ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY INFORMATION (Tables)

6 Months Ended

Jun. 30, 2022

Receivables [Abstract]

Schedule of Allowance for Loan Losses and Loan Balances

The following tables provide the activity of allowance for credit losses and loan balances for the three and six months ended June 30, 2022 and 2021. The increase was primarily due to an initial ACL of $49.6 million recorded in connection with the BMBC Merger and loan growth during the quarter. The initial $49.6 million ACL recorded includes $23.5 million related to non-PCD loans, or the initial provision for credit loss recorded, and $26.1 million related to PCD loans, which does not have an initial income statement impact, but adjusts the amortized cost basis of the loans at acquisition (i.e., a balance sheet gross-up).

(Dollars in thousands)	Commercial and Industrial(1)		Owner-occupied Commercial		Commercial Mortgages		Construction		Residential(2)		Consumer(3)		Total
Three months ended June 30, 2022
Allowance for credit losses
Beginning balance	$	65,716	$	6,125	$	23,105	$	3,145	$	4,956	$	33,283	$	136,330
Charge-offs	(2,549)		—		—		—		—		(1,418)		(3,967)
Recoveries	870		141		1		—		144		183		1,339
(Credit) provision	(3,116)		(756)		557		1,913		(112)		9,782		8,268
Ending balance	$	60,921	$	5,510	$	23,663	$	5,058	$	4,988	$	41,830	$	141,970
Six months ended June 30, 2022
Allowance for credit losses
Beginning balance	$	49,967	$	4,574	$	11,623	$	1,903	$	3,352	$	23,088	$	94,507
Initial allowance on acquired PCD loans	22,614		595		2,684		71		61		78		26,103
Charge-offs	(6,188)		(179)		(37)		—		(186)		(2,228)		(8,818)
Recoveries	1,471		267		122		—		530		549		2,939
(Credit) provision(4)	(6,943)		253		9,271		3,084		1,231		20,343		27,239
Ending balance	$	60,921	$	5,510	$	23,663	$	5,058	$	4,988	$	41,830	$	141,970
Period-end allowance allocated to:
Loans evaluated on an individual basis	$	5,437	$	—	$	—	$	—	$	—	$	—	$	5,437
Loans evaluated on a collective basis	55,484		5,510		23,663		5,058		4,988		41,830		136,533
Ending balance	$	60,921	$	5,510	$	23,663	$	5,058	$	4,988	$	41,830	$	141,970
Period-end loan balances:
Loans evaluated on an individual basis	$	29,030	$	787	$	7,771	$	5,392	$	5,803	$	2,012	$	50,795
Loans evaluated on a collective basis	3,078,710		1,822,442		3,313,883		928,932		764,772		1,520,584		11,429,323
Ending balance	$	3,107,740	$	1,823,229	$	3,321,654	$	934,324	$	770,575	$	1,522,596	$	11,480,118

(1)Includes commercial small business leases and PPP loans.

(2)Period-end loan balance excludes reverse mortgages at fair value of $2.6 million.

(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(4)Includes $23.5 million initial provision for credit losses on non-PCD loans.

(Dollars in thousands)	Commercial and Industrial(1)		Owner - occupied Commercial		Commercial Mortgages		Construction		Residential(2)		Consumer(3)		Total
Three months ended June 30, 2021
Allowance for credit losses
Beginning balance	$	125,870	$	9,617	$	30,545	$	14,287	$	5,702	$	18,797	$	204,818
Charge-offs	(6,512)		(45)		—		—		—		(521)		(7,078)
Recoveries	1,379		15		30		—		455		362		2,241
(Credit) provision	(33,534)		(3,406)		(14,476)		(10,775)		(2,864)		(2,508)		(67,563)
Ending balance	$	87,203	$	6,181	$	16,099	$	3,512	$	3,293	$	16,130	$	132,418
Six months ended June 30, 2021
Allowance for loan losses
Beginning balance, prior to adoption of ASC 326	$	150,875	$	9,615	$	31,071	$	12,190	$	6,893	$	18,160	$	228,804
Charge-offs	(11,564)		(45)		—		—		—		(945)		(12,554)
Recoveries	2,519		105		44		—		595		628		3,891
(Credit) provision	(54,627)		(3,494)		(15,016)		(8,678)		(4,195)		(1,713)		(87,723)
Ending balance	$	87,203	$	6,181	$	16,099	$	3,512	$	3,293	$	16,130	$	132,418
Period-end allowance allocated to:
Loans evaluated on an individual basis	$	1	$	—	$	10	$	—	$	—	$	—	$	11
Loans evaluated on a collective basis	87,202		6,181		16,089		3,512		3,293		16,130		132,407
Ending balance	$	87,203	$	6,181	$	16,099	$	3,512	$	3,293	$	16,130	$	132,418
Period-end loan balances:
Loans evaluated on an individual basis	$	14,446	$	3,868	$	3,962	$	72	$	4,994	$	2,608	$	29,950
Loans evaluated on a collective basis	2,365,251		1,356,813		2,020,722		779,529		601,064		1,102,561		8,225,940
Ending balance	$	2,379,697	$	1,360,681	$	2,024,684	$	779,601	$	606,058	$	1,105,169	$	8,255,890

(1)Includes commercial small business leases and PPP loans.

(2)Period-end loan balance excludes reverse mortgages at fair value of $8.4 million.

(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Summary of Nonaccrual and Past Due Loans

The following tables show nonaccrual and past due loans presented at amortized cost at the date indicated:

	June 30, 2022
(Dollars in thousands)	30–89 Days Past Due and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans(1)			Total Loans
Commercial and industrial(2)	$	6,486		$	520		$	7,006		$	3,094,133		$	6,601		$	3,107,740
Owner-occupied commercial	2,132			—			2,132			1,820,744			353			1,823,229
Commercial mortgages	4,056			211			4,267			3,313,124			4,263			3,321,654
Construction	4,348			—			4,348			924,792			5,184			934,324
Residential(3)	5,159			78			5,237			762,765			2,573			770,575
Consumer(4)	11,302			11,085			22,387			1,498,172			2,037			1,522,596
Total	$	33,483		$	11,894		$	45,377		$	11,413,730		$	21,011		$	11,480,118
% of Total Loans	0.30		%	0.10		%	0.40		%	99.42		%	0.18		%	100		%

(1)There was no allowance on nonaccrual loans as of June 30, 2022.

(2)Includes commercial small business leases and PPP loans.

(3)Residential accruing current balances excludes reverse mortgages at fair value of $2.6 million.

(4)Includes $19.6 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

	December 31, 2021
(Dollars in thousands)	30–89 Days Past Due and Still  Accruing			Greater  Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Nonaccrual Loans(1)			Total Loans
Commercial and industrial(2)	$	5,007		$	547		$	5,554		$	2,256,554		$	8,211		$	2,270,319
Owner-occupied commercial	741			—			741			1,340,155			811			1,341,707
Commercial mortgages	3,525			810			4,335			1,875,105			2,070			1,881,510
Construction	7,933			—			7,933			679,268			12			687,213
Residential(3)	1,856			—			1,856			537,752			3,125			542,733
Consumer(4)	10,227			8,634			18,861			1,137,332			2,380			1,158,573
Total(4)	$	29,289		$	9,991		$	39,280		$	7,826,166		$	16,609		$	7,882,055
% of Total Loans	0.37		%	0.13		%	0.50		%	99.29		%	0.21		%	100		%

(1)Nonaccrual loans with an allowance totaled less than $0.1 million

(2)Includes commercial small business leases and PPP loans.

(3)Residential accruing current balances excludes reverse mortgages, at fair value of $3.9 million.

(4)Includes $17.0 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

Schedule Of Collateral Dependent Loans

The following table presents the amortized cost basis of nonaccruing collateral-dependent loans by class at June 30, 2022 and December 31, 2021:

	June 30, 2022				December 31, 2021
(Dollars in thousands)	Property		Equipment and other		Property		Equipment and other
Commercial and industrial(1)	$	3,987	$	2,614	$	4,199	$	4,012
Owner-occupied commercial	353		—		811		—
Commercial mortgages	4,263		—		2,070		—
Construction	5,184		—		12		—
Residential(2)	2,573		—		3,125		—
Consumer(3)	2,005		32		2,380		—
Total	$	18,365	$	2,646	$	12,597	$	4,012

(1)Includes commercial small business leases.

(2)Excludes reverse mortgages at fair value.

(3)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses as of June 30, 2022.

	Term Loans Amortized Cost Basis by Origination Year
	2022		2021		2020		2019		2018		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
(Dollars in thousands)
Commercial and industrial(1):
Risk Rating
Pass(2)	$	492,793	$	680,564	$	503,154	$	343,944	$	258,950	$	284,041	$	7,970	$	215,231	$	2,786,647
Special mention	28,344		38,417		8,791		9,304		6,493		1,234		—		19,939		112,522
Substandard or Lower	11,285		20,119		15,134		70,613		38,871		45,005		10		7,534		208,571
	$	532,422	$	739,100	$	527,079	$	423,861	$	304,314	$	330,280	$	7,980	$	242,704	$	3,107,740
Owner-occupied commercial:
Risk Rating
Pass	$	133,004	$	377,379	$	255,167	$	256,339	$	162,461	$	409,964	$	—	$	144,921	$	1,739,235
Special mention	—		920		6,994		—		1,278		7,335		—		3,467		19,994
Substandard or Lower	1,166		4,023		20,120		4,540		12,956		8,241		—		12,954		64,000
	$	134,170	$	382,322	$	282,281	$	260,879	$	176,695	$	425,540	$	—	$	161,342	$	1,823,229
Commercial mortgages:
Risk Rating
Pass	$	208,322	$	680,573	$	556,456	$	565,068	$	280,557	$	711,412	$	—	$	201,214	$	3,203,602
Special mention	6,225		1,620		14,750		6,281		3,527		37,184		—		4,057		73,644
Substandard or Lower	748		5,139		13,552		3,617		4,149		16,946		—		257		44,408
	$	215,295	$	687,332	$	584,758	$	574,966	$	288,233	$	765,542	$	—	$	205,528	$	3,321,654
Construction:
Risk Rating
Pass	$	195,969	$	349,705	$	208,881	$	20,770	$	45,782	$	9,586	$	—	$	95,611	$	926,304
Special mention	—		603		—		—		—		—		—		—		603
Substandard or Lower	2,025		4,408		—		197		—		—		—		787		7,417
	$	197,994	$	354,716	$	208,881	$	20,967	$	45,782	$	9,586	$	—	$	96,398	$	934,324
Residential(3):
Risk Rating
Performing	$	24,777	$	117,528	$	62,225	$	39,318	$	52,955	$	467,969	$	—	$	—	$	764,772
Nonperforming(4)	—		568		505		1,587		124		3,019		—		—		5,803
	$	24,777	$	118,096	$	62,730	$	40,905	$	53,079	$	470,988	$	—	$	—	$	770,575
Consumer(5):
Risk Rating
Performing	$	258,696	$	222,594	$	141,316	$	61,751	$	208,705	$	84,737	$	537,619	$	5,150	$	1,520,568
Nonperforming(6)	—		—		351		—		545		—		860		272		2,028
	$	258,696	$	222,594	$	141,667	$	61,751	$	209,250	$	84,737	$	538,479	$	5,422	$	1,522,596

(1)Includes commercial small business leases.

(2)Includes $5.2 million of PPP loans.

(3)Excludes reverse mortgages at fair value.

(4)Includes troubled debt restructured mortgages performing in accordance with the loans' modified terms and accruing interest.

(5)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(6)Includes troubled debt restructured home equity installment loans performing in accordance with the loans' modified terms and accruing interest.

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the allowance for credit losses, as of December 31, 2021.

	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving loans amortized cost basis		Revolving loans converted to term		Total
(Dollars in thousands)
Commercial and industrial(1):
Risk Rating
Pass(2)	$	556,896	$	420,698	$	329,354	$	273,345	$	139,800	$	148,809	$	5,551	$	176,006	$	2,050,459
Special mention	35,910		949		3,052		1,057		429		15,299		—		17,545		74,241
Substandard or Lower	12,533		14,408		53,655		29,046		19,114		6,921		29		9,913		145,619
	$	605,339	$	436,055	$	386,061	$	303,448	$	159,343	$	171,029	$	5,580	$	203,464	$	2,270,319
Owner-occupied commercial:
Risk Rating
Pass	$	305,156	$	189,128	$	172,503	$	67,526	$	136,697	$	262,629	$	—	$	128,188	$	1,261,827
Special mention	938		5,359		2,561		891		—		7,019		—		10,543		27,311
Substandard or Lower	3,192		13,736		4,138		9,418		5,580		11,039		—		5,466		52,569
	$	309,286	$	208,223	$	179,202	$	77,835	$	142,277	$	280,687	$	—	$	144,197	$	1,341,707
Commercial mortgages:
Risk Rating
Pass	$	416,149	$	280,889	$	217,311	$	134,477	$	229,863	$	368,527	$	—	$	187,396	$	1,834,612
Special mention	—		4,185		—		861		11,588		1,385		—		2,097		20,116
Substandard or Lower	2,438		1,624		3,789		2,114		2,254		14,085		—		478		26,782
	$	418,587	$	286,698	$	221,100	$	137,452	$	243,705	$	383,997	$	—	$	189,971	$	1,881,510
Construction:
Risk Rating
Pass	$	248,053	$	195,269	$	84,868	$	39,585	$	2,223	$	11,297	$	—	$	88,839	$	670,134
Substandard or Lower	12,922		—		2,422		—		90		—		—		1,645		17,079
	$	260,975	$	195,269	$	87,290	$	39,585	$	2,313	$	11,297	$	—	$	90,484	$	687,213
Residential(3):
Risk Rating
Performing	$	59,977	$	28,426	$	12,526	$	32,871	$	44,969	$	358,964	$	—	$	—	$	537,733
Nonperforming(4)	—		112		1,044		—		63		3,781		—		—		5,000
	$	59,977	$	28,538	$	13,570	$	32,871	$	45,032	$	362,745	$	—	$	—	$	542,733
Consumer(5):
Risk Rating
Performing	$	219,918	$	169,922	$	74,048	$	203,519	$	39,113	$	60,952	$	382,718	$	5,364	$	1,155,554
Nonperforming(6)	—		147		—		600		71		—		1,655		546		3,019
	$	219,918	$	170,069	$	74,048	$	204,119	$	39,184	$	60,952	$	384,373	$	5,910	$	1,158,573

(1)Includes commercial small business leases.

(2)Includes $31.5 million of PPP loans.

(3)Excludes reverse mortgages at fair value.

(4)Includes troubled debt restructured mortgages performing in accordance with the loans' modified terms and accruing interest.

(5)Includes home equity lines of credit, installment loans, unsecured lines of credit and education loans.

(6)Includes troubled debt restructured home equity installment loans performing in accordance with the loans' modified terms and accruing interest.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents the balance of TDRs as of the indicated dates:

(Dollars in thousands)	June 30, 2022		December 31, 2021
Performing TDRs	$	12,484	$	14,204
Nonperforming TDRs	587		756
Total TDRs	$	13,071	$	14,960

The following tables present information regarding the types of loan modifications made for the three and six months ended June 30, 2022 and 2021:

	Three months ended June 30, 2022					Six months ended June 30, 2022
	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total
Commercial and industrial	—	—	—	—	—	1	—	—	—	1
Residential	—	—	1	—	1	1	—	1	—	2
Consumer	—	26	1	—	27	1	26	3	1	31
Total	—	26	2	—	28	3	26	4	1	34

	Three months ended June 30, 2021					Six months ended June 30, 2021
	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other(1)	Total
Residential	—	—	—	—	—	—	—	2	—	2
Consumer	—	—	3	1	4	—	—	20	1	21
Total	—	—	3	1	4	—	—	22	1	23

(1)Other includes interest rate reduction, forbearance, and interest only payments.

The following tables present loans modified as TDRs during the three and six months ended June 30, 2022 and 2021.

	Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	—	$	—	$	(19)	$	(19)
Residential	134		134		139		139
Consumer	281		281		463		463
Total(1)(2)	$	415	$	415	$	583	$	583

(1)During the three and six months ended June 30, 2022, the TDRs set forth in the table above resulted in a less than $0.1 million increase and a $0.2 million increase in the allowance for credit losses, respectively, and no additional charge-offs in either period. During the three and six months ended June 30, 2022, no TDRs defaulted that had received troubled debt modification during the past twelve months.

(2)The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

	Three Months Ended June 30, 2021				Six Months Ended June 30, 2021
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Residential	$	—	$	—	$	166	$	166
Consumer	155		155		839		839
Total(1)(2)	$	155	$	155	$	1,005	$	1,005

(1)During the three and six months ended June 30, 2021 the TDRs set forth in the table above resulted in a less than $0.1 million increase in the allowance for credit losses for both periods, and no additional charge-offs in either period. During the three and six months ended June 30, 2021, no TDRs defaulted that had received troubled debt modification during the past twelve months.

(2)The TDRs set forth in the table above did not occur as a result of the loan forbearance program under the CARES Act.