XML 52 R37.htm IDEA: XBRL DOCUMENT

Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Summary of Components of Loans and Lease Finance Receivables, Excluding PCI Loans

The following table provides a summary of total loans and lease finance receivables by type.


	December 31,
	2022				2021
	(Dollars in thousands)

Commercial real estate	$	6,884,948			$	5,789,730
Construction		88,271				62,264
SBA		290,908				288,600
SBA - Paycheck Protection Program (PPP)		9,087				186,585
Commercial and industrial		948,683				813,063
Dairy & livestock and agribusiness		433,564				386,219
Municipal lease finance receivables		81,126				45,933
SFR mortgage		266,024				240,654
Consumer and other loans		76,781				74,665
Total loans, at amortized cost		9,079,392				7,887,713
Less: Allowance for credit losses		(85,117	)			(65,019	)
Total loans and lease finance receivables, net	$	8,994,275			$	7,822,694

Summary of loans by type and origination year, according to our internal risk ratings

The following table summarizes loans by type and origination year, according to our internal risk ratings as of the dates presented.


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2022	2022				2021				2020				2019				2018				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	1,363,733			$	1,197,290			$	957,965			$	542,827			$	506,613			$	1,889,478			$	175,373			$	39,616			$	6,672,895
Special Mention		3,285				12,114				11,284				32,976				21,646				76,290				908				—				158,503
Substandard		—				—				15,624				16,297				94				21,535				—				—				53,550
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Commercial real estate loans:	$	1,367,018			$	1,209,404			$	984,873			$	592,100			$	528,353			$	1,987,303			$	176,281			$	39,616			$	6,884,948

Construction loans:
Risk Rating:
Pass	$	17,203			$	26,689			$	16,578			$	—			$	—			$	—			$	22,850			$	—			$	83,320
Special Mention		—				—				—				—				4,951				—				—				—				4,951
Substandard		—				—				—				—				—				—				—				—				—
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Construction loans:	$	17,203			$	26,689			$	16,578			$	—			$	4,951			$	—			$	22,850			$	—			$	88,271

SBA loans:
Risk Rating:
Pass	$	60,623			$	54,781			$	35,243			$	7,460			$	28,886			$	96,473			$	1,026			$	—			$	284,492
Special Mention		—				—				—				1,321				1,293				2,065				—				—				4,679
Substandard		—				—				—				—				556				1,181				—				—				1,737
Doubtful & Loss		—				—				—				—				—				—				—				—				-
Total SBA loans:	$	60,623			$	54,781			$	35,243			$	8,781			$	30,735			$	99,719			$	1,026			$	—			$	290,908

SBA - PPP loans:
Risk Rating:
Pass	$	—			$	5,515			$	3,572			$	—			$	—			$	—			$	—			$	—			$	9,087
Special Mention		—				—				—				—				—				—				—				—				—
Substandard		—				—				—				—				—				—				—				—				—
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total SBA - PPP loans:	$	—			$	5,515			$	3,572			$	—			$	—			$	—			$	—			$	—			$	9,087

Commercial and industrial loans:
Risk Rating:
Pass	$	154,765			$	135,162			$	80,763			$	101,192			$	42,731			$	85,406			$	305,589			$	7,775			$	913,383
Special Mention		3,955				761				459				1,693				462				8				15,156				544				23,038
Substandard		494				—				728				959				5,624				496				3,200				761				12,262
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Commercial and industrial loans:	$	159,214			$	135,923			$	81,950			$	103,844			$	48,817			$	85,910			$	323,945			$	9,080			$	948,683


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2022	2022				2021				2020				2019				2018				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	207			$	2,318			$	1,515			$	187			$	69			$	628			$	400,229			$	450			$	405,603
Special Mention		—				—				—				599				46				—				17,129				853				18,627
Substandard		1,041				—				40				—				95				113				1,841				6,204				9,334
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Dairy & livestock and agribusiness loans:	$	1,248			$	2,318			$	1,555			$	786			$	210			$	741			$	419,199			$	7,507			$	433,564

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	6,442			$	26,858			$	6,814			$	4,327			$	4,948			$	31,292			$	—			$	—			$	80,681
Special Mention		—				—				—				—				—				262				—				—				262
Substandard		—				—				—				—				—				183				—				—				183
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Municipal lease finance receivables loans:	$	6,442			$	26,858			$	6,814			$	4,327			$	4,948			$	31,737			$	—			$	—			$	81,126

SFR mortgage loans:
Risk Rating:
Pass	$	63,761			$	46,748			$	45,819			$	33,585			$	15,836			$	58,730			$	—			$	—			$	264,479
Special Mention		—				—				943				—				—				—				—				—				943
Substandard		—				—				—				—				—				214				—				388				602
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total SFR mortgage loans:	$	63,761			$	46,748			$	46,762			$	33,585			$	15,836			$	58,944			$	—			$	388			$	266,024

Consumer and other loans:
Risk Rating:
Pass	$	7,653			$	3,722			$	1,298			$	926			$	79			$	1,277			$	58,578			$	1,107			$	74,640
Special Mention		—				561				—				—				—				—				590				—				1,151
Substandard		—				—				—				—				—				13				5				972				990
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Consumer and other loans:	$	7,653			$	4,283			$	1,298			$	926			$	79			$	1,290			$	59,173			$	2,079			$	76,781

Total Loans:
Risk Rating:
Pass	$	1,674,387			$	1,499,083			$	1,149,567			$	690,504			$	599,162			$	2,163,284			$	963,645			$	48,948			$	8,788,580
Special Mention		7,240				13,436				12,686				36,589				28,398				78,625				33,783				1,397				212,154
Substandard		1,535				—				16,392				17,256				6,369				23,735				5,046				8,325				78,658
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Loans:	$	1,683,162			$	1,512,519			$	1,178,645			$	744,349			$	633,929			$	2,265,644			$	1,002,474			$	58,670			$	9,079,392


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Commercial real estate loans:
Risk Rating:
Pass	$	1,137,714			$	963,697			$	591,202			$	534,468			$	484,721			$	1,704,267			$	156,841			$	33,564			$	5,606,474
Special Mention		3,133				20,640				14,477				16,097				43,262				44,045				6,970				6,800				155,424
Substandard		—				—				2,859				6,933				4,646				7,329				5,951				114				27,832
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Commercial real estate loans:	$	1,140,847			$	984,337			$	608,538			$	557,498			$	532,629			$	1,755,641			$	169,762			$	40,478			$	5,789,730

Construction loans:
Risk Rating:
Pass	$	10,511			$	15,896			$	7,236			$	—			$	—			$	—			$	25,262			$	—			$	58,905
Special Mention		—				—				—				3,359				—				—				—				—				3,359
Substandard		—				—				—				—				—				—				—				—				—
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Construction loans:	$	10,511			$	15,896			$	7,236			$	3,359			$	—			$	—			$	25,262			$	—			$	62,264

SBA loans:
Risk Rating:
Pass	$	70,929			$	36,468			$	11,129			$	36,068			$	38,504			$	78,527			$	—			$	—			$	271,625
Special Mention		—				—				—				—				4,056				2,700				—				—				6,756
Substandard		—				—				—				785				4,092				5,342				—				—				10,219
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total SBA loans:	$	70,929			$	36,468			$	11,129			$	36,853			$	46,652			$	86,569			$	—			$	—			$	288,600

SBA - PPP loans:
Risk Rating:
Pass	$	183,614			$	2,969			$	—			$	—			$	—			$	—			$	—			$	—			$	186,583
Special Mention		—				—				—				—				—				—				—				—				—
Substandard		—				2				—				—				—				—				—				—				2
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total SBA - PPP loans:	$	183,614			$	2,971			$	—			$	—			$	—			$	—			$	—			$	—			$	186,585

Commercial and industrial loans:
Risk Rating:
Pass	$	145,494			$	81,944			$	126,647			$	54,690			$	32,455			$	73,600			$	267,659			$	6,992			$	789,481
Special Mention		1,556				1,929				127				1,396				394				26				9,369				177				14,974
Substandard		244				6				602				1,712				505				475				1,991				3,073				8,608
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Commercial and industrial loans:	$	147,294			$	83,879			$	127,376			$	57,798			$	33,354			$	74,101			$	279,019			$	10,242			$	813,063


	Origination Year																								Revolving loans amortized				Revolving loans converted to
December 31, 2021	2021				2020				2019				2018				2017				Prior				cost basis				term loans				Total
	(Dollars in thousands)
Dairy & livestock and agribusiness loans:
Risk Rating:
Pass	$	1,756			$	942			$	1,285			$	1,035			$	95			$	295			$	364,312			$	454			$	370,174
Special Mention		1,052				—				—				—				—				—				6,979				1,301				9,332
Substandard		—				—				—				37				—				—				—				6,676				6,713
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Dairy & livestock and agribusiness loans:	$	2,808			$	942			$	1,285			$	1,072			$	95			$	295			$	371,291			$	8,431			$	386,219

Municipal lease finance receivables loans:
Risk Rating:
Pass	$	9,310			$	7,666			$	—			$	279			$	9,528			$	18,811			$	—			$	—			$	45,594
Special Mention		—				—				—				—				—				339				—				—				339
Substandard		—				—				—				—				—				—				—				—				—
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Municipal lease finance receivables loans:	$	9,310			$	7,666			$	—			$	279			$	9,528			$	19,150			$	—			$	—			$	45,933

SFR mortgage loans:
Risk Rating:
Pass	$	48,813			$	49,261			$	41,776			$	19,877			$	16,046			$	61,965			$	451			$	—			$	238,189
Special Mention		8				—				—				—				—				—				—				—				8
Substandard		—				—				—				—				—				2,052				—				405				2,457
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total SFR mortgage loans:	$	48,821			$	49,261			$	41,776			$	19,877			$	16,046			$	64,017			$	451			$	405			$	240,654

Consumer and other loans:
Risk Rating:
Pass	$	5,145			$	1,947			$	1,415			$	469			$	386			$	1,611			$	58,060			$	3,378			$	72,411
Special Mention		839				—				—				—				—				150				591				403				1,983
Substandard		—				—				—				—				—				15				5				251				271
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Consumer and other loans:	$	5,984			$	1,947			$	1,415			$	469			$	386			$	1,776			$	58,656			$	4,032			$	74,665

Total Loans:
Risk Rating:
Pass	$	1,613,286			$	1,160,790			$	780,690			$	646,886			$	581,735			$	1,939,076			$	872,585			$	44,388			$	7,639,436
Special Mention		6,588				22,569				14,604				20,852				47,712				47,260				23,909				8,681				192,175
Substandard		244				8				3,461				9,467				9,243				15,213				7,947				10,519				56,102
Doubtful & Loss		—				—				—				—				—				—				—				—				—
Total Loans:	$	1,620,118			$	1,183,367			$	798,755			$	677,205			$	638,690			$	2,001,549			$	904,441			$	63,588			$	7,887,713

Schedule of Balance and Activity Related to Allowance for Loan Losses for Held-for-Investment Loans by Type

The following tables present the balance and activity related to the allowance for credit losses for held-for-investment loans by type for the periods presented.


		Year Ended December 31, 2022
		Ending Balance December 31, 2021				Charge-offs				Recoveries				Initial ACL for PCD Loans at Acquisition				Provision Recorded at Acquisition				Provision for (Recapture of) Credit Losses				Ending Balance December 31, 2022
		(Dollars in thousands)
Commercial real estate		$	50,950			$	—			$	—			$	5,086			$	4,127			$	4,643			$	64,806
Construction			765				—				12				122				58				745				1,702
SBA			2,668				(127	)			107				62				64				35				2,809
SBA - PPP			—				—				—				—				—				—				—
Commercial and industrial			6,669				(66	)			503				500				508				2,092				10,206
Dairy & livestock and agribusiness			3,066				—				468				2,832				149				(2,115	)			4,400
Municipal lease finance receivables			100				—				—				3				26				167				296
SFR mortgage			188				—				—				—				—				178				366
Consumer and other loans			613				(4	)			—				—				—				(77	)			532
Total allowance for credit losses		$	65,019			$	(197	)		$	1,090			$	8,605			$	4,932			$	5,668			$	85,117


		Year Ended December 31, 2021
		Ending Balance December 31, 2020				Charge-offs				Recoveries				Provision for (Recapture of) Credit Losses				Ending Balance December 31, 2021
		(Dollars in thousands)
Commercial real estate		$	75,439			$	—			$	—			$	(24,489	)		$	50,950
Construction			1,934				—				58				(1,227	)			765
SBA			2,992				(223	)			23				(124	)			2,668
SBA - PPP			—				—				—				—				—
Commercial and industrial			7,142				(3,019	)			12				2,534				6,669
Dairy & livestock and agribusiness			3,949				(118	)			—				(765	)			3,066
Municipal lease finance receivables			74				—				—				26				100
SFR mortgage			367				—				79				(258	)			188
Consumer and other loans			1,795				(11	)			26				(1,197	)			613
Total allowance for loan losses		$	93,692			$	(3,371	)		$	198			$	(25,500	)		$	65,019


		Year Ended December 31, 2020
		Ending Balance, prior to adoption of ASU 2016-13 December 31, 2019				Impact of Adoption of ASU 2016-13				Charge-offs				Recoveries				Provision for (Recapture of) Credit Losses				Ending Balance December 31, 2020
		(Dollars in thousands)
Commercial real estate		$	48,629			$	3,547			$	—			$	—			$	23,263			$	75,439
Construction			858				655				—				11				410				1,934
SBA			1,453				1,818				(362	)			72				11				2,992
SBA - PPP			—				—				—				—				—				—
Commercial and industrial			8,880				(2,442	)			(195	)			10				889				7,142
Dairy & livestock and agribusiness			5,255				(186	)			—				—				(1,120	)			3,949
Municipal lease finance receivables			623				(416	)			—				—				(133	)			74
SFR mortgage			2,339				(2,043	)			—				206				(135	)			367
Consumer and other loans			623				907				(109	)			59				315				1,795
Total allowance for credit losses		$	68,660			$	1,840			$	(666	)		$	358			$	23,500			$	93,692

Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Including PCI Loans by Class of Loans

The following table presents the recorded investment in, and the aging of, past due loans (including nonaccrual loans), by type of loans as of the date presented.


	December 31, 2022
	30-59 Days Past Due				60-89 Days Past Due				Greater than 89 Days Past Due				Total Past Due				Loans Not Past Due				Total Loans and Financing Receivables
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	—			$	—			$	2,639			$	2,639			$	2,482,471			$	2,485,110
Non-owner occupied		—				—				—				—				4,399,838				4,399,838
Construction
Speculative (1)		—				—				—				—				67,436				67,436
Non-speculative		—				—				—				—				20,835				20,835
SBA		374				182				443				999				289,909				290,908
SBA - PPP		—				—				—				—				9,087				9,087
Commercial and industrial		—				—				1,318				1,318				947,365				948,683
Dairy & livestock and agribusiness		—				—				269				269				433,295				433,564
Municipal lease finance receivables		—				—				—				—				81,126				81,126
SFR mortgage		—				388				—				388				265,636				266,024
Consumer and other loans		175				—				33				208				76,573				76,781
Total loans	$	549			$	570			$	4,702			$	5,821			$	9,073,571			$	9,079,392

(1)

Speculative construction loans are generally for properties where there is no identified buyer or renter.


	December 31, 2021
	30-59 Days Past Due				60-89 Days Past Due				Greater than 89 Days Past Due				Total Past Due				Loans Not Past Due				Total Loans and Financing Receivables
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	438			$	—			$	3,383			$	3,821			$	2,127,979			$	2,131,800
Non-owner occupied		—				—				—				—				3,657,930				3,657,930
Construction
Speculative (1)		—				—				—				—				44,859				44,859
Non-speculative		—				—				—				—				17,405				17,405
SBA		417				1,145				339				1,901				286,699				288,600
SBA - PPP		—				—				—				—				186,585				186,585
Commercial and industrial		—				16				1,356				1,372				811,691				813,063
Dairy & livestock and agribusiness		—				—				—				—				386,219				386,219
Municipal lease finance receivables		—				—				—				—				45,933				45,933
SFR mortgage		1,040				—				—				1,040				239,614				240,654
Consumer and other loans		—				—				42				42				74,623				74,665
Total loans	$	1,895			$	1,161			$	5,120			$	8,176			$	7,879,537			$	7,887,713

(1)

Speculative construction loans are generally for properties where there is no identified buyer or renter.


	December 31, 2022
	Nonaccrual with No Allowance for Credit Losses				Total Nonaccrual (1) (3)				Loans Past Due Over 89 Days Still Accruing
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	2,639			$	2,639			$	—
Non-owner occupied		18				18				—
Construction
Speculative (2)		—				—				—
Non-speculative		—				—				—
SBA		268				443				—
SBA - PPP		—				—				—
Commercial and industrial		771				1,320				—
Dairy & livestock and agribusiness		364				477				—
Municipal lease finance receivables		—				—				—
SFR mortgage		—				—				—
Consumer and other loans		34				33				—
Total loans	$	4,094			$	4,930			$	—

(1)

As of December 31, 2022, $228,000 of nonaccruing loans were current and $4.7 million were 90+ days past due.

(2)

Speculative construction loans are generally for properties where there is no identified buyer or renter.

(3)

Excludes $221,000 of guaranteed portion of nonaccrual SBA loans that are in process of collection.


	December 31, 2021
	Nonaccrual with No Allowance for Credit Losses				Total Nonaccrual (1)				Loans Past Due Over 89 Days Still Accruing
	(Dollars in thousands)
Commercial real estate
Owner occupied	$	3,607			$	3,607			$	—
Non-owner occupied		—				—				—
Construction
Speculative (2)		—				—				—
Non-speculative		—				—				—
SBA		521				1,034				—
SBA - PPP		—				—				—
Commercial and industrial		1,326				1,714				—
Dairy & livestock and agribusiness		—				—				—
Municipal lease finance receivables		—				—				—
SFR mortgage		380				380				—
Consumer and other loans		158				158				—
Total loans	$	5,992			$	6,893			$	—

(1)

As of December 31, 2021, $1.2 million of nonaccruing loans were current, $332,000 were 30-59 days past due, $267,000 were 60-89 days past due, and $5.1 million were 90+ days past due.

(2)

Speculative construction loans are generally for properties where there is no identified buyer or renter.

Summary of pledged assets not separately reported on statement of financial position

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the recorded investment in collateral-dependent loans by type of loans as of the date presented.


	December 31, 2022												Number of Loans
	Real Estate				Business Assets				Other				Dependent on Collateral
	(Dollars in thousands)
Commercial real estate	$	17,935			$	—			$	—				4
Construction		—				—				—				—
SBA		151				292				—				6
SBA - PPP		—				—				—				—
Commercial and industrial		87				2,774				81				13
Dairy & livestock and agribusiness		269				2,000				208				4
Municipal lease finance receivables		—				—				—				—
SFR mortgage		—				—				—				—
Consumer and other loans		33				—				—				1
Total collateral-dependent loans	$	18,475			$	5,066			$	289				28


	December 31, 2021												Number of Loans
	Real Estate				Business Assets				Other				Dependent on Collateral
	(Dollars in thousands)
Commercial real estate	$	6,001			$	—			$	—				6
Construction		—				—				—				—
SBA		405				517				112				10
SBA - PPP		—				—				—				—
Commercial and industrial		688				5,133				96				19
Dairy & livestock and agribusiness		—				—				—				—
Municipal lease finance receivables		—				—				—				—
SFR mortgage		380				—				—				2
Consumer and other loans		158				—				—				2
Total collateral-dependent loans	$	7,632			$	5,650			$	208				39

Summary of Activity Related to Troubled Debt Restructurings

The following table provides a summary of the activity related to TDRs for the periods presented.


		Year Ended December 31,
		2022				2021
		(Dollars in thousands)
Performing TDRs:
Beginning balance		$	5,293			$	2,159
New modifications			5,204				7,340
Payoffs/payments, net and other			(2,680	)			(4,206	)
TDRs returned to accrual status			—				—
TDRs placed on nonaccrual status			—				—
Ending balance		$	7,817			$	5,293
Nonperforming TDRs:
Beginning balance		$	—			$	—
New modifications			—				—
Charge-offs			—				—
Transfer to OREO			—				—
Payoffs/payments, net and other			—				—
TDRs returned to accrual status			—				—
TDRs placed on nonaccrual status			—				—
Ending balance		$	—			$	—
Total TDRs		$	7,817			$	5,293

Summary of Loans Modified as Troubled Debt Restructurings

The following tables summarize loans modified as TDRs for the periods presented.

Modifications (1)


	For the Year Ended December 31, 2022
	Number of Loans				Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Outstanding Recorded Investment at December 31, 2022				Financial Effect Resulting From Modifications (2)
	(Dollars in thousands)
Commercial real estate:
Interest rate reduction		—			$	—			$	—			$	—			$	—
Change in amortization period or maturity		—				—				—				—				—
Commercial and industrial:
Interest rate reduction		—				—				—				—				—
Change in amortization period or maturity		2				3,204				3,204				3,204				—
Dairy & livestock and agribusiness:
Interest rate reduction		1				2,000				2,000				2,000				—
Change in amortization period or maturity		—				—				—				—				—
SFR mortgage:
Interest rate reduction		—				—				—				—				—
Change in amortization period or maturity		—				—				—				—				—
Total loans		3			$	5,204			$	5,204			$	5,204			$	—