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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of Loans, Net of Unamortized Net Deferred Fees
Loans, net of unamortized deferred fees and costs, at March 31, 2024 and December 31, 2023 are summarized by portfolio segment as follows:
March 31, 2024December 31, 2023
(dollars in thousands, except amounts in the footnote)Amount%Amount%
Commercial$1,408,767 18 %$1,473,766 18 %
PPP loans467 — %528 — %
Income-producing - commercial real estate4,040,655 50 %4,094,614 51 %
Owner-occupied - commercial real estate1,185,582 15 %1,172,239 15 %
Real estate mortgage - residential72,087 1 %73,396 1 %
Construction - commercial and residential1,082,556 13 %969,766 12 %
Construction - C&I (owner-occupied)138,379 2 %132,021 2 %
Home equity53,251 1 %51,964 1 %
Other consumer958 — %401 — %
Total loans7,982,702 100 %7,968,695 100 %
Less: allowance for credit losses(99,684)(85,940)
Net loans (1)
$7,883,018 $7,882,755 
(1)Excludes accrued interest receivable of $46.3 million and $45.3 million at March 31, 2024 and December 31, 2023, 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, 2024 and 2023. 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 ResidentialConstruction - C&I (Owner-Occupied)Home EquityOther ConsumerTotal
Three Months Ended March 31, 2024
Allowance for credit losses:
Balance at beginning of period$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) 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 
Three Months Ended March 31, 2023
Allowance for credit losses:
Balance at beginning of period$15,655 $35,688 $12,702 $969 $7,195 $1,606 $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 1,682 36 38 — 4,908 
Ending balance$15,775 $38,140 $12,457 $1,002 $8,741 $1,642 $593 $27 $78,377 
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, 2024 and December 31, 2023:
March 31, 2024December 31, 2023
Business/OtherBusiness/Other
(dollars in thousands)AssetsReal EstateAssetsReal Estate
Commercial$1,532 $1,218 $1,674 $1,240 
Income-producing - commercial real estate878 66,724 1,754 39,172 
Owner-occupied - commercial real estate— 19,798 — 19,836 
Real estate mortgage - residential— 1,692 — 1,692 
Construction - commercial and residential— — — 525 
Home equity— 237 — 242 
Total$2,410 $89,669 $3,428 $62,707 
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, along with any charge-offs that were recorded in the applicable loan segment, if applicable, were as follows:
(dollars in thousands)Prior20202021202220232024Revolving Loans Amort. Cost BasisRevolving Loans Convert. to TermTotal
March 31, 2024
Commercial
Pass$193,755 $35,451 $174,103 $141,181 $187,057 $24,604 $569,226 $1,154 $1,326,531 
Special Mention8,493 — — — — — 4,286 8,058 20,837 
Substandard13,771 9,371 1,538 281 — — 36,438 — 61,399 
Total216,019 44,822 175,641 141,462 187,057 24,604 609,950 9,212 1,408,767 
YTD gross charge-offs(396)— — — — — (100)— (496)
PPP loans
Pass— — 467 — — — — — 467 
Income producing - commercial real estate
Pass1,452,244 308,573 559,404 755,375 299,264 26,251 243,343 19,359 3,663,813 
Special Mention170,118 6,744 — — — — — — 176,862 
Substandard199,980 — — — — — — — 199,980 
Total1,822,342 315,317 559,404 755,375 299,264 26,251 243,343 19,359 4,040,655 
YTD gross charge-offs(20,943)— — — — — — — (20,943)
Owner occupied - commercial real estate
Pass628,063 34,703 222,361 41,514 126,663 4,590 515 — 1,058,409 
Special Mention61,117 — — — — — — — 61,117 
Substandard64,791 1,265 — — — — — — 66,056 
Total753,971 35,968 222,361 41,514 126,663 4,590 515 — 1,185,582 
Real estate mortgage - residential
Pass29,496 2,175 15,668 14,689 5,889 — — — 67,917 
Substandard4,170 — — — — — — — 4,170 
Total33,666 2,175 15,668 14,689 5,889 — — — 72,087 
Construction - commercial and residential
Pass77,388 11,101 241,373 485,461 89,757 3,874 136,092 1,177 1,046,223 
Special Mention6,532 — — — — — — — 6,532 
Substandard— 29,801 — — — — — — 29,801 
Total83,920 40,902 241,373 485,461 89,757 3,874 136,092 1,177 1,082,556 
YTD gross charge-offs(129)— — — — — — — (129)
Construction - C&I (owner occupied)
Pass26,151 56,094 615 33,242 15,084 — 7,193 — 138,379 
Home equity
Pass1,758 86 185 117 — — 50,589 146 52,881 
Substandard71 — 237 — — — 62 — 370 
Total1,829 86 422 117 — — 50,651 146 53,251 
Other consumer
Pass2 — — — — — 956 — 958 
Total2 — — — — — 956 — 958 
YTD gross charge-offs— — — — — — — (1)(1)
Total recorded investment$2,937,900 $495,364 $1,215,951 $1,471,860 $723,714 $59,319 $1,048,700 $29,894 $7,982,702 
Total YTD gross charge-offs$(21,468)$— $— $— $— $— $(100)$(1)$(21,569)
(dollars in thousands)Prior20192020202120222023Revolving 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 Mention54,288 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 
Substandard8,124 — — — — — — — 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 
Total1 — — — 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)
Schedule of Information Related to Nonaccrual Loans by Class
The following table presents, by portfolio segment the nonaccrual loans on an amortized cost basis as of March 31, 2024 and December 31, 2023:
(dollars in thousands, except amounts in footnotes)Nonaccrual with No Allowance for Credit LossesNonaccrual with an Allowance for Credit LossesTotal Nonaccrual Loans
March 31, 2024
Commercial$1,045 $875 $1,920 
Income producing - commercial real estate67,602 — 67,602 
Owner occupied - commercial real estate19,798 — 19,798 
Real estate mortgage - residential— 1,934 1,934 
Home equity237 — 237 
Total (1)
$88,682 $2,809 $91,491 
December 31, 2023
Commercial$1,002 $1,047 $2,049 
Income producing - commercial real estate40,926 — 40,926 
Owner occupied - commercial real estate19,836 — 19,836 
Real estate mortgage - residential— 1,946 1,946 
Construction - commercial and residential— 525 525 
Home equity242 — 242 
Total (1)
$62,006 $3,518 $65,524 
(1)Gross coupon interest income of approximately $1.3 million and $182 thousand would have been recorded for the three months ended March 31, 2024 and 2023, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while no coupon interest income was actually recorded on such loans for the three months ended March 31, 2024 and 2023, respectively.
Schedule by Class of Loan, an Aging Analysis and the Recorded Investments in Loans Past Due
The table presents, by portfolio segment, an aging analysis and the recorded investments in loans past due on an amortized cost basis as of March 31, 2024 and December 31, 2023:
(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, 2024
Commercial$11,175 $— $— $11,175 $1,395,672 $1,920 $1,408,767 
PPP loans— — — — 467 — 467 
Income producing - commercial real estate11,106 — — 11,106 3,961,947 67,602 4,040,655 
Owner occupied - commercial real estate— — — — 1,165,784 19,798 1,185,582 
Real estate mortgage - residential199 — — 199 69,954 1,934 72,087 
Construction - commercial and residential8,590 — — 8,590 1,073,966 — 1,082,556 
Construction - C&I (owner occupied)— — — — 138,379 — 138,379 
Home equity— 36 — 36 52,978 237 53,251 
Other consumer2 — — 2 956 — 958 
Total$31,072 $36 $— $31,108 $7,860,103 $91,491 $7,982,702 
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 
Schedule of Loans Modified in Troubled Debt Restructurings
The following tables present the amortized cost basis as of March 31, 2024 and 2023 and the financial effect of loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023:
March 31, 2024
(dollars in thousands)Term ExtensionCombination - Term Extension and Principal Payment DelayTotalPercentage of Total Loan Type
Weighted Average Term and Principal Payment Extension
Three months ended 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 
March 31, 2023
(dollars in thousands)Term ExtensionCombination - Term Extension and Principal Payment DelayTotalPercentage of Total Loan Type
Weighted Average Term and Principal Payment Extension
Three months ended March 31, 2023:
Commercial$21,744 $— $21,744 1.5 %3 months
Income producing - commercial real estate
7,211 60,139 67,350 1.7 %4 months
Owner occupied - commercial real estate— 19,170 19,170 1.8 %3 months
Total$28,955 $79,309 $108,264 
The following table presents the performance of loans modified during the prior twelve months to borrowers experiencing financial difficulty:
March 31, 2024
Payment Status (Amortized Cost Basis)
(dollars in thousands)Current30-89 Days Past DueNonaccrual
Commercial$37,308 $1,467 $— 
Income producing - commercial real estate104,463 — 66,136 
Owner occupied - commercial real estate— — 19,127 
Real estate mortgage - residential
2,478 — — 
Construction - commercial and residential— 6,532 — 
Total$144,249 $7,999 $85,263 
Financing Receivable, 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 March 31, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty:
March 31, 2024
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
$— $1,467 $— 
Income producing - commercial real estate— — 66,136 
Owner occupied - commercial real estate— 19,127 — 
Construction - commercial and residential
6,532 — — 
Total$6,532 $20,594 $66,136