XML 124 R26.htm IDEA: XBRL DOCUMENT v3.23.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Loans, Net of Unamortized Net Deferred Fees
Loans, net of unamortized deferred fees, at June 30, 2023 and December 31, 2022 are summarized by portfolio segment as follows:
June 30, 2023December 31, 2022
(dollars in thousands, except amounts in the footnote)Amount%Amount%
Commercial$1,431,284 18 %$1,487,349 19 %
PPP loans649 — %3,256 — %
Income-producing - commercial real estate4,086,049 53 %3,919,941 51 %
Owner-occupied - commercial real estate1,122,334 14 %1,110,325 15 %
Real estate mortgage - residential76,596 1 %73,001 1 %
Construction - commercial and residential862,869 11 %877,755 12 %
Construction - C&I (owner-occupied)132,843 2 %110,479 1 %
Home equity53,934 1 %51,782 1 %
Other consumer161 — %1,744 — %
Total loans7,766,719 100 %7,635,632 100 %
Less: allowance for credit losses(78,029)(74,444)
Net loans (1)
$7,688,690 $7,561,188 
(1)Excludes accrued interest receivable of $44.1 million and $43.5 million at June 30, 2023 and December 31, 2022, respectively, which were recorded in other assets on the Consolidated Balance Sheets.
Schedule of Detail Activity in the Allowance for Credit Losses by Portfolio Segment
The following table details activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2023 and 2022. PPP loans are excluded from these tables since they do not carry an allowance for credit loss, as these loans are fully guaranteed as to principal and interest by the SBA, whose guarantee is backed by the full faith and credit of the U.S. Government. Allocation of a portion of the allowance to one category of loans does not restrict the use of the allowance to absorb losses in other categories.
(dollars in thousands)CommercialIncome-Producing Commercial Real EstateOwner-Occupied -Commercial Real EstateReal Estate Mortgage ResidentialConstruction -Commercial and ResidentialHome EquityOther ConsumerTotal
Three Months Ended June 30, 2023
Allowance for credit losses:
Balance at beginning of period$15,775 $38,140 $12,457 $1,002 $10,383 $593 $27 $78,377 
Loans charged-off(492)(5,306)— — — — — (5,798)
Recoveries of loans previously charged-off156 — 8 — 34 — 2 200 
Net loans (charged-off) recovered(336)(5,306)8 — 34 — 2 (5,598)
Provision for (reversal of) credit losses(65)5,652 340 (191)(485)2 (3)5,250 
Ending balance$15,374 $38,486 $12,805 $811 $9,932 $595 $26 $78,029 
Six Months Ended June 30, 2023
Allowance for credit losses:
Balance at beginning of period$15,655 $35,688 $12,702 $969 $8,801 $555 $74 $74,444 
Loans charged-off(1,360)(5,306)— — (136)— (50)(6,852)
Recoveries of loans previously charged-off232 — 8 — 34 — 5 279 
Net loans (charged-off) recovered(1,128)(5,306)8 — (102)— (45)(6,573)
Provision for (reversal of) credit losses847 8,104 95 (158)1,233 40 (3)10,158 
Ending balance$15,374 $38,486 $12,805 $811 $9,932 $595 $26 $78,029 
Three Months Ended June 30, 2022
Allowance for credit losses:
Balance at beginning of period$12,946 $39,193 $10,515 $381 $7,973 $467 $30 $71,505 
Loans charged-off(38)— (1,355)— — — (3)(1,396)
Recoveries of loans previously charged-off442 — — — 1,627 — 1 2,070 
Net loans (charged-off) recovered404 — (1,355)— 1,627 — (2)674 
Provision for (reversal of) credit losses2,404 (5,073)3,636 409 (1,106)180 36 486 
Ending balance$15,754 $34,120 $12,796 $790 $8,494 $647 $64 $72,665 
Six Months Ended June 30, 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(552)— (1,355)— — — (3)(1,910)
Recoveries of loans previously charged-off496 — — — 1,627 — 2 2,125 
Net loans (charged-off) recovered(56)— (1,355)— 1,627 — (1)215 
Provision for (reversal of) credit losses1,335 (4,167)2,005 341 (2,232)173 30 (2,515)
Ending balance$15,754 $34,120 $12,796 $790 $8,494 $647 $64 $72,665 
Schedule of Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Business/OtherBusiness/Other
(dollars in thousands)AssetsReal EstateAssetsReal Estate
Commercial$1,916 $986 $1,563 $1,871 
Income-producing - commercial real estate2,000 22,722 2,000 4,328 
Owner-occupied - commercial real estate— 19,179 — 19,187 
Real estate mortgage - residential— 1,698 — 1,698 
Construction - commercial and residential— 529 — — 
Other consumer— — 50 — 
Total$3,916 $45,114 $3,613 $27,084 
Schedule of the Risk Category of Loans by Class of Loans Based on the most recent analysis performed, the amortized cost basis of loans by risk category, class and year of origination are as follows:
(dollars in thousands)Prior20192020202120222023Revolving Loans Amort. Cost BasisRevolving Loans Convert. to TermTotal
June 30, 2023
Commercial
Pass$192,960 $53,809 $57,194 $222,312 $161,306 $81,087 $648,638 $5,560 $1,422,866 
Special Mention— — — — 73 — 5,469 — 5,542 
Substandard1,721 253 — 336 — — 292 274 2,876 
Total194,681 54,062 57,194 222,648 161,379 81,087 654,399 5,834 1,431,284 
YTD Gross Charge-offs(418)— — — — — — (942)(1,360)
PPP loans
Pass— — — 649 — — — — 649 
Income producing - commercial real estate
Pass1,344,042 403,563 307,222 510,702 701,572 312,572 198,470 2,625 3,780,768 
Special Mention91,682 4,185 6,733 — — — 47,668 — 150,268 
Substandard106,734 48,279 — — — — — — 155,013 
Total1,542,458 456,027 313,955 510,702 701,572 312,572 246,138 2,625 4,086,049 
YTD Gross Charge-offs(5,306)— — — — — — — (5,306)
Owner occupied - commercial real estate
Pass625,731 117,610 39,281 202,422 38,666 55,380 1,430 22,077 1,102,597 
Substandard19,737 — — — — — — — 19,737 
Total645,468 117,610 39,281 202,422 38,666 55,380 1,430 22,077 1,122,334 
Real estate mortgage - residential
Pass27,124 8,113 2,209 16,354 14,313 6,785 — — 74,898 
Substandard1,698 — — — — — — — 1,698 
Total28,822 8,113 2,209 16,354 14,313 6,785 — — 76,596 
Construction - commercial and residential
Pass45,206 13,385 110,119 237,410 272,209 32,506 110,636 1,776 823,247 
Substandard529 39,093 — — — — — — 39,622 
Total45,735 52,478 110,119 237,410 272,209 32,506 110,636 1,776 862,869 
YTD Gross Charge-offs(136)— — — — — — — (136)
Construction - C&I (owner occupied)
Pass19,353 4,335 56,948 641 41,730 3,403 6,433 — 132,843 
Total19,353 4,335 56,948 641 41,730 3,403 6,433 — 132,843 
Home equity
Pass2,443 — 246 374 164 — 49,766 842 53,835 
Substandard— 38 — — — — 61 — 99 
Total2,443 38 246 374 164 — 49,827 842 53,934 
Other consumer
Pass7 — — — 114 — 40 — 161 
Total7 — — — 114 — 40 — 161 
YTD Gross Charge-offs(50)— — — — — — — (50)
Total Recorded Investment$2,478,967 $692,663 $579,952 $1,191,200 $1,230,147 $491,733 $1,068,903 $33,154 $7,766,719 
Total YTD Gross Charge-offs$(5,910)$— $— $— $— $— $— $(942)$(6,852)
(dollars in thousands)Prior20182019202020212022Revolving Loans Amort. Cost BasisRevolving Loans Convert. to TermTotal
December 31, 2022
Commercial
Pass$183,329 $47,393 $56,261 $64,163 $237,146 $144,390 $736,090 $8,570 $1,477,342 
Special Mention— — — — — 82 5,475 — 5,557 
Substandard1,332 351 276 — — — 1,344 1,147 4,450 
Total184,661 47,744 56,537 64,163 237,146 144,472 742,909 9,717 1,487,349 
YTD Gross Charge-offs(283)(101)(49)— — — (483)— (916)
PPP loans
Pass— — — 2,479 777 — — — 3,256 
Income producing - commercial real estate
Pass1,016,529 439,221 480,474 334,165 542,143 744,328 192,089 358 3,749,307 
Special Mention44,195 5,206 4,209 6,735 — — 47,676 — 108,021 
Substandard60,613 2,000 — — — — — — 62,613 
Total1,121,337 446,427 484,683 340,900 542,143 744,328 239,765 358 3,919,941 
YTD Gross Charge-offs(680)(645)(676)— — — — — (2,001)
Owner occupied - commercial real estate
Pass461,029 191,646 111,497 40,562 206,595 41,765 24,240 13,238 1,090,572 
Substandard19,753 — — — — — — — 19,753 
Total480,782 191,646 111,497 40,562 206,595 41,765 24,240 13,238 1,110,325 
Real estate mortgage - residential
Pass16,968 12,438 8,219 2,640 16,307 14,731 — — 71,303 
Substandard1,698 — — — — — — — 1,698 
Total18,666 12,438 8,219 2,640 16,307 14,731 — — 73,001 
Construction - commercial and residential
Pass84,522 71,841 90,560 189,023 191,127 159,771 90,911 — 877,755 
Total84,522 71,841 90,560 189,023 191,127 159,771 90,911 — 877,755 
Construction - C&I (owner occupied)
Pass14,816 8,160 11,810 33,854 653 34,679 6,507 — 110,479 
Total14,816 8,160 11,810 33,854 653 34,679 6,507 — 110,479 
Home equity
Pass1,747 — — 98 551 — 48,378 906 51,680 
Substandard— — 41 — — — 61 — 102 
Total1,747 — 41 98 551 — 48,439 906 51,782 
Other consumer
Pass4 — — — — 126 1,561 3 1,694 
Substandard— — — — — — — 50 50 
Total4 — — — — 126 1,561 53 1,744 
YTD Gross Charge-offs(3)— — — — — (75)— (78)
Total Recorded Investment$1,906,535 $778,256 $763,347 $673,719 $1,195,299 $1,139,872 $1,154,332 $24,272 $7,635,632 
Total YTD Gross Charge-Offs$(966)$(746)$(725)$— $— $— $(558)$— $(2,995)
Schedule by Class of Loan, an Aging Analysis and the Recorded Investments in Loans Past Due
The table presents, by class of loan, an aging analysis and the recorded investments in loans past due on an amortized cost basis as of June 30, 2023 and December 31, 2022:
(dollars in thousands, except amount in the footnote)Loans 30-59 Days Past DueLoans 60-89 Days Past DueLoans 90 Days or More Past DueTotal Past Due LoansCurrent LoansNonaccrual LoansTotal Recorded Investment in Loans
June 30, 2023
Commercial$8 $149 $— $157 $1,429,162 $1,965 $1,431,284 
PPP loans— — — — 649 — 649 
Income producing - commercial real estate (1)
— 662 — 662 4,060,741 24,646 4,086,049 
Owner occupied - commercial real estate— 1,066 — 1,066 1,121,259 9 1,122,334 
Real estate mortgage - residential— — — — 74,642 1,954 76,596 
Construction - commercial and residential— 39,093 — 39,093 823,252 524 862,869 
Construction - C&I (owner occupied)— — — — 132,843 — 132,843 
Home equity— 46 — 46 53,888 — 53,934 
Other consumer— — — — 161 — 161 
Total$8 $41,016 $— $41,024 $7,696,597 $29,098 $7,766,719 
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 residential531 — — 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 
Schedule of Information Related to Nonaccrual Loans by Class
The following presents the nonaccrual loans as of June 30, 2023 and December 31, 2022:
(dollars in thousands, except amounts in footnotes)Nonaccrual with No Allowance for Credit LossesNonaccrual with an Allowance for Credit LossesTotal Nonaccrual Loans
June 30, 2023
Commercial$140 $1,825 $1,965 
Income producing - commercial real estate20,439 4,207 24,646 
Owner occupied - commercial real estate9 — 9 
Real estate mortgage - residential— 1,954 1,954 
Construction - commercial and residential— 524 524 
Total (1)
$20,588 $8,510 $29,098 
December 31, 2022
Commercial$101 $2,387 $2,488 
Income producing - commercial real estate— 2,000 2,000 
Owner occupied - commercial real estate17 — 17 
Real estate mortgage - residential— 1,913 1,913 
Other consumer— 50 50 
Total (1)
$118 $6,350 $6,468 
(1)Gross interest income of approximately $1.1 million and $532 thousand would have been recorded for the six months ended June 30, 2023 and 2022, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while $277 thousand and $6 thousand interest income was actually recorded on such loans for the six months ended June 30, 2023 and 2022, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company's policy for placing loans on nonaccrual status.
Schedule of Loans Modified in Troubled Debt Restructurings
The following table presents the amortized cost basis as of June 30, 2023 and the financial effect of loans modified to borrowers experiencing financial difficulty during the three and six months ended June 30, 2023:
June 30, 2023
(dollars in thousands)Term ExtensionCombination - Term Extension and Principal Payment DelayCombination - Term Extension, Principal Payment Delay and Interest Rate ReductionTotalPercentage of Total Loan Type
Weighted Average Term and Principal Payment Extension (1)
Weighted Average Interest Rate Reduction
Three months ended June 30, 2023:
Commercial$30,833 $— $— $30,833 2.2 %3 months— %
Income producing - commercial real estate— 55,603 74,026 129,629 3.2 %3 months2.90 %
Owner occupied - commercial real estate— 19,170 — 19,170 1.7 %3 months— %
Construction - commercial and residential6,971 — — 6,971 0.8 %6 months— %
Total$37,804 $74,773 $74,026 $186,603 
Six months ended June 30, 2023:
Commercial$30,833 $— $— $30,833 2.2 %5 months— %
Income producing - commercial real estate (2)
7,184 57,823 74,026 139,033 3.4 %5 months2.90 %
Owner occupied - commercial real estate— 19,170 — 19,170 1.7 %6 months— %
Construction - commercial and residential$6,971 $— $— 6,971 0.8 %6 months— %
Total$44,988 $76,993 $74,026 $196,007 
(1)For loans that received multiple modifications during the six months ended June 30, 2023, calculated based on the aggregated impact of the extensions received during the period.
(2)Includes one loan modified as a combination - principal payment delay and term extension during the first quarter of 2023 that was moved to nonaccrual status and incurred a $2.1 million charge off in the second quarter of 2023.
The following table presents the performance of loans modified to borrowers experiencing financial difficulty during the six months ended June 30, 2023:
June 30, 2023
Payment Status (Amortized Cost Basis)
(dollars in thousands)CurrentNonaccrual
Commercial$30,833 $— 
Income producing - commercial real estate136,814 2,219 
Owner occupied - commercial real estate19,170 — 
Construction - commercial and residential6,971 — 
Total$193,788 $2,219