Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Loans Credit Quality Indicators

The following tables present loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the dates presented:

	September 30, 2022
	Risk Rating
(dollars in thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Pass	$	228,599	$	363,347	$	278,153	$	432,862	$	238,351	$	760,947	$	21,051	$	—	$	2,323,310
Special mention	—		—		—		9,407		20,189		118,852		—		—		148,448
Substandard	—		3,226		1,319		12,652		14,937		58,690		—		—		90,824
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	228,599		366,573		279,472		454,921		273,477		938,489		21,051		—		2,562,582
Commercial and Industrial
Pass	185,389		293,593		97,811		72,039		66,958		137,693		574,820		—		1,428,303
Special mention	—		14,849		—		4,213		2,091		7,193		13,466		—		41,812
Substandard	—		—		—		13,018		1,219		1,979		15,548		—		31,764
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial and Industrial	185,389		308,442		97,811		89,270		70,268		146,865		603,834		—		1,501,879
Commercial Construction
Pass	83,458		171,331		43,840		32,949		4,331		3,150		28,758		—		367,817
Special mention	—		—		—		5,565		—		—		—		—		5,565
Substandard	—		—		—		—		—		1,897		—		—		1,897
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	83,458		171,331		43,840		38,514		4,331		5,047		28,758		—		375,279
Business Banking
Pass	213,494		240,694		91,018		116,429		86,469		287,074		107,849		679		1,143,706
Special mention	—		85		189		851		3,076		4,796		121		95		9,213
Substandard	—		—		3,082		2,114		2,983		15,760		171		574		24,684
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	213,494		240,779		94,289		119,394		92,528		307,630		108,141		1,348		1,177,603
Consumer Real Estate
Pass	224,054		150,932		93,003		76,097		31,556		198,505		541,548		21,267		1,336,962
Special mention	—		—		—		—		—		895		—		—		895
Substandard	38		89		137		292		1,220		9,797		636		2,899		15,108
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	224,092		151,021		93,140		76,389		32,776		209,197		542,184		24,166		1,352,965
Other Consumer
Pass	17,127		12,046		6,385		4,028		1,399		848		83,463		1,278		126,574
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		4		30		—		—		—		—		34
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	17,127		12,046		6,389		4,058		1,399		848		83,463		1,278		126,608
Pass	952,121		1,231,943		610,210		734,404		429,064		1,388,217		1,357,489		23,224		6,726,672
Special mention	—		14,934		189		20,036		25,356		131,736		13,587		95		205,933
Substandard	38		3,315		4,542		28,106		20,359		88,123		16,355		3,473		164,311
Doubtful	—		—		—		—		—		—		—		—		—
Total Loan Balance	$	952,159	$	1,250,192	$	614,941	$	782,546	$	474,779	$	1,608,076	$	1,387,431	$	26,792	$	7,096,916

	December 31, 2021
	Risk Rating
(dollars in thousands)	2021		2020		2019		2018		2017		2016 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Pass	$	385,347	$	316,003	$	412,191	$	314,303	$	213,019	$	698,992	$	35,448	$	—	$	2,375,303
Special mention	—		—		37,786		6,401		40,445		75,938		—		—		160,570
Substandard	—		1,356		18,743		14,039		12,555		106,461		1,500		—		154,654
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Real Estate	385,347		317,359		468,720		334,743		266,019		881,391		36,948		—		2,690,528
Commercial and Industrial
Pass	437,483		126,371		115,359		83,030		37,176		132,182		536,554		—		1,468,155
Special mention	46		—		3,060		2,546		72		832		8,887		—		15,443
Substandard	—		—		14,221		1,336		4,174		3,456		4,961		—		28,148
Doubtful	—		—		1,777		—		—		—		—		—		1,777
Total Commercial and Industrial	437,529		126,371		134,417		86,912		41,422		136,470		550,402		—		1,513,523
Commercial Construction
Pass	142,321		108,405		111,512		16,838		989		3,539		30,036		—		413,640
Special mention	—		—		—		—		—		4,458		—		—		4,458
Substandard	—		2,157		2,020		—		—		2,480		—		—		6,657
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	142,321		110,562		113,532		16,838		989		10,477		30,036		—		424,755
Business Banking
Pass	257,264		107,791		141,411		110,586		79,187		293,215		107,093		443		1,096,990
Special mention	104		151		1,986		1,365		1,057		5,929		160		111		10,863
Substandard	41		106		1,579		3,277		1,645		19,591		977		625		27,841
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	257,409		108,048		144,976		115,228		81,889		318,735		108,230		1,179		1,135,693
Consumer Real Estate
Pass	137,465		100,995		91,981		48,531		39,029		231,861		442,530		23,391		1,115,783
Special mention	—		—		—		—		—		937		—		—		937
Substandard	—		—		184		1,625		1,355		5,664		876		1,161		10,865
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	137,465		100,995		92,165		50,156		40,384		238,462		443,406		24,552		1,127,585
Other Consumer
Pass	19,976		9,396		7,120		2,878		613		2,037		57,702		1,130		100,852
Special mention	—		—		—		—		—		—		—		—		—
Substandard	83		52		141		215		408		4,407		201		1,547		7,054
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	20,059		9,448		7,261		3,093		1,021		6,444		57,903		2,677		107,906
Pass	1,379,856		768,961		879,574		576,166		370,013		1,361,826		1,209,363		24,964		6,570,723
Special Mention	150		151		42,832		10,312		41,574		88,094		9,047		111		192,271
Substandard	124		3,671		36,888		20,492		20,137		142,059		8,515		3,333		235,219
Doubtful	—		—		1,777		—		—		—		—		—		1,777
Total Loan Balance	$	1,380,130	$	772,783	$	961,071	$	606,970	$	431,724	$	1,591,979	$	1,226,925	$	28,408	$	6,999,990

The following tables present loan balances by year of origination and performing and nonperforming status for our portfolio segments as of the dates presented:

	September 30, 2022
(dollars in thousands)	2022		2021		2020		2019		2018		2017 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Performing	$	228,599	$	366,573	$	279,472	$	454,441	$	273,477	$	931,136	$	21,051	$	—	$	2,554,749
Nonperforming	—		—		—		480		—		7,353		—		—		7,833
Total Commercial Real Estate	228,599		366,573		279,472		454,921		273,477		938,489		21,051		—		2,562,582
Commercial and Industrial
Performing	185,389		308,442		97,811		89,270		70,214		146,814		603,604		—		1,501,544
Nonperforming	—		—		—		—		54		51		230		—		335
Total Commercial and Industrial	185,389		308,442		97,811		89,270		70,268		146,865		603,834		—		1,501,879
Commercial Construction
Performing	83,458		171,331		43,840		38,514		4,331		4,663		28,758		—		374,895
Nonperforming	—		—		—		—		—		384		—		—		384
Total Commercial Construction	83,458		171,331		43,840		38,514		4,331		5,047		28,758		—		375,279
Business Banking
Performing	213,494		240,779		94,289		119,050		90,907		303,348		108,039		1,252		1,171,158
Nonperforming	—		—		—		344		1,621		4,282		102		96		6,445
Total Business Banking	213,494		240,779		94,289		119,394		92,528		307,630		108,141		1,348		1,177,603
Consumer Real Estate
Performing	224,092		150,885		92,672		75,953		32,401		204,232		542,005		23,352		1,345,592
Nonperforming	—		136		468		436		375		4,965		179		814		7,373
Total Consumer Real Estate	224,092		151,021		93,140		76,389		32,776		209,197		542,184		24,166		1,352,965
Other Consumer
Performing	17,127		12,046		6,116		4,058		1,399		717		83,463		1,275		126,201
Nonperforming	—		—		273		—		—		131		—		3		407
Total Other Consumer	17,127		12,046		6,389		4,058		1,399		848		83,463		1,278		126,608
Performing	952,159		1,250,056		614,200		781,286		472,729		1,590,910		1,386,920		25,879		7,074,139
Nonperforming	—		136		741		1,260		2,050		17,166		511		913		22,777
Total Loan Balance	$	952,159	$	1,250,192	$	614,941	$	782,546	$	474,779	$	1,608,076	$	1,387,431	$	26,792	$	7,096,916

	December 31, 2021
(dollars in thousands)	2021		2020		2019		2018		2017		2016 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Performing	$	385,347	$	317,359	$	461,613	$	332,482	$	259,723	$	865,567	$	36,948	$	—	$	2,659,039
Nonperforming	—				7,107		2,261		6,296		15,824		—		—		31,488
Total Commercial Real Estate	385,347		317,359		468,720		334,743		266,019		881,391		36,948		—		2,690,528
Commercial and Industrial
Performing	437,529		126,371		123,944		86,852		38,540		136,427		548,622		—		1,498,285
Nonperforming	—		—		10,473		60		2,882		43		1,780		—		15,239
Total Commercial and Industrial	437,529		126,371		134,417		86,912		41,422		136,470		550,402		—		1,513,523
Commercial Construction
Performing	142,321		110,562		111,445		16,838		989		10,093		30,036		—		422,284
Nonperforming	—		—		2,087		—		—		384		—		—		2,471
Total Commercial Construction	142,321		110,562		113,532		16,838		989		10,477		30,036		—		424,755
Business Banking
Performing	257,368		107,984		144,689		113,820		81,195		311,673		108,202		1,122		1,126,052
Nonperforming	41		64		287		1,408		694		7,062		28		57		9,641
Total Business Banking	257,409		108,048		144,976		115,228		81,889		318,735		108,230		1,179		1,135,693
Consumer Real Estate
Performing	137,465		100,253		91,689		49,853		39,657		234,297		443,238		23,839		1,120,291
Nonperforming	—		742		476		303		727		4,165		168		713		7,294
Total Consumer Real Estate	137,465		100,995		92,165		50,156		40,384		238,462		443,406		24,552		1,127,585
Other Consumer
Performing	20,059		9,290		7,261		3,093		1,021		6,444		57,903		2,677		107,748
Nonperforming	—		158		—		—		—		—		—		—		158
Total Other Consumer	20,059		9,448		7,261		3,093		1,021		6,444		57,903		2,677		107,906
Performing	1,380,089		771,819		940,641		602,938		421,125		1,564,501		1,224,949		27,638		6,933,699
Nonperforming	41		964		20,430		4,032		10,599		27,478		1,976		770		66,291
Total Loan Balance	$	1,380,130	$	772,783	$	961,071	$	606,970	$	431,724	$	1,591,979	$	1,226,925	$	28,408	$	6,999,990

The following tables present collateral-dependent loans by class of loans as of the dates presented:

	September 30, 2022
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets		Investment/Cash		Other
Commercial real estate	$	5,837	$	—	$	480	$	—
Commercial and industrial	—		658		—		—
Commercial construction	1,674		—		—		—
Business banking	524		1,175		—		—
Consumer real estate	576		—		—		—
Total	$	8,611	$	1,833	$	480	$	—

	December 31, 2021
	Type of Collateral
(dollars in thousands)	Real Estate		Business Assets		Investment/Cash		Other
Commercial real estate	$	28,046	$	—	$	—	$	—
Commercial and industrial	259		4,905		—		10,473
Commercial construction	4,210		—		—		—
Business banking	910		1,636		—		—
Consumer real estate	1,031		—		—		—
Total	$	34,456	$	6,541	$	—	$	10,473

Schedule of Age Analysis of Past Due Loans Segregated by Class of Loans

The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented:

	September 30, 2022
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Non - performing		Total Past Due Loans		Total Loans
Commercial real estate	$	2,554,749	$	—	$	—	$	7,833	$	7,833	$	2,562,582
Commercial and industrial	1,501,512		29		3		335		367		1,501,879
Commercial construction	374,895		—		—		384		384		375,279
Business banking	1,168,727		574		1,857		6,445		8,876		1,177,603
Consumer real estate	1,341,890		2,188		1,514		7,373		11,075		1,352,965
Other consumer	126,027		119		55		407		581		126,608
Total	$	7,067,800	$	2,910	$	3,429	$	22,777	$	29,116	$	7,096,916

	December 31, 2021
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		Non - performing		Total Past Due Loans		Total Loans
Commercial real estate	$	2,659,040	$	—	$	—	$	31,488	$	31,488	$	2,690,528
Commercial and industrial	1,497,755		529		—		15,239		15,768		1,513,523
Commercial construction	421,834		450		—		2,471		2,921		424,755
Business banking	1,124,748		813		491		9,641		10,945		1,135,693
Consumer real estate	1,117,074		1,087		2,130		7,294		10,511		1,127,585
Other consumer	107,492		206		50		158		414		107,906
Total(1)	$	6,927,943	$	3,085	$	2,671	$	66,291	$	72,047	$	6,999,990
(1) We had eight loans that were modified totaling $28.8 million under the CARES Act at December 31, 2021. These customers were not considered past due as a result of their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Due to the modification program, this delinquency table may not accurately reflect the credit risk associated with these loans.

Schedule of Loans on Nonaccrual Status and Loans Past Due 90 days Or More

The following table is a summary of nonperforming assets as of the dates presented:

	Nonperforming Assets
(dollars in thousands)	September 30, 2022			December 31, 2021
Nonperforming Assets
Nonaccrual loans		$	18,917		$	44,517
Nonaccrual TDRs		3,860			21,774
Total Nonaccrual Loans		22,777			66,291
OREO		6,022			13,313
Total Nonperforming Assets		$	28,799		$	79,604

The following tables present loans on nonaccrual status by class of loan for the year-to-date periods presented:

	September 30, 2022
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	31,488	$	7,833	$	6,317	$	625
Commercial and industrial	15,239		335		—		86
Commercial construction	2,471		384		—		—
Business banking	9,641		6,445		1,092		242
Consumer real estate	7,294		7,373		—		178
Other consumer	158		407		—		1
Total	$	66,291	$	22,777	$	7,409	$	1,132

(1) Represents only cash payments received and applied to interest on nonaccrual loans for the nine months ended September 30, 2022.

	December 31, 2021
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance		Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	101,070	$	31,488	$	28,046	$	158
Commercial and industrial	16,985		15,239		5,707		74
Commercial construction	384		2,471		2,020		(28)
Business banking	17,122		9,641		1,696		427
Consumer real estate	11,117		7,294		—		496
Other consumer	96		158		—		1
Total	$	146,774	$	66,291	$	37,469	$	1,128

(1) Represents only cash payments received and applied to interest on nonaccrual loans for the twelve months ended December 31, 2021.

Schedule of Allowance for Credit Loss

The following tables present activity in the ACL for the periods presented:

	Three Months Ended September 30, 2022
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	45,314	$	21,526	$	6,583	$	12,157	$	9,673	$	2,842	$	98,095
Provision for credit losses on loans(1)	(2,997)		3,806		(1,159)		950		1,075		634		2,309
Charge-offs	(628)		—		—		(178)		(161)		(272)		(1,239)
Recoveries	145		6		—		242		39		97		529
Net (Charge-offs)/ Recoveries	(483)		6		—		64		(122)		(175)		(710)
Balance at End of Period	$	41,834	$	25,338	$	5,424	$	13,171	$	10,626	$	3,301	$	99,694
(1) Excludes the provision for credits losses for unfunded commitments.

	Three Months Ended September 30, 2021
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	63,186	$	14,426	$	5,905	$	14,756	$	8,647	$	2,717	$	109,637
Provision for credit losses on loans(1)	(7,856)		11,599		1,391		(2,689)		(80)		(63)		2,302
Charge-offs	(3,661)		(2)		(56)		(167)		(76)		(245)		(4,207)
Recoveries	1		216		2		241		33		123		616
Net (Charge-offs)/Recoveries	(3,660)		214		(54)		74		(43)		(122)		(3,591)
Balance at End of Period	$	51,670	$	26,239	$	7,242	$	12,141	$	8,524	$	2,532	$	108,348

(1) Excludes the provision for credit losses for unfunded commitments.

	Nine Months Ended September 30, 2022
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	50,700	$	19,727	$	5,355	$	11,338	$	8,733	$	2,723	$	98,576
Provision for credit losses on loans(1)	(8,471)		4,573		68		3,158		2,083		1,393		2,804
Charge-offs	(827)		(5,797)		—		(1,924)		(299)		(1,052)		(9,899)
Recoveries	432		6,835		1		599		109		237		8,213
Net (Charge-offs)/Recoveries	(395)		1,038		1		(1,325)		(190)		(815)		(1,686)
Balance at End of Period	$	41,834	$	25,338	$	5,424	$	13,171	$	10,626	$	3,301	$	99,694
(1) Excludes the provision for credits losses for unfunded commitments.

	Nine Months Ended September 30, 2021
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking(1)		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	65,656	$	16,100	$	7,239	$	15,917	$	10,014	$	2,686	$	117,612
Provision for credit losses on loans(1)	(2,922)		14,552		54		(2,736)		(1,335)		(1)		7,612
Charge-offs	(12,030)		(4,777)		(56)		(1,494)		(422)		(698)		(19,477)
Recoveries	966		364		5		454		267		545		2,601
Net (Charge-offs)/Recoveries	(11,064)		(4,413)		(51)		(1,040)		(155)		(153)		(16,876)
Balance at End of Period	$	51,670	$	26,239	$	7,242	$	12,141	$	8,524	$	2,532	$	108,348
(1) Excludes the provision for credits losses for unfunded commitments.