Loans (Tables)

6 Months Ended

Jun. 30, 2024

Loans

Schedule of loan portfolio composition including carrying value by segment

The tables below show the loan portfolio composition including carrying value by segment as of the dates shown. The carrying value of loans is net of discounts, fees, costs and fair value marks of $33.0 million and $33.6 million as of June 30, 2024 and December 31, 2023, respectively.

	June 30, 2024
	Total loans		% of total
Commercial	$	4,544,667	58.9%
Commercial real estate non-owner occupied		1,868,464	24.2%
Residential real estate		1,292,316	16.7%
Consumer		16,706	0.2%
Total	$	7,722,153	100.0%

	December 31, 2023
	Total loans		% of total
Commercial	$	4,499,035	58.4%
Commercial real estate non-owner occupied		1,856,750	24.1%
Residential real estate		1,323,787	17.2%
Consumer		19,186	0.3%
Total	$	7,698,758	100.0%

Schedule of information about delinquent and non-accrual loans

Information about delinquent and non-accrual loans is shown in the following tables at June 30, 2024 and December 31, 2023:

	June 30, 2024
			Greater
	30-89 days		than 90 days				Total past
	past due and		past due and		Non-accrual		due and
	accruing		accruing		loans		non-accrual		Current		Total loans
Commercial:
Commercial and industrial	$	9,263	$	757	$	9,059	$	19,079	$	2,011,120	$	2,030,199
Municipal and non-profit		—		—		—		—		1,063,994		1,063,994
Owner occupied commercial real estate		4,756		—		800		5,556		1,148,456		1,154,012
Food and agribusiness		154		—		5,096		5,250		291,212		296,462
Total commercial		14,173		757		14,955		29,885		4,514,782		4,544,667
Commercial real estate non-owner occupied:
Construction		5,491		—		—		5,491		342,358		347,849
Acquisition/development		2,706		257		—		2,963		86,625		89,588
Multifamily		1,308		—		—		1,308		354,495		355,803
Non-owner occupied		829		—		5,769		6,598		1,068,626		1,075,224
Total commercial real estate and non-owner occupied		10,334		257		5,769		16,360		1,852,104		1,868,464
Residential real estate:
Senior lien		2,216		—		4,672		6,888		1,195,162		1,202,050
Junior lien		291		2,484		617		3,392		86,874		90,266
Total residential real estate		2,507		2,484		5,289		10,280		1,282,036		1,292,316
Consumer		145		—		44		189		16,517		16,706
Total loans	$	27,159	$	3,498	$	26,057	$	56,714	$	7,665,439	$	7,722,153

	June 30, 2024
	Non-accrual loans		Non-accrual loans
	with a related		with no related
	allowance for		allowance for		Non-accrual
	credit loss		credit loss		loans
Commercial:
Commercial and industrial	$	8,998	$	61	$	9,059
Owner occupied commercial real estate		800		—		800
Food and agribusiness		4,510		586		5,096
Total commercial		14,308		647		14,955
Commercial real estate non-owner occupied:
Non-owner occupied		—		5,769		5,769
Total commercial real estate non-owner occupied		—		5,769		5,769
Residential real estate:
Senior lien		2,850		1,822		4,672
Junior lien		394		223		617
Total residential real estate		3,244		2,045		5,289
Consumer		44		—		44
Total loans	$	17,596	$	8,461	$	26,057

	December 31, 2023
			Greater
	30-89 days		than 90 days				Total past
	past due and		past due and		Non-accrual		due and
	accruing		accruing		loans		non-accrual		Current		Total loans
Commercial:
Commercial and industrial	$	9,179	$	—	$	2,250	$	11,429	$	1,955,480	$	1,966,909
Municipal and non-profit		—		—		—		—		1,083,756		1,083,756
Owner occupied commercial real estate		—		—		755		755		1,123,018		1,123,773
Food and agribusiness		—		12		5,762		5,774		318,823		324,597
Total commercial		9,179		12		8,767		17,958		4,481,077		4,499,035
Commercial real estate non-owner occupied:
Construction		—		—		—		—		405,250		405,250
Acquisition/development		1,077		—		—		1,077		99,019		100,096
Multifamily		—		—		—		—		311,770		311,770
Non-owner occupied		60		—		13,472		13,532		1,026,102		1,039,634
Total commercial real estate and non-owner occupied		1,137		—		13,472		14,609		1,842,141		1,856,750
Residential real estate:
Senior lien		1,410		50		5,488		6,948		1,226,651		1,233,599
Junior lien		375		528		448		1,351		88,837		90,188
Total residential real estate		1,785		578		5,936		8,299		1,315,488		1,323,787
Consumer		131		1		53		185		19,001		19,186
Total loans	$	12,232	$	591	$	28,228	$	41,051	$	7,657,707	$	7,698,758

	December 31, 2023
	Non-accrual loans		Non-accrual loans
	with a related		with no related
	allowance for		allowance for		Non-accrual
	credit loss		credit loss		loans
Commercial:
Commercial and industrial	$	2,250	$	—	$	2,250
Owner occupied commercial real estate		755		—		755
Food and agribusiness		5,176		586		5,762
Total commercial		8,181		586		8,767
Commercial real estate non-owner occupied:
Non-owner occupied		13,472		—		13,472
Total commercial real estate non-owner occupied		13,472		—		13,472
Residential real estate:
Senior lien		3,277		2,211		5,488
Junior lien		448		—		448
Total residential real estate		3,725		2,211		5,936
Consumer		53		—		53
Total loans	$	25,431	$	2,797	$	28,228

Schedule of the amortized cost basis and current period gross charge-offs for all loans as determined by the Company's internal risk rating system and year of origination

The amortized cost basis and current period gross charge-offs for all loans as determined by the Company’s internal risk rating system and year of origination is shown in the following tables as of and for the six months ended June 30, 2024 and the year ended December 31, 2023:

	June 30, 2024
													Revolving		Revolving
													loans		loans
	Origination year												amortized		converted
	2024		2023		2022		2021		2020		Prior		cost basis		to term		Total
Commercial:
Commercial and industrial:
Pass	$	307,550	$	285,831	$	351,940	$	256,960	$	73,723	$	128,186	$	470,986	$	17,592	$	1,892,768
Special mention		1,500		15,824		18,355		32,274		10,992		3,078		17,441		1,401		100,865
Substandard		3,485		13,098		10,921		1,547		2,796		559		806		23		33,235
Doubtful		—		2,033		98		46		1,154		—		—		—		3,331
Total commercial and industrial		312,535		316,786		381,314		290,827		88,665		131,823		489,233		19,016		2,030,199
Gross charge-offs: Commercial and industrial		—		—		—		—		—		24		—		—		24
Municipal and non-profit:
Pass		28,160		145,132		141,353		231,495		78,300		402,624		34,932		—		1,061,996
Special mention		—		—		—		—		1,998		—		—		—		1,998
Total municipal and non-profit		28,160		145,132		141,353		231,495		80,298		402,624		34,932		—		1,063,994
Owner occupied commercial real estate:
Pass		111,238		222,527		237,618		158,182		86,996		236,153		18,053		995		1,071,762
Special mention		197		3,001		22,225		17,680		3,173		29,177		845		—		76,298
Substandard		—		—		2,059		661		—		2,715		—		—		5,435
Doubtful		—		—		24		—		—		493		—		—		517
Total owner occupied commercial real estate		111,435		225,528		261,926		176,523		90,169		268,538		18,898		995		1,154,012
Food and agribusiness:
Pass		5,007		11,614		75,344		11,230		6,191		33,210		134,669		1,261		278,526
Special mention		—		—		—		4,327		—		8,513		—		—		12,840
Substandard		—		—		—		586		—		8		1,772		—		2,366
Doubtful		—		—		—		—		—		—		2,730		—		2,730
Total food and agribusiness		5,007		11,614		75,344		16,143		6,191		41,731		139,171		1,261		296,462
Total commercial		457,137		699,060		859,937		714,988		265,323		844,716		682,234		21,272		4,544,667
Gross charge-offs: Commercial		—		—		—		—		—		24		—		—		24
Commercial real estate non-owner occupied:
Construction:
Pass		6,246		74,616		105,381		41,638		69,106		—		46,940		—		343,927
Special mention		—		—		3,922		—		—		—		—		—		3,922
Total construction		6,246		74,616		109,303		41,638		69,106		—		46,940		—		347,849
Acquisition/development:
Pass		8,091		6,653		37,032		22,748		2,488		7,934		199		1,025		86,170
Special mention		—		—		1,077		—		—		—		—		2,341		3,418
Total acquisition/development		8,091		6,653		38,109		22,748		2,488		7,934		199		3,366		89,588
Multifamily:
Pass		7,473		16,460		149,730		100,496		16,784		47,823		1,473		—		340,239
Special mention		—		—		11,732		3,832		—		—		—		—		15,564
Total multifamily		7,473		16,460		161,462		104,328		16,784		47,823		1,473		—		355,803
Non-owner occupied
Pass		12,559		110,620		286,408		145,473		78,641		351,705		6,974		—		992,380
Special mention		—		12,290		9,376		14,928		26,755		4,085		—		—		67,434
Substandard		—		—		—		5,769		—		9,395		—		—		15,164
Doubtful		—		—		—		—		—		246		—		—		246
Total non-owner occupied		12,559		122,910		295,784		166,170		105,396		365,431		6,974		—		1,075,224
Gross charge-offs: Non-owner occupied		—		—		—		—		—		4,422		—		—		4,422
Total commercial real estate non-owner occupied		34,369		220,639		604,658		334,884		193,774		421,188		55,586		3,366		1,868,464
Gross charge-offs: Commercial real estate and non-owner occupied		—		—		—		—		—		4,422		—		—		4,422
Residential real estate:
Senior lien
Pass		21,226		90,995		432,767		304,454		107,959		193,449		45,254		243		1,196,347
Special mention		—		—		—		—		—		18		—		—		18
Substandard		23		666		1,454		958		408		2,147		—		—		5,656
Doubtful		—		—		—		—		—		29		—		—		29
Total senior lien		21,249		91,661		434,221		305,412		108,367		195,643		45,254		243		1,202,050
Junior lien
Pass		3,908		3,590		4,784		1,624		2,032		6,212		63,955		591		86,696
Special mention		—		—		1,485		—		—		27		—		438		1,950
Substandard		—		—		1,140		223		5		252		—		—		1,620
Total junior lien		3,908		3,590		7,409		1,847		2,037		6,491		63,955		1,029		90,266
Total residential real estate		25,157		95,251		441,630		307,259		110,404		202,134		109,209		1,272		1,292,316

Consumer
Pass		3,554		3,106		2,135		1,638		729		334		4,867		299		16,662
Substandard		—		—		—		—		—		44		—		—		44
Total consumer		3,554		3,106		2,135		1,638		729		378		4,867		299		16,706
Gross charge-offs: Consumer		375		18		4		3		—		37		—		—		437
Total loans	$	520,217	$	1,018,056	$	1,908,360	$	1,358,769	$	570,230	$	1,468,416	$	851,896	$	26,209	$	7,722,153
Gross charge-offs: Total loans		375		18		4		3		—		4,483		—		—		4,883

	December 31, 2023
													Revolving		Revolving
													loans		loans
	Origination year												amortized		converted
	2023		2022		2021		2020		2019		Prior		cost basis		to term		Total
Commercial:
Commercial and industrial:
Pass	$	348,103	$	396,618	$	271,201	$	87,234	$	41,261	$	106,711	$	563,924	$	31,620	$	1,846,672
Special mention		4,775		12,259		31,895		20,340		2,202		683		18,344		3,470		93,968
Substandard		13,729		4,555		4,248		1,314		179		347		910		—		25,282
Doubtful		600		—		—		387		—		—		—		—		987
Total commercial and industrial		367,207		413,432		307,344		109,275		43,642		107,741		583,178		35,090		1,966,909
Gross charge-offs: Commercial and industrial		—		12		215		—		47		3		—		—		277
Municipal and non-profit:
Pass		139,591		140,626		246,088		82,590		53,460		389,867		31,534		—		1,083,756
Total municipal and non-profit		139,591		140,626		246,088		82,590		53,460		389,867		31,534		—		1,083,756
Owner occupied commercial real estate:
Pass		236,897		275,644		181,472		97,523		86,761		163,997		18,281		—		1,060,575
Special mention		2,074		19,191		7,808		—		2,650		27,653		—		—		59,376
Substandard		—		515		1,732		—		687		234		—		—		3,168
Doubtful		—		6		—		—		—		648		—		—		654
Total owner occupied commercial real estate		238,971		295,356		191,012		97,523		90,098		192,532		18,281		—		1,123,773
Food and agribusiness:
Pass		16,917		69,212		14,159		15,379		10,417		34,592		149,125		51		309,852
Special mention		—		—		4,646		—		—		3,724		450		—		8,820
Substandard		—		—		586		—		—		180		1,786		—		2,552
Doubtful		—		—		—		—		—		—		3,373		—		3,373
Total food and agribusiness		16,917		69,212		19,391		15,379		10,417		38,496		154,734		51		324,597
Total commercial		762,686		918,626		763,835		304,767		197,617		728,636		787,727		35,141		4,499,035
Gross charge-offs: Commercial		—		12		215		—		47		3		—		—		277
Commercial real estate non-owner occupied:
Construction:
Pass		43,385		190,826		59,477		63,486		1,006		—		47,070		—		405,250
Total construction		43,385		190,826		59,477		63,486		1,006		—		47,070		—		405,250
Acquisition/development:
Pass		13,228		39,000		21,011		5,992		597		8,814		7,416		2,961		99,019
Special mention		—		1,077		—		—		—		—		—		—		1,077
Total acquisition/development		13,228		40,077		21,011		5,992		597		8,814		7,416		2,961		100,096
Multifamily:
Pass		16,450		113,936		92,574		16,938		39,371		31,671		830		—		311,770
Total multifamily		16,450		113,936		92,574		16,938		39,371		31,671		830		—		311,770
Non-owner occupied
Pass		116,168		241,563		172,042		91,188		124,291		236,694		6,694		—		988,640
Special mention		—		—		—		21,268		3,876		2,489		—		—		27,633
Substandard		—		—		—		—		—		19,848		—		—		19,848
Doubtful		—		—		—		280		—		3,233		—		—		3,513
Total non-owner occupied		116,168		241,563		172,042		112,736		128,167		262,264		6,694		—		1,039,634
Total commercial real estate non-owner occupied		189,231		586,402		345,104		199,152		169,141		302,749		62,010		2,961		1,856,750
Residential real estate:
Senior lien
Pass		87,608		434,963		316,080		112,582		42,752		183,890		48,462		94		1,226,431
Special mention		—		—		—		—		—		515		—		—		515
Substandard		1,555		1,119		740		415		620		2,167		—		—		6,616
Doubtful		—		—		—		—		—		37		—		—		37
Total senior lien		89,163		436,082		316,820		112,997		43,372		186,609		48,462		94		1,233,599
Gross charge-offs: Senior lien		—		—		—		—		—		48		—		—		48
Junior lien
Pass		4,920		4,464		1,712		2,947		2,270		4,729		66,441		684		88,167
Special mention		—		—		—		—		—		27		249		—		276
Substandard		263		149		236		758		—		339		—		—		1,745
Total junior lien		5,183		4,613		1,948		3,705		2,270		5,095		66,690		684		90,188
Total residential real estate		94,346		440,695		318,768		116,702		45,642		191,704		115,152		778		1,323,787
Gross charge-offs: Residential real estate		—		—		—		—		—		48		—		—		48
Consumer
Pass		5,945		3,330		2,233		997		244		410		5,947		27		19,133
Substandard		—		—		—		—		—		50		3		—		53
Total consumer		5,945		3,330		2,233		997		244		460		5,950		27		19,186
Gross charge-offs: Consumer		1,225		13		1		2		1		8		—		—		1,250
Total loans	$	1,052,208	$	1,949,053	$	1,429,940	$	621,618	$	412,644	$	1,223,549	$	970,839	$	38,907	$	7,698,758
Gross charge-offs: Total loans		1,225		25		216		2		48		59		—		—		1,575

Schedule of collateral dependent loans

The amortized cost basis of collateral-dependent loans over $250 thousand was as follows at June 30, 2024 and December 31, 2023:

	June 30, 2024
					Total amortized
	Real property		Business assets		cost basis
Commercial
Commercial and industrial	$	2,904	$	5,881	$	8,785
Owner-occupied commercial real estate		1,868		—		1,868
Food and agribusiness		586		4,502		5,088
Total Commercial		5,358		10,383		15,741
Commercial real estate non owner-occupied
Non-owner occupied		11,052		—		11,052
Total commercial real estate non owner-occupied		11,052		—		11,052
Residential real estate
Senior lien		3,125		—		3,125
Junior lien		184		39		223
Total residential real estate		3,309		39		3,348
Total loans	$	19,719	$	10,422	$	30,141

	December 31, 2023
					Total amortized
	Real property		Business assets		cost basis
Commercial
Commercial and industrial	$	1,946	$	220	$	2,166
Owner-occupied commercial real estate		1,883		—		1,883
Food and agribusiness		586		5,159		5,745
Total Commercial		4,415		5,379		9,794
Commercial real estate non owner-occupied
Non-owner occupied		19,993		—		19,993
Total commercial real estate non owner-occupied		19,993		—		19,993
Residential real estate
Senior lien		2,661		—		2,661
Total residential real estate		2,661		—		2,661
Total loans	$	27,069	$	5,379	$	32,448

Schedule of modified loans to borrowers experiencing financial difficulty

	As of and for the three months ended June 30, 2024
				Combination - interest rate
	Term extension			reduction and term extension
	Amortized		% of loan	Amortized		% of loan
	cost basis		class	cost basis		class
Commercial:
Commercial and industrial	$	7,765	0.4%	$	—	0.0%
Total commercial		7,765	0.2%		—	0.0%
Commercial real estate non-owner occupied:
Non-owner occupied		171	0.0%		—	0.0%
Total commercial real estate non-owner occupied		171	0.0%		—	0.0%
Residential real estate:
Senior lien		—	0.0%		23	0.0%
Total residential real estate		—	0.0%		23	0.0%
Total loans	$	7,936	0.1%	$	23	0.0%

	As of and for the six months ended June 30, 2024
							Combination - interest rate			Combination - term extension
	Term extension			Payment delay			reduction and term extension			and payment delay
	Amortized		% of loan	Amortized		% of loan	Amortized		% of loan	Amortized		% of loan
	cost basis		class	cost basis		class	cost basis		class	cost basis		class
Commercial:
Commercial and industrial	$	7,765	0.4%	$	—	0.0%	$	—	0.0%	$	—	0.0%
Owner occupied commercial real estate		—	0.0%		1,664	0.1%		—	0.0%		—	0.0%
Total commercial		7,765	0.2%		1,664	0.0%		—	0.0%		—	0.0%
Commercial real estate non-owner occupied:
Non-owner occupied		5,454	0.5%		—	0.0%		—	0.0%		—	0.0%
Total commercial real estate non-owner occupied		5,454	0.3%		—	0.0%		—	0.0%		—	0.0%
Residential real estate:
Senior lien		—	0.0%		857	0.1%		23	0.0%		382	0.0%
Total residential real estate		—	0.0%		857	0.1%		23	0.0%		382	0.0%
Total loans	$	13,219	0.2%	$	2,521	0.0%	$	23	0.0%	$	382	0.0%

	June 30, 2023
	Term extension			Payment delay
	Amortized		% of loan	Amortized		% of loan
	cost basis		class	cost basis		class
Commercial:
Commercial and industrial	$	—	0.0%	$	136	0.0%
Total commercial		—	0.0%		136	0.0%
Commercial real estate non-owner occupied:
Non-owner occupied		18,770	1.7%		—	0.0%
Total commercial real estate non-owner occupied		18,770	1.0%		—	0.0%
Total loans	$	18,770	0.3%	$	136	0.0%

Schedule of payment status of loans

	June 30, 2024
	Current		Non-accrual
Commercial:
Commercial and industrial	$	10,638	$	5,354
Owner occupied commercial real estate		1,664		—
Total commercial		12,302		5,354
Commercial real estate non-owner occupied:
Non-owner occupied		5,454		—
Total commercial real estate non-owner occupied		5,454		—
Residential real estate:
Senior lien		1,506		404
Total loans	$	19,262	$	5,758

	June 30, 2023
	Current		Non-accrual
Commercial:
Commercial and industrial	$	136	$	—
Total commercial		136		—
Commercial real estate non-owner occupied:
Non-owner occupied		18,770		—
Total commercial real estate non-owner occupied		18,770		—
Total loans	$	18,906	$	—

Schedule of financial effect of the modifications made to borrowers experiencing financial difficulty

	As of and for the three months ended June 30, 2024			As of and for the six months ended June 30, 2024
	Financial effect			Financial effect
		Term extension	Combination - Interest Rate Reduction and Term Extension		Term extension	Payment delay	Combination - Interest Rate Reduction and Term Extension	Combination - Term Extension and Payment Delay
Commercial:
Commercial and industrial		Extended a weighted average of 0.6 years to the life of loans, which reduced monthly payment amounts			Extended a weighted average of 0.6 years to the life of loans, which reduced monthly payment amounts
Owner occupied commercial real estate						Delayed payments for a weighted average of 0.5 years
Commercial real estate non-owner occupied:
Non-owner occupied		Extended a weighted average of 7.5 years to the life of loans, which reduced monthly payment amounts			Extended a weighted average of 0.9 years to the life of loans, which reduced monthly payment amounts
Residential real estate:
Senior lien			Reduced weighted average contractual interest rate by 1.5% and extended a weighted average of 11 years to the life of loans, which reduced monthly payment amounts			Delayed payments for a weighted average of 0.3 years	Reduced weighted average contractual interest rate by 1.5% and extended a weighted average of 11 years to the life of loans, which reduced monthly payment amounts	Extended a weighted average of 0.7 years to the life of loans, which reduced monthly payment amounts and delayed payments for a weighted average of 0.7 years

	June 30, 2023
	Financial effect
		Term extension	Payment delay
Commercial:
Commercial and industrial			Delayed payments for a weighted average of 0.2 years
Commercial real estate non-owner occupied:
Non-owner occupied		Extended a weighted average of 0.3 years to the life of loans, which reduced monthly payment amounts