Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Allowance for Loan and Lease Losses by Portfolio Segment

The allowance for credit losses on loans is summarized in the following table:


	For the Three Months Ended March 31,
(in thousands)		2023		2022
Balance at beginning of the period		$	70,264	$	58,047
Initial allowance for credit losses on PCD loans		—		12,077
Charge-offs on PCD loans		—		(7,634)
Charge-offs		(139)		(170)
Recoveries		65		162
Net charge-offs		(74)		(7,642)
Provision for credit loss - loans		1,213		4,630
Balance at end of the period		$	71,403	$	67,112

The following tables detail activity in the allowance for credit losses on loans by portfolio segment for the three months ended March 31, 2023 and 2022:


(in thousands)	Balance at December 31, 2022		Charge-offs		Recoveries		Provision (Benefit) for Credit Loss		Balance at March 31, 2023
Non-owner occupied commercial	$	23,462	$	—	$	—	$	819	$	24,281
Owner occupied commercial	6,696		—		—		(638)		6,058
Multifamily	9,425		—		—		(415)		9,010
Non-owner occupied residential	2,643		—		—		(50)		2,593
Commercial, industrial and other	8,836		—		35		(760)		8,111
Construction	2,968		—		—		137		3,105
Equipment finance	3,445		(61)		15		1,049		4,448
Residential mortgage	8,041		—		—		903		8,944
Consumer	4,748		(78)		15		168		4,853
Total	$	70,264	$	(139)	$	65	$	1,213	$	71,403


(in thousands)	Balance at December 31, 2021		Initial allowance for credit losses on PCD loans		Charge-offs		Recoveries		(Benefit) Provision for Credit Loss		Balance at March 31, 2022
Non owner occupied commercial	$	20,071	$	1,312	$	(4)	$	—	$	2,270	$	23,649
Owner occupied commercial	3,964		1,137		(34)		10		1,048		6,125
Multifamily	8,309		4		—		—		(13)		8,300
Non owner occupied residential	2,380		175		—		14		339		2,908
Commercial, industrial and other	9,891		2,413		(823)		45		148		11,674
Construction	838		6,843		(6,807)		3		850		1,727
Equipment finance	3,663		—		(97)		15		(1,122)		2,459
Residential mortgage	3,914		179		—		48		1,545		5,686
Consumer	5,017		14		(39)		27		(435)		4,584
Total	$	58,047	$	12,077	$	(7,804)	$	162	$	4,630	$	67,112

The following tables present the recorded investment in loans by portfolio segment and the related allowance for credit losses at March 31, 2023 and December 31, 2022:


March 31, 2023	Loans								Allowance for Credit Losses
(in thousands)	Individually evaluated for impairment		Collectively evaluated for impairment		Acquired with deteriorated credit quality		Total		Individually evaluated for impairment		Collectively evaluated for impairment		Total
Non-owner occupied commercial	$	—	$	2,910,091	$	33,806	$	2,943,897	$	749	$	23,532	$	24,281
Owner occupied commercial	8,297		1,167,784		29,554		1,205,635		811		5,247		6,058
Multifamily	—		1,269,415		6,356		1,275,771		5		9,005		9,010
Non-owner occupied residential	523		208,629		1,051		210,203		15		2,578		2,593
Commercial, industrial and other	2,027		551,333		9,317		562,677		1,669		6,442		8,111
Construction	980		404,014		—		404,994		—		3,105		3,105
Equipment finance	—		161,889		—		161,889		—		4,448		4,448
Residential mortgage	—		856,218		1,209		857,427		159		8,785		8,944
Consumer	—		329,912		148		330,060		—		4,853		4,853
Total loans	$	11,827	$	7,859,285	$	81,441	$	7,952,553	$	3,408	$	67,995	$	71,403


December 31, 2022	Loans								Allowance for Credit Losses
(in thousands)	Individually evaluated for impairment		Collectively evaluated for impairment		Acquired with deteriorated credit quality		Total		Individually evaluated for impairment		Collectively evaluated for impairment		Total
Non-owner occupied commercial	$	—	$	2,871,950	$	34,064	2,906,014		$	753	$	22,709	$	23,462
Owner occupied commercial	12,041		1,202,919		31,229		1,246,189		983		5,713		6,696
Multifamily	—		1,254,412		6,402		1,260,814		5		9,420		9,425
Non-owner occupied residential	441		216,516		1,069		218,026		16		2,627		2,643
Commercial, industrial and other	2,806		594,568		9,337		606,711		2,150		6,686		8,836
Construction	980		379,120		—		380,100		—		2,968		2,968
Equipment finance	—		151,574		—		151,574		—		3,445		3,445
Residential mortgage	—		764,340		1,212		765,552		181		7,860		8,041
Consumer	—		330,920		150		331,070		3		4,745		4,748
Total loans	$	16,268	$	7,766,319	$	83,463	$	7,866,050	$	4,091	$	66,173	$	70,264

The allowance for credit losses on securities is summarized in the following tables:


Available for Sale	For the Three Months Ended March 31,
(in thousands)	2023		2022
Balance at beginning of the period	$	310	$	83

Charge-offs	$	(6,640)	$	—
Recoveries	$	—	$	—
Net charge-offs	$	(6,640)	$	—
Provision for credit loss expense	6,490		1,184
Balance at end of the period	$	160	$	1,267


Held to Maturity	For the Three Months Ended March 31,
(in thousands)	2023		2022
Balance at beginning of the period	$	107	$	181




Provision for credit loss expense	50		18
Balance at end of the period	$	157	$	199