Allowance for Credit Losses (ACL) (Tables)

9 Months Ended

Sep. 30, 2021

Allowance for Credit Losses (ACL)

Schedule of changes in allowance for loan losses

The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows:

	Residential		Residential				Residential		Other								CRE Owner		Non Owner
(Dollars in thousands)	Mortgage Sr.		Mortgage Jr.		HELOC		Construction		C&D		Consumer		Multifamily		Municipal		Occupied		Occupied CRE		C & I		Total
Three Months Ended September 30, 2021
Allowance for credit losses:
Balance at end of period June 30, 2021	$	55,820	$	825	$	14,550	$	4,488	$	45,488	$	25,697	$	5,883	$	1,063	$	75,492	$	90,404	$	30,691	$	350,401
Charge-offs		(15)		—		(149)		—		—		(2,366)		—		—		(4)		(241)		(1,072)		(3,847)
Recoveries		332		48		720		2		748		577		—		—		332		173		869		3,801
Net (charge offs) recoveries		317		48		571		2		748		(1,789)		—		—		328		(68)		(203)		(46)
(Recovery) provision (1)		(4,587)		(174)		(204)		295		(10,337)		332		(1,299)		(554)		(10,611)		(7,458)		(1,614)		(36,211)
Balance at end of period September 30, 2021	$	51,550	$	699	$	14,917	$	4,785	$	35,899	$	24,240	$	4,584	$	509	$	65,209	$	82,878	$	28,874	$	314,144
Allowance for credit losses:
Quantitative allowance
Collectively evaluated	$	48,411	$	699	$	13,307	$	4,756	$	35,893	$	21,509	$	4,584	$	509	$	62,969	$	79,302	$	25,789	$	297,728
Individually evaluated		77		—		959		—		6		—		—		—		377		—		307		1,726
Total quantitative allowance		48,488		699		14,266		4,756		35,899		21,509		4,584		509		63,346		79,302		26,096		299,454
Qualitative allowance		3,062		—		651		29		—		2,731		—		—		1,863		3,576		2,778		14,690
Balance at end of period September 30, 2021	$	51,550	$	699	$	14,917	$	4,785	$	35,899	$	24,240	$	4,584	$	509	$	65,209	$	82,878	$	28,874	$	314,144
Three Months Ended September 30, 2020
Allowance for credit losses:
Balance at beginning of period June 30, 2020	$	67,342	$	1,081	$	26,623	$	9,439	$	33,912	$	20,170	$	7,792	$	4,075	$	90,206	$	129,958	$	44,010	$	434,608
FMV Adjustment to Initial PCD Allowance		29		—		—		—		—		—		—		—		(1,255)		3		(319)		(1,542)
Adjusted CECL balance	$	67,371	$	1,081	$	26,623	$	9,439	$	33,912	$	20,170	$	7,792	$	4,075	$	88,951	$	129,961	$	43,691	$	433,066
Charge-offs		(90)		—		(297)		—		(38)		(1,393)		—		—		(458)		(578)		(1,788)		(4,642)
Recoveries		289		100		365		79		221		602		8		—		457		234		1,693		4,048
Net (charge offs) recoveries		199		100		68		79		183		(791)		8		—		(1)		(344)		(95)		(594)
Provision (recovery) (1)		(5,351)		253		(5,584)		(4,151)		29,756		4,577		767		(2,641)		4,830		(9,181)		(5,588)		7,687
Balance at end of period September 30, 2020	$	62,219	$	1,434	$	21,107	$	5,367	$	63,851	$	23,956	$	8,567	$	1,434	$	93,780	$	120,436	$	38,008	$	440,159
Allowance for credit losses:
Quantitative allowance
Collectively evaluated	$	60,377	$	1,477	$	18,868	$	5,132	$	66,087	$	19,276	$	8,567	$	603	$	95,399	$	121,403	$	29,745	$	426,934
Individually evaluated		115		—		73		—		8		2		—		—		961		5		7		1,171
Total quantitative allowance		60,492		1,477		18,941		5,132		66,095		19,278		8,567		603		96,360		121,408		29,752		428,105
Qualitative allowance		1,727		(43)		2,166		235		(2,244)		4,678		—		831		(2,580)		(972)		8,256		12,054
Balance at end of period September 30, 2020	$	62,219	$	1,434	$	21,107	$	5,367	$	63,851	$	23,956	$	8,567	$	1,434	$	93,780	$	120,436	$	38,008	$	440,159

(1) A negative provision (recovery) for credit losses of $(2.7) million was recorded during the third quarter of 2021, compared to an additional provision for credit losses of $22.1 million recorded during the third quarter of 2020 for the allowance for credit losses for unfunded commitments that is not included in the above table.

	Residential		Residential				Residential		Other								CRE Owner		Non Owner
(Dollars in thousands)	Mortgage Sr.		Mortgage Jr.		HELOC		Construction		C&D		Consumer		Multifamily		Municipal		Occupied		Occupied CRE		C & I		Total
Nine Months Ended September 30, 2021
Allowance for credit losses:
Balance at end of period December 31, 2020	$	63,561	$	1,238	$	16,698	$	4,914	$	67,197	$	26,562	$	7,887	$	1,510	$	97,104	$	124,421	$	46,217	$	457,309
Charge-offs		(204)		—		(835)		—		(87)		(6,001)		—		—		(2,052)		(776)		(2,928)		(12,883)
Recoveries		1,103		131		1,903		3		1,178		1,618		3		—		796		905		3,104		10,744
Net recoveries (charge offs)		899		131		1,068		3		1,091		(4,383)		3		—		(1,256)		129		176		(2,139)
Provision (benefit) (1)		(12,910)		(670)		(2,849)		(132)		(32,389)		2,061		(3,306)		(1,001)		(30,639)		(41,672)		(17,519)		(141,026)
Balance at end of period September 30, 2021	$	51,550	$	699	$	14,917	$	4,785	$	35,899	$	24,240	$	4,584	$	509	$	65,209	$	82,878	$	28,874	$	314,144
Nine Months Ended September 30, 2020
Allowance for credit losses:
Balance at beginning of period January 1, 2020	$	6,128	$	15	$	4,327	$	815	$	6,211	$	4,350	$	1,557	$	956	$	10,879	$	15,219	$	6,470	$	56,927
Impact of Adoption		5,455		11		3,849		779		5,588		3,490		1,391		914		9,505		13,898		6,150		51,030
Initial PCD Allowance		406		3		289				351		669		97				898		656		39		3,408
Adjusted CECL balance, January 1, 2020	$	11,989	$	29	$	8,465	$	1,594	$	12,150	$	8,509	$	3,045	$	1,870	$	21,282	$	29,773	$	12,659	$	111,365
Impact of merger on provision for non-PCD loans		16,712		226		4,227		4,893		7,673		3,836		1,212		919		25,393		35,067		9,284		109,442
Initial PCD Allowance		29,935		804		5,119		1,302		6,035		6,120		902		1,003		34,077		45,787		18,320		149,404
Charge-offs		(473)		(24)		(978)		(31)		(212)		(4,301)		—		—		(1,081)		(601)		(2,595)		(10,296)
Recoveries		876		246		988		83		1,070		1,498		63		—		885		287		2,291		8,287
Net charge offs		403		222		10		52		858		(2,803)		63		—		(196)		(314)		(304)		(2,009)
Provision (benefit) (1)		3,180		153		3,286		(2,474)		37,135		8,294		3,345		(2,358)		13,224		10,123		(1,951)		71,957
Balance at end of period September 30, 2020	$	62,219	$	1,434	$	21,107	$	5,367	$	63,851	$	23,956	$	8,567	$	1,434	$	93,780	$	120,436	$	38,008	$	440,159

(1) A negative provision (recovery) for credit losses of $(15.1) million was recorded during the first nine months of 2021, compared to an additional provision for credit losses of $36.4 million, of which, $9.6 million was from the initial impact from the merger with CSFL, recorded during the first nine months of 2020 for the allowance for credit losses for unfunded commitments that is not included in the above table.