XML 31 R22.htm IDEA: XBRL DOCUMENT

Loans and the Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Recorded Investment in Loans by Category

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs, and discounts on purchased loans. Net deferred loan fee costs were $8.9 million and $3.3 million at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022 and December 31, 2021, respectively, the balance also included $1.1 million and $6.1 million of net deferred fee income from SBA Payroll Protection Program (“PPP”) loans. The un-accreted discount on purchased loans from acquisitions was $21.5 million at June 30, 2022 and $25.9 million at December 31, 2021.


	June 30,		December 31,
(unaudited, in thousands)	2022		2021
Commercial real estate:
Land and construction	$	919,416	$	833,880
Improved property		4,933,148		4,705,088
Total commercial real estate		5,852,564		5,538,968
Commercial and industrial		1,523,046		1,427,645
Commercial and industrial - PPP		26,722		162,675
Residential real estate		1,907,875		1,721,378
Home equity		597,845		605,682
Consumer		300,637		277,130
Total portfolio loans		10,208,689		9,733,478
Loans held for sale		17,560		25,277
Total loans	$	10,226,249	$	9,758,755

Summary of Changes in Allowance for Credit Losses

The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio:


	Allowance for Credit Losses By Category
	For the Six Months Ended June 30, 2022 and 2021
(unaudited, in thousands)	Commercial Real Estate - Land and Construction			Commercial Real Estate- Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdrafts			Total
Balance at December 31, 2021
Allowance for credit losses - loans	$	7,310		$	65,355		$	26,875		$	15,401		$	724		$	3,737		$	2,220		$	121,622
Allowance for credit losses - loan commitments		4,180			201			1,497			1,576			49			272			—			7,775
Total beginning allowance for credit losses - loans and loan commitments		11,490			65,556			28,372			16,977			773			4,009			2,220			129,397
Provision for credit losses:
Provision for loan losses		845			(6,401	)		1,097			(491	)		38			780			(58	)		(4,190	)
Provision for loan commitments		696			(201	)		(1,288	)		582			14			140			—			(57	)
Total provision for credit losses - loans and loan commitments		1,541			(6,602	)		(191	)		91			52			920			(58	)		(4,247	)
Charge-offs		(73	)		(137	)		(355	)		(243	)		(178	)		(1,690	)		(776	)		(3,452	)
Recoveries		25			740			551			264			193			1,477			173			3,423
Net (charge-offs) recoveries		(48	)		603			196			21			15			(213	)		(603	)		(29	)
Balance at June 30, 2022
Allowance for credit losses - loans		8,107			59,557			28,168			14,931			777			4,304			1,559			117,403
Allowance for credit losses - loan commitments		4,876			—			209			2,158			63			412			—			7,718
Total ending allowance for credit losses - loans and loan commitments	$	12,983		$	59,557		$	28,377		$	17,089		$	840		$	4,716		$	1,559		$	125,121

Balance at December 31, 2020
Allowance for credit losses - loans	$	10,841		$	110,652		$	37,850		$	17,851		$	1,487		$	6,507		$	639		$	185,827
Allowance for credit losses - loan commitments		6,508			712			1,275			955			45			19			—			9,514
Total beginning allowance for credit losses - loans and loan commitments		17,349			111,364			39,125			18,806			1,532			6,526			639			195,341
Provision for credit losses:
Provision for loan losses		(4,740	)		(25,672	)		(8,090	)		(4,535	)		(719	)		(1,964	)		582			(45,138	)
Provision for loan commitments		(2,929	)		(618	)		(334	)		111			5			17			—			(3,748	)
Total provision for credit losses - loans and loan commitments		(7,669	)		(26,290	)		(8,424	)		(4,424	)		(714	)		(1,947	)		582			(48,886	)
Charge-offs		(22	)		(235	)		(814	)		(441	)		(274	)		(1,406	)		(365	)		(3,557	)
Recoveries		110			646			518			742			340			1,042			200			3,598
Net (charge-offs) recoveries		88			411			(296	)		301			66			(364	)		(165	)		41
Balance at June 30, 2021
Allowance for credit losses - loans		6,189			85,391			29,464			13,617			834			4,179			1,056			140,730
Allowance for credit losses - loan commitments		3,579			94			941			1,066			50			36			—			5,766
Total ending allowance for credit losses - loans and loan commitments	$	9,768		$	85,485		$	30,405		$	14,683		$	884		$	4,215		$	1,056		$	146,496

Allowance for Credit Losses and Recorded Investments in Loans

The following tables present the allowance for credit losses and recorded investments in loans by category, as of each period-end:


	Allowance for Credit Losses and Recorded Investment in Loans
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Deposit Over- drafts		Total
June 30, 2022
Allowance for credit losses:
Loans individually-evaluated	$	302	$	9,131	$	238	$	—	$	—	$	—	$	—	$	9,671
Loans collectively-evaluated		7,805		50,426		27,930		14,931		777		4,304		1,559		107,732
Loan commitments		4,876		—		209		2,158		63		412		—		7,718
Total allowance for credit losses - loans and commitments	$	12,983	$	59,557	$	28,377	$	17,089	$	840	$	4,716	$	1,559	$	125,121

Portfolio loans:
Individually-evaluated for credit losses	$	1,160	$	53,008	$	472	$	—	$	—	$	—	$	—	$	54,640
Collectively-evaluated for credit losses		918,256		4,880,140		1,549,296		1,907,875		597,845		300,637		—		10,154,049
Total portfolio loans	$	919,416	$	4,933,148	$	1,549,768	$	1,907,875	$	597,845	$	300,637	$	—	$	10,208,689

December 31, 2021
Allowance for credit losses:
Loans individually-evaluated	$	381	$	8,560	$	333	$	—	$	—	$	—	$	—	$	9,274
Loans collectively-evaluated		6,929		56,795		26,542		15,401		724		3,737		2,220		112,348
Loan commitments		4,180		201		1,497		1,576		49		272		—		7,775
Total allowance for credit losses - loans and commitments	$	11,490	$	65,556	$	28,372	$	16,977	$	773	$	4,009	$	2,220	$	129,397

Portfolio loans:
Individually-evaluated for credit losses	$	1,248	$	66,635	$	576	$	—	$	—	$	—	$	—	$	68,459
Collectively-evaluated for credit losses		832,632		4,638,453		1,589,744		1,721,378		605,682		277,130		—		9,665,019
Total portfolio loans	$	833,880	$	4,705,088	$	1,590,320	$	1,721,378	$	605,682	$	277,130	$	—	$	9,733,478

Summary of Commercial Loans by Risk Grade

The following tables summarize commercial loans by their assigned risk grade:


	Commercial Loans by Internally Assigned Risk Grade
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of June 30, 2022
Pass	$	886,518	$	4,691,731	$	1,503,955	$	7,082,204
Criticized - compromised		25,706		155,102		13,063		193,871
Classified - substandard		7,192		86,315		32,750		126,257
Classified - doubtful		—		—		—		—
Total	$	919,416	$	4,933,148	$	1,549,768	$	7,402,332

As of December 31, 2021
Pass	$	823,316	$	4,400,872	$	1,540,569	$	6,764,757
Criticized - compromised		7,955		222,830		17,733		248,518
Classified - substandard		2,609		81,386		32,018		116,013
Classified - doubtful		—		—		—		—
Total	$	833,880	$	4,705,088	$	1,590,320	$	7,129,288

Summary of Age Analysis of Loan Categories

The following tables summarize the age analysis of all categories of loans:


	Age Analysis of Loans
(unaudited, in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing (1)
As of June 30, 2022
Commercial real estate:
Land and construction	$	918,713	$	703	$	—	$	—	$	703	$	919,416	$	—
Improved property		4,901,240		8,349		10,084		13,475		31,908		4,933,148		7,223
Total commercial real estate		5,819,953		9,052		10,084		13,475		32,611		5,852,564		7,223
Commercial and industrial		1,542,663		3,574		730		2,801		7,105		1,549,768		452
Residential real estate		1,896,553		820		3,169		7,333		11,322		1,907,875		1,175
Home equity		592,060		2,089		547		3,149		5,785		597,845		391
Consumer		297,129		2,420		651		437		3,508		300,637		319
Total portfolio loans		10,148,358		17,955		15,181		27,195		60,331		10,208,689		9,560
Loans held for sale		17,560		—		—		—		—		17,560		—
Total loans	$	10,165,918	$	17,955	$	15,181	$	27,195	$	60,331	$	10,226,249	$	9,560

Nonperforming loans included above are as follows:
Non-accrual loans	$	12,751	$	457	$	1,113	$	17,393	$	18,963	$	31,714
TDRs accruing interest		3,159		8		170		242		420		3,579
Total nonperforming loans	$	15,910	$	465	$	1,283	$	17,635	$	19,383	$	35,293

As of December 31, 2021
Commercial real estate:
Land and construction	$	833,755	$	—	$	—	$	125	$	125	$	833,880	$	51
Improved property		4,681,028		6,377		7,728		9,955		24,060		4,705,088		3,042
Total commercial real estate		5,514,783		6,377		7,728		10,080		24,185		5,538,968		3,093
Commercial and industrial		1,583,347		2,275		1,213		3,485		6,973		1,590,320		559
Residential real estate		1,702,587		2,331		3,254		13,206		18,791		1,721,378		2,840
Home equity		599,189		2,240		602		3,651		6,493		605,682		685
Consumer		273,577		1,532		1,208		813		3,553		277,130		627
Total portfolio loans		9,673,483		14,755		14,005		31,235		59,995		9,733,478		7,804
Loans held for sale		25,277		—		—		—		—		25,277		—
Total loans	$	9,698,760	$	14,755	$	14,005	$	31,235	$	59,995	$	9,758,755	$	7,804

Nonperforming loans included above are as follows:
Non-accrual loans	$	11,174	$	914	$	564	$	23,090	$	24,568	$	35,742
TDRs accruing interest		3,275		3		127		341		471		3,746
Total nonperforming loans	$	14,449	$	917	$	691	$	23,431	$	25,039	$	39,488

(1)

Loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.

Summary of Nonperforming Loans

The following tables summarize nonperforming loans:


	Nonperforming Loans
	June 30, 2022						December 31, 2021
	Unpaid						Unpaid
	Principal		Recorded		Related		Principal		Recorded		Related
(unaudited, in thousands)	Balance (1)		Investment		Allowance		Balance (1)		Investment		Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	53	$	53	$	—	$	74	$	73	$	—
Improved property		9,034		7,404		—		9,846		8,089		—
Commercial and industrial		5,675		4,458		—		6,528		5,256		—
Residential real estate		23,018		17,809		—		25,492		20,065		—
Home equity		6,683		5,163		—		6,985		5,440		—
Consumer		709		406		—		869		565		—
Total nonperforming loans without a specific allowance		45,172		35,293		—		49,794		39,488		—
Total nonperforming loans with a specific allowance		—		—		—		—		—		—
Total nonperforming loans	$	45,172	$	35,293	$	—	$	49,794	$	39,488	$	—

(1)

The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired nonperforming loans.


	Nonperforming Loans
	For the Three Months Ended								For the Six Months Ended
	June 30, 2022				June 30, 2021				June 30, 2022				June 30, 2021
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
(unaudited, in thousands)	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	105	$	1	$	97	$	—	$	94	$	2	$	221	$	—
Improved property		7,595		6		7,011		8		7,750		14		7,359		17
Commercial and industrial		4,631		—		3,172		2		4,831		3		3,252		3
Residential real estate		18,149		36		21,717		101		18,728		72		21,379		140
Home equity		5,411		3		5,668		3		5,396		6		5,681		9
Consumer		464		1		327		1		496		2		339		1
Total nonperforming loans without a specific allowance		36,354		47		37,992		115		37,295		99		38,231		170
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—		—		—
Improved property		—		—		2,084		—		—		—		2,087		—
Total nonperforming loans with a specific allowance		—		—		2,084		—		—		—		2,087		—
Total nonperforming loans	$	36,354	$	47	$	40,076	$	115	$	37,295	$	99	$	40,318	$	170

Recorded Investment in Non-Accrual Loans and TDRs

The following tables present the recorded investment in non-accrual loans and TDRs:


	Non-accrual Loans (1)
	June 30,		December 31,
(unaudited, in thousands)	2022		2021
Commercial real estate:
Land and construction	$	—	$	73
Improved property		7,043		7,715
Total commercial real estate		7,043		7,788
Commercial and industrial		4,275		5,064
Residential real estate		15,111		17,190
Home equity		4,909		5,163
Consumer		376		537
Total	$	31,714	$	35,742

(1)

At June 30, 2022, there were three borrowers with a loan balance greater than $1.0 million totaling $3.8 million, as compared to three borrowers with a loan balance greater than $1.0 million totaling $4.1 million at December 31, 2021. Total non-accrual loans include loans that are also TDRs. Such loans are also set forth in the following table as non-accrual TDRs.


	TDRs
	June 30, 2022						December 31, 2021
(unaudited, in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	53	$	—	$	53	$	—	$	—	$	—
Improved property		361		213		574		374		133		507
Total commercial real estate		414		213		627		374		133		507
Commercial and industrial		183		—		183		192		—		192
Residential real estate		2,698		1,674		4,372		2,875		1,156		4,031
Home equity		254		233		487		277		258		535
Consumer		30		—		30		28		—		28
Total	$	3,579	$	2,120	$	5,699	$	3,746	$	1,547	$	5,293

Loans Identified as TDRs

The following table presents details related to loans identified as TDRs during the three and six months ended June 30, 2022 and 2021, respectively:


	New TDRs (1)
	For the Three Months Ended
	June 30, 2022						June 30, 2021
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(unaudited, dollars in thousands)	Modifications		Investment		Investment		Modifications		Investment		Investment
Commercial real estate:
Land and construction		—	$	—	$	—		—	$	—	$	—
Improved property		1		186		184		—		—		—
Total commercial real estate		1		186		184		—		—		—
Commercial and industrial		—		—		—		—		—		—
Residential real estate		—		—		—		2		2,041		2,057
Home equity		—		—		—		1		56		56
Consumer		—		—		—		—		—		—
Total		1	$	186	$	184		3	$	2,097	$	2,113

	New TDRs (1)
	For the Six Months Ended
	June 30, 2022						June 30, 2021
			Pre-		Post-				Pre-		Post-
			Modification		Modification				Modification		Modification
			Outstanding		Outstanding				Outstanding		Outstanding
	Number of		Recorded		Recorded		Number of		Recorded		Recorded
(unaudited, dollars in thousands)	Modifications		Investment		Investment		Modifications		Investment		Investment
Commercial real estate:
Land and construction		1	$	84	$	54		—	$	—	$	—
Improved property		1		189		184		—		—		—
Total commercial real estate		2		273		238		—		—		—
Commercial and industrial		—		—		—		—		—		—
Residential real estate		—		—		—		2		2,064		2,057
Home equity		—		—		—		1		56		56
Consumer		—		—		—		—		—		—
Total		2	$	273	$	238		3	$	2,120	$	2,113

(1) Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.

Summary of Amortized Cost Basis Loan Balances by Year of Origination and Credit Quality Indicator

The following tables summarize amortized cost basis loan balances by year of origination and credit quality indicator:


	Loans As of June 30, 2022
	Amortized Cost Basis by Origination Year
(unaudited, in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate: land and construction
Risk rating:
Pass	$	74,974	$	134,155	$	193,937	$	179,538	$	97,159	$	54,683	$	77,675	$	74,397	$	886,518
Criticized - compromised		—		266		—		—		24,451		883		—		106		25,706
Classified - substandard		—		53		5,958		—		—		1,181		—		—		7,192
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	74,974	$	134,474	$	199,895	$	179,538	$	121,610	$	56,747	$	77,675	$	74,503	$	919,416

Commercial real estate: improved property
Risk rating:
Pass	$	634,489	$	666,798	$	633,834	$	536,681	$	371,491	$	1,748,737	$	69,703	$	29,998	$	4,691,731
Criticized - compromised		138		518		14,026		13,821		12,674		111,044		1,014		1,867		155,102
Classified - substandard		—		—		89		25,885		10,372		49,935		34		—		86,315
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	634,627	$	667,316	$	647,949	$	576,387	$	394,537	$	1,909,716	$	70,751	$	31,865	$	4,933,148

Commercial and industrial
Risk rating:
Pass	$	150,276	$	227,377	$	134,259	$	86,115	$	125,150	$	279,330	$	486,532	$	14,916	$	1,503,955
Criticized - compromised		308		1,028		447		591		375		2,701		5,029		2,584		13,063
Classified - substandard		—		3,282		1,423		11,470		389		3,032		5,089		8,065		32,750
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	150,584	$	231,687	$	136,129	$	98,176	$	125,914	$	285,063	$	496,650	$	25,565	$	1,549,768

Residential real estate
Loan delinquency:
Current	$	272,007	$	602,878	$	236,407	$	103,075	$	56,052	$	525,043	$	—	$	101,091	$	1,896,553
30-59 days past due		—		—		—		—		68		752		—		—		820
60-89 days past due		—		—		—		282		102		2,785		—		—		3,169
90 days or more past due		—		—		—		135		158		6,993		—		47		7,333
Total	$	272,007	$	602,878	$	236,407	$	103,492	$	56,380	$	535,573	$	—	$	101,138	$	1,907,875

Home equity
Loan delinquency:
Current	$	11,272	$	654	$	579	$	734	$	720	$	17,958	$	559,208	$	935	$	592,060
30-59 days past due		—		—		—		—		21		601		1,316		151		2,089
60-89 days past due		—		—		19		83		136		237		—		72		547
90 days or more past due		—		—		20		59		199		2,481		—		390		3,149
Total	$	11,272	$	654	$	618	$	876	$	1,076	$	21,277	$	560,524	$	1,548	$	597,845

Consumer
Loan delinquency:
Current	$	50,807	$	46,478	$	33,249	$	36,428	$	13,303	$	33,082	$	83,610	$	172	$	297,129
30-59 days past due		552		845		384		146		76		372		45		—		2,420
60-89 days past due		39		152		117		143		39		161		—		—		651
90 days or more past due		34		14		118		52		35		184		-		—		437
Total	$	51,432	$	47,489	$	33,868	$	36,769	$	13,453	$	33,799	$	83,655	$	172	$	300,637


	Loans As of December 31, 2021
	Amortized Cost Basis by Origination Year
(unaudited, in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
Commercial real estate: land and construction
Risk rating:
Pass	$	135,179	$	217,389	$	198,974	$	117,157	$	27,186	$	29,696	$	35,059	$	62,676	$	823,316
Criticized - compromised		85		6,236		—		33		—		219		856		526		7,955
Classified - substandard		—		73		—		—		—		1,280		—		1,256		2,609
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	135,264	$	223,698	$	198,974	$	117,190	$	27,186	$	31,195	$	35,915	$	64,458	$	833,880

Commercial real estate: improved property
Risk rating:
Pass	$	713,697	$	660,856	$	589,674	$	405,689	$	404,241	$	1,539,275	$	58,933	$	28,507	$	4,400,872
Criticized - compromised		7,755		15,195		52,859		17,697		14,490		99,687		1,414		13,733		222,830
Classified - substandard		9,355		2,686		4,855		3,730		11,010		49,667		34		49		81,386
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	730,807	$	678,737	$	647,388	$	427,116	$	429,741	$	1,688,629	$	60,381	$	42,289	$	4,705,088

Commercial and industrial
Risk rating:
Pass	$	406,495	$	159,878	$	99,472	$	136,146	$	89,049	$	223,514	$	409,789	$	16,226	$	1,540,569
Criticized - compromised		590		551		693		2,558		1,645		1,278		5,389		5,029		17,733
Classified - substandard		134		236		18,465		766		2,139		1,419		3,723		5,136		32,018
Classified - doubtful		—		—		—		—		—		—		—		—		—
Total	$	407,219	$	160,665	$	118,630	$	139,470	$	92,833	$	226,211	$	418,901	$	26,391	$	1,590,320

Residential real estate
Loan delinquency:
Current	$	599,244	$	292,653	$	116,147	$	71,253	$	56,917	$	536,444	$	—	$	29,929	$	1,702,587
30-59 days past due		1,127		—		—		69		105		1,030		—		—		2,331
60-89 days past due		563		91		—		271		43		2,286		—		—		3,254
90 days or more past due		1,933		673		895		88		762		8,802		—		53		13,206
Total	$	602,867	$	293,417	$	117,042	$	71,681	$	57,827	$	548,562	$	—	$	29,982	$	1,721,378

Home equity
Loan delinquency:
Current	$	10,076	$	835	$	649	$	379	$	566	$	18,064	$	567,478	$	1,142	$	599,189
30-59 days past due		—		84		45		128		50		628		1,247		58		2,240
60-89 days past due		—		—		132		15		188		267		—		—		602
90 days or more past due		187		88		119		112		234		2,550		—		361		3,651
Total	$	10,263	$	1,007	$	945	$	634	$	1,038	$	21,509	$	568,725	$	1,561	$	605,682

Consumer
Loan delinquency:
Current	$	60,907	$	43,871	$	50,317	$	19,289	$	11,084	$	32,343	$	55,739	$	27	$	273,577
30-59 days past due		435		370		214		136		85		241		51		—		1,532
60-89 days past due		413		375		82		19		33		286		—		—		1,208
90 days or more past due		115		141		222		65		1		265		4		—		813
Total	$	61,870	$	44,757	$	50,835	$	19,509	$	11,203	$	33,135	$	55,794	$	27	$	277,130

Summary of Other Real Estate Owned and Repossessed Assets

The following table summarizes other real estate owned and repossessed assets included in other assets:


	June 30,		December 31,
(unaudited, in thousands)	2022		2021
Other real estate owned	$	—	$	—
Repossessed assets		31		—
Total other real estate owned and repossessed assets	$	31	$	—