XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.22.1

Loans | 3 Months Ended
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Mar. 31, 2022
Receivables [Abstract] |
Portfolio Loans | LOANS The following table presents a summary of loans by category:
(in thousands) | March 31, 2022 |  | December 31, 2021
Commercial and industrial | $ | 3,400,574 |  |  | $ | 3,396,590 |
Real estate: |  |  |
Commercial - investor owned | 2,184,126 |  |  | 2,141,143 |
Commercial - owner occupied | 2,094,012 |  |  | 2,035,785 |
Construction and land development | 702,630 |  |  | 734,073 |
Residential | 432,639 |  |  | 454,052 |
Total real estate loans | 5,413,407 |  |  | 5,365,053 |
Other | 250,433 |  |  | 265,137 |
Loans, before unearned loan fees | 9,064,414 |  |  | 9,026,780 |
Unearned loan fees, net | (8,341) |  |  | (9,138) |
Loans, including unearned loan fees | $ | 9,056,073 |  |  | $ | 9,017,642 |
PPP loans totaled $136.0 million at March 31, 2022, or $134.1 million net of deferred fees of $1.9 million. The loan balance at March 31, 2022 includes a net premium on acquired loans of $11.5 million. At March 31, 2022 loans of $2.9 billion were pledged to FHLB and the Federal Reserve Bank. PPP loans totaled $276.2 million at December 31, 2021, or $272.0 million net of deferred fees of $4.2 million. The loan balance includes a net premium on acquired loans of $11.9 million at December 31, 2021. At December 31, 2021 loans of $2.5 billion were pledged to FHLB and the Federal Reserve Bank. Accrued interest receivable totaled $29.6 million and $30.6 million at March 31, 2022 and December 31, 2021, respectively, and was reported in Other Assets on the consolidated balance sheets. A summary of the activity in the ACL on loans by category for the three months ended March 31, 2022 and 2021 is as follows:
(in thousands) | Commercial and industrial |  | CRE - investor owned |  | CRE - owner occupied |  | Construction and land development |  | Residential real estate |  | Other |  |  |  | Total
Allowance for credit losses on loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2021 | $ | 63,825 |  |  | $ | 35,877 |  |  | $ | 17,560 |  |  | $ | 14,536 |  |  | $ | 7,927 |  |  | $ | 5,316 |  |  |  |  | $ | 145,041 |
Provision for credit losses | (1,481) |  |  | 121 |  |  | (582) |  |  | (1,574) |  |  | (456) |  |  | (336) |  |  |  |  | (4,308) |
Charge-offs | (2,159) |  |  | — |  |  | (180) |  |  | — |  |  | (887) |  |  | (86) |  |  |  |  | (3,312) |
Recoveries | 790 |  |  | 196 |  |  | 240 |  |  | 21 |  |  | 525 |  |  | 19 |  |  |  |  | 1,791 |
Balance at March 31, 2022 | $ | 60,975 |  |  | $ | 36,194 |  |  | $ | 17,038 |  |  | $ | 12,983 |  |  | $ | 7,109 |  |  | $ | 4,913 |  |  |  |  | $ | 139,212 |
(in thousands) | Commercial and industrial |  | CRE - investor owned |  | CRE - owner occupied |  | Construction and land development |  | Residential real estate |  | Other |  |  |  | Total
Allowance for credit losses on loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at December 31, 2020 | $ | 58,812 |  |  | $ | 32,062 |  |  | $ | 17,012 |  |  | $ | 21,413 |  |  | $ | 4,585 |  |  | $ | 2,787 |  |  |  |  | $ | 136,671 |
Provision for credit losses | 541 |  |  | 3,381 |  |  | 3,226 |  |  | (7,091) |  |  | (152) |  |  | 598 |  |  |  |  | 503 |
Charge-offs | (3,739) |  |  | (2,372) |  |  | (28) |  |  | — |  |  | (271) |  |  | (64) |  |  |  |  | (6,474) |
Recoveries | 327 |  |  | 34 |  |  | 9 |  |  | 235 |  |  | 143 |  |  | 79 |  |  |  |  | 827 |
Balance at March 31, 2021 | $ | 55,941 |  |  | $ | 33,105 |  |  | $ | 20,219 |  |  | $ | 14,557 |  |  | $ | 4,305 |  |  | $ | 3,400 |  |  |  |  | $ | 131,527 |
The ACL on sponsor finance loans, which is included in the categories above, represented $19.1 million and $18.2 million, respectively, as of March 31, 2022 and December 30, 2021. The CECL methodology incorporates various economic scenarios. The Company utilizes three forecasts in the model: Moody’s baseline, a stronger near-term growth upside and a moderate recession downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $14.7 million to the ACL over the baseline model. These forecasts incorporate an expectation that government stimulus will decline, the Federal Reserve will wind down quantitative easing and continue raising the federal funds rate, that the pandemic will begin to slowly recede, and that the Russia-Ukraine military conflict will have a limited disruption on the economy. The Company has also recognized the risk posed by loans that have received multiple deferrals of principal and interest payments, including the hospitality sector, by allocating additional reserves to those segments. Some of the key risks to the forecasts that could result in future provision for credit losses are additional shutdowns and self-quarantines from another significant wave of COVID, continued or worsening supply-chain disruptions, labor shortages and declines in job growth, or a tightening of financial market conditions. In addition to the CECL methodology, the Company incorporates qualitative adjustments into the ACL on loans to capture credit risks inherent within the loan portfolio that are not captured in the discounted cash flow (DCF) model. Included in these risks are 1) changes in lending policies and procedures, 2) actual and expected changes in business and economic conditions, 3) changes in the nature and volume of the portfolio, 4) changes in lending management, 5) changes in volume and the severity of past due loans, 6) changes in the quality of the loan review system, 7) changes in the value of underlying collateral, 8) the existence and effect of concentrations of credit and 9) other factors such as the regulatory, legal and competitive environments and events such as natural disasters and pandemics. At March 31, 2022, the ACL on loans included a qualitative adjustment of approximately $41.0 million. Of this amount, approximately $7.0 million was allocated to Sponsor Finance loans due to their unsecured nature. The following tables present the recorded investment in nonperforming loans by category:
|  |  |  |  | March 31, 2022
(in thousands) |  |  |  |  | Nonaccrual |  | Restructured, accruing |  | Loans over 90 days past due and still accruing interest |  | Total nonperforming loans |  | Nonaccrual loans with no allowance
Commercial and industrial |  |  |  |  | $ | 13,721 |  |  | $ | 2,663 |  |  | $ | 13 |  |  | $ | 16,397 |  |  | $ | 1,699 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial - investor owned |  |  |  |  | 1,565 |  |  | — |  |  | — |  |  | 1,565 |  |  | 1,364 |
Commercial - owner occupied |  |  |  |  | 2,075 |  |  | — |  |  | — |  |  | 2,075 |  |  | 1,786 |
Residential |  |  |  |  | 1,027 |  |  | 75 |  |  | — |  |  | 1,102 |  |  | 1,027 |
Other |  |  |  |  | 10 |  |  | — |  |  | 11 |  |  | 21 |  |  | — |
Total |  |  |  |  | $ | 18,398 |  |  | $ | 2,738 |  |  | $ | 24 |  |  | $ | 21,160 |  |  | $ | 5,876 |
| December 31, 2021
(in thousands) | Nonaccrual |  | Restructured, accruing |  | Loans over 90 days past due and still accruing interest |  | Total nonperforming loans |  | Nonaccrual loans with no allowance
Commercial and industrial | $ | 17,052 |  |  | $ | 2,783 |  |  | $ | 1,703 |  |  | $ | 21,538 |  |  | $ | 5,685 |
Real estate: |  |  |  |  |  |  |  |  |
Commercial - investor owned | 1,575 |  |  | — |  |  | — |  |  | 1,575 |  |  | 168 |
Commercial - owner occupied | 2,839 |  |  | — |  |  | — |  |  | 2,839 |  |  | 2,550 |
Residential | 1,971 |  |  | 76 |  |  | 1 |  |  | 2,048 |  |  | 1,348 |
Other | 12 |  |  | — |  |  | 12 |  |  | 24 |  |  | — |
Total | $ | 23,449 |  |  | $ | 2,859 |  |  | $ | 1,716 |  |  | $ | 28,024 |  |  | $ | 9,751 |
The total nonperforming loan balances at March 31, 2022 and December 31, 2021 exclude government guaranteed balances of $4.0 million and $6.5 million, respectively. No interest income was recognized on nonaccrual loans during the three months ended March 31, 2022 or 2021. The amortized cost basis of collateral-dependent nonperforming loans by class of loan is presented for the periods indicated:
| March 31, 2022
| Type of Collateral
(in thousands) | Commercial Real Estate |  | Residential Real Estate |  | Blanket Lien |  |
Commercial and industrial | $ | 4,271 |  |  | $ | 79 |  |  | $ | 5,064 |  |  |
Real estate: |  |  |  |  |  |  |
Commercial - investor owned | 165 |  |  | 1,200 |  |  | — |  |  |
Commercial - owner occupied | 2,049 |  |  | 26 |  |  | — |  |  |
Residential | — |  |  | 1,102 |  |  | — |  |  |
Other | — |  |  | — |  |  | — |  |  |
Total | $ | 6,485 |  |  | $ | 2,407 |  |  | $ | 5,064 |  |  |
| December 31, 2021
| Type of Collateral
(in thousands) | Commercial Real Estate |  | Residential Real Estate |  | Blanket Lien |  |
Commercial and industrial | $ | 4,271 |  |  | $ | 209 |  |  | $ | 9,312 |  |  |
Real estate: |  |  |  |  |  |  |
Commercial - investor owned | 169 |  |  | 1,200 |  |  | — |  |  |
Commercial - owner occupied | 2,807 |  |  | 32 |  |  | — |  |  |
Residential | — |  |  | 2,048 |  |  | — |  |  |
Other | — |  |  | — |  |  | — |  |  |
Total | $ | 7,247 |  |  | $ | 3,489 |  |  | $ | 9,312 |  |  |
There were no loans restructured during the three months ended March 31, 2022 or 2021.
No troubled debt restructurings subsequently defaulted during the three months ended March 31, 2022 or 2021.
The aging of the recorded investment in past due loans by class is presented for the periods indicated.
| March 31, 2022
(in thousands) | 30-89 Days Past Due |  | 90 or More Days Past Due |  | Total Past Due |  | Current |  | Total
Commercial and industrial | $ | 3,086 |  |  | $ | 5,204 |  |  | $ | 8,290 |  |  | $ | 3,390,433 |  |  | $ | 3,398,723 |
Real estate: |  |  |  |  |  |  |  |  |
Commercial - investor owned | 1,461 |  |  | 1,565 |  |  | 3,026 |  |  | 2,181,100 |  |  | 2,184,126 |
Commercial - owner occupied | 4,692 |  |  | 1,698 |  |  | 6,390 |  |  | 2,087,622 |  |  | 2,094,012 |
Construction and land development | 2,680 |  |  | — |  |  | 2,680 |  |  | 699,950 |  |  | 702,630 |
Residential | 3,534 |  |  | 454 |  |  | 3,988 |  |  | 428,651 |  |  | 432,639 |
Other | 35 |  |  | 10 |  |  | 45 |  |  | 243,898 |  |  | 243,943 |
Total | $ | 15,488 |  |  | $ | 8,931 |  |  | $ | 24,419 |  |  | $ | 9,031,654 |  |  | $ | 9,056,073 |
| December 31, 2021
(in thousands) | 30-89 Days Past Due |  | 90 or More Days Past Due |  | Total Past Due |  | Current |  | Total
Commercial and industrial | $ | 24,447 |  |  | $ | 14,158 |  |  | $ | 38,605 |  |  | $ | 3,353,770 |  |  | $ | 3,392,375 |
Real estate: |  |  |  |  |  |  |  |  |
Commercial - investor owned | 3,880 |  |  | — |  |  | 3,880 |  |  | 2,137,263 |  |  | 2,141,143 |
Commercial - owner occupied | 10,070 |  |  | 289 |  |  | 10,359 |  |  | 2,025,426 |  |  | 2,035,785 |
Construction and land development | 24 |  |  | — |  |  | 24 |  |  | 734,049 |  |  | 734,073 |
Residential | 3,181 |  |  | 1,305 |  |  | 4,486 |  |  | 449,566 |  |  | 454,052 |
Other | 37 |  |  | 11 |  |  | 48 |  |  | 260,166 |  |  | 260,214 |
Total | $ | 41,639 |  |  | $ | 15,763 |  |  | $ | 57,402 |  |  | $ | 8,960,240 |  |  | $ | 9,017,642 |
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, payment experience, credit documentation, and current economic factors among other factors. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: •Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. •Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. •Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. •Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating. •Grade 7 – Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated at this time, due to strong collateral and/or guarantor support. •Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. •Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on nonaccrual. The recorded investment by risk category of loans by class and year of origination is presented in the following tables as of the dates indicated:
|  | March 31, 2022
|  | Term Loans by Origination Year |  |  |  |  |  |
(in thousands) |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Revolving Loans Converted to Term Loans |  | Revolving Loans |  | Total
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 424,229 |  |  | $ | 1,011,220 |  |  | $ | 404,515 |  |  | $ | 268,244 |  |  | $ | 85,451 |  |  | $ | 174,346 |  |  | $ | 1,500 |  |  | $ | 812,823 |  |  | $ | 3,182,328 |
Watch (7) |  | 20,941 |  |  | 28,450 |  |  | 16,364 |  |  | 2,060 |  |  | 9,312 |  |  | 10,728 |  |  | — |  |  | 78,321 |  |  | 166,176 |
Classified (8-9) |  | 6,231 |  |  | 7,950 |  |  | 2,144 |  |  | 3,840 |  |  | 1,585 |  |  | 3,416 |  |  | — |  |  | 10,383 |  |  | 35,549 |
Total Commercial and industrial |  | $ | 451,401 |  |  | $ | 1,047,620 |  |  | $ | 423,023 |  |  | $ | 274,144 |  |  | $ | 96,348 |  |  | $ | 188,490 |  |  | $ | 1,500 |  |  | $ | 901,527 |  |  | $ | 3,384,053 |
Commercial real estate-investor owned |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 200,862 |  |  | $ | 617,625 |  |  | $ | 429,282 |  |  | $ | 321,521 |  |  | $ | 149,180 |  |  | $ | 303,994 |  |  | $ | 2,047 |  |  | $ | 47,800 |  |  | $ | 2,072,311 |
Watch (7) |  | 937 |  |  | 20,600 |  |  | 31,411 |  |  | 18,304 |  |  | 79 |  |  | 27,153 |  |  | — |  |  | 2,062 |  |  | 100,546 |
Classified (8-9) |  | — |  |  | 1,268 |  |  | 3,306 |  |  | 829 |  |  | 798 |  |  | 5,010 |  |  | — |  |  | 50 |  |  | 11,261 |
Total Commercial real estate-investor owned |  | $ | 201,799 |  |  | $ | 639,493 |  |  | $ | 463,999 |  |  | $ | 340,654 |  |  | $ | 150,057 |  |  | $ | 336,157 |  |  | $ | 2,047 |  |  | $ | 49,912 |  |  | $ | 2,184,118 |
Commercial real estate-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 159,921 |  |  | $ | 599,394 |  |  | $ | 408,931 |  |  | $ | 261,247 |  |  | $ | 144,644 |  |  | $ | 341,211 |  |  | $ | 438 |  |  | $ | 49,568 |  |  | $ | 1,965,354 |
Watch (7) |  | 1,800 |  |  | 10,888 |  |  | 16,575 |  |  | 3,925 |  |  | 13,188 |  |  | 18,550 |  |  | — |  |  | 390 |  |  | 65,316 |
Classified (8-9) |  | 423 |  |  | 892 |  |  | 1,808 |  |  | 9,883 |  |  | 16,051 |  |  | 12,082 |  |  | — |  |  | 95 |  |  | 41,234 |
Total Commercial real estate-owner occupied |  | $ | 162,144 |  |  | $ | 611,174 |  |  | $ | 427,314 |  |  | $ | 275,055 |  |  | $ | 173,883 |  |  | $ | 371,843 |  |  | $ | 438 |  |  | $ | 50,053 |  |  | $ | 2,071,904 |
Construction real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 83,014 |  |  | $ | 321,327 |  |  | $ | 189,864 |  |  | $ | 35,507 |  |  | $ | 23,155 |  |  | $ | 14,797 |  |  | $ | — |  |  | $ | 4,079 |  |  | $ | 671,743 |
Watch (7) |  | 408 |  |  | 20,751 |  |  | 3,183 |  |  | 60 |  |  | 1,190 |  |  | 2,283 |  |  | — |  |  | — |  |  | 27,875 |
Classified (8-9) |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 416 |  |  | 19 |  |  | — |  |  | — |  |  | 447 |
Total Construction real estate |  | $ | 83,422 |  |  | $ | 342,078 |  |  | $ | 193,047 |  |  | $ | 35,579 |  |  | $ | 24,761 |  |  | $ | 17,099 |  |  | $ | — |  |  | $ | 4,079 |  |  | $ | 700,065 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 13,065 |  |  | $ | 100,396 |  |  | $ | 64,873 |  |  | $ | 20,400 |  |  | $ | 13,256 |  |  | $ | 113,869 |  |  | $ | 5,356 |  |  | $ | 93,591 |  |  | $ | 424,806 |
Watch (7) |  | 36 |  |  | 2,123 |  |  | 1 |  |  | 166 |  |  | 441 |  |  | 1,379 |  |  | — |  |  | 137 |  |  | 4,283 |
Classified (8-9) |  | 126 |  |  | 423 |  |  | — |  |  | 57 |  |  | 743 |  |  | 1,863 |  |  | — |  |  | 5 |  |  | 3,217 |
Total residential real estate |  | $ | 13,227 |  |  | $ | 102,942 |  |  | $ | 64,874 |  |  | $ | 20,623 |  |  | $ | 14,440 |  |  | $ | 117,111 |  |  | $ | 5,356 |  |  | $ | 93,733 |  |  | $ | 432,306 |
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 1,551 |  |  | $ | 101,746 |  |  | $ | 66,095 |  |  | $ | 21,453 |  |  | $ | 22,437 |  |  | $ | 14,845 |  |  | $ | — |  |  | $ | 7,521 |  |  | $ | 235,648 |
Watch (7) |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 2,391 |  |  | — |  |  | 5 |  |  | 2,399 |
Classified (8-9) |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 9 |  |  | 14 |  |  | 1 |  |  | — |  |  | 32 |
Total Other |  | $ | 1,551 |  |  | $ | 101,746 |  |  | $ | 66,095 |  |  | $ | 21,461 |  |  | $ | 22,449 |  |  | $ | 17,250 |  |  | $ | 1 |  |  | $ | 7,526 |  |  | $ | 238,079 |
Total loans classified by risk category |  | $ | 913,544 |  |  | $ | 2,845,053 |  |  | $ | 1,638,352 |  |  | $ | 967,516 |  |  | $ | 481,938 |  |  | $ | 1,047,950 |  |  | $ | 9,342 |  |  | $ | 1,106,830 |  |  | $ | 9,010,525 |
Total loans classified by performing status |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 45,548 |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 9,056,073 |
|  | December 31, 2021
|  | Term Loans by Origination Year |  |  |  |  |  |
(in thousands) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Revolving Loans Converted to Term Loans |  | Revolving Loans |  | Total
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 1,180,601 |  |  | $ | 477,374 |  |  | $ | 317,869 |  |  | $ | 132,851 |  |  | $ | 116,738 |  |  | $ | 82,846 |  |  | $ | 11,648 |  |  | $ | 854,102 |  |  | $ | 3,174,029 |
Watch (7) |  | 35,005 |  |  | 17,502 |  |  | 9,404 |  |  | 9,880 |  |  | 12,217 |  |  | 10,979 |  |  | 4,037 |  |  | 53,595 |  |  | 152,619 |
Classified (8-9) |  | 14,917 |  |  | 3,530 |  |  | 3,840 |  |  | 1,689 |  |  | 2,988 |  |  | 813 |  |  | 787 |  |  | 10,996 |  |  | 39,560 |
Total Commercial and industrial |  | $ | 1,230,523 |  |  | $ | 498,406 |  |  | $ | 331,113 |  |  | $ | 144,420 |  |  | $ | 131,943 |  |  | $ | 94,638 |  |  | $ | 16,472 |  |  | $ | 918,693 |  |  | $ | 3,366,208 |
Commercial real estate-investor owned |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 651,740 |  |  | $ | 476,946 |  |  | $ | 346,245 |  |  | $ | 146,107 |  |  | $ | 112,043 |  |  | $ | 217,808 |  |  | $ | 3,625 |  |  | $ | 68,236 |  |  | $ | 2,022,750 |
Watch (7) |  | 16,871 |  |  | 35,908 |  |  | 32,755 |  |  | 1,003 |  |  | 502 |  |  | 17,478 |  |  | 300 |  |  | 2,062 |  |  | 106,879 |
Classified (8-9) |  | 1,376 |  |  | 3,135 |  |  | 835 |  |  | 817 |  |  | 1,159 |  |  | 4,141 |  |  | — |  |  | 50 |  |  | 11,513 |
Total Commercial real estate-investor owned |  | $ | 669,987 |  |  | $ | 515,989 |  |  | $ | 379,835 |  |  | $ | 147,927 |  |  | $ | 113,704 |  |  | $ | 239,427 |  |  | $ | 3,925 |  |  | $ | 70,348 |  |  | $ | 2,141,142 |
Commercial real estate-owner occupied |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 604,975 |  |  | $ | 423,263 |  |  | $ | 278,830 |  |  | $ | 164,210 |  |  | $ | 140,515 |  |  | $ | 235,973 |  |  | $ | 250 |  |  | $ | 48,349 |  |  | $ | 1,896,365 |
Watch (7) |  | 12,825 |  |  | 13,585 |  |  | 4,301 |  |  | 16,774 |  |  | 10,274 |  |  | 15,764 |  |  | — |  |  | 300 |  |  | 73,823 |
Classified (8-9) |  | 2,048 |  |  | 556 |  |  | 9,181 |  |  | 17,016 |  |  | 6,432 |  |  | 6,959 |  |  | — |  |  | — |  |  | 42,192 |
Total Commercial real estate-owner occupied |  | $ | 619,848 |  |  | $ | 437,404 |  |  | $ | 292,312 |  |  | $ | 198,000 |  |  | $ | 157,221 |  |  | $ | 258,696 |  |  | $ | 250 |  |  | $ | 48,649 |  |  | $ | 2,012,380 |
Construction real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 310,140 |  |  | $ | 229,396 |  |  | $ | 70,531 |  |  | $ | 35,936 |  |  | $ | 14,860 |  |  | $ | 7,180 |  |  | $ | 568 |  |  | $ | 2,992 |  |  | $ | 671,603 |
Watch (7) |  | 28,947 |  |  | 15,348 |  |  | 60 |  |  | 1,199 |  |  | 11,068 |  |  | 2,330 |  |  | — |  |  | — |  |  | 58,952 |
Classified (8-9) |  | — |  |  | — |  |  | 387 |  |  | 419 |  |  | — |  |  | 22 |  |  | — |  |  | — |  |  | 828 |
Total Construction real estate |  | $ | 339,087 |  |  | $ | 244,744 |  |  | $ | 70,978 |  |  | $ | 37,554 |  |  | $ | 25,928 |  |  | $ | 9,532 |  |  | $ | 568 |  |  | $ | 2,992 |  |  | $ | 731,383 |
Residential real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 116,352 |  |  | $ | 66,481 |  |  | $ | 21,356 |  |  | $ | 14,841 |  |  | $ | 24,778 |  |  | $ | 103,840 |  |  | $ | 9,980 |  |  | $ | 87,146 |  |  | $ | 444,774 |
Watch (7) |  | 2,425 |  |  | 2 |  |  | 622 |  |  | 1,157 |  |  | 248 |  |  | 1,305 |  |  | — |  |  | 79 |  |  | 5,838 |
Classified (8-9) |  | 414 |  |  | 169 |  |  | 554 |  |  | — |  |  | 12 |  |  | 2,024 |  |  | — |  |  | — |  |  | 3,173 |
Total residential real estate |  | $ | 119,191 |  |  | $ | 66,652 |  |  | $ | 22,532 |  |  | $ | 15,998 |  |  | $ | 25,038 |  |  | $ | 107,169 |  |  | $ | 9,980 |  |  | $ | 87,225 |  |  | $ | 453,785 |
Other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (1-6) |  | $ | 108,209 |  |  | $ | 68,806 |  |  | $ | 22,684 |  |  | $ | 23,145 |  |  | $ | 6,924 |  |  | $ | 13,832 |  |  | $ | 1,500 |  |  | $ | 9,166 |  |  | $ | 254,266 |
Watch (7) |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 2,440 |  |  | — |  |  | 1 |  |  | 2,445 |
Classified (8-9) |  | — |  |  | — |  |  | 10 |  |  | 10 |  |  | — |  |  | 16 |  |  | — |  |  | 2 |  |  | 38 |
Total Other |  | $ | 108,209 |  |  | $ | 68,806 |  |  | $ | 22,694 |  |  | $ | 23,159 |  |  | $ | 6,924 |  |  | $ | 16,288 |  |  | $ | 1,500 |  |  | $ | 9,169 |  |  | $ | 256,749 |
Total loans classified by risk category |  | $ | 3,086,845 |  |  | $ | 1,832,001 |  |  | $ | 1,119,464 |  |  | $ | 567,058 |  |  | $ | 460,758 |  |  | $ | 725,750 |  |  | $ | 32,695 |  |  | $ | 1,137,076 |  |  | $ | 8,961,647 |
Total loans classified by performing status |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 55,995 |
Total loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 9,017,642 |
In the tables above, loan originations in 2022 and 2021 with a classification of watch or classified primarily represent renewals or modifications initially underwritten and originated in prior years. For certain loans, primarily credit cards, the Company evaluates credit quality based on the aging status. The following tables presents the recorded investment on loans based on payment activity as of the periods indicated:
| March 31, 2022
(in thousands) | Performing |  | Non Performing |  | Total
Commercial and industrial | $ | 14,657 |  |  | $ | 13 |  |  | $ | 14,670 |
Real estate: |  |  |  |  |
Commercial - investor owned | 8 |  |  | — |  |  | 8 |
Commercial - owner occupied | 22,108 |  |  | — |  |  | 22,108 |
Construction and land development | 2,565 |  |  | — |  |  | 2,565 |
Residential | 333 |  |  | — |  |  | 333 |
Other | 5,853 |  |  | 11 |  |  | 5,864 |
Total | $ | 45,524 |  |  | $ | 24 |  |  | $ | 45,548 |
| December 31, 2021
(in thousands) | Performing |  | Non Performing |  | Total
Commercial and industrial | $ | 26,166 |  |  | $ | 1 |  |  | $ | 26,167 |
Real estate: |  |  |  |  |
Commercial - investor owned | 1 |  |  | — |  |  | 1 |
Commercial - owner occupied | 23,405 |  |  | — |  |  | 23,405 |
Construction and land development | 2,690 |  |  | — |  |  | 2,690 |
Residential | 267 |  |  | — |  |  | 267 |
Other | 3,453 |  |  | 12 |  |  | 3,465 |
Total | $ | 55,982 |  |  | $ | 13 |  |  | $ | 55,995 |

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