Loans (Tables)

9 Months Ended

Sep. 30, 2023

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


	September 30, 2023		December 31, 2022
Commercial and industrial	$	2,459,358	$	2,310,929
Commercial real estate:
Non-owner occupied	767,135		779,546
Owner occupied	631,352		636,272
Construction and land	329,433		327,817
Multifamily	114,535		102,068
Total commercial real estate	1,842,455		1,845,703
Residential real estate	1,059,074		1,003,931
Public finance	602,844		590,284
Consumer	37,681		42,588
Other	178,110		118,397
Total loans	$	6,179,522	$	5,911,832
Allowance for credit losses	(78,666)		(65,917)
Loans, net of allowance for credit losses	$	6,100,856	$	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 September 30,:


	Commercial and Industrial		Commercial Real Estate		Residential Real Estate		Public Finance		Consumer		Other		Total
2023
Allowance for credit losses:
Balance, beginning of period	$	33,197	$	21,598	$	14,959	$	5,506	$	854	$	1,248	$	77,362

Provision (benefit) for credit losses	4,252		1,495		(2,429)		135		(28)		175		3,600
Loans charged off	(2,963)		—		—		—		(136)		—		(3,099)
Recoveries	155		9		627		—		12		—		803
Balance, end of period	$	34,641	$	23,102	$	13,157	$	5,641	$	702	$	1,423	$	78,666
2022
Allowance for credit losses:
Balance, beginning of period	$	33,305	$	18,351	$	2,418	$	1,538	$	318	$	147	$	56,077

Provision for (benefit from) credit losses	2,394		1,213		222		(108)		32		(3)		3,750
Loans charged off	(223)		—		(24)		—		(53)		—		(300)
Recoveries	112		2		1		—		36		—		151
Balance, end of period	$	35,588	$	19,566	$	2,617	$	1,430	$	333	$	144	$	59,678

The following table presents the activity in the allowance for credit losses by portfolio type for the nine months ended September 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	10,941		(531)		(710)		87		326		447		10,560
Loans charged off	(3,751)		—		—		—		(268)		—		(4,019)
Recoveries	249		12		648		—		43		—		952
Balance, end of period	$	34,641	$	23,102	$	13,157	$	5,641	$	702	$	1,423	$	78,666
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	4,304		6,365		1,707		(114)		156		32		12,450
Loans charged off	(2,173)		—		(122)		—		(117)		—		(2,412)
Recoveries	1,835		3		196		—		59		—		2,093
Balance, end of period	$	35,588	$	19,566	$	2,617	$	1,430	$	333	$	144	$	59,678

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
September 30, 2023
Commercial & industrial	$	11,991	$	4,794	$	44	$	12,035	$	4,794
Commercial real estate:
Non-owner occupied	96		22		4,086		4,182		22
Owner occupied	614		188		126		740		188
Construction and land	—		—		188		188		—

Total commercial real estate	710		210		4,400		5,110		210
Residential real estate	1,304		74		19,250		20,554		74

Consumer	1		1		—		1		1
Other	—		—		2,832		2,832		—
Total loans	$	14,006	$	5,079	$	26,526	$	40,532	$	5,079
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
September 30, 2023
Commercial and industrial	$	2,441,207	$	2,858	$	3,065	$	193	$	12,035	$	2,459,358
Commercial real estate:
Non-owner occupied	762,297		111		545		—		4,182		767,135
Owner occupied	629,542		450		620		—		740		631,352
Construction and land	329,206		39		—		—		188		329,433
Multifamily	114,535		—		—		—		—		114,535
Total commercial real estate	1,835,580		600		1,165		—		5,110		1,842,455
Residential real estate	1,036,230		575		1,697		18		20,554		1,059,074
Public Finance	602,844		—		—		—		—		602,844
Consumer	37,590		90		—		—		1		37,681
Other	175,278		—		—		—		2,832		178,110
Total loans	$	6,128,729	$	4,123	$	5,927	$	211	$	40,532	$	6,179,522
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 presents the amortized cost by segment of loans by risk category and origination date as of September 30, 2023 and gross charge-offs by origination date for the nine months ended September 30, 2023:


	2023		2022		2021		2020		2019		Prior		Revolving Loans Converted to Term		Revolving		Total
Commercial and industrial:
Pass	$	300,415	$	480,464	$	388,085	$	154,171	$	45,291	$	48,799	$	26,617	$	803,301	$	2,247,143
Pass/Watch	9,176		2,522		7,001		2,484		1,483		1,626		167		68,825		93,284
Special Mention	3,526		38,881		30,790		1,290		684		1,061		199		7,662		84,093
Substandard - Accruing	630		—		5,648		5,888		1,406		3,680		3,304		2,247		22,803
Substandard - Nonaccrual	—		—		3,180		6,656		796		395		—		96		11,123
Doubtful	—		—		—		—		570		35		250		57		912

Total commercial and industrial	$	313,747	$	521,867	$	434,704	$	170,489	$	50,230	$	55,596	$	30,537	$	882,188	$	2,459,358
Gross charge-offs	$	—	$	—	$	395	$	—	$	—	$	366	$	2,990	$	—	$	3,751

Commercial real estate:
Non-owner occupied:
Pass	$	52,362	$	98,135	$	129,180	$	111,588	$	69,011	$	183,353	$	20,935	$	54,485	$	719,049
Pass/Watch	—		—		—		986		—		23,562		1,300		—		25,848
Special Mention	—		3,542		—		2,857		—		—		—		—		6,399
Substandard - Accruing	—		—		—		1,895		—		9,762		—		—		11,657
Substandard - Nonaccrual	—		—		—		—		—		4,182		—		—		4,182


Total non-owner occupied	$	52,362	$	101,677	$	129,180	$	117,326	$	69,011	$	220,859	$	22,235	$	54,485	$	767,135
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Owner occupied:
Pass	$	60,548	$	85,790	$	118,772	$	117,027	$	67,740	$	127,986	$	2,455	$	6,553	$	586,871
Pass/Watch	605		909		990		1,427		1,457		1,601		—		1,628		8,617
Special Mention	—		495		1,623		1,990		488		4,391		—		—		8,987
Substandard - Accruing	—		463		638		6,805		2,252		15,979		—		—		26,137
Substandard - Nonaccrual	—		—		—		—		—		740		—		—		740


Total owner occupied	$	61,153	$	87,657	$	122,023	$	127,249	$	71,937	$	150,697	$	2,455	$	8,181	$	631,352
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Construction & land:
Pass	$	25,539	$	143,285	$	60,953	$	35,204	$	13,554	$	9,458	$	15,369	$	21,651	$	325,013
Pass/Watch	—		—		—		—		—		16		—		—		16
Special Mention	—		—		1,394		2,256		—		—		—		—		3,650
Substandard - Accruing	—		—		566		—		—		—		—		—		566
Substandard - Nonaccrual	—		—		—		188		—		—		—		—		188


Total construction & land	$	25,539	$	143,285	$	62,913	$	37,648	$	13,554	$	9,474	$	15,369	$	21,651	$	329,433
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Multifamily:
Pass	$	1,362	$	47,809	$	36,731	$	12,973	$	2,723	$	6,060	$	—	$	5,572	$	113,230

Special Mention	—		—		—		—		1,305		—		—		—		1,305




Total multifamily	$	1,362	$	47,809	$	36,731	$	12,973	$	4,028	$	6,060	$	—	$	5,572	$	114,535
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	2023		2022		2021		2020		2019		Prior		Revolving Loans Converted to Term		Revolving		Total
Total commercial real estate:
Pass	$	139,811	$	375,019	$	345,636	$	276,792	$	153,028	$	326,857	$	38,759	$	88,261	$	1,744,163
Pass/Watch	605		909		990		2,413		1,457		25,179		1,300		1,628		34,481
Special Mention	—		4,037		3,017		7,103		1,793		4,391		—		—		20,341
Substandard - Accruing	—		463		1,204		8,700		2,252		25,741		—		—		38,360
Substandard - Nonaccrual	—		—		—		188		—		4,922		—		—		5,110


Total commercial real estate:	$	140,416	$	380,428	$	350,847	$	295,196	$	158,530	$	387,090	$	40,059	$	89,889	$	1,842,455
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Residential real estate:
Pass	$	88,688	$	572,932	$	118,264	$	38,618	$	38,835	$	152,436	$	1,670	$	14,804	$	1,026,247
Pass/Watch	173		4,881		28		—		350		4,808		179		—		10,419
Special Mention	—		—		—		—		256		1,478		—		—		1,734
Substandard - Accruing	—		—		—		—		—		120		—		—		120
Substandard - Nonaccrual	—		5,706		3,240		2,223		3,942		5,408		—		35		20,554


Total residential real estate	$	88,861	$	583,519	$	121,532	$	40,841	$	43,383	$	164,250	$	1,849	$	14,839	$	1,059,074
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Public Finance:
Pass	$	31,609	$	—	$	43,980	$	178,130	$	203,950	$	137,539	$	—	$	2	$	595,210
Pass/Watch	—		—		—		—		7,634		—		—		—		7,634





Total public finance	$	31,609	$	—	$	43,980	$	178,130	$	211,584	$	137,539	$	—	$	2	$	602,844
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Consumer:
Pass	$	2,387	$	2,590	$	5,646	$	9,846	$	3,674	$	2,760	$	66	$	9,968	$	36,937
Pass/Watch	—		62		119		100		187		159		1		51		679
Special Mention	—		—		14		8		—		—		—		—		22
Substandard - Accruing	5		—		—		—		—		—		37		—		42
Substandard - Nonaccrual	—		—		1		—		—		—		—		—		1


Total consumer	$	2,392	$	2,652	$	5,780	$	9,954	$	3,861	$	2,919	$	104	$	10,019	$	37,681
Gross charge-offs	$	—	$	—	$	12	$	8	$	71	$	32	$	3	$	142	$	268

Other:
Pass	$	7,660	$	7,808	$	13,662	$	6,061	$	441	$	10,244	$	4,935	$	117,017	$	167,828
Pass/Watch	—		—		2,332		—		2,391		—		—		—		4,723

Substandard - Accruing	—		—		2,727		—		—		—		—		—		2,727
Substandard - Nonaccrual	—		—		2,398		—		—		—		434		—		2,832


Total other	$	7,660	$	7,808	$	21,119	$	6,061	$	2,832	$	10,244	$	5,369	$	117,017	$	178,110
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


	2023		2022		2021		2020		2019		Prior		Revolving Loans Converted to Term		Revolving		Total
Total loans:
Pass	$	570,570	$	1,438,813	$	915,273	$	663,618	$	445,219	$	678,635	$	72,047	$	1,033,353	$	5,817,528
Pass/Watch	9,954		8,374		10,470		4,997		13,502		31,772		1,647		70,504		151,220
Special Mention	3,526		42,918		33,821		8,401		2,733		6,930		199		7,662		106,190
Substandard - Accruing	635		463		9,579		14,588		3,658		29,541		3,341		2,247		64,052
Substandard - Nonaccrual	—		5,706		8,819		9,067		4,738		10,725		434		131		39,620
Doubtful	—		—		—		—		570		35		250		57		912

Total loans	$	584,685	$	1,496,274	$	977,962	$	700,671	$	470,420	$	757,638	$	77,918	$	1,113,954	$	6,179,522
Gross charge-offs	$	—	$	—	$	407	$	8	$	71	$	398	$	2,993	$	142	$	4,019

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