Allowance for Credit Losses (ACL) |
Note 7 — Allowance for Credit Losses (ACL) See Note 2 — Summary of Significant Accounting Policies in this Quarterly Report on Form 10-Q for further detailed descriptions of our estimation process and methodology related to the allowance for credit losses. The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential | | Residential | | | | Residential | | Other | | | | | | | | CRE Owner | | Non-Owner | | | | | | (Dollars in thousands) | | Mortgage Sr. | | Mortgage Jr. | | HELOC | | Construction | | C&D | | Consumer | | Multifamily | | Municipal | | Occupied | | Occupied CRE | | C & I | | Total | Three Months Ended March 31, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at end of period December 31, 2021 | | $ | 47,036 | | | 611 | | | 13,325 | | | 4,997 | | | 37,593 | | | 23,149 | | | 4,921 | | | 565 | | | 61,794 | | | 79,649 | | | 28,167 | | $ | 301,807 | Initial Allowance for PCD loans acquired during period | | | 84 | | | — | | | — | | | — | | | 86 | | | — | | | — | | | — | | | 1,479 | | | — | | | 7,569 | | | 9,218 | Initial Allowance for Non PCD loans acquired during period | | | 352 | | | 26 | | | 132 | | | 2 | | | 1,887 | | | 51 | | | 426 | | | — | | | 2,519 | | | 2,697 | | | 5,605 | | | 13,697 | Charge-offs | | | (58) | | | (19) | | | (218) | | | — | | | (4) | | | (2,661) | | | — | | | — | | | (371) | | | — | | | (2,159) | | | (5,490) | Recoveries | | | 394 | | | 55 | | | 257 | | | 3 | | | 234 | | | 532 | | | — | | | — | | | 314 | | | 69 | | | 1,309 | | | 3,167 | Net (charge offs) recoveries | | | 336 | | | 36 | | | 39 | | | 3 | | | 230 | | | (2,129) | | | — | | | — | | | (57) | | | 69 | | | (850) | | | (2,323) | (Recovery) provision (1) | | | (1,806) | | | (87) | | | 175 | | | 614 | | | (14,438) | | | 828 | | | (1,444) | | | 42 | | | (16,641) | | | 13,945 | | | (3,191) | | | (22,003) | Balance at end of period March 31, 2022 | | $ | 46,002 | | $ | 586 | | $ | 13,671 | | $ | 5,616 | | $ | 25,358 | | $ | 21,899 | | $ | 3,903 | | $ | 607 | | $ | 49,094 | | $ | 96,360 | | $ | 37,300 | | $ | 300,396 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quantitative allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Collectively evaluated | | $ | 45,805 | | $ | 586 | | $ | 12,301 | | $ | 5,616 | | $ | 24,770 | | $ | 21,899 | | $ | 3,903 | | $ | 607 | | $ | 45,302 | | $ | 95,051 | | $ | 32,476 | | $ | 288,316 | Individually evaluated | | | 168 | | | — | | | 1,357 | | | — | | | 588 | | | — | | | — | | | — | | | 2,960 | | | — | | | 3,358 | | | 8,431 | Total quantitative allowance | | | 45,973 | | | 586 | | | 13,658 | | | 5,616 | | | 25,358 | | | 21,899 | | | 3,903 | | | 607 | | | 48,262 | | | 95,051 | | | 35,834 | | | 296,747 | Qualitative allowance | | | 29 | | | — | | | 13 | | | — | | | — | | | — | | | — | | | — | | | 832 | | | 1,309 | | | 1,466 | | | 3,649 | Balance at end of period March 31, 2022 | | $ | 46,002 | | $ | 586 | | $ | 13,671 | | $ | 5,616 | | $ | 25,358 | | $ | 21,899 | | $ | 3,903 | | $ | 607 | | $ | 49,094 | | $ | 96,360 | | $ | 37,300 | | $ | 300,396 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at end of period December 31, 2020 | | $ | 63,561 | | $ | 1,238 | | $ | 16,698 | | $ | 4,914 | | $ | 67,197 | | $ | 26,562 | | $ | 7,887 | | $ | 1,510 | | $ | 97,104 | | $ | 124,421 | | $ | 46,217 | | $ | 457,309 | Charge-offs | | | (120) | | | — | | | (169) | | | — | | | (10) | | | (2,149) | | | — | | | — | | | (27) | | | (194) | | | (705) | | | (3,374) | Recoveries | | | 428 | | | 33 | | | 417 | | | 1 | | | 201 | | | 510 | | | — | | | — | | | 333 | | | 321 | | | 1,151 | | | 3,395 | Net (charge offs) recoveries | | | 308 | | | 33 | | | 248 | | | 1 | | | 191 | | | (1,639) | | | — | | | — | | | 306 | | | 127 | | | 446 | | | 21 | Provision (recovery) (1) | | | (827) | | | (81) | | | (943) | | | (1,023) | | | (12,051) | | | 2,960 | | | (2,003) | | | 34 | | | (6,750) | | | (16,989) | | | (13,197) | | | (50,870) | Balance at end of period March 31, 2021 | | $ | 63,042 | | $ | 1,190 | | $ | 16,003 | | $ | 3,892 | | $ | 55,337 | | $ | 27,883 | | $ | 5,884 | | $ | 1,544 | | $ | 90,660 | | $ | 107,559 | | $ | 33,466 | | $ | 406,460 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Quantitative allowance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Collectively evaluated | | $ | 55,336 | | $ | 1,190 | | $ | 14,210 | | $ | 3,830 | | $ | 55,234 | | $ | 21,334 | | $ | 5,884 | | $ | 817 | | $ | 83,115 | | $ | 100,267 | | $ | 26,673 | | $ | 367,890 | Individually evaluated | | | 378 | | | — | | | 165 | | | — | | | 103 | | | — | | | — | | | — | | | 3,315 | | | 35 | | | 399 | | | 4,395 | Total quantitative allowance | | | 55,714 | | | 1,190 | | | 14,375 | | | 3,830 | | | 55,337 | | | 21,334 | | | 5,884 | | | 817 | | | 86,430 | | | 100,302 | | | 27,072 | | | 372,285 | Qualitative allowance | | | 7,328 | | | — | | | 1,628 | | | 62 | | | — | | | 6,549 | | | — | | | 727 | | | 4,230 | | | 7,257 | | | 6,394 | | | 34,175 | Balance at end of period March 31, 2021 | | $ | 63,042 | | $ | 1,190 | | $ | 16,003 | | $ | 3,892 | | $ | 55,337 | | $ | 27,883 | | $ | 5,884 | | $ | 1,544 | | $ | 90,660 | | $ | 107,559 | | $ | 33,466 | | $ | 406,460 |
| (1) | A negative provision (recovery) for credit losses of ($142,000), net of the provision for $3.4 million recorded for the unfunded commitments acquired from ACBI, was recorded during the first quarter of 2022, compared to a negative provision (recovery) for credit losses of $7.5 million recorded during the first quarter of 2021 for the allowance for credit losses for unfunded commitments that is not included in the above table. |
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