Bank of the West 2014 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2014 Bank of the West annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 64

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64

Impaired loans and leases
The following tables present information related to impaired loans and leases that are individually evaluated:
As of December 31, 2014
Commercial Product
Consumer
Product
(dollars in thousands)
Commercial
& Industrial
Commercial
Real Estate Construction
Equipment
Financing Agriculture Total
Residential
Secured—
Closed-End
Recorded investment in impaired loans
and leases:
Impaired loans and leases with related
allowance $ 6,040 $ 26,869 $30,035 $ - $ - $ 62,944 $188,220
Impaired loans and leases with no
related allowance 7,441 36,281 47,432 - 13,181 104,335 141,477
Total impaired loans and leases $ 13,481 $ 63,150 $77,467 $ - $ 13,181 $167,279 $329,697
Allowance for loan and lease losses on
impaired loans and leases $ 226 $ 290 $ 435 $ - $ - $ 951 $ 26,664
Total unpaid principal balance 20,219 71,135 90,188 - 28,754 210,296 366,683
Average recorded investment in
impaired loans and leases 52,665 132,608 67,169 1,525 52,496 306,463 332,154
As of December 31, 2013
Commercial Product
Consumer
Product
(dollars in thousands)
Commercial
& Industrial
Commercial
Real Estate Construction
Equipment
Financing Agriculture Total
Residential
Secured—
Closed-End
Recorded investment in impaired loans
and leases:
Impaired loans and leases with related
allowance $ 17,656 $ 70,099 $ - $ 372 $ 9,738 $ 97,865 $199,396
Impaired loans and leases with no
related allowance 83,999 142,765 58,615 3,341 84,767 373,487 129,946
Total impaired loans and leases $101,655 $212,864 $58,615 $3,713 $ 94,505 $471,352 $329,342
Allowance for loan and lease losses on
impaired loans and leases $ 8,061 $ 4,045 $ - $ 159 $ 3,284 $ 15,549 $ 28,983
Total unpaid principal balance 123,164 225,933 80,608 3,713 114,127 547,545 364,765
Average recorded investment in
impaired loans and leases 105,775 208,454 83,634 4,789 68,906 471,558 327,389
Impaired loans without a related allowance for credit losses are generally collateralized by assets with fair values
(on an “as-is” basis) in excess of the recorded investment in the loans. For commercial loans, payments on impaired
loans are generally applied to reduce the outstanding principal balance of such loans. For residential loans, payments on
impaired loans are accounted for according to the cash method where interest income is recognized only as it is
collected. Interest income recognized on impaired loans was $1.3 million and $16.7 million for the commercial and
consumer portfolios for 2014, respectively and $0.9 million and $17.0 million for the commercial and consumer
portfolios for 2013, respectively.
Troubled debt restructurings
In situations where for economic or legal reasons related to the borrower’s financial difficulties, the Bank grants a
concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. For the
commercial loan portfolio, concessions granted by the Bank generally include term extensions, renewals, forbearances
of principal and interest payments, and interest rate modifications for each of the classes shown below. Such loans are
considered for individually evaluated impairment if they meet certain thresholds. In addition, for smaller balance
nonperforming loans, we may use third-party collection agencies who generally enter into payment or settlement
arrangements with the borrowers in order to protect as much of the Bank’s investment in the loan as possible. For our
-27-