Portfolio Loans (Tables)

6 Months Ended

Jun. 30, 2022

Portfolio Loans

Distribution of portfolio loans

	As of
	June 30,		December 31,
	2022		2021
Portfolio loans
Commercial	$	1,919,680	$	1,943,886
Commercial real estate		3,228,090		3,119,807
Real estate construction		466,185		385,996
Retail real estate		1,590,913		1,512,976
Retail other		292,910		226,333
Total portfolio loans		7,497,778		7,188,998
ACL		(88,757)		(87,887)
Portfolio loans, net	$	7,409,021	$	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 June 30, 2022
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual		Total
Portfolio loans
Commercial	$	1,743,101	$	86,902	$	44,434	$	38,425	$	6,818	$	1,919,680
Commercial real estate		2,867,188		265,920		47,867		40,879		6,236		3,228,090
Real estate construction		450,887		12,848		3		2,400		47		466,185
Retail real estate		1,574,634		7,847		2,022		3,759		2,651		1,590,913
Retail other		292,822		—		—		—		88		292,910
Total portfolio loans	$	6,928,632	$	373,517	$	94,326	$	85,463	$	15,840	$	7,497,778

	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 June 30, 2022
	Term Loans Amortized Cost Basis by Origination Year													Revolving
Risk Grade Ratings	2022		2021		2020		2019		2018			Prior		Loans		Total
Commercial
Pass	$	318,589	$	351,192	$	154,862	$	65,399	$	57,255	$	159,597	$	636,207	$	1,743,101
Watch		16,715		21,174		3,974		8,795		1,416		3,106		31,722		86,902
Special Mention		1,754		737		1,458		1,011		3,301		17,611		18,562		44,434
Substandard		3,332		1,408		2,754		7,212		597		5,486		17,636		38,425
Substandard non-accrual		—		3,766		326		139		—		519		2,068		6,818
Total commercial		340,390		378,277		163,374		82,556		62,569		186,319		706,195		1,919,680
Commercial real estate
Pass		594,333		921,519		529,485		341,259		186,369		273,412		20,811		2,867,188
Watch		44,855		26,003		50,638		95,099		20,877		22,983		5,465		265,920
Special Mention		5,777		5,412		13,455		842		6,630		15,482		269		47,867
Substandard		11,864		12,820		3,009		1,814		10,419		953		—		40,879
Substandard non-accrual		—		4,210		162		—		1,851		13		—		6,236
Total commercial real estate		656,829		969,964		596,749		439,014		226,146		312,843		26,545		3,228,090
Real estate construction
Pass		131,894		187,283		86,891		23,572		2,495		2,256		16,496		450,887
Watch		3,299		4,592		3,419		51		—		1,487		—		12,848
Special Mention		—		—		—		3		—		—		—		3
Substandard		—		—		2,400		—		—		—		—		2,400
Substandard non-accrual		—		—		47		—		—		—		—		47
Total real estate construction		135,193		191,875		92,757		23,626		2,495		3,743		16,496		466,185
Retail real estate
Pass		253,800		472,480		187,596		82,372		64,928		302,911		210,547		1,574,634
Watch		1,196		1,185		1,990		1,584		1,168		134		590		7,847
Special Mention		144		1,878		—		—		—		—		—		2,022
Substandard		—		1,184		215		87		15		2,175		83		3,759
Substandard non-accrual		—		436		115		—		43		1,653		404		2,651
Total retail real estate		255,140		477,163		189,916		84,043		66,154		306,873		211,624		1,590,913
Retail other
Pass		103,386		51,497		17,208		19,075		10,189		3,438		88,029		292,822
Substandard non-accrual		—		88		—		—		—		—		—		88
Total retail other		103,386		51,585		17,208		19,075		10,189		3,438		88,029		292,910
Total portfolio loans	$	1,490,938	$	2,068,864	$	1,060,004	$	648,314	$	367,553	$	813,216	$	1,048,889	$	7,497,778

	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 June 30, 2022
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Past due and non-accrual loans
Commercial	$	209	$	24	$	625	$	6,818
Commercial real estate		356		—		—		6,236
Real estate construction		—		—		—		47
Retail real estate		2,428		1,990		1,019		2,651
Retail other		143		7		10		88
Total past due and non-accrual loans	$	3,136	$	2,021	$	1,654	$	15,840

	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
	June 30,		December 31,
	2022		2021
TDRs
In compliance with modified terms	$	2,017	$	1,801
30 – 89 days past due		12		—
Non-performing TDRs		508		551
Total TDRs	$	2,537	$	2,352

Loans that were newly designated as TDRs during the periods presented, are summarized as follows (dollars in thousands):

Three Months Ended June 30, 2022

Six Months Ended June 30, 2022

Recorded Investment

Recorded Investment

Number of

Rate

Payment

Number of

Rate

Payment

Contracts

Modification (1)

Modification (1)

Contracts

Modification (1)

Modification (1)

Commercial

1

$

—

$

446

1

$

—

$

446

Three Months Ended June 30, 2021

Six Months Ended June 30, 2021

Recorded Investment

Recorded Investment

Number of

Rate

Payment

Number of

Rate

Payment

Contracts

Modification (1)

Modification (1)

Contracts

Modification (1)

Modification (1)

Commercial

—

$

—

$

—

1

$

463

$

—

Schedule of suspended requirements under GAAP related to TDR classification

	As of June 30, 2022				As of December 31, 2021
	Number of		Recorded		Number of		Recorded
	Contracts		Investment		Contracts		Investment
COVID-19 loan modifications
Commercial loans:
Interest-only deferrals		11	$	31,925		32	$	128,730
Retail loans:
Mortgage and personal loan deferrals		1		99		2		137
Total COVID-19 loans modifications		12	$	32,024		34	$	128,867

Schedule of details of impaired loans, segregated by category

	As of June 30, 2022
	Unpaid		Recorded Investment								Average
	Principal		With No		With				Related		Recorded
	Balance		Allowance		Allowance		Total		Allowance		Investment
Loans evaluated individually
Commercial	$	10,282	$	932	$	6,092	$	7,024	$	2,826	$	8,317
Commercial real estate		8,099		1,923		4,100		6,023		2,000		5,748
Real estate construction		262		262		—		262		—		272
Retail real estate		2,290		2,121		25		2,146		25		2,890
Total loans evaluated individually	$	20,933	$	5,238	$	10,217	$	15,455	$	4,851	$	17,227

	As of 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 June 30, 2022
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL balance, March 31, 2022	$	24,173	$	37,339	$	5,705	$	17,555	$	3,441	$	88,213
Provision for credit losses		(743)		1,028		(63)		312		1,119		1,653
Charged-off		(208)		(1,372)		—		(17)		(82)		(1,679)
Recoveries		137		187		27		134		85		570
ACL balance, June 30, 2022	$	23,359	$	37,182	$	5,669	$	17,984	$	4,563	$	88,757

	Six Months Ended June 30, 2022
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL balance, December 31, 2021	$	23,855	$	38,249	$	5,102	$	17,589	$	3,092	$	87,887
Provision for credit losses		(492)		(190)		447		142		1,493		1,400
Charged-off		(208)		(1,372)		—		(33)		(191)		(1,804)
Recoveries		204		495		120		286		169		1,274
ACL balance, June 30, 2022	$	23,359	$	37,182	$	5,669	$	17,984	$	4,563	$	88,757

	Three Months Ended June 30, 2021
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
ACL balance, March 31, 2021	$	23,025	$	43,306	$	6,879	$	19,978	$	755	$	93,943
Day 1 PCD (1)		3,546		336		—		129		167		4,178
Provision for credit losses		(1,420)		(3,390)		671		404		2,035		(1,700)
Charged-off		(1,000)		(317)		—		(157)		(64)		(1,538)
Recoveries		205		39		49		151		83		527
ACL balance, June 30, 2021	$	24,356	$	39,974	$	7,599	$	20,505	$	2,976	$	95,410

	Six Months Ended June 30, 2021
			Commercial		Real Estate		Retail
	Commercial		Real Estate		Construction		Real Estate		Retail Other		Total
ACL balance, December 31, 2020	$	23,866	$	46,230	$	8,193	$	21,992	$	767	$	101,048
Day 1 PCD (1)		3,546		336		—		129		167		4,178
Provision for credit losses		(2,084)		(6,085)		(579)		(1,873)		2,125		(8,496)
Charged-off		(1,262)		(620)		(209)		(160)		(251)		(2,502)
Recoveries		290		113		194		417		168		1,182
ACL balance, June 30, 2021	$	24,356	$	39,974	$	7,599	$	20,505	$	2,976	$	95,410

(1) The Day 1 PCD is attributable to the CAC acquisition in the second quarter of 2021.

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 June 30, 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	$	1,912,656	$	7,024	$	1,919,680	$	20,533	$	2,826	$	23,359
Commercial real estate		3,222,067		6,023		3,228,090		35,182		2,000		37,182
Real estate construction		465,923		262		466,185		5,669		—		5,669
Retail real estate		1,588,767		2,146		1,590,913		17,959		25		17,984
Retail other		292,910		—		292,910		4,563		—		4,563
Portfolio loans and related ACL	$	7,482,323	$	15,455	$	7,497,778	$	83,906	$	4,851	$	88,757

	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