Loans and the Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

Loans Receivable: The following table sets forth the composition of the Company’s loan portfolio segments, including net deferred fees, as of December 31, 2021 and December 31, 2020:

	2021			2020
	(dollars in thousands)
Commercial (1)	$	1,299,428		$	1,521,967
Commercial real estate		4,741,590			3,783,550
Commercial construction		540,178			617,747
Residential real estate		255,269			322,564
Consumer		1,886			1,853
Gross loans		6,838,351			6,247,681
Net deferred fees		(9,729	)		(11,374	)
Loans receivable	$	6,828,622		$	6,236,307

⁽¹⁾ Included in commercial loans as of December 31, 2021 and December 31, 2020 were Paycheck Protection Program (“PPP”) loans of $93.1 million and $397.5 million, respectively. These loans are 100% federally guaranteed and currently not subject to any allocation of allowance for credit losses.

Loans held for sale [Table Text Block]

Loans Held-For-Sale: The following table presents loans held-for-sale by loan segment as of December 31, 2021 and December 31, 2020:

	2021		2020
	(dollars in thousands)
Commercial	$	-	$	-
Commercial real estate		-		1,990
Residential mortgage		250		2,720
Total carrying amount	$	250	$	4,710

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

Loans Receivable on Nonaccrual Status - The following tables present nonaccrual loans with an allowance for credit loss (“ACL”) as of December 31, 2021 and nonaccrual loans without an ACL as of December 31, 2021:

	December 31, 2021
	Nonaccrual loans with ACL		Nonaccrual loans without ACL		Total Nonaccrual loans
	(dollars in thousands)
Commercial	$	28,746	$	1,316	$	30,062
Commercial real estate		15,362		10,031		25,393
Commercial construction		-		3,150		3,150
Residential real estate		1,239		1,856		3,095
Consumer		-		-		-
Total	$	45,347	$	16,353	$	61,700

The following tables present total nonaccrual loans included in loans receivable by loan class as of December 31, 2020 (dollars in thousands):

	December 31, 2020
Commercial	$	33,019
Commercial real estate		10,111
Commercial construction		14,015
Residential real estate		4,551
Consumer		-
Total nonaccrual loans	$	61,696

Financing Receivable Origination and Risk Designation [Table Text Block]

We evaluate whether a modification, extension or renewal of a loan is a current period origination in accordance with GAAP. Generally, loans up for renewal are subject to a full credit evaluation before the renewal is granted and such loans are considered current period originations for purpose of the table below. As of December 31, 2021, our loans based on year of origination and risk designation are as follows (dollars in thousands):

	Term loans amortized cost basis by origination year													Revolving		Total
	2021		2020		2019		2018		2017		Prior			Loans		Gross Loans
Commercial
Pass	$	403,203	$	58,534	$	54,485	$	60,409	$	95,727	$	86,556		$	471,588	$	1,230,502
Special mention		-		-		-		-		1		4,045			4,266		8,312
Substandard		170		-		1,842		13,298		9,740		21,024			14,540		60,614
Doubtful		-		-		-		-		-		-			-		-
Total Commercial	$	403,373	$	58,534	$	56,327	$	73,707	$	105,468	$	111,625		$	490,394	$	1,299,428
Commercial Real Estate
Pass	$	1,692,098	$	533,315	$	420,995	$	452,262	$	497,065	$	842,244		$	170,721	$	4,608,700
Special mention		-		-		-		-		5,142		50,438			6,601		62,181
Substandard		1,968		9,039		4,006		20,624		-		26,108			8,964		70,709
Doubtful		-		-		-		-		-		-			-		-
Total Commercial Real Estate	$	1,694,066	$	542,354	$	425,001	$	472,886	$	502,207	$	918,790		$	186,286	$	4,741,590
Commercial Construction
Pass	$	8,018	$	7,370	$	12,625	$	2,600	$	2,339	$	-		$	490,119		523,071
Special mention		-		-		-		-		350		-			1,443		1,793
Substandard		-		-		-		-		-		-			15,314		15,314
Doubtful		-		-		-		-		-		-			-		-
Total Commercial Construction	$	8,018	$	7,370	$	12,625	$	2,600	$	2,689	$	-		$	506,876	$	540,178
Residential Real Estate
Pass	$	27,081	$	29,539	$	23,611	$	25,070	$	28,701	$	66,249		$	44,221	$	244,472
Special mention		-		-		-		-		-		-			-		-
Substandard		-		-		-		-		-		7,262			3,535		10,797
Doubtful		-		-		-		-		-		-			-		-
Total Residential Real Estate	$	27,081	$	29,539	$	23,611	$	25,070	$	28,701	$	73,511		$	47,756	$	255,269
Consumer
Pass	$	1,594	$	85	$	39	$	21	$	28	$	(4	)	$	123	$	1,886
Special mention		-		-		-		-		-		-			-		-
Substandard		-		-		-		-		-		-			-		-
Doubtful		-		-		-		-		-		-			-		-
Total Consumer	$	1,594	$	85	$	39	$	21	$	28	$	(4	)	$	123	$	1,886
Total
Pass	$	2,131,994	$	628,843	$	511,755	$	540,362	$	623,860	$	995,045		$	1,176,772	$	6,608,631
Special mention		-		-		-		-		5,493		54,483			12,310		72,286
Substandard		2,138		9,039		5,848		33,922		9,740		54,394			42,353		157,434
Doubtful		-		-		-		-		-		-			-		-
Grand Total	$	2,134,132	$	637,882	$	517,603	$	574,284	$	639,093	$	1,103,922		$	1,231,435	$	6,838,351

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents information about the loan credit quality by loan class of gross loans (which exclude net deferred fees) as of December 31, 2020:

	December 31, 2020
	Pass		Special Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	1,447,097	$	30,725	$	43,930	$	215	$	1,521,967
Commercial real estate		3,700,498		49,143		33,909		-		3,783,550
Commercial construction		587,266		-		30,481		-		617,747
Residential real estate		311,174		-		11,390		-		322,564
Consumer		1,853		-		-		-		1,853
Gross loans	$	6,047,888	$	79,868	$	119,710	$	215	$	6,247,681

Schedule of Fair Value of Collateral [Table Text Block]

Collateral Dependent Loans: Loans which meet certain criteria are individually evaluated as part of the process of calculating the allowance for credit losses. The evaluation is determined on an individual basis using the fair value of the collateral as of the reporting date. The following table presents collateral dependent loans that were individually evaluated for impairment as of December 31, 2021:

	December 31, 2021
	Real Estate		Other		Total
	(dollars in thousands)
Commercial	$	6,385	$	26,182	$	32,567
Commercial real estate		55,244		-		55,244
Commercial construction		13,196		-		13,196
Residential real estate		8,856		-		8,856
Consumer		-		-		-
Total	$	83,681	$	26,182	$	109,863

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by class as of the year ended December 31, 2020.

	December 31, 2020
No Related Allowance Recorded	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
Commercial	$	11,325	$	11,835		-	$	11,627	$	203
Commercial real estate		13,105		13,449		-		13,215		287
Commercial construction		24,284		24,907		-		21,279		377
Residential real estate		5,378		5,723		-		4,733		104
Consumer		-		-		-		-		-
Total	$	54,092	$	55,914		-	$	50,854	$	971
With An Allowance Recorded
Commercial	$	23,736	$	69,122	$	12,985	$	23,625	$	-
Commercial real estate		2,722		2,722		1,329		2,722		-
Total	$	26,458	$	71,844	$	14,314	$	26,347	$	-
Total
Commercial	$	35,061	$	80,957	$	12,985	$	35,252	$	203
Commercial real estate		15,827		16,171		1,329		15,937		287
Commercial construction		24,284		24,907		-		21,279		377
Residential real estate		5,378		5,723		-		4,733		104
Consumer		-		-		-		-		-
Total (including related allowance)	$	80,550	$	127,758	$	14,314	$	77,201	$	971

Past Due Financing Receivables [Table Text Block]

Aging Analysis - The following table provides an analysis of the aging of the loans by class, excluding net deferred fees, that are past due as of December 31, 2021 and December 31, 2020 (dollars in thousands):

	December 31, 2021
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due and Still Accruing		Nonaccrual		Total Past Due and Nonaccrual		Current		Gross Loans
Commercial	$	4,305	$	729	$	4,457	$	30,062	$	39,553	$	1,259,875	$	1,299,428
Commercial real Estate		1,622		1,009		5,935		25,393		33,959		4,707,631		4,741,590
Commercial construction		-		-		-		3,150		3,150		537,028		540,178
Residential real Estate		1,437		292		3,139		3,095		7,963		247,306		255,269
Consumer		-		-		-		-		-		1,886		1,886
Total	$	7,364	$	2,030	$	13,531	$	61,700	$	84,625	$	6,753,726	$	6,838,351

90 days or greater past due and still accruing category reflects purchased credit-deteriorated loans, net of fair value marks, which accrete income per the valuation at date of acquisition.

	December 31, 2020
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater Past Due and Still Accruing		Nonaccrual		Total Past Due and Nonaccrual		Current		Total Loans Receivable
Commercial	$	1,445	$	558	$	3,182	$	33,019	$	38,204	$	1,483,763	$	1,521,967
Commercial real estate		13,258		4,140		5,555		10,111		33,064		3,750,486		3,783,550
Commercial construction		2,472		-		-		14,015		16,487		601,260		617,747
Residential real estate		1,367		241		4,084		4,551		10,243		312,321		322,564
Consumer		2		-		-		-		2		1,851		1,853
Total	$	18,544	$	4,939	$	12,821	$	61,696	$	98,000	$	6,149,681	$	6,247,681

Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for credit losses for loans that are allocated to each loan portfolio segment. “Prior to January 1, 2021, the allowance for loan losses is based on a calculation methodology disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.”

	December 31, 2021
	Commercial		Commercial real estate		Commercial construction		Residential real estate		Consumer		Total
	(dollars in thousands)
Allowance for credit losses - loans
Individually evaluated	$	15,131	$	955	$	-	$	131	$	-	$	16,217
Collectively evaluated		8,561		42,713		3,580		3,497		7		58,358
Acquired with deteriorated credit quality individually analyzed​​		2,277		1,921		-		-		-		4,198
Total	$	25,969	$	45,589	$	3,580	$	3,628	$	7	$	78,773
Gross loans
Individually evaluated	$	33,726	$	49,310	$	13,196	$	5,717	$	-	$	101,949
Collectively evaluated		1,260,537		4,686,346		526,982		246,413	$	1,886	$	6,722,164
Acquired with deteriorated credit quality individually analyzed​​		5,165		5,934		-		3,139		-		14,238
Total	$	1,299,428	$	4,741,590	$	540,178	$	255,269	$	1,886	$	6,838,351

	December 31, 2020
	Commercial		Commercial real estate		Commercial construction		Residential real estate		Consumer		Unallocated		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	12,985	$	1,329	$	-	$	-	$	-	$	-	$	14,314
Collectively evaluated for impairment		15,412		33,373		7,787		1,928		4		568		59,072
Acquired portfolio		46		4,628		407		759		-		-		5,840
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	28,443	$	39,330	$	8,194	$	2,687	$	4	$	568	$	79,226
Gross loans
Individually evaluated for impairment	$	35,061	$	15,827	$	24,284	$	5,378	$	-			$	80,550
Collectively evaluated for impairment		1,414,626		2,959,978		574,118		241,925		1,627				5,192,274
Acquired portfolio		68,402		802,190		19,345		71,177		226				961,340
Acquired with deteriorated credit quality		3,878		5,555		-		4,084		-				13,517
Total	$	1,521,967	$	3,783,550	$	617,747	$	322,564	$	1,853			$	6,247,681

Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the allowance for credit losses for loans by loan segment is as follows:

	Commercial			Commercial real estate			Commercial construction			Residential real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance as of January 1, 2021	$	28,443		$	39,330		$	8,194		$	2,687		$	4		$	568		$	79,226
Day 1 Adjustment CECL		(4,225	)		9,605			(961	)		2,697			9			(568	)		6,557
Balance as of January 1, 2021		24,218			48,935			7,233			5,384			13			-			85,783
Loan charge-offs		(382	)		(1,780	)		-			(235	)		-			-			(2,397	)
Recoveries		289			85			-			20			11			-			405
Provision for (reversal of) credit losses		1,844			(1,651	)		(3,653	)		(1,541	)		(17	)		-			(5,018	)
Balance as of December 31, 2021	$	25,969		$	45,589		$	3,580		$	3,628		$	7		$	-		$	78,773

On January 1, 2021, the Company adopted CECL, which replaced the incurred loss method we used in prior periods for determining the provision for credit losses and the allowance for credit losses. Under CECL, we record an expected loss of all cash flows we do not expect to collect at the inception of the loan. The adoption of CECL resulted in an increase in our allowance for credit losses for loans of $6.6 million, which did not impact our consolidated income statement.

	Commercial			Commercial real estate		Commercial construction		Residential real estate			Consumer			Unallocated		Total
	(dollars in thousands)
Balance as of January 1, 2020	$	8,349		$	20,853	$	7,304	$	1,685		$	3		$	99	$	38,293
Loan charge-offs		(552	)		-		-		(341	)		(7	)		-		(900	)
Recoveries		4			802		-		23			4			-		833
Provision for loan losses		20,642			17,675		890		1,320			4			469		41,000
Balance as of December 31, 2020	$	28,443		$	39,330	$	8,194	$	2,687		$	4		$	568	$	79,226

	Commercial			Commercial real estate			Commercial construction		Residential real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance as of January 1, 2019	$	9,875		$	18,847		$	4,519	$	1,266		$	2		$	445		$	34,954
Loan charge-offs		(1,029	)		(3,470	)		-		(557	)		(20	)		-			(5,076	)
Recoveries		265			30			-		3			17			-			315
Provision for loan losses		(762)			5,446			2,785		973			4			(346	)		8,100
Balance as of December 31, 2019	$	8,349		$	20,853		$	7,304	$	1,685		$	3		$	99		$	38,293

Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2021:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(dollars in thousands)
Troubled debt restructurings:
Commercial		4	$	1,276	$	1,276
Commercial real estate		11		35,635		35,635
Commercial construction		1		1,641		1,641
Residential real estate		3		1,758		1,758
Total		19	$	40,310	$	40,310

The loans modified as TDRs during the year ended December 31, 2021 included maturity extensions and interest rate reductions.

The following table presents loans by class modified as TDRs that occurred during year ended December 31, 2020

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(dollars in thousands)
Troubled debt restructurings:
Commercial		1	$	188	$	188
Commercial real estate		1		93		93
Commercial construction		1		4,021		4,021
Residential real estate		2		2,184		2,184
Total		5	$	6,486	$	6,486

The five loan modifications during the year ended December 31, 2020 were maturity extensions:

The following table presents loans by class modified as TDRs that occurred during the year ended December 31, 2019:

	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(dollars in thousands)
Troubled debt restructurings:
Commercial		11	$	14,558	$	14,558
Commercial real estate		3		5,863		5,863
Commercial construction		3		5,630		5,630
Total		17	$	26,051	$	26,051

Schedule of ACL for off-balance sheet credit exposure

The Company has recorded an ACL for unfunded credit commitments, which was recorded in other liabilities. The provision is recorded within the (reversal of) provision for credit losses on the Company’s income statement. The following table presents the allowance for credit losses for unfunded commitments for the year ended December 31, 2021 (dollars in thousands):

	Year Ended December 31, 2021
Balance as of beginning of period	$	-
Day 1 Effect of CECL		2,833
Provision for (reversal of) credit losses - unfunded commitments		(482	)
Balance as of end of period	$	2,351

Schedule of (Reversal of) provision for credit losses

The following table summarizes the provision for (reversal of) provision for credit losses for the year ended December 31, 2021 (dollars in thousands):

	Year Ended December 31, 2021
Provision for (reversal of) credit losses - loans	$	5,018
Provision for (reversal of) credit losses - unfunded commitments		(482	)
Provision for (reversal of) credit losses	$	(5,500	)