Allowance for Credit Losses (ACL) (Tables)

6 Months Ended

Jun. 30, 2023

Allowance for Credit Losses (ACL)

Schedule of changes in allowance for loan losses

The following tables present a disaggregated analysis of activity in the allowance for credit losses.

	Residential		Residential				Residential		Comm Constr.								CRE Owner		Non-Owner
(Dollars in thousands)	Mortgage Sr.		Mortgage Jr.		HELOC		Construction		& Dev.		Consumer		Multifamily		Municipal		Occupied		Occupied CRE		C & I		Total
Three Months Ended June 30, 2023
Allowance for credit losses:
Balance at end of period March 31, 2023	$	77,351	$	349	$	14,318	$	9,176	$	55,069	$	23,319	$	5,507	$	879	$	57,541	$	82,473	$	44,663	$	370,645
Charge-offs		(37)		—		—		—		(2)		(3,017)		—		—		(35)		—		(4,487)		(7,578)
Recoveries		302		3		532		22		198		520		—		—		93		334		2,264		4,268
Net (charge offs) recoveries		265		3		532		22		196		(2,497)		—		—		58		334		(2,223)		(3,310)
Provision (recovery) (1)		3,853		40		(638)		(329)		49		3,755		4,260		(134)		13,160		32,462		3,579		60,057
Balance at end of period June 30, 2023	$	81,469	$	392	$	14,212	$	8,869	$	55,314	$	24,577	$	9,767	$	745	$	70,759	$	115,269	$	46,019	$	427,392
Allowance for credit losses:
Quantitative allowance
Collectively evaluated	$	82,205	$	393	$	12,083	$	8,779	$	84,827	$	24,577	$	9,680	$	670	$	62,998	$	112,563	$	36,783	$	435,558
Individually evaluated		174		—		2,331		—		—		—		—		—		6,936		1,723		5,100		16,264
Total quantitative allowance		82,379		393		14,414		8,779		84,827		24,577		9,680		670		69,934		114,286		41,883		451,822
Qualitative allowance		(910)		(1)		(202)		90		(29,513)		—		87		75		825		983		4,136		(24,430)
Balance at end of period June 30, 2023	$	81,469	$	392	$	14,212	$	8,869	$	55,314	$	24,577	$	9,767	$	745	$	70,759	$	115,269	$	46,019	$	427,392
Three Months Ended June 30, 2022
Allowance for credit losses:
Balance at end of period March 31, 2022	$	46,002	$	586	$	13,671	$	5,616	$	25,358	$	21,899	$	3,903	$	607	$	49,094	$	96,360	$	37,300	$	300,396
Allowance Adjustment – FMV for ACBI merger		727		—		—		—		—		—		—		—		930		—		2,883		4,540
Adjusted CECL balance		46,729		586		13,671		5,616		25,358		21,899		3,903		607		50,024		96,360		40,183		304,936
Charge-offs		(61)		—		(203)		—		—		(2,124)		—		—		(78)		(360)		(3,337)		(6,163)
Recoveries		361		110		395		2		410		660		—		—		94		304		1,488		3,824
Net (charge offs) recoveries		300		110		192		2		410		(1,464)		—		—		16		(56)		(1,849)		(2,339)
Provision (recovery) (1)		8,678		(163)		3,055		1,947		1,962		4,317		(1,445)		96		14,648		(11,135)		(4,849)		17,111
Balance at end of period June 30, 2022	$	55,707	$	533	$	16,918	$	7,565	$	27,730	$	24,752	$	2,458	$	703	$	64,688	$	85,169	$	33,485	$	319,708
Allowance for credit losses:
Quantitative allowance
Collectively evaluated	$	55,203	$	533	$	13,488	$	7,565	$	21,572	$	24,752	$	2,458	$	703	$	42,294	$	63,666	$	26,203	$	258,437
Individually evaluated		479		—		3,418		—		865		—		—		—		5,588		140		6,442		16,932
Total quantitative allowance		55,682		533		16,906		7,565		22,437		24,752		2,458		703		47,882		63,806		32,645		275,369
Qualitative allowance		25		—		12		—		5,293		—		—		—		16,806		21,363		840		44,339
Balance at end of period June 30, 2022	$	55,707	$	533	$	16,918	$	7,565	$	27,730	$	24,752	$	2,458	$	703	$	64,688	$	85,169	$	33,485	$	319,708

(1) A negative provision for credit losses of $21.7 million was recorded during the second quarter of 2023, compared to a provision for credit losses of $2.2 million recorded during the second quarter of 2022 for the allowance for credit losses for unfunded commitments that is not included in the above table.

	Residential		Residential				Residential		Comm Constr.								CRE Owner		Non Owner
(Dollars in thousands)	Mortgage Sr.		Mortgage Jr.		HELOC		Construction		& Dev.		Consumer		Multifamily		Municipal		Occupied		Occupied CRE		C & I		Total
Six Months Ended June 30, 2023
Allowance for credit losses:
Balance at end of period December 31, 2022	$	72,188	$	405	$	14,886	$	8,974	$	45,410	$	22,767	$	3,684	$	849	$	58,083	$	78,485	$	50,713	$	356,444
Charge-offs		(39)		—		(39)		—		(2)		(5,746)		—		—		(35)		(51)		(6,293)		(12,205)
Recoveries		596		8		777		94		456		1,104		—		—		386		440		3,996		7,857
Net (charge offs) recoveries		557		8		738		94		454		(4,642)		—		—		351		389		(2,297)		(4,348)
Provision (benefit) (1)		8,724		(21)		(1,412)		(199)		9,450		6,452		6,083		(104)		12,325		36,395		(2,397)		75,296
Balance at end of period June 30, 2023	$	81,469	$	392	$	14,212	$	8,869	$	55,314	$	24,577	$	9,767	$	745	$	70,759	$	115,269	$	46,019	$	427,392
Six Months Ended June 30, 2022
Allowance for credit losses:
Balance at end of period December 31, 2021	$	47,036	$	611	$	13,325	$	4,997	$	37,593	$	23,149	$	4,921	$	565	$	61,794	$	79,649	$	28,167	$	301,807
Initial Allowance for PCD loans acquired during period		811		—		—		—		86		—		—		—		2,409		—		10,452		13,758
Initial Allowance for Non PCD loans acquired during period		352		26		132		2		1,887		51		426		—		2,519		2,697		5,605		13,697
Charge-offs		(119)		(19)		(421)		—		(4)		(4,785)		—		—		(449)		(360)		(5,496)		(11,653)
Recoveries		755		165		652		5		644		1,192		—		—		408		373		2,797		6,991
Net (charge offs) recoveries		636		146		231		5		640		(3,593)		—		—		(41)		13		(2,699)		(4,662)
Provision (benefit) (1)		6,872		(250)		3,230		2,561		(12,476)		5,145		(2,889)		138		(1,993)		2,810		(8,040)		(4,892)
Balance at end of period June 30, 2022	$	55,707	$	533	$	16,918	$	7,565	$	27,730	$	24,752	$	2,458	$	703	$	64,688	$	85,169	$	33,485	$	319,708

(1) A negative provision for credit losses of $3.8 million was recorded during the first six months of 2023, compared to a provision for credit losses of $2.0 million during the first six months of 2022 for the allowance for credit losses for unfunded commitments that is not included in the above table.