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Loans and Leases and Allowance for Loan and Lease Losses (Tables)
12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of Loans

Major categories of loans and leases are summarized as follows (in thousands):

December 31, 2021

December 31, 2020

PCI

All Other

PCI

All Other

    

Loans and Leases1

    

Loans and Leases

    

Total

    

Loans and Leases1

    

Loans and Leases

    

Total

Commercial real estate

$

20,875

$

1,363,281

$

1,384,156

$

16,123

$

996,853

$

1,012,976

Consumer real estate

 

11,833

 

465,439

 

477,272

 

10,258

 

433,672

 

443,930

Construction and land development

 

2,882

 

275,504

 

278,386

 

5,348

 

272,727

 

278,075

Commercial and industrial

 

2,516

 

485,508

 

488,024

 

308

 

634,138

 

634,446

Leases

3,170

50,538

53,708

Consumer and other

 

71

 

11,780

 

11,851

 

27

 

12,789

 

12,816

Total loans and leases

 

41,347

 

2,652,050

 

2,693,397

 

32,064

 

2,350,179

 

2,382,243

Less: Allowance for loan and lease losses

 

(179)

 

(19,173)

 

(19,352)

 

(309)

 

(18,037)

 

(18,346)

Loans and leases, net

$

41,168

$

2,632,877

$

2,674,045

$

31,755

$

2,332,142

$

2,363,897

1 Purchased Credit Impaired loans and leases (“PCI loans and leases”) are loans and leases with evidence of credit deterioration at purchase.

Schedule of Impaired and Performing Loans Receivable

The composition of loans by loan and lease classification for impaired and performing loan and lease status is summarized in the tables below (in thousands):

Construction

Commercial

Commercial

Consumer

and Land

and

Consumer

Real Estate

Real Estate

Development

Industrial

Leases

and Other

Total

December 31, 2021:

    

    

    

    

    

    

Performing loans and leases

    

$

1,362,423

$

463,374

$

275,504

$

485,411

$

50,538

$

11,780

$

2,649,030

Impaired loans and leases

 

858

 

2,065

 

 

97

 

 

 

3,020

 

1,363,281

 

465,439

 

275,504

 

485,508

 

50,538

 

11,780

 

2,652,050

PCI loans and leases

 

20,875

 

11,833

 

2,882

 

2,516

 

3,170

 

71

 

41,347

Total loans and leases

$

1,384,156

$

477,272

$

278,386

$

488,024

$

53,708

$

11,851

$

2,693,397

December 31, 2020:

    

    

    

    

    

    

Performing loans and leases

    

$

992,982

$

432,356

$

272,727

$

633,992

$

$

12,789

$

2,344,846

Impaired loans and leases

 

3,871

 

1,316

 

 

146

 

 

 

5,333

 

996,853

 

433,672

 

272,727

 

634,138

 

 

12,789

 

2,350,179

PCI loans and leases

 

16,123

 

10,258

 

5,348

 

308

 

 

27

 

32,064

Total loans and leases

$

1,012,976

$

443,930

$

278,075

$

634,446

$

$

12,816

$

2,382,243

Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable

The following tables show the allowance for loan and lease losses allocation by loan classification for impaired, PCI, and performing loans (in thousands):

Construction

Commercial

Consumer

Commercial

Consumer

and Land

and

and

Real Estate

Real Estate

Development

Industrial

Leases

Other

Total

December 31, 2021:

Performing loans and leases

    

$

9,355

    

$

3,237

    

$

1,882

    

$

3,685

    

$

330

    

$

123

    

$

18,612

Impaired loans and leases

 

396

 

69

 

 

96

 

 

 

561

 

9,751

 

3,306

 

1,882

 

3,781

 

330

 

123

 

19,173

PCI loans and leases

 

30

 

148

 

 

 

 

1

 

179

Total loans and leases

$

9,781

$

3,454

$

1,882

$

3,781

$

330

$

124

$

19,352

December 31, 2020:

Performing loans and leases

    

$

7,579

    

$

3,267

    

$

2,076

    

$

4,768

$

    

$

110

    

$

17,800

Impaired loans and leases

 

 

116

 

 

121

 

 

 

237

 

7,579

 

3,383

 

2,076

 

4,889

 

 

110

 

18,037

PCI loans and leases

 

 

88

 

 

218

 

 

3

 

309

Total loans and leases

$

7,579

$

3,471

$

2,076

$

5,107

$

$

113

$

18,346

Schedule of Allowance for Loan Losses

The following tables detail the changes in the allowance for loan and lease losses by loan classification (in thousands):

Year Ended December 31, 2021

Consumer

Construction

Commercial

Commercial

Real

and Land

and

Consumer

Real Estate

Estate

 

Development

Industrial

Leases

and Other

Total

Beginning balance

    

$

7,579

    

$

3,471

    

$

2,076

    

$

5,107

    

$

    

$

113

    

$

18,346

Charged-off loans and leases

 

 

(67)

 

 

(298)

 

(166)

 

(482)

 

(1,013)

Recoveries of charge-offs

 

83

 

39

 

 

25

 

41

 

198

 

386

Provision charged to expense

 

2,119

 

11

 

(194)

 

(1,053)

 

455

 

295

 

1,633

Ending balance

$

9,781

$

3,454

$

1,882

$

3,781

$

330

$

124

$

19,352

Year Ended December 31, 2020

Consumer

Construction

Commercial

Commercial

Real

and Land

and

Consumer

Real Estate

Estate

 

Development

Industrial

Leases

and Other

Total

Beginning balance

    

$

4,508

    

$

2,576

    

$

1,127

    

$

1,957

    

$

    

$

75

    

$

10,243

Charged-off loans and leases

 

 

(23)

 

 

(420)

 

 

(398)

 

(841)

Recoveries of charge-offs

 

19

 

39

 

2

 

114

 

 

87

 

261

Provision charged to expense

 

3,052

 

879

 

947

 

3,456

 

 

349

 

8,683

Ending balance

$

7,579

$

3,471

$

2,076

$

5,107

$

$

113

$

18,346

Loan Credit Quality Indicators

The following tables outline the amount of each loan and lease classification and the amount categorized into each risk rating (in thousands):

December 31, 2021

Construction

Commercial

Commercial

Consumer

and Land

and

Consumer

Non PCI Loans and Leases:

Real Estate

Real Estate

 

Development

Industrial

Leases

and Other

Total

Pass

    

$

1,330,888

    

$

460,190

    

$

275,124

    

$

480,677

    

$

50,538

    

$

11,724

    

$

2,609,141

Watch

 

27,246

 

1,334

 

237

 

4,345

 

 

42

 

33,204

Special mention

 

4,120

 

1,525

 

70

 

228

 

 

 

5,943

Substandard

 

1,027

 

2,390

 

73

 

213

 

 

14

 

3,717

Doubtful

 

 

 

 

45

 

 

 

45

Total

1,363,281

465,439

275,504

485,508

50,538

11,780

2,652,050

PCI Loans and Leases:

Pass

    

16,019

    

9,714

    

2,335

    

2,516

    

3,170

    

71

    

33,825

Watch

 

1,271

 

539

 

91

 

 

 

 

1,901

Special mention

 

15

 

68

 

 

 

 

 

83

Substandard

 

3,570

 

1,512

 

456

 

 

 

 

5,538

Doubtful

 

 

 

 

 

 

 

Total

20,875

11,833

2,882

2,516

3,170

71

41,347

Total loans and leases

$

1,384,156

$

477,272

$

278,386

$

488,024

$

53,708

$

11,851

$

2,693,397

December 31, 2020

Construction

Commercial

Commercial

Consumer

and Land

and

Consumer

Non PCI Loans and Leases:

Real Estate

Real Estate

 

Development

Industrial

Leases

and Other

Total

Pass

    

$

922,153

    

$

417,302

    

$

269,350

    

$

625,836

    

$

    

$

12,622

    

$

2,247,263

Watch

 

66,287

 

14,218

 

3,296

 

7,673

 

 

137

 

91,611

Special mention

 

4,446

 

46

 

 

320

 

 

 

4,812

Substandard

 

3,967

 

2,020

 

81

 

261

 

 

30

 

6,359

Doubtful

 

 

86

 

 

48

 

 

 

134

Total

996,853

433,672

272,727

634,138

12,789

2,350,179

PCI Loans and Leases:

Pass

    

11,072

    

8,382

    

1,008

    

262

    

    

25

    

20,749

Watch

 

3,381

 

224

 

3,820

 

 

 

2

 

7,427

Special mention

 

19

 

57

 

 

 

 

 

76

Substandard

 

1,651

 

1,595

 

520

 

46

 

 

 

3,812

Doubtful

 

 

 

 

 

 

 

Total

16,123

10,258

5,348

308

27

32,064

Total loans and leases

$

1,012,976

$

443,930

$

278,075

$

634,446

$

$

12,816

$

2,382,243

Past Due Loans and Leases

The following tables present an aging analysis of our loan and lease portfolio (in thousands):

December 31, 2021

    

30-60 Days

    

61-89 Days

    

Past Due 90

    

    

Total

    

    

    

 

Past Due and

 

Past Due and

 

Days or More

 

Past Due and

 

 

 

 

Accruing

 

Accruing

 

and Accruing

Nonaccrual

Nonaccrual

PCI

Current

Total

Commercial real estate

$

172

$

$

$

858

$

1,030

$

20,875

$

1,362,251

$

1,384,156

Consumer real estate

 

884

 

10

 

 

2,139

 

3,033

 

11,833

 

462,406

 

477,272

Construction and land development

 

91

 

 

 

 

91

 

2,882

 

275,413

 

278,386

Commercial and industrial

 

1,191

 

119

 

45

 

116

 

1,471

 

2,516

 

484,037

 

488,024

Leases

361

361

3,170

50,177

53,708

Consumer and other

 

99

 

4

 

19

 

11

 

133

 

71

 

11,647

 

11,851

Total

$

2,798

$

133

$

64

$

3,124

$

6,119

$

41,347

$

2,645,931

$

2,693,397

December 31, 2020

    

30-60 Days

    

61-89 Days

    

Past Due 90

    

    

Total

    

    

    

 

Past Due and

 

Past Due and

 

Days or More

 

Past Due and

 

 

 

 

Accruing

 

Accruing

 

and Accruing

Nonaccrual

Nonaccrual

PCI

Current

Total

Commercial real estate

$

134

$

$

67

$

3,740

$

3,941

$

16,123

$

992,912

$

1,012,976

Consumer real estate

 

1,916

 

51

 

82

 

1,823

 

3,872

 

10,258

 

429,800

 

443,930

Construction and land development

 

245

 

 

 

12

 

257

 

5,348

 

272,470

 

278,075

Commercial and industrial

 

12

 

76

 

 

36

 

124

 

308

 

634,014

 

634,446

Leases

Consumer and other

 

14

 

5

 

 

22

 

41

 

27

 

12,748

 

12,816

Total

$

2,321

$

132

$

149

$

5,633

$

8,235

$

32,064

$

2,341,944

$

2,382,243

Impaired Loans

The following is an analysis of the impaired loan and lease portfolio, including PCI loans and leases, detailing the related allowance recorded (in thousands):

 

December 31, 2021

 

December 31, 2020

 

 

Unpaid

 

 

 

Unpaid

 

 

Recorded

 

Principal

 

Related

 

Recorded

 

Principal

 

Related

Investment

 

Balance

Allowance

Investment

 

Balance

Allowance

Impaired loans and leases without a valuation allowance:

    

  

    

  

    

  

    

  

    

  

    

  

Commercial real estate

$

$

$

$

3,871

$

3,872

$

Consumer real estate

 

1,805

 

1,806

 

 

888

 

888

 

Construction and land development

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

Leases

Consumer and other

 

 

 

 

 

 

 

1,805

 

1,806

 

 

4,759

 

4,760

 

Impaired loans and leases with a valuation allowance:

 

  

 

  

 

  

 

  

 

  

 

  

Commercial real estate

 

858

 

859

 

396

 

 

 

Consumer real estate

 

260

 

262

 

69

 

428

 

428

 

116

Construction and land development

 

 

 

 

 

 

Commercial and industrial

 

97

 

96

 

96

 

146

 

146

 

121

Leases

Consumer and other

 

 

 

 

 

 

 

1,215

 

1,217

 

561

 

574

 

574

 

237

PCI loans and leases:  

 

  

 

  

 

  

 

  

 

  

 

  

Commercial real estate

 

707

 

926

 

30

 

 

 

Consumer real estate

 

1,129

 

1,251

 

148

 

1,827

 

2,086

 

88

Construction and land development

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

270

 

234

 

218

Leases

Consumer and other

 

5

 

3

 

1

 

21

 

20

 

3

 

1,841

 

2,180

 

179

 

2,118

 

2,340

 

309

Total impaired loans and leases

$

4,861

$

5,203

$

740

$

7,451

$

7,674

$

546

 

Year Ended December 31, 

2021

2020

    

Average

    

Interest

    

Average

    

Interest

 

Recorded

 

Income

 

Recorded

 

Income

Investment

Recognized

 

Investment

 

Recognized

Impaired loans and leases without a valuation allowance:

 

  

 

  

 

  

 

  

Commercial real estate

$

800

$

1

$

1,073

$

12

Consumer real estate

 

1,783

 

78

 

701

 

33

Construction and land development

 

 

 

231

 

Commercial and industrial

 

 

 

 

Leases

Consumer and other

 

 

 

 

 

2,583

 

79

 

2,005

 

45

Impaired loans and leases with a valuation allowance:

 

  

 

  

 

 

  

Commercial real estate

 

1,145

 

104

 

158

 

2

Consumer real estate

 

334

 

14

 

656

 

24

Construction and land development

 

 

 

 

Commercial and industrial

 

132

 

8

 

244

 

8

Leases

Consumer and other

 

 

 

 

 

1,611

 

126

 

1,058

 

34

PCI loans and leases:  

 

  

 

  

 

  

 

  

Commercial real estate

 

488

 

42

 

200

 

1

Consumer real estate

 

1,140

 

83

 

1,461

 

117

Construction and land development

 

 

 

46

 

Commercial and industrial

 

197

 

3

 

321

 

7

Leases

Consumer and other

 

13

 

 

27

 

 

1,838

 

128

 

2,055

 

125

Total impaired loans and leases

$

6,032

$

333

$

5,118

$

204

Troubled Debt Restructurings on Loans

The following table presents a summary of loans that were modified as troubled debt restructurings at December 31, 2021 (dollars in thousands):

    

    

Pre-Modification

    

Post-Modification

 

Outstanding

 

Outstanding

 

Recorded

 

Recorded

December 31, 2021

Number of Contracts

 

Investment

 

Investment

Consumer real estate

1

$

104

$

104

Commercial and industrial

2

96

96

Consumer and other

1

6

6

 

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Acquired During Period Carrying Amount Of Loans

The Company has acquired loans and leases which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans and leases for the years ended December 31, are as follows (in thousands):

    

2021

    

2020

Commercial real estate

$

31,600

$

23,787

Consumer real estate

 

14,215

 

12,692

Construction and land development

 

3,699

 

1,812

Commercial and industrial

 

3,424

 

6,521

Leases

3,557

Consumer and other

 

125

 

161

Total loans and leases

 

56,620

 

44,973

Less: Remaining purchase discount

 

(15,273)

 

(12,909)

Total loans and leases, net of purchase discount

 

41,347

 

32,064

Less: Allowance for loan and leases losses

 

(179)

 

(309)

Carrying amount, net of allowance

$

41,168

$

31,755

Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement

The following is a summary of the accretable yield on acquired loans and leases for the years ended December 31, (in thousands):

    

2021

    

2020

Accretable yield, beginning of period

$

16,889

$

8,454

Additions

 

4,202

 

2,515

Accretion income

 

(6,306)

 

(5,347)

Reclassification

 

2,214

 

2,792

Other changes, net

 

(2,381)

 

8,475

Accretable yield, end of period

$

14,618

$

16,889

Schedule of Loan to Directors, Officers and Affiliated Parties A summary of activity in loans to related parties is as follows (in thousands):

    

2021

    

2020

Balance, beginning of year

$

14,459

$

24,091

Disbursements

 

1,306

 

7,108

Repayments

 

(1,795)

 

(16,740)

Balance, end of year

$

13,970

$

14,459