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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of loans, net of unamortized net deferred fees
Loans, net of unamortized net deferred fees, at September 30, 2020 (unaudited) and December 31, 2019 are summarized by type as follows:
​
​September 30, 2020December 31, 2019
(dollars in thousands)Amount%Amount%
Commercial$1,524,613 19 %$1,545,906 20 %
PPP loans456,115 6 %— — 
Income producing - commercial real estate3,724,839 47 %3,702,747 50 %
Owner occupied - commercial real estate997,645 13 %985,409 13 %
Real estate mortgage - residential82,385 1 %104,221 1 %
Construction - commercial and residential879,144 11 %1,035,754 14 %
Construction - C&I (owner occupied)140,357 2 %89,490 1 %
Home equity72,648 1 %80,061 1 %
Other consumer2,509 — 2,160 — 
Total loans7,880,255 100 %7,545,748 100 %
Less: allowance for credit losses(110,215)​(73,658)​
Net loans (1)
$7,770,040 ​$7,472,090 ​
________________________________________
(1)Excludes accrued interest receivable of $43.7 million and $21.3 million at September 30, 2020 and December 31, 2019, respectively, which is recorded in other assets.
Schedule of detail activity in the allowance for credit losses by portfolio segment
The following tables detail activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2020 and 2019. PPP loans are excluded from these tables since they do not carry an allowance for credit loss, as these loans are fully guaranteed as to principal and interest by the SBA, whose guarantee is backed by the full faith and credit of the U.S. Government. Allocation of a portion of the allowance to one category of loans does not restrict the use of the allowance to absorb losses in other categories.



​
​​Income Producing -Owner Occupied -Real EstateConstruction -​​​
​​CommercialCommercialMortgage -Commercial andHomeOther​
(dollars in thousands)CommercialReal EstateReal EstateResidentialResidentialEquityConsumerTotal
Three Months Ended September 30, 2020​​​​​​​​
Allowance for credit losses:                
Balance at beginning of period$28,078 $51,863 $12,341 $1,550 $13,808 $1,112 $44 $108,796 
Loans charged-off(187)(3,750)(20)— (1,179)(92)— (5,228)
Recoveries of loans previously charged-off45 — — — — — 13 58 
Net loans charged-off(142)(3,750)(20)— (1,179)(92)13 (5,170)
Provision for credit losses(712)7,327 769 321 (1,088)(13)(15)6,589 
Ending balance$27,224 $55,440 $13,090 $1,871 $11,541 $1,007 $42 $110,215 
​
Nine Months Ended September 30, 2020
Allowance for credit losses:
Balance at beginning of period, prior to adoption of ASC 326$18,832 $29,265 $5,838 $1,557 $17,485 $656 $25 $73,658 
Impact of adopting ASC 326892 11,230 4,674 (301)(6,143)245 17 10,614 
Loans charged-off(7,332)(4,300)(20)— (2,947)(92)— (14,691)
Recoveries of loans previously charged-off116 — — — — — 20 136 
Net loans (charged-off) recoveries(7,216)(4,300)(20)— (2,947)(92)20 (14,555)
Provision for credit losses14,716 19,245 2,598 615 3,146 198 (20)40,498 
Ending balance$27,224 $55,440 $13,090 $1,871 $11,541 $1,007 $42 $110,215 
​
As of September 30, 2020
Allowance for credit losses:
Individually evaluated for impairment$9,593 $5,999 $670 $1,148 $204 $— $3 $17,617 
Collectively evaluated for impairment17,631 49,441 12,420 723 11,337 1,007 39 92,598 
Ending balance$27,224 $55,440 $13,090 $1,871 $11,541 $1,007 $42 $110,215 
​
Three Months Ended September 30, 2019
Allowance for credit losses:
Balance at beginning of period$18,136 $27,010 $5,756 $1,355 $19,006 $581 $242 $72,086 
Loans charged-off(1,794)— — — — — (1,794)
Recoveries of loans previously charged-off210 — — 15 — 17 242 
Net loans charged-off(1,584)— — — 15 — 17 (1,552)
Provision for credit losses1,617 1,517 (158)(3)251 (6)(32)3,186 
Ending balance$18,169 $28,527 $5,598 $1,352 $19,272 $575 $227 $73,720 
​
Nine Months Ended September 30, 2019
Allowance for credit losses:
Balance at beginning of period$15,857 $28,034 $6,242 $965 $18,175 $599 $72 $69,944 
Loans charged-off(1,799)(5,343)— — — — (2)(7,144)
Recoveries of loans previously charged-off377 302 2 3 52 — 38 774 
Net loans (charged-off) recoveries(1,422)(5,041)2 3 52 — 36 (6,370)
Provision for credit losses3,734 5,534 (646)384 1,045 (24)119 10,146 
Ending balance$18,169 $28,527 $5,598 $1,352 $19,272 $575 $227 $73,720 
​
As of September 30, 2019
Allowance for credit losses:
Individually evaluated for impairment$8,196 $1,200 $375 $650 $— $13 $— $10,434 
Collectively evaluated for impairment9,973 27,327 5,223 702 19,272 562 227 63,286 
Ending balance$18,169 $28,527 $5,598 $1,352 $19,272 $575 $227 $73,720 
Schedule of amortized cost basis of collateral-dependent loans by class of loans
The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2020:
​
(dollars in thousands)Business/Other AssetsReal Estate
Commercial$14,075 $2,948 
Income producing - commercial real estate3,193 26,063 
Owner occupied - commercial real estate— 14,215 
Real estate mortgage - residential— 5,335 
Construction - commercial and residential— 2,274 
Home equity— 109 
Other consumer8 — 
Total$17,276 $50,944 
Schedule of the risk category of loans by class of loans
September 30, 2020 (dollars in thousands)Prior20162017201820192020Total
Commercial​​​​​​​
Pass375,848 124,678 306,487 249,287 193,594 155,505 1,405,399 
Watch32,430 — — 451 — — 32,881 
Special Mention1,302 4,766 2,046 12,421 207 — 20,742 
Substandard16,915 3,125 32,399 9,478 3,674 — 65,591 
Total426,495 132,569 340,932 271,637 197,475 155,505 1,524,613 
PPP loans
Pass— — — — — 456,115 456,115 
Total— — — — — 456,115 456,115 
Income producing - commercial real estate
Pass756,002 402,690 421,428 685,804 705,972 377,721 3,349,617 
Watch150,215 — — — 47,644 — 197,859 
Special Mention203 800 4,656 4,883 5,542 — 16,084 
Substandard13,375 15,480 74,168 53,616 4,640 — 161,279 
Total919,795 418,970 500,252 744,303 763,798 377,721 3,724,839 
Owner occupied - commercial real estate
Pass344,863 105,381 115,144 139,991 74,286 29,169 808,834 
Watch50,018 764 — 355 3,475 — 54,612 
Substandard9,584 2,038 2,645 95,171 24,761 — 134,199 
Total404,465 108,183 117,789 235,517 102,522 29,169 997,645 
Real estate mortgage - residential
Pass18,121 3,410 10,377 14,593 23,100 6,837 76,438 
Watch612 4,154 — — — — 4,766 
Substandard1,181 — — — — — 1,181 
Total19,914 7,564 10,377 14,593 23,100 6,837 82,385 
Construction - commercial and residential
Pass32,535 65,703 286,922 314,061 104,335 46,832 850,388 
Substandard853 1,866 408 — — — 3,127 
Watch— — 25,629 — — — 25,629 
Total33,388 67,569 312,959 314,061 104,335 46,832 879,144 
Construction - C&I (owner occupied)
Pass11,162 10,577 6,501 29,963 18,761 43,997 120,961 
Watch787 — 2,121 3,251 13,237 — 19,396 
Total11,949 10,577 8,622 33,214 31,998 43,997 140,357 
Home Equity
Pass38,049 4,970 8,274 8,314 4,369 6,918 70,894 
Watch1,401 — — — 49 — 1,450 
Substandard304 — — — — — 304 
Total39,754 4,970 8,274 8,314 4,418 6,918 72,648 
Other Consumer
Pass2,039 169 108 50 100 33 2,499 
Substandard10 — — — — — 10 
Total2,049 169 108 50 100 33 2,509 
Total Recorded Investment$1,857,809 $750,571 $1,299,313 $1,621,689 $1,227,746 $1,123,127 $7,880,255 
Schedule of loans by class and credit quality indicators
The Company’s credit quality indicators are generally updated annually; however, credits rated watch or below are reviewed more frequently. The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of December 31, 2019:
​
​​​​​​Total
(dollars in thousands)PassWatchSpecial MentionSubstandardDoubtfulLoans
December 31, 2019    ​      
Commercial$1,470,636 $38,522 $11,460 $25,288 $— $1,545,906 
Income producing - commercial real estate3,667,585 16,069 — 19,093 — 3,702,747 
Owner occupied - commercial real estate925,800 53,146 — 6,463 — 985,409 
Real estate mortgage - residential98,228 628 — 5,365 — 104,221 
Construction - commercial and residential1,113,734 — — 11,510 — 1,125,244 
Home equity78,626 948 — 487 — 80,061 
Other consumer2,160 — — — — 2,160 
Total$7,356,769 $109,313 $11,460 $68,206 $— $7,545,748 
Schedule by class of loan, an aging analysis and the recorded investments in loans past due
The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of September 30, 2020 (unaudited) and December 31, 2019:
​
​​LoansLoansLoans​Total Recorded
​Current30-59 Days60-89 Days90 Days orTotal Past​Investment in
(dollars in thousands)LoansPast DuePast DueMore Past DueDue LoansNon-AccrualLoans
September 30, 2020​​​​​​​
Commercial$1,494,038 $4,585 $10,154 $— $14,739 $15,836 $1,524,613 
PPP loans456,115 — — — — — 456,115 
Income producing - commercial real estate3,696,949 — 7,822 — 7,822 20,068 3,724,839 
Owner occupied - commercial real estate983,021 — 446 — 446 14,178 997,645 
Real estate mortgage - residential76,798 — — — — 5,587 82,385 
Construction - commercial and residential876,361 — 509 — 509 2,274 879,144 
Construction - C&I (owner occupied)138,837 1,520 — — 1,520 — 140,357 
Home equity71,837 656 46 — 702 109 72,648 
Other consumer2,492 9 — — 9 8 2,509 
Total$7,796,448 $6,770 $18,977 $— $25,747 $58,060 $7,880,255 
​​​​​​​​
December 31, 2019​​​​​​​
Commercial$1,527,134 $3,063 $781 $— $3,844 $14,928 $1,545,906 
Income producing - commercial real estate3,687,494 — 5,542 — 5,542 9,711 3,702,747 
Owner occupied - commercial real estate965,938 13,008 — — 13,008 6,463 985,409 
Real estate mortgage – residential95,057 3,533 — — 3,533 5,631 104,221 
Construction - commercial and residential1,113,735 — — — — 11,509 1,125,244 
Home equity79,246 136 192 — 328 487 80,061 
Other consumer2,151 — 9 — 9 — 2,160 
Total$7,470,755 $19,740 $6,524 $— $26,264 $48,729 $7,545,748 
Schedule of information related to nonaccrual loans by class
The following presents the nonaccrual loans as of September 30, 2020 (unaudited) and December 31, 2019:
​
​September 30, 2020December 31, 2019
​Nonaccrual withNonaccrual withTotalTotal
​No Allowancean AllowanceNonaccrualNonaccrual
(dollars in thousands)for Credit Lossfor Credit LossLoansLoans
​​​​​
Commercial572 15,262 15,834 14,928 
PPP loans— — — — 
Income producing - commercial real estate6,690 13,379 20,069 9,711 
Owner occupied - commercial real estate12,627 1,551 14,178 6,463 
Real estate mortgage - residential1,434 4,154 5,588 5,631 
Construction - commercial and residential1,866 408 2,274 11,509 
Home equity109 — 109 487 
Other consumer5 3 8 — 
Total (1)(2)
$23,303 $34,757 $58,060 $48,729 
________________________________________
(1)Excludes TDRs that were performing under their restructured terms totaling $10.1 at September 30, 2020 and $16.6 million at December 31, 2019.
(2)Gross interest income of $2.6 million and $2.7 million would have been recorded for the nine months ended September 30, 2020 and 2019, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was $282 thousand and $598 thousand for the nine months ended September 30, 2020 and 2019, respectively. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.
Schedule of impaired loans, by class of loan
The following table presents, by class of loan, information related to impaired loans at December 31, 2019:
​
​UnpaidRecordedRecorded​​Average RecordedInterest Income
​ContractualInvestmentInvestmentTotal​InvestmentRecognized
​PrincipalWith NoWithRecordedRelatedYearYear
(dollars in thousands)BalanceAllowanceAllowanceInvestmentAllowanceto DateTo Date
December 31, 2019​​​​​​​
Commercial$15,814 $11,858 $3,956 $15,814 $5,714 $15,682 $270 
Income producing - commercial real estate14,093 2,713 11,380 14,093 2,145 18,133 382 
Owner occupied - commercial real estate7,349 6,388 961 7,349 415 6,107 197 
Real estate mortgage - residential5,631 3,175 2,456 5,631 650 5,638 — 
Construction - commercial and residential11,509 11,101 408 11,509 100 8,211 92 
Home equity487 — 487 487 100 487 — 
Other consumer— — — — — — — 
Total$54,883 $35,235 $19,648 $54,883 $9,124 $54,258 $941 
Schedule of loans modified in troubled debt restructurings
The following table presents by class, the recorded investment of loans modified in TDRs held by the Company for the periods ended September 30, 2020 and 2019.
​
​Nine Months Ended September 30, 2020
​​​IncomeOwner​​
​Number​Producing -Occupied -Construction -​
​of​CommercialCommercialCommercial​
(dollars in thousands)ContractsCommercialReal EstateReal EstateReal EstateTotal
Troubled debt restructurings            
Restructured accruing7 $1,297 $9,188 $37 $— $10,522 
Restructured nonaccruing4 138 6,342 2,370 — 8,850 
Total11 $1,435 $15,530 $2,407 $— $19,372 
​​
Specific allowance​$227 $629 $— $— $856 
​​
Restructured and subsequently defaulted​$138 $11,161 $2,370 $— $13,669 
​
​Nine Months Ended September 30, 2019
​​​IncomeOwner​​
​Number​Producing -Occupied -Construction -​
​of​CommercialCommercialCommercial​
(dollars in thousands)ContractsCommercialReal EstateReal EstateReal EstateTotal
Troubled debt restructurings
Restructured accruing7 $898 $4,387 $3,283 $— $8,568 
Restructured nonaccruing3 1,521 — — — 1,521 
Total10 $2,419 $4,387 $3,283 $— $10,089 
​​
Specific allowance​$— $1,000 $— $— $1,000 
​​
Restructured and subsequently defaulted​$— $2,300 $— $— $2,300