Loans and Allowance for Credit Losses

Schedule of detail activity in the allowance for credit losses by portfolio segment

The following tables detail activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2019 and 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


			Income Producing -		Owner Occupied -		Real Estate		Construction -
			Commercial		Commercial		Mortgage -		Commercial and		Home		Other
(dollars in thousands)	Commercial		Real Estate		Real Estate		Residential		Residential		Equity		Consumer		Total
Year Ended December 31, 2019
Allowance for credit losses:
Balance at beginning of period	$	15,857	$	28,034	$	6,242	$	965	$	18,175	$	599	$	72	$	69,944
Loans charged-off		(4,868)		(1,847)		—		—		(3,496)		—		(8)		(10,219)
Recoveries of loans previously charged-off		405		26		3		3		354		—		51		842
Net loans charged-off		(4,463)		(1,821)		3		3		(3,142)		—		43		(9,377)
Provision for credit losses		7,438		3,052		(407)		589		2,452		57		(90)		13,091
Ending balance	$	18,832	$	29,265	$	5,838	$	1,557	$	17,485	$	656	$	25	$	73,658
For the Year Ended December 31, 2019
Allowance for credit losses:
Individually evaluated for impairment	$	5,714	$	2,145	$	415	$	650	$	100	$	100	$	—	$	9,124
Collectively evaluated for impairment		13,118		27,120		5,423		907		17,385		556		25		64,534
Ending balance	$	18,832	$	29,265	$	5,838	$	1,557	$	17,485	$	656	$	25	$	73,658

Year Ended December 31, 2018
Allowance for credit losses:
Balance at beginning of period	$	13,102	$	25,376	$	5,934	$	944	$	18,492	$	770	$	140	$	64,758
Loans charged-off		(3,491)		(121)		(132)		—		(1,160)		—		(81)		(4,985)
Recoveries of loans previously charged-off		340		2		3		6		1,009		133		18		1,511
Net loans (charged-off) recoveries		(3,151)		(119)		(129)		6		(151)		133		(63)		(3,474)
Provision for credit losses		5,906		2,777		437		15		(166)		(304)		(5)		8,660
Ending balance	$	15,857	$	28,034	$	6,242	$	965	$	18,175	$	599	$	72	$	69,944
For the Year Ended December 31, 2018
Allowance for credit losses:
Individually evaluated for impairment	$	4,803	$	2,465	$	600	$	—	$	1,050	$	—	$	—	$	8,918
Collectively evaluated for impairment		11,054		25,569		5,642		965		17,125		599		72		61,026
Ending balance	$	15,857	$	28,034	$	6,242	$	965	$	18,175	$	599	$	72	$	69,944

Schedule of loans by class and credit quality indicators


											Total
(dollars in thousands)	Pass		Watch		Special Mention		Substandard		Doubtful		Loans
December 31, 2019
Commercial	$	1,470,636	$	38,522	$	11,460	$	25,288	$	—	$	1,545,906
Income producing - commercial real estate		3,667,585		16,069		—		19,093		—		3,702,747
Owner occupied - commercial real estate		925,800		53,146		—		6,463		—		985,409
Real estate mortgage - residential		98,228		628		—		5,365		—		104,221
Construction - commercial and residential		1,113,734		—		—		11,510		—		1,125,244
Home equity		78,626		948		—		487		—		80,061
Other consumer		2,160		—		—		—		—		2,160
Total	$	7,356,769	$	109,313	$	11,460	$	68,206	$	—	$	7,545,748
December 31, 2018
Commercial	$	1,505,477	$	25,584	$	—	$	22,051	$	—	$	1,553,112
Income producing - commercial real estate		3,172,479		1,536		—		82,885		—		3,256,900
Owner occupied - commercial real estate		844,286		38,221		—		5,307		—		887,814
Real estate mortgage - residential		104,543		647		—		1,228		—		106,418
Construction - commercial and residential		1,090,600		—		—		7,012		—		1,097,612
Home equity		85,434		682		—		487		—		86,603
Other consumer		2,988		—		—		—		—		2,988
Total	$	6,805,807	$	66,670	$	—	$	118,970	$	—	$	6,991,447

Schedule by class of loan, an aging analysis and the recorded investments in loans past due

The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of December 31, 2019 and 2018.


	Loans		Loans		Loans						Total Recorded
	30-59 Days		60-89 Days		90 Days or		Total Past		Current		Investment in
(dollars in thousands)	Past Due		Past Due		More Past Due		Due Loans		Loans		Loans
December 31, 2019
Commercial	$	3,063	$	781	$	14,928	$	18,772	$	1,527,134	$	1,545,906
Income producing - commercial real estate		—		5,542		9,711		15,253		3,687,494		3,702,747
Owner occupied - commercial real estate		13,008		—		6,463		19,471		965,938		985,409
Real estate mortgage – residential		3,533		—		5,631		9,164		95,057		104,221
Construction - commercial and residential		—		—		11,509		11,509		1,113,735		1,125,244
Home equity		136		192		487		815		79,246		80,061
Other consumer		—		9		—		9		2,151		2,160
Total	$	19,740	$	6,524	$	48,729	$	74,993	$	7,470,755	$	7,545,748
December 31, 2018
Commercial	$	4,535	$	2,870	$	7,115	$	14,520	$	1,538,592	$	1,553,112
Income producing - commercial real estate		5,855		27,479		1,766		35,100		3,221,800		3,256,900
Owner occupied - commercial real estate		5,051		2,370		2,368		9,789		878,025		887,814
Real estate mortgage – residential		2,456		1,698		1,510		5,664		100,754		106,418
Construction - commercial and residential		4,392		—		3,031		7,423		1,090,189		1,097,612
Home equity		630		47		487		1,164		85,439		86,603
Other consumer		—		—		—		—		2,988		2,988
Total	$	22,919	$	34,464	$	16,277	$	73,660	$	6,917,787	$	6,991,447

Schedule of loans modified in troubled debt restructurings

The following table presents, by class, the recorded investment of loans modified in TDRs held by the Company during the years ended December 31, 2019 and 2018.


	For the Year Ended December 31, 2019
					Income		Owner
	Number				Producing -		Occupied -		Construction -
	of				Commercial		Commercial		Commercial
(dollars in thousands)	Contracts		Commercial		Real Estate		Real Estate		Real Estate		Total
Troubled debt restructurings
Restructured accruing		7	$	885	$	14,806	$	887	$	—	$	16,578
Restructured nonaccruing		2		142		—		2,370		—		2,512
Total		9	$	1,027	$	14,806	$	3,257	$	—	$	19,090

Specific allowance			$	—	$	1,000	$	—	$	—	$	1,000

Restructured and subsequently defaulted			$	—	$	7,115	$	2,370	$	—	$	9,485


	For the Year Ended December 31, 2018
					Income		Owner
	Number				Producing -		Occupied -		Construction -
	of				Commercial		Commercial		Commercial
(dollars in thousands)	Contracts		Commercial		Real Estate		Real Estate		Real Estate		Total
Troubled debt restructings
Restructured accruing		9	$	1,026	$	19,636	$	3,363	$	—	$	24,025
Restructured nonaccruing		3		544		—		—		—		544
Total		12	$	1,570	$	19,636	$	3,363	$	—	$	24,569

Specific allowance			$	—	$	3,000	$	—	$	—	$	3,000

Restructured and subsequently defaulted			$	408	$	937	$	—	$	—	$	1,345

Schedule of activity in related party loans

The following table summarizes changes in amounts of loans outstanding, both direct and indirect, to those persons during 2019 and 2018.


(dollars in thousands)	2019		2018
Balance at January 1,	$	167,884	$	238,236
Additions		30,153		55,657
Repayments		(38,204)		(126,009)
Additions due to Changes in Related Parties		9,034		—
Deletions due to Changes in Related Parties		(116,499)		—
Balance at December 31,	$	52,368	$	167,884