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Loans
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Loans LOANS
The following table presents a summary of loans by category:
($ in thousands)March 31, 2025December 31, 2024
Commercial and industrial$4,733,824 $4,720,428 
Real estate:  
Commercial - investor owned2,675,424 2,607,755 
Commercial - owner occupied2,364,214 2,359,956 
Construction and land development882,313 892,563 
Residential365,951 358,923 
Total real estate loans6,287,902 6,219,197 
Other277,520 281,193 
Loans, before unearned loan fees11,299,246 11,220,818 
Unearned loan fees, net(483)(463)
Loans, including unearned loan fees$11,298,763 $11,220,355 

The loan balance includes a net premium on acquired loans of $7.6 million and $7.8 million at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025 and December 31, 2024, loans and securities of $6.0 billion and $5.7 billion, respectively, were pledged to the FHLB and the Federal Reserve.

Accrued interest totaled $53.1 million and $52.4 million at March 31, 2025 and December 31, 2024, respectively, and was reported in “Other Assets” on the consolidated balance sheets.

The Company sold the guaranteed portion of SBA 7(a) loans of $31.3 million, resulting in a gain on sale of $1.9 million during the three months ended March 31, 2025. During the three months ended March 31, 2024, the Company sold the guaranteed portion of SBA 7(a) loans of $23.1 million resulting in a gain on sale of $1.4 million.

The Company had an immaterial amount of consumer mortgage loans secured by residential real estate in process of foreclosure as of March 31, 2025, compared to none at December 31, 2024.
A summary of the activity, by loan category, in the ACL on loans for the three months ended March 31, 2025 and 2024 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 December 31, 2024
$63,231 $34,217 $20,400 $9,837 $6,534 $3,731 $137,950 
Provision (benefit) for credit losses5,748 (3,751)(1,966)2,264 1,056 584 3,935 
Charge-offs(591)— (362)— (225)(107)(1,285)
Recoveries1,499 85 288 13 379 80 2,344 
Balance at March 31, 2025
$69,887 $30,551 $18,360 $12,114 $7,744 $4,288 $142,944 


($ 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, 2023
$58,886 $31,280 $23,405 $10,198 $6,142 $4,860 $134,771 
Provision (benefit) for credit losses4,978 140 1,500 (379)406 (54)6,591 
Charge-offs(5,353)(305)(112)— (497)(383)(6,650)
Recoveries203 81 14 6 428 54 786 
Balance at March 31, 2024
$58,714 $31,196 $24,807 $9,825 $6,479 $4,477 $135,498 

The ACL on sponsor finance loans, which is included in the categories above, represented $21.7 million and $14.5 million at March 31, 2025 and December 31, 2024, respectively.

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 downside forecast. The Company weights these scenarios at 40%, 30%, and 30%, respectively, which added approximately $14.6 million to the ACL on loans over the baseline model at March 31, 2025. The baseline forecast incorporates an expectation that the federal funds rate will continue to fall in 2025. The Company has also recognized various risks posed by loans in certain segments, including the commercial office 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 market reactions to the Federal Reserve policy actions that could push the economy into a recession, persistently higher inflation (including the impact of tariffs), tightening in the credit markets, and further weakness in the financial system.

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 CECL 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, 2025, the ACL on loans included a qualitative adjustment of approximately $39.2 million. Of this amount, approximately $15.5 million was allocated to sponsor finance loans due to their mostly unsecured nature.
The current year-to-date gross charge-offs by loan class and year of origination is presented in the following tables:
March 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$— $— $— $— $— $581 $— $— $581 
Real estate:
Commercial - owner occupied— — 285 — — 77 — — 362 
Residential— — — — — — — 225 225 
Other— — — — — 3 — — 3 
Total charge-offs by origination year$— $— $285 $— $— $661 $— $225 $1,171 
Total gross charge-offs by performing status114 
Total gross charge-offs$1,285 

December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202220212020PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial$312 $2,646 $3,043 $35 $166 $772 $2,205 $3,589 $12,768 
Real estate:
Commercial - investor owned— — — 252 — 448 — — 700 
Commercial - owner occupied— — 41 475 10 2,548 — — 3,074 
Construction and land development— — — — 3,224 — — — 3,224 
Residential— — 166 15 — 471 202 24 878 
Other4 17 — 58 — 79 103 1 262 
Total charge-offs by origination year$316 $2,663 $3,250 $835 $3,400 $4,318 $2,510 $3,614 $20,906 
Total gross charge-offs by performing status968 
Total gross charge-offs$21,874 
Nonperforming loans were $109.9 million at March 31, 2025, compared to $42.7 million at December 31, 2024. The increase in nonperforming loans largely reflects two borrowing relationships sharing a common general partner where the entities filed bankruptcy as a result of a business dispute between partners. The loans are well secured with both collateral and strong guarantees, and as the Company expects to collect the balance of the loans, there are no individual reserves on these loans. The following tables present the recorded investment in nonperforming loans by category, excluding government guaranteed balances:
March 31, 2025
($ in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$14,737 $144 $14,881 $849 
Real estate: 
    Commercial - investor owned33,020 43,086 76,106 20,940 
    Commercial - owner occupied13,065 — 13,065 11,122 
    Residential258 5,526 5,784 — 
Other— 46 46 — 
       Total$61,080 $48,802 $109,882 $32,911 

December 31, 2024
($ in thousands)NonaccrualLoans over 90 days past due and still accruing interestTotal nonperforming loansNonaccrual loans with no allowance
Commercial and industrial$15,810 $11 $15,821 $4,279 
Real estate:
    Commercial - investor owned14,186 — 14,186 2,106 
    Commercial - owner occupied10,910 — 10,910 8,235 
    Construction and land development1,503 — 1,503 1,503 
    Residential258 — 258 — 
Other— 9 9 — 
       Total$42,667 $20 $42,687 $16,123 

The nonperforming loan balances at March 31, 2025 and December 31, 2024 exclude government guaranteed balances of $22.6 million and $22.0 million respectively.

Interest income recognized on nonaccrual loans was immaterial during the three months ended March 31, 2025 and 2024.
Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated:
March 31, 2025
Type of Collateral
($ in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Commercial and industrial$— $31 $6,337 $3,354 
Real estate:
Commercial - investor owned74,981 — — — 
Commercial - owner occupied8,232 456 486 — 
Residential— 5,526 — — 
Total$83,213 $6,013 $6,823 $3,354 

December 31, 2024
Type of Collateral
($ in thousands)Commercial Real EstateResidential Real EstateBlanket LienOther
Commercial and industrial$— $— $4,279 $3,495 
Real estate:
Commercial - investor owned14,136 — — — 
Commercial - owner occupied7,521 482 486 — 
Total$21,657 $482 $4,765 $3,495 

The aging of the recorded investment in past due loans by class and category is presented as of the dates indicated.

March 31, 2025
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
Commercial and industrial$11,422 $11,189 $22,611 $4,711,213 $4,733,824 
Real estate:
Commercial - investor owned4,565 78,965 83,530 2,591,894 2,675,424 
Commercial - owner occupied10,803 22,251 33,054 2,331,160 2,364,214 
Construction and land development16,363 — 16,363 865,950 882,313 
Residential1,634 5,784 7,418 358,533 365,951 
Other112 45 157 277,363 277,520 
Loans, before unearned loan fees$44,899 $118,234 $163,133 $11,136,113 $11,299,246 
Unearned loan fees, net(483)
Total$11,298,763 
December 31, 2024
($ in thousands)30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Past Due		CurrentTotal
Commercial and industrial$1,948 $12,228 $14,176 $4,706,252 $4,720,428 
Real estate:
Commercial - investor owned1,377 14,333 15,710 2,592,045 2,607,755 
Commercial - owner occupied10,542 18,591 29,133 2,330,823 2,359,956 
Construction and land development101 5,620 5,721 886,842 892,563 
Residential2,833 258 3,091 355,832 358,923 
Other34 9 43 281,150 281,193 
Loans, before unearned loan fees$16,835 $51,039 $67,874 $11,152,944 $11,220,818 
Unearned loan fees, net(463)
Total$11,220,355 

The allowance for credit losses on loans incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon origination or acquisition. The starting point for the estimate of the allowance for credit losses on loans is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a probability of default and loss given default model to determine the allowance for credit losses on loans.

An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses on loans because of the measurement methodologies used to estimate the allowance.

The most common concession the Company provides to borrowers experiencing financial difficulty is a term extension. In limited circumstances, the Company may modify loans by providing principal forgiveness or an interest rate reduction. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses on loans. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses on loans.

In some cases, the Company will modify a loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as an interest rate reduction or principal forgiveness, may be granted.

The following tables show the recorded investment at the end of the dates listed for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:
Term Extension
Three months ended
($ in thousands)March 31, 2025Percent of Total Loan Class
Commercial and industrial$3,154 0.07 %
Real estate:
Commercial - owner occupied4,905 0.21 %
Residential25 0.01 %
Total$8,084 
Term ExtensionPayment DelayTotal
Three months endedThree months endedThree months ended
($ in thousands)March 31,
2024		Percent of Total Loan ClassMarch 31, 2024Percent of Total Loan ClassMarch 31, 2024Percent of Total Loan Class
Commercial and industrial$44,641 0.94 %$567 0.01 %$45,208 0.95 %
Real estate:
Commercial - investor owned8,409 0.34 %— — %8,409 0.34 %
Commercial - owner occupied94 NM— — %94 NM
Residential7,644 2.08 %— — %7,644 2.08 %
Total$60,788 $567 $61,355 


The following tables summarize the financial impacts of loan modifications made to borrowers experiencing financial difficulty and outstanding at the date indicated:
Three months ended
Weighted Average Term Extension
(in months)		Weighted Average Term Extension
(in months)		Amount of Payment Delay
($ in thousands)March 31, 2025March 31, 2024March 31, 2024
Commercial and industrial64$85 
Real estate:
Commercial - investor owned03—
Commercial - owner occupied183—
Residential312—

The following table shows the aging of the recorded investment in modified loans in the last 12 months by class at the date indicated:

March 31, 2025
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Commercial and industrial$32,126 $— $1,609 $33,735 
Real estate:
Commercial - investor owned252 — — 252 
Commercial - owner occupied16,817 — 906 17,723 
Residential24 — — 24 
Total$49,219 $— $2,515 $51,734 

March 31, 2024
($ in thousands)Current30-89 Days
 Past Due		90 or More
Days
Past Due		Total
Commercial and industrial$28,512 $— $— $28,512 
Real estate:
Commercial - investor owned8,409 — — 8,409 
Commercial - owner occupied94 — — 94 
Construction— 741 — 741 
Residential7,669 — — 7,669 
Total$44,684 $741 $— $45,425 
During the three months ended March 31, 2025, no loans experienced a default subsequent to being granted a modification in the prior twelve months. The following table summarizes loans that experienced a default during the three months ended March 31, 2024, subsequent to being granted a modification in the preceding twelve months. All of these loans were charged-off during the preceding period. Default is defined as movement to nonperforming status, foreclosure or charge-off.

Term Extension
Three months ended
($ in thousands)March 31, 2024Percent of Total Loan Class
Commercial and industrial$1,000 0.02 %
Real estate:
Construction and land development1,748 0.21 %
Other4 NM
Total$2,752 

As of March 31, 2025, the Company allocated an immaterial amount in specific reserves to loans that have been restructured.

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 – Special Mention 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, 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 non-accrual.
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:
March 31, 2025
Term Loans by Origination Year
($ in thousands)20252024202320222021PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$357,361 $1,301,273 $789,226 $532,302 $127,020 $161,328 $100,320 $1,005,212 $4,374,042 
Special Mention (7)23,601 58,902 45,617 4,716 1,616 202 18,575 37,275 190,504 
Classified (8-9)767 35,323 813 9,079 1,712 1,468 25,492 20,049 94,703 
Total Commercial and industrial$381,729 $1,395,498 $835,656 $546,097 $130,348 $162,998 $144,387 $1,062,536 $4,659,249 
Commercial real estate-investor owned
Pass (1-6)$171,825 $529,932 $402,654 $468,301 $359,918 $504,676 $17,203 $48,882 $2,503,391 
Special Mention (7)— 12,517 4,865 6,267 717 9,339 33,410 1,999 69,114 
Classified (8-9)— 252 — 819 63,048 20,405 — — 84,524 
Total Commercial real estate-investor owned$171,825 $542,701 $407,519 $475,387 $423,683 $534,420 $50,613 $50,881 $2,657,029 
Commercial real estate-owner occupied
Pass (1-6)$162,877 $334,822 $325,433 $428,330 $384,168 $557,996 $2,757 $24,791 $2,221,174 
Special Mention (7)— 7,081 11,400 8,050 12,051 27,957 — — 66,539 
Classified (8-9)— 18,855 3,661 6,536 7,021 21,224 — 250 57,547 
Total Commercial real estate-owner occupied$162,877 $360,758 $340,494 $442,916 $403,240 $607,177 $2,757 $25,041 $2,345,260 
Construction real estate
Pass (1-6)$92,911 $384,312 $171,269 $173,574 $16,554 $2,377 $22,571 $4,454 $868,022 
Special Mention (7)1,004 10,061 129 47 — — 102 — 11,343 
Classified (8-9)— — 469 763 — 111 — — 1,343 
Total Construction real estate$93,915 $394,373 $171,867 $174,384 $16,554 $2,488 $22,673 $4,454 $880,708 
Residential real estate
Pass (1-6)$17,318 $43,591 $36,808 $33,951 $36,115 $94,200 $6,477 $70,244 $338,704 
Special Mention (7)237 1,296 25 233 — 2,313 — 891 4,995 
Classified (8-9)24 — 2,939 104 11,956 6,992 — — 22,015 
Total residential real estate$17,579 $44,887 $39,772 $34,288 $48,071 $103,505 $6,477 $71,135 $365,714 
Other
Pass (1-6)$423 $30,837 $5,657 $47,226 $55,050 $79,145 $— $38,267 $256,605 
Special Mention (7)— — 1,628 — — 715 — 13,769 16,112 
Classified (8-9)— — — — — 1,052 — 5 1,057 
Total Other$423 $30,837 $7,285 $47,226 $55,050 $80,912 $— $52,041 $273,774 
Total loans classified by risk category$828,348 $2,769,054 $1,802,593 $1,720,298 $1,076,946 $1,491,500 $226,907 $1,266,088 $11,181,734 
Total loans classified by performing status117,029 
Total loans$11,298,763 
December 31, 2024
Term Loans by Origination Year
($ in thousands)20242023202120212020PriorRevolving Loans Converted to Term LoansRevolving LoansTotal
Commercial and industrial
Pass (1-6)$1,477,552 $958,327 $607,626 $172,201 $117,845 $69,236 $87,059 $942,991 $4,432,837 
Special Mention (7)32,479 40,804 4,982 2,373 796 64 14,783 55,100 151,381 
Classified (8-9)29,999 868 9,271 — 142 809 9,681 20,791 71,561 
Total Commercial and industrial$1,540,030 $999,999 $621,879 $174,574 $118,783 $70,109 $111,523 $1,018,882 $4,655,779 
Commercial real estate-investor owned
Pass (1-6)$587,403 $402,899 $479,131 $374,155 $266,044 $281,232 $4,566 $48,808 $2,444,238 
Special Mention (7)12,195 4,901 — 43,506 2,389 9,623 31,321 1,999 105,934 
Classified (8-9)256 — 821 20,274 13,564 4,702 — — 39,617 
Total Commercial real estate-investor owned$599,854 $407,800 $479,952 $437,935 $281,997 $295,557 $35,887 $50,807 $2,589,789 
Commercial real estate-owner occupied
Pass (1-6)$420,774 $329,001 $437,731 $408,210 $246,024 $352,095 $890 $29,239 $2,223,964 
Special Mention (7)6,914 10,764 5,323 12,324 8,426 18,389 — — 62,140 
Classified (8-9)13,794 3,727 4,063 6,452 3,765 22,319 — 250 54,370 
Total Commercial real estate-owner occupied$441,482 $343,492 $447,117 $426,986 $258,215 $392,803 $890 $29,489 $2,340,474 
Construction real estate
Pass (1-6)$404,286 $211,573 $198,278 $38,131 $6,110 $3,823 $9,513 $5,338 $877,052 
Special Mention (7)11,250 33 49 294 — 223 — — 11,849 
Classified (8-9)— — 1,573 — — 585 — — 2,158 
Total Construction real estate$415,536 $211,606 $199,900 $38,425 $6,110 $4,631 $9,513 $5,338 $891,059 
Residential real estate
Pass (1-6)$46,454 $37,371 $35,082 $27,784 $22,350 $78,113 $5,880 $79,284 $332,318 
Special Mention (7)1,539 26 239 — — 1,435 — 887 4,126 
Classified (8-9)— 2,979 107 11,976 5,538 1,572 — — 22,172 
Total residential real estate$47,993 $40,376 $35,428 $39,760 $27,888 $81,120 $5,880 $80,171 $358,616 
Other
Pass (1-6)$31,286 $6,058 $50,351 $55,844 $49,519 $31,061 $44 $40,578 $264,741 
Special Mention (7)— 2,326 — — — 1,780 — 7,660 11,766 
Classified (8-9)— — — — — 5 — — 5 
Total Other$31,286 $8,384 $50,351 $55,844 $49,519 $32,846 $44 $48,238 $276,512 
Total loans classified by risk category$3,076,181 $2,011,657 $1,834,627 $1,173,524 $742,512 $877,066 $163,737 $1,232,925 $11,112,229 
Total loans classified by performing status108,126 
Total loans$11,220,355 
In the tables above, loan originations in 2025 and 2024 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years.

The following tables summarize the risk category of the loans by loan type as of the dates indicated:

March 31, 2025
($ in thousands)Pass (1-6)Special Mention (7)Classified (8-9)Total
Commercial and industrial$4,374,042 $190,504 $94,703 $4,659,249 
Real estate:
Commercial - investor owned2,503,391 69,114 84,524 2,657,029 
Commercial - owner occupied2,221,174 66,539 57,547 2,345,260 
Construction and land development868,022 11,343 1,343 880,708 
Residential338,704 4,995 22,015 365,714 
Other256,605 16,112 1,057 273,774 
Total loans classified by risk category$10,561,938 $358,607 $261,189 $11,181,734 
Total loans classified by performing status117,029 
$11,298,763 

December 31, 2024
($ in thousands)Pass (1-6)Special Mention (7)Classified (8-9)Total
Commercial and industrial$4,432,837 $151,381 $71,561 $4,655,779 
Real estate:
Commercial - investor owned2,444,238 105,934 39,617 2,589,789 
Commercial - owner occupied2,223,964 62,140 54,370 2,340,474 
Construction and land development877,052 11,849 2,158 891,059 
Residential332,318 4,126 22,172 358,616 
Other264,741 11,766 5 276,512 
Total loans classified by risk category$10,575,150 $347,196 $189,883 $11,112,229 
Total loans classified by performing status108,126 
$11,220,355 

In the tables above, guaranteed loan balances are included with a classification of “pass” due to the nature of these loans.

For certain loans, the Company evaluates credit quality based on the aging status.
The following tables present the recorded investment on loans based on payment activity as of the dates indicated:

March 31, 2025
($ in thousands)PerformingNon PerformingTotal
Commercial and industrial$70,314 $144 $70,458 
Real estate:
Commercial - investor owned16,962 — 16,962 
Commercial - owner occupied27,042 — 27,042 
Residential639 — 639 
Other1,882 46 1,928 
Total$116,839 $190 $117,029 

December 31, 2024
($ in thousands)PerformingNon PerformingTotal
Commercial and industrial$60,899 $11 $60,910 
Real estate:
Commercial - investor owned17,175 — 17,175 
Commercial - owner occupied27,349 — 27,349 
Residential647 — 647 
Other2,036 9 2,045 
Total$108,106 $20 $108,126