XML 38 R25.htm IDEA: XBRL DOCUMENT v3.21.2
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Schedule of loans, net of unamortized net deferred fees Loans, net of unamortized net deferred fees, at June 30, 2021 and December 31, 2020 are summarized by type as follows:
June 30, 2021December 31, 2020
(dollars in thousands)Amount%Amount%
Commercial$1,359,157 19 %$1,437,433 19 %
PPP loans238,041 3 %454,771 6 %
Income producing - commercial real estate3,534,057 48 %3,687,000 47 %
Owner occupied - commercial real estate991,936 14 %997,694 13 %
Real estate mortgage - residential77,131 1 %76,592 1 %
Construction - commercial and residential835,733 12 %873,261 11 %
Construction - C&I (owner occupied)161,187 2 %158,905 2 %
Home equity60,559 1 %73,167 1 %
Other consumer1,757 — 1,389 — 
Total loans7,259,558 100 %7,760,212 100 %
Less: allowance for credit losses(92,560)(109,579)
Net loans (1)
$7,166,998 $7,650,633 
________________________________________
(1)Excludes accrued interest receivable of $43.5 million and $46.0 million at June 30, 2021 and December 31, 2020, 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 six months ended June 30, 2021 and 2020. 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 June 30, 2021
Allowance for credit losses:
Balance at beginning of period$23,701 $51,510 $14,315 $919 $10,683 $907 $35 $102,070 
Loans charged-off(1,541)(4,216)— — — — — (5,757)
Recoveries of loans previously charged-off150 — — — 6 — 2 158 
Net loans charged-off(1,391)— (4,216)— — — — — 6 — — — 2 (5,599)
Provision for credit losses(962)(1,324)(1,320)(37)(262)(10)4 (3,911)
Ending balance$21,348 $— $45,970 $— $12,995 $— $882 $— $10,427 $— $897 $— $41 $92,560 
Six Months Ended June 30, 2021
Allowance for credit losses:
Balance at beginning of period$26,569 $55,385 $14,000 $1,020 $11,529 $1,039 $37 $109,579 
Loans charged-off(5,691)(5,216)— — (206)— (1)(11,114)
Recoveries of loans previously charged-off246 — — — 6 — 15 267 
Net loans (charged-off) recoveries(5,445)(5,216)— — (200)— 14 (10,847)
Provision for credit losses- loans224 (4,199)(1,005)(138)(902)(142)(10)(6,172)
Ending balance$21,348 $45,970 $12,995 $882 $10,427 $897 $41 $92,560 
As of June 30, 2021
Allowance for credit losses:
Individually evaluated for impairment$4,941 $4,923 $436 $330 $— $172 $— $10,802 
Collectively evaluated for impairment16,407 41,047 12,559 552 10,427 725 41 81,758 
Ending balance$21,348 $45,970 $12,995 $882 $10,427 $897 $41 $92,560 
Three Months Ended June 30, 2020
Allowance for credit losses:
Balance at beginning of period, prior to adoption of ASC 32627,346 43,551 9,867 1,369 13,341 818 44 96,336 
Loans charged-off(7,145)— — — — — (7,145)
Recoveries of loans previously charged-off5 — — — — 1 6 
Net loans (charged-off) recoveries(7,140)— — — — — — — — — — 1 (7,139)
Provision for credit losses- loans7,872 8,312 2,474 181 467 294 (1)19,599 
Ending balance28,078 51,863 12,341 — 1,550 — 13,808 — 1,112 — 44 108,796 
Six Months Ended June 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(7,145)(550)— — (1,768)— — (9,463)
Recoveries of loans previously charged-off74 — — — — — 4 78 
Net loans (charged-off) recoveries(7,071)(550)— — (1,768)— 4 (9,385)
Provision for credit losses- loans15,425 11,918 1,829 294 4,234 211 (2)33,909 
Ending balance$28,078 $51,863 $12,341 $1,550 $13,808 $1,112 $44 $108,796 
As of June 30, 2020
Allowance for credit losses:
Individually evaluated for impairment$8,797 $5,260 $405 $746 $1,383 $107 $3 $16,701 
Collectively evaluated for impairment19,281 46,603 11,936 804 12,425 1,005 41 92,095 
Ending balance$28,078 $51,863 $12,341 $1,550 $13,808 $1,112 $44 $108,796 
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 June 30, 2021 and December 31, 2020:

June 30, 2021
(dollars in thousands)Business/Other AssetsReal Estate
Commercial$7,450 $8,520 
Income producing - commercial real estate3,193 27,342 
Owner occupied - commercial real estate— 7,058 
Real estate mortgage - residential— 1,938 
Construction - commercial and residential— 3,659 
Home equity— 564 
Other consumer— — 
Total$10,643 $49,081 
December 31, 2020
(dollars in thousands)Business/Other AssetsReal Estate
Commercial$11,326 $4,026 
Income producing - commercial real estate3,193 15,686 
Owner occupied - commercial real estate— 23,159 
Real estate mortgage - residential— 2,932 
Construction - commercial and residential— 206 
Home equity— 415 
Other consumer— — 
Total$14,519 $46,424 
Schedule of the risk category of loans by class of loans
June 30, 2021 (dollars in thousands)Prior20172018201920202021Total
Commercial
Pass445,359 206,252 194,852 136,249 163,994 96,633 1,243,339 
Watch32,128 11,393 16,407 6,720 10,750 1,944 79,342 
Special Mention1,384 10,386 3,346 3,977 900 — 19,993 
Substandard12,721 678 2,419 540 125 — 16,483 
Total491,592 — 228,709 — 217,024 — 147,486 — 175,769 — 98,577 1,359,157 
PPP loans
Pass— — — — — — — — 198,313 39,728 238,041 
Total— — — — — — — — 198,313 39,728 238,041 
Income producing - commercial real estate
Pass713,318 267,101 654,340 574,668 503,679 244,300 2,957,406 
Watch156,867 106,813 — 44,223 34,620 — 342,523 
Special Mention57,361 — 42,544 51,972 — — 151,877 
Substandard67,753 — 8,518 5,542 438 — 82,251 
Total995,299 — 373,914 — 705,402 — 676,405 — 538,737 — 244,300 3,534,057 
Owner occupied - commercial real estate
Pass403,599 133,224 132,309 65,422 46,712 19,429 800,695 
Watch26,454 3,254 11,982 8,783 2,043 — 52,516 
Special Mention355 — 81,634 19,084 — — 101,073 
Substandard25,776 1,786 1,693 8,397 — — 37,652 
Total456,184 — 138,264 — 227,618 — 101,686 — 48,755 — 19,429 991,936 
Real estate mortgage - residential
Pass18,663 10,160 13,430 16,922 4,789 10,673 74,637 
Watch598 — — — — — 598 
Substandard1,896 — — — — — 1,896 
Total21,157 — 10,160 — 13,430 — 16,922 — 4,789 — 10,673 77,131 
Construction - commercial and residential
Pass64,042 204,514 198,089 118,410 148,352 40,809 774,216 
Watch203 56,360 1,295 — — — 57,858 
Substandard— — 3,468 3,468 191 191 — — — 3,659 
Total64,245 — 260,874 — 202,852 — 118,601 — 148,352 — 40,809 835,733 
Construction - C&I (owner occupied)— 
Pass17,572 1,979 20,373 24,552 54,309 688 119,473 
Watch4,607 401 5,699 — — — 10,707 
Special Mention110 — — 15,182 15,715 — 31,007 
Total22,289 — 2,380 — 26,072 — 39,734 — 70,024 — 688 161,187 
Home Equity— 
Pass28,213 6,241 1,773 3,642 11,819 6,945 58,633 
Watch1,314 — — — — — 1,314 
Substandard564 — — 48 — — 612 
Total30,091 — 6,241 — 1,773 — 3,690 — 11,819 — 6,945 60,559 
Other Consumer— 
Pass1,502 55 58 77 26 33 1,751 
Substandard6 — — — — — 6 
Total1,508 — 55 — 58 — 77 — 26 — 33 1,757 
Total Recorded Investment$2,082,365 $— $1,020,597 $— $1,394,229 $— $1,104,601 $— $1,196,584 $— $461,182 7,259,558 
December 31, 2020 (dollars in thousands)Prior20162017201820192020Total
Commercial
Pass323,660 111,886 249,541 211,551 164,166 227,095 1,287,899 
Watch31,903 5,315 19,145 21,013 7,740 7,979 93,095 
Special Mention4,969 1,692 8,969 3,385 5,599 2,169 26,783 
Substandard17,679 5,803 1,820 3,525 829 — 29,656 
Total378,211 124,696 279,475 239,474 178,334 237,243 1,437,433 
PPP loans
Pass— — — — — 454,771 454,771 
Total— — — — — 454,771 454,771 
Income producing - commercial real estate— 
Pass560,915 347,946 397,953 622,276 643,388 512,387 3,084,865 
Watch152,367 62,912 91,636 89,852 44,555 34,195 475,517 
Special Mention213 — — — 51,969 — 52,182 
Substandard58,555 800 4,656 4,883 5,542 — 74,436 
Total772,050 411,658 494,245 717,011 745,454 546,582 3,687,000 
Owner occupied - commercial real estate
Pass343,371 100,272 111,996 136,644 59,681 49,584 801,548 
Watch16,014 5,011 2,640 10,338 15,501 — 49,504 
Special Mention418 — — 83,110 19,091 — 102,619 
Substandard28,228 784 1,908 2,048 10,151 904 44,023 
Total388,031 106,067 116,544 232,140 104,424 50,488 997,694 
Real estate mortgage - residential
Pass16,310 2,693 10,199 12,746 18,209 10,116 70,273 
Watch1,996 699 — 728 — — 3,423 
Substandard1,198 1,698 — — — — 2,896 
Total19,504 5,090 10,199 13,474 18,209 10,116 76,592 
Construction - commercial and residential
Pass21,290 60,486 266,788 297,480 105,679 71,297 823,020 
Watch929 — 42,751 3,448 — — 47,128 
Special Mention12 — — 2,895 — — 2,907 
Substandard— — 206 — — — 206 
Total22,231 60,486 309,745 303,823 105,679 71,297 873,261 
Construction - C&I (owner occupied)
Pass8,278 10,476 6,637 30,340 22,209 40,101 118,041 
Watch3,573 — 2,118 4,935 — — 10,626 
Special Mention124 — — — 14,436 15,678 30,238 
Total11,975 10,476 8,755 35,275 36,645 55,779 158,905 
Home Equity
Pass33,226 4,493 8,227 7,827 4,224 12,924 70,921 
Watch1,596 — — — — — 1,596 
Substandard603 — — — 47 — 650 
Total35,425 4,493 8,227 7,827 4,271 12,924 73,167 
Other Consumer
Pass929 190 64 74 94 31 1,382 
Substandard7 — — — — — 7 
Total936 190 64 74 94 31 1,389 
Total Recorded Investment$1,628,363 $723,156 $1,227,254 $1,549,098 $1,193,110 $1,439,231 $7,760,212 
Schedule by class of loan, an aging analysis and the recorded investments in loans past due
The table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of June 30, 2021 and December 31, 2020:
LoansLoansLoansTotal Recorded
Current30-59 Days60-89 Days90 Days orTotal PastInvestment in
(dollars in thousands)LoansPast DuePast DueMore Past DueDue LoansNonaccrualLoans
June 30, 2021
Commercial$1,341,971 $1,477 $835 $— $2,312 $14,874 $1,359,157 
PPP loans238,041 — — — — — 238,041 
Income producing - commercial real estate3,512,671 — — — — 21,386 3,534,057 
Owner occupied - commercial real estate984,448 — 430 — 430 7,058 991,936 
Real estate mortgage - residential75,193 — — — — 1,938 77,131 
Construction - commercial and residential832,074 — — — — 3,659 835,733 
Construction - C&I (owner occupied)160,335 852 — — 852 — 161,187 
Home equity59,715 214 66 — 280 564 60,559 
Other consumer1,693 64 — — 64 — 1,757 
Total$7,206,141 $2,607 $1,331 $— $3,938 $49,479 $7,259,558 
December 31, 2020
Commercial$1,394,244 $6,411 $21,426 $— $27,837 $15,352 $1,437,433 
PPP loans454,771 — — — — — 454,771 
Income producing - commercial real estate3,616,207 — 51,913 — 51,913 18,880 3,687,000 
Owner occupied - commercial real estate960,364 10,630 3,542 — 14,172 23,158 997,694 
Real estate mortgage – residential72,231 1,430 — — 1,430 2,931 76,592 
Construction - commercial and residential869,723 2,992 340 — 3,332 206 873,261 
Construction- C&I (owner occupied)158,905 — — — — — 158,905 
Home equity67,732 467 4,552 — 5,019 416 73,167 
Other consumer1,367 21 1 — 22 — 1,389 
Total$7,595,544 $21,951 $81,774 $— $103,725 $60,943 $7,760,212 
Schedule of information related to nonaccrual loans by class
The following presents the nonaccrual loans as of June 30, 2021 and December 31, 2020:
June 30, 2021
Nonaccrual withNonaccrual withTotal
No Allowancean AllowanceNonaccrual
(dollars in thousands)for Credit Lossfor Credit LossLoans
Commercial$7,454 $7,420 $14,874 
Income producing - commercial real estate5,271 16,115 21,386 
Owner occupied - commercial real estate5,272 1,786 7,058 
Real estate mortgage - residential240 1,698 1,938 
Construction - commercial and residential3,659 — 3,659 
Home equity367 197 564 
Total (1)(2)
$22,263 $27,216 $49,479 

December 31, 2020
Nonaccrual withNonaccrual withTotal
No Allowancean AllowanceNonaccrual
(dollars in thousands)for Credit Lossfor Credit LossLoans
Commercial$3,263 $12,089 $15,352 
Income producing - commercial real estate6,500 12,380 18,880 
Owner occupied - commercial real estate18,941 4,217 23,158 
Real estate mortgage - residential1,234 1,697 2,931 
Construction - commercial and residential— 206 206 
Home equity416 — 416 
Total (1)(2)
$30,354 $30,589 $60,943 

(1)Excludes TDRs that were performing under their restructured terms totaling $10.2 million at June 30, 2021 and $10.5 million at December 31, 2020.
(2)Gross interest income of $1.5 million and $3.7 million would have been recorded for the six months ended June 30, 2021 and December 31, 2020, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while $44 thousand interest was actually recorded on such loans for the six months ended June 30, 2021 or 2020. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.
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 June 30, 2021 and 2020.
For the Six Months Ended June 30, 2021
IncomeOwner
NumberProducing -Occupied -Construction -
ofCommercialCommercialCommercial
(dollars in thousands)ContractsCommercialReal EstateReal EstateReal EstateTotal
Troubled debt restructurings          
Restructured accruing5 $1,096 $9,149 $— $— $10,245 
Restructured nonaccruing2 — 6,342 — — 6,342 
Total7 $1,096 $15,491 $— $— $16,587 
Specific allowance$364 $2,708 $— $— $3,072 
Restructured and subsequently defaulted$— $6,342 $— $— $6,342 
For the Six Months Ended June 30, 2020
IncomeOwner
NumberProducing -Occupied -Construction -
ofCommercialCommercialCommercial
(dollars in thousands)ContractsCommercialReal EstateReal EstateReal EstateTotal
Troubled debt restructurings
Restructured accruing10 $1,420 $10,016 $836 $— $12,272 
Restructured nonaccruing3 138 5,542 2,370 — 8,050 
Total13 $1,558 $15,558 $3,206 $— $20,322 
Specific allowance$257 $1,295 $— $— $1,552 
Restructured and subsequently defaulted$138 $5,542 $2,370 $— $8,050