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Loans and Allowance for Credit Losses (Tables) | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
Schedule of loans, net of unamortized net deferred fees | Loans, net of unamortized net deferred fees, at December 31, 2022 and 2021 are summarized by type as follows:
|  | December 31, 2022 |  | December 31, 2021
(dollars in thousands) |  | Amount |  | % |  | Amount |  | %
Commercial |  | $ | 1,487,349 |  |  | 19 | % |  | $ | 1,354,317 |  |  | 19 | %
PPP loans |  | 3,256 |  |  | — | % |  | 51,105 |  |  | 1 | %
Income producing - commercial real estate |  | 3,919,941 |  |  | 51 | % |  | 3,385,298 |  |  | 48 | %
Owner occupied - commercial real estate |  | 1,110,325 |  |  | 15 | % |  | 1,087,776 |  |  | 15 | %
Real estate mortgage - residential |  | 73,001 |  |  | 1 | % |  | 73,966 |  |  | 1 | %
Construction - commercial and residential |  | 877,755 |  |  | 12 | % |  | 896,319 |  |  | 13 | %
Construction - C&I (owner occupied) |  | 110,479 |  |  | 1 | % |  | 159,579 |  |  | 2 | %
Home equity |  | 51,782 |  |  | 1 | % |  | 55,811 |  |  | 1 | %
Other consumer |  | 1,744 |  |  | — |  |  | 1,427 |  |  | — |
Total loans |  | 7,635,632 |  |  | 100 | % |  | 7,065,598 |  |  | 100 | %
Less: allowance for credit losses |  | (74,444) |  |  |  |  | (74,965) |  |  |
Net loans |  | $ | 7,561,188 |  |  |  |  | $ | 6,990,633 |  |  |
Schedule of detail activity in the allowance for credit losses by portfolio segment | The following tables detail activity in the ACL by portfolio segment for the years ended December 31, 2022, 2021 and 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(dollars in thousands) |  | Commercial |  | Income Producing - Commercial Real Estate |  | Owner Occupied - Commercial Real Estate |  | Real Estate Mortgage - Residential |  | Construction - Commercial and Residential |  | Home Equity |  | Other Consumer |  | Total
Year Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 14,475 |  |  | $ | 38,287 |  |  | $ | 12,146 |  |  | $ | 449 |  |  | $ | 9,099 |  |  | $ | 474 |  |  | $ | 35 |  |  | $ | 74,965 |
Loans charged-off |  | (1,561) |  |  | (1,355) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (79) |  |  | (2,995) |
Recoveries of loans previously charged-off |  | 713 |  |  | 25 |  |  | — |  |  | — |  |  | 1,627 |  |  | — |  |  | 6 |  |  | 2,371 |
Net loans charged-off |  | (848) |  |  | (1,330) |  |  | — |  |  | — |  |  | 1,627 |  |  | — |  |  | (73) |  |  | (624) |
Provision for credit losses |  | 2,028 |  |  | (1,269) |  |  | 556 |  |  | 520 |  |  | (1,925) |  |  | 81 |  |  | 112 |  |  | 103 |
Ending balance |  | $ | 15,655 |  |  | $ | 35,688 |  |  | $ | 12,702 |  |  | $ | 969 |  |  | $ | 8,801 |  |  | $ | 555 |  |  | $ | 74 |  |  | $ | 74,444 |
Year Ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period prior to adoption of ASC 326 |  | $ | 26,569 |  |  | $ | 55,385 |  |  | $ | 14,000 |  |  | $ | 1,020 |  |  | $ | 11,529 |  |  | $ | 1,039 |  |  | $ | 37 |  |  | $ | 109,579 |
Impact of adopting ASC 326 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loans charged-off |  | (8,788) |  |  | — |  |  | (5,444) |  |  | — |  |  | (206) |  |  | — |  |  | (1) |  |  | (14,439) |
Recoveries of loans previously charged-off |  | 486 |  |  | — |  |  | 97 |  |  | — |  |  | 499 |  |  | — |  |  | 18 |  |  | 1,100 |
Net loans (charged-off) recoveries |  | (8,302) |  |  | — |  |  | (5,347) |  |  | — |  |  | 293 |  |  | — |  |  | 17 |  |  | (13,339) |
Provision for credit losses |  | (3,792) |  |  | (17,098) |  |  | 3,493 |  |  | (571) |  |  | (2,723) |  |  | (565) |  |  | (19) |  |  | (21,275) |
Ending balance |  | $ | 14,475 |  |  | $ | 38,287 |  |  | $ | 12,146 |  |  | $ | 449 |  |  | $ | 9,099 |  |  | $ | 474 |  |  | $ | 35 |  |  | $ | 74,965 |
Year Ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period prior to adoption of ASC 326 |  | $ | 18,832 |  |  | $ | 29,265 |  |  | $ | 5,838 |  |  | $ | 1,557 |  |  | $ | 17,485 |  |  | $ | 656 |  |  | $ | 25 |  |  | $ | 73,658 |
Impact of adopting ASC 326 |  | 892 |  |  | 11,230 |  |  | 4,674 |  |  | (301) |  |  | (6,143) |  |  | 245 |  |  | 17 |  |  | 10,614 |
Loans charged-off |  | (12,082) |  |  | (4,300) |  |  | (20) |  |  | (815) |  |  | (2,947) |  |  | (92) |  |  | (3) |  |  | (20,259) |
Recoveries of loans previously charged-off |  | 130 |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 28 |  |  | 162 |
Net loans (charged-off) recoveries |  | (11,952) |  |  | (4,300) |  |  | (20) |  |  | (815) |  |  | (2,943) |  |  | (92) |  |  | 25 |  |  | (20,097) |
Provision for credit losses |  | 18,797 |  |  | 19,190 |  |  | 3,508 |  |  | 579 |  |  | 3,130 |  |  | 230 |  |  | (30) |  |  | 45,404 |
Ending balance |  | $ | 26,569 |  |  | $ | 55,385 |  |  | $ | 14,000 |  |  | $ | 1,020 |  |  | $ | 11,529 |  |  | $ | 1,039 |  |  | $ | 37 |  |  | $ | 109,579 |
The following table presents the ending allowance balance attributable to loans individually and collectively evaluated, as well as associated loan balances, as of December 31, 2022 and 2021:
(dollars in thousands) |  | Commercial |  | Income Producing - Commercial Real Estate |  | Owner Occupied - Commercial Real Estate |  | Real Estate Mortgage - Residential |  | Construction - Commercial and Residential |  | Home Equity |  | Other Consumer |  | Total
Year Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Allowance Balance Attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 1,644 |  |  | $ | 3,198 |  |  | $ | — |  |  | $ | 294 |  |  | $ | — |  |  | $ | — |  |  | $ | 47 |  |  | $ | 5,183 |
Collectively evaluated for impairment |  | 14,011 |  |  | 32,490 |  |  | 12,702 |  |  | 675 |  |  | 8,801 |  |  | 555 |  |  | 27 |  |  | 69,261 |
Total Allowance Ending Balance |  | $ | 15,655 |  |  | $ | 35,688 |  |  | $ | 12,702 |  |  | $ | 969 |  |  | $ | 8,801 |  |  | $ | 555 |  |  | $ | 74 |  |  | $ | 74,444 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Individually evaluated for impairment |  | $ | 3,434 |  |  | $ | 6,328 |  |  | $ | 19,187 |  |  | $ | 1,698 |  |  | $ | — |  |  | $ | — |  |  | $ | 50 |  |  | $ | 30,697 |
Loans Collectively evaluated for impairment |  | 1,487,171 |  |  | 3,913,613 |  |  | 1,091,138 |  |  | 71,303 |  |  | 988,234 |  |  | 51,782 |  |  | 1,694 |  |  | 7,604,935 |
Total Ending Loans Balance |  | $ | 1,490,605 |  |  | $ | 3,919,941 |  |  | $ | 1,110,325 |  |  | $ | 73,001 |  |  | $ | 988,234 |  |  | $ | 51,782 |  |  | $ | 1,744 |  |  | $ | 7,635,632 |
Year Ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Allowance Balance Attributable to loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 1,799 |  |  | $ | 5,156 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,955 |
Collectively evaluated for impairment |  | 12,676 |  |  | 33,131 |  |  | 12,146 |  |  | 449 |  |  | 9,099 |  |  | 474 |  |  | 35 |  |  | 68,010 |
Total Allowance Ending Balance |  | $ | 14,475 |  |  | $ | 38,287 |  |  | $ | 12,146 |  |  | $ | 449 |  |  | $ | 9,099 |  |  | $ | 474 |  |  | $ | 35 |  |  | $ | 74,965 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans Individually evaluated for impairment |  | $ | 11,284 |  |  | $ | 22,570 |  |  | $ | 42 |  |  | $ | 1,779 |  |  | $ | 3,093 |  |  | $ | 366 |  |  | $ | — |  |  | $ | 39,134 |
Loans Collectively evaluated for impairment |  | 1,394,138 |  |  | 3,362,728 |  |  | 1,087,734 |  |  | 72,187 |  |  | 1,052,805 |  |  | 55,445 |  |  | 1,427 |  |  | 7,026,464 |
Total Ending Loans Balance |  | $ | 1,405,422 |  |  | $ | 3,385,298 |  |  | $ | 1,087,776 |  |  | $ | 73,966 |  |  | $ | 1,055,898 |  |  | $ | 55,811 |  |  | $ | 1,427 |  |  | $ | 7,065,598 |
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of December 31, 2022 and 2021:
|  | December 31, 2022 |  | December 31, 2021
(dollars in thousands) |  | Business/Other Assets |  | Real Estate |  | Business/Other Assets |  | Real Estate
Commercial |  | $ | 1,563 |  |  | $ | 1,871 |  |  | $ | 3,098 |  |  | $ | 6,821 |
PPP loans |  | — |  |  | — |  |  | 1,365 |  |  | — |
Income-producing-commercial real estate |  | 2,000 |  |  | 4,328 |  |  | 3,193 |  |  | 19,378 |
Owner occupied - commercial real estate |  | — |  |  | 19,187 |  |  | — |  |  | 42 |
Real estate mortgage- residential |  | — |  |  | 1,698 |  |  | — |  |  | 1,779 |
Construction - commercial and residential |  | — |  |  | — |  |  | — |  |  | 3,093 |
Home Equity |  | — |  |  | — |  |  | — |  |  | 366 |
Other consumer |  | 50 |  |  | — |  |  | — |  |  | — |
Total |  | $ | 3,613 |  |  | $ | 27,084 |  |  | $ | 7,656 |  |  | $ | 31,479 |
Schedule of information related to nonaccrual loans by class | The following are the definitions of the Company’s credit quality indicators:
Pass: | Loans in all classes that comprise the commercial and consumer portfolio segments that 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. Management believes that there is a low likelihood of loss related to those loans that are considered pass.
Watch: | Loan is paying as agreed with generally acceptable asset quality; however the obligor’s performance has not met expectations. Balance sheet and/or income statement has shown deterioration to the point that the obligor could not sustain any further setbacks. Credit is expected to be strengthened through improved obligor performance and/or additional collateral within a reasonable period of time.
Special Mention: | Loans in the classes that comprise the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. The special mention credit quality indicator is not used for classes of loans that comprise the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans that are considered special mention.
Classified: | Classified (a) Substandard – Loans inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified 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. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard.
| Classified (b) Doubtful – Loans that have all the weaknesses inherent in a loan classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors, which may work to the advantage and strengthening of the assets, its classification as an estimated loss is deferred until its more exact status may be determined.
The following table presents, by class of loan, information related to nonaccrual loans as of December 31, 2022 and 2021.
|  | December 31, 2022
(dollars in thousands) |  | Nonaccrual with No Allowance for Credit Loss |  | Nonaccrual with an Allowance for Credit Losses |  | Total Nonaccrual Loans
Commercial |  | $ | 101 |  |  | $ | 2,387 |  |  | $ | 2,488 |
Income producing - commercial real estate |  | — |  |  | 2,000 |  |  | 2,000 |
Owner occupied - commercial real estate |  | 17 |  |  | — |  |  | 17 |
Real estate mortgage - residential |  | — |  |  | 1,913 |  |  | 1,913 |
Other Consumer |  | — |  |  | 50 |  |  | 50 |
Total nonaccrual loans (1)(2) (3) |  | $ | 118 |  |  | $ | 6,350 |  |  | $ | 6,468 |
|  | December 31, 2021
(dollars in thousands) |  | Nonaccrual with No Allowance for Credit Loss |  | Nonaccrual with an Allowance for Credit Losses |  | Total Nonaccrual Loans
Commercial |  | $ | 5,806 |  |  | $ | 3,070 |  |  | $ | 8,876 |
PPP |  | 1,365 |  |  | — |  |  | 1,365 |
Income producing - commercial real estate |  | 3,920 |  |  | 9,536 |  |  | 13,456 |
Owner occupied - commercial real estate |  | 42 |  |  | — |  |  | 42 |
Real estate mortgage - residential |  | 1,779 |  |  | 231 |  |  | 2,010 |
Construction - commercial and residential |  | 3,093 |  |  | — |  |  | 3,093 |
Home equity |  | 366 |  |  | — |  |  | 366 |
Total nonaccrual loans (1)(2) (3) |  | $ | 16,371 |  |  | $ | 12,837 |  |  | $ | 29,208 |
(1)Excludes TDRs that were performing under their restructured terms totaling $24.4 million at December 31, 2022 and $10.2 million at December 31, 2021. (2)Gross interest income of $0.6 million, $1.7 million and $3.7 million would have been recorded for 2022, 2021 and 2020, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while interest actually recorded on such loans were $17 thousand, $101 thousand and $679 thousand at December 31, 2022 2021 and 2020, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status. (3)The CARES Act created the PPP, a program designed to aid small- and medium-sized businesses through federally guaranteed loans distributed through banks. These loans are intended to guarantee payroll and other costs to help those businesses remain viable and allow their workers to pay their bills.
Schedule of loans by class and credit quality indicators | The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2022 and 2021. The data is further defined by year of loan origination.
December 31, 2022 (dollars in thousands) |  | Prior |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | Revolving Loans Amort. Cost Basis |  | Revolving Loans Convert. to Term |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 177,307 |  |  | $ | 45,510 |  |  | $ | 56,011 |  |  | $ | 60,010 |  |  | $ | 234,258 |  |  | $ | 143,636 |  |  | $ | 708,201 |  |  | $ | 8,570 |  |  | $ | 1,433,503 |
Watch |  | 6,022 |  |  | 1,883 |  |  | 250 |  |  | 4,153 |  |  | 2,888 |  |  | 754 |  |  | 27,889 |  |  | — |  |  | 43,839 |
Special Mention |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 82 |  |  | 5,475 |  |  | — |  |  | 5,557 |
Substandard |  | 1,332 |  |  | 351 |  |  | 276 |  |  | — |  |  | — |  |  | — |  |  | 1,344 |  |  | 1,147 |  |  | 4,450 |
Total |  | 184,661 |  |  | 47,744 |  |  | 56,537 |  |  | 64,163 |  |  | 237,146 |  |  | 144,472 |  |  | 742,909 |  |  | 9,717 |  |  | 1,487,349 |
PPP loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | — |  |  | — |  |  | — |  |  | 2,479 |  |  | 777 |  |  | — |  |  |  |  |  |  | 3,256 |
Total |  | — |  |  | — |  |  | — |  |  | 2,479 |  |  | 777 |  |  | — |  |  | — |  |  | — |  |  | 3,256 |
Income producing - commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 778,683 |  |  | 434,031 |  |  | 480,474 |  |  | 298,458 |  |  | 542,143 |  |  | 744,328 |  |  | 192,089 |  |  | 358 |  |  | 3,470,564 |
Watch |  | 237,846 |  |  | 5,190 |  |  | — |  |  | 35,707 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 278,743 |
Special Mention |  | 44,195 |  |  | 5,206 |  |  | 4,209 |  |  | 6,735 |  |  | — |  |  | — |  |  | 47,676 |  |  | — |  |  | 108,021 |
Substandard |  | 60,613 |  |  | 2,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 62,613 |
Total |  | 1,121,337 |  |  | 446,427 |  |  | 484,683 |  |  | 340,900 |  |  | 542,143 |  |  | 744,328 |  |  | 239,765 |  |  | 358 |  |  | 3,919,941 |
Owner occupied - commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 444,153 |  |  | 180,142 |  |  | 106,902 |  |  | 40,562 |  |  | 206,595 |  |  | 41,765 |  |  | 24,181 |  |  | 13,238 |  |  | 1,057,538 |
Watch |  | 16,876 |  |  | 11,504 |  |  | 4,595 |  |  | — |  |  | — |  |  | — |  |  | 59 |  |  | — |  |  | 33,034 |
Substandard |  | 19,753 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,753 |
Total |  | 480,782 |  |  | 191,646 |  |  | 111,497 |  |  | 40,562 |  |  | 206,595 |  |  | 41,765 |  |  | 24,240 |  |  | 13,238 |  | 0 | 1,110,325 |
Real estate mortgage - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 13,930 |  |  | 12,438 |  |  | 8,219 |  |  | 2,640 |  |  | 16,307 |  |  | 14,731 |  |  | — |  |  | — |  |  | 68,265 |
Watch |  | 3,038 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,038 |
Substandard |  | 1,698 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,698 |
Total |  | 18,666 |  |  | 12,438 |  |  | 8,219 |  |  | 2,640 |  |  | 16,307 |  |  | 14,731 |  |  | — |  |  | — |  |  | 73,001 |
Construction - commercial and residential |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 40,113 |  |  | 18,669 |  |  | 90,560 |  |  | 189,023 |  |  | 191,127 |  |  | 159,771 |  |  | 90,911 |  |  | — |  |  | 780,174 |
Watch |  | 44,409 |  |  | 53,172 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 97,581 |
Total |  | 84,522 |  |  | 71,841 |  |  | 90,560 |  |  | 189,023 |  |  | 191,127 |  |  | 159,771 |  |  | 90,911 |  |  | — |  |  | 877,755 |
Construction - C&I (owner occupied) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 13,792 |  |  | 4,906 |  |  | 4,367 |  |  | 33,854 |  |  | 653 |  |  | 34,679 |  |  | 6,507 |  |  | — |  |  | 98,758 |
Watch |  | 1,024 |  |  | 3,254 |  |  | 7,443 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11,721 |
Total |  | 14,816 |  |  | 8,160 |  |  | 11,810 |  |  | 33,854 |  |  | 653 |  |  | 34,679 |  |  | 6,507 |  |  | — |  |  | 110,479 |
Home Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,695 |  |  | — |  |  | — |  |  | 98 |  |  | 551 |  |  | — |  |  | 48,182 |  |  | 906 |  |  | 51,432 |
Watch |  | 52 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 196 |  |  | — |  |  | 248 |
Substandard |  | — |  |  | — |  |  | 41 |  |  | — |  |  | — |  |  | — |  |  | 61 |  |  | — |  |  | 102 |
Total |  | 1,747 |  |  | — |  |  | 41 |  |  | 98 |  |  | 551 |  |  | — |  |  | 48,439 |  |  | 906 |  |  | 51,782 |
Other Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 126 |  |  | 1,561 |  |  | 3 |  |  | 1,694 |
Watch |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 50 |  |  | 50 |
Total |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 126 |  |  | 1,561 |  |  | 53 |  |  | 1,744 |
Total Recorded Investment |  | $ | 1,906,535 |  |  | $ | 778,256 |  |  | $ | 763,347 |  |  | $ | 673,719 |  |  | $ | 1,195,299 |  |  | $ | 1,139,872 |  |  | $ | 1,154,332 |  |  | $ | 24,272 |  |  | $ | 7,635,632 |
December 31, 2021 (dollars in thousands) |  | Prior |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | Revolving Loans Amort. Cost Basis |  | Revolving Loans Convert. to Term |  | Total
Commercial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 180,877 |  |  | $ | 58,693 |  |  | $ | 103,058 |  |  | $ | 90,874 |  |  | $ | 87,515 |  |  | $ | 211,563 |  |  | $ | 549,055 |  |  | $ | 6,023 |  |  | $ | 1,287,658 |
Watch |  | 5,896 |  |  | 6,567 |  |  | 1,020 |  |  | 996 |  |  | 4,268 |  |  | 3,137 |  |  | 18,336 |  |  | 627 |  |  | 40,847 |
Special Mention |  | — |  |  | 9,515 |  |  | 363 |  |  | — |  |  | — |  |  | — |  |  | 901 |  |  | — |  |  | 10,779 |
Substandard |  | 4,205 |  |  | 778 |  |  | 1,850 |  |  | 437 |  |  | — |  |  | — |  |  | 7,763 |  |  | — |  |  | 15,033 |
Total |  | 190,978 |  |  | 75,553 |  |  | 106,291 |  |  | 92,307 |  |  | 91,783 |  |  | 214,700 |  |  | 576,055 |  |  | 6,650 |  |  | 1,354,317 |
PPP loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,840 |  |  | 32,900 |  |  | — |  |  | — |  |  | 49,740 |
|  | — |  |  | — |  |  | — |  |  | — |  |  | 1,365 |  |  | — |  |  | — |  |  | — |  |  | 1,365 |
Total |  | — |  |  | — |  |  | — |  |  | — |  |  | 18,205 |  |  | 32,900 |  |  | — |  |  | — |  |  | 51,105 |
Income producing - commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 572,550 |  |  | 333,394 |  |  | 418,489 |  |  | 495,808 |  |  | 337,178 |  |  | 549,356 |  |  | 198,210 |  |  | — |  |  | 2,904,985 |
Watch |  | 58,334 |  |  | 73,760 |  |  | — |  |  | 43,561 |  |  | 35,094 |  |  | — |  |  | — |  |  | — |  |  | 210,749 |
Special Mention |  | 101,580 |  |  | — |  |  | 41,936 |  |  | 4,264 |  |  | — |  |  | — |  |  | 47,692 |  |  | — |  |  | 195,472 |
Substandard |  | 60,059 |  |  | — |  |  | 8,491 |  |  | 5,542 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 74,092 |
Total |  | 792,523 |  |  | 407,154 |  |  | 468,916 |  |  | 549,175 |  |  | 372,272 |  |  | 549,356 |  |  | 245,902 |  |  | — |  |  | 3,385,298 |
Owner occupied - commercial real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 353,471 |  |  | 127,687 |  |  | 210,348 |  |  | 81,604 |  |  | 41,135 |  |  | 184,529 |  |  | 16,838 |  |  | 1,922 |  |  | 1,017,534 |
Watch |  | 22,710 |  |  | 4,581 |  |  | 11,783 |  |  | 7,026 |  |  | — |  |  | — |  |  | 62 |  |  | — |  |  | 46,162 |
Special Mention |  | — |  |  | — |  |  | — |  |  | 2,122 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,122 |
Substandard |  | 21,958 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21,958 |
Total |  | 398,139 |  |  | 132,268 |  |  | 222,131 |  |  | 90,752 |  |  | 41,135 |  |  | 184,529 |  |  | 16,900 |  |  | 1,922 |  |  | 1,087,776 |
Real estate mortgage - residential |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 14,645 |  |  | 5,854 |  |  | 12,956 |  |  | 15,546 |  |  | 3,436 |  |  | 16,495 |  |  | — |  |  | — |  |  | 68,932 |
Watch |  | 3,255 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,255 |
Substandard |  | 1,698 |  |  | — |  |  | — |  |  | 81 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,779 |
Total |  | 19,598 |  |  | 5,854 |  |  | 12,956 |  |  | 15,627 |  |  | 3,436 |  |  | 16,495 |  |  | — |  |  | — |  |  | 73,966 |
Construction - commercial and residential |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 32,815 |  |  | 139,756 |  |  | 171,152 |  |  | 142,599 |  |  | 160,952 |  |  | 71,799 |  |  | 127,956 |  |  | 1,773 |  |  | 848,802 |
Watch |  | 506 |  |  | 43,918 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 44,424 |
Substandard |  | — |  |  | — |  |  | — |  |  | 3,093 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,093 |
Total |  | 33,321 |  |  | 183,674 |  |  | 171,152 |  |  | 145,692 |  |  | 160,952 |  |  | 71,799 |  |  | 127,956 |  |  | 1,773 |  |  | 896,319 |
Construction - C&I (owner occupied) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 19,710 |  |  | 1,754 |  |  | 25,163 |  |  | 39,803 |  |  | 61,408 |  |  | 768 |  |  | 6,648 |  |  | — |  |  | 155,254 |
Watch |  | 680 |  |  | 390 |  |  | 3,255 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,325 |
Total |  | 20,390 |  |  | 2,144 |  |  | 28,418 |  |  | 39,803 |  |  | 61,408 |  |  | 768 |  |  | 6,648 |  |  | — |  |  | 159,579 |
Home Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 1,474 |  |  | — |  |  | — |  |  | — |  |  | 70 |  |  | 702 |  |  | 52,077 |  |  | 883 |  |  | 55,206 |
Watch |  | 193 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 193 |
Substandard |  | 46 |  |  | — |  |  | — |  |  | 45 |  |  | — |  |  | — |  |  | 58 |  |  | 263 |  |  | 412 |
Total |  | 1,713 |  |  | — |  |  | — |  |  | 45 |  |  | 70 |  |  | 702 |  |  | 52,135 |  |  | 1,146 |  |  | 55,811 |
Other Consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | 370 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,002 |  |  | — |  |  | 1,372 |
Substandard |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 55 |  |  | — |  |  | 55 |
Total |  | 370 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,057 |  |  | — |  |  | 1,427 |
Total Recorded Investment |  | $ | 1,457,032 |  |  | $ | 806,647 |  |  | $ | 1,009,864 |  |  | $ | 933,401 |  |  | $ | 749,261 |  |  | $ | 1,071,249 |  |  | $ | 1,026,653 |  |  | $ | 11,491 |  |  | $ | 7,065,598 |
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, 2022 and 2021.
(dollars in thousands) |  | Loans 30-59 Days Past Due |  | Loans 60-89 Days Past Due |  | Loans 90 Days or More Past Due |  | Total Past Due Loans |  | Current Loans |  | Nonaccrual Loans |  | Total Recorded Investment in Loans
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 697 |  |  | $ | 643 |  |  | $ | — |  |  | $ | 1,340 |  |  | $ | 1,483,521 |  |  | $ | 2,488 |  |  | $ | 1,487,349 |
PPP loans |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,256 |  |  | — |  |  | 3,256 |
Income producing - commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,917,941 |  |  | 2,000 |  |  | 3,919,941 |
Owner occupied - commercial real estate |  | — |  |  | 279 |  |  | — |  |  | 279 |  |  | 1,110,029 |  |  | 17 |  |  | 1,110,325 |
Real estate mortgage – residential |  | — |  |  | — |  |  | — |  |  | — |  |  | 71,088 |  |  | 1,913 |  |  | 73,001 |
Construction - commercial and residential |  | 531 |  |  | — |  |  | — |  |  | 531 |  |  | 877,224 |  |  | — |  |  | 877,755 |
Construction - C&I (owner occupied) |  | — |  |  | — |  |  | — |  |  | — |  |  | 110,479 |  |  | — |  |  | 110,479 |
Home equity |  | — |  |  | 52 |  |  | — |  |  | 52 |  |  | 51,730 |  |  | — |  |  | 51,782 |
Other consumer |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | 1,693 |  |  | 50 |  |  | 1,744 |
Total |  | $ | 1,228 |  |  | $ | 975 |  |  | $ | — |  |  | $ | 2,203 |  |  | $ | 7,626,961 |  |  | $ | 6,468 |  |  | $ | 7,635,632 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 1,462 |  |  | $ | 672 |  |  | $ | — |  |  | $ | 2,134 |  |  | $ | 1,343,307 |  |  | $ | 8,876 |  |  | $ | 1,354,317 |
PPP loans |  | 1,765 |  |  | 825 |  |  | — |  |  | 2,590 |  |  | 47,150 |  |  | 1,365 |  |  | 51,105 |
Income producing - commercial real estate |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,371,842 |  |  | 13,456 |  |  | 3,385,298 |
Owner occupied - commercial real estate |  | 419 |  |  | 19,108 |  |  | — |  |  | 19,527 |  |  | 1,068,207 |  |  | 42 |  |  | 1,087,776 |
Real estate mortgage – residential |  | 1,372 |  |  | — |  |  | — |  |  | 1,372 |  |  | 70,584 |  |  | 2,010 |  |  | 73,966 |
Construction - commercial and residential |  | — |  |  | — |  |  | — |  |  | — |  |  | 893,226 |  |  | 3,093 |  |  | 896,319 |
Construction - C&I (owner occupied) |  | — |  |  | — |  |  | — |  |  | — |  |  | 159,579 |  |  | — |  |  | 159,579 |
Home equity |  | 33 |  |  | 187 |  |  | — |  |  | 220 |  |  | 55,225 |  |  | 366 |  |  | 55,811 |
Other consumer |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,427 |  |  | — |  |  | 1,427 |
Total |  | $ | 5,051 |  |  | $ | 20,792 |  |  | $ | — |  |  | $ | 25,843 |  |  | $ | 7,010,547 |  |  | $ | 29,208 |  |  | $ | 7,065,598 |
Schedule of loans modified in troubled debt restructurings | The following tables present, by class, the recorded investment of loans modified in TDRs held by the Company during the years ended December 31, 2022, 2021, and 2020.
|  | As of December 31, 2022
(dollars in thousands) |  | Number of Contracts |  | Commercial |  | Income Producing - Commercial Real Estate |  | Owner Occupied - Commercial Real Estate |  | Construction - Commercial Real Estate |  | Total
Troubled debt restructurings |  |  |  |  |  |  |  |  |  |  |  |
Restructured accruing |  | 5 |  |  | $ | 946 |  |  | $ | 4,328 |  |  | $ | 19,170 |  |  | $ | — |  |  | $ | 24,444 |
Restructured nonaccruing |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |
Total |  | 5 |  |  | $ | 946 |  |  | $ | 4,328 |  |  | $ | 19,170 |  |  | $ | — |  |  | $ | 24,444 |
Specific allowance |  |  |  | $ | 87 |  |  | $ | 2,140 |  |  |  |  |  |  | $ | 2,227 |
Restructured and subsequently defaulted |  |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | As of December 31, 2021
(dollars in thousands) |  | Number of Contracts |  | Commercial |  | Income Producing - Commercial Real Estate |  | Owner Occupied - Commercial Real Estate |  | Construction - Commercial Real Estate |  | Total
Troubled debt restructurings |  |  |  |  |  |  |  |  |  |  |  |
Restructured accruing |  | 5 |  |  | $ | 1,043 |  |  | $ | 9,116 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,159 |
Restructured nonaccruing |  | 2 |  |  | — |  |  | 6,342 |  |  | — |  |  | — |  |  | 6,342 |
Total |  | 7 |  |  | $ | 1,043 |  |  | $ | 15,458 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,501 |
Specific allowance |  |  |  | $ | 140 |  |  | $ | 3,216 |  |  |  |  |  |  | $ | 3,356 |
Restructured and subsequently defaulted |  |  |  | $ | — |  |  | $ | 6,342 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,342 |
|  | As of December 31, 2020
(dollars in thousands) |  | Number of Contracts |  | Commercial |  | Income Producing - Commercial Real Estate |  | Owner Occupied - Commercial Real Estate |  | Construction - Commercial Real Estate |  | Total
Troubled debt restructurings |  |  |  |  |  |  |  |  |  |  |  |
Restructured accruing |  | 7 |  |  | $ | 1,276 |  |  | $ | 9,183 |  |  | $ | 13 |  |  | $ | — |  |  | $ | 10,472 |
Restructured nonaccruing |  | 3 |  |  | — |  |  | 6,342 |  |  | 2,370 |  |  | — |  |  | 8,712 |
Total |  | 10 |  |  | $ | 1,276 |  |  | $ | 15,525 |  |  | $ | 2,383 |  |  | $ | — |  |  | $ | 19,184 |
Specific allowance |  |  |  | $ | 733 |  |  | $ | 2,989 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,722 |
Restructured and subsequently defaulted |  |  |  | $ | — |  |  | $ | 6,342 |  |  | $ | 2,370 |  |  | $ | — |  |  | $ | 8,712 |
Schedule of Related Party Transactions | The following table summarizes changes in amounts of loans outstanding, both direct and indirect, to those persons during 2022 and 2021. Amounts in the “Additions due to Changes in Related Parties” reflect existing outstanding loans that transitioned to being related party loans between January 1, 2022 and December 31, 2022 as a result of changes in related party status with respect to certain of the Company’s directors who are affiliated with the related borrowers.
(dollars in thousands) |  | 2022 |  | 2021
Balance at January 1, |  | $ | 150,822 |  |  | $ | 72,956 |
Additions |  | 173 |  |  | 301 |
Repayments |  | (33,220) |  |  | (4,750) |
Additions due to Changes in Related Parties |  | 1,423 |  |  | 82,315 |
Balance at December 31, |  | $ | 119,198 |  |  | $ | 150,822 |

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