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PORTFOLIO LOANS (Tables)
 12 Months Ended
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Distribution of portfolio loans Distributions of the loan portfolio by loan category were as follows (dollars in thousands):
As of December 31,
20222021
Portfolio loans
Commercial$1,974,154 $1,943,886 
Commercial real estate3,261,873 3,119,807 
Real estate construction530,469 385,996 
Retail real estate1,657,082 1,512,976 
Retail other302,124 226,333 
Total portfolio loans$7,725,702 $7,188,998 
ACL(91,608)(87,887)
Portfolio loans, net$7,634,094 $7,101,111 
Schedule of financial instruments owned and pledged as collateral
The Company pledged loans as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands):
As of December 31,
20222021
Pledged loans
FHLB$5,095,448 $4,656,331 
Federal Reserve Bank804,718 808,254 
Total pledged loans$5,900,166 $5,464,585 
To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands):
As of December 31,
20222021
Cash pledged to secure obligations under derivative contracts$38,609 $27,300 
Collateral held to secure obligations under derivative contracts29,830 — 
Summary of risk grades segregated by category of portfolio loans (excluding accretable purchase accounting adjustments and clearings)
The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands):
As of December 31, 2022
PassWatchSpecial
Mention		SubstandardSubstandard
Non-accrual		Total
Portfolio loans
Commercial$1,668,495 $201,758 $46,540 $51,187 $6,174 $1,974,154 
Commercial real estate2,851,709 326,455 43,526 34,539 5,644 3,261,873 
Real estate construction502,904 25,164 1 2,400 — 530,469 
Retail real estate1,639,599 10,520 1,338 2,529 3,096 1,657,082 
Retail other301,971 — — — 153 302,124 
Total portfolio loans$6,964,678 $563,897 $91,405 $90,655 $15,067 $7,725,702 
As of December 31, 2021
PassWatchSpecial
Mention		SubstandardSubstandard
Non-accrual		Total
Portfolio loans
Commercial $1,747,756 $93,582 $69,427 $26,117 $7,004 $1,943,886 
Commercial real estate2,682,441 343,304 49,695 38,394 5,973 3,119,807 
Real estate construction369,797 13,793 6 2,400 — 385,996 
Retail real estate1,491,845 12,374 1,992 3,867 2,898 1,512,976 
Retail other226,262 — — — 71 226,333 
Total portfolio loans$6,518,101 $463,053 $121,120 $70,778 $15,946 $7,188,998 
Risk grades of portfolio loans, further sorted by origination
Risk grades of portfolio loans, further sorted by origination year, are as follows (dollars in thousands):
As of December 31, 2022
Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
Risk Grade Ratings20222021202020192018Prior
Commercial
Pass$479,893 $266,122 $136,445 $52,046 $50,764 $135,000 $548,225 $1,668,495 
Watch54,195 49,382 3,288 7,201 1,258 2,160 84,274 201,758 
Special Mention1,958 937 1,642 974 1,000 17,024 23,005 46,540 
Substandard8,926 1,165 570 6,671 2,382 5,191 26,282 51,187 
Substandard non-accrual21 3,292 226 135 — 100 2,400 6,174 
Total commercial544,993 320,898 142,171 67,027 55,404 159,475 684,186 1,974,154 
Commercial real estate
Pass883,688 819,133 478,452 297,525 161,409 198,419 13,083 2,851,709 
Watch77,346 56,113 64,282 96,664 21,592 5,758 4,700 326,455 
Special Mention11,943 5,389 12,386 1,420 6,917 5,471 — 43,526 
Substandard5,340 13,528 3,454 1,907 10,248 62 — 34,539 
Substandard non-accrual— 3,959 33 — 1,647 5 — 5,644 
Total commercial real estate978,317 898,122 558,607 397,516 201,813 209,715 17,783 3,261,873 
Real estate construction
Pass219,112 191,724 68,015 1,490 1,901 1,751 18,911 502,904 
Watch8,530 12,019 3,169 48 — 1,398 — 25,164 
Special Mention— — — 1 — — — 1 
Substandard2,400 — — — — — — 2,400 
Total real estate construction230,042 203,743 71,184 1,539 1,901 3,149 18,911 530,469 
Retail real estate
Pass396,547 456,158 175,148 77,569 56,887 267,387 209,903 1,639,599 
Watch2,928 2,991 1,846 1,444 1,063 27 221 10,520 
Special Mention945 — — — — 393 — 1,338 
Substandard77 732 198 81 141 1,293 7 2,529 
Substandard non-accrual10 191 107 32 390 1,708 658 3,096 
Total retail real estate400,507 460,072 177,299 79,126 58,481 270,808 210,789 1,657,082 
Retail other
Pass134,567 43,512 13,141 13,086 5,646 991 91,028 301,971 
Substandard non-accrual14 134 3 — — 2 — 153 
Total retail other134,581 43,646 13,144 13,086 5,646 993 91,028 302,124 
Total portfolio loans$2,288,440 $1,926,481 $962,405 $558,294 $323,245 $644,140 $1,022,697 $7,725,702 
As of December 31, 2021
Term Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
Risk Grade Ratings20212020201920182017Prior
Commercial
Pass$512,729 $228,811 $107,877 $84,873 $74,351 $122,418 $616,697 $1,747,756 
Watch13,847 5,913 14,274 5,060 1,361 2,866 50,261 93,582 
Special Mention7,062 898 5,961 4,025 6,790 11,845 32,846 69,427 
Substandard3,595 3,362 3,136 1,855 1,125 5,459 7,585 26,117 
Substandard non-accrual4,126 364 142 — 320 52 2,000 7,004 
Total commercial541,359 239,348 131,390 95,813 83,947 142,640 709,389 1,943,886 
Commercial real estate
Pass969,548 637,550 425,850 235,928 200,373 198,002 15,190 2,682,441 
Watch51,560 38,820 123,324 48,088 46,761 32,608 2,143 343,304 
Special Mention9,542 7,060 6,585 10,098 6,357 9,870 183 49,695 
Substandard21,002 3,781 1,218 11,451 521 421 — 38,394 
Substandard non-accrual112 181 359 1,893 3,407 21 — 5,973 
Total commercial real estate1,051,764 687,392 557,336 307,458 257,419 240,922 17,516 3,119,807 
Real estate construction
Pass202,082 123,491 31,927 3,155 738 1,223 7,181 369,797 
Watch7,886 4,159 54 — 1,574 120 — 13,793 
Special Mention— — 6 — — — — 6 
Substandard— 2,400 — — — — — 2,400 
Total real estate construction209,968 130,050 31,987 3,155 2,312 1,343 7,181 385,996 
Retail real estate
Pass523,541 215,068 96,617 79,158 82,478 281,737 213,246 1,491,845 
Watch4,100 2,460 1,780 1,312 343 150 2,229 12,374 
Special Mention1,965 27 — — — — — 1,992 
Substandard1,369 232 12 71 165 1,687 331 3,867 
Substandard non-accrual235 63 — 16 227 1,705 652 2,898 
Total retail real estate531,210 217,850 98,409 80,557 83,213 285,279 216,458 1,512,976 
Retail other
Pass59,366 22,305 26,126 16,189 7,180 1,326 93,770 226,262 
Substandard non-accrual34 10 — 14 13 — — 71 
Total retail other59,400 22,315 26,126 16,203 7,193 1,326 93,770 226,333 
Total portfolio loans$2,393,701 $1,296,955 $845,248 $503,186 $434,084 $671,510 $1,044,314 $7,188,998 
Summary of portfolio loans that are past due and still accruing or on a non-accrual status
An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on non-accrual status, is as follows (dollars in thousands):
As of December 31, 2022
Loans past due, still accruingNon-accrual
Loans
30-59 Days60-89 Days90+Days
Past due and non-accrual loans
Commercial $2 $— $— $6,174 
Commercial real estate124 — — 5,644 
Retail real estate4,709 1,239 673 3,096 
Retail other414 60 — 153 
Total past due and non-accrual loans$5,249 $1,299 $673 $15,067 
As of December 31, 2021
Loans past due, still accruingNon-accrual
Loans
30-59 Days60-89 Days90+Days
Past due and non-accrual loans
Commercial $363 $10 $213 $7,004 
Commercial real estate151 441 — 5,973 
Real estate construction56 — — — 
Retail real estate3,312 1,830 693 2,898 
Retail other82 16 — 71 
Total past due and non-accrual loans$3,964 $2,297 $906 $15,946 
Summary of TDR loans
TDR loan balances are summarized as follows (dollars in thousands):
As of December 31,
20222021
TDRs
In compliance with modified terms$3,032 $1,801 
Non-performing TDRs537 551 
Total TDRs$3,569 $2,352 
Loans that were designated as TDRs during the years ended as of the dates indicated are summarized as follows (dollars in thousands):
Newly Designated TDRs
Recorded Investment1
Number of
Contracts
Rate
Modification2
Payment
Modification2
December 31, 2022
Commercial 3$136 $996 
Retail real estate1— 517 
Total4$136 $1,513 
December 31, 2021
Commercial 1$364 $— 
December 31, 2020
Commercial 3$130 $— 
Commercial real estate1651 — 
Real estate construction4— 986 
Total8$781 $986 
___________________________________________
1.Recorded investment for newly designated TDR’s that were still outstanding as of the dates indicated.
2.TDRs may include multiple concessions; those that include an interest rate concession and payment concession are shown in the rate modification column.
Schedule of suspended requirements under GAAP related to TDR classification The Company’s TDR loan totals do not include the following modified loans with payment deferrals that fall under the CARES Act or Interagency Statement that suspended requirements under GAAP related to TDR classification (dollars in thousands):
As of December 31, 2022As of December 31, 2021
Number of
Contracts		Recorded
Investment		Number of
Contracts		Recorded
Investment
COVID-19 loan modifications
Commercial loans: Interest-only deferrals8$20,556 32$128,730 
Retail loans: Mortgage and personal loan deferrals199 2137 
Total COVID-19 loans modifications9$20,655 34$128,867 
Schedule of details of impaired loans, segregated by category Average recorded investment is calculated using the most recent four quarters (dollars in thousands):
As of December 31, 2022
Unpaid
Principal
Balance		Recorded InvestmentAverage
Recorded
Investment
With No
Allowance		With
Allowance		TotalRelated
Allowance
Loans evaluated individually
Commercial $9,589 $656 $5,918 $6,574 $2,476 $6,761 
Commercial real estate8,039 2,334 3,903 6,237 2,000 5,219 
Real estate construction247 247 — 247 — 260 
Retail real estate2,733 2,564 25 2,589 25 2,311 
Total loans evaluated individually$20,608 $5,801 $9,846 $15,647 $4,501 $14,551 
As of December 31, 2021
Unpaid
Principal
Balance		Recorded InvestmentAverage
Recorded
Investment
With No
Allowance		With
Allowance		TotalRelated
Allowance
Loans evaluated individually
Commercial$10,247 $498 $6,490 $6,988 $3,564 $8,791 
Commercial real estate6,456 5,750 — 5,750 — 6,390 
Real estate construction272 272 — 272 — 282 
Retail real estate2,514 2,345 25 2,370 25 4,093 
Total loans evaluated individually$19,489 $8,865 $6,515 $15,380 $3,589 $19,556 
Schedule of activity on the allowance for loan losses
The following tables summarize activity in the ACL attributable to each loan category. Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands):
CommercialCommercial
Real Estate		Real Estate
Construction		Retail Real
Estate		Retail OtherTotal
ACL Balance, December 31, 2019$18,291 $21,190 $3,204 $10,495 $568 $53,748 
Adoption of ASC 326-30715 9,306 2,954 3,292 566 16,833 
Provision for credit losses10,832 17,511 1,452 9,050 (48)38,797 
Charged-off(6,376)(1,972)(18)(2,057)(665)(11,088)
Recoveries404 195 601 1,212 346 2,758 
ACL balance, December 31, 202023,866 46,230 8,193 21,992 767 101,048 
Day 1 PCD1
3,546 336 — 129 167 4,178 
Provision for credit losses(2,160)(7,651)(3,180)(4,456)2,346 (15,101)
Charged-off(2,026)(925)(209)(1,145)(478)(4,783)
Recoveries629 259 298 1,069 290 2,545 
ACL balance, December 31, 202123,855 38,249 5,102 17,589 3,092 87,887 
Provision for credit losses497 892 1,142 219 1,873 4,623 
Charged-off(1,069)(1,375)(23)(251)(461)(3,179)
Recoveries577 533 236 636 295 2,277 
ACL balance, December 31, 2022$23,860 $38,299 $6,457 $18,193 $4,799 $91,608 
__________________________________________
1.The Day 1 PCD is attributable to the CAC acquisition.
Schedule of allowance for loan losses and recorded investments in portfolio loans, by category
The following tables present the ACL and amortized cost of portfolio loans by category (dollars in thousands):
As of December 31, 2022
Portfolio LoansACL Attributed to Portfolio Loans
Collectively
Evaluated for
Impairment		Individually
Evaluated for
Impairment		TotalCollectively
Evaluated for
Impairment		Individually
Evaluated for
Impairment		Total
Portfolio loan category
Commercial$1,967,580 $6,574 $1,974,154 $21,384 $2,476 $23,860 
Commercial real estate3,255,636 6,237 3,261,873 36,299 2,000 38,299 
Real estate construction530,222 247 530,469 6,457 — 6,457 
Retail real estate1,654,493 2,589 1,657,082 18,168 25 18,193 
Retail other302,124 — 302,124 4,799 — 4,799 
Portfolio loans and related ACL$7,710,055 $15,647 $7,725,702 $87,107 $4,501 $91,608 
As of December 31, 2021
Portfolio LoansACL Attributed to Portfolio Loans
Collectively
Evaluated for
Impairment		Individually
Evaluated for
Impairment		TotalCollectively
Evaluated for
Impairment		Individually
Evaluated for
Impairment		Total
Portfolio loan category
Commercial$1,936,898 $6,988 $1,943,886 $20,291 $3,564 $23,855 
Commercial real estate3,114,057 5,750 3,119,807 38,249 — 38,249 
Real estate construction385,724 272 385,996 5,102 — 5,102 
Retail real estate1,510,606 2,370 1,512,976 17,564 25 17,589 
Retail other226,333 — 226,333 3,092 — 3,092 
Portfolio loans and related ACL$7,173,618 $15,380 $7,188,998 $84,298 $3,589 $87,887