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Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans, Net of Unamortized Net Deferred Fees
Loans, net of unamortized net deferred fees, at December 31, 2023 and 2022 are summarized by portfolio segment as follows:
December 31, 2023December 31, 2022
(dollars in thousands)Amount%  Amount%
Commercial$1,473,766 18 %$1,487,349 19 %
PPP loans528 — %3,256 — %
Income producing - commercial real estate4,094,614 51 %3,919,941 51 %
Owner occupied - commercial real estate1,172,239 15 %1,110,325 15 %
Real estate mortgage - residential73,396 1 %73,001 1 %
Construction - commercial and residential969,766 12 %877,755 12 %
Construction - C&I (owner occupied)132,021 2 %110,479 1 %
Home equity51,964 1 %51,782 1 %
Other consumer401 — 1,744 — 
Total loans7,968,695 100 %7,635,632 100 %
Less: allowance for credit losses(85,940)(74,444)
Net loans (1)
$7,882,755 $7,561,188 
(1)Excludes accrued interest receivable of $45.3 million and $43.5 million at December 31, 2023 and 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 ACL by portfolio segment for the years ended December 31, 2023, 2022 and 2021. 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
Construction - C&I (Owner Occupied)
Home Equity
Other Consumer
Total
Year Ended December 31, 2023
Allowance for credit losses:                
Balance at beginning of year
$15,655 $35,688 $12,702 $969 $7,195 $1,606 $555 $74 $74,444 
Loans charged-off(2,020)(11,817)— — (5,636)— — (50)(19,523)
Recoveries of loans previously charged-off576 — 55 — 36 — — 6 673 
Net loans (charged-off) and recovered
(1,444)(11,817)55 — (5,600)— — (44)(18,850)
Provision for (reversal of) credit losses
3,613 16,179 1,576 (108)8,603 386 102 (5)30,346 
Ending balance$17,824 $40,050 $14,333 $861 $10,198 $1,992 $657 $25 $85,940 
Year Ended December 31, 2022
Allowance for credit losses:
Balance at beginning of year
$14,475 $38,287 $12,146 $449 $7,094 $2,005 $474 $35 $74,965 
Loans charged-off(1,561)(1,355)— — — — — (79)(2,995)
Recoveries of loans previously charged-off713 25 — — 1,627 — — 6 2,371 
Net loans (charged-off) and recovered
(848)(1,330)— — 1,627 — — (73)(624)
Provision for (reversal of) credit losses
2,028 (1,269)556 520 (1,526)(399)81 112 103 
Ending balance$15,655 $35,688 $12,702 $969 $7,195 $1,606 $555 $74 $74,444 
Year Ended December 31, 2021
Allowance for credit losses:
Balance at beginning of year
$26,569 $55,385 $14,000 $1,020 $9,092 $2,437 $1,039 $37 $109,579 
Loans charged-off(8,788)— (5,444)— (206)— — (1)(14,439)
Recoveries of loans previously charged-off486 — 97 — 499 — — 18 1,100 
Net loans (charged-off) and recovered
(8,302)— (5,347)— 293 — — 17 (13,339)
(Reversal of) provision for credit losses
(3,792)(17,098)3,493 (571)(2,291)(432)(565)(19)(21,275)
Ending balance$14,475 $38,287 $12,146 $449 $7,094 $2,005 $474 $35 $74,965 
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 portfolio segment as of December 31, 2023 and 2022:
December 31, 2023December 31, 2022
(dollars in thousands)Business/Other AssetsReal EstateBusiness/Other AssetsReal Estate
Commercial$1,674 $1,240 $1,563 $1,871 
Income-producing-commercial real estate1,754 39,172 2,000 4,328 
Owner occupied - commercial real estate— 19,836 — 19,187 
Real estate mortgage- residential— 1,692 — 1,698 
Construction - commercial and residential— 525 — — 
Home equity
— 242 — — 
Other consumer— — 50 — 
Total$3,428 $62,707 $3,613 $27,084 
Schedule of the Risk Category of Loans by Class of Loans 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, 2023 and 2022. The data is further defined by year of loan origination.
(dollars in thousands)
Prior2019202020212022
2023
Revolving Loans Amort. Cost BasisRevolving Loans Convert. to TermTotal
December 31, 2023
Commercial:
Pass$157,563 $48,524 $39,133 $194,555 $149,320 $191,889 $623,684 $5,207 $1,409,875 
Special Mention1,415 — — — — — 2,259 — 3,674 
Substandard13,797 58 10,337 1,509 222 — 33,670 624 60,217 
Total172,775 48,582 49,470 196,064 149,542 191,889 659,613 5,831 1,473,766 
YTD gross charge-offs(885)— — — — — — (1,135)(2,020)
PPP loans:
Pass— — — 528 — — — — 528 
Income producing - commercial real estate:
Pass1,257,937 326,999 328,743 517,957 732,291 327,126 263,317 1,845 3,756,215 
Special Mention84,585 44,424 6,740 — — — — — 135,749 
Substandard139,961 62,689 — — — — — — 202,650 
Total1,482,483 434,112 335,483 517,957 732,291 327,126 263,317 1,845 4,094,614 
YTD gross charge-offs(11,817)— — — — — — — (11,817)
Owner occupied - commercial real estate:
Pass534,525 103,034 35,385 202,776 41,907 125,934 673 55 1,044,289 
Special Mention
54,288 13,348 — — — — — — 67,636 
Substandard37,167 — 1,274 — — — — 21,873 60,314 
Total625,980 116,382 36,659 202,776 41,907 125,934 673 21,928 1,172,239 
Real estate mortgage - residential:
Pass22,877 7,545 2,186 15,967 14,756 5,895 — — 69,226 
Substandard4,170 — — — — — — — 4,170 
Total27,047 7,545 2,186 15,967 14,756 5,895 — — 73,396 
Construction - commercial and residential:
Pass30,619 3,440 45,739 251,038 419,393 87,400 124,013 — 961,642 
Substandard
8,124 — — — — — — — 8,124 
Total38,743 3,440 45,739 251,038 419,393 87,400 124,013 — 969,766 
YTD gross charge-offs(136)(5,500)— — — — — — (5,636)
Construction - C&I (owner occupied):
Pass18,551 4,265 56,361 618 33,237 12,619 6,370 — 132,021 
Home equity
Pass1,590 — 87 151 118 — 49,035 643 51,624 
Substandard— 36 — — — — 62 242 340 
Total1,590 36 87 151 118 — 49,097 885 51,964 
Other consumer
Pass1 — — — 46 — 354 — 401 
YTD gross charge-offs(50)— — — — — — — (50)
Total Recorded Investment$2,367,170 $614,362 $525,985 $1,185,099 $1,391,290 $750,863 $1,103,437 $30,489 $7,968,695 
Total YTD gross charge-offs$(12,888)$(5,500)$— $— $— $— $— $(1,135)$(19,523)
(dollars in thousands)
Prior2018201920202021
2022
Revolving 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
(569)(645)— — — — (247)(100)(1,561)
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
(1,355)— — — — — — — (1,355)
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 
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
(36)— — — — — — (43)(79)
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
$(1,960)$(645)$— $— $— $— $(247)$(143)$(2,995)
Schedule of Information Related to Nonaccrual Loans by Class
The following table presents, by portfolio segment, information related to nonaccrual loans as of December 31, 2023 and 2022.
December 31, 2023
December 31, 2022
(dollars in thousands)Nonaccrual with No Allowance for Credit LossNonaccrual with an Allowance for Credit LossesTotal Nonaccrual LoansNonaccrual with No Allowance for Credit LossNonaccrual with an Allowance for Credit LossesTotal Nonaccrual Loans
Commercial$1,002 $1,047 $2,049 $101 $2,387 $2,488 
Income producing - commercial real estate40,926 — 40,926 — 2,000 2,000 
Owner occupied - commercial real estate19,836 — 19,836 17 — 17 
Real estate mortgage - residential— 1,946 1,946 — 1,913 1,913 
Construction- commercial and residential
— 525 525 — — — 
Home equity
242 — 242 — — — 
Other consumer
— — — — 50 50 
Total (1)
$62,006 $3,518 $65,524 $118 $6,350 $6,468 
(1)Gross coupon interest income of $4.2 million, $558 thousand and $1.7 million would have been recorded for years ended December 31, 2023, 2022 and 2021, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while interest actually recorded on such loans were $1.5 million, $17 thousand and $101 thousand for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.
Schedule by Class of Loan, an Aging Analysis and the Recorded Investments in Loans Past Due
The following table presents, by portfolio segment, an aging analysis and the recorded investments in loans past due as of December 31, 2023 and 2022:
(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, 2023
Commercial$985 $7,048 $— $8,033 $1,463,684 $2,049 $1,473,766 
PPP loans— — — — 528 — 528 
Income producing - commercial real estate— — — — 4,053,688 40,926 4,094,614 
Owner occupied - commercial real estate1,274 — — 1,274 1,151,129 19,836 1,172,239 
Real estate mortgage – residential2,089 — — 2,089 69,361 1,946 73,396 
Construction - commercial and residential2,056 — — 2,056 967,185 525 969,766 
Construction - C&I (owner occupied)— — — — 132,021 — 132,021 
Home equity197 — — 197 51,525 242 51,964 
Other consumer— — — — 401 — 401 
Total$6,601 $7,048 $— $13,649 $7,889,522 $65,524 $7,968,695 
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 Loans Modified in Troubled Debt Restructurings
The following table presents the amortized cost basis as of December 31, 2023 and the financial effect of loans modified to borrowers experiencing financial difficulty during the year ended December 31, 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 (2)
Commercial$14,182 $21,003 $— $35,185 2.4 %11 months— %
Income producing - commercial real estate (3)
7,191 62,356 106,256 175,803 4.3 %16 months2.56 %
Owner occupied - commercial real estate— 19,127 — 19,127 1.6 %9 months— %
Construction - commercial and residential7,095 — — 7,095 0.7 %12 months— %
Total$28,468 $102,486 $106,256 $237,210 
(1)For loans that received multiple modifications during the year ended December 31, 2023, weighted average term and principal payment extensions were calculated based on the aggregated impact of the extensions received during the period.
(2)The weighted average is calculated based on the total amortized cost at December 31, 2023 of loans that received interest rate reduction modifications during the year ended December 31, 2023.
(3)Includes one loan modified as a combination - principal payment delay, term extension and interest rate reduction most recently in the fourth quarter of 2023 that was moved to nonaccrual status and incurred a $6.1 million charge off during the year ended December 31, 2023 in connection with the receipt of an updated appraisal in January 2024.
The following table presents the performance of loans modified to borrowers experiencing financial difficulty during the year ended December 31, 2023:
December 31, 2023
Payment Status (Amortized Cost Basis)
(dollars in thousands)Current30-89 Days Past Due
90 Days or More Past Due
Nonaccrual
Commercial$30,790 $4,395 $— $— 
Income producing - commercial real estate137,252 — — 38,551 
Owner occupied - commercial real estate— — — 19,127 
Construction - commercial and residential7,095 — — — 
Total$175,137 $4,395 $— $57,678 
The following table presents the recorded investment of loans modified in TDRs held by the Company as of December 31, 2022:
(dollars in thousands)
Number of Contracts
Commercial
Income Producing - Commercial Real Estate
Owner Occupied - Commercial Real Estate
Total
Troubled debt restructurings:
Restructured accruing5$946 $4,328 $19,170 $24,444 
Specific allowance$87 $2,140 $— $2,227 
Restructured and subsequently defaulted$— $— $— $— 
Schedule of Related Party Transactions
The following table summarizes the activity of loans outstanding to borrowers with relationships to related parties in 2023 and 2022:
(dollars in thousands)
2023
2022
Balance at January 1,$119,198 $150,822 
Additions283 173 
Repayments(44,645)(33,220)
Additions due to changes in related party status
— 1,423 
Removals due to changes in related party status
(74,000)— 
Balance at December 31,$836 $119,198 
Schedule of Amortized Cost Basis of Loan Had a Payment Default
The following table presents the amortized cost basis of loans that were experiencing payment default at December 31, 2023 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty:
December 31, 2023
Amortized Cost Basis
(dollars in thousands)
Term Extension
Combination - Term Extension and Principal Payment DelayCombination - Term Extension, Principal Payment Delay and Interest Rate Reduction
Commercial
$4,395 $— $— 
Income producing - commercial real estate— — 38,551 
Owner occupied - commercial real estate— 19,127 — 
Total$4,395 $19,127 $38,551