 — — 39 SS — — — 1,516 — 453 — — 1,969 Total 22,096 171,429 75,845 10,927 1,851 4,886 — — 287,034 Consumer Pass 27,777 102,909 74,043 45,472 22,957 27,370 116,302 87 416,917 SM — — — — — — — — — SS — 87 492 489 554 1,624 766 2 4,014 Total 27,777 102,996 74,535 45,961 23,511 28,994 117,068 89 420,931 Loans receivable Pass 138,054 783,402 518,285 442,433 456,883 972,209 387,779 1,853 3,700,898 SM 2,398 3,479 3,495 2,509 9,900 17,958 22,187 42 61,968 SS 106 9,569 5,434 15,377 5,115 37,991 15,573 345 89,510 Total $ 140,558 $ 796,450 $ 527,214 $ 460,319 $ 471,898 $ 1,028,158 $ 425,539 $ 2,240 $ 3,852,376 (1) Represents loans receivable balance at March 31, 2020 which was converted from a revolving loan to an amortizing loan during the three months ended March 31, 2020. The following table presents the amortized cost of loans receivable by credit quality indicator as of December 31, 2019 in accordance with pre-CECL disclosure requirements: December 31, 2019 Pass Special Mention Substandard Doubtful/Loss Total (In thousands) Commercial business: Commercial and industrial $ 771,559 $ 16,340 $ 64,321 $ — $ 852,220 Owner-occupied commercial real estate 765,411 24,659 15,164 — 805,234 Non-owner occupied commercial real estate 1,274,513 5,662 8,604 — 1,288,779 Total commercial business 2,811,483 46,661 88,089 — 2,946,233 One-to-four family residential 130,818 — 842 — 131,660 Real estate construction and land development: One-to-four family residential 101,973 1,516 807 — 104,296 Five or more family residential and commercial properties 169,668 682 — — 170,350 Total real estate construction and land development 271,641 2,198 807 — 274,646 Consumer 411,141 — 3,675 524 415,340 Gross loans receivable $ 3,625,083 $ 48,859 $ 93,413 $ 524 $ 3,767,879 Potential problem loans are loans classified as Special Mention or worse that are not classified as a TDR or nonaccrual loan and are not individually evaluated for credit loss, but which management is closely monitoring because the financial information of the borrower causes concern as to their ability to meet their loan repayment terms. Potential problem loans as of March 31, 2020 and December 31, 2019 were $102.2 million and $87.8 million , respectively. (d) Nonaccrual Loans The following table presents the amortized cost of nonaccrual loans for the dates indicated: March 31, 2020 December 31, 2019 Nonaccrual with No ACL Nonaccrual with ACL Total Nonaccrual (1) Nonaccrual (2) (In thousands) Commercial business: Commercial and industrial $ 24,068 $ 2,019 $ 26,087 $ 33,544 Owner-occupied commercial real estate 3,103 888 3,991 4,714 Non-owner occupied commercial real estate 3,830 — 3,830 6,062 Total commercial business 31,001 2,907 33,908 44,320 One-to-four family residential 19 144 163 19 Consumer — 92 92 186 Total $ 31,020 $ 3,143 $ 34,163 $ 44,525 (1) At March 31, 2020, nonaccrual loans includes $2.5 million of PCD loans, of which $565,000 were classified as nonaccrual congruent with CECL adoption. Prior to the adoption of CECL, nonaccrual loans excluded pooled PCI loans as the Company recognized interest income on each pool of PCI loans as each of the pools was performing. (2) Presentation of December 31, 2019 balances is in accordance with pre-CECL disclosure requirements. The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full of previously classified nonaccrual loans during the following period: For the Three Months Ended March 31, 2020 Interest Income Reversed Interest Income Recognized (In thousands) Commercial business: Commercial and industrial $ (16 ) $ 219 Owner-occupied commercial real estate — 46 Non-owner occupied commercial real estate — 45 Total commercial business (16 ) 310 Consumer — 10 Total $ (16 ) $ 320 For the three months ended March 31, 2020 and 2019, no interest income was recognized subsequent to a loan’s classification as nonaccrual, except as indicated in the table above. (e) Past due loans The Company performs an aging analysis of past due loans using policies consistent with regulatory reporting requirements with categories of 30-89 days past due and 90 or more days past due. The amortized cost of past due loans as of March 31, 2020 were as follows: March 31, 2020 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,632 $ 6,589 $ 9,221 $ 880,464 $ 889,685 Owner-occupied commercial real estate 353 490 843 804,793 805,636 Non-owner occupied commercial real estate 1,620 — 1,620 1,310,688 1,312,308 Total commercial business 4,605 7,079 11,684 2,995,945 3,007,629 One-to-four family residential 447 19 466 136,316 136,782 Real estate construction and land development: One-to-four family residential — — — 98,730 98,730 Five or more family residential and commercial properties — — — 188,304 188,304 Total real estate construction and land development — — — 287,034 287,034 Consumer 1,963 — 1,963 418,968 420,931 Total $ 7,015 $ 7,098 $ 14,113 $ 3,838,263 $ 3,852,376 The following table presents the amortized cost of past due loans as of December 31, 2019 in accordance with pre-CECL disclosure requirements: December 31, 2019 30-89 Days 90 Days or Greater Total Past Due Current Total PCI Loans Loan Receivable (In thousands) Commercial business: Commercial and industrial $ 10,479 $ 6,772 $ 17,251 $ 832,601 $ 849,852 $ 2,368 $ 852,220 Owner-occupied commercial real estate 607 806 1,413 798,907 800,320 4,914 805,234 Non-owner occupied commercial real estate 554 1,843 2,397 1,280,891 1,283,288 5,491 1,288,779 Total commercial business 11,640 9,421 21,061 2,912,399 2,933,460 12,773 2,946,233 One-to-four family residential 797 — 797 127,288 128,085 3,575 131,660 Real estate construction and land development: One-to-four family residential 1,516 — 1,516 102,780 104,296 — 104,296 Five or more family residential and commercial properties — — — 170,350 170,350 — 170,350 Total real estate construction and land development 1,516 — 1,516 273,130 274,646 — 274,646 Consumer 2,071 — 2,071 411,507 413,578 1,762 415,340 Total $ 16,024 $ 9,421 $ 25,445 $ 3,724,324 $ 3,749,769 $ 18,110 $ 3,767,879 There were no loans 90 days or more past due that were still accruing interest as of March 31, 2020 or December 31, 2019 . (f) Collateral-dependent Loans The types of collateral securing loans individually evaluated for ACL on loans, and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of March 31, 2020 , were as follows: Loans receivable (1) at March 31, 2020 Commercial Real Estate Farmland Single Family Residence Equipment or Accounts Receivable Other Total (In thousands) Commercial business: Commercial and industrial $ 2,063 $ 19,350 $ 1,445 $ 2,232 $ 311 $ 25,401 Owner-occupied commercial real estate 3,106 — — — — 3,106 Non-owner occupied commercial real estate 5,794 — — — — 5,794 Total commercial business 10,963 19,350 1,445 2,232 311 34,301 One-to-four family residential — — 19 — — 19 Real estate construction and land development: One-to-four family residential — — 1,516 — — 1,516 Total $ 10,963 $ 19,350 $ 2,980 $ 2,232 $ 311 $ 35,836 (1) Balances represent the amortized cost of loans receivable at date indicated. If multiple collateral secured the loan, the entire loan receivable balance is presented in the primary collateral category, which generally represents the majority of the collateral balance. Under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans, comparative disclosures of collateral-dependent loans as of December 31, 2019 and for the three months ended March 31, 2019 are similar to the disclosures for impaired loans. Impaired loans include nonaccrual loans, performing TDR loans, and other loans with a specific valuation allowance, excluding PCI loans. The amortized cost of impaired loans as of December 31, 2019 are set forth in the following table: December 31, 2019 Amortized Cost With No Specific Valuation Allowance Amortized Cost With Specific Valuation Allowance Total Amortized Cost Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 30,179 $ 13,629 $ 43,808 $ 45,585 $ 1,372 Owner-occupied commercial real estate 3,921 2,415 6,336 6,764 426 Non-owner occupied commercial real estate 5,309 1,015 6,324 6,458 146 Total commercial business 39,409 17,059 56,468 58,807 1,944 One-to-four family residential — 215 215 223 56 Real estate construction and land development: One-to-four family residential 237 — 237 237 — Consumer — 561 561 570 143 Total $ 39,646 $ 17,835 $ 57,481 $ 59,837 $ 2,143 The average amortized cost of impaired loans for the three months ended March 31, 2019 are set forth in the following table: Three Months Ended March 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 22,639 Owner-occupied commercial real estate 5,935 Non-owner occupied commercial real estate 6,619 Total commercial business 35,193 One-to-four family residential 277 Real estate construction and land development: One-to-four family residential 911 Consumer 562 Total $ 36,943 (g) Troubled Debt Restructured Loans The amortized cost and related ACL on loans of performing and nonaccrual TDR loans as of March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Performing TDR loans Nonaccrual TDR loans Performing TDR loans Nonaccrual TDR loans (In thousands) TDR loans $ 19,309 $ 19,980 $ 14,469 $ 26,338 ACL on TDR loans 1,519 223 1,259 218 The unfunded commitment to borrowers related to TDR loans was $3.0 million and $736,000 at March 31, 2020 and December 31, 2019 , respectively. Loans that were modified as TDR loans during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Amortized Cost (1) Number of Amortized Cost (1) (Dollars in thousands) Commercial business: Commercial and industrial 14 $ 4,950 9 $ 10,100 Owner-occupied commercial real estate 4 2,183 2 934 Non-owner occupied commercial real estate 3 2,210 1 2,112 Total commercial business 21 9,343 12 13,146 Real estate construction and land development: One-to-four family residential 4 1,516 2 665 Consumer 5 93 6 122 Total 30 $ 10,952 20 $ 13,933 (1) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification). The tables above includes 11 loans for both the three months ended March 31, 2020 and 2019 that were previously reported as TDR loans. The Bank typically grants shorter extension periods to continually monitor these TDR loans despite the fact that the extended date might not be the date the Bank expects sufficient cash flow from these borrowers. The Bank does not consider these modifications a subsequent default of a TDR as new loan terms, specifically new maturity dates, were granted. Of the remaining first-reported TDR loans, the concessions granted largely consisted of maturity extensions, interest rate modifications or a combination of both. The potential losses related to TDR loans are considered in the period the loan was first reported as a TDR loan and are adjusted, as necessary, in the current period based on more recent information. The related ACL at March 31, 2020 for loans that were modified as TDR loans during the three months ended March 31, 2020 was $768,000 . Loans that were modified during the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Contracts Amortized Cost Number of Amortized Cost (Dollars in thousands) Commercial business: Commercial and industrial 2 $ 1,873 1 $ 829 Owner-occupied properties — — 1 717 Non-owner occupied commercial real estate 3 590 1 601 Total 5 $ 2,463 3 $ 2,147 During the three months ended March 31, 2020 and 2019 , all of these loans defaulted because each was past its modified maturity date and the borrower has not subsequently repaid the credits. The Bank has chosen not to extend further the maturity date on these loans. The Bank had ACL of $334,000 at March 31, 2020 related to these TDR loans which defaulted during the three months ended March 31, 2020. For the three months ended March 31, 2020 and 2019 , the Bank recorded $608,000 and $301,000 , respectively, of interest income related to performing TDR loans. (h) Purchased Credit Impaired Loans Upon adoption of CECL, the Company transitioned PCI loans to PCD loans. The following table reflects the outstanding principal balance and recorded investment of PCI loans at December 31, 2019 : December 31, 2019 Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 4,439 $ 2,368 Owner-occupied commercial real estate 4,925 4,914 Non-owner occupied commercial real estate 7,028 5,491 Total commercial business 16,392 12,773 One-to-four family residential 3,095 3,575 Consumer 1,463 1,762 Gross PCI loans $ 20,950 $ 18,110 On the acquisition dates, the amount by which the undiscounted expected cash flows of the PCI loans exceeded the estimated fair value of the loan is the “accretable yield.” The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the PCI loans. The following table summarizes the accretable yield on the PCI loans for the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (In thousands) Balance at the beginning of the period $ 9,493 Accretion (581 ) Disposal and other (452 ) Balance at the end of the period $ 8,460 |
Loans Receivable | oans that were modified as TDR loans during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Amortized Cost (1) Number of Amortized Cost (1) (Dollars in thousands) Commercial business: Commercial and industrial 14 $ 4,950 9 $ 10,100 Owner-occupied commercial real estate 4 2,183 2 934 Non-owner occupied commercial real estate 3 2,210 1 2,112 Total commercial business 21 9,343 12 13,146 Real estate construction and land development: One-to-four family residential 4 1,516 2 665 Consumer 5 93 6 122 Total 30 $ 10,952 20 $ 13,933 (1) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification). |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Credit Losses on Loans Effective January 1, 2020, the Bank adopted ASU 2016-13. The adoption replaced the allowance for loan losses with the ACL on loans and replaced the related provision for loan losses with the provision for credit losses on loans. For the ACL on loans at January 1, 2020 and March 31, 2020, the baseline loss rates were calculated using the bank's average quarterly historical loss information from December 31, 2007 through the respective balance sheet date. The Bank has chosen to anchor the 2008-2009 periods to allow for a complete economic cycle to have occurred in its historical loss period. The Bank evaluates the historical period and the need to release the anchor periods on a quarterly basis, with the assumption that economic cycles have historically lasted between 10 and 15 years. The Bank believes the historic loss rates are viable inputs to the current expected credit loss methodology as the Bank's lending practice and business has remained relatively stable throughout the periods. While the Bank's assets have grown, the credit culture has stayed consistent. Prepayments included in the methodology were based on the 48-month rolling historical averages for each segment, which management believes is an accurate representation of future prepayment activity. Management's allowance estimates at January 1, 2020 and March 31, 2020 used a four quarter reasonable and supportable period, as forecasts beyond this time period tend to diverge in economic assumptions and may be less comparable to actual future events. As the length of the reasonable and supportable period increases, the degree of judgment involved in estimating the allowance will likely increase. The Bank used a two quarter reversion period in calculating its allowance as of January 1, 2020 and March 31, 2020 as it believes the historical loss information is relevant to the expected credit losses and recognizes the declining precision and increasing uncertainty of estimating credit losses in those periods beyond which it can make reasonable and supportable forecasts. Risk characteristics by segment considered in the CECL methodology are the same as those disclosed in the 2019 Annual Form 10-K. The following table details the activity in the ACL on loans disaggregated by segment and class for the three months ended March 31, 2020 : Three Months Ended March 31, 2020 Beginning Balance Impact of CECL Adoption Beginning Balance, as Adjusted Charge-offs Recoveries Provision for Credit Losses Ending Balance (In thousands) Commercial business: Commercial and industrial $ 11,739 $ (1,348 ) $ 10,391 $ (1,087 ) $ 1,057 $ 3,539 $ 13,900 Owner-occupied commercial real estate 4,512 452 4,964 (135 ) 12 1,375 6,216 Non-owner occupied commercial real estate 7,682 (2,039 ) 5,643 — — 2,107 7,750 Total commercial business 23,933 (2,935 ) 20,998 (1,222 ) 1,069 7,021 27,866 One-to-four family residential 1,458 1,471 2,929 — 3 94 3,026 Real estate construction and land development: One-to-four family residential 1,455 (571 ) 884 — 14 (34 ) 864 Five or more family residential and commercial properties 1,605 7,240 8,845 — — 2,599 11,444 Total real estate construction and land development 3,060 6,669 9,729 — 14 2,565 12,308 Consumer 6,821 (2,484 ) 4,337 (375 ) 94 284 4,340 Unallocated 899 (899 ) — — — — — Total $ 36,171 $ 1,822 $ 37,993 $ (1,597 ) $ 1,180 $ 9,964 $ 47,540 The Bank recognized net charge-offs of $417,000 during the quarter ended March 31, 2020 . Net charge-offs include the charge-off of one commercial and industrial relationship of $373,000 and a large volume of small-dollar amount consumer loans, offset by the full recovery of an agricultural lending relationship charge-off of $963,000 which was recorded during the three months ended December 31, 2019. During the three months ended March 31, 2020, the Bank recorded a provision for credit losses on loans of $10.0 million , an increase of 26.2% from the adjusted beginning balance. Of the provision for credit loses on loans, approximately $6.9 million was due to the Company's economic forecast under the CECL methodology, which included a decline in economic conditions due to the COVID-19 pandemic. The economic model utilized as of March 31, 2020 is forecasting profound, but not permanent, reductions in activity, with widespread cuts in discretionary and social spending, severe disruptions to supply chains, and a major interruption in travel activity. The model predicts a so-called "v-shaped" recession, with unemployment rate peaking at 6% and Real GDP contracting 0.2% in 2020. These projections are compared to predicted unemployment rate of 3.7% and Real GDP growth of 1.7% prior to the onset of the pandemic. While the negative impact is projected to occur immediately, the model is projecting the downturn to be short-term with a strong recovery toward the end of 2020. The provision for credit losses on loans also includes qualitative factors related to the industries in the loan portfolio that the Company believes may suffer the most losses as a result of the COVID-19 pandemic, such as restaurants, hotels, dentists, religious organizations, and recreational and entertainment centers. Approximately $3.1 million of the provision for credit losses on loans was due to an increase in the amortized cost balance, including the change in the mix of loans in the portfolio, and other changes such as term modifications or credit quality changes. The following table details activity in the allowance for loan losses disaggregated by segment and class for the three months ended March 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Three Months Ended March 31, 2019 Beginning Balance Charge-offs Recoveries Provision for Loan Losses Ending Balance (In thousands) Commercial business: Commercial and industrial $ 11,343 $ (103 ) $ 7 $ 508 $ 11,755 Owner-occupied commercial real estate 4,898 — 3 355 5,256 Non-owner occupied commercial real estate 7,470 — 149 206 7,825 Total commercial business 23,711 (103 ) 159 1,069 24,836 One-to-four family residential 1,203 (15 ) — 59 1,247 Real estate construction and land development: One-to-four family residential 1,240 — 618 (436 ) 1,422 Five or more family residential and commercial properties 954 — — 41 995 Total real estate construction and land development 2,194 — 618 (395 ) 2,417 Consumer 6,581 (586 ) 117 368 6,480 Unallocated 1,353 — — (181 ) 1,172 Total $ 35,042 $ (704 ) $ 894 $ 920 $ 36,152 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,372 $ 9,772 $ 595 $ 11,739 Owner-occupied commercial real estate 426 3,558 528 4,512 Non-owner occupied commercial real estate 146 7,064 472 7,682 Total commercial business 1,944 20,394 1,595 23,933 One-to-four family residential 56 1,316 86 1,458 Real estate construction and land development: One-to-four family residential — 1,296 159 1,455 Five or more family residential and commercial properties — 1,527 78 1,605 Total real estate construction and land development — 2,823 237 3,060 Consumer 143 6,327 351 6,821 Unallocated — 899 — 899 Total $ 2,143 $ 31,759 $ 2,269 $ 36,171 The following table details the amortized cost of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 43,808 $ 806,044 $ 2,368 $ 852,220 Owner-occupied commercial real estate 6,336 793,984 4,914 805,234 Non-owner occupied commercial real estate 6,324 1,276,964 5,491 1,288,779 Total commercial business 56,468 2,876,992 12,773 2,946,233 One-to-four family residential 215 127,870 3,575 131,660 Real estate construction and land development: — — — One-to-four family residential 237 104,059 — 104,296 Five or more family residential and commercial properties — 170,350 — 170,350 Total real estate construction and land development 237 274,409 — 274,646 Consumer 561 413,017 1,762 415,340 Total $ 57,481 $ 3,692,288 $ 18,110 $ 3,767,879 |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate Owned Changes in other real estate owned during the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended 2020 2019 (In thousands) Balance at the beginning of the period $ 841 $ 1,983 Additions 270 — Proceeds from dispositions (266 ) (79 ) Loss on sales, net (4 ) — Balance at the end of the period $ 841 $ 1,904 At March 31, 2020 , there was no other real estate owned that was the result of foreclosure and obtaining physical possession of residential real estate properties. At March 31, 2020 , there were no consumer mortgage loans secured by residential real estate properties (included in the one-to-four family residential loans in Note (3) Loans Receivable) for which formal foreclosure proceedings were in process. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets (a) Goodwill The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in the following mergers: Premier Commercial Bancorp on July 2, 2018; Puget Sound Bancorp on January 16, 2018; Washington Banking Company on May 1, 2014; Valley Community Bancshares on July 15, 2013; Western Washington Bancorp in 2006 and North Pacific Bank in 1998. The Company’s goodwill is assigned to the Bank and is evaluated for impairment at the Bank level (reporting unit). There were no additions to goodwill during the three months ended March 31, 2020 and 2019. The Company performed its annual goodwill impairment test during the fourth quarter of 2019 and determined based on its Step 1 analysis that the fair value of the reporting unit exceeded the carrying value, such that the Company's goodwill was no t considered impaired. Due to the current market conditions as a result of the COVID-19 pandemic, the Company performed a qualitative assessment of goodwill as of March 31, 2020 and determined that the fair value of the reporting unit more likely than not exceeded the carrying value at March 31, 2020. Changes in the economic environment, operations of the reporting unit or other adverse events could result in future impairment charges which could have a material adverse impact on the Company’s operating results. (b) Other Intangible Assets Other intangible assets represent CDI acquired in business combinations. The useful life of the CDI was estimated to be ten years for the acquisitions of Premier Commercial Bancorp, Puget Sound Bancorp, Washington Banking Company, and Valley Community Bancshares. The following table presents the change in other intangible assets for the periods indicated: Three Months Ended March 31, 2020 2019 (In thousands) Balance at the beginning of the period $ 16,613 $ 20,614 Amortization (903 ) (1,025 ) Balance at the end of the period $ 15,710 $ 19,589 |
Junior Subordinated Debentures
Junior Subordinated Debentures | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures | Junior Subordinated Debentures As part of the acquisition of Washington Banking Company on May 1, 2014, the Company assumed trust preferred securities and junior subordinated debentures with a total fair value of $18.9 million at the merger date. At March 31, 2020 and December 31, 2019 , the balance of the junior subordinated debentures, net of unaccreted discount, was $20.7 million and $20.6 million , respectively. The adjustable rate of the trust preferred securities at March 31, 2020 was 3.01% . The following table presents the weighted average rate of the junior subordinated debentures for the periods indicated: Three Months Ended March 31, 2020 2019 Weighted average rate (1) 5.56 % 7.06 % (1) The weighted average rate includes the accretion of the discount established at the merger date which is amortized over the life of the trust preferred securities. Other Borrowings (a) FHLB The FHLB functions as a member-owned cooperative providing credit for member financial institutions. At March 31, 2020 , the Bank maintained a credit facility with the FHLB with available borrowing capacity of $898.5 million . At March 31, 2020 and December 31, 2019 the Bank had no FHLB advances outstanding. The following table sets forth the details of FHLB advances during the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) FHLB Advances: Average balance during the period $ 989 $ 1,849 Maximum month-end balance during the period $ — $ 25,000 Weighted average rate during the period 0.41 % 3.29 % Advances from the FHLB are collateralized by a blanket pledge on FHLB stock owned by the Bank, deposits at the FHLB, certain commercial real estate and one-to-four single family residential loans, investment securities which are obligations of or guaranteed by the United States or other assets. In accordance with the pledge agreement, the Company must maintain unencumbered collateral in an amount equal to varying percentages ranging from 100% to 160% of outstanding advances depending on the type of collateral. (b) Federal Funds Purchased The Bank maintains advance lines with Wells Fargo Bank, US Bank, The Independent Bankers Bank, Pacific Coast Bankers’ Bank and JP Morgan Chase to purchase federal funds of up to $140.0 million as of March 31, 2020 . The lines generally mature annually or are reviewed annually. As of March 31, 2020 and December 31, 2019 , there were no federal funds purchased. (c) Credit Facilities The Bank maintains a credit facility with the Federal Reserve Bank with available borrowing capacity of $74.0 million as of March 31, 2020 . There were no borrowings outstanding as of March 31, 2020 and December 31, 2019 . Any advances on the credit facility would have to be first secured by the Bank's investment securities or loans receivable. |
Securities Sold Under Agreement
Securities Sold Under Agreement to Repurchase | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of Repurchase Agreements [Abstract] | |
Securities Sold Under Agreement to Repurchase | Securities Sold Under Agreement to Repurchase The Company utilizes securities sold under agreement to repurchase with one day maturities secured by pledged investment securities available for sale as a supplement to funding sources. For additional information on the total value of investment securities pledged for securities sold under agreement to repurchase see Note (2) Investment Securities. The following table presents the Company's securities sold under agreement to repurchase obligations by class of collateral pledged at the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Mortgage-backed securities and collateralized mortgage obligations (1) : Residential $ 2,621 $ 8,452 Commercial 9,171 11,717 Securities sold under agreement to repurchase $ 11,792 $ 20,169 (1) Issued and guaranteed by U.S. Government-sponsored agencies. |
Other Borrowings
Other Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Other Borrowings | Junior Subordinated Debentures As part of the acquisition of Washington Banking Company on May 1, 2014, the Company assumed trust preferred securities and junior subordinated debentures with a total fair value of $18.9 million at the merger date. At March 31, 2020 and December 31, 2019 , the balance of the junior subordinated debentures, net of unaccreted discount, was $20.7 million and $20.6 million , respectively. The adjustable rate of the trust preferred securities at March 31, 2020 was 3.01% . The following table presents the weighted average rate of the junior subordinated debentures for the periods indicated: Three Months Ended March 31, 2020 2019 Weighted average rate (1) 5.56 % 7.06 % (1) The weighted average rate includes the accretion of the discount established at the merger date which is amortized over the life of the trust preferred securities. Other Borrowings (a) FHLB The FHLB functions as a member-owned cooperative providing credit for member financial institutions. At March 31, 2020 , the Bank maintained a credit facility with the FHLB with available borrowing capacity of $898.5 million . At March 31, 2020 and December 31, 2019 the Bank had no FHLB advances outstanding. The following table sets forth the details of FHLB advances during the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) FHLB Advances: Average balance during the period $ 989 $ 1,849 Maximum month-end balance during the period $ — $ 25,000 Weighted average rate during the period 0.41 % 3.29 % Advances from the FHLB are collateralized by a blanket pledge on FHLB stock owned by the Bank, deposits at the FHLB, certain commercial real estate and one-to-four single family residential loans, investment securities which are obligations of or guaranteed by the United States or other assets. In accordance with the pledge agreement, the Company must maintain unencumbered collateral in an amount equal to varying percentages ranging from 100% to 160% of outstanding advances depending on the type of collateral. (b) Federal Funds Purchased The Bank maintains advance lines with Wells Fargo Bank, US Bank, The Independent Bankers Bank, Pacific Coast Bankers’ Bank and JP Morgan Chase to purchase federal funds of up to $140.0 million as of March 31, 2020 . The lines generally mature annually or are reviewed annually. As of March 31, 2020 and December 31, 2019 , there were no federal funds purchased. (c) Credit Facilities The Bank maintains a credit facility with the Federal Reserve Bank with available borrowing capacity of $74.0 million as of March 31, 2020 . There were no borrowings outstanding as of March 31, 2020 and December 31, 2019 . Any advances on the credit facility would have to be first secured by the Bank's investment securities or loans receivable. |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company has entered into certain interest rate swap contracts that are not designated as hedging instruments. The following table presents the notional amounts and estimated fair values of interest rate derivative contracts outstanding at March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Notional Amounts Estimated Fair Value Notional Amounts Estimated Fair Value (In thousands) Non-hedging interest rate derivatives Interest rate swap asset (1) $ 233,014 $ 28,075 $ 221,436 $ 8,318 Interest rate swap liability (1) 223,014 (28,075 ) 221,436 (8,318 ) (1) The estimated fair value of derivatives with customers was $49,000 and $8.1 million as of March 31, 2020 and December 31, 2019 , respectively. The estimated fair value of derivatives with third parties was $(49,000) and $(8.1) million as of March 31, 2020 and December 31, 2019 , respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Earnings Per Common Share The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) Net income: Net income $ 12,191 $ 16,552 Dividends and undistributed earnings allocated to participating securities (1) (6 ) (27 ) Net income allocated to common shareholders $ 12,185 $ 16,525 Basic: Weighted average common shares outstanding 36,357,812 36,881,499 Restricted stock awards (15,722 ) (55,967 ) Total basic weighted average common shares outstanding 36,342,090 36,825,532 Diluted: Basic weighted average common shares outstanding 36,342,090 36,825,532 Effect of potentially dilutive common shares (2) 254,551 185,108 Total diluted weighted average common shares outstanding 36,596,641 37,010,640 (1) Represents dividends paid and undistributed earnings allocated to nonvested restricted stock awards. (2) Represents the effect of the assumed exercise of stock options and vesting of restricted stock awards and units. Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. Anti-dilution occurs when the exercise price of a stock option or the unrecognized compensation cost per share of a restricted stock award exceeds the market price of the Company’s stock. For the three months ended March 31, 2020 and 2019 , there were 21,475 and 31,557 anti-dilutive shares outstanding, respectively. (b) Dividends The timing and amount of cash dividends paid on the Company's common stock depends on the Company’s earnings, capital requirements, financial condition and other relevant factors. Dividends on common stock from the Company depend substantially upon receipt of dividends from the Bank, which is the Company’s predominant source of income. The following table summarizes the dividend activity for the three months ended March 31, 2020 and calendar year 2019 : Declared Cash Dividend per Share Record Date Paid Date January 23, 2019 $0.18 February 7, 2019 February 21, 2019 April 24, 2019 $0.18 May 8, 2019 May 22, 2019 July 24, 2019 $0.19 August 8, 2019 August 22, 2019 October 23, 2019 $0.19 November 7, 2019 November 21, 2019 October 23, 2019 $0.10 November 7, 2019 November 21, 2019 * January 22, 2020 $0.20 February 6, 2020 February 20, 2020 * Denotes a special dividend. The FDIC and the Washington State Department of Financial Institutions, Division of Banks have the authority under their supervisory powers to prohibit the payment of dividends by the Bank to the Company. Additionally, current guidance from the Federal Reserve provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. Current regulations allow the Company and the Bank to pay dividends on their common stock if the Company’s or the Bank’s regulatory capital would not be reduced below the statutory capital requirements set by the Federal Reserve and the FDIC. (c) Stock Repurchase Program The Company has had various stock repurchase programs since March 1999. On March 12, 2020 the Company's Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares, or 1,799,054 shares, under the twelfth stock repurchase plan. The number, timing and price of shares repurchased will depend on business and market conditions and other factors, including opportunities to deploy the Company's capital. During the quarter ended March 31, 2020 , the Company repurchased the remaining 639,922 shares available under the eleventh stock repurchase plan at a weighted average price per share of $23.95 . No shares were repurchased under this plan during the three months ended March 31, 2019 . The Company has repurchased 155,778 shares at a weighted average share price per share of $20.34 during the three months ended March 31, 2020 . The Company halted its buybacks in March 2020, and will not resume repurchase activity until management is confident it can understand the economic impacts of the COVID-19 pandemic on the Company's long-term capital position. In addition to the stock repurchases under a plan, the Company repurchases shares to pay withholding taxes on the vesting of restricted stock awards and units. The following table provides total repurchased shares for the periods indicated: Three Months Ended March 31, 2020 2019 Repurchased shares to pay withholding taxes 25,882 25,854 Stock repurchase to pay withholding taxes average share price $ 21.79 $ 31.01 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The changes in AOCI, all of which are due to changes in the fair value of available for sale securities and are net of tax, during the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 (In thousands) Balance of AOCI at the beginning of period $ 10,378 $ (7,455 ) Other comprehensive income before reclassification 8,707 8,028 Amounts reclassified from AOCI for gain on sale of investment securities included in net income (793 ) (12 ) Net current period other comprehensive income 7,914 8,016 Balance of AOCI at the end of period $ 18,292 $ 561 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 : Valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow the Company to sell its ownership interest back to the fund at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities, or funds. Level 2 : Valuations for assets and liabilities traded in less active dealer or broker markets, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or valuations using methodologies with observable inputs. Level 3 : Valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques using unobservable inputs, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. (a) Recurring and Nonrecurring Basis The Company used the following methods and significant assumptions to measure the fair value of certain assets on a recurring and nonrecurring basis: Investment Securities Available for Sale : The fair values of all investment securities are based upon the assumptions that market participants would use in pricing the security. If available, fair values of investment securities are determined by quoted market prices (Level 1). For investment securities where quoted market prices are not available, fair values are calculated based on market prices on similar securities (Level 2). For investment securities where quoted prices or market prices of similar securities are not available, fair values are calculated by using observable and unobservable inputs such as discounted cash flows or other market indicators (Level 3). Security valuations are obtained from third party pricing services for comparable assets or liabilities. Collateral-dependent Loans : Collateral-dependent loans are identified as part of the calculation of the ACL on loans. The fair value used to measure credit loss for this type of loan is commonly based on recent real estate appraisals which are generally obtained at least every 18 months or earlier if there are changes to risk characteristics of the underlying loan. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value based on the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business (Level 3). Individually evaluated loans are evaluated on a quarterly basis and their ACL on loans is adjusted accordingly. Other Real Estate Owned : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less costs to sell. Fair value is commonly based on recent real estate appraisals which are generally obtained at least every 18 months or earlier. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers for commercial properties or certified residential appraisers for residential properties whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On a quarterly basis, the Company compares the actual selling price of collateral that has been liquidated to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Derivative Financial Instruments: The Company obtains broker or dealer quotes to value its interest rate derivative contracts, which use valuation models using observable market data as of the measurement date (Level 2). The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 : March 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 87,062 $ — $ 87,062 $ — Municipal securities 179,608 850 178,758 — Mortgage-backed securities and collateralized mortgage obligations: Residential 322,684 — 322,684 — Commercial 325,756 — 325,756 — Corporate obligations 23,832 — 23,832 — Other asset-backed securities 22,150 — 22,150 — Total investment securities available for sale 961,092 850 960,242 — Equity security 96 96 — — Derivative assets - interest rate swaps 28,075 — 28,075 — Liabilities Derivative liabilities - interest rate swaps $ 28,075 $ — $ 28,075 $ — December 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 105,223 $ — $ 105,223 $ — Municipal securities 133,014 — 133,014 — Mortgage-backed securities and collateralized mortgage obligations: Residential 339,608 — 339,608 — Commercial 327,095 — 327,095 — Corporate obligations 24,194 — 24,194 — Other asset-backed securities 23,178 — 23,178 — Total investment securities available for sale 952,312 — 952,312 — Equity Security 148 148 — — Derivative assets - interest rate swaps 8,318 — 8,318 — Liabilities Derivative liabilities - interest rate swaps $ 8,318 $ — $ 8,318 $ — Nonrecurring Basis The Company may be required to measure certain financial assets and liabilities at fair value on a nonrecurring basis. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The following tables below represent assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019 and the net losses recorded in earnings during three months ended March 31, 2020 and 2019 : Basis (1) Fair Value at March 31, 2020 Total Level 1 Level 2 Level 3 Net Losses (In thousands) Collateral-dependent loans: Commercial business: Commercial and industrial $ 374 $ 335 $ — $ — $ 335 $ 5 Total assets measured at fair value on a nonrecurring basis $ 374 $ 335 $ — $ — $ 335 $ 5 (1) Basis represents the unpaid principal balance of impaired loans. Excludes loans whose fair value was determined to be $0. Basis (1) Fair Value at December 31, 2019 Total Level 1 Level 2 Level 3 Net Losses Recorded in Earnings During the Three Months Ended March 31, 2019 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 4,111 $ 3,380 $ — $ — $ 3,380 $ — Total assets measured at fair value on a nonrecurring basis $ 4,111 $ 3,380 $ — $ — $ 3,380 $ — (1) Basis represents the unpaid principal balance of impaired loans. The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2020 and December 31, 2019 : March 31, 2020 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Collateral-dependent loans $ 335 Market approach Adjustment for differences between the comparable sales N/A (1) (1) Quantitative disclosures are not provided for collateral-dependent impaired loans because there were no adjustments made to the appraisal or stated values during the current period. December 31, 2019 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans $ 3,380 Market approach Adjustment for differences between the comparable sales 173.5% - (18.5%); 36.8% (b) Fair Value of Financial Instruments Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. The following tables present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at March 31, 2020 and December 31, 2019 : March 31, 2020 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 162,913 $ — $ 162,913 $ — $ — Investment securities available for sale 961,092 961,092 850 960,242 — Loans held for sale 3,808 3,935 — — 3,935 Loans receivable, net 3,804,836 3,851,281 — — 3,851,281 Accrued interest receivable 14,940 14,940 1 3,851 11,088 Derivative assets - interest rate swaps 28,075 28,075 — 28,075 — Equity security 96 96 96 — — Financial Liabilities: Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts $ 4,091,959 $ 4,091,959 $ 4,091,959 $ — $ — Certificate of deposit accounts 525,989 530,580 — 530,580 — Securities sold under agreement to repurchase 11,792 11,792 11,792 — — Junior subordinated debentures 20,668 17,750 — — 17,750 Accrued interest payable 154 154 69 59 26 Derivative liabilities - interest rate swaps 28,075 28,075 — 28,075 — December 31, 2019 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 228,568 $ 228,568 $ 228,568 $ — $ — Investment securities available for sale 952,312 952,312 — 952,312 — Loans held for sale 5,533 5,704 — — 5,704 Loans receivable, net 3,731,708 3,791,557 — — 3,791,557 Accrued interest receivable 14,446 14,446 79 3,668 10,699 Derivative assets - interest rate swaps 8,318 8,318 — 8,318 — Equity security 148 148 148 — — Financial Liabilities: Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts $ 4,058,098 $ 4,058,098 $ 4,058,098 $ — $ — Certificate of deposit accounts 524,578 529,679 — 529,679 — Securities sold under agreement to repurchase 20,169 20,169 20,169 — — Junior subordinated debentures 20,595 20,000 — — 20,000 Accrued interest payable 199 199 95 64 40 Derivative liabilities - interest rate swaps 8,318 8,318 — 8,318 — |
Cash Requirement
Cash Requirement | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Cash Requirement | Cash Requirement The Company is required to maintain an average reserve balance with the Federal Reserve Bank or maintain such reserve balance in the form of cash. Effective March 24, 2020 the Federal Reserve lowered the reserve ratios on transaction accounts maintained at a depository institution to zero percent. There was no required reserve balance at March 31, 2020 and a required balance of $17.1 million at December 31, 2019 which was met by holding cash and maintaining an average balance with the Federal Reserve Bank. |
Commitments and Contingencies (
Commitments and Contingencies (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies In the ordinary course of business, the Company may enter into various types of transactions that include commitments to extend credit that are not included in its Condensed Consolidated Financial Statements. The Company applies the same credit standards to these commitments as it uses in all its lending activities and has included these commitments in its lending risk evaluations. The majority of the commitments presented below are variable rate. Loan commitments can be either revolving or nonrevolving. The Company’s exposure to credit and market risk under commitments to extend credit is represented by the amount of these commitments. Upon adoption of ASU 2016-13, as described in Note (1) Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements, the Company recorded an increase in the beginning ACL on unfunded commitments of $3.7 million , representing the change in methodology from an estimate of incurred losses at the balance sheet date, with an estimated probability of funding, to an estimate of losses on future utilization over the entire contractual period. The following table presents outstanding commitments to extend credit, including letters of credit, at the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 557,050 $ 584,287 Owner-occupied commercial real estate 13,665 17,193 Non-owner occupied commercial real estate 30,132 35,573 Total commercial business 600,847 637,053 Real estate construction and land development: One-to-four family residential 65,740 75,066 Five or more family residential and commercial properties 201,003 230,343 Total real estate construction and land development 266,743 305,409 Consumer 256,312 269,898 Total outstanding commitments $ 1,123,902 $ 1,212,360 The following table details the activity in the ACL on unfunded commitments during the three months ended March 31, 2020 : Three Months Ended March 31, March 31, (In thousands) Balance, beginning of period $ 306 $ 306 Impact of CECL adoption 3,702 — Adjusted balance, beginning of period 4,008 306 Reversal of provision for credit losses on unfunded commitments (2,018 ) — Balance, end of period $ 1,990 $ 306 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The effective tax rate was 5.0% and 16.3% for the three months ended March 31, 2020 and 2019, respectively. The decrease in the effective tax rate was due to lower pre-tax income during the three months ended March 31, 2020, reflective of increasing tax-exempt investments, and a provision in the CARES Act, which permitted the Company to recognize a benefit from net operating losses related to prior acquisitions of $1.0 million during the quarter ended March 31, 2020. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event The Company began originating loans under the SBA's Paycheck Protection Program on April 6, 2020, including loans to independent contractors, sole proprietors and partnerships as allowed under the guidance from the U.S. Treasury and SBA that was issued April 14, 2020. As of May 3, 2020, the Bank has funded 3,386 loans totaling $785.0 million and has received SBA approval on an additional 784 loans totaling $86.1 million . The average loan balance for funded and approved PPP loans was $216,000 . The Bank earns 1% interest on these loans as well as a fee to cover processing costs. Liquidity for the originations was initially provided from cash reserves. As fund are used and withdrawn by borrowers for operating expenses, the Bank expects to transition the entire funded balance to the Federal Reserve's Paycheck Protection Program Liquidity Facility. |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Description of Business | Description of Business Heritage Financial Corporation is a bank holding company that was incorporated in the State of Washington in August 1997. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, Heritage Bank. The Bank is a Washington-chartered commercial bank and its deposits are insured by the FDIC. The Bank is headquartered in Olympia, Washington and conducts business from its 62 branch offices as of March 31, 2020 located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans, consumer loans and originates first mortgage loans on residential properties primarily located in its market areas. |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is recommended that these unaudited Condensed Consolidated Financial Statements and accompanying Notes be read with the audited Consolidated Financial Statements and the accompanying Notes included in the 2019 Annual Form 10-K. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . To prepare unaudited Condensed Consolidated Financial Statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. It is reasonably possible management's estimate of ACL on loans and the fair value of financial instruments could change from $47.5 million and the amounts disclosed in Note (13) Fair Value Measurements, respectively. The resulting change in these estimates would be material to the unaudited Condensed Consolidated Financial Statements. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Namely, loan receivable balances in the disclosures of Note (3) Loans Receivable and Note (4) Allowance for Credit Losses on Loans have been reclassified to conform to the current period presentation, which is net of deferred fees and costs. Reclassifications had no effect on the prior years' net income or stockholders’ equity. |
Significant Accounting Policies [Text Block] | (c) Significant Accounting Policies The significant accounting policies used in preparation of the Company's Condensed Consolidated Financial Statements are disclosed in the 2019 Annual Form 10-K. Other than the adoption of new accounting standard discussed below, there have not been any material changes in the Company's significant accounting policies from those contained in the 2019 Annual Form 10-K. Adoption of New Accounting Standard On January 1, 2020, the Company adopted FASB ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivable. It also applies to off-balance sheet credit exposures such as loan commitments, standby letters of credit, financial guarantees, and other similar instruments. In addition, the CECL Adoption made changes to the accounting for investment securities available for sale. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and unfunded commitments. The Company elected not to measure an ACL on accrued interest receivable on loans receivable or accrued interest receivable on investment securities available for sale as Company policy is to reverse interest income for uncollectible accrued interest receivable balances in a timely manner. Results for the reporting period beginning after January 1, 2020 are presented under ASU 2016-13, while prior period amounts were not restated and continue to be reported in accordance with previously applicable GAAP. The accounting policies for prior periods are included in the 2019 Form 10-K. The accounting policies for all financial instruments impacted by the CECL adoption are as follows: Investment Securities A debt security is placed on nonaccrual status at the time any principal or payments become more than 90 days delinquent. Interest accrued, but not received for a security placed on nonaccrual, is reversed against interest income during the period that the debt security is placed on nonaccrual status. Allowance for Credit Losses on Investment Securities Management evaluates the need for an ACL on investment securities on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For investment securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL on investment securities available for sale is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an ACL on investment securities for sale is recognized in other comprehensive income. Changes in the ACL on investment securities available for sale are recorded as provision (reversal of provision) for credit losses expense. Losses are charged against the allowance when management believes the uncollectability of an investment security available for sale is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on investment securities available for sale is excluded from the estimate of credit losses as interest accrued, but not received, is reversed timely in accordance with the policy for investment securities above. Loans Receivable Loans receivable include loans originated and indirect loans purchased by the Bank as well as loans acquired in business combinations. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the outstanding principal balance, net of purchased premiums and discounts, unearned discounts, and net deferred loan origination fees and costs. Accrued interest receivable for loans receivable is reported in prepaid expenses and other assets on the Condensed Consolidated Statements of Financial Condition. Purchased Loans: Loans acquired in a business combination are designated as “purchased” loans. Upon adoption of ASU 2016-13, the Bank's PCI loans were transitioned to PCD loans. The Bank elected to account for the PCD loans individually, terminating the pools of loans that were previously accounted for under ASC 310-30. Loans purchased after January 1, 2020 are recorded at their fair value at acquisition date net of an ACL on loans expected to be incurred over the life of the loan. The initial ACL on purchased loans is determined using the same methodology as originated loans. For non-PCD loans, the initial ACL is recorded to provision for credit losses expense. For PCD loans, the initial ACL is incorporated into the calculation of the fair value of net assets acquired on the merger date and the net of the PCD loan purchase price and the initial ACL becomes the initial amortized cost basis. The difference between the initial amortized cost basis and the par value of PCD loans is the noncredit discount or premium for PCD loans. The noncredit discount or premium for PCD loans and both the noncredit and credit discount or premium for non-PCD loans are accreted through the interest and fees on loans line item on the Condensed Consolidated Statements of Income over the life of the loan using the effective interest method for non-revolving credits or the straight-line method, which approximates the effective interest method, for revolving credits. Any unrecognized discount or premium for a purchased loan that is subsequently repaid in full is recognized immediately into income. Subsequent changes to the ACL on loans for purchased loans are recorded through provision for credit losses expense. Troubled Debt Restructures : The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined by the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the amortized cost of loans receivable to present the net amount expected to be collected. Loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. Subsequent recoveries, if any, are credited to the allowance. The Bank record the changes in the ACL through earnings, as a provision for credit losses on the Condensed Consolidated Statements of Income. Accrued interest receivable on loans receivable is excluded from the estimate of credit losses. Instead, interest accrued, but not received, is reversed timely in accordance with the policy for loans receivable above. Management has adopted a historic loss, open pool CECL methodology to calculate the ACL on loans. The same methodology is applied to all loans consistent with the guidance of the accounting standard which does not require undue complexity. Under this allowance approach, the Company has identified segments of loans with similar risk characteristics that align with its identified loan classes. Nonaccrual loans are not considered similar to other loans; therefore, they are evaluated for allowance on an individual basis. The allowance for individually evaluated loans is calculated using either the collateral value method, which considers the likely source of repayment as the value of the collateral, less estimated costs to sell, or the net present value method, which considers the contractual principal and interest terms and estimated cash flows available from the borrower to satisfy the debt. When the net present value method is used, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The ACL on a TDR loan is measured using the same method as all other loans, except that the original interest rate is used to discount the expected cash flows, not the rate specified in the restructuring. Nonperforming TDR loans, including defaulted TDR loans, are evaluated for allowance on an individual basis. A performing TDR loan is evaluated for allowance on a collective basis with loans with similar risk characteristics if a) it is classified as a risk rating of "Pass", b) it has paid a minimum of six months of principal and interest in accordance with the restructured terms and c) it has not been over 30 days delinquent in the most recent six month period. If all three criteria on a performing TDR loan are not met, the loan is evaluated for allowance on an individual basis as it is not deemed to have similar characteristics of other loans in the portfolio. For each loan segment collectively measured, the baseline loss rates are calculated using the bank's average quarterly historical loss information. The Bank evaluates the historical period on a quarterly basis, with the assumption that economic cycles have historically lasted between 10 and 15 years. The baseline loss rates are applied to each loan's estimated cash flows over the life of the loan under the remaining life method to determine the baseline loss estimate for each loan. Estimated cash flows consider the principal and interest in accordance with the contractual term of the loan and estimated prepayments. Contractual cash flows are based on the amortized cost, as adjusted for balances guaranteed by governmental entities, such as SBA or USDA, or the unguaranteed amortized cost. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: 1) management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or 2) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Prepayments are established for each segment based on rolling historical averages for the segments, which management believes is an accurate representation of future prepayment activity. Management reviews the adequacy of the prepayment period assumption on a quarterly basis. The CECL methodology includes consideration of the forecasted direction of the economic and business environment and its likely impact to the estimated allowance as compared to the historical losses over the reasonable and supportable time frame. Economic forecast models for the current period are uploaded to the model, which targets 16 forecasted macroeconomic factors, such as unemployment rate, GDP, housing price index, commercial real estate price index, disposable income growth, mortgage rates, and certain rate indices. Each of the forecasted segments is impacted by a mix of these macroeconomic factors. Further, each of the macroeconomic factors is utilized differently by segment, including the application of lagged factors and various transformations such as percent change year over year. The macroeconomic sensitive model is developed for each segment given the current and forecasted conditions, and a macroeconomic multiplier is calculated for each forecast period considering the forecasted losses as compared to the long-term average actual losses of the dataset. The impact of those macroeconomic factors to each segment, positive or negative, using the reasonable and supportable period, are added to the calculated baseline loss rate. After the reasonable and supportable period, the estimated credit losses are reverted back to historical baseline loss levels under a reversion period on a straight-lined, input reversion basis. The Bank also considers other qualitative risk factors to adjust the estimated ACL calculated by the above mentioned model. The Bank will have a bias for minimal factors unless internal or external factors outside those considered in its historical losses or macroeconomic forecast indicate otherwise. The Bank will establish metrics to estimate the qualitative risk factor by segment based on the identified risk. In general, management's estimate of the ACL on loans uses relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for loan losses evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. While management utilizes its best judgment and information available to recognize losses on loans, future additions to the allowance may be necessary based on further declines in local and national economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s ACL on loans. Such agencies may require the Bank to make adjustments to the allowance based on their judgments about information available to them at the time of their examinations. The Company believes the ACL on loans is appropriate given all of the above considerations. Allowance for Credit Losses on Unfunded Commitments The Bank estimates expected credit losses on unfunded, off-balance sheet commitments over the contractual period in which the Bank is exposed to credit risk from a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The Bank has determined that no allowance is necessary for its credit card portfolio as it has the ability to unconditionally cancel the available lines of credit. The allowance methodology is similar to the ACL on loans, but additionally includes an estimate of the future utilization of the commitment as determined by historical commitment utilizations and the Bank's estimates of future utilizations given current economic forecasts. The credit risks associated with the unfunded commitments are consistent with the risks outlined for each loan class. The allowance is recognized in accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition and is adjusted as a provision (reversal of provision) for credit losses on the Condensed Consolidated Statements of Income. |
Marketable Securities, Policy [Policy Text Block] | Investment Securities A debt security is placed on nonaccrual status at the time any principal or payments become more than 90 days delinquent. Interest accrued, but not received for a security placed on nonaccrual, is reversed against interest income during the period that the debt security is placed on nonaccrual status. |
Loans Receivable and Loan Commitments Policy [Policy Text Block] | Loans Receivable Loans receivable include loans originated and indirect loans purchased by the Bank as well as loans acquired in business combinations. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the outstanding principal balance, net of purchased premiums and discounts, unearned discounts, and net deferred loan origination fees and costs. Accrued interest receivable for loans receivable is reported in prepaid expenses and other assets on the Condensed Consolidated Statements of Financial Condition. Purchased Loans: Loans acquired in a business combination are designated as “purchased” loans. Upon adoption of ASU 2016-13, the Bank's PCI loans were transitioned to PCD loans. The Bank elected to account for the PCD loans individually, terminating the pools of loans that were previously accounted for under ASC 310-30. Loans purchased after January 1, 2020 are recorded at their fair value at acquisition date net of an ACL on loans expected to be incurred over the life of the loan. The initial ACL on purchased loans is determined using the same methodology as originated loans. For non-PCD loans, the initial ACL is recorded to provision for credit losses expense. For PCD loans, the initial ACL is incorporated into the calculation of the fair value of net assets acquired on the merger date and the net of the PCD loan purchase price and the initial ACL becomes the initial amortized cost basis. The difference between the initial amortized cost basis and the par value of PCD loans is the noncredit discount or premium for PCD loans. The noncredit discount or premium for PCD loans and both the noncredit and credit discount or premium for non-PCD loans are accreted through the interest and fees on loans line item on the Condensed Consolidated Statements of Income over the life of the loan using the effective interest method for non-revolving credits or the straight-line method, which approximates the effective interest method, for revolving credits. Any unrecognized discount or premium for a purchased loan that is subsequently repaid in full is recognized immediately into income. Subsequent changes to the ACL on loans for purchased loans are recorded through provision for credit losses expense. Troubled Debt Restructures : The CARES Act provided guidance around the modification of loans as a result of the COVID-19 pandemic, which outlined, among other criteria, that short-term modifications made on a good faith basis to borrowers who were current as defined by the CARES Act prior to any relief, are not TDRs. This includes short-term (e.g. six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers are considered current under the CARES Act if they are less than 30 days past due on their contractual payments at the time a modification program is implemented. |
Recently Issued Accounting Pronouncements | d) Recently Issued Accounting Pronouncements FASB ASU 2016-13 , Financial Instruments: Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as amended by ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2019-10, ASU 2019-11, and 2020-02, was originally issued in June 2016. This ASU requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. For public business entities, this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years with early adoption permitted for fiscal years after December 15, 2018. The Company adopted the Update on January 1, 2020 as discussed in the Significant Accounting Policies section above. The adoption had the following impacts: Investment Securities As of December 31, 2019, the Company had no historical charge-off or recovery history and did not have any investment securities available for sale outstanding at the adoption date for which an other-than-temporary impairment was previously recorded. At the adoption date of ASU 2016-13, the unrealized losses present in the portfolio of investment securities available for sale were primarily due to decreases in market interest rates on floating rate investment securities since the purchase of the securities and the fair value of these securities was expected to recover as the securities approach their maturity dates. The basis of management’s conclusion was that at December 31, 2019, 83.5% of the investment securities were issued by or guaranteed by the United States government or its agencies, 14.0% were issued and guaranteed by State and local governments and the remainder of the portfolio was invested in at least investment-grade securities. As a result of the analysis, no allowance for credit losses on investment securities available for sale was recorded upon adoption. See Note (2) Investment Securities for more information. Loan Receivable ASU 2016-13 was applied prospectively and replaced the allowance for loan losses with the ACL on loans on the Condensed Consolidated Statements of Financial Condition and replaced the related provision for loan losses with the provision for credit losses on loans as presented on the Condensed Consolidated Statements of Income, net of provision for credit losses on unfunded commitments. The adoption was completed in a specific order beginning with the transition of PCI loans to PCD loans. The Bank elected to account for the PCD loans individually, terminating the pools of loans that were previously accounted for under ASC 310-30. First, an ACL was determined for each PCI loan. The ACL on PCI loans was added to the loans' carrying amount to establish a PCD loan at its amortized cost basis. The difference between the unpaid principal balance and the amortized cost basis of the PCD loan is a noncredit premium or discount, which will be amortized into interest income over the remaining life of the PCD loan. The PCI to PCD transition did not have an impact on beginning retained earnings; however, it did have the effect of reducing the existing allowance for PCI loans by $1.6 million under the CECL methodology as compared to ASC 310-30 methodology. Following the PCI to PCD transition, the Bank recorded a pretax increase to the ACL on loans of $3.4 million to increase the reserve to the estimated credit losses at January 1, 2020 based on its CECL methodology as part of the cumulative-effect adjustment to beginning retained earnings. The pretax increase to the ACL on loans of $3.4 million and the reduction in ACL on loans due to the PCI to PCD transition of $1.6 million resulted in a $1.8 million increase in the ACL on loans at January 1, 2020. Upon adoption, the adjusted beginning balance of the ACL on loans as a percentage of loans receivable was 1.01% as compared to 0.96% at December 31, 2019 under the prior incurred loss methodology. At March 31, 2020, the ACL on loans as a percentage of loans receivable was 1.23% . The PCI to PCD transition also resulted in a net discount of $4.3 million for PCD loans, or an increase in the net discount for PCD loans of $1.6 million . Following the transition, the total net discount for purchased loans increased to $10.0 million at January 1, 2020 compared to $8.4 million as of December 31, 2019. The total net discount for purchased loans was $9.0 million at March 31, 2020. The Company accretes the net discount or premium on purchased loans to interest and fees on loans using the effective interest method. See Note (3) Loans Receivable and Note (4) Allowance for Credit Losses on Loans for more information. Unfunded Commitments ASU 2016-13 was applied prospectively and replaced the reserve for unfunded commitments with the ACL on unfunded commitments as included in accrued liabilities and other expenses on the Condensed Consolidated Statements of Financial Condition and replaced the provision for unfunded commitments with the provision for credit losses on unfunded commitments as presented on the Condensed Consolidated Statements of Income, net of provision for credit losses on loans. Upon adoption, the Bank recorded a pretax increase in the beginning ACL on unfunded commitments of $3.7 million . See Note (15) Commitments and Contingencies for more information. Overall CECL Impact The adoption of ASU 2016-13, including the above mentioned increase to the ACL on loans of $3.4 million and the increase to the ACL on unfunded commitments of $3.7 million , resulted in a pretax cumulative-effect adjustment of $7.1 million . The impact of this adjustment to beginning retained earnings on January 1, 2020 was $5.6 million , net of tax. FASB ASU 2017-04 , Goodwill (Topic 350) , was issued in January 2017 and eliminates Step 2 from the goodwill impairment test. The ASU is effective for annual periods or any interim goodwill impairment tests beginning after December 15, 2019 using a prospective transition method and early adoption is permitted. The Company adopted the guidance on January 1, 2020. The adoption did not have a material impact on its Condensed Consolidated Financial Statements as of or for the three month ended March 31, 2020 as the Company's qualitative assessment indicated no goodwill impairment. FASB ASU 2018-13 , Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, was issued in August 2018 and modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company adopted the guidance on January 1, 2020. The adoption did not have a material impact to Note (13) Fair Value Measurements in its Condensed Consolidated Financial Statements. FASB ASU 2020-03 , Codification Improvements to Financial Instruments was issued in March 2020 and revised a wide variety of topics in the Codification with the intent to make the Codification easier to understand and apply by eliminating inconsistencies and providing clarifications. The Update was effective immediately upon its release and did not have a material impact on the Company's Condensed Consolidated Financial Statements. FASB ASU 2020-04 , Reference Rate Reform (Topic 848) was issued in March 2020 and provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. The Update also provides numerous optional expedients for derivative accounting. The Update is effective March 12, 2020 through December 31, 2022. An entity may elect to apply the Update for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within the Codification, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The Company anticipates this Update will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2022 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. The Company is evaluating the impacts of this Update and have not yet determined whether LIBOR transition and this Update will have material effects on our business operations and Condensed Consolidated Financial Statements. |
Available-for-sale Securities [Member] | |
Financing Receivable, Allowance for Credit Losses, Policy or Methodology Change [Policy Text Block] | Allowance for Credit Losses on Investment Securities Management evaluates the need for an ACL on investment securities on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For investment securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL on investment securities available for sale is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any decline in fair value that has not been recorded through an ACL on investment securities for sale is recognized in other comprehensive income. Changes in the ACL on investment securities available for sale are recorded as provision (reversal of provision) for credit losses expense. Losses are charged against the allowance when management believes the uncollectability of an investment security available for sale is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on investment securities available for sale is excluded from the estimate of credit losses as interest accrued, but not received, is reversed timely in accordance with the policy for investment securities above. |
Loans Receivable [Member] | |
Financing Receivable, Allowance for Credit Losses, Policy or Methodology Change [Policy Text Block] | Allowance for Credit Losses on Loans The ACL on loans is a valuation account that is deducted from the amortized cost of loans receivable to present the net amount expected to be collected. Loans are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged off. Subsequent recoveries, if any, are credited to the allowance. The Bank record the changes in the ACL through earnings, as a provision for credit losses on the Condensed Consolidated Statements of Income. Accrued interest receivable on loans receivable is excluded from the estimate of credit losses. Instead, interest accrued, but not received, is reversed timely in accordance with the policy for loans receivable above. Management has adopted a historic loss, open pool CECL methodology to calculate the ACL on loans. The same methodology is applied to all loans consistent with the guidance of the accounting standard which does not require undue complexity. Under this allowance approach, the Company has identified segments of loans with similar risk characteristics that align with its identified loan classes. Nonaccrual loans are not considered similar to other loans; therefore, they are evaluated for allowance on an individual basis. The allowance for individually evaluated loans is calculated using either the collateral value method, which considers the likely source of repayment as the value of the collateral, less estimated costs to sell, or the net present value method, which considers the contractual principal and interest terms and estimated cash flows available from the borrower to satisfy the debt. When the net present value method is used, management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The ACL on a TDR loan is measured using the same method as all other loans, except that the original interest rate is used to discount the expected cash flows, not the rate specified in the restructuring. Nonperforming TDR loans, including defaulted TDR loans, are evaluated for allowance on an individual basis. A performing TDR loan is evaluated for allowance on a collective basis with loans with similar risk characteristics if a) it is classified as a risk rating of "Pass", b) it has paid a minimum of six months of principal and interest in accordance with the restructured terms and c) it has not been over 30 days delinquent in the most recent six month period. If all three criteria on a performing TDR loan are not met, the loan is evaluated for allowance on an individual basis as it is not deemed to have similar characteristics of other loans in the portfolio. For each loan segment collectively measured, the baseline loss rates are calculated using the bank's average quarterly historical loss information. The Bank evaluates the historical period on a quarterly basis, with the assumption that economic cycles have historically lasted between 10 and 15 years. The baseline loss rates are applied to each loan's estimated cash flows over the life of the loan under the remaining life method to determine the baseline loss estimate for each loan. Estimated cash flows consider the principal and interest in accordance with the contractual term of the loan and estimated prepayments. Contractual cash flows are based on the amortized cost, as adjusted for balances guaranteed by governmental entities, such as SBA or USDA, or the unguaranteed amortized cost. The contractual term excludes expected extensions, renewals, and modifications unless either of the following applies: 1) management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or 2) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Prepayments are established for each segment based on rolling historical averages for the segments, which management believes is an accurate representation of future prepayment activity. Management reviews the adequacy of the prepayment period assumption on a quarterly basis. The CECL methodology includes consideration of the forecasted direction of the economic and business environment and its likely impact to the estimated allowance as compared to the historical losses over the reasonable and supportable time frame. Economic forecast models for the current period are uploaded to the model, which targets 16 forecasted macroeconomic factors, such as unemployment rate, GDP, housing price index, commercial real estate price index, disposable income growth, mortgage rates, and certain rate indices. Each of the forecasted segments is impacted by a mix of these macroeconomic factors. Further, each of the macroeconomic factors is utilized differently by segment, including the application of lagged factors and various transformations such as percent change year over year. The macroeconomic sensitive model is developed for each segment given the current and forecasted conditions, and a macroeconomic multiplier is calculated for each forecast period considering the forecasted losses as compared to the long-term average actual losses of the dataset. The impact of those macroeconomic factors to each segment, positive or negative, using the reasonable and supportable period, are added to the calculated baseline loss rate. After the reasonable and supportable period, the estimated credit losses are reverted back to historical baseline loss levels under a reversion period on a straight-lined, input reversion basis. The Bank also considers other qualitative risk factors to adjust the estimated ACL calculated by the above mentioned model. The Bank will have a bias for minimal factors unless internal or external factors outside those considered in its historical losses or macroeconomic forecast indicate otherwise. The Bank will establish metrics to estimate the qualitative risk factor by segment based on the identified risk. In general, management's estimate of the ACL on loans uses relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for loan losses evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. While management utilizes its best judgment and information available to recognize losses on loans, future additions to the allowance may be necessary based on further declines in local and national economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s ACL on loans. Such agencies may require the Bank to make adjustments to the allowance based on their judgments about information available to them at the time of their examinations. The Company believes the ACL on loans is appropriate given all of the above considerations. |
Unfunded Loan Commitment [Member] | |
Financing Receivable, Allowance for Credit Losses, Policy or Methodology Change [Policy Text Block] | Allowance for Credit Losses on Unfunded Commitments The Bank estimates expected credit losses on unfunded, off-balance sheet commitments over the contractual period in which the Bank is exposed to credit risk from a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The Bank has determined that no allowance is necessary for its credit card portfolio as it has the ability to unconditionally cancel the available lines of credit. The allowance methodology is similar to the ACL on loans, but additionally includes an estimate of the future utilization of the commitment as determined by historical commitment utilizations and the Bank's estimates of future utilizations given current economic forecasts. The credit risks associated with the unfunded commitments are consistent with the risks outlined for each loan class. The allowance is recognized in accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition and is adjusted as a provision (reversal of provision) for credit losses on the Condensed Consolidated Statements of Income. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities available for sale | The following tables present the amortized cost and fair value of investment securities available for sale at the dates indicated and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss): March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 85,868 $ 1,314 $ (120 ) $ 87,062 Municipal securities 174,614 5,409 (415 ) 179,608 Mortgage-backed securities and collateralized mortgage obligations: Residential 313,710 9,204 (230 ) 322,684 Commercial 316,683 10,348 (1,275 ) 325,756 Corporate obligations 23,897 195 (260 ) 23,832 Other asset-backed securities (1) 23,056 — (906 ) 22,150 Total $ 937,828 $ 26,470 $ (3,206 ) $ 961,092 (1) Issued and guaranteed by U.S. Government-sponsored agencies. December 31, 2019 Amortized Gross Gross Fair (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 104,709 $ 598 $ (84 ) $ 105,223 Municipal securities 128,183 4,933 (102 ) 133,014 Mortgage-backed securities and collateralized mortgage obligations: Residential 336,929 3,184 (505 ) 339,608 Commercial 322,169 5,575 (649 ) 327,095 Corporate obligations 23,893 316 (15 ) 24,194 Other asset-backed securities (1) 23,277 54 (153 ) 23,178 Total $ 939,160 $ 14,660 $ (1,508 ) $ 952,312 (1) Issued and guaranteed by U.S. Government-sponsored agencies. |
Schedule of maturities of investment securities | The amortized cost and fair value of investment securities available for sale at March 31, 2020 , by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value (In thousands) Due in one year or less $ 33,547 $ 33,806 Due after one year through five years 162,455 166,232 Due after five years through ten years 255,123 263,149 Due after ten years 486,703 497,905 Total $ 937,828 $ 961,092 |
Schedule of fair value and unrealized losses of available for sale investment securities | The following tables show the gross unrealized losses and fair value of the Company's investment securities available for sale, for which an ACL has not been recorded, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of March 31, 2020 and December 31, 2019 : March 31, 2020 Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 5,880 $ (120 ) $ — $ — $ 5,880 $ (120 ) Municipal securities 27,434 (415 ) — — 27,434 (415 ) Mortgage-backed securities and collateralized mortgage obligations: Residential 2,045 (6 ) 27,992 (224 ) 30,037 (230 ) Commercial 32,562 (683 ) 25,485 (592 ) 58,047 (1,275 ) Corporate obligations 7,788 (240 ) 1,980 (20 ) 9,768 (260 ) Other asset-backed securities (1) 20,644 (848 ) 1,506 (58 ) 22,150 (906 ) Total $ 96,353 $ (2,312 ) $ 56,963 $ (894 ) $ 153,316 $ (3,206 ) (1) Issued and guaranteed by U.S. Government-sponsored agencies. December 31, 2019 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. Treasury and U.S. Government-sponsored agencies $ 45,999 $ (84 ) $ — $ — $ 45,999 $ (84 ) Municipal securities 13,761 (102 ) — — 13,761 (102 ) Mortgage-backed securities and collateralized mortgage obligations: Residential 14,272 (66 ) 60,232 (439 ) 74,504 (505 ) Commercial 56,263 (177 ) 43,623 (472 ) 99,886 (649 ) Corporate obligations 998 (2 ) 1,987 (13 ) 2,985 (15 ) Other asset-backed securities (1) 14,383 (127 ) 1,609 (26 ) 15,992 (153 ) Total $ 145,676 $ (558 ) $ 107,451 $ (950 ) $ 253,127 $ (1,508 ) (1) Issued and guaranteed by U.S. Government-sponsored agencies. |
Schedule of realized gains and losses on sale of securities available for sale | The following table presents the gross realized gains and losses on the sale of securities available for sale for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) Gross realized gains $ 1,028 $ 89 Gross realized losses (14 ) (74 ) Net realized gains $ 1,014 $ 15 |
Scheduled of amortized cost and fair value of securities pledged as collateral | The following table summarizes the amortized cost and fair value of investment securities available for sale that are pledged as collateral for the following obligations at March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state public deposits $ 179,570 $ 184,231 $ 187,700 $ 190,773 Securities sold under agreement to repurchase 26,420 26,473 22,156 22,294 Other securities pledged 21,164 22,214 19,333 19,850 Total $ 227,154 $ 232,918 $ 229,189 $ 232,917 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Lease Receivable Collateral for Secured Borrowings [Table Text Block] | he types of collateral securing loans individually evaluated for ACL on loans, and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of March 31, 2020 , were as follows: Loans receivable (1) at March 31, 2020 Commercial Real Estate Farmland Single Family Residence Equipment or Accounts Receivable Other Total (In thousands) Commercial business: Commercial and industrial $ 2,063 $ 19,350 $ 1,445 $ 2,232 $ 311 $ 25,401 Owner-occupied commercial real estate 3,106 — — — — 3,106 Non-owner occupied commercial real estate 5,794 — — — — 5,794 Total commercial business 10,963 19,350 1,445 2,232 311 34,301 One-to-four family residential — — 19 — — 19 Real estate construction and land development: One-to-four family residential — — 1,516 — — 1,516 Total $ 10,963 $ 19,350 $ 2,980 $ 2,232 $ 311 $ 35,836 (1) Balances represent the amortized cost of loans receivable at date indicated. If multiple collateral secured the loan, the entire loan receivable balance is presented in the primary collateral category, which generally represents the majority of the collateral balance. |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following table presents the amortized cost of loans receivable by risk grade as of March 31, 2020 : Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Loans Receivable (In thousands) As of March 31, 2020 Commercial business: Commercial and industrial Pass $ 24,236 $ 159,463 $ 91,045 $ 68,613 $ 52,123 $ 132,283 $ 271,477 $ 710 $ 799,950 SM 2,291 3,479 3,495 436 1,787 1,805 22,187 42 35,522 SS 106 9,482 4,758 8,578 2,427 13,712 14,807 343 54,213 Total 26,633 172,424 99,298 77,627 56,337 147,800 308,471 1,095 889,685 Owner-occupied properties Pass 21,643 144,743 100,332 98,228 85,554 314,552 — 1,056 766,108 SM 107 — — 2,073 1,897 13,268 — — 17,345 SS — — 117 4,731 2,010 15,325 — — 22,183 Total 21,750 144,743 100,449 105,032 89,461 343,145 — 1,056 805,636 Non-owner-occupied properties Pass 33,205 157,063 154,514 203,143 282,734 466,239 — — 1,296,898 SM — — — — 6,216 2,846 — — 9,062 SS — — 67 — — 6,281 — — 6,348 Total 33,205 157,063 154,581 203,143 288,950 475,366 — — 1,312,308 Total commercial business Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Loans Receivable (In thousands) Pass 79,084 461,269 345,891 369,984 420,411 913,074 271,477 1,766 2,862,956 SM 2,398 3,479 3,495 2,509 9,900 17,919 22,187 42 61,929 SS 106 9,482 4,942 13,309 4,437 35,318 14,807 343 82,744 Total 81,588 474,230 354,328 385,802 434,748 966,311 308,471 2,151 3,007,629 One-to-four family residential Pass 9,097 47,795 22,506 17,566 11,664 27,371 — — 135,999 SS — — — 63 124 596 — — 783 Total 9,097 47,795 22,506 17,629 11,788 27,967 — — 136,782 Real estate construction and land development : One-to-four family residential Pass 8,102 73,501 10,405 2,433 971 1,802 — — 97,214 SS — — — 1,516 — — — — 1,516 Total 8,102 73,501 10,405 3,949 971 1,802 — — 98,730 Five or more family residential and commercial properties Pass 13,994 97,928 65,440 6,978 880 2,592 — — 187,812 SM — — — — — 39 — — 39 SS — — — — — 453 — — 453 Total 13,994 97,928 65,440 6,978 880 3,084 — — 188,304 Total real estate and land development Pass 22,096 171,429 75,845 9,411 1,851 4,394 — — 285,026 SM — — — — — 39 — — 39 SS — — — 1,516 — 453 — — 1,969 Total 22,096 171,429 75,845 10,927 1,851 4,886 — — 287,034 Consumer Pass 27,777 102,909 74,043 45,472 22,957 27,370 116,302 87 416,917 SM — — — — — — — — — SS — 87 492 489 554 1,624 766 2 4,014 Total 27,777 102,996 74,535 45,961 23,511 28,994 117,068 89 420,931 Loans receivable Pass 138,054 783,402 518,285 442,433 456,883 972,209 387,779 1,853 3,700,898 SM 2,398 3,479 3,495 2,509 9,900 17,958 22,187 42 61,968 SS 106 9,569 5,434 15,377 5,115 37,991 15,573 345 89,510 Total $ 140,558 $ 796,450 $ 527,214 $ 460,319 $ 471,898 $ 1,028,158 $ 425,539 $ 2,240 $ 3,852,376 (1) Represents loans receivable balance at March 31, 2020 which was converted from a revolving loan to an amortizing loan during the three months ended March 31, 2020. The following table presents the amortized cost of loans receivable by credit quality indicator as of December 31, 2019 in accordance with pre-CECL disclosure requirements: December 31, 2019 Pass Special Mention Substandard Doubtful/Loss Total (In thousands) Commercial business: Commercial and industrial $ 771,559 $ 16,340 $ 64,321 $ — $ 852,220 Owner-occupied commercial real estate 765,411 24,659 15,164 — 805,234 Non-owner occupied commercial real estate 1,274,513 5,662 8,604 — 1,288,779 Total commercial business 2,811,483 46,661 88,089 — 2,946,233 One-to-four family residential 130,818 — 842 — 131,660 Real estate construction and land development: One-to-four family residential 101,973 1,516 807 — 104,296 Five or more family residential and commercial properties 169,668 682 — — 170,350 Total real estate construction and land development 271,641 2,198 807 — 274,646 Consumer 411,141 — 3,675 524 415,340 Gross loans receivable $ 3,625,083 $ 48,859 $ 93,413 $ 524 $ 3,767,879 March 31, 2020 and December 31, 2019 consisted of the following portfolio segments and classes: March 31, 2020 December 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 889,685 $ 852,220 Owner-occupied commercial real estate 805,636 805,234 Non-owner occupied commercial real estate 1,312,308 1,288,779 Total commercial business 3,007,629 2,946,233 One-to-four family residential 136,782 131,660 Real estate construction and land development: One-to-four family residential 98,730 104,296 Five or more family residential and commercial properties 188,304 170,350 Total real estate construction and land development 287,034 274,646 Consumer 420,931 415,340 Loans receivable 3,852,376 3,767,879 Allowance for credit losses on loans (47,540 ) (36,171 ) Loans receivable, net $ 3,804,836 $ 3,731,708 |
Financing Receivable, Past Due [Table Text Block] | he amortized cost of past due loans as of March 31, 2020 were as follows: March 31, 2020 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,632 $ 6,589 $ 9,221 $ 880,464 $ 889,685 Owner-occupied commercial real estate 353 490 843 804,793 805,636 Non-owner occupied commercial real estate 1,620 — 1,620 1,310,688 1,312,308 Total commercial business 4,605 7,079 11,684 2,995,945 3,007,629 One-to-four family residential 447 19 466 136,316 136,782 Real estate construction and land development: One-to-four family residential — — — 98,730 98,730 Five or more family residential and commercial properties — — — 188,304 188,304 Total real estate construction and land development — — — 287,034 287,034 Consumer 1,963 — 1,963 418,968 420,931 Total $ 7,015 $ 7,098 $ 14,113 $ 3,838,263 $ 3,852,376 The following table presents the amortized cost of past due loans as of December 31, 2019 in accordance with pre-CECL disclosure requirements: December 31, 2019 30-89 Days 90 Days or Greater Total Past Due Current Total PCI Loans Loan Receivable (In thousands) Commercial business: Commercial and industrial $ 10,479 $ 6,772 $ 17,251 $ 832,601 $ 849,852 $ 2,368 $ 852,220 Owner-occupied commercial real estate 607 806 1,413 798,907 800,320 4,914 805,234 Non-owner occupied commercial real estate 554 1,843 2,397 1,280,891 1,283,288 5,491 1,288,779 Total commercial business 11,640 9,421 21,061 2,912,399 2,933,460 12,773 2,946,233 One-to-four family residential 797 — 797 127,288 128,085 3,575 131,660 Real estate construction and land development: One-to-four family residential 1,516 — 1,516 102,780 104,296 — 104,296 Five or more family residential and commercial properties — — — 170,350 170,350 — 170,350 Total real estate construction and land development 1,516 — 1,516 273,130 274,646 — 274,646 Consumer 2,071 — 2,071 411,507 413,578 1,762 415,340 Total $ 16,024 $ 9,421 $ 25,445 $ 3,724,324 $ 3,749,769 $ 18,110 $ 3,767,879 |
Schedule of Impaired Purchased Loans Accretable Yield [Table Text Block] | he following table summarizes the accretable yield on the PCI loans for the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (In thousands) Balance at the beginning of the period $ 9,493 Accretion (581 ) Disposal and other (452 ) Balance at the end of the period $ 8,460 |
Financing Receivables [Text Block] | Loans Receivable (a) Loan Origination/Risk Management The Company originates loans in the ordinary course of business and has also acquired loans through mergers and acquisitions. Accrued interest receivable was excluded from disclosures presenting the Company's amortized cost of loans receivable as it was deemed insignificant. Accrued interest receivable on loans totaled $11.1 million and $10.7 million at March 31, 2020 and December 31, 2019 , respectively. The Company categorizes loans in one of the four segments of the total loan portfolio: commercial business, one-to-four family residential, real estate construction and land development and consumer. Within these segments are classes of loans for which management monitors and assesses credit risk in the loan portfolios. A detailed description of the portfolio segments and classes is contained in the 2019 Annual Form 10-K. The Company adopted ASU 2016-13 effective January 1, 2020, which increased the beginning ACL on loans as discussed in Note (4) Allowance for Credit Losses on Loans. The amortized cost of loans receivable, net of ACL at March 31, 2020 and December 31, 2019 consisted of the following portfolio segments and classes: March 31, 2020 December 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 889,685 $ 852,220 Owner-occupied commercial real estate 805,636 805,234 Non-owner occupied commercial real estate 1,312,308 1,288,779 Total commercial business 3,007,629 2,946,233 One-to-four family residential 136,782 131,660 Real estate construction and land development: One-to-four family residential 98,730 104,296 Five or more family residential and commercial properties 188,304 170,350 Total real estate construction and land development 287,034 274,646 Consumer 420,931 415,340 Loans receivable 3,852,376 3,767,879 Allowance for credit losses on loans (47,540 ) (36,171 ) Loans receivable, net $ 3,804,836 $ 3,731,708 (b) Concentrations of Credit As of March 31, 2020 , and December 31, 2019 , there were no concentrations of loans related to any single industry in excess of 10% of the Company’s total loans. (c) Credit Quality Indicators As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade of the loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions of the United States of America and specifically the states of Washington and Oregon. The Company utilizes a risk grading matrix to assign a risk grade to each loan on a numerical scale of 1 to 10. Risk grades are aggregated to create the risk categories of "Pass" for grades 1 to 6, "Special Mention" ("SM") for grade 7, "Substandard" ("SS") for grade 8, "Doubtful" for grade 9 and "Loss" for grade 10. Descriptions of the general characteristics of the risk grades, including qualitative information on how the risk grades relate to the risk of loss, are contained in the 2019 Annual Form 10-K. Numerical loan grades for loans are established at the origination of the loan. Changes to loan grades are considered at the time new information about the performance of a loan becomes available, including the receipt of updated financial information from the borrower, and scheduled loan reviews performed by the Bank’s internal Loan Review department. For consumer loans, the Bank follows the FDIC’s Uniform Retail Credit Classification and Account Management Policy for subsequent classification in the event of payment delinquencies or default. Typically, an individual loan grade will not be changed from the prior period unless there is a specific indication of credit deterioration or improvement. Credit deterioration is evidenced by delinquency, direct communications with the borrower, or other borrower information that becomes known to management. Credit improvements are evidenced by known facts regarding the borrower or the collateral property. The following table presents the amortized cost of loans receivable by risk grade as of March 31, 2020 : Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Loans Receivable (In thousands) As of March 31, 2020 Commercial business: Commercial and industrial Pass $ 24,236 $ 159,463 $ 91,045 $ 68,613 $ 52,123 $ 132,283 $ 271,477 $ 710 $ 799,950 SM 2,291 3,479 3,495 436 1,787 1,805 22,187 42 35,522 SS 106 9,482 4,758 8,578 2,427 13,712 14,807 343 54,213 Total 26,633 172,424 99,298 77,627 56,337 147,800 308,471 1,095 889,685 Owner-occupied properties Pass 21,643 144,743 100,332 98,228 85,554 314,552 — 1,056 766,108 SM 107 — — 2,073 1,897 13,268 — — 17,345 SS — — 117 4,731 2,010 15,325 — — 22,183 Total 21,750 144,743 100,449 105,032 89,461 343,145 — 1,056 805,636 Non-owner-occupied properties Pass 33,205 157,063 154,514 203,143 282,734 466,239 — — 1,296,898 SM — — — — 6,216 2,846 — — 9,062 SS — — 67 — — 6,281 — — 6,348 Total 33,205 157,063 154,581 203,143 288,950 475,366 — — 1,312,308 Total commercial business Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans (1) Loans Receivable (In thousands) Pass 79,084 461,269 345,891 369,984 420,411 913,074 271,477 1,766 2,862,956 SM 2,398 3,479 3,495 2,509 9,900 17,919 22,187 42 61,929 SS 106 9,482 4,942 13,309 4,437 35,318 14,807 343 82,744 Total 81,588 474,230 354,328 385,802 434,748 966,311 308,471 2,151 3,007,629 One-to-four family residential Pass 9,097 47,795 22,506 17,566 11,664 27,371 — — 135,999 SS — — — 63 124 596 — — 783 Total 9,097 47,795 22,506 17,629 11,788 27,967 — — 136,782 Real estate construction and land development : One-to-four family residential Pass 8,102 73,501 10,405 2,433 971 1,802 — — 97,214 SS — — — 1,516 — — — — 1,516 Total 8,102 73,501 10,405 3,949 971 1,802 — — 98,730 Five or more family residential and commercial properties Pass 13,994 97,928 65,440 6,978 880 2,592 — — 187,812 SM — — — — — 39 — — 39 SS — — — — — 453 — — 453 Total 13,994 97,928 65,440 6,978 880 3,084 — — 188,304 Total real estate and land development Pass 22,096 171,429 75,845 9,411 1,851 4,394 — — 285,026 SM — — — — — 39 — — 39 SS — — — 1,516 — 453 — — 1,969 Total 22,096 171,429 75,845 10,927 1,851 4,886 — — 287,034 Consumer Pass 27,777 102,909 74,043 45,472 22,957 27,370 116,302 87 416,917 SM — — — — — — — — — SS — 87 492 489 554 1,624 766 2 4,014 Total 27,777 102,996 74,535 45,961 23,511 28,994 117,068 89 420,931 Loans receivable Pass 138,054 783,402 518,285 442,433 456,883 972,209 387,779 1,853 3,700,898 SM 2,398 3,479 3,495 2,509 9,900 17,958 22,187 42 61,968 SS 106 9,569 5,434 15,377 5,115 37,991 15,573 345 89,510 Total $ 140,558 $ 796,450 $ 527,214 $ 460,319 $ 471,898 $ 1,028,158 $ 425,539 $ 2,240 $ 3,852,376 (1) Represents loans receivable balance at March 31, 2020 which was converted from a revolving loan to an amortizing loan during the three months ended March 31, 2020. The following table presents the amortized cost of loans receivable by credit quality indicator as of December 31, 2019 in accordance with pre-CECL disclosure requirements: December 31, 2019 Pass Special Mention Substandard Doubtful/Loss Total (In thousands) Commercial business: Commercial and industrial $ 771,559 $ 16,340 $ 64,321 $ — $ 852,220 Owner-occupied commercial real estate 765,411 24,659 15,164 — 805,234 Non-owner occupied commercial real estate 1,274,513 5,662 8,604 — 1,288,779 Total commercial business 2,811,483 46,661 88,089 — 2,946,233 One-to-four family residential 130,818 — 842 — 131,660 Real estate construction and land development: One-to-four family residential 101,973 1,516 807 — 104,296 Five or more family residential and commercial properties 169,668 682 — — 170,350 Total real estate construction and land development 271,641 2,198 807 — 274,646 Consumer 411,141 — 3,675 524 415,340 Gross loans receivable $ 3,625,083 $ 48,859 $ 93,413 $ 524 $ 3,767,879 Potential problem loans are loans classified as Special Mention or worse that are not classified as a TDR or nonaccrual loan and are not individually evaluated for credit loss, but which management is closely monitoring because the financial information of the borrower causes concern as to their ability to meet their loan repayment terms. Potential problem loans as of March 31, 2020 and December 31, 2019 were $102.2 million and $87.8 million , respectively. (d) Nonaccrual Loans The following table presents the amortized cost of nonaccrual loans for the dates indicated: March 31, 2020 December 31, 2019 Nonaccrual with No ACL Nonaccrual with ACL Total Nonaccrual (1) Nonaccrual (2) (In thousands) Commercial business: Commercial and industrial $ 24,068 $ 2,019 $ 26,087 $ 33,544 Owner-occupied commercial real estate 3,103 888 3,991 4,714 Non-owner occupied commercial real estate 3,830 — 3,830 6,062 Total commercial business 31,001 2,907 33,908 44,320 One-to-four family residential 19 144 163 19 Consumer — 92 92 186 Total $ 31,020 $ 3,143 $ 34,163 $ 44,525 (1) At March 31, 2020, nonaccrual loans includes $2.5 million of PCD loans, of which $565,000 were classified as nonaccrual congruent with CECL adoption. Prior to the adoption of CECL, nonaccrual loans excluded pooled PCI loans as the Company recognized interest income on each pool of PCI loans as each of the pools was performing. (2) Presentation of December 31, 2019 balances is in accordance with pre-CECL disclosure requirements. The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full of previously classified nonaccrual loans during the following period: For the Three Months Ended March 31, 2020 Interest Income Reversed Interest Income Recognized (In thousands) Commercial business: Commercial and industrial $ (16 ) $ 219 Owner-occupied commercial real estate — 46 Non-owner occupied commercial real estate — 45 Total commercial business (16 ) 310 Consumer — 10 Total $ (16 ) $ 320 For the three months ended March 31, 2020 and 2019, no interest income was recognized subsequent to a loan’s classification as nonaccrual, except as indicated in the table above. (e) Past due loans The Company performs an aging analysis of past due loans using policies consistent with regulatory reporting requirements with categories of 30-89 days past due and 90 or more days past due. The amortized cost of past due loans as of March 31, 2020 were as follows: March 31, 2020 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,632 $ 6,589 $ 9,221 $ 880,464 $ 889,685 Owner-occupied commercial real estate 353 490 843 804,793 805,636 Non-owner occupied commercial real estate 1,620 — 1,620 1,310,688 1,312,308 Total commercial business 4,605 7,079 11,684 2,995,945 3,007,629 One-to-four family residential 447 19 466 136,316 136,782 Real estate construction and land development: One-to-four family residential — — — 98,730 98,730 Five or more family residential and commercial properties — — — 188,304 188,304 Total real estate construction and land development — — — 287,034 287,034 Consumer 1,963 — 1,963 418,968 420,931 Total $ 7,015 $ 7,098 $ 14,113 $ 3,838,263 $ 3,852,376 The following table presents the amortized cost of past due loans as of December 31, 2019 in accordance with pre-CECL disclosure requirements: December 31, 2019 30-89 Days 90 Days or Greater Total Past Due Current Total PCI Loans Loan Receivable (In thousands) Commercial business: Commercial and industrial $ 10,479 $ 6,772 $ 17,251 $ 832,601 $ 849,852 $ 2,368 $ 852,220 Owner-occupied commercial real estate 607 806 1,413 798,907 800,320 4,914 805,234 Non-owner occupied commercial real estate 554 1,843 2,397 1,280,891 1,283,288 5,491 1,288,779 Total commercial business 11,640 9,421 21,061 2,912,399 2,933,460 12,773 2,946,233 One-to-four family residential 797 — 797 127,288 128,085 3,575 131,660 Real estate construction and land development: One-to-four family residential 1,516 — 1,516 102,780 104,296 — 104,296 Five or more family residential and commercial properties — — — 170,350 170,350 — 170,350 Total real estate construction and land development 1,516 — 1,516 273,130 274,646 — 274,646 Consumer 2,071 — 2,071 411,507 413,578 1,762 415,340 Total $ 16,024 $ 9,421 $ 25,445 $ 3,724,324 $ 3,749,769 $ 18,110 $ 3,767,879 There were no loans 90 days or more past due that were still accruing interest as of March 31, 2020 or December 31, 2019 . (f) Collateral-dependent Loans The types of collateral securing loans individually evaluated for ACL on loans, and for which the repayment was expected to be provided substantially through the operation or sale of the collateral as of March 31, 2020 , were as follows: Loans receivable (1) at March 31, 2020 Commercial Real Estate Farmland Single Family Residence Equipment or Accounts Receivable Other Total (In thousands) Commercial business: Commercial and industrial $ 2,063 $ 19,350 $ 1,445 $ 2,232 $ 311 $ 25,401 Owner-occupied commercial real estate 3,106 — — — — 3,106 Non-owner occupied commercial real estate 5,794 — — — — 5,794 Total commercial business 10,963 19,350 1,445 2,232 311 34,301 One-to-four family residential — — 19 — — 19 Real estate construction and land development: One-to-four family residential — — 1,516 — — 1,516 Total $ 10,963 $ 19,350 $ 2,980 $ 2,232 $ 311 $ 35,836 (1) Balances represent the amortized cost of loans receivable at date indicated. If multiple collateral secured the loan, the entire loan receivable balance is presented in the primary collateral category, which generally represents the majority of the collateral balance. Under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans, comparative disclosures of collateral-dependent loans as of December 31, 2019 and for the three months ended March 31, 2019 are similar to the disclosures for impaired loans. Impaired loans include nonaccrual loans, performing TDR loans, and other loans with a specific valuation allowance, excluding PCI loans. The amortized cost of impaired loans as of December 31, 2019 are set forth in the following table: December 31, 2019 Amortized Cost With No Specific Valuation Allowance Amortized Cost With Specific Valuation Allowance Total Amortized Cost Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 30,179 $ 13,629 $ 43,808 $ 45,585 $ 1,372 Owner-occupied commercial real estate 3,921 2,415 6,336 6,764 426 Non-owner occupied commercial real estate 5,309 1,015 6,324 6,458 146 Total commercial business 39,409 17,059 56,468 58,807 1,944 One-to-four family residential — 215 215 223 56 Real estate construction and land development: One-to-four family residential 237 — 237 237 — Consumer — 561 561 570 143 Total $ 39,646 $ 17,835 $ 57,481 $ 59,837 $ 2,143 The average amortized cost of impaired loans for the three months ended March 31, 2019 are set forth in the following table: Three Months Ended March 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 22,639 Owner-occupied commercial real estate 5,935 Non-owner occupied commercial real estate 6,619 Total commercial business 35,193 One-to-four family residential 277 Real estate construction and land development: One-to-four family residential 911 Consumer 562 Total $ 36,943 (g) Troubled Debt Restructured Loans The amortized cost and related ACL on loans of performing and nonaccrual TDR loans as of March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Performing TDR loans Nonaccrual TDR loans Performing TDR loans Nonaccrual TDR loans (In thousands) TDR loans $ 19,309 $ 19,980 $ 14,469 $ 26,338 ACL on TDR loans 1,519 223 1,259 218 The unfunded commitment to borrowers related to TDR loans was $3.0 million and $736,000 at March 31, 2020 and December 31, 2019 , respectively. Loans that were modified as TDR loans during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Amortized Cost (1) Number of Amortized Cost (1) (Dollars in thousands) Commercial business: Commercial and industrial 14 $ 4,950 9 $ 10,100 Owner-occupied commercial real estate 4 2,183 2 934 Non-owner occupied commercial real estate 3 2,210 1 2,112 Total commercial business 21 9,343 12 13,146 Real estate construction and land development: One-to-four family residential 4 1,516 2 665 Consumer 5 93 6 122 Total 30 $ 10,952 20 $ 13,933 (1) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification). The tables above includes 11 loans for both the three months ended March 31, 2020 and 2019 that were previously reported as TDR loans. The Bank typically grants shorter extension periods to continually monitor these TDR loans despite the fact that the extended date might not be the date the Bank expects sufficient cash flow from these borrowers. The Bank does not consider these modifications a subsequent default of a TDR as new loan terms, specifically new maturity dates, were granted. Of the remaining first-reported TDR loans, the concessions granted largely consisted of maturity extensions, interest rate modifications or a combination of both. The potential losses related to TDR loans are considered in the period the loan was first reported as a TDR loan and are adjusted, as necessary, in the current period based on more recent information. The related ACL at March 31, 2020 for loans that were modified as TDR loans during the three months ended March 31, 2020 was $768,000 . Loans that were modified during the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Contracts Amortized Cost Number of Amortized Cost (Dollars in thousands) Commercial business: Commercial and industrial 2 $ 1,873 1 $ 829 Owner-occupied properties — — 1 717 Non-owner occupied commercial real estate 3 590 1 601 Total 5 $ 2,463 3 $ 2,147 During the three months ended March 31, 2020 and 2019 , all of these loans defaulted because each was past its modified maturity date and the borrower has not subsequently repaid the credits. The Bank has chosen not to extend further the maturity date on these loans. The Bank had ACL of $334,000 at March 31, 2020 related to these TDR loans which defaulted during the three months ended March 31, 2020. For the three months ended March 31, 2020 and 2019 , the Bank recorded $608,000 and $301,000 , respectively, of interest income related to performing TDR loans. (h) Purchased Credit Impaired Loans Upon adoption of CECL, the Company transitioned PCI loans to PCD loans. The following table reflects the outstanding principal balance and recorded investment of PCI loans at December 31, 2019 : December 31, 2019 Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 4,439 $ 2,368 Owner-occupied commercial real estate 4,925 4,914 Non-owner occupied commercial real estate 7,028 5,491 Total commercial business 16,392 12,773 One-to-four family residential 3,095 3,575 Consumer 1,463 1,762 Gross PCI loans $ 20,950 $ 18,110 On the acquisition dates, the amount by which the undiscounted expected cash flows of the PCI loans exceeded the estimated fair value of the loan is the “accretable yield.” The accretable yield is then measured at each financial reporting date and represents the difference between the remaining undiscounted expected cash flows and the current carrying value of the PCI loans. The following table summarizes the accretable yield on the PCI loans for the three months ended March 31, 2019 : Three Months Ended March 31, 2019 (In thousands) Balance at the beginning of the period $ 9,493 Accretion (581 ) Disposal and other (452 ) Balance at the end of the period $ 8,460 |
Impaired Financing Receivables [Table Text Block] | mpaired loans include nonaccrual loans, performing TDR loans, and other loans with a specific valuation allowance, excluding PCI loans. The amortized cost of impaired loans as of December 31, 2019 are set forth in the following table: December 31, 2019 Amortized Cost With No Specific Valuation Allowance Amortized Cost With Specific Valuation Allowance Total Amortized Cost Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 30,179 $ 13,629 $ 43,808 $ 45,585 $ 1,372 Owner-occupied commercial real estate 3,921 2,415 6,336 6,764 426 Non-owner occupied commercial real estate 5,309 1,015 6,324 6,458 146 Total commercial business 39,409 17,059 56,468 58,807 1,944 One-to-four family residential — 215 215 223 56 Real estate construction and land development: One-to-four family residential 237 — 237 237 — Consumer — 561 561 570 143 Total $ 39,646 $ 17,835 $ 57,481 $ 59,837 $ 2,143 |
Schedule of nonaccrual loans | he following table presents the amortized cost of nonaccrual loans for the dates indicated: March 31, 2020 December 31, 2019 Nonaccrual with No ACL Nonaccrual with ACL Total Nonaccrual (1) Nonaccrual (2) (In thousands) Commercial business: Commercial and industrial $ 24,068 $ 2,019 $ 26,087 $ 33,544 Owner-occupied commercial real estate 3,103 888 3,991 4,714 Non-owner occupied commercial real estate 3,830 — 3,830 6,062 Total commercial business 31,001 2,907 33,908 44,320 One-to-four family residential 19 144 163 19 Consumer — 92 92 186 Total $ 31,020 $ 3,143 $ 34,163 $ 44,525 (1) At March 31, 2020, nonaccrual loans includes $2.5 million of PCD loans, of which $565,000 were classified as nonaccrual congruent with CECL adoption. Prior to the adoption of CECL, nonaccrual loans excluded pooled PCI loans as the Company recognized interest income on each pool of PCI loans as each of the pools was performing. (2) Presentation of December 31, 2019 balances is in accordance with pre-CECL disclosure requirements. The following table presents the reversal of interest income on loans due to the write-off of accrued interest receivable upon the initial classification of loans as nonaccrual loans and the interest income recognized due to payment in full of previously classified nonaccrual loans during the following period: For the Three Months Ended March 31, 2020 Interest Income Reversed Interest Income Recognized (In thousands) Commercial business: Commercial and industrial $ (16 ) $ 219 Owner-occupied commercial real estate — 46 Non-owner occupied commercial real estate — 45 Total commercial business (16 ) 310 Consumer — 10 Total $ (16 ) $ 320 For the three months ended March 31, 2020 and 2019, no interest income was recognized subsequent to a loan’s classification as nonaccrual, except as indicated in the table above. |
Schedule of average recorded investment impaired loans including restructuring loans | he average amortized cost of impaired loans for the three months ended March 31, 2019 are set forth in the following table: Three Months Ended March 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 22,639 Owner-occupied commercial real estate 5,935 Non-owner occupied commercial real estate 6,619 Total commercial business 35,193 One-to-four family residential 277 Real estate construction and land development: One-to-four family residential 911 Consumer 562 Total $ 36,943 |
Recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs | he amortized cost and related ACL on loans of performing and nonaccrual TDR loans as of March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 December 31, 2019 Performing TDR loans Nonaccrual TDR loans Performing TDR loans Nonaccrual TDR loans (In thousands) TDR loans $ 19,309 $ 19,980 $ 14,469 $ 26,338 ACL on TDR loans 1,519 223 1,259 218 |
Troubled debt restructurings on financing receivables | oans that were modified as TDR loans during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Amortized Cost (1) Number of Amortized Cost (1) (Dollars in thousands) Commercial business: Commercial and industrial 14 $ 4,950 9 $ 10,100 Owner-occupied commercial real estate 4 2,183 2 934 Non-owner occupied commercial real estate 3 2,210 1 2,112 Total commercial business 21 9,343 12 13,146 Real estate construction and land development: One-to-four family residential 4 1,516 2 665 Consumer 5 93 6 122 Total 30 $ 10,952 20 $ 13,933 (1) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modifications, the Bank’s amortized cost in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification). |
Troubled debt restructuring loans, subsequently defaulted | oans that were modified during the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 and 2019 are set forth in the following table: Three Months Ended March 31, 2020 2019 Number of Contracts Amortized Cost Number of Amortized Cost (Dollars in thousands) Commercial business: Commercial and industrial 2 $ 1,873 1 $ 829 Owner-occupied properties — — 1 717 Non-owner occupied commercial real estate 3 590 1 601 Total 5 $ 2,463 3 $ 2,147 |
Purchased impaired loans | he following table reflects the outstanding principal balance and recorded investment of PCI loans at December 31, 2019 : December 31, 2019 Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 4,439 $ 2,368 Owner-occupied commercial real estate 4,925 4,914 Non-owner occupied commercial real estate 7,028 5,491 Total commercial business 16,392 12,773 One-to-four family residential 3,095 3,575 Consumer 1,463 1,762 Gross PCI loans $ 20,950 $ 18,110 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of changes in allowance for loan losses | The following table details activity in the allowance for loan losses disaggregated by segment and class for the three months ended March 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Three Months Ended March 31, 2019 Beginning Balance Charge-offs Recoveries Provision for Loan Losses Ending Balance (In thousands) Commercial business: Commercial and industrial $ 11,343 $ (103 ) $ 7 $ 508 $ 11,755 Owner-occupied commercial real estate 4,898 — 3 355 5,256 Non-owner occupied commercial real estate 7,470 — 149 206 7,825 Total commercial business 23,711 (103 ) 159 1,069 24,836 One-to-four family residential 1,203 (15 ) — 59 1,247 Real estate construction and land development: One-to-four family residential 1,240 — 618 (436 ) 1,422 Five or more family residential and commercial properties 954 — — 41 995 Total real estate construction and land development 2,194 — 618 (395 ) 2,417 Consumer 6,581 (586 ) 117 368 6,480 Unallocated 1,353 — — (181 ) 1,172 Total $ 35,042 $ (704 ) $ 894 $ 920 $ 36,152 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,372 $ 9,772 $ 595 $ 11,739 Owner-occupied commercial real estate 426 3,558 528 4,512 Non-owner occupied commercial real estate 146 7,064 472 7,682 Total commercial business 1,944 20,394 1,595 23,933 One-to-four family residential 56 1,316 86 1,458 Real estate construction and land development: One-to-four family residential — 1,296 159 1,455 Five or more family residential and commercial properties — 1,527 78 1,605 Total real estate construction and land development — 2,823 237 3,060 Consumer 143 6,327 351 6,821 Unallocated — 899 — 899 Total $ 2,143 $ 31,759 $ 2,269 $ 36,171 The following table details the activity in the ACL on loans disaggregated by segment and class for the three months ended March 31, 2020 : Three Months Ended March 31, 2020 Beginning Balance Impact of CECL Adoption Beginning Balance, as Adjusted Charge-offs Recoveries Provision for Credit Losses Ending Balance (In thousands) Commercial business: Commercial and industrial $ 11,739 $ (1,348 ) $ 10,391 $ (1,087 ) $ 1,057 $ 3,539 $ 13,900 Owner-occupied commercial real estate 4,512 452 4,964 (135 ) 12 1,375 6,216 Non-owner occupied commercial real estate 7,682 (2,039 ) 5,643 — — 2,107 7,750 Total commercial business 23,933 (2,935 ) 20,998 (1,222 ) 1,069 7,021 27,866 One-to-four family residential 1,458 1,471 2,929 — 3 94 3,026 Real estate construction and land development: One-to-four family residential 1,455 (571 ) 884 — 14 (34 ) 864 Five or more family residential and commercial properties 1,605 7,240 8,845 — — 2,599 11,444 Total real estate construction and land development 3,060 6,669 9,729 — 14 2,565 12,308 Consumer 6,821 (2,484 ) 4,337 (375 ) 94 284 4,340 Unallocated 899 (899 ) — — — — — Total $ 36,171 $ 1,822 $ 37,993 $ (1,597 ) $ 1,180 $ 9,964 $ 47,540 |
Schedule of loan receivables on the basis of impairment method | The following table details the amortized cost of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 43,808 $ 806,044 $ 2,368 $ 852,220 Owner-occupied commercial real estate 6,336 793,984 4,914 805,234 Non-owner occupied commercial real estate 6,324 1,276,964 5,491 1,288,779 Total commercial business 56,468 2,876,992 12,773 2,946,233 One-to-four family residential 215 127,870 3,575 131,660 Real estate construction and land development: — — — One-to-four family residential 237 104,059 — 104,296 Five or more family residential and commercial properties — 170,350 — 170,350 Total real estate construction and land development 237 274,409 — 274,646 Consumer 561 413,017 1,762 415,340 Total $ 57,481 $ 3,692,288 $ 18,110 $ 3,767,879 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate [Abstract] | |
Changes in other real estate owned | Changes in other real estate owned during the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended 2020 2019 (In thousands) Balance at the beginning of the period $ 841 $ 1,983 Additions 270 — Proceeds from dispositions (266 ) (79 ) Loss on sales, net (4 ) — Balance at the end of the period $ 841 $ 1,904 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in goodwill | The following table presents the change in other intangible assets for the periods indicated: Three Months Ended March 31, 2020 2019 (In thousands) Balance at the beginning of the period $ 16,613 $ 20,614 Amortization (903 ) (1,025 ) Balance at the end of the period $ 15,710 $ 19,589 |
Change in other intangible assets | The following table presents the change in other intangible assets for the periods indicated: Three Months Ended March 31, 2020 2019 (In thousands) Balance at the beginning of the period $ 16,613 $ 20,614 Amortization (903 ) (1,025 ) Balance at the end of the period $ 15,710 $ 19,589 |
Junior Subordinated Debentures
Junior Subordinated Debentures (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of weighted average rate of junior subordinated debentures | The following table presents the weighted average rate of the junior subordinated debentures for the periods indicated: Three Months Ended March 31, 2020 2019 Weighted average rate (1) 5.56 % 7.06 % (1) The weighted average rate includes the accretion of the discount established at the merger date which is amortized over the life of the trust preferred securities. |
Securities Sold Under Agreeme_2
Securities Sold Under Agreement to Repurchase (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure of Repurchase Agreements [Abstract] | |
Repurchase agreement obligations by class of collateral pledged | The following table presents the Company's securities sold under agreement to repurchase obligations by class of collateral pledged at the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Mortgage-backed securities and collateralized mortgage obligations (1) : Residential $ 2,621 $ 8,452 Commercial 9,171 11,717 Securities sold under agreement to repurchase $ 11,792 $ 20,169 (1) Issued and guaranteed by U.S. Government-sponsored agencies. |
Other Borrowings (Tables)
Other Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of FHLB advances | The following table sets forth the details of FHLB advances during the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) FHLB Advances: Average balance during the period $ 989 $ 1,849 Maximum month-end balance during the period $ — $ 25,000 Weighted average rate during the period 0.41 % 3.29 % |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amounts and estimated fair values of interest rate derivative contracts | The following table presents the notional amounts and estimated fair values of interest rate derivative contracts outstanding at March 31, 2020 and December 31, 2019 : March 31, 2020 December 31, 2019 Notional Amounts Estimated Fair Value Notional Amounts Estimated Fair Value (In thousands) Non-hedging interest rate derivatives Interest rate swap asset (1) $ 233,014 $ 28,075 $ 221,436 $ 8,318 Interest rate swap liability (1) 223,014 (28,075 ) 221,436 (8,318 ) (1) The estimated fair value of derivatives with customers was $49,000 and $8.1 million as of March 31, 2020 and December 31, 2019 , respectively. The estimated fair value of derivatives with third parties was $(49,000) and $(8.1) million as of March 31, 2020 and December 31, 2019 , respectively. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of earnings per share reconciliation | The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In thousands) Net income: Net income $ 12,191 $ 16,552 Dividends and undistributed earnings allocated to participating securities (1) (6 ) (27 ) Net income allocated to common shareholders $ 12,185 $ 16,525 Basic: Weighted average common shares outstanding 36,357,812 36,881,499 Restricted stock awards (15,722 ) (55,967 ) Total basic weighted average common shares outstanding 36,342,090 36,825,532 Diluted: Basic weighted average common shares outstanding 36,342,090 36,825,532 Effect of potentially dilutive common shares (2) 254,551 185,108 Total diluted weighted average common shares outstanding 36,596,641 37,010,640 (1) Represents dividends paid and undistributed earnings allocated to nonvested restricted stock awards. (2) Represents the effect of the assumed exercise of stock options and vesting of restricted stock awards and units. |
Schedule of dividends activity | The following table summarizes the dividend activity for the three months ended March 31, 2020 and calendar year 2019 : Declared Cash Dividend per Share Record Date Paid Date January 23, 2019 $0.18 February 7, 2019 February 21, 2019 April 24, 2019 $0.18 May 8, 2019 May 22, 2019 July 24, 2019 $0.19 August 8, 2019 August 22, 2019 October 23, 2019 $0.19 November 7, 2019 November 21, 2019 October 23, 2019 $0.10 November 7, 2019 November 21, 2019 * January 22, 2020 $0.20 February 6, 2020 February 20, 2020 * Denotes a special dividend. |
Schedule of repurchased shares | The following table provides total repurchased shares for the periods indicated: Three Months Ended March 31, 2020 2019 Repurchased shares to pay withholding taxes 25,882 25,854 Stock repurchase to pay withholding taxes average share price $ 21.79 $ 31.01 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive (loss) income (AOCI) by component | The changes in AOCI, all of which are due to changes in the fair value of available for sale securities and are net of tax, during the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 (In thousands) Balance of AOCI at the beginning of period $ 10,378 $ (7,455 ) Other comprehensive income before reclassification 8,707 8,028 Amounts reclassified from AOCI for gain on sale of investment securities included in net income (793 ) (12 ) Net current period other comprehensive income 7,914 8,016 Balance of AOCI at the end of period $ 18,292 $ 561 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets on a recurring basis | The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 : March 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 87,062 $ — $ 87,062 $ — Municipal securities 179,608 850 178,758 — Mortgage-backed securities and collateralized mortgage obligations: Residential 322,684 — 322,684 — Commercial 325,756 — 325,756 — Corporate obligations 23,832 — 23,832 — Other asset-backed securities 22,150 — 22,150 — Total investment securities available for sale 961,092 850 960,242 — Equity security 96 96 — — Derivative assets - interest rate swaps 28,075 — 28,075 — Liabilities Derivative liabilities - interest rate swaps $ 28,075 $ — $ 28,075 $ — December 31, 2019 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 105,223 $ — $ 105,223 $ — Municipal securities 133,014 — 133,014 — Mortgage-backed securities and collateralized mortgage obligations: Residential 339,608 — 339,608 — Commercial 327,095 — 327,095 — Corporate obligations 24,194 — 24,194 — Other asset-backed securities 23,178 — 23,178 — Total investment securities available for sale 952,312 — 952,312 — Equity Security 148 148 — — Derivative assets - interest rate swaps 8,318 — 8,318 — Liabilities Derivative liabilities - interest rate swaps $ 8,318 $ — $ 8,318 $ — |
Fair value measurements of assets on a nonrecurring basis | The following tables below represent assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019 and the net losses recorded in earnings during three months ended March 31, 2020 and 2019 : Basis (1) Fair Value at March 31, 2020 Total Level 1 Level 2 Level 3 Net Losses (In thousands) Collateral-dependent loans: Commercial business: Commercial and industrial $ 374 $ 335 $ — $ — $ 335 $ 5 Total assets measured at fair value on a nonrecurring basis $ 374 $ 335 $ — $ — $ 335 $ 5 (1) Basis represents the unpaid principal balance of impaired loans. Excludes loans whose fair value was determined to be $0. Basis (1) Fair Value at December 31, 2019 Total Level 1 Level 2 Level 3 Net Losses Recorded in Earnings During the Three Months Ended March 31, 2019 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 4,111 $ 3,380 $ — $ — $ 3,380 $ — Total assets measured at fair value on a nonrecurring basis $ 4,111 $ 3,380 $ — $ — $ 3,380 $ — (1) Basis represents the unpaid principal balance of impaired loans. |
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2020 and December 31, 2019 : March 31, 2020 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Collateral-dependent loans $ 335 Market approach Adjustment for differences between the comparable sales N/A (1) (1) Quantitative disclosures are not provided for collateral-dependent impaired loans because there were no adjustments made to the appraisal or stated values during the current period. December 31, 2019 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans $ 3,380 Market approach Adjustment for differences between the comparable sales 173.5% - (18.5%); 36.8% |
Schedule of carrying value and fair value of financial instruments | he following tables present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at March 31, 2020 and December 31, 2019 : March 31, 2020 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 162,913 $ — $ 162,913 $ — $ — Investment securities available for sale 961,092 961,092 850 960,242 — Loans held for sale 3,808 3,935 — — 3,935 Loans receivable, net 3,804,836 3,851,281 — — 3,851,281 Accrued interest receivable 14,940 14,940 1 3,851 11,088 Derivative assets - interest rate swaps 28,075 28,075 — 28,075 — Equity security 96 96 96 — — Financial Liabilities: Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts $ 4,091,959 $ 4,091,959 $ 4,091,959 $ — $ — Certificate of deposit accounts 525,989 530,580 — 530,580 — Securities sold under agreement to repurchase 11,792 11,792 11,792 — — Junior subordinated debentures 20,668 17,750 — — 17,750 Accrued interest payable 154 154 69 59 26 Derivative liabilities - interest rate swaps 28,075 28,075 — 28,075 — December 31, 2019 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 228,568 $ 228,568 $ 228,568 $ — $ — Investment securities available for sale 952,312 952,312 — 952,312 — Loans held for sale 5,533 5,704 — — 5,704 Loans receivable, net 3,731,708 3,791,557 — — 3,791,557 Accrued interest receivable 14,446 14,446 79 3,668 10,699 Derivative assets - interest rate swaps 8,318 8,318 — 8,318 — Equity security 148 148 148 — — Financial Liabilities: Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts $ 4,058,098 $ 4,058,098 $ 4,058,098 $ — $ — Certificate of deposit accounts 524,578 529,679 — 529,679 — Securities sold under agreement to repurchase 20,169 20,169 20,169 — — Junior subordinated debentures 20,595 20,000 — — 20,000 Accrued interest payable 199 199 95 64 40 Derivative liabilities - interest rate swaps 8,318 8,318 — 8,318 — |
Commitments and Contingencies_2
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Outstanding Commitments to Extend Credit and Letters of Credit [Table Text Block] | The following table presents outstanding commitments to extend credit, including letters of credit, at the dates indicated: March 31, 2020 December 31, 2019 (In thousands) Commercial business: Commercial and industrial $ 557,050 $ 584,287 Owner-occupied commercial real estate 13,665 17,193 Non-owner occupied commercial real estate 30,132 35,573 Total commercial business 600,847 637,053 Real estate construction and land development: One-to-four family residential 65,740 75,066 Five or more family residential and commercial properties 201,003 230,343 Total real estate construction and land development 266,743 305,409 Consumer 256,312 269,898 Total outstanding commitments $ 1,123,902 $ 1,212,360 |
Allowance for Credit Losses [Text Block] | Allowance for Credit Losses on Loans Effective January 1, 2020, the Bank adopted ASU 2016-13. The adoption replaced the allowance for loan losses with the ACL on loans and replaced the related provision for loan losses with the provision for credit losses on loans. For the ACL on loans at January 1, 2020 and March 31, 2020, the baseline loss rates were calculated using the bank's average quarterly historical loss information from December 31, 2007 through the respective balance sheet date. The Bank has chosen to anchor the 2008-2009 periods to allow for a complete economic cycle to have occurred in its historical loss period. The Bank evaluates the historical period and the need to release the anchor periods on a quarterly basis, with the assumption that economic cycles have historically lasted between 10 and 15 years. The Bank believes the historic loss rates are viable inputs to the current expected credit loss methodology as the Bank's lending practice and business has remained relatively stable throughout the periods. While the Bank's assets have grown, the credit culture has stayed consistent. Prepayments included in the methodology were based on the 48-month rolling historical averages for each segment, which management believes is an accurate representation of future prepayment activity. Management's allowance estimates at January 1, 2020 and March 31, 2020 used a four quarter reasonable and supportable period, as forecasts beyond this time period tend to diverge in economic assumptions and may be less comparable to actual future events. As the length of the reasonable and supportable period increases, the degree of judgment involved in estimating the allowance will likely increase. The Bank used a two quarter reversion period in calculating its allowance as of January 1, 2020 and March 31, 2020 as it believes the historical loss information is relevant to the expected credit losses and recognizes the declining precision and increasing uncertainty of estimating credit losses in those periods beyond which it can make reasonable and supportable forecasts. Risk characteristics by segment considered in the CECL methodology are the same as those disclosed in the 2019 Annual Form 10-K. The following table details the activity in the ACL on loans disaggregated by segment and class for the three months ended March 31, 2020 : Three Months Ended March 31, 2020 Beginning Balance Impact of CECL Adoption Beginning Balance, as Adjusted Charge-offs Recoveries Provision for Credit Losses Ending Balance (In thousands) Commercial business: Commercial and industrial $ 11,739 $ (1,348 ) $ 10,391 $ (1,087 ) $ 1,057 $ 3,539 $ 13,900 Owner-occupied commercial real estate 4,512 452 4,964 (135 ) 12 1,375 6,216 Non-owner occupied commercial real estate 7,682 (2,039 ) 5,643 — — 2,107 7,750 Total commercial business 23,933 (2,935 ) 20,998 (1,222 ) 1,069 7,021 27,866 One-to-four family residential 1,458 1,471 2,929 — 3 94 3,026 Real estate construction and land development: One-to-four family residential 1,455 (571 ) 884 — 14 (34 ) 864 Five or more family residential and commercial properties 1,605 7,240 8,845 — — 2,599 11,444 Total real estate construction and land development 3,060 6,669 9,729 — 14 2,565 12,308 Consumer 6,821 (2,484 ) 4,337 (375 ) 94 284 4,340 Unallocated 899 (899 ) — — — — — Total $ 36,171 $ 1,822 $ 37,993 $ (1,597 ) $ 1,180 $ 9,964 $ 47,540 The Bank recognized net charge-offs of $417,000 during the quarter ended March 31, 2020 . Net charge-offs include the charge-off of one commercial and industrial relationship of $373,000 and a large volume of small-dollar amount consumer loans, offset by the full recovery of an agricultural lending relationship charge-off of $963,000 which was recorded during the three months ended December 31, 2019. During the three months ended March 31, 2020, the Bank recorded a provision for credit losses on loans of $10.0 million , an increase of 26.2% from the adjusted beginning balance. Of the provision for credit loses on loans, approximately $6.9 million was due to the Company's economic forecast under the CECL methodology, which included a decline in economic conditions due to the COVID-19 pandemic. The economic model utilized as of March 31, 2020 is forecasting profound, but not permanent, reductions in activity, with widespread cuts in discretionary and social spending, severe disruptions to supply chains, and a major interruption in travel activity. The model predicts a so-called "v-shaped" recession, with unemployment rate peaking at 6% and Real GDP contracting 0.2% in 2020. These projections are compared to predicted unemployment rate of 3.7% and Real GDP growth of 1.7% prior to the onset of the pandemic. While the negative impact is projected to occur immediately, the model is projecting the downturn to be short-term with a strong recovery toward the end of 2020. The provision for credit losses on loans also includes qualitative factors related to the industries in the loan portfolio that the Company believes may suffer the most losses as a result of the COVID-19 pandemic, such as restaurants, hotels, dentists, religious organizations, and recreational and entertainment centers. Approximately $3.1 million of the provision for credit losses on loans was due to an increase in the amortized cost balance, including the change in the mix of loans in the portfolio, and other changes such as term modifications or credit quality changes. The following table details activity in the allowance for loan losses disaggregated by segment and class for the three months ended March 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Three Months Ended March 31, 2019 Beginning Balance Charge-offs Recoveries Provision for Loan Losses Ending Balance (In thousands) Commercial business: Commercial and industrial $ 11,343 $ (103 ) $ 7 $ 508 $ 11,755 Owner-occupied commercial real estate 4,898 — 3 355 5,256 Non-owner occupied commercial real estate 7,470 — 149 206 7,825 Total commercial business 23,711 (103 ) 159 1,069 24,836 One-to-four family residential 1,203 (15 ) — 59 1,247 Real estate construction and land development: One-to-four family residential 1,240 — 618 (436 ) 1,422 Five or more family residential and commercial properties 954 — — 41 995 Total real estate construction and land development 2,194 — 618 (395 ) 2,417 Consumer 6,581 (586 ) 117 368 6,480 Unallocated 1,353 — — (181 ) 1,172 Total $ 35,042 $ (704 ) $ 894 $ 920 $ 36,152 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,372 $ 9,772 $ 595 $ 11,739 Owner-occupied commercial real estate 426 3,558 528 4,512 Non-owner occupied commercial real estate 146 7,064 472 7,682 Total commercial business 1,944 20,394 1,595 23,933 One-to-four family residential 56 1,316 86 1,458 Real estate construction and land development: One-to-four family residential — 1,296 159 1,455 Five or more family residential and commercial properties — 1,527 78 1,605 Total real estate construction and land development — 2,823 237 3,060 Consumer 143 6,327 351 6,821 Unallocated — 899 — 899 Total $ 2,143 $ 31,759 $ 2,269 $ 36,171 The following table details the amortized cost of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2019 under the incurred loss methodology, including the ASC 310-30 methodology for PCI loans : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 43,808 $ 806,044 $ 2,368 $ 852,220 Owner-occupied commercial real estate 6,336 793,984 4,914 805,234 Non-owner occupied commercial real estate 6,324 1,276,964 5,491 1,288,779 Total commercial business 56,468 2,876,992 12,773 2,946,233 One-to-four family residential 215 127,870 3,575 131,660 Real estate construction and land development: — — — One-to-four family residential 237 104,059 — 104,296 Five or more family residential and commercial properties — 170,350 — 170,350 Total real estate construction and land development 237 274,409 — 274,646 Consumer 561 413,017 1,762 415,340 Total $ 57,481 $ 3,692,288 $ 18,110 $ 3,767,879 |
Unused Commitments to Extend Credit [Member] | |
Allowance for Credit Losses [Text Block] | The following table details the activity in the ACL on unfunded commitments during the three months ended March 31, 2020 : Three Months Ended March 31, March 31, (In thousands) Balance, beginning of period $ 306 $ 306 Impact of CECL adoption 3,702 — Adjusted balance, beginning of period 4,008 306 Reversal of provision for credit losses on unfunded commitments (2,018 ) — Balance, end of period $ 1,990 $ 306 |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Description of Business (Details) $ in Thousands | Mar. 31, 2020USD ($)bank |
Business Description and Basis of Presentation [Line Items] | |
Financing Receivable, Allowance for Credit Loss | $ | $ 47,540 |
Heritage Bank | |
Business Description and Basis of Presentation [Line Items] | |
Number of branches operating | bank | 62 |
Description of Business, Basi_4
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Provision for Loan, Lease, and Other Losses | $ (7,946) | $ (920) | |||
Financing Receivable, Allowance for Credit Loss | $ 47,540 | $ 47,540 | |||
Accumulated Credit Losses, Increase (Decrease), Percentage to Loans Receivable | 1.23% | 1.01% | 1.23% | (0.96%) | |
Financing Receivable, Purchase, Discount (Premium) | $ 10,000 | $ 9,000 | $ 8,400 | ||
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | $ 2,500 | ||||
Effects of implementation of accounting change related to operating leases | $ (399) | ||||
Accounting Standards Update 2016-13 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss | 1,800 | ||||
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase | 1,600 | ||||
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | 4,300 | ||||
Effects of implementation of accounting change related to operating leases | (5,600) | ||||
Purchase Credit Impaired Loans [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Provision for Loan, Lease, and Other Losses | 1,600 | ||||
Unused Commitments to Extend Credit [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Provision for Loan, Lease, and Other Losses | (3,700) | ||||
Total Allowance for Credit Losses [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss | $ 47,540 | $ 47,540 | |||
UNITED STATES | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt Securities, Available-for-sale, Issuance Percent | 83.50% | ||||
State and Local Jurisdiction | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt Securities, Available-for-sale, Issuance Percent | 14.00% | ||||
Unused Commitments to Extend Credit and Total Accumulated Allowance Credit Losses [Member] | Accounting Standards Update 2016-13 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effects of implementation of accounting change related to operating leases | 7,100 | ||||
Total Allowance for Credit Losses [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effects of implementation of accounting change related to operating leases | 3,400 | ||||
Unused Commitments to Extend Credit [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effects of implementation of accounting change related to operating leases | $ 3,700 | $ 0 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Values (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Investment Holdings [Line Items] | |||
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale | $ 0 | ||
Amortized Cost | $ 937,828,000 | $ 939,160,000 | |
Gross Unrealized Gains | 26,470,000 | 14,660,000 | |
Gross Unrealized Losses | (3,206,000) | (1,508,000) | |
Fair Value | 961,092,000 | 952,312,000 | |
U.S. Treasury and U.S. Government-sponsored agencies | |||
Investment Holdings [Line Items] | |||
Amortized Cost | 85,868,000 | 104,709,000 | |
Gross Unrealized Gains | 1,314,000 | 598,000 | |
Gross Unrealized Losses | (120,000) | (84,000) | |
Fair Value | 87,062,000 | 105,223,000 | |
Municipal securities | |||
Investment Holdings [Line Items] | |||
Amortized Cost | 174,614,000 | 128,183,000 | |
Gross Unrealized Gains | 5,409,000 | 4,933,000 | |
Gross Unrealized Losses | (415,000) | (102,000) | |
Fair Value | 179,608,000 | 133,014,000 | |
Residential | |||
Investment Holdings [Line Items] | |||
Amortized Cost | 313,710,000 | 336,929,000 | |
Gross Unrealized Gains | 9,204,000 | 3,184,000 | |
Gross Unrealized Losses | (230,000) | (505,000) | |
Fair Value | 322,684,000 | 339,608,000 | |
Commercial | |||
Investment Holdings [Line Items] | |||
Amortized Cost | 316,683,000 | 322,169,000 | |
Gross Unrealized Gains | 10,348,000 | 5,575,000 | |
Gross Unrealized Losses | (1,275,000) | (649,000) | |
Fair Value | 325,756,000 | 327,095,000 | |
Corporate obligations | |||
Investment Holdings [Line Items] | |||
Amortized Cost | 23,897,000 | 23,893,000 | |
Gross Unrealized Gains | 195,000 | 316,000 | |
Gross Unrealized Losses | (260,000) | (15,000) | |
Fair Value | 23,832,000 | 24,194,000 | |
Other asset-backed securities | |||
Investment Holdings [Line Items] | |||
Amortized Cost | 23,056,000 | 23,277,000 | |
Gross Unrealized Gains | 0 | 54,000 | |
Gross Unrealized Losses | (906,000) | (153,000) | |
Fair Value | $ 22,150,000 | $ 23,178,000 |
Investment Securities - Textual
Investment Securities - Textual (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Amortized Cost | $ 227,154,000 | $ 229,189,000 | |
Fair Value | 232,918,000 | 232,917,000 | |
Accrued Investment Income Receivable | 3,900,000 | 3,700,000 | |
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale | $ 0 | ||
Securities classified as trading | 0 | 0 | |
Available-for-sale Securities [Member] | |||
Provision for Other Credit Losses | 0 | ||
Repurchase Agreements [Member] | |||
Amortized Cost | 26,420,000 | 22,156,000 | |
Fair Value | 26,473,000 | 22,294,000 | |
Washington and Oregon State to Secure Public Deposits [Member] | |||
Amortized Cost | 179,570,000 | 187,700,000 | |
Fair Value | 184,231,000 | 190,773,000 | |
Other securities pledged | |||
Amortized Cost | 21,164,000 | 19,333,000 | |
Fair Value | $ 22,214,000 | $ 19,850,000 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 33,547 | |
Due after one year through five years | 162,455 | |
Due after five years through ten years | 255,123 | |
Due after ten years | 486,703 | |
Amortized Cost | 937,828 | $ 939,160 |
Fair Value | ||
Due in one year or less | 33,806 | |
Due after one year through five years | 166,232 | |
Due after five years through ten years | 263,149 | |
Due after ten years | 497,905 | |
Fair Value | $ 961,092 | $ 952,312 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less than 12 Months | $ 96,353 | $ 145,676 |
12 Months or Longer | 56,963 | 107,451 |
Total | 153,316 | 253,127 |
Unrealized Losses | ||
Less than 12 Months | (2,312) | (558) |
12 Months or Longer | (894) | (950) |
Total | (3,206) | (1,508) |
U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair Value | ||
Less than 12 Months | 5,880 | 45,999 |
12 Months or Longer | 0 | 0 |
Total | 5,880 | 45,999 |
Unrealized Losses | ||
Less than 12 Months | (120) | (84) |
12 Months or Longer | 0 | 0 |
Total | (120) | (84) |
Municipal securities | ||
Fair Value | ||
Less than 12 Months | 27,434 | 13,761 |
12 Months or Longer | 0 | 0 |
Total | 27,434 | 13,761 |
Unrealized Losses | ||
Less than 12 Months | (415) | (102) |
12 Months or Longer | 0 | 0 |
Total | (415) | (102) |
Residential | ||
Fair Value | ||
Less than 12 Months | 2,045 | 14,272 |
12 Months or Longer | 27,992 | 60,232 |
Total | 30,037 | 74,504 |
Unrealized Losses | ||
Less than 12 Months | (6) | (66) |
12 Months or Longer | (224) | (439) |
Total | (230) | (505) |
Commercial | ||
Fair Value | ||
Less than 12 Months | 32,562 | 56,263 |
12 Months or Longer | 25,485 | 43,623 |
Total | 58,047 | 99,886 |
Unrealized Losses | ||
Less than 12 Months | (683) | (177) |
12 Months or Longer | (592) | (472) |
Total | (1,275) | (649) |
Corporate obligations | ||
Fair Value | ||
Less than 12 Months | 7,788 | 998 |
12 Months or Longer | 1,980 | 1,987 |
Total | 9,768 | 2,985 |
Unrealized Losses | ||
Less than 12 Months | (240) | (2) |
12 Months or Longer | (20) | (13) |
Total | (260) | (15) |
Other asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 20,644 | |
Other asset-backed securities, Less than 12 Months | 14,383 | |
12 Months or Longer | 1,506 | |
Other asset-backed securities, 12 Months or Longer | 1,609 | |
Total | 22,150 | |
Other asset-backed securities, Total | 15,992 | |
Unrealized Losses | ||
Less than 12 Months | (848) | |
Other asset-backed, Less than 12 Months | 127 | |
12 Months or Longer | (58) | |
Other asset-backed securities, 12 Months or Longer | 26 | |
Total | $ (906) | |
Other asset-backed securities, Total | $ 153 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross realized gains | $ 1,028 | $ 89 |
Gross realized losses | (14) | (74) |
Net realized gains | $ 1,014 | $ 15 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | $ 227,154 | $ 229,189 |
Fair Value | 232,918 | 232,917 |
Other securities pledged | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 21,164 | 19,333 |
Fair Value | 22,214 | 19,850 |
Washington and Oregon State to Secure Public Deposits [Member] | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 179,570 | 187,700 |
Fair Value | 184,231 | 190,773 |
Repurchase Agreements [Member] | ||
Scheduled of amortized cost and fair value of securities pledged as collateral | ||
Amortized Cost | 26,420 | 22,156 |
Fair Value | $ 26,473 | $ 22,294 |
Loans Receivable - Loan Origina
Loans Receivable - Loan Origination/Risk Management (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020USD ($)segment | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest receivable | $ 14,940 | $ 14,446 | |||
Number of loan segments | segment | 4 | ||||
Loans receivable | $ 3,852,376 | 3,767,879 | |||
Financing Receivable, Allowance for Credit Loss | 47,540 | ||||
Loans and Leases Receivable, Allowance | $ 37,993 | 36,171 | $ 36,152 | $ 35,042 | |
Loans and Leases Receivable, Net Amount | 3,804,836 | 3,731,708 | |||
Loans Receivable [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest receivable | 11,100 | 10,700 | |||
Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 3,007,629 | 2,946,233 | |||
Financing Receivable, Allowance for Credit Loss | 27,866 | ||||
Loans and Leases Receivable, Allowance | 20,998 | 23,933 | 24,836 | 23,711 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 889,685 | 852,220 | |||
Financing Receivable, Allowance for Credit Loss | 13,900 | ||||
Loans and Leases Receivable, Allowance | 10,391 | 11,739 | 11,755 | 11,343 | |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 805,636 | 805,234 | |||
Financing Receivable, Allowance for Credit Loss | 6,216 | ||||
Loans and Leases Receivable, Allowance | 4,964 | 4,512 | 5,256 | 4,898 | |
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 1,312,308 | 1,288,779 | |||
Financing Receivable, Allowance for Credit Loss | 7,750 | ||||
Loans and Leases Receivable, Allowance | 5,643 | 7,682 | 7,825 | 7,470 | |
Residential Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 136,782 | 131,660 | |||
Financing Receivable, Allowance for Credit Loss | 3,026 | ||||
Loans and Leases Receivable, Allowance | 2,929 | 1,458 | 1,247 | 1,203 | |
Real Estate Construction and Land Development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 287,034 | 274,646 | |||
Financing Receivable, Allowance for Credit Loss | 12,308 | ||||
Loans and Leases Receivable, Allowance | 9,729 | 3,060 | 2,417 | 2,194 | |
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 98,730 | 104,296 | |||
Financing Receivable, Allowance for Credit Loss | 864 | ||||
Loans and Leases Receivable, Allowance | 884 | 1,455 | 1,422 | 1,240 | |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 188,304 | 170,350 | |||
Financing Receivable, Allowance for Credit Loss | 11,444 | ||||
Loans and Leases Receivable, Allowance | 8,845 | 1,605 | 995 | 954 | |
Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans receivable | 420,931 | 415,340 | |||
Financing Receivable, Allowance for Credit Loss | $ 4,340 | ||||
Loans and Leases Receivable, Allowance | $ 4,337 | $ 6,821 | $ 6,480 | $ 6,581 |
Loans Receivable - Concentratio
Loans Receivable - Concentrations of Credit (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019Loan | |
Receivables [Abstract] | ||
Concentration of loans greater than 10% | 0 | 0 |
Percentage of concentrations of loans in any industry (in excess of 10%) (percent) | 10.00% | 10.00% |
Loans Receivable - Credit Quali
Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 35,836 | |
Pass | $ 3,625,083 | |
OAEM | 48,859 | |
Substandard | 93,413 | |
2017 | 524 | |
Financing Receivable, Originated in Current Fiscal Year | 140,558 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 796,450 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 527,214 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 460,319 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 471,898 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,028,158 | |
Financing Receivable, Revolving | 425,539 | |
Financing Receivable revolving converted to Term Loans | 2,240 | |
Loans and Leases Receivable, Gross | 3,852,376 | 3,767,879 |
Total | 3,852,376 | 3,767,879 |
Potential problem loans receivable | 102,200 | 87,800 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 34,301 | |
Pass | 2,811,483 | |
OAEM | 46,661 | |
Substandard | 88,089 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 81,588 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 474,230 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 354,328 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 385,802 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 434,748 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 966,311 | |
Financing Receivable, Revolving | 308,471 | |
Financing Receivable revolving converted to Term Loans | 2,151 | |
Loans and Leases Receivable, Gross | 3,007,629 | 2,946,233 |
Total | 3,007,629 | 2,946,233 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 25,401 | |
Pass | 771,559 | |
OAEM | 16,340 | |
Substandard | 64,321 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 26,633 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 172,424 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 99,298 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 77,627 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 56,337 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 147,800 | |
Financing Receivable, Revolving | 308,471 | |
Financing Receivable revolving converted to Term Loans | 1,095 | |
Loans and Leases Receivable, Gross | 889,685 | 852,220 |
Total | 889,685 | 852,220 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 3,106 | |
Pass | 765,411 | |
OAEM | 24,659 | |
Substandard | 15,164 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 21,750 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 144,743 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 100,449 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 105,032 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 89,461 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 343,145 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 1,056 | |
Loans and Leases Receivable, Gross | 805,636 | 805,234 |
Total | 805,636 | 805,234 |
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 5,794 | |
Pass | 1,274,513 | |
OAEM | 5,662 | |
Substandard | 8,604 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 33,205 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 157,063 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 154,581 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 203,143 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 288,950 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 475,366 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 1,312,308 | 1,288,779 |
Total | 1,312,308 | 1,288,779 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Pass | 411,141 | |
OAEM | 0 | |
Substandard | 3,675 | |
2017 | 524 | |
Financing Receivable, Originated in Current Fiscal Year | 27,777 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 102,996 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 74,535 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 45,961 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 23,511 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 28,994 | |
Financing Receivable, Revolving | 117,068 | |
Financing Receivable revolving converted to Term Loans | 89 | |
Loans and Leases Receivable, Gross | 420,931 | 415,340 |
Total | 420,931 | 415,340 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 19 | |
Pass | 130,818 | |
OAEM | 0 | |
Substandard | 842 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 9,097 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 47,795 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 22,506 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 17,629 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 11,788 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 27,967 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 136,782 | 131,660 |
Total | 136,782 | 131,660 |
Real Estate Construction and Land Development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Pass | 271,641 | |
OAEM | 2,198 | |
Substandard | 807 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 22,096 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 171,429 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 75,845 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 10,927 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1,851 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 4,886 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 287,034 | 274,646 |
Total | 287,034 | 274,646 |
Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 1,516 | |
Pass | 101,973 | |
OAEM | 1,516 | |
Substandard | 807 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 8,102 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 73,501 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 10,405 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 3,949 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 971 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,802 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 98,730 | 104,296 |
Total | 98,730 | 104,296 |
Real Estate Construction and Land Development [Member] | Five or More Family Residential and Commercial Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Pass | 169,668 | |
OAEM | 682 | |
Substandard | 0 | |
2017 | 0 | |
Financing Receivable, Originated in Current Fiscal Year | 13,994 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 97,928 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 65,440 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 6,978 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 880 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 3,084 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 188,304 | 170,350 |
Total | 188,304 | $ 170,350 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 138,054 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 783,402 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 518,285 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 442,433 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 456,883 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 972,209 | |
Financing Receivable, Revolving | 387,779 | |
Financing Receivable revolving converted to Term Loans | 1,853 | |
Loans and Leases Receivable, Gross | 3,700,898 | |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 79,084 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 461,269 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 345,891 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 369,984 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 420,411 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 913,074 | |
Financing Receivable, Revolving | 271,477 | |
Financing Receivable revolving converted to Term Loans | 1,766 | |
Loans and Leases Receivable, Gross | 2,862,956 | |
Pass [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 24,236 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 159,463 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 91,045 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 68,613 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 52,123 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 132,283 | |
Financing Receivable, Revolving | 271,477 | |
Financing Receivable revolving converted to Term Loans | 710 | |
Loans and Leases Receivable, Gross | 799,950 | |
Pass [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 21,643 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 144,743 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 100,332 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 98,228 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 85,554 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 314,552 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 1,056 | |
Loans and Leases Receivable, Gross | 766,108 | |
Pass [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 33,205 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 157,063 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 154,514 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 203,143 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 282,734 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 466,239 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 1,296,898 | |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 27,777 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 102,909 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 74,043 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 45,472 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 22,957 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 27,370 | |
Financing Receivable, Revolving | 116,302 | |
Financing Receivable revolving converted to Term Loans | 87 | |
Loans and Leases Receivable, Gross | 416,917 | |
Pass [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 9,097 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 47,795 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 22,506 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 17,566 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 11,664 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 27,371 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 135,999 | |
Pass [Member] | Real Estate Construction and Land Development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 22,096 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 171,429 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 75,845 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 9,411 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1,851 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 4,394 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 285,026 | |
Pass [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 8,102 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 73,501 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 10,405 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 2,433 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 971 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,802 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 97,214 | |
Pass [Member] | Real Estate Construction and Land Development [Member] | Five or More Family Residential and Commercial Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 13,994 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 97,928 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 65,440 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 6,978 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 880 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2,592 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 187,812 | |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 2,398 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,479 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 3,495 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 2,509 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 9,900 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 17,958 | |
Financing Receivable, Revolving | 22,187 | |
Financing Receivable revolving converted to Term Loans | 42 | |
Loans and Leases Receivable, Gross | 61,968 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 2,398 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,479 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 3,495 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 2,509 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 9,900 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 17,919 | |
Financing Receivable, Revolving | 22,187 | |
Financing Receivable revolving converted to Term Loans | 42 | |
Loans and Leases Receivable, Gross | 61,929 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 2,291 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 3,479 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 3,495 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 436 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1,787 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,805 | |
Financing Receivable, Revolving | 22,187 | |
Financing Receivable revolving converted to Term Loans | 42 | |
Loans and Leases Receivable, Gross | 35,522 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 107 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 2,073 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 1,897 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 13,268 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 17,345 | |
Special Mention [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 6,216 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 2,846 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 9,062 | |
Special Mention [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 0 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 0 | |
Special Mention [Member] | Real Estate Construction and Land Development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 39 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 39 | |
Special Mention [Member] | Real Estate Construction and Land Development [Member] | Five or More Family Residential and Commercial Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 39 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 39 | |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 106 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 9,569 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 5,434 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 15,377 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 5,115 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 37,991 | |
Financing Receivable, Revolving | 15,573 | |
Financing Receivable revolving converted to Term Loans | 345 | |
Loans and Leases Receivable, Gross | 89,510 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 106 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 9,482 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 4,942 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 13,309 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 4,437 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 35,318 | |
Financing Receivable, Revolving | 14,807 | |
Financing Receivable revolving converted to Term Loans | 343 | |
Loans and Leases Receivable, Gross | 82,744 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 106 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 9,482 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 4,758 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 8,578 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,427 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 13,712 | |
Financing Receivable, Revolving | 14,807 | |
Financing Receivable revolving converted to Term Loans | 343 | |
Loans and Leases Receivable, Gross | 54,213 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 117 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 4,731 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 2,010 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 15,325 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 22,183 | |
Substandard [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 67 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 6,281 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 6,348 | |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 87 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 492 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 489 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 554 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 1,624 | |
Financing Receivable, Revolving | 766 | |
Financing Receivable revolving converted to Term Loans | 2 | |
Loans and Leases Receivable, Gross | 4,014 | |
Substandard [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 63 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 124 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 596 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 783 | |
Substandard [Member] | Real Estate Construction and Land Development [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,516 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 453 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 1,969 | |
Substandard [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 1,516 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 0 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 1,516 | |
Substandard [Member] | Real Estate Construction and Land Development [Member] | Five or More Family Residential and Commercial Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing Receivable, Originated in Current Fiscal Year | 0 | |
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Two Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Three Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Four Years before Latest Fiscal Year | 0 | |
Financing Receivable, Originated Five or More Years before Latest Fiscal Year | 453 | |
Financing Receivable, Revolving | 0 | |
Financing Receivable revolving converted to Term Loans | 0 | |
Loans and Leases Receivable, Gross | 453 | |
Other [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 311 | |
Other [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 311 | |
Other [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 311 | |
Other [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Other [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Other [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Other [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 10,963 | |
Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 10,963 | |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 2,063 | |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 3,106 | |
Real Estate [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 5,794 | |
Real Estate [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Real Estate [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Farmland [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 19,350 | |
Farmland [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 19,350 | |
Farmland [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 19,350 | |
Farmland [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Farmland [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Farmland [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Farmland [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Single Family [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 2,980 | |
Single Family [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 1,445 | |
Single Family [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 1,445 | |
Single Family [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Single Family [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Single Family [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 19 | |
Single Family [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 1,516 | |
Equipment or Accounts Receivable [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 2,232 | |
Equipment or Accounts Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 2,232 | |
Equipment or Accounts Receivable [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 2,232 | |
Equipment or Accounts Receivable [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Equipment or Accounts Receivable [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Equipment or Accounts Receivable [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | 0 | |
Equipment or Accounts Receivable [Member] | Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans and Leases Receivable, Collateral for Secured Borrowings | $ 0 |
Loans Receivable - Nonaccrual L
Loans Receivable - Nonaccrual Loans (Details) - USD ($) | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | $ 2,500,000 | |||
Gross nonaccrual loans | 34,163,000 | $ 34,163,000 | $ 44,525,000 | |
Financing Receivable, Nonaccrual, No Allowance | 31,020,000 | 31,020,000 | ||
Financing Receivable, Nonaccrual, with Allowance | 3,143,000 | 3,143,000 | ||
Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross nonaccrual loans | 33,908,000 | 33,908,000 | 44,320,000 | |
Financing Receivable, Nonaccrual, No Allowance | 31,001,000 | 31,001,000 | ||
Financing Receivable, Nonaccrual, with Allowance | 2,907,000 | 2,907,000 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross nonaccrual loans | 26,087,000 | 26,087,000 | 33,544,000 | |
Financing Receivable, Nonaccrual, No Allowance | 24,068,000 | 24,068,000 | ||
Financing Receivable, Nonaccrual, with Allowance | 2,019,000 | 2,019,000 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross nonaccrual loans | 3,991,000 | 3,991,000 | 4,714,000 | |
Financing Receivable, Nonaccrual, No Allowance | 3,103,000 | 3,103,000 | ||
Financing Receivable, Nonaccrual, with Allowance | 888,000 | 888,000 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross nonaccrual loans | 3,830,000 | 3,830,000 | 6,062,000 | |
Financing Receivable, Nonaccrual, No Allowance | 3,830,000 | 3,830,000 | ||
Financing Receivable, Nonaccrual, with Allowance | 0 | 0 | ||
Residential Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross nonaccrual loans | 163,000 | 163,000 | 19,000 | |
Financing Receivable, Nonaccrual, No Allowance | 19,000 | 19,000 | ||
Financing Receivable, Nonaccrual, with Allowance | 144,000 | 144,000 | ||
Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross nonaccrual loans | 92,000 | 92,000 | $ 186,000 | |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 | ||
Financing Receivable, Nonaccrual, with Allowance | 92,000 | 92,000 | ||
Nonaccrual [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Purchased with Credit Deterioration, Discount (Premium) | $ 565,000 | |||
Nonaccrual [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 320,000 | $ 0 | ||
Impaired Financing Receivable Interest Income Reversal Accrual Method | (16,000) | |||
Nonaccrual [Member] | Commercial Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 310,000 | |||
Impaired Financing Receivable Interest Income Reversal Accrual Method | (16,000) | |||
Nonaccrual [Member] | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 219,000 | |||
Impaired Financing Receivable Interest Income Reversal Accrual Method | (16,000) | |||
Nonaccrual [Member] | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 46,000 | |||
Impaired Financing Receivable Interest Income Reversal Accrual Method | 0 | |||
Nonaccrual [Member] | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 45,000 | |||
Impaired Financing Receivable Interest Income Reversal Accrual Method | 0 | |||
Nonaccrual [Member] | Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | 10,000 | |||
Impaired Financing Receivable Interest Income Reversal Accrual Method | $ 0 |
Loans Receivable - Past Due Loa
Loans Receivable - Past Due Loans (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 14,113,000 | |
Current | 3,838,263,000 | |
Loans and Leases Receivable, Net of Deferred Income | 3,852,376,000 | $ 3,767,879,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 18,110,000 | |
90 days or more and still accruing | 0 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,015,000 | |
90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,098,000 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11,684,000 | 21,061,000 |
Current | 2,995,945,000 | 2,912,399,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 2,933,460,000 | |
Loans and Leases Receivable, Net of Deferred Income | 3,007,629,000 | 2,946,233,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 12,773,000 | |
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,605,000 | 11,640,000 |
Commercial Portfolio Segment [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,079,000 | 9,421,000 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,221,000 | 17,251,000 |
Current | 880,464,000 | 832,601,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 849,852,000 | |
Loans and Leases Receivable, Net of Deferred Income | 889,685,000 | 852,220,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 2,368,000 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,632,000 | 10,479,000 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,589,000 | 6,772,000 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 843,000 | 1,413,000 |
Current | 804,793,000 | 798,907,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 800,320,000 | |
Loans and Leases Receivable, Net of Deferred Income | 805,636,000 | 805,234,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 4,914,000 | |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 353,000 | 607,000 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 490,000 | 806,000 |
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,620,000 | 2,397,000 |
Current | 1,310,688,000 | 1,280,891,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 1,283,288,000 | |
Loans and Leases Receivable, Net of Deferred Income | 1,312,308,000 | 1,288,779,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 5,491,000 | |
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,620,000 | 554,000 |
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1,843,000 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 466,000 | 797,000 |
Current | 136,316,000 | 127,288,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 128,085,000 | |
Loans and Leases Receivable, Net of Deferred Income | 136,782,000 | 131,660,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 3,575,000 | |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 447,000 | 797,000 |
Residential Portfolio Segment [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 19,000 | 0 |
Real Estate Construction and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1,516,000 |
Current | 287,034,000 | 273,130,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 274,646,000 | |
Loans and Leases Receivable, Net of Deferred Income | 287,034,000 | 274,646,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 0 | |
Real Estate Construction and Land Development | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1,516,000 |
Real Estate Construction and Land Development | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1,516,000 |
Current | 98,730,000 | 102,780,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 104,296,000 | |
Loans and Leases Receivable, Net of Deferred Income | 98,730,000 | 104,296,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 0 | |
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 1,516,000 |
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 188,304,000 | 170,350,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 170,350,000 | |
Loans and Leases Receivable, Net of Deferred Income | 188,304,000 | 170,350,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 0 | |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,963,000 | 2,071,000 |
Current | 418,968,000 | 411,507,000 |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 413,578,000 | |
Loans and Leases Receivable, Net of Deferred Income | 420,931,000 | 415,340,000 |
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 1,762,000 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,963,000 | 2,071,000 |
Consumer Portfolio Segment [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 0 | 0 |
Loans Receivable Excluding PCI Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 25,445,000 | |
Current | 3,724,324,000 | |
Loan and Lease Receivable, Gross excluding Purchase Credit Impaired Loans | 3,749,769,000 | |
Loans Receivable Excluding PCI Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 16,024,000 | |
Loans Receivable Excluding PCI Loans [Member] | 90 Days or Greater | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 9,421,000 |
Loans Receivable - Impaired Loa
Loans Receivable - Impaired Loans (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | $ 39,646,000 | ||
Recorded Investment With Specific Valuation Allowance | 17,835,000 | ||
Total Amortized Cost | 57,481,000 | ||
Unpaid Contractual Principal Balance | 59,837,000 | ||
Related Specific Valuation Allowance | 2,143,000 | ||
Average recorded investment on impaired loans | $ 36,943,000 | ||
Nonaccrual [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | $ 320,000 | 0 | |
Restructured Performing [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | 608,000 | 301,000 | |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 39,409,000 | ||
Recorded Investment With Specific Valuation Allowance | 17,059,000 | ||
Total Amortized Cost | 56,468,000 | ||
Unpaid Contractual Principal Balance | 58,807,000 | ||
Related Specific Valuation Allowance | 1,944,000 | ||
Average recorded investment on impaired loans | 35,193,000 | ||
Commercial Portfolio Segment [Member] | Nonaccrual [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | 310,000 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 30,179,000 | ||
Recorded Investment With Specific Valuation Allowance | 13,629,000 | ||
Total Amortized Cost | 43,808,000 | ||
Unpaid Contractual Principal Balance | 45,585,000 | ||
Related Specific Valuation Allowance | 1,372,000 | ||
Average recorded investment on impaired loans | 22,639,000 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Nonaccrual [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | 219,000 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 3,921,000 | ||
Recorded Investment With Specific Valuation Allowance | 2,415,000 | ||
Total Amortized Cost | 6,336,000 | ||
Unpaid Contractual Principal Balance | 6,764,000 | ||
Related Specific Valuation Allowance | 426,000 | ||
Average recorded investment on impaired loans | 5,935,000 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | Nonaccrual [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | 46,000 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 5,309,000 | ||
Recorded Investment With Specific Valuation Allowance | 1,015,000 | ||
Total Amortized Cost | 6,324,000 | ||
Unpaid Contractual Principal Balance | 6,458,000 | ||
Related Specific Valuation Allowance | 146,000 | ||
Average recorded investment on impaired loans | 6,619,000 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | Nonaccrual [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | 45,000 | ||
Residential Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 0 | ||
Recorded Investment With Specific Valuation Allowance | 215,000 | ||
Total Amortized Cost | 215,000 | ||
Unpaid Contractual Principal Balance | 223,000 | ||
Related Specific Valuation Allowance | 56,000 | ||
Average recorded investment on impaired loans | 277,000 | ||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 237,000 | ||
Recorded Investment With Specific Valuation Allowance | 0 | ||
Total Amortized Cost | 237,000 | ||
Unpaid Contractual Principal Balance | 237,000 | ||
Related Specific Valuation Allowance | 0 | ||
Average recorded investment on impaired loans | 911,000 | ||
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment With No Specific Valuation Allowance | 0 | ||
Recorded Investment With Specific Valuation Allowance | 561,000 | ||
Total Amortized Cost | 561,000 | ||
Unpaid Contractual Principal Balance | 570,000 | ||
Related Specific Valuation Allowance | $ 143,000 | ||
Average recorded investment on impaired loans | $ 562,000 | ||
Consumer Portfolio Segment [Member] | Nonaccrual [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Interest income recognized on impaired loans | $ 10,000 |
Loans Receivable - TDR Loans, R
Loans Receivable - TDR Loans, Recorded Investment and Allowance (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)contract | Dec. 31, 2019USD ($) | |
Receivables [Abstract] | ||
Financing Receivable, Modifications, Number of Contracts | contract | 11 | |
Performing TDRs, TDR loans | $ 19,309 | $ 14,469 |
Nonaccrual TDRs, TDR loans | 19,980 | 26,338 |
Performing TDRs, Allowance for loan losses on TDR loans | 1,259 | |
Nonaccrual TDRs, Allowance for loan losses on TDR loans | 218 | |
Allowance for Loan Credit Losses on Financing Receivable Modifications Accruing Recorded Investment | 1,519 | |
Allowance for Loan Credit Losses on Financing Receivable Modifications Non Accruing Recorded Investment | 223 | |
Unfunded commitments related to credits classified as TDRs | $ 3,000 | $ 736 |
Loans Receivable - Modified TDR
Loans Receivable - Modified TDRs (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($)contractContract | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Allowance for Loan Losses on Financing Receivable Modifications Accruing Recorded Investment | $ 1,259,000 | ||
Allowance for Loan Losses on Financing Receivable Modifications Non Accruing Recorded Investment | 218,000 | ||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 11 | ||
Related Specific Valuation Allowance | 2,143,000 | ||
Commercial Portfolio Segment [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | 1,944,000 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | 1,372,000 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | 426,000 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | 146,000 | ||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | 0 | ||
Consumer Portfolio Segment [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | $ 143,000 | ||
Troubled Debt Restructured Loans | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 30 | 20 | |
Outstanding Principal Balance | $ 10,952,000 | $ 13,933,000 | |
Number of contracts modified | contract | 5 | 3 | |
Troubled Debt Restructured Loans | Finance Receivable Modified Subsequent Default | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | $ 334,000 | ||
Troubled Debt Restructured Loans | Past Modified Maturity Date | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of contracts modified | contract | 5 | 3 | |
Troubled Debt Restructured Loans | Modified During the Quarter | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Related Specific Valuation Allowance | $ 768,000 | ||
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 21 | 12 | |
Outstanding Principal Balance | $ 9,343,000 | $ 13,146,000 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 14 | 9 | |
Outstanding Principal Balance | $ 4,950,000 | $ 10,100,000 | |
Number of contracts modified | contract | 2 | 1 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 4 | 2 | |
Outstanding Principal Balance | $ 2,183,000 | $ 934,000 | |
Number of contracts modified | 0 | 1 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 3 | 1 | |
Outstanding Principal Balance | $ 2,210,000 | $ 2,112,000 | |
Number of contracts modified | contract | 3 | 1 | |
Troubled Debt Restructured Loans | Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 4 | 2 | |
Outstanding Principal Balance | $ 1,516,000 | $ 665,000 | |
Troubled Debt Restructured Loans | Consumer Portfolio Segment [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Number of Contracts | contract | 5 | 6 | |
Outstanding Principal Balance | $ 93,000 | $ 122,000 | |
Restructured Performing [Member] | |||
Loans Modified as Troubled Debt Restructurings [Abstract] | |||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 608,000 | $ 301,000 |
Loans Receivable - TDRs Subsequ
Loans Receivable - TDRs Subsequently Defaulted (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($)contractContract | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 11 | ||
Related Specific Valuation Allowance | $ 2,143,000 | ||
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | 1,944,000 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | 1,372,000 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | 426,000 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | 146,000 | ||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | $ 0 | ||
Troubled Debt Restructured Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 30 | 20 | |
Number of Contracts | contract | 5 | 3 | |
Amortized Cost | $ 2,463,000 | $ 2,147,000 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 21 | 12 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 14 | 9 | |
Number of Contracts | contract | 2 | 1 | |
Amortized Cost | $ 1,873,000 | $ 829,000 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 4 | 2 | |
Number of Contracts | 0 | 1 | |
Amortized Cost | $ 0 | $ 717,000 | |
Troubled Debt Restructured Loans | Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 3 | 1 | |
Number of Contracts | contract | 3 | 1 | |
Amortized Cost | $ 590,000 | $ 601,000 | |
Troubled Debt Restructured Loans | Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 4 | 2 | |
Finance Receivable Modified Subsequent Default | Troubled Debt Restructured Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | $ 334,000 | ||
Past Modified Maturity Date [Member] | Troubled Debt Restructured Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 5 | 3 | |
Modified during the quarter [Member] | Troubled Debt Restructured Loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Related Specific Valuation Allowance | $ 768,000 |
Loans Receivable - Purchased Cr
Loans Receivable - Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 39,646 | ||
Outstanding Principal | 20,950 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 18,110 | ||
Recorded Investment | 18,110 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 17,835 | ||
Impaired Financing Receivable, Recorded Investment | 57,481 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 59,837 | ||
Impaired Financing Receivable, Related Allowance | 2,143 | ||
Purchase Credit Impaired Loans [Member] [Domain] | |||
Financing Receivable, Impaired [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | $ 8,460 | $ 9,493 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | 581 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Disposals of Loans | $ 452 | ||
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 39,409 | ||
Outstanding Principal | 16,392 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 12,773 | ||
Recorded Investment | 12,773 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 17,059 | ||
Impaired Financing Receivable, Recorded Investment | 56,468 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 58,807 | ||
Impaired Financing Receivable, Related Allowance | 1,944 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 30,179 | ||
Outstanding Principal | 4,439 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 2,368 | ||
Recorded Investment | 2,368 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 13,629 | ||
Impaired Financing Receivable, Recorded Investment | 43,808 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 45,585 | ||
Impaired Financing Receivable, Related Allowance | 1,372 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,921 | ||
Outstanding Principal | 4,925 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 4,914 | ||
Recorded Investment | 4,914 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,415 | ||
Impaired Financing Receivable, Recorded Investment | 6,336 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 6,764 | ||
Impaired Financing Receivable, Related Allowance | 426 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 5,309 | ||
Outstanding Principal | 7,028 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 5,491 | ||
Recorded Investment | 5,491 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,015 | ||
Impaired Financing Receivable, Recorded Investment | 6,324 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 6,458 | ||
Impaired Financing Receivable, Related Allowance | 146 | ||
Residential Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | ||
Outstanding Principal | 3,095 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 3,575 | ||
Recorded Investment | 3,575 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 215 | ||
Impaired Financing Receivable, Recorded Investment | 215 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 223 | ||
Impaired Financing Receivable, Related Allowance | 56 | ||
Real Estate Construction and Land Development | |||
Financing Receivable, Impaired [Line Items] | |||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 0 | ||
Recorded Investment | 0 | ||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 237 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 0 | ||
Recorded Investment | 0 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 0 | ||
Impaired Financing Receivable, Recorded Investment | 237 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 237 | ||
Impaired Financing Receivable, Related Allowance | 0 | ||
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 0 | ||
Recorded Investment | 0 | ||
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | ||
Outstanding Principal | 1,463 | ||
Certain Loans and Debt Securities Acquired in Transfer, with Related Allowance for Credit Losses Due to Subsequent Impairment | 1,762 | ||
Recorded Investment | 1,762 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 561 | ||
Impaired Financing Receivable, Recorded Investment | 561 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 570 | ||
Impaired Financing Receivable, Related Allowance | $ 143 |
Loans Receivable - Change in Ac
Loans Receivable - Change in Accretable Yield (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | $ 36,943 |
PCI Loans | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at the beginning of the period | 9,493 |
Accretion | (581) |
Disposal and other | (452) |
Balance at the end of the period | 8,460 |
Commercial Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | 35,193 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | 22,639 |
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | 5,935 |
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | 6,619 |
Residential Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | 277 |
Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | 911 |
Consumer Portfolio Segment [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Impaired Financing Receivable, Average Recorded Investment | $ 562 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Changes in Loan Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | $ 1,822 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (1,597) | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 36,171 | $ 35,042 | |
Recoveries | (1,180) | ||
Recoveries | 894 | ||
Provision for Credit Losses | 9,964 | 920 | |
Ending Balance | $ 36,171 | 36,152 | |
Financing Receivable, Allowance for Credit Loss | 47,540 | ||
Amortized Cost [Member] | |||
Schedule of changes in allowance for loan losses | |||
Provision for Credit Losses | 3,100 | ||
Commercial Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (2,935) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (1,222) | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 23,933 | 23,711 | |
Recoveries | (1,069) | ||
Recoveries | 159 | ||
Provision for Credit Losses | 7,021 | 1,069 | |
Ending Balance | 23,933 | 24,836 | |
Financing Receivable, Allowance for Credit Loss | 27,866 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (1,348) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (1,087) | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 11,739 | 11,343 | |
Recoveries | (1,057) | ||
Recoveries | 7 | ||
Provision for Credit Losses | 3,539 | 508 | |
Ending Balance | 11,739 | 11,755 | |
Financing Receivable, Allowance for Credit Loss | 13,900 | ||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | 452 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (135) | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 4,512 | 4,898 | |
Recoveries | (12) | ||
Recoveries | 3 | ||
Provision for Credit Losses | 1,375 | 355 | |
Ending Balance | 4,512 | 5,256 | |
Financing Receivable, Allowance for Credit Loss | 6,216 | ||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (2,039) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 7,682 | 7,470 | |
Recoveries | 0 | ||
Recoveries | 149 | ||
Provision for Credit Losses | 2,107 | 206 | |
Ending Balance | 7,682 | 7,825 | |
Financing Receivable, Allowance for Credit Loss | 7,750 | ||
Residential Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | 1,471 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 1,458 | 1,203 | |
Recoveries | (3) | ||
Recoveries | 0 | ||
Provision for Credit Losses | 94 | 59 | |
Ending Balance | 1,458 | 1,247 | |
Financing Receivable, Allowance for Credit Loss | 3,026 | ||
Real Estate Construction and Land Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | 6,669 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 3,060 | 2,194 | |
Recoveries | (14) | ||
Recoveries | 618 | ||
Provision for Credit Losses | 2,565 | (395) | |
Ending Balance | 3,060 | 2,417 | |
Financing Receivable, Allowance for Credit Loss | 12,308 | ||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (571) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 1,455 | 1,240 | |
Recoveries | (14) | ||
Recoveries | 618 | ||
Provision for Credit Losses | (34) | (436) | |
Ending Balance | 1,455 | 1,422 | |
Financing Receivable, Allowance for Credit Loss | 864 | ||
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | 7,240 | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 1,605 | 954 | |
Recoveries | 0 | ||
Recoveries | 0 | ||
Provision for Credit Losses | 2,599 | 41 | |
Ending Balance | 1,605 | 995 | |
Financing Receivable, Allowance for Credit Loss | 11,444 | ||
Consumer Portfolio Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (2,484) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | (375) | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 6,821 | 6,581 | |
Recoveries | (94) | ||
Recoveries | 117 | ||
Provision for Credit Losses | 284 | 368 | |
Ending Balance | 6,821 | 6,480 | |
Financing Receivable, Allowance for Credit Loss | 4,340 | ||
Unallocated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method | (899) | ||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||
Schedule of changes in allowance for loan losses | |||
Beginning Balance | 899 | 1,353 | |
Recoveries | 0 | ||
Recoveries | 0 | ||
Provision for Credit Losses | 0 | (181) | |
Ending Balance | $ 899 | $ 1,172 | |
Financing Receivable, Allowance for Credit Loss | 0 | ||
Total Allowance for Credit Losses [Member] | |||
Schedule of changes in allowance for loan losses | |||
Financing Receivable, Allowance for Credit Loss | $ 47,540 | ||
Unemployment Rate [Member] | |||
Schedule of changes in allowance for loan losses | |||
Current Expected Credit Losses Model Valuation Input | 6.00% | 3.70% | |
COVID-19 [Member] | |||
Schedule of changes in allowance for loan losses | |||
Provision for Credit Losses | $ 6,900 | ||
Current Expected Credit Losses Model Valuation Input | 0.20% | ||
Prior to COVID-19 [Member] | |||
Schedule of changes in allowance for loan losses | |||
Current Expected Credit Losses Model Valuation Input | 1.70% |
Allowance for Loan Losses - Act
Allowance for Loan Losses - Activity in Allowance for Losses Disaggregated on Basis of Impairment (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 1,597,000 | ||||
Impaired Financing Receivable, Recorded Investment | $ 57,481,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 2,143,000 | ||||
Loans Collectively Evaluated for Impairment | 31,759,000 | ||||
PCI Loans | 2,269,000 | ||||
Total Allowance for Credit Losses | $ 36,152,000 | $ 37,993,000 | 36,171,000 | $ 35,042,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 1,180,000 | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff Net | (417,000) | ||||
Allowance for Loan and Lease Losses, Write-offs | 704,000 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 894,000 | ||||
Provision for credit losses | $ 9,964,000 | 920,000 | |||
Provision for Loan and Lease Losses, Increase (Decrease), Percentage | 26.20% | ||||
Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 1,222,000 | ||||
Impaired Financing Receivable, Recorded Investment | 56,468,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 1,944,000 | ||||
Loans Collectively Evaluated for Impairment | 20,394,000 | ||||
PCI Loans | 1,595,000 | ||||
Total Allowance for Credit Losses | 24,836,000 | 20,998,000 | 23,933,000 | 23,711,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 1,069,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 103,000 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 159,000 | ||||
Provision for credit losses | 7,021,000 | 1,069,000 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 1,087,000 | ||||
Impaired Financing Receivable, Recorded Investment | 43,808,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 1,372,000 | ||||
Loans Collectively Evaluated for Impairment | 9,772,000 | ||||
PCI Loans | 595,000 | ||||
Total Allowance for Credit Losses | 11,755,000 | 10,391,000 | 11,739,000 | 11,343,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 1,057,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 103,000 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 7,000 | ||||
Provision for credit losses | 3,539,000 | 508,000 | |||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 135,000 | ||||
Impaired Financing Receivable, Recorded Investment | 6,336,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 426,000 | ||||
Loans Collectively Evaluated for Impairment | 3,558,000 | ||||
PCI Loans | 528,000 | ||||
Total Allowance for Credit Losses | 5,256,000 | 4,964,000 | 4,512,000 | 4,898,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 12,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3,000 | ||||
Provision for credit losses | 1,375,000 | 355,000 | |||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Impaired Financing Receivable, Recorded Investment | 6,324,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 146,000 | ||||
Loans Collectively Evaluated for Impairment | 7,064,000 | ||||
PCI Loans | 472,000 | ||||
Total Allowance for Credit Losses | 7,825,000 | 5,643,000 | 7,682,000 | 7,470,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | ||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 149,000 | ||||
Provision for credit losses | 2,107,000 | 206,000 | |||
Residential Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Impaired Financing Receivable, Recorded Investment | 215,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 56,000 | ||||
Loans Collectively Evaluated for Impairment | 1,316,000 | ||||
PCI Loans | 86,000 | ||||
Total Allowance for Credit Losses | 1,247,000 | 2,929,000 | 1,458,000 | 1,203,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 3,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 15,000 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | ||||
Provision for credit losses | 94,000 | 59,000 | |||
Real Estate Construction and Land Development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 0 | ||||
Loans Collectively Evaluated for Impairment | 2,823,000 | ||||
PCI Loans | 237,000 | ||||
Total Allowance for Credit Losses | 2,417,000 | 9,729,000 | 3,060,000 | 2,194,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 14,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 618,000 | ||||
Provision for credit losses | 2,565,000 | (395,000) | |||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Impaired Financing Receivable, Recorded Investment | 237,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 0 | ||||
Loans Collectively Evaluated for Impairment | 1,296,000 | ||||
PCI Loans | 159,000 | ||||
Total Allowance for Credit Losses | 1,422,000 | 884,000 | 1,455,000 | 1,240,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 14,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 618,000 | ||||
Provision for credit losses | (34,000) | (436,000) | |||
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 0 | ||||
Loans Collectively Evaluated for Impairment | 1,527,000 | ||||
PCI Loans | 78,000 | ||||
Total Allowance for Credit Losses | 995,000 | 8,845,000 | 1,605,000 | 954,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | ||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | ||||
Provision for credit losses | 2,599,000 | 41,000 | |||
Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 375,000 | ||||
Impaired Financing Receivable, Recorded Investment | 561,000 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 143,000 | ||||
Loans Collectively Evaluated for Impairment | 6,327,000 | ||||
PCI Loans | 351,000 | ||||
Total Allowance for Credit Losses | 6,480,000 | 4,337,000 | 6,821,000 | 6,581,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 94,000 | ||||
Allowance for Loan and Lease Losses, Write-offs | 586,000 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 117,000 | ||||
Provision for credit losses | 284,000 | 368,000 | |||
Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | ||||
Schedule of allowance for loan losses on the basis of impairment method | |||||
Loans Individually Evaluated for Impairment | 0 | ||||
Loans Collectively Evaluated for Impairment | 899,000 | ||||
PCI Loans | 0 | ||||
Total Allowance for Credit Losses | 1,172,000 | $ 0 | $ 899,000 | $ 1,353,000 | |
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | ||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | ||||
Provision for credit losses | $ 0 | $ (181,000) |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | $ 36,152 | $ 37,993 | $ 36,171 | $ 35,042 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,143 | ||||
Financing Receivable, Individually Evaluated for Impairment | 57,481 | ||||
Impaired Financing Receivable, Recorded Investment | 57,481 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 3,692,288 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 18,110 | ||||
Total Gross Loans Receivable | $ 3,852,376 | 3,767,879 | |||
Allowance for Loan and Lease Losses, Write-offs | 704 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 894 | ||||
Provision for credit losses | 9,964 | 920 | |||
Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 24,836 | 20,998 | 23,933 | 23,711 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,944 | ||||
Financing Receivable, Individually Evaluated for Impairment | 56,468 | ||||
Impaired Financing Receivable, Recorded Investment | 56,468 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 2,876,992 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 12,773 | ||||
Total Gross Loans Receivable | 3,007,629 | 2,946,233 | |||
Allowance for Loan and Lease Losses, Write-offs | 103 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 159 | ||||
Provision for credit losses | 7,021 | 1,069 | |||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 11,755 | 10,391 | 11,739 | 11,343 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,372 | ||||
Financing Receivable, Individually Evaluated for Impairment | 43,808 | ||||
Impaired Financing Receivable, Recorded Investment | 43,808 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 806,044 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 2,368 | ||||
Total Gross Loans Receivable | 889,685 | 852,220 | |||
Allowance for Loan and Lease Losses, Write-offs | 103 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 7 | ||||
Provision for credit losses | 3,539 | 508 | |||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 5,256 | 4,964 | 4,512 | 4,898 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 426 | ||||
Financing Receivable, Individually Evaluated for Impairment | 6,336 | ||||
Impaired Financing Receivable, Recorded Investment | 6,336 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 793,984 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 4,914 | ||||
Total Gross Loans Receivable | 805,636 | 805,234 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 3 | ||||
Provision for credit losses | 1,375 | 355 | |||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 7,825 | 5,643 | 7,682 | 7,470 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 146 | ||||
Financing Receivable, Individually Evaluated for Impairment | 6,324 | ||||
Impaired Financing Receivable, Recorded Investment | 6,324 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 1,276,964 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 5,491 | ||||
Total Gross Loans Receivable | 1,312,308 | 1,288,779 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 149 | ||||
Provision for credit losses | 2,107 | 206 | |||
Residential Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 1,247 | 2,929 | 1,458 | 1,203 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 56 | ||||
Financing Receivable, Individually Evaluated for Impairment | 215 | ||||
Impaired Financing Receivable, Recorded Investment | 215 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 127,870 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 3,575 | ||||
Total Gross Loans Receivable | 136,782 | 131,660 | |||
Allowance for Loan and Lease Losses, Write-offs | 15 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | ||||
Provision for credit losses | 94 | 59 | |||
Real Estate Construction and Land Development | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 2,417 | 9,729 | 3,060 | 2,194 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 237 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 274,409 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | ||||
Total Gross Loans Receivable | 287,034 | 274,646 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 618 | ||||
Provision for credit losses | 2,565 | (395) | |||
Real Estate Construction and Land Development | One-to-four Family Real Estate Construction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 1,422 | 884 | 1,455 | 1,240 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 237 | ||||
Impaired Financing Receivable, Recorded Investment | 237 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 104,059 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | ||||
Total Gross Loans Receivable | 98,730 | 104,296 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 618 | ||||
Provision for credit losses | (34) | (436) | |||
Real Estate Construction and Land Development | Five or More Family Residential and Commercial Properties [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 995 | 8,845 | 1,605 | 954 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | ||||
Financing Receivable, Individually Evaluated for Impairment | 0 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 170,350 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 0 | ||||
Total Gross Loans Receivable | 188,304 | 170,350 | |||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | ||||
Provision for credit losses | 2,599 | 41 | |||
Consumer Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 6,480 | 4,337 | 6,821 | 6,581 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 143 | ||||
Financing Receivable, Individually Evaluated for Impairment | 561 | ||||
Impaired Financing Receivable, Recorded Investment | 561 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Loans Collectively Evaluated for Impairment | 413,017 | ||||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Carrying Amount | 1,762 | ||||
Total Gross Loans Receivable | 420,931 | 415,340 | |||
Allowance for Loan and Lease Losses, Write-offs | 586 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 117 | ||||
Provision for credit losses | 284 | 368 | |||
Unallocated | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Allowance | 1,172 | $ 0 | 899 | $ 1,353 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 0 | ||||
Schedule of loan receivables on the basis of impairment method | |||||
Allowance for Loan and Lease Losses, Write-offs | 0 | ||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | ||||
Provision for credit losses | $ 0 | $ (181) |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Changes in other real estate owned | |||
Balance at the beginning of the period | $ 841 | $ 1,983 | $ 1,983 |
Additions | 270 | 0 | |
Proceeds from dispositions | (266) | (79) | |
Loss on sales, net | (4) | 0 | 0 |
Balance at the end of the period | $ 841 | $ 1,904 | $ 841 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Change in Goodwill (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 240,939,000 |
Balance at the end of the period | 240,939,000 |
Goodwill, Impairment Loss | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets, Textual (Details) - Core Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Premier Commercial Bancorp | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Puget Sound Bancorp | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Washington Banking Company | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Valley Community Bancshares | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Change in Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Balance at the beginning of the period | $ 16,613 | $ 20,614 | $ 20,614 |
Amortization | (903) | (1,025) | (1,025) |
Balance at the end of the period | $ 15,710 | $ 19,589 | $ 16,613 |
Junior Subordinated Debenture_2
Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 01, 2014 | |
Debt Instrument [Line Items] | ||||
Junior subordinated debentures | $ 20,668 | $ 20,595 | ||
Adjustable rate of trust preferred securities | 3.01% | |||
Junior Subordinated Debentures | ||||
Debt Instrument [Line Items] | ||||
Weighted average rate | 5.56% | 7.06% | ||
Washington Banking | ||||
Debt Instrument [Line Items] | ||||
Assumed trust preferred securities and junior subordinated debentures, fair value | $ 18,900 |
Securities Sold Under Agreeme_3
Securities Sold Under Agreement to Repurchase (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Repurchase Agreements [Abstract] | ||
Repurchase agreements, maturity period | 1 day | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Repurchase agreement obligations | $ 11,792 | $ 20,169 |
Residential | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Repurchase agreement obligations | 2,621 | 8,452 |
Commercial | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Repurchase agreement obligations | $ 9,171 | $ 11,717 |
Other Borrowings - Textual (Det
Other Borrowings - Textual (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Federal Home Loan Bank, Advances [Line Items] | ||
Average balance during the period | $ 989,000 | $ 1,849,000 |
Maximum month-end balance during the period | $ 0 | $ 25,000,000 |
Weighted average rate during the period | 0.41% | 3.29% |
Credit facility with the FHLB | $ 898,500,000 | |
FHLB advances outstanding | 0 | $ 0 |
Maximum federal funds purchases | 140,000,000 | |
Federal funds purchased | 0 | 0 |
Federal Reserve Bank Advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Credit facility with the Federal Reserve Bank of San Francisco | 74,000,000 | |
Borrowings outstanding | $ 0 | $ 0 |
Minimum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Unencumbered collateral in amount equal to varying percentages | 100.00% | |
Maximum | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Unencumbered collateral in amount equal to varying percentages | 160.00% |
Other Borrowings - Federal Fund
Other Borrowings - Federal Funds Purchased (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Federal Funds Purchased | $ 0 | $ 0 |
Average balance during the period | 989,000 | 1,849,000 |
Maximum month-end balance during the period | $ 0 | $ 25,000,000 |
Weighted average rate during the period | 0.41% | 3.29% |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Customers | ||
Derivative Asset | ||
Estimated Fair Value | $ 49 | |
Derivative Liability | ||
Estimated Fair Value | $ 8,100 | |
Third Parties | ||
Derivative Asset | ||
Estimated Fair Value | (8,100) | |
Derivative Liability | ||
Estimated Fair Value | (49) | |
Interest rate swap | ||
Derivative Asset | ||
Estimated Fair Value | 28,075 | |
Derivative Liability | ||
Estimated Fair Value | 28,075 | |
Interest rate swap | Non-hedging interest rate derivatives | ||
Derivative Asset | ||
Notional Amounts | 233,014 | 221,436 |
Estimated Fair Value | 8,318 | |
Derivative Liability | ||
Notional Amounts | $ 223,014 | 221,436 |
Estimated Fair Value | $ 8,318 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Weighted Average Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,475 | 31,557 | |
Net income: | |||
Net income | $ 12,191 | $ 16,552 | $ 16,552 |
Dividends and undistributed earnings allocated to participating securities (1) | (6) | (27) | |
Net income allocated to common shareholders | $ 12,185 | $ 16,525 | |
Basic: | |||
Weighted average common shares outstanding (in shares) | 36,357,812 | 36,881,499 | |
Less: Restricted stock awards (in shares) | (15,722) | (55,967) | |
Total basic weighted average common shares outstanding (in shares) | 36,342,090 | 36,825,532 | |
Diluted: | |||
Basic weighted average common shares outstanding (in shares) | 36,342,090 | 36,825,532 | |
Effect of potentially dilutive common shares (in shares) | 254,551 | 185,108 | |
Total diluted weighted average common shares outstanding (in shares) | 36,596,641 | 37,010,640 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | Jan. 22, 2020 | Oct. 23, 2019 | Jul. 24, 2019 | Apr. 24, 2019 | Jan. 23, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Dividends Payable [Line Items] | |||||||
Declared | Jan. 22, 2020 | Oct. 23, 2019 | Jul. 24, 2019 | Apr. 24, 2019 | Jan. 23, 2019 | ||
Cash Dividend per Share (in usd per share) | $ 0.20 | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.20 | $ 0.18 |
Record Date | Feb. 6, 2020 | Nov. 7, 2019 | Aug. 8, 2019 | May 8, 2019 | Feb. 7, 2019 | ||
Paid Date | Feb. 20, 2020 | Nov. 21, 2019 | Aug. 22, 2019 | May 22, 2019 | Feb. 21, 2019 | ||
Special Dividend | |||||||
Dividends Payable [Line Items] | |||||||
Declared | Oct. 23, 2019 | ||||||
Cash Dividend per Share (in usd per share) | $ 0.10 | ||||||
Record Date | Nov. 7, 2019 | ||||||
Paid Date | Nov. 21, 2019 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program (Details) - $ / shares | Oct. 23, 2014 | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 16, 2020 |
Class of Stock [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 21,475 | 31,557 | ||||
Eleventh Stock Repurchase Plan | ||||||
Stockholders Equity (Textual) [Abstract] | ||||||
Number of shares repurchased (in shares) | 0 | 639,922 | ||||
Withholding taxes average price per share (in usd per share) | $ 23.95 | |||||
Twelfth Stock Repurchase Plan [Member] [Member] [Domain] | ||||||
Stockholders Equity (Textual) [Abstract] | ||||||
Outstanding share percent | 5.00% | |||||
Outstanding common shares in the plan (in shares) | 1,799,054 | |||||
Number of shares repurchased (in shares) | 155,778 | |||||
Withholding taxes average price per share (in usd per share) | $ 20.34 |
Stockholders' Equity - Shares R
Stockholders' Equity - Shares Repurchased (Details) - Shares Related to Withholding Taxes on the Vesting of Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Repurchased shares to pay withholding taxes (in shares) | 25,882 | 25,854 |
Stock repurchase to pay withholding taxes average share price (in usd per share) | $ 21.79 | $ 31.01 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive (Loss) Income [Roll Forward] | |||
Beginning balance | $ 809,311 | $ 760,723 | |
Other comprehensive income | 7,914 | 8,016 | |
Effects of implementation of accounting change related to operating leases | $ (399) | ||
Ending balance | 798,438 | 778,191 | |
Accumulated other comprehensive income (loss), net | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 8,707 | 8,028 | |
Increase (Decrease) in Accumulated Other Comprehensive (Loss) Income [Roll Forward] | |||
Beginning balance | 10,378 | (7,455) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 793 | 12 | |
Other comprehensive income | 7,914 | 8,016 | |
Effects of implementation of accounting change related to operating leases | 0 | ||
Ending balance | $ 18,292 | $ 561 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurement on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | $ 961,092 | $ 952,312 |
U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 87,062 | 105,223 |
Municipal securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 179,608 | 133,014 |
Residential | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 322,684 | 339,608 |
Commercial | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 325,756 | 327,095 |
Corporate obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 23,832 | 24,194 |
Other asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 22,150 | 23,178 |
Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 952,312 | |
Equity security | 96 | 148 |
Recurring | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 87,062 | 105,223 |
Recurring | Municipal securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 179,608 | 133,014 |
Recurring | Residential | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 322,684 | 339,608 |
Recurring | Commercial | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 325,756 | 327,095 |
Recurring | Corporate obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 23,832 | 24,194 |
Recurring | Other asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 22,150 | 23,178 |
Recurring | Interest rate swap | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative assets - interest rate swaps | 28,075 | 8,318 |
Derivative liabilities - interest rate swaps | 28,075 | 8,318 |
Recurring | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | |
Equity security | 96 | 148 |
Recurring | Level 1 | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Municipal securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 850 | 0 |
Recurring | Level 1 | Residential | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Commercial | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Corporate obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Other asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 1 | Interest rate swap | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative assets - interest rate swaps | 0 | 0 |
Derivative liabilities - interest rate swaps | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 952,312 | |
Equity security | 0 | 0 |
Recurring | Level 2 | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 87,062 | 105,223 |
Recurring | Level 2 | Municipal securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 178,758 | 133,014 |
Recurring | Level 2 | Residential | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 339,608 | |
Recurring | Level 2 | Commercial | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 327,095 | |
Recurring | Level 2 | Corporate obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 24,194 | |
Recurring | Level 2 | Other asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 23,178 | |
Recurring | Level 2 | Interest rate swap | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative assets - interest rate swaps | 28,075 | 8,318 |
Derivative liabilities - interest rate swaps | 28,075 | 8,318 |
Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Equity security | 0 | 0 |
Recurring | Level 3 | U.S. Treasury and U.S. Government-sponsored agencies | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Municipal securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Residential | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Commercial | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Corporate obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Other asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total investment securities available for sale | 0 | 0 |
Recurring | Level 3 | Interest rate swap | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Derivative assets - interest rate swaps | 0 | 0 |
Derivative liabilities - interest rate swaps | $ 0 | $ 0 |
Fair Value Measurements - Textu
Fair Value Measurements - Textual (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair value assets transfers between level 1 and level 2 transfer amount | $ 0 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurement on Nonrecurring Basis (Details) - Nonrecurring - Impaired Loans - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair value measurements of assets on a nonrecurring basis | |||
Basis | $ 374 | $ 4,111 | |
Fair Value | 335 | 3,380 | |
Net Losses (Gains) Recorded in Earnings | 5 | $ 0 | |
Level 1 | |||
Fair value measurements of assets on a nonrecurring basis | |||
Fair Value | 0 | 0 | |
Level 2 | |||
Fair value measurements of assets on a nonrecurring basis | |||
Fair Value | 0 | 0 | |
Level 3 | |||
Fair value measurements of assets on a nonrecurring basis | |||
Fair Value | 335 | 3,380 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Fair value measurements of assets on a nonrecurring basis | |||
Basis | 374 | 4,111 | |
Fair Value | 335 | 3,380 | |
Net Losses (Gains) Recorded in Earnings | 5 | $ 0 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Level 1 | |||
Fair value measurements of assets on a nonrecurring basis | |||
Fair Value | 0 | 0 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Level 2 | |||
Fair value measurements of assets on a nonrecurring basis | |||
Fair Value | 0 | 0 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Level 3 | |||
Fair value measurements of assets on a nonrecurring basis | |||
Fair Value | $ 335 | $ 3,380 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information, Level 3 (Details) - Nonrecurring - Impaired Loans $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Collateral-dependent loans | $ 335 | $ 3,380 |
Level 3 | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Collateral-dependent loans | $ 335 | $ 3,380 |
Level 3 | Minimum | Comparability Adjustment | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Range of Inputs | 0 | (0.185) |
Level 3 | Maximum | Comparability Adjustment | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Range of Inputs | 0 | 1.735 |
Level 3 | Weighted Average | Comparability Adjustment | ||
Fair value measurements for financial instruments measured at fair value on a non-recurring basis | ||
Range of Inputs | 0 | 0.368 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | $ 162,913 | $ 228,568 |
Investment securities available for sale | 961,092 | 952,312 |
Loans held for sale | 3,808 | 5,533 |
Loans receivable, net | 3,804,836 | 3,731,708 |
Accrued interest receivable | 14,940 | 14,446 |
Derivative assets - interest rate swaps | 28,075 | 8,318 |
Equity security | 96 | 148 |
Financial Liabilities: | ||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | 4,091,959 | 4,058,098 |
Certificate of deposit accounts | 525,989 | 524,578 |
Securities sold under agreement to repurchase | 11,792 | 20,169 |
Junior subordinated debentures | 20,668 | 20,595 |
Accrued interest payable | 154 | 199 |
Derivative liabilities - interest rate swaps | 28,075 | 8,318 |
Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 228,568 |
Investment securities available for sale | 961,092 | 952,312 |
Loans held for sale | 3,935 | 5,704 |
Loans receivable, net | 3,851,281 | 3,791,557 |
Accrued interest receivable | 14,940 | 14,446 |
Derivative assets - interest rate swaps | 28,075 | 8,318 |
Equity security | 96 | 148 |
Financial Liabilities: | ||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | 4,091,959 | 4,058,098 |
Certificate of deposit accounts | 530,580 | 529,679 |
Securities sold under agreement to repurchase | 11,792 | 20,169 |
Junior subordinated debentures | 17,750 | 20,000 |
Accrued interest payable | 154 | 199 |
Derivative liabilities - interest rate swaps | 28,075 | 8,318 |
Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 162,913 | 228,568 |
Investment securities available for sale | 850 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 1 | 79 |
Derivative assets - interest rate swaps | 0 | 0 |
Equity security | 148 | |
Financial Liabilities: | ||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | 4,091,959 | 4,058,098 |
Certificate of deposit accounts | 0 | 0 |
Securities sold under agreement to repurchase | 11,792 | 20,169 |
Junior subordinated debentures | 0 | 0 |
Accrued interest payable | 69 | 95 |
Derivative liabilities - interest rate swaps | 0 | 0 |
Fair Value | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 960,242 | 952,312 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 3,851 | 3,668 |
Derivative assets - interest rate swaps | 28,075 | 8,318 |
Equity security | 0 | 0 |
Financial Liabilities: | ||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | 0 | 0 |
Certificate of deposit accounts | 530,580 | 529,679 |
Securities sold under agreement to repurchase | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Accrued interest payable | 59 | 64 |
Derivative liabilities - interest rate swaps | 28,075 | 8,318 |
Fair Value | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available for sale | 0 | 0 |
Loans held for sale | 3,935 | 5,704 |
Loans receivable, net | 3,851,281 | 3,791,557 |
Accrued interest receivable | 11,088 | 10,699 |
Derivative assets - interest rate swaps | 0 | 0 |
Equity security | 0 | 0 |
Financial Liabilities: | ||
Noninterest deposits, interest bearing demand deposits, money market accounts and savings accounts | 0 | 0 |
Certificate of deposit accounts | 0 | 0 |
Securities sold under agreement to repurchase | 0 | 0 |
Junior subordinated debentures | 17,750 | 20,000 |
Accrued interest payable | 26 | 40 |
Derivative liabilities - interest rate swaps | $ 0 | $ 0 |
Cash Requirement (Details)
Cash Requirement (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift [Abstract] | ||
Required reserve balance | $ 0 | $ 17.1 |
Commitments and Contingencies_3
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2020 | Jan. 01, 2019 | Dec. 31, 2018 | |
Other Commitments [Line Items] | ||||||
Provision for Loan, Lease, and Other Losses | $ 7,946 | $ 920 | ||||
Unused Commitments to Extend Credit | 1,123,902 | 1,212,360 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (399) | |||||
Unused Commitments to Extend Credit [Member] | ||||||
Other Commitments [Line Items] | ||||||
Provision for Loan, Lease, and Other Losses | 3,700 | |||||
Commercial Portfolio Segment [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 600,847 | 637,053 | ||||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 557,050 | 584,287 | ||||
Commercial Portfolio Segment [Member] | Non Owner Occupied Commercial Real Estate [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 30,132 | 35,573 | ||||
Commercial Portfolio Segment [Member] | Owner Occupied Commercial Real Estate [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 13,665 | 17,193 | ||||
Real Estate Construction and Land Development [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 266,743 | 305,409 | ||||
Real Estate Construction and Land Development [Member] | One to Four Family Real Estate Construction [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 65,740 | 75,066 | ||||
Real Estate Construction and Land Development [Member] | Five or More Family Residential and Commercial Properties [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 201,003 | 230,343 | ||||
Consumer Portfolio Segment [Member] | ||||||
Other Commitments [Line Items] | ||||||
Unused Commitments to Extend Credit | 256,312 | 269,898 | ||||
Unused Commitments to Extend Credit [Member] | ||||||
Other Commitments [Line Items] | ||||||
Accounts Receivable, Allowance for Credit Loss | 1,990 | $ 306 | $ 306 | $ 4,008 | 306 | $ 306 |
Provision for Other Credit Losses | $ (2,018) | $ 0 | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 3,700 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 5.00% | 16.30% |
Recognized Tax Benefit | $ 1 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Thousands | May 03, 2020USD ($)loan |
Subsequent Event [Line Items] | |
Loans funded | loan | 3,386 |
Total amount of loans funded | $ 785,000 |
Additional loans funded | loan | 784 |
Total amount of additional loans funded | $ 86,100 |
Average loan balance for funded and approved loans | $ 216 |
Bank interest rate (as a percent) | 1.00% |
Uncategorized Items - hfwa-2020
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 111,170,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 161,910,000 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect | (50,740,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (399,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (5,615,000) |