Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Dec. 31, 2019

Financing Receivable, Allowance for Credit Loss

The following table summarizes the change in allowance for credit losses by loan category, and bifurcates the amount of loans allocated to each loan category for the periods indicated:


	Years Ended December 31, 2021
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance	$	21,086	$	45,009	$	5,397	$	5,095	$	14,275	$	22,060	$	470	$	113,392


Charge-offs	(3,474)		—		—		(219)		—		(69)		(1,182)		(4,944)
Recoveries	2,686		57		—		98		1		249		638		3,729
Initial reserve on PCD loans	166		14,397		1,019		—		429		163		366		16,540
Provision for credit loss expense	(6,062)		24,023		5,900		(1,466)		(221)		(4,417)		448		18,205
Ending balance (1)	$	14,402	$	83,486	$	12,316	$	3,508	$	14,484	$	17,986	$	740	$	146,922

	Years Ended December 31, 2020
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance, pre adoption of ASU 2016-13	$	17,594	$	32,935	$	6,053	$	1,746	$	3,440	$	5,576	$	396	$	67,740
Cumulative effect accounting adjustment (2)	(1,984)		(13,048)		(3,652)		495		9,828		7,012		212		(1,137)
Cumulative effect accounting adjustment (3)	49		337		—		—		423		319		29		1,157
Charge-offs	(2,309)		(3,885)		—		(380)		(105)		(142)		(1,625)		(8,446)
Recoveries	289		9		—		33		2		210		1,035		1,578
Provision for credit loss expense	7,447		28,661		2,996		3,201		687		9,085		423		52,500
Ending balance (1)	$	21,086	$	45,009	$	5,397	$	5,095	$	14,275	$	22,060	$	470	$	113,392

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $43.7 million and $36.0 million at December 31, 2021 and December 31, 2020.

(2)Represents adjustment needed to reflect the cumulative day one impact pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment represents a $1.1 million decrease to the allowance attributable to the change in accounting methodology for estimating the allowance for credit losses resulting from the Company's adoption of the standard.

(3)Represents adjustment needed to reflect the day one reclassification of the Company's purchased credit impaired ("PCI") loan balances to PCD and the associated gross-up, pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment represents a $1.2 million increase to the allowance resulting from the day one reclassification.

The following table bifurcates the amount of loans and the allowance allocated to each loan category based on the type of impairment analysis at December 31, 2019:


	December 31, 2019
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
	(Dollars in thousands)
Allowance for loan losses
Beginning balance	$	15,760	$	32,370	$	5,158	$	1,756	$	3,219	$	5,608	$	422	$	64,293
Charge-offs	(244)		(2,614)		—		(509)		—		(240)		(1,598)		(5,205)
Recoveries	1,131		152		—		122		142		318		787		2,652
Provision (benefit)	947		3,027		895		377		79		(110)		785		6,000
Ending balance	$	17,594	$	32,935	$	6,053	$	1,746	$	3,440	$	5,576	$	396	$	67,740

Financing Receivable Credit Quality Indicators

The following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year as of the dates indicated below:


	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	478,141	$	167,421	$	92,657	$	74,940	$	12,432	$	27,000	$	681,155	$	250	$	1,533,996
Potential weakness	779		6,874		1,627		109		908		287		5,401		—		15,985
Definite weakness - loss unlikely	766		317		962		515		2,570		258		7,910		—		13,298
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	479,686	$	174,612	$	95,246	$	75,564	$	15,910	$	27,545	$	694,466	$	250	$	1,563,279




Commercial real estate
Pass	$	1,445,829	$	1,232,824	$	875,001	$	950,540	$	820,201	$	1,913,217	$	154,020	$	—	$	7,391,632
Potential weakness	51,024		86,781		53,250		69,137		53,455		185,847		13,617		—		513,111
Definite weakness - loss unlikely	20,078		4,106		3,380		1,663		35,727		22,647		—		—		87,601
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	1,516,931	$	1,323,711	$	931,631	$	1,021,340	$	909,383	$	2,121,711	$	167,637	$	—	$	7,992,344




Commercial construction
Pass	$	374,023	$	451,987	$	141,127	$	62,752	$	19,168	$	48,175	$	36,368	$	2,289	$	1,135,889
Potential weakness	9,646		2,550		—		—		—		12,811		—		—		25,007
Definite weakness - loss unlikely	4,561		—		—		—		—		—		—		—		4,561
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	388,230	$	454,537	$	141,127	$	62,752	$	19,168	$	60,986	$	36,368	$	2,289	$	1,165,457




Small business
Pass	$	53,939	$	37,017	$	20,840	$	13,459	$	9,665	$	18,603	$	35,875	$	—	$	189,398
Potential weakness	210		456		379		198		4		285		803		—		2,335
Definite weakness - loss unlikely	—		619		32		9		4		278		514		—		1,456
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	54,149	$	38,092	$	21,251	$	13,666	$	9,673	$	19,166	$	37,192	$	—	$	193,189




Residential real estate
Pass	$	454,162	$	215,142	$	114,762	$	122,745	$	133,961	$	559,701	$	—	$	—	$	1,600,473
Default	—		392		—		1,010		—		2,811		—		—		4,213

Total residential real estate	$	454,162	$	215,534	$	114,762	$	123,755	$	133,961	$	562,512	$	—	$	—	$	1,604,686




Home equity
Pass	$	66,410	$	63,870	$	38,201	$	33,505	$	38,051	$	109,544	$	684,427	$	3,932	$	1,037,940
Default	—		—		—		—		—		—		1,555		116		1,671

Total home equity	$	66,410	$	63,870	$	38,201	$	33,505	$	38,051	$	109,544	$	685,982	$	4,048	$	1,039,611




Other consumer
Pass	$	3,363	$	2,702	$	2,191	$	859	$	654	$	4,462	$	14,377	$	—	$	28,608


Default	16		6		29		25		—		35		1		—		112

Total other consumer	$	3,379	$	2,708	$	2,220	$	884	$	654	$	4,497	$	14,378	$	—	$	28,720

Total	$	2,962,947	$	2,273,064	$	1,344,438	$	1,331,466	$	1,126,800	$	2,905,961	$	1,636,023	$	6,587	$	13,587,286


	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	1,074,773	$	141,859	$	97,908	$	30,431	$	19,426	$	19,749	$	631,049	$	2,538	$	2,017,733
Potential weakness	9,020		1,869		670		4,997		1,539		294		20,766		—		39,155
Definite weakness - loss unlikely	2,009		1,310		19,575		2,997		320		429		6,991		—		33,631
Partial loss probable	672		—		—		—		156		143		11,662		—		12,633
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	1,086,474	$	145,038	$	118,153	$	38,425	$	21,441	$	20,615	$	670,468	$	2,538	$	2,103,152

Commercial real estate
Pass	$	1,054,345	$	726,276	$	480,725	$	544,826	$	372,542	$	664,256	$	19,085	$	14,737	$	3,876,792
Potential weakness	27,877		55,166		30,286		19,531		25,462		71,252		13,610		—		243,184
Definite weakness - loss unlikely	25,878		3,502		3,857		10,185		3,376		7,153		—		—		53,951
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	1,108,100	$	784,944	$	514,868	$	574,542	$	401,380	$	742,661	$	32,695	$	14,737	$	4,173,927

Commercial construction
Pass	$	255,679	$	167,948	$	30,706	$	32,538	$	—	$	6,689	$	31,705	$	588	$	525,853
Potential weakness	17,528		9,953		520		—		—		—		75		—		28,076
Definite weakness - loss unlikely	—		—		—		—		—		—		—		—		—
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	273,207	$	177,901	$	31,226	$	32,538	$	—	$	6,689	$	31,780	$	588	$	553,929

Small business
Pass	$	41,713	$	27,751	$	19,497	$	13,411	$	13,837	$	19,624	$	35,451	$	—	$	171,284
Potential weakness	—		10		15		15		6		217		822		—		1,085
Definite weakness - loss unlikely	684		438		122		11		137		353		883		—		2,628
Partial loss probable	—		—		—		—		—		—		26		—		26
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	42,397	$	28,199	$	19,634	$	13,437	$	13,980	$	20,194	$	37,182	$	—	$	175,023

Residential real estate
Pass	$	219,595	$	146,058	$	160,422	$	144,638	$	215,568	$	401,279	$	—	$	—	$	1,287,560
Default	—		—		427		—		4,158		4,038		—		—		8,623
Definite loss	—		—		—		—		—		—		—		—		—
Total residential real estate	$	219,595	$	146,058	$	160,849	$	144,638	$	219,726	$	405,317	$	—	$	—	$	1,296,183

Home equity


Pass	$	82,312	$	59,409	$	52,088	$	53,570	$	41,181	$	111,360	$	661,575	$	4,663	$	1,066,158
Default	—		—		—		—		—		440		1,837		355		2,632
Definite loss	—		—		—		—		—		—		—		—		—
Total home equity	$	82,312	$	59,409	$	52,088	$	53,570	$	41,181	$	111,800	$	663,412	$	5,018	$	1,068,790

Other consumer
Pass	$	816	$	398	$	165	$	665	$	615	$	6,749	$	12,317	$	—	$	21,725
Default	—		—		—		15		—		111		11		—		137
Definite loss	—		—		—		—		—		—		—		—		—
Total other consumer	$	816	$	398	$	165	$	680	$	615	$	6,860	$	12,328	$	—	$	21,862
Total	$	2,812,901	$	1,341,947	$	896,983	$	857,830	$	698,323	$	1,314,136	$	1,447,865	$	22,881	$	9,392,866

(1)Loans origination dates in the tables above reflect the original date, or the date of a material modification of a previously originated loan, for both organic originations and acquired loans.

(2)Loans originated as part of the Paycheck Protection Program ("PPP") established by the CARES Act are reported as commercial and industrial under the 2021 and 2020 vintage years and "Pass" category as these loans are 100% guaranteed by the U.S. Government. Outstanding PPP loans totaled $216.2 million and $791.9 million at December 31, 2021 and 2020, respectively, the former of which reflects PPP loans acquired in the Meridian acquisition.

Financing Receivable, Nonaccrual

The following table shows information regarding nonaccrual loans at the dates indicated:


	Nonaccrual Balances
	December 31, 2021						December 31, 2020
	With Allowance for Credit Losses		Without Allowance for Credit Losses		Total (1)		With Allowance for Credit Losses		Without Allowance for Credit Losses		Total (1)
	(Dollars in thousands)
Commercial and industrial	$	3,420	$	19	$	3,439	$	3,804	$	30,925	$	34,729
Commercial real estate	10,870		—		10,870		10,195		—		10,195

Small business	44		—		44		815		10		825
Residential real estate	8,580		602		9,182		10,935		4,593		15,528
Home equity	3,781		—		3,781		5,427		—		5,427
Other consumer	504		—		504		156		—		156
Total nonaccrual loans	$	27,199	$	621	$	27,820	$	31,332	$	35,528	$	66,860

(1)Included in these amounts are $2.0 million and $22.2 million of nonaccruing TDRs at December 31, 2021 and December 31, 2020, respectively

Foreclosed Residential Real Estate Property

The following table shows information regarding foreclosed residential real estate property at the dates indicated:


	December 31, 2021		December 31, 2020
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	—	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	1,426	$	1,750

Financing Receivable, Past Due

The following tables show the age analysis of past due financing receivables at the dates indicated:


	December 31, 2021
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Amortized Cost >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	7	$	143	2	$	252	2	$	24	11	$	419	$	1,562,860	$	1,563,279	$	—
Commercial real estate	15	32,845		—	—		4	1,339		19	34,184		7,958,160		7,992,344		—
Commercial construction	—	—		—	—		—	—		—	—		1,165,457		1,165,457		—
Small business	11	136		6	53		4	24		21	213		192,976		193,189		—
Residential real estate	12	2,709		5	714		76	3,922		93	7,345		1,597,341		1,604,686		—
Home equity	15	1,375		6	381		21	1,671		42	3,427		1,036,184		1,039,611		—
Other consumer (1)	458	719		41	277		16	112		515	1,108		27,612		28,720		—
Total	518	$	37,927	60	$	1,677	123	$	7,092	701	$	46,696	$	13,540,590	$	13,587,286	$	—


	December 31, 2020
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	2	$	318	1	$	672	8	$	785	11	$	1,775	$	2,101,377	$	2,103,152	$	—
Commercial real estate	3	409		—	—		4	515		7	924		4,173,003		4,173,927		—
Commercial construction	—	—		2	2,794		—	—		2	2,794		551,135		553,929		—
Small business	14	421		6	273		4	59		24	753		174,270		175,023		—
Residential real estate	12	2,150		8	5,507		27	3,648		47	11,305		1,284,878		1,296,183		—
Home equity	10	733		5	203		33	2,633		48	3,569		1,065,221		1,068,790		—
Other consumer (1)	260	137		3	1		6	138		269	276		21,586		21,862		1
Total	301	$	4,168	25	$	9,450	82	$	7,778	408	$	21,396	$	9,371,470	$	9,392,866	$	1

(1)Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

Financing Receivable, Troubled Debt Restructuring

The following table shows the Company’s total TDRs and other pertinent information at the dates indicated:


		December 31, 2021		December 31, 2020
	(Dollars in thousands)
TDRs on accrual status		$	14,635	$	16,983
TDRs on nonaccrual		1,993		22,209
Total TDRs		$	16,628	$	39,192

Additional commitments to lend to a borrower who has been a party to a TDR		$	190	$	263

Troubled Debt Restructurings On Financing Receivables Post Modifications

The following table shows the troubled debt restructurings which occurred for the periods indicated and the change in the recorded investment subsequent to the modifications occurring:


	Year Ended
	December 31, 2021
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings		(Dollars in thousands)
Commercial and industrial	1	$	14,148	$	14,148
Commercial real estate	5	3,964		3,964
Small business	2	189		189



Total (1)	8	$	18,301	$	18,301


	Year Ended
	December 31, 2020
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings		(Dollars in thousands)
Commercial and industrial	8	$	732	$	732
Commercial real estate	10	2,865		2,865
Small business	10	752		728
Residential real estate	2	559		642


Total (1)	30	$	4,908	$	4,967


	Year Ended
	December 31, 2019
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings		(Dollars in thousands)
Commercial and industrial	3	$	268	$	268
Commercial real estate	4	819		819
Small business	1	14		14
Residential real estate	3	967		1,009
Home equity	2	121		121

Total (1)	13	$	2,189	$	2,231

(1)The pre-modification and post-modification balances represent the legal principal balance of the loan. Activity presented in the tables above includes $14.3 million, $1.9 million, and $855,000 of modifications on existing TDRs during the years ended December 31, 2021, 2020 and 2019, respectively.

Troubled Debt Restructurings On Financing Receivables Post Modification

The following table shows the Company’s post-modification balance of TDRs listed by type of modification for the periods indicated:


	Years Ended
	December 31
	2021		2020		2019

Extended maturity	$	4,153	$	4,120	$	1,565
Adjusted interest rate	—		822		150
Combination rate and maturity	14,148		—		441
Court ordered concession	—		25		75
Total	$	18,301	$	4,967	$	2,231