XML 39 R27.htm IDEA: XBRL DOCUMENT v3.25.1
Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Loans, Net of Unamortized Net Deferred Fees HFI Loans, net of unamortized net deferred fees, as of March 31, 2025 and December 31, 2024 are summarized by portfolio segment as follows:
March 31, 2025December 31, 2024
(dollars in thousands)Amount
% 
Amount%
Commercial$1,178,343 15 %$1,183,341 15 %
PPP loans226 — %287 — %
Income producing - commercial real estate3,967,124 49 %4,064,846 51 %
Owner occupied - commercial real estate1,403,668 18 %1,269,669 16 %
Real estate mortgage - residential48,821 1 %50,535 1 %
Construction - commercial and residential1,210,788 15 %1,210,763 15 %
Construction - C&I (owner occupied)83,417 1 %103,259 1 %
Home equity50,121 1 %51,130 1 %
Other consumer798 — %1,058 — %
Total loans$7,943,306 100 %$7,934,888 100 %
Less: allowance for credit losses(129,469)(114,390)
Net loans (1)
$7,813,837 $7,820,498 
(1)Excludes accrued interest receivable of $41.9 million and $42.9 million as of March 31, 2025 and December 31, 2024, 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 three months ended March 31, 2025 and 2024. 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 preclude its availability to absorb losses in other categories.
(dollars in thousands)CommercialIncome Producing - Commercial Real EstateOwner Occupied - Commercial Real EstateReal Estate Mortgage - ResidentialConstruction -Commercial and ResidentialConstruction - C&I (Owner Occupied)Home EquityOther ConsumerTotal
Three Months Ended March 31, 2025
Allowance for credit losses:                
Balance at beginning of year$19,390 $55,185 $22,654 $610 $14,585 $1,282 $653 $31 $114,390 
Loans charged-off(270)(6,170)(4,862)— — — — (4)(11,306)
Recoveries of loans previously charged-off53 — 23 — — — — — 76 
Net loans (charged-off) and recovered(217)(6,170)(4,839)— — — — (4)(11,230)
Provision for (reversal of) credit losses1,489 12,922 9,057 60 2,306 398 71 6 26,309 
Ending balance$20,662 $61,937 $26,872 $670 $16,891 $1,680 $724 $33 $129,469 
Three Months Ended March 31, 2024
Allowance for credit losses:
Balance at beginning of year$17,824 $40,050 $14,333 $861 $10,198 $1,992 $657 $25 $85,940 
Loans charged-off(496)(20,943)— — (129)— — (1)(21,569)
Recoveries of loans previously charged-off115 — 24 — — — — — 139 
Net loans (charged-off) and recovered(381)(20,943)24 — (129)— — (1)(21,430)
Provision for (reversal of) credit losses6,239 26,830 (820)32 2,989 (63)(39)6 35,174 
Ending balance$23,682 $45,937 $13,537 $893 $13,058 $1,929 $618 $30 $99,684 
Schedule of Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans
The following table presents the amortized cost basis of collateral-dependent HFI loans by portfolio segment as of March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
(dollars in thousands)Business/Other AssetsReal EstateBusiness/Other AssetsReal Estate
Commercial$4,762 $295 $1,214 $1,125 
Income-producing-commercial real estate880 159,909 880 167,574 
Owner occupied - commercial real estate303 34,581 — 37,746 
Home equity298 — — 303 
Total$6,243 $194,785 $2,094 $206,748 
Schedule of the Risk Category of Loans by Class of Loans Based on the most recent analysis performed, the amortized cost basis of HFI loans by risk category, class and year of origination, along with any charge-offs that were recorded in the applicable loan segment, if applicable, were as follows:
(dollars in thousands)Prior2021202220232024
2025
Revolving Loans Amort. Cost BasisRevolving Loans Convert. to TermTotal
March 31, 2025
Commercial:
Pass$146,830 $51,001 $64,916 $66,402 $104,217 $78,240 $543,335 $279 $1,055,220 
Special Mention3,074 33,133 11,253 2,622 — — 25,665 — 75,747 
Substandard29,778 1,669 493 387 — — 11,739 3,310 47,376 
Total179,682 85,803 76,662 69,411 104,217 78,240 580,739 3,589 1,178,343 
YTD gross charge-offs— — — (20)— — (250)— (270)
PPP loans:
Pass— 226 — — — — — — 226 
Income producing - commercial real estate:
Pass1,470,208 665,562 671,947 317,231 88,199 47,225 211,247 — 3,471,619 
Special Mention165,609 — — — — — — — 165,609 
Substandard298,296 — 20,600 — — — 11,000 — 329,896 
Total1,934,113 665,562 692,547 317,231 88,199 47,225 222,247 — 3,967,124 
YTD gross charge-offs(6,170)— — — — — — — (6,170)
Owner occupied - commercial real estate:
Pass659,552 217,893 36,967 136,962 121,245 84,229 29,517 — 1,286,365 
Special Mention22,965 — — — — — — — 22,965 
Substandard92,457 303 1,089 489 — — — — 94,338 
Total774,974 218,196 38,056 137,451 121,245 84,229 29,517 — 1,403,668 
YTD gross charge-offs(4,862)— — — — — — — (4,862)
Real estate mortgage - residential:
Pass21,648 9,185 12,129 5,859 — — — — 48,821 
Total21,648 9,185 12,129 5,859 — — — — 48,821 
Construction - commercial and residential:
Pass63,947 150,327 605,757 211,113 8,711 — 131,911 996 1,172,762 
Special Mention
— 8,614 — — — — — — 8,614 
Substandard5,683 4,922 18,807 — — — — — 29,412 
Total69,630 163,863 624,564 211,113 8,711 — 131,911 996 1,210,788 
Construction - C&I (owner occupied):
Pass30,555 — 6,733 8,526 32,632 4,150 821 — 83,417 
Home equity
Pass2,171 35 115 — — — 47,254 — 49,575 
Substandard56 217 220 — — — 53 — 546 
Total2,227 252 335 — — — 47,307 — 50,121 
Other consumer
Pass— — — — 12 — 786 — 798 
Total— — — — 12 — 786 — 798 
YTD gross charge-offs(3)— — — — — — (1)(4)
Total Recorded Investment$3,012,829 $1,143,087 $1,451,026 $749,591 $355,016 $213,844 $1,013,328 $4,585 $7,943,306 
Total YTD gross charge-offs$(11,035)$— $— $(20)$— $— $(250)$(1)$(11,306)
(dollars in thousands)Prior2020202120222023
2024
Revolving Loans Amort. Cost BasisRevolving Loans Convert. to TermTotal
December 31, 2024
Commercial:
Pass$132,595 $26,775 $133,400 $110,439 $89,608 $104,927 $513,645 $4,394 $1,115,783 
Special Mention7,828 3,479 — — — — 18,384 — 29,691 
Substandard11,404 3,713 2,128 519 — — 12,223 7,880 37,867 
Total151,827 33,967 135,528 110,958 89,608 104,927 544,252 12,274 1,183,341 
YTD gross charge-offs(4,350)— — — — — (506)(50)(4,906)
PPP loans:
Pass— — 287 — — — — — 287 
Income producing - commercial real estate:
Pass1,442,246 176,268 626,527 680,822 276,731 151,535 216,363 29,243 3,599,735 
Special Mention74,251 91,643 — 20,600 — — — — 186,494 
Substandard266,309 1,808 — — — — 10,500 — 278,617 
Total1,782,806 269,719 626,527 701,422 276,731 151,535 226,863 29,243 4,064,846 
YTD gross charge-offs(29,898)(386)— — — — — — (30,284)
Owner occupied - commercial real estate:
Pass622,258 57,611 219,162 39,221 138,860 69,623 299 — 1,147,034 
Special Mention23,658 — — — — — — — 23,658 
Substandard96,634 1,248 — 1,095 — — — — 98,977 
Total742,550 58,859 219,162 40,316 138,860 69,623 299 — 1,269,669 
YTD gross charge-offs(3,800)— — — — — — — (3,800)
Real estate mortgage - residential:
Pass20,080 2,435 9,972 12,181 5,867 — — — 50,535 
Total20,080 2,435 9,972 12,181 5,867 — — — 50,535 
Construction - commercial and residential:
Pass26,739 38,385 199,933 595,496 202,577 7,588 124,508 — 1,195,226 
Special Mention
— — 4,964 — — — — — 4,964 
Substandard5,683 — 4,890 — — — — — 10,573 
Total32,422 38,385 209,787 595,496 202,577 7,588 124,508 — 1,210,763 
     YTD gross charge-offs(129)— — — — — — — (129)
Construction - C&I (owner occupied):
Pass6,063 24,632 — 36,544 8,458 26,730 832 — 103,259 
Home equity:
Pass1,366 71 35 116 — — 48,443 765 50,796 
Substandard59 — 222 — — — 53 — 334 
Total1,425 71 257 116 — — 48,496 765 51,130 
Other consumer:
Pass3 — — — — 49 1,006 — 1,058 
YTD gross charge-offs(70)— — — — — (17)(1)(88)
Total Recorded Investment$2,737,176 $428,068 $1,201,520 $1,497,033 $722,101 $360,452 $946,256 $42,282 $7,934,888 
Total YTD gross charge-offs$(38,247)$(386)$— $— $— $— $(523)$(51)$(39,207)
Schedule of Information Related to Nonaccrual Loans by Class
The following table presents, by portfolio segment, information related to the amortized cost basis of nonaccrual HFI loans as of March 31, 2025 and December 31, 2024.
March 31, 2025
December 31, 2024
(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$3,727 $601 $4,328 $1,439 $609 $2,048 
Income producing - commercial real estate86,847 73,942 160,789 47,224 121,230 168,454 
Owner occupied - commercial real estate2,153 32,729 34,882 642 37,102 37,744 
Real estate mortgage - residential— 144 144 — 157 157 
Home equity298 — 298 303 — 303 
Total (1)
$93,025 $107,416 $200,441 $49,608 $159,098 $208,706 
(1)Gross coupon interest income of $3.1 million, and $1.3 million would have been recorded for the three months ended March 31, 2025 and 2024, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while interest actually recorded on such loans were $1.6 million, and none for the three months ended March 31, 2025 and 2024, 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 HFI loans past due as of March 31, 2025 and December 31, 2024:
(dollars in thousands)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
March 31, 2025
Commercial$8,492 $304 $— $8,796 $1,165,219 $4,328 $1,178,343 
PPP loans— — — — 226 — 226 
Income producing - commercial real estate29,946 15,333 — 45,279 3,761,056 160,789 3,967,124 
Owner occupied - commercial real estate9,686 278 — 9,964 1,358,822 34,882 1,403,668 
Real estate mortgage – residential2,525 — — 2,525 46,152 144 48,821 
Construction - commercial and residential— 15,955 — 15,955 1,194,833 — 1,210,788 
Construction - C&I (owner occupied)— — — — 83,417 — 83,417 
Home equity259 220 — 479 49,344 298 50,121 
Other consumer— — — — 798 — 798 
Total$50,908 $32,090 $— $82,998 $7,659,867 $200,441 $7,943,306 
December 31, 2024
Commercial$5,121 $3,759 $— $8,880 $1,172,413 $2,048 $1,183,341 
PPP loans— — — — 287 — 287 
Income producing - commercial real estate13,804 — — 13,804 3,882,588 168,454 4,064,846 
Owner occupied - commercial real estate2,968 — — 2,968 1,228,957 37,744 1,269,669 
Real estate mortgage – residential— — — — 50,378 157 50,535 
Construction - commercial and residential— 1,031 — 1,031 1,209,732 — 1,210,763 
Construction - C&I (owner occupied)— — — — 103,259 — 103,259 
Home equity52 — — 52 50,775 303 51,130 
Other consumer28 — — 28 1,030 — 1,058 
Total$21,973 $4,790 $— $26,763 $7,699,419 $208,706 $7,934,888 
Schedule of Loans Modified in Troubled Debt Restructurings
The following table presents the amortized cost basis as of March 31, 2025 and 2024, and the financial effect of HFI loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024:
(dollars in thousands)Term ExtensionCombination - Term Extension and Principal Payment DelayTotalPercentage of Total Loan Type
Weighted Average Term and Principal Payment Extension (1)
Weighted Average Interest Rate Reduction (2)
March 31, 2025
Commercial$3,310 $9,440 $12,750 1.1 %12 months— %
Income producing - commercial real estate
— 70,296 70,296 1.8 %5 months— %
Total$3,310 $79,736 $83,046 
March 31, 2024
Commercial$31,553 $— $31,553 2.2 %4 months— %
Income producing - commercial real estate
— 50,926 50,926 1.3 %3 months— %
Real estate mortgage - residential— 2,478 2,478 3.4 %6 months— %
Total$31,553 $53,404 $84,957 
(1)For loans that received multiple modifications during the year, weighted average term and principal payment extensions were calculated based on the aggregate impact of the extensions received during the period.
(2)The weighted average is calculated based on the total amortized cost of loans, at the year-end, that received interest rate reduction modifications during the year.
The following table presents the performance of HFI loans modified during the prior twelve months to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024:
March 31, 2025
Payment Status (Amortized Cost Basis)
(dollars in thousands)Current30-89 Days Past Due90 Days or More Past DueNonaccrual
Commercial$46,010 $— $— $— 
Income producing - commercial real estate172,099 — — 84,442 
Owner occupied - commercial real estate863 — — — 
Construction - commercial and residential9,942 10,605 — — 
Total$228,914 $10,605 $— $84,442 
March 31, 2024
Payment Status (Amortized Cost Basis)
(dollars in thousands)Current30-89 Days Past Due90 Days or More Past DueNonaccrual
Commercial$37,308 $1,467 $— $— 
Income producing - commercial real estate104,463 — — 66,136 
Owner occupied - commercial real estate— — — 19,127 
Construction - commercial and residential— 6,532 — — 
Real estate mortgage - residential2,478 — — — 
Total$144,249 $7,999 $— $85,263 
Schedule of Amortized Cost Basis of Loan Had a Payment Default
The following table presents the amortized cost basis of HFI loans that were experiencing payment default as of March 31, 2025 and December 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty:
March 31, 2025
Amortized Cost Basis
(dollars in thousands)Term ExtensionCombination - Term Extension and Principal Payment DelayCombination - Term Extension, Principal Payment Delay and Interest Rate Reduction
Income producing - commercial real estate$— $84,442 $— 
Construction - commercial and residential— 10,605 — 
Total$— $95,047 $— 
December 31, 2024
Amortized Cost Basis
(dollars in thousands)Term ExtensionCombination - Term Extension and Principal Payment DelayCombination - Term Extension, Principal Payment Delay and Interest Rate Reduction
Commercial$5,384 $— $— 
Income producing - commercial real estate— 131,730 — 
Total$5,384 $131,730 $—