Loans (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Leases Receivable, Net Amount [Abstract]

Schedule of Loans Receivable

Loan segments have been identified by evaluating the portfolio based on collateral and credit risk characteristics. Loans receivable consist of the following:

	June 30, 2022			December 31, 2021
	(In Thousands)
Real Estate:
Residential	$	1,382,202		$	1,167,466
Commercial		2,655,730			2,450,349
Construction		1,093,695			862,815
		5,131,627			4,480,630
Other Loans:
Commercial		991,803			895,638
Home equity and improvement		266,144			264,354
Consumer finance		180,539			126,417
		1,438,486			1,286,409
Loans before deferred loan origination fees and costs		6,570,113			5,767,039
Deduct:
Undisbursed construction loan funds		(688,849	)		(477,890	)
Net deferred loan origination fees and costs		9,559			7,019
Allowance for credit losses		(67,074	)		(66,468	)
Total loans	$	5,823,749		$	5,229,700

Schedule of allowance for credit loss (ACL) activity

The following table discloses allowance for credit loss (“ACL”) activity for the three and six months ended June 30, 2022 and 2021 by portfolio segment (in thousands):

Three Months Ended June 30, 2022	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	11,640		$	34,201		$	2,613		$	13,821		$	3,919		$	1,001		$	67,195
Charge-Offs		(861	)		(137	)		(16	)		(5,303	)		(248	)		(138	)		(6,703	)
Recoveries		673			455			3			184			79			37			1,431
Provisions		2,661			433			399			1,060			253			345			5,151
Ending Allowance	$	14,113		$	34,952		$	2,999		$	9,762		$	4,003		$	1,245		$	67,074

Six Months Ended June 30, 2022	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	12,029		$	32,399		$	3,004		$	13,410		$	4,221		$	1,405		$	66,468
Charge-Offs		(1,001	)		(144	)		(16	)		(5,313	)		(277	)		(241	)		(6,992	)
Recoveries		754			514			3			286			113			151			1,821
Provisions		2,331			2,183			8			1,379			(54	)		(70	)		5,777
Ending Allowance	$	14,113		$	34,952		$	2,999		$	9,762		$	4,003		$	1,245		$	67,074

Three Months Ended June 30, 2021	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	17,508		$	35,272		$	2,776		$	12,191		$	5,181		$	1,826		$	74,754
Charge-Offs		—			(605	)		—			—			—			(106	)		(711	)
Recoveries		82			153			12			505			165			38			955
Provisions		(2,322	)		(359	)		(49	)		(485	)		(358	)		(58	)		(3,631	)
Ending Allowance	$	15,268		$	34,461		$	2,739		$	12,211		$	4,988		$	1,700		$	71,367

Six Months Ended  June 30, 2021	Residential Real Estate			Commercial Real Estate			Construction			Commercial			Home Equity and Improvement			Consumer Finance			Total
Beginning Allowance	$	17,534		$	43,417		$	2,741		$	11,665		$	4,739		$	1,983		$	82,079
Charge-Offs		—			(605	)		—			(70	)		(3	)		(142	)		(820	)
Recoveries		90			189			12			703			194			65			1,253
Provisions		(2,356	)		(8,540	)		(14	)		(87	)		58			(206	)		(11,145	)
Ending Allowance	$	15,268		$	34,461		$	2,739		$	12,211		$	4,988		$	1,700		$	71,367

Summary of Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans and Collateral Type

The following table presents the amortized cost basis of collateral-dependent loans by class of loans and collateral type as of June 30, 2022 and December 31, 2021 (in thousands):

	June 30, 2022
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	56	$	—	$	—	$	—	$	56
Commercial		12,614		—		3,083		—		15,697
Construction		—		—		—		—		—
Other Loans:
Commercial		2,659		616		4,204		—		7,479
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	15,329	$	616	$	7,287	$	—	$	23,232

	December 31, 2021
	Real Estate		Equipment and Machinery		Inventory and Receivables		Vehicles		Total
Real Estate:
Residential	$	226	$	—	$	—	$	—	$	226
Commercial		18,399		—		—		—		18,399
Construction		—		—		—		—		—
Other Loans:
Commercial		1,574		160		14,023		25		15,782
Home equity and improvement		—		—		—		—		—
Consumer finance		—		—		—		—		—
Total	$	20,199	$	160	$	14,023	$	25	$	34,407

Schedule of current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned

The following table presents the current balance of the aggregate amounts of non-performing assets, comprised of non-performing loans and real estate owned as of the dates indicated:

	June 30, 2022		December 31, 2021
	(In Thousands)
Non-accrual loans with reserve	$	25,088	$	35,480
Non-accrual loans without reserve		9,647		12,534
Loans 90 days plus past due and still accruing		—		—
Total non-performing loans		34,735		48,014
Real estate and other assets held for sale		462		171
Total non-performing assets	$	35,197	$	48,185
Troubled debt restructuring, still accruing	$	5,899	$	7,768

Schedule of Aging of the Amortized Cost/ Recorded Investment in Past Due and Non- Accrual Loans

The following table presents the aging of the amortized cost in past due and non-accrual loans as of June 30, 2022, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non- Accrual
Real Estate:
Residential	$	1,363,720	$	272	$	5,970	$	4,829	$	11,071	$	6,237
Commercial		2,646,610		116		56		12,033		12,205		14,316
Construction		404,846		—		—		—		—		—
Other Loans:
Commercial		979,873		—		—		5,003		5,003		5,199
Home equity and improvement		260,139		1,502		276		1,413		3,191		1,798
Consumer finance		176,758		1,348		631		1,665		3,644		1,818
PCD		18,054		318		1,224		4,167		5,709		5,367
Total Loans	$	5,850,000	$	3,556	$	8,157	$	29,110	$	40,823	$	34,735

The following table presents the aging of the recorded investment in past due and non-accrual loans as of December 31, 2021, by class of loans (in thousands):

	Current		30 - 59 days		60 - 89 days		90 + days		Total Past Due		Total Non- Accrual
Real Estate:
Residential	$	1,144,533	$	234	$	5,340	$	7,487	$	13,061	$	9,034
Commercial		2,439,552		96		847		7,168		8,111		14,621
Construction		383,136		43		1,746		—		1,789		—
Other Loans:
Commercial		884,025		42		35		867		944		11,531
Home equity and improvement		257,055		1,851		408		1,634		3,893		2,051
Consumer finance		124,073		1,112		819		1,728		3,659		1,873
PCD		25,111		225		1,005		5,996		7,226		8,904
Total Loans	$	5,257,485	$	3,603	$	10,200	$	24,880	$	38,683	$	48,014

Schedule of Present Loans by Class Modified as TDRs that Occurred

The following tables present loans by class modified as TDRs that occurred during the three and six months ended June 30, 2022:

	Loans Modified as a TDR for the Three Months Ended June 30, 2022 (Dollars in Thousands)				Loans Modified as a TDR for the Six Months Ended June 30, 2022 (Dollars in Thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		7	$	761		8	$	1,013
Commercial		3		4,979		3		4,979
Construction		—		—		—		—
Other Loans:
Commercial		2		4,264		2		4,264
Home equity and improvement		3		79		3		79
Consumer finance		3		24		5		44
Total		18	$	10,107		21	$	10,379

The loans described above increased the ACL by $399,000 and $400,000 in the three and six months ended June 30, 2022, respectively.

	Loans Modified as a TDR for the Three Months Ended June 30, 2021 (Dollars in Thousands)				Loans Modified as a TDR for the Six Months Ended June 30, 2021 (Dollars in Thousands)
Troubled Debt Restructurings	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	99		3	$	249
Commercial		—		—		—		—
Construction		—		—		—		—
Other Loans:
Commercial		2		869		5		1,578
Home equity and improvement		—		—		—		—
Consumer finance		—		—		—		—
Total		3	$	968		8	$	1,827

The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the three and six months ended June 30, 2022:

	Three Months Ended June 30, 2022				Six Months Ended June 30, 2022
	(Dollars in Thousands)				(Dollars in Thousands)
Troubled Debt Restructurings That Subsequently Defaulted	Number of Loans		Recorded Investment (as of period end)		Number of Loans		Recorded Investment (as of period end)
Real Estate:
Residential		1	$	63		1	$	63
Commercial		—		—		—		—
Construction		—		—		—		—
Other Loans:
Commercial		—		—		—		—
Home equity and improvement		—		—		—		—
Consumer finance		—		—		—		—
Total		1	$	63		1	$	63

Schedule of Risk Category of Loans by Class of Loans

As of June 30, 2022, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,366,499	$	1,244	$	7,048	$	—	$	7,048	$	1,374,791
Commercial		2,556,783		77,224		24,808		—		24,808		2,658,815
Construction		404,846		—		—		—		—		404,846
Other Loans:
Commercial		956,133		21,428		7,315		—		7,315		984,876
Home equity and improvement		261,530		—		1,800		—		1,800		263,330
Consumer finance		178,565		—		1,837		—		1,837		180,402
PCD		17,632		95		6,036		—		6,036		23,763
Total Loans	$	5,741,988	$	99,991	$	48,844	$	—	$	48,844	$	5,890,823

As of December 31, 2021, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

Class	Unclassified		Special Mention		Substandard		Doubtful		Total classified		Total
Real Estate:
Residential	$	1,146,212	$	1,316	$	10,066	$	—	$	10,066	$	1,157,594
Commercial		2,324,846		93,676		29,141		—		29,141		2,447,663
Construction		365,403		19,522		—		—		—		384,925
Other Loans:
Commercial		856,402		14,815		13,752		—		13,752		884,969
Home equity and improvement		258,914		—		2,034		—		2,034		260,948
Consumer finance		125,879		—		1,853		—		1,853		127,732
PCD		19,547		101		12,689		—		12,689		32,337
Total Loans	$	5,097,203	$	129,430	$	69,535	$	—	$	69,535	$	5,296,168

Summary of Amortized Cost Basis of Loans by Credit Quality Indicator and Class of Loans

The tables below present the amortized cost basis of loans by credit quality indicator and class of loans as of June 30, 2022 and December 31, 2021 (in thousands):

	Term of loans by origination
	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total
As of June 30, 2022
Real Estate
Residential:
Risk Rating
Pass	$	130,126	$	411,266	$	347,138	$	97,554	$	55,195	$	322,932	$	2,288	$	1,366,499
Special Mention		—		—		185		—		—		151		908		1,244
Substandard		—		1,109		640		1,078		561		3,660		—		7,048
Doubtful		—		—		—		—		—		—		—		—
Total	$	130,126	$	412,375	$	347,963	$	98,632	$	55,756	$	326,743	$	3,196	$	1,374,791
Commercial:
Risk Rating
Pass	$	349,863	$	509,480	$	525,116	$	340,337	$	220,518	$	598,695	$	12,774	$	2,556,783
Special Mention		2,362		289		—		307		16,867		56,726		673		77,224
Substandard		—		2,137		549		4,612		4,541		12,742		227		24,808
Doubtful		—		—		—		—		—		—		—		—
Total	$	352,225	$	511,906	$	525,665	$	345,256	$	241,926	$	668,163	$	13,674	$	2,658,815
Construction:
Risk Rating
Pass	$	250,401	$	55,693	$	52,861	$	—	$	143	$	—	$	45,748	$	404,846
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	250,401	$	55,693	$	52,861	$	—	$	143	$	—	$	45,748	$	404,846
Other Loans
Commercial:
Risk Rating
Pass	$	154,208	$	225,167	$	106,555	$	66,340	$	33,826	$	30,543	$	339,494	$	956,133
Special Mention		3,142		101		2,122		3,630		209		5,754		6,470		21,428
Substandard		40		121		4,244		5		225		230		2,450		7,315
Doubtful		—		—		—		—		—		—		—		—
Total	$	157,390	$	225,389	$	112,921	$	69,975	$	34,260	$	36,527	$	348,414	$	984,876
Home equity and Improvement:
Risk Rating
Pass	$	13,189	$	22,709	$	6,126	$	3,917	$	2,117	$	32,902	$	180,570	$	261,530
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		28		36		639		1,097		1,800
Doubtful		—		—		—		—		—		—		—		—
Total	$	13,189	$	22,709	$	6,126	$	3,945	$	2,153	$	33,541	$	181,667	$	263,330
Consumer Finance:
Risk Rating
Pass	$	78,957	$	39,974	$	20,955	$	17,464	$	6,353	$	4,294	$	10,568	$	178,565
Special Mention		—		—		—		—		—		—		—		—
Substandard		48		317		789		531		102		47		3		1,837
Doubtful		—		—		—		—		—		—		—		—
Total	$	79,005	$	40,291	$	21,744	$	17,995	$	6,455	$	4,341	$	10,571	$	180,402
PCD:
Risk Rating
Pass	$	—	$	—	$	—	$	158	$	370	$	13,334	$	3,770	$	17,632
Special Mention		—		—		—		—		—		95		—		95
Substandard		—		—		—		4		48		4,937		1,047		6,036
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	162	$	418	$	18,366	$	4,817	$	23,763

	Term of loans by origination
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total
As of December 31, 2021
Real Estate
Residential:
Risk Rating
Pass	$	219,006	$	373,439	$	112,781	$	65,544	$	71,794	$	301,735	$	1,913	$	1,146,212
Special Mention		—		190		—		—		59		109		958		1,316
Substandard		465		780		1,198		1,006		2,095		4,522		—		10,066
Doubtful		—		—		—		—		—		—		—		—
Total	$	219,471	$	374,409	$	113,979	$	66,550	$	73,948	$	306,366	$	2,871	$	1,157,594
Commercial:
Risk Rating
Pass	$	514,333	$	493,575	$	388,117	$	230,734	$	237,712	$	451,113	$	9,262	$	2,324,846
Special Mention		294		5,349		5,533		11,055		49,993		20,662		790		93,676
Substandard		172		570		4,920		5,525		62		17,665		227		29,141
Doubtful		—		—		—		—		—		—		—		—
Total	$	514,799	$	499,494	$	398,570	$	247,314	$	287,767	$	489,440	$	10,279	$	2,447,663
Construction:
Risk Rating
Pass	$	198,221	$	100,606	$	55,707	$	10,039	$	685	$	145	$	—	$	365,403
Special Mention		—		12,500		—		5,996		1,026		—		—		19,522
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
Total	$	198,221	$	113,106	$	55,707	$	16,035	$	1,711	$	145	$	—	$	384,925
Other Loans
Commercial:
Risk Rating
Pass	$	293,644	$	132,703	$	84,668	$	47,421	$	24,269	$	17,038	$	256,659	$	856,402
Special Mention		—		2,180		4,094		272		1,264		4,663		2,342		14,815
Substandard		136		11,550		23		288		388		131		1,236		13,752
Doubtful		—		—		—		—		—		—		—		—
Total	$	293,780	$	146,433	$	88,785	$	47,981	$	25,921	$	21,832	$	260,237	$	884,969
Home equity and Improvement:
Risk Rating
Pass	$	24,707	$	6,870	$	4,867	$	2,879	$	5,534	$	31,317	$	182,740	$	258,914
Special Mention		—		—		—		—		—		—		—		—
Substandard		15		—		28		48		27		690		1,226		2,034
Doubtful		—		—		—		—		—		—		—		—
Total	$	24,722	$	6,870	$	4,895	$	2,927	$	5,561	$	32,007	$	183,966	$	260,948
Consumer Finance:
Risk Rating
Pass	$	50,202	$	25,866	$	23,000	$	9,643	$	4,313	$	2,769	$	10,086	$	125,879
Special Mention		—		—		—		—		—		—		—		—
Substandard		196		707		619		129		67		131		4		1,853
Doubtful		—		—		—		—		—		—		—		—
Total	$	50,398	$	26,573	$	23,619	$	9,772	$	4,380	$	2,900	$	10,090	$	127,732
PCD:
Risk Rating
Pass	$	—	$	—	$	170	$	1,753	$	1,860	$	12,496	$	3,268	$	19,547
Special Mention		—		—		—		—		—		101		—		101
Substandard		—		—		67		28		3,242		6,490		2,862		12,689
Doubtful		—		—		—		—		—		—		—		—
Total	$	—	$	—	$	237	$	1,781	$	5,102	$	19,087	$	6,130	$	32,337

Summary of Credit Loss Estimation

The remaining life method was selected for the consumer direct loan segment since the pool contains loans with many different structures and payment streams and collateral. The weighted average remaining life uses an average annual charge-off rate applied to the contractual term, further adjusted for estimated prepayments to determine the unadjusted historical charge-off rate for the remaining balance of assets.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family nonowner occupied	DCF	National unemployment
	1-4 Family owner occupied	DCF	National unemployment
Commercial real estate	Commercial real estate nonowner occupied	DCF	National unemployment
	Commercial real estate owner occupied	DCF	National unemployment
	Multi Family	DCF	National unemployment
	Agriculture Land	DCF	National unemployment
	Other commercial real estate	DCF	National unemployment
Construction secured by real estate	Construction Other	PD/LGD	Call report loss history
	Construction Residential	PD/LGD	Call report loss history
Commercial	Commercial working capital	PD/LGD	Call report loss history
	Agriculture production	PD/LGD	Call report loss history
	Other commercial	PD/LGD	Call report loss history
Home equity and improvement	Home equity and improvement	PD/LGD	Call report loss history
Consumer finance	Consumer direct	Remaining life	Call report loss history
	Consumer indirect	DCF	National unemployment

Schedule of Outstanding Balance and Related Allowance on Loans

The outstanding balance and related allowance on these loans as of June 30, 2022 and December 31, 2021 is as follows (in thousands):

	As of June 30, 2022				As of December 31, 2021
	Loan Balance		ACL Balance		Loan Balance		ACL Balance
	(In Thousands)				(In Thousands)
Real Estate:
Residential	$	12,035	$	154	$	13,396	$	197
Commercial		1,727		29		5,878		151
Construction		—		—		—		—
		13,762		183		19,274		348
Other Loans:
Commercial		6,831		875		9,167		1,531
Home equity and improvement		2,814		118		3,405		154
Consumer finance		356		5		491		7
		10,001		998		13,063		1,692
Total	$	23,763	$	1,181	$	32,337	$	2,040