Portfolio Loans (Tables)

3 Months Ended

Mar. 31, 2022

Portfolio Loans

Distribution of portfolio loans

Loan Categories

The Company’s lending can be summarized into five primary categories: commercial loans, commercial real estate loans, real estate construction loans, retail real estate loans, and retail other loans.  Distributions of loan portfolio by loan category were as follows (dollars in thousands):

	As of
	March 31,		December 31,
	2022		2021
Portfolio loans
Commercial	$	1,906,595	$	1,943,886
Commercial real estate		3,134,794		3,119,807
Real estate construction		445,428		385,996
Retail real estate		1,544,365		1,512,976
Retail other		241,691		226,333
Total portfolio loans		7,272,873		7,188,998
ACL		(88,213)		(87,887)
Portfolio loans, net	$	7,184,660	$	7,101,111

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 March 31, 2022
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,725,369	$	73,471	$	74,967	$	26,028	$	6,760	$	1,906,595
Commercial real estate		2,769,016		262,411		53,195		47,567		2,605		3,134,794
Real estate construction		428,467		14,557		4		2,400		—		445,428
Retail real estate		1,523,791		11,352		2,062		4,071		3,089		1,544,365
Retail other		241,657		—		—		—		34		241,691
Total portfolio loans	$	6,688,300	$	361,791	$	130,228	$	80,066	$	12,488	$	7,272,873

	As of December 31, 2021
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,747,756	$	93,582	$	69,427	$	26,117	$	7,004	$	1,943,886
Commercial real estate		2,682,441		343,304		49,695		38,394		5,973		3,119,807
Real estate construction		369,797		13,793		6		2,400		—		385,996
Retail real estate		1,491,845		12,374		1,992		3,867		2,898		1,512,976
Retail other		226,262		—		—		—		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 March 31, 2022
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2022		2021		2020		2019		2018			Prior		Loans		Total
Commercial
Pass	$	220,582	$	386,332	$	187,571	$	82,617	$	80,606	$	187,281	$	580,380	$	1,725,369
Watch		1,641		13,751		4,536		9,391		1,412		3,315		39,425		73,471
Special Mention		2,668		4,799		191		6,125		3,753		17,998		39,433		74,967
Substandard		1,736		1,586		3,222		3,248		1,561		6,550		8,125		26,028
Substandard non-accrual		—		3,946		345		141		—		328		2,000		6,760
Total commercial		226,627		410,414		195,865		101,522		87,332		215,472		669,363		1,906,595
Commercial real estate
Pass		287,524		961,636		608,378		349,992		216,247		330,243		14,996		2,769,016
Watch		22,162		33,489		23,614		110,412		22,540		48,163		2,031		262,411
Special Mention		5,765		5,971		12,850		2,321		7,375		18,814		99		53,195
Substandard		1,232		20,611		3,034		1,028		10,429		11,233		—		47,567
Substandard non-accrual		—		111		172		359		1,946		17		—		2,605
Total commercial real estate		316,683		1,021,818		648,048		464,112		258,537		408,470		17,126		3,134,794
Real estate construction
Pass		65,127		184,303		127,358		31,709		2,575		2,004		15,391		428,467
Watch		3,816		5,640		3,518		52		—		1,531		—		14,557
Special Mention		—		—		—		4		—		—		—		4
Substandard		—		—		2,400		—		—		—		—		2,400
Total real estate construction		68,943		189,943		133,276		31,765		2,575		3,535		15,391		445,428
Retail real estate
Pass		114,026		490,691		205,598		99,087		74,589		332,410		207,390		1,523,791
Watch		1,629		1,208		1,830		1,628		1,269		172		3,616		11,352
Special Mention		145		1,892		25		—		—		—		—		2,062
Substandard		—		1,095		224		93		70		2,261		328		4,071
Substandard non-accrual		—		242		118		—		236		1,935		558		3,089
Total retail real estate		115,800		495,128		207,795		100,808		76,164		336,778		211,892		1,544,365
Retail other
Pass		36,922		54,381		19,799		22,563		12,982		5,594		89,416		241,657
Substandard non-accrual		—		34		—		—		—		—		—		34
Total retail other		36,922		54,415		19,799		22,563		12,982		5,594		89,416		241,691
Total portfolio loans	$	764,975	$	2,171,718	$	1,204,783	$	720,770	$	437,590	$	969,849	$	1,003,188	$	7,272,873

	As of December 31, 2021
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2021		2020		2019		2018		2017			Prior		Loans		Total
Commercial
Pass	$	512,729	$	228,811	$	107,877	$	84,873	$	74,351	$	122,418	$	616,697	$	1,747,756
Watch		13,847		5,913		14,274		5,060		1,361		2,866		50,261		93,582
Special Mention		7,062		898		5,961		4,025		6,790		11,845		32,846		69,427
Substandard		3,595		3,362		3,136		1,855		1,125		5,459		7,585		26,117
Substandard non-accrual		4,126		364		142		—		320		52		2,000		7,004
Total commercial		541,359		239,348		131,390		95,813		83,947		142,640		709,389		1,943,886
Commercial real estate
Pass		969,548		637,550		425,850		235,928		200,373		198,002		15,190		2,682,441
Watch		51,560		38,820		123,324		48,088		46,761		32,608		2,143		343,304
Special Mention		9,542		7,060		6,585		10,098		6,357		9,870		183		49,695
Substandard		21,002		3,781		1,218		11,451		521		421		—		38,394
Substandard non-accrual		112		181		359		1,893		3,407		21		—		5,973
Total commercial real estate		1,051,764		687,392		557,336		307,458		257,419		240,922		17,516		3,119,807
Real estate construction
Pass		202,082		123,491		31,927		3,155		738		1,223		7,181		369,797
Watch		7,886		4,159		54		—		1,574		120		—		13,793
Special Mention		—		—		6		—		—		—		—		6
Substandard		—		2,400		—		—		—		—		—		2,400
Total real estate construction		209,968		130,050		31,987		3,155		2,312		1,343		7,181		385,996
Retail real estate
Pass		523,541		215,068		96,617		79,158		82,478		281,737		213,246		1,491,845
Watch		4,100		2,460		1,780		1,312		343		150		2,229		12,374
Special Mention		1,965		27		—		—		—		—		—		1,992
Substandard		1,369		232		12		71		165		1,687		331		3,867
Substandard non-accrual		235		63		—		16		227		1,705		652		2,898
Total retail real estate		531,210		217,850		98,409		80,557		83,213		285,279		216,458		1,512,976
Retail other
Pass		59,366		22,305		26,126		16,189		7,180		1,326		93,770		226,262
Substandard non-accrual		34		10		—		14		13		—		—		71
Total retail other		59,400		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 a non-accrual status, is as follows (dollars in thousands):

	As of March 31, 2022
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	358	$	93	$	—	$	6,760
Commercial real estate		—		—		—		2,605
Real estate construction		—		48		—		—
Retail real estate		2,732		555		173		3,089
Retail other		123		7		24		34
Total past due and non-accrual loans	$	3,213	$	703	$	197	$	12,488

	As of December 31, 2021
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	363	$	10	$	213	$	7,004
Commercial real estate		151		441		—		5,973
Real estate construction		56		—		—		—
Retail real estate		3,312		1,830		693		2,898
Retail other		82		16		—		71
Total past due and non-accrual loans	$	3,964	$	2,297	$	906	$	15,946

Summary of TDR loans

Troubled Debt Restructurings

TDR loan balances are summarized as follows (dollars in thousands):

	As of
	March 31,		December 31,
	2022		2021
TDRs
In compliance with modified terms	$	1,771	$	1,801
Non-performing TDRs		529		551
Total TDRs	$	2,300	$	2,352

No loans were newly designated as TDRs during the three months ended March 31, 2022.  Loans that were newly designated as TDRs during the three months ended March 31, 2021, are summarized as follows (dollars in thousands):

	Three Months Ended March 31, 2021
			Recorded Investment
	Number of		Rate
	Contracts		Modification
Newly designated TDRs
Commercial		1	$	483

Schedule of details of impaired loans, segregated by category

	As of and for the Three Months Ended March 31, 2022
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,040	$	490	$	6,291	$	6,781	$	3,345	$	8,473
Commercial real estate		3,093		2,386		—		2,386		—		5,654
Real estate construction		266		266		—		266		—		277
Retail real estate		2,480		2,311		25		2,336		25		3,458
Total loans evaluated individually	$	15,879	$	5,453	$	6,316	$	11,769	$	3,370	$	17,862

	As of and for the Year Ended December 31, 2021
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,247	$	498	$	6,490	$	6,988	$	3,564	$	8,791
Commercial real estate		6,456		5,750		—		5,750		—		6,390
Real estate construction		272		272		—		272		—		282
Retail real estate		2,514		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.  Allocation of a portion of the ACL to one category does not preclude its availability to absorb losses in other categories (dollars in thousands):

	Three Months Ended March 31, 2022
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL beginning balance	$	23,855	$	38,249	$	5,102	$	17,589	$	3,092	$	87,887
Provision for credit losses		251		(1,218)		510		(170)		374		(253)
Charged-off		—		—		—		(16)		(109)		(125)
Recoveries		67		308		93		152		84		704
ACL ending balance	$	24,173	$	37,339	$	5,705	$	17,555	$	3,441	$	88,213

	Three Months Ended March 31, 2021
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL beginning balance	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048
Provision for credit losses		(665)		(2,695)		(1,250)		(2,276)		90		(6,796)
Charged-off		(262)		(303)		(209)		(3)		(187)		(964)
Recoveries		86		74		145		265		85		655
ACL ending balance	$	23,025	$	43,306	$	6,879	$	19,978	$	755	$	93,943

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 March 31, 2022
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively		Individually				Collectively		Individually
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Portfolio loan category
Commercial	$	1,899,814	$	6,781	$	1,906,595	$	20,828	$	3,345	$	24,173
Commercial real estate		3,132,408		2,386		3,134,794		37,339		—		37,339
Real estate construction		445,162		266		445,428		5,705		—		5,705
Retail real estate		1,542,029		2,336		1,544,365		17,530		25		17,555
Retail other		241,691		—		241,691		3,441		—		3,441
Portfolio loans and related ACL	$	7,261,104	$	11,769	$	7,272,873	$	84,843	$	3,370	$	88,213

	As of December 31, 2021
	Portfolio Loans						ACL Attributed to Portfolio Loans
	Collectively		Individually				Collectively		Individually
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Portfolio loan category
Commercial	$	1,936,898	$	6,988	$	1,943,886	$	20,291	$	3,564	$	23,855
Commercial real estate		3,114,057		5,750		3,119,807		38,249		—		38,249
Real estate construction		385,724		272		385,996		5,102		—		5,102
Retail real estate		1,510,606		2,370		1,512,976		17,564		25		17,589
Retail other		226,333		—		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