Loans (Tables)

6 Months Ended

Jun. 30, 2023

Loans held-for-investment by portfolio type consist of the following as of:


	June 30, 2023		December 31, 2022
Commercial and industrial	$	2,474,531	$	2,310,929
Commercial real estate:
Non-owner occupied	723,365		779,546
Owner occupied	643,191		636,272
Construction and land	316,399		327,817
Multifamily	100,464		102,068
Total commercial real estate	1,783,419		1,845,703
Residential real estate	1,082,991		1,003,931
Public finance	611,748		590,284
Consumer	39,909		42,588
Other	162,492		118,397
Total loans	$	6,155,090	$	5,911,832
Allowance for credit losses	(77,362)		(65,917)
Loans, net of allowance for credit losses	$	6,077,728	$	5,845,915

Schedule of Allowance for Credit Losses by Portfolio Type

The following table presents the activity in the allowance for credit losses by portfolio type for the three months ended June 30,:


	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Public Finance		Consumer		Other		Total
2023
Allowance for credit losses:
Balance, beginning of period	$	28,545	$	24,186	$	14,165	$	5,549	$	676	$	1,338	$	74,459

Provision (benefit) for credit losses	5,343		(2,588)		773		(43)		225		(90)		3,620
Loans charged off	(729)		—		—		—		(68)		—		(797)
Recoveries	38		—		21		—		21		—		80
Balance, end of period	$	33,197	$	21,598	$	14,959	$	5,506	$	854	$	1,248	$	77,362
2022
Allowance for credit losses:
Balance, beginning of period	$	33,009	$	14,566	$	997	$	1,611	$	233	$	93	$	50,509

Provision for (benefit from) credit losses	(303)		3,784		1,422		(73)		116		54		5,000
Loans charged off	(947)		—		(98)		—		(38)		—		(1,083)
Recoveries	1,546		1		97		—		7		—		1,651
Balance, end of period	$	33,305	$	18,351	$	2,418	$	1,538	$	318	$	147	$	56,077

The following table presents the activity in the allowance for credit losses by portfolio type for the six months ended June 30,:


	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Public Finance		Consumer		Other		Total
2023
Allowance for credit losses:
Balance, beginning of period	$	40,785	$	19,754	$	2,963	$	1,664	$	352	$	399	$	65,917
Impact of adopting ASC 326	(13,583)		3,867		10,256		3,890		249		577		5,256
Provision (benefit) for credit losses	6,689		(2,026)		1,719		(48)		354		272		6,960
Loans charged off	(788)		—		—		—		(132)		—		(920)
Recoveries	94		3		21		—		31		—		149
Balance, end of period	$	33,197	$	21,598	$	14,959	$	5,506	$	854	$	1,248	$	77,362
2022
Allowance for credit losses:
Balance, beginning of period	$	31,622	$	13,198	$	836	$	1,544	$	235	$	112	$	47,547

Provision (benefit) for credit losses	1,910		5,152		1,485		(6)		124		35		8,700
Loans charged off	(1,950)		—		(98)		—		(64)		—		(2,112)
Recoveries	1,723		1		195		—		23		—		1,942
Balance, end of period	$	33,305	$	18,351	$	2,418	$	1,538	$	318	$	147	$	56,077

The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of:


	Collateral Dependent Loans With Allowance				Collateral Dependent Loans With No Related Allowance		Total Collateral Dependent Loans
	Amortized Cost		Related Allowance		Amortized Cost		Amortized Cost		Related Allowance
June 30, 2023
Commercial & industrial	$	30,875	$	3,941	$	3,303	$	34,178	$	3,941
Commercial real estate:
Non-owner occupied	105		30		3,919		4,024		30
Owner occupied	7,630		754		166		7,796		754
Construction and land	—		—		4,953		4,953		—

Total commercial real estate	7,735		784		9,038		16,773		784
Residential real estate	1,192		44		15,146		16,338		44

Consumer	87		87		—		87		87
Other	—		—		446		446		—
Total loans	$	39,889	$	4,856	$	27,933	$	67,822	$	4,856
December 31, 2022
Commercial & industrial	$	6,330	$	1,101	$	3,164	$	9,494	$	1,101
Commercial real estate:
Non-owner occupied	115		36		2,033		2,148		36
Owner occupied	681		153		5,256		5,937		153
Construction and land	—		—		198		198		—

Total commercial real estate	796		189		7,487		8,283		189
Residential real estate	836		34		9,779		10,615		34

Consumer	91		88		—		91		88
Other	—		—		475		475		—
Total loans	$	8,053	$	1,412	$	20,905	$	28,958	$	1,412

Schedule of Aging of Loan Portfolio

The following table presents our loan portfolio aging analysis as of:


	Loans Not Past Due		Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans Greater than 90 Days Past Due, Still Accruing		Nonaccrual		Total
June 30, 2023
Commercial and industrial	$	2,438,328	$	955	$	1,070	$	—	$	34,178	$	2,474,531
Commercial real estate:
Non-owner occupied	718,562		780		—		—		4,023		723,365
Owner occupied	635,395		—		—		—		7,796		643,191
Construction and land	311,446		—		—		—		4,953		316,399
Multifamily	100,464		—		—		—		—		100,464
Total commercial real estate	1,765,867		780		—		—		16,772		1,783,419
Residential real estate	1,063,855		1,415		1,364		19		16,338		1,082,991
Public Finance	611,748		—		—		—		—		611,748
Consumer	39,775		17		30		—		87		39,909
Other	159,538		2,508		—		—		446		162,492
Total loans	$	6,079,111	$	5,675	$	2,464	$	19	$	67,821	$	6,155,090
December 31, 2022
Commercial and industrial	$	2,298,207	$	2,409	$	819	$	—	$	9,494	$	2,310,929
Commercial real estate:
Non-owner occupied	773,042		4,356		—		—		2,148		779,546
Owner occupied	630,335		—		—		—		5,937		636,272
Construction and land	324,888		2,632		99		—		198		327,817
Multifamily	102,068		—		—		—		—		102,068
Total commercial real estate	1,830,333		6,988		99		—		8,283		1,845,703
Residential real estate	974,450		17,231		1,524		98		10,628		1,003,931
Public Finance	590,284		—		—		—		—		590,284
Consumer	42,434		58		3		—		93		42,588
Other	117,926		—		—		—		471		118,397
Total loans	$	5,853,634	$	26,686	$	2,445	$	98	$	28,969	$	5,911,832

Schedule of Amortized Costs by Segment of Loans and Credit Risk Profile of Loan Portfolio

The following table present the amortized cost by segment of loans by risk category and origination date as of June 30, 2023:


	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Commercial and industrial:
Pass	$	298,843	$	629,602	$	315,686	$	132,497	$	47,452	$	34,547	$	1,458,627	$	800,730	$	2,259,357
Pass/Watch	948		12,627		8,210		3,110		704		3,640		29,239		25,819		55,058
Special Mention	2,716		50,431		33,333		707		708		2,283		90,178		6,398		96,576
Substandard - Accruing	491		2,544		9,519		6,819		2,112		3,778		25,263		4,099		29,362
Substandard - Nonaccrual	—		531		10,891		5,585		722		3,606		21,335		12,500		33,835
Doubtful	37		—		306		—		—		—		343		—		343

Total commercial and industrial	$	303,035	$	695,735	$	377,945	$	148,718	$	51,698	$	47,854	$	1,624,985	$	849,546	$	2,474,531
Gross charge-offs	$	—	$	59	$	—	$	—	$	—	$	729	$	788	$	—	$	788

Commercial real estate:
Non-owner occupied:
Pass	$	56,777	$	120,593	$	132,211	$	116,058	$	92,647	$	141,459	$	659,745	$	22,648	$	682,393
Pass/Watch	—		—		—		—		—		25,097		25,097		—		25,097
Special Mention	—		—		—		—		—		4,907		4,907		—		4,907
Substandard - Accruing	—		—		1,969		—		—		4,976		6,945		—		6,945
Substandard - Nonaccrual	—		—		—		—		105		3,918		4,023		—		4,023


Total non-owner occupied	$	56,777	$	120,593	$	134,180	$	116,058	$	92,752	$	180,357	$	700,717	$	22,648	$	723,365
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner occupied:
Pass	$	59,556	$	113,041	$	144,057	$	102,838	$	61,929	$	100,796	$	582,217	$	7,241	$	589,458
Pass/Watch	609		1,111		1,005		1,436		1,462		7,729		13,352		1,639		14,991
Special Mention	—		—		1,633		2,003		1,845		4,578		10,059		—		10,059
Substandard - Accruing	334		466		4,503		6,873		1,869		6,842		20,887		—		20,887
Substandard - Nonaccrual	—		—		—		—		7,018		778		7,796		—		7,796


Total owner occupied	$	60,499	$	114,618	$	151,198	$	113,150	$	74,123	$	120,723	$	634,311	$	8,880	$	643,191
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & land:
Pass	$	27,825	$	132,258	$	84,791	$	28,883	$	8,290	$	6,115	$	288,162	$	20,642	$	308,804
Pass/Watch	—		—		—		—		—		17		17		—		17
Special Mention	—		—		1,407		641		—		—		2,048		—		2,048
Substandard - Accruing	—		577		—		—		—		—		577		—		577
Substandard - Nonaccrual	—		350		4,415		188		—		—		4,953		—		4,953


Total construction & land	$	27,825	$	133,185	$	90,613	$	29,712	$	8,290	$	6,132	$	295,757	$	20,642	$	316,399
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily:
Pass	$	2,322	$	35,789	$	36,495	$	13,052	$	6,033	$	1,201	$	94,892	$	5,572	$	100,464






Total multifamily	$	2,322	$	35,789	$	36,495	$	13,052	$	6,033	$	1,201	$	94,892	$	5,572	$	100,464
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	2023		2022		2021		2020		2019		Prior		Term Total		Revolving		Total
Total commercial real estate:
Pass	$	146,480	$	401,681	$	397,554	$	260,831	$	168,899	$	249,571	$	1,625,016	$	56,103	$	1,681,119
Pass/Watch	609		1,111		1,005		1,436		1,462		32,843		38,466		1,639		40,105
Special Mention	—		—		3,040		2,644		1,845		9,485		17,014		—		17,014
Substandard - Accruing	334		1,043		6,472		6,873		1,869		11,818		28,409		—		28,409
Substandard - Nonaccrual	—		350		4,415		188		7,123		4,696		16,772		—		16,772


Total commercial real estate:	$	147,423	$	404,185	$	412,486	$	271,972	$	181,198	$	308,413	$	1,725,677	$	57,742	$	1,783,419
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential real estate:
Pass	$	93,610	$	556,873	$	111,646	$	43,442	$	43,335	$	165,637	$	1,014,543	$	40,614	$	1,055,157
Pass/Watch	205		4,355		29		—		414		3,986		8,989		—		8,989
Special Mention	—		—		—		—		257		1,493		1,750		—		1,750
Substandard - Accruing	631		—		—		—		—		126		757		—		757
Substandard - Nonaccrual	—		4,194		—		2,202		3,051		6,854		16,301		37		16,338


Total residential real estate	$	94,446	$	565,422	$	111,675	$	45,644	$	47,057	$	178,096	$	1,042,340	$	40,651	$	1,082,991
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Public Finance:
Pass	$	31,602	$	12,457	$	44,308	$	168,647	$	212,855	$	138,915	$	608,784	$	2,964	$	611,748






Total public finance	$	31,602	$	12,457	$	44,308	$	168,647	$	212,855	$	138,915	$	608,784	$	2,964	$	611,748
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Pass	$	1,470	$	2,973	$	6,269	$	10,342	$	3,938	$	3,164	$	28,156	$	10,930	$	39,086
Pass/Watch	—		64		125		105		192		165		651		49		700
Special Mention	15		—		—		8		—		—		23		—		23
Substandard - Accruing	6		—		—		7		—		—		13		—		13
Substandard - Nonaccrual	—		—		1		—		66		20		87		—		87


Total consumer	$	1,491	$	3,037	$	6,395	$	10,462	$	4,196	$	3,349	$	28,930	$	10,979	$	39,909
Gross charge-offs	$	—	$	—	$	11	$	1	$	3	$	85	$	100	$	32	$	132

Other:
Pass	$	672	$	13,917	$	14,194	$	2,998	$	3,001	$	10,376	$	45,158	$	108,801	$	153,959
Pass/Watch	—		—		2,575		—		—		—		2,575		—		2,575

Substandard - Accruing	—		—		5,512		—		—		—		5,512		—		5,512
Substandard - Nonaccrual	—		—		446		—		—		—		446		—		446


Total other	$	672	$	13,917	$	22,727	$	2,998	$	3,001	$	10,376	$	53,691	$	108,801	$	162,492
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Total loans:
Pass	$	572,677	$	1,617,503	$	889,657	$	618,757	$	479,480	$	602,210	$	4,780,284	$	1,020,142	$	5,800,426
Pass/Watch	1,762		18,157		11,944		4,651		2,772		40,634		79,920		27,507		107,427
Special Mention	2,731		50,431		36,373		3,359		2,810		13,261		108,965		6,398		115,363
Substandard - Accruing	1,462		3,587		21,503		13,699		3,981		15,722		59,954		4,099		64,053
Substandard - Nonaccrual	—		5,075		15,753		7,975		10,962		15,176		54,941		12,537		67,478
Doubtful	37		—		306		—		—		—		343		—		343

Total loans	$	578,669	$	1,694,753	$	975,536	$	648,441	$	500,005	$	687,003	$	5,084,407	$	1,070,683	$	6,155,090
Gross charge-offs	$	—	$	59	$	11	$	1	$	3	$	814	$	888	$	32	$	920

The following table presents the credit risk profile of our loan portfolio based on our rating categories as of December 31, 2022, which is prior to the adoption of ASU 2016-13 on January 1, 2023 and continue to be reported under ASC 310, Receivables. For a description of these risk ratings, please see our 2022 Annual Report. Amounts are presented at unpaid principal balance.


	Non-Classified		Classified		Total
Commercial and industrial	$	2,969,786	$	55,288	$	3,025,074
Commercial real estate	1,715,415		37,945		1,753,360
Residential real estate	1,096,108		10,685		1,106,793
Consumer	43,592		114		43,706
Total loans	$	5,824,901	$	104,032	$	5,928,933