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Loans (Tables)
3 Months Ended
Mar. 31, 2023
Loans  
Loan Portfolio Composition Including Carrying Value by Segment of Originated and Acquired Loans Accounted for under ASC Topic 310-30 and Loans Covered by the FDIC Loss Sharing Agreements

The tables below show the loan portfolio composition including carrying value by segment as of the dates shown. The carrying value of loans is net of discounts, fees, costs and fair value marks of $37.5 million and $38.8 million as of March 31, 2023 and December 31, 2022, respectively.

March 31, 2023

Total loans

    

% of total

Commercial

$

4,228,950

57.6%

Commercial real estate non-owner occupied

 

1,824,524

24.8%

Residential real estate

 

1,271,798

17.3%

Consumer

 

20,026

0.3%

Total

$

7,345,298

100.0%

December 31, 2022

Total loans

    

% of total

Commercial

$

4,251,780

58.9%

Commercial real estate non-owner occupied

 

1,696,050

23.5%

Residential real estate

 

1,251,281

17.3%

Consumer

 

21,358

0.3%

Total

$

7,220,469

100.0%

Past Due Financing Receivables

Information about delinquent and non-accrual loans is shown in the following tables at March 31, 2023 and December 31, 2022:

March 31, 2023

Greater

30-89 days

than 90 days

Total past

past due and

past due and

Non-accrual

due and

accruing

accruing

loans

non-accrual

Current

Total loans

Commercial:

Commercial and industrial

$

1,224

$

$

1,631

$

2,855

$

1,987,928

$

1,990,783

Municipal and non-profit

980,117

980,117

Owner occupied commercial real estate

2,200

2,200

920,914

923,114

Food and agribusiness

75

141

620

836

334,100

334,936

Total commercial

1,299

141

4,451

5,891

4,223,059

4,228,950

Commercial real estate non-owner occupied:

Construction

 

 

 

 

 

341,197

 

341,197

Acquisition/development

 

 

 

 

 

123,696

 

123,696

Multifamily

 

 

 

 

 

270,532

 

270,532

Non-owner occupied

 

 

 

149

 

149

 

1,088,950

 

1,089,099

Total commercial real estate

 

 

 

149

 

149

 

1,824,375

 

1,824,524

Residential real estate:

 

 

 

 

 

 

Senior lien

633

30

4,268

4,931

1,176,742

1,181,673

Junior lien

 

342

10

605

957

89,168

90,125

Total residential real estate

 

975

40

4,873

5,888

1,265,910

1,271,798

Consumer

 

34

4

73

111

19,915

 

20,026

Total loans

$

2,308

$

185

$

9,546

$

12,039

$

7,333,259

$

7,345,298

March 31, 2023

Non-accrual loans

Non-accrual loans

with a related

with no related

allowance for

allowance for

Non-accrual

credit loss

credit loss

loans

Commercial:

Commercial and industrial

$

1,631

$

$

1,631

Municipal and non-profit

Owner occupied commercial real estate

781

1,419

2,200

Food and agribusiness

34

586

620

Total commercial

2,446

2,005

4,451

Commercial real estate non-owner occupied:

Construction

 

 

 

Acquisition/development

 

 

 

Multifamily

 

 

 

Non-owner occupied

 

149

 

 

149

Total commercial real estate

 

149

 

 

149

Residential real estate:

 

 

 

Senior lien

3,138

1,130

4,268

Junior lien

302

303

 

605

Total residential real estate

3,440

1,433

 

4,873

Consumer

 

66

 

7

 

73

Total loans

$

6,101

$

3,445

$

9,546

December 31, 2022

Greater

30-89 days

than 90 days

Total past

past due and

past due and

Non-accrual

due and

accruing

accruing

loans

non-accrual

Current

Total loans

Commercial:

Commercial and industrial

$

919

$

53

$

2,601

$

3,573

$

2,021,262

$

2,024,835

Municipal and non-profit

959,626

959,626

Owner occupied commercial real estate

 

6,551

6,551

906,789

 

913,340

Food and agribusiness

 

699

2,148

2,847

351,132

 

353,979

Total commercial

1,618

53

11,300

12,971

4,238,809

4,251,780

Commercial real estate non-owner occupied:

Construction

 

 

 

 

 

341,325

 

341,325

Acquisition/development

 

 

 

 

 

129,102

 

129,102

Multifamily

 

 

 

 

 

213,677

 

213,677

Non-owner occupied

 

629

 

 

685

 

1,314

 

1,010,632

 

1,011,946

Total commercial real estate

 

629

 

 

685

 

1,314

 

1,694,736

 

1,696,050

Residential real estate:

 

 

 

 

Senior lien

 

446

4,174

4,620

1,149,728

1,154,348

Junior lien

 

255

341

596

96,337

96,933

Total residential real estate

 

701

4,515

5,216

1,246,065

1,251,281

Consumer

 

38

42

12

92

21,266

21,358

Total loans

$

2,986

$

95

$

16,512

$

19,593

$

7,200,876

$

7,220,469

December 31, 2022

Non-accrual loans

Non-accrual loans

with a related

with no related

allowance for

allowance for

Non-accrual

credit loss

credit loss

loans

Commercial:

Commercial and industrial

$

1,640

$

961

$

2,601

Municipal and non-profit

Owner occupied commercial real estate

693

5,858

6,551

Food and agribusiness

455

1,693

2,148

Total commercial

2,788

8,512

11,300

Commercial real estate non-owner occupied:

Construction

 

 

 

Acquisition/development

 

 

 

Multifamily

 

 

 

Non-owner occupied

 

685

 

 

685

Total commercial real estate

 

685

 

 

685

Residential real estate:

 

 

 

Senior lien

3,019

1,155

4,174

Junior lien

341

 

341

Total residential real estate

3,360

1,155

 

4,515

Consumer

 

12

 

 

12

Total loans

$

6,845

$

9,667

$

16,512

Credit Exposure for Loans as Determined by Company's Internal Risk Rating System

The amortized cost basis and current period gross charge offs for all loans as determined by the Company’s internal risk rating system and year of origination is shown in the following table as of March 31, 2023:

March 31, 2023

Revolving

Revolving

loans

loans

Origination year

amortized

converted

2023

2022

2021

2020

2019

Prior

cost basis

to term

Total

Commercial:

Commercial and industrial:

Pass

$

69,538

$

467,029

$

341,901

$

113,152

$

91,494

$

149,917

$

711,784

$

4,261

$

1,949,076

Special mention

7,325

1,877

9,093

1,115

4,353

5,266

29,029

Substandard

32

36

1,264

210

10,843

2

50

12,437

Doubtful

241

241

Total commercial and industrial

69,538

474,386

343,814

123,750

92,819

165,113

717,052

4,311

1,990,783

Municipal and non-profit:

Pass

14,917

137,012

249,393

89,199

57,423

430,505

1,668

980,117

Total municipal and non-profit

14,917

137,012

249,393

89,199

57,423

430,505

1,668

980,117

Owner occupied commercial real estate:

Pass

19,585

276,224

201,657

94,484

88,505

185,546

17,457

2,575

886,033

Special mention

2,053

6,894

22,164

31,111

Substandard

1,761

1,952

885

629

5,227

Doubtful

69

674

743

Total owner occupied commercial real estate

19,585

276,224

205,471

96,436

96,353

209,013

17,457

2,575

923,114

Food and agribusiness:

Pass

11,556

38,482

22,437

24,318

10,923

46,699

143,594

40

298,049

Special mention

204

6,612

28,917

35,733

Substandard

586

12

306

904

Doubtful

250

250

Total food and agribusiness

11,556

38,482

23,227

24,568

10,935

53,617

172,511

40

334,936

Total commercial

115,596

926,104

821,905

333,953

257,530

858,248

908,688

6,926

4,228,950

Commercial real estate non-owner occupied:

Construction:

Pass

8,817

109,043

116,125

59,177

14,710

212

33,113

341,197

Total construction

8,817

109,043

116,125

59,177

14,710

212

33,113

341,197

Acquisition/development:

Pass

2,203

62,121

34,395

7,779

1,445

10,525

5,228

123,696

Total acquisition/development

2,203

62,121

34,395

7,779

1,445

10,525

5,228

123,696

Multifamily:

Pass

27,067

107,963

26,661

17,568

39,457

33,155

18,661

270,532

Total multifamily

27,067

107,963

26,661

17,568

39,457

33,155

18,661

270,532

Non-owner occupied

Pass

90,371

252,860

171,318

120,123

121,691

268,884

8,319

4,866

1,038,432

Special mention

7,275

3,999

29,351

40,625

Substandard

7,112

7,112

Doubtful

280

2,650

2,930

Total non-owner occupied

90,371

252,860

171,318

127,678

125,690

307,997

8,319

4,866

1,089,099

Total commercial real estate non-owner occupied

128,458

531,987

348,499

212,202

181,302

351,889

65,321

4,866

1,824,524

Residential real estate:

Senior lien

Pass

25,405

376,497

327,259

127,907

46,389

216,942

51,953

229

1,172,581

Special mention

387

387

Substandard

188

185

4,462

833

2,989

8,657

Doubtful

48

48

Total senior lien

25,405

376,685

327,444

132,369

47,222

220,366

51,953

229

1,181,673

Junior lien

Pass

1,261

4,981

2,055

3,085

2,572

5,790

68,406

832

88,982

Special mention

27

27

Substandard

95

251

258

303

907

Doubtful

209

209

Total junior lien

1,261

5,076

2,055

3,545

2,572

6,075

68,406

1,135

90,125

Total residential real estate

26,666

381,761

329,499

135,914

49,794

226,441

120,359

1,364

1,271,798

Consumer

Pass

3,492

5,858

3,403

1,851

479

649

4,175

47

19,954

Substandard

3

2

5

54

3

5

72

Total consumer

3,492

5,861

3,405

1,856

479

703

4,178

52

20,026

Gross charge-offs: Consumer

322

3

325

Total loans

$

274,212

$

1,845,713

$

1,503,308

$

683,925

$

489,105

$

1,437,281

$

1,098,546

$

13,208

$

7,345,298

Gross charge-offs: Total loans

322

3

325

The amortized cost basis for all loans as determined by the Company’s internal risk rating system and year of origination is shown in the following table as of December 31, 2022:

December 31, 2022

Revolving

Revolving

loans

loans

Origination year

amortized

converted

2022

2021

2020

2019

2018

Prior

cost basis

to term

Total

Commercial:

Commercial and industrial:

Pass

$

528,180

$

351,003

$

129,453

$

95,003

$

101,951

$

88,038

$

688,398

$

17,883

$

1,999,909

Special mention

66

137

388

2,887

588

4,440

3,512

12,018

Substandard

34

7

1,882

200

189

10,270

50

30

12,662

Doubtful

246

246

Total commercial and industrial

528,280

351,147

131,969

98,090

102,728

102,748

691,960

17,913

2,024,835

Municipal and non-profit:

Pass

105,630

246,696

89,562

59,066

73,013

383,158

2,501

959,626

Total municipal and non-profit

105,630

246,696

89,562

59,066

73,013

383,158

2,501

959,626

Owner occupied commercial real estate:

Pass

263,635

203,628

100,522

92,653

70,447

121,448

24,930

894

878,157

Special mention

515

6,956

2,616

17,360

27,447

Substandard

1,185

4,612

931

234

6,962

Doubtful

85

108

581

774

Total owner occupied commercial real estate

263,635

204,143

101,707

104,306

73,171

140,320

24,930

1,128

913,340

Food and agribusiness:

Pass

36,505

23,907

25,285

11,035

19,689

31,210

191,785

1,663

341,079

Special mention

204

4,573

3,486

195

1,750

10,208

Substandard

1,747

12

324

173

2,256

Doubtful

186

250

436

Total food and agribusiness

36,505

26,044

30,108

11,047

23,175

31,729

193,535

1,836

353,979

Total commercial

934,050

828,030

353,346

272,509

272,087

657,955

912,926

20,877

4,251,780

Commercial real estate non-owner occupied:

Construction:

Pass

106,197

139,012

56,489

14,387

213

25,027

341,325

Total construction

106,197

139,012

56,489

14,387

213

25,027

341,325

Acquisition/development:

Pass

57,773

33,663

7,810

1,921

3,939

16,648

7,348

129,102

Total acquisition/development

57,773

33,663

7,810

1,921

3,939

16,648

7,348

129,102

Multifamily:

Pass

99,988

22,022

17,658

39,547

17,358

16,009

1,095

213,677

Total multifamily

99,988

22,022

17,658

39,547

17,358

16,009

1,095

213,677

Non-owner occupied

Pass

235,958

172,648

120,871

138,711

42,489

249,461

11,707

971,845

Special mention

7,313

4,048

3,947

12,658

27,966

Substandard

629

7,912

8,541

Doubtful

280

3,314

3,594

Total non-owner occupied

235,958

172,648

128,464

142,759

47,065

273,345

11,707

1,011,946

Total commercial real estate non-owner occupied

499,916

367,345

210,421

198,614

68,362

306,215

45,177

1,696,050

Residential real estate:

Senior lien

Pass

361,405

323,984

133,847

47,557

30,283

184,998

66,792

496

1,149,362

Special mention

362

362

Substandard

191

186

468

854

105

2,769

4,573

Doubtful

51

51

Total senior lien

361,596

324,170

134,315

48,411

30,439

188,129

66,792

496

1,154,348

Junior lien

Pass

6,429

5,977

3,010

4,163

1,726

3,773

69,059

1,286

95,423

Special mention

351

351

Substandard

9

89

54

242

305

251

950

Doubtful

209

209

Total junior lien

6,438

5,977

3,099

4,163

1,780

4,366

69,364

1,746

96,933

Total residential real estate

368,034

330,147

137,414

52,574

32,219

192,495

136,156

2,242

1,251,281

Consumer:

Pass

8,576

4,816

2,209

607

282

531

4,292

33

21,346

Substandard

3

5

4

12

Total consumer

8,579

4,816

2,209

607

282

536

4,296

33

21,358

Total loans

$

1,810,579

$

1,530,338

$

703,390

$

524,304

$

372,950

$

1,157,201

$

1,098,555

$

23,152

$

7,220,469

Schedule of collateral dependent loans

March 31, 2023

Total amortized

Real property

Business assets

cost basis

Commercial

Commercial and industrial

$

2,181

$

32

$

2,213

Owner-occupied commercial real estate

2,658

150

2,808

Food and agribusiness

1,680

1,680

Total Commercial

6,519

182

6,701

Commercial real estate non owner-occupied

Non-owner occupied

 

6,519

 

 

6,519

Total commercial real estate

 

6,519

 

 

6,519

Residential real estate

 

 

 

Senior lien

 

5,585

 

 

5,585

Junior lien

 

763

 

 

763

Total residential real estate

 

6,348

 

 

6,348

Consumer

 

 

7

 

7

Total loans

$

19,386

$

189

$

19,575

December 31, 2022

Total amortized

Real property

Business assets

cost basis

Commercial

Commercial and industrial

$

2,869

$

791

$

3,660

Owner-occupied commercial real estate

6,711

1,346

8,057

Food and agribusiness

3,020

173

3,193

Total Commercial

12,600

2,310

14,910

Commercial real estate non owner-occupied

Non-owner occupied

 

8,561

 

 

8,561

Total commercial real estate

 

8,561

 

 

8,561

Residential real estate

 

 

 

Senior lien

 

2,806

 

 

2,806

Junior lien

 

460

 

 

460

Total residential real estate

 

3,266

 

 

3,266

Total loans

$

24,427

$

2,310

$

26,737

Schedule of Modified Loans to Borrowers Experiencing Financial Difficulty

March 31, 2023

Term extension

Payment delay

Amortized

% of loan

Amortized

% of loan

cost basis

class

cost basis

class

Commercial:

Commercial and industrial

$

0.0%

$

154

0.0%

Owner occupied commercial real estate

 

0.0%

 

116

0.0%

Total commercial

0.0%

270

0.0%

Residential real estate:

 

 

Senior lien

 

4,000

0.3%

 

0.0%

Total residential real estate

4,000

0.3%

0.0%

Total loans

$

4,000

0.1%

$

270

0.0%

Schedule of Payment Status of Financing Receivable Modified Past 12 Months

March 31, 2023

Current

Non-accrual

Commercial:

Commercial and industrial

$

154

$

Owner occupied commercial real estate

 

 

116

Total commercial

154

116

Residential real estate:

 

 

Senior lien

 

4,000

 

Total residential real estate

4,000

Total loans

$

4,154

$

116

Schedule of Financial Effect of Loan Restructuring Modifications

March 31, 2023

Financial effect

Term extension

Payment delay

Commercial:

Commercial and industrial

Delayed payments for a weighted average of 0.2 years

Owner occupied commercial real estate

Delayed payments for a weighted average of 0.5 years

Residential real estate:

Senior lien

Added weighted average 0.5 years to the life of loans, which reduced monthly payment amounts

Additional Information Related to Accruing TDR's

December 31, 2022

Amortized

Average year-to-date

Unpaid

Unfunded commitments

cost basis

amortized cost basis

principal balance

to fund TDRs

Commercial

$

2,160

$

2,348

$

2,150

$

150

Commercial real estate non-owner occupied

 

685

 

734

 

699

 

Residential real estate

 

1,809

 

1,867

 

1,964

 

Consumer

 

 

 

 

Total

$

4,654

$

4,949

$

4,813

$

150

Summary of Company's Carrying Value of Non-Accrual TDR's

December 31, 2022

Commercial

    

356

Commercial real estate non-owner occupied

81

Residential real estate

2,041

Consumer

Total non-accruing TDRs

2,478