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Portfolio loans and allowance for credit losses | 12 Months Ended
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Dec. 31, 2020
Portfolio loans |
Portfolio loans and allowance for credit losses | Note 4. Portfolio Loans and Allowance for Credit Losses ​ Distributions of portfolio loans were as follows (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31,
​ |  | 2020 |  | 2019
Commercial | ​ | $ | 2,014,576 | ​ | $ | 1,748,368
Commercial real estate | ​ | ​ | 2,892,535 | ​ | ​ | 2,793,417
Real estate construction | ​ | ​ | 461,786 | ​ | ​ | 401,861
Retail real estate | ​ | ​ | 1,407,852 | ​ | ​ | 1,693,769
Retail other | ​ | ​ | 37,428 | ​ | ​ | 49,834
Portfolio loans | ​ | $ | 6,814,177 | ​ | $ | 6,687,249
​ | ​ | ​ | ​ | ​ | ​ | ​
Allowance | ​ | ​ | (101,048) | ​ | ​ | (53,748)
Portfolio loans, net | ​ | $ | 6,713,129 | ​ | $ | 6,633,501
​ Net deferred loan origination costs included in the balances above were $2.4 million and $6.2 million as of December 31, 2020 and 2019, respectively. Net accretable purchase accounting adjustments included in the balances above reduced loans by $10.9 million and $20.2 million as of December 31, 2020 and 2019, respectively. The December 31, 2020, commercial balance includes loans originated under the PPP with an amortized cost of $446.4 million. ​ The Company utilizes a loan grading scale to assign a risk grade to all of its loans. A description of the general characteristics of each grade is as follows: ​
| ● | Pass- This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards.
​
| ● | Watch- This category includes loans that warrant a higher than average level of monitoring to ensure that weaknesses do not cause the inability of the credit to perform as expected. These loans are not necessarily a problem due to other inherent strengths of the credit, such as guarantor strength, but have above average concern and monitoring.
​
| ● | Special mention- This category is for “Other Assets Specially Mentioned” loans that have potential weaknesses, which may, if not checked or corrected, weaken the asset, or inadequately protect the Company’s credit position at some future date.
​
| ● | Substandard- This category includes “Substandard” loans, determined in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
​
| ● | Substandard Non-accrual- This category includes loans that have all the characteristics of a “Substandard” loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral with a value that is difficult to determine.
​ All loans are graded at their inception. Most commercial lending relationships that are $1.0 million or less are processed through an expedited underwriting process. Most commercial loans greater than $1.0 million are included in a portfolio review at least annually. Commercial loans greater than $0.35 million that have a grading of special mention or worse are reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more frequent review. ​ The following table is a summary of risk grades segregated by category of portfolio loans. December 31, 2020, includes purchase discounts and clearings in the pass rating. December 31, 2019, excludes purchase discounts and clearings (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2020
​ |  | ​ |  | ​ |  | Special |  | ​ |  | Substandard
​ |  | Pass |  | Watch |  | Mention |  | Substandard |  | Non-accrual
Commercial | ​ | $ | 1,768,755 | ​ | $ | 136,948 | ​ | $ | 72,447 | ​ | $ | 27,903 | ​ | $ | 8,523
Commercial real estate | ​ |  | 2,393,372 | ​ |  | 383,277 | ​ |  | 75,486 | ​ |  | 34,897 | ​ |  | 5,503
Real estate construction | ​ |  | 434,681 | ​ |  | 24,481 | ​ |  | 77 | ​ |  | 2,546 | ​ |  | 1
Retail real estate | ​ |  | 1,382,616 | ​ |  | 10,264 | ​ |  | 2,471 | ​ |  | 3,702 | ​ |  | 8,799
Retail other | ​ |  | 37,324 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 104
Portfolio loans | ​ | $ | 6,016,748 | ​ | $ | 554,970 | ​ | $ | 150,481 | ​ | $ | 69,048 | ​ | $ | 22,930
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2019
​ |  | ​ |  | ​ |  | Special |  | ​ |  | Substandard
​ |  | Pass |  | Watch |  | Mention |  | Substandard |  | Non-accrual
Commercial | ​ | $ | 1,458,416 | ​ | $ | 172,526 | ​ | $ | 66,337 | ​ | $ | 41,273 | ​ | $ | 9,096
Commercial real estate | ​ |  | 2,477,398 | ​ |  | 186,963 | ​ |  | 105,487 | ​ |  | 26,204 | ​ |  | 9,178
Real estate construction | ​ |  | 351,923 | ​ |  | 45,262 | ​ |  | 3,928 | ​ |  | 737 | ​ |  | 630
Retail real estate | ​ |  | 1,661,691 | ​ |  | 9,125 | ​ |  | 5,355 | ​ |  | 7,001 | ​ |  | 8,935
Retail other | ​ |  | 47,698 | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 57
Portfolio loans | ​ | $ | 5,997,126 | ​ | $ | 413,876 | ​ | $ | 181,107 | ​ | $ | 75,215 | ​ | $ | 27,896
​ Risk grades of portfolio loans, further sorted by origination year at December 31, 2020 is as follows (dollars in thousand): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Term Loans Amortized Cost Basis by Origination Year | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | Revolving | ​ | ​ | ​
As of December 31, 2020 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 | ​ | ​ | Prior | ​ | ​ | loans | ​ | ​ | Total
Commercial: |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Risk rating | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pass | ​ | $ | 812,536 | ​ | $ | 158,307 | ​ | $ | 107,565 | ​ | $ | 93,190 | ​ | $ | 61,847 | ​ | $ | 79,970 | ​ | $ | 455,340 | ​ | $ | 1,768,755
Watch | ​ | ​ | 16,544 | ​ | ​ | 22,247 | ​ | ​ | 14,954 | ​ | ​ | 13,724 | ​ | ​ | 2,577 | ​ | ​ | 10,943 | ​ | ​ | 55,959 | ​ | ​ | 136,948
Special Mention | ​ | ​ | 6,402 | ​ | ​ | 2,671 | ​ | ​ | 2,069 | ​ | ​ | 7,164 | ​ | ​ | 6,763 | ​ | ​ | 13,733 | ​ | ​ | 33,645 | ​ | ​ | 72,447
Substandard | ​ | ​ | 7,772 | ​ | ​ | 3,791 | ​ | ​ | 2,371 | ​ | ​ | 1,939 | ​ | ​ | 819 | ​ | ​ | 1,233 | ​ | ​ | 9,978 | ​ | ​ | 27,903
Substandard non-accrual | ​ | ​ | 150 | ​ | ​ | 3,045 | ​ | ​ | 451 | ​ | ​ | 2,168 | ​ | ​ | 641 | ​ | ​ | 68 | ​ | ​ | 2,000 | ​ | ​ | 8,523
Total commercial | ​ | $ | 843,404 | ​ | $ | 190,061 | ​ | $ | 127,410 | ​ | $ | 118,185 | ​ | $ | 72,647 | ​ | $ | 105,947 | ​ | $ | 556,922 | ​ | $ | 2,014,576
Commercial real estate: |  |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Risk rating | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pass | ​ | $ | 717,559 | ​ | $ | 503,977 | ​ | $ | 360,573 | ​ | $ | 384,843 | ​ | $ | 180,555 | ​ | $ | 227,068 | ​ | $ | 18,797 | ​ | $ | 2,393,372
Watch | ​ | ​ | 88,297 | ​ | ​ | 110,526 | ​ | ​ | 90,412 | ​ | ​ | 33,734 | ​ | ​ | 32,887 | ​ | ​ | 27,023 | ​ | ​ | 398 | ​ | ​ | 383,277
Special Mention | ​ | ​ | 16,490 | ​ | ​ | 8,858 | ​ | ​ | 10,490 | ​ | ​ | 10,505 | ​ | ​ | 7,102 | ​ | ​ | 21,808 | ​ | ​ | 233 | ​ | ​ | 75,486
Substandard | ​ | ​ | 17,445 | ​ | ​ | 4,166 | ​ | ​ | 1,491 | ​ | ​ | 7,812 | ​ | ​ | 2,111 | ​ | ​ | 1,377 | ​ | ​ | 495 | ​ | ​ | 34,897
Substandard non-accrual | ​ | ​ | 1,091 | ​ | ​ | 776 | ​ | ​ | 821 | ​ | ​ | 882 | ​ | ​ | 286 | ​ | ​ | 1,647 | ​ | ​ | — | ​ | ​ | 5,503
Total commercial real estate | ​ | $ | 840,882 | ​ | $ | 628,303 | ​ | $ | 463,787 | ​ | $ | 437,776 | ​ | $ | 222,941 | ​ | $ | 278,923 | ​ | $ | 19,923 | ​ | $ | 2,892,535
Real estate construction: |  |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Risk rating | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pass | ​ | $ | 179,232 | ​ | $ | 171,663 | ​ | $ | 64,025 | ​ | $ | 1,468 | ​ | $ | 761 | ​ | $ | 1,444 | ​ | $ | 16,088 | ​ | $ | 434,681
Watch | ​ | ​ | 18,485 | ​ | ​ | 3,657 | ​ | ​ | 337 | ​ | ​ | 1,838 | ​ | ​ | 164 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | 24,481
Special Mention | ​ | ​ | 67 | ​ | ​ | 10 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 77
Substandard | ​ | ​ | 2,400 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 146 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,546
Substandard non-accrual | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1 | ​ | ​ | — | ​ | ​ | 1
Total real estate construction | ​ | $ | 200,184 | ​ | $ | 175,330 | ​ | $ | 64,362 | ​ | $ | 3,306 | ​ | $ | 1,071 | ​ | $ | 1,445 | ​ | $ | 16,088 | ​ | $ | 461,786
Retail real estate: |  |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Risk rating | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pass | ​ | $ | 319,302 | ​ | $ | 162,711 | ​ | $ | 135,065 | ​ | $ | 136,427 | ​ | $ | 140,600 | ​ | $ | 257,147 | ​ | $ | 231,364 | ​ | $ | 1,382,616
Watch | ​ | ​ | 2,715 | ​ | ​ | 2,053 | ​ | ​ | 1,396 | ​ | ​ | 349 | ​ | ​ | 579 | ​ | ​ | 233 | ​ | ​ | 2,939 | ​ | ​ | 10,264
Special Mention | ​ | ​ | 509 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 1,962 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 2,471
Substandard | ​ | ​ | 899 | ​ | ​ | 96 | ​ | ​ | 56 | ​ | ​ | 26 | ​ | ​ | 727 | ​ | ​ | 1,631 | ​ | ​ | 267 | ​ | ​ | 3,702
Substandard non-accrual | ​ | ​ | 687 | ​ | ​ | 78 | ​ | ​ | 646 | ​ | ​ | 1,147 | ​ | ​ | 233 | ​ | ​ | 4,815 | ​ | ​ | 1,193 | ​ | ​ | 8,799
Total retail real estate | ​ | $ | 324,112 | ​ | $ | 164,938 | ​ | $ | 137,163 | ​ | $ | 137,949 | ​ | $ | 144,101 | ​ | $ | 263,826 | ​ | $ | 235,763 | ​ | $ | 1,407,852
Retail other: |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Risk rating | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Pass | ​ | $ | 8,357 | ​ | $ | 9,430 | ​ | $ | 5,600 | ​ | $ | 2,516 | ​ | $ | 691 | ​ | $ | 440 | ​ | $ | 10,290 | ​ | $ | 37,324
Watch | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Special Mention | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Substandard | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Substandard non-accrual | ​ | ​ | 14 | ​ | ​ | 7 | ​ | ​ | 5 | ​ | ​ | 15 | ​ | ​ | 5 | ​ | ​ | 57 | ​ | ​ | 1 | ​ | ​ | 104
Total retail other | ​ | $ | 8,371 | ​ | $ | 9,437 | ​ | $ | 5,605 | ​ | $ | 2,531 | ​ | $ | 696 | ​ | $ | 497 | ​ | $ | 10,291 | ​ | $ | 37,428
​ An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on a non-accrual status, is as follows (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2020
​ | ​ | Loans past due, still accruing | ​ | Non-accrual
​ |  | 30-59 Days |  | 60-89 Days |  | 90+Days |  | Loans
Commercial | ​ | $ | 243 | ​ | $ | — | ​ | $ | — | ​ | $ | 8,523
Commercial real estate | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 5,503
Real estate construction | ​ |  | 237 | ​ |  | 235 | ​ |  | — | ​ |  | 1
Retail real estate | ​ | ​ | 6,248 | ​ | ​ | 400 | ​ | ​ | 1,305 | ​ | ​ | 8,799
Retail other | ​ |  | 66 | ​ |  | 149 | ​ |  | 66 | ​ |  | 104
Past due and non-accrual loans | ​ | $ | 6,794 | ​ | $ | 784 | ​ | $ | 1,371 | ​ | $ | 22,930
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2019
​ | ​ | Loans past due, still accruing | ​ | Non-accrual
​ |  | 30-59 Days |  | 60-89 Days |  | 90+Days |  | Loans
Commercial | ​ | $ | 1,075 | ​ | $ | 1,014 | ​ | $ | 199 | ​ | $ | 9,096
Commercial real estate | ​ |  | 2,653 | ​ |  | 3,121 | ​ |  | 584 | ​ |  | 9,178
Real estate construction | ​ |  | 19 | ​ |  | — | ​ |  | — | ​ |  | 630
Retail real estate | ​ |  | 5,021 | ​ |  | 1,248 | ​ |  | 828 | ​ | ​ | 8,935
Retail other | ​ |  | 52 | ​ |  | 68 | ​ |  | — | ​ |  | 57
Past due and non-accrual loans | ​ | $ | 8,820 | ​ | $ | 5,451 | ​ | $ | 1,611 | ​ | $ | 27,896
​ Gross interest income that would have been recorded in the years ended December 31, 2020, 2019, and 2018, if non-accrual loans and 90+ days past due loans had been current in accordance with their original terms, was approximately $1.8 million, $2.3 million, and $1.7 million, respectively. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was insignificant in 2020, 2019, and 2018. ​ A summary of TDR loans is as follows (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31,
​ |  | 2020 |  | 2019
In compliance with modified terms | ​ | $ | 3,814 | ​ | $ | 5,005
30 – 89 days past due | ​ |  | 15 | ​ |  | —
Included in non-performing loans | ​ |  | 1,249 | ​ |  | 702
TDR loans | ​ | $ | 5,078 | ​ | $ | 5,707
​ ​ Loans still outstanding that were newly classified as a TDR in compliance with modified terms during the year ended December 31, 2020, consisted of three retail real estate loans for payment modifications, with a recorded investment of $0.8 million. Loans newly classified as a TDR in compliance with modified terms during the year ended December 31, 2019, and outstanding at December 31, 2019, consisted of one commercial loan for short-term interest rate relief, with a recorded investment of $0.3 million. ​ Gross interest income that would have been recorded in the years ended December 31, 2020 and 2019, if TDRs had performed in accordance with their original terms instead of modified terms, was insignificant. ​ There were no TDRs that were entered into during the year ended December 31, 2020, that were subsequently classified as non-performing and had payment defaults (a default occurs when a loan is 90 days or more past due or transferred to non-accrual). One commercial real estate TDR that was entered into during the year ended December 31, 2019, was subsequently classified as non-performing and had payment defaults; it was then transferred to OREO by December 31, 2019. ​ Modified loans with payment deferrals that fall under the CARES Act or revised Interagency Statement that suspended requirements under GAAP related to TDR classification are not included in the Company’s TDR totals. As of December 31, 2020, the Company had 98 commercial loans on payment deferrals representing $208.6 million in loans, 351 mortgage/personal loans on payment deferrals representing $47.7 million in loans and an additional loan for $0.1 million related to a purchased home equity lines of credit pool. ​ The following tables provide details of loans evaluated individually, segregated by category. With the adoption of CECL, the Company only evaluated loans with disparate risk characteristics on an individual basis. The unpaid contractual principal balance represents the customer outstanding balance excluding any partial charge-offs. Amortized cost represents customer balances net of any partial charge-offs recognized on the loan. Average amortized cost is calculated using the most recent four quarters (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2020
​ |  | Unpaid |  | Amortized |  |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​
​ | ​ | Contractual | ​ | Cost | ​ | Amortized | ​ | Total | ​ | ​ | ​ | ​ | Average
​ | ​ | Principal | ​ | with No | ​ | Cost | ​ | Amortized | ​ | Related | ​ | Amortized
​ |  | Balance |  | Allowance |  | with Allowance |  | Cost |  | Allowance |  | Cost
Commercial | ​ | $ | 16,771 | ​ | $ | 4,001 | ​ | $ | 4,371 | ​ | $ | 8,372 | ​ | $ | 1,600 | ​ | $ | 7,920
Commercial real estate | ​ |  | 7,406 | ​ | ​ | 6,067 | ​ | ​ | — | ​ |  | 6,067 | ​ |  | — | ​ |  | 9,349
Real estate construction | ​ |  | 292 | ​ |  | 292 | ​ |  | — | ​ |  | 292 | ​ |  | — | ​ |  | 581
Retail real estate | ​ |  | 5,873 | ​ |  | 5,490 | ​ |  | 25 | ​ |  | 5,515 | ​ |  | 25 | ​ |  | 7,439
Retail other | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | 10
Loans evaluated individually | ​ | $ | 30,342 | ​ | $ | 15,850 | ​ | $ | 4,396 | ​ | $ | 20,246 | ​ | $ | 1,625 | ​ | $ | 25,299
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2019
​ |  | Unpaid |  | Amortized |  |  | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | ​
​ | ​ | Contractual | ​ | Cost | ​ | Amortized | ​ | Total | ​ | ​ | ​ | ​ | Average
​ | ​ | Principal | ​ | with No | ​ | Cost | ​ | Amortized | ​ | Related | ​ | Amortized
​ |  | Balance |  | Allowance |  | with Allowance |  | Cost |  | Allowance |  | Cost
Commercial | ​ | $ | 14,415 | ​ | $ | 4,727 | ​ | $ | 5,026 | ​ | $ | 9,753 | ​ | $ | 3,330 | ​ | $ | 13,774
Commercial real estate | ​ |  | 14,487 | ​ | ​ | 9,883 | ​ | ​ | 2,039 | ​ |  | 11,922 | ​ |  | 1,049 | ​ |  | 16,678
Real estate construction | ​ |  | 1,116 | ​ |  | 974 | ​ |  | — | ​ |  | 974 | ​ |  | — | ​ |  | 873
Retail real estate | ​ |  | 15,581 | ​ |  | 13,898 | ​ |  | 474 | ​ |  | 14,372 | ​ |  | 474 | ​ |  | 14,003
Retail other | ​ |  | 87 | ​ |  | 58 | ​ |  | — | ​ |  | 58 | ​ |  | — | ​ |  | 42
Loans evaluated individually | ​ | $ | 45,686 | ​ | $ | 29,540 | ​ | $ | 7,539 | ​ | $ | 37,079 | ​ | $ | 4,853 | ​ | $ | 45,370
​ Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of underlying collateral, less estimated costs to sell. As of December 31, 2020, there were $14.8 million of collateral dependent loans which are secured by real estate or business assets. ​ Allowance for Credit Losses ​ Management estimates the allowance balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s historical loss experience beginning in 2010. As of December 31, 2020, the Company expects the markets in which it operates to experience continued economic uncertainty around the levels of delinquencies over the next 12 months. Management adjusted the historical loss experience for these expectations with an immediate reversion to historical loss rate beyond this forecast period. PPP loans were excluded from the allowance calculation as they are 100% government guaranteed. ​ The following table details activity in the allowance for credit losses. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Year Ended December 31, 2020
​ | ​ | ​ | ​ |  | Commercial |  | Real Estate |  | Retail Real | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Commercial |  | Real Estate |  | Construction |  | Estate |  | Retail Other |  | Total
Beginning balance, prior to adoption of ASC 326 | ​ | $ | 18,291 | ​ | $ | 21,190 | ​ | $ | 3,204 | ​ | $ | 10,495 | ​ | $ | 568 | ​ | $ | 53,748
Adoption of ASC 326 | ​ | ​ | 715 | ​ | ​ | 9,306 | ​ | ​ | 2,954 | ​ | ​ | 3,292 | ​ | ​ | 566 | ​ | ​ | 16,833
Provision for credit losses | ​ |  | 10,832 | ​ |  | 17,511 | ​ |  | 1,452 | ​ |  | 9,050 | ​ |  | (48) | ​ |  | 38,797
Charged-off | ​ |  | (6,376) | ​ |  | (1,972) | ​ |  | (18) | ​ | ​ | (2,057) | ​ |  | (665) | ​ |  | (11,088)
Recoveries | ​ |  | 404 | ​ |  | 195 | ​ |  | 601 | ​ |  | 1,212 | ​ |  | 346 | ​ |  | 2,758
Ending balance | ​ | $ | 23,866 | ​ | $ | 46,230 | ​ | $ | 8,193 | ​ | $ | 21,992 | ​ | $ | 767 | ​ | $ | 101,048
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Year Ended December 31, 2019
​ | ​ | ​ | ​ |  | Commercial |  | Real Estate |  | Retail Real | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Commercial |  | Real Estate |  | Construction |  | Estate |  | Retail Other |  | Total
Beginning balance | ​ | $ | 17,829 | ​ | $ | 21,137 | ​ | $ | 2,723 | ​ | $ | 8,471 | ​ | $ | 488 | ​ | $ | 50,648
Provision for credit losses | ​ |  | 4,893 | ​ |  | 3,002 | ​ |  | (70) | ​ |  | 2,102 | ​ |  | 479 | ​ |  | 10,406
Charged-off | ​ |  | (6,478) | ​ |  | (3,257) | ​ |  | — | ​ | ​ | (1,162) | ​ |  | (863) | ​ |  | (11,760)
Recoveries | ​ |  | 2,047 | ​ |  | 308 | ​ |  | 551 | ​ |  | 1,084 | ​ |  | 464 | ​ |  | 4,454
Ending balance | ​ | $ | 18,291 | ​ | $ | 21,190 | ​ | $ | 3,204 | ​ | $ | 10,495 | ​ | $ | 568 | ​ | $ | 53,748
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of and for the Year Ended December 31, 2018
​ | ​ | ​ | ​ |  | Commercial |  | Real Estate |  | Retail Real | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Commercial |  | Real Estate |  | Construction |  | Estate |  | Retail Other |  | Total
Beginning balance | ​ | $ | 14,779 | ​ | $ | 21,813 | ​ | $ | 2,861 | ​ | $ | 13,783 | ​ | $ | 346 | ​ | $ | 53,582
Provision for credit losses | ​ |  | 5,767 | ​ |  | 3,227 | ​ |  | (259) | ​ |  | (4,824) | ​ |  | 518 | ​ |  | 4,429
Charged-off | ​ |  | (3,968) | ​ |  | (4,352) | ​ |  | (97) | ​ | ​ | (1,815) | ​ |  | (712) | ​ |  | (10,944)
Recoveries | ​ |  | 1,251 | ​ |  | 449 | ​ |  | 218 | ​ |  | 1,327 | ​ |  | 336 | ​ |  | 3,581
Ending balance | ​ | $ | 17,829 | ​ | $ | 21,137 | ​ | $ | 2,723 | ​ | $ | 8,471 | ​ | $ | 488 | ​ | $ | 50,648
​ The following table presents the allowance and amortized cost of portfolio loans by category (dollars in thousands): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, 2020
​ | ​ | ​ | ​ |  | Commercial |  | Real Estate |  | Retail Real | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Commercial |  | Real Estate |  | Construction |  | Estate |  | Retail Other |  | Total
Allowance: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ending balance attributed to: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans individually evaluated for impairment | ​ | $ | 1,600 | ​ | $ | — | ​ | $ | — | ​ | $ | 25 | ​ | $ | — | ​ | $ | 1,625
Loans collectively evaluated for impairment | ​ |  | 22,266 | ​ |  | 46,230 | ​ |  | 8,193 | ​ |  | 21,967 | ​ |  | 767 | ​ |  | 99,423
Allowance, ending balance | ​ | $ | 23,866 | ​ | $ | 46,230 | ​ | $ | 8,193 | ​ | $ | 21,992 | ​ | $ | 767 | ​ | $ | 101,048
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans individually evaluated for impairment | ​ | $ | 8,372 | ​ | $ | 4,161 | ​ | $ | 292 | ​ | $ | 5,149 | ​ | $ | — | ​ | $ | 17,974
Loans collectively evaluated for impairment | ​ |  | 2,006,204 | ​ |  | 2,886,468 | ​ | ​ | 461,494 | ​ |  | 1,402,337 | ​ |  | 37,428 | ​ |  | 6,793,931
PCD loans evaluated for impairment | ​ | ​ | — | ​ | ​ | 1,906 | ​ | ​ | — | ​ | ​ | 366 | ​ | ​ | — | ​ | ​ | 2,272
Loans, ending balance | ​ | $ | 2,014,576 | ​ | $ | 2,892,535 | ​ | $ | 461,786 | ​ | $ | 1,407,852 | ​ | $ | 37,428 | ​ | $ | 6,814,177
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | As of December 31, 2019
​ | ​ | ​ | ​ |  | Commercial |  | Real Estate |  | Retail Real | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Commercial |  | Real Estate |  | Construction |  | Estate |  | Retail Other |  | Total
Allowance: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Ending balance attributed to: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans individually evaluated for impairment | ​ | $ | 3,330 | ​ | $ | 1,049 | ​ | $ | — | ​ | $ | 474 | ​ | $ | — | ​ | $ | 4,853
Loans collectively evaluated for impairment | ​ |  | 14,961 | ​ |  | 20,141 | ​ |  | 3,204 | ​ |  | 10,021 | ​ |  | 568 | ​ |  | 48,895
Allowance, ending balance | ​ | $ | 18,291 | ​ | $ | 21,190 | ​ | $ | 3,204 | ​ | $ | 10,495 | ​ | $ | 568 | ​ | $ | 53,748
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans individually evaluated for impairment | ​ | $ | 9,740 | ​ | $ | 10,018 | ​ | $ | 539 | ​ | $ | 13,676 | ​ | $ | 58 | ​ | $ | 34,031
Loans collectively evaluated for impairment | ​ |  | 1,738,615 | ​ |  | 2,781,495 | ​ | ​ | 400,887 | ​ |  | 1,679,397 | ​ |  | 49,776 | ​ |  | 6,650,170
PCI loans evaluated for impairment | ​ | ​ | 13 | ​ | ​ | 1,904 | ​ | ​ | 435 | ​ | ​ | 696 | ​ | ​ | — | ​ | ​ | 3,048
Loans, ending balance | ​ | $ | 1,748,368 | ​ | $ | 2,793,417 | ​ | $ | 401,861 | ​ | $ | 1,693,769 | ​ | $ | 49,834 | ​ | $ | 6,687,249
​

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