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LOANS AND CREDIT QUALITY
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
LOANS AND CREDIT QUALITY
3. LOANS AND CREDIT QUALITY

The following table presents loans by class, excluding loans held for sale, net of deferred fees and costs as of the dates presented:

(dollars in thousands)March 31, 2025December 31, 2024
Commercial and industrial$634,620 $606,936 
Real estate:
Construction160,092 145,211 
Residential mortgage1,870,239 1,892,520 
Home equity655,237 676,982 
Commercial mortgage1,552,439 1,500,680 
Consumer461,920 510,523 
Loans, net of deferred fees and costs$5,334,547 $5,332,852 

Interest income on loans is accrued at the contractual rate of interest on the unpaid principal balance. Accrued interest receivable on loans totaled $17.9 million and $17.5 million as of March 31, 2025 and December 31, 2024, respectively, and was reported together with accrued interest receivable on investment securities and other assets on the consolidated balance sheets. Accrued interest receivable on loans is excluded from the estimate of credit losses.

During the three months ended March 31, 2025, the Company identified and reclassified $58.3 million in consumer loans to the commercial and industrial loan category as the loans' structure and characteristics more closely aligned with loans in the commercial and industrial category.

The Company did not transfer any other loans to the held for sale category during the three months ended March 31, 2025 and 2024 and did not sell any loans originally held for investment during the three months ended March 31, 2025 and 2024.
The following tables present the loan purchase information at the time of purchase by class during the periods presented. None of these loan purchases were categorized as purchased credit deteriorated ("PCD") and there were no loans categorized as PCD during the periods presented. There were no loan purchases made during the three months ended March 31, 2024.

Three Months Ended March 31, 2025
(dollars in thousands)U.S. Mainland Consumer - UnsecuredU.S. Mainland Consumer - AutomobileTotal
Purchases:
Outstanding balance$— $31,440 $31,440 
Premium— 236 236 
Purchase price$— $31,676 $31,676 
Foreclosure Proceedings

The Company did not own any foreclosed properties as of March 31, 2025 and December 31, 2024. The Company did not sell any foreclosed properties during the three months ended March 31, 2025 and 2024.

The Company had $2.6 million and $3.9 million of residential mortgage loans collateralized by residential real estate properties that were in the process of foreclosure as of March 31, 2025 and December 31, 2024, respectively.

The Company did not have any commercial real estate loans in the process of foreclosure as of March 31, 2025 and December 31, 2024.
Nonaccrual and Past Due Loans

For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following tables present by class, the aging of the recorded investment in past
due loans as of the dates presented. The following tables also present the amortized cost of loans on nonaccrual status for which there was no related ACL as of the dates presented:

(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
90+ Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans Not
Past Due		Total LoansNonaccrual
Loans
With
No ACL
March 31, 2025       
Commercial and industrial$2,722 $80 $— $531 $3,333 $631,287 $634,620 $— 
Real estate:  
Construction— — — — — 160,092 160,092 — 
Residential mortgage7,335 6,163 — 9,199 22,697 1,847,542 1,870,239 9,199 
Home equity749 676 87 746 2,258 652,979 655,237 746 
Commercial mortgage— 556 — — 556 1,551,883 1,552,439 — 
Consumer3,599 997 670 609 5,875 456,045 461,920 — 
Total$14,405 $8,472 $757 $11,085 $34,719 $5,299,828 $5,334,547 $9,945 

(dollars in thousands)Accruing
Loans
30 - 59 Days
Past Due		Accruing
Loans
60 - 89 Days
Past Due		Accruing
Loans
90+ Days
Past Due		Nonaccrual
Loans		Total
Past Due
and
Nonaccrual		Loans Not
Past Due		Total LoansNonaccrual
Loans
With
No ACL
December 31, 2024       
Commercial and industrial$2,978 $210 $— $414 $3,602 $603,334 $606,936 $— 
Real estate:  
Construction— — — — — 145,211 145,211 — 
Residential mortgage8,880 3,316 323 9,044 21,563 1,870,957 1,892,520 9,044 
Home equity943 485 78 952 2,458 674,524 676,982 952 
Commercial mortgage— — — — — 1,500,680 1,500,680 — 
Consumer5,255 1,444 373 608 7,680 502,843 510,523 — 
Total$18,056 $5,455 $774 $11,018 $35,303 $5,297,549 $5,332,852 $9,996 
Collateral-Dependent Loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral, which are individually evaluated to determine expected credit losses. The following tables present the amortized cost basis of collateral-dependent loans by class and the related ACL allocated to these loans as of the dates presented:

(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Allocated
ACL
March 31, 2025
Real estate:
Residential mortgage$9,199 $— 
Home equity746 — 
Total$9,945 $— 
(dollars in thousands)Secured by
1-4 Family
Residential
Properties		Secured by
Nonfarm
Nonresidential
Properties		TotalAllocated
ACL
December 31, 2024
Real estate:
Residential mortgage$9,044 $— $9,044 $— 
Home equity952 — 952 — 
Total$9,996 $— $9,996 $— 
Loan Modifications for Borrowers Experiencing Financial Difficulty

Since the adoption of ASU 2022-02 on January 1, 2023 and during the three months ended March 31, 2025, the Company has not had any material modifications to loans either individually or in the aggregate for borrowers experiencing financial difficulty.
Credit Quality Indicators

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, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans by credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk rating of loans.

Pass. Loans classified as pass are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement.

Special Mention. Loans classified as special mention, while still adequately protected by the borrower's capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management's close attention so as to avoid becoming undue or unwarranted credit exposures.

Substandard. Loans classified as substandard are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. These loans have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimate loss is deferred until its more exact status may be determined.

Loss. Loans classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible.
The following tables present the amortized cost basis, net of deferred fees and costs, of the Company's loans by class, credit quality indicator and origination year as of the dates presented. Revolving loans converted to term as of and during the periods presented were not material to the total loan portfolio. In addition, the following tables present gross charge-offs of loans by origination year during the periods presented.

(dollars in thousands)Amortized Cost of Term Loans by Year of OriginationAmortized Cost of Revolving Loans
March 31, 202520252024202320222021PriorTotal
Commercial and industrial:
Risk Rating
Pass$16,247 $191,912 $47,166 $65,690 $54,737 $151,939 $100,222 $627,913 
Special Mention— — 561 — 1,449 100 — 2,110 
Substandard— 3,428 50 720 41 258 100 4,597 
Subtotal16,247 195,340 47,777 66,410 56,227 152,297 100,322 634,620 
Construction:
Risk Rating
Pass— 12,926 43,513 38,253 19,147 46,253 — 160,092 
Subtotal— 12,926 43,513 38,253 19,147 46,253 — 160,092 
Residential mortgage:
Risk Rating
Pass7,667 83,254 88,003 257,730 583,222 840,276 — 1,860,152 
Substandard— — 259 1,599 281 7,948 — 10,087 
Subtotal7,667 83,254 88,262 259,329 583,503 848,224 — 1,870,239 
Home equity:
Risk Rating
Pass61 1,044 11,689 29,036 17,332 32,827 562,415 654,404 
Substandard— — — — — 583 250 833 
Subtotal61 1,044 11,689 29,036 17,332 33,410 562,665 655,237 
Commercial mortgage:
Risk Rating
Pass58,254 190,823 95,093 216,794 219,492 740,588 6,471 1,527,515 
Special Mention— — 620 — 2,483 1,764 — 4,867 
Substandard— — — 12,671 — 7,386 — 20,057 
Subtotal58,254 190,823 95,713 229,465 221,975 749,738 6,471 1,552,439 
Consumer:
Risk Rating
Pass22,362 67,603 65,400 156,630 83,662 30,312 34,672 460,641 
Substandard— 100 66 216 85 798 — 1,265 
Loss— — — — — 14 — 14 
Subtotal22,362 67,703 65,466 156,846 83,747 31,124 34,672 461,920 
Total$104,591 $551,090 $352,420 $779,339 $981,931 $1,861,046 $704,130 $5,334,547 
(dollars in thousands)Amortized Cost of Term Loans by Year of OriginationAmortized Cost of Revolving Loans
December 31, 202420242023202220212020PriorTotal
Commercial and industrial:
Risk Rating
Pass$167,816 $58,905 $69,576 $57,354 $21,827 $142,546 $81,876 $599,900 
Special Mention— — — 2,539 — — — 2,539 
Substandard3,372 110 922 11 — 82 — 4,497 
Subtotal171,188 59,015 70,498 59,904 21,827 142,628 81,876 606,936 
Construction:
Risk Rating
Pass10,141 33,646 35,398 19,217 11,754 34,937 118 145,211 
Subtotal10,141 33,646 35,398 19,217 11,754 34,937 118 145,211 
Residential mortgage:
Risk Rating
Pass85,844 89,118 259,516 589,118 393,633 465,032 — 1,882,261 
Substandard— — 1,599 616 1,855 6,189 — 10,259 
Subtotal85,844 89,118 261,115 589,734 395,488 471,221 — 1,892,520 
Home equity:
Risk Rating
Pass1,060 11,787 28,687 18,277 8,406 25,235 582,499 675,951 
Substandard— — — — — 1,031 — 1,031 
Subtotal1,060 11,787 28,687 18,277 8,406 26,266 582,499 676,982 
Commercial mortgage:
Risk Rating
Pass180,391 95,323 235,344 223,724 111,399 635,255 5,731 1,487,167 
Special Mention— 621 — 2,506 — 2,930 — 6,057 
Substandard— — — — — 7,456 — 7,456 
Subtotal180,391 95,944 235,344 226,230 111,399 645,641 5,731 1,500,680 
Consumer:
Risk Rating
Pass95,971 60,771 173,097 92,976 20,838 14,466 51,422 509,541 
Substandard21 90 162 144 27 478 60 982 
Subtotal95,992 60,861 173,259 93,120 20,865 14,944 51,482 510,523 
Total$544,616 $350,371 $804,301 $1,006,482 $569,739 $1,335,637 $721,706 $5,332,852 

(dollars in thousands)Gross Charge-Offs by Year of Origination
Three Months Ended March 31, 202520252024202320222021PriorTotal
Commercial and industrial$— $34 $93 $147 $82 $224 $580 
Consumer— 212 192 1,605 633 335 2,977 
Gross charge-offs$— $246 $285 $1,752 $715 $559 $3,557 

(dollars in thousands)Gross Charge-Offs by Year of Origination
Three Months Ended March 31, 202420242023202220212020PriorTotal
Commercial and industrial$— $9 $171 $78 $13 $411 $682 
Consumer— 182 2,743 1,216 165 532 4,838 
Gross charge-offs$— $191 $2,914 $1,294 $178 $943 $5,520