Portfolio Loans (Tables)

12 Months Ended

Dec. 31, 2022

The amortized cost basis of collateral-dependent nonperforming loans by class of loan is presented for the periods indicated:


	December 31, 2022
	Type of Collateral
(in thousands)	Commercial Real Estate		Residential Real Estate		Blanket Lien
Commercial and industrial	$	—	$	—	$	1,047
Real estate:
Commercial - investor owned	2,238		785		—
Commercial - owner occupied	1,177		—		—
Construction and land development	—		1,192		—
Residential	—		73		—

Total	$	3,415	$	2,050	$	1,047


	December 31, 2021
	Type of Collateral
(in thousands)	Commercial Real Estate		Residential Real Estate		Blanket Lien
Commercial and industrial	$	4,271	$	209	$	9,312
Real estate:
Commercial - investor owned	169		1,200		—
Commercial - owner occupied	2,807		32		—

Residential	—		2,048		—
Other	—		—		—
Total	$	7,247	$	3,489	$	9,312

Acquired PCD Loans

Non-Covered Loans

Non-covered Loans [Line Items]

Summary of Portfolio Loans by Category

Below is a summary of loans by category:


($ in thousands)	December 31, 2022		December 31, 2021
Commercial and industrial	$	3,859,964	$	3,396,590
Real estate loans:
Commercial - investor owned	2,357,820		2,141,143
Commercial - owner occupied	2,270,551		2,035,785
Construction and land development	611,565		734,073
Residential	395,537		454,052
Total real estate loans	5,635,473		5,365,053
Other	248,990		265,137
Loans, before unearned loan fees	9,744,427		9,026,780
Unearned loan fees, net	(7,289)		(9,138)
Loans, including unearned loan fees	$	9,737,138	$	9,017,642

Summary of Allowance for Loan Losses and the Recorded Investment in Portfolio Loans by Class and Category Based on Impairment Method

A summary of the activity, by loan category, in the allowance for credit losses on loans for 2020, 2021, and 2022 is as follows:


($ in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Other		Total
Balance at December 31, 2020
Allowance for loan losses:
Balance, beginning of year	$	33,949	$	16,656	$	7,414	$	7,577	$	3,349	$	1,050	$	69,995
Provision for loan losses	28,373		11,037		7,845		13,438		674		2,012		63,379
Initial allowance on acquired PCD loans	23		2,026		1,427		45		3		—		3,524
Charge-offs	(5,381)		(498)		(30)		(31)		(408)		(391)		(6,739)
Recoveries	1,848		2,841		356		384		967		116		6,512
Balance, end of year	$	58,812	$	32,062	$	17,012	$	21,413	$	4,585	$	2,787	$	136,671

Balance at December 31, 2021
Allowance for loan losses:
Balance, beginning of year	$	58,812	$	32,062	$	17,012	$	21,413	$	4,585	$	2,787	$	136,671
Provision (benefit) for loan losses	14,361		568		(550)		(7,365)		3,900		2,079		12,993
Initial allowance on acquired PCD loans	1,077		3,651		1,504		37		—		737		7,006
Charge-offs	(12,113)		(2,487)		(602)		(3)		(1,521)		(459)		(17,185)
Recoveries	1,688		2,083		196		454		963		172		5,556
Balance, end of year	$	63,825	$	35,877	$	17,560	$	14,536	$	7,927	$	5,316	$	145,041

Balance at December 31, 2022
Allowance for credit losses:
Balance, beginning of year	$	63,825	$	35,877	$	17,560	$	14,536	$	7,927	$	5,316	$	145,041
Provision (benefit) for loan losses	(6,121)		46		4,867		(3,145)		540		(397)		(4,210)

Charge-offs	(6,082)		(478)		(395)		—		(2,068)		(370)		(9,393)
Recoveries	2,213		746		720		53		1,529		233		5,494
Balance, end of year	$	53,835	$	36,191	$	22,752	$	11,444	$	7,928	$	4,782	$	136,932

Schedule of Recorded Investment in Impaired Portfolio Loans by Category

The recorded investment in nonperforming loans by category at December 31, 2022 and 2021 is as follows:


	December 31, 2022
($ in thousands)	Non-accrual		Restructured, accruing		Loans over 90 days past due and still accruing interest		Total nonperforming loans		Nonaccrual loans with no allowance
Commercial and industrial	$	4,373	$	—	$	70	$	4,443	$	1,047
Real estate:
Commercial - investor owned	3,023		—		—		3,023		—
Commercial - owner occupied	1,177		—		—		1,177		—
Construction and land development	1,192		—		—		1,192		1,192
Residential	—		73		—		73		—
Other	1		—		72		73		—
Total	$	9,766	$	73	$	142	$	9,981	$	2,239


	December 31, 2021
($ in thousands)	Non-accrual		Restructured, accruing		Loans over 90 days past due and still accruing interest		Total nonperforming loans		Nonaccrual loans with no allowance
Commercial and industrial	$	17,052	$	2,783	$	1,703	$	21,538	$	5,685
Real estate:
Commercial - investor owned	1,575		—		—		1,575		168
Commercial - owner occupied	2,839		—		—		2,839		2,550

Residential	1,971		76		1		2,048		1,348
Other	12		—		12		24		—
Total	$	23,449	$	2,859	$	1,716	$	28,024	$	9,751

Summary of Recorded Investment by for Portfolio Loans Restructured

The recorded investment by category for loans restructured during the year ended December 31, 2021 is as follows:

Year ended December 31, 2021

($ in thousands, except for number of loans)

Number of Loans

Pre-Modification Outstanding
Recorded Balance

Post-Modification Outstanding
Recorded Balance

Real Estate: Residential

221

Summary of Recorded Investment by Category for Portfolio Loans Restructured and Subsequently Defaulted

Loans restructured that subsequently defaulted during the year ended December 31, 2021 are as follows:

Year ended December 31, 2021

($ in thousands, except for number of loans)

Number of Loans

Recorded Balance

Real Estate: Residential

148

Summary of Aging of Recorded Investment in Past Due Portfolio Loans by Portfolio Class and Category

The aging of the recorded investment in past due loans by class and category is shown below:


	December 31, 2022
($ in thousands)	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	555	$	2,373	$	2,928	$	3,857,036	$	3,859,964
Real estate:
Commercial - investor owned	—		1,135		1,135		2,356,685		2,357,820
Commercial - owner occupied	8,628		164		8,792		2,261,759		2,270,551
Construction and land development	9		1,192		1,201		610,364		611,565
Residential	1,227		—		1,227		394,310		395,537
Other	18		72		90		248,900		248,990
Loans, before unearned loan fees	10,437		4,936		15,373		9,729,054		9,744,427
Unearned loan fees, net	—		—		—		(7,289)		(7,289)
Total	$	10,437	$	4,936	$	15,373	$	9,721,765	$	9,737,138


	December 31, 2021
($ in thousands)	30-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	24,447	$	14,158	$	38,605	$	3,357,985	$	3,396,590
Real estate:
Commercial - investor owned	3,880		—		3,880		2,137,263		2,141,143
Commercial - owner occupied	10,070		289		10,359		2,025,426		2,035,785
Construction and land development	24		—		24		734,049		734,073
Residential	3,181		1,305		4,486		449,566		454,052
Other	37		11		48		265,089		265,137
Loans, before unearned loan fees	41,639		15,763		57,402		8,969,378		9,026,780
Unearned loan fees, net	—		—		—		(9,138)		(9,138)
Total	$	41,639	$	15,763	$	57,402	$	8,960,240	$	9,017,642

Summary of Recorded Investment by Risk Category of Portfolio Loans by Portfolio Class and Category

The recorded investment by risk category of the loans by class and year of origination is presented in the following tables as of the dates indicated:


	December 31, 2022
	Term Loans by Origination Year
(in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Converted to Term Loans		Revolving Loans		Total
Commercial and industrial
Pass (1-6)	$	1,403,381	$	635,275	$	332,740	$	172,127	$	62,729	$	66,152	$	8,388	$	964,592	$	3,645,384
Special Mention (7)	37,048		10,836		13,858		423		7,995		4,102		—		72,944		147,206
Classified (8-9)	16,176		4,457		1,627		24		166		183		—		21,349		43,982
Total Commercial and industrial	$	1,456,605	$	650,568	$	348,225	$	172,574	$	70,890	$	70,437	$	8,388	$	1,058,885	$	3,836,572

Commercial real estate-investor owned
Pass (1-6)	$	667,107	$	584,644	$	392,402	$	240,033	$	115,530	$	202,661	$	1,457	$	53,051	$	2,256,885
Special Mention (7)	18,844		5,751		23,502		11,605		—		13,063		—		—		72,765
Classified (8-9)	1,823		—		465		953		193		6,092		49		—		9,575
Total Commercial real estate-investor owned	$	687,774	$	590,395	$	416,369	$	252,591	$	115,723	$	221,816	$	1,506	$	53,051	$	2,339,225

Commercial real estate-owner occupied
Pass (1-6)	$	539,610	$	555,690	$	362,150	$	232,335	$	123,095	$	270,613	$	—	$	57,308	$	2,140,801
Special Mention (7)	11,164		3,801		16,856		4,455		13,043		9,009		—		800		59,128
Classified (8-9)	—		1,572		3,483		8,910		15,873		11,387		—		—		41,225
Total Commercial real estate-owner occupied	$	550,774	$	561,063	$	382,489	$	245,700	$	152,011	$	291,009	$	—	$	58,108	$	2,241,154

Construction real estate
Pass (1-6)	$	290,146	$	232,998	$	53,129	$	2,909	$	2,061	$	8,480	$	—	$	1,769	$	591,492
Special Mention (7)	17,331		—		681		146		111		106		—		—		18,375
Classified (8-9)	1,192		—		—		14		471		21		—		—		1,698
Total Construction real estate	$	308,669	$	232,998	$	53,810	$	3,069	$	2,643	$	8,607	$	—	$	1,769	$	611,565

Residential real estate
Pass (1-6)	$	63,317	$	60,910	$	48,796	$	20,943	$	11,259	$	88,795	$	579	$	96,304	$	390,903
Special Mention (7)	331		—		—		79		352		781		—		—		1,543
Classified (8-9)	121		73		—		53		1,102		994		—		5		2,348
Total residential real estate	$	63,769	$	60,983	$	48,796	$	21,075	$	12,713	$	90,570	$	579	$	96,309	$	394,794

Other
Pass (1-6)	$	38,753	$	88,613	$	56,252	$	10,556	$	20,508	$	10,796	$	—	$	9,536	$	235,014
Special Mention (7)	—		—		—		—		—		—		—		—		—
Classified (8-9)	—		—		—		4		3		11		3		4		25
Total Other	$	38,753	$	88,613	$	56,252	$	10,560	$	20,511	$	10,807	$	3	$	9,540	$	235,039

Total loans classified by risk category	$	3,106,344	$	2,184,620	$	1,305,941	$	705,569	$	374,491	$	693,246	$	10,476	$	1,277,662	$	9,658,349
Total loans classified by performing status																	78,789
Total loans																	$	9,737,138


	December 31, 2021
	Term Loans by Origination Year
(in thousands)	2021		2020		2019		2018		2017		Prior		Revolving Loans Converted to Term Loans		Revolving Loans		Total
Commercial and industrial
Pass (1-6)	$	1,180,601	$	477,374	$	317,869	$	132,851	$	116,738	$	82,846	$	11,648	$	854,102	$	3,174,029
Special Mention (7)	35,005		17,502		9,404		9,880		12,217		10,979		4,037		53,595		152,619
Classified (8-9)	14,917		3,530		3,840		1,689		2,988		813		787		10,996		39,560
Total Commercial and industrial	$	1,230,523	$	498,406	$	331,113	$	144,420	$	131,943	$	94,638	$	16,472	$	918,693	$	3,366,208

Commercial real estate-investor owned
Pass (1-6)	$	651,740	$	476,946	$	346,245	$	146,107	$	112,043	$	217,808	$	3,625	$	68,236	$	2,022,750
Special Mention (7)	16,871		35,908		32,755		1,003		502		17,478		300		2,062		106,879
Classified (8-9)	1,376		3,135		835		817		1,159		4,141		—		50		11,513
Total Commercial real estate-investor owned	$	669,987	$	515,989	$	379,835	$	147,927	$	113,704	$	239,427	$	3,925	$	70,348	$	2,141,142

Commercial real estate-owner occupied
Pass (1-6)	$	604,975	$	423,263	$	278,830	$	164,210	$	140,515	$	235,973	$	250	$	48,349	$	1,896,365
Special Mention (7)	12,825		13,585		4,301		16,774		10,274		15,764		—		300		73,823
Classified (8-9)	2,048		556		9,181		17,016		6,432		6,959		—		—		42,192
Total Commercial real estate-owner occupied	$	619,848	$	437,404	$	292,312	$	198,000	$	157,221	$	258,696	$	250	$	48,649	$	2,012,380

Construction real estate
Pass (1-6)	$	310,140	$	229,396	$	70,531	$	35,936	$	14,860	$	7,180	$	568	$	2,992	$	671,603
Special Mention (7)	28,947		15,348		60		1,199		11,068		2,330		—		—		58,952
Classified (8-9)	—		—		387		419		—		22		—		—		828
Total Construction real estate	$	339,087	$	244,744	$	70,978	$	37,554	$	25,928	$	9,532	$	568	$	2,992	$	731,383

Residential real estate
Pass (1-6)	$	116,352	$	66,481	$	21,356	$	14,841	$	24,778	$	103,840	$	9,980	$	87,146	$	444,774
Special Mention (7)	2,425		2		622		1,157		248		1,305		—		79		5,838
Classified (8-9)	414		169		554		—		12		2,024		—		—		3,173
Total residential real estate	$	119,191	$	66,652	$	22,532	$	15,998	$	25,038	$	107,169	$	9,980	$	87,225	$	453,785

Other
Pass (1-6)	$	108,209	$	68,806	$	22,684	$	23,145	$	6,924	$	13,832	$	1,500	$	9,166	$	254,266
Special Mention (7)	—		—		—		4		—		2,440		—		1		2,445
Classified (8-9)	—		—		10		10		—		16		—		2		38
Total Other	$	108,209	$	68,806	$	22,694	$	23,159	$	6,924	$	16,288	$	1,500	$	9,169	$	256,749

Total loans classified by risk category	$	3,086,845	$	1,832,001	$	1,119,464	$	567,058	$	460,758	$	725,750	$	32,695	$	1,137,076	$	8,961,647
Total loans classified by performing status																	55,995
Total loans																	$	9,017,642

In the tables above, loan originations in 2022 and 2021 with a classification of “special mention” or “classified” primarily represent renewals or modifications initially underwritten and originated in prior years.

For certain loans the Company evaluates credit quality based on the aging status.


	December 31, 2022
(in thousands)	Performing		Non Performing		Total
Commercial and industrial	$	23,240	$	70	$	23,310
Real estate:
Commercial - investor owned	18,595		—		18,595
Commercial - owner occupied	29,397		—		29,397
Construction and land development	—		—		—
Residential	743		—		743
Other	6,672		72		6,744
Total	$	78,647	$	142	$	78,789


	December 31, 2021
(in thousands)	Performing		Non Performing		Total
Commercial and industrial	$	26,166	$	1	$	26,167
Real estate:
Commercial - investor owned	1		—		1
Commercial - owner occupied	23,405		—		23,405
Construction and land development	2,690		—		2,690
Residential	267		—		267
Other	3,453		12		3,465
Total	$	55,982	$	13	$	55,995