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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Loans, Net of Unamortized Net Deferred Fees
Loans, net of unamortized net deferred fees, at March 31, 2023 and December 31, 2022 are summarized by type as follows:
March 31, 2023December 31, 2022
(dollars in thousands, except amounts in the footnote)Amount%Amount%
Commercial$1,482,983 19 %$1,487,349 19 %
PPP loans709 — %3,256 — %
Income-producing - commercial real estate3,970,903 51 %3,919,941 51 %
Owner-occupied - commercial real estate1,095,699 14 %1,110,325 15 %
Real estate mortgage - residential73,677 1 %73,001 1 %
Construction - commercial and residential948,877 13 %877,755 12 %
Construction - C&I (owner-occupied)109,013 1 %110,479 1 %
Home equity53,829 1 %51,782 1 %
Other consumer1,986 — %1,744 — %
Total loans7,737,676 100 %7,635,632 100 %
Less: allowance for credit losses(78,377)(74,444)
Net loans (1)
$7,659,299 $7,561,188 
(1)Excludes accrued interest receivable of $43.9 million and $43.5 million at March 31, 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 tables detail activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 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 March 31, 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(868)— — — (136)— (50)(1,054)
Recoveries of loans previously charged-off76 — — — — — 3 79 
Net loans (charged-off) recovered(792)— — — (136)— (47)(975)
Provision for (reversal of) credit losses912 2,452 (245)33 1,718 38 — 4,908 
Ending balance$15,775 $38,140 $12,457 $1,002 $10,383 $593 $27 $78,377 
Three Months Ended March 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(514)— — — — — — (514)
Recoveries of loans previously charged-off54 — — — — — 1 55 
Net loans (charged-off) recovered(460)— — — — — 1 (459)
Provision for (reversal of) credit losses(1,069)906 (1,631)(68)(1,126)(7)(6)(3,001)
Ending balance$12,946 $39,193 $10,515 $381 $7,973 $467 $30 $71,505 
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 March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
Business/OtherBusiness/Other
(dollars in thousands)AssetsReal EstateAssetsReal Estate
Commercial$2,223 $995 $1,563 $1,871 
Income-producing - commercial real estate2,000 4,325 2,000 4,328 
Owner-occupied - commercial real estate— 19,184 — 19,187 
Real estate mortgage - residential— 1,698 — 1,698 
Construction - commercial and residential— 533 — — 
Other consumer— — 50 — 
Total$4,223 $26,735 $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
March 31, 2023
Commercial
Pass$207,824 $56,608 $61,430 $237,660 $160,051 $24,643 $719,939 $6,499 $1,474,654 
Special Mention— — — — 77 — 4,976 — 5,053 
Substandard2,197 264 — 340 — — 199 276 3,276 
Total210,021 56,872 61,430 238,000 160,128 24,643 725,114 6,775 1,482,983 
YTD Gross Charge-offs(868)— — — — — — — (868)
PPP loans
Pass— — — 709 — — — — 709 
Income producing - commercial real estate
Pass1,431,756 494,678 366,302 528,962 696,291 114,213 199,847 5,275 3,837,324 
Special Mention12,376 4,195 6,734 — — — 47,674 — 70,979 
Substandard62,600 — — — — — — — 62,600 
Total1,506,732 498,873 373,036 528,962 696,291 114,213 247,521 5,275 3,970,903 
Owner occupied - commercial real estate
Pass648,931 110,870 39,752 207,696 39,939 5,048 1,551 22,169 1,075,956 
Substandard19,743 — — — — — — — 19,743 
Total668,674 110,870 39,752 207,696 39,939 5,048 1,551 22,169 1,095,699 
Real estate mortgage - residential
Pass28,363 8,162 2,626 16,402 14,362 2,064 — — 71,979 
Substandard1,698 — — — — — — — 1,698 
Total30,061 8,162 2,626 16,402 14,362 2,064 — — 73,677 
Construction - commercial and residential
Pass110,247 92,940 155,158 250,206 239,367 910 99,516 — 948,344 
Substandard533 — — — — — — — — 533 
Total110,780 92,940 155,158 250,206 239,367 910 99,516 — 948,877 
YTD Gross Charge-offs(136)— — — — — — — (136)
Construction - C&I (owner occupied)
Pass19,548 11,754 33,609 647 35,170 1,815 6,470 — 109,013 
Total19,548 11,754 33,609 647 35,170 1,815 6,470 — 109,013 
Home equity
Pass2,300 — 248 376 686 — 49,649 470 53,729 
Substandard— 39 — — — — 61 — 100 
Total2,300 39 248 376 686 — 49,710 470 53,829 
Other consumer
Pass7 — — — 118 — 1,861 — 1,986 
Total7 — — — 118 — 1,861 — 1,986 
YTD Gross Charge-offs(50)— — — — — — — (50)
Total Recorded Investment$2,548,123 $779,510 $665,859 $1,242,998 $1,186,061 $148,693 $1,131,743 $34,689 $7,737,676 
Total YTD Gross Charge-offs$(1,054)$— $— $— $— $— $— $— $(1,054)
(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 as of March 31, 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
March 31, 2023
Commercial$778 $524 $— $1,302 $1,479,387 $2,294 $1,482,983 
PPP loans— — — — 709 — 709 
Income producing - commercial real estate (1)
14,018 — — 14,018 3,954,885 2,000 3,970,903 
Owner occupied - commercial real estate— 279 — 279 1,095,406 14 1,095,699 
Real estate mortgage - residential— — — — 71,762 1,915 73,677 
Construction - commercial and residential— — — — 948,344 533 948,877 
Construction - C&I (owner occupied)— — — — 109,013 — 109,013 
Home equity48 — — 48 53,781 — 53,829 
Other consumer— — — — 1,986 — 1,986 
Total$14,844 $803 $— $15,647 $7,715,273 $6,756 $7,737,676 
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 
(1)The increase in the 30-59 days past due category in the income producing - commercial real estate loans is one credit for $14.0 million which became past due in the first quarter of 2023, and was brought current in April 2023.
Schedule of Information Related to Nonaccrual Loans by Class
The following presents the nonaccrual loans as of March 31, 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
March 31, 2023
Commercial$91 $2,203 $2,294 
Income producing - commercial real estate— 2,000 2,000 
Owner occupied - commercial real estate14 — 14 
Real estate mortgage - residential— 1,915 1,915 
Construction - commercial and residential— 533 533 
Total (1)
$105 $6,651 $6,756 
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 $182 thousand and approximately $325 thousand would have been recorded for the three months ended March 31, 2023 and 2022, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while no interest income was actually recorded on such loans for the three months ended March 31, 2023 and 2022. See Note 1 to the Consolidated Financial Statements for a description of the Company's policy for placing loans on nonaccrual status.
Schedule of Loans Modified in Troubled Debt Restructurings
The following table presents the amortized cost basis of loan restructurings at March 31, 2023 that were both experiencing financial difficulty and modified during the three months ended March 31, 2023.
(dollars in thousands)Principal ForgivenessTerm ExtensionCombination Term Extension and Principal Payment DelayWeighted Average Term ExtensionInterest Rate ReductionRestructured Loans/Total Loan Portfolio
Accruing Restructured Loans
Commercial$— $21,744 $— 3 months$— 0.3 %
Income producing - commercial real estate— 7,211 60,139 4 months— 0.9 %
Owner occupied - commercial real estate— — 19,170 3 months— 0.2 %
Total$— $28,955 $79,309 $— 1.4 %
The following presents the performance of loans restructured to borrowers experiencing financial difficulty by class of loan during the three months ended March 31, 2023:
Payment Status (Amortized Cost Basis)Payment Status (Amortized Cost Basis)
(dollars in thousands)Current30-89 Days Past Due90+ Days Past Due
Accruing Restructured Loans
Commercial$21,744 $— $— 
Income producing - commercial real estate67,350 — — 
Owner occupied - commercial real estate19,170 — — 
Total$108,264 $— $—