XML 33 R23.htm IDEA: XBRL DOCUMENT v3.23.1
Loans and Lease Finance Receivables and Allowance for Credit Losses (Tables)
3 Months Ended
Mar. 31, 2023
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.

 

 

March 31, 2023

 

 

December 31, 2022

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

Commercial real estate

$

6,950,302

 

 

$

6,884,948

 

Construction

 

83,992

 

 

 

88,271

 

SBA

 

283,464

 

 

 

290,908

 

SBA - Paycheck Protection Program (PPP)

 

5,824

 

 

 

9,087

 

Commercial and industrial

 

898,167

 

 

 

948,683

 

Dairy & livestock and agribusiness

 

307,820

 

 

 

433,564

 

Municipal lease finance receivables

 

79,552

 

 

 

81,126

 

SFR mortgage

 

262,324

 

 

 

266,024

 

Consumer and other loans

 

71,044

 

 

 

76,781

 

Total loans, at amortized cost

 

8,942,489

 

 

 

9,079,392

 

Less: Allowance for credit losses

 

(86,540

)

 

 

(85,117

)

 Total loans and lease finance receivables, net

$

8,855,949

 

 

$

8,994,275

 

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, and includes gross charge-offs in accordance with ASU 2022-02 effective January 1, 2023, as of the dates presented.

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

March 31, 2023

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

 

(Dollars in thousands)

 

Commercial real estate
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

185,194

 

 

$

1,356,290

 

 

$

1,192,562

 

 

$

950,317

 

 

$

532,910

 

 

$

2,302,301

 

 

$

180,989

 

 

$

37,602

 

 

$

6,738,165

 

Special Mention

 

1,587

 

 

 

3,259

 

 

 

7,662

 

 

 

16,927

 

 

 

35,911

 

 

 

100,504

 

 

 

592

 

 

 

 

 

 

166,442

 

Substandard

 

 

 

 

 

 

 

 

 

 

15,192

 

 

 

12,997

 

 

 

17,506

 

 

 

 

 

 

 

 

 

45,695

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial real
   estate loans:

$

186,781

 

 

$

1,359,549

 

 

$

1,200,224

 

 

$

982,436

 

 

$

581,818

 

 

$

2,420,311

 

 

$

181,581

 

 

$

37,602

 

 

$

6,950,302

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

3,704

 

 

$

13,503

 

 

$

34,209

 

 

$

7,651

 

 

$

 

 

$

 

 

$

19,881

 

 

$

 

 

$

78,948

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,044

 

 

 

 

 

 

 

 

 

5,044

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Construction
   loans:

$

3,704

 

 

$

13,503

 

 

$

34,209

 

 

$

7,651

 

 

$

 

 

$

5,044

 

 

$

19,881

 

 

$

 

 

$

83,992

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

805

 

 

$

58,361

 

 

$

54,368

 

 

$

34,951

 

 

$

7,277

 

 

$

120,940

 

 

$

50

 

 

$

 

 

$

276,752

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

1,312

 

 

 

3,630

 

 

 

 

 

 

 

 

 

4,942

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,770

 

 

 

 

 

 

 

 

 

1,770

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total SBA loans:

$

805

 

 

$

58,361

 

 

$

54,368

 

 

$

34,951

 

 

$

8,589

 

 

$

126,340

 

 

$

50

 

 

$

 

 

$

283,464

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

94

 

 

$

 

 

$

 

 

$

94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SBA - PPP loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

 

 

$

 

 

$

2,638

 

 

$

3,186

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

5,824

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total SBA - PPP loans:

$

 

 

$

 

 

$

2,638

 

 

$

3,186

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

5,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and
   industrial loans:

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

32,519

 

 

$

155,350

 

 

$

122,428

 

 

$

79,288

 

 

$

85,046

 

 

$

114,270

 

 

$

264,205

 

 

$

5,865

 

 

$

858,971

 

Special Mention

 

5,087

 

 

 

709

 

 

 

714

 

 

 

468

 

 

 

5,183

 

 

 

438

 

 

 

12,370

 

 

 

3,855

 

 

 

28,824

 

Substandard

 

 

 

 

486

 

 

 

 

 

 

682

 

 

 

842

 

 

 

4,120

 

 

 

3,430

 

 

 

812

 

 

 

10,372

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Commercial and
   industrial loans:

$

37,606

 

 

$

156,545

 

 

$

123,142

 

 

$

80,438

 

 

$

91,071

 

 

$

118,828

 

 

$

280,005

 

 

$

10,532

 

 

$

898,167

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

16

 

 

$

 

 

$

 

 

$

16

 

 

 

 

Origination Year

 

 

Revolving loans amortized

 

 

Revolving loans converted to

 

 

 

 

March 31, 2023

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

cost basis

 

 

term loans

 

 

Total

 

 

(Dollars in thousands)

 

Dairy & livestock and
   agribusiness loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,005

 

 

$

100

 

 

$

1,842

 

 

$

1,478

 

 

$

174

 

 

$

739

 

 

$

275,431

 

 

$

342

 

 

$

281,111

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

133

 

 

 

30

 

 

 

18,929

 

 

 

751

 

 

 

19,843

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,684

 

 

 

 

 

 

5,182

 

 

 

6,866

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Dairy & livestock
   and agribusiness
   loans:

$

1,005

 

 

$

100

 

 

$

1,842

 

 

$

1,478

 

 

$

307

 

 

$

2,453

 

 

$

294,360

 

 

$

6,275

 

 

$

307,820

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Municipal lease finance
   receivables loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

 

 

$

6,427

 

 

$

26,857

 

 

$

6,559

 

 

$

4,322

 

 

$

34,984

 

 

$

 

 

$

 

 

$

79,149

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

223

 

 

 

 

 

 

 

 

 

223

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

180

 

 

 

 

 

 

 

 

 

180

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Municipal lease
   finance receivables
   loans:

$

 

 

$

6,427

 

 

$

26,857

 

 

$

6,559

 

 

$

4,322

 

 

$

35,387

 

 

$

 

 

$

 

 

$

79,552

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SFR mortgage loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

3,782

 

 

$

62,559

 

 

$

46,407

 

 

$

45,031

 

 

$

30,298

 

 

$

72,716

 

 

$

 

 

$

 

 

$

260,793

 

Special Mention

 

 

 

 

 

 

 

 

 

 

935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

935

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

211

 

 

 

 

 

 

385

 

 

 

596

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total SFR mortgage
   loans:

$

3,782

 

 

$

62,559

 

 

$

46,407

 

 

$

45,966

 

 

$

30,298

 

 

$

72,927

 

 

$

 

 

$

385

 

 

$

262,324

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer and other
   loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

1,706

 

 

$

6,018

 

 

$

3,433

 

 

$

1,113

 

 

$

850

 

 

$

1,262

 

 

$

53,326

 

 

$

969

 

 

$

68,677

 

Special Mention

 

 

 

 

 

 

 

490

 

 

 

 

 

 

 

 

 

 

 

 

290

 

 

 

89

 

 

 

869

 

Substandard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

5

 

 

 

1,480

 

 

 

1,498

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Consumer and
   other loans:

$

1,706

 

 

$

6,018

 

 

$

3,923

 

 

$

1,113

 

 

$

850

 

 

$

1,275

 

 

$

53,621

 

 

$

2,538

 

 

$

71,044

 

Current YTD Period:
  Gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans, at amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

228,715

 

 

$

1,658,608

 

 

$

1,484,744

 

 

$

1,129,574

 

 

$

660,877

 

 

$

2,647,212

 

 

$

793,882

 

 

$

44,778

 

 

$

8,648,390

 

Special Mention

 

6,674

 

 

 

3,968

 

 

 

8,866

 

 

 

18,330

 

 

 

42,539

 

 

 

109,869

 

 

 

32,181

 

 

 

4,695

 

 

 

227,122

 

Substandard

 

 

 

 

486

 

 

 

 

 

 

15,874

 

 

 

13,839

 

 

 

25,484

 

 

 

3,435

 

 

 

7,859

 

 

 

66,977

 

Doubtful & Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans at amortized cost:

$

235,389

 

 

$

1,663,062

 

 

$

1,493,610

 

 

$

1,163,778

 

 

$

717,255

 

 

$

2,782,565

 

 

$

829,498

 

 

$

57,332

 

 

$

8,942,489

 

Current YTD Period:
  Total gross charge-offs

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

110

 

 

$

 

 

$

 

 

$

110

 

 

 

 

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, at amortized cost:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 at amortized cost:

$

1,683,162

 

 

$

1,512,519

 

 

$

1,178,645

 

 

$

744,349

 

 

$

633,929

 

 

$

2,265,644

 

 

$

1,002,474

 

 

$

58,670

 

 

$

9,079,392

 

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.

 

 

Three Months Ended March 31, 2023

 

 

Ending Balance December 31, 2022

 

 

Charge-offs

 

 

Recoveries

 

 

Provision for (Recapture of) Credit Losses

 

 

Ending Balance March 31, 2023

 

 

(Dollars in thousands)

 

Commercial real estate

$

64,806

 

 

$

 

 

$

 

 

$

2,311

 

 

$

67,117

 

Construction

 

1,702

 

 

 

 

 

 

3

 

 

 

(31

)

 

 

1,674

 

SBA

 

2,809

 

 

 

(94

)

 

 

12

 

 

 

2

 

 

 

2,729

 

SBA - PPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

10,206

 

 

 

(16

)

 

 

14

 

 

 

(1,241

)

 

 

8,963

 

Dairy & livestock and agribusiness

 

4,400

 

 

 

 

 

 

4

 

 

 

366

 

 

 

4,770

 

Municipal lease finance
   receivables

 

296

 

 

 

 

 

 

 

 

 

(13

)

 

 

283

 

SFR mortgage

 

366

 

 

 

 

 

 

 

 

 

43

 

 

 

409

 

Consumer and other loans

 

532

 

 

 

 

 

 

 

 

 

63

 

 

 

595

 

Total allowance for credit losses

$

85,117

 

 

$

(110

)

 

$

33

 

 

$

1,500

 

 

$

86,540

 

 

 

Three Months Ended March 31, 2022

 

 

Ending Balance December 31, 2021

 

 

Charge-offs

 

 

Recoveries

 

 

Initial ACL for PCD Loans at Acquisition

 

 

Provision Recorded at Acquisition

 

 

(Recapture of) Provision for Credit Losses

 

 

Ending Balance March 31, 2022

 

 

(Dollars in thousands)

 

Commercial real estate

$

50,950

 

 

$

 

 

$

 

 

$

5,086

 

 

$

4,127

 

 

$

(2,328

)

 

$

57,835

 

Construction

 

765

 

 

 

 

 

 

3

 

 

 

122

 

 

 

58

 

 

 

40

 

 

 

988

 

SBA

 

2,668

 

 

 

 

 

 

5

 

 

 

62

 

 

 

64

 

 

 

25

 

 

 

2,824

 

SBA - PPP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

6,669

 

 

 

(15

)

 

 

3

 

 

 

500

 

 

 

508

 

 

 

(834

)

 

 

6,831

 

Dairy & livestock and agribusiness

 

3,066

 

 

 

 

 

 

 

 

 

2,832

 

 

 

149

 

 

 

656

 

 

 

6,703

 

Municipal lease finance
   receivables

 

100

 

 

 

 

 

 

 

 

 

3

 

 

 

26

 

 

 

23

 

 

 

152

 

SFR mortgage

 

188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39

 

 

 

227

 

Consumer and other loans

 

613

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

(53

)

 

 

559

 

Total allowance for credit losses

$

65,019

 

 

$

(16

)

 

$

11

 

 

$

8,605

 

 

$

4,932

 

 

$

(2,432

)

 

$

76,119

 

 

Schedule of Recorded Investment in, and Aging of, Past Due and Nonaccrual Loans, Excluding 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 dates presented.

 

 

March 31, 2023

 

 

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

$

425

 

 

$

 

 

$

2,615

 

 

$

3,040

 

 

$

2,504,636

 

 

$

2,507,676

 

Non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

4,442,626

 

 

 

4,442,626

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Speculative (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

65,068

 

 

 

65,068

 

Non-speculative

 

 

 

 

 

 

 

 

 

 

 

 

 

18,924

 

 

 

18,924

 

 SBA

 

575

 

 

 

 

 

 

702

 

 

 

1,277

 

 

 

282,187

 

 

 

283,464

 

 SBA - PPP

 

 

 

 

 

 

 

 

 

 

 

 

 

5,824

 

 

 

5,824

 

 Commercial and industrial

 

 

 

 

 

 

 

2,050

 

 

 

2,050

 

 

 

896,117

 

 

 

898,167

 

 Dairy & livestock and agribusiness

 

 

 

 

183

 

 

 

198

 

 

 

381

 

 

 

307,439

 

 

 

307,820

 

 Municipal lease finance receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

79,552

 

 

 

79,552

 

 SFR mortgage

 

 

 

 

 

 

 

384

 

 

 

384

 

 

 

261,940

 

 

 

262,324

 

 Consumer and other loans

 

 

 

 

 

 

 

 

 

 

 

 

 

71,044

 

 

 

71,044

 

Total loans

$

1,000

 

 

$

183

 

 

$

5,949

 

 

$

7,132

 

 

$

8,935,357

 

 

$

8,942,489

 

 

(1)
Speculative construction loans are generally for properties where there is no identified buyer or renter.

 

 

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.

 

Amortized cost of our finance receivables and loans that are on nonaccrual status, including loans with no allowance are presented as of March 31, 2023 and December 31, 2022 by type of loan.

 

 

March 31, 2023

 

 

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

$

2,616

 

 

$

2,616

 

 

$

 

Non-owner occupied

 

18

 

 

 

18

 

 

 

 

Construction

 

 

 

 

 

 

 

 

Speculative (2)

 

 

 

 

 

 

 

 

Non-speculative

 

 

 

 

 

 

 

 

 SBA

 

364

 

 

 

702

 

 

 

 

 SBA - PPP

 

 

 

 

 

 

 

 

 Commercial and industrial

 

683

 

 

 

2,049

 

 

 

 

 Dairy & livestock and agribusiness

 

293

 

 

 

406

 

 

 

 

 Municipal lease finance receivables

 

 

 

 

 

 

 

 

 SFR mortgage

 

 

 

 

 

 

 

 

 Consumer and other loans

 

384

 

 

 

384

 

 

 

 

Total loans

$

4,358

 

 

$

6,175

 

 

$

 

 

(1)
As of March 31, 2023, $226,000 of nonaccruing loans were current and $6.0 million were 90+ days past due.
(2)
Speculative construction loans are generally for properties where there is no identified buyer or renter.
(3)
There were no guaranteed portion of nonaccrual SBA loans that are in process of collection.

 

 

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.
Summary of Pledged Assets not Separately Reported on Statement of Financial Position

 

 

March 31, 2023

 

 

Number of Loans

 

 

Real Estate

 

 

Business Assets

 

 

Other

 

 

Dependent on
Collateral

 

 

(Dollars in thousands)

 

 

Commercial real estate

$

2,634

 

 

$

 

 

$

 

 

 

3

 

Construction

 

 

 

 

 

 

 

 

 

 

 

SBA

 

151

 

 

 

418

 

 

 

 

 

 

5

 

SBA - PPP

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

3

 

 

 

2,497

 

 

 

1,167

 

 

 

10

 

Dairy & livestock and agribusiness

 

198

 

 

 

 

 

 

208

 

 

 

3

 

Municipal lease finance receivables

 

 

 

 

 

 

 

 

 

 

 

SFR mortgage

 

 

 

 

 

 

 

 

 

 

 

Consumer and other loans

 

 

 

 

 

 

 

 

 

 

 

Total collateral-dependent loans

$

2,986

 

 

$

2,915

 

 

$

1,375

 

 

 

21

 

 

 

 

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

 

Schedule of Amortized Cost of Loans Activity

The table below reflects the amortized cost of loans by type made to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2023.

 

 

 

 

Term Extension

 

 

 

 

Amortized Cost Basis

 

 

% of Total Class of

 

 

 

 

at March 31,2023

 

 

Financing Receivables

 

 

Commercial real estate loans

 

$

1,587

 

 

 

0.02

%

 

Commercial and industrial

 

 

2,250

 

 

 

0.03

%

 

Dairy & livestock and agribusiness

 

 

1,999

 

 

 

0.02

%

 

   Total

 

$

5,836

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Financial Effect of the Loan Activity

The following table describes the financial effect of the loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

 

 

 

 

 

 

Loan Type

 

Financial Effect

 

 

 

 

 

 

 

Term Extension

 

Commercial real estate loans

 

Added a weighted-average 1.1 years to the life of loans, which reduced monthly payment amounts for the borrowers.

 

Commercial and industrial

 

Added a weighted-average 0.8 years to the life of loans, which reduced monthly payment amounts for the borrowers.

 

Dairy & livestock and agribusiness

 

Added a weighted-average 1.2 years to the life of loans, which reduced monthly payment amounts for the borrowers.

 

 

 

 

 

Schedule of Recorded Investments for Past Due Loans at Amortized Cost

The following table presents the recorded investment in, and the aging of, past due loans at amortized cost (including nonaccrual loans), by type of loans, made to borrowers experiencing financial difficulty that were modified on or after January 1, 2023, the date we adopted ASU 2022-02.

 

 

 

 

Payment Status (amortized cost basis)

 

 

 

 

Current

 

 

30-89 Days
Past Due

 

 

90+ Days
Past Due

 

 

 

 

(Dollars in thousands)

 

 

Commercial real estate loans

 

$

1,587

 

 

$

 

 

$

 

 

Commercial and industrial

 

 

2,250

 

 

 

 

 

 

 

 

Dairy & livestock and agribusiness

 

 

1,999

 

 

 

 

 

 

 

 

   Total

 

$

5,836

 

 

$

 

 

$