Loans (Tables)

6 Months Ended

Jun. 30, 2023

Non-covered Loans [Line Items]

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

The current year-to-date gross charge-offs by loan class and year of origination is presented in the following table:

	June 30, 2023
	Term Loans by Origination Year
(in thousands)	2022		2021		Prior		Revolving Loans Converted to Term Loans		Revolving Loans		Total
Commercial and industrial	$	3	$	—	$	—	$	—	$	3,824	$	3,827
Real estate:
Commercial - investor owned	—		170		7		—		—		177
Construction and land development	—		—		9		—		—		9
Residential	—		—		478		45		—		523
Other	—		129		3		—		—		132
Total current-period gross charge-offs by risk rating	$	3	$	299	$	497	$	45	$	3,824	$	4,668
Total current-period gross charge-offs by performing status											480
Total current-period gross charge-offs											$	5,148

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:

	June 30, 2023
	Term Loans by Origination Year
(in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Converted to Term Loans		Revolving Loans		Total
Commercial and industrial
Pass (1-6)	$	970,780	$	1,190,136	$	403,954	$	279,051	$	135,720	$	90,012	$	14,163	$	1,052,233	$	4,136,049
Special Mention (7)	13,250		19,004		15,944		12,909		852		11,595		353		64,652		138,559
Classified (8-9)	6,477		9,567		5,415		1,373		23		394		173		30,456		53,878
Total Commercial and industrial	$	990,507	$	1,218,707	$	425,313	$	293,333	$	136,595	$	102,001	$	14,689	$	1,147,341	$	4,328,486
Commercial real estate-investor owned
Pass (1-6)	$	271,496	$	618,992	$	571,395	$	363,098	$	205,959	$	263,606	$	5,762	$	52,553	$	2,352,861
Special Mention (7)	8,343		25,842		16,774		12,184		10,824		13,125		—		—		87,092
Classified (8-9)	—		1,809		—		462		636		4,506		48		—		7,461
Total Commercial real estate-investor owned	$	279,839	$	646,643	$	588,169	$	375,744	$	217,419	$	281,237	$	5,810	$	52,553	$	2,447,414
Commercial real estate-owner occupied
Pass (1-6)	$	252,316	$	514,007	$	514,350	$	335,271	$	198,183	$	346,366	$	4,074	$	27,122	$	2,191,689
Special Mention (7)	10,742		10,906		4,072		19,242		6,093		15,582		4,962		2,496		74,095
Classified (8-9)	—		1,643		2,287		5,009		8,811		23,625		95		500		41,970
Total Commercial real estate-owner occupied	$	263,058	$	526,556	$	520,709	$	359,522	$	213,087	$	385,573	$	9,131	$	30,118	$	2,307,754
Construction real estate
Pass (1-6)	$	204,763	$	294,359	$	113,358	$	46,209	$	2,524	$	3,598	$	—	$	2,359	$	667,170
Special Mention (7)	—		2,165		—		242		126		247		—		—		2,780
Classified (8-9)	1,138		—		—		—		13		472		—		—		1,623
Total Construction real estate	$	205,901	$	296,524	$	113,358	$	46,451	$	2,663	$	4,317	$	—	$	2,359	$	671,573
Residential real estate
Pass (1-6)	$	28,768	$	46,813	$	54,408	$	33,718	$	20,151	$	88,833	$	1,472	$	81,766	$	355,929
Special Mention (7)	44		282		—		—		76		1,137		—		7,549		9,088
Classified (8-9)	—		1,077		72		—		49		1,850		74		—		3,122
Total residential real estate	$	28,812	$	48,172	$	54,480	$	33,718	$	20,276	$	91,820	$	1,546	$	89,315	$	368,139
Other
Pass (1-6)	$	7,650	$	59,071	$	87,218	$	54,644	$	9,748	$	23,914	$	—	$	58,773	$	301,018
Special Mention (7)	—		—		—		—		—		—		—		—		—
Classified (8-9)	—		—		—		—		—		10		—		1		11
Total Other	$	7,650	$	59,071	$	87,218	$	54,644	$	9,748	$	23,924	$	—	$	58,774	$	301,029
Total loans classified by risk category	$	1,775,767	$	2,795,673	$	1,789,247	$	1,163,412	$	599,788	$	888,872	$	31,176	$	1,380,460	$	10,424,395
Total loans classified by performing status																	88,228
Total loans																	$	10,512,623

	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

The following tables present the recorded investment on loans based on payment activity as of the dates indicated:

	June 30, 2023
(in thousands)	Performing		Non Performing		Total
Commercial and industrial	$	32,351	$	25	$	32,376
Real estate:
Commercial - investor owned	18,240		—		18,240
Commercial - owner occupied	28,885		—		28,885
Residential	728		—		728
Other	7,985		14		7,999
Total	$	88,189	$	39	$	88,228

	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
Residential	743		—		743
Other	6,672		72		6,744
Total	$	78,647	$	142	$	78,789

Loan Modification

The following table shows the recorded investment at the end of the reporting period for loans modified to borrowers experiencing financial difficulty, disaggregated by loan class and type of concession granted:

	Term Extension
	Three months ended				Six months ended
(in thousands)	June 30, 2023		Percent of Total Loan Class		June 30, 2023		Percent of Total Loan Class
Commercial and industrial	$	6,533	0.15	%	$	27,690	0.63	%
Real estate:
Commercial - owner occupied	95		—	%	95		—	%
Construction and land development	396		0.06	%	1,138		0.17	%
Residential	74		0.02	%	74		0.02	%
Total	$	7,098			$	28,997

The following table summarizes the financial impacts of loan modifications made to borrowers experiencing financial difficulty:

	Weighted Average Term Extension (in months)
	Three months ended	Six months ended
	June 30, 2023	June 30, 2023
Commercial and industrial	5	6
Real estate:
Commercial - owner occupied	3	3
Construction and land development	6	8
Residential	5	5

The following table shows the aging of the recorded investment in modified loans by class:

	June 30, 2023
(in thousands)	Current		90 or More Days Past Due		Total
Commercial and industrial	$	27,029	$	661	$	27,690
Real estate:
Commercial - owner occupied	95		—		95
Construction and land development	1,138		—		1,138
Residential	74		—		74
Total	$	28,336	$	661	$	28,997

Portfolio loans, net

Non-covered Loans [Line Items]

Summary of Portfolio Loans by Category

The following table presents a summary of loans by category:

(in thousands)	June 30, 2023		December 31, 2022
Commercial and industrial	$	4,360,862	$	3,859,964
Real estate:
Commercial - investor owned	2,465,654		2,357,820
Commercial - owner occupied	2,336,639		2,270,551
Construction and land development	671,573		611,565
Residential	368,867		395,537
Total real estate loans	5,842,733		5,635,473
Other	315,214		248,990
Loans, before unearned loan fees	10,518,809		9,744,427
Unearned loan fees, net	(6,186)		(7,289)
Loans, including unearned loan fees	$	10,512,623	$	9,737,138

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 in the ACL on loans by category for the three and six months ended June 30, 2023 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
Allowance for credit losses on loans:
Balance at March 31, 2023	$	59,149	$	36,266	$	22,328	$	8,889	$	6,997	$	4,666	$	138,295
Provision (benefit) for credit losses	3,857		(2,420)		299		3,898		618		(255)		5,997
Charge-offs	(3,289)		(7)		—		—		(421)		(251)		(3,968)
Recoveries	601		37		73		8		227		49		995
Balance at June 30, 2023	$	60,318	$	33,876	$	22,700	$	12,795	$	7,421	$	4,209	$	141,319

(in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Other		Total
Allowance for credit losses on loans:
Balance at December 31, 2022	$	53,835	$	36,191	$	22,752	$	11,444	$	7,928	$	4,782	$	136,932
Provision (benefit) for credit losses	8,940		(2,198)		(141)		1,320		(533)		(292)		7,096
Charge-offs	(3,996)		(177)		—		(9)		(523)		(443)		(5,148)
Recoveries	1,539		60		89		40		549		162		2,439
Balance at June 30, 2023	$	60,318	$	33,876	$	22,700	$	12,795	$	7,421	$	4,209	$	141,319

(in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Other		Total
Allowance for credit losses on loans:
Balance at March 31, 2022	$	60,975	$	36,194	$	17,038	$	12,983	$	7,109	$	4,913	$	139,212
Provision (benefit) for credit losses	4,562		(2,680)		(1,066)		183		307		(147)		1,159
Charge-offs	(97)		(200)		(25)		—		(418)		(88)		(828)
Recoveries	206		24		209		14		480		70		1,003
Balance at June 30, 2022	$	65,646	$	33,338	$	16,156	$	13,180	$	7,478	$	4,748	$	140,546

(in thousands)	Commercial and industrial		CRE - investor owned		CRE - owner occupied		Construction and land development		Residential real estate		Other		Total
Allowance for credit losses on loans:
Balance at December 31, 2021	$	63,825	$	35,877	$	17,560	$	14,536	$	7,927	$	5,316	$	145,041
Provision (benefit) for credit losses	3,081		(2,559)		(1,648)		(1,391)		(149)		(483)		(3,149)
Charge-offs	(2,256)		(200)		(205)		—		(1,305)		(174)		(4,140)
Recoveries	996		220		449		35		1,005		89		2,794
Balance at June 30, 2022	$	65,646	$	33,338	$	16,156	$	13,180	$	7,478	$	4,748	$	140,546

Schedule of Recorded Investment in Nonperforming Loans by Category

The following tables present the recorded investment in nonperforming loans by category, excluding government guaranteed balances: 

	June 30, 2023
(in thousands)	Nonaccrual		Loans over 90 days past due and still accruing interest		Total nonperforming loans		Nonaccrual loans with no allowance
Commercial and industrial	$	9,558	$	687	$	10,245	$	4,480
Real estate:
Commercial - investor owned	2,766		—		2,766		—
Commercial - owner occupied	1,386		—		1,386		—
Construction and land development	742		—		742		742
Residential	959		—		959		959
Other	—		14		14		—
Total	$	15,411	$	701	$	16,112	$	6,181

	December 31, 2022
(in thousands)	Nonaccrual		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

Schedule of Collateral Dependent Loans

Collateral-dependent nonperforming loans by class of loan is presented as of the dates indicated:

	June 30, 2023
	Type of Collateral
(in thousands)	Commercial Real Estate		Residential Real Estate		Blanket Lien
Commercial and industrial	$	—	$	—	$	5,972
Real estate:
Commercial - investor owned	1,055		774		—
Commercial - owner occupied	1,386		—		—
Construction and land development			742
Residential	—		959		—
Total	$	2,441	$	2,475	$	5,972

	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

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 is presented as of the dates indicated.

	June 30, 2023
(in thousands)	30-89 Days  Past Due		90 or More Days Past Due		Total Past Due		Current		Total
Commercial and industrial	$	12,386	$	3,473	$	15,859	$	4,345,003	$	4,360,862
Real estate:
Commercial - investor owned	—		1,711		1,711		2,463,943		2,465,654
Commercial - owner occupied	19,476		4,078		23,554		2,313,085		2,336,639
Construction and land development	—		—		—		671,573		671,573
Residential	271		959		1,230		367,637		368,867
Other	27		14		41		315,173		315,214
Loans, before unearned loan fees	$	32,160	$	10,235	$	42,395	$	10,476,414	$	10,518,809
Unearned loan fees, net									(6,186)
Total									$	10,512,623

	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)
Total									$	9,737,138