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Loans (Tables)
9 Months Ended
Sep. 30, 2023
Non-covered Loans [Line Items]  
Summary of Recorded Investment by Risk Category of Portfolio Loans by Portfolio Class and Category
The current year-to-date gross charge-offs by loan class and year of origination is presented in the following table:
September 30, 2023
Term Loans by Origination Year
(in thousands)202220212019PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$$105 $— $— $4,915 $1,494 $6,518 
Real estate:
Commercial - investor owned— 170 4,692 — — 4,869 
Construction and land development— — — — — 
Residential— — — 478 176 — 654 
Other— 457 — 236 12 — 705 
Total current-period gross charge-offs by risk rating$$732 $4,692 $730 $5,103 $1,494 $12,755 
Total current-period gross charge-offs by performing status696 
Total current-period gross charge-offs$13,451 
The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated:
September 30, 2023
Term Loans by Origination Year
(in thousands)20232022202120202019PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,302,163 $1,135,119 $368,613 $214,946 $132,515 $79,373 $12,078 $986,762 $4,231,569 
Special Mention (7)15,824 1,966 15,127 11,500 781 11,356 200 29,541 86,295 
Classified (8-9)15,146 19,079 2,054 836 22 420 2,477 48,811 88,845 
Total Commercial and industrial$1,333,133 $1,156,164 $385,794 $227,282 $133,318 $91,149 $14,755 $1,065,114 $4,406,709 
Commercial real estate-investor owned
Pass (1-6)$370,443 $588,862 $555,012 $350,266 $175,231 $243,016 $3,891 $51,604 $2,338,325 
Special Mention (7)8,591 19,202 787 2,272 2,051 11,615 — — 44,518 
Classified (8-9)1,000 1,034 — 15,254 2,832 4,459 48 — 24,627 
Total Commercial real estate-investor owned$380,034 $609,098 $555,799 $367,792 $180,114 $259,090 $3,939 $51,604 $2,407,470 
Commercial real estate-owner occupied
Pass (1-6)$358,503 $504,665 $504,496 $318,273 $194,614 $328,339 $3,985 $29,511 $2,242,386 
Special Mention (7)6,867 2,395 4,390 12,103 4,613 14,364 — 1,428 46,160 
Classified (8-9)2,924 2,381 2,284 1,891 8,844 26,067 5,057 2,199 51,647 
Total Commercial real estate-owner occupied$368,294 $509,441 $511,170 $332,267 $208,071 $368,770 $9,042 $33,138 $2,340,193 
Construction real estate
Pass (1-6)$249,482 $314,888 $116,471 $30,626 $2,288 $3,541 $— $2,287 $719,583 
Special Mention (7)— 1,863 — 253 — 125 — — 2,241 
Classified (8-9)1,138 352 — — 13 469 — — 1,972 
Total Construction real estate$250,620 $317,103 $116,471 $30,879 $2,301 $4,135 $— $2,287 $723,796 
Residential real estate
Pass (1-6)$50,727 $43,430 $52,312 $31,857 $19,385 $81,476 $1,335 $82,571 $363,093 
Special Mention (7)173 252 — — 75 1,448 — — 1,948 
Classified (8-9)28 1,075 71 — 30 1,582 74 7,500 10,360 
Total residential real estate$50,928 $44,757 $52,383 $31,857 $19,490 $84,506 $1,409 $90,071 $375,401 
Other
Pass (1-6)$4,350 $56,435 $84,634 $53,756 $9,541 $23,851 $— $37,660 $270,227 
Special Mention (7)— — — — — 83 — 84 
Classified (8-9)— — — — — — 
Total Other$4,350 $56,435 $84,634 $53,756 $9,541 $23,942 $— $37,662 $270,320 
Total loans classified by risk category$2,387,359 $2,692,998 $1,706,251 $1,043,833 $552,835 $831,592 $29,145 $1,279,876 $10,523,889 
Total loans classified by performing status92,931 
Total loans$10,616,820 
December 31, 2022
Term Loans by Origination Year
(in thousands)20222021202020192018PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,403,381 $635,275 $332,740 $172,127 $62,729 $66,152 $8,388 $964,592 $3,645,384 
Special Mention (7)37,048 10,836 13,858 423 7,995 4,102 — 72,944 147,206 
Classified (8-9)16,176 4,457 1,627 24 166 183 — 21,349 43,982 
Total Commercial and industrial$1,456,605 $650,568 $348,225 $172,574 $70,890 $70,437 $8,388 $1,058,885 $3,836,572 
Commercial real estate-investor owned
Pass (1-6)$667,107 $584,644 $392,402 $240,033 $115,530 $202,661 $1,457 $53,051 $2,256,885 
Special Mention (7)18,844 5,751 23,502 11,605 — 13,063 — — 72,765 
Classified (8-9)1,823 — 465 953 193 6,092 49 — 9,575 
Total Commercial real estate-investor owned$687,774 $590,395 $416,369 $252,591 $115,723 $221,816 $1,506 $53,051 $2,339,225 
Commercial real estate-owner occupied
Pass (1-6)$539,610 $555,690 $362,150 $232,335 $123,095 $270,613 $— $57,308 $2,140,801 
Special Mention (7)11,164 3,801 16,856 4,455 13,043 9,009 — 800 59,128 
Classified (8-9)— 1,572 3,483 8,910 15,873 11,387 — — 41,225 
Total Commercial real estate-owner occupied$550,774 $561,063 $382,489 $245,700 $152,011 $291,009 $— $58,108 $2,241,154 
Construction real estate
Pass (1-6)$290,146 $232,998 $53,129 $2,909 $2,061 $8,480 $— $1,769 $591,492 
Special Mention (7)17,331 — 681 146 111 106 — — 18,375 
Classified (8-9)1,192 — — 14 471 21 — — 1,698 
Total Construction real estate$308,669 $232,998 $53,810 $3,069 $2,643 $8,607 $— $1,769 $611,565 
Residential real estate
Pass (1-6)$63,317 $60,910 $48,796 $20,943 $11,259 $88,795 $579 $96,304 $390,903 
Special Mention (7)331 — — 79 352 781 — — 1,543 
Classified (8-9)121 73 — 53 1,102 994 — 2,348 
Total residential real estate$63,769 $60,983 $48,796 $21,075 $12,713 $90,570 $579 $96,309 $394,794 
Other
Pass (1-6)$38,753 $88,613 $56,252 $10,556 $20,508 $10,796 $— $9,536 $235,014 
Special Mention (7)— — — — — — — — — 
Classified (8-9)— — — 11 25 
Total Other$38,753 $88,613 $56,252 $10,560 $20,511 $10,807 $$9,540 $235,039 
Total loans classified by risk category$3,106,344 $2,184,620 $1,305,941 $705,569 $374,491 $693,246 $10,476 $1,277,662 $9,658,349 
Total loans classified by performing status78,789 
Total loans$9,737,138 
The following tables present the recorded investment on loans based on payment activity as of the dates indicated:

September 30, 2023
(in thousands)PerformingNon PerformingTotal
Commercial and industrial$41,685 $141 $41,826 
Real estate:
Commercial - investor owned18,063 — 18,063 
Commercial - owner occupied28,629 — 28,629 
Residential719 — 719 
Other3,653 41 3,694 
Total$92,749 $182 $92,931 

December 31, 2022
(in thousands)PerformingNon PerformingTotal
Commercial and industrial$23,240 $70 $23,310 
Real estate:
Commercial - investor owned18,595 — 18,595 
Commercial - owner occupied29,397 — 29,397 
Residential743 — 743 
Other6,672 72 6,744 
Total$78,647 $142 $78,789 
Loan Modification
The following table shows the recorded investment at the end of the reporting period for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:
Term Extension
Three months endedNine months ended
(in thousands)September 30, 2023Percent of Total Loan ClassSeptember 30, 2023Percent of Total Loan Class
Commercial and industrial$66 — %$26,033 0.59 %
Real estate:
Commercial - investor owned1,000 0.04 %1,000 0.04 %
Commercial - owner occupied— — %94 — %
Construction and land development— — %1,137 0.16 %
Residential28 0.01 %102 0.03 %
Total$1,094 $28,366 
The following table summarizes the financial impacts of loan modifications made to borrowers experiencing financial difficulty and outstanding at the date indicated:
Weighted Average Term Extension (in months)
Three months endedNine months ended
September 30, 2023September 30, 2023
Commercial and industrial49
Real estate:
Commercial - investor owned33
Commercial - owner occupied— 5
Construction and land development— 10
Residential6022

The following table shows the aging of the recorded investment in modified loans by class:

September 30, 2023
(in thousands)Current30-89 Days
 Past Due
90 or More
Days
Past Due
Total
Commercial and industrial$25,483 $550 $— $26,033 
Real estate:   
Commercial - investor owned— 1,000 1,000 
Commercial - owner occupied94 — — 94 
Construction and land development741 396 — 1,137 
Residential102 — — 102 
Total$26,420 $1,946 $— $28,366 
Portfolio loans, net  
Non-covered Loans [Line Items]  
Summary of Portfolio Loans by Category
The following table presents a summary of loans by category:
(in thousands)September 30, 2023December 31, 2022
Commercial and industrial$4,449,129 $3,859,964 
Real estate:  
Commercial - investor owned2,425,821 2,357,820 
Commercial - owner occupied2,361,370 2,270,551 
Construction and land development723,138 611,565 
Residential375,986 395,537 
Total real estate loans5,886,315 5,635,473 
Other286,953 248,990 
Loans, before unearned loan fees10,622,397 9,744,427 
Unearned loan fees, net(5,577)(7,289)
Loans, including unearned loan fees$10,616,820 $9,737,138 
Summary of Allowance for Loan Losses and the Recorded Investment in Portfolio Loans by Class and Category Based on Impairment Method
A summary of the activity in the ACL on loans by category for the three and nine months ended September 30, 2023 and 2022 is as follows:
(in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied
Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:       
Balance at June 30, 2023$60,318 $33,876 $22,700 $12,795 $7,421 $4,209 $141,319 
Provision (benefit) for credit losses3,914 2,851 2,705 (1,662)(939)801 7,670 
Charge-offs(2,794)(4,692)— — (131)(686)(8,303)
Recoveries1,038 27 28 14 271 69 1,447 
Balance at September 30, 2023$62,476 $32,062 $25,433 $11,147 $6,622 $4,393 $142,133 
(in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied
Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:       
Balance at December 31, 2022$53,835 $36,191 $22,752 $11,444 $7,928 $4,782 $136,932 
Provision (benefit) for credit losses12,854 653 2,564 (342)(1,472)509 14,766 
Charge-offs(6,790)(4,869)— (9)(654)(1,129)(13,451)
Recoveries2,577 87 117 54 820 231 3,886 
Balance at September 30, 2023$62,476 $32,062 $25,433 $11,147 $6,622 $4,393 $142,133 
(in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied
Construction and land developmentResidential real estateOtherTotal
Allowance for credit losses on loans:       
Balance at June 30, 2022$65,646 $33,338 $16,156 $13,180 $7,478 $4,748 $140,546 
Provision for credit losses4,202 71 224 (3,987)99 (105)504 
Charge-offs(1,320)— (190)— (401)(88)(1,999)
Recoveries640 225 232 10 365 49 1,521 
Balance at September 30, 2022$69,168 $33,634 $16,422 $9,203 $7,541 $4,604 $140,572 
(in thousands)Commercial and industrialCRE - investor ownedCRE -
owner occupied
Construction and land developmentResidential real estateOtherTotal
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 (benefit) for credit losses7,283 (2,488)(1,424)(5,378)(50)(588)(2,645)
Charge-offs(3,576)(200)(395)— (1,706)(262)(6,139)
Recoveries1,636 445 681 45 1,370 138 4,315 
Balance at September 30, 2022$69,168 $33,634 $16,422 $9,203 $7,541 $4,604 $140,572 
Schedule of Recorded Investment in Nonperforming Loans by Category
The following tables present the recorded investment in nonperforming loans by category, excluding government guaranteed balances: 
September 30, 2023
(in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$11,913 $145 $12,058 $3,087 
Real estate:  
    Commercial - investor owned20,427 — 20,427 16,254 
    Commercial - owner occupied14,705 — 14,705 9,186 
    Construction and land development741 — 741 741 
    Residential959 — 959 959 
Other41 42 — 
       Total$48,746 $186 $48,932 $30,227 

December 31, 2022
(in thousands)NonaccrualRestructured, accruingLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$4,373 $— $70 $4,443 $1,047 
Real estate: 
    Commercial - investor owned3,023 — — 3,023 — 
    Commercial - owner occupied1,177 — — 1,177 — 
    Construction and land development1,192 — — 1,192 1,192 
    Residential— 73 — 73 — 
Other— 72 73 — 
       Total$9,766 $73 $142 $9,981 $2,239 
Schedule of Collateral Dependent Loans
Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated:
September 30, 2023
Type of Collateral
(in thousands)Commercial Real EstateResidential Real EstateBlanket Lien
Commercial and industrial$875 $1,864 $3,017 
Real estate:
Commercial - investor owned19,490 — — 
Commercial - owner occupied4,815 — 5,735 
Construction and land development741 
Residential— 959 — 
Total$25,180 $3,564 $8,752 

December 31, 2022
Type of Collateral
(in thousands)Commercial Real EstateResidential Real EstateBlanket Lien
Commercial and industrial$— $— $1,047 
Real estate:
Commercial - investor owned2,238 785 — 
Commercial - owner occupied1,177 — — 
Construction and land development— 1,192 — 
Residential— 73 — 
Total$3,415 $2,050 $1,047 
Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category
The aging of the recorded investment in past due loans by class is presented as of the dates indicated.

September 30, 2023
(in thousands)30-89 Days
 Past Due
90 or More
Days
Past Due
Total
Past Due
CurrentTotal
Commercial and industrial$15,723 $7,929 $23,652 $4,425,477 $4,449,129 
Real estate:     
Commercial - investor owned16,287 937 17,224 2,408,597 2,425,821 
Commercial - owner occupied5,338 13,052 18,390 2,342,980 2,361,370 
Construction and land development1,737 — 1,737 721,401 723,138 
Residential446 959 1,405 374,581 375,986 
Other109 41 150 286,803 286,953 
Loans, before unearned loan fees$39,640 $22,918 $62,558 $10,559,839 $10,622,397 
Unearned loan fees, net(5,577)
Total$10,616,820 
December 31, 2022
(in thousands)30-89 Days
 Past Due
90 or More
Days
Past Due
Total
Past Due
CurrentTotal
Commercial and industrial$555 $2,373 $2,928 $3,857,036 $3,859,964 
Real estate:
Commercial - investor owned— 1,135 1,135 2,356,685 2,357,820 
Commercial - owner occupied8,628 164 8,792 2,261,759 2,270,551 
Construction and land development1,192 1,201 610,364 611,565 
Residential1,227 — 1,227 394,310 395,537 
Other18 72 90 248,900 248,990 
Loans, before unearned loan fees$10,437 $4,936 $15,373 $9,729,054 $9,744,427 
Unearned loan fees, net(7,289)
Total$9,737,138