XML 55 R42.htm IDEA: XBRL DOCUMENT v3.24.0.1
Loans (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans Held for Investment
Loans held-for-investment by portfolio type consist of the following as of December 31,:
20232022
Commercial and industrial$2,467,688 $2,310,929 
Commercial real estate:
Non-owner occupied812,235 779,546 
Owner occupied635,365 636,272 
Construction and land345,430 327,817 
Multifamily103,066 102,068 
Total commercial real estate1,896,096 1,845,703 
Residential real estate1,110,610 1,003,931 
Public finance602,913 590,284 
Consumer36,371 42,588 
Other153,418 118,397 
Total loans$6,267,096 $5,911,832 
Allowance for credit losses(80,398)(65,917)
Loans, net of allowance for credit losses$6,186,698 $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 years ended December 31,:
Commercial
and
Industrial		Commercial
Real
Estate		Residential
Real
Estate		Public
Finance		ConsumerOtherTotal
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 for (benefit from) credit losses10,445 3,996 2,457 (217)400 (46)17,035 
Loans charged-off(9,242)(83)(13)— (334)— (9,672)
Recoveries1,118 12 682 — 50 — 1,862 
Balance, end of period$29,523 $27,546 $16,345 $5,337 $717 $930 $80,398 
2022
Allowance for credit losses:
Balance, beginning of period$31,622 $13,198 $836 $1,544 $235 $112 $47,547 
Provision for (benefit from) credit losses9,248 6,168 2,028 120 199 287 18,050 
Loans charged-off(2,321)— (122)— (144)— (2,587)
Recoveries2,236 388 221 — 62 — 2,907 
Balance, end of period$40,785 $19,754 $2,963 $1,664 $352 $399 $65,917 
2021
Allowance for credit losses:
Balance, beginning of period$29,235 $14,033 $1,435 $2,604 $288 $171 $47,766 
Provision for credit losses5,136 (488)(581)(1,060)52 (59)3,000 
Loans charged-off(4,296)(375)(42)— (148)— (4,861)
Recoveries1,547 28 24 — 43 — 1,642 
Balance, end of period$31,622 $13,198 $836 $1,544 $235 $112 $47,547 
The following table presents information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of December 31,:
Collateral Dependent Loans
With Allowance		Collateral Dependent Loans
With No Related Allowance		Total Collateral Dependent Loans
Amortized CostRelated AllowanceAmortized CostAmortized CostRelated Allowance
2023
Commercial & industrial$5,084 $2,328 $2,920 $8,004 $2,328 
Commercial real estate:
Non-owner occupied— — 3,844 3,844 — 
Owner occupied— — 34 34 — 
Construction and land— — 185 185 — 
Total commercial real estate— — 4,063 4,063 — 
Residential real estate1,551 103 20,862 22,413 103 
Consumer10 10 — 10 10 
Other2,391 102 446 2,837 102 
Total loans$9,036 $2,543 $28,291 $37,327 $2,543 
2022
Commercial & industrial$6,330 $1,101 $3,164 $9,494 $1,101 
Commercial real estate:
Non-owner occupied115 36 2,033 2,148 36 
Owner occupied681 153 5,256 5,937 153 
Construction and land— — 198 198 — 
Total commercial real estate796 189 7,487 8,283 189 
Residential real estate836 34 9,779 10,615 34 
Consumer91 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 December 31,:
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		NonaccrualTotal
2023
Commercial and industrial (1)$2,420,775 $10,117 $3,782 $25,010 $8,004 $2,467,688 
Commercial real estate:
Non-owner occupied796,477 1,063 10,851 — 3,844 812,235 
Owner occupied626,424 8,269 — 638 34 635,365 
Construction and land345,245 — — — 185 345,430 
Multifamily103,066 — — — — 103,066 
Total commercial real estate1,871,212 9,332 10,851 638 4,063 1,896,096 
Residential real estate1,065,438 19,261 3,330 168 22,413 1,110,610 
Public Finance602,913 — — — — 602,913 
Consumer36,357 4 — — 10 36,371 
Other141,794 8,787 — — 2,837 153,418 
Total loans$6,138,489 $47,501 $17,963 $25,816 $37,327 $6,267,096 
2022
Commercial and industrial$2,298,207 $2,409 $819 $— $9,494 $2,310,929 
Commercial real estate:
Non-owner occupied773,042 4,356 — — 2,148 779,546 
Owner occupied630,335 — — — 5,937 636,272 
Construction and land324,888 2,632 99 — 198 327,817 
Multifamily102,068 — — — — 102,068 
Total commercial real estate1,830,333 6,988 99 — 8,283 1,845,703 
Residential real estate974,450 17,231 1,524 98 10,628 1,003,931 
Public Finance590,284 — — — — 590,284 
Consumer42,434 58 3 — 93 42,588 
Other117,926 — — — 471 118,397 
Total loans$5,853,634 $26,686 $2,445 $98 $28,969 $5,911,832 
(1) Loans greater than 90 days past due, still accruing relates primarily to one borrower relationship where interest was paid current in February 2024. Contractual principal payments related to this borrower relationship were deferred until March 15, 2024. This deferral was not significant.
Schedule of Amortized Costs by Segment of Loans and Credit Risk Profile of Loan Portfolio
The following table present the amortized costs by segment of loans by risk category and origination date as of December 31, 2023:
20232022202120202019PriorRevolving Loans Converted to TermRevolvingTotal
Commercial and industrial:
Pass$384,720 $432,903 $342,394 $143,636 $41,667 $39,972 $39,098 $786,059 $2,210,449 
Pass/Watch4,052 2,543 18,832 4,595 1,603 2,441 1,273 93,951 129,290 
Special Mention3,759 47,071 2,253 2,281 659 731 3,334 6,729 66,817 
Substandard - Accruing2,992 362 33,625 4,316 1,338 3,542 3,044 3,909 53,128 
Substandard - Nonaccrual— — 690 4,122 1,110 364 96 248 6,630 
Doubtful— — — 490 547 33 304 — 1,374 
Total commercial and industrial$395,523 $482,879 $397,794 $159,440 $46,924 $47,083 $47,149 $890,896 $2,467,688 
Gross charge-offs$— $— $2,786 $3,096 $— $368 $2,992 $— $9,242 
Commercial real estate:
Non-owner occupied:
Pass$55,581 $117,162 $136,361 $116,402 $60,535 $176,308 $19,256 $71,322 $752,927 
Pass/Watch— — — 3,791 6,342 24,620 1,277 — 36,030 
Special Mention2,717 — — — — — 1,582 — 4,299 
Substandard - Accruing— 3,561 — 1,880 — 9,694 — — 15,135 
Substandard - Nonaccrual— — — — — 3,844 — — 3,844 
Total non-owner occupied$58,298 $120,723 $136,361 $122,073 $66,877 $214,466 $22,115 $71,322 $812,235 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Owner occupied:
Pass$87,167 $83,308 $105,935 $102,885 $64,134 $123,199 $2,961 $6,103 $575,692 
Pass/Watch600 902 — 15,541 2,896 2,520 — 1,615 24,074 
Special Mention— 493 5,745 306 1,092 2,834 — — 10,470 
Substandard - Accruing2,295 460 1,204 3,027 2,259 15,850 — — 25,095 
Substandard - Nonaccrual— — — — — 34 — — 34 
Total owner occupied$90,062 $85,163 $112,884 $121,759 $70,381 $144,437 $2,961 $7,718 $635,365 
Gross charge-offs$— $— $— $— $— $83 $— $— $83 
Construction & land:
Pass$44,496 $171,411 $32,176 $28,221 $13,459 $8,718 $21,600 $1,913 $321,994 
Pass/Watch— — 13,036 6,541 — 15 — — 19,592 
Special Mention— — 1,381 2,278 — — — — 3,659 
Substandard - Nonaccrual— — — 185 — — — — 185 
Total construction & land$44,496 $171,411 $46,593 $37,225 $13,459 $8,733 $21,600 $1,913 $345,430 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Multifamily:
Pass$1,359 $36,852 $36,537 $12,838 $2,716 $5,885 $— $5,574 $101,761 
Special Mention— — — — 1,305 — — — 1,305 
Total multifamily$1,359 $36,852 $36,537 $12,838 $4,021 $5,885 $— $5,574 $103,066 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
20232022202120202019PriorRevolving Loans Converted to TermRevolvingTotal
Total commercial real estate:
Pass$188,603 $408,733 $311,009 $260,346 $140,844 $314,110 $43,817 $84,912 $1,752,374 
Pass/Watch600 902 13,036 25,873 9,238 27,155 1,277 1,615 79,696 
Special Mention2,717 493 7,126 2,584 2,397 2,834 1,582 — 19,733 
Substandard - Accruing2,295 4,021 1,204 4,907 2,259 25,544 — — 40,230 
Substandard - Nonaccrual— — — 185 — 3,878 — — 4,063 
Total commercial real estate:$194,215 $414,149 $332,375 $293,895 $154,738 $373,521 $46,676 $86,527 $1,896,096 
Gross charge-offs$— $— $— $— $— $83 $— $— $83 
Residential real estate:
Pass$153,327 $573,624 $116,695 $38,309 $38,121 $141,216 $1,857 $13,540 $1,076,689 
Pass/Watch155 1,181 28 — 269 4,667 176 — 6,476 
Special Mention— — — — 254 1,465 — — 1,719 
Substandard - Accruing— 3,199 — — — 114 — — 3,313 
Substandard - Nonaccrual— 6,704 3,169 2,214 4,009 6,267 16 34 22,413 
Total residential real estate$153,482 $584,708 $119,892 $40,523 $42,653 $153,729 $2,049 $13,574 $1,110,610 
Gross charge-offs$— $— $— $13 $— $— $— $— $13 
Public Finance:
Pass$37,074 $— $43,512 $174,907 $201,575 $135,326 $— $3,051 $595,445 
Substandard - Accruing— — — — 7,468 — — — 7,468 
Total public finance$37,074 $— $43,512 $174,907 $209,043 $135,326 $— $3,051 $602,913 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Consumer:
Pass$3,232 $2,183 $5,347 $9,414 $3,482 $2,555 $2 $9,491 $35,706 
Pass/Watch— 53 108 99 145 153 1 46 605 
Special Mention— — 13 7 — — — — 20 
Substandard - Accruing— — — — — — 30 — 30 
Substandard - Nonaccrual— 4 6 — — — — — 10 
Total consumer$3,232 $2,240 $5,474 $9,520 $3,627 $2,708 $33 $9,537 $36,371 
Gross charge-offs$— $— $11 $8 $111 $32 $3 $169 $334 
Other:
Pass$5,890 $7,802 $13,198 $806 $282 $10,227 $4,859 $100,183 $143,247 
Pass/Watch— — 7,334 — — — — — 7,334 
Substandard - Nonaccrual— — — — 2,391 — 446 — 2,837 
Total other$5,890 $7,802 $20,532 $806 $2,673 $10,227 $5,305 $100,183 $153,418 
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Total loans:
Pass$772,846 $1,425,245 $832,155 $627,418 $425,971 $643,406 $89,633 $997,236 $5,813,910 
Pass/Watch4,807 4,679 39,338 30,567 11,255 34,416 2,727 95,612 223,401 
Special Mention6,476 47,564 9,392 4,872 3,310 5,030 4,916 6,729 88,289 
Substandard - Accruing5,287 7,582 34,829 9,223 11,065 29,200 3,074 3,909 104,169 
Substandard - Nonaccrual— 6,708 3,865 6,521 7,510 10,509 558 282 35,953 
Doubtful— — — 490 547 33 304 — 1,374 
Total loans$789,416 $1,491,778 $919,579 $679,091 $459,658 $722,594 $101,212 $1,103,768 $6,267,096 
Gross charge-offs$— $— $2,797 $3,117 $111 $483 $2,995 $169 $9,672 
The following table presents the credit risk profile of our loan portfolio, gross of deferred costs, fees, premiums and discounts, 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. We categorized loans into risk categories based on relevant information about the ability of borrowers to service their debt including current financial information, historical payment experience, credit documentation, public information and current economic trends among other factors. This risk rating system was used as a tool to analyze and monitor loan portfolio quality. Risk ratings meeting an internally specified exposure threshold were updated annually, or more frequently upon the occurrence of a circumstance that affected the credit risk of the loan. We use the following definitions for risk ratings:
Substandard - loans are considered “classified” and have a well-defined weakness, or weaknesses, such as loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Substandard loans are also characterized by the distinct possibility of loss in the future if the deficiencies are not corrected.
Doubtful - loans are considered “classified” and have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. There were loans totaling $45 categorized as doubtful as of December 31, 2022.
Non-ClassifiedClassifiedTotal
Commercial and industrial$2,969,786 $55,288 $3,025,074 
Commercial real estate1,715,415 37,945 1,753,360 
Residential real estate1,096,108 10,685 1,106,793 
Consumer43,592 114 43,706 
Total loans$5,824,901 $104,032 $5,928,933 
Financing Receivable, Loan Modification
The following table presents loan modifications that were experiencing financial difficulty during 2023, segregated by modification type, regardless of whether such modifications resulted in a new loan.
Payment
Delay		Interest Rate Reduction% of
Total Class
of Loans
Commercial and industrial$292 $— — %
Commercial real estate:
Non-owner occupied— — — %
Owner occupied— 1,145 0.2 %
Construction and land— — — %
Multifamily— — — %
Total commercial real estate— 1,145 0.2 %
Residential real estate— — — %
Public finance— — — %
Consumer— — — %
Other— — — %
Total loans$292 $1,145 0.2 %